Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Care, Health and Safety
• Community Service and Public Welfare
• Supply Chain Management
• Quality Management
• Innovation
• Governance

Environmental Achievements

• Reduced energy consumption by approximately 657 tons of standard coal equivalent annually through facility upgrades.
• Recycled cardboard boxes used in production to the greatest possible extent.
• Effectively reduced VOCs generated by the preclinical medical research center to a standard level using activated carbon adsorption devices.

Social Achievements

• Launched 115 Care Cards, solving the “last mile” problem of product traceability.
• Established encouragement scholarships in many universities.
• Built two MicroPort Hope Primary Schools.
• Organized various employee engagement activities (e.g., flower arranging, labor competition, tours).

Governance Achievements

• Established a sound social responsibility management system.
• Established a corporate governance structure in compliance with modern corporate structure.
• Established a sound compliance management system.
• Zero case of corrupt practices recorded in 2019.
• 100% passing rate in both sampling inspections and quality management system reviews.

Climate Goals & Targets

Environmental Challenges

• Maintaining product quality and safety across global operations.
• Balancing business growth with environmental sustainability.
• Managing risks associated with supply chain disruptions.

Mitigation Strategies

• Established a tier-based quality and safety responsibility system.
• Implemented energy conservation and emission reduction measures.
• Revised supplier management system, incorporating 3rd-party professional management institutes.

Supply Chain Management

Supplier Audits: Quarterly supplier performance reviews through questionnaires, interviews and on-site audits

Responsible Procurement

• Quality as top criteria for supplier selection.
• Key material suppliers required to be certified with ISO 9001 or ISO 13485.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Associations Standards of Shanghai Guidelines for Corporate Social Responsibility (T31/01001-G001-2014), Environmental, Social and Governance (ESG) Reporting Guide issued by the Stock Exchange of Hong Kong Ltd.

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 13485

Awards & Recognition

• 2018 Shanghai Quality Gold Award
• 2018 Quality Award of Shanghai
• 2019 National Quality Model Enterprise
• APQO Innovation Class Award
• Shanghai Municipality Intellectual Property Innovation Award (Application)
• Technological Innovation and Science Popularization Integration Demonstration Base of Pudong New Area
• National Model Enterprise Featuring a Harmonious Employer-Employee Relation

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Ethical Operation
• Product Quality
• Service Assurance
• Supplier Management
• Employee Care
• Community Contribution
• Risk Management
• Corporate Governance

Environmental Achievements

• Obtained ISO 14001 certification (Shanghai MicroPort Medical (Group) Co., Ltd.)
• Obtained ISO 50001 certification (Shanghai MicroPort Medical (Group) Co., Ltd.)
• ISO 14001 certification for two MicroPort CRM factories in France and Italy
• Selected as a “Green Factory” by the Ministry of Industry and Information Technology of China
• Granted the award of “First Group of Five-Star Demonstration Units with Green Manufacturing Systems in Shanghai”
• Ethanol Reduction Plan reducing ethanol consumption by 39% and VOCs emissions by 0.748 tons
• Improved sound insulation in buildings reducing noise by 8-15 decibels
• Replaced incandescent and fluorescent lights with energy-saving LEDs, reducing energy consumption

Social Achievements

• Launched the “Micro Website” for patient education
• Established the Liang Zhi Care Center for Patient, providing 24/7 services and reaching over 150,000 registered patients
• Organized various employee engagement activities, including home fitness competitions and volunteer work
• Won several social responsibility awards, including “2019 Annual Public Welfare Innovation Award” and “2020 Top 60 Chinese Corporate Citizens - 520 Responsible Brands”
• Reduced employee turnover rate by 10.25 percentage points compared to the previous year (to 16.72%)
• Awarded “Healthiest Employer in China”

Governance Achievements

• Implemented a variety of online and on-site training to deepen anti-corruption awareness
• Passed the audit on the ISO27001 information technology security management system
• Added a new section titled “Anti-Corruption and Anti-Bribery” to the Code of Business Conduct and Ethics
• Established a comprehensive risk management system
• Improved internal control system
• No legal cases involving corruption

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting global operations and public health
• Supply chain disruptions
• Maintaining high ethical standards across global operations

Mitigation Strategies

• Implemented various pandemic prevention measures, including remote work options and psychological counseling
• Donated funds and medical supplies to support pandemic relief efforts
• Developed alternative sourcing strategies
• Implemented robust compliance training programs

Supply Chain Management

Supplier Audits: Annual supplier reviews through questionnaires and face-to-face evaluations

Responsible Procurement

• ISO 9001 and ISO 13485 certifications for key material suppliers
• Agreements on procurement and quality
• Principle of nearby procurement to reduce carbon footprint
• Use of environmentally-friendly packaging materials

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide, GRI Standards

Certifications: ISO 9001, ISO 13485, CNAS, ISO/IEC 17025, ISO 14001, ISO 50001, ISO 27001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2020 Global Performance Excellence Award (APQO)
• Third Gold Prize for Quality in Pudong New Area
• Shanghai’s Award for Quality Management 2019
• Quality Benchmark in Shanghai 2019
• National Quality Benchmark for the Country 2020
• 21st China Patent Silver Award
• 21st China Patent Excellence Award
• 2019 Annual Public Welfare Innovation Award
• 2020 Top 60 Chinese Corporate Citizens - 520 Responsible Brands

