Climate Change Data

Charmacy Pharmaceutical Co., Ltd.

Climate Impact & Sustainability Data (2020, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:8,425.09 tonnes of CO2e
Scope 1 Emissions:2,087.45 tonnes of CO2e
Scope 2 Emissions:6,229.23 tonnes of CO2e
Scope 3 Emissions:108.40 tonnes of CO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:7,445,003.40 kWh
Water Consumption:62,253.00 tonnes
Waste Generated:103.55 tonnes
Carbon Intensity:2.11 tonnes of CO2e per RMB million of operating income

ESG Focus Areas

  • Product Quality and Safety
  • Supply Chain Management
  • Staff Health and Safety
  • Staff Development and Training
  • Compliant Employment and Staff Welfare
  • Anti-corruption Measures
  • Utilisation of Resources and Environmental Protection
  • Waste Disposal
  • Greenhouse Gas Emissions
  • Social Welfare

Environmental Achievements

  • Complied with applicable environmental regulations; no major violations.
  • Implemented waste paper recycling, paperless office, and water conservation initiatives.
  • Reduced petroleum gas usage and planned photovoltaic power generation for 2021.

Social Achievements

  • Provided competitive salaries and benefits, employee activities, and free meals/housing.
  • Maintained a low employee turnover rate (22.72%).
  • Donated anti-epidemic supplies and conducted community welfare activities.

Governance Achievements

  • Established an ESG Work Panel to oversee ESG matters.
  • Implemented anti-corruption policies and grievance mechanisms.
  • No bribery, extortion, fraud, or money laundering incidents reported.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Increased emissions in 2020 due to new vehicle purchases, increased use of refrigerated trucks, and expansion of logistics centers.
  • Increased waste generation in 2020 due to business expansion.
Mitigation Strategies
  • Monitoring new energy vehicles for future adoption.
  • Implementing resource-saving initiatives (recycling, paperless office, water conservation).
  • Utilizing intelligent lighting control systems in new logistics centers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier selection based on purchasing scale, sales policies, and quality assessment.
  • Annual quality review of suppliers.
  • Quality assurance agreements with suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

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

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Model Enterprise of Integrity in Guangdong Province
  • Contract Abiding and Credit Respecting Enterprise in Guangdong Province
  • Enterprise Having Great Love and Undertaking Responsibility in War against Epidemic
  • Golden Ant Innovation Award of Chinese logistics industry
  • Best pharmaceutical supply chain logistics centre (base)
  • Best pharmaceutical supply chain logistics service enterprise
  • Top-100 outstanding private pharmaceutical commercial circulation enterprises in China

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:6,889.10 tCO2e/year
Scope 1 Emissions:2,503.87 tCO2e/year
Scope 2 Emissions:4,327.20 tCO2e/year
Scope 3 Emissions:58.04 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:5,171,742.97 kWh/year
Water Consumption:54,343.00 tonnes/year
Waste Generated:82.6 tonnes/year (non-hazardous)
Carbon Intensity:1.65 tonnes of CO2e/RMB million of revenue (2022)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Complied with applicable environmental regulations in operating locations; no major violations.
  • Greenhouse gas emissions decreased from 7,745.86 tonnes of CO2e in 2021 to 6,889.10 tonnes of CO2e in 2022.
  • Waste reduction initiatives implemented, including recycling of used cartons and promotion of paperless office.

Social Achievements

  • Provided competitive salaries and benefits, including employee canteen, dormitories, and various welfare programs.
  • Organized employee activities, such as training programs and celebrations.
  • Maintained a low employee turnover rate (30.59% in 2022, compared to 31.49% in 2021).

Governance Achievements

  • Established an ESG work panel to oversee ESG-related matters.
  • Implemented policies and procedures to prevent bribery, extortion, fraud, and money laundering.
  • No corruption lawsuits filed against the company or its employees.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Negative growth in carbon intensity.
  • Further improve water resource utilization rate.
  • Continuously improve energy use efficiency and seek opportunities for clean energy.
Short-term Goals:
  • Stable reduction in exhaust emissions.
  • Stable reduction in waste intensity.

Environmental Challenges

  • Potential disruptions to operations due to extreme weather events (typhoons, rainstorms).
  • Increased energy and fuel consumption due to prolonged high temperatures.
  • Potential for traffic accidents involving transportation personnel.
Mitigation Strategies
  • Established emergency response procedures for climate-related incidents.
  • Regularly conducted disaster prevention and preparedness activities.
  • Gradual elimination of high-energy consumption equipment and improvement of resource efficiency.

