Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Accensi replaced lighting in Lara factory, reducing energy consumption by 48% (68,890 kWh saved annually).

Social Achievements

• Lipa Pharmaceuticals Limited won the 2021 Complementary Medicines Australia Sustainability Award.
• Cheetham conducted an employee alignment survey to improve employee engagement.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Lingering COVID-19 pandemic.
• Supply chain disruptions.
• Labor shortages.
• Inflationary pressures.
• Limited availability and high cost of international freight capacity.
• Subdued demand for pharmaceutical salt in Asian markets.
• COVID-19 impacted progress of development of seviprotimut-L and Halneuron™ (supply chain disruptions delayed production of drug product).

Mitigation Strategies

• Increased pricing.
• Streamlined operations.
• Improved efficiency.
• Capitalized on new market trends.
• Effective pricing strategies and improvement programs.
• Focus on cost reduction, streamlining of product offerings and pricing.
• Reorganization of Australian Agribusiness into two operating divisions.
• Investment in new equipment and cross-functional technology projects.
• Operational reinforcement measures to protect employees and maintain operations during COVID-19 surge.

Supply Chain Management

Supplier Audits: Regular monitoring, audits and evaluations are carried out by the Group’s businesses to assess the performance of its suppliers.

Responsible Procurement

• Supplier Code of Conduct requiring commitment to human rights, working conditions, occupational health and safety, non-discrimination, business ethics and environmental stewardship.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: FSSC22000 Food Safety compliance certification (Vitaquest)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Lipa Pharmaceuticals Limited won the 2021 Complementary Medicines Australia Sustainability Award.

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Total non-hazardous waste produced decreased by 31% (against 2021)
• Set up environmental-related targets across the Group’s businesses
• Conducted external energy audits at Lipa to formulate an Emission Reduction Plan

Social Achievements

• Average number of training hours completed by full-time employees increased by 38% as compared with 2021 (3.9 hours)
• Number of suppliers engaged: 5,458
• Work-related Fatalities in the Past Three Years: 0

Governance Achievements

• Kick-started the journey to aligning our reporting to the TCFD framework to assess and enhance our readiness

Climate Goals & Targets

Environmental Challenges

• Ongoing changes and challenges worldwide
• Extreme rainy weather affecting harvesting activities and increasing fuel consumption at Cheetham
• Increased usage of bituminous coal for the coal boiler at Dominion to accommodate longer operating hours

Mitigation Strategies

• Various programmes implemented throughout our supply chain to review and screen suppliers according to their sustainability performance
• Business units have further refined various environmental targets to minimise our environmental footprint
• Implementing the action items under the energy and gas targets

Supply Chain Management

Supplier Audits: Around 100 suppliers reviewed at Cheetham in 2022. Top 100 vendors evaluated at Vitaquest using Procurement Vendor Scorecards.

Responsible Procurement

• Supplier Code of Conduct
• Ethical Sourcing and Responsible Trading Policy (Dominion)
• Management of Purchased Materials and Management of Service Suppliers standard operating procedures (Vitaquest)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (drought, bushfires)
• Damage to assets and facilities from natural disasters

Transition Risks

• Changes in emissions regulations
• Consumer expectations
• Volatile fuel prices and supply disruptions

Opportunities

• Innovation in products and processes
• Enhancement of supply chain resilience

Reporting Standards

Frameworks Used: TCFD, Hong Kong Stock Exchange ESG Guide

Certifications: ISO 14001:2015 (Accensi and Cheetham), ISO 45001 (Cheetham and Dominion), ISO 9001 (Accensi, Cheetham, Dominion), FSSC 22000 (Vitaquest)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Lipa Pharmaceuticals Limited: 2022 Complementary Medicines Australia Judge’s Choice Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Consumption
• Waste Management
• Water Use
• Human Capital Development
• Occupational Health and Safety
• Supply Chain Management
• Product Responsibility
• Community Investment
• Corporate Governance
• Business Ethics

Environmental Achievements

• Total energy intensity maintained at 0.039 kWh/HK$’000 revenue
• Total GHG emissions intensity maintained at 0.011 tonne CO2e/HK$’000 revenue
• Total tonnes of packaging material used reduced by 9% (compared with 2022)
• Lipa installed a Chiller Management System (CMS) to provide energy-saving recommendations
• Accensi replaced lighting in Lara factory, reducing energy consumption by 48%
• Vitaquest installed solar panels generating 401,035 kWh of energy in Q3 2023
• Lipa introduced a new recycling stream for gelatin, diverting 42 tonnes of waste from landfills

Social Achievements

• Work-related Fatalities in the Past Three Years: 0
• Lost Time Injury Rate reduced by 58% to 5.0 (compared with 2022)
• Established Anti-Harassment Policy in October 2023
• Launched Workforce Diversity Policy in February 2024
• Employee alignment and engagement survey carried out by Cheetham
• Lipa implemented Early Intervention and Training Support system
• Accensi introduced powered air-purifying respirators (PAPR) for respiratory protection

Governance Achievements

• Further escalated efforts to identify and prioritize climate-related risks and opportunities
• Implemented the Biodiversity Policy in February 2024
• Biannual anti-bribery and anti-corruption control assessments conducted

Climate Goals & Targets

Environmental Challenges

• Extreme weather events increasing in frequency and severity
• Potential disruptions due to climate-related weather events
• Enhanced reporting obligations increasing costs
• Transitioning to lower emissions technology requiring significant R&D investment
• Changing customer behaviour reducing demand for products
• Potential damage from natural disasters disrupting operations

Mitigation Strategies

• Developed contingency plans for climate-related weather events
• Facility design and equipment enhancement to mitigate physical risks
• Developed decarbonisation pathway to move towards net zero emissions
• Implemented various water-saving measures
• Established supplier management standards
• Implemented recall procedures to manage product quality and potential recalls

Supply Chain Management

Supplier Audits: 40 major raw material and packaging material suppliers reviewed at Cheetham

Responsible Procurement

• Supplier Code of Conduct
• Ethical Sourcing and Responsible Trading Policy (Dominion)
• Procurement Vendor Scorecards (Vitaquest)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Typhoons
• Extreme heat
• Wildfires

Transition Risks

• Enhanced reporting obligations
• Transitioning to lower emissions technology
• Changing customer behaviour
• Increased stakeholder concern

Opportunities

• Access to new markets
• Use of new technologies/lower-emission sources of energy
• Development of new products or services
• Enhanced supply chain management

Reporting Standards

Frameworks Used: TCFD, Hong Kong Stock Exchange ESG Guide

Certifications: ISO 14001:2015 (Accensi, Cheetham), ISO 45001 (Cheetham, Dominion), ISO 9001 (Accensi, Cheetham, Dominion), FSSC 22000 (Vitaquest, Dominion), HACCP (Cheetham)

Awards & Recognition

• Lipa: High-Quality Manufacturer of the Year (CMA Annual Industry Awards 2023)
• Vitaquest: Certificate of Innovation in Sustainability (Department of Environmental Protection of the State of New Jersey)