华恒生物(688639):安徽华恒生物科技股份有限公司 2025年度环境、社会和公司治理报告（英文版）
原标题:华恒生物:安徽华恒生物科技股份有限公司 2025年度环境、社会和公司治理报告（英文版） and Goand Govvernancernance (ESG) Re (ESG) Report eport EnEnvirvironmenonmental, Social tal, Social and Goand Govvernancernance (ESG) Re (ESG) Report eport Strengthen Standardized Governance 19 Implement Climate Action 29 Ensure Product Safety 55 Gather Enterprising Talents 75 Enhance Compliance Code 22 Optimize Resource Recycling 34 Prioritize Sustainable Products 63 Foster Collaborative Success with Partners 87 Adhere to Business Ethics 25 Protect Ecological Balance 41 Promote Research and Innovation 65 Contribute to Social Welfare 95 About this Report Commitments and Statements Report Introduction This report is the third publicly released Environmental, Social and Governance (ESG) Report of Anhui Huaheng AHB undertakes to supervise the contents of this report and ensure that there are no false records or misleading Biotechnology Co., Ltd. (Stock Code: 688639.SH) (hereinafter referred to as "AHB", "the Company", or "we"). This statements. The Board has reviewed and approved this report and guaranteed the authenticity, accuracy and report aims to disclose our strategic vision, initiatives, and performance in environmental, social and governance completeness of the contents of this report. areas for 2025 to our stakeholders. Obtain This Report Reporting Scope Stakeholders can view and download this report on the official website of AHB (www.huahengbio.com). This This report covers Anhui Huaheng Biotechnology Co., Ltd. and its subsidiaries, and the scope of the report is report is available in both Chinese and English for readers to refer to. In case of any ambiguity or inconsistency consistent with that of our Annual Report. The time range is from January 1, 2025 to December 31, 2025, and the due to language, the Chinese version shall prevail. release cycle is once a year, which is consistent with the fiscal year.Reporting Standards Contact Information This report is prepared in accordance with the "Guidelines No.14 of Shanghai Stock Exchange (SSE) for Self-Reg- Address: No.197 Chang'an Road, High-tech District, Hefei City, Anhui Provinceulation of Listed Companies—Sustainability Report (Trial)" (hereinafter referred to as the "Guidelines No.14"), and Website: www.huahengbio.com refers to the "Guide No.13 for Self-Regulatory Supervision on Listed Companies of the SSE STAR Market— Com- About this Report Commitments and Statements Report Introduction This report is the third publicly released Environmental, Social and Governance (ESG) Report of Anhui Huaheng AHB undertakes to supervise the contents of this report and ensure that there are no false records or misleading Biotechnology Co., Ltd. (Stock Code: 688639.SH) (hereinafter referred to as "AHB", "the Company", or "we"). This statements. The Board has reviewed and approved this report and guaranteed the authenticity, accuracy and report aims to disclose our strategic vision, initiatives, and performance in environmental, social and governance completeness of the contents of this report. areas for 2025 to our stakeholders. Obtain This Report Reporting Scope Stakeholders can view and download this report on the official website of AHB (www.huahengbio.com). This This report covers Anhui Huaheng Biotechnology Co., Ltd. and its subsidiaries, and the scope of the report is report is available in both Chinese and English for readers to refer to. In case of any ambiguity or inconsistency consistent with that of our Annual Report. The time range is from January 1, 2025 to December 31, 2025, and the due to language, the Chinese version shall prevail. release cycle is once a year, which is consistent with the fiscal year.Reporting Standards Contact Information This report is prepared in accordance with the "Guidelines No.14 of Shanghai Stock Exchange (SSE) for Self-Reg- Address: No.197 Chang'an Road, High-tech District, Hefei City, Anhui Provinceulation of Listed Companies—Sustainability Report (Trial)" (hereinafter referred to as the "Guidelines No.14"), and Website: www.huahengbio.com refers to the "Guide No.13 for Self-Regulatory Supervision on Listed Companies of the SSE STAR Market— Com- AHB has established a sound three-tier ESG governance structure, comprising the Board of Directors, the Strategy and ESG Committee, and the ESG Working Group, to ensure that the concept of sustainable development runs through all corporate AHB regards ESG management as a core strategy and deeply operations. Through a clear division of responsibilities, the roles and functions of the Board of Directors and its subordinate integrates the concept of sustainable development into all Strategy and ESG Committee are strengthened in researching and formulating our ESG strategy, identifying material topics, aspects of AHB's operations. By establishing a sound ESG gover-managing ESG risks and opportunities, driving ESG performance management, and enhancing capital market rating perfor- nance structure, formulating a clear sustainable development mance. strategy, and actively communicating and collaborating with all stakeholders, AHB continuously optimizes the management and analysis of material topics and promotes the systematization and ESG Governance Structure ESG-related Functions standardization of ESG practices. The Board of Directors of AHB actively integrates ESG into our supervision and management, including participating in decision-making on major ESG-related matters, overseeing the direction of the ESG strategy, and managing ESG-related risks and opportunities. The Board of Directors will continue to Under the leadership of the Board of Directors, the Strategy and ESG Committee is responsible improve our corporate governance structure, refine our internal for conducting in-depth research and formulating our ESG strategic plans, identifying material overseeing the implementation of ESG-related policies to ensure the effective execution of The Board of Directors requires the management to implement strategies.environmental management policies to reduce the ecological footprint, improve resource utilization efficiency, and lower pollutant emissions, thereby protecting the health of the industrial vitality. Case AHB Received "Young Professionals SDG Innovation Accelerator" Certification from the UNGCESG Strategic Planning AHB values the expectations and needs of its stakeholders and is committed to establishing a systematic and regular commu- nication mechanism. AHB maintains close ties with stakeholders including government and regulatory agencies, shareholders and investors, employees, customers, suppliers and partners. Through various channels, we extensively collect and carefully listen to the opinions of all parties. Meanwhile, we continuously optimize communication channels to gain an in-depth under- standing of the impact of our operations on stakeholders, address challenges posed by ESG risks, enhance trust among all parties, and collectively advance the achievement of sustainable development goals.Stakeholders Expectations and Demands Communication Channels and Mechanisms Stakeholders Expectations and Demands Communication Channels and Mechanisms Government and Anti-corruption Open consultation Intellectual property protection Strategic cooperationRegulatory Agencies Suppliers and Partners Protection of shareholders' equity Information disclosure announcementGood corporate governance Shareholder's meeting
Workers' congress Complaint and feedback mechanism Environmental protection Employee volunteer service Community Product quality and safety Customer visits and communication Customers Information security and privacy Industry communication and Talent cultivationAssessment of Double Materiality Topics 2024 Version 2025 Updated Customer Service, Product Quality and Safety, Safety and Quality of Products and Services We use a double materiality topic assessment method in ESG management practice to scientifically and systematically identify Responsible Marketing Assessment of Double Materiality Topics 2024 Version 2025 Updated Customer Service, Product Quality and Safety, Safety and Quality of Products and Services We use a double materiality topic assessment method in ESG management practice to scientifically and systematically identify Responsible Marketing (i.e., the impact on environment and society) and financial materiality (i.e., the impact on AHB's financial performance). Anti-Bribery and Anti-Corruption, Business Ethics and Anti-Corruption Anti-Unfair Competition The 2025 material topics for AHB were identified through the following processes:Waste Management Waste Disposal, Pollutant Emission Clean Technology Opportunities, Corporate Deleted Topics By comprehensively referring to international standards and disclosure frameworks (GRI, SASB, SDGs), Governance, Investor Rights Protection
Procedures goals and operations, we have formulated risk management procedures.Investor Relations Management AHB attaches great importance to investor relations management. Upholding the principles of "Compliance and Transparency, Risk Identification Risk Assessment Risk Response and ControlEquality and Integrity, and Efficient Interaction", AHB has established management systems including the Investor Relations We shall have insights and analysis of An assessment is conducted to The risk owner is designated to Management Policy and the Information Disclosure Management Policy, and strictly complies with regulatory requirements to risks related to macro external determine the level of identified risks. formulate a work plan and take environment, segment, industry, effective measures to respond to the standardize the entire process of investor communication and information disclosure. We always adhere to fair treatment of all technology, law