Opening Sustainable Development Sustainable Products Climate and Environment

Strategy and Management

About this Report 01 Sustainable Development Strategy 09 Developing More Sustainable Products 19 Climate Strategy 37

President’s Message 03 Sustainable Development Goals 10 Commitment to High Quality 26 Energy Management 41

Sustainability Highlights of the Year 05 Sustainable Development Governance 11 Chemical Safety 32 Resource Use 44

About M&G 07 Management of Sustainability Topics 12 Eco-Friendliness 47

Shared Prosperity Across the Employees and Communities ESG Performance Report 73

Value Chain

Appendix

Business Ethics 51 Occupational Health and Safety 61

Supply Chain Management 54 Talent Cultivation and Development 62 Independent Assurance Statement 88

Partner Development 56 Happy Workplace 66 Indicator Index 90

Social Welfare 70M&G Stationery 2024 Environmental Social and Governance (ESG) Report Opening Sustainable Development Sustainable Climate and Shared Prosperity Employees and ESG Performance Appendix

Strategy and Management Products Environment Across the Value Chain Communities Report

About this Report

This report is the fourth Environmental Social and Governance Report (hereinafter referred to as "this Report") released by Statement

Shanghai M&G Stationery Inc. (hereinafter referred to as "M&G Stationery" "M&G" "we" or "the Company") focusing on

the disclosure of M&G's concepts progress and highlights in environmental protection social responsibility and corporate

governance during 2024. Data used in this Report is sourced from the Company's official documents related reports and statistical reports. Unless

otherwise specified all monetary amounts in this Report are in RMB.To facilitate readers' better understanding of M&G's sustainability topics and performance in their respective areas of interest

this report categorizes its main chapters by information type: This Report has been reviewed and approved at the 10th meeting of the 6th Board of Directors the 1st meeting of the Strategy

Committee in 2025 and the 10th meeting of the 6th Board of Supervisors of M&G held on March 24 2025.● Sustainability Strategy and Management: M&G's sustainable development governance strategies risk management etc.;

● Four chapters include Sustainable Products Climate and Environment Shared Prosperity Across the Value Chain Employees

and Communities: Key annual progress and case studies under M&G's sustainable development strategy;

● ESG Performance Report: Management approaches and target plans for M&G's sustainability initiatives. Report Assurance

To enhance the authenticity and reliability of this Report it has undergone third-party assurance by CECEP (HK) Advisory

Company Limited. An independent assurance statement has been provided with detailed content available in the "Independent

Basis of Preparation Assurance Statement" chapter.This Report is prepared in accordance with the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed

Companies—Sustainability Report (Trial) ("SSE Sustainability Report Guidelines") issued by the Shanghai Stock Exchange Access to Report

("SSE"). It also references the Corporate Sustainability Disclosure Standards – Basic Standards (Trial) jointly issued by nine

Chinese government authorities including the Ministry of Finance of the People's Republic of China the GRI Sustainability

Reporting Standards ("GRI Standards") issued by the Global Sustainability Standards Board ("GSSB") the IFRS Sustainability This Report is available in both Simplified Chinese and English versions. In case of any discrepancy between the two versions

Disclosure Standards (IFRS S1 and IFRS S2) issued by the International Sustainability Standards Board ("ISSB") the the Simplified Chinese version shall prevail.recommendations of the Task Force on Climate-related Financial Disclosures ("TCFD") and the United Nations Sustainable

Development Goals ("SDGs"). This Report is published in both printed and electronic formats. The electronic version can be viewed and downloaded on the

SSE website (www.sse.com.cn) the CNInfo Information Disclosure Platform (www.cninfo.com.cn) and M&G Stationery's official

corporate website (www.mg-pen.com).Scope of Report

Feedback and Suggestions

Reporting scope: The reporting period aligns with M&G's 2024 Annual Report covering January 1 2024 to December 31 2024

(hereinafter referred to as "this year" or "the reporting period"). Selected content and data may extend to or reference other For any inquiries or feedback regarding this Report please contact us through the following channels:

years where appropriate.Address: No. 5 Lane 288 Qianfan Road Xinqiao Town Songjiang District Shanghai

Organizational Scope: Unless specifically stated the information and data disclosed in this Report align with the scope of M&G's

2024 Annual Report encompassing M&G Stationery and its subsidiaries. Email: ESG@mg-pen.com

01 02M&G Stationery 2024 Environmental Social and Governance (ESG) Report Opening Sustainable Development Sustainable Climate and Shared Prosperity Employees and ESG Performance Appendix

Strategy and Management Products Environment Across the Value Chain Communities Report

President’s Message

framework has been fully integrated into our internal We conduct systematic employee engagement surveys

product development process. Through themed online and using scientifically grounded survey results to continuously

In 2024 against a backdrop of increasing geopolitical offline initiatives such as “Refill for the Earth” and “Green improve our talent management strategies. Our ultimateand economic uncertainty the global transition toward Credits” we leverage our products as a platform to promote goal is to enhance organizational performance and support

sustainable development has become an unstoppable low-carbon lifestyles and plastic reduction habits. Together the long-term development of our employees.force. In response to this shift M&G remained committed with our consumers we are turning sustainability into

to advancing its sustainability strategy embedding the action—“Writing a Greener Future.” This year the Shanghai M&G Foundation deepened

sustainability philosophy into strategic decision-making and its support for rural art education leveraging corporate

business operations. Over the past year we have made Advancing Climate Action and Carbon Reduction resources to launch innovative strategic charity initiatives

significant strides across multiple key areas—including Across the Value Chain aligned with China’s rural revitalization strategy. Since

strategy products climate supply chain employees and 2022 these initiatives have generated 1.1 million instances M&G is actively advancing the carbon peaking and

charity. This year M&G achieved an A rating in the MSCI of benefit expanding access to high-quality educational carbon neutrality goals of China driving green and low-

ESG Ratings was recognized as a National Green Factory resources for students and teachers. We have also built carbon development while fostering a sustainable supply

and earned a spot on 2024 Fortune China ESG Impact List platforms for charity participation. This year the Shanghai chain in partnership with our upstream and downstream

all representing major milestones on our journey toward M&G Foundation along with other M&G’s subsidiaries stakeholders. In our own operations we have set emission

“Writing a Sustainable Business Future.” mobilized employees in charity events generating 4435 reduction targets aligned with the Paris Agreement and instances of participation contributing 9221 hours ofcontinue to implement our carbon reduction strategy service and building a corporate culture of “Everyone forthrough improved energy and resource efficiency and Charity.”

the expanded use of renewable energy. By 2024 we had

successfully reduced Scope 1 and Scope 2 emissions The journey ahead may be long and arduous but with

by 46.4% compared to 2021. At the same time we are sustained actions we will eventually reach our destination

embedding the sustainability philosophy throughout our and embrace a brighter future. We are confident that our

value chain prioritizing ESG management and green and unwavering commitment to sustainable development will

low-carbon development among our key suppliers. This unlock new opportunities for growth and create meaningful

year we expanded our ESG assessments to cover all key societal impact. M&G remains steadfast in its mission

Strategic Leadership in Sustainable Development departmental collaboration to drive goal achievement. We suppliers and conducted one-on-one on-site audits and driven by pragmatism and innovation creating lasting

have also incorporated ESG metrics as a key performance improvement initiatives raising the rectification pass rate value for shareholders employees customers and society.Leveraging our extensive experience in sustainability factor in the evaluation of business unit and department of audited suppliers to 96.3%. Additionally we completed Looking ahead we invite all stakeholders to join us in

we have further refined our long-term roadmap setting leaders creating a long-term incentive mechanism. carbon emissions data collection for 110 suppliers and building a greener more sustainable future.quantifiable targets and implementation pathways toward explored multiple sustainability initiatives including

2030 under four strategic pillars: Sustainable Products Driving Green Consumption with Sustainable Products packaging reduction and recycling display prop reuse and

Response to Climate Change Sustainable Supply Chain enhanced energy efficiency in logistics and warehousing.and Empowering Employees and Communities. Our focus At M&G we view our products as the vital bridge between By extending these efforts across our value chain we are

is on transforming the ESG philosophy into measurable the Company and consumers. We are committed to

Chen Huxiong

reinforcing our commitment to building a low-carbon and

and traceable actions. To ensure full and effective continuously delivering innovative high-quality and green future. President of Shanghai M&G Stationery Inc.implementation of the targets we continue to enhance sustainable solutions that meet the expectations of the new

our ESG governance system. Our Risk Management and generation of environmentally conscious consumers. This People-Oriented Approach: Embodying the Values of

Compliance Committee now operates regularly. We have year we expanded our portfolio of sustainable products “Benefiting Others” Through Action

completed a comprehensive Group Risk Map. Additionally introducing the “Endangered Animals: Wetland” and “DeepAt M&G we believe that coexistence and shared prosperitywe have achieved a 96% completion rate in training on Blue Planet” series. These new offerings incorporate

the M&G Code of Business Conduct comprehensively recycled plastics and biodegradable materials as primary with our employees and communities are fundamental to

improving our employees’ ability and awareness regarding raw materials significantly reducing their impacts on nature

long-term success. We are dedicated to building a platform

risk prevention and control. Furthermore we have set and the environment. Building on this momentum we

for employee growth and development as well as a

harmonious and fair workplace environment ensuring the

up special task forces focused on key topics such as have refined our sustainable product evaluation standards

sustainable product development chemicals management establishing a unified framework that now guides the

health and safety of all employees. Diversity Equity and

design and development of all sustainable products. This Inclusion (“DEI”) are embedded in our corporate culture. and occupational health and safety fostering efficient cross-

03 04M&G Stationery 2024 Environmental Social and Governance (ESG) Report Opening Sustainable Development Sustainable Climate and Shared Prosperity Employees and ESG Performance Appendix

Strategy and Management Products Environment Across the Value Chain Communities Report

Sustainability Highlights of the Year Empowering employees and communities

● Training system covered 98% employees; average hours of training per employee reached 14.6

Strategy and management ● Female employees accounted for 48% of the workforce

● 32 female mid-to-senior managers participated in the Women’s Leadership Workshop

● Defined the 2030 Strategic Goals for Sustainable Development and established a goal management system

● The inaugural Sustainability Culture Month attracted over 3000 employees’ participation

● M&G Foundation’s “Art Education Plan” program was extended to 624 rural schools and 36 community centers

Sustainable products across 23 provinces and cities;

The “Golden Seed Plan” education assistance program donated over 60000 stationery kits;

● Revised the M&G Sustainable Product Evaluation Standard and fully integrated it into the product Generating over 440000 instances of benefit for primary and secondary school students throughout the year

development process

● A total of 4435 instances of employee participation in voluntary services contributing 9221 hours

● Launched sustainable products including the “Endangered Animals: Wetland” “Deep Blue Planet” and

“Carbon Emission Reduction Plan” series ● Charitable donations totaling RMB8.44 million

● Accumulated a total of 20 sustainable products

● Innovated sustainable marketing models by integrating multi-channel resources such as product

recommendations social media interaction dedicated product displays and study tours achieving over 550

million impressions throughout the year Responsible governance

● Linked ESG performance with executive compensation and incorporated ESG factors into the performance

evaluation of 11 business unit heads

Response to climate change

● The Risk Management and Compliance Committee held 4 meetings and incorporated ESG risks into the Company’s

● The Group’s Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions totaling 48935 tCO e a 46.4% reduction overall risk assessment process2

compared to 2021

● The completion rate of the online training course on the M&G Code of Business Conduct reached 96%

● Promoted smart energy management air compressor retrofitting and waste heat recovery projects with an

●

estimated annual electricity saving of 1.74 million kWh Conducted internal control audits on business conduct covering 22 operating locations that represent 100% of M&G’s operational sites

● Consumption of renewable energy-generated electricity exceeding 21.6 million kWh accounting for 17% of the total

electricity consumption

● Collected GHG emission from 110 suppliers establishing an initial supplier GHG emission data management system

Sustainability Honors and Recognitions

Sustainable supply chain Ministry of Industry and

MSCI Information Fortune China Business Network (Yicai)

ESG audits covered 100% of key suppliers with a rectification pass rate of 96.3% 2024 National Green 2024 Fortune China 2024 “China Green ● ESG Rating: A Factory ESG Impact List Point” Case of the Year

● Incorporated ESG risk assessment factors into the assessment system for new supplier development and

onboarding

● 100% of M&G’s product-related suppliers signed the Supplier Code of Conduct The China Association for

Kantar BrandZ Public Companies The China Securities Journal Wallstreetcn.com

● Launched a selection of outstanding ESG cases of suppliers and awarded the “ESG Innovation Practice Award”

2024 Inspirational Star 2024 Outstanding Practice Second “Guoxin Cup” Third “Zero Carbonof Innovation Case of Sustainable ESG Golden Bull Award Future” ESG Awards

Development for Listed

Companies Top 100

Empowering employees and communities

HRoot Awards 2024 The Employer Branding Institute Southern Weekly

● Conducted over 40 safety inspections with total safety training hours reaching 25489

Best Employers in DEI Employer Awards 2024 Dream Builders Public Welfare

● Zero severe injuries or fatalities; minor injury rate at the Shanghai base decreased by 27% year on year Greater China 2024 (China) 2024 Conference - Public Welfare Case of the Year

05 06M&G Stationery 2024 Environmental Social and Governance (ESG) Report Opening Sustainable Development Sustainable Climate and Shared Prosperity Employees and ESG Performance Appendix

Strategy and Management Products Environment Across the Value Chain Communities Report

About the Company Corporate Culture

Business Overview

ss and in

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As one of the world's largest stationery manufacturers Shanghai M&G ope

inc

t erit

Stationery Inc. is a comprehensive stationery supplier and office servicer. sed ldion: Wor -clais

ss yM & G fo

The Company integrates the value of creativity into its products and service V

advantages advocates a fashionable stationery lifestyle and provides solutions

for study and work committed to making study and work more joyful and

effective. M&G's products mainly include writing instruments student stationery

office supplies and other related products. On January 27 2015 M&G Stationery

was officially listed on the Shanghai Stock Exchange A shares under stock code Core Culture

603899. Prioritizing the

The Company has an independent and complete operation from branding well-being of others

product design and development procurement of raw materials and accessories before our own

product manufacturing supply chain management and warehouse and logistics

to distribution network management. M&G is present in nearly 70000 retail

stationery shops nationwide including 779 large retail stores—M&G Life and Ma e

Jiumu Store. In addition due to market demand thousands of new products ke nd stu ful a

are launched by M&G every year and its products are exported to worldwide dy and work more j

oy

partners.M&G Business Operation

Branding Product design and development Procurement Manufacturing

Distribution network Warehouse Supply chain

management and logistics management 2024 Business Performance

M&G focuses on the development of four major product categories—mass market stationery segment premium stationery Revenue: Year-on-year Total number of Retail shops growth: employees: nationwide:

segment arts and kids drawing segment and office stationery segment. The Company also vigorously innovates on developing

new channels including large retail store business such as Jiumu Store and M&G Life the direct office supplies business—M&G RMB24.2 billion 4% 5549 Nearly 70000

Colipu and the independent trendy cultural and creative brand More-Than-Fun (Qizhihaowan). With the acquisitions of Axus

Stationery (which owns the well-known wooden pencil brand MARCO) and the Norwegian high-end ergonomic backpack brand

Beckmann M&G is expanding its international market and continuously strengthening its brand portfolio.

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Values: Consumer-centric min

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sM&G Stationery 2024 Environmental Social and Governance (ESG) Report Opening Sustainable Development Sustainable Climate and Shared Prosperity Employees and ESG Performance Appendix

Strategy and Management Products Environment Across the Value Chain Communities Report

Sustainable Development Strategy and Management Sustainable Development Goals

During the reporting period M&G comprehensively reviewed and refined its 2030 strategic goals for sustainable development

based on the four strategic pillars of its sustainable development strategy ensuring a deeper integration of sustainability philosophy

Sustainable Development Strategy into business operations through goal-driven implementation. The goal-setting process was informed by research on Chinese

and international regulations and policies industry best practices and an assessment of the Company’s internal status ensuring

that the goals balance both foresight and feasibility. At the same time after multiple rounds of discussion the Company’s core

M&G has established its sustainability vision of "writing a sustainable business future." Centered on four strategic pillars: management team reached a consensus on the magnitude and implementation roadmap of these goals. Each goal has been

sustainable products response to climate change sustainable supply chain and empowering employees and communities further broken down into annual action indicators with progress linked to the performance assessments of business unit and

the Company has defined its 2022-2025 Sustainable Development Strategy. Committed to leading industry-wide sustainable department heads. Regular progress reports are submitted to the Board Strategy Committee to ensure efficient execution and

development M&G focuses on advancing sustainable consumption green production responsible sourcing employee growth implementation.initiatives and equitable education programs.M&G Sustainable Development Goals

M&G Stationery Sustainable Development Strategy

Pillar Goal Base Year Target Year Progress During the Reporting Period

Vision Writing a Sustainable Business Future ● To adopt sustainable design for 20% of Defined the sustainable product evaluation

products / 2030 standard and incorporated it into the product development process

Strategic Becoming an industry leader of sustainable development including: Sustainable ● Continued to launch innovative sustainable

Positioning sustainable consumption green production responsible procurement focus on employee growth and Products1 To perform sustainable product evaluation

for 100% of new product development / 2030 products with 20 sustainable products promoting equal education developed to date

Sustainable products Response to climate Sustainable supply Empowering employees To reduce Scope 1 and Scope 2 GHG ● Reduced Scope 1 and Scope 2 emissions by

change chain and communities emissions from operations by 42%

2021 2030 46.4% in 2024 compared to 2021

● Producing sustainable ● Group-level carbon ● Supply chain management ● Management system of Response

products emission reduction targets system occupational health and to climate ● To achieve carbon neutrality across the Established an initial supplier GHG emission

● Sustainable design ● Improving energy ● Anti-corruption safety change 2021 2050 data management system and collected GHG

concept efficiency energy management of supplier value chain● Employee training and emission data from 110 suppliers

● Sustainable raw material conservation and ● Supplier capacity building career development system

selection consumption reduction ● ● Employee benefits Supply chain traceability

●

● Chemical management Optimizing energy ● Diverse and inclusive work To ensure that 100% of key suppliers

system consumption structure culture comply with M&G ESG guidelines / 2025

● Green logistics ● Internal social support ● ESG audits covered 100% of key suppliers

● Green office operation mechanism with a rectification pass rate of 96.3%

● Featured community To ensure that ESG assessments and / 2030

Four Pillars activities audits cover 80% of suppliersSustainable

supply chain

To integrate ESG requirements into all ● Incorporated ESG risk assessment factors

new supplier screening and onboarding / 2025 into the assessment system for new supplier

standards development and onboarding

To ensure that 100% of full-time

●

employees are covered by the training / 2028 The training system covered 98% of full-time

system employees

To maintain zero severe injuries and

Empowering ● fatalities annually 2024 / Zero severe injuries and fatalities

employees and

communities

●

To achieve ten million instances of Since 2022 the Shanghai M&G Foundation's

empowerment 2022 2030 educational charity initiatives have generated over 1.1 million instances of benefit

Systematic Responsible corporate governance:

Foundation building a top-down corporate management and governance system

1 For more information on the definition and evaluation methods of sustainable products please refer to the “Sustainable Products – Developing MoreSustainable Products” section of this Report.

09 10M&G Stationery 2024 Environmental Social and Governance (ESG) Report Opening Sustainable Development Sustainable Climate and Shared Prosperity Employees and ESG Performance Appendix

Strategy and Management Products Environment Across the Value Chain Communities Report

Sustainable Development Governance Management of Sustainability Topics

M&G has established a clear and well-structured sustainable development governance framework that integrates top-down ESG Risk Management

coordination. This framework consists of the Board of Directors the Strategy Committee the Sustainability Office business units

departments and subsidiaries forming a tiered governance system to drive the implementation of the Company’s sustainable

development strategy. M&G has established a risk management system

2 to ensure effective risk control measures. The Company places great emphasis

on ESG risks integrating them into its overall risk management framework. During the reporting period under the coordination of

The Board of Directors and its Strategy Committee serve as the decision-making body responsible for the comprehensive the Risk Management and Compliance Committee M&G established and refined its risk management processes. The Company

management and oversight of the Company’s sustainable development impact risks and opportunities. They review and compiled a preliminary risk list based on the types of risks identified high-risk positions risk descriptions and existing control

approve sustainable development strategy goals and information disclosures while also supervising and reviewing sustainable measures observed during operations. This process was followed by a qualitative and quantitative risk materiality assessment

development-related policies management practices performance and target progress. ultimately resulting in the creation of the Company’s risk map. To effectively manage ESG-related risks M&G also integrates the

assessment results for the materiality of its ESG topics conducts a comprehensive assessment of sustainability-related impacts

At the coordination level M&G has established a Sustainability Office led by the Chief Sustainability Officer (CSO). The team risks and opportunities and accordingly adjusts its sustainable development strategy and key information disclosures.members possess professional expertise and experience in the field of sustainability. The Sustainability Office is responsible

for breaking down ESG goals into actionable targets coordinating role assignments across business operations conducting

internal and external sustainability communications and dissemination identifying and tracking ESG risks and opportunities and M&G’s Key Potential ESG Risks

reporting progress on strategic objectives to the Strategy Committee on a regular basis. During the reporting period M&G further

strengthened the cross-business unit and cross-department ESG taskforces aligning business segments with the Company’s

overall sustainable development goals. The Company developed detailed action plans and implementation pathways based on ESG Risk Type Potential Impact

Impact

Timeframe3 M&G’s Response Measures

actual business conditions enhancing the effectiveness of the Company’s sustainability initiatives.Stricter and higher-level product quality

At the execution level business units departments and subsidiaries are responsible for implementing specific projects to achieve inspections and chemical safety risk management require additional financial Strengthen the product quality and safety management

sustainable development goals. To incentivize the management of the Company to advance sustainability efforts M&G has Product quality

and safety investment. Additionally if a quality-related Long-term

system to reduce quality risks while strictly controlling the

incorporated ESG factors into the annual performance evaluations of the heads of core strategic implementation departments for adverse event occurs it may lead to product quality and safety of raw materials and finished products across the supply chain.three consecutive years. recalls and reputational damage ultimately

affecting the Company’s revenue.The governance environmental and labor

M&G’s Governance Framework for Sustainable Development management practices of suppliers impact Improve the supplier evaluation system incorporate ESG Supply chain supply chain stability and security which in Long-term indicators into supplier management processes help management turn affects the Company’s reputation and suppliers enhance ESG risk management capabilities and

profitability. foster a green and sustainable supply chain.Board of Directors

Employee turnover safety incidents or Enhance the training and development system improve

Human capital occupational health issues could negatively employee benefits and create a healthy and safe impact the Company’s long-term sustainable Long-term work environment to continuously increase employee

Decision-Making Board Strategy Committee operations. satisfaction.Technological innovation and intellectual

Technological property protection require additional financial Build an R&D and innovation system and increase R&D

innovation investment with uncertainty regarding return on Long-term investment to continuously improve technological innovation

investment. capabilities.Sustainability Office Response to Increasing regulatory compliance requirements climate change and heightened climate-related physical and Medium- to Establish and implement carbon reduction targets and

and energy transition risks could lead to higher operational long-term plans and continuously advance energy-saving and

management4 costs and reduced market competitiveness. emission reduction initiatives.Empowering Improve the environmental management system clearly Sustainable Response to Sustainable supply employees and Stricter national environmental regulations and define environmental management responsibilities Coordination products climate change chain Environmental enforcement may require additional investment Short-term and regularly engage qualified third-party agencies for communities Compliance in the construction and operation of pollution environmental monitoring to identify and address potential

control facilities increasing operational costs. issues in a timely manner ensuring compliance with

Cross-business unit cross-department ESG taskforces pollutant discharge regulations.Non-compliance with business ethics or

Business ethics compliance requirements could result in Medium- to Strengthen business ethics anti-corruption and anti-unfair

and integrity reputational damage leading to a negative long-term competition systems and implement training programs to

corporate image and a decline in brand value. enhance employee awareness.Each business unit functional department and subsidiary

Execution

2 F or detailed information on the risk management system governance framework and control processes please refer to the “ESG Performance Report –Governance – Risk Management” section in this Report.

