Sihuan Pharmaceutical Holdings Group Ltd.

Climate Impact & Sustainability Data (2023)

Total Carbon Emissions:104,067.67 tCO2e/year

Scope 1 Emissions:45,601.81 tCO2e/year

Scope 2 Emissions:58,465.86 tCO2e/year

Total Energy Consumption:203,676,957.43 kWh/year

Water Consumption:762,227.91 m3/year

Waste Generated:4,813.91 tons/year

Carbon Intensity:0.06 tCO2e/thousand RMB revenue

Improved EHS Management Mechanism
2 subsidiaries were audited under the dual system of ISO 14001 and ISO 45001
Reduced total exhaust gas emissions from 41,521.59 to 35,999.14 (10,000 standard cubic meters)
Reduced total wastewater discharge from 520,205.40 to 497,717.60 tonnes
Reduced total hazardous waste from 536.08 to 467.38 tonnes
Reduced total non-hazardous waste from 6,176.16 to 4,446.63 tonnes
Reduced total greenhouse gas emissions from 123,292.25 to 104,067.67 tonnes of CO2 equivalent
Completed industrial water pipeline renovation project at Jilin Huikang sewage stations, saving more than 100 tonnes of industrial water per month
Benxi Hengkang obtained Liaoning Province Green Factory Certification

Female employees accounted for 57.24%
Employee participation in trade unions reached 90.53%
Nearly 500 online courses, and more than 2,200 people have logged in to the training platform to participate in such courses
Zero work-related injuries during the Reporting Period
Completed a total of 40 supplier audits
Donated RMB 10 million to Jilin Charity Federation
Donated more than RMB 30 million to Meihekou

Established a three-tier ESG governance structure
Formulated the “Code of Business Conduct and Ethics”, and the “Supplier Code of Conduct”
Zero incidents involving corruption, discrimination or harassment, leakage of customer privacy, money laundering or insider trading, conflicts of interest
All members of the Board participated in compliance and risk management training (100% coverage rate)

Extreme weather events impacting production
Changes in climate patterns leading to higher operating costs
Rising global average temperatures increasing energy consumption
Stringent climate change-related compliance disclosure requirements
Increased costs due to low-carbon policy responses
Increased raw material, auxiliary material, and energy costs due to climate change
Increased logistics costs due to climate change
Need for effective management of carbon emissions

Extreme weather emergency plans
Sufficient emergency materials and disaster prevention training
Close contact with meteorological and water conservancy departments
Continuous assessment of temperature changes and adjustments to energy procurement and use strategies
Energy structure optimization and increased use of renewable energy
Tracking national and local laws and regulations and strengthening greenhouse gas tracking and emission supervision
Promoting R&D and innovation of energy-saving technologies
Market research on raw and auxiliary materials and establishment of a linkage mechanism
Centralized procurement of materials to reduce costs
Process optimization, energy saving, emission reduction, paperless office, and office resource sharing

Supplier Audits: 40/year

Frameworks Used: Appendix C2 to the Main Board Listing Rules issued by The Stock Exchange of Hong Kong Limited

Certifications: ISO 14001, ISO 45001

2023 “ESG Pioneer” of the 13th Philanthropy Festival
“The Most Innovative Value Award of the Year” at the 6th Annual Investor Meeting of Cailianshe
The “Best ESG” Award of the 7th China Excellence IR Awards
“Most Valuable Pharmaceutical and Medical Company Award” at the 8th Zhitongcaijing Capital Market Annual Conference
2023 China Biomedical Science and Technology Innovation Value – TOP 10 Growing Innovative Drug Companies in the Field of Small Molecules
2023 China Medical Aesthetic Industry Ranking Award for Outstanding Enterprises
2023 (Industry) Influential Brand Award at the 12th CSF Finance Summit