2022 Environmental, Social, and Governance Report

Response to Climate Change

    M&G Stationery proactively addresses climate change risks, reduces GHG emissions, and conserves energy. The Company's production bases have adopted various energy-saving measures, improved production equipment and processes, increased photovoltaic power generation for optimized energy use, and actively promoted green office initiatives, showing commitment to the continuous reduction of its carbon footprint in production operations.

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     1._{In 2021, the energy consumption data (electricity, gasoline, and diesel) and GHG emissions data of M&G Stationery were limited to the Shanghai production and logistics base, while in 2022, the data range has expanded to include the Shanghai production and logistics base, South China production and logistics base, the North China logistics base and the Shanghai headquarters office building.}

    2. _{In 2021, the Scope 1 GHG emissions were calculated for gasoline and diesel, while in 2022, the scope has expanded to include gasoline, diesel, refrigerants, and methane (septic tank).}

    3. _{The emission factor from electricity generation in Shanghai was adjusted from 7.88 tCO₂e/10,000 kWh to 4.20 tCO₂e/10,000 kWh in 2022. Electricity consumption is one of the main sources of GHG emissions for M&G Stationery, so Scope 2 GHG emissions in 2022 decreased significantly compared to 2021.}

    l Green Office Operation

M&G Stationery promotes the concept of green office operation to all employees to enhance their awareness of energy conservation and environmental protection while cultivating green and low-carbon behavior habits. The Company encourages employees to turn off lights and power when leaving and assigns dedicated personnel to inspect the areas to avoid water and electricity consumption in unoccupied areas. During winter, the Company provides hot water bags to employees and operates fresh air machines only during office hours to ensure a comfortable and healthy office environment while minimizing energy waste. In 2022, the Company launched the "M&G Low-Carbon Office Initiative" which includes themed lectures, WeCom promotional articles and images, and reminder signs posted in office areas to encourage employees to practice low-carbon work methods.

Green office signage in the office area: Energy saving (left) and double-sided printing (right)