3 Definition of the timeframe: Short-term: within 1 year; medium-term: 1 to 5 years; and long-term: over 5 years.

4 For climate risk-related disclosures please refer to the “Climate and Environment – Climate Strategy” section of this Report.

11 12M&G Stationery 2024 Environmental Social and Governance (ESG) Report Opening Sustainable Development Sustainable Climate and Shared Prosperity Employees and ESG Performance Appendix

Strategy and Management Products Environment Across the Value Chain Communities Report

Materiality Assessment M&G’s 2024 Sustainability Material Topic Matrix

The materiality assessment of sustainability topics serves as the foundation for M&G’s sustainability planning internal and High

external communication and information disclosure. During the reporting period M&G updated its assessment methodology in

accordance with the latest international and Chinese disclosure standards and conducted its first “double materiality” assessment. Corporate governance Marketing and after-sales Product quality

This approach integrates the “financial materiality” of topics through a financial lens into the previous assessment of their “impactChemical safety Sustainable productsmateriality” providing a comprehensive analysis by incorporating ESG risk assessment results. This enables a more thorough

understanding of the financial economic environmental and social impacts of sustainability topics on M&G.Based on the Company’s business development the strategic goals under its four sustainability pillars and

Topic ESG risk assessment results M&G reviewed the 24 material sustainability topics identified in 2023. Their

Review applicability was assessed for the reporting period to serve as the foundation for the topic library during the

period. Carbon emissions and energy Environmental compliance and

management pollutant management

Business ethics Technological innovation

M&G updated its sustainability topic library based on sustainability disclosure standards (SSE Medium

Sustainability Reporting Guidance GRI Standards IFRS S1 TCFD etc.) ESG ratings (MSCI ESG Employee benefits Occupational health and safety

Ratings S&P Global Corporate Sustainability Assessment) national policies and macroeconomic trends Information security and privacy

and material topics that concerned the consumer goods sector and related industries. Subsequently the protection

Company consolidated the topics and adjusted their scopes.During the reporting period M&G identified 22 material sustainability topics with eight adjustments

compared to the previous year: Water resources management Supply chain management

Social welfare Labor rights

2023 Topics 2024 Updates

Waste management

Sustainable materials Merged with “Packaging materials” into “Sustainable products”

Topic Response to climate change

Updates Water resources and Revised to “Water resources management” Diversity and equal opportunities

effluents Integrated effluent-related content with other environmental topics into the Training and development

new topic “Environmental compliance and pollutant management” Risk management

Consumer health and Revised to “Product quality” focusing on ensuring consumer health and Biodiversity

safety safety through product quality improvements

Product and service quality Split into “Product quality” and “Marketing and after-sales” Low Medium High

Responsible marketing Incorporated into the new topic “Marketing and after-sales” Financial Materiality

Human rights protection Revised to “Labor rights” expanding the topic scope

Community support Incorporated into the “Social welfare” topic

Environmental topics Social topics Governance topics

During the reporting period M&G conducted impact materiality and financial materiality assessments for

●●●

the selected sustainability topics. Sustainable products Product quality Business ethics

● Environmental compliance and ● Technological innovation ● Risk management

Impact Materiality Assessment: The Board of Directors senior management ESG experts and other pollutant management

stakeholders were invited to evaluate the importance of each topic’s economic social and environmental ● Occupational health and safety ● Corporate governance

impact and assign ratings categorized as high medium or low. ● Carbon emissions and energy ●

management Marketing and after-sales

Double Financial Materiality Assessment: The Company’s internal management was invited to assess the ● Chemical safety

Materiality ● financial importance of each topic based on two dimensions: “resource continuity” and “relationship Waste managementAssessment dependency” with ratings categorized as high medium or low. ●Response to climate change Employee benefits●

● Information security and privacy

By integrating the results of the impact materiality and financial materiality assessments M&G developed ● Biodiversity protectiona Sustainability Topic Matrix based on the two dimensions of “importance to the economy society and ● Water resources managementenvironment” and “importance to the Company’s financial performance.” This matrix presents the priority ● Supply chain management

levels of each topic resulting in a classification of 22 material sustainability topics into high medium or ● Labor rights

low importance.● Diversity and equal opportunities

Results The Sustainability Office conducted a comprehensive review and validation of the materiality assessment ● Training and development

Review and results which were then submitted to the management for review. 22 material sustainability topics

●

Evaluation were final approved and are highlighted in this report along with details on their management and

Social welfare

implementation.

1314

Impact MaterialityM&G Stationery 2024 Environmental Social and Governance (ESG) Report Opening Sustainable Development Sustainable Climate and Shared Prosperity Employees and ESG Performance Appendix

Strategy and Management Products Environment Across the Value Chain Communities Report

Stakeholder Communication

M&G is committed to establishing two-way unimpeded

and regular communication channels with all stakeholders. Stakeholders Concerned Material Topics Communication Mechanisms and Methods

Through diverse communication formats we enable timely

understanding and addressing of stakeholders' concerns and

●

expectations. Product quality ● Channel cooperation conference

● Marketing and after-sales

● Marketing conference

● Business ethics

● Market visits

●

Stakeholders Concerned Material Topics Communication Mechanisms and Methods Information security and privacy Distributors ● protection Daily business communication

● Special reports

● Corporate governance ●

● Participation in government meetings WeCom

● Carbon emissions and energy ● ● Internal email

● Supervision and assessment Labor rights management

●

Field research ● Government and ● Occupational health and safety

Performance interview

● Product quality

regulatory authorities Training and development ● Information disclosure ● Employee satisfaction survey●

● Employee benefits ● Training and workshop

● Product quality ● Employee clubs and activities

Employees

● Response to climate change ● General meetings Information security and privacy ● ● Annual company meeting

Carbon emissions and energy ● ● Investor meetings protection ● Internal corporate culture platform

management ● Performance briefings ● Employee suggestion platform

Shareholders and ● Waste management ●

investors Information disclosure

● Social welfare ● Cooperation and dialogue

● Product sales and promotion ● Waste management ● Public welfare projects and activities

● Product quality ● After-sales service ● Sustainable product design ● Official website and corporate WeChat

● Marketing and after-sales NGOs/Philanthropic ● Consumer survey ● Products and packaging materials account

organizations

● Chemical safety ● Customer satisfaction survey

●

Consumers and customers Information security and privacy

● Exhibition events

protection ● Official website and corporate WeChat

● Official website and corporate WeChat

●

account Product quality

account

● Marketing and after-sales ● Media interview and cooperation

● Sustainable product design ● Forums and seminars

● Bidding Media

● Information disclosure

● Supply chain conference

● Product quality ● Contract signing and execution

●

● Chemical safety Forums and seminars● Daily business communication ● Technological innovation

●

● Occupational health and safety Participation in industry standard formulation●

Suppliers Supplier training ● Product quality

● Project collaboration

● Supply chain ESG assessment and on-site ● Chemical safety

audit Industry associations ● Visit and communication

15 16M&G Stationery 2024 Environmental Social and Governance (ESG) Report Opening Sustainable Development Sustainable Climate and Shared Prosperity Employees and ESG Performance Appendix

Strategy and Management Products Environment Across the Value Chain Communities Report

Sustainable Products

M&G actively embraces the green consumption trend striving to provide consumers with high-quality

sustainable products. We integrate sustainable design principles into the development of various product

categories expand the application of sustainable materials in both products and packaging and advocate

for a sustainable lifestyle by “writing a greener future” using our products. Adhering to the belief that “onlywith high quality can we achieve sustainability” we continuously enhance our quality management system

increase R&D investment and strictly manage chemical safety ensuring that our green product transition is

accompanied by high standards of quality and safety.Material Topics

● Sustainable products – Apply durability ● Marketing and after-sales – Ensure transparent

replaceability and recyclability principles in product accurate and easy-to-understand product

design; use recyclable biodegradable recycled marketing information avoiding false or misleading

or environmentally certified materials and promote promotions; improve after-sales services and the

lightweight design and circular use for packaging. product recall system; establish clear customer

● Product quality complaint handling approaches and processes. – Strengthen refined quality

management to ensure product quality. ● Chemical safety – Control and eliminate hazardous

Technological innovation chemical substances in products strictly control ● – Focus on new chemicals used in production and ensure safety;

technology development and innovative applications conduct consumer education on ingredient safety.of existing technologies establish an innovation

management system participate in collaborative

R&D projects and improve a scientific patent

management mechanism to protect technological

innovation achievements.Goals

● To adopt sustainable design for 20% of products ● To perform sustainable product evaluation for

by 2030 100% of new product development by 2030

2024 Highlights

● Revised the M&G Sustainable Product ● Accumulated a total of 20 sustainable products

Evaluation Standard and fully integrated it into the

●

product development process Innovated sustainable marketing models by

integrating multi-channel resources such

● Launched sustainable products including the as product recommendations social media

“Endangered Animals: Wetland” “Deep Blue interaction dedicated product displays and studyPlanet” and “Carbon Emission Reduction tours achieving over 550 million impressionsPlan” series throughout the year

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Strategy and Management Products Environment Across the Value Chain Communities Report

Developing More Sustainable Products M&G Sustainable Product Grading Method

According to M&G’s corporate sustainable product standard products are graded based on the degree of integration between

Amid the global green consumption trend M&G recognizes the market potential and consumer demand for sustainable products. sustainability and products. This grading system guides product development toward higher levels of sustainability standards.As one of the core pillars of our sustainability strategy we are committed to providing safe low-carbon and eco-friendly sustainable

products and experiences.M&G’s Definition and Evaluation of Sustainable Products Basic Level Products at the basic level meet circular economy principles

M&G Sustainable incorporating durability reusability and recyclable packaging M&G aims for 20% of its products to

Design Products in their design. adopt sustainable design by 2030.To achieve our sustainable product strategy and goals and establish a clear direction for sustainable product development M&G

introduced its first Sustainable Product Evaluation Standard in 2023. This standard referenced domestic and international green

product certification systems and incorporated M&G’s product category characteristics to define clear requirements across four

key dimensions: materials functionality safety and packaging. The result is a differentiated industry-leading sustainable product Green Label

evaluation system. In 2024 M&G further upgraded the standard expanding its scope from single writing instruments to multiple At the green label level products go beyond sustainable As of the end of the reporting period Level

product categories. The standard was also enhanced with clearer and more specific evaluation indicators improving practical design by utilizing more environmentally friendly materials 20 sustainable products have been

M&G Green Label

applicability and enabling a more systematic and standardized approach to sustainable design. such as recycled or biodegradable materials. developed.Products

Evaluation Criteria Examples of Sustainable Design Products

The evaluation framework is built around five key dimensions: product safety resource efficiency green and low-carbon impact

sustainable design and social value. Each dimension is assigned a weight based on its importance and product sustainability is

graded based on specific indicator scores. Large-Capacity Design

The M&G Acrylic Series Markers feature a liquid-ink

high-capacity design increasing ink volume by over 15%

Green Labeling compared to conventional wick-based structures. This

reduces ink residue and significantly improves resource

utilization efficiency. The Da Mo Wang (High-Capacity) Series

Products that meet the internal evaluation standards can feature the sustainable Whiteboard Markers and Permanent Markers incorporate

product green label “Write a Greener Future” on packaging communicating technical optimizations extending their writing length to more

sustainability values to consumers. The green label has already been applied to than twice the industry standard effectively prolonging their Da Mo Wang (High-Capacity) Whiteboard Markers /

several new products this year. Permanent MarkersM&G Sustainable Product Green Label lifespan and reducing replacement frequency.The new sustainable product standard has been fully integrated into M&G’s new

product development process. To enhance its implementation effectiveness we have Extended Product Lifespan

conducted standard training sessions compiled design guidelines and optimized

evaluation procedures. These efforts strengthen product designers’ awareness The M&G Power Saving No. 12 Stapler and Power Saving Pro

and practice of sustainable design. Our goal is that by 2030 100% of new product Series have undergone technological upgrades increasing

development will undergo sustainable product evaluation. their stapling lifespan to five times the industry standard (up

to 100000 uses). This significantly reduces resource waste

while providing high-efficiency durable office solutions.M&G Power Saving Pro Series Staplers

Replaceable Component Design

The M&G Retractable Refill Highlighter features a valve-

sealed structure with a side-press retract feature for quick

retraction. Its refill design extends the product’s lifecycle while

reducing the use of disposable components.M&G Retractable Refill Highlighter

Sustainable Product Standard Explanation Session

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Sustainable Materials

Retired Mold Reuse M&G continuously expands the development and application of

sustainable materials in both products and packaging enhancing

The M&G Writing Master Gel Pen is manufactured using sustainability of resource utilization. During the reporting period M&G

refurbished and repurposed retired molds preserving the classic launched several new products incorporating a variety of sustainably

product’s functionality and design style while giving the product certified materials. For example the “Deep Blue Planet” series gel

new life. pen uses Global Recycled Standard (GRS)-certified recycled plastic.M&G Writing Master Gel Pen Additionally some notebooks toner cartridges and shredders

received China Environmental Labeling Product Certification (Ten Ring

Certification) while laser printers and dot matrix printers obtained China

Energy Conservation Product Certification. The Red M&G Printer Paper

holds Forest Stewardship Council (FSC) Certification. Moreover the

M&G Food-Grade Soft-Tip Watercolor Pen incorporates environmentally

friendly materials reducing energy consumption during production by M&G Food-Grade Soft-Tip Watercolor Pen with UL

Examples of Green Label Products green label validation10% and earning the UL green label validation (U.S.).Raw Materials

“Endangered Animals: Wetland” “Deep Blue Planet” Series “Carbon Emission ReductionSeries Plan” Gel Pen During the reporting period M&G conducted a range of material optimization efforts on raw materials such as plastics paper and

wax aimed at improving the environmental footprint and safety characteristics of these materials.This series uses PLA biodegradable This sustainable product line is made The primary materials for this product

materials and recycled plastics as primarily from PLA biodegradable come from recycled lamp housings

the primary raw materials for pen materials and recycled plastics. In transparent plastic components Post-Consumer Recycled (PCR) Materials and Polylactic Acid (PLA) Materials

barrels helping to reduce plastic collaboration with organizations such of plastic products and plastic

waste and pollution. By minimizing as WildAid the design highlights waste sourced from dismantled old

the risk of animals ingesting plastic marine ecosystem protection LCD TVs and monitors. Through Since 2023 M&G has successfully incorporated PCR and PLA materials

or becoming entangled in it the featuring species such as the professional disassembly and into multiple sustainable product series to replace virgin plastics

design aims to protect wildlife. Manta Ray Narwhal Dugong remanufacturing these materials are thereby reducing plastic pollution and the carbon footprint of products.The series collaborates with the and Green Sea Turtle along with repurposed for circular use. Each During the reporting period the Company continued material property

Mangrove Wetlands Conservation ecological scenarios such as coral gel pen contributes to a reduction analysis equipment modifications and process optimization for these

Foundation (MCF) and incorporates reefs and polar glaciers. The series of approximately 49g of CO e two materials to overcome technical bottlenecks and enhance product 2

the images of five endangered encourages consumers to recognize emissions. performance. Currently M&G has developed five types of PCR plastics

wetland species including the and respect marine biodiversity. with recycled plastic content reaching up to 100% in certain products.Black-faced Spoonbill and Oriental Initially products made from PCR materials were limited to darker

Stork into its packaging. This colors but over time the color options have broadened to include lighter

initiative raises consumer awareness and transparent hues. The range of applications has also expanded

of wetland conservation and moving beyond writing instruments to include correction tapes Gel Pens Using PCR Materials

biodiversity. mechanical pencils and other product categories.FSC-Certified Paper

Red M&G Printer Paper and some M&G Colipu Printer Paper products

have received FSC certification. Additionally for events such as the

Boao Forum for Asia 2024 and the Consumer Goods Forum (CGF) as

well as customized stationery sets and notebooks for corporate clients

M&G has actively used FSC-certified paper.“Endangered Animals: Wetland” Series “Deep Blue Planet” Series PLA “Carbon Emission Reduction Plan”

Recycled Plastic Gel Pen Biodegradable Gel Pen Gel Pen Notebooks Customized for Boao Forum for Asia

2024 — Made with FSC-Certified Paper

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Advocating for Sustainable Consumption

Eco-Friendly Paint-Free Materials Easy-to-Clean Art Supplies

M&G has developed an eco-friendly glitter paint-free M&G has developed water-soluble paints and non-toxic M&G is committed to promoting the sustainable consumption philosophy of “writing a greener future” through its sustainable

material enabling metallic gloss effects directly through materials to produce easy-to-clean children’s art supplies products encouraging the public to adopt greener habits in everyday life. The Company also carries out diverse advocacy initiatives

injection molding without the need for spray painting or ensuring child safety while reducing impacts towards tailored to both daily consumer and office procurement scenarios.electroplating thus avoiding the environmental impact water environment.of these processes. This material has been successfully

applied to certain correction tape products.Green Lifestyle

Leveraging its online and offline retail networks M&G provides consumers with a green consumption environment. Through various

green-themed educational and promotional activities the Company fosters greater awareness of sustainability. Over the year

M&G’s environmental and public welfare campaigns reached an audience of over 550 million views.Case Creating Sustainable Consumption Scenarios

Correction Tape Using Glitter Paint-Free Materials Easy-to-Clean Children’s Art Supplies

Jiumu Store has established sustainable product sections in over 700 stores nationwide integrating eco-friendly

themes refill initiatives and interactive activities to promote environmental awareness. Additionally Jiumu Store

Packaging Materials launched the “Green Credits for Members” program rewarding consumers who purchase sustainable products or

decline single-use shopping bags with points redeemable for rewards and fostering the development of sustainable

M&G actively promotes the green transformation of product packaging prioritizing the use of more eco-friendly packaging materials consumption habits. During the reporting period the program issued over 2.77 million Green Credits resulting in more

and printing inks to enhance packaging sustainability. than 1.29 million instances of consumption.Packaging Material Substitution

Metal pen holder “Deep Blue Planet” series

packaging has switched display stands are made

from single-use plastic from kraft paper. 2.77+ million

bags to paper boxes. Green Credits issued

Printing Ink Optimization 1.29+ million

instances of consumption

Skin-Friendly High- M&G Eye Protection

Transparency Self- Desk Lamp’s outer

Adhesive Book Cover packaging boxes use

packaging uses more single-color ink printing.environmentally friendly

and safer water-based

inks.Sustainable Product Section in Jiumu Store “Green Credits for Members” of Jiumu Store

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Case Co-Creating Environmental Art with Students Commitment to High Quality

On April 22 2024 (Earth Day) M&G launched the “Refill for the Earth: Reducing Plastic Starts with Me” initiative and

a green campus public welfare initiative. The event took place at six schools in Shanghai Suzhou and Chengdu M&G is dedicated to delivering high-quality products and services. We uphold strict quality control measures for both our

where nearly 200 students guided by a professional artist created the environmental art installation “Infinite Planet” products and suppliers maintaining rigorous standards across manufacturing production and after-sales service. In addition we

using discarded pen refills and cardstock. On June 5 2024 (World Environment Day) this artwork was exhibited at the continuously advance R&D and innovation to provide superior efficient products and services for consumers and clients.Shanghai International Carbon Neutrality Expo inspiring public reflection on the relationship between waste recycling

and a sustainable future.Product Quality Management

Quality Management System

M&G has established and continuously improved a comprehensive full-process quality control system covering product design

and development raw material procurement production processes finished product inspection and after-sales service ensuring

that the Company’s products comply with relevant regulations standards and market demands. The Company has set up a

dedicated Quality Center building a quality management system that includes Quality Control (QC) Quality Assurance (QA) and

Quality Engineering (QE). It has also formulated regulations such as the Incoming Inspection Regulations and Assembly Inspection

Regulations to standardize quality control procedures. During the reporting period M&G further enhanced the quality control

Campus Environmental Art Workshop “Infinite Planet” Environmental Art Installation system for writing instruments across raw materials R&D production and after-sales service establishing an eight-step quality

control process covering raw material and incoming inspection new product evaluation product assembly inspection process

inspection finished product inspection sample retention management and grid-based management of business partners. Each

step has clearly defined inspection procedures and guidelines enabling a systematic and effective approach to controlling quality

risks in writing instruments.Green Office

M&G Product Quality Control Process

As businesses and institutions increasingly prioritize green office practices M&G actively promotes the green office philosophy

through various channels offering corporate clients eco-friendly office solutions that combine functionality with the environmental

● Define product quality objectives and requirements during project planning and conduct quality

protection philosophy. function deployment analysis;