and other fields, and risk in a timely manner to reduce the investors, and in particular create opportunities for minority investors to participate in activities. At the same time, we build a Risk Monitoring and Reporting identify potential risks that may affect adverse impact. diversified online and offline communication platform, relying on various forms such as the SSE e-interactive platform, investor our medium- and long-term Potential compliance risks are relations email and hotline, performance presentations, and investor research visits to unblock communication channels with development according to the identified in a timely manner through expectations or needs of stakeholders. monitoring and early warning, and investors. We timely and accurately disseminate information on our operations, governance and sustainable development, Integrity Construction Integrity Practice and Risk Prevention Training Case-Based Compliance Lectures by External Experts Complying with the requirements of laws and regulations including the Company Law of the People's Republic of China and the Reporting Channels Anti-Unfair Competition Law of the People's Republic of China, AHB has formulated and continuously improved internal AHB issued and implemented the Complaint and Reporting Management Specifications, establishing reporting channels for systems such as the Code of Business Conduct for Employees and the Integrity and Compliance Policy, regulating professional misconduct including commercial bribery and corruption, embezzlement and fraud, conflicts of interest and self-dealing, and conduct, clarifying compliance standards, and covering all employees and external partners. Meanwhile, a robust responsibility violations of business ethics, to effectively protect the legitimate rights and interests of employees, suppliers, customers and mechanism for integrity building has been established. The Audit Head and the Audit Department are responsible for supervis- other stakeholders. ing and managing integrity work, including following up on major integrity projects, managing integrity documents and information, guiding various departments in conducting integrity risk assessment and prevention, promoting the latest integri- Email: shenji@ehuaheng.com Complaint and Reporting Hotline: 0551-65388639 ty regulations and practices, and handling and investigating integrity complaints and reports. Integrity officers implement and Mailing Address: Legal and Audit Department, No. 197 Chang'an Road, Baiyan Science Park, High-tech District, Hefei City promote integrity policies, raise anti-corruption awareness among employees in their respective departments, conduct integ- rity risk assessment and prevention related to business processes, consolidate primary responsibilities at all levels. Protection for Reporters: AHB maintains strict confidentiality of the identities of reporters and witnesses, as well as the content of reports, throughout the process. Reporting materials are managed as top-secret documents with restricted access; disclosure of relevant information to the reported party or unauthorized personnel is strictly prohibited. Meanwhile, retaliation Integrity Construction Initiatives in any form is expressly forbidden. Violators will be seriously disciplined for gross misconduct, and those suspected of criminal offenses will be referred to judicial authorities in accordance with the law.The Audit Committee regularly reviews the implementation of internal systems and norms and provides policy Regular Reviews by guidance. the Audit Committee Integrity Construction Integrity Practice and Risk Prevention Training Case-Based Compliance Lectures by External Experts Complying with the requirements of laws and regulations including the Company Law of the People's Republic of China and the Reporting Channels Anti-Unfair Competition Law of the People's Republic of China, AHB has formulated and continuously improved internal AHB issued and implemented the Complaint and Reporting Management Specifications, establishing reporting channels for systems such as the Code of Business Conduct for Employees and the Integrity and Compliance Policy, regulating professional misconduct including commercial bribery and corruption, embezzlement and fraud, conflicts of interest and self-dealing, and conduct, clarifying compliance standards, and covering all employees and external partners. Meanwhile, a robust responsibility violations of business ethics, to effectively protect the legitimate rights and interests of employees, suppliers, customers and mechanism for integrity building has been established. The Audit Head and the Audit Department are responsible for supervis- other stakeholders. ing and managing integrity work, including following up on major integrity projects, managing integrity documents and information, guiding various departments in conducting integrity