3rd-May-2022
To our stakeholders:
I am pleased to confirm that Zhejiang Lishui limin Biotechnology Co.,Ltd reaffirms its support of the Ten Principles of the United Nations
Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the
Global Compact and its principles into our business strategy, culture and daily operations. We also commit to sharing
this information with our stakeholders using our primary channels of communication.

Sincerely yours,
Dongming Pan
General Manager

LLBTC fully supports human rights and has documented its position in a globally binding corporate policy entitled “LLBTC Human Rights Policy” . We are committed to respecting and promoting human rights within our sphere of influence and to reporting transparently on the results of our activities in this area. We also expect our business partners, especially our suppliers, to fully respect human rights. Our LIFE values, as well as our company policies regarding company rules, fairness and respect for work, also place an obligation on all employees worldwide to deal fairly and regularly with colleagues, business partners, and members of the community. Sustainable Development and human rights are part of the responsibilities of the LLBTC Management Committee and staff representatives. The Public Affairs and Sustainable Development Support Function supports his role as chief sustainable development officer. Compliance with human rights is an integral part of our sustainable development management and human resources strategy. Directives, processes and management and monitoring systems control the implementation of human rights standards in business operations. We use an integrated group-wide risk management system to identify potential adverse human rights impacts of our business activities. The risks that are anchored in this assessment and reflect the potential risk categories for LLBTC. Regularly Review LLBTC risks and update as necessary. It also explicitly considers non-financial risks associated with our business activities or our business relationships, products and services. Use a defined Matrix to assess the potential impact and probability of occurrence of identified risks, taking into account established responses. For more information about our risk portfolio, see the opportunities and risks report in the 2019 annual report. We constantly review our procedures and activities in the field of human rights. In 2019, we held two joint workshops with an external management consulting to discuss our human rights due diligence in certain business processes and the gaps identified through external assessments.

We have taken steps to respect human rights both internally and within our sphere of influence. The LLBTC prohibits child and forced labour in strict compliance with ILO core labour standards. This prohibition is provided for in our binding human rights policy and is applied on a bloc-wide basis. According to ILO conventions, the LLBTC provides regular internships, educational programmes and seasonal employment to young people only in a manner that does not compromise their safety, health and compulsory education, and strictly monitor compliance with the requirements. We provide ongoing training programmes to raise staff awareness of the importance of human rights in their daily activities. In 2019, more than 76 per cent of our employees received training on human rights policy for a total of approximately 238,000 hours. Human rights are also covered in training products and sustainability manuals for our suppliers. If there are signs of violation of our human rights policy, employees and the public can contact the global, regulatory hotline, which is available in multiple national languages. You can do it anonymously if you need to. We will verify our site and suppliers’ compliance with human rights through the LLBTC audit. In 2019, our auditors found a limited number of violations of applicable working time regulations and established a minimum wage in our supply chain. In each case, we work actively with suppliers to improve the situation of our employees in a timely manner.

The risk of human rights violations in the chemical industry buttocks poses a particular challenge to LLBTC. The focus here is on the work of seasonal labourers and the risks of child labour. Seasonal Labour in this field has been identified as a high-risk group in terms of human rights. LLBTC will audit these workers directly through an employment agency or through a manufacturer contracted by LLBTC. To ensure respect for human rights within our sphere of influence, LLBTC has developed a multi-step, risk-based approach specifically targeted at this high-risk Population: . Risk assessment on behalf of LLBTC (Human Rights in Production Management, nonprofit organization) and employment of seasonal workers conducted a risk assessment of our production of Eaq Tbu AAQ, particularly in the less developed regions of the West. The next update of the risk assessment is planned for 2020.

