Yatsen Group Releases 2025 ESG Report: The Vision of a World-Class Beauty Innovation Pioneer Through Long-Term Value
Yatsen Group’s 2025 ESG Report highlights increased R&D, lower emissions, stronger governance, diverse leadership, and expanded community programs.
Rhea-AI Summary
Yatsen Group (YSG) released its 2025 ESG Report, outlining progress across technological innovation, green development, governance, talent, and social impact for the year 2025.
Annual R&D investment reached RMB 137 million, or 3.2% of revenue, supported by 153 R&D staff, 269 patent applications and filings for two new cosmetic raw ingredients. Key technologies included Perfect Diary’s 3rd-generation Bio-film Biotec™ and DR.WU’s Nanoxinfuse™ delivery platform, while 11 research papers were presented at the 35th IFSCC Congress.
On environment, greenhouse gas emissions from direct operations fell 35.74% year-over-year. Yatsen Biotechnology achieved a 41% renewable energy utilization rate and 100% product carbon footprint assessment coverage, with 100% of folding cartons using FSC paper and soy-based inks.
In governance and talent, all employees completed ethics training, no corruption or data-privacy incidents were reported, women accounted for 77.0% of the workforce and 60.7% of senior management, and total public welfare donations reached RMB 1.5 million.
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Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Sep 02 | Q2 earnings report | Negative | -4.9% | Wider net loss and declining color cosmetics revenue accompanied modest total revenue growth. |
| Aug 26 | Earnings date notice | Neutral | -0.7% | The company scheduled its second-quarter results release and conference call. |
| Jul 08 | Sephora partnership | Positive | -2.3% | Perfect Diary was announced for launch across approximately 300 Sephora China outlets. |
| May 26 | Q1 earnings report | Neutral | +3.9% | Revenue and gross margin improved while losses widened and operating cash flow was negative. |
| May 21 | Private placement | Positive | +9.1% | Yatsen completed the first tranche of its convertible notes and warrants placement. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
YSG's recent news reactions were mixed, with a negative response to the Sephora partnership but a positive response to the private placement.
Key Terms
esg regulatory
carbon neutrality technical
photovoltaic technical
data protection officer regulatory
privacy impact assessments regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
"For Yatsen Group, sustainable development has never been an add-on outside our core business operations; it is an integral component of creating long-term value." stated David Huang, Founder, Chairman, and CEO of Yatsen Group.
Deepening Beauty R&D and Innovation
In 2025, Yatsen released
R&D Capability: Annual R&D investment reached
Brand Breakthroughs: Key innovations include Perfect Diary's 3rd-generation "Bio-film" Biotec™ technology and DR.WU's Nanoxinfuse™ delivery technology.
Academic Acclaim: Yatsen presented 11 research papers at the 35th IFSCC Congress—more than triple its 2024 total.
Accelerating Green and Low-Carbon Transformation
Alongside R&D, green transformation is another crucial path in Yatsen's commitment to long-term value, rooted in the belief that true growth must coexist with environmental stewardship.
Sustainable Packaging: Yatsen contributed to the group standard "Sustainable Packaging Guidelines-Cosmetics". Brands like Galénic and EVE LOM led implementations.
100% of product folding cartons utilize FSC-certified paper and soy-based inks; refillable designs cut total packaging volume.- Some Galénic products sold in
China use100% biodegradable bio-based paper-plastic materials to replace conventional plastics for product boxes. - EVE LOM achieved
100% recyclable or recycled outer packaging across all lines and100% plant-based biodegradable single-use capsule packaging. DR.WU and Perfect Diary also advanced lightweight packaging initiatives to cut resource consumption.
Climate Action: Yatsen advanced its carbon neutrality goals and milestone reduction pathways across risk assessment, operational efficiency, supply chain alignment, and product carbon footprint management.
- In 2025, greenhouse gas emissions from direct operations fell by
35.74% year-over-year. - The core manufacturing hub, Yatsen Biotechnology, expanded photovoltaic installations and optimized its energy mix—achieving a
41% renewable energy utilization rate and100% product carbon footprint assessment coverage.
This solid progress reflects Yatsen's understanding of "long-term value"—not the pursuit of immediate results, but making green transformation part of sustainable growth.
Solidifying Governance as a Growth Foundation
In response to the integration of AI and digital technologies, Yatsen reinforced its board-led ESG governance architecture, clearly defining accountability boundaries and data security protocols for emerging tech applications. Business ethics, risk management, information security, and regulatory compliance are integrated into all operational decisions.
Key compliance and governance highlights in 2025 include:
Zero Violation Incidents: Zero incidents or lawsuits involving corruption, bribery, discrimination, harassment, privacy breaches, money laundering, or insider trading were reported.
Level III Security Certification: The group's core systems earned Level III Certification in Cybersecurity Graded Protection Assessment from the Guangzhou Public Security Bureau.
