The management’s remuneration is linked with the Group’s environmental performance to accelerate the realisation of energy conservation, emission reduction, and carbon emission goals. ESG indicators have been added to the individual performance assessment of all Social Responsibility Working Group members since 1 January 2022, with a weight of 10% in the total performance system. ESG indicators include:

Joincare strictly implements its internal audit procedures to ensure that EHS management is in place. We conduct EHS internal audit on our subsidiaries not less than twice a year, organize and integrate the overall audit results in a timely manner after conclusion of the audit, require and supervise our subsidiaries to rectify non-compliances, continue to correct non-compliances with regard to internal audit and promote the implementation of the rectification work as required. Meanwhile, we conduct annual review and third-party supervision and audit on ISO 14001, ISO 45001 and ISO 50001 compliance every year, conduct energy audit, waste audit, and water use assessment during the audit and supervision process, continue to explore the possibility of energy conservation and consumption reduction, water resources conservation and resource consumption reduction, and strengthen various management requirements. In 2023, we conducted the review of the energy use within the scope of our system, comprehensively identified the types of energy use based on the assessment on the energy use and energy consumption, further optimized the management of facilities and equipment that have significant impacts on energy use and energy consumption, identified and prioritized the improvement opportunities of energy use performance, and formulated targeted improvement measures.

At the same time, we regularly provide energy efficiency training, waste reduction training and water efficiency training to employees to optimize their behaviors on energy use and water consumption, enhance water consumption efficiency, and improve the performance of energy management and waste management. In 2023, Xinxiang Haibin conducted energy efficiency improvement trainings for employees of the equipment and power department, and improved energy management level through publicity of energy management policies and procedures and enhancement of energy management system; Jiaozuo Joincare provided workshop management personnel with trainings on the management of solid waste dumping, so as to strengthen their waste management ability; Haibin Pharma conducted trainings on standardized hazardous waste management for employees of all relevant departments, covering the identification, classification and emergency disposal on leakage of hazardous waste, so as to improve the management of hazardous waste.

The Group's greenhouse gas (GHG) emissions mainly come from fuel combustion, electricity and purchased steam consumed in production and operation. In 2022, the Proposal on Adding Carbon Emission Goals to Joincare’s Environmental Management was deliberated and approved at the meeting of the Board of Directors. According to the proposal, the carbon emission target of Joincare from 2022 to 2055 is to achieve carbon peaking by 2028 and carbon neutrality by 2055 (Scope 1 and Scope 2 ).