Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Investment and Development of ESG

Environmental Achievements

• Implemented waste sorting, recycling and waste reduction; promoted the reuse of waste paper for photocopying; encouraged employees to save water and electricity; reduced the use of disposable cutlery to reduce energy consumption and carbon emissions; implemented a resource recycling policy.
• Converted the fuel of all boilers from heavy fuel oil to natural gas.

Social Achievements

• Established YungShin Social Welfare Foundation, TienTe Lee Biomedical Foundation, and YungShin Elderly Nursing Home.
• Provided employees with adequate care and respect by adopting humane management; complied with local labor-related regulations and continuously enhanced the welfare and interests of employees, including meal allowances, group insurance, scholarships for employees’ children, general health examinations, employee travel, performance bonus, labor-management meeting, etc.

Governance Achievements

• Established and disclosed the "Corporate Governance Best Practice Principles"; maintained internal control systems in accordance with regulations for compliance.
• Appointed Independent Directors and established an Audit Committee.
• Formulated the Corporate Governance Best Practice Principles, Ethical Corporate Management Best Practice Principles, and Code of Conduct.
• Established the "Regulations Governing the Self-Evaluation of the Performance of the Board of Directors".

Climate Goals & Targets

Environmental Challenges

• Both developed and developing countries have focused on biotech industry. State resources are used to support not only research, development and plant construction, but also even for mergers and acquisitions.
• Individual countries have been continuously enhancing the rigor of their regulatory supervision, requirement for raw materials, and specifications of finished products, as also inspections.
• Countries around the world actively compete for biotech talents.
• Most biotech raw materials for Taiwan and the Corporation are imported as the domestic market is small, making production uneconomic because of economies of scale.
• Large biotech companies are getting merged or acquired by multinational pharmaceutical companies.
• Lower budgetary support for healthcare in various countries has hurt the profitability of generic drug makers.
• Countries across the world have imposed stricter regulations on drug inspections, registration, and patents.
• Fiscal constraints have forced many countries to exercise control over medical expenditure.

Mitigation Strategies

• Set up a cross-company platform response team from the very beginning to share raw materials and transportation and address emergencies and response strategies in different countries.
• Reviewed the source and supply of raw materials. In the short term, the inventory of raw materials for important and strategic pharmaceutical products has been extended from quarterly accrual to annual accrual in order to maintain normal production and supply.
• In the long term, the second and third sources and the independently developed raw materials will be added as the strategic direction to maintain the Group's long-term market competitiveness.
• Continue to operate with its internal competencies and enhance its competitive strength.
• Continue to seek opportunities to consolidate our upstream and downstream operations, and expand the scale to enhance the development of the upstream and downstream value chain.
• Conforming to PIC/S GMP standards of international pharmaceutical administration led by the European Union has helped us expand in international markets.
• Expanded its operations into Southeast Asia, United States, China, and Japan over many years which will help increase the global presence of YungShin Group's generic drugs.

Supply Chain Management

Responsible Procurement

• Formulated the Code of Supplier Undertaking, requiring suppliers to implement environmental protection policy, attach great importance to the rights and interests of labor and human rights, labor health and safety.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Replaced heavy oil for boilers with natural gas in Youshi Second and Third Plant. A total of 25 natural gas boilers have been installed, which can reduce carbon emissions by about 740 tons per year, equivalent to the annual carbon absorption by 49 hectares of forest.
• Installed a solar energy supply system on the top floor of the Corporation's factory building, to provide green energy generation. The total installed capacity of solar photovoltaics is 655.3KW/hour.

Social Achievements

• Established TienTe Lee Biomedical Foundation and YungShin Social Welfare Foundation, engaged in social welfare and public welfare activities.
• YungShin Elderly Nursing Home served 45,990 seniors in 2022.
• Community Care and Caring Points provided services to implement primary preventive health care and delays disability in the community in 2022: 2,157 health promotion visits, 670 care visits, 670 telephone greeting.

Governance Achievements

• Established the Committee for Promoting Sustainable Development and set up a Sustainable Development Group to establish a mechanism for sustainable operation, draw up plans and promote related measures.
• Established the "Regulations Governing the Evaluation of the Performance of the Board of Directors" in 2020.
• Purchased liability insurance for Directors to cover their terms of service based on their business liabilities.