Supply Chain Management

Supplier Audits: Annual quality appraisal of suppliers.

Responsible Procurement
  • Strict supplier qualification review mechanism.
  • On-site inspections of suppliers.
  • Pharmaceutical Commodities Quality Assurance Agreement with suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Disruptions to water and power supply due to extreme weather.
  • Damage to goods during transportation due to extreme weather.
  • Increased energy and fuel consumption due to high temperatures.
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

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

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Recommended pharmaceutical cold chain logistics services enterprise (3 consecutive years)
  • Best logistics center (base) of pharmaceutical cold chain (4 consecutive years)
  • Excellent pharmaceutical logistics and distribution enterprise (2 consecutive years)
  • Modern pharmaceutical logistics technology experimental base (center)
  • Golden Ant Innovation Award for China’s Logistics Industry (5 consecutive years)
  • Certificate of participation in Guangdong enterprises’ growing business in good faith (11 consecutive years)
  • 2022 China Pharmaceutical Supply Chain Sharp Enterprise

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:7,941.11 tonnes of CO2e
Scope 1 Emissions:2,162.59 tonnes of CO2e
Scope 2 Emissions:5,724.37 tonnes of CO2e
Scope 3 Emissions:54.15 tonnes of CO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:14,849,094.51 kWh
Water Consumption:79,542.58 tonnes
Waste Generated:82.75 tonnes (non-hazardous); 18.72 tonnes (wasted drugs)
Carbon Intensity:1.80 tonnes of CO2e per RMB million of operating income

ESG Focus Areas

  • Product Quality and Safety
  • Supply Chain Management
  • Staff Health and Safety
  • Staff Development and Training
  • Compliant Employment and Staff Welfare
  • Anti-corruption Measures
  • Greenhouse Gas Emissions
  • Utilisation of Resources and Environmental Protection
  • Waste Disposal
  • Tackling Climate Change
  • Social Welfare

Environmental Achievements

  • Complied with environmental regulations in operating locations; no major violations.
  • Implemented waste reduction initiatives, including recycling and reuse of packaging materials.
  • Implemented energy efficiency measures, including smart lighting and photovoltaic power generation.

Social Achievements

  • Provided competitive salaries and benefits, including employee meals and housing.
  • Organized various employee activities to enhance cultural life and skills.
  • Maintained a low employee turnover rate (21.48%).
  • Provided comprehensive training programs for employees (average 11.70 hours per employee).

Governance Achievements

  • Established an ESG working group to oversee and promote ESG initiatives.
  • Implemented anti-corruption policies and training programs.
  • Established multiple channels for complaints and reporting of employee misconduct.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Reduce greenhouse gas emission intensity by 5% by 2034 compared to 2023.
  • Reduce waste intensity by 10% by 2034 compared to 2023.
  • Reduce water consumption per RMB 10,000 of operating revenue by 5% by 2034 compared to 2023.

Environmental Challenges

  • Potential disruptions to warehouse and office operations due to extreme weather events.
  • Potential delays and damage to goods during transportation due to extreme weather.
  • Increased energy and fuel consumption due to high temperatures.
  • Product quality risks, out-of-stock risks, and unsalable risks in the supply chain.
Mitigation Strategies
  • Established emergency procedures for climate change-related incidents.
  • Regularly conducted natural disaster prevention and preparedness activities.
  • Gradually phasing out high-energy consumption equipment.
  • Implemented measures to mitigate product quality, out-of-stock, and unsalable risks, including strict quality control, inventory management, and emergency plans.

Supply Chain Management

Supplier Audits: Annual quality appraisal of suppliers.

Responsible Procurement
  • Strict supplier qualification review mechanism; on-site inspections; quality assurance agreements.

Climate-Related Risks & Opportunities

Physical Risks
  • Disruptions to water and power supply due to extreme weather.
  • Delays and damage to goods during transportation.
Transition Risks
  • Increased energy and fuel consumption due to high temperatures.
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Appendix C2 of the Rules Governing the Listing of Securities of The Stock Exchange of Hong Kong Limited

Certifications: Various awards related to pharmaceutical logistics and supply chain management

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Various awards related to pharmaceutical logistics and supply chain management