Shanghai Henlius Biotech, Inc.
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:21,163.93 tCO2e/year
Scope 1 Emissions:6,480.15 tCO2e/year
Scope 2 Emissions:14,683.78 tCO2e/year
Total Energy Consumption:206,789.02 GJ/year
Water Consumption:236,195 m3/year
Waste Generated:855.27 tons/year
Carbon Intensity:0.07 tCO2e per 10,000CNY
ESG Focus Areas
- Product quality and safety
- Product innovation and R&D
- Employee rights protection
- Intellectual property management
- Corporate governance
Environmental Achievements
- Invested approximately RMB7.575 million in environmental protection.
- Reduced the volume of wastewater discharge by 9,724 tons with the help of the reclaimed water reuse system.
- Songjiang facility and the Xuhui facility reused 22,051 and 6,635 cubic metres of reclaimed water respectively.
Social Achievements
- Launched the “H - Lifelong Wellbeing Program”, a Patient Assistance Program (PAP), donating 57,200 units of HANSIZHUANG valued at about 320 million.
- Successfully launched 5 products in China and 1 product in global market, benefiting 350,000+ patients.
- Achieved 100% coverage of occupational health examinations with no cases of occupational diseases and no working days lost due to work-related injuries.
Governance Achievements
- Established a three-tier ESG governance structure—the Company's board of directors, the ESG committee, the ESG leading group, and the working group.
- Obtained ISO/IEC 27001:2013 information security management system certification.
- Completed 51 departmental compliance training sessions with a total of 4,639 attendees.
Climate Goals & Targets
Environmental Challenges
- Supply chain disruptions due to Covid-19 pandemic and extreme weather events.
- Climate change risks (physical and transition risks).
Mitigation Strategies
- Implemented contingency plans to address extreme weather events and supply chain disruptions.
- Developed alternative sourcing strategies.
- Implemented energy efficiency projects and optimized measures in process optimization, technology upgrades and resource reuse.
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
- Supplier Management Regulations
- Direct Procurement Supplier Management Process
- Direct Procurement Management System
- Green Supply Chain Proposal
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Average temperature rise
Transition Risks
- Technology risk
- Policy and legal risk
- Market risk
- Reputational risk
Opportunities
- Use recycling technologies
- Technology transformation
- New technology application
- New energy procurement
- Low-emission energy sources
- Responsible supply chain
- Environment-friendly products
Reporting Standards
Frameworks Used: GRI Standards, AA1000 series of standards
Certifications: China GMP, EU GMP, ISO/IEC 27001:2013
Third-party Assurance: SGS
Awards & Recognition
- Best Companies to Work for in Asia 2022
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:21,973 tCO2e/year
Scope 1 Emissions:6,908.63 tCO2e/year
Scope 2 Emissions:15,064.37 tCO2e/year
Total Energy Consumption:26,414,814 kWh/year (purchased power), 3,183,287 cubic meters/year (natural gas), 11,680.58 liters/year (gasoline)
Water Consumption:259,437 m3/year
Waste Generated:642.66 tons/year (total solid waste)
Carbon Intensity:0.46 tCO2e/liter (2023)
ESG Focus Areas
- Product quality and safety
- Emissions management
- Product innovation and R&D
- Employee rights protection
- Anti-corruption and business ethics
- Intellectual property rights management
- Corporate governance
- Customer rights and privacy protection
Environmental Achievements
- Invested approximately RMB 6.2421 million in environmental protection.
- Recycled water: 5,714,905.8 cubic meters.
- Reduced energy consumption per RMB 10,000 output value of Xuhui Facility by about 46% by the end of December 2023.
- Annual fuel saving of 2,160.61 liters compared with the standard fuel consumption of the vehicles.
- Reclaimed water reuse volume in Xuhui Facility and Songjiang First Plant were 7,802.8 tons and 3,305 tons respectively.
Social Achievements
- Launched Patient Assistance Program (PAP), providing HANSIZHUANG for free.
- HANSIZHUANG included into Huiminbao catalog in 80 cities.
- Continued “To the Time, to Life” cancer patient care program and “Rural Medical Care Public Welfare Activity”, benefiting over 4,700 patients and 2,200 HCPs.
- Total training hours reaching 179,509.53 hours with 161 hours per capita.
- Employee engagement increased by 0.3 points compared to last year.
Governance Achievements
- Conducted 2 ESG-specific meetings and 1 anti-corruption compliance training session for 100% of Board members.
- Conducted 101 anti-corruption compliance training sessions for employees.
- More than 1,500 employees participated in “Align with Heart, Govern with Action” in the 2023 Henlius Compliance Day.
- Successfully passed a review of ISO/IEC 27001: 2013 information security management system certification.
- Applied for 2 patents.
Climate Goals & Targets
Short-term Goals:
- By 2025, reduce carbon emission intensity by 15% compared with the base year of 2021 (taking commercial production capacity as the unit).
- By 2025, reduce water intensity by 8% compared with the base year of 2021 (taking commercial production capacity as the unit).
- By 2025, reduce energy consumption intensity by 15% compared with the base year of 2021 (taking commercial production capacity as the unit).
- By 2025, 100% of hazardous waste will be disposed in compliance with regulations, and our emission intensity of solid waste will be reduced by 10% (taking commercial production capacity as the unit).
Environmental Challenges
- Extreme weather events interrupting production and operation.
- Average temperature rise increasing operating costs.
- Adoption of new technologies increasing upfront operating costs.
- Evolving laws and regulations.
- Stakeholder concerns about climate change.
- Market expectations regarding carbon-neutral strategies.
Mitigation Strategies
- Developed plans for flood prevention and emergency response.
- Implemented climate risk management measures.
- Optimized wastewater management process and treatment technology.
- Updated pollutant emission systems and strengthened the management of unorganized emissions of exhaust gas.
- Improved the Management System for Air Pollution Prevention and Control.
- Established supply chain Business Continuity Management (BCM).
Supply Chain Management
Supplier Audits: All Class A material suppliers accept on-site quality audits. Due diligence completed on 123 suppliers.
Responsible Procurement
- Supplier Code of Conduct
- Supplier Management Regulations
- Direct Procurement Supplier Management Process
- Direct Procurement Management System
- General Outline of Indirect Procurement Management System
- Green Supply Chain Proposal
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Average temperature rise
Transition Risks
- Technology risks
- Policy and regulation risks
- Reputation risks
- Market risks
Opportunities
- Recycling technologies
- Technology transformation
- More efficient production process
- New technology application
- New energy procurement
- Low-emission energy sources
- Responsible supply chain
- Environment-friendly products
Reporting Standards
Frameworks Used: GRI Standards, AA1000 series of standards
Certifications: ISO/IEC 27001:2013
Third-party Assurance: SGS
Awards & Recognition
- 2022 Wind ESG Hong Kong Stock Best Practice Award
- 2022 Top 10 Innovative Pharmaceutical Enterprises
- 2022 Outstanding Scientific Innovative Enterprise Award
- 2022 Top Quality Development Achievement Enterprises in Chinese Pharmaceutical Industry
- 2022 China Pharmaceutical Social Responsibility Media Watch - Public Welfare Pillar
- 2022 Shanghai New Excellent Medical Device Product Catalog
- 2022 BioCon Awards - Biopharmaceutical Enterprise Star
- 2023 Top 10 Most Influential Antibody Company
- 2023 Best Companies to Work For in Asia
- 2023 Shanghai Key Industries International Competitiveness Excellence Cases
- 2023 Changchun Annual Innovative Pharmaceutical Enterprises Award
- 2023 Huaxia Health ESG Outstanding Enterprises
- 2023 13th China Listed Company Reputation Ranking “Biopharmaceutical Company with the Most Growth”
- 2023 Shanghai Drug Manufacturer Credit Assessment Grade A
- 2023 Bloomberg Businessweek (Chinese Edition) Golden Stock Best ESG Disclosure Award
- 2023 Outstanding Public Welfare Project Award
- 2023 High-Quality Development Enterprises in the Healthcare Industry
- 2023 CLS·ESG ZhiYuan Award – Social (S) Pioneer Enterprise Award
- The 11th Best Public Relations Case Awards