At the Shanghai International Carbon Neutrality Expo M&G collaborated with Lingang Group to launch a co-branded green office ● Review design plans and drawings to verify feasibility and rationality during the design process;

kit and initiative. Additionally M&G established green office sections at major events such as the Boao Forum for Asia CGF Forum Design and ● Produce samples and conduct performance and reliability tests improving designs based on test

on China-Africa Cooperation and China International Import Expo where it showcased a diverse range of environmental stationery Development results.and personalized eco-friendly solutions receiving widespread recognition from attendees.During the reporting period M&G Colipu organized multiple promotional activities to highlight M&G’s eco-friendly stationery and ● Strictly control raw material quality in accordance with supplier management measures;

FSC-certified printer paper. Through its official website WeChat official account and other online platforms M&G Colipu provided ● Evaluate and select suppliers through on-site inspections and audits of their quality management

clients with diverse sustainable products and green low-carbon procurement solutions collectively advancing green office systems;

procurement. ● Sign quality agreements during procurement to define quality requirements and responsibilities;

● Inspect raw materials upon arrival using sampling or full inspections determining acceptance Raw Material

based on results. Procurement

● Establish key quality control points and conduct scheduled inspections and sampling to monitor

production process stability;

● Operators perform self-inspections and mutual inspections. If quality issues are detected operations

are halted for corrective action and reporting;

●

Production Process Segregate label review and handle non-conforming products to prevent them from entering subsequent processes.● Conduct final inspection on product appearance performance and packaging according to

quality standards;

● Process warehousing for qualified products and handle non-conforming products according

to non-conformance procedures. Final Product Inspection

Green Office Section at the Boao Forum for Asia Recommended Eco-Friendly Products on M&G Colipu Website

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To strengthen product reliability and reduce quality risks M&G has established and refined a product audit mechanism. This

mechanism tailors inspection plans based on different product categories including new products high-risk products and Case Enhancing Testing Capabilities and Strengthening Quality Control

regular products while also defining procedures for handling non-conforming products. By adopting higher standards and stricter

requirements M&G continuously improves product quality control.M&G places great importance on quality testing and continuously improves monitoring capabilities to enhance

quality management efficiency and accuracy. In 2024 M&G gradually deployed and applied 19 intelligent detection

devices enabling real-time in-process quality control for writing instruments notebooks and other products. The new

Case Establishing and Improving Jiumu Store’s Quality Control System equipment enhances functional testing allowing for press-force anomaly detection silicon bead inspection and iron

staple binding inspection. For appearance inspection it enables comprehensive finished pen appearance checks cap

labeling detection and labeling machine inspections effectively preventing quality defects from being overlooked.In 2024 Jiumu Store implemented a range of quality control enhancement measures: strengthening the quality

control team by establishing quality inspection and quality control positions; developing a quality control workflow

and warehouse entry inspection standards; revising and improving the Preliminary Quality Control Process for Jiumu

Store Products and Commodity Testing Report & Mass Production Sample Collection Guidelines carrying out special

rectifications for products and suppliers that repeatedly failed warehouse inspections to prevent the recurrence of

similar defects; and establishing a regular store inspection mechanism to strengthen quality control during the sales Improving Quality Management Capabilities

process.M&G actively strengthens quality awareness and management capabilities among employees and suppliers through training and

empowerment programs. During the reporting period the Company organized four specialized quality training sessions covering

topics such as packaging weighing operation guidelines rework requirements for non-conforming products skill enhancement for

Quality Assurance Mechanism full-inspection personnel and fountain pen manufacturing and process technology. These initiatives helped improve employees’

technical expertise in quality management. Additionally M&G organized various supplier quality improvement programs providing

M&G continuously strengthens quality monitoring and management at all stages—before during and after product launch—to training exchange meetings and on-site guidance to help suppliers understand and apply product improvement methodologies

promptly identify and resolve potential quality issues ensuring continuous improvement in product quality. thereby enhancing product performance.Case Supplier MBS Empowerment and Improvement

The new product development process has been optimized with specific

review standards established for structure printing and packaging

New Product Development

effectively reducing process anomalies during product launch. In 2024 the The MBS (M&G Business System) is a unique internal management framework and business operation model

new product anomaly rate decreased by 71% compared to 2023. developed by M&G based on lean management principles. It includes a systematic and structured problem-solving

and continuous improvement toolkit. In 2024 M&G launched a series of MBS empowerment programs for suppliers

enhancing their quality management capabilities through the MBS improvement logic. For example to address writingA core raw material supplier management system has been established function defects in marker pens M&G provided on-site guidance helping suppliers understand and apply the “identifyto conduct comprehensive inspections and monitoring of raw material root causes implement countermeasures and ensure sustainability” approach from the MBS logic. This successfully

usage and key production processes for core categories. Measures resolved key quality issues such as dry nibs and ink leakage achieving a category pass rate of over 99.5%.Raw Material

include requiring suppliers to provide raw material inspection reports for

Control

comparison with internal test results verifying raw material procurement

invoices and conducting unannounced audits on raw materials and

production processes to ensure strict quality control.The supplier quality assessment system has been upgraded introducing

new product witness testing for qualified inspection and optimizing

Supplier

the reward and penalty mechanism. The periodic quality risk review

Management

management system has been updated and a new product compliance

self-check system has been established.The M&G Stationery Testing Laboratory has been accredited by the China

Production Process Quality National Accreditation Service for Conformity Assessment (CNAS) aligning

Monitoring its testing capabilities with international standards to ensure more efficient

and timely quality testing and improvement measures. M&G Supply Chain 2024 MBS Empowerment Exchange Conference

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Strategy and Management Products Environment Across the Value Chain Communities Report

Complaint Handling and After-Sales Service R&D and Innovation

M&G actively listens to feedback from customers and consumers has formulated the Customer Complaint Handling Process M&G is committed to enhancing R&D and innovation to drive product vitality. Since 2010 the Company has been recognized

and established and improved complaint and feedback mechanisms and channels. During the reporting period the Company as a National High-Tech Enterprise and has continuously advanced its technical capabilities. In 2024 nearly RMB190 millionestablished a grid-based quality partner management mechanism proactively collected customer feedback from sales channels was invested in technological R&D and product innovation. Its subsidiary Axus Stationery was honored as a “specialized andand organized relevant departments to complete issue analysis and corrective action cycles. The number of market feedback sophisticated enterprise that produces new and unique products” by the Shanghai Municipal Commission of Economy and

issues decreased by 54% compared to 2023. In addition M&G carried out targeted improvements to enhance the timeliness of Informatization.complaint handling by optimizing the complaint handling process and adding a fast-track service channel for one-on-one quality

support resulting in an improved timely response rate for complaint handling compared to 2023. M&G’s product design has won all four major international industrial design awards—Germany’s iF DESIGN AWARD and Red Dot

Design Award Japan’s Good Design (G Mark) Award and the International Design Excellence Awards (IDEA) of the United States.It has also received several prestigious design accolades such as the Golden Pin Design Award and Red Star Design Award

demonstrating its world-class design strength. During the reporting period M&G received the China National Light Industry Council

Progress in the Development of Customer Complaint and Feedback Mechanisms Across Various Channels Science and Technological Innovation Award and the Science and Technology Progress Award.M&G regularly conducts consumer research and customer satisfaction surveys distributing

satisfaction questionnaires to channel partners every six months. These surveys cover product Selected Award-Winning Products in 2024

Channel quality delivery timeliness new product availability information communication service attitude

Partners and after-sales service in order to assess partner satisfaction. Based on the feedback analysis

targeted improvement plans are formulated. In 2024 the channel partner satisfaction rate reached

90%.

Jiumu Store established a comprehensive complaint handling process standardizing the handling

Large Retail procedures and statistical analysis for customer complaints across online and offline channels

Stores and formulated rules for complaint escalation. For products with high complaint rates on-site M&G Utility Knife Pro M&G Smart Large-Screen M&G Circle Drawing M&G DIY Fingertip

quality improvements are regularly conducted at suppliers to reduce complaint rates. Microscope Tool Crayon

Winner of the 2024 Red Winner of the 2024 Red Winner of the Gold Award Winner of the Gold Award

Dot Design Award and Dot Design Award and at the CSID 2024 (China at the CSID 2024 (China

M&G formulated the Customer Complaint Handling Standards and other management documents the Gold Award in the the Gold Award in the Stationery Innovative Stationery Innovative

to standardize the full process management of customer complaints in e-commerce sales Office Supplies category Cultural and Educational Design Competition 2024) Design Competition 2024)

channels. During the reporting period the Company clarified the division of responsibilities for pre- of the 2024 Stationery - Innovation category of

sales in-sales and after-sales functions and established an after-sales data team responsible for China Stationery Industry the 2024 Stationery -

Innovation Competition China Stationery Industry

E-commerce daily review and correction of related complaint handling. By the end of 2024 a dedicated after- Innovation Competition

Platforms sales work order team was formed to shorten the waiting time for online consumers’ after-sales

issue resolution.A monthly complaint data analysis dashboard is produced and the results are used for subsequent

complaint collection review and investigation and optimization work thereby developing more M&G has established R&D management regulations to standardize various tasks involved in the R&D and innovation process

targeted measures to improve complaint service quality. and has continuously strengthened the accumulation and consolidation of technical experience. During the reporting period M&G

reviewed its existing R&D management regulations and compiled a comprehensive guide covering processes including project

initiation development testing pilot production inspection project conclusion product launch and post-launch tracking thereby

enhancing the systematization and standardization of R&D and innovation management.During the reporting period M&G Colipu established procedures for platform-based order

cancellation and return/exchange requests and optimized its customer feedback follow-up

mechanism. M&G Colipu also defined clear follow-up operation regulations for both interceptable

and non-interceptable orders aiming to improve the efficiency and quality of complaint

M&G Colipu resolution. In parallel M&G Colipu continued to conduct customer satisfaction surveys through

various channels including phone interviews mini-program questionnaires and service group

questionnaire surveys. Feedback from corporate clients is collected and used to refine service

experiences in subsequent service processes with the goal of consistently enhancing overall

customer satisfaction.

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During the reporting period more

than 50 technological achievements Chemical Safety

were put into practical application.The Company achieved key

technological breakthroughs M&G is committed to providing high-quality and safe products and applies standards stricter than regulatory requirements to

in foundational technological strengthen chemical safety management. The Company continues to phase out substances of high concern and actively seeks

innovations in each category safer alternative materials. In parallel it continuously improves product information disclosure to enhance transparency in product

unique product functionality safety.and core consumer needs. New

innovative products launched

include the Acrylic Series Markers Chemical Safety Management

Odor-Free Easy-to-Clean Markers

Boron-Free Antibacterial Low-Odor

Clay Dr. Clean Eraser Retractable Anti-stick Ruler – Solved the problem of erasers Odor-Free Easy-to-Clean Oil-Based Marker – M&G has formulated and implemented the Chemical Management Policy5 which clearly defines regulations regarding chemical

Refillable Correction Tape etc. sticking to rulers through material innovation Innovated ink formula to eliminate pungent odor management principles the prohibition and phase-out of certain chemicals safety standards and certification requirements product

from oil-based markers audits and supplier chemical management. The policy is managed by the Company’s Chemical Management Committee6 ensuring

the uniformity and standardization of chemical usage management and control processes in products. The Company closely

monitors updates to relevant regulatory standards. During the reporting period in accordance with newly updated standards such

as Exercise Books (QB/T 1437-2023) Fountain Pens and Nibs (GB/T 26717-2024) Children’s Acrylic Paint and Acrylic Markers (T/

M&G continuously improves its intellectual property management system and policies to protect the outcomes of R&D and SLIA 0003-2024) and the GB 4806 series of food safety standards M&G conducted a comprehensive review of existing products

innovation. In 2021 the Company obtained certification of the Intellectual Property Management System (GB/T 29490-2013) and and promptly upgraded related product inspection standards and control requirements to ensure that product development

has since undergone annual certification audits. During the reporting period M&G initiated a new round of certification updates for manufacturing and quality control comply with the latest regulatory requirements.the intellectual property management system and revised 16 management policies including the Intellectual Property Handbook

and the Patent Management Method based on the revised standard (GB/T 29490-2023). As of the end of the reporting period the

Company had filed a total of 2901 patent applications received 2625 granted patents and held 1336 valid patents.Restriction and Phase-Out of Chemicals

M&G identifies substances of high concern that are prohibited or restricted based on national standards and industry regulations

Cumulative Number of Patent Applications Cumulative Number of Patents Granted and formulates a chemical control list. This list is dynamically updated according to changes in regulations and policies consumer

(Unit: Item) (Unit: Item) and market concerns as well as the needs of business and product expansion thereby continuously strengthening chemical

2901 management controls. For example all inks used in M&G’s writing instruments must not only comply with applicable product

26122625

2391 2407 standards and the Request in Common Use of Security for Student’s Articles (GB 21027-2020) but should also meet the more 2235 stringent EU EN71-3 standard. In addition the control of black gel ink is benchmarked against the restricted substances list in

Appendix XVII of the EU REACH regulation.For certain chemicals that pose potential risks to human health or the environment M&G

develops and implements phase-out plans to gradually reduce and ultimately eliminate harmful

components from its products. In 2020 M&G phased out phthalates from all student supplies

in accordance with the Request in Common Use of Security for Student’s Articles (GB 21027-

2022 2023 2024 2022 2023 2024 2020). In 2021 the Company eliminated short-chain chlorinated paraffins from the same product

category. The phase-out of both substances has now been fully completed. M&G also actively

explores safer and healthier chemical alternatives and promotes its research results across

the industry through standard-setting participation contributing to improved chemical safety

Case Safeguarding Market Order and Combating Counterfeit Products standards at the industry level. For instance M&G independently developed and launched

a boron-free clay product to reduce the toxicity risk associated with boron additives. Building

on this during the reporting period M&G led the revision plan of the Modeling Clay industry

M&G places great importance on intellectual property protection and firmly opposes piracy. During the reporting period standard promoting the inclusion of stricter limits on migratory elements (including boron) free

the Company cooperated with law enforcement authorities in cracking down on 72 cases involving intellectual property formaldehyde and preservatives. This standard revision project has officially been filed with the

infringement and worked with e-commerce platforms to combat the sale of counterfeit products image theft and other Ministry of Industry and Information Technology.violations. These efforts serve to fully protect the legitimate rights and interests of consumers the M&G brand and

channel partners.In June 2024 M&G discovered that a store on an e-commerce platform was selling counterfeit M&G-branded gel pens

and refills in large quantities. The Company promptly gathered clues and compiled relevant materials to report the 5 M&G’s Chemical Management Policy has been publicly disclosed on the Company’s official website under the “Investor Relations - ESG” section.case to the local economic investigation authority. M&G successfully assisted the police in solving the case and the 6 For details regarding the Company’s chemical safety management framework and the list of applicable regulations and standards please refer to the “ESGrelevant suspects were apprehended and brought to justice. Performance Report – Social – Chemical Management” section of this Report.

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M&G’s European subsidiary Beckmann has developed a chemical compliance guide and restricted substances list based on the

laws and regulations of the country where it operates EU regulations and voluntary standards. The same chemical management Case Developing Safer Acrylic Marker Series

requirements are imposed on all suppliers. For certain chemicals the restrictions in this guide are even more stringent than those

under the EU REACH regulation. Beckmann has already eliminated phthalates polyvinyl chloride (PVC) per- and polyfluoroalkyl

substances (PFAS) bisphenol A (BPA) and other chemical from its products. M&G actively promotes the development of standards

for children’s acrylic art supplies. The Company

participated in drafting the group standard Children’s

R&D of Healthy and Safe Products Acrylic Paint and Acrylic Markers (T/SLIA 0003-2024)

which was officially released in 2024. This standard

features chemical safety requirements that are stricter

Out of strong concern for chemical safety in its products M&G actively develops more environmentally friendly and safer materials than commonly adopted industry product standards.continuously launching safe and non-toxic products. M&G has already taken the lead in applying these

standard requirements in the development of its

acrylic marker products.Promoting PVC Material Expanding the Portfolio of Food- M&G Acrylic Marker Series

Case Substitution Case Grade Children’s Art Products

M&G has actively implemented PVC substitution M&G continues to increase its efforts in developing

efforts for several consecutive years. The food-grade children’s art products. Food-grade Raising Awareness of Chemical Safety

Company has prohibited the use of PVC materials materials have already been applied to a variety

in certain product components such as blister of product subcategories including outline pens

packs bases trays and packaging materials and M&G is committed to enhancing the transparency of product markers watercolor pens oil paint sticks and

continues to develop safer alternatives to PVC. chemical safety. For all chemical substances procured the crayons. During the reporting period the Company

These include ethylene vinyl acetate (EVA) zipper Company requires suppliers to provide Safety Data Sheets further developed and launched food-grade

bags and thermoplastic elastomer (TPE) erasers (SDS) of chemicals and respond to relevant information painting sticks markers and crayons forming a

among others. M&G will continue to expand the requests from regulatory agencies customers and other comprehensive food-grade product portfolio and

range of applications where PVC materials are stakeholders. Products promoted with health and safety as steadily expanding its food-grade product series.replaced. selling points are subject to strict inspection and must pass

required testing and obtain relevant certifications before

being launched to the market. Certification information

must be disclosed as required and false advertising is

strictly prohibited. At the same time M&G actively promotes

chemical safety knowledge to consumers using live-

streaming e-commerce platforms and other channels to

provide public education on product chemical content

encouraging consumers to pay greater attention to chemical

safety.Explaining Chemical Safety of Watercolor Pens during

Campus Art Activities

M&G Exam Set (EVA Zipper Bag) M&G Food-Grade Crayons

Presenting Chemical Safety Knowledge through Livestreams and

Product Promotions

33 34M&G Stationery 2024 Environmental Social and Governance (ESG) Report Opening Sustainable Development Sustainable Climate and Shared Prosperity Employees and ESG Performance Appendix

Strategy and Management Products Environment Across the Value Chain Communities Report

Climate and Environment

M&G views climate action and environmental protection through a long-term lens integrating green

transformation into its broader corporate development plan. To this end we have proactively explored and

defined our climate strategy and emission reduction targets for 2030 and 2050. Guided by the principles of the

circular economy we strive to enhance resource efficiency embed the philosophy of biodiversity protection into

forest land management and consumer education and are committed to continuously reducing the carbon and

environmental footprint across our operations and value chain.Material Topics

● Response to climate change - Formulate group-level ● Water resources management - Use water resources

carbon neutrality strategy and targets systematically rationally and promote water conservation recycling

identify climate risks and opportunities and develop a and reuse.climate action plan for the full value chain.● Waste management - Establish and improve a waste

● Carbon emissions and energy management - management system and promote waste reduction at

Implement energy-saving and efficiency-enhancement source resource utilization and compliant disposal.measures expand the use of renewable energy and

●

continuously reduce emissions across all processes of Biodiversity - Implement biodiversity and ecosystem

the value chain. protection through operation facility design and

construction raw material procurement and consumer

● Environmental compliance and pollutant control - awareness initiatives.Improve the environmental management system

mitigate environmental compliance risks; promote

pollution prevention and emission reduction measures

and strictly control pollutant discharge.Goals

● To reduce Scope 1 and Scope 2 GHG emissions ● To achieve carbon neutrality across the entire

from operations by 42% by 2030 compared to the value chain by 2050

base year 2021

2024 Highlights

● The Group’s Scope 1 and Scope 2 GHG ● Consumption of renewable energy-generated

emissions totaling 48935 tCO2e a 46.4% electricity exceeding 21.6 million kWh accounting

reduction compared to 2021 for 17% of the total electricity consumption

● Promoted smart energy management air ● Collected GHG emission data from 110 suppliers

compressor retrofitting and waste heat recovery establishing an initial supplier GHG emission data

projects with an estimated annual electricity management system

saving of 1.74 million kWh

35 36M&G Stationery 2024 Environmental Social and Governance (ESG) Report Opening Sustainable Development Sustainable Climate and Shared Prosperity Employees and ESG Performance Appendix

Strategy and Management Products Environment Across the Value Chain Communities Report

Climate Strategy Governance

In response to the increasingly severe global warming crisis M&G actively assumes corporate responsibility and has proactively M&G has integrated climate change-related issues into its overall sustainability governance structure. The Board of Directors

established and gradually advanced a group-level climate action strategy to support the carbon peaking and carbon neutrality and the Board Strategy Committee are responsible for overseeing the Company’s management of climate-related risks. Thegoals (Dual Carbon) of China through concrete action. Building on the commitment announced in 2022 “to be carbon neutral by Sustainability Office is tasked with coordinating the implementation of the climate strategy establishing the corporate carbon

2050” M&G completed a comprehensive GHG emission inventory at the group level in 2023. Based on the inventory results management system facilitating the establishment of cross-departmental working mechanisms monitoring the progress of target

we conducted an emission reduction potential analysis this year and drawing on domestic and international climate policies and implementation and conducting climate-related disclosures. During the reporting period M&G strengthened its climate governance

regulations and corporate best practices formulated a mid-term emission reduction target: by 2030 reduce GHG emissions from efforts. Under the leadership of the Sustainability Office responsible departments across production bases and other emission

our own operations (Scope 1 and Scope 2) by 42% compared to the base year 2021. This target is aligned with the 1.5°C goal of sources decomposed emission reduction targets and formulated specific action plans to effectively implement related reduction

the Paris Agreement. Following thorough internal discussions the target has been broken down into feasible annual implementation measures.plans to ensure scientific and achievable execution.Strategy

M&G Carbon Emission Reduction Strategy and Action Roadmap

2021 - 2030 2030 - 2050 To assess the short- medium- and long-term impacts of climate-related risks and opportunities on corporate strategy M&G

adopted a scenario analysis approach comparing projected physical and socio-economic developments under two contrasting

Using 2021 as the base year to reduce GHG emissions from To achieve carbon neutrality global warming scenarios: the “turquoise scenario” (temperature rise limited to 1.5°C - 2°C) and the “brown scenario” (temperature

our own operations (Scope 1 and Scope 2) by 42% by 2030 across the entire value chain rise of 4°C - 5°C). This analysis enabled M&G to identify and evaluate potential climate-related risks and opportunities for its core

business thereby supporting the development of more targeted and effective response strategies.Scope 1 and Scope 2 Conduct regular carbon

Manufacturing management;

Continue expanding renewable Climate-Related Risks

Explore energy-saving potential optimize energy energy use;

management and improve energy efficiency; Introduce innovative low-carbon Impacts

Increase the proportion of renewable energy and gradually technologies processes and Risk Types Potential Impacts Timeframe7 Primary Response Measures

transition to clean energy. management models;

●

Warehousing and Logistics Explore additional carbon ● Extreme weather events such as high

Conduct regular inspections and

reduction opportunities such as temperatures typhoons and heavy upgrades of facilities and equipment

Optimize logistics routes and improve transportation carbon credits. rainfall may cause damage to facilities stability to improve resilience against Short-

efficiency; and equipment disrupt logistics and natural disasters;Acute medium-

Use new energy transportation vehicles; Risks affect the supply of raw materials; and long- ● Develop disaster emergency response

Enhance warehouse intelligence and improve energy ● Extreme weather events like heatwaves term plans conduct emergency drills

efficiency in storage facilities. and thunderstorms may endanger purchase accident insurance and

Office Operations & Green Stores employee health and safety.maintain daily reserves of disaster

prevention and relief supplies.Optimize lighting and heating ventilation and air conditioning Physical

systems; ● Risks Rising sea levels may lead to greater

● Gradually incorporate climate risk

Promote low-carbon office and lifestyle concepts. operational instability for facilities located considerations into infrastructure

in coastal areas; development and future business

Scope 3 planning;● Increased ecosystem vulnerability may

Supply Chain Management Chronic affect the stable supply of raw materials Medium- to ● Strengthen prevention and control of

Risks in M&G’s supply chain such as timber long-term forest-related risks such as fire wind

Establish a carbon emissions accounting system for the and pulp; damage and pest outbreaks; deepen

supply chain; sustainable forest land management;

●

Encourage suppliers to set energy-saving and emission The likelihood of virus transmission and

reduction targets and regularly track progress; outbreaks may increase potentially ● Improve employee health and safety

Gradually conduct product carbon footprint accounting and impacting employee health and safety. benefits including insurance coverage.management;

● With the continued advancement of

Empower suppliers to enhance carbon management and ● the Dual Carbon policy enterprises Monitor and stay informed about

supply capabilities for green products. Transitional Policy and will face stricter regulations on energy national climate policy developments

Product End-of-Life Management Risks Legal Risks conservation and carbon reduction. M&G Medium-term and incorporate policy requirements

may need to intensify emission reduction into operational planning in a timely

Explore recycling remanufacturing and reuse of manner;

materials and products; efforts and increase financial investment;

Promote sustainable product design to improve the

recyclability of products and packaging.

2021 (Base Year) 7 Definition of timeframe for climate risks and opportunities: Within 1 year is short-term; 1 to 5 years is medium-term; more than 5 years is long-

2030 2050 term.

37 38M&G Stationery 2024 Environmental Social and Governance (ESG) Report Opening Sustainable Development Sustainable Climate and Shared Prosperity Employees and ESG Performance Appendix

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Risk Types Potential Impacts Impacts Timeframe Primary Response Measures

Risk Management

● Continuously enhance carbon

● Companies included in the Emissions management capabilities promote M&G integrates the identification assessment and management of climate-related risks and opportunities into the Company’s

Trading Scheme (ETS) are required to energy structure transformation overall risk management system to systematically control climate risks.fulfill their carbon allowance settlement and implement energy-saving

Policy and responsibilities. Rising carbon prices will Medium- technological upgrades;

Legal Risks lead to increased compliance costs; term ● Strengthen carbon management

● International green trade policies such across the supply chain and Climate Risk Identification Climate Risk Assessment Climate Risk Response

as the EU’s carbon border tax policy will implement green procurement to drive

increase export costs. emission reductions throughout the The Sustainability Office compiles The Risk Management and Climate risks identified as high

value chain. a climate risk list based on Compliance Committee evaluates priority are assigned to responsible

domestic and international policy business risks climate risks and departments to develop and

● Actively identify carbon reduction

● Stricter future carbon reduction policies trends and stakeholder feedback. other ESG-related risks through implement mitigation plans.potential implement energy-saving

will require continuously increasing R&D qualitative and quantitative and emission-reducing projects and

Transitional Technology investment in energy-saving and emission- Short- to

analysis from short- medium- and

continue to increase the share of

Risks Risks reducing technologies. Failure to adopt medium-

long-term perspectives prioritizes

renewable energy usage;

green low-carbon technologies in time may term them and submits the results to

weaken market competitiveness and lead ● Promote digitalization and intelligent the Board Strategy Committee for

to revenue decline. technologies to improve energy review.efficiency.● The phase-out of fossil-based raw ● Develop green and low-carbon raw

Market materials may cause an increase in the Medium- materials and apply them to the

Risks prices of plastics and other materials term development of more sustainable Metrics and Targets

thereby raising operational costs. products.● Increasing attention from media

●

professional organizations and Implement carbon reduction During the reporting period M&G established a carbon emission reduction target for 2030 and broke it down into annual goals.Reputational industry associations on corporate ESG Short- to measures and ensure that related These targets have been integrated into the ESG performance evaluations of responsible leaders at each base and business unit

Risks performance may result in reputational medium- communication and promotional and the Company will regularly track and assess the progress and achievement of these targets.damage and revenue loss if related term content is objective accurate and

expectations are not met. traceable. M&G continues to calculate and disclose Scope 1 and Scope 2 GHG emissions at the organizational level on an annual basis.The accounting follows standards and specifications such as ISO 14064-1:2018 Specification with Guidance at the Organization

Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals GB/T 32150-2015 General Guidelines

Climate-Related Opportunities of the Greenhouse Gas Emissions Accounting and Reporting for Industrial Enterprises and the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories with the organizational boundary defined based on the operational

control approach. At the same time the Company is gradually advancing Scope 3 data collection continuously improving the

Opportunity Impacts GHG emission data management capabilities across the value chain. M&G has collected carbon emission data from suppliers

Type Potential Impacts Timeframe Primary Response Measures for two consecutive years and provided training and support to enhance the accuracy of data reporting. The number of suppliers

participating in GHG emission data collection increased from 52 in 2023 to 110 in the reporting period.● Identify energy-saving potential and

● Improvements in energy and carbon continuously improve energy efficiency;

Resource emissions management can promote energy

Efficiency conservation and emission reduction while Short-term

● Actively promote green logistics and green M&G GHG Emissions Data

office practices to strengthen energy

also reducing costs and enhancing efficiency. conservation and emission reduction Scope 1 GHG Emissions Scope 2 GHG Emissions Total GHG Emissions (Scope 1 and Scope 2)

across all operational stages. (Unit: tons of CO2 equivalent) (Unit: tons of CO2 equivalent) (Unit: tons of CO2 equivalent)

●

Energy Source Early deployment of renewable energy can Medium- to

● Expand the use of renewable energy and

reduce future dependence on fossil fuels. long-term optimize the energy mix.

91357-46.4%

88876-47.6%

● As consumer awareness of green and

●

Products and Increase investment in the R&D and low-carbon practices increases and

Services promotion of sustainable products;

488384805548935

green procurement becomes a growing - 3.5% 46668

trend among government and corporate Short- ● Guide product development by adopting 45940 465422481

entities the market demand for high-quality medium- and sustainable design principles; 2170 2393

sustainable products will continue to rise. long-term 2115

●

Market Developing green and low-carbon products

Communicate the concept of sustainability

will help the Company further enhance its to consumers and engage them in joint

competitiveness and increase revenue. climate action.

202120222023202420212022202320242021202220232024

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Energy Management Case Intelligent Upgrade of Compressed Air System

M&G actively advances the development of its energy management system focusing on multiple areas including energy-saving Air compressors are a core energy-consuming component in manufacturing. M&G carried out an intelligent upgrade

technological upgrades clean energy utilization energy management optimization green logistics and low-carbon office practices. of the air compressor system at the Qingcun production park to optimize supply-demand matching. The system

The Company continues to identify opportunities for energy conservation and carbon reduction. During the reporting period M&G’s incorporates functions such as narrow-band constant pressure control air consumption trend analysis and individual

Shanghai base was included in the list of National Green Factories for 2024. unit efficiency monitoring resulting in improved operational efficiency and enhanced energy performance.M&G Energy Consumption Data The upgraded system uses AI technology to predict air demand in real time enabling precise control of supply

pressure while reducing pressure fluctuations. This minimizes energy waste caused by high pressure and decreases

Consumption of Renewable Energy-Generated Total Energy Consumption Total Energy Intensity the frequency of equipment starts and stops. After the upgrade the air-to-electricity ratio was reduced from 0.114

Electricity (Unit: 10000 kWh) (Unit: tce) (Unit: tce / RMB million in revenue) kWh/m3 to 0.103 kWh/m3 achieving a 9.6% energy savings rate and approximately 700000 kWh in annual electricity

savings.

2160165230.70.7

0.6

1361213873

1322

911.5

202220232024202220232024202220232024

Energy Conservation and Efficiency Improvement

M&G continuously enhances equipment energy efficiency and reduces energy waste by introducing advanced production

technologies. The Company also consistently carries out energy-saving assessments and energy management optimization

initiatives. During the reporting period energy-saving and emission-reduction projects were implemented at M&G’s Shanghai

production base including air compressor energy-saving upgrades injection molding machine efficiency improvements and the

launch of a digital energy management system.Digital Management of Air Compressor System Illustration

Air Compressor Efficiency Optimization

● Equipment Upgrade: Replaced rotary screw air compressors with centrifugal air compressors improving equipment efficiency

and achieving annual electricity savings of approximately 500000 kWh; Clean Energy Utilization

● Compressed Air Station Retrofit: Converted distributed compressed air stations into a centralized air supply system

enhancing compressor efficiency reducing the energy consumption of auxiliary equipment and completely resolving

high-temperature failures caused by condenser blockage due to paper dust. This resulted in annual electricity savings of M&G continuously optimizes its energy mix by expanding the use proportion of renewable energy. During the reporting period the

approximately 370000 kWh. Company continued to advance photovoltaic power generation projects. The total installed capacity of photovoltaics at M&G and

its subsidiary Axus Stationery reached approximately 16100 kW with a photovoltaic electricity consumption of 14.67 million kWh

equivalent to a reduction of 6519 tCO2e. In addition M&G’s Shanghai base and Axus Stationery increased their use of renewable

energy by purchasing 6.93 million kWh of green electricity. The Company also continued to retrofit solar-powered streetlights

Heat Recovery Upgrade and began replacing biofuel in canteen operations and diesel used for dormitory hot water supply with electricity while gradually

substituting liquefied petroleum gas (LPG) in the canteen with natural gas to further enhance the clean energy utilization rate.● At M&G’s Shanghai base retrofitting was carried out using return water heating and thermal insulation was applied to

domestic hot water from the dormitory to the canteen to reduce energy consumption during operations.Total installed capacity of Photovoltaic electricity Equivalent to a

Injection Molding Equipment Upgrade photovoltaics consumption reduction of

● Equipment replacement and process optimization were implemented in the injection molding process completing energy 16100 kW 14.67 million kWh 6519 tCO2e

efficiency upgrades for 31 injection molding machines;

● By shortening the injection molding cycle time an overall efficiency improvement of approximately 20% was achieved.

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Green Logistics and Warehousing Resource Use

M&G continues to strengthen energy-saving measures in logistics and warehousing by leveraging digital technologies and

M&G applies the concept of efficient resource utilization across the entire production and operation process. Through simplified

equipment upgrades to achieve high efficiency and low energy consumption in material transportation and warehousing

design efficient use of raw materials and process improvement the Company enhances resource use efficiency and minimizes

management.waste. It also practices the “3R” principles of the circular economy—Reduce Reuse and Recycle—by systematically managing

packaging materials water resources and production waste.Transportation and Logistics Warehouse Management

With the help of digital systems such as the At the Shanghai production and distribution center Packaging Reduction and Recycling

Transportation Management System (TMS) the the Company upgraded its Rail Guided Vehicle (RGV)

Company conducts detailed analysis of delivery routes systems and adopted energy efficiency as a key

and warehouse operations to identify optimal solutions criterion in equipment selection. The newly deployed M&G vigorously explores “packaging reduction” following the principles of “simplicity and practicality” minimizing the use of

and reduce inefficient deployments caused by route 27 energy-efficient RGVs are equipped with a power- packaging materials without compromising product quality. During the reporting period the Company evaluated existing products

mismatches. While improving logistics efficiency M&G saving mode that automatically shuts down operation and logistics packaging and implemented a series of design optimizations.also significantly reduced fuel consumption. In the after more than five minutes of inactivity reducing

first three months after implementation fuel savings daily electricity consumption by approximately 100

amounted to approximately 93000 liters compared to kWh. Additionally M&G Colipu has fully adopted LED Product Packaging Reduction

the same period last year. In addition the Company eco-friendly energy-saving lights across its entire

actively promotes the use of new-energy vehicles warehouse lighting system further reducing energy

(NEVs) to replace traditional fuel vehicles and reduce consumption in warehousing operations.transportation-related carbon emissions. By the end Packaging Optimization for Small-sized Packaging for Smart Customized Eco-Friendly

of the reporting period M&G Colipu had a fleet of Exam Prep Pen Set Large-Screen Microscope Design

12 new-energy freight vehicles an increase of three

vehicles compared to 2023. Unnecessary cartons and inner Customized small-sized cartons The e-commerce packaging forboxes were removed and turnover were designed for the smart large- M&G’s “Endangered Animals:boxes were used to reduce screen microscope saving 32% Wetlands” series gel pens adopt

secondary packaging. of paper per box. A total of 4677 a canister design allowing the

square meters of cardboard was packaging to double as a pen

Case Automated Warehouse Retrofit to Improve Operational and Energy Efficiency saved during the reporting period. holder for reuse effectively

reducing resource waste.To further enhance the operational efficiency of its logistics and warehousing systems while improving energy usage

M&G carried out hardware and software upgrades to its automated warehouse at the Shanghai base during the

reporting period. Optimization of the existing software system enabled unified management of trunk line logistics

systems and big data analytics was applied to evaluate logistics and warehouse management needs holistically to

generate optimized logistics dispatch solutions. On the hardware side warehouse equipment was simultaneously

upgraded increasing daily outbound capacity from 5000 pallets to 8500 pallets representing a 70% improvement in

operational efficiency.Daily outbound capacity increased from Improvment in operational

5000 pallets to efficiency Simplified Packaging for the Exam Prep Small-sized Packaging for the Smart Canister Design for the “Endangered

8500 70% Pen Set Large-Screen Microscope Animals: Wetlands” Series Gel Pens pallets

Energy Conservation in Operations

M&G integrates the concept of energy conservation and environmental protection into daily office operations. The Company

continues to promote a “Lights Out Hour” initiative at its Shanghai office building and places energy-saving reminder labels on

switches in public areas to raise employee awareness. During the reporting period the average monthly electricity consumption of

the building decreased by approximately 1.5%. For retail terminal stores the Company also encourages franchisees to use LED

eco-friendly energy-saving lighting fixtures during renovations.

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Strategy and Management Products Environment Across the Value Chain Communities Report

Prop Reuse and Recycling Case M&G Colipu Carton Recycling Practice

M&G actively promotes the reuse and recycling of M&G Colipu has introduced a cardboard cutting machine

shop display prop materials. M&G Life recycles and to convert non-reusable cartons into mesh-style cushioning

reuses leftover props—such as acrylic boards and materials replacing traditional plastic bubble wrap. This

pegboards—from closed stores thereby reducing initiative not only reduces plastic use but also promotes the

the need for new display materials; Jiumu Store recycling of cardboard cartons.also collects recycles and reuses props from closed

stores cutting down the carbon emissions associated

with the reproduction of these items. During the

reporting period props from a total of nine stores were

recovered. Recycling and Reuse of Display Shelves

Case Innovative Launch of “Mini Shelf” to Reduce Display Material Consumption

M&G has innovatively designed a display prop M&G Colipu repurposes cartons into cushioning filler materials

called the “Mini Shelf” featuring a compact size

modular assembly reusability and replaceable

backboards. This design not only significantly

reduces the plastic used per unit but also

facilitates reuse across stores. Its smaller size

also enhances logistics and transportation

efficiency while enabling easier in-store product

display achieving a win-win for both business Green Operations

and environmental benefits.M&G “Mini Shelf” Water Resources Management

M&G is committed to water conservation and integrates the concept of sustainable water use into its production and operations.The Company continuously monitors indicators such as municipal water intake water recycling and reuse volumes and

wastewater discharge maintaining comprehensive visibility over water usage. There are no reported issues with water resource

Recycling and Reuse of Logistics Packaging availability. At the same time the Company actively promotes water recycling and conducts water-saving upgrades on equipment

and infrastructure to continuously improve water efficiency. During the reporting period a water-saving project was implemented in

the dormitory area of the Shanghai base. The project involved identifying and repairing leakage points and optimizing toilet flushing

M&G and its subsidiaries continue to promote the recycling and reuse of used cartons across logistics bases and office locations. systems to reduce water waste; at the South China base a new water filtration system was installed to recycle cleaning water

During the reporting period a total of 868000 cartons were recovered and reused helping conserve resources and enhance improving the water reuse rate. These measures saved approximately 194 tons of water in total in 2024.economic efficiency. At M&G’s Shanghai logistics base used logistics packaging is sorted: plastics are uniformly collected by third

parties while cartons are gathered on-site by designated personnel and redistributed for use by Jiumu Store’s offline deliveries or

for e-commerce shipments. The reuse rate of second-hand cartons at Jiumu Store offline stores reached 72% with the remaining

portion delivered in full-box shipments to minimize waste from secondary packaging. Additionally carton reuse racks have been Waste Management

installed in office buildings to encourage employees to use second-hand cartons for internal transfers or parcel deliveries.M&G strictly complies with applicable laws and regulations by classifying and properly handling solid waste generated during

production and operations to ensure legal compliance and minimize environmental impact. At the Shanghai base M&G continually

improves resource use efficiency and reduces waste generation at the source. For example plastic scraps generated during the

injection molding process of gel pens are recycled and reused without compromising product quality enhancing material circularity.Number of cartons recovered and reused Reuse rate of second-hand cartons in Jiumu Store During the reporting period M&G conducted a comprehensive inventory and collection of waste types proportions and disposal

868000 72% methods at the Shanghai base to further improve its classification and management system. Referring to zero-landfill waste management standards the Company preliminarily evaluated the implementation of resource valorization incineration for power

generation and harmless treatment methods. It also analyzed waste disposal pathways to identify areas for improvement laying a

foundation for the gradual achievement of zero waste landfill goals.

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Green Office Ecological Protection Awareness

M&G embeds green practices into its daily operations by improving online systems and promoting paperless work to continuously M&G organizes a variety of sustainability campaigns on different ecological themes to raise public awareness about environmental

reduce resource consumption and achieve low-carbon operations. protection including wetland and marine ecosystems.M&G’s Shanghai automated warehouse has undergone hardware and software upgrades to fully Case Wetland Ecosystem and Endangered Species Protection

implement personal digital assistant (PDA)-based online inventory replacing paper-based operations

and significantly reducing paper usage in logistics and warehousing. Additionally starting from August

Digital 2024 M&G Colipu’s Warehouse and Distribution Department has switched from paper delivery receipts

Office to electronic signatures for self-dispatched orders with an estimated annual saving of approximately 3

M&G collaborated with the Mangrove

million A4 sheets; Wetlands Conservation Foundation

(MCF) to launch an ecological protection

awareness campaign. The campaign

Since 2023 M&G has actively promoted paperless office practices encouraging employees to prioritize incorporates images of protected wetland

the use of electronic documents during daily work and optimizing print management. For documents that animals into product packaging organizes

must be printed the Company mandates double-sided printing and encourages the reuse of discarded parent-child wetland educational trips for

Paperless printing paper with a blank side. The Company has also set the default configuration of all office printers to consumers and provides virtual reality (VR)

Office use double-sided printing; experiences on wetland ecology at stores

enabling consumers to better understand

mangrove ecosystems and endangered

Restroom paper has been replaced with single-sheet pull-out rolls to encourage on-demand use; for species conservation. M&G also donates

internal meetings employees are encouraged to use personal cups and bottled water at external a portion of the sales revenue from its

“Endangered Animals: Wetlands” series to Consumers experience birdwatching in VR at a Jiumu StoreHabit meetings must be registered before issuance; the Company also hosts staff activities such as item swaps

Formation and waste material upcycling to encourage the formation of low-carbon office habits. the MCF in support of wetland conservation and environmental education.Eco-Friendliness

Case Marine Ecosystem Protection

M&G is committed to environmental protection and fostering ecological harmony by protecting the natural environment conserving

natural habitats and promoting ecological awareness to minimize the environmental negative impact of its operations.M&G joined forces with WildAid Better Blue and other partners to advocate for ocean conservation. In August 2024 a

public pop-up event for marine protection was held on Wuzhizhou Island Hainan serving as the first lesson on ocean

protection for students nationwide at the start of the new school year. A nationwide beach cleanup campaign was also

Forest Land Ecosystem Protection launched. During the reporting period M&G together with Better Blue and Pick Up China held multiple beach cleanups

in Sanya Beihai Qingdao Shanghai Dalian Xiamen and Wanning. Nearly 100 volunteers participated removing

almost 300 kilograms of trash from beaches. These efforts not only reduced the environmental burden on coastal areas

Axus Stationery places high importance on sustainable forest management and biodiversity protection. It has obtained FSC Forest but also inspired broader public attention toward marine ecosystem protection.Management (FM) Certification and Chain of Custody (CoC) Certification from Bureau Veritas. During the management of its

own forest land Axus Stationery strictly adheres to felling quotas and avoids large-scale felling. It conducts continuous ecological

monitoring has established a forest ranger patrol system and regularly inspects forest land to monitor the status of wildlife

and assess the ecological impact of operations. If any potential issues are identified corrective measures are taken promptly.Additionally Axus Stationery maintains a section of ecological forest in Xinjiang under the principle of maintaining its natural

ecology without human interference in order to fully protect the environment and biodiversity.Marine Protection-Themed Public Pop-up Event M&G organized volunteers for nationwide beach cleanups

Axus Stationery’s Forest Farm in Xinjiang

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Shared Prosperity Across the

Value Chain

M&G upholds the altruistic philosophy of "Prioritizing the well-being of others before our own" and the

business principle of “Partnership for a Shared Future.” The Company works hand in hand with upstream and

downstream industry partners to foster a clean and mutually beneficial business environment. M&G shares its

sustainable development practice experience with partners leading and inspiring the entire industry toward a

more sustainable future.Material topics

● Business ethics - Comply with laws and regulations ● Supply chain management - Strengthen supply chain

related to anti-corruption anti-bribery and anti- risk management to ensure supply chain security and

unfair competition and continuously strengthen resilience; enhance the ESG management system

the business ethics and compliance management for suppliers and empower them to improve ESG

system. management performance.● Marketing and after-sales - Ensure that marketing ● Risk management - Reinforce internal control and

information is transparent accurate and easy compliance management and enhance the Company’s

to understand and prevent false or misleading risk control capabilities.advertising; improve after-sales service and product

