(I2023

SUSTAINABILITY REPORTCONTENTS
1

2

3

4

ABOUT
THIS REPORT2023
SUSTAINABILITYHIGHLIGHTSMESSAGE FROMOUR CHAIRMAN

ABOUT
HUTCHMED

3

7

9

5

6

7

8

SUSTAINABILITY
GOVERNANCE

SUSTAINABILITYSTRATEGY

BUSINESS ETHICS
AND ANTICORRUPTION30RESPONSIBLE
COMMERCIALIZATION

15

21

9

10

11

12

RESEARCH &DEVELOPMENTACCESS TOHEALTHCARE

CLIMATEACTIONHUMAN CAPITALMANAGEMENT

43

2

4

51

35

55

64

13

14

15

16

PERFORMANCEDATA SUMMARY(ENVIRONMENTAL& SOCIAL)
74

NON-CONSOLIDATEDJOINT VENTUREREPORTINGINDEX

LIST OFABBREVIATIONS

83

85

101

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSABOUT1THIS REPORTOVERVIEW
The 2023 Sustainability Report (“this Report”) of HUTCHMED (China)
Limited (“HUTCHMED” or the “Company”) provides a comprehensive
insight into the Company’s sustainability performance during the
fiscal year 2023. This Report delves into HUTCHMED’s sustainability
management strategies, addressing material aspects relevant to theCompany’s business and stakeholders within the two key segments:(1) Oncology/Immunology and (2) Other Ventures.
This Report should be read in conjunction with the 2023 Annual Report(“Annual Report ”) of the Company, its corporate governance-related
policies, sustainability-related policies, and other contents contained on
our website .

REPORTING FRAMEWORKThis Report has been prepared in accordance with the provisions of
the Environmental, Social and Governance Reporting Guide (Main
Board Listing Rules Appendix C2) (“ESG Guide”) issued by the HKEX.
To give a more comprehensive disclosure of the Group’s sustainability
performance, this Report was also prepared with reference to the Nasdaq
ESG Reporting Guide, the London Stock Exchange (“LSE”) Group’s
ESG Reporting Guidance, the Global Reporting Initiative Sustainability
Reporting Standards (“GRI Standards”), the International Financial
Reporting Standards (“IFRS”) Sustainability Disclosure Standards(IFRS S1 and IFRS S2), the Sustainability Accounting Standard Board(“SASB”) Biotechnology & Pharmaceuticals Sustainability AccountingStandard, as well as the United Nations Sustainable Development Goals(“UN SDGs”). Our climate actions are also disclosed in alignment withthe recommendations of the Task Force on Climate-related Financial
Disclosures (“TCFD”).
1
2
3

REPORTING BOUNDARY AND
PREPARATION2
This Report covers the Oncology/Immunology segment of HUTCHMED,
including our commercial and research and development (“R&D”)
operations in Shanghai and the U.S.; the Hong Kong Head Office; and the
Other Ventures segment, including our subsidiaries Hutchison Whampoa
Sinopharm Pharmaceuticals (Shanghai) Company Limited (“Hutchison
Sinopharm”), Hutchison Healthcare Limited (“HHL”), Hutchison Hain
Organic (Hong Kong) Limited (“HHO”), and HUTCHMED Science Nutrition
Limited (“HSN”)3, and the non-consolidated joint venture Shanghai
Hutchison Pharmaceuticals Limited (“SHPL”). The sustainability
performance of SHPL is separately included in Chapter 14 .
The content and data contained in this Report were collected
and consolidated by the sustainability working group formed byrepresentatives of various departments and business units of the Group.
Unless otherwise specified, this Report covers the period from January 1,
2023 to December 31, 2023.
All amounts are expressed in U.S. dollars unless otherwise stated.
This Report was endorsed by the Sustainability Committee and approvedby the Board of Directors in March 2024 and subsequently published in
April 2024 alongside the Annual Report .

FEEDBACK
We highly value your opinions on our sustainability performance andstrategies. Please send us your comments through:info@hutch-med.com .

HKEX mandatory disclosure requirement ("MDR") 14
MDR 15
HHO and HSN were divested from HUTCHMED on December 7, 2023. Data
of HHO and HSN reported in this Report included the period from January
1, 2023 to November 30, 2023.
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT

3

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

2023 SUSTAINABILITYHIGHLIGHTSHOLISTIC SUSTAINABILITYFRAMEWORK DEVELOPMENT
Identiﬁed ﬁve sustainability pillars for a holistic sustainability framework:
climate action, innovation, ethics and transparency, humancapital, and access to healthcare

GOOD PROGRESS ON
SUSTAINABILITY TARGETS4
Accelerated progress in achieving all 11 sustainability goals and targets
Achieved a 68% reduction in carbon emission intensity compared to 2020; 58% reduction
intensity compared to 2020; 2.4% reduction in business air travel intensity compared to 2019
Conducted an extensive analysis on business air travel data to initiate a travel budget

in energy

for each department in 2024

Sustainability performance continued to be incorporated into management’s performance-based
and remunerationcompensation

Maintained high standards on compliance and ethics

DIGITALISED DATA COLLECTION PROCESS
Adopted a digital data collection platform to streamline collecting, managing,
and reporting data, ensuring improved data reliability, comparability, and transparency

SCOPE 3 EMISSION DATASCREENING AND MEASUREMENT
Conducted screening and measurement of material Scope 3 emission categories, aligning with impending
regulatory changes for comprehensive emission accounting
Increased engagement with suppliers to implement sustainability initiatives collaboratively

Disclosed HUTCHMED’s material Scope 3 data for the ﬁrst time – completing our scope 1-3
emission inventory to better illustrate our carbon footprint and monitor our climate action

4

4

MDR 13 (iii)1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSCREATING POSITIVE SOCIAL IMPACT
Good progress was seen in 2023 to further reach our goal of bringing innovative medicines to patients around theworld.
FRUZAQLA™ (fruquintinib) Approved in the U.S.
Our partner Takeda received approval from the U.S. FDA for FRUZAQLA™ (fruquintinib), an oral targeted
therapy for adults with metastatic colorectal cancer regardless of biomarker status or prior therapies in morethan a decade.
All Medicines Marketed in China are Included in the NRDLELUNATE® (fruquintinib) and SULANDA® (surufatinib) continued to be included in the NRDL for a new two-year
term starting January 1, 2024, on the same terms as the previous two-year agreement; ORPATHYS® (savolitinib)
was ﬁrst included in the NRDL since March 1, 2023, broadening patient access to these medicines.
ELUNATE® (fruquintinib) Approved in Hong Kong
ELUNATE® (fruquintinib) is the ﬁrst medicine approved under the new “1+” mechanism by the HKSAR
Government, providing an important treatment option to patients in Hong Kong.
TAZVERIK® (tazemetostat) and ORPATHYS® (savolitinib) Approved in Macau
TAZVERIK® (tazemetostat) and ORPATHYS® (savolitinib) received approval in Macau in March 2023, following
ELUNATE® (fruquintinib)’s approval in 2022.
Since 2018, over 150,000 patients

have received our novel cancer medicines commercially.

SUSTAINABILITY RATINGS AND AWARDS

Steady improvements have been shown in major local and international sustainability ratings over the years, reﬂecting a wider recognition of
HUTCHMED’s eﬀorts in sustainability.

MAJOR RATINGS
Ratings

Rating Date

Current Rating/Scores

Previous Rating/Scores

MSCI ESG RatingSep 25, 2023

BBB

BB

S&P Global ESG Score

Aug 25, 2023

49/100(90th percentile)

25/100(61st percentile)

Sustainalytics

May 17, 2023

28.7
(Medium Risk)

37.8(High Risk)

ISS ESG Corporate Rating

Feb 01, 2024

C

C-

HSI/HKQAA Ratings

Sep 13, 2023

BBB+

BBB

Wind ESG Rating

Apr, 2023

A

BBB

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT

5

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSSUSTAINABILITY AWARDSGBA ESG Achievement Awards 2023

ESG Leading Enterprises 2023

– Metro Finance– Bloomberg Businessweek/Chinese Edition• GBA ESG Achievement Award• ESG Leading Enterprises• Outstanding Green Sustainable Award• Leading Social Initiatives• Outstanding Social Sustainable Award• Outstanding Corporate Governance Award“Recognized Sustainable Development Corporate” Certiﬁcate

Top 20 Chinese Pharmaceutical
Listed Companies in ESG
Competitiveness2023 Caring Company– The Hong Kong Council of Social Service– Healthcare Executive“I am pleased to endorse HUTCHMED for their remarkable commitment to sustainability
and global patient access. HUTCHMED’s innovative medicines are not only transformative
for patients worldwide but are also developed with a strong emphasis on environmentally
responsible practices. HUTCHMED’s holistic approach is both inspiring and impactful,
contributing signiﬁcantly to positive change in healthcare and environmental responsibility.”
Melissa Fung, Partner & Assessment Consultant, Deloitte Risk Advisory“HUTCHMED well deserved all awards under our GBA ESG Achievement Awards 2023. Despite
continuous internal and external challenges in recent years, HUTCHMED has been relentlessly
driving innovation and transformation, conducting more than 30 clinical trials worldwide. The
Company adheres to its long-term goal of bringing in-house discovered innovative medicines
to patients around the world and is committed to integrating sustainability into all businesslevels, creating long-term value for its investors and stakeholders.”
Alaric Chu, General Manager – Program & Channel Operations, Metro Finance61. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSMESSAGE FROMOUR CHAIRMAN“Sustainability is an ongoingcommitment requiring
collaboration and innovation.”

As we reflect on the past year, I am pleased to share with you the major
strides we have made on our sustainability journey at HUTCHMED. In theface of ongoing global challenges, our commitment to sustainability has
been unwavering, driving us to new heights and accomplishments.
In 2023, we continued our commitment to embedding sustainability
into all aspects of our operations, creating long-term value for ourinvestors and stakeholders. Building on the substantial initiatives of theprevious years and with reference to the latest sustainability standards,
we developed a holistic sustainability framework covering areas thatare central to our industry – climate action, innovation, ethics andtransparency, human capital, and access to healthcare. This framework
serves as a comprehensive guide to ensure that sustainability remains
a core element across every facet of our business. We also continue
to uphold high levels of compliance and ethical standards across ouroperations.

One of our notable achievements involved extending our emission
inventory to screen and measure our material Scope 3 categories. Thisinitiative not only aligns with the impending regulatory changes but also
underscores our steadfast dedication to sustainability along our entire
value chain. Our engagement with suppliers has deepened, enabling us
to put forward sustainability initiatives collaboratively and advance ourcollective positive impact.
We continued to work towards becoming a net-zero company by 2050,
with further advancements towards our near-term 2025 targets. In
2023 our total revenues grew 97% to US$838 million, which includes
recognition of US$280 million of the upfront partnership payment fromTakeda. I am pleased to report that by the end of 2023, we achieved
a 68% reduction in carbon emission intensity and a 58% reduction inenergy intensity from our operations compared to 2020. To better reflect
air travel emissions against the growth of the Company, we adjusted our

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT

7

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

air travel target to an intensity-based target starting from 2023. While
we saw a 2.4% decrease in air travel emission compared to 2019, we
will continue our efforts to explore all feasible ways to archive the 2025
target of 10% reduction, including allocating a travel budget to eachdepartment starting from 2024.
Simultaneously, we intensified efforts in enhancing our data collection
processes. This ongoing initiative assures high data quality, enabling
us to implement a robust system for constant monitoring, tracking,and management of key performance indicators (“KPIs”) related tosustainability. By investing in advanced data collection methodologies
like leveraging online platforms, we ensure a comprehensive andaccurate representation of our environmental, social and governance(“ESG”) performance. This commitment to transparency and accuracy
in reporting is a cornerstone of our sustainability practices, reinforcing
our dedication to providing stakeholders with reliable insights into
our ongoing initiatives and progress. As we continually refine ourdata collection processes, we aim to elevate the effectiveness of oursustainability measures, reinforcing our commitment to responsible andaccountable business practices.
Creating positive social impact is also central to our vision to build
a healthy community for all. In terms of healthcare accessibility,
2023 brought about major breakthroughs. Together with our partner
Takeda, we celebrated the approval of FRUZAQLA™ (fruquintinib) by
the U.S. Food and Drug Administration (“FDA”) for previously treatedmetastatic colorectal cancer (“CRC”). This approval marks a significant
advancement, offering a novel chemotherapy-free treatment option thathas the potential to improve survival outcomes without compromisingpatients’ quality of life. In 2023 alone, over 60,000 patients received ournovel cancer medicines commercially. Additionally, all our innovative
medicines marketed in China – ELUNATE® (fruquintinib), SULANDA®
(surufatinib) and ORPATHYS® (savolitinib) – are included in the China
National Reimbursement Drug List (“NRDL”). This inclusion underscores
our commitment to providing innovative medicines to more patients inneed by improving the accessibility and affordability of our medicines,
contributing to the sustainable development of the pharmaceuticalindustry.
Internally, in 2023, we welcomed the launch of our first Culture
Handbook, laying out our Group-wide mission, vision, values andculture. Discovering, developing, and bringing innovative medicines topatients worldwide remains the core of our mission. Our shared vision
is to be a leading innovative biopharmaceutical company to improve
lives globally, driven by medical need. The fundamental values foreveryone at HUTCHMED are being innovative, pragmatic, collaborativeand efficient. We also strive to create a workplace culture based on
respect that empowers our employees to achieve their full potential.
Our 2023 employee engagement survey “Your Voice 2023” received an
encouraging response rate of 96% from all our employees. The results

8

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

showed improvements in all the 23 dimensions and exceeding industry
benchmarks in 14 dimensions, such as action taking, belonging, culture,empowerment, engagement, feedback, growth, leadership, prospects,
purpose, role clarity, and team.
In 2023, we continued our journey to enhance diversity, equity andinclusion. Female representation at the Board stands at 22%, above
average amongst companies listed on the Stock Exchange of Hong
Kong Limited (“HKEX”). A Diversity, Equity and Inclusion Team wasestablished in 2023 to promote employee engagement and two-way
communication. We will continue to review and assess the appropriate
level of gender diversity and composition that aligns with the strategy of
the Company. The Board also places tremendous emphasis on diversity
across all levels of the Group. The total gender diversity of the workforce
is highly balanced, with female representing 53%. To support diversity
across all facets, beyond gender, including race and ethnicity, disability,
social mobility and age, we are enhancing diversity, equity and inclusion
efforts through employee networks, mentoring programs, equitablehiring practices, policies and awareness building events and training for
all employees to support inclusive behaviors.
Our sustainability efforts have not gone unnoticed, with improvements
in our ESG ratings across major rating providers. We were honoredwith prestigious awards such as the Bloomberg Businessweek “ESG
Leading Enterprises 2023” and the GBA ESG Achievement Awards 2023.
These accolades acknowledge our dedicated work in the realm ofsustainability.
As I conclude this letter, I extend our heartfelt gratitude to our employees,
value chain partners, and all supporters who have been instrumental
in our sustainability journey. As we move into 2024, our commitment
remains steadfast, and we recognize that sustainability is an ongoingcommitment requiring collaboration and innovation. We invite everyone
to join us in shaping a more sustainable future where businesses thrive,
communities prosper, and the planet flourishes.

Simon To
ChairmanMarch 2024

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSABOUTHUTCHMEDOUR MISSION, VISION, VALUES AND CULTUREMISSION

CORPORATE CULTURE

To discover, develop and bring innovative medicines topatients worldwide

Guided by the Group's core values, the Board, together withsenior management, play a leading role in deﬁning the purpose
and strategic direction of the Group, set the tone and shape
the corporate culture of the Company to ensure all businesses
across the Group are aligned with the same purpose. Alongside
the Groups robust corporate governance framework andeﬀective risk management and internal control systems, thedesired culture is developed and reﬂected consistently as in
the operating practices and policies of the Group, as well as
its relations with stakeholders, through active collaboration,eﬀective engagement and regular training at all levels.

VISION
To be a leading innovative biopharmaceutical company toimprove lives globally, driven by medical needTo learn more, please refer to the Corporate Governance Report within
our Annual Report .

CORPORATE STRATEGY

Innovative

The primary objective of the Company is to become a leader in the
discovery, development and commercialization of targeted therapies
and immunotherapies for the treatment of cancer and immunologicaldiseases.

VALUES
Eﬀicient

Pragmatic

Collaborative

The strategy of the Company is to leverage the highly specialized
expertise of the drug discovery division to develop and expand thedrug candidate portfolio of the Group for the global market, buildingon the ﬁrst-mover advantage in the development and launch of novel
cancer drugs in China and engaging partners for late-stage development
and commercialization outside of China. This strategy is aligned with
the Company’s culture of innovation and high engagement andempowerment of staﬀ with a strong focus on reward and recognition.
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT

9

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSABOUT OUR VALUESINNOVATIVEWith innovation at the core of everything we do, we discover and develop novel,
diﬀerentiated medicines to address unmet medical needs.
We are driven by science to provide eﬀective, safe, advanced new treatments atworld-class standards for patients in need around the world.

PRAGMATIC
While striving to develop the best outcomes for our patients, we maintain the highest
ethical and professional standards of truthfulness, integrity and accountability. We conduct
our business responsibly, in full compliance with all regulations.
We are committed to continue to grow our business in a sustainable and conscious manner,
managing everything we do rationally, with reason and sense. This will lead us to realize thefull potential of our products, brands and business.

COLLABORATIVE
Guided by our corporate strategy, we encourage cross-functional collaboration and communication
to foster a culture of trust and support, where each member of our team is empowered to takeownership of their work and support one another to achieve our collective goals.
To drive greater value to unmet medical needs, we leverage the rapid advances of the industry byforming broad and deep collaborations with mutual beneﬁts.

EFFICIENT
We are committed to our responsibilities and promises as we strive for greater eﬀectiveness andaccountability.
We make conscious decisions on how we use our resources as we grow a productive andtop-notch drug discovery, development and commercialization that shapes our sustainableorganization.

10

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSOUR BUSINESS MODEL AND MARKET
HUTCHMED is an innovative, commercial-stage, biopharmaceutical company. We are committed to the discovery, global development,
and commercialization of targeted therapies and immunotherapies for the treatment of cancer and immunological diseases.
HUTCHMED has two business segments:
The Oncology/Immunology segment has been driving the
reseach, development and production of our portfolio of innovative
targeted therapeutics and immunotherapy drug candidates since
the early 2000s. Since 2020, this segment has also been driving
the marketing and distribution of our highly innovative oncology
medicines, fruquintinib (branded as ELUNATE® in China and
FRUZAQLA™ in the U.S.), surufatinib (branded as SULANDA®
in China), savolitinib (branded as ORPATHYS® in China) andtazemetostat (branded as TAZVERIK® in China, the U.S. andJapan). This segment had over 1,800 staﬀ at year end.
FRUZAQLA™ was approved by the U.S. FDA in November 2023,
where it is marketed by our partner, Takeda. In China, ELUNATE®,
SULANDA® and ORPATHYS® (marketed by our partner AstraZeneca)
have all been approved and launched. ELUNATE® also received
marketing approval in the Hong Kong Special Administrative Region(“Hong Kong”) in January 2024. TAZVERIK® has been approved andlaunched in Hainan Boao Lecheng International Medical Tourism
Pilot Zone (“Hainan Pilot Zone”). Our success in discovery led tomany development collaborations with leading global and regional
pharmaceutical companies such as AstraZeneca, Eli Lilly, Ipsen,
Takeda, BeiGene, Innovent, Junshi and Inmagene.
Within Oncology/Immunology, our R&D operations employed about
900 scientists and staﬀ at year end, primarily in Shanghai, China andin Florham Park, New Jersey, USA. As of the end of 2023, including
the four newly launched products above, we have 13 oncology drugcandidates in clinical trials.

2023 BUSINESS HIGHLIGHTS
1) ONCOLOGY/IMMUNOLOGY MARKETED
PRODUCTS
We discover, develop, manufacture and market targeted
therapies and immunotherapies for the treatment of cancer andimmunological diseases through a fully integrated team.

Fruquintinib(ELUNATE® in China,
FRUZAQLA™ in the U.S.)®

ELUNATE®/FRUZAQLA™ is an oral medicine that works by very
selectively blocking tumor angiogenesis, which is the formation of
new blood vessels that supply oxygen and nutrients to tumor cells.
ELUNATE® is approved in China for the treatment of colorectal cancer
patients. Colorectal cancer is a type of solid tumor cancer that starts
in either the colon or rectum, and was the third most diagnosed
form of cancer in China in 2020, with an estimated 555,000 new
cases each year. In China, ELUNATE® is the leading treatment forlate-stage CRC with 47% of third-line treated patient share according
to an IQVIA tracking study in 2023. ELUNATE® was ﬁrst included in
the NRDL in January 2020 and, following negotiations with the China
National Healthcare Security Administration (“NHSA”), ELUNATE®
continues to be included in the NRDL for a new two-year term
starting in January 2024 at the same price as the 2023 NRDL price.
It is co-developed and co-marketed by HUTCHMED and Eli Lilly andCompany.

The Other Ventures segment is a proﬁtable platform that
manufactures, markets, and distributes prescription medicines andconsumer health products in China and other countries in Asia.
Consolidated subsidiaries in this segment in 2023 include Hutchison
Sinopharm, HHL, HHO, and HSN5. This segment also includes our
non-consolidated interest in SHPL.
The successful operation of both segments relies on the support of ourbusiness partners, including suppliers, vendors, agents, contractors,
joint venture partners and representatives. The quality, delivery andresponsiveness of our business partners is of paramount importance.
They are also our partners in promoting social responsibility and ethicalbusiness conduct throughout our operations.
5

HHO and HSN were divested from HUTCHMED on December 7, 2023. Data of HHO and HSN reported in this Report included the period from January 1, 2023
to November 30, 2023
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 11

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

Outside of China, fruquintinib is being marketed by our partner
Takeda who launched FRUZAQLA™ in the U.S. within 24 hours after
it was approved for colorectal cancer patients in November 2023,
with the ﬁrst prescription received a day after approval. According to
Takeda, uptake had been strong, with new patient starts exceeding
expectations. Additional regulatory applications are progressing
including in the European Union (“EU”) and Japan.
In January 2024, ELUNATE® was approved in Hong Kong. This is theﬁrst medicine approved under the new mechanism for registrationof new drugs (“1+” mechanism). CRC was the second most common
cancer in Hong Kong in 2021, with about 5,900 new patientsdiagnosed.

Surufatinib(SULANDA® in China)
SULANDA® is an oral medicine that works by both selectively
blocking tumor angiogenesis, like ELUNATE®, but also by promoting
the body’s immune response against tumor cells.
SULANDA® was launched in China in 2021 for the treatment of alladvanced neuroendocrine tumors (“NETs”), which are a type ofcancer of the nervous system or in glands that produce hormones,
for which there were an estimated 71,300 newly diagnosed patientsin 2020 in China, with potentially up to 300,000 patients livingwith the disease. According to the IQVIA tracking study report in
2023, SULANDA® maintained its position in the market with 21%
prescription share in NET treatment. SULANDA® was ﬁrst included in
the NRDL in January 2022 and, following negotiations with the China
NHSA, SULANDA® continues to be included in the NRDL for a new
two-year term starting in January 2024, at the same price as the 2023
NRDL price.
Surufatinib has been successfully recommended in 2023 “Chinese
medical association consensus for standardized diagnosis andtreatment of pancreatic cancer neuroendocrine neoplasms ” and fourother treatment guidelines for neuroendocrine tumors. As a result,doctors’ acceptance and patients’ access to SULANDA® continue toincrease.

6

7

8

12

Vuong HG, et al. Clinicopathological implications of MET exon 14 mutations
in non-small cell lung cancer – A systematic review and meta-analysis.
Lung Cancer 2018; 123: 76-82.
World Health Organization. International Agency for Research on Cancer.
Lung Fact Sheet. Available at https://gco.iarc.fr/today/data/factsheets/cancers/15-Lung-fact-sheet.pdf. Accessed June 2021.
World Health Organization. International Agency for Research on Cancer.
Globocan China Fact Sheet 2020. Available at http://gco.iarc.fr/today/data/factsheets/populations/160-china-fact-sheets.pdf. Accessed June 2021.

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Savolitinib(ORPATHYS® in China)

Orpathys®

ORPATHYS® is an oral medicine that works on certain types ofcancers that are driven by abnormalities in a particular biomolecularpathway called MET. ORPATHYS® blocks the MET pathway, thereby
inhibiting these types of tumors. As a result, patients that test
positive for MET abnormalities may beneﬁt from ORPATHYS®.
ORPATHYS® was the ﬁrst selective MET inhibitor medicine approvedin China. It was launched and marketed by our partner, AstraZeneca
for patients with certain MET-driven lung cancers. More than a thirdof the world’s lung cancer patients are in China.6,7,8
In 2021, 2022 and the ﬁrst two months of 2023, ORPATHYS® was soldas a self-pay drug. Following negotiations with the China NHSA in
January 2023, ORPATHYS® has been included in the updated NRDL
since March 2023 at a 38% discount relative to the self-pay price,broadening patient access to this medicine.
Market understanding of the need for MET testing has improved
signiﬁcantly, with approximately half of new advanced/relapsed
NSCLC patients in China being tested. In the National HealthCommission’s Treatment Guidelines for Primary Lung Cancer 2022
and the China Medical Association Oncology Committee Lung
Cancer Group’s China Medical Association Guideline for Clinical
Diagnosis and Treatment of Lung Cancer , ORPATHYS® was identiﬁed
as the only targeted therapy recommended for MET exon 14 patients,
while a similar guideline from CSCO also recommended ORPATHYS®
as the standard of care for such patients. As MET testing awarenessand access increases, more patients are expected to be prescribed aselective MET inhibitor.

Tazemetostat(TAZVERIK® in Hainan, China;
the U.S. and Japan)
TAZVERIK® is an oral medicine that is approved in the U.S. andJapan for the treatment of patients with certain types of lymphoma(a blood cancer) and an extremely rare cancer called epithelioid
sarcoma. It works by blocking a certain enzyme that helps cancers
grow.

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTIn May 2022, TAZVERIK® was approved by the Health Commission
and Medical Products Administration of Hainan Province tobe used in the Hainan Pilot Zone in China, under the Clinically
Urgently Needed Imported Drugs scheme, for the treatment ofcertain patients with epithelioid sarcoma and follicular lymphoma
consistent with the label as approved by the U.S. FDA. Launched in2013 and located in China, the Hainan Pilot Zone is a destination
for international medical tourism and global hub for scientiﬁcinnovation. Tazemetostat was included in the 2022 CSCO guidelines
for epithelioid sarcoma and subsequently included in the 2023 CSCO
guideline for follicular lymphoma.

2) ONCOLOGY/IMMUNOLOGY R&D
Our comprehensive drug R&D operation covers chemistry; biology;
pharmacology; toxicology; manufacturing controls for clinicaland commercial supply; clinical development; regulatory aﬀairs;
and other functions. With the U.S. FDA approval of fruquintinibin November 2023, we now possess a track record of discovery,clinical development and marketing approval of an innovative
medicine not just in China, but in the global market. In addition to
fruquintinib, surufatinib, savolitinib and tazemetostat, we areconducting clinical trials on a broad pipeline of other diﬀerentiateddrug candidates including sovleplenib, amdizalisib, HMPL-453,
HMPL-306, HMPL-760, HMPL-295, HMPL-653, HMPL-A83, HMPL415 and several others in preclinical research and development. We
are conducting over 30 diﬀerent clinical studies in oncology patients
globally.
This broad pipeline of diﬀerentiated targeted therapies andimmunotherapies is built for the global market. The aim of ourresearch is to develop highly selective medicines with superior safety
proﬁles, which have the potential to be eﬀectively paired with otheroncology and immunology therapies at eﬀective dosages with fewerside eﬀects.

