Climate Change Data

Dawnrays Pharmaceutical (Holdings) Limited

Climate Impact & Sustainability Data (2019, 2022, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:38,336 tCO2e/year
Scope 1 Emissions:1,337 tCO2e/year
Scope 2 Emissions:36,999 tCO2e/year
Total Energy Consumption:28,228 kWh (’000) + 5,287,610 kg (standard coal) + 7,954 m3 (natural gas) + 78,132 L (diesel and gasoline)/year
Water Consumption:537,067 m3/year
Waste Generated:604 tons/year (hazardous) + 538,627 tons/year (non-hazardous)
Carbon Intensity:0.2934 tCO2e/RMB 10,000 output value

ESG Focus Areas

  • Environmental Management
  • Care for Employees
  • Operating Practices
  • Community

Environmental Achievements

  • Suzhou Dawnrays Pharma passed ISO 14001 environmental management system certification.
  • Dawnrays (Nantong) Pharma Science and Tech established a new exhaust gas collection system.
  • Implemented energy management systems and used electric buses to reduce emissions.

Social Achievements

  • Established a charity fund (Dawnrays Charity Fund) with RMB 10 million.
  • Organized various employee activities to enhance teamwork and morale.
  • Continued to employ disabled people.

Governance Achievements

  • Established an Audit Committee consisting of three independent non-executive directors.
  • Developed a comprehensive anti-corruption management system.
  • Implemented a drug recall management system.

Climate Goals & Targets

Long-term Goals:
  • Reduce greenhouse gas emissions

Environmental Challenges

  • Increased frequency of refrigeration equipment maintenance at Suzhou Dawnrays Pharma led to increased refrigerant use.
  • Fujian Dawnrays Pharma's use of natural gas furnaces increased direct greenhouse gas emissions.
  • Increased vehicle mileage led to higher fuel consumption.
Mitigation Strategies
  • Implemented energy saving measures such as replacing energy-saving equipment and LED lights.
  • Optimized workshop cleaning processes and strengthened drainage system to reduce water consumption and wastewater discharge.
  • Implemented water saving management system, including posting water saving signage and recycling cooling water.

Supply Chain Management

Responsible Procurement
  • Comprehensive procurement process; close cooperation with quality suppliers; supplier verification including quality, business philosophy, occupational safety and service performance.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Appendix 27 “Environmental, Social and Governance Reporting Guide” of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Ltd.

Certifications: ISO 14001, OHSAS 18001, GMP, ISO 9001

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:27,667 tonnes of carbon dioxide equivalent
Scope 1 Emissions:711 tonnes of carbon dioxide equivalent
Scope 2 Emissions:26,962 tonnes of carbon dioxide equivalent
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:30,322 MWh
Water Consumption:434,318 m3
Waste Generated:1,109 tonnes
Carbon Intensity:0.19 tonnes of carbon dioxide equivalent/output value 10,000 yuan

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Obtained ISO 14001 Environmental Management System certification for Suzhou Dawnrays Pharma and Fujian Dawnrays Pharma.
  • Planted 254 trees at Suzhou Dawnrays Pharma to offset carbon emissions.
  • Implemented energy-saving transformations in refrigeration systems (Suzhou Dawnrays Pharma) and air compressors and coating machines (Fujian Dawnrays Pharma).
  • Developed and implemented an energy management system and a "Carbon Peak, Carbon Neutrality" Emissions Reduction Management System.
  • Recognized as "Leading Enterprise in Terms of Green Development".

Social Achievements

  • Established an ESG working group.
  • Established a labor union to facilitate communication with employees.
  • Organized various employee activities, including birthday parties and team-building events.
  • Provided various employee welfare benefits, including free meals, annual health checkups, and shared transportation.
  • Employed disabled people.
  • Implemented a system for handling employee complaints and appeals.
  • Organized anti-corruption training for directors and staff (approximately 8 hours for directors and 2,394 hours for employees).

Governance Achievements

  • Developed an ESG governance structure.
  • Established an Audit Committee consisting of three independent non-executive directors.
  • Formulated the Anti-Fraud Management System and Resign Audit System.
  • Implemented anti-corruption policies and measures, including signing integrity agreements with employees and business partners.

Climate Goals & Targets

Long-term Goals:
  • Actively cooperate with the national policy of "reaching carbon peak by 2030, carbon neutrality by 2060".
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Gradually reduce the intensity of exhaust gas emissions and hazardous waste over the next five years.

Environmental Challenges

  • Extreme weather events increasing the risk of power shortages and supply chain disruptions.
  • Tightening climate-related regulations and compliance costs.
  • Potential for claims and litigation if climate change compliance requirements are not met.
Mitigation Strategies
  • Developed emergency plans for production safety accidents, typhoon prevention, flood prevention, and environmental emergencies.
  • Purchased insurance for employees and assets.
  • Exploring the possibility of changing business models to reduce the impact of extreme weather.
  • Formulated the “Carbon Peak, Carbon Neutrality” Emissions Reduction Management System and a series of environmental management procedures.
  • Regularly monitoring climate-related trends, policies, and regulations.

