ESG Report 2024

82 Inner Mongolia Company is a modern comprehensive pharmaceutical factory integrating pharmaceutical intermediates and bulk medicines as a whole. Since the establishment of the plant, environmental protection has been the first priority. It has continuously introduced new environmental protection technologies and new equipment to treat wastewater and exhaust gas generated during the production process, and implemented a number of key environmental protection projects during the Year to fully support the construction of ecological civilisation and green technology innovation. Inner Mongolia Company has passed the ISO14001:2015 “Environmental Management System - Requirements with Guidance for Use” certification. All construction projects have obtained environmental assessment approval and passed the environmental protection completion acceptance. 10.1.2 External Audit In the context of global climate change, enterprises face not only environmental challenges but also the need to actively fulfill social responsibilities and promote sustainable development. As a pharmaceutical company dedicated to human health, we deeply recognise the significant impact of climate change on ecosystems and public health. Climate change has intensified the frequency and severity of extreme weather events, expanded the range of disease transmission, and led to issues such as deteriorating air quality and water resource shortages. To address these challenges, we are actively taking measures to reduce greenhouse gas (GHG) emissions to mitigate the impacts of climate change and focus on developing innovative solutions to tackle health challenges posed by climate change. During the Year, in accordance with the International Sustainability Standards Board (ISSB)'s International Financial Reporting Sustainability Disclosure Standard S2—Climate-related Disclosures (IFRS S2), we have identified climate change risks encountered in our daily operations across four dimensions: governance, strategy, risk management, metrics and targets. We have conducted detailed analyses of each business units to outline the risk factors potentially affected by climate change and subsequently developed effective response strategies. 10.2 Addressing Climate Change The Group incorporates climate management into its ESG governance framework to effectively address climate change. The Board of Directors holds regular meetings to analyse the opportunities and challenges posed by climate change in depth, ensuring that climate risks are fully considered when formulating long-term strategies and short-term operational decisions. Our Sustainability Committee is responsible for overseeing climate-related matters, possessing a deep understanding of industry trends and the Company operations, and developing corresponding climate response policies. This committee continuously monitors climate risk management in daily operations, conducts comprehensive effectiveness assessments, and promptly proposes improvement recommendations while tracking their implementation progress after identifying issues. To ensure the Company continuously adapts to and responds to climate change, the committee regularly submits reports to the Board on the execution of climate policies and the effectiveness of risk management. It also forecasts potential future climate risks, ensuring that the company's development direction aligns with the main trends in global climate governance. 10.2.1 Governance To systematically implement response measures, the Group evaluates identified risks based on time, likelihood, and financial impact, comprehensively assessing the severity. Based on the severity of the risks, we have developed corresponding response measures to mitigate and adapt to the impacts that climate change may have on our business, while also seizing potential opportunities. The climate- related risks and opportunities identified this year are detailed in the table below: 10.2.2 Strategy An audit team composed of experts from the Beijing Standard Certification Center conducted a supervision audit of the quality, environmental, energy, and occupational health and safety management systems at Inner Mongolia Company. The audit experts provided a brief explanation of the inspection findings and conducted a comprehensive analysis of the issues identified during the on-site audit. Ultimately, they concluded that the company's operational performance is steadily increasing, product quality and customer satisfaction are consistently improving, innovation capabilities are continuously enhanced, and both internal and external risks are effectively managed. The suitability, adequacy, and effectiveness of the management systems meet certification requirements. Environmental, Social and Governance Report 2024 The United Laboratories International Holdings Limited The United Laboratories Successfully Passed “Four Systems” Supervision Audit