Climate change is a serious challenge facing mankind in the 21st century. In recent years, in the face of global warming, extreme weather and other challenges, Sino Biopharm has resolutely implemented the concept of green development, actively participated in China's "2030 Carbon Peak, 2060 Carbon Neutral" independent emission reduction strategy, and committed to build an environmentally friendly low-carbon enterprise. We have responded to UN Sustainable Development Goals (SDGs), continuously strengthened our environmental management system and system construction, comprehensively identified climate change risks and formulated countermeasures, promoted several energy-saving and environmental protection improvement projects, and continued to work in the field of green transformation in the pharmaceutical industry.

--Promoting "green development" and building "green factories"--

Green enterprise is a healthy and sustainable modern enterprise development model, and enterprises need to continuously explore to achieve a three-dimensional balance of social value, ecological environment and economic profit. Sino Biopharm has incorporated "green development" into its corporate DNA, strictly complied with laws and regulations, established a sound internal environmental management system, and continuously implemented the "green factory" concept. We advocate resource conservation, waste reduction, green office and recycling, and are committed to continuously reducing greenhouse gas emissions such as carbon dioxide, striving to minimize the impact on the environment and climate during the production and operation of the Group and its member enterprises.

Adhering to the main vision of actively responding to the national dual carbon target and leading the low-carbon transformation of the industrial chain, the Group's greenhouse gas emissions per million yuan of revenue will be 11.52 tons of carbon dioxide equivalent in 2021, which is an excellent level in the same industry. At the same time, we actively fulfill our core corporate responsibilities and continue to increase our investment in environmental protection. In 2021, the Group will invest a total of more than 93.5 million RMB in environmental protection, an increase of nearly 5% compared to 2020.

Sino Biopharm has been building a "green factory" from the perspective of high energy-consuming equipment iteration, introduction of new environmental protection technology, and installation of new energy equipment, etc. Meanwhile, certain milestones have been achieved, and the core enterprise, CTTQ, has actively responded to the national "Industrial Green Development Plan" and won the national "Green Factory" title after layers of screening and strict reviews by third-party institutions with high standards and multiple dimensions.

Sino Biopharm has been building a "green factory" from the perspective of high energy-consuming equipment iteration, introduction of new environmental protection technology, and installation of new energy equipment, etc. Meanwhile, certain milestones have been achieved, and the core enterprise, CTTQ, has actively responded to the national "Industrial Green Development Plan" and won the national "Green Factory" title after layers of screening and strict review by third-party institutions with high standards and multiple dimensions.

Production Base of CTTQ

Production Base of Nanjing CTTQ

The review provides a comprehensive evaluation of the company's environmental management compliance, infrastructure, management system, energy and resource inputs, products, environmental emissions, and performance. CTTQ has achieved green development with intensified land use, harmless raw materials, clean production, resourceful waste, and low carbon energy.

In addition to increasing investment in environmental protection facilities, the Group also encourages its member enterprises to actively promote the construction of environmental management system. In 2021, several member enterprises' production bases obtained environmental management system certification, providing system guarantee for the continuous improvement of environmental management level.

--Carry out special training and drills to make "environmental protection" deeply rooted in people's hearts—

Excellent environmental management cannot be achieved without the active participation of each and every employee. Therefore, in order to enhance employees’ awareness of environmental protection, the Group and its member enterprises have organized a series of training on environmental protection with emphasis on regulatory requirements and environmental responsibility, including the latest environmental protection regulatory requirements, excellent environmental management experience in the industry and internal environmental protection system, etc. The employees' awareness of environmental protection and management ability have been significantly improved.

In March 2021, Chia Tai Fenghai organized special training on internal system documents such as "Chia Tai Fenghai Environmental Protection System", "Chia Tai Fenghai Environmental Emergency Response Plan" and "Chia Tai Fenghai Hazardous Waste Accident Response Plan", with a total of 300 participants, which strengthened employees' awareness of environmental protection and their ability to handle emergency situations.

In March 2021, CP Pharmaceutical (Qingdao) organized an emergency rescue drill for hazardous waste leakage. The participants were mainly the waste storage managers and all members of the hazardous waste emergency rescue team, covering the whole process from waste liquid leakage, information reporting to emergency rescue team disposal, etc., which improved the emergency handling ability of various departments and positions for hazardous waste emergencies.

Emergency drill for hazardous waste leakage at CP Pharmaceutical (Qingdao)

In addition, the Group promotes green office concept and follows green building standards in the design, construction and management of office areas. We make full use of natural light to reduce electricity consumption for daytime lighting and retrofit the free office area with renewable energy. While creating convenient working conditions, we encourage employees to save water, electricity, office supplies and green travel.

CTTQ's photovoltaic power plant

"Building a 'Responsible Sino Biopharm'" and strategically guiding ESG construction, including low-carbon transformation, are the key directions of Sino Biopharm's work. In the future, the Group will formulate and implement energy saving and carbon reduction targets and strategies based on national emission reduction policies, current operational status and other factors. Regularly track and review the achievement of targets and adjust and optimize them as appropriate. Pay attention to the demands and opinions of stakeholders on climate change issues.