ESG Report 2021

Innovated the production processes to reduce energy consumption, such as: Energy Conservation Measures in Production Plants Energy Conservation Measures in Offices 66 Under a well-established energy management system, Inner Mongolia Company implements energy conservation work from different aspects every year. Through regular inspections of the factories' machinery operation, investigation of the feasibility o f v a r i o u s t e c h n o l o g i c a l u p d a t e s a n d transformations and practical implementation of energy conservation measures, the efficiency of energy consumption has been enhanced. During the Yea r, apa r t from continuing the strict implementation of regular energy conservation measures in factories and offices, Inner Mongolia Company also implemented different types of energy-saving optimisation projects to improve energy efficiency and provide new ways of reducing consumption and conserving energy. Adopt advanced “Smart Pharmaceutical Company Special Device” to ensure fermentation productivity and save electricity; Adopt the “Ternary Flow” technology to ensure the best energy-saving effect of the water pump by improving the delivery efficiency; Installation of “Electric Superman” to ensure smooth and stable voltage of the current flow, safe and electricity-saving; and The environmentally friendly workshop has also installed a magnetic levitation centrifugal blower, achieving an energy saving rate of over 30% Formulated feasible and rigorous performance assessments, and refined the company' s energy saving and consumption reduction assessment and reward mechanism through analysis of energy consumption in production plants Formulated feasible and rigorous performance assessments, and refined the company' s energy saving and consumption reduction assessment and reward mechanism through analysis of energy consumption in production plants Incorporated energy consumption indicators into the annual assessment of each production plant Acknowledged the production plants or individuals with outstanding performance in carrying out energy conservation work Carry out energy and water conservation publicity activities to strengthen employees' awareness of energy conservation Prioritised the purchase of the energy conservation equipment or products with national certifications, adopted environmentally-friendly and energy-saving electrical appliances and equipment, and gradually eliminated the equipment with high energy consumption and low efficiency Reduced the power consumption of lighting equipment, turned on lighting only when necessary, and no lighting was turned on persistently, under the absence of workers, or during daylight Set computers, printers, copiers and other office equipment to low-consumption sleeping mode automatically when they were not in use, so as to reduce standby power consumption Made requirements on the operating temperature of the air conditioner, and not turning on air conditioning during holidays or when there were only few people working overtime Environmental, Social and Governance Report 2021 The United Laboratories International Holdings Limited

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