ESG Report 2024

90 We place great emphasis on the use of clean energy and are committed to introducing renewable energy sources across the entire Group's facilities. In the Year 2022, the Group initiated plans to begin implementing renewable energy, such as solar panels, in a short period of time. This initiative aims to provide clean energy to the company, reduce carbon emissions associated with electricity consumption, and achieve emissions reduction at the source, contributing to our journey towards carbon neutrality. To achieve this, we have planned to construct three distributed photovoltaic projects with a total capacity of 6 MW in a phased manner by the Year 2024, totaling 18 MW. Upon completion, these projects are expected to generate 25 million kWh of electricity annually. Usage of Clean Energy 10.3.3 Aligning with the Nation's Direction Inner Mongolia Company actively responds to the national carbon emission plan and participates in the verification to verify its carbon emission. Since 2019, Inner Mongolia Company opened an account for carbon trading and opened different systems, including the national carbon emission registration system and trading system, and the national voluntary emission reduction registration system and trading system, which laid the foundation for contract performance. In November 2024, we purchased a total of 187,500 tonnes of carbon quota to offset the shortfall in carbon emission quotas. Linhe District, where Inner Mongolia Company is located, is home to a diverse natural ecosystem. Ecological conservation and restoration have long been a key focus of the provincial government. The comprehensive aquatic ecology governance action is an important part of the construction of ecological environment protection in Inner Mongolia. In this connection, Inner Mongolia Company actively coordinates with the policy to reduce water consumption in every step of its production and daily operation in different ways. In addition, greenhouse gas will be generated in the process of sewage treatment, leading to carbon emission. Therefore, the consumption of water resources is closely related to climate change. Inner Mongolia Company thoroughly understands the details of the use of water resources and strives to reduce the consumption or waste of water resources in every detail, so as to reduce greenhouse gas emission and its impacts on climate change. Besides, the Group has designated water resource management strategies for all operating locations, with main measures including water conservation in Inner Mongolia production workshops and daily office water conservation. 10.4 Water Resource Management Workshops 102 and 104 are implementing energy-saving upgrades for the acid water tower, expected to save of steam annually 60,000 tonnes The Energy-saving Optimisation Project of This Year Workshop 505 is conducting a waste heat recovery project for the hot water lithium bromide unit, expected to save of electricity annually 13.57 million kWh Workshop 106 is upgrading the waste heat recovery system for the acid water tower, expected to save of steam annually 100,000 tonnes Workshop 508 is working on a biogas combustion waste heat utilisation project, expected to save of natural gas annually 9.17 million cubic meters Workshop 503 is carrying out a condensate recovery project, expected to save of steam annually. 24,000 tonnes Workshop 503 is implementing a variable frequency drive upgrade for the pulp circulation pump, expected to save of electricity annually 680,000 kWh Workshop 103 is upgrading to a direct drive motor for the canning system, expected to save of electricity annually. 1.42 million kWh Environmental, Social and Governance Report 2024 The United Laboratories International Holdings Limited