ESG Report 2023

89 Energy consumption is crucial to pharmaceutical enterprises, and the derived environmental impacts from greenhouse gas emissions cannot be ignored. In the production and daily operations, Inner Mongolia Company needs to use different energy sources, including purchased electricity, steam, and motor vehicle fuel. In response to the Country's implementation of energy conservation in major industrial segments, Inner Mongolia Company has improved energy efficiency to achieve sustainable development according to the Energy Conservation Law of the People's Republic of China. In order to effectively manage energy consumption and reduce carbon emission, Inner Mongolia Company has formulated a comprehensive energy management system according to the National Requirements on Energy Management System and Energy Management System Implementation Guide, including the electricity consumption management system and steam consumption management system. Inner Mongolia Company has also set up an enterprise energy management organization to coordinate energy consumption and energy conservation measures of each production plant or department. In the meantime, to effectively foster energy conservation, Inner Mongolia Company has formulated control measures of energy consumption, so that targets and plans of energy conservation can be delivered to production plants, teams and even individual positions, prompting all plant employees to jointly perform energy-saving work, reducing emission and mitigating global warming. During the Year, the Group also set a long-term target for production to gradually reduce energy consumption per unit of product. The target for this year has been successfully achieved, and the comprehensive energy consumption per unit of production value of the Company has decreased by 13.1%. In terms of power management, Inner Mongolia Company has specially set up a demand side management platform for power, installed with electricity monitoring devices at the distribution network gateway, power distribution cabinet and main power equipment to collect data in power strength and power quality indicator to monitor electricity consumption. Inner Mongolia Company will analyse the data collected by the management platform to understand the overall situation of electricity consumption and sources where power is wasted, so as to optimize the distribution network and power consumption facilities, hence reduce electricity consumption and save energy. 10.2.2 Improving Energy Efficiency Corporate Energy Management Bodies Divide the energy consumption indicators and deliver them to relevant departments and sections on a case-by-case basis, and supervise their implementation Hold monthly meetings for energy conservation analysis to analyse the results and existing problems of energy conservation, and propose improvement measure Analyse the causes and propose corrective measures when the energy supply is abnormally fluctuating Supervise the implementation of reward and punishment for energy conservation and acknowledge the individuals and departments that contribute to energy conservation Focus on monitoring the transportation and use of energy and raw materials in Inner Mongolia Company Data analysis of energy consumption, material consumption and pollution generation through technical means such as automation and information technology Supervise the implementation of energy conservation and environmental protection strategies, policy regulations, standards and related instructions Assess the energy conservation and protection work according to the related responsibilities and reward-and-punishment system of various departments Conduct regular audits of the entire factory's energy use to formulate energy conservation plans, technical renovation plans, etc. Supervise the monitoring devices for fuel, water, electricity, steam and other metering devices and environmental protection facilities Task Force on Energy Consumption Energy Saving Office Control Centre of Energy and Raw Materials Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited