Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment, Health and Safety (EHS)
• Business Continuity Plans & Crisis and Information Management
• Operational Excellence
• Corporate Social Responsibility

Environmental Achievements

• Implemented measures to reduce energy consumption and increase energy efficiency
• Implemented waste reduction initiatives
• Implemented measures to mitigate emissions and achieved compliance with environmental standards

Social Achievements

• Maintained business continuity during the COVID-19 pandemic
• Provided COVID-19 testing services and PPE donations to support employees and communities
• Implemented various employee wellbeing initiatives including flexible work arrangements

Governance Achievements

• Implemented several projects to ensure reliable control on data security and privacy
• Developed company-wide IT policies in security, privacy and compliance aspects
• Established a set of rules to discourage bribery and corruption practices

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Potential hazards arising from the workplace
• Potential environmental incidents

Mitigation Strategies

• Implemented business continuity plan
• Established safety committees and implemented safety measures
• Prepared various response plans for environmental incidents

Supply Chain Management

Responsible Procurement

• Three quotations obtained to ensure fair competition; regular review of vendor performance; prohibition on employees disclosing trade secrets or receiving benefits from suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: ISO 9001:2015 (China)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Reduction
• Resource Efficiency
• Employee Well-being
• Inclusion and Diversity
• Business Ethics
• Data Security
• Supply Chain Management
• Animal Welfare
• Clinical Trial Ethics

Environmental Achievements

• No investigations by Environmental Protection Department for environmental violations in 2022.
• 30% non-hazardous waste density reduction target set for 2030 (compared to 2019).

Social Achievements

• 100% employee training coverage rate in 2022.
• Launched health and wellness programs including yoga classes and counseling.
• Provided food and medicine to employees during Shanghai lockdown.

Governance Achievements

• Established a top-down ESG governance structure with a Board of Directors and ESG Working Group.
• 79.05% of employees attended anti-corruption training in 2022.
• All board members attended anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Increased water consumption and emissions due to business growth and expansion.
• Climate change related physical risks (extreme weather, supply chain disruptions).
• Climate change related transition risks (regulatory changes, market shifts).

Mitigation Strategies

• Investing in site improvements and renovations to enhance energy and resource management.
• Implementing a climate change management system aligned with TCFD guidelines.
• Developing strategies to mitigate climate-related risks and seize opportunities.
• Implementing measures to reduce energy consumption and greenhouse gas emissions.

Supply Chain Management

Supplier Audits: 32% of suppliers evaluated for environmental, labor, and ethical issues in 2022.

Responsible Procurement

• Supplier Code of Conduct (updated in 2022), covering environmental management, labor and human rights, and anti-corruption.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting power and water supply.
• Supply chain disruptions.

Transition Risks

• Increased costs of compliance to meet regulatory requirements.
• Equipment transformation and operational changes.
• Increased production costs from changes in raw material prices.

Reporting Standards

Frameworks Used: HKEX's Environmental, Social and Governance Reporting Guide

Certifications: ISO 9001 (Frontage Shanghai), ISO 27001 (Frontage Shanghai)

Environmental Metrics

ESG Focus Areas

• Environment, Health and Safety (EHS)
• Business Continuity and Crisis Management (BCM)
• Operational Excellence (OpEx)
• Corporate Social Responsibility (CSR)

Environmental Achievements

• 17.28% total energy density reduction (compared to 2019)
• 9.93% GHG emission density reduction (compared to 2019)
• 34.88% non-hazardous waste density reduction (compared to 2019)
• 100% compliant disposal of hazardous waste
• 0 environmental violations

Social Achievements

• 100% employee training coverage rate
• 100% key employee anti-corruption training rate
• No work-related fatalities in the past three years
• No violations of applicable laws and regulations on employees’ health and safety
• Various programs to support the education of the youth and local community (donating equipment, offering site visits, volunteering, donating food and funds)

Governance Achievements

• Established a top-down ESG governance structure, consisting of Governance and Implementation
• 242 supplier assessments with 100% passing rate
• No violations of the Company's policies found by the internal audit department
• No investigations targeting the Company by relevant governmental authorities for data security violations

Climate Goals & Targets

Environmental Challenges

• Due to the operation expansion in China and Canada, water consumption density increased in 2023.
• Increased number of complaints in 2023 (94 complaints)
• Potential extreme weather events disrupting power and water supply or inducing losses with plants and equipment; and supply chain disruptions leading to reduced or disrupted capacity
• Increased costs of compliance to meet regulatory requirements, and equipment transformation and operational changes as a result of lower emission caps and more stringent regulations

Mitigation Strategies

• The Company will take proactive actions to reduce water consumption density in the future.
• Implement emergency and disaster recovery policies and guidelines to address potential extreme events
• Continuously improve production technology and equipment by timely replacing outdated, high-energy-consuming, and low-efficiency electrical appliances with more efficient and energy-saving alternatives
• Strengthen statistical management of water and electricity consumption to detect anomalies promptly
• Enhance employees' awareness of resource conservation in their daily work

Supply Chain Management

Supplier Audits: 242 in 2023

Responsible Procurement

• Supplier Code of Conduct
• Prioritizing suppliers using simplified packaging and environment-friendly products

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting power and water supply
• Supply chain disruptions

Transition Risks

• Increased costs of compliance
• Equipment transformation and operational changes

Reporting Standards

Frameworks Used: HKEX’s Environmental, Social and Governance Reporting Guide

Certifications: AAALAC (for Safety & Toxicology sites)