Corporate Social Responsibility Report - WuXi AppTec

WuXi AppTec at a GlanceCorporate Social Responsibility Report 2018CSR philosophy is deeply rooted in the corporate culture of WuXi AppTec. Our vision is that every drug can bemade and every disease can be treated through building the open-access platform with the most comprehensivecapabilities and technologies in the global healthcare industry. This not only reflects our striving for excellence ofbusiness, but also demonstrates our great sense of responsibility to serve the healthcare industry, the communityand human beings through our expertise. Every drug can be made and every disease can be treated through building the openaccess platform with the most comprehensive capabilities and technologies in theglobal healthcare industry.MissionContinue building an open-access capability and technology platform to enable anyoneand any company to discover and develop pharmaceuticals and healthcare products tobenefit patients.ValuesIntegrity & Dedication, Working Together & Sharing Success; Doing the Right Thing, DoingIt Right.Code ofconductResponsibility for Environmentand CommunityResponsibility for EmployeesDataCSR ModelOur CSR PhilosophyVisionResponsibility forHealthcare IndustryPut Customers FirstDemonstrate IntegrityStrive for ExcellenceExceed customers expectations, maximize thevalue for our customers,and win customers loyaltywith a 100% customerretention rate.Take the initiative topromote a positive workenvironment where doingthe right thing is thestandard. Be positive andenthusiastic. Approachchallenges with energy andoptimism.Pursue focus and expertise,and optimize processes inorder to deliver excellentresults. Relentlessly drivelearning, accumulation,improvement andinnovation.HealthcareindustryEnvironment &communityEmployeesAs a pharmaceutical, medical device open-access capability and technology platformcompany, WuXi AppTec continuously improves capacity and capabilities of the integratedplatform to enable more innovators and entrepreneurs to participate in various steps of drugR&D and enable more research institutions, scientists, hospital and doctors to realize theirown R&D dreams, thus benefiting more patients. This is an important path of WuXi AppTec tomake contributions to the healthcare industry and the community.WuXi AppTec recognizes that environment & community are the crucial cornerstones of oursustainable development, and our manufacturing and operating activities have certain impacton the natural environment. Therefore, green operation and harmonious development ofenvironment & community are the important aspects of our fulfillment of social responsibility.WuXi AppTec strives to create an employee-friendly and vibrant workplace, and the adequatedevelopment of employees provides a steady stream of momentum for the integratedplatform of the Company.Responsibility forhealthcare industryBuilding the open-accessplatform with the mostcomprehensive capabilitiesand technologies to enable& expedite development ofinnovative medicinesShareholdersand investorsGovernment andCustomersregulatorsExecute for ResultsDrive effective execution ofeach project and objective,focusing on solutions andresults.09Pursue Collaboration andTeamworkEmbrace Change andDrive InnovationEngage in collaborationand mutual developmentwith an open and winwin mindset by sharingresources and leveragingthe complementaryadvantages of each.Demonstrate flexibilityand ability to embracechange. Adapt quicklyto transformational andinnovative conditions witha strong commitmentto breakthroughs anddevelopment.PartnersEmployeesResponsibility for employeesCreating an employee-friendly andvibrant workplaceSuppliersCommunity and the publicResponsibility for environment andcommunityHarmonious development of environment andcommunity10

