ESG Report 2025

29 Consistent with the reporting scope of the Report. Scenarios Used Scope The United Laboratories has enhanced its risk assessment procedures to analyse the potential impacts of climate change on its business and value chain, thereby enabling it to evaluate and formulate appropriate response measures. During the Reporting Period, the Group conducted its first comprehensive climate scenario analysis, covering physical risks, transition risks and related opportunities, and carried out detailed screening and assessment for each category of risk and opportunity. Physical risks refer to risks associated with the physical impacts of climate change, including acute risks driven by extreme weather events and chronic risks arising from long-term shifts in climate patterns. Transition risks refer to risks associated with the transition to a low- carbon economy, which may involve policy, legal, technological and market changes arising from requirements relating to climate mitigation and adaptation. To comprehensively assess potential climate-related risks and opportunities in its business development, the Group considered factors including global warming pathways, changes in climate policy, the relevant time horizons, industry characteristics and strategic objectives. It selected the scenario assumptions and parameters set out below, in alignment with China's “dual carbon” strategy and the Hong Kong Government's target of achieving carbon neutrality before 2050. The Group assessed the current impact of climate risks and opportunities, as well as their expected effects over the short, medium and long term (up to 2030, 2040 and 2050, respectively). These time horizons were defined with reference to the Group's operational budgeting cycle and strategic business planning cycle. In the scenario analysis, it was assumed that the Group's climate-related policies and reporting scope would remain unchanged during the relevant risk horizon. 6.2 Climate Strategy IPCC scenario framework (for physical risk analysis): SSP 1-2.6: global warming controlled within 2.0°C, with social, economic and clean energy transition broadly aligned with historical trends. SSP 5-8.5: Global warming exceeds 4 ºC. Delayed government climate action, stalled emission reduction/adaptation and insufficient policies drive extreme climate impacts, increasing enterprises' immediate and long-term physical risks. NGFS scenario framework (for transition risks and opportunities): Net Zero 2050: early adoption of stringent climate policies, with global warming limited to within 1.5°C through reduced energy demand and deployment of low-carbon technologies. Current Policies: Only currently implemented climate policies remain in place, leading to continued growth in GHG emissions. Global warming is projected to exceed 3 ºC, resulting in severe physical risks. The Group recognises that combining quantitative and qualitative analysis helps provide a more comprehensive assessment of climate- related risks and opportunities. In addition, climate-related actions have been integrated into daily business operations, and there is no separately identifiable dedicated funding for responding to climate-related risks and opportunities. As the relevant operating data are dispersed across different business units and industry-recognised methodologies for measuring such indicators remain highly uncertain, the Group is not yet able to reliably prepare all cross-industry metrics in a reasonable and cost-effective manner. Nonetheless, based on the qualitative assessments and analyses conducted under the selected scenarios and time horizons, the Group has identified 6 key climate risks and 3 key climate opportunities. The Group is also strengthening its internal data integration systems and scenario simulation capabilities in order to improve the degree of quantification in climate-related disclosure over time. To ensure that the Board has the expertise required to fulfil its oversight responsibilities, the Group supports Directors in enhancing their climate-related knowledge and capabilities. Measures include providing professional learning resources, organising targeted internal training, and supporting participation in climate-focused programmes and seminars organised by external professional institutions. These efforts strengthen the Board's ability to respond to climate challenges and keep pace with the latest developments in climate-related risks and opportunities. Through this climate governance structure, with clear accountability and multi-level oversight, the Group is able to respond to climate-related challenges in a systematic and regularised manner and provide a solid safeguard for long-term sustainable development. The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report