Climate Change Data

Hospital Corporation of China Limited

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:34,838.887 tonnes of carbon dioxide equivalent
Scope 1 Emissions:3,685.285 tCO2e
Scope 2 Emissions:31,201.511 tCO2e
Total Energy Consumption:50,532.464 MWh
Water Consumption:833,106.360 tonnes
Waste Generated:1,972.7 tonnes
Carbon Intensity:168.088 kilogram of carbon dioxide equivalent/m2

ESG Focus Areas

  • Emissions
  • Use of Resources
  • Environment and Natural Resources
  • Climate Change
  • Employment and Labour Practices
  • Health and Safety
  • Development and Training
  • Labor Standards
  • Supply Chain Management
  • Product Responsibility
  • Anti-corruption
  • Community Investment

Environmental Achievements

  • Established and continuously improved the responsibility system for medical waste management.
  • Promotes environmental protection knowledge to employees and customers.
  • New infrastructure renovation projects used energy-saving and environmentally friendly materials and energy-saving lighting sources.
  • Upgrades and scientifically manages the boiler unit to effectively reduce the use of natural gas.

Social Achievements

  • 100% labour contract signing rate.
  • 100% social insurance coverage rate.
  • No work-related fatalities in each of the past three years.
  • No working days lost due to work-related injuries during the Reporting Period.
  • Employees trained accounted for 78.35% of the total employees with an average training hour of 16.69 hours.
  • No material non-compliance relating to child labour and forced labour.
  • Supply chain management platform obtained GSP certificate and Class III medical device business license.
  • No recall incident in the supply chain due to safety and health reasons.
  • 22 drugs, equipment and consumables suppliers signed relevant code of conduct clauses.
  • No complaints or disputes arising from the disclosure of patient privacy.
  • No corruption proceedings, penalties or sanctions against the Group and its employees.

Governance Achievements

  • Established an effective environmental, social and governance framework with board oversight.
  • Regularly reviews the performance of suppliers and ensures their service quality, environmental protection, social and governance performance are satisfactory and consistent.
  • Implemented Internal Reporting System for Major Adverse Events and Complaint Management System.

Climate Goals & Targets

Short-term Goals:
  • Maintain exhaust gas and greenhouse gas emissions intensity, hazardous waste emission intensity and non-hazardous waste emissions intensity at or below the level of the Reporting Period for the next three years (until FY2024).

Environmental Challenges

  • Increase in frequency and severity of extreme weather affecting operations.
  • Stricter climate legislation leading to higher operational and compliance costs and reputational risks.
Mitigation Strategies
  • Identify climate-related risks and prioritize those with serious implications.
  • Improve ability to cope with extreme weather conditions by improving emergency plans and upgrading equipment.
  • Regularly monitors existing and emerging trends, policies and regulations relating to climate.

Supply Chain Management

Supplier Audits: 28 suppliers

Responsible Procurement
  • Supplier access mechanism clarifying requirements for supplier qualification, scale, market position and customer structure.
  • Strict assessment of suppliers’ environmental and social risks.
  • Code of Conduct for Suppliers signed by drugs, equipment and consumables suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather affecting medical equipment, employees, and supply chain.
Transition Risks
  • Stricter climate legislation.

Reporting Standards

Frameworks Used: Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Awards & Recognition

  • 3A credit rating for Shanghai Yangsi Hospital
  • National Gold Prize for Blood Donation for Zhejiang Jinhua Guangfu Oncological Hospital
  • 5A status for Zhejiang Jinhua Guangfu Oncological Hospital
  • First batch of “Age-Friendly Medical Institutions” for Cixi Hospital

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:17,856.95 tCO2e/year
Scope 1 Emissions:2,470.49 tCO2e/year
Scope 2 Emissions:15,402.70 tCO2e/year
Total Energy Consumption:24,776.03 MWh/year
Water Consumption:419,718.00 m3/year
Waste Generated:1003.84 tons/year
Carbon Intensity:0.09 tCO2e/m²

