Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product quality and safety
• Product innovation
• Occupational health and safety
• Employee training and development
• Business ethics and anti-corruption
• Employee rights and interest protection
• Employee benefits
• Intellectual property protection
• Compliant operations
• Quality services
• Risk management
• Responsible marketing
• Privacy and data protection
• Health accessibility
• Employment and retention
• Supply chain management
• Waste management
• Use of resources
• Community welfare
• Greenhouse gas emission
• Mitigation and adaption to climate change

Environmental Achievements

• Reduced hazardous waste produced to 69.78 tons in 2022
• Reduced non-hazardous waste produced to 37.92 tons in 2022
• Clover’s CDMO received an EU GMP certificate
• Company’s in-house manufacturing facility in Changxing, Zhejiang province received China GMP certification

Social Achievements

• Held a Compliance Day for a Safe Workplace
• Established a CEO Mailbox for employee feedback
• Conducted an employee canteen satisfaction survey at Clover Zhejiang
• Provided employees with comprehensive benefits program including commercial insurance, holiday gifts and birthday allowances
• No reported violation of labor laws and regulations
• No cases of child labor or forced labor

Governance Achievements

• Established an Anti-Bribery and Anti-Corruption policy
• Issued a Code of Ethics and Standards of Conduct
• Conducted regular compliance training for all employees
• Developed the Reporting Concerns and Responding to Allegations procedure
• Established management policies for supplier approval, procurement, and service provider management

Climate Goals & Targets

Environmental Challenges

• Demand for COVID-19 vaccines declined compared with 2021
• Navigating the current macroeconomic environment

Mitigation Strategies

• Updated forecasted future sales of its COVID-19 vaccine product based on the market environment
• Heightened focus on core strengths and capabilities in vaccine development
• Prudently evaluated expenses and streamlined the organization to increase efficiency and improve effectiveness
• Suspended non-core activities
• Made headcount reductions in non-critical positions

Supply Chain Management

Supplier Audits: 24/year

Responsible Procurement

• Supplier Approval Standard Operating Procedure
• Procurement SOP
• Service Provider Management SOP

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Power outages

Reporting Standards

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

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 8
• Goal 9
• Goal 12
• Goal 13

The Group’s long-term ESG vision reflects its commitment to supporting the six of the United Nation’s Sustainable Development Goals (SDGs) that are most closely related to its business strategy and ESG philosophy.

Sustainable Products & Innovation

• SCB-2019 (CpG 1018/Alum)

Environmental Metrics

ESG Focus Areas

• Product quality and safety
• Product innovation
• Occupational health and safety
• Employee training and development
• Business ethics and anti-corruption
• Employee rights and interest protection
• Employee benefits
• Intellectual property protection
• Compliant operations
• Quality services
• Risk management
• Responsible marketing
• Privacy and data protection
• Health accessibility
• Employment and retention
• Supply chain management
• Waste management
• Promoting industry development
• Use of resources
• Community welfare
• Greenhouse gas emission mitigation and adaption to climate change

Environmental Achievements

• Reduced operating expenses by more than 50% year-on-year
• Reduced number of full-time employees to 387 while retaining core talents and capabilities

Social Achievements

• Launched employee well-being programs, including mental health communication lectures and heatstroke prevention supplies
• Organized spring outing activities for employees
• Designated November 5th as "Clover Day" with extra leave for employees
• Provided 2023 goal-setting training to employees
• Organized 360 feedback in the middle of the year
• Provided various training programs, including leadership training, general competency and professional knowledge sharing, and cross-departmental skills training
• Conducted a wide range of training activities covering 1,119 employees to enhance health and safety awareness
• Established a CEO Mailbox for direct employee feedback
• Employed five people with disabilities

Governance Achievements

• Established an anti-bribery and anti-corruption policy in accordance with ISO 37001
• Issued a Code of Ethics and Standards of Conduct
• Formulated the Policy on the Interaction and Communication with Medical Workers and Professional Medical Institutions
• Regularly conducted compliance training for all employees
• Established a whistleblowing policy and reporting channels
• Formulated the Personal Information Protection Policy and Personal Information Collection Procedures
• Established the EHS Organizational Structure & EHS Committee System and Administration Rule of “Three Violation Behaviors”

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic environment in 2023
• Limited market access and low demand for COVID-19 vaccination in China
• Shrinking market for quadrivalent seasonal influenza vaccine
• Potential risks associated with climate change
• Difficulties enrolling patients in clinical trials

Mitigation Strategies

• Improved operational efficiency, reducing operating expenses by more than 50% year-on-year
• Reduced number of full-time employees to 387
• Developed alternative sourcing strategies
• Established Comprehensive Emergency Response Plans and Measures for extreme weather conditions
• Established a backup waste disposal program
• Implemented water conservation measures

Supply Chain Management

Supplier Audits: 17

Responsible Procurement

• Supplier Approval Standard Operating Procedure
• Procurement SOP
• Service Provider Management SOP
• Supplier Audit Management Procedure
• Procedure for Quality Assurance Agreement
• Supplier Complaint Handling Procedures
• Third Party Due Diligence Process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (typhoons, floods)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 5: Gender Equality
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 9: Industry, Innovation, and Infrastructure

Group’s long-term ESG vision reflects its commitment to supporting these SDGs.

Sustainable Products & Innovation

• SCB-2019 (CpG 1018/Alum) COVID-19 vaccine
• AdimFlu-S (QIS) quadrivalent seasonal influenza vaccine
• SCB-1019 RSV vaccine candidate
• XBB.1.5-adapted COVID-19 vaccine candidate

Awards & Recognition

• Top 20 Chinese Pharmaceutical Listed Companies in ESG Competitiveness in 2023

Environmental Metrics

Social Achievements

• Headcount reductions to streamline the organization and other administrative cost saving.

Governance Achievements

• The Company has adopted the principles and code provisions of the Corporate Governance Code as the basis of the Company’s corporate governance practices.
• The Company has applied the principles and code provisions as set out in the Corporate Governance Code and has complied with the code provisions in the Corporate Governance Code during the Reporting Period.

Climate Goals & Targets

Environmental Challenges

• Evolving market conditions and expected future demand for COVID-19 vaccines.
• Macroeconomic environment challenges.

Mitigation Strategies

• Heightened focus on core strengths and capabilities in vaccine development.
• Prudent expense evaluation and organizational streamlining to increase efficiency and improve effectiveness.
• Generating revenue from vaccine sales, improving operating efficiency and maintaining a resilient cash position.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IAS 34 Interim Financial Reporting

Third-party Assurance: Ernst & Young

Awards & Recognition

• Inclusion in the Hang Seng Innovative Drug Index