Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Anti-corruption
• Talent attraction and retention
• R&D and innovation
• Product quality and safety
• Waste management
• Chemical management
• Animal welfare
• Career development
• Occupational health and safety (OHS)
• Supply chain management
• Intellectual property protection
• Data and privacy protection
• Energy consumption
• Emissions management
• Legal employment
• Community contribution
• Climate change

Environmental Achievements

• Invested RMB727,700 in environmental protection and encountered no environmental accidents such as chemical leakage.
• Saved about 61,000 kWh of electricity through energy-saving measures.
• Consumed 13,200 tons of water during the reporting period with no issues in sourcing fit-for-purpose water.
• Registered no soil erosion incidents in the project construction area and no adverse impact on the environment during the reporting period.

Social Achievements

• No work-related accidents; zero hours lost due to work-related injuries.
• 100% safety training coverage with 30 hours of per-capita training.
• Total person times of staff training reached 4,676.
• Donated RMB one million to the Chinese Red Cross Foundation to help control the COVID-19 pandemic.
• Donated surgical masks to Shanghai Oriental Hospital and an American organization.

Governance Achievements

• Established a Safety Committee to implement a safety responsibility system and regulate EHS management.
• Established rigorous Quality Risk Management Procedures.
• Developed a series of 168 clinical standard operating procedures (SOPs).
• No cases of corruption during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Supply chain risks in areas including compliance of suppliers, intellectual property infringement, raw material and component quality, severe weather and natural or man-made disaster.

Mitigation Strategies

• Clear systems and specifications, management measures, and supplier training to reduce supply chain risks.
• On-site supplier audits for raw and auxiliary materials and internal packaging materials.
• EHS audit and supervision requirements for contractor selection on projects under construction.

Supply Chain Management

Supplier Audits: Annual audits conducted on suppliers of raw and auxiliary materials and internal packaging materials.

Responsible Procurement

• Purchase Management System
• Warehouse Management System
• Plan Management System
• Supplier Management
• Material Supplier Management
• Consumables Supplier Management
• Supplier Monitoring and Maintenance
• Supplier Complaint Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards for Sustainability Reporting, ESG Reporting Guide

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• People-oriented
• Responsible Operation
• Product Liability
• Community Engagement

Environmental Achievements

• Reduced experimental wastewater discharge by 49% compared to 2019 (1,208 tonnes vs 2,370 tonnes)
• Implemented energy-saving measures such as LED lighting and temperature controls in offices and laboratories.
• Implemented waste reduction initiatives, including paperless office initiatives and waste recycling programs.

Social Achievements

• No labor disputes or child labor incidents.
• No work-related deaths or lost workdays due to injuries.
• Provided various employee benefits, including social insurance, housing provident fund, and other welfare payments.
• Conducted extensive employee training programs (2,081 female and 2,535 male employee training hours).

Governance Achievements

• Established an ESG working group to oversee ESG policies and strategies.
• Implemented an internal audit management system to strengthen internal controls and prevent illegal activities.
• Formulated anti-commercial bribery and conflict of interest management agreements.
• Established whistleblowing procedures for reporting unethical behavior.

Climate Goals & Targets

Environmental Challenges

• Large-scale construction of Guangzhou manufacturing facility impacting energy and water consumption.
• Managing environmental risks during the construction phase of the Guangzhou facility.

Mitigation Strategies

• Regular monitoring and evaluation of environmental risks during construction.
• Implementation of drainage ditches, sediment deposit ponds, and other greening measures to mitigate environmental impact.

Supply Chain Management

Supplier Audits: 844 suppliers (783 in Mainland China, 61 overseas)

Responsible Procurement

• Purchasing Management System
• Supplier Management
• Material Supplier Management
• Consumables Supplier Management
• Contractor Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange ESG Reporting Guide

Awards & Recognition

• 2020 Humanitarian Dedication Angel

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Product and Service Responsibility
• Talent Development
• Environmental Protection
• Responsible Operation
• Social Welfare

Environmental Achievements

• Obtained ISO 14001 Environmental Management System Certification at Guangzhou production base.
• Completed construction of biologics R&D platform project with environmental impact assessments and mitigation measures.

Social Achievements

• Upgraded supplementary commercial insurance for employees, including coverage for two children and critical illness insurance.
• Provided various employee care initiatives, including assistance for employees in economic difficulty, health supplies distribution, and psychological counseling.
• Achieved 100% employee training coverage.

Governance Achievements

• Issued anti-corruption and anti-bribery policies.
• Formulated the Reporting Policy for managing reporting incidents and protecting reporters.
• No major or significant deficiencies identified in internal control.

