The POP MART 2024 Sustainability Report was prepared with reference to the GRI Standards and the ESG Reporting Guide of the Hong Kong Stock Exchange (HKEX), and includes a GRI Index. It highlights POP MART and its subsidiaries’ key practices and progress in the environmental, social, and governance (ESG) domains in 2024.

As a global leader in trendy culture and entertainment, POP MART centers its business around intellectual property (IP), spanning IP incubation and operations, trendy toys and retail, theme parks and experiential entertainment, and digital entertainment. During the reporting period, the company conducted in-depth stakeholder engagement and materiality assessments, identifying 21 key issues closely related to its business development. Among them, 13 topics were classified as of high importance, including consumer engagement, employee health and safety, business ethics, intellectual property protection, human rights and labor management, product quality, and supply chain management. These material issues align well with the company’s characteristics and industry consensus.

Environmental Dimension

In green operations, POP MART continued to promote energy conservation, emission reduction, and packaging optimization, focusing on “green stores,” “plastic reduction in packaging,” “material innovation,” and “recycling programs.” In 2024, the company’s “Green POP, Low-Carbon Reduction” campaign recorded 6,226 employee low-carbon actions; it introduced an innovative “liquid flow glue” process to reduce volatile organic compound (VOC) emissions; and replaced PET plastic packaging with 100% recyclable corrugated paper in the SKULLPANDA ‘The Dwelling’ series, reducing packaging volume by 30.7%. All packaging materials across its supply chain are now FSC certified.

The company also launched a “Figure Recycling Program” domestically and abroad, with collected products repurposed for public art projects or secondary production. Energy-saving measures such as reusable pallets and paperless operations were promoted in warehousing and logistics. These initiatives generated early green effects across both consumer and logistics ends, reflecting POP MART’s proactive exploration of environmental compliance.

However, environmental data disclosure remains limited. The report mentions that “climate-related indicators and key performance metrics are fully disclosed in the 2024 Annual Report,” but upon review, the content appears brief. In 2024, the company’s total greenhouse gas emissions (Scope 1 + 2) were 7,407.59 tons; GHG emissions intensity (Scope 1 + 2) was 0.57 tons per RMB 1 million of revenue; energy consumption was 1.07 MWh per RMB 1 million; water consumption was 0.34 tons per RMB 1 million; hazardous waste totaled 0.00004 tons per RMB 1 million; and non-hazardous waste 0.04 tons per RMB 1 million. While overall performance improved year-on-year, the company has yet to clarify its carbon neutrality roadmap, and the absence of Scope 3 emissions data indicates room for improvement in upstream and downstream carbon tracking and accounting systems.

Social Dimension

By the end of 2024, POP MART employed 6,273 people, with women accounting for 71.6%. The company has continuously refined its talent management and development mechanisms. Total training hours for mainland Chinese employees reached approximately 56,491 hours—23,505 hours for office staff, 17,442 hours for retail employees, and 15,544 hours for robot store employees.

POP MART has also established a robust management system for customer service, product quality, and information security. In 2024, no product safety or quality-related recalls occurred, and no major data security or privacy breaches were reported. The 24-hour overseas customer complaint resolution rate exceeded 96%. The company also actively promotes awareness of “authentic IP.” It co-developed and issued the 2024 Group Standards for Trendy Toys and Derivatives, identified over 10 forged authorization letters, removed 5 infringing overseas domain names, filed 3 IP infringement lawsuits, and worked with customs to seize over 1.3 million counterfeit products, effectively safeguarding its intellectual property and market order.

Regarding its supply chain, the company has built a comprehensive supplier entry and evaluation system. Currently, 7 of its partners hold International Council of Toy Industries (ICTI) certification, and 25 suppliers are Disney-certified. Some have obtained global safety verification, Global Recycled Standard (GRS), and FSC certifications.

In addition, POP MART integrates IP with philanthropy and traditional Chinese culture, advancing both cultural communication and social welfare. In 2024, it established six new public art education centers, benefiting over 1,500 students—demonstrating its dual commitment to creativity and social responsibility.

Governance Dimension

POP MART has established a three-tier ESG governance structure, with the Board of Directors as the highest authority responsible for ESG oversight and decision-making. The ESG management team and ESG coordination team jointly undertake strategic, supervisory, and implementation responsibilities.

During the reporting period, the company conducted integrity education and anti-corruption training for all directors, senior and mid-level management, and full-time and part-time employees, achieving 100% training coverage. Multiple reporting channels have also been set up to strengthen compliance and risk management.

Externally, the company maintained an MSCI ESG rating of “AA” for two consecutive years, ranking among the leaders in the consumer entertainment industry—reflecting its strong governance and transparency performance.

Overall, the POP MART 2024 Sustainability Report is well-structured, logically coherent, and systematically presents the company’s ESG practices. POP MART effectively identifies stakeholder expectations and aligns its sustainability agenda closely with its business priorities, showcasing a distinctive IP-centered sustainability narrative.

Despite its strong overall performance, there remains room for improvement: Data disclosure — both depth and granularity need enhancement. Third-party assurance — the absence of external verification affects data credibility.

It is recommended that POP MART establish a comprehensive carbon accounting system and set science-based emission targets; consider introducing third-party assurance to enhance credibility; and deepen green innovation by expanding the use of eco-friendly materials and circular economy initiatives—transforming ESG from mere “compliance disclosure” to genuine “value creation.”

Author：Qinger