While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards: - PS1: Social and Environmental Assessment and Management System - PS2: Labor and Working Conditions - PS3: Pollution Prevention and Abatement Issues associated with the following PS was not encountered during the assessment of the project: PS4: No evidence of adverse impact to Community Health Safety and Security were observed from Universtar's operations. PS5: Existing Universtar Group offices and facilities are located in leased space in commercial buildings that are primarily used for offices. PS6: No negative impact to biodiversity or conservation. PS7: No Indigenous People are known to have been in the area or affected by the project; PS8: No evidence of the presence or impact to issues associated with Cultural Heritage. Because this investment will be used to support future, but as yet, undefined projects in addition to existing projects, the principal Performance Standards to be applied to this investment are those listed above. A condition of IFC’s investment going forward will be that any and all projects undertaken shall consider all relevant social and environmental risks and impacts, including the issues identified in PS1 through PS8, in its operations as well as while assessing any new business opportunities or service models.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because it may create a limited number of specific environmental and social impacts that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. Key environmental, health and safety, human resources and social issues that were reviewed included: environmental and social management system (scope and implementation); quality and sustainability of water resources; emissions to the environment – air, water and subsurface; solid, and hazardous waste and materials management, including transportation; life and fire safety; community and occupational health and safety; energy use and efficiency; community engagement; cultural heritage and land acquisition. Emission monitoring services provided by Universtar help in environmental protection and enhancing public perception of such.

