ESG Report 2023

Succession Planning In order to establish a comprehensive mechanism for selecting, cultivating, and managing successors, the Group has formulated the "Succession Personnel Management Policy". For individuals who have been selected and included in the successor list through assessment and evaluation, the Group provides them with increased attention and targeted development to help them progress rapidly and prepare for greater responsibilities. 9.2.3 Succession Planning and Leadership Development Summary of the "Succession Personnel Management Policy” Pathways for successor nomination: incumbent position, supervising leaders, recommendations from the HR department, etc. Every incumbent middle-level and above managerial staff has the responsibility to develop successor candidates to meet the company's development needs. Each managerial staff member who is approaching retirement within three years or has special circumstances preventing them from performing their duties should recommend at least two successor candidates. Adhering to openness, fairness, and advocating for public supervision. Generally, successor candidates are determined at a ratio of 1:2. 01 Identify the direction and plan for development, implement training measures, evaluate the effectiveness of the development, and conduct tailored development based on individual circumstances. Strengthen practical exercises for successors. Implement job rotation and assign them to important positions. 02 The Group's HR department should timely grasp the situation of potential retirees and successor candidates within the entire Group. The HR department should follow up and understand the development of successors. If the responsible department in charge of the organization conducts investigations on eligible successors, they should focus on evaluating the candidates' leadership abilities, management potential, job performance, values, and cultural adaptability, and submit assessment reports. The HR department should establish successor files. The successor files include the successor list, resumes, investigation materials, development plans, annual assessment records, learning and training materials, etc. 03 Leadership Development Managers are important decision-makers in various aspects of the business and need to demonstrate good leadership, communication, learning, and coordination skills within their teams. Therefore, regular training for managers is crucial. In the Year, the Group organized training activities for mid-to-senior-level managers through online training methods. 71 Successor Selection and Nomination Successor Development Successor Tracking and Management Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited