ESG Report 2019

REDUCTION IN WATER CONSUMPTION WATER CONSERVATION MEASURES IN PRODUCTION PLANTS Innovated the production processes to reduce water consumption Incorporated consumption reduction indicators into the annual assessment of each production plant WATER CONSERVATION MEASURES IN OFFICES Strengthened the management of regular maintenance of water equipment to prevent leakage or dripping, so as to practise turning the faucet off at will Completed the 37,000 tonnes/day reclaimed water reuse project to put recycling of wastewater into practice. It is estimated that the amount of water purchased can be reduced by around 56%, and the annual amount of water saved would be about 6.83 million Completed the acidic wastewater MVR reconstruction and expansion project to improve wastewater treatment capacity and achieve treatment and reuse of condensate, saving about 4,200 of water per day Collected used water and steam, including squeezed water, hermetic centrifugal water, deaerator exhaust, highly concentrated salt water and condensate, and reused it after filtration, pressurization and other processes to reduce fresh water consumption Replaced the originally used drinking water for production processes with by-products such as steam condensate and dialysate Optimized the water production process of the purified water system to eliminate excessive water production tonnes tonnes WATER CONSERVATION OPTIMIZATION PROJECTS OF THE YEAR 63 Linhe District, where Inner Mongolia Company of the use of water resources and strives to is located at, has a diverse natural ecological reduce the consumption or waste of water environment, and ecological environment care resources in every detail. and remediation has always been the main task of the provincial government. The comprehensive aquatic ecology governance action is an important part of the construction of ecological environment protection in Inner Mongolia. Inner Mongolia Company actively coordinates with the policy to reduce water consumption and the impacts on water resources in every step of its production and daily operation in different ways. Due to the extremely strict production conditions of pharmaceutical products, it is difficult to make large adjustments to the use of water resources. Therefore, Inner Mongolia Company thoroughly understands the details In order to promote water conservation work, Inner Mongolia Company completed the testing and construction work of key environmental protection projects for reuse of reclaimed water, and the reconstruction and expansion of key environmental protection projects of acidic wastewater MVR during the Year. At the same time, Inner Mongolia Company implemented water conservation measures in production plants and offices and carried out water conservation optimization projects in the plants, bringing an increase in water reuse rate and reduction in unnecessary water consumption. Environmental, Social and Governance Report 2019 The United Laboratories International Holdings Limited

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