Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsibility for the Healthcare Industry
• Advanced and Innovative Research & Development
• Professional Clinical Talents
• Co-construction of a Green Environment
• Social Development and Care

Environmental Achievements

• Reduced electricity consumption intensity per square meter of floor area by 13.9% compared to 2018.
• Reduced water consumption intensity per staff by 20.4% compared to 2018.
• Reduced non-hazardous waste intensity per staff by 27.3% compared to 2018.

Social Achievements

• No work-related injuries or fatalities.
• No child or forced labor employed.
• 100% of employees trained (both male and female).

Governance Achievements

• No corruption litigation cases.
• Implemented Code of Conduct for Staff and Business Partners.
• Maintained 19 registered patents.

Climate Goals & Targets

Environmental Challenges

• Increased total electricity consumption due to enlarged data collection range.
• Increased total water consumption due to increased number of staff.
• Increased total GHG emissions due to enlarged data collection range and increased number of staff.

Mitigation Strategies

• Implemented electricity conservation measures.
• Implemented water saving measures.
• Reduced electricity consumption to lower GHG emissions.

Supply Chain Management

Responsible Procurement

• Standard Operating Procedures for Vendor Engagement
• Standard Operating Procedures for Procurement
• GMP Service Provider Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange ESG Reporting Guide

Environmental Metrics

ESG Focus Areas

• Compliant Business Environment
• Product Liability
• High Quality Professional Team
• Co-build A Green Environment
• Fulfil Social Responsibility

Environmental Achievements

• Reduced total GHG emissions by approximately 24.30% compared to last year.
• Decreased paper consumption intensity by approximately 8.72% compared to last year.
• Reduced water consumption intensity by about 26.26% lower than last year.

Social Achievements

• Donated RMB1 million to Suzhou Charity Federation to help control the COVID-19 pandemic.
• Received the “2020 Pharmaceutical Corporate Social Responsibility Award”.
• Established a new SOP for Suppliers of Materials to be fully prepared for production of commercialized products and raw material procurement.

Governance Achievements

• Established the Compliance Management System.
• Established the Standard Operating Procedures (SOP) for Whistleblowing and Internal Investigations.
• Established the SOP for Procurement, standardizing the non-clinical department’s payment process.

Climate Goals & Targets

Environmental Challenges

• Increased medical hazardous waste generation (26% increase over the previous year) due to active promotion of pharmaceutical R&D and business operations.
• Increased non-hazardous waste generation (3.67% increase over last year) due to active promotion of pharmaceutical R&D and business operations.
• Slight increase in electricity consumption (0.38% compared to last year).

Mitigation Strategies

• Actively respond to the reduction of hazardous waste and strictly follow national laws and regulations for centralized management of hazardous waste.
• Implement various energy-saving measures to promote employees’ awareness of energy conservation (daylight lighting, turning off equipment during non-working periods, regular maintenance).
• Strengthen employees’ water conservation education by posting water saving reminders in the restrooms and regularly checking faucet equipment.

Supply Chain Management

Responsible Procurement

• SOP for Procurement
• SOP for Supplier Engagement
• SOP for Suppliers of Materials

Climate-Related Risks & Opportunities

Reporting Standards

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

Awards & Recognition

• 2020 Pharmaceutical Corporate Social Responsibility Award
• World’s top 10 most concerned Chinese biotech companies (FiercePharma)
• 2020 China Top 50 Most Innovative Biomedical Companies
• First level of “China’s Top 100 Pharmaceutical Innovative Enterprises”

Environmental Metrics

ESG Focus Areas

• Compliant Business Environment
• Product Liability
• High Quality Professional R&D Team
• Co-build a Green Environment
• Fulfil Social Responsibility

Environmental Achievements

• Reduced non-hazardous waste intensity by approximately 15.82% over last year.
• Reduced water consumption intensity by about 34.62% lower than last year.
• Reduced paper consumption by about 1.91% lower than last year.

Social Achievements

• No cases of injuries or deaths to employees of the Group due to work relations, and there was no work-related death in the past three years including this Year.
• Provided employees with timely payment of social basic insurance funds
• Provided employees with additional benefits, such as supplementary provident fund, annual health check, birthday and holiday gifts, wedding and new-born gifts

Governance Achievements

• Established the Compliance Management System
• Formulated the Code of Conduct for Employees
• Released the CStone Integrity Policy at the end of 2021, which includes new anti-corruption and anti-bribery policies

Climate Goals & Targets

Environmental Challenges

• Potential impact of climate change on services and operations (extreme weather events)
• Managing greenhouse gas emissions

Mitigation Strategies

• Improved disaster response capabilities and awareness
• Calculated greenhouse gas emissions according to the Greenhouse Gas Protocol and ISO14064-1
• Adopted various energy-saving measures
• Strengthened employees’ water conservation education
• Implemented an electronic office system to reduce paper waste

