ESG Report 2018

BOILER COMPREHENSIVE TREATMENT SYSTEM In order to completely avoid environmental pollution caused by improper waste disposal , so as to protect the environment, the physical and mental health of the people , Inner Mongolia Company's new boiler comprehensive treatment system was officially put into operation during the Year . Through coal-blending burning, comprehensive treatment, which is legally permitted, is performed for waste activated carbon, waste enzyme, and concentrated liquid in MVR in the system that turns hazardous waste into harmless. Incineration of solid waste can greatly reduce the volume of the waste. Waste does not need to be transported over long distance , so the processing speed is fast , the storage period is short , and the energy generated during the burning can be reused for heating supply . Clean combustion can be achieved by avoiding secondary pollution through proper combustion and exhaust gas purification . REDUCTION OF GREENHOUSE GAS EMISSION Greenhouse gas emission is the most concerned environmental issue by China and the international community in recent years . In the production and daily operation of the Group , the main sources of greenhouse gas include fixed sources such as the combustion of fuel in the boiler for production and heating , mobile sources such as the combustion of vehicle fuels , use of refrigerant , electric power purchased , methane generated from disposal of waste paper , indirect emission from treatment of water and sewage as well as the carbon emission by the airplanes for business trips . The Group has adopted many means and tried its best to reduce greenhouse gas emission of the Group . Inner Mongolia Company has implemented multiple energy and water saving measures , as well as innovative projects in energy saving and emission reduction . These measures and projects can reduce the amount of energy consumption and hence the emission of greenhouse gas . 2017 Scope 2 – indirect greenhouse gas emission of energy 1 Scope 3 – other indirect greenhouse gas emission 1 Total emission of greenhouse gas per ton of products (tons CO e) 2 1 Total emission of greenhouse gas (tons CO e) 2 Scope 1 – direct greenhouse gas emission and reduction 301,167 3,209 39.42 1,384,428 1,080,052 Indicators 2018 279,320 3,047 32.67 1,296,896 1,014,530 1.Adjustment of water consumption amount and the relevant greenhouse gas emission has been made as Inner Mongolia Company has updated its categorization of water consumption during the Year. Data of 2017 has been restated accordingly. 12 Environmental, Social and Governance Report 2018 The United Laboratories International Holdings Limited