Climate Change Data

Venus Medtech (Hangzhou) Inc.

Climate Impact & Sustainability Data (2019, 2022)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:42,114.96 tCO2e
Scope 1 Emissions:26.97 tCO2e
Scope 2 Emissions:2,087.99 tCO2e
Total Energy Consumption:13,078.32 MWh
Water Consumption:26,527 tonnes
Waste Generated:2194.44 tonnes (hazardous), 30.45 tonnes (non-hazardous)

ESG Focus Areas

  • Environmental protection
  • Social responsibility
  • Corporate governance

Environmental Achievements

  • Reduced carbon footprint by implementing energy and water conservation measures.
  • Properly treated emissions before discharge.
  • Hazardous waste handled by a qualified third-party environmental protection company.

Social Achievements

  • Donated over RMB32.5 million to charitable institutions.
  • Established a competitive remuneration and benefit system for employees.
  • Provided various incentives, benefits and promotion channels for employees.
  • Implemented a comprehensive quality management system based on ISO13485.

Governance Achievements

  • Established three Board Committees: Audit Committee, Remuneration and Assessment Committee, and Nomination Committee.
  • Complied with the provisions of the Corporate Governance Code.
  • Adopted a Board diversity policy.

Climate Goals & Targets

Long-term Goals:
  • Become a global leader in transcatheter solutions for structural heart diseases.
Medium-term Goals:
  • Expand presence in North America, EU, and emerging markets.
Short-term Goals:
  • Increase sales of VenusA-Valve in China and other countries.
  • Launch VenusA-Plus and other product candidates in the Chinese market.

Environmental Challenges

  • Reduced number of TAVR procedures due to the COVID-19 outbreak.
  • Competition in the TAVR market.
  • Reliance on one core product (VenusA-Valve).
Mitigation Strategies
  • Continued efforts in marketing and expansion to increase sales of VenusA-Valve.
  • Implementation of a systematic TAVR training program.
  • Development of new products (VenusA-Plus, VenusP-Valve, TriGUARD3).

Supply Chain Management

Supplier Audits: Strict supplier review system (document review, sample review, on-site review, quality system review)

Responsible Procurement
  • Procedures of Procurement Control and Control Procedures of Supplier Management
  • Control Procedure of Relevant Parties’ Environment, Safety and Health

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Main Board Listing Rules of HKEx)

Certifications: ISO 13485

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:4,427.71 tCO2e/year (Scope 1 and 2)
Scope 1 Emissions:70.21 tCO2e/year
Scope 2 Emissions:4,357.50 tCO2e/year
Total Energy Consumption:7,738.85 MWh/year
Water Consumption:616,540 tonnes/year
Waste Generated:1,051.66 tons/year (hazardous); 1,020.98 tons/year (non-hazardous)

ESG Focus Areas

  • Product quality and safety
  • Employee care
  • Environmental responsibility
  • Supply chain management
  • Intellectual property protection
  • Integrity and honesty

Environmental Achievements

  • Achieved 2022 environmental protection objectives (electricity and water consumption per unit product same or lower than 2021; all new, reconstruction, and expansion projects achieved organized exhaust gas management; 80% reduction of hazardous waste liquid through low-temperature distillation, molecular sieve adsorption, and other processes by 2023).

Social Achievements

  • Established a market-competitive remuneration and benefit system for employees.
  • Implemented a comprehensive training system with an 83.70% training rate.
  • Maintained a relatively balanced gender ratio in the workforce (approximately 3:4).

Governance Achievements

  • Established a three-tier ESG governance structure.
  • Adopted a Board diversity policy.
  • Implemented a series of anti-corruption policies.

Climate Goals & Targets

Short-term Goals:
  • 80% reduction of hazardous waste liquid through low-temperature distillation, molecular sieve adsorption, and other processes by 2023.

Environmental Challenges

  • Negative impact of COVID-19 on patient visits and physician educational activities, affecting sales volume of TAVR products.
  • Challenges in enhancing the commercial profitability of TAVR procedures and promoting sustainable and quality development.
  • Impairment losses on certain intangible assets and goodwill due to the termination of business in Keystone and its subsidiaries.
Mitigation Strategies
  • Continuous efforts in expanding global market and improving overseas commercialization channels.
  • Tapping into first-mover advantages, enhancing marketing system, stepping up academic promotion and physician education.
  • Launching post-marketing clinical trials and exploring innovative payment methods.
  • Moving Keystone Group’s business to the PRC and continuing the registration process for TriGUARD3’s application to the NMPA.

Supply Chain Management

Supplier Audits: Annual evaluations of 115 suppliers in 2022; 3 suppliers dismissed for not meeting requirements.

Responsible Procurement
  • Green procurement
  • Prohibition of child labor and forced labor

Climate-Related Risks & Opportunities

Physical Risks
  • Temperature rise and extreme weather events (typhoons, floods).
Transition Risks
  • Stringent government policies and measures to achieve carbon emission reduction targets.
  • Changes in market demand due to inability to adapt to climate change.

Reporting Standards

Frameworks Used: Appendix 27 of the Environmental, Social and Governance Reporting Guide (the “Guide”) of the Main Board Listing Rules of the Stock Exchange

Certifications: ISO 13485, ISO 45001, ISO 27001, CNAS