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Another milestone we have is the success we had in the registration
clinical trial in China in Immune thrombocytopenia purpura (“ITP”)
patients for sovleplenib, our ﬁrst potential novel medicine inimmunological diseases. The marketing authorization applicationin China was accepted and granted priority review in January 2024.
There are over 250,000 new and existing adult ITP patients in China9.
The treatment options are limited, representing an unmet medical
need that sovleplenib could help address. Sovleplenib has thepotential to target other major diseases such as rheumatoid arthritis.
We are also planning to initiate clinical development of sovleplenib
outside China in 2024.
To learn more about our R&D, please refer to our Annual reportvisit our website .

or3) MANUFACTURING
We have a drug product facility in Suzhou, China, which
manufactures both clinical and commercial supplies for some ofour products. We have also completed construction and facility andequipment qualiﬁcation of a new drug product facility in Shanghai,
China, which will increase our novel drug product manufacturing
capacity by over ﬁve times. The Pudong facility has successfully
passed an inspection by the local regulatory agency and was issued
the Drug Manufacturing Permit in 2023. The clinical manufacturing
and technology transfer for some of our commercial products areunderway in our new facility. This is in line with our previously
outlined expectations of manufacturing clinical supplies from the
new facility starting in 2023 and commercial supplies around 2025,
after the necessary regulatory ﬁlings and approvals.

In 2023, beyond the ﬁling of market authorization applications in
the U.S., EU and Japan for FRUZAQLA™, we also ﬁled an additional
application for ELUNATE® for the treatment of gastric cancer patientsin China.
For ORPATHYS®, we completed another trial in lung cancer patientswith MET, which has potential to expand usage to include newly
diagnosed patients in China. Outside China, we continue our workwith AstraZeneca on the pivotal global lung cancer trial called
SAVANNAH. This study completed enrollment in 2022, 2023 andearly 2024. We believe the convenient dosing, targeted eﬀicacy andsafety proﬁle of ORPATHYS® as an oral medicine in combination witha similar oral medicine from AstraZeneca called TAGRISSO®, should
position it well in addressing the unmet needs of MET positive lungcancer patients.

9

Source: IQVIA. Report on ﬁle.

Shanghai facility

We have established the supply chain for FRUZAQLA™ for the U.S.
market. Our Suzhou facility passed a pre-approval inspection (PAI)by the U.S. FDA in August 2023. We have qualiﬁed two drug productsites for supplying FRUZAQLA™ to the U.S. market: our own facility
in Suzhou and a second drug product contract manufacturingorganization in Switzerland.
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 13

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

4) OTHER VENTURESOur Other Ventures include drug marketing and distribution
platforms covering about 290 cities and towns in China with over
2,900 mainly manufacturing and commercial personnel. Built overthe past 20 years, they primarily focus on prescription drugs andscience-based nutrition products through several joint ventures andsubsidiary companies.

Hutchison Sinopharm

Hutchison Sinopharm is our consolidated joint venture with
Sinopharm. Based in Shanghai, Hutchison Sinopharm focuseson providing logistics services, and distributing and marketingprescription drugs in China. As of December 31, 2023, Hutchison
Sinopharm had a dedicated team of over 40 people that focus
on marketing over 1,000 third-party prescription drugs and otherproducts directly to about 790 public and private hospitals in the
Shanghai region and through a network of approximately 125
distributors to cover all other provinces in China.

HHL

HHL is our wholly owned subsidiary and is primarily engaged in the
manufacture and sale of health supplements and personal careproducts. HHL’s major product is Zhi Ling Tong DHA capsules, ahealth supplement made from algae DHA oil for the promotion ofbrain and retinal development in babies and young children, which
is distributed by SHPL.

SHPLOur own-brand prescription drugs business is operated throughour non-consolidated joint venture SHPL. The SHPL operation islarge-scale, with a commercial team of about 2,300 staﬀ managing
the medical detailing and marketing of its products not just in
hospitals in provincial capitals and medium-sized cities, but also
in the majority of county-level hospitals in China. SHPL’s Good
Manufacturing Practice-certiﬁed factory holds 74 drug productmanufacturing licenses and is operated by about 560 manufacturing
staﬀ.
SHPL’s main product is She Xiang Bao Xin (“SXBX”) pill, an oral
vasodilator prescription therapy for coronary artery disease. SXBX
pill is the second largest botanical prescription drug in this indicationin China, with a national market share in 2023 of 22%.

Consumer Products Businesses Disposal

On December 7, 2023, HUTCHMED disposed of two businesses, HHO
and HSN, each of which is principally engaged in wholesale andtrading of healthcare and consumer products. The disposal allows
HUTCHMED to focus its resources on its core business areas.

14

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSSUSTAINABILITY
10
GOVERNANCE
BOARD STATEMENT11
The Board holds ultimate responsibility for integrating sustainability into the Company’s long-term growth and strategy12. Vigilant oversight involves
monitoring key sustainability issues, performance indicators, emerging trends, and potential risks and opportunities aﬀecting business development.
With support from the Sustainability Committee, senior management, and the sustainability working group, the Board governs the approach tosustainable development and the implementation of strategies.
In overseeing risk management, the Board conducts ongoing identiﬁcation and assessment of climate and sustainability risks. Collaborating with the
Audit Committee and Sustainability Committee, it reviews the risk management framework, ensuring its eﬀectiveness in design, implementation, andmonitoring. Climate-related risk is incorporated into sustainability risks in the risk management framework of the Company following the climaterisk assessment conducted in 202213. Continuous monitoring and reviews have been then undertaken, evaluating the eﬀicacy of the climate resiliencestrategy and potential ﬁnancial impacts.
Looking to the future, the Board of Directors will continue to lead in the area of sustainability. It is committed to embedding corporate social
responsibility (“CSR”) and sustainability into the DNA of our business to ensure long-term value creation for all stakeholders.

OUR GOAL AND TARGET
Develop a good ESG governance structure with an eﬀective risk management system.

Track Progress Target

2023 Progress

To develop an ESG framework that deﬁnes
its key focus area and strategic priorities. The
framework should be supported by all levelsof the Group.

A four-tier sustainability governance structure wasenhanced in 2022 for the eﬀective management
and implementation of the Group’s sustainability
objectives14.
10 sustainability related meetings and trainings wereorganized for all levels of employees to raise internal
awareness on sustainability. Our online ESG training
was organized for all employees in the Group.

10

Overall Approach 10; MDR 13
MDR 1312Overall Approach 10
13
MDR 13 (ii); A4 Climate Change
14
MDR 13 (i)11

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 15

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSSUSTAINABILITY GOVERNANCE STRUCTURE15
Committed to leadership in sustainability, the Board aims to embed CSR and sustainability into the business, delivering enduring value forstakeholders. The establishment of a robust sustainability governance structure is deemed crucial, as reﬂected in the four-tier sustainability
governance structure below.

Our Four-tier Sustainability Governance Structure

Board of Directors16

Chairman, CEO & CSO, CFO,
3 NEDs, 3 INEDs Note 1
Board
Level

15

MDR 13 (i)MDR 13 (i)17Overall Approach 10
18
MDR 13 (iii)16

16

Responsibilities
Oversees the sustainability strategy,reporting, and risk management17
Regularly reviews the progress against the
HUTCHMED’s sustainability objectives andtargets18
Shapes and oversees the corporate culture
Directs, supervises and monitors the
managerial performance and operating
practice
Ensures ongoing communication withshareholders and engagement with key
stakeholders

2023 Activity
In 2023, each director of
the Board received anaverage of 14 hours of
training, covering the areasof corporate governance,risk management, andsustainability practices
The Board also endorsed
and approved the 2022
Sustainability Report of theCompany

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

Sustainability Committee19

CFO, NED, INED Note 1

Board
Level
Committee

19

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Responsibilities
Advises the Board and oversees the operations of CSR and sustainability
initiatives of the GroupIn accordance with the Sustainability Committee – Terms of Reference ,the Committee meets at least twice a year to review the sustainability
performance and evaluate whether the Group is on track with the CSR andsustainability priorities and goals
Makes recommendations to the Board on the Group’s CSR and sustainability
risks and opportunities, objectives, strategies, priorities, initiatives, goals, andsustainability disclosures
Endorses and recommends the 2022 Sustainability Report of the Company
to the Board for approval2023 Activity
In 2023, the Committee held three meetings with 100% attendance to discussand review the sustainability initiatives including materiality assessment,
progress of sustainability goals and targets, Scope 3 screening andmeasurement
The adequacy of resources, staﬀ qualiﬁcations and experience, training
programs and budget of the Group’s sustainability performance andreporting function was also examined and considered satisfactory by the
Sustainability Committee
The Committee also endorsed and recommended the 2022 Sustainability
Report of the Company to the Board for approval

Name of Member

Position

Attended/
Eligible to attend

Edith Shih (Chairman)

NED and Company Secretary

3/3

Cheng Chig Fung,
JohnnyED and CFO

3/3

Mok Shu Kam, Tony

INED

3/3

MDR 13 (i)HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 17

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

Senior Management

CEO & CSO, CFO, COO,
CMO and other department
heads Note 1

Management
Level

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Responsibilities
Meets regularly to discuss sustainability issues ahead of their submission to the
Sustainability Committee for their review and oversight of the performance ofthe sustainability initiatives
Provides oversight on how the sustainability working group integrates
sustainability into daily practices
Has the overall responsibility to assess and manage sustainability issues that
impact the business
Discusses and develops strategic direction on emerging issues
Develops and monitors the progress of the sustainability goals and targets
Receives updates from the sustainability working group on the overall
performance
Sustainability performance is incorporated into management’s performancebased compensation and remuneration
From the senior management team, the Head of Corporate Management &Communications directly oversees and co-ordinates sustainability-related
issues2023 Activity
In 2023, the senior management held two meetings to discuss sustainability
issues ahead of their submission to the Sustainability Committee for theirreview and oversight of the performance of the sustainability initiatives.

Sustainability
Working GroupOperation
Level

Representatives from diﬀerent
business units

Note 1: CEO = Chief Executive Oﬀicer
CSO = Chief Scientiﬁc Oﬀicer
CFO = Chief Financial Oﬀicer
COO = Chief Operating Oﬀicer
CMO = Chief Medical Oﬀicer
ED = Executive Director
INED = Independent Non-executive Director
NED = Non-executive Director
18

Responsibilities
Meets regularly to discuss implementationplans of sustainability initiatives
Provides operational support in driving
sustainability performance across the Group
Monitors sustainability issues and updates thesenior management and the Sustainability
Committee on emerging risks and opportunities
throughout the business activities
Collects data to facilitate corporate
sustainability disclosures and identify areas
for improving operational performance anddisclosure2023 Activity
In 2023, the working
group held ﬁve
meetings to discusssustainability
initiatives; four
trainings on datacollection; one groupwide sustainability
online training for all
staﬀ across oﬀices(Hong Kong, mainland
China, and the U.S.)1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSBOARD COMPOSITION AND DIVERSITY
Board Composition and DiversityNote 1
98Female(22%)

7ED(33.33%)Chinese
(67%)

6
5
4
3

NEDs
(33.33%)
Male
(78%)

2
1
0

GenderINEDs(33.33%)

NonChinese(33%)

Designation

Ethnicity

The Board is committed to fostering diversity, equity and inclusion
across all levels of the Group. Female representation at the Board stands
at approximately 22%, above average20 amongst companies listed on
the HKEX. Gender diversity of the workforce also stands at a relatively
balanced level, with female representing 53%. Further details on thegender ratio of the Group and initiatives undertaken to enhance gender
diversity across senior management and the broader workforce, alongwith relevant data, can be found in Chapter 12 of this Report.
Note1:ED = Executive Director
INED = Independent Non-executive Director
NED = Non-executive Director

RISK MANAGEMENT
The Board has the ultimate responsibility for the risk management,internal control, and legal and regulatory compliance of the Group. In
meeting its responsibilities, the Board, with due regard to the Company’srisk appetite, evaluates and determines the nature and extent of the risks(including sustainability and cybersecurity risks) that the Company iswilling to accept in pursuit of its strategic and business objectives. The
Board inculcates appropriate risk culture across the business operationsof the Group and has put in place a comprehensive range of policies andsystems, including parameters of delegated authority, which provide a

20

Above
64 years old(56%)

64 years oldor below(44%)

Age Group

framework for the identiﬁcation, reporting and management of risks.
It also reviews and monitors the eﬀectiveness of the systems of risk
management and internal control on an ongoing basis.
The Company adopts an Enterprise Risk Management (“ERM”) framework
which is consistent with the COSO (the Committee of Sponsoring
Organizations of the Treadway Commission) framework. The ERM
framework facilitates a systematic approach in identifying, assessing,managing and monitoring risks (including sustainability and cyberrisks) within the Group, be they are of strategic, ﬁnancial, operational orcompliance nature.
Risk management is an integral part of the day-to-day operations andmanagement of the Group and is a continuous process carried out at alllevels of the Group. There are ongoing dialogues between the Executive
Directors and the management team of each core business division
about the current and emerging risks (including sustainability and cyberrisks) that are relevant to their businesses, the plausible impact of therisks and mitigation measures to ensure that the executive management
teams of each core business have performed their duties to haveeﬀective systems. These measures include instituting additional controls
and deploying appropriate insurance instruments to minimize or transfer
the impact or risks that the Group’s businesses face. The latter also
includes Directors and Oﬀicers Liability Insurance to protect Directors
and oﬀicers of the Group against potential personal legal liabilities.

As of March 2024. Source: Board Diversity & Inclusions in Focus(hkex.com.hk)
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 19

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

In terms of formal risk review and reporting, the Group adopts a“top-down and bottom-up” approach involving regular input fromeach core business as well as discussions and reviews by the Executive
Directors and the Board, through the Audit Committee. More speciﬁcally,
on a half-yearly basis, each core business unit is required to formally
identify the signiﬁcant risks (including sustainability and cyber risks)
their business faces and assess the risk severity in terms of potential
impact and likelihood, whilst the Executive Directors provide input after
taking a holistic assessment of all the signiﬁcant risks that the Groupfaces. Relevant risk information including key mitigation measures andplans are recorded in a risk register to facilitate the ongoing review andtracking of progress.
The composite risk register together with the related risk assessment
report, form part of the risk management report for review and approvalby the Audit Committee on a half-yearly basis. The Audit Committee, on
behalf of the Board, reviews the report, discusses the risk management
and internal control systems, including matters related to cybersecurity
risks, with the Internal Audit General Manager and Executive Directors,
and provides input as appropriate so as to ensure eﬀective systems arein place.

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSIn 2023, we continued to proactively address sustainability risks
following the climate risk assessment conducted in 2022. Climate risks
identiﬁed along with potential ﬁnancial impacts have been integrated
into our ERM framework. This has led to improvements in the integrationof sustainability risks and ongoing monitoring.
For more details, please refer to the Corporate Governance Report within
our Annual Report .

SUSTAINABILITY AND
GOVERNANCE POLICIES21
HUTCHMED’s commitment to operating responsibly has taken theGroup beyond the regulatory requirement for sustainability as reﬂectedin our sustainability and governance policies and statements. We strive
to stay abreast of the latest updates regarding regulatory changes onsustainability and regularly review the policies with reference to local
and international guidelines and standards. All members of the Group
must comply with and implement the said policies and statements
to help HUTCHMED achieve its sustainability objectives. The major
sustainability related policies are as follows. Details of each policy can befound on our website .

Sustainability
PolicyAnti-Bribery
and AntiCorruption
Policy22

Environmental
Policy23

Human Rights
Policy24

Healthand Safety
Policy25

ModernSlaveryand HumanTraﬃckingStatement26

Interaction
with
HCO, HCP
and Patient
Organizations

Quality
Management
SystemSummary27

OTHER SUSTAINABILITY-RELATED POLICIESSustainability Committee – Terms of Reference
Audit Committee – Terms of Reference
Nomination Committee – Terms of Reference
Remuneration Committee – Terms of Reference
Technical Committee – Terms of Reference
Board Diversity Policy
Director Nomination Policy
Memorandum and Articles of Association
Statement of compliance with the Hong Kong Corporate Governance
Code
Procedures for a Shareholder to Propose a Person for Election as a
Director of the Company
Anti-Bribery and Anti-Corruption Policy

Code of Ethics
Code of Ethics – Business Partners
Policy on Personal Data Governance
Information Security Policy
Shareholders Communication Policy
Whistleblowing Policy
AIM Rule 26
Policy on Handling of Conﬁdential and Price-sensitive Inside
Information, and Securities Dealing
Interaction with HCO, HCP and Patient Organizations
Quality Management System Summary
Drug Safety Information Reporting Summary28
PhIRDA Code of Ethics

21

25

22

26

MDR 12 (i)B7 Anti-corruption
23
A1 Emissions; A2 Use of Resources; A3 The Environment andNatural Resources; A4 Climate Change
24
B1 Employment; B4 Labor Standards; B5 Supply Chain Management
20

B2 Health and Safety
B1 Employment; B4 Labor Standards; B5 Supply Chain Management27
B6 Product Responsibility; KPI B6.4
28
B6 Product Responsibility; KPI B6.5

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSSUSTAINABILITY
29
STRATEGY
Understanding the needs and concerns of our stakeholders guides our approach to sustainability and our future activity. Materiality to the business isdetermined by assessing how each sustainability issue impacts our business and stakeholders, as well as our impact on society and the environment,
through internal and external viewpoints.

STAKEHOLDER ENGAGEMENT APPROACH
We continue to engage with our stakeholders to understand their expectations and perceptions of our sustainable development performance.
Ongoing communication helps us maintain trust, reconcile differing interests, and identify emerging social and environmental risks and opportunities
to the business. The following sets out our key stakeholder groups and our main communication channels.

29

Employees

Investors and Shareholders

Governments and Regulators

Main mode of engagement:
Town-hall meetings
Team building events
Employee engagement surveys
Topic-specific trainings and meetings
Community services
Intranet
Company website
Newsletters
Annual and interim reports
Sustainability reports

Main mode of engagement:
Annual general meetings
In-person and video meetings
Investor conferences
Corporate presentations
Stock exchange announcements
Roadshows
Press releases
Company website
Direct outreach via emails
Annual and interim reports
Sustainability reports

Main mode of engagement:
Joint projects
Working committees and consultations
Onsite inspections
Submissions for new drugs applications
Submissions for NRDL/NRDL renewals
Company website
Annual and interim reports
Sustainability reports

Overall Approach 7; MDR 14
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 21

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Customers(healthcare professionals andpatients)

Business Partners

Suppliers

Main mode of engagement:
In-person customer visitsMarket research
Post-conference research
Patient assistance programs
Customers’ access to the NRDL

Main mode of engagement:
Multi-stakeholder meetings andseminars on specific issues
Joint projects and partnerships
Training for business partners
Company website
Annual and interim reports
Sustainability reports

Main mode of engagement:
Virtual or in-person meetingsOn-site investigation/quality inspection
Training for suppliers
Questionnaires
Audits
Improvement programs
Company website
Annual and interim reports
Sustainability reports

Industry Associations andAcademiaNGOs and Community

Media

Main mode of engagement:
Joint projects
Research funds
Multi-stakeholder forums andpartnerships
Industry conferences and seminars
Company website
Annual and interim reports
Sustainability reports

Main mode of engagement:
Community projects
Volunteer activities
DonationsCompany website
Annual and interim reports
Sustainability reports

Main mode of engagement:
Press conferences
Media interviews
AwardsPress releases
Feedback and responses to media
enquiries
Company website
Annual and interim reports
Sustainability reports

22

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

MATERIALITY ASSESSMENT30
In 2022, with the support of an independent third-party, we have conducted a comprehensive materiality assessment with both internal and external
stakeholders by means of online surveys, focus group meetings and deep dive interviews to identify 33 ESG material topics. Please refer to P.23-27
of our 2022 Sustainability Report to understand more on our stakeholder-driven materiality approach, key stakeholder groups and format ofengagement, stakeholders’ concerns and our response. In 2023, to refresh the material topics and matrix, we took into account insights from the
SASB materiality topics for the pharmaceutical industry, peer benchmarking and global trends in sustainability along with a review of the materiality
assessment results from 2022. As a result, we have reorganized and consolidated the material topics, condensing the 33 topics to 20. This facilitates
our prioritization of the most relevant sustainability issues that have a significant impact on our business and stakeholders. The outcome of themateriality refresh was reported, discussed, and approved by senior management and the Sustainability Committee. The assessed aggregated results
were also approved by the Board.

Our Material Topics
The materiality matrix maps 20 ESG material issues, with their importance to external stakeholders plotted on the y-axis and their importance to ourbusiness continuity and development plotted on the x-axis. Overall materiality was determined by the aggregate score assigned to each ESG material
issue by our internal and external stakeholders. All material issues have been addressed in this Report in accordance with the various reporting
standards. The top five material issues to internal and external stakeholders have been identified as Business Ethics and Anti-Corruption, Affordability
and Access to Healthcare, Product Quality and Safety, Product Innovation, and Employee Development. The rankings are outlined in the materiality
matrix.

30

Overall Approach 7; MDR 14

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 23

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Materiality Matrix

Materiality Matrix
6.0

Ongoing Importance

Focus Topics

5.8

5.6

1

Impact to Stakeholders

2
5.4

3

6
10

4.8

18

9

7

11

12
15

4

8

5.2

5.0

5

13
14

17
16

4.6

19
20

4.4

4.2

Watch List

4.0
4.0

4.2

4.4

4.6

4.8

5.0

5.2

5.4

5.6

5.8

6.0

Impact on Business Success
Pillars
Ethics and Transparency
Climate Action

Ethics and Transparency
1

Business Ethics andAnti-corruption

3

Product Quality and Safety

7

Bioethics

Human Capital
Access to Healthcare

Human Capital
Data Privacy and Security

5

12

Responsible Marketing

15

Responsible Supply Chain
Management

10

Climate Action

Employee Development

Human & Labor Rights

4

Product Innovation8

Occupational Health and
Safety19Community Contribution

11Intellectual Property
Protection

13

Diversity, Equity and Inclusion

Access to Healthcare

Climate Resilience andClimate Action

Natural Resources andBiodiversity

2

Affordability & Access to
Healthcare

14

Product Sustainability

20

Waste and Packaging

6

16

Water Use

Patient Engagement andAdvocacy

24

Innovation
17

18

9

Innovation

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Material Topics(1 being the most material to the Company)

How We Address Them
(Corresponding Chapters in this Report)

1. Business Ethics and Anti-Corruption

7. Business Ethics and Anti-Corruption

2. Affordability and Access to Healthcare

10. Access to Healthcare

3. Product Quality and Safety

8. Responsible Commercialization

4. Product Innovation

9. Research and Development

5. Employee Development

12. Human Capital Management

6. Patient Engagement and Advocacy

10. Access to Healthcare

7. Bioethics

9. Research and Development

8. Occupational Health and Safety

12. Human Capital Management

9. Climate Resilience and Climate Action

11. Climate Action

10. Data Privacy and Security

8. Responsible Commercialization

11. Intellectual Property Protection

7. Business Ethics and Anti-Corruption

12. Responsible Marketing

8. Responsible Commercialization

13. Diversity, Equity and Inclusion

12. Human Capital Management

14. Product Sustainability

11. Climate Action

15. Responsible Supply Chain Management

8. Responsible Commercialization

16. Water Use

11. Climate Action

17. Human and Labor Rights

12. Human Capital Management

18. Natural Resources and Biodiversity

11. Climate Action

19. Community Contribution

12. Human Capital Management

20. Waste and Packaging

11. Climate Action

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 25

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSDEVELOPING A HOLISTIC SUSTAINABILITY STRATEGYTo bring HUTCHMED’s purpose to life, our sustainability strategy framework is integrated into every aspect of our business decisions that guides us in
improving the lives of patients through the discovery, development and delivery of world-class treatments for cancer and immunological diseases.
Our Sustainability Framework is built on the five pillars below, and further extends to nine focus areas covering the 11 short to long-term sustainability
goals and targets31 set in 2022. Please refer to Chapter 5 for the overview of the 2025 goals and targets. The Board, including the board-level
Sustainability Committee, is responsible for overseeing the framework, while the senior management takes responsibility for its efficient execution.
This framework holds both the Company as a whole and each individual business unit accountable for our aspirations. It offers a comprehensive
approach to managing our impact, allowing us to work towards maximizing our contributions and minimizing any adverse effects.

Our Purpose and Ambition(Aligned with mission, vision, values and culture)

Our Sustainability Strategy(Aligned with corporate strategy)

Ethics andTransparency

Human
CapitalInnovation

Environmental goals and targets

HUTCHMED
Sustainability
Pillars

ClimateActionAccess to Healthcare

Social goals and targets
Governance goals and targets

Our Sustainability Initiatives
Through ongoing stakeholder engagement, we have established clear guidelines for our obligations to the individuals and entities we serve, including
our employees, the communities we operate in, and our shareholders. As we continuously assess the most effective ways to fulfill our purpose andmeet the needs of our stakeholders, we have implemented measures to enhance the refinement, prioritization, and strategic handling of pertinent
sustainability matters that can influence our business, as well as the well-being of people and society. Our sustainability strategy has the ambition to
set the direction for our key strategic ESG focus areas under the five Sustainability Pillars, namely Ethics and Transparency, Innovation, Climate Action,
Access to Healthcare and Human Capital. Each of the identified pillars center around an array of strategic initiatives as well as metrics and targets.
An implementation roadmap for each of the pillars is being prudently developed, weighing up the concerns and suggestions from both internal andexternal stakeholders reflected in the materiality assessment.

31

26

MDR 13 (iii)1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

We focus our efforts on the areas where we are uniquely positioned in this industry to achieve the greatest impact. Our five Sustainability Pillars not
only take into account peer benchmarking and assessment against the SASB industry-based metrics, but also incorporate the most relevant material
sustainability topics identified in our materiality assessment . The five pillars serve as a guide to generating lasting value by upholding integrity,
trust, and accountability in our operations, safeguarding and enhancing the well-being of the communities through research and development,
addressing the significant environmental challenges posed by climate change, contributing to improved health outcomes for patients and healthcare
providers and creating fulfilling opportunities for our employees and suppliers.

Our Five Sustainability Pillars

Ethics andTransparency

Innovation

Access to
Healthcare

ClimateActionHuman
Capital

Focus areas:

Focus area:

Focus area:

Focus areas:

Focus area:

Responsible
Supply Chain

Product Quality
and Innovation
Maintaining
high quality ofpharmaceuticalproducts which
is determined by
the quality of the
raw materials,
equipment, andthe technicalknowledge required
to process, package,and distribute theproduct.

Affordability
and AccessClimate Change

Diversity, Equity
and Inclusion

Considering all
the social andenvironmental
impacts throughout
every step of the
supply chain
network.

Business Ethics
Implementing
policies andprocedureson preventing
fraud, bribery,
discrimination,and strengthening
corporate
governance.

Providing equitable
and sustainable
access to medicines.

Taking actions on
climate mitigation,
adaptation andenhancing resilience inbusiness operations.

Waste
Management
Managing waste
production, handling,processing, storage,
and transport from its
point of generation
to its final acceptabledisposal.

Water
Management

Addressing workforce
representation,
ensuring fair treatment
for all people anddemonstrating thedegree to which
HUTCHMED embraces
all employees andenables them tomake meaningful
contributions.

Business Ethics
Improving employees’
existing competencies
and skills anddeveloping newer
ones to support
HUTCHMED’s goals.

Managing andunderstanding water use
and shared risk in termsof water governance,water balance, and water
quality.
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 27

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

2025 GOALS AND TARGETS
Environment Goal32
HUTCHMED will become a net-zero company by 2050 through producing pharmaceutical products anddeveloping impactful partnerships.

Environment

On Track

On Track

On Track

Environment Target 1

Environment Target 2

Environment Target 3

Carbon Emission Intensity

Energy Intensity

Business Air Travel Emission Intensity

30%(baseline year 2020)

Social28

KPI A1.5; KPI A2.3

10%(baseline year 2019)

On Track

On Track

Social Goal 1(Patient Outcome)Social Goal 2(Access to healthcare)

Be dedicated to the safety of medicines by constantly
monitoring patient outcomes, identifying any unexpectedsafety issues that might arise.

Aim to increase access to healthcare,
especially for life saving treatments.

Social Target 1

Maintain zero critical ﬁndings from safety inspections
and audits.

32

10%

(baseline year 2020)

Social Target 2

Deliver aﬀordable medicines to patients throughinitiatives such as Named Patient Program (“NPP”).

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

Social

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSOn Track

On Track

On Track

Social Goal 3(Product aﬀordability andpricing)

Social Goal 4(Diversity, equity andinclusion)

Social Goal 5(Diversity, equity andinclusion)

Allow all patients to access the
medicines without suﬀering ﬁnancial
hardship.

Be committed to being an ethical, open
and inclusive company.

Social Target 3

Continue eﬀorts to apply for
its medicines to be added to the NRDL.

Social Target 4

Achieve gender equality for middle
management and above.

Be committed to being an ethical,
open and inclusive company.

Social Target 5

Continue to work towards further
strengthening its board diversity.

On Track

On Track

On Track

Governance Goal 1(Business ethics and clinical
trial practices)

Governance Goal 2(Product quality and safety
and product innovation)

Governance Goal 3(Accountability)

Be committed to increasing publictrust in the pharmaceutical industry.

Develop and bring to market innovativeand high quality products.

Aim to develop a good ESG
governance structure with aneﬀective risk management system.

Governance
Governance Target 1

Maintain 100% of active employees
trained on the Code of Ethics.

Governance Target 2

Train 100% active employees onsustainability.

Governance Target 3

Develop an ESG framework thatdeﬁnes its key focus area andstrategic priorities and be supportedby all levels of the Group.

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 29

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSBUSINESS ETHICS &ANTI-CORRUPTION

Ethics andTransparency

We are committed to upholding the highest standards of corporate governance, integrity, and sustainability in all our business activities. Under
the leadership of the Board and senior management, we foster an ethical business culture that sets clear expectations for all employees to
conduct business with the highest standards of business ethics, and in compliance with all applicable laws and regulatory requirements. A set ofcomprehensive systems and policies are in place to ensure robust ethics and regulatory compliance underlying the operations and practices acrossthe Group.
Our actions support the following SDGs:

OUR GOALS AND TARGETS33

Be committed to increasing public trust in the pharmaceutical industry.

33

30

2025 Target

2023 Progress

To maintain 100% of active employees trainedon the Code of Ethics.

We maintained 100% training rate for all
employees on the Code of Ethics in 2023.

Reporting Principles 11 (2)1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSCODE OF CONDUCT AND
ANTI-CORRUPTION34
Our Code of Ethics guides our employees across all levels toobserve HUTCHMED’s principles such as integrity, responsibility, andaccountability in the conduct of business operations. It also sets out
our commitment to directors and employees of our Group, customers,
investors, governmental authorities, and the general public about our
expectations regarding conflicts of interest, fair dealing and integrity,
discrimination and harassment, bribery and confidentiality, and otherrelated issues.
We also expect our business partners, including suppliers, vendors,
customers, agents, contractors, joint venture partners andrepresentatives, to meet our ethical standards. Thus, we have formulated
the Code of Ethics – for Business Partners to promote the standards
outlined in our internal Code of Ethics , including(i) honest and ethical conduct;(ii) respect of confidentiality and intellectual property (“IP”);(iii) compliance with applicable laws, rules, codes and regulations;(iv) prompt internal reporting of any violations of the Code; and(v) accountability for adherence to the Code.
We take a zero-tolerance approach to any form of bribery and corruption,
fraud, blackmail, misuse, or misappropriation of the Company’s
assets in our business dealings. Our employees are strictly prohibitedfrom soliciting, accepting, or offering bribes when dealing with any
government entity, public or private officials. We comply with theCriminal Law and Anti-unfair Competition Law of the PRC, Prevention ofBribery Ordinance in Hong Kong (Cap.201), Foreign Corrupt Practices Act
in U.S. and The Bribery Act in UK. An annual mandatory training of theGroup-wide ABAC Policy is arranged for all employees to assist them inrecognizing circumstances which may lead to bribery and corruption. It
governs the actions of our employees regarding political and charitable
contributions, facilitation payments, gifts, hospitality, employment, andprocurement.
In addition, HUTCHMED is a council member of China PharmaceuticalInnovation and Research Development Association (PhiRDA),
a member of the International Federation of Pharmaceutical
Manufacturers & Associations (“IFPMA”) and a member of Asia

Partnership Conference of Pharmaceutical Associations . In Hong
Kong, we follow the Hong Kong Association of the PharmaceuticalIndustry Code of Practice. Through business partnerships, we also
follow the Code of Practice of the China Association of Enterprises with
Foreign Investment’s R&D-based Pharmaceutical Association Committee(RDPAC) , which is contained in our internal standard operatingprocedures (“SOPs”) and policies, such as Interactions with Healthcare
Professionals (“HCP”), Healthcare Organizations (“HCO”) and Patient
Organizations .35
Additionally, we conduct a bribery risk assessment regularly to identify
and evaluate any potential bribery-related risks. Each business unit
is required to report any actual or suspected incidents of bribery,
theft, fraud or similar offenses to the Internal Audit department forindependent analyses and necessary follow-up. In instances where
violations of policies and regulations are identified, we are committed totaking prompt and appropriate action. During the reporting period, no
significant bribery or potential bribery-related risks were identified in therisk assessment.
To safeguard our reputation and maintain relationships with business
partners, our employees remain alert to any risk of unlawful businessconduct. Policies regulate employees’ behaviour and provide specificguidelines for handling suspected corruption cases with special
care. Additionally, we have implemented the policy on Handling ofConfidential and Price-sensitive Inside Information, and Securities
Dealing to exercise control and oversight over inside information andany misbehaviour of our employees. Detailed procedures to handle
price-sensitive inside information, and disclosure obligations of internal
control are covered in the policy.36 In 2023, there were no concluded legal
cases regarding corrupt practices related to our business brought against
the Company or its employees.37 There were also no material monetarylosses as a result of legal proceedings associated with corruption orbribery38.
To maintain a high level of business integrity and ensure all our businessdealings and conduct are in compliance with competition laws, we
strictly follow the Group-wide Competition Compliance Policy. All
employees are required to comply with the competition laws of every
country, state and locality where HUTCHMED operates.

34

B7 Anti-corruption
SASB-BP-510a.2
36
KPI B7.2
37
KPI B7.1
38
SASB-BP-510a.1
35

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 31

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSCOMPLIANCE CULTURE WEEKTo enhance the Company’s compliance culture and promote compliance awareness among colleagues,a Compliance Culture Week event was organized in December 2023. A series of online and offline games,
competition and activities were held, allowing colleagues to reinforce their compliance knowledge ina leisure manner. The event received an overwhelming response from colleagues, with an impressive
records of 12,000 participations.

EMPLOYEE AWARENESS
To foster responsible business conduct and to ensure that employees
keep abreast of the latest compliance requirements, all employees
are required to declare their commitments and adherence to theCompany’s policies annually. HUTCHMED’s ABAC commitment iseffectively communicated to all employees through internal email
distributions, intranet, promotional articles, and other relevant meansof communication. This includes bribery and corruption risks, laws,
regulations, and standards in the area where we operate.
We also organize annual business ethics training to keep employees wellinformed about our ethical standards. Additionally, as part of the new
employee orientation program, we include specific training on our ABAC
policy . In 2023, to facilitate the identification of potential fraud andcorruption, as well as proper management of interactions with external
parties, a total of 2,333 hours of training were provided to directors andemployees on our Code of Ethics , ABAC Policy , and HCP & HCO
policies . Employees are well-equipped with practical measures andsolutions to address common ethical challenges and corruption issues
encountered in the course of daily operations.39

ANTI-CORRUPTION TRAINING40

39
40

32

Employee Category

Percentage of employees
who received training

Executive andSenior management100%

Middle management

100%

General staff

100%

KPI B7.2
KPI B7.3

41

B1 Employment; KP1 B4.1- B4.2; B4: Labor Standards;
B5 Supply China Management

Our compliance teams have the overall responsibility of monitoring
compliance with our ABAC Policy and Code of Ethics . We takeevery breach and case of non-compliance seriously and may ultimately
consider termination of employment and contract. During the reporting
period, we were not aware of any material legal or non-compliance cases
brought against the Group regarding corruption, bribery, fraud, andmoney laundering.

HUMAN RIGHTS & LABOR RIGHTS41
We strive to protect the internationally recognized human rights
principles in our business and supply chain. Our Human Rights Policy
and Modern Slavery and Human Trafficking Statement set out
clear expectations on respecting and promoting human rights as wellas ensuring no slavery or human trafficking exists in any part of ourbusiness or in our supply chains. To further strengthen our commitment
to human rights principles across our business operations, including
our supply chain, we have implemented and enforced robust systems
and controls to prohibit any form of forced, prison, or bonded labour,
slavery, human trafficking, or employment below legal minimum age
requirements. Additionally, we delivered human rights training toempower our employees with the knowledge to identify and addresshuman rights issues.
To ensure a secure and discrimination-free workplace for our employees,
we have implemented a robust set of recruitment and procurement
procedures. We have a zero-tolerance to any form of inappropriate
behavior that constitutes harassment or discrimination based on
gender, race, ethnicity, disability, marital status, pregnancy and family
status. All employees are well-informed and conscious of the relevant
requirements through the provision of training in induction programs
and policy manuals. In 2023, there were no incidents of human rights
violations.

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTDATA PRIVACY AND SECURITY42
In light of the escalating concerns surrounding data privacy on botha local and global scale, we are highly conscious of the compliancerequirements imposed by international and local data privacy
protection laws. Various measures have been implemented, covering
the monitoring of local and international data privacy developments
relevant to the Group as well as regular staff awareness training.
We exercise high standards of integrity in dealing with personal data.
The Information Security Policy and Policy on Personal Information
Governance are in place to monitor and comply with information
technology (“IT”) and data security standards, maintain the integrity of
information and prevent unauthorized access and disclosure. Our Data
Protection Officer is responsible for overseeing the Group’s adherencewith applicable data protection laws and regulations. Policies andrelated SOPs on personal and customer data management are in place
to ensure compliance with data protection laws and regulations in which
we operate, including the Personal Information Protection Law of the
PRC, the General Data Protection Regulation 2016/679 of the EU, the Data
Protection Act 2018 of the UK, the Personal Data (Privacy) Ordinance(Cap. 486) of Hong Kong. Separately, we addressed the requirementsof the California Consumer Privacy Act, as amended by the California
Privacy Rights Act of 2020, given the unique requirements of that law. All
employees are well-informed on protecting classified and confidential
information of the Company, personnel, patients and customers. During
Audit Committee meetings, senior management of the Company update
the Committee on any information security matters.
To uphold the integrity of computerized systems to store information
used in our clinical trials, SOPs on the control and operation of thesystems and their associated electronic records are in place to ensurecompliance to all applicable regulations as well as requirements of Good
Clinical Practices (“GCP”), Good Pharmacovigilance Practices (“GVP”),
and Good Laboratory Practices (“GLP”)43. These procedures cover thecomputerized systems’ lifecycle, including concept, development,
testing, release, maintenance, and retirement, and ensuring system
integrity through change management, periodic assessment, andincident management.
A comprehensive cyber-security framework has been established to alignwith the best-practice cybersecurity guidelines published by the National
Institute of Standards and Technology (NIST). To prevent data leakage
across business operations and ensure adherence to the industry bestpractices, in addition to our robust data governance structures, our IT
systems undergo both internal reviews and an annual cyber-security

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

assessment conducted by an independent third party. Risk assessments
and reviews are carried out monthly to identify improvement areas andassess the operating effectiveness of controls and procedures in theevent of information incidents. In 2023, a cyber-security external audit
and a cybersecurity maturity assessment were conducted across theGroup. Additionally, we have acquired a cyber-security insurance tofurther protect our IT systems.
To mitigate the impact of cyber-attacks and crimes, we have formulated
a cyber-incident response plan that sets out clear procedures and data
recovery strategies mitigation measures for managing the damage fromcyber-security incidents. The plan helps minimize downtime and ensurebusiness continuity by recovering critical information promptly.
In 2023, no significant data leak or information security breach wasobserved or recorded.

INTELLECTUAL PROPERTY44
IP plays a pivotal role in innovation, one of our five sustainability
pillars. We protect and respect IP rights by complying with and keeping
ourselves abreast of all IP laws and regulations of the countries in which
we operate. Our IP Handbook outlines the responsibilities over the use
and maintenance of IP, the procedures to monitor and maintain the IP
management system, including regular maintenance of the infrastructure
and registering of patents and IP rights. To mitigate the risk of IP rights
infringement, employees are consistently reminded to assess and behighly alert of the misuse of IP rights. The Handbook explicitly states thecorrective measures to safeguard against any unauthorized use of thirdparty IP45.
In the event of any IP infringement concerning our IP assets, we will seek
guidance from legal experts to formulate an effective protection strategy,
including confidentiality and non-competition agreements, registration,
maintenance, enforcement and prosecution of IP rights, and defenseof claims. The findings of infringement will also be reported to the
management for an assessment of the potential reputational risk. If themisuse of our IP persists, we are prepared to take further legal actions.
While proactively protecting our own IP rights, we also demonstrate
respect for the R&D results of others to foster fairness within the industry.
As of December 31, 2023, we had 274 issued patents, including 25
Chinese patents, 24 U.S. patents, 13 European patents, 354 patentapplications pending in major market jurisdictions, and 7 pending
Patent Cooperation Treaty (PCT) patent applications relating to the drugcandidates of our Oncology/Immunology operations.

42

B6 Product Responsibility; KPI B6.5
B6 General Disclosure
44
B6 Product Responsibility; KPI B6.3
45
B6 Product Responsibility
43

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 33

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

We also conduct our business using trademarks, including “HUTCHMED”,“ELUNATE®”, “SULANDA®”, “ORPATHYS®”, “FRUZAQLA™”, and others. To
protect these brands and to serve as a deterrent to counterfeits, we filed
trademark registrations in various jurisdictions, including Hong Kong,
mainland China, the U.S., UK, EU, and other regions. Currently, we havean expanding portfolio of over 652 registered trademarks. In addition,
our non-consolidated joint venture SHPL also owns a total of 21
trademarks related to its products in mainland China which also protect
its well-known brand “Shang Yao”.

WHISTLEBLOWING46
In our ongoing efforts to prevent unethical practices and misconduct,
we actively encourage our employees and business partners to makecomplaints or raise concerns regarding possible improprieties in
confidence, including violation of business ethics, serious breaches ofGroup policies, fraud, corruption, collusion with suppliers or contractors,
as well as conflicts of interest. Our Audit Committee has the overall
authority and oversight of investigation of such reported matters.
We have established a grievance mechanism to ensure independentand fair investigation and appropriate follow-up actions. All reports areinvestigated thoroughly by the designated department and appropriate
disciplinary actions are taken to address any findings. To protect thewhistleblower from any form of retaliation and discrimination, we accept
anonymous reports. Every complaint, in the form of report, can be madein person or in writing either by email or by post to the General Manager– Group Management Services who shall report to the Chairman of the
Audit Committee.
We also ensure the report and the whistleblower’s identity are kept
confidential and protected to avoid the fear of retaliation. Our Groupwide Whistleblowing Policy is in place for such independent
investigations and for appropriate follow-up actions to be taken. This
Policy will be reviewed by the Audit Committee regularly to ensure
continuing compliance with applicable laws and stock exchange rules aswell as their effectiveness. In 2023, no material cases of non-compliancewith our codes and policies, or any material violations of applicable laws
and regulations were found.

46

34

KPI B6.2; KPI B7.2

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSRESPONSIBLE
47
COMMERCIALIZATION

Ethics andTransparency

This year, HUTCHMED has taken a signiﬁcant step to getting closer to becoming a self-sustaining and globally recognized biopharmaceuticalcompany, aligning our mission of discovering, developing and bringing innovative medicines to patients worldwide. A fundamental strategic shift
has taken place in late 2022, and now our prioritized pipeline is driving notable results. We delve into the powerful synergy between responsiblecommercialization and being a successful company. We understand that our global ambition relies not only on accelerating our reach and impact but
also on ensuring the proﬁtability and sustainability of our operations. Through our steadfast commitment to responsible commercialization, we havediscovered that ethical practices, social responsibility, and environmental stewardship are not merely altruistic endeavors, but integral drivers of ourlong-term sustainability.
The inclusion of our in-house developed oncology products, ELUNATE® (fruquintinib), SULANDA® (surufatinib), and ORPATHYS® (savolitinib) on the
NRDL in China, and the approval of TAZVERIK® to enter the Hainan Pilot Zone in China marked pivotal moments in expanding access to innovative
therapies and improving patient care in the region. Outside of China, FRUZAQLA™ (fruquintinib) is now marketed by our partner Takeda in the U.S.
after the U.S. FDA approval in November 2023.
Up to the end of 2023, over 150,000 patients have received our novel cancer medicines commercially.
Our actions support the following SDGs:

47

B6 Product Responsibility
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 35

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSOUR GOALS AND TARGETS48

Be dedicated to the safety of our products by constantly monitoring patient outcomes,
and identifying any unexpected safety issues that may arise.
2025 Target:

2023 Progress:

To maintain zero critical ﬁndings from safety
inspections and audits.

We maintained zero critical ﬁndings from safety
inspections and audits spanning all geographies.

Aims to increase access to healthcare, especially for life-saving treatments.
Track Progress Target

2023 Progress

To deliver aﬀordable medicines to patients
through initiatives such as expanded accessand NPPs.

HUTCHMED products have entered patient
assistance programs, expanded access programs or
NPPs in mainland China, Hong Kong and Macau.

Be committed to allowing all patients to access the medicines without suﬀering
ﬁnancial hardship.

48

36

Track Progress Target

2023 Progress

To continue our eﬀorts on applying for its
medicines to be added to the NRDL.

All three HUTCHMED medicines marketed in China
are now included in the NRDL. ELUNATE® (fruquintinib)
and SULANDA® (surufatinib) continued to be includedin the NRDL for a new two-year term starting January
1, 2024, at the same terms as the previous two-year
agreement; ORPATHYS® (savolitinib) was ﬁrst includedin the NRDL since March 1, 2023, broadening patient
access to these medicines.

Reporting Principles 11 (2)1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

2023 HIGHLIGHTS:
FRUZAQLA™ (FRUQUINTINIB) U.S. FDA APPROVAL
Our partner Takeda received approval from the U.S. FDA for FRUZAQLA™ (fruquintinib), the ﬁrst novel oral targeted therapy
for adults with metastatic CRC regardless of biomarker status or prior therapies in more than a decade. This approval wasreceived under Priority Review more than 20 days ahead of the scheduled date of November 30, 2023, under the Prescription
Drug Users Fee Act (PDUFA).
Takeda launched FRUZAQLA™ in the U.S. within 48 hours after it was approved, with the ﬁrst prescription received a day
after approval. According to Takeda, uptake has been strong, with new patient starts exceeding expectations, and additional
regulatory applications progressing as expected including in the EU and Japan. From its launch until the end of 2023,
FRUZAQLA™ achieved in-market U.S. sales of US$15.1 million.

Dr. Weiguo Su

Executive Director,
Chief Executive Oﬀicer andChief Scientiﬁc Oﬀicer“This is a landmark moment for metastatic CRC patients in the U.S., who will soon have a much-needed newtreatment option that improves survival rates without negatively impacting their quality of life. It is also alandmark moment for HUTCHMED, as we see our ﬁrst medicine approved outside of our home market,
where we have been improving patient outcomes with our novel oncology medicines for the last ﬁve years.
In late 2022, we launched a partnership strategy for globalizing our innovative drug candidates and weare pleased to see early delivery of this new approach just a year later. This initial success is thank to ourpartner Takeda, who saw the value in fruquintinib, shared our vision for taking it global, and worked hardwith us to secure this U.S. approval. We look forward to continuing our work with Takeda in an eﬀort tobring FRUZAQLA™ to patients across the globe.” – November 8, 2023.

About CRC
CRC is a cancer that starts in either the colon or rectum. According to the International Agency for Research on Cancer (IARC),
CRC is the third most prevalent cancer worldwide, associated with more than 935,000 deaths in 2020.49 In the U.S., it wasestimated that 153,000 patients would be diagnosed with CRC and 53,000 deaths from the disease would occur in 2023.50 In
Europe, CRC was the second most common cancer in 2020, with approximately 520,000 new cases and 245,000 deaths. In
Japan, CRC was the most common cancer, with an estimated 148,000 new cases and 60,000 deaths in 2020.51 Although earlystage CRC can be surgically resected, metastatic CRC remains an area of high unmet need with poor outcomes and limited
treatment options. Some patients with metastatic CRC may beneﬁt from personalized therapeutic strategies based onmolecular characteristics; however, most patients have tumors that do not harbor actionable mutations.52,53,54,55,56

49

Sung H, et al. Global Cancer Statistics 2020: GLOBOCAN Estimates of Incidence and Mortality Worldwide for 36 Cancers in 185 Countries. CA Cancer J Clin.
2021;71(3):209-249. doi:10.3322/caac.21660.
50
Siegel RL, et al. Colorectal cancer statistics, 2023 [published online ahead of print, 2023 Mar 1]. CA Cancer J Clin. 2023; 73(3):233-254. doi:10.3322/caac.21772.
51
Sung H, et al. Global Cancer Statistics 2020: GLOBOCAN Estimates of Incidence and Mortality Worldwide for 36 Cancers in 185 Countries. CA Cancer J Clin.
2021;71(3):209-249. doi:10.3322/caac.21660.
52
Bando H, et al. Therapeutic landscape and future direction of metastatic colorectal cancer. Nat Rev Gastroenterol Hepatol 2023; 20(5)306-322. doi:10.1038/
s41575-022-00736-1.
53
D’Haene N, et al. Clinical application of targeted next-generation sequencing for colorectal cancer patients: a multicentric Belgian experience. Oncotarget.
2018;9(29):20761-20768. Published 2018 Apr 17. doi:10.18632/oncotarget.25099.
54
Venderbosch, et al. Mismatch repair status and braf mutation status in metastatic colorectal cancer patients: A pooled analysis of the Cairo, Cairo2, coin, andFocus Studies. Clinical Cancer Res.,2014; 20(20):5322–5330. doi:10.1158/1078-0432.ccr-14-0332.
55
Koopman, M., et al. Deﬁcient mismatch repair system in patients with sporadic advanced colorectal cancer. Br J Cancer. 209;100(2), 266–273. doi:10.1038/
sj.bjc.6604867.
56
Ahcene Djaballah S, et al. HER2 in Colorectal Cancer: The Long and Winding Road From Negative Predictive Factor to Positive Actionable Target. Am Soc Clin
Oncol Educ Book. 2022;42:1-14. doi:10.1200/EDBK_351354.

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 37

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

2023 HIGHLIGHTS:
ELUNATE® (fruquintinib) Marketing Approval in Hong Kong
ELUNATE® (fruquintinib) is the first medicine approved under new “1+” mechanism by the Hong Kong Government, providing
an important treatment option to patients in Hong Kong. We have made it a priority to do everything we can to bring thebenefits of our innovative medicines to Hong Kong, our Company’s birthplace, and are excited to have our first medicine now
approved here. As we advance our pipeline of drug candidates in other cancer types and immunological diseases, we lookforward to bringing additional therapies to benefit patients in Hong Kong.

“CRC is the second most common cancer type in Hong Kong with limited eﬀective treatment options
available, especially for previously treated metastatic CRC patients. Fruquintinib, as a third-line treatment
administered orally, demonstrated clinically meaningful beneﬁts and a consistent safety proﬁle in global
clinical trials. We are honored to be the ﬁrst through the “1+” mechanism and look forward to bringing thisimportant treatment option to patients in Hong Kong as quickly as possible.” – January 30, 2024.

Caron Li

Vice President, Oncology and
Immunology, Hong Kong andRegional Markets

RESPONSIBLE MARKETING AND
PRICING57
HUTCHMED is committed to responsible marketing practices andadheres to relevant laws and regulations to ensure the accurate and safe
promotion of its medicines. The Company strictly follows guidelines
such as the Advertising Law of the Peoples Republic of China, Standards
for the Examination and Publication of Drug Advertisements, and theProvisions for the Administration of Drug Instructions and Labels. These
regulations help prevent false or exaggerated advertising and ensurethat accurate information is conveyed to healthcare professionals andorganizations.
We are also committed to responsible pricing. When determining pricing
for our products, we
conduct market research and professional analysis of thepharmacoeconomics;
make reference to the pricing of similar products;
ensure patient aﬀordability and fair pricing practices are welladdressed;
consider rolling out patient assistance program for eligible patients;
andconsider applying for inclusion in NRDL once the product getsmarketed.

57

38

B6 General Disclosure

Pricing information is well communicated to stakeholders, including
healthcare providers and patients. The market price of ELUNATE®
(fruquintinib), ORPATHYS® (savolitinib), and SULANDA® (surufatinib) aremade public and can be checked by medical institutions on speciﬁc
websites.
HUTCHMED values strong collaborations with HCPs and HCOs as
an integral part of its responsible marketing practices. We prioritize
transparent and ethical partnerships, ensuring that any support provided
to HCPs or HCOs is based on scientiﬁc evidence and not perceived as
an inducement or reward for prescribing or promoting its products.
We also strictly adhere to internal policies and HKAPI Code of Practicethat prohibit any actions compromising professional independence. By
fostering open and collaborative relationships with HCPs and HCOs, we
aim to ensure that accurate and unbiased information about its products
is shared, facilitating responsible and informed decision-making inpatient care.

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

To enforce compliance, regular assessments of our products and services
are conducted to maintain the authenticity of promotional content andadvertisements. Responsible consumption guidance activities, including
product packaging, promotion, and aftersales services, are carried out toprioritize patient safety. Policies and guidelines are in place to regulate
drug promotion behavior, ensuring that interactions with HCPs and HCOs
are conducted ethically and transparently. In addition, our compliancecommittee comprising senior executives is responsible for overseeing
and monitoring marketing and sales activities. This committee reviews
promotional and non-promotional materials to ensure accuracy,
fairness, and compliance with regulations, fostering integrity in businesspractices. Internal compliance training programs for employees aremaintained to enhance awareness of compliance requirements and highethical standards. Our marketing and sales team also undergoes regularinspections to assess their adherence to responsible marketing practices
and ethical guidelines.
During the reporting period, no material cases were reported andinvestigated by the regulatory authorities for illegal advertising or
promotion, nor related violations in terms of product and service
labelling. We were also not aware of any monetary losses as a result oflegal proceedings associated with false marketing claims58.

ANTI-COUNTERFEITING AND
PRODUCT TRACEABILITY59
HUTCHMED places a strong emphasis on anti-counterfeiting and producttraceability to ensure the integrity and safety of its medicines. Throughthe implementation of advanced technologies and systems, HUTCHMED
is committed to preventing the inﬁltration of counterfeit drugs into themarket. The Company has adopted product authentication measures,
including anti-counterfeit packaging technologies, to enhance security
and make it diﬀicult for counterfeiters to replicate its products.
A comprehensive traceability program is in place to enable thetracking and veriﬁcation of its products throughout the supply chain.
We incorporate serialized barcodes on the product carton boxes.
These unique barcodes serve as identiﬁers that can be scanned andtraced throughout the supply chain. By printing serialized barcodeson the carton boxes, it enables eﬀicient tracking and veriﬁcation ofeach product unit, allowing for accurate monitoring of the product’s
journey from production to distribution60. This traceability system helps
prevent counterfeiting, detect any potential diversion or tampering,
providing transparency and accountability, and maintain the integrity of
HUTCHMED’s pharmaceutical products.

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

We take the issue of counterfeit products seriously, and therefore haveestablished an extensive process for alerting customers and business
partners about potential or known risks associated with counterfeit
products. When a potential or conﬁrmed case of counterfeit product is
identiﬁed, we promptly initiate a comprehensive investigation to gather
evidence and assess the scope of the issue. Internal teams collaborate
with law enforcement agencies, regulatory bodies, and other relevant
stakeholders to address the situation eﬀectively61. In 2023, no actions
have led to raids, seizure, arrests, or ﬁling of criminal charges related tocounterfeit products62.

PRODUCT AUTHENTICATION PROCESSFOR SUSPICIOUS PACKAGING AND DRUG
PRODUCTS
Sample inspection by
external agencies

ComplaintsampleSampleregistration

Print information andproduct appearance
inspection
Firm conclusion drawn

No firm
conclusion drawn

Print information andproduct appearance
inspection

Chemical verifications

Approval ofauthentication report

Communication ofauthentication results

58

SASB-BP-270a.1
KPI B6.1
60
SASB-BP-260a.1
61SASB-BP-260a.2
62
SASB-BP-260a.3
59

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 39

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

ADVERSE EVENTS63
Robust adverse events management system is a critical aspect toensuring patient safety and the integrity of healthcare practices.
We strictly adhere to national laws, regulations and guidelines, such as
the Administrative Measures for Drug Recalls, Drug Administration Law,
Adverse Drug Reaction Reporting and Monitoring Management System,
and Measures for Monitoring and Re-evaluation Management of Adverse
Events of Medical Devices. A comprehensive Drug Safety Information
Reporting Policy is in place to ensure compliance with worldwide laws
and regulations pertaining to the reporting of drug safety information,
including adverse events and special situations related to our products.
This policy outlines the Company’s responsibility to establish andmaintain a robust pharmacovigilance system for monitoring, identifying,assessing, and managing drug safety information, thereby safeguarding
the well-being of patients and subjects to the highest extent possible.
HUTCHMED highlights medication safety and the safe usage of devices,with a focus on vigilant monitoring to identify any known or potential
adverse drug reactions associated with our products. In the event of any
issues, prompt and appropriate actions are taken to mitigate patientrisks, such as conducting investigations to identify the root causes ofadverse events and implementing preventive measures. All case reports
are submitted to the global health authorities as per legal FDA andregulatory requirements, such as the EMA, Medicines and Healthcare
Products Regulatory Agency (“MHRA”), NMPA, and corrective andpreventive action plans are devised. Transparency and communication
play a vital role in adverse events management, ensuring that relevant
stakeholders, including healthcare professionals, regulatory authorities,
and patients, are informed about potential risks and mitigation
strategies. By prioritizing adverse events management, the Company
can uphold patient safety, enhance product quality, and continuously
improve our healthcare practices.
We have implemented the Third-Party Risk Assessment SOP, requiring all
suppliers identiﬁed with high business impact to complete the relevant
supplier training programs. The TPRM SOP deﬁnes the risk tiers andoperating procedures to be followed to monitor ethics and compliancerisk for each of the tiers of suppliers.
To test the eﬀectiveness of our recall system and identify areas for
improvement, simulate drug recall drills are conducted annually. Drills
are designed to test the eﬀectiveness of the company’s recall systemand ensure preparedness for emergency situations. By simulating

63

KPI B6.2; KPI B6.4
KPI B6.1; SASB-BP-250a.3
65
SASB-BP-250a.4
66
SASB-BP-250a.2
64

40

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

a drug recall scenario, HUTCHMED can evaluate the eﬀiciency andresponsiveness of our internal processes, identify any potential gaps or
areas for improvement to develop better CAPA plans, and take corrective
actions as necessary. This proactive approach helps to enhance ourability to swiftly and safely recall drugs if needed, minimizing potential
harm to patients and ensuring their well-being. During the reporting
year, there were no quality-related adverse events or product recalls
occurred64, nor accepted for takeback, reuse, or disposal65. There were
zero fatalities associated with products reported in the FDA Adverse Event
Reporting System66 as we do not lead any product commercialization in
the U.S.
To enhance our monitoring and management of adverse reactions,
HUTCHMED regularly conducts training sessions for employees
speciﬁcally focused on adverse reactions and has implemented eﬀective
risk control measures.

PHARMACOVIGILANCE QUALITYSYSTEM
HUTCHMED maintains a robust Pharmacovigilance Quality System toensure the highest standards of drug safety and regulatory compliance.
It is designed to identify, assess, and manage the safety of our products
throughout their lifecycle. It encompasses a comprehensive set ofprocesses, procedures, and controls that are regularly reviewed andupdated to align with evolving regulatory requirements and industry
best practices.
Our Pharmacovigilance Quality System includes rigorous quality
assurance measures to monitor and evaluate the eﬀectiveness of ourpharmacovigilance activities. This involves conducting internal audits,
implementing corrective and preventive actions, and fostering a cultureof continuous improvement. The integrity, accuracy, and completenessof our pharmacovigilance data, are carefully maintained to ensurethat adverse events and safety information are promptly collected,
processed, analyzed, and reported.
In addition to adhering to global pharmacovigilance standards, wework closely with regulatory authorities, including the NMPA, to ensurecompliance with local requirements and timely submission of safety
reports.
Our dedicated pharmacovigilance team undergoes regular training
and possesses the necessary expertise to eﬀectively monitor andmanage drug safety issues. By upholding the principles of patient safety,
transparency, and accountability, our system reinforces our commitment
to delivering safe and eﬀective medicines to patients worldwide.
In 2023, no safety violations were reported.

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

HUTCHMED places signiﬁcant importance on ensuring ethical andsustainable practices throughout our supply chain operations. Ourcommitment to compliance is unwavering, as we adhere strictly
to applicable national and local laws and regulations throughout
our supply chain operations. We are dedicated to ensuring that our
supply chain operates in a manner that upholds ethical standards,
promotes sustainability, and fosters positive social impact. With thisunderstanding, we have implemented a comprehensive suppliermanagement framework to foster transparency, collaboration, andcontinuous improvement within our supply chain. Our proactive
approach to responsible supply chain management includes working
closely with suppliers, applying criteria on supplier selection, promoting
responsible sourcing, reducing environmental impact, ensuring ethicallabor practices, fostering collaboration, and maintaining transparency.
We aim to mitigate risks, drive positive change, and create a resilient andsustainable ecosystem that not only meets the needs of our businessbut also contributes to the well-being of our stakeholders and thecommunities in which we operate.
In 2023, our Group had a total of 2,007 suppliers from diﬀerent locations.
We maintain regular and open communication channels with themby utilizing surveys and other direct means. To create a collective
impact that extends beyond our organization, we strive to forge strong
partnerships with our suppliers, working together to drive sustainability
initiatives and promote responsible practices throughout the supply
chain.

NUMBER OF SUPPLIERS BY GEOGRAPHICREGION68
No. of suppliers

Mainland China

1,711

United States and other countries

214

Hong Kong

82

Total

67
68

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

1. Supplier Selection and EngagementRESPONSIBLE SUPPLY CHAIN
MANAGEMENT67

Region

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

Our robust supplier management system includes a comprehensive
supplier assessment process that plays a vital role in ensuring
the quality and integrity of our supply chain. During our supplierselection process, we evaluate suppliers’ Environmental, Healthand Safety (“EHS”) compliance risks through information available
on the national corporate credit information system and online
company search database (qcc.com) to avoid using suppliers withhigh EHS risks or negative records and reputation. According to
the corresponding SOP, contracts with EHS agreements have to besigned with the applicable suppliers. During the sourcing, bidding,and procurement process, we take into reasonable consideration of
EHS performance of suppliers and prioritize sustainable solutions
and services. New supplier on-boarding process includes completionof the Request of Information and Conﬂict Of Interest Forms. All key
suppliers are reviewed annually based on the HUTCHMED Supplier
Annual Performance Feedback Form.

2. Ethical Labor Practices
Upholding the highest standards of integrity, sustainability, andethics is fundamental to our supplier management approach.
To ensure alignment with our values and expectations, we haveestablished a comprehensive set of supplier speciﬁcations andguidelines stringent quality requirements. Suppliers are also required
to endorse and comply with our Anti-Bribery and Anti-Corruption
laws, aﬀirming their commitment to ethical business practices.
All suppliers are required to adhere to HUTCHMED’s fundamental
principles and policies as stated in our contract and engagementagreements, including the Code of Ethics for Business Partners,
Human Rights Policy, Health and Safety Policy, and Sustainability
Policy, encompassing key areas on ethical standards, human rights
protection, and health, safety, environmental, and social practices.
We also arrange mandatory compliance training for business
partners and make sure suppliers are attesting to ethical standards
in their business operations, including ESG and fair business andlabor practices.

2,007

B5 Supply Chain Management; KPI B5.2 – B5.4; G5.1- G5.2
KPI B5.1; KPI 5.2
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 41

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

3. Ongoing Supplier Monitoring

Our supplier management process emphasizes the importance ofcontinual improvement and adherence to our standards. In cases
where there is a lack of commitment or failure to improve despite
support, we may consider terminating the relationship with thespeciﬁc supplier. During the year, no suppliers were identiﬁed withnegative environmental and social impacts or non-complianceissues69, highlighting the eﬀectiveness of our supplier management
practices. 100% of our Tier I suppliers participated either in the Rx360 International Pharmaceutical Supply Chain Consortium audit
program or equivalent third-party audit programs for integrity ofsupply chain and ingredients.70

Supplier assessments and audits are conducted on a regularbasis to monitor ongoing compliance and identify any areas ofnon-compliance. In 2023, HUTCHMED carried out 1,033 supplierassessments and audits as part of our commitment to maintaining
solid supplier relationships. If any suppliers fail to meet ourassessment criteria, we initiate further investigation and provide
improvement suggestions to address the identiﬁed areas of noncompliance. Suppliers are expected to develop CAPA plans to rectify
the issues and ensure future compliance. Key supplier processes and
SOPs are being documented by supplier for review by the Quality
Assurance department at HUTCHMED either remotely or during an
on-site visit, depending on the supplier risk level and according to
the supplier audit plan.
We have engaged a 3- year third party supplier due diligence service
in June 2022 to support the screening of new suppliers and ongoing
monitoring of critical suppliers for ﬁnancial, ethical and corporate
compliance risks. The ﬁrst batch of due diligence was conducted on
suppliers deemed of high and medium risk in December 2023 and no‘red ﬂags’ were identiﬁed from the assessment. Starting from 2024,
ESG criteria has been included as part of new supplier assessment
process.

42

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

69
70

KPI B5.3
SASB-BP-430a.1

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSRESEARCH &71
DEVELOPMENT
Taking a science-focused and innovative approach to research anddevelopment has been a core philosophy of HUTCHMED. As we progress
to becoming a leading biopharmaceutical company, we proactively
address and understand the risks and opportunities arising fromdynamic market conditions and shifts within the global pharmaceuticalindustry. Our commitment remains steadfast in utilizing innovation as
the impetus behind our pursuit of new drug discoveries. We are also
dedicated to investing in endeavors that expedite our progress towards
achieving the objective of providing groundbreaking medicines topatients worldwide.
With the U.S. FDA approval of fruquintinib in November 2023, we now
possess a track record of discovery, clinical development and marketing
approval of an innovative medicine in the global market. For more
information about our innovative drugs, please refer to the Operation
Review Section of the Annual Report .

Innovation

R&D HIGHLIGHTS>20>150,000
patients treatednovel drug candidates
created by our drug
discovery engine

by our novel cancer
medicines>15,000

US$2bn72

Our actions support the following SDGs:

enrolled
in clinical trials

invested in R&D>30 countries
in clinical trials

71

B6 Product Responsibility

72

We and our collaboration partners have invested approximately $2 billion
in our Oncology/Immunology operations as of December 31, 2023, withalmost all of these funds used for research and development expenses forthe development of our drug candidates.

8 partnerships
in R&D

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 43

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSOUR GOALS AND TARGETS73
Be committed to increasing public trust in the pharmaceutical sector.
2025 Target

2023 Progress

Maintaining 100% of active employees trainedon the Code of Ethics.

HUTCHMED remained focused on promoting inclusivity and representationin clinical trials, striving to incorporate diversity, equity and inclusionconsiderations throughout the entire clinical development process. This
included factors such as geographically diverse clinical trial sites selection,
providing early access opportunities, and ensuring continued post-trial
access for participants.
100% of our employees trained on the Code of Ethics in 2023.

Develop and bring to market innovative and high-quality products - by doing so improving thequality of healthcare for people around the world.
Track Progress Target

2023 Progress

Promoting innovation through partnerships
and the exchange of ideas – complemented
by investments in infrastructure and thenecessary framework conditions to create an
optimal innovation culture.

We have ongoing partnerships with AstraZeneca, Eli Lilly, BeiGene, Innovent,Junshi, Inmagene and Ipsen on the development, commercialization andmanufacture of different types of medicines.

2025 Target

In 2023, 100% active employees trained on sustainability.

To train 100% active employees onsustainability.

73

44

Reporting Principles 11 (2)In 2023, we entered into a license agreement with a subsidiary of Takeda
to further the global development, commercialization and manufacture of
fruquintinib outside of mainland China, Hong Kong and Macau.

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSOUR INNOVATIVE APPROACH

OUR MAJOR COLLABORATION PARTNERS

Our approach to innovation is characterized by a commitment toscientiﬁc excellence, collaboration, and patient-centricity. At its core,
the approach to innovation embodies a commitment to advancing
patient care, enhancing operational eﬀiciency, and fostering longterm viability. By leveraging cutting-edge R&D capabilities, we strive toaddress unmet medical needs and deliver transformative treatmentsfor patients. A key aspect of our innovation strategy involves fostering
strategic partnerships with academia, and other industry stakeholders
to access complementary expertise and resources. Through this holistic
approach, we aim to drive sustainable innovation and make meaningful
contributions to healthcare - not only aiming to meet current needs but
also anticipate and pre-emptively address future demands.

Creating high quality global ﬁrst-in-class or best-in-class drug candidates
requires investment of resources over a prolonged period of time.
Collaborations and joint ventures with corporate partners have thus
provided us with signiﬁcant funding and access to our partners’scientiﬁc, development, regulatory and commercial capabilities.
When we entered into these collaborations, we had already conducted
the discovery research and early clinical development of each drugcandidate and, following our agreements, continued to conduct theclinical development and manage the engagement with regulatory
authorities.

Our core R&D philosophy is to take a holistic approach to the treatmentof cancer and immunological diseases through multiple modalities
and mechanisms, including targeted therapies, immunotherapies andother pathways. A primary objective of our research eﬀorts has been todevelop next generation drug candidates with:

In 2008, our in-house teams started research on MET inhibitors,
subsequently discovering our drug candidate, ORPATHYS® (brand forsavolitinib in China), and conducting its pre-clinical development
in-house. In 2011, we submitted applications for clinical development andinitiated Phase I clinical trials before we entered into an agreement with
AstraZeneca under which we granted them co-exclusive, worldwide
rights to develop, and exclusive worldwide rights to manufacture
and commercialize ORPATHYS® for all diagnostic, prophylactic andtherapeutic uses.

unique selectivity to limit target-based toxicity;
high potency to optimize the dose selection with the objective tolower the required dose and thereby limit compound-based toxicity;chemical structures deliberately engineered to improve drug
exposure in the targeted tissue; and/or
ability to be combined with other therapeutic agents, including
targeted therapies, immunotherapies and chemotherapies.
We have built our own drug discovery engine, with which we strive tocreate diﬀerentiated novel oncology and immunology treatments with
global potential. These include furthering both small molecule andbiologic therapies which address aberrant genetic drivers and cancer cell
metabolism; modulate tumor immune microenvironment; and target
immune cell checkpoints. We design drug candidates with proﬁles thatenable them to be used in innovative combinations with other therapies,
such as chemotherapy, immunotherapy and other targeted therapy
in order to attack disease simultaneously through multiple modalities
and pathways. We believe that this approach can signiﬁcantly improvetreatment outcomes for patients.
Our pipeline of drug candidates has been steadily advancing andexpanding, with 13 drug candidates put into clinical development. See
Our Pipeline on our website for more details.

AstraZeneca

Eli Lilly
In 2007, our in-house research into vascular endothelial growth factor
receptor (“VEGFR”) inhibitors led to the discovery of our drug candidate,
ELUNATE® (brand for fruquintinib in China). We conducted preclinicaldevelopment in-house and initiated a Phase I clinical trial in 2010. In
2013, we entered into an agreement with Eli Lilly whereby we granted
Eli Lilly an exclusive license to develop, manufacture and commercialize
ELUNATE® for all uses in mainland China and Hong Kong. In 2018 and2020, we amended the agreement with Eli Lilly and continued to lead thedevelopment of ELUNATE®, including all clinical trial development.

TakedaIn 2022, we successfully completed a global Phase III clinical trial of
FRUZAQLA™ (brand for fruquintinib outside China) in previously-treatedcolorectal cancer patients. In 2023, we entered into a license agreementwith a subsidiary of Takeda to further the global development,commercialization and manufacture of FRUZAQLA™ outside of mainland
China, Hong Kong and Macau.

Innovent
In 2018, we entered into a global collaboration with Innovent to evaluate
the combination of ELUNATE® with Innovent’s antibody medicine, Tyvyt.
In 2019, we expanded this global collaboration to evaluate the safety andeﬀicacy of Tyvyt in combination with SULANDA® (brand for surufatinib in
China).
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 45

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

Junshi

In 2018, we entered into a global collaboration with Junshi to evaluate
the combination of SULANDA® with Junshi’s antibody medicine, Tuoyi.

BeiGeneIn 2020, we entered into a clinical collaboration agreement with BeiGene
to evaluate the safety, tolerability and eﬀicacy of combining SULANDA®
and ELUNATE®/FRUZAQLA™ with BeiGene’s antibody medicine,tislelizumab, in the U.S., Europe, China and Australia.

Inmagene
In 2021, we entered into a strategic partnership with Inmagene to further
develop several novel pre-clinical drug candidates discovered by us
for the potential treatment of multiple immunological diseases. Since
then, Inmagene initiated two global Phase IIa trials with IMG-007 andcompleted a Phase I study with IMG-004, which are both promising drugcandidates.

Ipsen
In 2021, we obtained a co-exclusive license to develop, an exclusive
license to commercialize and a co-exclusive license to manufacture
Ipsen’s TAZVERIK® (brand for tazemetostat in the U.S. and Japan) in
China for all therapeutic and palliative uses. Since then, TAZVERIK® wasapproved in the Hainan Pilot Zone in China, under the Clinically Urgently
Needed Imported Drugs scheme, and we have fully enrolled a clinical
trial for potential market authorization in China.
Going forward, we remain dedicated to discovering innovative
treatments to address the global unmet medical needs in the ﬁeld ofcancer and immunological diseases. In 2023, $302 million was spent on
R&D, which contributes to our current product innovations.

CLINICAL TRIALSThe clinical development stage involves the supervised administrationof the drug product to human subjects or patients, overseen by qualiﬁed
investigators who are typically independent physicians not aﬀiliated withor controlled by the trial sponsor. This process adheres to Good Clinical
Practices (“GCP”), which generally require written informed consent fromall research participants. Our clinical trials are conducted according tocomprehensive written study protocols that outline the trial’s objectives,
dosing procedures, subject selection criteria, exclusion criteria, andsafety and eﬀicacy monitoring parameters. In addition, each clinical trial
must undergo reviews and approval by the relevant institutions where
the trial will take place.

46

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

An independent ethics committee (“IEC”) is responsible for safeguarding
the welfare and rights of trial participants. The IEC assesses factors suchas the minimization of risks to participants and the reasonablenessof risks in relation to potential beneﬁts. The IEC also reviews andapproves the informed consent form provided to each participant or
their legal representative and monitors the trial until its completion.
Participants are explicitly informed of their rights and the grievanceprocess outlined in the informed consent form. If participants have any
questions, diﬀiculties, concerns, or dissatisfaction during the trial, they
can approach the IEC for assistance. Before commencing any trial, we
conduct risk assessments to minimize potential risks to participants andensure the quality of trial data. Regular reviews are conducted during thetrials to ensure the eﬀectiveness of risk mitigation measures.
If a violation is identiﬁed by monitors, auditors, vendors, or site staﬀ, it
is reported to our quality team. The quality team evaluates the severity
and impact of the violation and reports it to regulatory authorities or
IECs in accordance with applicable regulations. A formal investigationis conducted to determine the root cause of the violation, and CAPA aredeveloped accordingly.
Clinical trials typically progress through three phases―Phase I, Phase II,
and Phase III―that may overlap or be combined. Oncology clinical trials
speciﬁcally oﬀer continued access to treatment for patients who havebeneﬁted from speciﬁc drugs or investigational drug candidates, until
their physicians determine otherwise, upon completion of the trials.
To prioritize R&D activities for addressing the highest unmet medical
needs, HUTCHMED conducts a systematic review using a prioritizedframework to assess clinical needs in speciﬁc disease areas, mechanistic
rationale for each agent, competitive landscape, operational feasibility,
regulatory path, need for companion diagnostics and internal pipeline
density. A commercial assessment is also conducted which includes
input from consultants and experts in the clinical community. The
commercial assessment includes a valuation that ensures maximum
patient impact from R&D expenses and also assesses the size of thepotential patient population. The trials and activities which have thegreatest alignment with unmet need and the HUTCHMED priorities
that are very likely to demonstrate technical and regulatory success areprioritized. Our clinical development programs are then built to deliver asustainable pipeline for prioritized agents.

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSOver the years, clinical trials and pre–clinical trials of our in–house discovered drug candidates have been conducted in more than 30 countries andterritories, covering a diverse range of patients, spreading from developing countries to developed countries74.
During the reporting year, there were no monetary losses as a result of legal proceedings associated with clinical trials in developing countries.75

Territories with HUTCHMED Drug Candidate Clinical Trial Sites

Developed countries
Developing countries

Territories
Austria

Germany

Romania

Argentina

CanadaChina

South Korea

Belgium

Hungary

Spain

BrazilMexicoHong Kong

Australia

Czech Republic

Italy

United Kingdom

Chile

United States

India

New Zealand

Denmark

Netherlands

Japan

TürkiyeEstonia

PolandIsraelFranceSingapore74

DAC List of ODA Recipients for reporting on aid in 2022 and 2023:
https://www.oecd.org/dac/financing-sustainable-development/
development-finance-standards/daclist.htm
75
SASB-BP-210a.3
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 47

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTCONDUCTING SAFE AND ETHICAL
CLINICAL TRIALSClinical trials play a crucial role in assessing the safety, eﬀicacy, andquality of drugs. These trials are conducted with the highest ethicaland scientiﬁc standards, prioritizing the respect for participants’human rights, and placing signiﬁcant emphasis on safety. Leveraging
our international clinical infrastructure, we have rapidly expanded ourcapabilities in clinical and regulatory aﬀairs across the U.S., Europe, andJapan. This expansion enhances our core clinical development eﬀorts
and enables us to bring innovative medicines from discovery to latestage development for the beneﬁt of patients worldwide.
We adhere strictly to international and local laws, regulatory
requirements, and ethical principles and standards that govern clinical
trials globally. This includes complying with the GCP standards, aswell as the protocols and trial design speciﬁcations approved byregulatory authorities such as the NMPA, the EMA, the MHRA, the PMDA,
and the U.S. FDA. We also strictly follow internationally recognized
guidelines for ethical clinical trials, such as those developed by theInternational Council for Harmonization of Technical Requirements for
Pharmaceuticals for Human Use (“ICH”), the ICHGCP, China GCP, andDeclaration of Helsinki. By all means, we prioritize the safety, well-being,rights, and ethical treatment of trial participants and have clinical trials
liability insurance to provide protection in this regard76.
We are also dedicated to staying abreast on changes in regulations
across diﬀerent jurisdictions where we conduct research and clinical
trials. SOPs have been established to guide employees at clinicalinvestigative sites in the conduct, management, and reporting of clinicalstudies. These SOPs are regularly reviewed and updated to ensurecompliance with regulations. Employees involved in clinical trials receive
regular training on relevant laws, regulations, SOPs, and other necessary
requirements.
Our Clinical Operations team is responsible for the oversight of the
conduct of clinical studies, including regulated activities performed onbehalf of HUTCHMED by clinical research organizations and suppliers
including coordination and management of clinical study monitoring.
We ensure system compliance and protect sensitive data, such as theuse of biometrics to control user access and permissions, extensive user
training, and electronic safeguards. We make sure the Medical Writingin the Investigational Brochure is current and that identiﬁed safety risks
are incorporated into the Informed Consent Templates. For managing
Adverse Events (“AE”) and Serious Adverse Events (“SAE”) during theclinical trials, our Drug Safety/Product Safety & Pharmacovigilanceteam is there to oversee and communicate relevant, current activities
associated with the safety information derived from clinical trials,
including:

76
77

48

B6 General Disclosure
SASB-BP-210a.2

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Ensuring the establishment and maintenance of a safety quality
system, including procedures, that adheres to applicable compliancerequirements regarding collection, management, monitoring,
analyses, reporting, and surveillance of AEs/SAEs from clinicalstudies and Investigator Initiated Trials, reportable nonclinicalﬁndings, and AEs from post-marketing sources;
Developing and maintaining a Safety Data Management System fordata collection, management, reporting and proactive monitoringof safety information regarding investigational and marketed
HUTCHMED products; andProviding relevant safety concepts/deﬁnitions for inclusion in study
protocols and provide clinical investigators with instructions on how
to report potential SAEs to HUTCHMED.
We maintain open communication with participants, regulatory
authorities, external clinical research partners and study sites to ensuretransparent information sharing.
To ensure qualiﬁed partners involved in clinical trials are selected, our
SOPs outline the criteria for choosing clinical research organizations.
Vendor qualiﬁcation and re-qualiﬁcation processes are regularly
evaluated to ensure eﬀective management of contracted clinicalresearch and adherence to industry standards.
The safety, eﬀicacy, and tolerability proﬁles of our drugs are also
continuously and closely monitored. Our Clinical and Regulatory
Department plays a vital role in monitoring and reviewing experiments
conducted by research organizations, managing clinical data, analyzing
information, and generating reports for all research cases. A global
computerized system, including the electronic Trial Master File (eTMF)
and Clinical Trial Management System (CTMS), is operated to oversee
all clinical trials. This includes assessing potential adverse eﬀects
and managing associated risks. Regular and surprise inspections,coupled with close communication with our partners, allow for prompt
rectiﬁcations if any concerns or abnormalities arise.
During the reporting year, there were no FDA Sponsor Inspections related
to clinical trial management and pharmacovigilance that resulted in (1)Voluntary Action Indicated (VAI) or (2) Oﬀicial Action Indicated (OAI)77.

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTRESULTS AND DISCLOSURE OF
CLINICAL DATA
Sharing clinical trial data in an appropriate manner is critical for
improving the transparency of clinical trials and gaining the trust ofsociety. In line with this stance, we disclose our clinical trial processes
and results to the fullest extent possible and in accordance with theapplicable national requirements governing the disclosure of ongoingclinical trials, and for the submission of results to public registries in
relevant jurisdictions. Irrespective of the location of the clinical trial,
details of our clinical studies and results are publicly disclosed onclinicaltrials.gov , an international database maintained by the U.S.
National Institutes of Health. In China, regardless of clinical trial stages,
we publish our clinical trials details and results to the China Center for
Drug Evaluation of the NMPA website www.chinadrugtrials.org.cn .
In addition, progress reports on ongoing clinical trials are submitted
annually to the relevant regulatory authority and more frequently if SAEs
are detected.
Our SOP on the Management of Serious Adverse Event Reports in Clinical
Trials provides guidance for the collection, processing, evaluation, andsubmission of these reports. Criteria for valid cases, timeframes, roles
and responsibilities, investigations, reporting processes and follow-up
actions are clearly deﬁned. All clinical trials sponsored by us adhere to
the same standards. Procedures are regularly reviewed and updated toreﬂect evolving safety standards to safeguard trial participants.

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Experimental Animals, and the National Guidance for the Use ofExperimental Animals. We employ scientiﬁcally and ethically soundpractices in the breeding and utilization of laboratory animals, actively
enhancing animal welfare and improving their living conditions. We
also prioritize the rights of laboratory animals, continuously explore andreﬁne animal experimentation techniques, and incorporate the principles
of Replacement, Reduction, and Reﬁnement (“3R”) to minimize pain
and mortality. These eﬀorts reﬂect our steadfast commitment to animal
ethics and the protection of animal welfare.

