Climate Change Data

Environmental Metrics

Social Achievements

• Made a charitable donation of RMB1.00 million to the Red Cross Society of China in support of its humanitarian aid for the reconstruction of the severe flooding in Henan Province.

Governance Achievements

• Adopted the Model Code for Securities Transactions by Directors of Listed Issuers.
• Established written guidelines for securities transactions by employees.
• Established three Board committees: Audit Committee, Remuneration Committee, and Nomination Committee.
• Updated the compliance manual on disclosable transactions and inside information.

Climate Goals & Targets

Environmental Challenges

• Uncertainty in global monetary and fiscal policy impacting the trade environment and causing volatility in supply chain prices and capital markets.
• Difficulty attracting, retaining, and motivating senior management and qualified scientific employees.
• Uncertainty in regulatory approval processes of the China NMPA, the U.S. FDA, and other regulatory authorities.
• Risk of insufficient quantities of investigational product or failure to meet acceptable quality levels or prices during clinical studies.

Mitigation Strategies

• Pay attention to market changes and restructure a more flexible strategy on the development of global immune-oncology therapy and continuous overseeing on the annual budget.
• Make all efforts on people retention, establish the career success plan and enhance recruitment system.
• Build a comprehensive guidance on global clinical development and enhance the data review and quality works for BLA purpose.
• Enhance monitoring and management to ensure the quality & quantities of clinical supplies.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Value innovation
• People development
• Environmental protection
• Social contribution
• Climate change

Environmental Achievements

• Decreased wastewater discharge from 1,946.8 m3 in 2022 to 1,023.3 m3 in 2023 due to office restructuring.
• Decreased air emissions from 1.07*10^8 m3 in 2022 to 9.73*10^7 m3 in 2023 and VOC emissions from 56.33 kg to 27.85 kg in 2023 due to office restructuring.
• Decreased solid waste generation from 17.79 tons in 2022 to 13.03 tons in 2023 due to office restructuring.
• Set targets for emissions, waste reduction, water efficiency, and energy efficiency for 2022-2026.

Social Achievements

• No incidents involving child labor or forced labor.
• 177 employees, including 2 with disabilities.
• 2,406.8 training hours provided to employees, averaging 13.60 hours per capita.
• No lost working days due to work-related injuries in the past three years.

Governance Achievements

• Established a three-tier ESG governance structure.
• Implemented the HBM Crisis Handling Procedure.
• No reported incidents related to corruption, bribery, extortion, fraud, or money laundering.

Climate Goals & Targets

Environmental Challenges

• Global supply chain risks such as prolonged delivery time, supply shortage, and declining capacity.
• Climate change related risks: extreme weather, rising temperatures, stringent environmental regulations, and hazardous waste management compliance requirements.
• Transition risks: low-carbon technology investment failure, changing consumer habits, uncertain market signals, rising raw material costs, and stakeholder expectations.

Mitigation Strategies

• Developing localized suppliers and reserving alternative suppliers.
• Strengthening risk assessment before investing in low-carbon technologies.
• Optimizing energy systems and improving energy use efficiency.
• Refining waste disposal management and developing more qualified near-site suppliers.
• Accelerating the upgrading of low-carbon and green operating attributes of products.
• Analyzing energy consumption trends and reducing equipment turnover frequency.
• Developing a diversified product portfolio.
• Strengthening communication with stakeholders.

Supply Chain Management

Supplier Audits: 484 suppliers; 100 with ISO 9001; 42 with ISO 14001

Responsible Procurement

• Supplier Management System (SMS)
• Quality Agreement
• Commitment Letter for Communication on HBM's Suppliers Code of Ethics for Business Conduct and the Commitment to Integrity
• ESG elements included in supplier questionnaire

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising temperatures
• Rising and changing weather patterns

Transition Risks

• Stringent environmental regulations
• Hazardous waste management compliance requirements
• Low-carbon technology investment failure
• Changing consumer habits
• Uncertain market signals
• Rising raw material costs

Reporting Standards

Frameworks Used: HKEx's ESG Reporting Guide

Awards & Recognition

• Nona Biosciences was selected as innovative small and medium-sized enterprise (SME) of the year 2023
• B7H4x4-1BB (HBM7008) was awarded the "The 3rd Jishi Cup Pharmaceutical Innovation Award - Trailblazer of the Year"
• HBM was honoured to be listed in BIO-PHARM 2023 "Leading Chinese Biotech and Pharmaceutical Companies - Top 10 Most Influential Biopharmaceutical Enterprises"
• HBM was selected as one of the 2023 Shanghai Enterprise Technology Centre
• Nona Biosciences was selected as one of the 2023 Suzhou Foreign-invested R&D Centre
• HBM was awarded the "8th Global Investment Carnival - Annual Innovation Award"