Supply Chain Management

Responsible Procurement

• SOP for Supplier Engagement
• SOP for Procurement
• SOP for Supplier of Materials
• Quality Audit Standard Management Regulations

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, rising coastal water levels, tropical cyclones, abnormal rainfall patterns, extremely hot weather)

Reporting Standards

Frameworks Used: The Stock Exchange of Hong Kong Limited’s ESG Reporting Guide

Environmental Metrics

ESG Focus Areas

• Compliance Corporate Development
• Adherence to Quality Assurance
• Focusing on R&D Team
• Enterprise Green Development
• Giving Back to the Community

Environmental Achievements

• Reduced non-hazardous waste production by approximately 26.51% compared to last year.
• Reduced paper consumption by approximately 20.59% compared to last year.

Social Achievements

• No lost days due to work injury in 2022.
• No work-related fatalities in the past three years.
• Provided targeted fundraising support for patient assistance projects, benefiting thousands of patients and donating over 3 million RMB to the Beijing Health Alliance Charitable Foundation.

Governance Achievements

• Conducted anti-corruption training for all employees and Board members.
• Established a Compliance Management System to ensure compliance with laws, regulations, and internal rules.
• Established Standard Operating Procedures for Whistleblowing and Internal Investigations.

Climate Goals & Targets

Environmental Challenges

• Potential physical risks from climate change (typhoons, floods, extreme heat) that could disrupt operations and threaten employee safety.
• Increase in GHG emissions due to increased electricity consumption from a new Beijing office and new laboratory projects.

Mitigation Strategies

• Strengthened contingency plans for extreme weather.
• Implemented measures to improve energy use efficiency (centralization of personnel, powering off systems during non-working hours, regular maintenance of equipment).

Supply Chain Management

Responsible Procurement

• Supplier evaluation system considering ESG values; requirement for compliance with laws, prohibition of corruption, respect for human rights, and environmental protection.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods, extreme heat

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Awards & Recognition

• Top 100 National Pharmaceutical Innovation Companies
• Top 30 Innovative Small Molecule Drug Companies in China
• Galen Award
• Biopharmaceutical Industry Value List
• Drug Innovation Jezebel Award
• Most Valuable Pharmaceutical and Medical Companies

Environmental Metrics

ESG Focus Areas

• Legal and Compliant Operation
• Product Quality and Safety
• Employee Rights Protection
• Green Development
• Social Responsibility

Environmental Achievements

• Total GHG emissions decreased by about 11.78% compared to last year.
• Non-hazardous waste production decreased by approximately 27.74% over last year.

Social Achievements

• No case of employing child labor or forced labor.
• No lost days due to work injury, and there were no work-related fatalities in the past three years.
• Products have been included in urban insurance of 140 provinces and cities.

Governance Achievements

• Established an ESG management structure consisting of the Board of Directors, Audit Committee, and ESG working group.
• Conducted anti-corruption training for all employees and Board members.
• No incidents of embezzlement, bribery, extortion, fraud or money laundering.

Climate Goals & Targets

Environmental Challenges

• Potential risks associated with climate change (typhoon, flood, extreme heat, natural disasters) leading to business interruption, asset damage, and supply chain disruptions.
• Managing hazardous and non-hazardous waste generated from operations.

Mitigation Strategies

• Strengthened contingency plans for extreme weather.
• Proper packaging and storage of hazardous wastes; disposal agreements with qualified hazardous waste disposal companies.
• Implementing energy efficiency measures (centralization of personnel, powering off systems during non-working hours, regular maintenance of equipment).

Supply Chain Management

Responsible Procurement

• Supplier management mechanism including policies and SOPs for procurement, supplier access, and contract signing.
• Requirement for suppliers to comply with laws, prohibit corruption, respect human rights, and ensure employee health and safety.
• Compliance with Business Partner Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoon, flood, extreme heat, and natural disasters

Reporting Standards

Frameworks Used: HKEX’s Environmental, Social and Governance Reporting Guide

Awards & Recognition

• Top 30 Innovative Small Molecule Drug Companies in China
• 2023 Annual Innovation Capability Award by GuruClub
• Excellent Innovative Anticancer Drug Case by Healthy China 21CC
• Most Valuable Pharmaceutical and Medical Company
• Cooperative manufacturer in the Suzhou Innovative Pharmaceutical Equipment Catalogue
• 2023 Outstanding Capital Value Enterprise by Economic Observer
• Top 15 Biotechnology Listed Companies by the Top 100 Hong Kong Listed Companies
• Leading Power and China Pharmaceutical High-quality Development Achievement Enterprises