Strengthened Privacy Governance: A Data Protection Officer was appointed to oversee privacy inquiries, supervise personal information processing, and lead regular Privacy Impact Assessments. Consequently, Yatsen experienced zero information security incidents and received zero personal-information-protection complaints in 2025.
Empowering Talent: Letting the Capable Thrive
Effective governance relies on talent and organizational strength. For Yatsen, talent is not only the foundation of the company's development but also a key force driving innovation and executing long-term strategy.
Diversity & Representation: In
Employee Empowerment:
Occupational Safety: Achieved zero work-related fatalities and zero lost workdays due to occupational injuries in 2025.
From growth opportunities to career security, Yatsen continuously refines its employee support system, giving every employee room to excel and letting the capable thrive.
Fostering Social Impact Through Philanthropy
Yatsen believes long-term value extends beyond commercial returns to addressing social needs and creating positive community outcomes.
Creating a Beautiful Life Program: Over more than four years, the initiative conducted 12 sessions across
Green Love Computer Room Program: Launched in 2022, the program has donated nearly 450 sets of computers and projectors across six cities (including Shaoguan, Qingyuan, and Zhaoqing), establishing eight computer labs supported by employee volunteers.
Charitable Giving: Total public welfare donations reached
From R&D investments and low-carbon transitions to corporate governance, talent development, and philanthropy, Yatsen Group demonstrates that having a long-term value is not merely a slogan, but a guiding principle integrated into everyday business decisions.
Moving forward, Yatsen will remain user-centric and technology-driven—collaborating with consumers, employees, partners, and society to advance toward its vision of becoming a "World-Class Beauty Innovation Pioneer."
About Yatsen Group
Yatsen Holding Limited (NYSE: YSG) is a leading China-based beauty group with the vision of becoming a world-class pioneer in beauty innovation. Founded in 2016, the Company has launched and acquired numerous color cosmetics and skincare brands including Perfect Diary, Little Ondine, Pink Bear, Galénic, DR.WU (its mainland China business), and Eve Lom. Our brands are strategically positioned to capture a wide spectrum of consumer demographics and price points, ranging from the mass market to the prestige and clinical segments. Yatsen thrives on the synergy of brand equity, product strength and operational agility, anchored by a strong commitment to R&D and consumer insights.
Media Contact:
Website: www.yatsenglobal.com
LinkedIn: www.linkedin.com/company/yatsen
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SOURCE Yatsen Holding Limited
FAQ
What did Yatsen Group (YSG) announce in its 2025 ESG Report?
Yatsen Group released its 2025 ESG Report, detailing annual performance in five areas: technological innovation, green development, scientific governance, talent development, and social impact, and describing how these areas support the company’s long-term value creation strategy.
How much did Yatsen Group (YSG) invest in R&D in 2025?
In 2025, Yatsen Group’s annual R&D investment reached RMB 137 million, representing 3.2% of total revenue. This was supported by 153 R&D personnel, 269 patent applications (240 authorized) and filings for two new cosmetic raw ingredients.
What environmental and carbon reduction results did Yatsen Group (YSG) report for 2025?
Yatsen reported that greenhouse gas emissions from direct operations fell 35.74% year-over-year in 2025. Its core manufacturing hub, Yatsen Biotechnology, reached a 41% renewable energy utilization rate and achieved 100% product carbon footprint assessment coverage.
What progress did Yatsen Group (YSG) make in sustainable packaging in 2025?
Yatsen adopted the “Sustainable Packaging Guidelines–Cosmetics,” with 100% of product folding cartons using FSC-certified paper and soy-based inks. Brands such as Galénic and EVE LOM advanced refillable, recyclable and biodegradable packaging, and DR.WU and Perfect Diary promoted lightweight packaging to reduce resource use.
What governance and compliance achievements did Yatsen Group (YSG) report for 2025?
Governance highlights included 100% employee coverage in business ethics training, zero reported incidents or lawsuits involving corruption, discrimination or data breaches, Level III Cybersecurity Graded Protection Certification for core systems, and zero information security incidents or personal-information-protection complaints in 2025.
How diverse is Yatsen Group’s (YSG) workforce and leadership according to the 2025 ESG Report?
In China, women accounted for 77.0% of Yatsen’s total workforce, 60.7% of senior management, 72% of revenue-generating management roles, and 63% of STEM-related positions, reflecting the company’s emphasis on diversity and representation.
What social impact and philanthropy initiatives did Yatsen Group (YSG) report for 2025?
Yatsen highlighted its “Creating a Beautiful Life” program, which held 12 sessions over more than four years for a cumulative 482 female trainees, the “Green Love Computer Room” initiative donating nearly 450 computer and projector sets across six cities, and RMB 1.5 million in public welfare donations in 2025.