THREE RS PRINCIPLES
Replacement – we actively avoid or seek alternative methods toreplace the use of animal experiments
Reduction – we strictly control laboratory animal usage andfrequency of such experiments
Reﬁnement – we strive to eliminate pain, distress or discomfort
before, during and after the experimental procedures
Our Laboratory Animal Care and Use Committee provides oversight onlaboratory animal welfare and the management of animal experiments
and is directly responsible for monitoring HUTCHMED’s implementationof experimental animals, work plans, and performance. Major
responsibilities of the committee include:
Oversee animal welfare in HUTCHMED’s animal facility;

Over the years, our clinical results have been published in high impact
factor journals such as the Lancet, the JTO Clinical and Research
Reports, the European Journal of Cancer , the Journal of the American
Medical Association , the Journal of Clinical Oncology ; and presented in
global medical conferences such as the global curriculum organised byAmerican Society of Clinical Oncology (ASCO) and European Society of
Medical Oncology (ESMO).
Apart from these, our collaboration with hospitals in clinical trials helps
improve their scientiﬁc research capability and the impact in their
therapeutic areas. The data generated in the trials also served to support
the registrations of our self-discovered drug candidates in both China
and the U.S. markets.

ANIMAL WELFARE
HUTCHMED places signiﬁcant emphasis on preserving ecologicaldiversity and upholds a commitment to refrain from using protectedanimals in our animal experiments. We strictly adhere to all relevant
national or regional guidelines governing the management and useof experimental animals, including the Good Laboratory Practice,
the Regulation on the Administration of Experimental Animals, theAdministrative Measures of Shanghai Municipality on Aﬀairs Concerning

Review and approve Animal Research Protocols;
Inspect the institutional animal care programs and animal facility,
including animal study areas and satellite facilities at least once a
year;
Review the animal resource center’s program for the utilization ofanimals in research at least once a year;
Review and investigate legitimate concerns involving the care anduse of laboratory animals resulting from public and/or employee
complaints;
Suspend an activity involving animals if non-compliance is veriﬁed;
Take corrective action and report non-compliance to funding
agencies; andDeal with all concerns related to laboratory animals in HUTCHMED.

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 49

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

Regular inspections of laboratory animal facilities and ethical reviews
are conducted to ensure compliance with our internal SOPs. In order topromote professional conduct among laboratory animal practitioners,
standardize practices and ensure the highest standards of care forlaboratory animals, mandatory periodic trainings are arranged for themon the management of experimental animals, including feeding andcare.
Our animal facility passed the on-site inspection conducted by the
Association for Assessment and Accreditation of Laboratory Animal
Care (“AAALAC”), and maintained our qualiﬁcation in 2023. We havealso obtained the laboratory animal use license from the Science andTechnology Commission of Shanghai Municipality (STCSM) and passed
its annual and 5-year review.
Furthermore, our contract research organizations (“CROs”) have also
received approval from AAALAC. These accreditations and licenses
demonstrate our diligent treatment to animals and ensure that theexperimental methods employed adhere to rigorous requirements
and standards, particularly in the conservation of natural resources.
They also provide the assurance that we uphold a high level of animal
welfare. With careful experimental design and sophisticated statisticaltechniques, we strive to minimize the number of animals needed for astudy while still getting valid results. Throughout the reporting year, a
total of 11,940 animals were used in internal research activities, while
1,618 animals were used in external research activities.
To foster a culture of compassion within our organization, we have
implemented regular staﬀ training sessions focused on practical workand the ethical treatment of laboratory animals to enhance awarenessand understanding of animal welfare. As part of the onboarding
process, all new employees in our Laboratory Animal Center are
required to undergo training on animal welfare. We acknowledge
and reward individuals who demonstrate exceptional performanceand achievements in laboratory animal care and experimentation.
Conversely, appropriate action will be taken against those who violate
the Company’s rules and regulations pertaining to experimental animals.

PRODUCT QUALITY AND SAFETY78
HUTCHMED considers quality and safety as the foundation for productdevelopment. We established a quality management system withstandards and procedures that cover the whole production andoperation process, as well as the life cycle of products. Strict quality
inspection and risk monitoring system are in place to ensure productquality and safety in order to safeguard the lives and health of patients.

78
79

50

KPI B6.4
SASB-BP-250a.5

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

We strictly abide by the Drug Administration Law of the People’s
Republic of China, Measures for the Supervision over and Administrationof Pharmaceutical Production, the Food Safety Law of the People’s
Republic of China, Good Manufacturing Practices (“GMP”) for
Pharmaceutical Products, and other national and local laws andregulations. The Quality Management System, which incorporates GMP,
Good Distribution Practice, Good Pharmacovigilance Practices, andQuality Risk Management, is operated by competent personnel who
receive regular training. The associated operations are also overseen
and monitored by the Quality Department to ensure proper system
implementation.
During the reporting year, there were also no FDA enforcement
actions taken in response to violations of current Good Manufacturing
Practices79.
We take proactive action to review and enhance our Quality Management
System to ensure product quality and safety throughout our operations.
Existing systems, including the global Electronic Document Management
System, are periodically examined for proper functioning including
documentation and evaluation. Corrective and preventive actions
proposed by departments are required to be handled in a timely manner
to ensure product quality within the control range.
Regular quality audits on research and development, clinical,
manufacturing, and distribution activities are also in place. Findings
and observations are recorded within audit reports and eﬀectively
communicated with relevant departments. Internal self-inspection andacceptance of external on-site inspection, sampling inspection, andcompliance inspections were conducted to ensure there were no serious
or major defects. We are committed to maintaining zero critical ﬁndings
from regulatory inspections. During the year, an average of 100 quality
audits were carried out. We also supported 10 regulatory inspections
and 10 batches of oﬀicial sample checking throughout the year, all ofwhich passed the inspection.
In 2023, no critical ﬁndings have been identiﬁed during the regulatory
inspections.

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)ACCESS TOHEALTHCARE

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Access to
Healthcare

Access to healthcare is one of the central pillars of our sustainability strategy, reflecting our commitment to placing patients at the heart of everything
we do. We strive to address the global challenge of healthcare inequities and improve the accessibility of our innovative pharmaceutical products topatients in need. We believe that sustainability in healthcare lies in the universal access to affordable treatments that can save lives and enhancewell-being, irrespective of geographical boundaries.
In 2023, HUTCHMED demonstrated an unwavering dedication to the Access to Healthcare pillar within our sustainability framework. Recognizing thecritical importance of healthcare accessibility, we prioritized efforts to ensure that patients can access our innovative medicines without barriers or
undue financial hardship. Building upon previous initiatives, we strive to expand our patient assistance programs and forged strategic collaborations
with healthcare organizations and charitable foundations.
Our actions support the following SDGs:

OUR GOALS AND TARGETS80

Aim to increase access to healthcare, especially for life-saving treatments.
Track Progress Target

2023 Progress

To deliver affordable medicines to patients
through initiatives such as NPPs.

HUTCHMED products have entered patient assistanceprograms, expanded access programs or NPPs in mainland
China, Hong Kong and Macau.
TAZVERIK® (tazemetostat) was approved by the HealthCommission and Medical Products Administration of
Hainan Province to be used in the Hainan Pilot Zone, under
the Clinically Urgently Needed Imported Drugs scheme.

80

Reporting Principles 11 (2)HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 51

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Be committed to allowing all patients to access the medicines without
suffering financial hardship.
Track Progress Target

2023 Progress

To continue our efforts on applying for its
medicines to be added to the NRDL.

All three HUTCHMED medicines marketed in
China included in the NRDL. We submitted NDA
to the Japan PMDA for fruquintinib for previously
treated metastatic colorectal cancer in 2023.

2023 HIGHLIGHTSThis year, our partnership with Takeda for the development and commercialization of fruquintinib outside of China has
resulted in significant implications for access to healthcare. Fruquintinib, a highly selective inhibitor with potential in treating
metastatic CRC, is having the opportunity to reach a broader patient population globally. Through Takeda’s expertise andglobal presence in drug development and commercialization, fruquintinib can be made available to patients in various regions
outside of China, including the U.S., and potentially Europe, and Japan where regulatory applications are progressing. The
Takeda Oncology Here2Assist program is also publicly available for FRUZAQLA™ (fruquintinib) patients in need of financial
and other assistance. This partnership is a significant step forward in advancing healthcare equity by ensuring that patientsin different parts of the world have access to potentially life-saving therapies. We also helped Takeda set up their fruquintinib
expanded access program for patients outside of China in 2023.
Separately, all of our three major innovative medicines, ELUNATE® (fruquintinib), SULANDA® (surufatinib), ORPATHYS®
(savolitinib) continue to be included in the NRDL in 2023. ELUNATE® (fruquintinib) and SULANDA® (surufatinib) were approved
to market in Macau following the China NMPA approval, which greatly enhances the accessibility and affordability of innovative
medicines for Chinese patients. Moreover, in January 2024, ELUNATE® (fruquintinib) was approved in Hong Kong as the first
medicine to be approved under the new mechanism for registration of new drugs (“1+” mechanism). CRC was the second mostcommon cancer in Hong Kong in 2021, with about 5,900 new patients diagnosed and associated with about 2,300 deaths.
Furthermore, during the year, TAZVERIK® (tazemetostat) and ORPATHYS® (savolitinib) received approvals and launched in
Macau. Following its approval in the Hainan Pilot Zone in 2022, TAZVERIK® (tazemetostat) has achieved a significant milestone
in expanding patient access to this first-in-class EZH2 inhibitor by being approved and launched in the Macau during 2023. For
patients with epithelioid sarcoma or follicular lymphoma, TAZVERIK® (tazemetostat) offers a potential treatment option thattargets the EZH2 enzyme, inhibiting tumor growth and potentially improving patient outcomes. The approval of TAZVERIK®
(tazemetostat) in both the Hainan Pilot Zone and Macau allows eligible patients in these regions to benefit from this innovative
therapy.
We believe that improving access to healthcare is not only a moral imperative but also an essential component of sustainable
and responsible business practices. By fostering equitable access, we aim to contribute to the well-being and health outcomesof individuals and communities while creating long-term value for our stakeholders.

521. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

AFFORDABILITY AND ACCESS TO
PRODUCTS AND HEALTHCARE81
Our access to medicines strategy involves the launching of new products
and leveraging our research capabilities to improve patient outcomes.
In alignment with our sustainability strategy, we are dedicated to
expanding access to our innovative medicines and medical technologies.
We made investigational products available to seriously ill patients or
patients with a life-threatening disease or illness who have exhausted allavailable treatment options. We encourage clinical trial participation inorder to further the science behind patient care. In the event clinical trial
participation is not available or feasible, when patients do not qualify forclinical trials and have exhausted all available medical options, we may
consider providing an investigational agent outside of a clinical trial,or before it is approved by regulators as part of an individual or groupbased expanded access program.
To address affordability challenges and ensure fair pricing practices
for our products, we consider patient affordability as well as market
research and professional analysis of pharmacoeconomics when
determining pricing for our products. As we do not lead any productcommercialization in the U.S., in 2023 we had no U.S. products that hadchanges in its average list82, or net price compared to the previous year83.
We also apply our new medicines to enter NRDL as soon as they gain
marketing approvals in China.
Through our patient assistance programs, we provided financial
support and assistance to eligible patients, enabling them to access ourtreatments regardless of their financial circumstances. These programs
not only eased the burden of medication costs but also aimed toenhance overall healthcare accessibility. We continuously review these
programs, ensuring they remain responsive to the evolving needs ofpatients and are aligned with best practices in the industry. In addition
to patient assistance programs, we actively engaged in partnerships
with healthcare organizations and charitable foundations, fostering acollaborative approach to address healthcare disparities.
Our ongoing patient access programs in China are a testament to ourcommitment on access to healthcare. In collaboration with the China
Primary Health Care Foundation (CPHCF), we have launched a patient
assistance program (PAP) specifically for SULANDA® (surufatinib). This
program aims to ensure that patients who meet specific medical andeconomic criteria have affordable access to this life-saving medicine.

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Since the program’s inception in 2021, we have made significant
strides in helping patients by donating over 7,630 boxes of SULANDA®
(surufatinib) to 363 individuals as of December 31, 2023. This substantial
donation has resulted in an estimated treatment cost reduction of over
RMB29 million (US$4.1 million)84. By alleviating the financial burden
associated with treatment, we aim to enhance patients’ access to thenecessary medical care they need.
The patient assistance program not only addresses the economic
challenges faced by patients but also ensures improved access to
medical treatment. We firmly believe that all patients, regardless of theirfinancial situation, should have access to life-saving medications.
All three of our in-house medicines are included in Hong Kong’s
NPP since late 2021, demonstrating our dedication to ensuring thatpatients with limited therapeutic options have access to innovative
treatments. We also extended our named-patient early access programfor fruquintinib to Australia in 2022 to reaching patients beyond Hong
Kong and providing access to their therapies in other regions. By working
together, we implemented sustainable activities that aimed to improvemedicine accessibility, educate patients about treatment options, andraise awareness about specific diseases. These partnerships allowed
us to leverage our expertise and resources to make a lasting impact onpatient access to healthcare.
During the reporting year, there were no settlements of Abbreviated
New Drug Application (ANDA) litigation that involved payments and/or
provisions to delay bringing an authorised generic product to market fora defined time period85.

TAZVERIK® (TAZEMETOSTAT) IN HAINANIn May 2022, TAZVERIK® (tazemetostat) in Hainan was approved by the
Health Commission and Medical Products Administration of Hainan
Province to be used in the Hainan Pilot Zone, under the Clinically
Urgently Needed Imported Drugs scheme, for the treatment of certain
patients with epithelioid sarcoma and follicular lymphoma consistent
with the label as approved by the FDA. Launched in 2013 and located in
China, the Hainan Pilot Zone is a destination for international medical
tourism and global hub for scientific innovation, welcoming 83,900
medical tourists in 2020, according to official data.

81

SASB-BP-240a.1
SASB-BP-240b.2
83
SASB-BP-240b.3
842023 average exchange rate 1US$= 7.07RMB
85
SASB-BP-240b.1
82

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 53

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

Under this scheme, Chinese patients are given the opportunity to gain
access to the innovative medicines approved in the U.S., Europe, andJapan, but not yet approved for marketing in mainland China. In thecase of TAZVERIK® (tazemetostat), Chinese patients in urgent need could
be prescribed to the medicine three to five years before its estimatedapproval time in mainland China, thereby greatly enhancing theirchances of receiving innovative treatment, prolonging their survival, andimproving their overall quality of life.
This initiative can help doctors and medical experts gain early access tofirst-hand information about patients who are being treated with thismedicine, allowing them to understand the treatment experience of
epigenetic therapy with EZH2 inhibitor. Moreover, epithelioid sarcoma is
an extremely rare disease with no innovative therapies in development
in China, in part because of the costs involved for such research. This
scheme is the only avenue for such patients to access a novel treatment
for their disease.
In order to improve the affordability of patients, we have launcheda treatment subsidy program through cooperation with a charity
foundation once TAZVERIK® (tazemetostat) entered the Hainan Pilot
Zone. By the end of 2023, a total of RMB5.29 million (US$750,000) was
donated, benefiting 100% eligible patients who have received TAZVERIK®
(tazemetostat) as treatment in the Hainan Pilot Zone. Looking forward,
we will continue to explore the feasibility of entering NPPs in different
regions to expand medicine accessibility and affordability to morepatients in need.

PATIENT ENGAGEMENT AND ADVOCACY
Patient Engagement and Advocacy is a fundamental aspect of ourcommitment to patient-centric healthcare. Recognizing the importanceof empowering and supporting patients throughout their treatment
journey, HUTCHMED has been implementing comprehensive initiatives
to enhance patient engagement and advocacy.

54

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

We place great emphasis on patient education and awareness andbelieve that informed patients make better decisions about theirhealthcare. To that end, we strive to develop robust patient education
resources and materials that provide clear and comprehensive
information about diseases, treatment options, potential side effects,
and self-care practices. These resources are made available to patients,
caregivers, and healthcare professionals through various channels,
including our website, patient support programs, and partnerships withpatient organizations. By empowering patients with knowledge, we aim
to equip them to actively participate in their treatment decisions andimprove their overall health outcomes.
Furthermore, the Group actively engages in patient advocacy efforts
in collaboration with patient organizations and advocacy groups.
We value the insights and perspectives of patient advocates, as they
provide valuable input on the unique challenges faced by patients andtheir families. Through partnerships and participation in advocacy
initiatives, we work to amplify patient voices, promote policy changes
that improve patient care and access to treatments, and raise awarenessabout specific diseases. HUTCHMED seeks to drive positive changes inhealthcare policies and practices, ultimately benefiting patients and thebroader patient community across China.
All in all, through our steadfast commitment to the Access to Healthcare
pillar, we firmly believe that healthcare is a fundamental right, andcontinue to work diligently to ensure that our innovative medicines areaccessible to all who need them, without compromising on quality oraffordability. By fostering partnerships, implementing patient assistanceprograms, and advocating for change, we remain dedicated to improving
healthcare accessibility and making a positive impact on patient
outcomes.

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS86

CLIMATE ACTION

ClimateActionBuilding upon the progress made in 2022, we carried forward our sustainability journey in 2023 with a focus on accelerating our path towards energy
conservation and becoming a net-zero company by 2050. To drive this vision, we conducted a thorough scope 3 screening and measurement along
the value chain with the support of a digital data collection platform.
Our actions support the following SDGs:

OUR GOALS AND TARGETS
To become a net-zero company by 2050 through producing sustainable pharmaceuticalproducts and developing impactful partnerships.
2025 Target872023 Progress

1. To reduce carbon emission intensity by
30% from a 2020 baseline
2. To reduce energy intensity by 10% from a2020 baseline
3. To reduce emission intensity from business
air travel by 10% from a 2019 baseline

Achieved a reduction in carbon emission intensityof 68% in 2023 compared to 2020.
Achieved a reduction in energy intensity of 58% in
2023 compared to 2020.

Carbon Emissions Intensity

Energy Consumption Intensity(tCO2e/USD'000 revenue)

0.03

0.14

0.025

0.12

0.02

0.1

0.015

0.08

-68%

0.01

86
87

-58%

0.06
0.04

0.005
0

(GJ/USD'000 revenue)

0.16

0.02
2020

2021

2022

2023

0

2020

A1 Emissions; A2 Use of Resources; A3 The Environment and Natural Resources; A4 Climate Change
KPI A1.5; KPI A2.3

2021

2022

2023

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 55

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Setting Realistic Targets
As part of our assessment of the air travel emissions, we are reassessing our air travel emission
reduction target to ensure it aligns with our operational realities and business needs. By setting realistic
and achievable targets, we aim to maintain momentum and drive continuous improvement in oursustainability performance. We therefore have moved from an absolute target to an intensity-based target
per full-time employee.
There was a slight 2.4% overall decrease in emissions intensity (per full-time employee) from business air
travel in 2023 compared to 2019. We will continue to track and monitor our air travel emissions against our
set target.

To further enhance our management of our carbon footprint from air travel, we intend to continuously enhance and deepen our mitigation measures,
as such we plan to:
Review our travel policies: We are conducting a thorough review of our travel policies and procedures to identify additional opportunities for
optimization and further promotion of sustainable travel practices.
Enhancing employee engagement: We are intensifying our eﬀorts to engage and educate employees about the importance of reducing air
travel emissions and the role they play in achieving our sustainability goals.
Establish an internal departmental travel budget: The internal travel budget sets a cap for business travel within a speciﬁed period.
The budget is calculated based on the emission reduction target and will provide a clear framework for allocating budgets and tracking progress
towards our reduction targets.

Business Air Travel Emissions Intensity
We acknowledge the challenges we have faced in progressing on our air travelemission reduction target; however, we remain committed to addressing this issue
and taking proactive measures to improve our performance. By learning from ourexperiences, engaging stakeholders, and implementing eﬀective mitigation measures,
we are conﬁdent that we can make meaningful progress towards our set targets.

(per full-time employee)

-2.4%

450
400

kgCO₂e/FTE

350
300
250
200
150
100
50
0

2019
Baseline

2020
Actual2021
Actual2022
Actual2023 HIGHLIGHTS
Continued working towards environmental targets on carbon and energy reduction to accelerate the sustainability journey.
Introduced “Climate Action” as one of the pillars within HUTCHMED's five Sustainability Pillars.
Conducted a comprehensive scope 3 emissions data screening and measurement.
Leveraged a digital data collection platform to enhance environmental data quality and accuracy.

56

2023
Actual1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

CLIMATE RESILIENCE AND CLIMATEACTIONPOLICIES AND MANAGEMENT SYSTEMS88
The Group strives to reduce environmental impacts and foster positive
behavioral change across all levels of operations by integrating
sustainability into all facets of our value chain. We have establishedthe Sustainability Policy and Environmental Policy , as well as a
dedicated EHS Team to demonstrate our environmental commitment
and approaches to sustainability.
Our policies and internal guidelines are regularly reviewed and updated
to ensure the eﬀectiveness and relevance. We conduct regular audits
to assess the compliance with established procedures and regulationsat our operational sites. Operational sites are required to develop andimplement corrective action plans for areas in need of improvement,
and we closely keep track of the progress. To ensure comprehensive
management of EHS risks, sustainability considerations are embedded
early in the project planning phase. In planning facilities or installations,
we adopt “the three parallels” management strategy that considers
pollution and emission prevention measures in the design, construction,and operational phases.

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

The climate risk assessment risks for our key operational locations(Shanghai, Suzhou, Hong Kong and U.S) covered an analysis ofclimate-related, including both physical and transition risks, alongside
the potential ﬁnancial impact under two science-based climate
scenarios: one where average temperature increases by 4° C (brownscenario) and one where average temperature increases are kept tobelow 2° C (turquoise scenario). The identiﬁcation and assessment ofclimate-related risks has been integrated to our existing ERM framework
for improvement in the integration of sustainability risks. For the physicaland transitional risks identiﬁed, please refer to Action on Climate Risks
in 2022 Sustainability report.
In 2023, we stepped up our commitment and eﬀorts to address thesustainability risks and achieve the relevant targets set building on the
climate risk assessment conducted in 2022. We maintain continuous
monitoring of the identiﬁed risks to stay informed and responsive tochanges in the risk landscape, and to ensure our strategies and initiatives
align with our sustainability objectives.
For more details of our TCFD disclosure, please refer to Action on Climate
Risks in our 2022 Sustainability report.

BUSINESS AIR TRAVEL EMISSIONS

We comply with relevant national and regional environmental laws
and regulations in regions where we operate our business. There wereno signiﬁcant cases of non-compliance against environmental related
legislations within the reporting year.89

We recognize that air travel is an important contributor to our carbon
footprint and acknowledge the need to mitigate its environmental
impact. However, we acknowledge that we have faced challenges inmeeting our air travel emission reduction target, and we are transparently
addressing this issue.

ADDRESSING CLIMATE RISKS90

These challenges include:

In 2022, we took proactive eﬀorts to building climate resilience byconducting a comprehensive climate risk assessment to identify
climate-related risks and opportunities that impact our business. The Board
has the ultimate responsibilities and oversight of the physical andtransitional risks and opportunities posed to HUTCHMED by climatechange. A four-tier sustainability governance structure withcross-functional membership has also been established to eﬀectively
manage and govern the climate initiatives of the Group.

Increased business travel: Due to factors such as businessexpansion, and project requirements, our overall volume of air travel
has increased, resulting in higher emissions than anticipated.
Limited adoption of alternatives: While we have encouraged
alternatives to air travel, such as video conferencing, the widespreademissions reduction has been lower than expected.
Operational constraints: In some cases, operational constraints,
such as limited availability of alternative transportation options,have hindered our ability to reduce air travel emissions eﬀectively.

88

A1 Emissions; A2 use of Resources; A3 The Environment and Natural
Resources; A4 Climate Change
89
A1 Emissions
90
KPI A3.1; A4 Climate Change; KPI A4.1
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 57

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSRegardless of the challenges, we remain committed to addressing
emissions from air travel and have reacted by implementing mitigation
measures to improve our performance. Key actions we are taking
include:GREEN MANUFACTURING AND OPERATION92

By encouraging remote communication, we reduce the frequency of
ﬂights and associated emissions.

Our Suzhou factory’s chiller water pumps are currently operating on
a 2+1 standby conﬁguration with ﬁxed-frequency pumps. To achieveenergy savings, we are planning to convert one of the pumps tovariable frequency, with an estimated savings of 93,437 kWh in ayear.

We have updated our travel policies and procedures to promote theuse of low-carbon modes of travel. This includes selecting trains
over airlines for short- to medium distance travel.
We set internal travel budget for all departments for business travel
within a speciﬁed period. The travel budget is calculated based on
the emissions reduction target and will provide a clear framework
for allocating budget and tracking progress towards our reduction
targets.
We provide training and awareness programs to educate employees
about the environmental impact of air travel and the importance of
reducing emissions.

CLEAN AND LOW-CARBON OPERATIONS91
We strive to strengthen our resilience in response to climate change
impact and established appropriate procedures and processes tominimize the environmental footprint associated with the impactsof climate change in our pursuit of high-quality products. Thus, we
proactively seek out innovative ways to improve energy eﬀiciency to
reduce resource consumption from our day-to-day operations.
To eﬀectively manage the physical and transition risks fromclimate-related events such as extreme weather patterns, our Shanghai
and Suzhou manufacturing plants have implemented robust business
continuity planning and emergency response planning. These involves
strategies to minimize disruptions, procedures to maintain essential
operation, protect critical infrastructure and foster emergency
awareness. The business continuity plan and emergency response
plan are communicated to all levels of employees to promote theculture of preparedness and resilience within the Group. They are also
regularly reviewed for the relevance and eﬀectiveness with the change inenvironmental landscape and regulatory requirement.

91
92

58

KPI A4.1
KPI A2.3

We have implemented various initiatives in our manufacturing sites
aiming to reduce energy consumption and GHG emissions, for instance:

The heating of our air-conditioning system in the workstation isswitched from the original electric boiler to municipal steam heating
and resulting in a 27% energy reduction.
Centralizing the air conditioning system in all oﬀices andmanufacturing sites, and gradually replacing the existing lighting
ﬁxtures with energy-eﬀicient LED bulbs to minimize electricalconsumption.
Activated carbon ﬁlters have been incorporated into the laboratory
exhaust system and wastewater treatment facility to reduce theemissions of volatile organic compounds (VOC) and organic exhaustgases.
Electric vehicles and public transportation for daily commute is
encouraged. Dedicated charging stations are reserved for electricvehicles in our Shanghai manufacturing site, contributing to the
reduction of greenhouse gas emissions.
To minimize the air emissions generated from our operation, we haveestablished strict protocols to ensure compliance with applicableregulations and emission standards in the areas where we operate. For
example, we conduct regular maintenance on the air pollution control
devices and real time monitoring over emissions of pollutants to better
control the impact of our air emissions. We respond to diﬀerent weather
warning signals through speciﬁed operational arrangements to control
the amount of emissions discharged into the atmosphere. Moreover,
we have invested in clean technologies including installation of higheﬀiciency scrubbers to reduce VOCs emissions and an upgrade of theboiler system to reduce nitrous oxide emissions.

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Discovering the use of enzyme-catalyzed reactions to reduce hazardous wastes and water usage
In recent years, through the research and use of enzyme-catalyzed reactions in
the manufacturing process of the starting materials for savolitinib, a signiﬁcantamount of by-products such as the emission of greenhouse gas, wastewater, andorganic solvent, were reduced.
Through ongoing R&D, we focused on developing enzymatic reactions, because
they not only oﬀer high chemical selectivity to speciﬁc transformations suchas high chiral purity, but they are also highly environmentally friendly. The
manufacturing process is less energy intensive as reactions take place at room
temperature. Moreover, no heavy metal catalysts and much less organic solvent
usage is involved, reducing water waste treatment at the same time.

