ESG Report 2024

85 Environmental, Social and Governance Report 2024 The United Laboratories International Holdings Limited Reduce operating costs (e.g. using the lowest-cost carbon reduction measures) Reduce the risk of future fossil fuel price increases Reduce greenhouse gas emission risk, thereby reducing sensitivity to changes in carbon trading prices Improved reputation and increased demand for products Continue to develop photovoltaic power generation projects and actively explore other feasible clean energy options Regularly conduct clean production audits and continue to apply comprehensive preventive environmental protection strategies to production processes and products Establish incentives for clean production to ensure its continued effectiveness and reduce greenhouse gas emissions to increase profitability potential in the carbon trading market Energy Substitution Clean energy and renewable energy, participation in carbon trading markets Enter new and emerging markets (e.g., c o o p e r a t e w i t h g o v e r nme n t a n d development banks) to increase revenue Diversify financial assets (e.g., green deposits) to diversify risks Continue to monitor new markets and actively prepare for new market and business opportunities due to climate change-induced emerging diseases Actively explore the green finance market, such as green deposits and other financial products Strengthen follow-up on environmental policies and timely apply for subsidies. For example, by building green factories, carrying out energy efficiency certification, and other measures to obtain low-carbon subsidies and incentives from government departments, thereby increasing the competitiveness of our products in the market and increasing product sales volume Market New market opportunities Subsidies and other benefits from government policy encouragement New financing opportunities brought by the development of green finance Opportunity Type Increase the market value of infrastructure, land, and buildings through resilient planning Improve operational resilience through energy substitution and other means Opt for environmentally friendly materials and processes for product production, build green factories, and green office buildings to enhance the market value of fixed assets Actively promote photovoltaic power generation and explore other clean energy sources to improve energy supply reliability Research the feasibility of energy-saving projects such as photovoltaic battery storage to further enhance production power supply guarantee and improve operational resilience Resilience Renewable energy projects and energy-saving measures Energy substitution/ diversification To address the potential risks and opportunities brought by climate change, the Group has systematically established a climate risk management process and framework under the guidance of the Board of Directors and the Sustainability Committee, referencing the contents of the "Climate Change Risk Management Regulations". This framework encompasses all aspects of risk identification, assessment, response, and monitoring. To ensure effective risk management, we regularly convene management from relevant departments to collaboratively identify climate risks and opportunities. With the assistance of external experts, we conduct thorough assessments of these risks and opportunities and develop corresponding response plans. All outcomes will be reported regularly to the Group to ensure the implementation of measures and continuous improvement. Our climate risk management steps are as follows: 10.2.3 Risk Management Opportunity Opportunity Description Response Measures