ESG Report 2021

14 Sustainable development is the basic national policy of China. Pharmaceutical enterprises should adhere to the people-oriented principle to achieve sustainable development, and scientifically and reasonably coordinate the relationship among personnel, production and environment to achieve continuous improvement of social and environmental benefits, which is of great significance for enterprises to maintain competitiveness in the market. Environmental protection is the lifeline of an enterprise. Adhering to the in-depth implementation of ecological civilisation thought, resolutely implementing corporate environmental responsibility, vigorously promoting green development, continuously promoting more efficient environmental governance standards, organically combining environmental protection with production development, ensuring the normal operation of corporate production activities, always achieving environmental protection compliance, and continuously seeking cost-saving solutions from the perspective of environmental protection, so as to seize new green market opportunities, which is of great importance to the development of enterprises. Q A Global climate change may lead to the introduction and update of laws, regulations and relevant policies by the state, change of the industry landscape, and in turn change the existing operation model of The United Laboratories. At the same time, climate change focuses on greenhouse gas emissions. Therefore, climate change will transform the company's business model to low-carbon, green, energy-saving and emission-reduction. Q A From Environmental Protection Department of Inner Mongolia Company Mr. Shi Quan Sheng From Environmental Management Department of Zhuhai Company Mr. Wan Chao Jun Zhuhai Company has many risk receptors in the surrounding environment and is close to the living area of residents. In this regard, Zhuhai Company continues to upgrade and renovate environmental protection treatment facilities, and improves the level of deep treatment by employing advanced treatment processes, such as granular activated carbon absorption and desorption devices to treat volatile organic compounds in exhaust gas, introducing internal circulation reactors to increase wastewater treatment capacity, etc. At the same time, in terms of exhaust gas collection, the sewage treatment tank is sealed to achieve unified collection and treatment of sewage treatment exhaust gas, enhance the controllability of unorganised exhaust gas, improve the level of atmospheric environment around the enterprise, and create a good living environment for the public. Q A Environmental, Social and Governance Report 2021 The United Laboratories International Holdings Limited What is the importance of sustainable development for a pharmaceutical company? What is the impact of climate change on the Company's operations? What has the Company's green operation projects contributed to environmental and ecological protection?