Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• General Compliance

Environmental Achievements

• Reduced paper consumption with 125kg recycled out of 250kg disposed.
• Minimized electricity consumption through flexible working arrangements and digital platforms.

Social Achievements

• Established human resources policies and procedures for compensation, dismissal, recruitment, and promotion.
• Implemented a performance management mechanism for employee development and career advancement.
• Maintained a safe working environment with no work-related fatalities or lost days due to work injury in the past three years.

Governance Achievements

• Established an ESG working group to monitor ESG performance and compliance.
• Implemented a strict supplier selection process to ensure compliance with environmental, labor, and ethical standards.
• Established anti-corruption policies and procedures, including a whistleblowing mechanism.

Climate Goals & Targets

Environmental Challenges

• Potential risks from climate change, including increased energy consumption and cold-chain logistics costs.
• Transition risks from changing policies and regulations related to low-carbon economy.
• Reputational risks from climate change-related disruptions.

Mitigation Strategies

• Implementing Green Office initiatives to reduce energy and resource consumption.
• Providing training and drills for employees to enhance their awareness and ability to cope with potential disasters.
• Assessing potential risks from climate change and developing mitigation strategies.

Supply Chain Management

Responsible Procurement

• Strict supplier selection process based on risk assessment.
• Third-Party Supplier Questionnaire and Standard Compliance Clauses.
• Anti-Corruption Guideline Policy training for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Increased energy consumption
• Higher demands for cold-chain logistics
• Disruption of operations due to extreme weather events

Transition Risks

• Requirement to modify company operations or development
• Devaluation of assets due to regulatory changes
• Potential interruption of business operations due to aggressive policy changes

Reporting Standards

Frameworks Used: Appendix 27 – Environmental, Social and Governance Reporting Guide of the Rules Governing the Listing of Securities on the Main Board of the Stock Exchange of Hong Kong Limited

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• General Compliance

Environmental Achievements

• 65% reduction in petroleum consumption compared to 2021
• Recycled 110kg of paper out of 626kg disposed

Social Achievements

• Established a ‘9 Box Performance Grid’ to analyze talent base and develop customized skill improvement plans.
• Conducted a series of online trainings and offline workshops focusing on improving innovation and interpersonal skills.
• Provided 2,325.5 training hours to 129 employees (average 18 hours per employee).

Governance Achievements

• Established an ESG working group to collect and analyze data, ensure compliance, and monitor ESG strategies.
• Engaged an external advisor for annual risk assessment.
• Implemented the EDC system to protect patients' private information and health data.

Climate Goals & Targets

Environmental Challenges

• Increased electricity consumption due to business expansion and increased use of high-powered laboratory equipment.
• Increased water consumption due to increased irrigation and waterproofing work in Beijing office.
• Potential risks from climate change, including increased electricity consumption, higher demands for cold-chain logistics, and potential disruptions to operations.

Mitigation Strategies

• Tighter controls in Green Office commitments, including adopting energy-efficient equipment and advocating energy-saving behaviors.
• Involving employees in energy and water-saving practices, conducting maintenance on water supply systems, and providing water conservation training.
• Providing trainings and drills for employees to enhance their awareness and ability to cope with potential disasters.

Supply Chain Management

Responsible Procurement

• Strict supplier selection process considering experience, reputation, licenses, and environmental and social impacts.
• Classification of suppliers into three risk classes (A, B, C) with varying due diligence requirements.
• Distribution of Anti-Corruption Guideline Policy and compliance trainings to suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Increased electricity consumption
• Higher demands for cold-chain logistics
• Potential disruptions to operations due to extreme weather events

Transition Risks

• Changes in company operations or future development due to new regulations
• Devaluation of assets due to regulatory changes
• Potential interruption of business operations due to aggressive climate policies

Reporting Standards

Frameworks Used: Appendix 27 – Environmental, Social and Governance Reporting Guide of the Rules Governing the Listing of Securities on the Main Board of the Stock Exchange of Hong Kong Limited

Awards & Recognition

• Listed in the “Annual Enterprise List of Chinese Social Values” by South Reviews

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• General Compliance

Environmental Achievements

• Reduced paper consumption by 53% compared to 2022.
• Implemented a Solvent Management Plan to minimize hazardous waste.

Social Achievements

• Significantly decreased employee turnover rate at the company level.
• Implemented flexible working time policy to improve work-life balance.
• Provided over 1500 training hours to employees.

Governance Achievements

• Established a comprehensive quality management system.
• Implemented Anti-Corruption Guideline Policy, Anti-Money Laundering Compliance Provisions, and Whistleblowing and Anti-Fraud Policy.
• Provided regular compliance trainings to employees with 100% coverage.

Climate Goals & Targets

Environmental Challenges

• Increased electricity consumption due to the development of gene therapy program.
• Increased petrol consumption due to increased business visits.
• Potential risks from climate change impacting cold chain logistics and facility maintenance.
• Potential transition risks from changing climate policies and regulations.

Mitigation Strategies

• Implementing energy-saving initiatives in the workplace.
• Adopting energy-efficient equipment and controlling indoor temperature ranges.
• Actively organizing training and anti-disaster drills for employees.
• Developing standard operating procedures for responding to extreme weather events.
• Implementing efficient investments and increasing the resilience of business operations.

Supply Chain Management

Responsible Procurement

• Rigorous supplier selection process considering experience, reputation, licenses, and environmental and social performance.
• Third-Party Supplier Questionnaire and Standard Compliance Clauses.
• Distribution of Anti-Corruption Guideline Policy and compliance trainings for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Increased electricity consumption due to rising temperatures.
• Increased cold chain logistics costs.
• Potential damage from extreme weather events.

Transition Risks

• Changes to operations or future growth due to changing climate policies.
• Devaluation of assets.
• Potential disruption to supply chain.
• Reputational risk.

Reporting Standards

Frameworks Used: Appendix C2 – Environmental, Social and Governance Reporting Guide (ESG Reporting Guide) of the Rules Governing the Listing of Securities on the Main Board of the Stock Exchange of Hong Kong Limited