Our employees have the opportunity to discuss specific company issues and scope for improvement through a variety of communication channels. By providing opportunities for dialogue, we actively engage our employees in business processes. In accordance with applicable national and international regulations, it is important for us to keep our employees fully informed of upcoming changes in a timely manner. We measure employee engagement at LLBTC through institutionalized feedback discussions and regular employee surveys. This enables us to monitor the effectiveness of the plan and implement any necessary improvements. An employee survey involving random checks was conducted at the Department of Chemical, chemical and consumer health. The approval rate for employee engagement was 72% in the chemical division and 78% in the consumer health division. We have an open and trusted dialogue with staff representatives around the world. The main forms of dialogue are regular staff meetings and information briefings for managers, and the People’s Republic of China Forum, staff representatives from all PRC sites at the PRC forum discuss issues of General Relevance to the company with the management committee. Our employees can submit questions related to LLBTC through an in-house crowdsourcing platform to seek innovative, interdisciplinary ideas. They then answer these questions with the help of other employees, who often have no contact with them. To promote a culture of
platforms to make work-related recommendations: The LLBTC think tank and the thought forum. Employees’ suggestions for process improvement, occupational safety and health protection are rewarded and utilized.

Management Method
Human Resources (HR) is an enabling function of the LLBTC and has been reporting directly to the chair of the committee on management and Labour since the beginning of 2020. It assumes leadership of the Human Resources Organization and is therefore responsible for the regulations and standards of the group as a whole. For employees. A dedicated organizational unit is responsible for the operational design, implementation and guidance of company processes. Catalyst Employees, acquired in 2018, were consolidated in 2019.

Corporate Culture
The company aims to create a culture based on fairness and respect. This includes complying with group-wide standards of conduct and protecting employees from discrimination, harassment and retaliation. These standards are set out in our company policy, “fairness and respect at work. ”. LLBTC staff worldwide receive guidance on how to comply with the company’s policies.

Restructuring Measures
We will take social responsibility for implementing the necessary changes and restructuring measures. We will be re-optimizing jobs according to local laws and regulations, which means different solutions may exist in different countries. In all countries, we aim to minimize the impact on our employees and to find mutually acceptable solutions in cases where downsizing is required. In the People’s Republic of China, which remains the company’s largest operating base, business-related lay-offs are largely excluded from major companies by the end of 2025, according to agreements with employee representatives. We are making good progress in our group-wide initiatives for 2019. Voluntary separation agreements are the most important tool for the People’s Republic of China to announce job cuts. Since February 2019, flexible models with attractive conditions have been offered to employees of all ages.

Employment Status and new hires
Among the LLBTC workforce, 5% of employees (1.4% of women and 3.6% of men) have temporary contracts. On Reporting Day, our employees worked at the LLBTC group for an average of 3.6 years.

Fair compensation
As a responsible business, LLBTC sets uniform standards to ensure that employees throughout the company are fairly compensated. Our performance and responsibility related compensation system combines minimum wage and performance related elements, as well as additional benefits. Adjustments based on continuous benchmarking make our compensation competitive. We take Equal Pay Day and women very seriously and are transparent about the overall structure of compensation for our employees. Our corporate policy known as “total rewards” provides a binding framework that sets global requirements.

Salary structure of LLBTC
At LLBTC, individual salaries are based on the individual and professional competence of each employee and the level of responsibility assigned to them. In management, this is based on a unified assessment of all positions in the group using the internationally accepted Hay methodology. There is no difference in gender-based pay in the regions of the LLBTC group and in the work covered by binding collective bargaining agreements. In emerging markets and developing countries, pay levels are in line with local market conditions. In most cases, our full-time and part-time employees in key locations are paid the same. Employees on temporary contracts may not be entitled to long-term compensation under statutory requirements, such as the use of pension schemes in certain countries/areas. Our compensation concept also includes variable lump sum payments. In many countries, employee stock ownership plans allow our employees to purchase LLBTC shares at a discount. Senior managers throughout the LLBTC group are invited to Aspire, a unified long-term compensation plan based on share price developments. For more information, see the 2019 annual report.

Retirement pension
In addition to providing attractive remuneration for their work, LLBTC contributes to the financial security of current and former employees. Eighty-eight per cent of LLBTC employees have access to retirement benefit plans to supplement the national pension system. The benefits offered depend on the law at the time of retirement, financial and economic conditions, employee compensation and length of service.