WuXi AppTec at a GlanceCorporate Social Responsibility Report 2018Responsibility forHealthcare IndustryResponsibility for Environmentand CommunityResponsibility for EmployeesDataStakeholder Communication and CSR ManagementBased on our own business characteristics and operation characteristics, and with reference to the industryexperience and practice worldwide, we have identified the key stakeholders of the Company, consisting of thegovernment and regulators, shareholders and investors, customers, partners, employees, suppliers, and communityand the public, and actively respond to their expectations through various channels and means.Decision-makingCSR FocusResponsibility for healthcare industry: building the openaccess platform with the most comprehensive capabilitiesand technologies to enable & expedite development ofinnovative medicines Building an integrated platform consistently Intellectual property protection Responsible operation Promoting the development and communication amongindustry R&D talentBoard of DirectorsManagementIssues of Key Stakeholders and Our ResponseDescriptionChina SecuritiesRegulatory Commission(CSRC)GovernmentandregulatorsHong Kong Securities andFutures Commission (SFC)Local governmentsIssues of concernCommunication channelComplianceRisk managementPollution reductionEnergy useTax authoritiesWater useEnvironmentaldepartmentsClimate changeOn-site visitsCorrespondencePolicy implementationInformation disclosureImplementationResponsibility for environment and community:harmonious development of environment andcommunity Green operation and manufacturing Sustainable supply chain management Harmonious communitySystem and complianceEHSEnvironment, health andsafetyResponsibility for employees:creating an employee-friendly and vibrantworkplace Talent development and retention Employee interests guarantee Employee health and safety Work-life balanceHR Human resourcesCorporate communicationShareholders meetingInformation disclosureRoadshowCustomersStart-ups, researchinstitutions, scientists,entrepreneurs, hospitalsand doctors, etc.Intellectual propertyprotectionProduct and servicequalityBusiness ethicsCustomer surveyTechnical seminarCustomer service hotlineCustomer satisfactionsurveyIndustry co-developmentCommunication and onsite visitsIndustry forumEmployeesEmployeesTalent development andretentionEmployee interests andbenefitsOccupational health andsafetySuppliersSuppliers of raw materials(e.g. experiment reagents,and equipment)Responsible purchasingSupplier evaluationSupplier communicationand trainingCommunityand thepublicCommunity, the public,the media, etc.Community and socialbenefitsPollution reductionGreen chemistryVolunteer serviceCommunity engagementLabor union and workers congressEmployee activityEmployee trainingInternal publicationsAnalysis of MaterialIssuesAccording to the HKEx ESGReporting Guide and GRIStandards, we have identified atotal of 17 CSR material issues inour operations.Based on the CSR practice ofindustry peers, we have takeninto consideration the visionand strategic direction of WuXiAppTec, stakeholders concernand expectations, applicableglobal standards and policies,as well as results from expertconsultation, and have sortedthe 17 material issues to obtainthe matrix of materiality issues.The CSR report providesresponse to and disclosure ofeach materiality issue.Employee interests and welfareTalent developmentand retentionIntellectual propertyprotectionCorporategovernanceProduct and servicequalityRiskmanagementCompliance andbusiness ethicsEconomicperformanceOccupational health and safetyImportance on decision making of stakeholdersRisk managementEconomic performanceCorporate governanceHighInvestors making equity/debt investments to theCompanySenior management s attention and total involvement are indispensable for the effective social responsibilitymanagement. By integrating our CSR management with the expectations of stakeholders, WuXi AppTec divides theCSR tasks to various departments, which promote the CSR practice, in order to create value for stakeholders whilerealizing our own development.11FeddbackSupply chainShareholdersand investorsIndustry associationsCommunicationand feedbackGreen chemistryMarket regulation, etc.PartnersStakeholdersCategoryCommunity andphilanthropyPollution reductionEnergy useWater useGreen chemistryClimate changeMediumIndustryIndustry developmentand win-winResponsiblepurchasingHigh materialityMedium materialityThe Company s economic, environmental and social significanceEmployeesEnvironment andcommunityHighGovernance12

