3SBio : 2022 ESG Report

(Incorporated in the Cayman Islands with limited liability)

Stock Code : 1530 Convertible Bonds Code : 40285

2022 Environmental, Social and Governance Report

Mission for Innovation

Champion for China

Global Outreach

2022 Environmental, Social and Governance Report

CONTENTS

3SBIO 2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT	1
OUR 2022: STEADY DEVELOPMENT AND RECORD HIGH	2
	ESG RATING RESULTS	2
	EXAMPLES OF ESG WORK HIGHLIGHTS	2
	ESG KEY PERFORMANCE IN 2022	3
1.	ESG GOVERNANCE SYSTEM	4
	1.1	ESG MANAGEMENT CONCEPT	4
	1.2	ESG MANAGEMENT FRAMEWORK	4
	1.3	IDENTIFYING MATERIAL TOPICS	6
2.	COMPLIANCE	10
	2.1	COMPLIANCE & ETHICS	10
	2.2	IPR MANAGEMENT	16
	2.3	ANIMAL WELFARE	17
3.	PRODUCT AND CLIENT SERVICE RESPONSIBILITY	20
	3.1	PROVIDING HIGH-STANDARD QUALITY PRODUCTS	20
	3.2	PROVIDING QUALITY SERVICES TO CLIENTS	29
	3.3	RESPONSIBLE MARKETING	30
4.	EMPLOYEE DEVELOPMENT RESPONSIBILITY	32
	4.1	EMPLOYEE'S RIGHTS, INTERESTS AND WELFARE	32
	4.2	OCCUPATIONAL HEALTH AND SAFETY	36
	4.3	TALENT DEVELOPMENT AND RETENTION	40
5.	ENVIRONMENTAL PROTECTION RESPONSIBILITY	45
	5.1	ENVIRONMENTAL MANAGEMENT SYSTEM	45
	5.2	POLLUTANT REDUCTION	47
	5.3	RESPONDING TO CLIMATE CHANGE	49
	5.4	EFFICIENT USE OF RESOURCES	53
6.	SUPPLY CHAIN RESPONSIBILITY	55
	6.1	RESILIENT SUPPLY CHAIN	55
	6.2	RESPONSIBLE SUPPLY CHAIN	56
7.	SOCIAL CONTRIBUTION RESPONSIBILITY	57
	7.1	SUPPORTING HEALTHCARE DEVELOPMENT	57
	7.2	ENHANCING ACCESSIBILITY TO MEDICINES AND MEDICAL SERVICES	60
8.	PERFORMANCE DATA	64

9. INDEX TO THE ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTING   GUIDE OF THE STOCK EXCHANGE OF HONG KONG LIMITED

("THE HONG KONG STOCK EXCHANGE")	72
10. ABOUT THE REPORT	75
	2022 Environmental, Social and Governance Report	1

2022 Environmental, Social and Governance Report

Our 2022: Steady Development and Record High

ESG Rating Results

As a responsible corporate citizen, 3SBio Inc. (the "Company" or "3SBio", and with its subsidiaries collectively, the "Group") makes environmental, social, and governance ("ESG") management a priority of its management agenda and has been working to improve ESG management.

The Group's ESG achievements have been recognized by the society and the capital market. In 2022, the Group's ESG performance jumped to the "AA" rating by MSCI, higher than 88% of the rated worldwide peers. The Group's CDP Climate Change Questionnaire score in 2022 maintained its "B" rating (management level), the same as the two preceding years.

ESG Rating History

MSCI ESG Rating history data over the last five years or since records began.

AAA
AA			A	A	AA
A
BBB		BBB
BB	BB
B
CCC
	Jul-18	Aug-19	Aug-20	Sep-21	Nov-22

ESG Rating Score by MSCI

Name

Response

Year

Status

Score

	3Sbio	Climate Change 2022	2022	Submitted	B
	3Sbio	Climate Change 2021	2021	Submitted	B
	3Sbio	Climate Change 2020	2020	Submitted	B

Scores in CDP Climate Change Questionnaire

Examples of ESG Work Highlights

Governance The Group updated the 3SBIO INC ESG Code of Conduct to stipulate that suppliers should have an appropriate anti-corruption policy in place, conducted regular audits against the anti-corruption system to ensure the effectiveness of the system, and agreed to be audited by the Group or a third party engaged by the Group to verify the supplier's compliance with anti-corruption principles.

Social

Environment

The Group further strengthened the construction of supplier diversification, promoted the development of a second supply source in each manufacturing base, shortened the supply cycle of materials by increasing the number of backup suppliers and localization substitution, reduced the risk of supply disruption caused by the pandemic and the international situation, ensured the timely delivery of products and protected the rights and interests of customers.

Each manufacturing base actively conducted training related to environmental protection for all employees to enhance their awareness of environmental compliance and their ability to handle environmental emergencies.

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2022 Environmental, Social and Governance Report

ESG Key Performance in 2022

Environmental Performance

Total circulating water amounted to 36,659.00 m³, an increase of 50.39% year-on-year

Hazardous waste intensity 1.46 kg/RMB10,000, a reduction of 8.40% year-on-year

Greenhouse gas emissions per revenue unit were 0.086 ton of CO2 equivalent/RMB10,000, down 2.48% year-on-year

Social Performance

The percentage of employees trained reached 100% Suppliers accepting evaluation in terms of environment, labor and ethics reached 83.74%

Training hours per person averaged 18.09 hours The percentage of anti-corruption training for employees and directors reached 100%

2022 Environmental, Social and Governance Report

3

2022 Environmental, Social and Governance Report

1. ESG Governance System

1.1 ESG Management Concept

Driven by the mission of "making innovative biopharmaceuticals reachable", the Group has been devoted to solving medicine-related problems for patients. Surmounting disease-related challenges one after another, it strives to improve patients' life quality with high-quality medicine and safeguard people's health.

The Group takes compliance operation as the foundation of its Corporate Social Responsibility (CSR), honoring its commitments to stakeholders, including shareholders, clients and consumers, employees, members of the public and community, and the government and regulators. The Group takes active measures to fulfill its CSRs, provides doctors with reliable treatment tools and patients with trustworthy medicines, helps the government reform the medical system, extends care and support to its employees, and brings hope of life to patients and their families who are in economic needs.

Mission

Making innovative biopharmaceuticals reachable

Vision

Based in China, we aim to emerge as a globally leading biopharmaceutical

company

	Values			Philosophy
Innovation, Quality, Win-win cooperation	Cherish life, Caring for life, Create life
Compliance	Products and	Employee	Environmental	Supply Chain	Social
Client Service	Development	Protection	Management	Contribution

1.2 ESG Management Framework

The Group has set up a top-down ESG management framework to ensure efficient implementation of its ESG agenda. The ESG Committee, with the participation of members of the board of directors (the "Directors") of the Company (the "Board of Directors"), is responsible for the ESG agenda and makes decisions regarding ESG and oversees ESG matters. The ESG Working Group implements decisions and measures under the guidance of the ESG Committee.

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