Climate Change Data

Simcere Pharmaceutical Group Limited

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:67,632.68 tCO2e/year
Scope 1 Emissions:4,996.50 tCO2e/year
Scope 2 Emissions:62,636.18 tCO2e/year
Total Energy Consumption:80,061,679.53 kWh/year
Water Consumption:1,178,901.14 tonnes/year
Waste Generated:4,048.87 tonnes/year
Carbon Intensity:0.10 tCO2e per 10,000 RMB revenue

ESG Focus Areas

  • ESG governance
  • Corporate governance
  • Innovation benefiting the public
  • Quality assurance
  • Talent construction
  • Low-carbon operation
  • Caring society

Environmental Achievements

  • Greenhouse gas emissions per RMB 10,000 of revenue decreased by 31.31% compared with 2020.
  • Water consumption per RMB 10,000 revenue lowered by 17.87% in 2023 compared with 2020.
  • Purchased electricity consumption per RMB 10,000 revenue lowered by 23.46% in 2023 compared with 2020.
  • 100% of factories were certified with ISO 14001 Environmental Management System.

Social Achievements

  • RMB 67.13 million charitable donation.
  • 100% of employees received training, with an average of 39.7 training hours per employee.
  • Female employees accounted for 52.2% of the total workforce and 44.3% of middle-level and senior management positions.
  • Zero incidents of forced labor or child labor.
  • Successfully accomplished the ESG management targets set in the 2022 ESG Report.

Governance Achievements

  • Established a three-tier ESG governance structure comprising the Board, the Strategy Committee, and the ESG Group.
  • Improved the compliance and anti-corruption management system.
  • Implemented a supplier risk management system.
  • Successfully accomplished the ESG management targets set in the 2022 ESG Report.

Climate Goals & Targets

Short-term Goals:
  • Lower greenhouse gas emissions per RMB 10,000 of revenue by no less than 10% by 2025.
  • Lower water consumption per RMB 10,000 revenue by no less than 10% by 2025.
  • Lower purchased electricity consumption per RMB 10,000 of revenue by no less than 10% by 2025.
  • Lower solid waste discharge per RMB 10,000 revenue by 15% by 2025.

Environmental Challenges

  • Tightened climate change policies increasing the cost of compliant operation.
  • Changes in market demand for more environmentally friendly and low-carbon products.
  • Stakeholders' concerns demanding higher response requirements in terms of climate issues.
  • Extreme weather events causing damage to operating assets and equipment.
  • Long high-temperature periods increasing energy consumption.
  • Water shortage increasing operating costs.
  • Trade secret and intellectual property protection risk.
  • Post-marketing medical research risk.
  • Data security and compliance risk.
  • Business ethics risk.
Mitigation Strategies
  • Developed sound work plans, set targets for carbon emissions, improved energy efficiency, and improved chemical technologies.
  • Promoted the use of low-carbon fuels and renewable energy, promoted resource conservation awareness, and optimized transportation.
  • Disclosed data on greenhouse gas emissions and low-carbon operations.
  • Established emergency response teams, consulted professional third parties, and improved supply chain resilience.
  • Strengthened plant inspections and installed reliable facilities.
  • Increased water use efficiency and carried out water-saving activities.
  • Released the Intellectual Property Management System, implemented confidentiality measures, and issued management standards for donated drugs.
  • Issued the Human Genetic Resources Management System and organized special training.
  • Released the Simcere Compliance Guidelines for Anti-Monopoly and organized legal knowledge training.
  • Convened supplier meetings and organized compliance training.

Supply Chain Management

Supplier Audits: 151 suppliers audited for material quality

Responsible Procurement
  • Supplier Management System
  • Procurement, Tendering and Bidding System
  • Second Supplier Development System for Production Materials

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Water shortage
Transition Risks
  • Policy risk
  • Market risk
Opportunities
  • Public health demand
  • Support from green finance
  • Efficiency in resource use
  • Clean energy usage

Reporting Standards

Frameworks Used: Appendix 27 Environmental, Social, and Governance Reporting Guide of the Main Board Listing Rules of the Hong Kong Exchanges and Clearing Limited (HKEX)

Certifications: ISO 9001, ISO 14001, EU GMP

Awards & Recognition

  • Top 100 Enterprises in China's Pharmaceutical Industry
  • Jiangsu Enterprise Technology Innovation Award
  • National Intellectual Property Demonstration Enterprise
  • Top Industrial Enterprise
  • Ranked 3rd among the Top 20 Hainan Private Enterprises in R&D Investment
  • Ranked 22nd among the Top 50 Hainan Private Enterprises
  • Ranked 16th among the Top 40 Hainan Manufacturing Enterprises
  • Leading and High-quality Pharmaceutical Development Enterprise
  • Leading and High-quality Pharmaceutical Development Brand
  • Excellent Case Award for Digital Transformation
  • An Advanced Collective
  • China Health Public Welfare Star