●

recall mechanisms; and clearly define complaint Corporate governance - Improve the corporate

handling channels and procedures. governance structure and operational standards

to promote more scientific decision-making and

management.Goals

● To ensure that 100% of key suppliers comply ● To integrate ESG requirements into all new

with M&G ESG guidelines by 2025 supplier screening and onboarding standards

since 2025

● To ensure that ESG assessments and audits

cover 80% of suppliers by 2030

2024 Highlights

● The completion rate of the online training course ● Incorporated ESG risk assessment factors

on the M&G Code of Business Conduct reached into the assessment system for new supplier

96% development and onboarding

● Conducted internal control audits on business ● 100% of M&G’s product-related suppliers signed

conduct covering 22 operating locations that the Supplier Code of Conduct

represent 100% of M&G’s operational sites

● Launched a selection of outstanding ESG cases● ESG audits covered 100% of key suppliers with of suppliers and awarded the “ESG Innovationa rectification pass rate of 96.3% Practice Award”

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Business Ethics Anti-Unfair Competition

M&G has consistently promoted fair competition and formulated the Guidelines of Anti-Monopoly and Compliance to safeguard

M&G continuously improves its business ethics and compliance management system by establishing comprehensive policies on a healthy and rational market order. During the reporting period the Company established regional distributor authorization

anti-corruption anti-bribery and anti-unfair competition. The Company strengthens audit and supervisory mechanisms to build a management regulations and a pricing management system. By clarifying the scope of authorization and the pricing framework

clean and impartial corporate environment. we aim to prevent distributors from engaging in unauthorized cross-regional sales or price dumping and other unfair competition.In the area of marketing and promotion the Company released the Promotion Compliance Guidelines the Product Draft Review

White Paper and the 2024 M&G Online Business Sustainability Guidelines all of which explicitly require promotional activities to

Management System be truthful lawful accurate and clear and to use proper expressions—strictly prohibiting false or misleading advertising.M&G adheres to the principle of integrity and compliance in business operations and has established a comprehensive and

systematic business ethics and compliance management system8 by formulating and publishing a series of management policies Review and Supervision

including the Code of Business Conduct and the Supplier Code of Conduct9. The Company’s Risk Management and Compliance

Committee serves as the coordinating body for compliance efforts and is responsible for optimizing policies and procedures

assessing compliance risks implementing audit and supervision measures and fostering a culture of compliance. This ensures that M&G places great importance on identifying and internally controlling the

all business activities conform to applicable laws and regulations industry standards and internal management requirements. risks of commercial bribery and corruption. The Audit Department of the

Company carries out audits in accordance with the Company’s Internal In 2024 audits were

Audit Management Policy systematically reviewing the business scope conducted at

M&G Business Ethics and Compliance summarizing common fraud risk types analyzing potential fraudulent

Management System methods identifying high-risk key positions and creating a risk map. Based 22 operating sites

on this the Company continues to formulate and improve targeted control

measures.During the reporting period M&G conducted an internal audit of the Code

Anti- of Business Conduct covering 27 items including compliance with laws

Corruption Anti-Unfair Anti- Data Security

100%

Product Intellectual regulations and business ethics fair competition and antitrust anti-fraud

and Privacy coverage of the Company’s and Anti- Competition Monopoly Compliance Property and adherence to and responsibilities under the Code. Issues identified in

Bribery Protection

operational processes

the audit were promptly fed back to the relevant responsible departments

and improvements were actively tracked. Internal control audits include

business ethics audits covering fraud falsified expense claims and

misappropriation of funds or assets. In 2024 audits were conducted at 22

Anti-Corruption and Anti-Bribery operating sites achieving 100% coverage of the Company’s operational

processes.M&G has established management policies such as the Management

System Against Fraudulence10 forming a mechanism to regulate the M&G has established complaint and whistleblowing channels which are publicly disclosed on the official website. The Company

compliance behavior of employees and suppliers. During the reporting also sends monthly communications to all employees to raise awareness about fraud whistleblowing channels. All employees and

period the Company increased efforts to promote the signing of the external parties may report identified fraudulent and other non-compliant behaviors via hotline email or the Company’s WeCom.Transparent Procurement & Integrity Convention and the Supplier Code To ensure that the whistleblowing and investigation process is carried out in an orderly manner M&G has established the Internal

of Conduct by suppliers expanded the types of contracts signed and Investigation and Handling System for Employee Misconduct and the Whistleblower Protection and Non-retaliation System. These

broadened the scope of anti-fraud management coverage. By the end of ensure strict confidentiality of whistleblower information and prohibit any form of discrimination or retaliation.the reporting period 100% of M&G’s product-related suppliers had signed

the Supplier Code of Conduct.

100%

of M&G’s product-related suppliers had signed the

Supplier Code of Conduct

8 For information on M&G’s business ethics and compliance-related policies and management measures please refer to the section “ESG PerformanceReport – Social – Business Conduct” in this Report.

9 The Code of Business Conduct and the Supplier Code of Conduct have been publicly disclosed in the “Investor Relations – Corporate Governance” and

“Investor Relations – ESG” sections of the Company’s official website respectively.

10 The Management System Against Fraudulence has been publicly disclosed on the Company’s official website under the “Investor Relations – ESG”

section.

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Integrity Culture Development Supply Chain Management

M&G requires all new hires and employees in key positions to sign the Letter of Commitment on Integrity and Self-Discipline and

actively organizes training on business ethics and anti-fraud as well as themed cultural activities to continuously build a clean and M&G is committed to building a stable secure and green sustainable supply chain. The Company has established and

fair business environment. During the reporting period the Company launched online courses on the Code of Business Conduct continuously improved its supplier ESG management system and empowers its suppliers through ongoing engagement to achieve

and Management System Against Fraudulence on its learning platform requiring all employees to complete them. These courses mutual benefits and win-win cooperation in the pursuit of a sustainable supply chain.have also been made compulsory for new employees before they pass probation. By the end of the reporting period the completion

rate for the Code of Business Conduct course reached 96%. In addition a total of 13 training sessions were held on topics including

anti-fraud advertising compliance and intellectual property management generating 2311 instances of participation. Targeted anti-

fraud training was also conducted for key business departments such as product development and sales strengthening employees’ Supply Chain Management System

compliance awareness and risk prevention capabilities.M&G continually improves its supplier management system with clearly defined protocols for new supplier development and

onboarding product quality inspection and management supplier assessment and evaluation and exit mechanisms to effectively

control supply chain risks and ensure stable secure and high-quality product supply.Completion rate for the Code of Number of compliance- The compliance training

Business Conduct course related training sessions covered During the reporting period the Company expanded supply chain management to include non-tier-one suppliers and enhanced the

96% 13 2311 Key Tier 2 Material Control Process by adding a dual rule of “internal quality inspection and external third-party testing.” Through person-times on-site assessments and internal/external verification of Tier 2 materials in critical categories qualified Tier 2 material suppliers are

selected and required to sign centralized procurement agreements thereby ensuring consistent product quality and enhancing cost

efficiency.Case Organizing Anti-Corruption and Integrity-Themed Activities Supply Chain ESG Management

M&G promotes integrity and ethical behavior among employees through diverse activities that help cultivate a

clean and upright workplace culture. In July 2024 the Company held the “Summer of Integrity Green Care” event Percentage of key suppliers covered by ESG assessment Rectification pass rate

at the Shanghai Songjiang office building attracting over 200 employees with offerings such as complimentary teainteractive games and giveaways of integrity-themed merchandise. In December in response to “International Anti- 100% 96.3%Corruption Day” the Company hosted the “Knowledge for Rewards: Anti-Fraud Training Challenge” motivating all

employees to complete the Management System Against Fraudulence course through engaging activities like gift

redemption and team competitions.M&G Colipu has also carried out a variety of employee activities centered around anti-corruption and integrity. These M&G continues to deepen the construction of its supplier ESG management system. Building on the supplier ESG assessments

include incorporating integrity and honesty into monthly new employee training as well as organizing awareness conducted in 2023 the Company further integrated ESG criteria into supplier onboarding selection management and incentive

sessions on integrity effectively enhancing employees’ awareness of integrity. mechanisms embedding sustainable development principles throughout the entire supply chain management process. Duringthe reporting period M&G was nominated for the “Sedex Supply Chain Awards 2024 – Best Practice Award – EnvironmentalContribution.”

Supplier Onboarding

During the reporting period M&G revised its New Supplier Onboarding Management Measures and comprehensive assessment

forms for new suppliers to include ESG risk audit elements in the onboarding evaluation system for new supplier development.Assessment criteria cover areas such as labor practices environmental protection health and safety business ethics etc.M&G’s “Knowledge for Rewards: Anti-Fraud Training Challenge” M&G Colipu’s Integrity Awareness Campaign for “InternationalAnti-Fraud Training Campaign Anti-Corruption Day” Supplier Selection

M&G implements a tiered and categorized supplier management system selecting key suppliers based on the scale and

Since joining the Trust and Integrity Enterprise Alliance in 2023 M&G has actively participated in alliance-organized seminars importance of the collaboration. All key suppliers are included in the scope of ESG assessments with regular ESG audits

forums and exchange events. Topics have included internal fraud governance in private enterprises integrity risk prevention conducted to encourage improvement in their ESG management capabilities year by year. For other suppliers the Company

in overseas operations and the application of AI and big data in corporate internal controls facilitating experience sharing with integrates ESG evaluation criteria into their annual performance assessments based on the procurement management system.alliance members and continuously enhancing the professionalism of M&G’s integrity practices.

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Partner Development

Supplier Management

M&G conducts annual ESG assessments and audits of suppliers M&G actively provides business guidance and technical support to partners at all levels to establish a long-term stable and

evaluating their ESG performance across five areas: sustainable mutually beneficial cooperation ecosystem. The Company also actively participates in industry associations forums and industry Zero-Tolerance Items in M&G ESG

procurement environmental protection health and safety labor practices standard setting working alongside industry partners to promote high-quality development across the sector.Assessments for Suppliers

and business ethics. Eight zero-tolerance items are defined to prevent

major ESG risks. The ESG evaluation process consists of five steps: Operating without environmental permits

self-assessment questionnaire document review on-site audit rating illegal hazardous waste disposal failure to Quality Service

and corrective actions forming a closed-loop management system pass fire safety inspections employment

for continuous improvement. During the reporting period a total of 85 of child labor forced labor discrimination

suppliers participated in M&G’s ESG audits achieving 100% coverage of non-compliance with minimum wage M&G is committed to empowering retail partners by enhancing their service capabilities and market influence. During the reporting

key suppliers. M&G conducted 38 on-site audits and required suppliers standards and bribery period the Company focused on standardizing store visuals and creating designated product zones to help stores upgrade their

to rectify any non-compliance issues. The rectification pass rate reached image improve product display effectiveness and offer consumers a better shopping experience.

96.3%.

Case Empowering Retail Stores with Image UpgradesSupplier Incentives

M&G recognizes and promotes suppliers who proactively implement ESG practices and achieve outstanding results enhancing To ensure that store partners can effectively understand and utilize dedicated product zone materials M&G developed

their sense of honor and encouraging broader participation of suppliers in building a sustainable supply chain. During the reporting the M&G Space Brand Visual Guidelines which define material standards and offer over 30 material solutions to meet

period M&G selected the “Best ESG Practice Award” recipients based on exemplary ESG performance innovation scalability diverse customer needs. The Company also compiled the Barrier-Free Zone Implementation Standards Manual to offer

and operating results. Outstanding supplier progress in energy conservation and emissions reduction solid waste minimization systematic and standardized operational guidance for display area implementation. Supporting these efforts M&G

air pollutant reduction and water conservation was identified and celebrated. Awards were presented to winning suppliers at the conducted training sessions on display materials offering detailed instructions on the application of the visual identity

annual M&G Supply Chain Conference. system and the specifications for various materials. During the reporting period nearly 80 clients were empowered

through the implementation of special zone standards significantly improving in-store product presentation and the

overall store image.Supplier Empowerment

M&G empowers suppliers to enhance their ESG management capabilities through regular communication experience sharing on-

site guidance and periodic training. During on-site ESG audits M&G works with suppliers to analyze the root causes of key issues

and offers improvement suggestions to suppliers. With M&G’s support during the reporting period multiple suppliers made tangible

improvements in areas such as chemical storage and use management workplace safety equipment optimization safety signage

posting use of renewable energy waste management optimization etc.For internal procurement staff M&G organized a special training session in 2024 on “Green Supply Chain and Supplier ESGManagement” covering ESG audit and assessment processes and case studies to improve staff’s awareness and risk identification

capabilities in supply chain ESG management. This empowers staff to support suppliers more effectively in day-to-day interactions.During the reporting period M&G organized three special training sessions on supply chain ESG management covering a total of

91 employees.

Demonstration Area of Special Zone Visual Identity Guidelines in M&G Life

M&G has built a comprehensive digital sales and marketing platform to improve the operational efficiency of sales staff and channel

partners. During the reporting period M&G launched a self-developed retail system that enables terminal store owners to monitor

product sales in a timely manner and improve business quality. The Company also upgraded key channel tools such as “JuBaoPen”

On-site ESG Audit on Suppliers Supplier Empowerment Training and the M&G Alliance System to enhance user satisfaction and continuously support sales efforts.

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Tool Description Progress Industry Collaboration

Adhering to the philosophy of mutual development and win-win

The system manages orders from channel partners

Provides digital guidance for channel partners at cooperation M&G actively participates in the work of industry

at all levels enabling strict inspection and follow-

all levels across three dimensions: People (task associations such as the China Stationery and Sporting Goods

up to ensure closed-loop order fulfillment; actively

JuBaoPen follow-up decision-making support) Product Association and the China Writing Instrument Association

corrects issues such as excessively low product

(category opportunity exploration accurate order contributing to the healthy and orderly development of the

prices in a timely manner to promote efficient price

copying) and Place (store operation analysis). industry. During the reporting period the Company joined 21

control. industry associations and chambers of commerce with an

annual membership fee payment of RMB241000. In the field

M&G has worked with Meituan to lower barriers

A mobile application tailored for retail stores of sustainable development M&G successively participated

to store onboarding and product listing helpingfocusing on connection matching sales in initiatives such as the “Global Sustainable ConsumptionM&G Alliance stores quickly open stores on Meituan; It supportsassistance and services with in-depth support Initiative” “Low-Carbon Office Initiative” and “Sustainableself-initiated onboarding applications by storesfor retail stores. Development Industry Consensus” initiative. In 2024 M&G

increasing the number of purchasing stores. became a member of the Consumer Goods Forum (CGF) M&G attended CGF China Day event and participated in the

contributing the strength of China’s stationery corporates to the roundtable discussion

global sustainable development of consumer goods.M&G regularly organizes elite training camps channel partner conferences and other events while providing training and strategic

guidance for its channel partners to foster close collaboration and information sharing achieving mutually beneficial development. M&G actively participates in industry standard formulation transforming its experience and practices accumulated in product

During the reporting period M&G held four channel partner conferences with a total of more than 4800 instances of participation. R&D into enforceable industry standards. During the reporting period M&G led or participated in the development of six national

standards 17 industry standards and four group standards expanding its professional influence beyond the pen industry to

stationery sports goods and the four treasures of the study (brush ink paper and inkstone). The Company also took part in

the development of product safety and ESG-related standards such as the Children’s Acrylic Paint and Acrylic Markers General

Requirements for Recyclability Design of Plastic Products Carbon Footprint Accounting Methodological Guidelines for Cultural and

Sport Products and Guideline for Green and Low Carbon Supply Chain Construction and Evaluation supporting the standardized

Number of channel partner conferences held Instances of participation development of industry sustainability.

44800

M&G showcased sustainable products M&G attended The Fortune ESG Summit M&G’s environmental artworks

at the 29th meeting of the Conference of and participated in the panel discussion exhibited at the Shanghai Internationalthe Parties (COP) to the UN Framework “Consumer Awakening: Responsible Carbon Neutrality ExpoConvention on Climate Change also Production and Brand Strategy”

known as “COP29”

M&G 2024 Channel Partner Conference

M&G participated in the 2024 World M&G attended the Fifth Dream Builders M&G attended the 2024 Kantar BrandZ

Design Cities Conference showcasing Public Welfare Conference organized by China Gala Event sharing practices in

design and product innovation Southern Weekly and participated in the sustainability and brand innovation

capabilities roundtable dialogue

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Employees and Communities

M&G has always adhered to the principle of “people-oriented” development striving to create a healthy and

safe working environment fully safeguarding the physical and mental health of employees. The Company

continuously improves talent cultivation and development mechanisms to support employee growth and

progress while actively building a fulfilling workplace to enhance employees’ sense of belonging and well-

being. In addition M&G actively fulfills its corporate social responsibilities by promoting rural art education and

volunteering initiatives gathering the strength of all sectors of society to jointly contribute to social harmony

and development.Material topics

● Occupational health and safety - Improve the ● Employee benefits - Improve the employee

occupational health and safety management system benefits system to enhance employees’ sense of

implement hazard inspection safety training facility and happiness and fulfillment.equipment optimization and emergency response to

●

continuously reduce occupational health and safety risks. Diversity and equal opportunities - Create fair

employment opportunities provide an equal platform

● Training and development - Build a comprehensive for talents of different backgrounds and abilities and

diversified and multi-level training system; establish fair foster a diverse and inclusive work environment.and transparent promotion standards and evaluation

●

systems to provide employees with a clear career Social welfare - Focus on art education and

development path. promote diversified public welfare programs and

organize employee volunteer services to support

● Labor rights - Ensure lawful payment of wages rural revitalization and social welfare.and social insurance contributions and standardize

●

recruitment procedures; properly handle labor disputes Information security and privacy protection -

emphasize the rights and benefits of flexible workers Establish a sound information security management

and maintain stable labor relations. system strictly protect the personal information of

customers consumers and employees and prevent

data breaches and cyberattack risks.Goals

● To ensure that 100% of full-time employees are ● To achieve ten million instances of

covered by the training system by 2028 empowerment by 2030

● To maintain zero severe injuries and fatalities

annually

2024 Highlights

● Conducted over 40 safety inspections with total safety ● M&G Foundation’s “Art Education Plan” program

training hours reaching 25489 was extended to 624 rural schools and 36

Zero community centers across 23 provinces and cities; ● severe injuries or fatalities; minor injury rate at the

Shanghai base decreased by 27% year on year The “Golden Seed Plan” education assistance

program donated over 60000 stationery kits;

● Training system covered 98% employees; average

hours of training per employee reached 14.6 Generating over 440000 instances of benefit for primary and secondary school students throughout

● Female employees accounted for 48% of the workforce the year

● 32 female mid-to-senior managers participated in the ● A total of 4435 instances of employee participation

Women’s Leadership Workshop in voluntary services contributing 9221 hours

● The inaugural Sustainability Culture Month attracted ● Charitable donations totaling RMB8.44 million

over 3000 employees’ participation

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Occupational Health and Safety Occupational Health Management

M&G always prioritizes production safety and employee occupational health continuously improving safety management systems M&G continuously strengthens occupational disease prevention measures to reduce the risks associated with dust toxic gases

and the occupational health and safety systems to foster a healthy and safe work environment. noise and other hazardous occupational exposures. The Company provides employees with labor protective gear and requires

them to wear it. During the reporting period the Shanghai production base enhanced pre-employment and on-the-job medical

checkups established and maintained occupational health records and reassigned employees identified with occupational

Safety Management System contraindications to avoid exposure to occupational disease hazards; the subsidiary Axus Stationery upgraded the sealing of its

painting line to reduce irritating odors’ impacts on employees while the South China base organized first aid training courses with

Upholding the principle of “prevention as priority response as supplement effective control and continuous improvement” M&G the Red Cross to help employees learn emergency response skills. For office environments M&G appointed safety officers on each

has built a comprehensive Quality Environment Health and Safety (QEHS) management system. During the reporting period floor of its Shanghai office building and organized fire safety training to enhance safety awareness.M&G further strengthened its production safety accountability system by establishing a group-level safety management team and

creating an Environment Health and Safety (EHS) responsibility map to assign responsibilities clearly eliminate blind spots and

define responsibility boundaries. Additionally the Company holds quarterly safety management meetings to review and summarize

safety system performance across all locations and determine improvement plans based on inspection results.Case Noise Control and Improvement

In 2024 M&G increased the frequency of safety inspections and carried out over 40 special safety inspections at offices and

production logistics sites. Potential safety hazards were comprehensively identified and a list of issues was compiled. A follow-up

mechanism ensured that rectifications were tracked to form a closed-loop management process effectively reducing the occurrence M&G’s Shanghai base continued its noise reduction efforts during the reporting period setting a goal of reducing the

of accidents. For special equipment M&G further improved its safety management system. In accordance with requirements of the number of employees affected by noise by 30% compared to the previous year. The Company implemented noise

Regulations on the Supervision and Administration of the Implementation of Primary Safety Responsibilities by Special Equipment control measures such as installing soundproof covers and creating separate zones in various workshop areas. As

Users (State Administration for Market Regulation Order No. 74) the Company has implemented safety responsibility measures a result the proportion of employees impacted by noise was successfully reduced by 57%. The subsidiary Axusfor the use of special equipment. A comprehensive work mechanism of “daily management weekly inspections and monthly Stationery also conducted noise prevention measures tailored to its specific conditions installing noise barriers forscheduling” has been established to promptly eliminate potential safety hazards. high-decibel equipment in the pencil workshop significantly lowering noise levels.In 2024 M&G recorded

0 cases of serious injury or fatal accidents Talent Cultivation and Development

The Company lawfully organized safety education and training for M&G is committed to supporting the comprehensive development of its employees. Focusing on the full lifecycle of talent the

employees at its production sites. Special operations personnel and those Company emphasizes talent standards talent review development mobility inventory and other key factors. It has sorted out and

in key safety positions are required to be certified before commencing work. established a multi-level multi-format and diversified talent development system providing high-quality learning resources and

New employees must undergo three levels of safety training at the plant growth platforms to stimulate talent vitality and support mutual growth between the Company and its employees.workshop and pre-post stages and the Company continuously improves

the inspection mechanism for onboarding safety training. In accordance with

the annual safety training plan M&G organized a series of training sessions

for frontline safety officers and management personnel covering topics

such as fire safety emergency management hazard identification and risk M&G Safety-themed Training Talent Introduction

assessment production safety laws and responsibilities and operational

safety. During the reporting period total safety training hours reached

25489. M&G continuously expands its introduction channels

through campus recruitment social hiring internal

referrals and the “Huoshui Plan” (an internal

Case Strengthening Equipment Safety Risk Inspections and Controls to Reduce Accident Rates talent mobility mechanism). During the reporting

period M&G reviewed updated and released 25

recruitment processes and standard operating

Following a statistical analysis of past accident data M&G’s Shanghai production base identified the reduction of procedures (SOPs) to improve recruitment

equipment-related safety accidents as one of its key safety improvement priorities for 2024. The Company conducted efficiency while ensuring fairness in hiring practices.in-depth analyses of previous incidents including video reviews and observational analysis to comprehensively In campus recruitment M&G strengthened

assess equipment operational risks. Based on these risk assessments each plant formulated five targeted partnerships with multiple universities and organized

improvement projects related to equipment start-up and shutdown procedures human-machine collaboration flipping open days roadshows information sessions and

line equipment injection molding robotic arms and power distribution cabinets. Over 1400 pieces of equipment were special job fairs to attract outstanding students to

inspected for hazards and specific improvement measures were developed ultimately resulting in a 15.6% year-on- join the Company’s career development platform.year decrease in equipment-related accident rates.

