Luye Pharma (02186) has published its 10th Environmental, Social and Governance (ESG) Report, covering operations from 1 January – 31 December 2025. Key take-aways are as follows:

Strategic ESG Governance

• The Board retains ultimate oversight, supported by a dedicated ESG Committee and an ESG Working Group. The framework now mandates at least one formal committee meeting a year and annual self-assessments.

• Three material themes were highlighted for 2025: environmental stewardship (chemicals, emissions, water), labour responsibility (safety, remuneration, training) and operational integrity (R&D, quality, compliance).

Environmental Performance

• Total Scope 1 & 2 greenhouse-gas emissions reached 74,412.14 tons CO₂-equivalent, a 9.94 % increase versus 2024, driven mainly by a 60.46 % rise in purchased steam. Emissions intensity inched up to 0.12 t/CO₂e per RMB 10,000 of revenue.

• Direct energy use declined 11.96 % to 35,897.36 MWh, while indirect energy consumption climbed 20.91 % to 143,377.81 MWh, reflecting expanded manufacturing activity.

• Water consumption edged down 2.53 % to 1.36 million m³. Re-use initiatives at Beijing WPU and Shandong sites saved roughly 13,169 m³ of tap water.

• Hazardous waste generated at production bases rose to 1,989.02 tons (intensity: 0.003 t/RMB 10,000). Non-hazardous waste totalled 187.67 tons, with an 84.25 % recycling rate.

• All Chinese production bases, plus key European facilities, hold ISO 14001 and ISO 45001 certifications; Beijing WPU and Nanjing bases converted to low-GWP refrigerants (R-404A, R-410A, R-407C).

Social Metrics

• Headcount stood at 5,221 (2,464 male; 2,757 female). Mainland China accounts for 93 % of staff.

• Overall staff turnover in China was 10 %; female turnover was below male at 8 % versus 11 %.

• Training reached 62.6 % of men and 60.7 % of women, averaging 56.32 and 57.76 hours respectively.

• No work-related fatalities occurred; lost workdays due to injury totalled 293.5.

• Zero incidents of child or forced labour were identified; full social insurance and housing fund contributions were maintained.

Operational Integrity & Product Responsibility

• R&D pipeline comprises 26 China and 12 overseas candidates; one product gained new market approval in 2025.

• No product recalls were enacted; 52 quality or service complaints were recorded and resolved.

• The company updated two core compliance policies and reported no corruption cases.

• Supplier pool reached 14,502 entities (14,011 domestic; 491 overseas); sustainability criteria now embedded in onboarding and audit processes.

Forward ESG Commitments

• Targets include 100 % compliant hazardous-waste disposal, water-saving projects, and energy-efficiency gains aligned with China’s “dual-carbon” goals.

• Climate scenario analysis, quantitative Scope 3 accounting and an internal carbon-pricing framework are under evaluation for future disclosure.

The 2025 ESG Report was approved by the Board on 30 March 2026 and is the primary source for all data cited above.