ESG Report 2023

In the production and daily operations of the Group, the main sources of greenhouse gas emissions include: i. direct greenhouse gas emissions, including stationary combustion sources such as fuel combustion of boilers used for production and heating, movable combustion sources like vehicle fuel combustion, and use of refrigerants; ii. indirect greenhouse gas emissions of energy, including purchased electricity; iii. other indirect greenhouse gas emissions, including the carbon emissions generated when employees are taking aircrafts for business trips, methane emitted from the disposal of wastepaper, and indirect emission generated from water and sewage treatment. The Group has been adopting a multi-pronged approach and striving to reduce greenhouse gas emissions. The energy-saving and water- saving measures implemented by Inner Mongolia Company, as well as various innovative energy-saving and emission-reduction projects can not only reduce energy consumption, but also minimize greenhouse gas emissions and help slow down the rate of global warming. During the Year, the Group focused on reducing carbon emissions in the direction of energy conservation. The Production Technology Department organised and launched activities for the Energy Conservation Week to cultivate employees' awareness of energy conservation, eliminate energy waste, and achieve “energy conservation, consumption reduction, pollution reduction and efficiency enhancement”. Tree planting is a way to offset carbon emissions. Even if the effect cannot be compared with active carbon reduction, it can take the effect of long-term absorption of carbon emissions. During the Year, the Group also held the Tree Planting Day to contribute to the low-carbon development. 10.2.1 Promoting Low-carbon Development Planting Trees to Add Fresh Greenery in the Splendid Spring The United Laboratories organized a volunteer team of over 80 individuals to carry out tree planting activities in the residential and factory areas. Prior to the commencement of the event, a brief mobilization was conducted, during which the Greening Officer from the Administration Department explained the essentials and precautions of tree planting. Subsequently, everyone received tools, gloves, and other necessary items, and quickly proceeded to their designated planting areas according to their assigned groups. During the tree planting activity, the volunteers demonstrated their spirit of perseverance and hard work, overcoming unfavorable factors such as dusty weather. Some adjusted the saplings while others prepared the soil, built enclosures, or watered the plants with buckets. With coordinated efforts and full dedication, a vibrant and enthusiastic labor scene unfolded. After a morning of diligent work, a total of 60 early-ripening pear trees, 95 white wax trees, 12 golden elm trees, 50 cypress trees, and a 400-meter-long (12,000 plants) elm hedge were planted. The newly planted seedlings stood tall in rows, radiating vitality and vigor. 88 Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited