WuXi Biologics Cayman : 2021 ESG Report

Contents

02 A Message from Our CEO

• 04 About the Report

• 06 2021 Highlights

• 08 Company Overview

Enhancing Governance

20 Corporate Governance

24Operational Compliance

33RiskManagement

34Enabling Clients

42SustainableSupplyChain

Giving Back toSociety

50 People Development

60OccupationalHealthandSafety

64Community

Greening Our Business

72Environmental Management

74Energy Conservation and GHG Emissions Reduction

82Resource Management

85 Controlling Emissions and Waste

Appendix

88 Key Performance Indicators

92 List of Laws and Regulations

94 HKEX Index

99 UN Sustainable Development Goals Index

102 GRI Standards (Core Standards) Index

113 SASB Index

WuXi Biologics (Cayman) Inc. 2021 Environmental, Social and Governance Report

A Message from Our CEO

The year 2021 marked the tenth anniversary of WuXi Biologics. We have long integrated environmental, social, and governance (ESG) criteria into our daily business activities. Now we have an ESG committee and a dedicated function, all tasked with optimizing our ESG management and performance. We have upgraded our ESG strategy by aligning with the United Nations' Sustainable Development Goals (SDGs), and we have established effective and transparent communications with stakeholders - identifying and collaboratively pursuing our common goals for over 20 important ESG issues. An evaluation system constantly monitors our ESG performance to ensure that we honor our commitments.

The occupational safety of staff is paramount. In 2021, we conducted more than 100 safety and health training sessions, to enhance our people's health and safety awareness, and ensure our production and operation activities comply with laws and regulations.

We are committed to building a sustainable supply chain and applying our high standards of business ethics to suppliers. Guidelines for suppliers include our values, as well as social and environmental responsibilities, and we will continue to strengthen our guidance and supervision of the supply chain.

Echoing the global call for action on climate change, WuXi Biologics conducted risk identification and analysis in line with the Task Force on Climate-Related Financial Disclosures (TCFD). In 2021, we set a medium-to long-term greenhouse gas (GHG) emissions target to reduce Scope 1 and 2 carbon emissions intensity by 50% from the 2020 level by 2030.

In 2021, we were recognized as an ESG Industry Top-Rated Company by Sustainalytics, were cited for 'Best ESG' by Institutional Investor, and earned the Excellence in Corporate Governance Award from the Chamber of Hong Kong Listed Companies.

Over the past decade, WuXi Biologics is proud to have grown into a leading global Contract Research, Development, and Manufacturing Organization (CRDMO). Our advanced, integrated biologics platform provides clients with end-to-end services - enabling them to discover, develop, and manufacture biologics, and accelerating their efforts to bring lifesaving drugs to patients around the world.

Since the pandemic outbreak in 2020, our leading technologies, best-in-class quality, and sound operational support have enabled close to 30 Investigational New Drug Applications (INDs) for COVID-19 drugs and vaccines. By the end of 2021, we had delivered more than 1,500 kg of neutralizing antibodies and hundreds of millions of vaccine doses. It was our robust business continuity management and multiple sourcing strategies throughout the pandemic that allowed us to make these significant contributions to global public health.

Innovation is our driving force. Over the past decade, WuXi Biologics has developed multiple novel technology platforms. These cover the entire spectrum of biologics development from concept to commercial manufacturing. Our large and diverse portfolio includes monoclonal antibodies, bispecific antibodies, multi-specific antibodies, antibody drug conjugates (ADCs), fusion proteins, and vaccines. We were named winner of the APAC Bioprocessing Excellence by the market intelligence company IMAPAC. By the end of 2021, we had manufactured more than 1,700 batches of drug substance, at an outstanding 98% success rate.

A concrete action plan to increase investment in the management of energy and emissions was established. As part of that plan, we invited an independent and accredited professional agency to conduct a comprehensive GHG emissions audit based on the ISO 14064 standard. The results showed an 8% year-on-year decrease in GHG emissions intensity. And thanks to our large-scale adoption of environmentally friendly single-use technology, we saved approximately 70% of water and 30% of energy compared to traditional stainless-steel manufacturing technologies and operations. Our water consumption intensity decreased by 13% year on year, and our energy efficiency has improved for three consecutive years.

WuXi Biologics is committed to providing equal opportunities to all employees and to fostering a culture of diversity, equity, and inclusion (DEI). Of our 10,000+ employees, more than 53% are women, and we honor their significant contributions to the fields of science, technology, engineering, and mathematics (STEM). The Women in STEM Committee at our Ireland site reflects our ongoing effort to the professional development of our female colleagues.

WuXi Biologics has over 650 PhDs and one of the world's largest biologics R&D teams, comprising 3,285 R&D professionals. In 2021, we launched a Global Partner Program to attract and retain exceptional talent.

Since its founding, WuXi Biologics has consistently practiced social responsibility and encouraged staff to give back to communities. In 2021, staff from four countries and nine cities contributed a total of 3,192 hours to volunteer initiatives, covering public health, environmental protection, and youth education. In July 2021, in the wake of the Henan flood disaster, WuXi Biologics and its Charity Foundation immediately donated RMB 10 million for disaster relief and provided financial support for impacted staff.

Quality is a hallmark of WuXi Biologics. Evidence to our unwavering commitment to quality is demonstrated by passing 22 inspections by global drug regulatory agencies, including the U.S. Food and Drug Administration (FDA), the European Medicines Agency (EMA), and the National Medical Products Administration of China (NMPA) by the end of 2021.

Going forward, as a global leading CRDMO company, WuXi Biologics will continue to refine its corporate governance, drive innovation, enhance green operations, and actively fulfill its social responsibilities. And, acting on the United Nations SDGs, we will make unstinting efforts to improve human health and well-being.

Compliance is a cornerstone of our business. In 2021, all staff undertook compliance training, with a 100% participation and pass rate. We place particular emphasis on information security and business intelligence protection. In 2021, we organized multiple training courses for all personnel categories, optimized our IT security, and completed the ISO 27001 certification.

On behalf of WuXi Biologics, I give thanks to our global clients for their trust, to our investors for their recognition, to our business partners for their support and, of course, to all WuXi Biologics associates for their dedication and contributions.

Operational excellence continues to be our priority. We earn our clients' trust with our flexibility, speed, innovation, high quality, flawless compliance, intellectual property protection, information security, and adherence to environmental health and safety guidelines. In 2021, WuXi Biologics received Life Science Leader "CMO Leadership Awards" for the fifth year in a row. And we had more than 470 global partners - including the world's top 20 large pharmaceutical companies.

Dr. Chris Chen Chief Executive Officer

About The Report

Reporting Scope and Limits

Sources and Reliability

The Scope of the Environmental, Social and Governance Report (the present report) is consistent with the Company's annual report. In view of the importance of our business' s impact on the environment, the scope of our environmental data includes all operating sites owned and managed by WuXi Biologics (Cayman) Inc1. This includes Wuxi Mashan Site, Wuxi New District Site (Phase I), Shanghai Waigaoqiao Site, Shanghai Fengxian Site (Phase I), and Suzhou Biosafety Testing Site.

Reporting Period

This report covers the period from January 1, 2021 to December 31, 2021. To complete the comprehensive suite of data contained in this report, some content considers previous years or extends to the first quarter of 2022.

Reporting Standards

This report is compiled based on the Environmental, Social and Governance Reporting Guide, Appendix 27 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited; the Global Commission on Sustainability Standards (GSSB) GRI Standards; and the Sustainable Development Accounting Standards Board Foundation (SASB) Accounting Standards for Sustainable Development - Biotechnology and Pharmaceutical Industries.

Indicators Selection

The indicators in the report were selected and elaborated on following the principles of "materiality, quantitative measurement, balance, and consistency" as described further below, to disclose performance of the material issues. Continuous updates and optimization of the disclosure indicators will be provided in subsequent reports.

Materiality: WuXi Biologics uses the stakeholder engagement mechanism and materiality assessment matrix to identify corporate and social responsibility issues that are material or relevant to the company and its stakeholders.

Quantitative Measurement: WuXi Biologics embodies the quantitative principle by disclosing measurable key performance indicators.

Balance: WuXi Biologics presents its work in the environmental, social and governance aspects in a fair and objective manner in this report.

Consistency: WuXi Biologics has adopted a consistent approach to data disclosure and data comparison across time periods covered by the report, and has noted the changes in statistical methods and key performance indicators.

Explanation of Terms

For clarity of presentation and ease of reading, "WuXi Biologics (Cayman) Inc." is also referred to in this Report as "WuXi Biologics," "the company" or "we."

1

All operating sites refer to all the sites put into operation before June 30, 2021, so that comprehensive and valid data can be measured.

The qualitative and quantitative information used in this report comes from WuXi Biologics' publicly available information, internal documents and related statistical data. The company's board of directors guarantees that this report is free from any misrepresentation or misleading statements, and is responsible for the truthfulness, accuracy and completeness of its contents.

Confirmation and Approval

This report was approved by the Board of Directors on March 22, 2022, following confirmation by management.

