Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Quality Management
• Risk Operations
• Employee Development
• Integrity and Transparency
• Social Responsibility
• Environmental Protection
• Supply Chain Sustainability
• Digital Transformation

Environmental Achievements

• Reduced energy consumption per ten thousand RMB added values by 15% relative to the end of 2015.
• Carried out several photovoltaic power generation projects.
• Achieved 100% rectification rate for potential environmental hazards.
• Reduced electricity consumption in Shanghai Warehouse by more than 170,000 kWh (12% decrease) compared to 2019.

Social Achievements

• Provided a fair, inclusive, open, diverse and dynamic working environment for employees.
• Carried out staff activities focusing on Digital Learning and Leadership Improvement.
• Organized and participated in various public welfare activities.
• 100% of employees received training, with an average of 47.7 training hours per employee.
• No work-related employee fatalities.

Governance Achievements

• Established a comprehensive control mechanism of anti-corruption and integrity.
• Enhanced employee awareness and ability to prevent and control integrity risks.
• Board of Directors held 18 meetings; various committees held numerous meetings.
• Conducted ESG knowledge training for Board members.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business operations and supply chains.
• Challenges brought by medical insurance reform and flattened network.
• Potential unfair competition such as commercial bribery.

Mitigation Strategies

• Established "fast lanes" for distribution of anti-pandemic materials.
• Developed an overall digital traceability system and cold-chain technology for vaccine distribution.
• Implemented strict pandemic prevention and control measures.
• Formulated a series of marketing compliance management systems and conducted training.

Supply Chain Management

Supplier Audits: 200 suppliers evaluated for reappraisal in 2020; on-site audits conducted as appropriate.

Responsible Procurement

• Verification of supplier qualifications (business licenses, production approvals, etc.)
• Careful preparation and approval of cooperation agreements.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GB/T 36000-2015 Guidance on Social Responsibility, Guidelines to the State-owned Enterprises Directly under the Central Government on Fulfilling Corporate Social Responsibilities, ESG Reporting Guide in Appendix 27 of the Rules Governing the Listing of Securities of the Stock Exchange of Hong Kong Limited

Certifications: ISO 9001:2015, ISO 14001

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Year-on-year decrease in industrial wastewater pollutants discharge by 40%
• Formulated a green logistics development strategic plan
• 28 subsidiaries obtained ISO14001 certification

Social Achievements

• Initiated the Employee Assistance Program (EAP)
• Average training hours per person: 57.3 hours
• Supplied 4 billion pieces of pandemic prevention materials
• Total hours in voluntary activities: 27,723 hours

Governance Achievements

• Revised the responsibilities of the Legal and Compliance and ESG Committee, established ESG Working Group
• Established the Board Diversity Policy and targets
• Formulated the Whistleblowing Policy and Listed Company Information Disclosure Management System to enhance transparency
• Anti-corruption training coverage: 100%
• MSCI ESG rating upgraded to "A"
• Ranked 24th on the 2022 Fortune China 500 list

Climate Goals & Targets

Environmental Challenges

• Global geopolitical situation and public health crisis significantly impacted economic and industrial development
• Worsening climate disasters brought severe challenges
• Transition risks posed by climate change
• Climate risks such as extreme weather events, policy changes, technological advancements, and reputational damage

Mitigation Strategies

• Established green development strategic goals and actively pursuing a path to green transformation for pharmaceutical logistics operations
• Actively carrying out energy-saving upgrading in buildings and equipment facilities, and implementing photovoltaics, new energy vehicles and other clean projects
• Strengthening regional integration to prevent pharmaceutical supply disruptions caused by climate risks
• Adopting low energy-consuming equipment and developing energy-saving technology
• Promoting the development and use of clean energy projects such as photovoltaic and new energy vehicles
• Improved internal quality management system and strictly controlled the quality of pharmaceutical products
• Established a “three lines of defense” risk management system

Supply Chain Management

Supplier Audits: 1,608 supplier qualifications reviewed in 2022

Responsible Procurement

• Review of business licenses, production permits, registration certificates, inspection reports
• On-site audits
• Annual re-audit of suppliers’ qualifications
• Quality assurance agreements
• Prioritization of environmentally friendly products and services
• Monitoring and inspections of suppliers’ environmental compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, rainstorms)
• Extreme high temperatures

Transition Risks

• Stringent climate policies
• Technological changes

Opportunities

• Regional integration
• Energy-saving technology and equipment development
• Clean energy use
• Green brand value

Reporting Standards

Frameworks Used: Environmental Social and Governance Reporting Guide Appendix 27 of the Rules Governing the Listing of Securities of the Stock Exchange of Hong Kong Limited, Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (“CASS-ESG5.0”), Guidelines to the State-owned Enterprises Directly under the Central Government on Fulfilling Corporate Social Responsibilities

Certifications: ISO 14001 (28 subsidiaries)

Sustainable Products & Innovation

• XingshaD ® vitamin D drops
• Anhydrous ethanol injection
• Nalbuphine hydrochloride injection

Awards & Recognition

• Sina Finance’s 2022 Golden Kirin Best ESG Listed Company Award
• 2022 Wind ESG Best Governance Practice Award for Hong Kong Stocks
• SASAC "Central Enterprises ESG Governance - Vanguard 50 Index"