ESG Report 2025

33 The United Laboratories conducts analysis with reference to parameters such as asset location, asset type, the historical impacts of extreme weather and energy consumption patterns, while also using publicly available climate scenario data and internal operational data such as operation logs. The Group has systematically integrated the identification, assessment, prioritisation and management of climate- related risks and opportunities into its overall risk management framework, thereby ensuring that climate risk management and opportunity capture are carried out on a regular and standardised basis. The Board bears ultimate responsibility for the effective operation of the Group's climate-related risk and opportunity management system. Under the guidance of the Board and the Sustainability Committee, the Group has established a full-process management system covering identification, assessment, prioritisation and response, with reference to its “Climate Risk Management Procedures”. To ensure effective management, senior management is responsible for formulating the specific climate risk management framework and regularly convening business departments to identify, report and discuss response plans for risks and opportunities in light of a changing external environment. Each business department is responsible for implementing relevant actions within its own area of responsibility. The Audit Committee assists the Board in fulfilling its oversight duties through the ongoing review of relevant systems and procedures. During the Year, there were no material changes to the overall climate risk management process which detailed below. Although the Group has not yet formulated a standalone climate transition plan, responsive measures have already been implemented and the measures disclosed in the previous reporting period have been fully executed. Relevant funding and implementation have been arranged through internal capital and existing human resources. During the Reporting Period, the Group also established climate-related targets to comprehensively promote decarbonisation and climate resilience building. To achieve these targets, the Group continued to focus on areas such as energy-saving technological upgrades, energy substitution and the circular economy, and invested approximately RMB75.95 million during the Year, with all resources coordinated through internal capital and existing manpower. The Group also enhanced its energy performance assessment mechanism to ensure that emission reduction responsibilities are cascaded through all levels. During the Reporting Period, there was no capital expenditure, financing or investment dedicated specifically to responding to climate-related risks and opportunities. Despite the positive actions taken, the effective implementation of future climate resilience plans still faces key uncertainties, including the pace of global and regional climate policy updates, changes in customer demand for green services, and the evolving speed and severity of physical climate impacts. Nevertheless, the Group believes that it has strong adjustment and adaptation capabilities and will be able to adapt its strategy and business model over the short, medium and long term. This adaptive capability is embedded in the Group's continuing strategic planning and operational management, allowing it to adjust business priorities, operating processes and value chain collaboration in a timely manner in response to evolving climate risks, regulatory changes and market dynamics. Looking ahead, the Group will regularly monitor climate-related risks and opportunities, evaluate the effectiveness of mitigation measures, adjust strategies in light of operating performance, and track the progress of all climate-related targets through routine monitoring. Climate-related targets will be refined in line with operating performance and external climate trends to ensure that they remain both practical and progressive. The Group will also optimise mitigation and adaptation measures based on target progress and effectiveness assessments. These clear targets will guide all climate actions in an orderly manner, effectively supporting the Group in achieving its climate-related objectives and further enhancing its resilience to climate change. 6.3 Climate Risk Management Resource efficiency and energy substitution Proactively implement energy-saving and carbon-reduction initiatives and continue to increase the use of green energy to reduce carbon intensity and manage long-term compliance costs and transition risks. R&D innovation and market expansion Treat green operations that go beyond compliance as part of the Group's core competitiveness, and continue to improve resource efficiency and environmental performance through innovation and systems optimisation. Opportunity Enhanced operational resilience Build a more resilient, diversified and collaborative supply chain system and reduce dependence on price-sensitive resources through process innovation. Type of Risk/Opportunity Response Strategy The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report