Climate Goals & Targets

Environmental Challenges

• Both advanced and developing countries take the biotech industry as their main development direction and use national resources to support the research, development, plant setup, and even mergers and acquisitions.
• Individual countries have been continuously enhancing the rigor of their regulatory supervision, requirement for raw materials, and specifications of finished products, as also inspections.
• Countries around the world actively compete for biotech talents, while both Taiwan and the Corporation have failed to attract foreign biotech talent or competitive advantages have been inadequate.
• Most biotech raw materials for Taiwan and the Corporation are imported as the domestic market is small, making production uneconomic because of economies of scale.
• Large biotech companies are getting merged or acquired by multinational pharmaceutical companies or for products, both in quantity and scale, making it difficult to plan market strategies.
• Lower budgetary support for healthcare in various countries has hurt the profitability of generic drug makers.
• Countries across the world have imposed stricter regulations on drug inspections, registration, and patents.
• Fiscal constraints have forced many countries to exercise control over medical expenditure.

Mitigation Strategies

• Increase or decrease investments in businesses as appropriate to strengthen resources and form alliances, make alliances, get into mergers and acquire other pharmaceutical companies to improve the Group's competitiveness and increase market share.
• Controls R&D and supply of APIs, which are important elements for survival and development of generic drug companies.
• Set up a cross-corporation platform response team to share information on raw materials, transportation, unexpected variables in each country and response strategies.
• Extended the inventory of raw materials for important and strategic pharmaceutical products from quarterly accrual to annual accrual in order to maintain normal production and supply.
• Actively promote the activation of various assets, in addition to introducing mature companies to the capital market, and will examine internal intangible assets and activate their application, to create new benefits for the Group and continue to develop health related multi-angle management, so as to enhance the competitiveness of the Group.
• Expanded its operations into Southeast Asia, United States, China, and Japan over many years which will help increase the global presence of YungShin Group's generic drugs.

Supply Chain Management

Responsible Procurement

• Supplier Commitment Code or the Supply Management Standard, which requires suppliers to commit or sign the "Letter of Supplier's Commitment to Environment, Safety and Health"

Climate-Related Risks & Opportunities

Awards & Recognition

• Disaster Prevention and Rescue Program

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions by approximately 740 tons per year through boiler fuel conversion.
• Saved 44,358 kWh/year in electricity, reducing carbon emissions by 22.275 tons/year through LED lamp replacements.
• Recycled water reuse reached 11,000 tons in 2023 at the injection plant.

Social Achievements

• Established TienTe Lee Biomedical Foundation and YungShin Social Welfare Foundation, engaged in social welfare and public welfare activities.
• Organized 8 fire evacuation drills across all company sites in 2023.
• Implemented various employee welfare measures, including meal allowances, group insurance, scholarships for employees' children, general health examinations, employee travel, performance bonus, labor-management meeting, etc.

Governance Achievements

• Established the Sustainable Development Committee on November 9, 2022.
• Established the "Regulations Governing the Evaluation of the Performance of the Board of Directors" in 2020.
• Implemented a corporate governance director, I-Yun Wang, Director of the Chairman's Office.

Climate Goals & Targets

Environmental Challenges

• Intense cost-competitive generic drug market.
• Stricter regulations on drug inspections, registration, and patents.
• Competition for biotech talents.
• Reliance on imported raw materials.
• Mergers and acquisitions by large biotech companies.
• Lower budgetary support for healthcare in various countries.

Mitigation Strategies

• Controls R&D and supply of APIs.
• Conforms to PIC/s GMP standards.
• Seeks opportunities to consolidate upstream and downstream operations and expand scale.
• Initiated recruitment and training of talents in production, sales, research and development, and finance.
• Actively promotes the activation of various assets.

Supply Chain Management

Responsible Procurement

• Supplier Commitment Code or Supply Management Standard
• "Letter of Supplier's Commitment to Environment, Safety and Health"
• "Supplier Integrity Commitment Letter"

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Extreme changes in rainfall patterns
• Rising average temperatures

Transition Risks

• Increased carbon pricing
• Strengthening obligations for emission reporting

Opportunities

• Development or expansion of low-carbon products and services
• Utilization of life cycle analysis to manage the supply chain
• Using more efficient transportation methods

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB sustainability indicators, TCFD for climate-related financial disclosures

Certifications: PIC/S GMP