ESG Report 2020

Board Statement The Board believes that comprehensive governance of ESG assist the Board in evaluating the Group's ESG performance matters will benefit the Group's long-term development. To by reporting to the Board. effectively supervise the Group's ESG matters, the Board is Through meetings, the Board of Directors reviews and responsible for developing and approving the overall ESG revises the Group's sustainable development policy to vision, strategies and programmes and regularly reviewing ensure that it effectively meets the expectations and needs the Group's ESG performance. The Board has established of stakeholders. In addition, the Group has delegated a the Sustainable Development Working Group to help the professional third party to help manage the Group's ESG Board develop and implement appropriate ESG matters, prepare the ESG report and conduct data management strategies and policies. The working group is collection and analysis. Such party also helps the Board to comprised of representatives from various departments, collect and analyse stakeholder's opinions on ESG matters, with clear structure and responsibilities. It reports to the and carry out materiality assessment to identify the Group's Board on ESG working results regularly. The management material ESG issues. The materiality assessment is based of different departments is responsible for practising, on surveys for collecting opinion from the Group's leading and supervising policies set by the working group stakeholders, including the members of the Board. By according to the ESG strategies, which are then integrating material ESG issues of the industry, the level of implemented by different operational teams. To effectively concern of different ESG issues are rated and prioritised in improve the Group's ESG performance and progress, order to identify the material ESG issues. The assessment departments work in strict accordance with their targets, result is supervised and approved by the Board. while the Sustainable Development Working Group supervises the overall implementation of the targets, and To better plan and implement ESG works, the Group has establishing and planning the targets of sustainable established the Sustainable Development Working Group. It development strategies, promoting and launching ESG aims at introducing the ESG working system at all levels of projects of companies, and organising ESG-related training. the Group, maintaining close communication with The working group also regularly analyses and assesses the stakeholders, achieving compliance operation and effective ESG performance of the Group and its subsidiaries, reviews management, as well as promoting sustainable development the work and provides recommendation. In addition, the of the Group. The working group is responsible for Group has established a sustainable development working supervising, inspecting and reporting on the occupational system, covering all production bases and functional health, safety and environmental protection, labour security departments of the Group for monitoring all ESG-related and quality of the Group and its subsidiaries. It also aspects, so as to achieve effective governance of ESG regulates the standards of daily ESG works, which include matters. ESG System ESG POLICY The Group actively fulfils its social responsibility, and results in better investment value and the delivery of understands that excellent governance of ESG matters sustainable returns to the Group and its shareholders. Board of Directors Sustainable development working group Group's Human Resources Centre Group's Audit and Legal Affairs Centre Group's Procurement Centre Group's Information Centre Group's Cultural and Publicity Department Investor Relations Department ESG Working Groups of subsidaries Production Department Quality Control Department Environmental Protection Department Safety Department Procurement Department Marketing Department Finance Department Risk Management Department R&D Department 5 Environmental, Social and Governance Report 2020 The United Laboratories International Holdings Limited