ESG Focus Areas

  • Operational Compliance
  • Product Responsibility
  • Patient Satisfaction
  • Occupational Health and Safety
  • Development and Training
  • Supply Chain Management
  • Accessible Medical Care
  • Anti-corruption
  • Labour Standards
  • Emissions Management
  • Use of Resources
  • The Environment and Natural Resources
  • Climate Change
  • Product Research and Innovation
  • Intellectual Property Protection
  • Employment Practices
  • Community Development

Environmental Achievements

  • Reduced total GHG emissions from 34,838.89 tCO2e in 2021 to 17,856.95 tCO2e in 2022.
  • Reduced total hazardous waste from 1,085.46 tonnes in 2021 to 577.42 tonnes in 2022.
  • Reduced total non-hazardous waste from 887.24 tonnes in 2021 to 426.42 tonnes in 2022.
  • Improved medical waste management, achieving timely and legal disposal.

Social Achievements

  • Achieved zero work-related fatalities for three consecutive years.
  • No lost working days due to work injury during the reporting period.
  • Provided training to 3,148 employees (96% coverage rate), totaling 173,841 hours.
  • Improved medical practitioner qualification examination pass rate to 53.73% (from 47.22% in 2021).
  • Conducted 146 free clinic activities, covering more than 16,000 people.
  • Completed 163 health education sessions with 8,230 attendances.
  • More than 170,000 people benefited from volunteer services.

Governance Achievements

  • Implemented strict supplier management system, including “Supplier Units and Sales Personnel Qualification Audit Management System” and “New Products Audit and Pharmaceuticals Quality Files Management System”.
  • Formulated internal audit supervision systems such as Hospital Corporation Internal Audit Management System and Hospital Corporation Economic Responsibility Audit Management System.
  • Established a transparent and open reporting channel for misconduct or suspected corruption.

Climate Goals & Targets

Medium-term Goals:
  • Reduce electricity consumption intensity by 3% by 2030.
  • Reduce water consumption intensity by 5% by 2030.
  • Reduce non-hazardous waste intensity by 5% by 2030.
  • Reduce GHG emissions intensity by 3% by 2030.

Environmental Challenges

  • Potential climate-related risks such as extreme weather events disrupting operations and increasing costs.
  • Transition risks from tightening environmental regulations and market shifts.
  • Managing medical waste and reducing overall waste generation.
Mitigation Strategies
  • Implemented flexible working arrangements and preventive measures under severe weather conditions.
  • Improved emergency plans and upgraded facilities to enhance business stability.
  • Continuously monitors changes in laws and regulations related to climate change.
  • Set targets for reducing energy consumption and GHG emissions.
  • Improved waste management policies and practices, including employee training and investment in waste management infrastructure.

Supply Chain Management

Supplier Audits: 36 major suppliers audited

Responsible Procurement
  • Supplier Code of Conduct
  • Preference for local suppliers and environmentally friendly products.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Tightening national policies and regulations
  • Emergence of environment-related taxes

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 of the Rules Governing the Listing of Securities of The Stock Exchange of Hong Kong Limited)

Awards & Recognition

  • AAA credit rating for Shanghai Yangsi Hospital
  • 2022 Advanced Unit of the Municipal Hygiene and Health System for Jinhua Guangfu Hospital
  • Blood Donation Unit of the Provincial Hygiene and Health System for Jinhua Guangfu Hospital
  • Double Strong and Six Good Private Hospitals of the Hygiene and Health System of Zhejiang Province for Jinhua Guangfu Hospital and Yongkang Hospital
  • Health Promotion Hospital of Zhejiang Province for Jiande Hospital of Traditional Chinese Medicine Co., Ltd.
  • Senior Friendly Medical Institution of Hangzhou for Jiande Hospital of Traditional Chinese Medicine Co., Ltd.