Report Access

The online version of this report is available for download on the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and that of WuXi Biologics (www. wuxibiologics.com).

2021 HighlightsEnabling Clients

Greening Our Business

470+

Global Partners

50%

Reduction target in GHG emissions intensity by 2030

480

Integrated Projects

18%

Reduction target in water consumption intensity by 2025

88.52%

Customer Satisfaction Rate

70%

Reduction in water consumption by using SUT technology

22

Inspections completed by global regulatory agencies2

100%

Compliant Solid Waste and Wasterwater Treatment

98%

Success rate of 1,700 batches of drug substance produced3

• 2 As of December 31, 2021, WuXi Biologics completed 22 inspections by global drug regulatory agencies.

• 3 As of December 31, 2021, WuXi Biologics completed more than 1,700 batches of drug substance manufacturing, at an outstanding 98% success rate.

ISO 14064

GHG Emissions Verification

4

As of December 31, 2021, WuXi Biologics had 9,864 employees. As of today, WuXi Biologics has over 10,000 employees.

Company Overview

Introduction

WuXi Biologics is a global Contract Research, Development, and Manufacturing Organization (CRDMO). Through our open-access and integrated biologics platform, the company provides a full range of end-to-end solutions to enable our global partners to discover, develop and manufacture biologics from concept to commercialization, accelerating the global biologics research and development (R&D) process, reducing R&D and manufacturing costs, and benefiting patients worldwide.

An Unparalleled One-Stop Biologics R&D Platform

Novel

Discovery

Lead

Research

Cell Line

DMPK/

Upstream

Downstream

Research

Assay &

Cell Banking/

Viral

Clinical &

mAb

Biology/Drug

Candidate

Material

Engineering/

Toxicology

Process

Process

Manufacturing

Formulation/

Cell Line

Clearance

Bioanalytical

Discovery

Screening

Selection

Generation

Construction

Dev.

Dev.

Dev.

Characterization

Validation

Testing

cGMP DS cGMP DP Manufacturing Manufacturing

DiscoveryDevelopability AssessmentPreclinical/DevelopmentClinical/Commercial

Lot Release/ Stability Testing

The strength of the WuXi Biologics' "Follow and Win the Molecule" business strategy continues to increase the number of projects in the pipeline. As of December 31, 2021, there were a record 480 integrated projects throughout the drug development continuum at WuXi Biologics.

480	2021 was a banner year for WuXi Biologics' commercial
manufacturing business. In 2021, the company added
Integrated Projects	seven new commercial manufacturing projects, for a total
of nine - of which four are COVID-19 projects and five
are non-COVID-19 projects, making our commercialization
project pipeline more diversified. In 2021, the number of
9 Commercial	clinical Phase III projects reached 32. It is expected that
more projects will enter commercial manufacturing phase
Manufacturing
in the future, resulting in consistent revenue growth.
Projects
WuXi Biologics employs a Global Dual Sourcing
manufacturing strategy through its worldwide facilities
in China, Germany, Ireland and the United States. In
Global Dual	2021, to further consolidate its global manufacturing
network, WuXi Biologics completed three acquisitions and
Sourcing	successfully integrated these new operations, including a
Drug Substance (DS) facility in Wuppertal, Germany from
Manufacturing	Bayer; DS and Drug Product (DP) facilities in Hangzhou
from Pfizer China; and CMAB, a full-service Contract
Strategy	Development and Manufacturing Organization (CDMO)
in China. After 2024, to effectively meet the rapidly
growing needs of our global partners, the total planned
biomanufacturing capacity of WuXi Biologics is estimated
to exceed 430,000 liters.

As of December 31, 2021, WuXi Biologics completed 22 inspections from global drug regulatory agencies, including the US Food and Drug Administration (FDA), the European Medicines Agency (EMA), and the Chinese National Medical Products Administration (NMPA). Out of these, as many as 16 were conducted in 2021 alone, fully verifying the high-quality standards and systems built by WuXi Biologics over the past years and laying a solid foundation for establishing more global partnerships in the future.

WuXi Biologics continues to cultivate innovative technologies, many of which are reinforced through independent intellectual property rights. For instance, in the first half of 2021, we successfully launched the new SDArBodY™ multi-specific/multifunctional antibody technology platform, which features highly flexible engineering and generation of multi-specific antibodies exhibiting high-affinities, and excellent developability and low immunogenicity risk profiles. These new therapeutic modalities, will meet the diverse needs of clients around the world as they develop the next-generation of biotherapeutics.

Completed 22 Inspections by Global Drug Regulatory Agencies