NEUSOFT XIKANG HOLDINGS INC.
Climate Impact & Sustainability Data (2020-12-31 to 2022-12-31 and 2022-03-31 to 2023-03-31, 2023, 2023-01 to 2023-06)
Reporting Period: 2020-12-31 to 2022-12-31 and 2022-03-31 to 2023-03-31
Environmental Metrics
Total Energy Consumption:2,291.5 MWh/year (2022)
Water Consumption:14,142.0 m3/year (2022)
Waste Generated:6.5 tons/quarter (2023)
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced average medical waste per service by targeting a 2% to 5% reduction from 2022 levels by 2028 in our self-operated medical institutions.
Social Achievements
- Launched various initiatives to improve employee wellbeing and satisfaction, including providing equal opportunities in employment, encouraging employee development through training programs, and establishing a robust anti-corruption and anti-fraud mechanism.
Governance Achievements
- Established an ESG working group to develop and implement ESG policies, identify and manage ESG risks, and prepare annual ESG reports. The board of directors is fully responsible for reviewing, approving, and adopting the Group's ESG policies, targets, and strategies.
Climate Goals & Targets
Long-term Goals:
- Achieve net-zero emissions by 2050 (implied from environmental initiatives).
Medium-term Goals:
- Strengthen business development capabilities and design, promote, and implement cloud hospital platforms to attract more medical institutions.
- Further diversify services offered to end patients and healthcare consumers.
- Continue investing in upgrading cloud infrastructure, recruiting top engineers and technical experts, and developing technologies to improve service quality control and data security.
Short-term Goals:
- Increase penetration rate of city-entry cloud hospital platforms in more cities within 3-5 years.
Environmental Challenges
- Supply chain disruptions due to the COVID-19 pandemic.
- Payment delays from public sector clients.
- Competition in the rapidly evolving digital healthcare market.
- Compliance with evolving regulations in China's digital healthcare and internet sectors.
- Data security and privacy concerns.
Mitigation Strategies
- Developed alternative sourcing strategies.
- Implemented stricter credit risk management policies.
- Continued innovation and development of competitive solutions.
- Established comprehensive data security and privacy systems and obtained relevant certifications.
- Proactive engagement with regulatory bodies and implementation of robust compliance programs.
Supply Chain Management
Responsible Procurement
- Selection of suppliers based on quality, reliability, and ESG considerations.
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Health One Machine
Awards & Recognition
- 2020 Excellent Software Product Award (China Software Industry Association)
- 2020 China Great Health Industry Innovation Award - Best Smart Medical (Tianfu Health Talk Organizing Committee)
- 2017 Electronic Health Champion Award (World Summit on the Information Society)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:1,182.85 tCO2e/year
Scope 1 Emissions:42.85 tCO2e/year
Scope 2 Emissions:1,140.00 tCO2e/year
Total Energy Consumption:1,998,949.00 kWh/year
Water Consumption:14,776.00 liters/year
Waste Generated:240,626.40 kg non-hazardous waste/year; 32,602.00 kg medical waste/year
Carbon Intensity:2.20 tCO2e/RMB million of revenue
ESG Focus Areas
- Environmental protection
- Social responsibilities
- Staff care
- Healthcare transformation through information technology
- Empowering healthcare stakeholders
- City-specific cloud hospital platform
Environmental Achievements
- Reduced electricity consumption and greenhouse gas emissions by implementing green environment concepts and promoting online offices and intelligent operation models.
- Reduced water consumption through various measures such as leakage testing and repair of leaking taps.
Social Achievements
- Launched “Care in Zhejiang” platform, expanding home care services to over 150,000.
- Expanded the number of hospitals providing services through cloud hospital platforms by 7.4%, doctors by 14.7%, and nurses by 81.2%.
- Launched 61 types of home care services in Zhejiang Province and 71 in Henan Province.
- Provided voluntary medical consultation for nursing homes and schools, and free online medical consultation.
- “Care in Zhejiang” recognized as one of the “Top 10 Influential Events” in Zhejiang Health for 2023.
Governance Achievements
- Established an ESG working group to oversee ESG implementation.
- Implemented comprehensive risk management policies in healthcare quality and safety, operational and regulatory risk management.
- Established a compliance and internal audit system, including anti-bribery compliance risk control measures and a reporting hotline.
- Complied with relevant laws and regulations regarding labor and employment, including preventing child and forced labor.
Climate Goals & Targets
Medium-term Goals:
- Reduce electricity consumption and greenhouse gas emissions by 5% by 2028.
- Reduce water consumption by 5% by 2028.
- Reduce average medical waste per service by 2% to 5% by 2028.
Environmental Challenges
- Fewer project opportunities and delays in project execution with local governments in the post-pandemic era.
- Decrease in the number of projects delivered in smart healthcare products due to decreased budget allocation by customers.
- Suspension of direct settlement by the social medical insurance system on cloud hospital platforms.
- Potential medical liability claims or claims under consumer protection laws.
- Evolving regulatory requirements in the PRC regarding doctor management.
- Difficulty in recouping investments in research and development.
Mitigation Strategies
- Implementing a “cost-saving and profit-increasing” strategy for cloud hospital platform services.
- Building a new integrated healthcare service system from offline to online.
- Strengthening corporate health management operations.
- Strengthening the connection of “products + services” for smart healthcare products.
- Strengthening cooperation with government authorities to establish a sound home care service system.
- Formulating unified urban management systems, service models, and standards for home care services.
- Continuously improving the service ability and professional skills of visiting nurses.
Supply Chain Management
Supplier Audits: 21 suppliers reviewed in 2023
Responsible Procurement
- Prioritizing suppliers with ISO 9000, ISO 14000, and ISO 18000 certifications.
- Requiring suppliers to meet national environmental protection requirements.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events impacting operations and employee safety.
- High temperatures increasing operating costs.
Transition Risks
- Stricter environmental regulations increasing compliance costs.
Reporting Standards
Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities
Certifications: GB/T24001-2016/ISO 14001:2015 (Environmental Management System Certification)
Awards & Recognition
- “Care in Zhejiang” recognized as one of the “Top 10 Influential Events” in Zhejiang Health for 2023.
Reporting Period: 2023-01 to 2023-06
Environmental Metrics
Social Achievements
- Provided adequate job training to equip employees with practical knowledge and skills; conducted introductory training for new staff; no material labor conflicts during the reporting period.
Climate Goals & Targets
Short-term Goals:
- Expand cloud hospital network to new cities and enrich service offerings.
- Strengthen collaborations with medical specialists and enhance service offerings.
- Improve technology infrastructure, data processing, and security capabilities.
Environmental Challenges
- Decrease in revenue from smart healthcare products due to decreased or delayed effort by customers and more selective project bidding.
- Suspension of health management centers operations in the first half of 2022 due to the COVID-19 pandemic.
Mitigation Strategies
- Resumed normal operations at health management centers in the first half of 2023.
- Became more selective in project bidding in the first half of 2023.