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To further empower fresh graduate recruitment and enhance the accuracy of job matching for fresh graduates M&G upgraded its

campus recruitment toolkit by aligning with competency models and key behaviors and providing standardized interview questions

and processes. The Company also introduced online assessment tools conducted interviewer training and comprehensively

improved the profiles and development plans for management trainees thus enhancing the quality and efficiency of campus General Competency New Employee Leadership Training Professional Skills Specialized

recruitment. Additionally M&G Colipu actively adopted online tools to optimize the recruitment process by building an online for All Employees Integration Training Training

recruitment management system that supports online resume submission data sorting interview evaluation and message

notifications—significantly streamlining the recruitment process and improving the candidate experience.General courses Programs such Initiatives include The M&G Specializedsuch as structured as the “Child of the New Manager Manufacturing programs such asthinking and Light” management Bootcamp “Five Institute was the sales system’sexpression trainee development Dysfunctions of a established for “Commanderproblem analysis program and the Team” workshop and production base Development

and solving and “M&G First Light” Women’s Leadership employees offering Program” the

time management new employee Workshop. External a series of training technical center’sare offered to help orientation help resources such modules covering “Communicationemployees overcome newcomers fully as the Global team leader skills and Collaborationhabitual thinking understand M&G’s Leadership Summit injection molding Themed Workshop”

and enhance cross- development journey (GLS) are also techniques and the overseasdisciplinary learning values and business introduced to assembly team’s “Life Storyand problem-solving modules enabling equip managers techniques planning Sharing Session”

capabilities and quicker adaptation with leadership and safety to are launched to

overall literacy. to the new work skills and improve enhance employees’ meet business

M&G Campus Open Day M&G Colipu Campus Recruitment Information Session environment. team collaboration technical capabilities. development and

efficiency. team-building needs.Promotion and Incentives

M&G has formulated the Employee Promotion Management System to provide employees with a clear career development M&G continuously improves its online learning platform. As an internal corporate culture communication and learning platform

framework and advancement pathway. The Company has established multiple promotion mechanisms including annual promotion it aligns employees’ personal growth with organization's strategic goals. The platform consists of two main sections: cultural

on-post promotion management trainee promotion and management-level promotion. Promotion criteria are determined based on promotion and training & learning. Its functions include course and learning plan creation training data collection surveys

comprehensive performance evaluations center achievements and other dimensions to ensure fairness and transparency in the examinations and assessments mentoring live teaching article posting and community operations. Currently the platform offers

promotion system. 304 courses including 112 culture promotion courses 54 professional empowerment courses for retail stores 22 new employee

empowerment courses 35 leadership courses and 81 general courses. As of the end of the reporting period 98.4% of employees

M&G implements a variable compensation mechanism for all employees based on performance evaluation. In accordance with the had used the platform for self-improvement.Company’s Performance Management System a closed-loop management process is applied covering performance goal setting

guidance assessment and result application. Performance evaluation results are used to calculate performance-based bonuses As the Group’s B2B integrated digital e-commerce platform M&G Colipu has built a comprehensive internal training system based

and year-end bonuses as well as to support position and compensation adjustments. During the reporting period M&G also on its business characteristics. It has set up four major training modules: emerging capability general capability professional

introduced tailored incentive schemes for employees in sales overseas business Jiumu Store’s development personnel and other capability and management capability covering corporate culture business processes sales skills product knowledge and

business units. Furthermore the Company launched the M&G Talent Cash Incentive Plan targeting middle management to fully management skills to fully meet the training needs of employees at different development stages. Over the year 21 training

stimulate employee motivation. programs were carried out with a 100% employee participation rate. For internal trainers M&G Colipu has formulated detailed

certification programs and management systems to encourage more employees to become certified instructors. Through regular

training and feedback the quality of instruction is assessed promoting knowledge transfer and building a learning-oriented

organization.Average training hours per

Training and Growth employee

14.6

M&G empowers its talent through three dimensions: general

competency professional skills and leadership development.The Company organizes targeted training courses according

to the development characteristics of employees at different

levels and functions and supplements this with diverse Training system coverage rate

formats such as mentorship and executive roundtables to 98%

share practical experience and growth insights. These efforts

foster employees’ well-rounded development while enhancing

the Company’s talent competitiveness.M&G Colipu Employee Training

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Case “Child of Light” Management Trainee Program Case Retail Talent Development Program of Jiumu Store

M&G regards management trainees as Jiumu Store launched two sets of courses: “Xingtu Program” and “Xingyao Program” targeting employees at

strategic reserve talent for the future and different levels and positions in retail stores aiming to enhance their knowledge and skills and empower their career

has prioritized their development. During the development.reporting period the Company conducted a

comprehensive upgrade of the management

trainee program across the entire chain from Program Target Content Outcomes

talent selection and identification to training 38 sessions held throughout

and development. A total of 91 trainees Sales associates Performance management merchandisewere recruited. With the implementation of a “Xingtu and store management personnel managementthe year with nearly 1600

participants trained and aseries of training mechanisms and systems Program” manager sales techniques system operation

assistants techniques etc. training coverage rate of nearly these management trainees were effectively 99%

supported in transitioning from novices to a

vital “combat force” within the Company. By Offline courses cover personnel

the end of the reporting period the retention management goal management

rate of this cohort of management trainees 2024 Management Trainee Onboarding Bootcamp

On-duty and display management and merchandise Five sessions held throughout had reached 98%. “Xingyao reserve dual- management supplemented with practices the year with 87 participants Program” store managers such as store management training trained and nearly 40 hours of mentorship and dynamic coaching to instruction

Selection and Interview Onboarding Bootcamp Ongoing Development empower participants in improving store

management capabilities

The Human Resources Center Within two weeks trainees gained During the 18-month training period

closely collaborated with each an intensive understanding of development was structured around

business unit to update and the Company’s history culture five pathways: training and learning

refine the talent profile and strategy brand and business logic progress evaluation rotation

selection criteria. combined with frontline rotation engagement and attention and

experiences enabling a 360-degree mentorship empowerment. Business

understanding of and immersion mentors and human resources Happy Workplace

into M&G through listening business partners (HRBPs) provided

watching and feeling. double guidance to ensure the growth

and development of trainees. M&G respects and safeguards employees’ legitimate rights and interests continuously improves the benefits system values

employee diversity and provides an equal and inclusive work environment. The Company also organizes a wide range of employee

activities to foster a vibrant and positive sustainability culture.“Rising Sun” – Management Role Transition Program To gain a more comprehensive understanding of employees’ voices and needs M&G launched an employee engagement survey Case at the end of 2024. Through questionnaires the Company collected feedback and opinions on corporate culture work environment

career development and other areas. Based on the analysis results the Company continuously followed up and optimized its

practices to enhance employee engagement. Over 90% of employees participated in the survey this year.To support new managers in quickly adapting to their roles M&G launched the five-month “2024 Rising Sun –Management Role Transition Program” during the reporting period. The program was designed with a systematic

development path and diverse training formats integrating both training and practice. It addressed common scenarios

and challenges encountered by new managers helping participants build their leadership capabilities and better drive

team and personal growth.M&G Employer Awards in 2024

“Top Human Resources Management “DEI Employer Awards 2024” and “2024 Human ResourceAwards—Outstanding Employer” “Top 100 DEI Employer 2024” Award—Best Employers”

51job HRflag HRoot“2024 Top 100 Happy “2024 Asia Best Workplace—

2024 “Rising Sun” – Management Role Transition Program Enterprises: Best CSR Top 30” Healthy Workplace Advocate” “Model Happy Workplace”

The Economic Observer AIA αi Quality Workplace

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Employee Benefits and Activities Diversity and Equal Opportunities

In addition to fulfilling statutory obligations to pay various types of social insurance M&G has established and continuously M&G integrates the concept of Diversity Equity and Inclusion (DEI)

improved an employee benefits system covering five key categories: allowances and subsidies health and well-being protection with the corporate value of “openness and inclusiveness” and is

against risks paid leaves and accommodations. During the reporting period the Company provided additional benefits and care to committed to creating a workplace where employees from diverse

ensure the well-being of every employee. backgrounds can fully realize their potential and achieve personal

value. During the reporting period M&G reviewed the current status

Additional Commercial Insurance Improvement of Living Conditions of internal DEI practices and proposed management objectives Female employees

such as increasing the proportions of female employees and female accounted for

Provided all employees with additional commercial Renovated old dormitories at the Shanghai production executives which will guide the Company in gradually strengthening

insurance including term life insurance critical illness base retrofitted supporting facilities repainted hallways the DEI system establishment and its implementation in future years. 48% of M&G’s

insurance accidental injury insurance and accidental and maintained the hot water system to improve total workforce

medical insurance. employee satisfaction with accommodations. The Company has clearly stipulated in the Employee Handbook that

any form of discrimination based on gender region ethnicity age

Physical Health Promotion Mental Health Focus marital status or other factors is strictly prohibited. Gender equality

and fair treatment are emphasized in all aspects of human resource

In addition to regular check-ups offered supplementary Invited external professionals to host five charitable management. Furthermore M&G attaches great importance to the

women’s health screenings and health education; mental health salons to help employees develop self- rights and interests of female employees supporting their career

opened an infirmary at the Shanghai office building to awareness and enhance workplace well-being with a development and helping them balance work and life. M&G and its

provide emergency medicine blood pressure monitors total of 70 employees participating. subsidiaries including M&G Colipu and Axus Stationery provide

thermometers and other basic medical supplies; female employees with various types of leave such as maternity

established a medical service station in the park to offer leave and parental leave. Nursing rooms are also available at

diagnosis medication dressing change and health office locations offering clean and private spaces for breastfeedingmanagement services for common illnesses. employees. The Company has continued to organize “ParentChild Mother EQ Course” and held its first Women’s Leadership

Workshop during the reporting period to help female employees better

M&G and its subsidiaries regularly organize a wide variety of employee events such as sports festivals arts festivals team-building understand their strengths and potential and to empower them to

activities club activities holiday salons and family days. These activities help employees relieve work stress balance work and pursue their career goals more confidently. Handmade Decoupage Bag Activity for International

life and stimulate creativity and team spirit. Women’s Day

Case Women’s Leadership Workshop

M&G Programmers’ Day Jiumu Store Family Day M&G Club Activity M&G Colipu International On November 22 2024 M&G held its first Women’s Leadership Workshop attended by 32 female mid- and senior-

Women’s Day Celebration level managers. This workshop created a dedicated space for female leaders and offered a series of educational and

empowering activities. Through these sessions participants enhanced their self-awareness discovered the unique

strengths of female leadership and gained empowerment through mutual exchange and resonance.Case Sports Game and Arts Festival: Showcasing Diverse Talents and Uniting Collective Strength

The 2024 M&G Sports Game lasted 30 days and included six

individual events and five team events generating nearly 1000

instances of participation from 21 departments. With events such

as curling shooting hoops tug of war and long rope skipping

participants competed for the M&G “Champion’s Cup” gaining honor

joy and unity in the process. Additionally the newly launched M&G

Arts Festival received enthusiastic responses from 26 departments M&G “My YOUNG” Sports Game

and branch plants with 137 employee submissions in photography

painting singing and dancing talk shows and more showcasing

employees’ vibrant and artistic sides beyond work. These events not

only enhanced physical fitness and creativity but also strengthened

team cohesion and enriched corporate culture.M&G Arts Festival M&G’s First Women’s Leadership Workshop

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Sustainability Culture Development Social Welfare

M&G continuously promotes the development of an internal sustainability culture. For the second consecutive year each center Since its inception M&G has been actively fulfilling its social responsibilities. In 2015 the M&G Rainbow Charity Fund was

and department has appointed a Sustainability Ambassador. The Company also refined the Charter of Sustainability Ambassadors established. In 2020 the Shanghai M&G Foundation (“M&G Foundation”) was officially founded. Upholding the philosophy of

to clarify the ambassadors’ responsibilities goals management mechanisms support and incentive mechanisms thereby better “promoting quality education and empowering inclusive community development” M&G Foundation has carried out a variety of

motivating participation. During the reporting period 25 ambassadors actively communicated the Company’s sustainability updates charity programs. During the reporting period M&G Colipu established the Colipu Charity Fund under the M&G Foundation and

and activity information promoted low-carbon office practices such as energy water and paper conservation and created green made an initial contribution of RMB100000 to support its charity undertakings in 2024. Throughout the year various initiatives were

work environments within their departments. They also independently organized over ten sustainability-themed employee activities carried out including charity forest visits donation of teaching supplies and volunteer services for art classes further expanding

helping to concretize abstract concepts such as sustainability and ESG in ways that resonated with staff subtly integrating these the Company’s charity strength.ideas into daily work.In addition M&G introduced ESG awards into its annual company recognition program to commend outstanding individuals and M&G Foundation adheres to the philosophy of guiding the industry

teams. This award mechanism not only celebrates achievements but also encourages internal reflection on ESG efforts and in joining the efforts for doing good focusing on three major areas: Instances of employee

promotes cross-center communication and collaboration. rural education care for special groups and community care. It volunteer service participationhas carried out the rural art education program the “Golden SeedPlan” education assistance program and the Autism Support 4435

Program. It also actively engages employees customers and other

stakeholders in charitable activities. As of the end of the reporting

period M&G Foundation had carried out educational charity

initiatives in 138 prefecture-level cities across 32 provinces in China.During the reporting period the total amount of charity funds and Volunteer service hours

material donations from M&G Foundation and M&G’s subsidiaries 9221

reached RMB8.44 million generating more than 440000 instances

of benefit. A total of 4435 instances of employee volunteer service

participation were recorded contributing 9221 hours of volunteer

service.

2024 M&G Sustainability Ambassadors Awarding Ceremony for Outstanding Individuals for ESG Performance

at the M&G Annual Gala

Focusing on Rural Art Education

Case “Hello Sustainability” – M&G’s First Sustainability Culture Month Art education plays an irreplaceable role in enhancing aesthetic literacy enriching the spiritual world and cultivating innovation

awareness among rural students. In recent years the government has issued multiple documents such as the Opinions on

Comprehensively Strengthening and Improving School Art Education in the New Era and the Notice on the Comprehensive

In September 2024 M&G launched Implementation of the Art Education Infiltration Action in Schools emphasizing the importance of art education and encouraging

its first “Sustainability Culture Month” social forces to participate in its development thereby forming a joint force to educate through art.organizing a series of engaging and

meaningful activities under four weekly

themes: “99 Giving Day” “Protecting M&G Foundation has long been committed to rural art education.the Deep Blue” “Sustainability In 2022 it launched the “Art Education Plan” program based onKnowledge Enhancement” and accumulated experience. The program enhances the aesthetic

“Safety Matters” along with an literacy of rural schools and communities through lesson planonline check-in campaign titled “Let’s collection teacher training and art supply donations. It alsoBuild a Sustainable Life Together.” Charity Sale Co-created Ocean Poetry connects resources from other charity foundations enterprises and

The initiative enabled employees to university volunteer associations to build an ecosystem for children’s

experience participate in and co- art education in rural areas. In 2024 with support from the Office

promote sustainable development. of the National Working Committee for Youth Affairs the program

During the campaign period over 10 organized large-scale art education events on school campuses

events were held generating more increasing the number of beneficiary schools to 624. During the

than 3000 instances of participation. year M&G Foundation also successfully brought art courses into 36

A total of 123 employees participated communities enabling migrant and left-behind children to participate

in the online check-in campaign with in art activities after school or during holidays. A special rural art

the cumulative number of check-ins competition co-hosted with M&G Foundation and One Foundation

exceeding 500 significantly enhancing attracted over 120000 student submissions nationwide with Sustainability Strategy Sharing Fire Safety Drill

employees’ awareness of sustainability. more than 3000 outstanding works exhibited in over 100 physical

exhibitions across the country. These works were also developed

Physical Exhibition of Works from the Rural Art Competition

into charitable stationery products driving continued attention to art

education in rural schools through high-quality painting competitions.

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On World Children’s Day 2024 M&G Foundation released the short film Sunrise and held the A Thousand Sunrises rural children’s Innovative Charity

art exhibition at Zikawei Library in Shanghai showcasing over 100 “sunrise impressions” created by children from rural schools.Through over 85.75 million online views and a month-long physical exhibition the initiative not only highlighted rural children’s

talent in creating beauty but also raised broader public awareness of rural art education. In addition to mobilizing internal resources for charity M&G Foundation has been actively expanding external partnerships. During

the reporting period it established collaborations with multiple foundations and philanthropic enterprises exploring innovative

models such as carrying out charity livestreaming and joining “Goods for Good” program aiming to jointly build a sustainable

charity ecosystem.Case Charity Livestream to Raise Awareness for Autism

M&G Foundation has long carried out the Autism

Support Program empowering individuals with autism

and their families through artistic creation. On April 2

2024 “World Autism Awareness Day” M&G Foundation

partnered with Gaotu High School to launch a charity

livestream to raise public awareness about autism. The

livestream also featured the release of a creative gift

M&G Foundation’s Short Film Sunrise A Thousand Sunrises Charity Exhibition set “Happy Planet” inspired by drawings by children

with autism. This charity product served as a creative

medium to advocate for a more inclusive society for

individuals with autism. The livestream attracted over

50000 viewers and 100% of the profits from product Introducing the Charitable Story behind the Creative Gift Set

Everyone for Charity sales were donated to support income-generating during the Livestream

projects for both individuals with autism and women in

rural communities.M&G actively promotes a corporate culture of

“Everyone for Charity.” Each year it organizes senior

executives and employees to participate in large-scale

charity events such as the “E.G.G Walkathon” charity Case Teaming up with Alibaba Foundation to Launch Livestreaming Charity Sales

walk the “99 Giving Day” events and Executive

Charity Trips. It also hosts monthly charitable

activities in various themes including summer art M&G Foundation joined Alibaba’s “Goods for Good” program. During the reporting period it collaborated with top

class assistantships charity markets environmental livestreamers on Taobao to host multiple livestreaming charity sales featuring M&G’s charity stationery products. All

film screenings and visits to M&G Foundation Forest sales proceeds were donated to M&G Foundation’s projects enabling consumers to support the charity by purchasing

gradually integrating charity into the daily lives of products and unlocking a new model for charity engagement. M&G and several other consumer goods brands were

M&G employees. During the reporting period M&G awarded the “2024 Innovative Charity Award” by Alibaba Foundation.established the M&G Volunteer Team implemented

a volunteer service points and reward system and

enabled volunteer service hours to be logged in

the official Shanghai volunteer database allowing

volunteers to enjoy government incentive policies.M&G Foundation also presents commemorative

certificates to volunteers at the end of each activity

and during annual review events establishing a long-

term incentive mechanism to encourage employees’

continuous participation in charity.Over 300 employees participated in the “E.G.GWalkathon” charity walk

Employees created traditional Chinese painting

bookmarks and wrote heartfelt messages for rural children

All M&G senior executives participated in the Executive Charity Day

engaging in close and heartfelt interactions with children with autism

With the support of M&G Foundation employees initiated charitable Livestreaming Charity Sales of M&G’s Charity Products on Taobao

painting activities in local communities

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ESG Performance Report Energy Utilization

M&G strictly complies with laws and regulations such as the Law of the People’s Republic of China on Energy Conservation and

the ISO 50001:2018 Energy Management Systems standard. The Company has developed and implemented the M&G Energy

Management Manual . M&G’s energy management system has been certified to ISO 50001. During the reporting period while

Environment ensuring a stable energy supply M&G increased investment in renewable energy such as photovoltaic power generation and green

electricity procurement to gradually increase the proportion of clean energy usage. Each base has set annual energy-saving targets

based on the Company’s climate strategy and action roadmap as well as its actual status and actively implemented energy-saving

initiatives including equipment upgrades process optimization waste heat recovery and digital management. These efforts are

Environmental Compliance Management expected to save approximately 1.74 million kWh of electricity annually equivalent to reducing 770.8 tCO2e emissions.M&G strictly complies with the Environmental Protection Law of the People’s Republic of China the Law of the People’s Republic

of China on Environmental Impact Appraisal and other relevant laws and regulations. The Company has established environmental Ecosystem and Biodiversity Protection

management systems including the Environmental and Safety Management Operation Control Procedures and the Environmental

Factor Identification and Control Procedures. To ensure effective environmental compliance management M&G developed the M&G is committed to implementing ecological and environmental protection measures in strict compliance with the Environmental

Control Procedures for Emergency Preparedness and Response conducted environmental and safety risk inspections and Protection Law of the People’s Republic of China the Law of People’s Republic of China on Environmental Impact Appraisal

established emergency preparedness and response plans. The Company organized environmental and safety emergency drills and the Law of the People’s Republic of China on Water and Soil Conservation and other laws and regulations. During the reporting

implemented risk assessments for environmental incidents and emergency response management for unexpected environmental period all major M&G operational and business sites were located outside the scope of ecological protection redlines. As a wood-

incidents. M&G Shanghai production base has passed the ISO 14001 Environmental Management System certification. During based pencil manufacturer the subsidiary Axus Stationery owns 1853 mu of forest land which has been FSC certified. Axus

the reporting period M&G did not experience any major environmental incidents nor was it subject to significant administrative Stationery has formulated the Sustainability Management Policy pledging not to use any uncertified tropical rainforest species and

penalties or criminal liabilities by the Ministry of Ecology and Environment or other relevant authorities. continuously monitors the biodiversity of the forest land during its operations to ensure sustainable utilization of forest resources.M&G’s Measures for Ecosystem and Biodiversity Protection