Supply Chain Management

Supplier Audits: 202 suppliers audited or annually evaluated

Responsible Procurement
  • Supplier Approval Form
  • Procurement Management Regulations
  • Supplier Audit Management Procedures
  • Supplier Annual Evaluation Management Procedures

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (extreme cold or heat, storms, rainstorms, typhoons)
  • Power shortages
  • Supply chain disruptions
  • Operational interruptions
  • Increased repair costs
  • Employee injury or death
Transition Risks
  • Tightening climate-related regulations
  • Increased compliance costs
  • Reputational risk from slow response to climate change
  • Potential for claims and litigation
Opportunities
  • Exploring, improving, and adding environmental protection elements in operations and future development plans.

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • 2022 “Outstanding Economic Contribution” award (Putian Municipal Party Committee and Putian People’s Government)
  • 2022 “Leading Enterprise in Terms of Green Development” (Suzhou Wuzhong District Committee and Suzhou Wuzhong District People’s Government)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:42,079 tonnes of carbon dioxide equivalent
Scope 1 Emissions:4,529 tonnes of carbon dioxide equivalent
Scope 2 Emissions:37,557 tonnes of carbon dioxide equivalent
Total Energy Consumption:79,126 MWh
Water Consumption:494,886 m3
Waste Generated:1105 tonnes
Carbon Intensity:50.36 tonnes of carbon dioxide equivalent/ output value 10,000 yuan

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Suzhou Dawnrays Pharma planted 324 trees to offset carbon emissions.
  • Suzhou Dawnrays Pharma gradually purchased electric forklifts to replace diesel forklifts.
  • Suzhou Dawnrays Pharma added purified water production and wastewater reuse facilities.
  • Suzhou Dawnrays Pharma transformed the packaging method of Azithromycin for Suspension, reducing packaging materials consumption by 10% annually.

Social Achievements

  • Suzhou Dawnrays Pharma was awarded the certificate of honor of “Safety Production Management Advanced Team”.
  • Suzhou Dawnrays Pharma and Fujian Dawnrays Pharma obtained ISO 45001 Occupational Health and Safety Management System certification.
  • The Group held various employee activities, including birthday parties and team-building events.
  • Approximately 99.3% of employees participated in career development-related training.

Governance Achievements

  • Established an ESG governance structure.
  • Formulated “Carbon Peak, Carbon Neutrality” Emissions Reduction Management System.
  • Established an Audit Committee consisting of three independent non-executive directors.
  • Formulated Anti-Fraud Management System and Resign Audit System.

Climate Goals & Targets

Long-term Goals:
  • Actively cooperate with national policy of “reaching carbon peak by 2030, carbon neutrality by 2060”.
Medium-term Goals:
  • Achieve emission reduction and waste reduction targets for new production plants and Suzhou & Fujian Dawnrays Pharma.
Short-term Goals:
  • Reduce GHG emissions, exhaust gas emissions, and hazardous waste intensity gradually in the next five years.

Environmental Challenges

  • Large fluctuation in production capacity, energy consumption, and emissions due to new production stages, factory relocation, construction, and product process verification.
  • Increased frequency and severity of extreme weather events increasing the risk of power shortages and supply chain disruptions.
  • Potential increase in compliance costs due to stricter climate-related regulations.
Mitigation Strategies
  • Set short-term and medium- to long-term targets for emission and waste reduction.
  • Formulated Emergency Plans for Production Safety Accidents, Typhoon Prevention and Flood Prevention, and Environmental Emergencies.
  • Purchased insurance for employees and assets.
  • Exploring possibilities of changing business models to reduce the impact of physical risks.
  • Implementing energy-saving transformation of main energy-consuming systems.
  • Accelerating the elimination of high energy-consuming outdated equipment.

Supply Chain Management

Supplier Audits: 305 suppliers audited or annually evaluated in 2023

Responsible Procurement
  • Supplier Approval Form
  • Prioritizing suppliers complying with national environmental policies and practicing nearby procurement.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (extreme cold/heat, storms, rainstorms, typhoons)
Transition Risks
  • Stricter climate-related regulations, increased compliance costs.
Opportunities
  • Exploring and improving environmental elements in drug manufacturing and packaging processes.

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, ISO 9001

Awards & Recognition

  • Safety Production Management Advanced Team
  • High and New Technology Enterprise
  • Special Award for Enterprises with Outstanding Economic Contribution
  • Outstanding Economic Contribution Award
  • Health Enterprise
  • Advanced Collective for the Development of Key Industries in Putian
  • High-tech Enterprise
  • Jiangsu Multinational Company Regional Headquarters
  • Specialized, Fine, Unique and Innovative Enterprise in Jiangsu Province
  • Contract-abiding and Credit-worthy Enterprise in Jiangsu Province from 2021 to 2022
  • Advanced Collective in Industrial Enterprise Safety Production Management in Wuzhong District
  • Enterprise with Outstanding Contribution to Tax Payment
  • Excellent Enterprise
  • Advanced Unit of Guangcai Business
  • Suzhou Headquarters Enterprise