ESG Report 2025

28 Paris Agreement Interim Regulations on the Administration of Carbon Emissions Trading Administrative Measures for Voluntary Greenhouse Gas Emission Reduction Trading (Trial) Action Plan for Carbon Peaking Before 2030 Climate Risk Management Policy and Procedures Emergency Response Plan for Coal Inventory under Extreme Climate Conditions Production Performance Assessment Scheme Area Relevant Laws, Regulations and Standards Internal Policies Climate Change To ensure effective climate management, The United Laboratories has incorporated climate management into its ESG governance framework and established a climate governance structure with the Board as the highest decision-making body. The Board is responsible for the overall oversight of climate-related risks and opportunities of the Group. Climate topics are discussed at least annually at regular Board meetings, during which the potential impact of climate risks on the Group's operations and strategy is reviewed. The Board also oversees senior management in formulating and implementing climate responses, and evaluates whether appropriate measures have been taken to address the impacts of climate change on the Group. Progress against climate targets is reviewed annually and adjusted where necessary to ensure that implementation remains on track. Climate-related risks and opportunities are also taken into account when the Board oversees strategy, major transactions, risk management and related policies, and when it evaluates their potential implications for the Group's business development and operations. The Group has established a Sustainability Committee as an integral part of its ESG governance structure to oversee sustainability matters, including climate change. The Sustainability Committee has an in-depth understanding of industry trends and Company operations. It is responsible for formulating climate response policies, monitoring climate risk management in daily operations, evaluating implementation effectiveness, and reporting regularly to the Board on the implementation status of climate policies and the effectiveness of risk management, thereby ensuring alignment between the Group's strategy and global trends in climate governance. Meanwhile, the coordination and execution of climate-related matters have been delegated to the Sustainable Working Group, which integrates climate risk into the overall risk management procedures and system, enabling the Group to identify potential risks proactively, make effective decisions, and coordinate business departments in formulating and implementing climate action plans. 6.1 Climate Governance Against the backdrop of global climate change, enterprises face not only environmental challenges but also an imperative to actively fulfil their social responsibilities and advance sustainable development. As a pharmaceutical enterprise guided by the mission of “To Make Life More Valuable”, The United Laboratories recognises that sound climate management is a core issue in achieving long-term sustainable development and safeguarding the future of human health. The increasing frequency of extreme weather events and other climate-related developments has created systemic risks for the global ecology, economy and society. In response, the Group has fully integrated climate action into its strategic decision-making and core operations, with a view to strengthening development resilience. This chapter has been prepared with reference to IFRS S2 Climate-related Disclosures, which fully incorporates the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), as well as the Code of the Stock Exchange. It provides a systematic disclosure of the Group's approach, actions and progress in managing climate-related risks and opportunities under the four core pillars of Governance, Strategy, Risk Management, and Metrics and Targets. As a supporter of TCFD-aligned disclosure, we are committed to providing transparent, comparable and forward-looking climate information in response to the concerns of investors and other stakeholders, and to working together with all parties towards a low-carbon, resilient and sustainable future. The relevant laws, regulations and internal policies applicable to this chapter are set out below. The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report