Pollutant Discharge Project Site Selection Project Construction Production and Operation

M&G is committed to environmental protection strictly adhering to relevant laws and standards such as the Environmental ● Conduct on-site inspections to ● Carry out environmental impact ● Formulate and implement strict

Protection Law of the People’s Republic of China the Law of the People’s Republic of China on Prevention and Control of assess the impact of construction assessments for construction projects management measures for

Water Pollution the Integrated Emission Standard of Air Pollutants and the Emission Standard for Industrial Enterprises Noise on local biodiversity and avoid to identify key environmental impact wastewater exhaust gas and

at Boundary. The Company has implemented environmental management systems including the Environmental and Safety natural habitats wetlands forests factors formulate and implement noise and forest land protection

Management Operation Control Procedures to ensure the compliant discharge of wastewater exhaust gas and noise. wildlife corridors and agricultural various environmental protection monitor the surrounding

land; measures and maintain the original environment and reduce

In accordance with the Regulations on the Administration of Pollutant Discharge Permits M&G has completed pollutant discharge ecological state of the plant area; environmental impact.● Confirm the project scope and

registration and established comprehensive monitoring recording and reporting processes for pollutant discharge as well as minimize the impact of construction ● Conduct ecological monitoring of the

emergency response measures for excessive discharge. The Company regularly monitors pollutant discharge and issues testing on flora and fauna. environment surrounding the plant as

reports for wastewater exhaust gas and noise to detect and address discharge anomalies in a timely manner. Pollution control required to understand environmental

equipment is continuously maintained and updated. Axus Stationery has installed complete dust and odor removal systems for changes and potential impacts.equipment involving exhaust gas and adopted measures such as adding desulfurization and denitrification systems using low-

nitrogen burners and replacing biomass boilers with centralized heating to eliminate or reduce negative environmental impacts as

much as possible. For wastewater treatment M&G has formulated the M&G Stationery Water Treatment Facility Operation Manual

and strictly follows its procedures to ensure compliant discharge into municipal sewage pipelines. During the reporting period Social

M&G’s discharge of wastewater exhaust gas and noise met the relevant national and local pollution discharge standards and legal

requirements. Product Quality and Safety

M&G strictly complies with the Law of the People’s Republic of China on Product Quality the Request in Common Use of Security

for Student’s Articles (GB 21027-2020) the Hygienic Requirements of Study Products for Myopia Prevention and Control in

Waste Management Children and Adolescents the Work Plan for the Safety Protection of Children and Student Supplies and other laws regulations

and standards. The Company has established the M&G Quality Management System and formulated various product safety

policies and procedures including the Management and Control Procedure for Product Safety the M&G Product Audit Sampling

M&G strictly complies with the Law of the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Mechanism (Trial) the Quality Risk and Opportunity Control Procedure the Design and Development Control Procedure the

Waste and other relevant laws and regulations. The Company has developed systems and management procedures such as the Process Control Procedure the Production Control Procedure the Product Monitoring and Measurement Control Procedure

Solid Waste Control Plan and the Hazardous Waste Storage Facility Management System assigning clear responsibilities across the Nonconforming Product Control Procedure the Identification and Traceability Management Control Procedure and the

departments for the classification and compliant disposal of waste. M&G follows the principles of reduction reuse and recycling to Compliance Obligations and Compliance Evaluation Control Procedure. These ensure that every stage from raw material to

maximize resource utilization and minimize waste at the source. Recyclable waste is promptly handed over to recycling companies product delivery is subject to strict quality control. During the reporting period M&G and subsidiaries such as M&G Colipu and

for recyle and reuse; non-recyclable waste and domestic garbage are collected and processed by qualified service providers; Axus Stationery successfully obtained ISO 9001 Quality Management System certification. In terms of product certification we

hazardous waste is entrusted to licensed third-party companies for compliant disposal. ensure that all products subject to China Compulsory Certification (CCC) such as educational devices pinyin learning machines

and microscopes complete certification prior to market launch. During the reporting period there were no major safety or quality

incidents related to M&G’s products or services.

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Marketing and After-sales

M&G strictly complies with the Advertisement Law of the People’s Republic of China the Copyright Law of the People’s Republic M&G has established a Chemical Management Committee composed of the Sustainability Office Procurement Center Production

of China and other relevant laws and regulations. The Company has issued institutional documents such as the Promotion Center Technical Center and Quality Center. This committee is responsible for coordinating chemical safety management

Compliance Guidelines and the Product Draft Review White Paper to ensure that advertising is legal and compliant sales formulating performance evaluation standards promoting compliance gradually phasing out chemicals prohibited or restricted by

information is transparent and accurate and legitimate consumer rights and interests are protected. It published the M&G Social regulations enhancing information transparency and raising public awareness of the chemical safety of M&G’s products.Media Platform Content Guidelines to regulate content on self-media platforms requiring that “all content published on socialmedia platforms shall be truthful legitimate healthy and accurate and must not contain false or misleading information or deceiveor mislead consumers;” it has also formulated the M&G Media Relations Guidelines and the M&G Public Opinion Management M&G Chemical Safety Management Structure

System which clearly state that M&G employees are required to communicate with the media and other influential audiences

based on facts maintaining an honest clear and transparent attitude while actively practicing responsible marketing.Chemical Management Committee

M&G has established a complaint-handling mechanism and continuously improves the Customer Complaint Handling Procedure

designating departments and personnel responsible for addressing customer complaints and inquiries in a timely manner.Meanwhile the Company has developed a product recall management system that defines responsibilities recall procedures and

oversight mechanisms to protect consumers’ lawful rights and interests. Procurement Center Quality Center Sustainability Office Production Center Technical Center

Innovation-driven Development Supply Chain Safety

M&G invests more than RMB100 million annually in technological R&D and product innovation. As a national high-tech enterprise M&G has established and improved its supply chain management system formulating a series of institutional documents such as

the Company has established the China Writing Instrument Industrial Base the China Writing Instrument Center the National the Supplier Management Method the Supplier Code of Conduct the New Supplier Development and Onboarding Management

Industrial Design Center and the Key Laboratory of Writing Instrument Engineering Technology of China National Light Industry. Method the Supplier Evaluation Management Method and the Supplier Management Control Procedure. These documents

It has also formulated comprehensive R&D management standards and an intellectual property management system. During the standardize the effective implementation of supplier development evaluation performance assessment and control management.reporting period M&G invested nearly RMB190 million in R&D and innovation accounting for 0.8% of main business revenue; R&D The Company actively manages supply chain risks by strengthening risk assessment and early warning systems implementing

personnel made up 8% of its workforce; it filed 20 invention patent applications eight of which were granted; the total number of supplier diversification strategies improving supplier introduction mechanisms enhancing the stability of strategic suppliers and

valid patents reached 1336. conducting supply chain ESG assessments and management to ensure supply chain resilience and security. At the same time

the Company continuously improves independent innovation capabilities develops raw materials and production processes with

Chemical Management proprietary intellectual property rights; enhances information sharing and collaborative cooperation with suppliers; and promotes

refined management through the implementation of MBS (M&G Business System) to improve overall supply chain efficiency. These

M&G has formulated the Chemical Management Policy in accordance with relevant national laws regulations and supervisory efforts continuously strengthen M&G’s supply chain’s advantages and competitiveness.requirements. The Company has strengthened standardized and unified management of chemical usage ensured that no

prohibited chemicals are used in product R&D and guaranteed that all procured chemicals are sourced from qualified suppliers.Employees

Key Chemical Safety Standards Referenced by M&G

Inventory of Severely Restricted Toxic Chemicals of China Labor Rights and Benefits

The Regulations of the People’s Republic of China on Administration of Controlled Chemicals - Various Monitored

Chemicals List M&G strictly complies with the Labor Law of the People’s Republic of China the Labor Contract Law of the People’s Republic of

China and other relevant laws and regulations as well as the seven core conventions ratified by China issued by the International

Request in Common Use of Security for Student’s Articles (GB 21027-2020) Labor Organization (ILO) including the Equal Remuneration Convention. The Company has developed human resources

Gel Ink Ballpoint Pens and Refills (GB/T 37853-2019) management systems such as the Employee Handbook to lawfully safeguard employees’ legal rights and interests. M&G firmly

National Safety Technical Code for Toys (GB 6675-2014) prohibits forced labor and the employment of child labor does not tolerate any unlawful infringement of employees’ legitimate rights

Requirements of Concentration Limits for Certain Restricted Substances in Electrical and Electronic Products (GB/ and benefits and forbids discrimination based on gender region ethnicity religion age pregnancy or marital status disability

T 26572-2011) or any other legally protected characteristic. It maintains zero tolerance towards harassment and violence. M&G strictly complies

Hygienic Requirements of Study Products for Myopia Prevention and Control in Children and Adolescents (GB with the Trade Union Law of the People’s Republic of China and has established open and equal consultation channels within the

China 40070-2021) Company. All employees are members of the trade union and no labor disputes occurred during the reporting period.Technical Requirements for Environmental Labeling Products Cultural Paper (HJ 410-2017)

Student Modeling Clay (T/CSSGA 1006-2018) M&G actively recruits talent through campus recruitment professional recruitment and internal referrals and offers flexible

employment opportunities such as manual workers equipment operators flip-flop workers full inspectors scanners sorters

Book Cover and Slipcase (T/CSSGA 1001-2017) and loading/unloading personnel. The Company has formulated the Recruitment Management Policy to ensure that recruitment

Children’s Acrylic Paint and Acrylic Markers (T/SLIA 0003-2024) and hiring processes are compliant fair and transparent while continuously optimizing recruitment procedures and efficiency.Exercise Books (QB/T 1437-2023) In response to possible job adjustments due to organizational restructuring the Company has established a humane employee

Fountain Pens and Nibs (GB/T 26717-2024) placement system providing either severance packages or job transfer solutions.General Safety Requirements on Food Contact Materials and Articles (GB 4806.1-2016) and other national food

safety standards M&G strictly adheres to national laws regulations and local policies in its operating locations to ensure employee compensation

Registration Evaluation Authorization and Restriction of Chemicals (REACH Regulation) exceeds the minimum wage standards. Salaries are determined based on job value capability and performance and are regularly

benchmarked against market levels to dynamically manage compensation. This ensures its compensation system remains

EU Safety of Toys - Part 3: Migration of Certain Elements (EN71-3) competitive within the industry and region.Safety of Toys - Part 9: Organic Chemical Compounds Requirements (EN71-9)

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Occupational Health and Safety

M&G enhanced the application of technical tools for M&G optimized access rights management to restrict

M&G complies with the Law of the People’s Republic of China on Work Safety the Law of the People’s Republic of China on information security by deploying threat detection and access to sensitive data ensuring secure storage and

Prevention and Control of Occupational Diseases the Regulation on Work-Related Injury Insurance and other relevant laws and defense systems to improve the identification of potential transmission of sensitive information.regulations. It has formulated and implemented systems such as the Environmental and Safety Management Operation Control threats.Procedures and the Safety Management Standards to build the QEHS management system and production safety accountability

system. The Company provides employees with safety training and work injury insurance. M&G’s occupational health and safety M&G has formulated a business continuity plan (BCP) which includes data backup system redundancy disaster recovery

management system has been certified under ISO 45001. During the reporting period no general or more serious safety incidents solutions and specific operational procedures and responsibilities. BCP simulation tests are conducted at least semi-annually. In

occurred. A total of RMB2.956 million was invested in work-related injury insurance covering 100% of employees. parallel an information security emergency plan and incident response procedures have been developed to ensure the secure

operation of information systems.In terms of privacy protection M&G strictly complies with the Law of the People’s Republic of China on the Protection of

Career Development and Training Consumer Rights and Interests and other relevant laws and regulations. The Company has issued the Personal Information

Security Protection Management Measures to properly safeguard the data of both M&G and its customers in accordance with

M&G is committed to building a fair and comprehensive promotion mechanism and a multi-level diversified training system. confidentiality arrangements and privacy protection policies ensuring the security of information. M&G openly and transparently

During the reporting period the Company’s training system covered 98% of employees with an average of 14.6 training hours per informs customers of the purpose scope method use and sharing of data collection and obtains customer consent. In the event

employee. Annual training expenditures totaled RMB2.049 million. M&G encourages and supports employees to enhance their of a customer data breach M&G promptly initiates an investigation takes control measures notifies relevant personnel and

vocational skills through training and further education. For employees in finance and auditing positions it offers reimbursements for implements remedial actions based on the investigation results to minimize the impact on customers. During the reporting period

professional certification exam fees. During the reporting period the Company supported 197 employees in obtaining certifications. M&G conducted a compliance audit on personal information protection to ensure all related work was carried out in accordance

with legal and regulatory requirements and internal management policies. M&G Colipu has obtained ISO/IEC 27701 privacy

information management system certification.Rural Revitalization and Social Contribution M&G regularly conducts information security awareness campaigns education and training and has launched an instructional

video titled M&G Employee Information Security Training. Anti-fraud awareness initiatives are also carried out including the

The Shanghai M&G Foundation (M&G Foundation) actively responds to China’s rural revitalization strategy. In light of the current development of anti-fraud training modules made available on the learning platform anti-fraud orientation sessions for new hires

fragmentation of art education resources M&G Foundation integrates social resources to launch the “Art Education Plan” program and anti-fraud email alerts.aiming to build an industry ecosystem for children’s art education in rural areas and to promote rural revitalization and improvement During the reporting period M&G did not receive any complaints related to information security or privacy protection and reported

in local aesthetic literacy through art education. During the reporting period M&G Foundation invested a total of RMB2.92 million in no incidents of data or information security breaches including customer data leakage or loss.rural revitalization. The “Art Education Plan” program was implemented in 624 rural primary schools and 36 community child service

centers offering charity art classes. The Golden Seed Plan education assistance program donated over 60000 stationery gift

packs generating more than 440000 instances of benefit. M&G’s regional channel partners actively responded to the Company’s Governance

call by organizing charitable donation events to support local educational development.Corporate Governance

Data Security and Customer Privacy Protection M&G continuously improves its corporate governance structure. The Board of Directors has established four specialized

committees: the Strategy Committee the Remuneration and Appraisal Committee the Nomination Committee and the Audit

M&G continuously improves its information security management system and has formulated multiple management policies Committee. As of the end of the reporting period the Board consisted of seven directors including three independent directors with

including the Information Security Management Manual the Information Security Policy the Information Security Management women accounting for 14% of the Board. The three independent directors have professional experience in law accounting and

Organization the System Construction Security Management Policy the Information Classification and Grading Labeling corporate management consulting and possess expertise in strategic development corporate governance and risk management

Management Policy and the Information Security Incident Management Policy. The Company has established an Information providing effective input into decision-making across various dimensions of the Company’s development. One of the independent

Security Management Working Group that is fully responsible for information and network security. Additionally an information directors has experience in the manufacturing industry.security self-inspection taskforce has been established to conduct monthly inspections address security issues and perform M&G considers multiple factors in the composition of the Board including professional experience educational and cultural

emergency drills across all business systems. M&G Alliance has passed the Level 3 certification of the Security Classified background age gender and other diversity factors to ensure the Board’s scientific decision-making capabilities. The election

Protection for Information System Registration; the membership system of Jiumu Store has also passed the Level 3 certification of of directors shall first be reviewed and approved by the Board of Directors and then submitted to the General Meeting for final

the Security Classified Protection for Information System Registration while the email system has passed Level 2 certification of approval before taking effect. Each term of office for a director is three years and directors may be re-elected upon expiration of

the same standard. their term. However the consecutive term of service for an independent director shall not exceed six years.During the reporting period M&G implemented several measures to enhance its information security capabilities: The Board of Supervisors under the authority of the General Meeting functions as a permanent oversight body independent

from the Board of Directors. It exercises supervisory authority over the Board of Directors senior management and the overall

management of the Company. As of the end of the reporting period the Board of Supervisors comprised three members: one

M&G conducted information security risk analysis M&G conducted third-party vulnerability analysis through employee representative supervisor and two external supervisors.and inspection across the Company completing an classified protection testing and third-party security

assessment that covered core business systems network scans to identify and fix vulnerabilities. Additionally M&G M&G has established a comprehensive remuneration and incentive system for all employees. For middle and senior management

architecture and data storage. Based on the findings responded to a cybersecurity vulnerability scan initiated by equity incentives are provided as part of a long-term incentive plan. The Company has linked sustainability performance to the

a formal risk evaluation was developed and a security the Cyberspace Administration of Songjiang completed all compensation of certain senior executives as part of their variable remuneration. Regarding clawback and recoupment provisions

enhancement plan was implemented. required remediation measures and submitted the report the Employee Handbook clearly states that the Company reserves the right to reclaim employee compensation due to company

as requested. property damage or loss caused by employees and rights of other recovery of payment authorized by employees. This clawback

provision also applies to senior executives.

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Risk Management and Control Business ConductM&G conducts risk management and control with the objectives of “optimizing operations preventing corruption and controlling M&G strictly complies with the Anti-Monopoly Law of the People’s Republic of China the Interim Provisions on Prohibitingrisks”. The Board of Directors is responsible for planning and establishing the risk management framework formulating risk Commercial Bribery the Law of the People’s Republic of China Against Unfair Competition and other relevant laws and regulations.management policies and related guidelines and supervising the implementation of risk management measures; the Board The Company continuously strengthens its practices in business ethics anti-bribery anti-corruption and the prevention of unfair

of Supervisors effectively supervises the establishment of internal control systems and the implementation of internal control competition. M&G has established and implemented internal policies such as the Code of Business Conduct the Supplier Code of

measures by the Board of Directors; and the management is responsible for coordinating the daily operation of internal controls Conduct the Management System Against Fraudulence and the Guidelines of Anti-Monopoly and Compliance. New employees

in the Company. In 2023 the Company established the Risk Management and Compliance Committee which operates under and those in key positions are required to sign the Letter of Commitment on Integrity and Self-Discipline. In addition all suppliers in

the leadership of the President of the Company. Members of this committee include heads of the Sustainability Office Human procurement service and engineering categories are required to sign the Transparent Procurement & Integrity Convention. During

Resources Center Audit Department Legal Affairs Department and Finance Center. The committee functions independently from the reporting period M&G had no legal cases related to commercial bribery corruption or unfair competition.business management departments to ensure the objectivity and independence of the Company’s risk management function.The Organizational Structure of M&G Risk Management and Compliance Committee Investor Communication

President M&G consistently upholds the principle of maximizing shareholder value and operates with an open and transparent philosophy

continually strengthening communication and interaction with investors while listening to diverse opinions and suggestions. The

Company has established the Investor Relations Management System to standardize related operations and built a communication

Risk Management and system to enhance the engagement with investors and potential investors through announcement disclosures performance

Compliance Committee briefings the SSE E-interactive on-site research telephone email and other channels to provide timely and effective responses to

investor inquiries.Finance Center Audit Department Legal Affairs Human Resources Sustainability Office To effectively safeguard the legal rights and interests of minority shareholders M&G assigns dedicated personnel to maintain Department Center and monitor communication platforms ensuring the smooth operation of the SSE E-interactive platform public investor email

and hotline. During the reporting period M&G responded to over 70 questions on the SSE E-interactive platform with a 100%response rate. The Company also proactively disclosed four institutional investor research summaries in the “Listed CompanyM&G has established an internal control framework and continuously refines its three lines of defense risk management system Announcements” section of the platform. M&G was honored with the 15th Tianma Award for Investor Relations Management of

which is composed of “business departments functional departments for risk management and the audit department”. During the Chinese Listed Companies during the reporting period.reporting period M&G focused on high-risk business processes and conducted pilot improvement projects in areas such as policy

development process optimization and system enhancement; the Company also assessed the internal control maturity of these

pilot projects maintaining ongoing attention to the effectiveness and progress of internal control improvements.M&G “Three Lines of Defense” Risk Management System

First

● Each business unit is the primary responsible party for internal

line of control responsible for resolving over 95% of issues

defense

Business ● Developing business process standards

units/functional ● Developing relevant processes

departments

Second ● Developing risk strategies

line of defense ● Monitoring activities and conducting inspections

Functional departments for risk ●

management (Internal Control Providing “coaching” on the internal control system

Department and Compliance ● Carrying out inspections to ensure sound internal control of

Department) high-risk businesses

● Carrying out special audits

Third line of defense ● Carrying out internal control audits

Audit Department ● Carrying out spot inspections for audits for corruption and

fraudulent incidents as a deterrent

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ESG Performance Data11 Indicator Unit 2023 2024

Percentage of personnel receiving anti-corruption training by position level

Governance Performance Non-management personnel % / 85

Management personnel % / 60

Board of Directors

Indicator Unit 2022 2023 2024 Environmental Performance

Number of directors person 7 7 7 Environmental Investment

Number of independent directors person 3 3 3

Attendance rate of directors at annual board meetings % 100 100 100 Indicator Unit 2022 2023 2024

Rate of directors by age Environmental investment RMB10000 222 239 594

Under 30 years old % 0 0 0

30-50 years old % 0 14 14 Energy13

Over 50 years old % 100 86 86

Rate of directors by gender Indicator Unit 2022 2023 2024

Male % 86 86 86 Gasoline ton 45 89 59

Female % 14 14 14 Diesel ton 485 414 418

Liquefied petroleum gas (LPG) ton / / 40

Natural gas m3 / / 189421

Business Ethics

Steam ton / / 29102

Indicator Unit 2023 2024 Purchased electricity kWh 94360791 92582027 102087954

Number of operational sites audited for business ethics number 22 22 Renewable energy consumption kWh 9114718 13222559 21603572

Rate of operational sites covered by business ethics audits % 100 100 Percentage of renewable energy usage % 8 12 17

Total energy consumption tce 13612 13873 16523

Total energy consumption intensity tce/million RMB 0.7 0.6 0.7

Anti-corruption12

GHG Emissions13

Indicator Unit 2023 2024

Number of public legal cases regarding corruption brought

against the Company or its employees case 0 0 Indicator Unit 2022 2023 2024

Total number of employees participating in anti-corruption Scope 1 GHG emissions tCO2e 2170 2115 2393

training person 2364 2868

Number of personnel receiving anti-corruption training by position level Scope 2 GHG emissions tCO2e 46668 45940 46542

Non-management personnel person / 2494 Total GHG emissions (Scope 1 and 2) tCO2e 48838 48055 48935

tCO2e/million RMB

Management personnel person / 374 GHG emission intensity revenue 2.4 2.1 2.0

11 U nless otherwise specified the scope of ESG performance data for 2024 includes M&G and its subsidiaries.

12 T he 2024 anti-corruption data covers M&G Jiumu Store More-Than-Fun and M&G Colipu. The categorization methodology was adjusted in 2024 to 13 T he 2024 energy and GHG emissions data cover M&G Stationery's Shanghai base Shanghai headquarters office building South China base North

non-management personnel and management personnel aligning with the categorization in the “Employment” section. Historical data by position level for China base Central China base Axus Stationery M&G Colipu and Jiumu Store (Company-owned stores). LPG natural gas and steam are newly

2023 is unavailable and therefore not disclosed. disclosed metrics in 2024.