risk assessment and prevention, promoting the latest integri- Email: shenji@ehuaheng.com Complaint and Reporting Hotline: 0551-65388639 ty regulations and practices, and handling and investigating integrity complaints and reports. Integrity officers implement and Mailing Address: Legal and Audit Department, No. 197 Chang'an Road, Baiyan Science Park, High-tech District, Hefei City promote integrity policies, raise anti-corruption awareness among employees in their respective departments, conduct integ- rity risk assessment and prevention related to business processes, consolidate primary responsibilities at all levels. Protection for Reporters: AHB maintains strict confidentiality of the identities of reporters and witnesses, as well as the content of reports, throughout the process. Reporting materials are managed as top-secret documents with restricted access; disclosure of relevant information to the reported party or unauthorized personnel is strictly prohibited. Meanwhile, retaliation Integrity Construction Initiatives in any form is expressly forbidden. Violators will be seriously disciplined for gross misconduct, and those suspected of criminal offenses will be referred to judicial authorities in accordance with the law.The Audit Committee regularly reviews the implementation of internal systems and norms and provides policy Regular Reviews by guidance. the Audit Committee Timely rate of Business ethics and Corruption-related reported complaints anti-corruption reported incidents litigation casesAHB provides all employees with the Code of Business Conduct for Employees and the Employee Integrity Commit- Employee ment Letter, requiring all employees to familiarize themselves with and study relevant content. The Human Commitment Resources Center organizes all employees to sign the Employee Integrity Commitment Letter, achieving a 100% 100 % 0 cases 0 cases and Training signing rate. Anti-Unfair Competition Led by the Legal and Audit Department, AHB conducts integrity risk assessments for high-risk positions including Anti-Corruption AHB always abides by the requirements of laws and regulations including the Anti-Unfair Competition Law of the People's procurement, sales, production, R&D, finance, engineering, human resources, and audit. AHB grades relevant risks Risk Position and implements corresponding control measures. Republic of China, continuously optimizes internal management documents such as the Code of Business Conduct for Employ- Assessment ees, and consolidates the compliance foundation for anti-unfair competition work. AHB explicitly prohibits all forms of unfair competition, including false advertising, monopolistic practices, commercial fraud, and infringement of trade secrets. Meanwhile, AHB strictly complies with integrity codes and specific norms formulated by the countries/regions where it operates, industry AHB launches anti-corruption poster campaigns during major festivals. Integrity promotional boards and public notice boards are set up at base construction sites to comprehensively enhance employees' anti-corruption aware- Anti-Corruption regulatory authorities and relevant organizations, ensuring full-process compliance of business activities. ness. AHB plans to expand the scope of integrity promotion, establish an accountability mechanism for major Promotion We require all employees to adhere to high standards of integrity and conduct, treat others with sincerity and act in good faith, liability accidents within AHB, and form an effective deterrence.and refrain from any unethical practices that violate the bottom line of business ethics.In addition, we actively conduct training on anti-unfair competition, continuously strengthen all employees' compliance aware- Type Response Measures Implement Climate Action Description Impact Horizon Market ?Consumer preferences and ?The market has higher Medium-term ?Adhere to our sustainable needs are constantly requirements for Long-term development concept, changing. products, and we may optimize the level of Response to Climate Change face more competitive production technology, in pressure. order to provide better The ESG Working Group of AHB undertakes the core responsibility of identifying climate-related risks. By submitting relevant quality products to meet the needs of the market and topics to the Board of Directors, it effectively ensures that the Board of Directors and the Management Team supervise the consumers. potential impacts and opportunities of climate risks. AHB has systematically assessed climate-related risks and opportunities Risk/Opportunity Potential Financial Impact Time Type Response Measures Implement Climate Action Description Impact Horizon Market ?Consumer preferences and ?The market has higher Medium-term ?Adhere to our sustainable needs are constantly requirements for Long-term development concept, changing. products, and we may optimize