Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Hazardous waste intensity reduced by 8.40% year-on-year to 1.46 kg/RMB10,000
• Greenhouse gas emissions per revenue unit decreased by 2.48% year-on-year to 0.086 ton of CO2 equivalent/RMB10,000
• 100% of manufacturing bases passed ISO 14001:2015 environmental management system certification

Social Achievements

• 100% employee training coverage achieved
• 83.74% of suppliers accepted environmental, labor, and ethical evaluations
• Average training hours per employee reached 18.09 hours
• 100% anti-corruption training coverage for employees and directors

Governance Achievements

• Updated 3SBIO INC ESG Code of Conduct to include supplier anti-corruption policy requirements
• Regular audits conducted on anti-corruption systems
• Executive Compensation Linked To ESG: Yes (linked to key ESG indicators)

Climate Goals & Targets

Environmental Challenges

• Potential risks from climate change including policy and legal risks, technology risks, market risks, reputation risks, acute physical risks, and chronic physical risks.
• Supply chain disruptions due to the pandemic and international situation

Mitigation Strategies

• Supplier diversification and development of secondary supply sources
• Shortened material supply cycles through increased backup suppliers and localization substitution
• Improved energy use efficiency through equipment technology renovation and energy-saving measures
• Purchase of clean electricity

Supply Chain Management

Supplier Audits: 83.74% of suppliers underwent environmental, labor, and ethical assessments

Responsible Procurement

• Supplier Compliance Statement (since 2018)
• Regular quality inspections (written and on-site)
• Quality guarantee agreements with strategic suppliers
• Annual quality evaluations

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons)
• Power outages
• Waterlogging
• Persistent scorching weather

Transition Risks

• Regulatory changes demanding clean energy
• Market shifts affecting product demand

Opportunities

• Increased efficiency in energy and water resource use
• More low-emission/clean energy use
• Development of products addressing climate change-related diseases

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange's Environmental, Social and Governance Reporting Guide (2020 edition)

Certifications: ISO 14001:2015 (all manufacturing bases), ISO 45001:2018 (all manufacturing bases)

Awards & Recognition

• 2022 Greater China Social Enterprise Excellence (HRoot)
• 2022 China Good Value Employer of the Year (Enfovia)
• 2022 China Best Health Employer Innovation Project Award (China Human Resource Management Research Institute)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Product Quality and Safety
• Compliance Operation
• Supply Chain Resilience
• Medical Inclusion and Health Care Accessibility
• Occupational Health and Safety
• Industry Development
• Information Security and Privacy Protection
• Intellectual Property Rights (IPRs) Protection
• Climate Change Mitigation and Adaptation
• Business Ethics
• Emissions Management
• Resource Conservation and Utilization

Environmental Achievements

• Hazardous waste intensity decreased by 10.88% year-on-year to 1.30 kg/RMB10,000.
• Shenyang Sunshine purchased 2,460 MWh of wind power, with clean power use accounting for 17.93% of the base’s total electricity consumption.

Social Achievements

• Training hours per person averaged 20.90 hours.
• The percentage of anti-corruption training for Board directors reached 100%.
• Received the “2023 Excellent Employer Award” and the “2023 China BOLE Value Employer of the Year”.

Governance Achievements

• Maintained an “AA” rating in the MSCI ESG rating, ranking in the top 16% among global biotechnology companies.
• Maintained a “B” rating (management level) in the CDP climate change questionnaire for the fourth consecutive year.
• Established a top-down ESG management framework with an ESG Committee and an ESG Working Group.

Climate Goals & Targets

Environmental Challenges

• Potential risks from climate change including policy and legal risks, technical risks, reputational risks, acute physical risks, and chronic physical risks.
• Supply chain disruptions due to various factors.

Mitigation Strategies

• Developed a closed-loop compliance risk management system.
• Established a Process Project Department to optimize business processes and improve authorized management.
• Implemented measures to improve energy use efficiency, optimize warehousing logistics, implement green packaging, and purchase clean electricity.
• Developed secondary supply sources and increased domestic suppliers to enhance supply chain resilience.

Supply Chain Management

Supplier Audits: 148 written inspections and 96 on-site inspections in 2023; 25 new supplier qualifications reviewed.

Responsible Procurement

• Quality agreements with strategic suppliers
• Supplier Compliance Statement (Code of Conduct for Suppliers)
• Environmental, labor, and ethical assessments of 87.44% of suppliers
• Due diligence conducted by Dun & Bradstreet using Risk Raider

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (typhoons)
• Abnormal power supply

Transition Risks

• Regulatory changes demanding clean energy
• Increased operational costs from carbon emissions trading

Opportunities

• Increased efficiency in energy and water resource use
• More low-emission or clean energy use
• Development of products addressing climate change-related diseases

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange's Environmental, Social and Governance Reporting Guide

Certifications: ISO 14001:2015 (all manufacturing bases except Guangdong Sunshine), ISO 45001:2018 (all manufacturing bases)

Awards & Recognition

• 2023 Excellent Employer Award (HRoot)
• 2023 China BOLE Value Employer of the Year (Bole Club)