ESG Report 2019

Inner Mongolia Company continues to conduct increasing output. Regarding the 6-APA research and application of production fungus growing, Inner Mongolia Company has technology optimization on the circular gradually applied it to various plants, economy industrial chain, and strives to successfully shortened the fermentation cycle reduce resource consumption and enhance of the fungi, and reduced the energy and energy resource use efficiency while resource investment in the fermentation cycle. RESPONDING TO CLIMATE CHANGE Greenhouse gas emission is the most projects, can not only reduce energy important environmental issue in China and consumption, but also minimize greenhouse the world in recent years. Inner Mongolia gas emissions and help slow down the rate of Company responds to the Paris Agreement , global warming. fulfills its corporate social responsibilities, actively pays attention to the impacts of During the Year, the Blue Paper of Climate operations on the environment, takes the Change 2019 in China released by the China initiative to mitigate and adapt to climate Meteorological Administration pointed out that change, reduces greenhouse gas emissions the risk level of natural disasters in the flood and formulates contingency plans for season is relatively high, and extreme weather environmental emergencies. In the production events such as typhoons, storm surges, and and daily operations of the Group, the main heavy rains are becoming more frequent. The sources of greenhouse gas emissions include c o n t i n g e n c y p l a n f o r e n v i r o nme n t a l (i) direct greenhouse gas emissions, including emergencies formulated by the Group can stationary combustion sources such as fuel effectively handle related potential disasters combustion of boilers used for production and and reduce the risk of loss to corporate heating, mobile combustion sources like operations due to climate change. The vehicle fuel combustion, and use of contingency plan itemizes precautionary refrigerants; (ii) indirect greenhouse gas measures during flood seasons, which can emissions of energy, including indirect help combat floods and other disasters during emissions from purchased electricity, methane the seasons. The plan also clearly stipulates emitted from the disposal of waste paper, the response plan corresponding units should water and sewage treatment; and (iii) other take when extreme weather events hit, and indirect greenhouse gas emissions, including the emergency rescue system and procedures the carbon emissions generated when corresponding units should implement to employees are taking aircrafts for business prevent the leakage of hazardous materials. If trips. The Group has been working together, the sewage station is being flooded, relevant striving to reduce greenhouse gas emissions. departments must immediately close the inlet The energy-saving and water-saving and drain valves of the sewage station and measures implemented by Inner Mongolia stop the system from operating, so as to Company, as well as various innovative prevent large-scale pollution caused by energy-saving and emission-reduction sewage overflow. Corn Planting Corn Fermentation Organic Fertilizer Fungi Residue 6-APA Intermediate Products Amoxicillin Bulk Medicine 69 Environmental, Social and Governance Report 2019 The United Laboratories International Holdings Limited