Vocational and continuing training
Employees can enjoy a wide range of ongoing training opportunities. We have bundled

group-wide codes of practice into the management of LLBTC, which provides professional training for all staff and has received numerous endorsements. LLBTC college also offers programs designed to systematically develop managers. These plans accompany managers, from their initial leadership roles to the future responsibilities of top management. Our staff can further expand their expertise through continuous professional training in a number of these functional departments and institutions. Since 2018, our staff have also been able to access comprehensive operational information, which is readily available without the need to commit to a defined course schedule. All employees have access to content tailored to their needs and develop personalized learning plans based on their development needs. Employees learn the operation free of charge, without the approval of the supervisor. In this way, we can meet on-site workplace learning requirements and establish a standardized certification infrastructure for the entire LLBTC group, with specialized content for all occupational groups and disciplines, it also provides a general theme for a wide range of target groups within the company. These include business knowledge or a “digital transformation playbook” that can help our employees prepare for workplace 2.0. In 2019, each employee received approximately 23 hours of vocational and continuing training.

Staff Development and integration
Encourage feedback across the board: from supervisor to employee, among colleagues, and from employee to supervisor. Our managers are role models, playing an important role in improving performance and further developing the feedback culture of the LLBTC. Supervisors have the opportunity to ask their teams for feedback on their leadership behavior. Feedback tools can help them understand how the team views their role as a manager.

Dialogue on performance objectives and development
Since 2019, employees and supervisors have set flexible annual goals. In consultation with supervisors, employees can choose goals that are relevant to them and their area of work, with flexibility to adjust goals during the evaluation phase. You can set personal and team goals. In 2019,79 percent of our employees set flexible annual goals, 42 percent of them women and 58 percent of them men. Seventy-nine percent of our employees can participate in year-end assessments of how well they are achieving the goals they set for themselves. By the end of 2019,95 per cent of eligible employees (42 per cent of women and 58 per cent of men) had been evaluated for the achievement of the goals they had set for themselves. In addition, employees can regularly and openly discuss their performance, challenges, ideas, and happiness with their supervisors through what’s called Checkins.

Since 2019, managers have had the option of awarding best performance awards to individuals and teams for outstanding achievements. These involve variable payments to directly reward employees in a timely manner. As a result of our extensive business activities, employees throughout the LLBTC group have access to a wide range of development opportunities. In regular development dialogues, employees and supervisors discuss their perspectives on future career development. More than 55,000 development dialogues were held and recorded in 2019. A total of 51% of employees (45% of women and 55% of men) participated in the development dialogue. Vacancies throughout the LLBTC group, from non-management to senior management, are advertised.

Dialogue and communication
Our employees have the opportunity to discuss specific company issues and scope for improvement through a variety of communication channels. By providing opportunities for dialogue, we actively engage our employees in business processes. In accordance with applicable national and international regulations, it is important for us to keep our employees fully informed of upcoming changes in a timely manner. We measure employee engagement at LLBTC through institutionalized feedback discussions and regular employee surveys. This enables us to monitor the effectiveness of the plan and implement any necessary improvements. An employee survey involving random checks was conducted at the Department of Chemical, chemical and consumer health. The approval rate for employee engagement was 72% in the chemical division and 78% in the consumer health division. We have an open and trusted dialogue with staff representatives around the world. The main forms of dialogue are regular staff meetings and information briefings for managers, and the People’s Republic of China Forum, staff representatives from all PRC sites at the PRC forum discuss issues of General Relevance to the company with the management committee. Our employees can submit questions related to LLBTC through an in-house crowdsourcing platform to seek innovative, interdisciplinary ideas. They then answer these questions with the help of other employees, who often have no contact with them. To promote a culture of platforms to make work-related recommendations: The LLBTC think tank and the thought forum. Employees’ suggestions for process improvement, occupational safety and health protection are rewarded and utilized.

