1. Energy Management

At this stage, we mainly reduce the energy consumption of business operations by strengthening management and raising awareness. We make energy saving knowledge as a part of our daily training. We incorporate "low energy consumption" into the purchasing conditions of laboratory and office equipment. We encourage employees to reduce the standby time of office computers and experimental equipment and turn off unnecessary electrical appliances and lighting switches in a daily manner. We recommend that customers receiving electronic versions of testing, inspection, certification and other documents to reduce paper consumption.  We have also taken various energy-saving measures to reduce energy consumption and carbon emissions, such as:

- Environmental protection measures for green energy buildings: According to the requirements of the Unified Standard for Energy Efficiency Design of Industrial Buildings and other standards, in the process of building and designing our own properties. We take the construction of a natural and ecological office environment as the starting point for relying on advanced technology. We do our best to adopt advanced and mature new materials, new technologies, new equipment and new processes for making bold attempts and active explorations in environmental protection, land saving, energy saving and utilization of renewable resources.

- Every winter season, with opening of the laboratory exhaust system, the external cold air is used to reduce the temperature of high-power equipment as to avoid the use of air conditioning;

- Outside the new office building in the Suzhou base, we install the external louver shading facilities made of metal materials with high heat dissipation performance to effectively block direct sunlight and diffuse radiation. Then it controls heat entering the room to improve the indoor thermal environment. It also reduces building air conditioning energy consumption and electricity for artificial lighting;

- In view of the large demand for lighting at many facilities and high power in large inspection areas, the lighting adopts L-shaped, F-shaped and Z-shaped designs which are closely installed and controlled around the equipment to improve the lighting efficiency;

- While taking into account security, the Group's data center is entrusted to an external data service agency to reduce the energy consumption of the self-built data center with its efficient energy management capabilities.

2. Water Resource Management

We are not a water-intensive company compared to other industries. Our water usage is mainly concentrated in laboratories as well as drinking water and sanitation. While our operations are in areas that are not affected by drought and water scarcity, we monitor water usage and work to improve water efficiency. We minimize water usage where practicable, we also encourage reuse of water use and promote employee water conservation awareness through advertisement and posters. In the future, if we operate in regions or countries where water is scarce, difficult to provide, or where water conservation is critical, we will closely monitor water usage and strive to minimize water consumption and impact.

Our water consumption in 2021 was 397,063 tonnes which was an increase from the previous year. The reason for the increase in water consumption was the situation of the COVID-19 in 2021 had eased compared with the previous year. The office form had gradually returned from home office to corporate office resulting in an increase in water consumption. On the other hand, due to the number of laboratories had increased, the water consumption had also increased.

3. Material Management

The materials we consume mainly come from the paper used to issue reports for our customers. We have started to implement a paper-free LIMS system. Records and certificate issuance are performed in paperless operation. Customers receive electronic versions of testing, inspection, certification and other documents to reduce paper consumption. While our business has grown, we have achieved a reduction in reporting paper consumption for three consecutive years. In 2021, our reporting paper consumption was 8.6% lower than the previous reporting year. At the same time, the Group has carried out the deployment of the electronic labor contract system. The completion of the system can effectively optimize the process of signing labor contracts and reduce the paper printing which is more efficient and environmental friendly.