Climate Goals & Targets

Environmental Challenges

• Meeting more stringent domestic and international climate policies, laws, and regulations.
• Potential damage to reputation due to insufficient climate response actions.
• Potential impact of acute and chronic physical climate risks on operations and finances.

Mitigation Strategies

• Analyzing potential financial impact of climate risks and opportunities.
• Developing future plans integrating climate change risk management into overall operational risk management.
• Implementing measures to improve resource efficiency and develop resilience to climate change.

Supply Chain Management

Supplier Audits: 0 suppliers evaluated for environmental and social impacts

Responsible Procurement

• Multi-dimensional background investigation on suppliers.
• Regular meetings and communication with key suppliers.
• Periodic quality history evaluations.

Climate-Related Risks & Opportunities

Physical Risks

• Acute physical risks (extreme weather events)
• Chronic physical risks (long-term weather pattern changes)

Transition Risks

• Policies, laws, and regulations
• Reputation

Opportunities

• Resource efficiency
• Resilience

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, Shanghai Stock Exchange Guidelines No. 1 and No. 2

Certifications: ISO 14001, ISO 45001

Awards & Recognition

• Golden Yue Award - 2022 Company of the Year Public Responsibility
• Most Valuable Pharmaceutical and Medical Company
• Most Valuable IPO of the Year
• Best IR Award

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Product and Service Responsibility
• Talent Development
• Environmental Protection
• Social Welfare

Environmental Achievements

• Reduced carbon emissions by 144.9 tons through recycling 96.6 tons of waste methanol at the Guangzhou base.

Social Achievements

• Enhanced employee engagement and happiness through diversification initiatives, including lectures, online courses, and management training.
• Achieved zero reports of adverse reactions stemming from medication defects.
• Reduced employee turnover by 1.95% compared to the previous year (from 15.26% to 13.31%).

Governance Achievements

• Established a top-down ESG governance structure with a Board of Directors and an ESG Working Group.
• Implemented the Quality Risk Management Procedures and established a comprehensive quality management system.
• Formulated a comprehensive compliance management system incorporating international and domestic standards (ISO 37301).

Climate Goals & Targets

Environmental Challenges

• Operational risks
• Adverse drug reaction risk
• Financial risk
• Credit risk
• EHS risk
• Compliance risk
• Information security risk
• Climate-related risks (acute physical, chronic physical, policy and regulations, reputational)
• Non-climate related risks (not explicitly stated, but implied through general risk management discussion)

Mitigation Strategies

• Systematic operational analysis and monthly risk assessments.
• Effective adverse drug reaction event reporting mechanism.
• Annual budget management, digital tools for efficiency, and capital reserves.
• Strict distributor access system and accounts receivable management.
• Comprehensive EHS training system and regular safety inspections.
• Comprehensive compliance management system with internal audits and risk assessments.
• Comprehensive information security management system with regular updates and employee training.
• Integration of climate change risk management into daily work processes (ongoing).
• Various risk management systems and procedures (detailed in the report).

Supply Chain Management

Supplier Audits: 0 in 2023 for environmental and social impacts; 2 on-site audits of entrusted manufacturers for quality management.

Responsible Procurement

• Multi-dimensional background checks on suppliers.
• Quality assessment questionnaires and on-site audits.
• Regular quality re-audits.
• Bi-weekly online meetings and annual on-site communication with key suppliers.
• Periodic quality history evaluations.

Climate-Related Risks & Opportunities

Physical Risks

• Acute physical risks (extreme weather events)
• Chronic physical risks (long-term weather pattern changes)

Transition Risks

• Policy and regulatory risks (changes in climate policies and regulations)
• Reputational risks (failure to take proactive climate action)

Opportunities

• Resource efficiency (improving resource use efficiency)
• Adaptability (developing adaptability to climate change)

Reporting Standards

Frameworks Used: HKEX Environmental, Social and Governance Reporting Guide, Guidelines No. 2 for Application of Self-Regulation Rules for Companies Listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange

Certifications: ISO 14001 (Guangzhou InnoCare), ISO 45001 (Guangzhou InnoCare)

Awards & Recognition

• China’s Top 20 Listed Pharmaceuticals in ESG Competitiveness 2023
• Most Socially Responsible Pharmaceuticals of the 2023 Sina Finance “Golden Kirin”
• List of Innovative Listed Pharmaceuticals of the 2023 Future Healthcare VB100 Awards
• Top 10 Influential New Technologies and Products (ICP-332)
• 3rd Excellent Healthcare Employer of the Year (2023)
• Investor Relations Pioneer Award of iFinD Enterprise Account in 2022
• China’s New Economy Enterprise Top 500 for 2022
• Top 10 Innovative Pharmaceutical Enterprises of the Golden Walking Stick 2023