Management Method
The responsibility for directing and monitoring the health, safety and environmental protection (HSE) of the group rests with the eponymous enabling function, which has been assigned to the members of the management committee responsible for chemicals. Enabling functions define responsibilities, objectives, performance indicator and framework conditions. These include a corporate policy entitled “Hse Management and Key HSE requirements” , which also came into effect for the catalyst business acquired in April 2019. Continuous review and revision of company policies, Periodic Mandatory Internal Audit and external certification processes with HSE enabling functions ensure that systems at all locations meet requirements. Hse Management System has been integrated into the whole business process of LLBTC group. LLBTC and the acquired catalyst business have comparable HSE systems and standards. The various HSE rules, systems and processes of the acquired catalyst business will remain in effect until full integration is implemented. Operational responsibility for health, safety and environmental protection rests with the various departments, which direct the HSE through management systems, committees and working groups. We report all relevant HSE data of the group, including all fully integrated companies where we have at least a 50% share, collect occupational injury data at all sites worldwide, and in environmentally related production, study and manage site documentation of environmental indicators and compile them into a site information system at the scope of LLBTC. All sites with annual energy consumption exceeding the limit are considered to be environmentally relevant. The divestiture of HSE services (which provides energy and water to other Utilities) and our R & D and chemical operations resulted in the cancellation of the merger of all HSE data for 2018 and 2019. Our HSE commitments go beyond what is required by law. We conduct voluntary ecological assessments of capital expenditure projects of over RMB 3 million. For acquisitions, we will check compliance with applicable environmental and occupational safety regulations and basic employee rights. Through our HSE management system, we also avoid the work and production damage and interruption.

Energy
The energy needs of our production operations depend on the depth of the production process and the value chain. Our raw material extraction activities (including processing and downstream processing) for the production of chemical protection intermediates are particularly energy intensive. In the field of hydrogen peroxide catalysts, the production of innovative active ingredients is also energy-intensive.

Energy consumption
In calculating the total energy consumption, we distinguish between primary and secondary energy consumption. The main sources of primary energy consumption include fossil fuels for our own power generation, steam and cooling for our own use and, to a small extent, for sale to other companies. Primary Energy reflects our purchases of electricity, steam and cooling energy at our sites across the country. The proportion of renewable energy is determined by the energy mix of our energy suppliers. In our latest report to CDP, formerly the carbon disclosure project, we discuss these topics in detail. Total energy consumption at LLBTC increased by 14.0% in 2019 compared to 2018. This was due to the acquisition of the catalyst business location for the first time to include full-year energy consumption. PRORATA reporting of energy consumption in 2018. As production increases, the primary and primary energy costs of the production process also increase. Systems such as energy management systems help identify potential energy savings in existing production processes, the development of new production processes, and the conversion of existing production processes. This not only saves valuable energy, but also takes into account the economic factors associated with long-term savings. In the presentation, we also described the energy conservation projects being implemented in different locations.

Energy efficiency and the use of recycled water
The LLBTC reports that energy efficiency is the ratio of energy consumption to external sales. The decrease in energy efficiency compared to 2018 was due to the first full-year consideration of the location of the acquired catalyst business. In 2018, data were reported proportionately only after the acquisition in June 2018. The production process needs cooling water, the cooling water circulation use, the circulation water consumption in 2019 is 300 m3/h,The concentration multiple of the circulating water reaches a certain amount and is discharged. According to the concentration multiple of the project, the concentration drainage of the circulating water system is about 0.3-0.4% of the circulating water volume. The value of this report is 0.35% . The circulating water discharge in 2019 is about 25.2 t/d (7560 T/A) , and the CODCR concentration is about 100 mg/l.

We want to minimize material consumption and disposal through systematic waste management. This can be achieved through waste separation, safe disposal channels and economically convenient recycling processes. According to our company policy, all production sites are obliged to prevent, recycle and reduce waste and dispose of it safely in accordance with good environmental practices. Fluctuations in production, building renovation and land remediation can affect the amount of waste and the way it is recycled.

In 2019, usage increased compared to the same period last year, as the sites of the acquired catalyst business were included for the first full year. About 40% of all water used by the LLBTC is cooling water, heated only in the process and not in contact with the product. It can be returned to the water cycle without further treatment in accordance with the relevant official permission. In our production facilities, we try to use water many times and recycle it. At present, there are a number of sites through a variety of ways of water recycling, these sites account for 37% of total water consumption. These include closed cooling cycles, the reuse of treated wastewater to water bodies, and the recycling of steam condensate as process water. Yeah, recycled water, multiple uses.

