ESG Report 2024

88 In the production and daily operations of the Group, the main sources of greenhouse gas emissions include: 10.3.1 Promoting Low-Carbon Development i.Direct greenhouse gas emissions, including stationary combustion sources such as fuel combustion of boilers used for production and heating, movable combustion sources like vehicle fuel combustion, and use of refrigerants; ii. Indirect greenhouse gas emissions of energy, including purchased electricity; iii.Other indirect greenhouse gas emissions, including the carbon emissions generated when employees are taking aircrafts for business trips, methane emitted from the disposal of wastepaper, and indirect emission generated from water and sewage treatment. The Group has been adopting a multi-pronged approach and striving to reduce greenhouse gas emissions. The energy-saving and water- saving measures implemented by Inner Mongolia Company, as well as various innovative energy-saving and emission-reduction projects can not only reduce energy consumption, but also minimise greenhouse gas emissions and help slow down the rate of global warming. During the Year, the Group focused on reducing carbon emissions in the direction of energy conservation. The Production Technology Department organised and launched activities for the Energy Conservation Week to cultivate employees' awareness of energy conservation, eliminate energy waste, and achieve “energy conservation, consumption reduction, pollution reduction and efficiency enhancement”. Tree planting is a way to offset carbon emissions. Even if the effect cannot be compared with active carbon reduction, it can take the effect of long-term absorption of carbon emissions. To this end, we organised a tree planting activity to contribute to the promotion of low-carbon development. Embracing Spring, New Green Awaits The Group organised over 80 volunteers to carry out tree planting activities in the residential and factory areas. Before the activity began, the greening officer from the Administration Department gave a brief mobilisation speech and explained the techniques and precautions for planting trees in detail. Afterward, everyone received tools and gloves and quickly headed to their respective planting areas in groups. After a morning of effort, we successfully planted 160 golden leaf wax trees, 150 golden leaf elms, 10 early-ripening pears, 30 lilacs, 25 elm-leaf plums, and 6,250 elm seedlings. The newly planted trees were neatly arranged, showcasing vibrant vitality and adding a touch of greenery to the factory area. Energy consumption is crucial to pharmaceutical enterprises, and the derived environmental impacts from greenhouse gas emissions cannot be ignored. In the production and daily operations, Inner Mongolia Company needs to use different energy sources, including purchased electricity, steam, and motor vehicle fuel. In response to the national implementation of energy conservation in major industrial segments, Inner Mongolia Company has improved energy efficiency to achieve sustainable development according to the Energy Conservation Law of the People's Republic of China. In order to effectively manage energy consumption and reduce carbon emission, Inner Mongolia Company has formulated a comprehensive energy management system according to the National Requirements on Energy Management System and Energy Management System Implementation Guide, including the electricity consumption management system and steam consumption management system. Inner Mongolia Company has also set up an enterprise energy management organisation to coordinate energy consumption and energy conservation measures of each production workshop or department. In the meantime, to effectively foster energy conservation, Inner Mongolia Company has formulated control measures of energy consumption, so that targets and plans of energy conservation can be delivered to production workshops, teams and even individual positions, prompting all plant employees to jointly perform energy-saving work, reducing emission and mitigating global warming. During the Year, the Group also set a long-term target for production to gradually reduce energy consumption per unit of product. During the Year, the energy consumption of Unit Output Value decreased by 4.9% compared to the previous year. In terms of power management, Inner Mongolia Company has specially set up a demand side management platform for power, installed with electricity monitoring devices at the distribution network gateway, power distribution cabinet and main power equipment to collect data in power strength and power quality indicator to monitor electricity consumption. Inner Mongolia Company will analyse the data collected by the management platform to understand the overall situation of electricity consumption and sources where power is wasted, so as to optimize the distribution network and power consumption facilities, hence reduce electricity consumption and save energy. 10.3.2 Enhancing Energy Efficiency Environmental, Social and Governance Report 2024 The United Laboratories International Holdings Limited