AGF Portfolio | An Innovator and Advocate in Green Supply Chain that is Transforming Industrial Packaging and Logistics
“In 2019, Asia Green Fund invested in Horen's Series C capital raising. Horen has been providing products and services related to industrial packaging and logistics for many years and has been dedicated to advancing recyclable packaging and supporting the sustainable development of supply chain. Its business model resonates with Asia Green Fund's investment philosophy and values. Compared to traditional disposable packaging solutions, Horen's intelligent recyclable packaging solutions and services can achieve as much as 90% reduction in carbon emission and over 30% reduction in packaging costs. As a shareholder and a member of board of directors, Asia Green Fund uses its influence to help Horen in strategic planning to ensure that ESG and net-zero are aligned with company's business strategy and future growth.”
As China transitions from traditional manufacturing to intelligent manufacturing, manufacturing industries are shifting from supply-driven to ESG-driven. Horen’s service model for green packaging and net-zero circulation, underpinned by digital technological innovation, is redefining industry standards and the industrial value chain. In the past year, Horen has weaved sustainable development principles into its operational fabric across digital, intelligent, green, and lean dimensions.
In response to increasing demand for manufacturing innovation and the pursuit of dual carbon objectives, more and more industries and enterprises are incorporating green supply chain management alongside cost reduction and efficiency enhancement into their overarching strategies for sustainable growth. As a vanguard in the digitization of the industrial circular packaging realm, Horen has deeply invested in fortifying the green circular industry chain. Through the comprehensive exploitation of technological capabilities spanning design, manufacturing, IoT software and hardware, circular operation services, and circular management systems, Horen has pioneered an innovative model that marries green production-oriented services with the manufacturing sector. Additionally, in a concerted effort to propel the green transformation of logistics packaging, Horen has energetically pursued a novel industrial packaging circular service model by synergizing digital technologies and business models. Central to this initiative is the strategic establishment of 30 central warehouses, 200 branch warehouses, and 2,500 network outlets, meticulously aligned with the nation’s critical industrial and economic corridors. This strategic deployment has facilitated partnerships with over 3,000 primary and subsidiary logistics service providers, culminating in the realization of a dedicated green "circular sharing" service network and infrastructure. This achievement underscores Horen's distinctive advantage in online service, intelligent dispatching, and instant fulfillment.
Established within global industrial manufacturing sector, Horen offers solutions tailored to specific industry segments. In the domestic market of China, it has introduced a multi-brand product lines to cater to packaging requirements of bulk liquids, parts and components, and fresh/cold chain. Internationally, targeting developed nations in Europe, America, Japan, and South Korea—particularly in industries such as food, cosmetics, non-hazardous chemicals, and biopharmaceuticals—Horen has launched international brands.
In comparison to conventional disposable packaging solutions, Horen's intelligent packaging circular services are capable of achieving over 90% reduction in carbon emission and over 30% reduction in total supply chain costs. To date, Horen has cumulatively achieved a carbon emission reduction exceeding 500,000 tons and has prevented approximately 500 million units of disposable packaging from being utilized.
In the context of China’s "dual carbon" strategy, the industrial packaging and logistics sector is presented with new opportunities, with technological innovation playing a pivotal role. Horen has always believed in innovation as the driving engine for business growth and has invested heavily in research and development. The company has advanced through three distinct phases of innovation: proprietary products, adoption of digital technologies, and innovative platform & ecosystem.
In term of in-house innovation and intellectual properties, to date, Horen has publicly applied for 959 global patents, of which 116 patents have been granted within China. Moreover, the company has played a crucial role in the formulation of two national technical standards: "Returnable Containers for Green Logistics" (20220427-T-469) and "General Test Specifications for Reusable Plastic Containers for Transport Packaging Part 2" (20221814-T-469).
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In the area of digital innovation, the R&D and engineering teams actively worked on combining new processes and new materials for applications in automated warehouses, mechanical operators, automated production lines, and AGV scenarios. This effort not only delivered productivity enhancement and carbon emission reductions to customers Horen directly serves but also catalyzes productivity optimization and carbon emission reduction throughout the entire supply chain, fostering collaboration and advancement in green industrial supply chains.
In creating an innovative platform and ecosystem, Horen focuses on the three core capabilities, customer service, operational management, and logistics control , to build lean operations and management skillsets. Tailored operational network planning and intelligent scheduling are devised based on industry characteristics, seasonality, warehouse network, turnover efficiency, supply chain distribution, main line routes, regional flow patterns, and other parameters. This meticulous approach provides customers with comprehensive circular packaging services spanning pre-sales, sales, and post-sales phases, accelerating the industry’s transition away from single-use packaging.
ESG initiatives in China are transitioning from concept and theory to practice and implementation. The underlying ESG principles resonate with China's "dual carbon" objectives. Leveraging nearly two decades of industry insights, Horen continually explore innovative solutions for green logistics. Horen is the first company that pioneered and proposed net-circulation. In collaboration with National Development and Reform Commission (NDRC) Global Partnership Center and Beijing Institute of Green Finance and Sustainable Development, Horen has unveiled the world's first industry research report on net-zero circulation, "Net-Zero Circulation: Industrial Internet of Things Towards Carbon Neutrality".
In 2023, Horen collaborated with global green innovation partners such as Microsoft and launched a China ESG alliance, continually disseminating ideas and achievements across the globe. Serving as a founding member, Horen actively collaborate with other industry leaders within the alliance and share its expertise and experiences. Aimed at providing novel approaches for the industry's transition towards a green and low-carbon future, the collaboration covered areas such as product carbon footprint, circular emission reduction, green branding, technology empowerment, and digitalization.
Horen has rigorously embraced sustainable governance, embedding the concept deeply within the company’s operational and developmental processes. It passed a series of certification of standards such as ISO 9000, ISO 14000, ISO/IEC 20000-1:2018, ISO 14064-1:2018, GB/T 29490-2013, and ISO/IEC 27001:2013. These certifications cover pivotal areas such as product innovation, production and distribution, carbon footprint verification, and the integrity of information data security. This is a validation of Horen upholding the highest levels of excellence in sustainable business practices.
Looking into the future, Horen will continue its commitment to the development of a green circular industry chain and strategically target novel pathways in providing circular services. The company aims to fortify its ESG management system and expedite the establishment of a comprehensive intelligent packaging recycling service platform. By leveraging a platform-driven, globalized, and ecologically conscious approach and capabilities, Horen is poised to accelerate the development of an intelligent circular packaging service platform, and play a pivotal role in advancing the industry's sustainability goals.