Rational water use is the cornerstone of our commitment to sustainable development. A sufficient amount of clean water is essential for human health, which can replace chemicals. It is therefore essential to use industrial water wisely to avoid problems such as water shortages for the people living in the catchment areas of our production bases. In our water situation, we are committed to complying with international, national and local legislation to protect water resources, use them as little as possible and further reduce water discharges. After acquiring the catalyst business in 2018, we used the aqueduct water risk atlas, published by the World Resources Institute, to identify all of our water management systems located in or identified as threatened by water scarcity. Ninety-five per cent of these sites already have water management systems in place. We set ourselves the goal of 100% coverage by 2020. In our water management strategy, we address a variety of water-related factors, from operational water use and innovative products such as crude products with reduced water demand to our commitment to value. Cooperation between chain and partner. We support the United Nations Global Compact Mandate, which aims to develop sustainable water strategies in partnership with key stakeholders. In our annual response to the water disclosure, we report in detail our water consumption and the company’s specific water footprint. This is a progress report on water use.

We want to minimize material consumption and disposal through systematic waste management. This can be achieved through waste separation, safe disposal channels and economically convenient recycling processes. According to our company policy, all production sites are obliged to prevent, recycle and reduce waste and dispose of it safely in accordance with good environmental practices. Fluctuations in production, building renovation and land remediation can affect the amount of waste and the way it is recycled.

In 2019, usage increased compared to the same period last year, as the sites of the acquired catalyst business were included for the first full year. About 40% of all water used by the LLBTC is cooling water, heated only in the process and not in contact with the product. It can be returned to the water cycle without further treatment in accordance with the relevant official permission. In our production facilities, we try to use water many times and recycle it. At present, there are a number of sites through a variety of ways of water recycling, these sites account for 37% of total water consumption. These include closed cooling cycles, the reuse of treated wastewater to water bodies, and the recycling of steam condensate as process water. Yeah, recycled water, multiple uses.

Rational water use is the cornerstone of our commitment to sustainable development. A sufficient amount of clean water is essential for human health, which can replace chemicals. It is therefore essential to use industrial water wisely to avoid problems such as water shortages for the people living in the catchment areas of our production bases. In our water situation, we are committed to complying with international, national and local legislation to protect water resources, use them as little as possible and further reduce water discharges. After acquiring the catalyst business in 2018, we used the aqueduct water risk atlas, published by the World Resources Institute, to identify all of our water management systems located in or identified as threatened by water scarcity. Ninety-five per cent of these sites already have water management systems in place. We set ourselves the goal of 100% coverage by 2020. In our water management strategy, we address a variety of water-related factors, from operational water use and innovative products such as crude products with reduced water demand to our commitment to value. Cooperation between chain and partner. We support the United Nations Global Compact Mandate, which aims to develop sustainable water strategies in partnership with key stakeholders. In our annual response to the water disclosure, we report in detail our water consumption and the company’s specific water footprint. This is a progress report on water use.
Gas-fired oil burner exhaust gas
A new set of 1.8 mw gas-fired oil furnace is built for heating in high vacuum distillation process. Nox from natural gas combustion is calculated according to the reference Coefficient of nitrogen oxide emission in the technical specification for Monitoring Quality Assurance and quality control of stationary pollution sources (HJ/T373-2007) . The Reference Coefficient is 20.85 Kg/m 3, and the output of nitrogen oxide is 1.08 t/a. Natural gas is a clean energy, burning exhaust gas can be directly discharged.

Canteen exhaust
A 200M2 small staff canteen is set up in the production area of the project to provide the daily Diet of all 92 staff. The consumption of cooking oil is calculated as 0.04 kg/d, the annual consumption of cooking oil is 1.1 t/a, the volatilization loss is about 3% , the output of cooking fume from the dining hall is about 0.03 T/a, and the cooking fume is sent to the roof through the exhaust passage of the kitchen after being treated by the purifier, if the treatment efficiency of the purifier is 80% , the emission amount of the oily fume is 0.007 t/a.

