ESG Report 2023

96 Market Market Information Uncertainty Impacted by climate change or national dual-carbon policies, sudden power and water restrictions, electricity price increases may occur, affecting normal production, timely delivery, and increasing production costs. Monitor market information and energy policy changes closely to ensure timely information. Establish communication mechanisms with power and water supply departments and develop emergency response-related systems. Reputation Stakeholders' Concerns and Negative Feedback Government no longer approves expansion of energy-intensive factories. Implement a series of energy-saving and carbon reduction measures to reduce environmental impact, ensure EHS compliance, and strictly control EHS risks. RISK CATEGORY RISK IMPACT LEVEL Climate-related Risks - Physical Risks LIKELIHOOD SEVERITY Immediate Risks Long-term Risks EXPECTED TIMEFRAME Extreme Heat Extreme Cold Medium Medium Low Very Likely Very Likely Possible Global Warming Climate-related Risks - Transition Risks Short-term Medium-term Short-term Medium Medium Moderate Climate-related Risks - Transition Risks RISK CATEGORY RISK POTENTIAL IMPACT RESPONSE MEASURES Medium Medium Medium Medium Regulatory Increased Greenhouse Gas Emission Pricing Dual Control of Energy Consumption and Carbon Intensity for Existing Products and Increased Supervision Market Reputation Rising Raw Material Costs Market Information Uncertainty Stakeholders' Concerns and Negative Feedback Very Likely Very Likely Very Likely Possible Low Probability Short-term Medium-term Short-term Medium-term Short-term Severe Medium Severe Medium Moderate High Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited