ESG Report 2023

103 In order to better manage the Group's sewage discharge process, reduce pollutant emissions and avoid causing adverse effects to the environment, Inner Mongolia Company has developed cleaner production management measures to further improve cleaner production strategies, which include four foci: Inner Mongolia Company persists on strictly implementing clean production management methods, and maintaining production quality while gradually reducing resource consumption and pollution. We also raise employees’ awareness of cleaner production, and incorporate relevant awareness into daily operations to reduce the impacts on the environment. 10.4.4 Cleaner Production 10.5 Green Operations The Group regards water as the source of life, electricity as the development leverage, and at the same time, it gives back to nature. The Group always keeps in mind the environmental impacts triggered by each action in the course of business operations and production, so as to conceive corresponding response strategies and implement effective solutions to reduce the impacts. The Group attaches great importance to the environmental governance of its subsidiaries, and conducts environmental audits on the Group’s relevant operation locations to reduce impact and promote ecological and environmental construction. The Group has undergone annual compliance audits on the environmental management systems at the Inner Mongolia and Zhuhai Company, which both locations have obtained the ISO 14001:2015 environmental management system certification, accounting for 33% of the group's business premises. Zhuhai Company has also established an annual toxic emission plan named the "Hazardous Waste Management Plan". Measures that can reduce the generation of toxic emissions have been set, realising emission reduction at source, implementing environmental protection policies and achieving higher environmental goals, becoming a "green factory" and actively promoting green production. With the expansion of the Group’s development scale, the amount of electricity and water consumption also increased inevitably. During the Year, with the slogan of“Saving Electricity, Starting from Scratch”, Zhuhai Company continued to advocate water and electricity conservation, and has zero tolerance for waste. It actively carried out electricity and water conservation activities, and advocated a fashionable and civilized green and low-carbon lifestyle. The Group also realises the recycling of resources through the circular economy industrial chain. Zhuhai Company also promotes the classification of domestic waste, strengthens the recycling of resources, and cultivates employees’ daily habits of waste classification. To cope with climate change, the Group has strengthened the prevention and control measures for extreme weather events, strengthened environmental education and training to enhance the Group’s resilience, and to establish the company’s overall environmental culture. At the same time, Inner Mongolia Company also held a tree planting festival, planting more than 300 trees to support low-carbon development and strive to build a green community. Incorporate the results of cleaner production audit into the daily management of the company, and integrate the cleaner production awareness and methods into the company's production and quality management. Through the implementation of performance appraisal and post duty system, we establish a cleaner production incentive mechanism, and link the reward and punishment measures such as employee bonuses, wage distribution, criticism and recognition to cleaner production performance, so as to enhance employees' eagerness to participate in cleaner production. Establish a special fund for cleaner production of enterprises, and use the economic benefits generated by the implementation of cleaner production for cleaner production in the future, so as to secure the source of funds for cleaner production. This can continuously facilitate the work of cleaner production. Establish long-term cleaner production planning, and further reduce material consumption and energy consumption according to the specific conditions of the enterprise, and hence gradually recycle various energy and waste generated in the production process. Production, energy conservation and environmental protection can be equally valued. Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited