Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product quality and safety
• Privacy and information protection
• Product R&D and innovation
• Health accessibility and clinical experiment safety
• Climate change

Environmental Achievements

• Upgrading and renovation of the wastewater treatment facility, including operation optimization, upgrading of the automatic dosing system and upgrading of the online monitoring system
• Implemented a “green office” campaign to reduce the carbon footprint

Social Achievements

• CARsgen Immune Cell R&D Team was granted “2022 National Worker Pioneer”
• Launched international talent reservation – management trainee program
• Provided special allowances to employees who stuck to their positions during the pandemic lockdown
• Implemented an employee equity incentive plan

Governance Achievements

• Established ESG working groups to plan and implement the Company’s ESG management policies
• Formulated and issued the Compliance Management Policy to systematically advance compliance management
• Established an Audit Committee, a Remuneration Committee and a Nomination and Corporate Governance Committee

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on patient enrollment, patient visits and monitor’s hospital visits
• Global supply chain constraints impacting procurement and delivery of materials
• Potential impact of the COVID-19 pandemic on the construction, commissioning, qualification and validation of the U.S. CGMP manufacturing facility

Mitigation Strategies

• Conducted clinical trials at multiple institutions located in different areas, cities, and countries
• Implemented a set of COVID-19 prevention and control measures
• Adopted an integrated project delivery approach for the RTP Manufacturing Facility to shorten construction turnaround time and improve cost effectiveness

Supply Chain Management

Supplier Audits: 48 related suppliers reviewed

Responsible Procurement

• Supplier Management Policy
• Procurement and Bidding Procedures
• Indirect Procurement Management Policy
• Material Inventory Coding Management Process

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather accidents such as typhoons and storms

Reporting Standards

Frameworks Used: Appendix 27 Environmental, Social and Governance Reporting Guide to the Main Board Listing Rules of Stock Exchange of Hong Kong Limited

Awards & Recognition

• 2022 National Worker Pioneer
• Top Ten Pioneer Companies in Drug Innovation of the Year
• Top Ten Drug Innovation Scientists of the Year
• High-value Patent Operation Competition: Patent Operation Investment Value Award
• China’s Top 100 Innovative Pharmaceutical Companies Award

Environmental Metrics

ESG Focus Areas

• Product quality and safety
• Privacy and information protection
• Product R&D and innovation
• Health accessibility and clinical experiment safety
• Business ethics
• Employee rights protection
• Occupational health and safety

Environmental Achievements

• Saved approximately 150,000 KWH of electricity throughout the year by adopting various energy-saving measures.
• Saved about 1,100 tons of water a year by retrofitting the hot water closed circulation system and increasing preventive maintenance of the chilled water circulation system.

Social Achievements

• Continued investment in talent development, including new hire orientation training, performance management workshops, English training, job rotations, and overseas assignments.
• Launched various employee engagement activities, including tourism groups, birthday parties, women’s care activities, and public welfare lectures.
• Donated more than RMB30,000 worth of winter supplies to the Xiadawu Township School in Qinghai Province.
• Organized 14 employees to participate in unpaid blood donation activities.
• 15 employees participated in apheresis activities and donated their immune cells to cancer research.

Governance Achievements

• Established a sound ESG governance system, integrating sustainable development into business strategies and daily operations.
• Developed a well-established stakeholder communication mechanism.
• Conducted a materiality assessment to identify key areas of ESG practice.
• Revised and optimized quality management system documents and management processes.
• Passed the GMP compliance on-site inspection.
• Formulated and introduced the Post-marketing Spontaneous Adverse Event Reporting Management Procedure.
• Revised and optimized Quality Complaint Management Procedures.
• Revised the Anti-Bribery and Anti-Corruption Management Policy.
• Improved information security management system.

Climate Goals & Targets

Environmental Challenges

• FDA placed a clinical hold on zevor-cel, satricabtagene autoleucel and CT071 due to CMC observations related to the RTP Manufacturing Facility in Durham, North Carolina.
• Significant net losses and net operating cash outflows since inception.
• Need for additional capital to meet operating cash requirements.
• Limited operating history.
• Competition in the rapidly changing biopharmaceutical industry.
• Lengthy and expensive clinical development process with uncertain outcome.
• Extensive government regulation.
• Complex manufacturing process for cell therapies.
• Limited market opportunities for product candidates.
• Limited marketing and sales organization.
• Potential for product liability claims.
• Limited intellectual property protection.

Mitigation Strategies

• Conducting a thorough review and taking comprehensive actions to enhance CGMP compliance and collaborating closely with the FDA to resolve issues.
• Exploring equity and debt financing options.
• Building vertically integrated manufacturing capabilities.
• Establishing marketing and sales capabilities.
• Obtaining and maintaining adequate patent and other intellectual property protection.
• Implementing comprehensive risk management policies.
• Developing innovative technology platforms to address challenges in CAR T-cell therapies.
• Collaborating with Huadong Medicine for commercialization of zevor-cel in mainland China.
• Collaborating with Moderna to investigate CT041 in combination with an mRNA cancer vaccine.
• Implementing Corrective and Preventive Actions (CAPAs) plan.

Supply Chain Management

Supplier Audits: 18 related suppliers reviewed

Responsible Procurement

• Supplier Management Policy
• Procurement and Bidding Procedures
• Indirect Procurement Management Policy
• Material Inventory Coding Management Process
• Supplier Compliance Notice
• Confidentiality Agreement
• Integrity Co-construction Agreement
• Green procurement practices

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events
• Disruption of supply chain transport routes
• Increased operating costs due to increased temperatures
• Additional subsidies and insurance costs

Transition Risks

• Increased environmental compliance costs
• Increased investment in new technologies
• Increased input costs
• Responding to stakeholders’ expectations

Opportunities

• Increased demand for energy efficiency and low-carbon products and services
• Improve the efficiency of resource use
• Reduce operating costs by enhancing the stability and reliability of business operations

Reporting Standards

Frameworks Used: Appendix C2 Environmental, Social and Governance Reporting Guide to the Main Board Listing Rules of Stock Exchange of Hong Kong Limited

Awards & Recognition

• Shanghai ‘Specialized, Refinement, Differential and Innovation’ SMEs (2023-2025)
• Top 10 Innovative Companies of the Year
• Top 10 Innovative Research Teams of the Year
• Innovative SME
• 2023 Synthetic Biology Industry Value Gold Ranking Top 36
• Top 100 Innovative Pharmaceutical Enterprises in China
• Top 10 Innovative Pharmaceutical Enterprises of 2023