• Palm oil, one of the most widely used vegetable oils globally, serves as a critical raw material in the cosmetics industry. However, the increasing demand for palm oil may lead to extensive deforestation in some of the global biologically diverse forests and poses a threat to the habitats of endangered species. Consequently, the sustainability of palm oil has become a key focus in efforts to protect biodiversity.
  
  We do not directly use palm oil in the manufacturing of our products, but palm oil derivatives are included in the raw materials we use. We are actively engaged in the management of palm oil derivatives by prioritizing the procurement of palm oil derivatives certified by the Roundtable on Sustainable Palm Oil (RSPO). This effort enhances the sustainability of our products and reduces their environmental impact. We have joined RSPO and are now working to gradually replace palm oil in raw materials with RSPO-certified products.
  
  In 2024, Proya's Skincare Factory achieved the Roundtable on Sustainable Palm Oil (RSPO) Supply Chain Certification under the Mass Balance (MB) model. This achievement marks a significant milestone in Proya's unwavering pursuit of sustainable development. Simultaneously, HOU Juncheng, Chairman of Proya, was invited to participate in an exclusive interview with the RSPO. Through the video, he shared Proya's efforts in advancing sustainable palm oil practices and extended his heartfelt congratulations on the 20th anniversary of RSPO. As a leading representative among RSPO's Chinese members, our collaboration with RSPO will further advance Proya's progress in sustainable palm oil practices.

Palm oil is an important raw material in the cosmetics industry. We do not directly use palm oil in the manufacturing of our products, but palm oil derivatives are included in the raw materials we use. We are actively engaged in the management of palm oil derivatives by prioritizing the procurement of palm oil derivatives certified by the Roundtable on Sustainable Palm Oil (RSPO). This effort enhances the sustainability of our products and reduces their environmental impact.

In 2023, we officially joined RSPO and are now working to gradually replace palm oil in raw materials with RSPO-certified products.

Measures and achievements of sustainable palm oil procurement:
Identification and review:
• Identified products involving palm oil or palm oil derivatives
• Reviewed our use of RSPO-certified palm oil

Tracking:
• Tracked the source of palm oil, required suppliers to provide information on the origin of palm oil as well as RSPO certification credentials, and added relevant information in the internal system to enhance palm oil record management

Adjustment:
• Gradually replaced palm oil with RSPO-certified products

Achievement:
Proportion of RSPO-certified palm oil derivatives procured (by type): 40.40%
Proportion of RSPO-certified palm oil derivatives procured (by weight): 15.93%
* Calculation formula for the proportion:RSPO-certified palm oil derivatives/all palmoil derivatives

In terms of forest products, the cartons of our hero products and new products all adopt FSC-certified paper. The retail warehouse of skincare products adopts FSC-certified zipper cartons. Proya Advanced Firming Nourishing Concentrating Mask 2.0 and Proya Original Repair Concentrating Mask 2.0 adopt FSC-certified lyocell fiber fabric to support sustainable forest development.

We also actively introduce natural and organic raw materials to provide consumers with more diverse product choices and meet the growing demand for sustainable consumption. in 2023, Proya Inaugurating Intensive Firming Cream,Proya Inaugurating Anti-Wrinkle Essence, and Proya Inaugurating Anti-Wrinkle Eye Cream adopted rambutan peel extracts that are certified by COSMOS and ISO 16128.Proya Advanced Firming Nourishing Concentrating Mask 2.0 adopted vegan-certified cotton fabric.

• We preferentially purchase environmentally friendly raw materials, including FSC-certified paper, palm oil, environmentally-friendly ink, environmentally-friendly coating, environmentally-friendly glue, etc. For raw materials originating in Africa, the company gives priority to manufacturers who have signed a fair trade agreement; Natural products are the core ingredients of Proya's products, such as Boerhavia Diffusa Root Extract, Tara gum, boerhavia diffusa root extracts, tara gum, capuacu butter, etc., we preferentially select manufacturers that comply with the Nagoya Protocol;

• For years, Proya has organized employees to plan trees, and supported the "Thanksgiving Forest of Proya" in Lijiang, Yunnan and the "Forest of Proya" in Huzhou, Zhejiang;