Organic Solvent per KG
140
120
100

-30%

80
60
40
20

With the prior chemical process using solely organic solvent, 121.8kg of raw input0
Chemical synthesis
material was needed to prepare 1kg of the desired product. By incorporating
an enzymatic reaction, only 87.5kg of raw input material is needed to prepare
the same amount of product. Switching from chemical synthesis to enzymaticsynthesis in this speciﬁc manufacturing process has greatly reduced the Process Mass Intensity (“PMI”) by almost 30%.

Enzymatic synthesis

Looking forward, we will continue to work on the optimization of the enzyme to improve eﬀiciency and the process to reduce solvent and water
usage.

Installation of Solar Panels at Shanghai Site Delivering Clean Energy
In response to the national carbon peak and carbon neutral policy, solar panels have been installed at our Shanghai site to generate renewableenergy for our daytime operation. The use of renewable energy signiﬁcantly reduces electricity usage and greenhouse gas emissions,demonstrating our commitment to sustainable practices and environmental stewardship.
Project Overview
Operation started in Sept 2023
Installation capacity: 112kW-peak, 1,000 sq. meters (200 panels on the roof top of Manufacturing
Building 1), with a service life of 25 years
Provide low-cost power supply during the day; reduce indoor temperature and subsequently indoor
energy consumption
Power generation forecast: 120MWh in the ﬁrst year, and 2,830MWh in 25 years (1 MWh = 1,000 kWh)
Reduction in electricity fees: average saving of ~US$17,500 per year, and a total saving of ~US$400,000
in 25 years

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 59

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSSCOPE 3 SCREENING AND MEASUREMENT93
We are committed to advancing healthcare while minimizing environmental impact – as such we recognize the importance of addressing Scope 3
emissions to further accelerate our sustainability journey. In this section, we provide an overview of our approach to measuring and managing Scope
3 emissions, reﬂecting our commitment to sustainability across the value chain.
Scope 3 emissions in the pharmaceutical industry encompass various indirect greenhouse gas emissions associated with activities such as
procurement of raw materials, distribution of products, or fuel- and energy-related activities. These emissions extend beyond our direct operations
and are crucial for understanding our overall environmental footprint.
In 2023, we have completed a two-step approach to identify, measure, and manage Scope 3 emissions. As a ﬁrst step we identiﬁed and categorized
our Scope 3 emissions across our value chain. This involved conducting a thorough screening assessment of indirect Scope 3 emissions sources,
including but not limited to purchased goods and services, capital goods, business travel, employee commuting, and transportation and distribution.

Scope 3 Screening
Identify significant Scope 3 categories by Screening

Scope 3 Measurement
Collection of more specific activity data after
analyzing the screening results

In a second step, we worked closely with our suppliers and service providers to collect relevant HUTCHMED activity data on Scope 3 emissions
using standardized reporting protocols. This data went through internal veriﬁcation processes to ensure accuracy and reliability. Once collected,
we quantiﬁed the Scope 3 emissions using industry-standard methodologies and emission factors. Emissions associated with each category were
quantiﬁed using a hybrid approach of emission factors, activity data, and conversion factors, ensuring accuracy and consistency in our calculations,enabling us to analyse emission hotspots and identify opportunities for emissions reduction throughout our value chain. The below 2023 Scope 1-3
GHG inventory is based on a thorough review of HUTCHMED’s assets, facilities and operations, following the GHG protocol94.

Scope 3 Data Collection Method - Hybrid Method (I+II)

Increased Data Quality= Increased Accuracy + Better Control

Supplier- specificmethod (verified)

93
94

60

KPI A1.1
KPI A1.1; KPI A1.2

I

Supplier-specificmethod(unverified)

Physicalactivity
based data

Average date method

II Spend-based method

Economicactivity baseddata1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Scope 1 & 2 Emissions - 6,960 tCO2e (8.8%)

HUTCHMED
Scope 1-3
Emission ProﬁleScope 3 Emissions - 71,812 tCO2e (91.2%)

Scope 3 is 91% of our overall emissions. By categorizing our Scope
3 emissions into distinct categories, we aim to provide stakeholders
with a comprehensive understanding of our environmental impact
across the entire value chain. Our Scope 3 emissions are categorized
into distinct categories, each representing diﬀerent sources of indirectemissions across our value chain.

5.90%

HUTCHMED
Scope 3 Emission
Proﬁle80.91%

Category 1

80.91% - Purchased Goods and Services

Category 8

5.90% - Upstream Leased Assets

Category 6

4.41% - Business Travel

Category 2
Category 7

3.09% - Capital Goods
2.36% - Employee Commuting

Category 3

2.29% - Fuel-and Energy-related Activities

Category 4

0.52% - Upstream Transportation and Distribution

Category 9

0.48% - Downstream Transportation and Distribution

Category 5

0.04% - Waste Generated in Operations

Category 12 0.00% - End-of-Life Treatment of Sold Products95

Within our Other Ventures, our Hutchison Sinopharm consolidated joint venture provides logistics and distribution services in China, and, as such, our
Scope 3 Category 1 (Purchase Goods and Services) includes a very substantial amount of third-party goods that are others’ business. These are thelargest component of our Scope 3 Category 1 emissions (47%). Emissions from our CROs and utilities came as the second and third largest emitters,
contributing 19% and 12% to Category 1 respectively.
Moving forward, we understand that the process of measuring Scope 3 emissions is an ongoing journey. Despite our eﬀorts to enhance data collection
and quality, we acknowledge persistent challenges concerning data availability and consistency. Regardless of the challenges, we continue to placesigniﬁcant importance on collaborating with our suppliers, industry peers, stakeholders, and regulatory bodies to collectively tackle these challenges.
By fostering collaboration, we aim to improve data transparency, data quality and drive collective action on Scope 3 emissions. Our commitment tocontinuous improvement remains steadfast as we strive to reﬁne our approach to measuring and managing Scope 3 emissions.
We also stepped up eﬀorts to streamline the data collection process via a digital data collection platform. As part of a commitment to reducing thecarbon footprint, we strive to continually enhance and monitor our emission proﬁle through digitalization.

95

Third-party goods which are part of the Hutchison Sinopharm logistics and distribution services are excluded from Category 12 End-of-life Treatment of Sold
Products, because HUTCHMED is not involved in any processing or value-add work on these products and therefore these products are considered final
goods by the third parties. Scope 3 emissions from the distribution services have been included in Categories 4 and 9.
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 61

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTWASTE AND PACKAGING96
We are committed to enhancing resources eﬀiciency, including
energy, water and promoting circular economy across our day-to-day
operations. Hazardous materials and chemicals are used in our research
and manufacturing processes. To reduce our environmental footprintarising from the disposal of hazardous substances, we take a robust
approach to waste management. Regular safety training is provided toour employees to ensure they are equipped with necessary knowledge
in proper handling waste and mitigating negative impacts.
Our commitment to responsible waste management is a fundamental
component of our environmental management system. We incorporate
circular economy principles throughout our product’s life cycle, fromsourcing, design, production to distribution. In 2023, we generated a totalof 106 tons of hazardous waste, at a hazardous waste intensity of 0.000126
tons/US$’000 revenue97. Speciﬁcally, there was an overall decreaseof 65% in activated carbon generated from our factory showing ourcommitment to sustainability and environmental protection. We strive
to minimize our operational waste from our sites, and we continually
track and monitor our progress in the pursuit of an appropriate waste
reduction target.

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Hazardous wastes generated from our manufacturing processes include
waste solvents, waste lubricants, waste drugs, and other types ofregulated waste. To prevent chemicals that can cause aquatic damage
from entering the drainage system, our process water undergoes strict
wastewater treatment processes before discharging into the municipal
sewage system. Wastewater containing heavy metal and phosphorus arecollected and disposed of as hazardous waste. To prevent any potential
land contamination, we have established designated hazardous waste
storage areas equipped with labelled spill and leak-proof containers forproper storage and handling at operational sites. Furthermore, qualiﬁed
external contractors are appointed to collect, handle, and dispose of
our waste to ensure they are managed in compliance with relevant
regulations.
To ensure the eﬀectiveness and eﬀiciency of our waste management
procedures, scheduled and spot checks are conducted regularly on ourown processes as well as those performed by contractors and suppliers.
Our EHS team maintains ongoing compliance at operational sites andwill implement any necessary corrective actions for areas in need of
improvement. Relevant records are properly retained as mandated byrelevant regulations and authorities.

Various initiatives regarding waste reduction have been implemented across all operations:
Recycling bins are placed in all oﬀices encouraging the recycling of paper, plastic bottles, aluminium cans.

With our colleagues dedication and participation, we saw signiﬁcant increase in recycling amounts compared to last year:

195%

increase on
total waste recycled120%

increase on
paper recycled

76%

increase on
printer catridges recycled

We signed a resource recovery agreement for our Suzhou factory with suppliers to collect crapped printing and packaging
materials for recycling.
Bottled water are gradually replaced with direct drinking water dispensers across oﬀices and factories.

Carbon adsorption treatment facilities were introduced to factories and laboratories for the treatment of organic waste gas toreduce VOC emissions.

96
97

62

KPI A1.3; KPI A1.4; KPI A1.6
KPI A1.3; KPI A1.4

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

Non-hazardous wastes, or general wastes are those that are generated
from our oﬀices and manufacturing operations. We proactively explore
opportunities to recycle our wastes as part of our waste reduction eﬀorts,
for instance, we avoid the consumption of bottled water and added three
direct drinking water dispensers to reduce plastic waste. In 2023, wehave managed to recycle 1,105 kg of plastics and 345 kg of metals. There
was a signiﬁcant increase of 120% in recycled paper due to our improved
initiatives on paper recycling and saving. We have also signed a resource
recovery agreement for scrapped printing and packaging materials to
support circular packaging and resource recycling.

WATER USE98
We aim to promote water eﬀiciency and water conservation within ouroperations as it is a vital resource for processes at our operational sites
including cleaning and cooling. As such, we have rainwater harvesting
system installed in our manufacturing sites to collect rainwater for
cleaning purposes. Wastewater treatment facility is in place to ensure
eﬀicient water use and minimize eﬀluent discharge. While we are notaware of any challenges in sourcing water, we continuously undertake
several initiatives to improve water use in the pursuit of water eﬀiciency
targets. For example, we have invested in equipment such as thecondensate recovery system and puriﬁed water recovery system
to improve water eﬀiciency and reduce water consumption. Water
consumption of operational sites are regularly monitored and assessed
to identify any abnormal water usage for further investigations. In 2023,
we consumed a total of 25,747 cubic meters of water99.
Eﬀluent discharge from our laboratories and production facilities have toundergo wastewater treatment to ensure the water quality complies withall local laws and regulatory standards. We have appointed a qualiﬁed
third-party contractor to conduct regular testing and monitoring on
chemical oxygen demand (“COD”) and ammonia nitrogen concentrationsof the treated wastewater from the laboratories. Within the reporting
year, 22,483 cubic meters of wastewater was discharged.

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

We put great emphasis on environmental and social responsibility insupplier selection during procurement and avoid engaging supplierswith high EHS compliance risks and prioritize suppliers that proactively
undertake environmentally friendly initiatives such as being certiﬁed
with ISO14001 on environmental management systems. We also seekout suppliers who share our commitment to responsible sourcing.
This involves ensuring that raw materials and components used in our
products are obtained from sustainable and ethical sources. We work
closely with suppliers to trace the origin of materials, promote fairtrade practices, and minimize the environmental impact of our supply
chain. We also collaborate with suppliers to reduce the use of materials
and resources in the outsourcing of pharmaceutical intermediatesand APIs, particularly in reducing energy consumption and the use oforganic solvents. All existing and potential suppliers involved in major
procurement categories undergo an annual assessment to evaluate theirperformance against standardized criteria. These criteria encompass
various indicators, including quality performance, environmental
protection, supply consistency, and alignment with our business
operations. Through rigorous evaluation and scoring, we carefully
review each supplier to ensure they meet our stringent standards andrequirements. When material quality issues arise or signiﬁcant changes
occur in production conditions, processes, quality standards, andinspection methods that may aﬀect product quality, we actively conduct
relevant on-site quality audits.
Furthermore, to foster sustainable living style within consumers,
recyclable packaging materials and minimal packaging principle havebeen used for all products under the brand ÉCOLLIE, where we haveincluded sustainability messages in the packaging to assist consumers
on making informed decisions on sustainable consumption.

PRODUCT SUSTAINABILITY100
We are committed to implementing responsible sourcing practices
throughout our operations. We support our operational teams in
embedding sustainability considerations into the procurement process.
Where suitable options exist, wereduce the use of virgin materials;
avoid single-use disposable items and replace them with durable
and reusable and/or recyclable alternatives;
minimize the use of packaging;
reduce the use of hazardous substances; andadopt speciﬁcations for greater energy eﬀiciency, water eﬀiciency
and clean technology.
98

KPI A2.2; KPI A2.4
KPI A2.2
100
KPI B5.4
99

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 63

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSHUMAN CAPITAL101
MANAGEMENT

Human
CapitalAs a people-centric company, we attract, build and retain a professional team with top talent. The diverse development of our employees isprioritized, and we strive to create an equitable and inclusive workplace that fosters productivity, satisfaction, and talent retention for all who workin HUTCHMED. We also respect and protect the legitimate rights and interests of our employees, promote internal communication channels andcontinuously improve occupational health and safety across all locations.
In 2023, we remain committed to talent development through the implementation of the new Talent Development Strategy and an enriched e-learning
platform, aiming to enhance employees’ career development and competencies building. Employees’ satisfaction at HUTCHMED, as shown in 23
dimensions in a company-wide employee survey, has improved greatly and surpassed the Pharma Industry Benchmark scores.
Our actions align with the following SDGs:

2023 HIGHLIGHTS
A 3E (Empower, Execute, Excel) Leadership Framework was launched in 2023, establishing a clear and comprehensive
leadership model for the company; and providing guidance for the learning and development of employees and managers
to extend our mindset, and upgrade management capabilities comprehensively to support achieving HUTCHMED’s
strategic goals.
An employee engagement survey – “Your Voice 2023” recorded a 96% response rate from all employees across all
operations, providing the Group valuable input in an anonymous way.
A Diversity, Equity and Inclusion Team was established in 2023, bringing together different levels of colleagues fromvarious departments to represent our employees to provide feedback to leadership regarding employee needs andconcerns, and promote ONE HUTCHMED culture through various initiatives.

101

64

B1 Employment; S6; G1

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSOUR GOALS AND TARGETS102
Be committed to be an ethical, open and inclusive company.

2025 Target

2023 Track Progress Target

To achieve gender equality for middle
management and above.

HUTCHMED works towards further strengthening
our board diversity in the coming years.

2023 Progress
The gender diversity of the total workforce and management stood highly balanced.
Overall gender ratio (Male to Female): 47:53
Management103 gender ratio (Male to Female): 46:54
Board gender ratio (Male to Female): 78:22

PROMOTING DIVERSITY, EQUITYAND INCLUSION104
Diversity, equity and inclusion principles have been implemented acrossall business operations. We aim to foster an inclusive culture, startingwith an inclusive leadership structure. Regular workshops and forums
are organized to raise awareness of unconscious bias and the value of
diversity within our workplace and communities.
As a committed equal opportunity employer, we welcome individuals ofdiverse ethnicities, races, religions, cultures, genders, gender identities,
sexual orientations, ages, abilities and opinions. We strive to create apositive and inclusive environment where employees feel valued andrespected, enabling them to fully realize their potential and contribute
their unique skills and talents. As such, we have implemented annual
trainings that aim to reﬂect anti-discrimination values and promoteequal opportunities and diversity in the workplace.

Consistent with our diversity, equity and inclusion commitment, we
remain focused on improving gender equality in our workforce. We
ensure that hiring managers have access to a diverse pool of candidates
whenever possible. Our Code of Ethics and Employee Handbook outline
our standards and expectations for fair employment opportunities,
including our joint venture companies. Regular reviews of our talent
policies are conducted by our Human Resources Department toensure compliance with legal requirements and maintain employee
engagement. We remain committed to enhancing our diversity, equity
and inclusion performance, exceeding regulatory compliance standards.
Demonstrating our commitment to diversity, equity and inclusion within
our workplace, the HUTCHMED Diversity, Equity and Inclusion Team wasestablished in 2023, bringing together diﬀerent levels of colleagues fromvarious departments to represent our employees to improve employee
engagement and satisfaction. Responsibilities of the committee include
providing feedback to leadership regarding employee needs developing
and promoting the ONE HUTCHMED culture through various initiatives.

102

Reporting Principles 11 (2)Includes Executive, Senior and Middle Management104
B1 General Disclosure
103

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 65

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSINTERNATIONAL WOMEN'S DAY
As an equal employer, we are committed to creating the best
workplace for employees and encouraging and advocating
diversity, equity, and inclusion in every facet of our business.
Every year, we celebrate International Women’s Day at
HUTCHMED on March 8 to express our gratitude to all female
colleagues in diﬀerent positions for their dedicated work.
In 2023, our female colleagues spent a pleasant afternoon on
International Women’s Day by attending a movie event organizedby the Company. A series of rich online courses surrounding thetheme “Women in Workplace” were also arranged for our female
colleagues’ skillsets empowerment.

WORKFORCE DIVERSITYAs of the end of 2023, the Company employed a total of 1,991
individuals, with close to 100% of our staﬀ working on a full-time basis.
We strive to promote gender equality across all hierarchical levels,
particularly in management positions. Notably, women constitute asigniﬁcant 53% of HUTCHMED’s workforce, exceeding the representationof men in both managerial and non-managerial categories. 55% of our
middle management team consists of women, clearly demonstrating
our commitment to maintaining gender equality at the general staﬀ
and middle management levels. 25% of our executive and senior
management roles are also held by women. We will continue to work
towards increasing executive and senior management diversity. Female
representation in the Board stands at approximately 22% (two out ofnine), which is above average amongst companies listed on HKEX. We
actively seek to ensure it has an appropriate mix of diversity and has anumber of initiatives in place to meet its strategic imperative of ensuring
it has a diverse Board.

TALENT ACQUISITION AND
RETENTION105
We have established a set of comprehensive human resources policies
that serve as a guiding framework for our talent acquisition eﬀorts. These
policies adhere strictly to all relevant rules and regulations pertaining to

105
106

66

B1 General Disclosure; SASB-BP-330a.1
Local employees refer to employees hired in Hong Kong and mainland
China.

recruitment, termination, compensation and promotion, ensuring equal
opportunities, non-discrimination, non-harassment, diversity, working
hours, rest periods and other employee beneﬁts in the countries/regions
where we operate.
To attract top-tier talent and expand our pool of skilled individuals, we
utilize diversiﬁed recruitment channels and regularly organize campus
recruitment events.
In 2023, we are proud to have maintained a hiring rate of 100% from local
communities, well demonstrating our support to local employment106.

COMPREHENSIVE BENEFITS AND
REMUNERATION
Fair and competitive compensation packages play a crucial role inattracting and maintaining skilled talent, thereby strengthening ourhuman and organizational capital. We oﬀer comprehensive beneﬁtplans to all our employees, encompassing medical and social insurance,
housing allowances, retirement schemes, discretionary bonuses, andleave entitlements. We regularly review our beneﬁts to employees.
Among others, life insurance, annual leave optimization, expanded
medical coverage, enhanced lunch allowances and nursery rooms haveall been upgraded as a result. This ensures that our employee beneﬁts
are competitive with market standards. Employees are entitled to adiverse range of holidays, including national holidays, statutory annual

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

leave, casual leave, paid sick leave, maternity leave, parental leave andcompassionate leave. We also provide equitable treatment including
severance pay and beneﬁt continuation for involuntary terminations topromote continued employability and career planning.
A dedicated remuneration department has been established forformulating and supervising our remuneration packages. We arecommitted to maintaining our competitive edge by providing our
professionals with competitive remuneration packages that areat or above market median levels. These equitable remuneration
packages are aligned with market benchmarks and are tailored basedon employees’ performance and capabilities. The remuneration
structure encompasses various components, including basic salary,
performance-related bonuses, allowances and incentive plans. Since
2005, we have implemented share option schemes along with otherreward and recognition opportunities such as the Long Service Awardand the Long-Term Incentive Plan (LTIP), which aim to recognize andappreciate our employees’ dedicated contributions. In addition, ourjoint ventures oﬀer performance-based bonuses to sales representatives
as a further incentive. Transparency is maintained through monthly pay
slips and annual salary adjustment letters to promptly and accurately
communicate any changes in compensation. We also regularly conductsalary review meetings to address any inquiries regarding compensationand to gather employees’ feedback and suggestions.
We also motivate employees through non-monetary incentives suchas employee recognition and reward programs which aim to recognize
those who have demonstrated outstanding performance, innovation andcontinuous improvement in their daily work. These awards, presented
at our annual event, include Outstanding Employee Award, ProjectAward, Excellent Team Award, Annual Collaborative Award, Annual
Eﬀicient Award, Annual Pragmatic Awards, High Performers; and longservice awards including 10-Year Service Award, 15-Year Service Award,
and 20-Year Service Award. In 2023, a CEO Award was also presented toan outstanding employee and an outstanding team in recognition of
their exceptional contributions to the Group. Every award is recognitionof employees’ eﬀorts and achievements, and appreciation of theircontributions to the Company.

Employee Awards Presentation

Using work performance as the fundamental criterion for evaluating
employees’ work output and abilities, we continuously reassess
our appraisal mechanism to guarantee a fair and impartial working
environment for all employees. During the reporting year, all employees
completed their regular performance and career development reviews.

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 67

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSCHILD LABOR AND FORCED LABORSTAFF TRAINING

E-Verify is a crucial tool that we utilize to ensure the eligibility of ouremployees to work in the regions we operate. Beyond the conﬁrmationof work authorization, it also serves as a means of verifying the age of
our incoming workforce. At the time of onboarding, every employee goes
through this rigorous veriﬁcation process. This is not just a compliancemeasure; it’s a commitment to ethical business practices.

All newly hired employees are required to participate in our on-boarding
training program. For our current workforce, we oﬀer a diverse range ofe-training courses, covering both contemporary regulatory requirements
and the latest industry best practices. These courses are accessible
on our e-learning platform, allowing employees to study at theirown convenience. Moreover, we encourage our employees to attend
academic lectures, industrial conferences, and forums to broaden theirperspectives and achieve professional excellence. Furthermore,cross-border resources and third-party contracting resources are utilized
to meet the workforce demands and address skill deﬁciencies within the
rapidly evolving healthcare sector.

By ensuring age veriﬁcation, we aim to eﬀectively eliminate any
possibility of employing individuals below the legal working age. This
helps us to protect young individuals from the dangers of child labor andensures that our workforce consists of individuals who are capable ofmaking informed decisions about their employment. Moreover, E-Verify
also helps us prevent the use of forced labor. By conﬁrming the voluntary
willingness of employees to work, we ensure that no one is coercedor forced into employment against their will. This is a crucial step inensuring that the Company adheres to the highest ethical standards andrespects the rights of every individual employed with us.

TALENT DEVELOPMENT AND
ENGAGEMENT107
We place signiﬁcant emphasis on staﬀ training and development,
recognizing its crucial role in enhancing work performance andpersonal capabilities. To foster a culture of continuous learning, weoﬀer promotion and job rotation opportunities to our employees,
enabling them to broaden their skill sets and gain valuable experience.
Furthermore, we provide diversiﬁed training programs tailored to
the needs of employees at all levels. In 2023, our Academic Learning
Committee organized a comprehensive array of academic lectures.
These lectures aim to oﬀer employees diverse learning opportunities andbetter support their professional growth in the ﬁeld of new drug researchand development. Our online training platform, Harvard ManageMentor,
oﬀers management-level employees access to hundreds of courses
provided by the Harvard Business School for enhancing their knowledge
and skills.

107

68

B3 Development and Training, KPI B3.1-B3.2

We understand that leadership is a crucial driving force for enhancing
organizational eﬀiciency and creating enterprise value. As such, we
continuously strive to improve leadership capabilities and overall
competitiveness by acquiring new knowledge and skillsets. In 2023, theCompany established and launched the “3E Leadership Model”, from
Empower (leveraging talents) to Execute (strategic execution) and Excel(excellence and win-win), which provides a clear and comprehensive
leadership development system. This model serves as a guiding
framework for the learning and development of employees andmanagers, fostering an innovative management mindset and enhancing
overall management capabilities. As it is successfully implemented, it
will undoubtedly pave the way for personal career development andsustainable enterprise growth.
Beyond conducting annual training to ensure comprehensive
interventions for competency enhancement and professional
knowledge development, we also provide support and sponsorship for
employees to participate in external training courses, fully funded by theCompany. This is done to foster a culture of continuous learning. As of
December 31, 2023, all employees received training throughout the year,
accumulating a total of 42,419 training hours.

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Unit

Male

FemaleAverage training hours

Hours

22.0

20.7

General employees

Hours

20.8

Middle management

Hours

21.8

Senior management

Hours

24.0

Employee training hours in 2023

Percentage of employees trained in 2023
Trained employees

%

100%

100%

General employees

%

100%

Middle management

%

100%

Senior management

%

100%

COMMUNICATION WITH EMPLOYEESWe place signiﬁcant emphasis on engaging our employees actively. Our Employee Handbook serves as a key resource to ensure high transparency
in communicating our policies, internal reporting procedures, and expectations to all our staﬀ. In 2023, we also welcomed the launch of our ﬁrst
culture handbook, laying out our Group-wide mission, vision, and values. Regularly conducting employee engagement surveys plays a pivotal role ingathering feedback on employee needs, concerns, and opinions.
To foster open communication, we have a diversiﬁed communication mechanism between employees and senior management. One example isour town hall meetings, which are frequently held for employees to share their ideas and receive timely responses. Furthermore, our joint venturescollaborate closely with labor unions to ensure that the voices of our employees are heard and addressed, fostering a positive work environment.
Drawing from the valuable feedback of the Group-wide employee engagement survey conducted in 2021, we subsequently implemented a series of
initiatives in areas such as company prospects, leadership, role clarity, involvement, challenge status quo, rewards, culture and beneﬁts:
Sustainable strategy: In response to the challenging market conditions currently aﬀecting the global biopharmaceutical sector, we
revised our company strategy following an in-depth evaluation of the business, aimed at accelerating HUTCHMED’s path to proﬁtability andestablishing a long-term sustainable business.
Global partnership: We announced a license to Takeda to develop and commercialize fruquintinib outside China to improve treatment
outcomes for cancer patients. Takeda has the scale and expertise in global drug development and commercialization to advance fruquintinib
globally outside of China.
Culture: Based on our reﬂection on HUTCHMED’s development and culture with our employees’ impactful input, we identiﬁed the Company’s
mission, vision, and values to support our strategy.
Leadership and talent development: We established a clear and comprehensive HUTCHMED 3E Leadership Framework. It provides
guidance for the learning and development of employees and managers to extend our mindset, and upgrade management capabilities
comprehensively to support the achievement of HUTCHMED’s strategic goals.
Learning platform: We selected e-learning platforms for our people and encourage employees to continue learning based on individual
developmental needs.
Compensation: We continued to conduct employee compensation benchmarking surveys to ensure our pay philosophy and pay ranges arecompetitive with our peer group companies.

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 69

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

Recognition: We rewarded talents that greatly contributed to
key company projects with awards, to recognize and appreciate
their special eﬀorts and contributions.
Communication and collaboration: We organized regularcross-functional town hall and team meetings to share company/
functional strategy, objectives, key initiatives and achievements,
and to listen to employees’ voices proactively. We continue totake good care of our employees, e.g., organized cross-functionalteam buildings, set up nursing rooms, and etc. Each business unit
has formed their own Diversity, Equity and Inclusion Team and/or
Culture Committee to enhance employee engagement and twoways communication.
Eﬃciency: Driving digital projects to optimize business processeﬀiciency, achieving the entire lifecycle online management fromprocurement and contracts to ﬁnancial processes, improving
paperless processes for Discovery departments through Electronic
Laboratory Notebooks implementation.
In October 2023, an employee engagement survey – “Your Voice 2023”
was conducted to elicit employees’ expectations on the Company’s
priority areas. 1,724 employees responded to the online survey,
representing an impressive response rate of 96%. During the online
survey, employees provided valuable feedback on our employee
engagement performance. Compared to our previous survey conducted
in 2021, we have made progress in all 23 scoring dimensions and haveexceeded the pharmaceutical industry benchmark in 14 dimensions.
We achieved a score of 80 or above in 10 areas including Feedback,Purpose, Prospects, Leadership, Engagement, Empowerment, Action
Taking, Growth, Culture, Belonging, which together indicates excellent
performance. Our overall employee engagement score was 83 andexceeded the pharmaceutical industry benchmark by 9 points.