WuXi AppTec at a GlanceCorporate Social Responsibility Report 2018Responsibility forHealthcare IndustryResponsibility for Environmentand CommunityResponsibility for EmployeesDataCorporate GovernanceThe Company carries out standard operation according to the requirements for listed companies, further improvesthe corporate governance structure, and fully utilizes the role shareholder meetings, the Board of Directors andthe Supervisory Committee play in major decisions, business management and supervision. The Company strictlycomplies with the requirements of Company Law of the People s Republic of China, Securities Law of the People sRepublic of China, Code of Corporate Governance for Listed Companies, and other laws, regulations and normativedocuments. It continuously improves the corporate governance structure, in order to guarantee that shareholderscan fully exercise their rights, the Board of Directors can exercise its powers according to laws and regulations andarticles of association to make reasonable, rapid and prudent decisions; that independent Directors can earnestlyperform their duties to safeguard the overall interests of the Company, particularly the legal interests of minorityshareholders; and that the Supervisory Committee can independently and effectively exercise its supervisionand inspection rights for Directors, general manager, other executives as well as the corporate finance to provideinstitutional guarantee for the development of the Company.Board of DirectorsOur Board consists of 12 Directors (ten males and two females), among whom, five are independent non-executiveDirectors. The Board is responsible, and has general authority for, the management and operation of our Company.Our Directors are appointed for a term of three years and are eligible for re-election upon expiry of their term ofoffice. Additionally, in accordance with relevant local laws, regulations, articles, and the corporate governancepractice prescribed in the Hong Kong Listing Rules, we have formed four board committees, namely, the AuditCommittee, the Remuneration and Appraisal Committee, the Nomination Committee and the Strategy Committee.The Company convenes Board meetings on a regular basis, in accordance with the rules stipulated in the CompanyLaw of the People s Republic of China.Composition of Board of DirectorsMeanwhile, based on the requirements of modern corporate system and the management experience of largescale peers, WuXi AppTec sets up a management organization steered by the senior executives. The Company smanagement determines the business objective and development strategy through review of the operations ofsubsidiaries and divisions, analysis of market trends, and customer requirements.According to the Measures for Management of Subsidiaries, articles of associations of subsidiaries and partnershipagreements, the Company exercises its rights of shareholders and partners to nominate and appoint the keymanagement personnel of subsidiaries and divisions; and establishes the functional departments and workobjectives of subsidiaries, in order to guarantee the proper implementation of the management decision of theBoard of Directors and management of the Company. Each department has clear division of labor and perform theirrespective duties to guarantee the standard operation of the internal organization.Unit: number ofpeople2Unit: number ofpeople57executive Directorsmember aged 60-69independent non-members aged 50-59executive Directorsmembers aged 40-4945non-executive1DirectorsOrganizational ChartShareholder meetingSupervisory CommitteeBoard of DirectorsOur Supervisory Committee consists of three Supervisors, including the chairman of the Supervisory Committeeand an employee representative Supervisor. Supervisors serve for a term of three years and shall be subject to reelection upon expiry of the term of office. One member in the Supervisory Committee is female.Supervisory CommitteeStrategy CommitteeNomination CommitteeComposition of Supervisory CommitteeAudit CommitteeRemuneration andAppraisal CommitteePresident (ChiefExecutive Officer)Unit: number ofpeopleUnit: number ofpeople2female membermember aged 50-59male membersmembers aged 40-4911Internal auditdepartmentIT departmentAdministrationdepartmentFinance departmentLegal affairs departmentGovernment affairs andpolicy research officeHR departmentGeneral departmentBoard of Directors office13214

WuXi AppTec at a GlanceCorporate Social Responsibility Report 2018Responsibility forHealthcare IndustryResponsibility for Environmentand CommunityResponsibility for EmployeesDataInvestor CommunicationWuXi AppTec carries out investor communication through multiple channels. The year of 2018 marks the symbolicmilestone of the Company s successful listing on both the A-shares and H-shares markets, and we carried outpublic presentations and roadshows to present our quarterly financial data, semi-annual financial data and IPO,which deepened the understanding of global capital market about WuXi AppTec. Moreover, we also carried outcommunication with minority investors through multiple channels as online roadshow, sns.sseinfo.com, and theCompany s website, email and telephone, in order to guarantee their interests.Institutional investorsMinority investorsCommunicationchannelPublic presentations, teleconferences,roadshows, broker strategy meetings,etc.Online roadshow, sns.sseinfo.com,Company s website, email andtelephoneCommunicationfrequencySince the successful listing on the A-shares market in May 2018, the Company hasorganized one in-person investor communication meeting and over 100 roadshows,participated in nearly 10 investment bank and broker meetings, and received over60 visits by investors and analysts.Internal ControlWuXi AppTec has set up the System and Compliance Department, which is responsible for the overall internalcontrol, corporate governance and legal compliance matters of the Company. We have adopted a series of internalcontrol policies, measures and procedures designed to provide reasonable assurance for achieving objectives,including effective and efficient operations, reliable financial reporting and compliance with applicable laws andregulations. During the Track Record Period, we regularly reviewed and enhanced our internal control system.We have engaged an internal control consultant ( Internal Control Consultant ) to perform certain agreed uponprocedures in connection with the internal control of our Company and our major operating subsidiaries and toreport factual findings on the Company s entity-level controls and internal controls of various processes. TheInternal Control Consultant performed procedures on August 14, 2018 on the Company s system of internal control.As of the Latest Practicable Date, there was no material issue remaining in relation to the internal controls of theCompany.For more information about the corporate governance, please refer to the Annual Report 2018 of WuXi AppTec Co.,Ltd.1516