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Materials14

Indicator Unit 2022 2023 2024

Indicator Unit 2022 2023 2024 Solid waste intensity ton/million RMB revenue 0.04 0.03 0.3

Total material usage ton 42401 58019 61708 Amount of recycled and reused waste19 ton / / 7303

Plastic ton 21000 23286 23648 Wastewater discharge ton 2000 1876 2413

Paper ton 18000 28877 31425

Ink ton 3401 3114 3124

Wood ton / 495 1760 Social Performance

Pencil lead ton / 2247 1751

Employment

Material usage intensity ton/million RMB revenue 2.1 2.5 2.5

Indicator Unit 2022 2023 2024

Packaging Materials Total number of employees person 5574 5839 5549

Number of employees by age

Indicator Unit 2023 2024 Under 30 years old person 1527 2080 1833

Total packaging materials15 ton 24114 24850 30–50 years old person 3642 3311 3279

Paper ton 21010 21560 Over 50 years old person 405 448 437

Plastic ton 2577 2989 Number of employees by educational background

Other16 ton 527 301 Bachelor's (college) degree or above person 3401 3621 3659

High school vocational school person 997 964 618

Water Resources17 Other person 1176 1254 1272

Number of employees by level

Indicator Unit 2022 2023 2024 Non-management personnel person / 4506 4277

Total water consumption ton 546100 570185 588923 Management personnel person / 1333 1272

Water intensity ton/million RMB revenue 27.3 24.4 24.3 Total number of employees on parental leave

20 person 30 78 142

Recycled and reused water ton 45000 49772 38851 Number of employees on parental leave by gender

Male person 7 28 62

Waste & Effluents18

Female person 23 50 80

21

Indicator Unit 2022 2023 2024 Ratio of basic salary and compensation for male employees

Total solid waste ton 728 663 8219 Basic salary % 66 66 77

Hazardous waste ton 28 29 22 Additional compensation % 34 34 23

General waste (non-hazardous) ton 700 634 8197 Ratio of basic salary and compensation for female employees

Basic salary % 77 77 82

14 T he 2024 materials data cover M&G Jiumu Store and Axus Stationery. The data of 2023 for paper total material usage and intensity were revised due Additional compensation % 23 23 18

to methodology updates.

15 T he 2024 total amount of packaging materials covers M&G Jiumu Store Axus Stationery and M&G Colipu.

16 The main other packaging materials are metal (iron boxes).

17 T he 2024 water resources data cover M&G Shanghai base Shanghai headquarters office building South China base and Axus Stationery.

18 The 2023 waste and effluents data cover M&G Shanghai base. In 2024 the South China base and the North China base are newly added to the data 19 New data for 2024. Due to the inability to trace past years' data data for 2022 and 2023 have not been disclosed in this Report.

scope. Among them due to the change of the statistical method of general waste (non-hazardous) the statistical system has been further improved. 20

Therefore the data of general waste (non-hazardous) total solid waste and solid waste intensity in 2024 have increased. The data scope for the total number of employees on parental leave in 2024 includes M&G Jiumu Store and More-Than-Fun.

21 The ratio of basic salary and compensation for male/female employees in 2024 includes data from M&G Jiumu Store and More-Than-Fun.

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Indicator Unit 2022 2023 2024 Occupational Health and Safety

25

Percentage of vacancies filled by internal candidates

%/2033

(internal recruitment)22 Indicator Unit 2022 2023 2024

New employee hire rate23 % / / 14.2 Percentage of workers covered by occupational health and

safety management system % 100 100 100

Employee turnover rate % 13.4 11.9 16.5

Fatalities caused by work-related injuries case 0 0 0

Percentage of employees covered by the trade union % 100 100 100

Rate of fatalities caused by work-related injuries % 0 0 0

Severe work-related injuries (excluding fatalities) case 0 0 0

Employee Training24 Severe work-related injury rate (excluding fatalities) % 0 0 0

Recordable work-related injuries26 case 18 21 69

Indicator Unit 2023 2024 Recordable work-related injury rate (per million working

hours) / 9.0 5.8 3.6

Percentage of employees trained by gender

Total safety training hours hour 18000 20220 25489

Male % 94 98.9

Total number of employees who received safety training person 200000 202020 230035

Female % 92 99.0

Investment in labor protection RMB10000 222 208 274

Percentage of employees trained by level

Non-management personnel % / 98.9

Products and Services

Management personnel % / 99.4

Average training hours per capita hour 11.8 14.6 Indicator Unit 2022 2023 2024

Average training hours per capita by gender Number of health and safety violations related to products

and services case 0 1 0

Male hour 13.7 16.2 Customer satisfaction by average satisfaction score score 88 83.5 92.2

Female hour 9.8 13.5 Completion rate of after-sales problem implementation27 % / / 99.8

Average training hours per capita by level

Non-management personnel hour / 13.9 Intellectual Property and Technological Innovation

Management personnel hour / 18.5

Indicator Unit 2022 2023 2024

Technological improvement innovation and R&D investment RMB10000 18355 17752 18858

Performance Assessment Number of R&D personnel person 429 503 467

Number of patent filings during the year item 275 212 290

Indicator Unit 2022 2023 2024

Number of invention patent filings28 item / / 20

Percentage of employees receiving regular performance

assessment % 100 100 100 Number of patents granted during the year item 312 148 229

Number of invention patents granted item / / 8

Number of valid patents item / 1211 1336

Cumulative patent filings item 2391 2612 2901

Cumulative patents granted item 2235 2407 2625

22 25 T he percentage of vacancies filled by internal candidates (internal recruitment) for 2024 includes data from M&G Jiumu Store and More-Than-Fun. T he data scope of occupational health and safety in 2024 includes the Shanghai base the South China Base and Axus Stationery.

23 26 N ew data for 2024. Due to the inability to trace past years' data data for 2022 and 2023 have not been disclosed in this Report. T he number of recordable work-related injuries in 2023 only includes full-time employees and in 2024 non-regular employees were also included in the

24 data statistics so the data has increased. The data scope of employee training indicators in 2023 includes M&G Jiumu Store More-Than-Fun and M&G Colipu which has been expanded in 2024 27

to also include Axus Stationery. The scope of statistics for 2024 has been changed to include non-management and management personnel aligning New data for 2024. Due to the inability to trace past years' data data for 2022 and 2023 have not been disclosed in this Report.with the categorization in the “Employment” section. However due to the inability to trace past years' data the data for 2022 and 2023 have not been 28 T he number of invention patent filings and number of invention patents granted are new data for 2024. Due to the inability to trace past years' data data

disclosed in this Report. for 2022 and 2023 have not been disclosed in this Report.

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Supply Chain Management29 Independent Assurance Statement

Indicator Unit 2022 2023 2024

CECEP (HK) Advisory Company Limited ("CECEPAC (HK)"or "We") has been engaged by Shanghai M&G Stationery Inc. ("M&G Stationery")

Number of suppliers participating in ESG audit number 70 71 85 to conduct an independent limited assurance engagement ("Assurance Engagement ") on the information and data related to sustainable

development in M&G Stationery 2024 Environmental Social and Governance Report ("ESG Report") and disclosed the results and conclusions

Percentage of key suppliers participating in ESG audit % / 100 100 of the Assurance Engagement to the intended users of the ESG Report in the form of an independent assurance statement.Number of assessed suppliers with substantial actual/ number / 6 1 CECEPAC (HK) has been engaged to assure M&G Stationery’s adherence to the four AA1000 Accountability Principles of Inclusivity Materiality potential negative impacts Responsiveness and Impact set out in the AA1000 Assurance Standard v3 ("AA1000AS v3"). CECEPAC (HK) has also been engaged to

provide limited assurance on the reliability and quality of specified performance information disclosed in the ESG Report that has been selected

in accordance with the Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial)

("Sustainability Report Guidelines") published by Shanghai Stock Exchange ("SSE").Should there be any discrepancies or differences between the Chinese and English versions of the independent assurance statement the

Charitable and Philanthropic Activities30 Chinese version shall prevail.Indicator Unit 2022 2023 2024 I. Independence and Competence

Total cash donations RMB10000 425 303 311 CECEPAC (HK) was not involved in collecting and calculating data involved in the ESG Report or in the development of the ESG Report.CECEPAC (HK)'s activities of Assurance Engagement are independent from M&G Stationery. There is no relationship between CECEPAC (HK)

Total in-kind donations RMB10000 108 305 533 and M&G Stationery beyond the contractual agreement for providing proper service of assurance.CECEPAC (HK)'s assurance team consists of professional personnel who are experienced in the industry and have received professional training

Number of participants in volunteer services person-time / 3778 4435 in sustainability-related standards such as GRI Sustainability Reporting Standards issued by Global Sustainability Standards Board AA1000AS

v3 the Sustainability Report Guidelines issued by SSE ISO 14001 ISO 9001 etc.Volunteer service hours hour / 5730 9221

CECEPAC (HK)'s assurance team has rich experience in conducting assurance and has a full understanding and practical ability of AA1000AS

v3. Meanwhile the assurance team of CECEPAC (HK) carries out assurance work on sustainable development issues in accordance with the

internal assurance protocol of CECEPAC (HK).II. M&G Stationery’s Responsibilities

M&G Stationery is responsible for the preparation and presentation of the ESG Report in accordance with the Sustainability Report Guidelines

issued by SSE. M&G Stationery is also responsible for implementing internal control procedures to ensure that contents of the ESG Report are

free from material misstatement whether due to fraud or error.III. Assurance Provider’s Responsibilities

CECEPAC (HK) is responsible for issuing an independent assurance statement according to AA1000AS v3 and the Sustainability Report

Guidelines issued by SSE to M&G Stationery. This independent assurance statement applies solely to the ESG Report in the specified scope

expresses a conclusion on the assurance work and does not serve any other intents or purposes.CECEPAC (HK) ensures that all personnel involved in assurance work meet professional qualification training and experience requirements

and are proficient in conducting Assurance Engagement. All results of assurance and certification audit are internally reviewed by senior staff to

ensure that methodologies used in the process are sufficiently stringent and transparent.IV. Scope of the Assurance Engagement

* The scope of the Assurance Engagement is limited to the data and information in the ESG Report that related to M&G Stationery and its

subsidiaries and does not include M&G Stationery’s suppliers contractors and data or information provided by other third parties;

* AA1000AS Type 2 Moderate Level of Assurance was adopted to evaluate the nature and extent of M&G Stationery’s adherence to the four

AA1000 Accountability Principles (Inclusivity Materiality Responsiveness and Impact) set out in the AA1000AS v3;

* M &G Stationery and CECEPAC (HK) reached an agreement to select the specified performance information in the ESG Report as part of the

content for Assurance Engagement. The selected specified performance information is as follows:

* N umber of valid patents * S cope 1 GHG emissions * N umber of suppliers participating in

* R ecordable work-related injury rate (per million working hours) * S cope 2 GHG emissions ESG audit

* The Assurance Engagement was with respect to information disclosed from January 01 2024 to December 31 2024 only. Any information that

falls outside this period that is disclosed in the ESG Report is not included within the scope of the Assurance Engagement. Therefore we do not

29 The data scope for supply chain management in 2024 includes M&G. express any conclusions on this information; and

30 The data scope for charitable and philanthropic activities in 2023 includes M&G Foundation M&G Colipu and Jiumu Store. In 2024 Axus Stationery was * T he scope of the Assurance Engagement is confined to the information and data provided by M&G Stationery. Any queries regarding the content

added to the scope. or related matters within this independent assurance statement should be addressed to M&G Stationery only.

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V. Methodology of the Assurance Engagement Indicator Index

CECEPAC (HK)’s Assurance Engagement was conducted at the headquarters and some of subsidiaries of M&G Stationery and the work

included:

* Evaluating the appropriateness of M&G Stationery’s stakeholder engagement process;

* Conducting on-site interviews with M&G Stationery’s employees involved in sustainability management preparation of the ESG Report and the Index of Shanghai Stock Exchange Guidelines on Sustainability Report

provision of relevant information;

* Assessing whether the reporting and management approach disclosed for the ESG Report responded to the principles of Inclusivity Materiality

Responsiveness and Impact as defined in the AA1000AS v3; Dimension Articles Topic Report Page Numbers or Notes

* Conducting sampling of evidence pertaining to the reliability and quality of the selected specified performance information;

* Recalculating the selected specified performance information; Articles 21 to 28 Response to climate change 9-12; 35-43; 74; 82; 88-89

* Assessing the degree of conformity of the ESG Report with the Sustainability Report Guidelines; and Article 30 Pollutant discharge 9-12; 73

* Performing other procedures we deemed necessary.Article 31 Waste management 9-12; 44-47; 73; 83-84

Assurance Engagement was performed and the conclusions within were based upon information and data provided to CECEPAC (HK) by M&G

Stationery and on assumptions that the information provided was complete and accurate. Article 32 Ecosystem and biodiversity protection 9-12; 47-48; 74

Environmental Environmental compliance

VI. Limitations Article 33 management 9-12; 73

Article 35 Energy utilization 9-12; 41-43; 74; 82

The absence of a significant body of established practice on which to draw to evaluate and measure non-financial information allows for different

but acceptable measures and measurement techniques and can affect comparability between entities. Article 36 Water resources utilization 9-12; 46; 83

Article 37 Circular economy 9-12; 17-23; 41-47; 73; 84

VII. Conclusions

Article 39 Rural revitalization 9-12; 70-71; 77; 87

In accordance with the principles of Inclusivity Materiality Responsiveness and Impact in the AA1000AS v3 and the specified performance

information our findings and conclusions are as follows: Article 40 Social contributions 9-12; 70-72; 77; 87

Inclusivity Article 42 Innovation-driven development 9-12; 30-31; 75; 86

M&G Stationery has identified key stakeholders and continuously communicated with key stakeholders in various way to understand their

expectations and concerns. On this basis M&G Stationery has formulated policies in consideration of key stakeholders’ expectations and Since M&G did not engage in sensitive

concerns. Our professional opinion is that M&G Stationery adheres to the principle of Inclusivity. Article 43 Ethics of science and technology fields such as life sciences or AI during the reporting period therefore this article is not

Materiality applicable

M&G Stationery has conducted a materiality assessment for the ESG Report collected the opinions of key stakeholders identified material Article 45 Supply chain security 9-12; 30-31; 54-55; 76; 87

issues through appropriate methods and presented the results of material assessment in its ESG Report. Our professional opinion is that M&G

Stationery adheres to the principle of Materiality. Social Since M&G did not have any instances

during the reporting period where accounts

Responsiveness payable (including notes payable) accounted

M&G Stationery has established relevant communication channels with its key stakeholders to collect their concerns and responded to the Article 46 Fair treatment of small and medium- for more than 50% of total assets nor any

key stakeholders on material issues related to sustainability. Our professional opinion is that M&G Stationery adheres to the principle of sized enterprises outstanding unpaid information regarding

Responsiveness. payments to small and medium-sized

enterprises (SMEs) therefore this article is

Impact not applicable

In its risk management system M&G Stationery has established a process to understand measure assess and manage impacts. M&G

Stationery carried out a regular corporate significant risk evaluation to identify and rank related risks based on their significance levels. Our Article 47 Product and service safety and quality 9-12; 17-34; 56-57; 74-76; 86

professional opinion is that M&G Stationery adheres to the principle of Impact.Article 48 Data security and customer privacy protection 9-12; 77-78

Specified Performance Information

Article 50 Employees 9-12; 59-69; 76-77; 84-86

Based on the procedures CECEPAC (HK) performed and the evidence we obtained nothing has come to our attention that causes us to believe

that the disclosures of the five selected specified performance information in the ESG Report is unreliable and unqualified or not prepared in all Article 52 Due diligence 12; 51-52; 54-55; 79; 87

material respects in accordance with the basis of reporting. Sustainable

Development- Article 53 Stakeholder communication 9-12; 15-16; 80

related Article 55 Anti-commercial bribery and anti- 9-12; 51-55; 80-82

Governance corruption

Article 56 Anti-unfair competition 9-12; 51-55; 80

March 17 2025

Hong Kong SAR China

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GRI Standards (2021) Content Index

Statement of use M&G Stationery has reported the information cited in this GRI content index for the period January 1 2024 GRI Standard Disclosure Pagesto December 31 2024 with reference to the GRI Standards.GRI 1 used GRI 1: Foundation 2021 101-1 Policies to halt and reverse biodiversity loss 47-48; 74

GRI 101: Biodiversity 2024 101-2 Management of biodiversity impacts 47-48; 74

101-4 Identification of biodiversity impacts 47-48; 74

GRI Standard Disclosure Pages

2-1 Organizational details 1-2 GRI 201: Economic

201-1 Direct economic value generated and distributed 7-8

Performance 2016 201-2 Financial implications and other risks and opportunities due to

2-2 Entities included in the organization's sustainability reporting 1-2 climate change

GRI 202: Market Presence 202-1 Ratios of standard entry level wage by gender compared to local

2-3 Reporting period frequency and contact point 1-2 2016 minimum wage 76

2-4 Restatements of information 81-87 GRI 205: Anti-corruption 205-2 Communication and training about anti-corruption policies and

2016 procedures 51-53; 55; 80

2-5 External assurance 88-89 GRI 206: Anti-competitive 206-1 Legal actions for anti-competitive behavior anti-trust and monopoly

Behavior 2016 practices 80

2-6 Activities value chain and other business relationships 7-8; 15-16

301-1 Materials used by weight or volume 83

2-7 Employees 84-85 GRI 301: Materials 2016

301-2 Recycled input materials used 44-47; 83

2-8 Workers who are not employees 54-57; 76

302-1 Energy consumption within the organization 41-42; 82

2-9 Governance structure and composition 11; 78

GRI 302: Energy 2016 302-3 Energy intensity 41; 82

2-10 Nomination and selection of the highest governance body 78

2-12 Role of the highest governance body in overseeing the management 302-4 Reduce of energy consumption 74

of impacts 3-4; 11; 78 303-1 Interactions with water as a shared resource 46; 73

2-13 Delegation of responsibility for managing impacts 11; 78

GRI 2: General Disclosures GRI 303: Water and 303-2 Management of water discharge-related impacts 73

2021 2-14 Role of the highest governance body in sustainability reporting 11 Effluents 2018 303-4 Water discharge 84

2-15 Conflicts of interest 11; 51-52

303-5 Water consumption 83

2-16 Communication of critical concerns 11

305-1 Direct (Scope 1) GHG emissions 40; 82

2-17 Collective knowledge of the highest governance body 11

305-2 Energy indirect (Scope 2) GHG emissions 40; 82

2-18 Evaluation of the performance of the highest governance body 11

GRI 305: Emissions 2016 305-3 Other indirect (Scope 3) GHG emissions 40; 82

2-19 Remuneration policies 78

305-4 GHG emissions intensity 82

2-20 Process to determine remuneration 78

305-5 Reduction of GHG emissions 35; 37; 74

2-22 Statement on sustainable development strategy 9-10

306-1 Waste generation and significant waste-related impacts 44-46; 73

2-23 Policy commitments 15-16; 51-52; 66-68; 76; 80

306-2 Management of significant waste-related impacts 44-46; 73

2-24 Embedding policy commitments 11; 51-53; 80

GRI 306: Waste 2020 306-3 Waste generated 83-84

2-27 Compliance with laws and regulations 73-80

306-4 Waste diverted from disposal 84

2-28 Membership associations 58

2-29 Approach to stakeholder engagement 15-16 306-5 Waste directed to disposal 83-84

3-1 Process to determine material topics 13-14 GRI 308: Supplier 308-1 New suppliers that were screened using environmental criteria 54-55; 76

Environmental Assessment 308-2 Negative environmental impacts in the supply chain and actions

GRI 3: Material Topics 2021 3-2 List of material topics 14 2016 taken 54-55; 76

3-3 Management of material topics 13-14; 17-80 GRI 401: Employment 2016 401-1 New employee hires and employee turnover 85

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GRI Standard Disclosure Pages

401-2 Benefits provided to full-time employees that are not provided to

GRI 401: Employment 2016 temporary or part-time employees

401-3 Parental leave 84

403-1 Occupational health and safety management system 61-62; 77

403-2 Hazard identification risk assessment and incident investigation 61-62; 77

403-3 Occupational health services 61-62; 77

403-5 Worker training on occupational health and safety 61-62; 77

GRI 403: Occupational 403-6 Promotion of worker health 61-62; 67; 77

Health and Safety 2018

403-7 Prevention and mitigation of occupational health and safety

impacts directly linked by business relationships 61-62; 77

403-8 Workers covered by an occupational health and safety

management system 86

403-9 Work-related injuries 86

403-10 Work-related ill health 62; 86

404-1 Average hours of training per year per employee 85

GRI 404: Training and 404-2 Programs for upgrading employee skills and transition assistance

programs 63-66; 77Education 2016

404-3 Percentage of employees receiving regular performance and

career development reviews 85

GRI 405: Diversity and 405-1 Diversity of governance bodies and employees 68

Equal Opportunity2016 405-2 Ratio of basic salary and remuneration of women to men 84

GRI 413: Local 413-1 Operations with local community engagement impact

Communities 2016 assessments and development programs 70-72; 77

GRI 414: Supplier Social 414-1 New suppliers that were screened using social criteria 54-55; 76

Assessment 2016 414-2 Negative social impacts in the supply chain and actions taken 54-55; 76

416-1 Assessment of the health and safety impacts of product and

GRI 416: Customer Health service categories 27-28; 74

and Safety 2016 416-2 Incidents of non-compliance concerning the health and safety

impacts of products and services 74; 86

GRI 417: Marketing and

Labeling 2016 417-1 Requirements for product and service information and labeling 26-27; 32-34; 74-76

GRI 418: Customer Privacy 418-1 Substantiated complaints concerning breaches of customer privacy

2016 and losses of customer data 77-78

9394