Employee Survey Your Voice 2023

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

Throughout 2023, 4 town hall meetings were conducted. These meetings
served as platforms for management to share the Company’s latest
updates with employees across mainland China, Hong Kong, Macau,
and the U.S. oﬀices. Employees took the opportunity to pose questions
during the designated Q&A sessions of these town hall meetings.
In addition to attending town hall meetings and directly discussing theirgrievances with supervisors, employees have the option to voice theircomplaints and concerns through our Ethics whistleblowing hotline
and HR escalation procedures with our grievance mechanism. The
mechanism is meticulously designed to ensure that all complaints andconcerns expressed by employees regarding the Group’s business andoperations are duly heard and addressed in a timely and appropriatemanner. The procedures encompass two primary aspects: (i) Employees’
ability to ﬁle complaints or raise concerns with the Company, and(ii) the Company’s commitment to address the complaints received.
During each Audit Committee meeting, the General Manager ofGroup Management Services is responsible for reporting to the Audit
Committee on the complaints received since the last status report, theprogress of all pending investigations, and the ﬁnal resolutions andoutcomes of all investigations that have been closed or completed since
the previous report. A copy of each status report is also made available to
the Chairman, CEO, and the Company Secretary to ensure transparency
and accountability.
The channels available for employees to raise concerns or reportpotential ethical violations are as follows:
1.

Report directly to superiors: If an employee believes
that his/her superior or direct manager was the beneﬁciary or
participant in an ethical violation, the employee can report it to ahigher-level manager.

2.

HR department: The HR department coordinates a dedicatedteam to handle ethics and compliance issues and ensure thatcompany policies are closely followed.

3.

Corporate Compliance Committee: The Compliance
Committee oversees the Company’s ethical and compliancestandards. Employees can report their concerns directly to thiscommittee.

4.

Internal audit team: The internal audit team conducts regularcompliance checks and audits. If an employee believes an ethics
violation has occurred, the employee can provide information tothis team and they will conduct the necessary investigation.

Response rate:

96%

Progress made in all 23 scoring dimensions, exceeding thepharmaceutical industry benchmark in 14 dimensions.
Scoring 80/100 or above in 10 areas including Feedback, Purpose,
Prospects, Leadership, Engagement, Empowerment, Action Taking,Growth, Culture, Belonging, which together indicates excellent
performance.
Employeeengagement

83/10070

Exceeded the pharmaceuticalindustry benchmark

9%

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

OCCUPATIONAL HEALTH AND
SAFETY108
We regard our employees as our most treasured asset and are deeplycommitted to fostering a positive working culture and environment thatenables them to perform to the best of their abilities.

MAINTAINING WORKPLACE SAFETY
The safety, health, and well-being of our employees at HUTCHMED are
non-negotiable and fundamental principles. We prioritize occupationalsafety and health (“OHS”) in all our business processes, guided bycomprehensive management systems and procedures. The Group
strictly adheres to environmental protection, occupational health, andwork safety regulations in the countries and regions where we operate.
Relevant policies and procedures are clearly formulated for employee
compliance. We have also established an OHS governance structure led
by senior management, ensuring oversight of our OHS management.
A dedicated EHS team implements OHS policies across all levels of theorganization, which ensures that the workplace is free from signiﬁcantand recognized hazards, adhering strictly to the standards, rules, andregulations established by the U.S. Occupational Safety and Health Act.
Furthermore, our EHS department in Shanghai has implemented theglobal EHS Quality Management System, satisfying the requirements
outlined in ISO 9000/9001.
The EHS team conducts regular reviews of our safety measures, facilities,
equipment and overall infrastructure to guarantee a secure working
environment for our employees. Over the past three years, HUTCHMED
has maintained zero work-related fatalities109. While enhancing theestablishment and review of the Group’s internal EHS system, we
encourage our sites to obtain pertinent certiﬁcates for occupational
health and safety management systems, environmental management
systems and national work safety standards. Regular external audits
are conducted to ensure the integrity and performance of our OHS
management systems. Before use, our laboratories and facilities haveto undergo testing against local and international standards andrequirements by a qualiﬁed occupational health agency. Monthly
inspections are also carried out by OHS specialists to ensure standards
are maintained. In 2023, we have conducted comprehensive hazard
identiﬁcation and risk assessment. Our internal risk assessors are trained
across various departments to identify potential risk areas and hazards.
Based on the identiﬁed risk level, we can then implement risk mitigation
measures to enhance our risk prevention and control plans.

108
109

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

To foster a secure work culture, we promote education and training
related to EHS. Safety training is oﬀered to all employees, including newhires, along with specialized training and team activities designed toenhance EHS knowledge, professional level and emergency response
capabilities through diverse promotional and guidance methods.
To ensure staﬀ are kept up-to-date with the latest requirements, ourlaboratories regularly disseminate information on safety, environmental
protection, regulations and policies. We remain committed to allocating
substantial resources towards maintaining workplace safety.
Furthermore, we provide customized packages for our employees’
annual health check-ups. We have a stringent policy in place toguarantee that personnel who have not undergone occupational
health examination are not assigned to work in potentially hazardous
environments. Additionally, we conduct annual job hazard assessment
examinations for our workplaces. Employees are requested to promptly
report any identiﬁed workplace hazards and we make sure ourworkplace safety is up to the regulatory standards.
The Group maintains zero tolerance for the concealment, misreporting,omission, or delayed reporting of OHS incidents. We are committed tocontinuously enhancing our emergency response capabilities to improve
our ability to respond to emergencies eﬀectively. This includes, but is not
limited to, optimizing the allocation of emergency resources, increasing
the training of emergency personnel, revising our emergency plans,
accident handling and reporting procedures, and organizing various
emergency drills for chemical leakage, ﬁre, electric shock, biohazard andlift malfunction incidents. We have formed a highly qualiﬁed accident
investigation team responsible for emergency response. This team istasked with issuing comprehensive reports that summarize the impact
and potential causes of incidents, along with the necessary steps toprevent similar occurrences in the future. The progress of follow-up
actions is monitored promptly to ensure accountability and eﬀective
implementation.

B2 Health and Safety; S8; KPI B2.3
KPI B2.1
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 71

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Occupational health and safety statistics110
Unit

2022

2023

Work-related fatalities

No.

0

0

Lost days rate

Days per 200,000 working hours

2.23

0.85

Total training hours of health and safety

Hours

5,490

6,306

WORK-LIFE BALANCE

Holiday dinner

We highly prioritize the work-life balance of our employees and are committed to promoting their physical and mental well-being, thereby fostering
a positive corporate culture. Throughout the year, we organize various team-building activities designed to inspire, enhance the wellbeing of our staﬀ
and to cultivate a strong sense of belonging towards the Company.
Flexible working mode, including ﬂexible working hours and location, and compensation leave, have been implemented for suitable employees toarrange their most suitable work mode according to their own working habits and lifestyle. This arrangement not only improves work eﬀiciency, butalso takes care of employees’ diﬀerent family and life needs.

Team building events

110

72

KPI B2.1; KPI B2.2

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTCOMMUNITY INVESTMENT111
We remain committed to social responsibility by actively contributing tosocietal health protection and inclusive healthcare. We are passionate
about empowering the community through a diverse range of projects,
including charitable activities, healthcare support and educational
assistance, thereby promoting the sustainable development of medical
and healthcare services.
We invested in providing our communities with high-quality drug
options. Our donations of 7,630 boxes of SULANDA® (surufatinib) throughour patient access programs, as well as the treatment subsidy programof TAZVERIK® (tazemetostat), resulted in an estimated reduction of
US$4.7 million in treatment costs in 2023. Furthermore, our employees
actively participated in various community projects, logging over 130
volunteer hours.

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Since 2013, we have embarked on the community caring journey toprovide support to a local village school in Ji’an City, Jiangxi Province.
This year, we gathered educational resources, including over 1,100
textbooks, readers, learning tools, sports equipment and computers,with the intention of making a tangible impact on education and theoverall well-being of children living in underprivileged conditions. In
September when the new school year began, our Cultural Committee
members delivered new school bags, stationery and gifts to the school
to commemorate Teacher’s Day and to reflect our commitment toenhancing the learning environment for young people.
In 2023, we continued to receive the “Caring Company” award from The
Hong Kong Council of Social Service for the third consecutive year. Thisaward is a recognition of our commitment in Caring for the Community,
Caring for the Employees and Caring for the Environment over the pastyear.

Moreover, in 2023, we partnered with a nonproﬁt organization, “Here toServe – Pediatric Cancer” and launched a special initiative for the holiday
season to bring holiday cheer to lower income families dealing withcancer. “Here to Serve – Pediatric Cancer” is a nonproﬁt organizationthat provides critical support and resources to children and families
facing the challenges of pediatric cancer. They oﬀer a range of services
including emotional support, ﬁnancial assistance, and educational
programs to help families cope with the emotional and ﬁnancial burdenof cancer treatment.
We are also committed to caring for children in the underprivilegedrural areas in China. We have been supporting the development ofyoung individuals living in impoverished conditions through directsponsorships and the donation of resources to schools in China. Since
2013, about 2,000 students have been supported and have beneﬁted
through this ongoing initiative.

Community care events

111

B8 Community Investment; KPI B8.1-B8.2
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 73

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSPERFORMANCE DATASUMMARY(ENVIRONMENTAL)112
GHG EMISSIONS113(tCO2e)

2023

2022

2021

2023 vs 2022
Change (%)
4%

Scope 1 and 2 GHG emissions

6,960

6,675

8,213

Scope 1, 2 and 3 GHG emissions

78,772

N/A

N/A

Direct GHG emission (Scope 1)

320

244

Indirect GHG emission (Scope 2)
Other indirect GHG emission (Scope 3)

Of which air travel:
Revenue (consolidated entities) (US$'000)

6,640
71,812313

6,431

Note 1

N/A

Note 231%

7,900

Note 1

N/A

Note 2

3%917 Note 3

382

522

140%

Note 4426,409334,38897%-47%

837,999

Scope 1 & 2 GHG emission intensity(tCO2e/US$'000 revenue)

0.008

0.016

0.025

Scope 1, 2 & 3 GHG emission intensity(tCO2e/US$'000 revenue)

0.094

N/A

N/A

tCO2e = tonnes (metric tons, t) of carbon dioxide (CO2) equivalent (e)Note 1: Scope 2 emissions in 2022 and 2021 are restated due to re-calculation of steam consumption and improved data accuracy.
Note 2: Scope 3 emissions in 2022 and 2021 are limited to business air travel. Scope 3 emissions in 2023 include all other indirect emissions that occur outside the company,
covering both upstream and downstream emissions.
Note 3: It includes both FTEs’ (830.4 tCO2e) and CRO service providers’ (86.6 tCO2e) air travel emissions.
Note 4: 2023 includes US$280 million recognized from upfront payment by Takeda.

112

The calculation standards and methodologies for GHG emissions were referenced from the “Guidelines to Account for and Report on Greenhouse Gas
Emissions and Removals for Buildings (Commercial, Residential or Institutional Purposes) in Hong Kong” by the Environment Protection Department
and Electrical and Mechanical Services Department of the HKSAR Government. Emission factors for the reporting of GHG emissions were referenced fromsources including the Sustainability Report 2021 of CLP Power Hong Kong Ltd, the average CO2 emission factors of China’s Regional Grid in 2019 issued
by the Ministry of Ecology and Environment of the People’s Republic of China and “How to Prepare an ESG Report – Appendix 2 Reporting Guidance on
Environmental KPIs” by the Hong Kong Stock Exchange. The reporting scope of each year corresponds to that of its sustainability reporting year.
113
KPI A1.2
74

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSAIR EMISSIONS114
2023

2022

2021

2023 vs 2022
Change (%)

Nitrogen Oxides (NOx)

14.62

24.86

5.38

-41%

Sulphur Oxides (SOx)

0.19

0.18

0.12

8%

Particulate matter (PM)

1.29

2.23

0.40

-42%

2023

2022

2021

2023 vs 2022
Change (%)

12,601

12,004 Note 3

14,500 Note 3

5%

Total Energy Consumption (GJ)

45,363

43,217Note 3Note 3

5%

Electricity consumption

34,201

32,557(kg)

ENERGY CONSUMPTION115(GJ)Note 1,2
Total Energy Consumption (kWH) (’000)

Steam consumption

52,20041,140Note 4

10,772

5%Note 4

4%

10,700

10,241Natural gas consumption

0

0

0

0%

Diesel consumption

0

0

0

0%

Gasoline consumption
Total energy intensity (GJ/US$’000 revenue)

462

419

288

10%

0.054

0.101 Note 3

0.156 Note 3-47%Note 1: GJ = Giga Joule (GJ), which is equal to 1 x 109 joule (J) = 277.8 kWH
Note 2: Data from the U.S. oﬀice have been excluded in 2022 and 2021 because electricity is provided by the landlord
Note 3: The total energy consumption in 2022 and 2021 is reinstated due to reinstated steam consumption
Note 4: Steam consumption in 2022 and 2021 is restated due to re-calculation and improved data accuracy

114
115

KPI A1.1
KPI A2.1
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 75

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSWATER CONSUMPTION116(cubic meters)

2023 vs 2022
Change (%)

2023

2022

Total water consumption

25,74722,397

15%

Water consumption intensity (cubic meters/US$’000 revenue)

0.031

0.05

-38%

2023

2022

2023 vs 2022
Change (%)

22,483

19,736

14%

2023

2022

2023 vs 2022
Change (%)

WASTEWATER DISCHARGE(cubic meters)
Total wastewater discharged

PAPER(tons)
Total paper purchased
Note 1: Paper consumption in 2022 is restated due to re-calculation and improved data accuracy.

116

76

KPI A2.2

14

12 Note 1

17%

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSPACKAGING MATERIALS117
2023

2022

2023 vs 2022
Change (%)

Paper

16

12

33%

Plastic

7

6

17%

Metals

2

1

100%

25

19

32%

2023

2022

2023 vs 2022
Change (%)(tons)Total

WASTE AND RECYCLING118
Waste (tons)
Non-hazardous waste

68

N/A Note 1

N/A

Hazardous waste

106

79

34%

N/A Note 1

N/A

Non-hazardous waste intensity (tons/US$’000)

0.000082

Hazardous waste intensity (tons/US$’000)

0.000126

0.000186

-32%

2023

2022

2023 vs 2022
Change (%)

Paper

4.278

1.943

120%

Plastic

1.105

0.000

N/A

Metals

0.345

0.000

N/A

Glass

0.003

0.000

N/A

Fluorescent tubes

0.002

0.000

N/A

5.733

1.943

195%

144

82

76%

Note 1: Non-hazardous waste data in 2022 is adjusted based on reassessment of data and updated calculation method.

Waste recycled by type (tons)

Total

Note 1Printer cartridges (pieces)
Note 1: Total weight of waste recycled excludes printer cartridges.

117
118

KPI A2.5
KPI A1.3, KPI A1.4
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 77

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSPERFORMANCE DATASUMMARY(SOCIAL)

WORKFORCE DEMOGRAPHICS119
Total number of employees

Total number of
employees by age
19 and below

2023
Female

2023

2022

2021

1,991

2,027

1,715

2022
Male

Female2021
MaleFemale

Male

0

0

0

0

0

0

20 - 29

242

189

304

203

236

160

30 - 39

570

495

539

475

456

402

40 - 49

203

205

199

195

170

181

50 - 59

36

33

49

38

47

42

60 and above

8

10

10

15

7

14

1,059

932

1,101

926

916

799

Total
Total number of
employees by region2023
Female2022
MaleFemale2021
MaleFemaleMaleHong Kong

36

23

52

26

32

24

Mainland China

984

890

969

852

808

724

U.S., Europe and Others

39

19

80

48

76

51

Total number of employees by contract type

2023

2022

2021

Full-time

1,987

2,025

1,715

Part-time4

20

Temporary

0

0

0

119

78

KPI B1.1; S4.1; S4.3; S5.1 The reporting scope of each year corresponds to that of its sustainability reporting year.

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

Total number of
employees by
employee category

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

2023
Female14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

2022
Male

2021

FemaleMale

FemaleMale

General staﬀ

796

53.0%

708

47.0%

806

55.4%

649

44.6%

672

54.4%

564

45.6%

Middle management

259

55.0%

212

45.0%

288

52.4%

262

47.6%

241

52.2%

221

47.8%

Executive and Senior
management

4

25.0%

12

75.0%

7

31.8%

15

68.2%

3

17.7%

14

82.4%

1,059

53.2%

932

46.8%

1,101

54.3%

926

45.7%

916

53.4%

799

46.6%

Total

EMPLOYEE TURNOVER RATE BY GENDER, AGE AND GEOGRAPHICAL REGION120
Employee turnover rate by gender (%)

2023

2022

2021

Male

26.8%

31.6%

26.7%

Female

22.1%

24.3%

19.3%

24.3%

27.7%

22.7%

2022

2021

0%

0%

0%

20 - 29

35.0%

34.3%

26.0%

30 - 39

20.8%

27.8%

26.2%

40 - 49

16.9%

17.5%

14.0%

50 - 59

40.6%

29.9%

1.1%

60 and above

83.3%

40.0%

9.5%

Employee turnover by region (%)

2023

2022

2021

Hong Kong

13.6%

23.1%

16.1%

Mainland China

21.9%

27.4%

24.2%

35.1%

7.9%

Total
Employee turnover by age (%)
19 and below

U.S., Europe and Others2023

113.8%

Note 1

Note 1 – Due to the restructuring of U.S. commercial operations in 2023, the number of leavers in U.S., Europe and Others is greater than the number of employees by year end.
Turnover rate (in relevant geographical region) = L(x)/E(x) * 100
L(x) = Employees in the speciﬁed region leaving employment
E(x) = Number of employees in the speciﬁed region

Voluntary employee (full-time) turnover (%)

120

2023

2022

2021

19.7%

27.7%

22.5%

KPI B1.2; S3.1-S3.2; SASB-BP-330a.2
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 79

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

Voluntary employee turnover by employee category (%)

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

2023

2022

2021

General staﬀ

23.3%

N/A

N/A

Middle management

9.1%

N/A

N/A

Executives and senior management

0%

N/A

N/A

Total

19.7%

N/A

N/A

Involuntary employee turnover by employee category (%)

2023

2022

2021

General staﬀ

1.9%

N/A

N/A

Middle management

12.7%

N/A

N/A

Executives and senior management

12.5%

N/A

N/A

Total

4.5%

N/A

N/A

New employee hires by gender

2023

2022

2021

Male

210

327

310

Female

181

397

410

391

724

720

2023

2022

2021

0

1

0

20 - 29

152

285

268

30 - 39

198

341

368

40 - 49

39

77

75

50 - 592

15

9

60 and above

0

5

0

391

724

720

2023

2022

2021

6

18

12

384

679

645

1

27

63

391

724

720

Total

New employee hires by age
19 and below

Total

New employee hires by region
Hong Kong
Mainland China
U.S., Europe and Others
Total

80

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSOCCUPATIONAL HEALTH AND SAFETY DATA121
Safety Performance

Unit

2023

2022

2021

Total training hours of health and safety

Hours

6,306

5,490

N/A

Work-related fatalities

Cases

0

0

N/A

%

0

0

N/A

%

0.85

2.23

N/A

Days

17

45

N/A

Rate of work-related fatalities
Lost days rate

Note 1

Note 1

Lost days due to work injury
Note 1: Calculated based on 200,000 hours worked

TRAINING122
Percentage of employees trained by employee category

2023

2022

2021

General staﬀ

100%

100%

100%

Middle management

100%

100%

100%

Executive and Senior management

100%

100%

100%

Total

100%

100%

100%

Percentage of employees trained by gender

2023

2022

2021

Male

100%

100%

100%

Female

100%

100%

100%

100%

100%

100%

2023

2022

Male

22.0

23.8

Female

20.7

22.0

21.3

22.8

Total
Average training hours by gender

Total

121
122

KPI B2.1-B2.2; S7
KPI B3.1; KPI B3.2
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 81

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Average Training hours by employment category

2023

2022

General staﬀ

20.8

23.7

Middle management

21.8

20.8

Executive and Senior management

24.0

14.6

Total

21.1

22.8

Total training hours on the following topics

2023

2022

Code of Ethics

503

532

Anti-corruption and Compliance

1,830

2,100

Health and Safety

6,306

5,490

Others (including new hires induction training, academic lectures and forums,
quality control, general skills, management and leadership trainings)

33,082

39,235

ESG

698

N/A

Total

42,41947,375

Number of parental leave

2023
Female2022
MaleFemale2021
MaleFemaleMale

Entitled by gender

31

12

27

18

16

12

Taken by gender

30

12

27

18

16

12

Returned to work after parental
leave, by gender

30

12

25

18

16

12

100%

100%

93%

100%

100%

100%

Returned to work rate82

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSNON-CONSOLIDATEDJOINT VENTURESHPL is an own-brand prescription drugs business that is 50.0% owned by
HUTCHMED. Shanghai Pharmaceuticals Holding Co., Limited is the other
50.0% joint venture partner. As a non-consolidated business, its revenue is
not included in the total revenue of HUTCHMED.

RESPONSIBLE SUPPLY CHAIN MANAGEMENT
The manufacturing facility of SHPL is certiﬁed with Good Manufacturing
Practice and holds 74 drug product manufacturing licenses. The primary
product manufactured by SHPL is the She Xiang Bao Xin (SXBX) pill, an oral
vasodilator prescription therapy developed speciﬁcally for coronary arterydisease.
SHPL has implemented stringent quality control measures for products,
ensuring quality standards for raw materials, excipients and packaging
materials. It has also developed intermediate control requirements foreach stage of production, encompassing production process controls andquality standards for intermediate and ﬁnal products. It has established an
ISO 9001 certiﬁed quality management system covering drug production,
drug vigilance and sales.
To ensure compliance, SHPL conducts regular self-inspections and annual
external audits to ensure its overall risks are well-managed. In 2023, no
product quality-related complaints were received.

CLIMATE ACTIONSHPL has implemented robust environmental management practices,
evident through its ISO 14001-certiﬁed environmental management
system. It has also obtained ISO 50001 certiﬁcation for its energy
management system.
In 2021, signiﬁcant improvements were made at the SHPL factory,
speciﬁcally in the chilled water process. The 24-hour chilled water
system was integrated with the chilled water process unit, resulting in an
estimated annual coal saving of 14.5 tonnes.
Furthermore, SHPL has prioritized the adoption of renewable energy
sources. To this end, a solar panel system with a capacity of 21.8 kW was
installed at the factory. The electricity generated by the solar panels isconnected to the wastewater treatment system. As of January 2024, thecumulative electricity production from the solar panels has reached57,855 kWh.

Moving forward, SHPL plans to expand its sustainability eﬀorts by adopting
the condensate recovery system, upgrading the boiler system at thefactory to reduce nitrogen oxide emissions, and a Phase 2 project has
also been scheduled for the installation of solar panels. This project will
have a total installed capacity of 1,150 kW and is anticipated to generate
an average annual electricity output of 1.18 million kWh. Consequently,
it should contribute an average annual reduction of 337 tons in coalconsumption and a decrease of 673 tonnes in carbon emissions. In 2023,
the total Scope 1 and 2 carbon emissions from SHPL were 17,165 tonnes
and water consumption was 265,132 cubic meters.
SHPL recognizes that Chinese medicine residues have high recycling
value, and so it partnered with a local composting company to recycle
Chinese medicine residue and sludge that arises from its factories. In 2023,
2,789 tonnes of Chinese medicine residue and sludge were diverted fromthe waste stream to the composting company for recycling as organic
fertilizer. Notably, SHPL achieves 100% resource utilization for major solid
waste, and observes a 17% reduction in non-hazardous waste. The amountof plastics being recycled also increased by 19% in 2023. SHPL engaged aqualiﬁed waste treatment contractor to handle its hazardous waste andhas a designated storage area to prevent leakage of toxic substance tothe environment. Qualiﬁed third-party contractors are appointed at SHPL
to conduct regular testing and monitoring on chemical oxygen demand
and ammonia nitrogen concentrations of the treated wastewater from thefacility.

HUMAN CAPITAL MANAGEMENTThe SHPL operations are supported by a workforce of 3,005 staﬀ members,
including about 2,300 staﬀ in its commercial team and about 560 in its
manufacturing team. A health and safety system that is certiﬁed with ISO
45001:2018 is implemented in SHPL. Its laboratories and facilities aretested against local and international standards and requirements by aqualiﬁed occupational health agency prior to use. To monitor employees’
health, SHPL arranges regular medical examinations for all staﬀ. It also
provides employees with appropriate personal protection equipment
for high-risk operations. In 2023, there was no record of non-compliancerelated to health and safety.
Separately, in 2023, over 2,300 training sessions were conducted acrossdiﬀerent business departments, encompassing a wide range of topics,
such as sustainability, anti-bribery and corruption, compliance, corporate
culture, core values, product knowledge, professional expertise, technicalskills, and managerial techniques. A total of 138,000 training hours wererecorded throughout the year. According to the results of an employee
engagement survey conducted in 2023, 80% of staﬀ were satisﬁed with theworking environment and development at SHPL.
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 83

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSSOCIAL ENGAGEMENT

AWARDS AND RECOGNITIONSHPL committed to enhancing its social responsibility through its
dedication to charitable endeavors and community welfare initiatives. The
company actively contributes to society by prioritizing health protection
and inclusive healthcare. SHPL is deeply invested in empowering thecommunity through various projects, such as charitable activities,
support for healthcare and education. These initiatives aim to foster thesustainable development of medical and health services, thereby creating
a positive impact on society.

SHPL has been consistently recognized and honored for its outstandingachievements. The dedication to sustainability and responsible businesspractices has garnered prestigious awards and notable recognition within
the industry.

By building its 84th library in Chengkou, a rural county in southwest
China, SHPL has demonstrated its dedication to bringing education
to underprivileged communities. Access to education is a key driver ofsocial development and can signiﬁcantly improve the quality of life forindividuals and communities.
Furthermore, it showcased the expertise in Chinese medicine byconducting a course on traditional Chinese medicines for the children in
Chengkou. This initiative not only promoted knowledge and awarenessof Chinese heritage but also inspired children to explore the ﬁeld ofhealthcare and potentially become future healthcare practitioners. By
combining education with cultural preservation, SHPL is fostering a senseof pride and connection to their Chinese heritage among the younger
generation.

SHPL has received the prestigious "2023 Forward-looking Employer
Award" at the HRise 2023 Fourth Annual Human Resources Forwardthinking Summit. The company was recognized for its outstanding
products, advanced technology, comprehensive welfare system,
vibrant organizational culture, and diverse career development paths.
The Forward-looking Employer Award aims to honor enterprises andinstitutions that excel in employer brand building, employer brandcommunication, building happy workplaces, and ESG practices. SHPL
remains committed to nurturing its employer brand and fostering the
growth and development of its employees through innovative approaches
and a forward-thinking perspective.

SHPL has made signiﬁcant progress in its journey towards theinternationalization of traditional Chinese medicine. One notableachievement is the successful export of their product, Biliﬂow, to Canada.
SHPL underwent a rigorous registration process to meet the requirements
set by Health Canada. After thorough analysis and preparation, Biliﬂow
received the necessary regulatory approvals and obtained the Natural
Product Number in Canada. To ensure the quality and compliance of
their overseas production site, SHPL obtained the Foreign Site Reference
Number from Health Canada, making them the ﬁrst Chinese herbal
medicine manufacturer to receive this certiﬁcation.
SHPL collaborated with a Canadian importing partner, sharing a common
vision for the internationalization of Chinese medicine. They signed sales
agreements and meticulously designed product packaging to meetthe speciﬁc regulations of the Canadian pharmaceutical market. The
successful export of Biliﬂow to Canada was made possible through the
dedication and cooperation of various departments within SHPL. This
accomplishment demonstrates SHPL's commitment to sustainability
principles. It showcases their adherence to regulatory standards,
dedication to quality assurance, and their eﬀorts to expand access to
traditional Chinese medicine globally.