Environmental Metrics

ESG Focus Areas

• Product safety and quality
• Technology and innovation
• Talent development
• Customer services
• Accessible medical care
• Anti-corruption
• Responsible marketing
• IP
• Climate change mitigation and adaptation
• Occupational health and safety
• Supply chain sustainable management
• Risk management
• Diversification and equalization
• Emission management
• Information security
• Benefits and remuneration of employees
• Carbon footprint of products
• Community contribution
• Energy consumption
• Involvement of stakeholders
• Industrial cooperation
• Water resource management

Environmental Achievements

• Greenhouse gas emissions intensity reduced by 6% year on year
• Non-hazardous waste generated decreased by 6% year on year
• Ammonia-nitrogen discharged reduced by 70% year on year

Social Achievements

• Won the Best Practice Award for Digitalization of Human Resources of Moka, the 2022 Global Attractive Employer of LinkedIn China, the 2022 NFuture Best Practice Employer for Digital Intelligence Innovation of Niuke, and the 2022 Extraordinary Employer of Liepin.
• Encouraged employees to associate freely; employees participated in 19 associations.
• Signed the Supplier Social Responsibility Commitment with suppliers.
• Achieved employee occupational health and safety targets; no serious injuries or occupational disease accidents.

Governance Achievements

• Proportion of females in middle and top management reached 39% and 26% respectively
• Conducted ethical audits 5 times
• Held 8,726 patents (including under application)

Climate Goals & Targets

Environmental Challenges

• Potential risks posed by climate change to business operations (transition risks: policy & legal, technology, market, reputation; physical risks: acute extreme weather, chronic persistent hot weather)
• Supply chain disruptions due to extreme weather events

Mitigation Strategies

• Formulated the Special Severe Weather Emergency Plan for MicroPort Campus and corresponding reporting process
• Developed backup suppliers to mitigate supply chain disruptions
• Implemented targeted inventory strategies

Supply Chain Management

Supplier Audits: On-site reviews for suppliers

Responsible Procurement

• Supplier Social Responsibility Commitment Letter
• Green procurement
• Prohibition of discrimination, child labor, and forced labor

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Persistent hot weather

Transition Risks

• Policy and legal changes
• Technological advancements
• Market shifts
• Reputational damage

Opportunities

• Product and service improvements
• Resource efficiency improvements
• Increased use of low-emission energy

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide, MSCI Index, Sustainalytics ESG Rating

Certifications: ISO 27001, ISO 27701, ISO 14001, ISO 45001, ISO 9001, ISO 13485, ISO 11135, ISO 50001

Awards & Recognition

• Shanghai Enterprise Management Innovation Award
• China County Health Development Contribution Award
• 2021 Shanghai Quality Management Award – Organization Award
• Super AI Leader (SAIL) award
• Most-treasured Piece of the Collection award
• Most Advanced Application of Artificial Intelligence Items

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Green Operation
• Climate Change
• Supply Chain Management
• Talent Development
• Health and Safety
• Access and Affordable Healthcare
• Community Contributions
• Business Integrity
• Risk Management
• Quality Assurance

Environmental Achievements

• Achieved three-year goals (2021-2023) in water efficiency, energy efficiency, waste management, and carbon emissions.
• Shanghai MicroPort transitioned to paperless production flow cards, reducing paper usage by approximately 200,000 papers.
• MicroPort Endovascular recognized as a green factory by the Ministry of Industry and Information Technology.
• 10.76% year-on-year reduction in the intensity of greenhouse gas emissions.
• 37.09% year-on-year decrease in COD discharged.
• 4.93% year-on-year decrease in intensity of hazardous waste generated.
• 0.97% year-on-year decrease in intensity of non-hazardous waste generated.

Social Achievements

• Launched the Swallow Program, providing medical treatment for over 300,000 patients in 1,745 county-level hospitals.
• Established 20 employee associations to foster a diverse and inclusive culture.
• Complaint response rate reached 100%.
• 100% compliance training coverage rate.

Governance Achievements

• Established a three-level ESG governance structure.
• Conducted ethical audits for 7 key business lines or subsidiaries.
• Implemented the Compliance Manual, Anti-Bribery and Anti-Corruption Policy, and Code of Business Conduct and Ethics.
• 100% of personnel signed the Code of Business Conduct and Ethics and the Anti-Bribery and Anti-Corruption Policy.
• 100% employee participation in anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events (climate change)
• Increased production costs due to changes in raw material prices and emission requirements (climate change)
• Potential reputational impact from stakeholder expectations for climate action.

Mitigation Strategies

• Developed alternative sourcing strategies and backup suppliers.
• Implemented management and technological reforms to improve energy efficiency.
• Purchased green electricity to reduce greenhouse gas emissions.
• Formulated a Special Severe Weather Emergency Plan.

Supply Chain Management

Supplier Audits: 46/year

Responsible Procurement

• Supplier self-assessment, qualification review, on-site review, sample review
• Supplier Social Responsibility Commitment Letter
• ESG-related requirements in supplier selection and management (green procurement, prohibition of discrimination, child labor, and forced labor)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Persistent hot weather

Transition Risks

• Increase in compliance costs
• Increase in operating costs due to new technologies

Opportunities

• Improvement on execution efficiency and profitability of outstanding products
• Improvement on utilization efficiency of energy and water resources

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, MSCI Index, Sustainalytics ESG Rating

Certifications: ISO 13485, ISO 27001, ISO 27701, ISO 14001, ISO 50001, ISO 9001, ISO/IEC 17025:2017, ISO 11135

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Seventh batch of “Green Factories” (MicroPort Endovascular)
• 2023 Pudong New Era Civilization Practice Outstanding Volunteer Service Project
• “Public Welfare Partner Certificate” (Shanghai Adream Charitable Foundation)
• Third Prize of Excellent Case of Corporate Health Promotion in Pudong New Area