the level of Response to Climate Change face more competitive production technology, in pressure. order to provide better The ESG Working Group of AHB undertakes the core responsibility of identifying climate-related risks. By submitting relevant quality products to meet the needs of the market and topics to the Board of Directors, it effectively ensures that the Board of Directors and the Management Team supervise the consumers. potential impacts and opportunities of climate risks. AHB has systematically assessed climate-related risks and opportunities and formulated targeted response strategies. We actively collaborate with all stakeholders to jointly address climate challenges Technology ?The update and iteration of ?More resources are Long-term ?Optimize the technical and fulfill sustainable development commitments through initiatives such as researching and promoting eco-friendly products emerging technologies may needed for the low-car- update of production bases and advocating resource recycling. result in investing more costs bon transition (such as and expand the application in research and development the use of low-carbon of our technical solutions, Climate Change Risks and Opportunities and training professionals. energy and technology, replacing energy-and-pol- and the purchase of lution-intensive petrochem- low-carbon equipment). ical processes with green Risk/Opportunity Potential Financial Impact Time and clean biological Type Response Measures 2 Description Impact Horizon manufacturing techniques. Physical Risks Reputation ?Failure by us to fulfill social ?Reduced revenue due to ?Adhere to our sustainable Short-term Acute ?Frequent occurrence of ?Business and supply ?Develop special inspection Short-term responsibilities and take reduced demand for development concept, Medium-term extreme weather events (such chain disruptions can system and emergency plan appropriate measures to goods/services. conduct social responsibility as hurricanes, floods, etc.) lead to lower earnings. for natural disasters to deal manage the potential training within AHB and may affect the construction with unforeseen weather impacts of climate change take appropriate measures and operation of our projects conditions and protect may affect the evaluation of to manage the impact of to some extent. corporate property from the us by various stakeholders. climate change in a timely impact of climate change. manner. ?The continued rise in global ?The cost of water ?Upgrade water-saving and Chronic Long-term Opportunities and regional average resource compliance is cooling facilities, and select temperatures and long-term rising, agricultural raw strains with high temperature Energy ?In the medium to long term, ?Reduce operating costs ?Take measures to optimize Medium-term changes in precipitation material prices are resistance and low water Sources improving energy efficiency and achieve cost equipment and processes, Long-term patterns result in increased experiencing structural consumption to reduce can lead to direct cost reduction and efficiency reduce energy waste, and cooling energy consumption increases, and there may production sensitivity to savings for operations and improvement. promote employee in our fermentation processes, be impairment risks due climate conditions.contribute to limiting global participation in energy mounting pressure on to existing assets failing carbon emissions. conservation actions; industrial water use, and to adapt to climate Promote the use of green reduced supply stability of change. electricity. agricultural raw materials. Transformation Risks Products ?Innovation and development ?Increase revenue by ?Promote the innovation and Medium-term and Services of low-carbon products and meeting customer upgrading of "synthetic Long-term ?Changes in domestic and ?The adoption of new ?Implement energy saving Policies and Medium-term services can improve market demand for low emission biology and animal foreign climate change technologies to adjust measures and use energy Regulations Long-term competitiveness, such as products and services. nutrition"; Accelerate the policies may result in daily operations may saving equipment to reduce customers' preference for low-carbon transition and additional costs for us to result in increased carbon emissions in daily more environmentally actively participate in ensure compliance. operating costs and operations and adapt to friendly service providers or low-carbon construction; resources required. higher environmental products, and investors' Reduce packaging materials requirements. tendency to concentrate on and use biodegradable investing in green enterprise. materials. Case Case AHB Launched Product Carbon Footprint Reduction Training AHB Won the 3rd "Guoxin Cup · ESG Carbon Neutrality Golden Bull Award" Case Case AHB Launched Product Carbon Footprint Reduction Training