Community event

Export of Biliﬂow to Canada
84

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSREPORTING
INDEX
1) HKEX, NASDAQ, LSE GROUP AND GRI ESG REPORTING GUIDES CONTENTINDEXThis Report has been prepared in accordance with the provisions of the latest ESG Guide issued by the HKEX, and also with reference to the Nasdaq
ESG Reporting Guide, and the LSE Group’s ESG Reporting Guidance, as well as the GRI Standards. The table below summarizes where relevant
disclosures could be found throughout this report. Relevant SDGs are also cross-referenced below.
HKEX ESG Guide Aspect and KPI

NasdaqLSE

GRISection/Remark

Page

MDR 13A statement from the board
containing the following elements:
i. a disclosure of the board’s
oversight of ESG issues;ii. the board’s ESG management
approach and strategy,
including the process used
to evaluate, prioritize andmanage material ESG-related
issues (including risks to theissuer’s businesses); andiii. how the board reviews
progress made against ESGrelated goals and targets
with an explanation of how
they relate to the issuer’s
businesses.

E8, E9, E10,
G3, G8, G9––2023 Sustainability
Highlights

P.4

Sustainability Governance

P.15-19

Sustainability Strategy

P.26-27

A description of, or an explanation
on, the application of the (i)Materiality, (ii) Quantitative, (iii)
Consistency reporting principles

G8, G9About This Report

P.3

Sustainability Strategy

P.23-25

Reporting boundaries of the ESG
report and the process of settingthem

G8, G9About This Report

P.3

MDR 14

MDR 15

–

–

3-1,
3-2

3-1

UN SDG

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 85

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTHKEX ESG Guide Aspect and KPI

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

NasdaqLSE

GRISection/Remark

Page

E7

–

3-3

Environmental Policy

P.20

Climate Action

P.57

Environment
A1 Emissions

General Disclosure Information on:(a) the policies; and(b) compliance with relevant laws
and regulations that have asigniﬁcant impact on the issuer

The Company is not awareof any non-compliance that
had a signiﬁcant impact
on the Company in thereporting year.

relating to air and greenhousegas emissions, discharges into
water and land, and generationof hazardous and non-hazardous
waste.
KPI A1.1

The types of emissions andrespective emissions data.

E2–

305-1,
305-2,
305-7

Scope 3 Screening and
Measurement

P.60-61

Performance Data Summary P.75
(Environmental)
KPI A1.2

KPI A1.3

KPI A1.4

KPI A1.5

KPI A1.6

86

Direct (Scope 1) and energy
indirect (Scope 2) greenhouse gas
emissions (in tons) and, whereappropriate, intensity.

E1
E2

Total hazardous waste produced(in tons) and, where appropriate,
intensity.

E7

Total non-hazardous waste
produced (in tons) and, whereappropriate, intensity.

E7

Description of emissions target(s)set, and steps taken to achieve
them.

E1, E2

Description of how hazardousand non-hazardous wastes arehandled, and a description of
reduction target(s) set, and steps
taken to achieve them.

–305-1,
305-2,
305-4

Scope 3 Screening and
Measurement

P.60-61

Performance Data Summary P.74
(Environmental)

E7

–

–

–

–

306-3,
306-4,
306-5

Waste and Packaging

306-3,
306-4,
306-5

Waste and Packaging

3-3,
305-5

Sustainability Governance

P.15-19

Environmental Goal

P.28

Climate Action

P.55-56

Waste and Packaging

P.62

3-3

P.62

Performance Data Summary P.77
(Environmental)
P.62

Performance Data Summary P.77
(Environmental)

UN SDG1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTHKEX ESG Guide Aspect and KPI

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

NasdaqLSE

GRISection/Remark

Page

E7

–

3-3

Sustainability Governance

P.20

Environmental Policy

P.20

Climate Action

P57

UN SDG

Environment
A2 Use ofResources

General Disclosure Policies on theeﬀicient use of resources, including
energy, water and other raw
materials.

KPI A2.1

Direct and/or indirect energy
consumption by type in total (kWhin ‘000s) and intensity.

E3, E4, E5

Energy use

302-1,
302-3

Performance Data Summary P.75
(Environmental)

KPI A2.2

Water consumption in total andintensity.

E6–303-1,
303-3,
303-5

Water Use

302-4

Sustainability Governance

P.15-19

Environmental Goal

P.28

Climate Action

P.55,
58-59
P.63

KPI A2.3

Description of energy use eﬀiciency
target(s) set, and steps taken toachieve them.

E6

–

P.63

Performance Data Summary P.76
(Environmental)

KPI A2.4

Description of whether there is any
issue in sourcing water that is ﬁt for
purpose, water eﬀiciency target(s)set, and steps taken to achieve
them.

E6

–

–

Water UseKPI A2.5

Total packaging material used forﬁnished products (in tons) and, if
applicable, with reference to perunit produced.

E7–301-1,
301-3,
306-4,
306-5

Performance Data Summary P.77
(Environmental)

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 87

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTHKEX ESG Guide Aspect and KPI

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

NasdaqLSE

GRISection/Remark

Page

E7

–

3-3

Sustainability Governance

P.20

Environmental Policy

P.20

Climate Action

P.57

Environment
A3 TheEnvironment
and Natural
Resources

General Disclosure Policies onminimizing the issuer’s signiﬁcant
impacts on the environment andnatural resources.

KPI A3.1

Description of the signiﬁcant
impacts of activities on theenvironment and natural resources
and the actions taken to manage
them.

E7

–

3-3,
305-1,
305-2,

Climate Action

P.57

A4 Climate
ChangeGeneral Disclosure Policies on
identiﬁcation and mitigation ofsigniﬁcant climate-related issues
which have impacted, and thosewhich may impact, the issuer.

E8, E9, E10––

Sustainability Governance

P.16-19

Environmental Policy

P.20

Climate Action

P.57

Description of the signiﬁcantclimate-related issues which have
impacted, and those which may
impact, the issuer, and the actions
taken to manage them.

E8, E9, E10

Climate Action

P.57-59

KPI A4.1

88––

UN SDG1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTHKEX ESG Guide Aspect and KPI

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

NasdaqLSE

GRISection/Remark

Page

S6, S8, S9,
S10, G1, G6–

3-3

Sustainability Governance

P.20

Human Rights and Labor
RightsP.32

UN SDG

Employment and Labour Practices
B1 Employment General Disclosure Information on:(a) the policies; and(b) compliance with relevant laws
and regulations that have asigniﬁcant impact on the issuer

Human Capital Management P.64-70
relating to compensation anddismissal, recruitment andpromotion, working hours, rest
periods, equal opportunity,
diversity, anti-discrimination, andother beneﬁts and welfare.
KPI B1.1

Total workforce by gender,
employment type (for example,
full- or part-time), age group andgeographical region.

S4, S5

Share oftemporarystaﬀ

2-7, 2-8,
2-21,
405-1

Performance Data Summary P.78-79(Social)KPI B1.2

Employee turnover rate by gender,
age group and geographical region.

S3

Staﬀ
turnover
rates

3-3,
401-1

Performance Data Summary P.79-80(Social)

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 89

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTHKEX ESG Guide Aspect and KPI

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

NasdaqLSE

GRISection/Remark

Page

S8

–

3-3

Sustainability GovernanceP.20

Occupational Health and
SafetyP.71

Occupational Health and
SafetyP.72

Employment and Labour Practices
B2 Health and
SafetyGeneral Disclosure Information on:(a) the policies; and(b) compliance with relevant laws
and regulations that have asigniﬁcant impact on the issuer
relating to providing a safe working
environment and protecting
employees from occupational
hazards.

KPI B2.1

Number and rate of work-related
fatalities occurred in each of thepast three years including thereporting year.

S7–

403-9,
403-10

Performance Data Summary P.81
(Social)Over the past three years,
there were no reported
work-related fatalities.

KPI B2.2

Lost days due to work injury.

S7–403-9,
403-10Occupational Health and
SafetyP.72

Performance Data Summary P.81
(Social)KPI B2.3

90

Description of occupational healthand safety measures adopted, andhow they are implemented andmonitored.

S8–403-1,
403-2,
403-4,
403-5

Occupational Health and
SafetyP.71

UN SDG1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTHKEX ESG Guide Aspect and KPI

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

NasdaqLSE

GRISection/Remark

Page

UN SDG

Employment and Labour Practices
B3
Development
and Training

General Disclosure Policies on
improving employees’ knowledge
and skills for discharging duties
at work. Description of training
activities.

–

–

3-3,
205-2,
403-5,
404-2,
404-3

Talent Development andEngagement

P.68

KPI B3.1

The percentage of employees
trained by gender and employee
category.

–––

Talent Development andEngagement

P.69

Performance Data Summary P.81
(Social)KPI B3.2

The average training hours
completed per employee by
gender and employee category.

–

Employeetraining
hours

404-1

Talent Development andEngagement

P.69

Performance Data Summary P.81-82(Social)B4 Labor
Standards

General Disclosure Information on:(a) the policies; and(b) compliance with relevant laws
and regulations that have asigniﬁcant impact on the issuer

S9, S10–3-3

Sustainability Governance

P.20

Human Rights and Labor
RightsP.32

The Company had noreported cases of
non-compliance related tochild and forced labor in thereporting year.

relating to preventing child andforced labor.

KPI B4.1

Description of measures to review
employment practices to avoid
child and forced labor.

S9, S10–408-1,
409-1

Human Rights and Labor
RightsP.32

KPI B4.2

Description of steps taken toeliminate such practices when
discovered.

S9, S10–408-1,
409-1

Human Rights and Labor
RightsP.32

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 91

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTHKEX ESG Guide Aspect and KPI

Nasdaq

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

LSE

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

GRISection/Remark

Page

3-3

Sustainability Governance

P.20

Human Rights and Labor
RightsP.32

Responsible Supply Chain
Management

P.41-42

Responsible Supply Chain
Management

P.41

Number of Suppliers byGeographical Region

P.41

Responsible Supply Chain
Management

P.41-42

Number of Suppliers byGeographical Region

P.41

Responsible Supply Chain
Management

P.41-42

Number of Suppliers byGeographical Region

P.41

Responsible Supply Chain
Management

P.41-42

Product Sustainability

P.63

Operating Practices
B5 Supply Chain General Disclosure Policies on
Management
managing environmental andsocial risks of the supply chain.

KPI B5.1

KPI B5.2

KPI B5.3

KPI B5.4

92

Number of suppliers bygeographical region.

S9, S10, G5,
G6–

Description of practices relating
to engaging suppliers, number ofsuppliers where the practices arebeing implemented, and how they
are implemented and monitored.

G5

Description of practices used to
identify environmental and social
risks along the supply chain, andhow they are implemented andmonitored.

G5

Description of practices used
to promote environmentally
preferable products and services
when selecting suppliers, andhow they are -implemented andmonitored.

–

–

–

–

–

204-1

308-1,
414-1––

UN SDG1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTHKEX ESG Guide Aspect and KPI

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

NasdaqLSE

GRISection/Remark

Page

–

–

3-3,
416-1

Sustainability Governance

P.20

Data Privacy and Security

P.33

Intellectual Property

P.33-34

Responsible
Commercialization

P.35-36

Research and Development

P.43-44

UN SDG

Operating Practices
B6 ProductResponsibility

General Disclosure Information on:(a) the policies; and(b) compliance with relevant laws
and regulations that have asigniﬁcant impact on the issuer
relating to health and safety,
advertising, labelling and privacy
matters relating to products andservices provided and methods ofredress.

The Company is not awareof any incident of
non-compliance that hada signiﬁcant impact to theCompany in the reportingyear.
KPI B6.1

Percentage of total products soldor shipped subject to recalls forsafety and health reasons.

–

–

–

Anti-Counterfeiting &Product Traceability

P.39

Adverse Events

P.40

No recalls in relation to
products and services werereceived in the reportingyear.
KPI B6.2

Number of products andservice-related complaints
received and how they are dealt
with.

–

–

417-2,
417-3,
418-1

Whistleblowing

P.34

Adverse Events

P.40

No signiﬁcant complaint
was received in the reportingyear.
KPI B6.3

Description of practices relating
to observing and protecting
intellectual property rights.

–

–

–

Intellectual Property

P.33-34

KPI B6.4

Description of quality assurance
process and recall procedures.

–

–

–

Sustainability Governance

P.20

Adverse Events

P.40

Product Quality and Safety

P.50

Sustainability Governance

P.20

Data Privacy and Security

P.33

KPI B6.5

Description of consumer dataprotection and privacy policies,
and how they are implemented
and monitored.

G7

–

3-3

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 93

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTHKEX ESG Guide Aspect and KPI

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

NasdaqLSE

GRISection/Remark

Page

G6

–

3-3,
205-3

Sustainability Governance

P.20

Code of Conduct andAnti-corruption

P.31

Operating Practices
B7 Anticorruption

General Disclosure Information on:(a) the policies; and(b) compliance with relevant laws
and regulations that have asigniﬁcant impact on the issuer

The Company is notaware of any incident of
noncompliance that hada signiﬁcant impact to theCompany in the reportingyear.

relating to bribery, extortion, fraud
and money laundering.

KPI B7.1

KPI B7.2

KPI B7.3

94

Number of concluded legal cases
regarding corrupt practices brought
against the issuer or its employees
during the reporting period andthe outcomes of the cases.

G6

Description of preventive measures
and whistle-blowing procedures,and how they are implemented
and monitored.

–

Description of anti-corruption
training provided to directors and
staﬀ.

–

205-1,
205-3

Code of Conduct andAnti-corruption

P.31

No reported legal casesof corruption brought
against the Company or
its employees that had asigniﬁcant impact on the
Company in the reporting
year.

G6

–

Employeetraining
hours

–

205-2

Code of Conduct andAnti-corruption

P.31

Employee Awareness

P.32

Whistleblowing

P.34

Employee awareness

P.32

Anti-Corruption Training

P.32

UN SDG1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENTHKEX ESG Guide Aspect and KPI

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

NasdaqLSE

GRISection/Remark

Page

UN SDG

Community
B8 Community
Investment

General Disclosure Policies oncommunity engagement tounderstand the needs of thecommunities where the issuer
operates and to ensure its activities
take into consideration thecommunities’ interests.

–

Social andcommunity
investment

3-3

Community Investment

P.73

KPI B8.1

Focus areas of contribution.

–

Social andcommunity
investment

413-1

Community Investment

P.73

KPI B8.2

Resources contributed to the focus
area.

–

Social andcommunity
investment

413-1

Community Investment

P.73

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 95

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

2) SASB CONTENT INDEXThe Report has been prepared in accordance with reference to the SASB Biotechnology & Pharmaceuticals Sustainability Accounting Standard. The
table below summarizes where relevant disclosures could be found throughout this report.
Disclosure Topic

SASB Standards

Disclosure Metric

Remark and References

Page

Safety of Clinical Trial
Participants

SASB-BP-210a.1

Discussion, by world region, ofmanagement process for ensuring
quality and patient safety during
clinical trials.

N/A

N/A

SASB-BP-210a.2

Number of FDA Sponsor Inspections
related to clinical trial management
and pharmacovigilance that resultedin: (1)Voluntary Action Indicated (VAI)
and (2) Oﬀicial Action Indicated (OAI).

Research & Development

P.48

Total amount of monetary losses as aresult of legal proceedings associatedwith clinical trials in developing
countries.

Research & Development

SASB-BP-240a.1

Description of actions and initiatives
to promote access to health careproducts for priority diseases and inpriority countries as deﬁned by theAccess to Medicine Index.

Access to Healthcare

P.5354

SASB-BP-240a.2

List of products on the WHO Listof Prequaliﬁed Medicinal Products
as part of its Prequaliﬁcation of
Medicines Programme (PQP).

N/A

N/A

SASB-BP-210a.3

Access to Medicines

96

During the reporting year, there were no FDA
Sponsor Inspections related to clinical trial
management and pharmacovigilance that
resulted in (1) Voluntary Action Indicated(VAI) and (2) Oﬀicial Action Indicated (OAI).
P.47

During the reporting year, there were
no monetary losses as a result of legal
proceedings associated with clinical trials indeveloping countries.

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Disclosure Topic

SASB Standards

Disclosure Metric

Remark and References

Page

Aﬀordability & Pricing

SASB-BP-240b.1

Number of settlements of Abbreviated
New Drug Application (ANDA)
litigation that involved payments and/or provisions to delay bringing an
authorised generic product to market
for a deﬁned time period.

Access to Healthcare

P.53

Percentage change in: (1) average list
price and (2) average net price across
U.S. product portfolio compared toprevious year.

Access to Healthcare

Percentage change in: (1) list price and(2) net price of product with largest
increase compared to previous year.

Access to Healthcare

SASB-BP-250a.1

List of products listed in the FDA
MedWatch Safety Alerts for Human
Medical Products database.

N/A

N/A

SASB-BP-250a.2

Number of fatalities associated withproducts as reported in the FDA
Adverse Event Reporting System.

Responsible Commercialization

P.40

Number of recalls issued, total units
recalled.

Responsible Commercialization

SASB-BP-240b.2

SASB-BP-240b.3

Drug Safety

SASB-BP-250a.3

During the reporting year, there were no
settlements of Abbreviated New Drug
Application (ANDA) litigation that involved
payments and/or provisions to delay
bringing an authorised generic product tomarket for a deﬁned time period.
P.53

During the reporting year, there was nopercentage change in (1) average list priceand (2) average net price across U.S. productportfolio compared to previous year as we
do not lead any product commercializationin the U.S..
P.53

There was no percentage change in (1) list
price and (2) net price of product with largest
increase compared to previous year.

During the reporting year, there were no
fatalities associated with products asreported in the FDA Adverse Event Reporting
System.
P.40

During the reporting year, there were no
quality-related adverse events or productrecalls occurred.
SASB-BP-250a.4

Total amount of product accepted fortakeback, reuse, or disposal.

Responsible Commercialization

P.40

During the reporting year, there were no
product accepted for takeback,reuse, or disposal.
SASB-BP-250a.5

Number of FDA enforcement actions
taken in response to violations ofcurrent Good Manufacturing Practices(cGMP), by type.

Research & Development

P.50

During the reporting year, there were also no
FDA enforcement actions taken in response
to violations of current Good Manufacturing
Practices.

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 97

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Disclosure Topic

SASB Standards

Disclosure Metric

Remark and References

Page

Counterfeit Drugs

SASB-BP-260a.1

Description of methods andtechnologies used to maintaintraceability of products throughout
the supply chain and prevent
counterfeiting.

Responsible Commercialization

P.39

Discussion of process for alerting
customers and business partners ofpotential or known risks associatedwith counterfeit products.

Responsible Commercialization

Number of actions that led to raids,
seizure, arrests, and/or ﬁling of
criminal charges related to counterfeit
products.

Responsible Commercialization

Total amount of monetary losses as aresult of legal proceedings associatedwith false marketing claims.

Responsible Commercialization

SASB-BP-270a.2

Description of code of ethics
governing promotion of oﬀ-label useof products.

N/A

N/A

SASB-BP-330a.1

Discussion of talent recruitment andretention eﬀorts for scientists andresearch and development personnel.

Talent Acquisition and Retention

P.6667

SASB-BP-330a.2(1) Voluntary and (2) involuntary
turnover rate for: (a) executives/senior
managers, (b) midlevel managers, (c)professionals, and (d) all others.

Performance Data Summary (Social)

P.7980

SASB-BP-260a.2

SASB-BP-260a.3

Ethical Marketing

Employee
Recruitment,
Development &Retention

98

SASB-BP-270a.1

We incorporate serialized barcodes on
the product carton boxes. These uniquebarcodes serve as identiﬁers that can bescanned and traced throughout the supply
chain. By printing serialized barcodes on the
carton boxes, it enables eﬀicient tracking andveriﬁcation of each product unit, allowing for
accurate monitoring of the product’s journeyfrom production to distribution.
P.39

When a potential or conﬁrmed caseof counterfeit products is identiﬁed,
we promptly initiate a comprehensive
investigation to gather evidence and assess
the scope of the issue. Internal teams
collaborate with law enforcement agencies,
regulatory bodies, and other relevant
stakeholders to address the situationeﬀectively.
P.39

In 2023, no actions have led to raids, seizure,arrests, or ﬁling of criminal charges related
to counterfeit products.
P.39

We were also not aware of any monetarylosses as a result of legal proceedings
associated with false marketing claims.

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

Disclosure Topic

SASB Standards

Disclosure Metric

Remark and References

Page

Supply Chain
Management

SASB-BP-430a.1

Percentage of (1) entity's facilitiesand (2) Tier I suppliers' facilities
participating in the Rx-360
International Pharmaceutical Supply
Chain Consortium audit program orequivalent third-party audit programsfor integrity of supply chain andingredients.

Responsible Commercialization

P.42

Total amount of monetary losses as aresult of legal proceedings associatedwith corruption and bribery.

Business Ethics and Anti-Corruption

Description of code of ethics
governing interactions with healthcare professionals.

Business Ethics and Anti-Corruption

Business Ethics

SASB-BP-510a.1

SASB-BP-510a.2

100% of our Tier I suppliers participatedeither in the Rx–360 International
Pharmaceutical Supply Chain Consortium
audit program or equivalent third–party
audit programs for integrity of supply chain
and ingredients.
P.31

There were also no material monetary losses
as a result of legal proceedings associatedwith corruption or bribery.
P.31

Through business partnerships, we also
follow RDPAC Code of Practice, which iscontained in our internal SOPs and policies,
such as Interactions with HCP, HCO andPatient Organizations.

HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 99

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS

3) TCFD CONTENT INDEXThis Report has been prepared in accordance with reference to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
The table below summarizes where relevant disclosures could be found throughout this report.
Disclosure Area

Recommended Disclosure

Remark and References

Governance

Disclose the organisation’s governance around climate-relatedrisks and opportunities.

Sustainability Governance
Climate Action

Describe management’s role in assessing and managing
climate-related risks and opportunities.

Sustainability Governance
Climate Action

Strategy

Risk Management

Describe the climate-related risks and opportunities theorganisation has identiﬁed over the short, medium, and longterm.

Climate Action

Describe the impact of climate-related risks and opportunities
on the organisation’s businesses, strategy, and ﬁnancial
planning.

Climate Action

Describe the resilience of the organisation’s strategy, taking into
consideration diﬀerent climate-related scenarios, including a
2° C or lower scenario.

Climate Action

Describe the organisation’s processes for identifying andassessing climate-related risks.

Sustainability Governance
Climate Action

Describe the organisation’s processes for managing
climate-related risks.

Sustainability Governance
Climate Action

Metrics and Targets

Describe how processes for identifying, assessing, andmanaging climate-related risks are integrated into theorganisation’s overall risk management.

Sustainability Governance

Disclose the metrics used by the organisation to assessclimate-related risks and opportunities in line with its strategy
and risk management process.

Climate Action

Disclose Scope 1, Scope 2, and if appropriate, Scope 3 GHG
emissions, and the related risks.

Climate Action

Climate Action

Performance Data Summary(Environmental)
Describe the targets used by the organisation to manage
climate-related risks and opportunities and performanceagainst targets.

100

Sustainability Governance
Climate Action

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSLIST OFABBREVIATIONS
Abbreviation

Deﬁnition“3R”

Replacement, Reduction, and Reﬁnement“AAALAC”

The Association for Assessment and Accreditation of Laboratory Animal Care“ABAC”

Anti-Bribery and Anti-Corruption Policy“AE”

Adverse Events“API”

Active Pharmaceutical Ingredient“ARPs”

Animal Research Protocols“ASCO”

American Society of Clinical Oncology“CAPA”

Corrective Action and Preventive Action“COD”

Chemical Oxygen Demand“CPHCF”

China Primary Health Care Foundation“CRC”

Colorectal Cancer“CSCO”

Chinese Society of Clinical Oncology“CSR”

Corporate Social Responsibility“CTMS”

Clinical Trial Management System“EHS”

Environmental, Health and Safety“EMA”

European Medicines Agency“ERM”

Enterprise Risk Management“ESG”

Environmental, Social and Governance“ESMO”

European Society for Medical Oncology“eTMF”

electronic Trial Master File

“FDA”

U.S. Food and Drug Administration“GCP”

Good Clinical Practices“GHG”

Greenhouse gas“GLP”

Good Laboratory Practices“GMP”

Good Manufacturing Practices“GRI”

Global Reporting Initiative“GVP”

Good Pharmacovigilance Practices“HCO”

Healthcare Organizations“HCP”

Healthcare Professionals
HUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 101

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONS“HKEX”The Stock Exchange of Hong Kong Limited“HKQAA”

Hong Kong Quality Assurance Agency“HHO”

Hutchison Hain Organic (Hong Kong) Limited“HHL”

Hutchison Healthcare Limited“HSI”

Hang Seng Index“HSN”

HUTCHMED Science Nutrition Limited“Hutchison Sinopharm”

Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Company Limited“ICH”

International Council for Harmonization of Technical Requirements for Pharmaceuticals for Human Use“IEC”

Independent Ethics Committee“IFRS”

International Financial Reporting Standards“INED”

Independent Non-executive Director“IT”

Information Technology“IP”

Intellectual Property“KPI”

Key Performance Indicators“LSE”

London Stock Exchange“LTIP”Long Term Incentive Plan

“MAA”

Marketing Authorization Application“MDR”

Mandatory Reporting Requirement of HKEX

“MET”

Mesenchymal–Epithelial Transition“MHRA”

U.K. Medicines and Healthcare Products Regulatory Agency“NDA”

New Drug Application“NED”

Non-executive Director“NETs”

Neuroendocrine tumors“NHSA”

China National Healthcare Security Administration“NIST”

U.S. National Institute of Standards and Technology“NMPA”

China National Medical Products Administration“NPP”

Named Patient Program“NRDL”

National Reimbursement Drug List

“NSCLC”

Non-Small Cell Lung Cancer“OHS”

Occupational Health and Safety“PAI”

Pre-Approval Inspection“PCT”

Patent Cooperation Treaty“PDUFA”

Prescription Drug Users Fee Act“PMDA”

Japan Pharmaceuticals and Medical Devices Agency“PMI”

Process Mass Intensity“R&D”

Research and Development“RDPAC”

R&D-based Pharmaceutical Association Committee“SAE”

Serious Adverse Events“SASB”

Sustainability Accounting Standards Board“SDGs”

United Nations Sustainable Development Goals“SHPL”

Shanghai Hutchison Pharmaceuticals Limited102

1. ABOUT THIS REPORT
2. 2023 SUSTAINABILITY HIGHLIGHTS
3. MESSAGE FROM OUR CHAIRMAN
4. ABOUT HUTCHMED
5. SUSTAINABILITY GOVERNANCE

6. SUSTAINABILITY STRATEGY
7. BUSINESS ETHICS AND ANTICORRUPTION
8. RESPONSIBLE COMMERCIALIZATION
9. RESEARCH & DEVELOPMENT

10. ACCESS TO HEALTHCARE
11. CLIMATE ACTION
12. HUMAN CAPITAL MANAGEMENT
13. PERFORMANCE DATA SUMMARY(ENVIRONMENTAL & SOCIAL)“SOPs”

Standard Operating Procedures“STCSM”

The Science and Technology Commission of Shanghai Municipality“SXBX”She Xiang Bao Xin“TCFD”

Task Force on Climate Related Financial Disclosures“TPRM”

Third-Party Risk Management“VEGFR”

Vascular Endothelial Growth Factor Receptor“VOC”

Volatile Organic Compounds

14. NON-CONSOLIDATED JOINT VENTURE
15. REPORTING INDEX
16. LIST OF ABBREVIATIONSHUTCHMED (CHINA) LIMITED 2023 SUSTAINABILITY REPORT 103