Corporate Social Responsibility Report 2018Corporate Social Responsibility Report 2018In FocusEnabling More Dreams ofInnovative MedicinesVision-driven Leading Pharmaceutical R&D IntegratedPlatform with 18 Years of Unwavering EffortsFor a long time, drug R&D has been challenging and demanding.Since its establishment in the year of 2000, WuXi AppTec has beenadhering to the vision of every drug can be made and every diseasecan be treated . After 18 years of unwavering efforts, WuXi AppTechas gradually evolved from a laboratory to a globally recognizedleading open-access and integrated pharmaceutical R&D servicescapability and technology platform. Anyone with an innovativeidea, a piece of paper, and a pen can acquire one-stop supportOver3,500from drug R&D till manufacturing on the platform of WuXi AppTec.We will continuously improve capabilities and capacity of thepartners worldwideacquired moreopportunities anddevelopment on theintegrated platform ofWuXi AppTec.integrated platform to enable more innovators and entrepreneursto participate in various steps of drug R&D, as well as more researchinstitutions, scientists, and hospitals and doctors to realize theirinnovation dreams, thus benefiting more patients.Top20 globalpharmaceuticalcompanies by revenueare all customers of WuXiAppTec.On June 8, 2018, Ganovo (DanoprevirSodium Tablets), a new HCV drugdeveloped by Ascletis Pharma Inc.,one of our partners, was approvedby the National Medical ProductsAdministration of China (NMPA),bringing an affordable therapy to over10 million HCV patients in China.As the first innovative drug for HCVgenotype 1 developed by a Chineseenterprise, Ganovo was thus hailed asthe Chinese force of HCV elimination .During the R&D of Ganovo , STA,a subsidiary of WuXi AppTec, tookadvantage of its industry-leadingR&D technology and manufacturingplatform to assist Ascletis in processoptimization, process validationand New Drug Application (NDA)submission and approval of activepharmaceutical ingredients (APIs) ofGanovo , making it the first ContractDevelopment and ManufacturingOrganization (CDMO) to support thelaunch of innovative drugs in Chinasince the implementation of MarketingAuthorization Holder (MAH) pilotprogram.The year of 2018 is a remarkable year of the Chinese pharmaceutical industry. With concerted efforts, thenumber of new medicines approved by FDA hit a record high in 20 years. Breakthroughs and remarkableachievements were made in multiple fields as immunotherapy, new medicines and artificial intelligence.In the golden era for pharmaceutical innovation, WuXi AppTec will further improve its integratedplatform to fully release the potential of the platform and improve productivity; continuously enable thehealthcare ecosystem to support the success of partners; and enhance the capability of doctors to bringbetter treatment to patients.1718

Corporate Social Responsibility Report 2018Corporate Social Responsibility Report 2018Taking Advantage of the Favorable Policy to Support theInnovative Force in Drug R&D FieldFuture Drugs Continuously Enabling the HealthcareEcosystemIn June 2016, the General Office of the State Council of People sIn the future, we will continuously expand the platform of WuXiRepublic of China issued the Notice on Issuing Pilot Program ofMarketing Authorization Holder (MAH), marking the comprehensivetrial implementation of MAH. MAH approves the separationbetween drug marketing license and manufacturing license, whichallows that, in addition to drug manufacturers, R&D institutionsand researchers can acquire a drug approval number as MAH andthen entrust an eligible drug manufacturer for the manufacturing.The policy has significantly motivated the enthusiasm of R&Dinstitutions and researchers for drug R&D. The year of 2018 marksthe third year of the trial implementation of MAH, and the favorableOn September 6, 2018, Elunate (fruquintinib capsules), a noveldr ug for me t as t at ic colore c t alcancer developed by HutchisonMe diPhar ma (HMP), one of ourpar tners, was approved formarketing by the National MedicalProducts Administration of China(NMPA). This is the second innovativedrug approval in China supportedby STA, a subsidiary of WuXi AppTec,since the implementation of theMarketing Authorization Holder(MAH) pilot program.policy expedites the launching of new medicines.and capability can truly release more potential to enable moreresearchers of innovative medicines. In this regard, we will furtherstrengthen our global presence, add a new momentum to theplatform via expanding capacity and capability, and improve ourability to better serve global customers.In the year of 2018, we planned and built multiple new R&D andmanufacturing facilities in Sha

Corporate Social Responsibility Report 2018 WuXi AppTec at a Glance Responsibility for Healthcare Industry Responsibility for Environment and Community Responsibility for Employees Data Corporate History WuXi AppTec has evolved from a laboratory of 650 square meters with four founders to an international company with over 18,000 employees.