AHB Won the 3rd "Guoxin Cup · ESG Carbon Neutrality Golden Bull Award" Optimize Resource Recycling Our independently developed anaerobic fermentation technology has successfully achieved industrialization breakthroughs, subverting the dependence on traditional petrochemical routes. We have innovatively built a microbial cell factory using renewable glucose as raw material, and through the large-scale production process of anaerobic fermentation, we have achieved dual reduction of carbon footprint at the raw material source and in the production process, setting a green transfor- Energy Management mation benchmark for the biomanufacturing industry. AHB actively adopts multi-dimensional carbon emission reduction measures. By continuously improving production processes AHB has established a sound governance system for energy management. We have set up a special energy management team (such as optimizing separation and concentration processes, applying new boiler combustion technology) and comprehen- with a clear centralized management department (Production Department). The senior management (General Manager) leads sively upgrading production equipment (such as introducing magnetic suspension compressors, electric forklifts and national the energy management work in an all-round way, approves and issues the energy policy, objectives and management plans, first-class energy efficiency equipment), we have significantly reduced carbon emission levels. In terms of energy structure and regularly hosts management reviews to ensure the effectiveness of the energy management system. We have established optimization, we vigorously promote the green transformation of energy, through the construction of rooftop photovoltaic an institutionalized information communication and reporting process. The energy management team is required to report the power generation projects, the implementation of biogas and waste heat recovery and utilization, and the development of system operation and energy performance to the top manager in accordance with regulations, and through fixed mechanisms green power transactions, etc., to greatly increase the proportion of clean energy use.such as monthly assessment, internal audit and annual management review, ensure that the governance agency can obtain energy management information in a timely and accurate manner.Case Biogas-to-steam Project at Changfeng Base Annual Energy Management Performance Evaluation Report and Compliance Evaluation Form.In 2025, AHB engaged external organizations to conduct a systematic organizational carbon inventory in compliance with ISO 14064-1:2018, covering both direct greenhouse gas (GHG) emissions and energy-related indirect greenhouse gas emissions. 2025 Energy Management Information Acquisition Process: Scope 1 GHG emissions Scope 2 GHG emissions Each department monitors daily energy targets and indicators, implementation of management plans, energy performance parameters, and energy consumption of major energy uses in Data Collection 01 accordance with responsibilities, and summarizes and reports data to the Production Depart-293,122.36 tCO?e 205,141.94 tCO?e ment monthly. Total GHG emissions GHG emission intensity and Analysis 02 the completion of each department, and feeds back the evaluation results to all departments.498,264.30 tCO?e 174.11 tCO?e / million RMB revenue Report 03 performance improvement of the energy management system to the General Manager.Calculation explanation: ?The accounting of greenhouse gas emissions is based on the emission factor method. The emission factors selected for Scope 1 are derived from the "2006 IPCC Guidelines for National Greenhouse Gas Inventories", while the lower heating values are obtained from the "China Energy The General Manager organizes at least one management review every year. The Production Department prepares the Management Review Plan, and relevant units submit written input Statistical Yearbook (2022)", actual measurements by enterprises, or data provided by suppliers.Review 04 of previous measures, etc.). The management review meeting comprehensively evaluates the 4 of the "2023 Power Sector Carbon Dioxide Emission Factors" published by the Ministry of Ecology and Environment, which presents the energy management system and issues the Management Review Report after review by the national average carbon dioxide emission factors for electricity generation (excluding non-fossil energy electricity generated through management representative and approval by the General Manager.ISO 50001 Energy Management Deploy high-yield fermentation strains in production to boost fermentation acid conversion rate and unit yield, saving System Certification of AHB energy and raw materials. Prioritize procurement of motors, water pumps, transformers, fans and air compressors that meet National Class I energy efficiency standard.operating costs.  |