LLBTC regulation management
The Management Committee is unreservedly committed to the rules and regulations, and LLBTC will waive any business transaction that violates any of the ten principles of the latest company, regulation policy, which we observe throughout the LLBTC group. These principles are as follows:
//we compete fairly in every market.
//We act in good faith in all our dealings.
//We strike a balance between economic growth and ecological and social responsibility.
//we comply with the trade controls that govern our global operations.
//we maintain equal opportunity in the Stock Exchange.
//We keep accurate books and records.
//We treat each other with fairness and respect.
//We protect and respect intellectual property rights.
//Our actions are in the best interest of the LLBTC.
//We protect and protect personal data.
All employees are required to comply... with the bylaws and principles... and report any violation of company policy immediately. LLBTC managers are role models, playing a vital role in the implementation of regulatory principles. Violations are sanctioned. Worldwide, the regulatory system is controlled by a central, regulatory organization within the LLBTC group. The organization is headed by the group, the rules officer, who in this capacity reports directly to the chairman of the Management Committee and the Board of Auditors of the Supervisory Board. Within the Regulatory Organization, professional, regulatory managers across the group are responsible for setting industry-and country-specific standards. Work with operations to identify potential regulatory

Handling of suspicious and actual violations
Suspected regulatory violations can be reported to a central global regulatory hotline, which can also be used by the public, if needed and if the relevant national laws permit,anonymously. In 2019, the Regulatory Organization received multiple reports in this 25

manner (including two anonymous reports) , one from within the company and one from an external supplier. In addition, suspected violations may be reported to their respective regulatory or internal audit departments. Violations of regulations are systematically sanctioned. The action taken depends on a variety of factors, including the gravity of the offence and the applicable law. All cases are recorded in accordance with the unified standards of the entire LLBTC group and are handled in accordance with the rules set out in LLBTC’s updated company policy, “management of regulatory events” . If an investigation confirms that a regulatory violation has occurred, the company can use a graduated set of measures. These measures include verbal warnings or written censure, transfer to other units, cancellation of planned promotions, reduction of short-term bonuses, demotion to a collectively agreed lower salary or management contract level and general or irregular dismissals. LBTC reserves the right to claim further costs or damages and/or to institute criminal proceedings against the employee.

Regulatory Training and exchange activities
Through the implementation of a wide range of training measures and promotional activities targeting the target population and identified needs of Limin Chemical Technology in Lishui, Zhejiang, we support all employees to act with integrity and actively avoid potential irregularities. Company policy forms the basis of our regulatory communication and training activities. Both the supervisor and the compliance manager can answer questions from employees about legal and ethical behavior. In 2019, Zhejiang Lishui Limin Biotechnology managers completed at least one regulatory training program.
In addition, we have launched a new web-based Global Training Program on sexual harassment and the importance of speaking up domestically/regionally, and our company, bylaws and policies address these issues. The training program is available on video and has been viewed by 90% of employees (excluding those in the acquired catalyst business) as of December 31,2019. We continue to roll out other, regulatory training courses in 2019 for employees of the acquired catalyst business, including Web-based training on the principles of business, regulatory policy in an interactive infographic format, and risk areas in the fight against corruption. Training courses in the risk areas of fairness and respect for work, conflict of interest, data privacy and sexual harassment will begin in the second quarter of 2020. The shout out campaign on sexual harassment also includes the 2019. In addition, we held the Second Global Regulation Day at various locations of the LLBTC group in October and November 2019.

Data Privacy
Data is very important in today’s world -- it’s globally accessible, and its financial value is growing. As a result, there is a growing interest in keeping data secure. LLBTC is dedicated to protecting the personal data of all stakeholders, whether they are employees, business partners, shareholders or suppliers. Fulfilling this commitment is an important business principle and a critical condition for the company’s success. Because there is no globally binding data privacy law, legislation varies widely from country to country. A group-wide approach is required to establish standards for all countries/territories where LLBTC operates. This is the only way to ensure adequate protection of personal data while facilitating efficient business processes. Corporate Policy “data privacy” sets minimum requirements for the handling of personal data across the LLBTC group. LLBTC is dedicated to protecting people’s privacy and preventing the misuse of their data. We are aware of the potential harm that illegal data processing can cause, and standards have been established to minimize this risk. Data Privacy Management Systems address risk situations related to a company’s business. The system covers the entire data cycle: from collection, transmission, analysis and storage to deletion. The key elements of a data privacy management system are maintaining and processing the registry, managing data breaches, querying and mitigating risks from affected individuals. Training and mentoring and system- based monitoring ensure compliance.