Key environmental and social issues associated with Universtar’s activities in the on line environmental monitoring business are summarized below. Environmental, social and health and safety issues that require ameliorative measures are included in the Environmental and Social Action Plan (ESAP) and will be addressed by the Company as agreed in IFC’s investment documents and any associated agreements. Social and Environmental Assessment and Management Systems: Universtar has certified management systems for Quality Assurance (ISO 9001), Environment Systems (ISO 14001), Information Safety (ISO 27001), Analytical Measurement (ISO 10012) and Safety (GB/T28001, China). The Company’s management program includes operational policies and procedures that are implemented at the provincial level by supervisors who report to management periodically. Policies and procedures comply with applicable local regulatory requirements for operation of these facilities including those for human resources and labor, occupational health and safety, and environmental compliance. As part of the agreed Environmental and Social Action Plan (ESAP), to further enhance its environmental management system, Universtar will extend its existing system to provide consistent oversight of environmental, social and health and safety for all its distributed operations, sub-contractors, as well as in screening of new business opportunities or service models in expanding its business. Universtar will formally designate a qualified individual in the senior management of the Company to ensure continued compliance with Company's policies and procedures, IFC and regulatory requirements, and consistency with good international industry practice for ESHS performance. Human resources are managed at the corporate level with oversight of all the Universtar's facilities and operations. Training of staff is done on a routine basis in compliance with local workplace regulations. The department of human resources is responsible to ensure that all employees are adequately trained to perform their work safely. Supervisors monitor that standards are met and any reportable incidents are reported and follow up action taken when required. Training, monitoring and reporting framework is in compliance with Chinese requirements, and largely consistent with IFC requirements. Areas of improvement are noted in the section below, and include issues associated with monitoring labor and working conditions. Labor and Working Conditions: Universtar has a Human Resources Policy that complies with local and national regulatory requirements. As required by law, the policy is included in employment contracts and addresses working conditions, terms of employment and wages and benefits. This information is provided in the form of an employee handbook at the time of induction. As is common practice in China, although not explicitly stated, employment relationships recognize the principals of non-discrimination, equal opportunity and grievance procedures. Although the work force at Universtar is not unionized, employees at Universtar have the right to be part of a trade union. As agreed in the ESAP, the Company will review its policies and employment contracts for compliance with applicable regulatory requirements and consistency with international best practice on working and living conditions, non-discrimination, grievance procedures and adequacy of worker accommodation. Universtar employs 610 direct and a small number of subcontracted or outsourced employees to support its operations on an as needed basis. Employees typically have a 40-hour work week, and any overtime is paid to employees as per local regulatory requirements, with maximum overtime of less than 36 hours per month. . Wages are paid on a monthly basis and calculated with basis on the hours worked, inclusive of any overtime. At some centralized monitoring stations, Universtar requires employees to live in dormitories provided by the Company. Universtar will review its policy governing employment contracts and update as needed to ensure compliance with applicable regulatory and IFC requirements, including conformance with requirements for non-discrimination and living conditions. The minimum employment age at Universtar is 18 years. Universtar ensures that child labor or forced labor is not employed directly or by subcontractors through verification of relevant documents. Subcontractors are expected to comply with all local labor requirements specified in contractual arrangements. Occupational health and safety of employees at Universtar is managed by the office of the Vice President for environment and corporate governance, with some oversight provided by the department of Human Resources and Administration. There is a plan for accident prevention and worker safety consistent with local regulatory requirements. All employees in the company have to undergo a training program at induction and subsequently undertake worker health and safety relevant to their job activity. Facilities are audited yearly by regulatory agencies to monitor compliance with labor regulations. The Company has been in compliance with regulatory requirements and has recorded no significant lost time incidents or fatalities in its operational history. Although Universtar is in compliance with applicable regulatory requirements, there is variance between the Company’s regulatory obligations when compared to IFC Performance Standard 2 and Guidelines on Occupational Health and Safety (OHS). As part of the agreed ESAP, Universtar will retain an external occupational health and safety consultant to review and develop an implementation plan to achieve internationally acceptable standards for OHS for its employees and sub-contractors. The scope of review will include safety of equipment manufactured or integrated by Universtar for use in China or elsewhere. The Company will take corrective measures to enhance its training programs, and implement standard operating procedures that specifically seek to mitigate OHS risks at its system integration/manufacturing facilities as well as distributed monitoring sites. It is anticipated that the Company's occupational health and safety performance will achieve consistency with applicable IFC policies and guidelines for the sector only after recommendations from the external consultant are implemented. Pollution Prevention and Abatement Limited quantities of emissions are generated from Universtar’s operation of online monitoring facilities, and primarily include small amounts of waste reagents from analytical instruments at various monitoring locations. These wastes are designated as hazardous and collected periodically for disposal in government owned and operated facilities. Small quantities of solid waste such as spent motor oils, cutting fluids, wire trimmings and scrap metal from workshops, and typical office waste such as paper and cardboard are also generated. Waste is segregated, and recycled when appropriate by licensed vendors. Electricity is obtained from the national grid and annual consumption by the Company is estimated to be less than 1 MWh. Water is obtained from the local municipal supply and usage is estimated to be less than 10,000 cubic meters per year.

No local communities have been significantly affected by Universtar’s ongoing operations, none of which are located in close proximity to identifiable communities with potential for impact. The company’s operations generate local employment opportunities and do not have adverse impacts on the communities. The Company has not been the subject of any public complaints or litigation related to its environmental or social performance. In China, dialogue and communication with potentially affected communities including public consultation and disclosure of environmental and social impact assessment occurs through procedures established by PRC regulations. As a result, no formal information dissemination activities have been undertaken by the Company so far. Notwithstanding, as part of its environmental and social management program, Universtar will establish methods for communicating relevant environmental and social aspects to external interested parties and maintain procedures for receiving, documenting and responding to concerns from any external interested parties relating to the project. Specific procedures will be developed to incorporate community engagement, including clear procedure on disclosure and consultation with potentially affected communities. For more information see the company’s website at http://www.szusst.cn or contact: Jin Tian Vice General Manager Address: 3 & 4 /F, Building B, Tsinghua Information Port, High-Tech Industrial Park, Shenzhen City, P.R. China Tel: +86 755 2603 0926 Fax: +86 755 2603 0929 E-Mail: jint@szusst.cn

A Chinese-language copy of the Environmental and Social Review Summary (ESRS) and associated Environmental and Social Action Plan (ESAP) will be made available at the corporate offices in Shenzhen, as we all as publicly accessible municipal offices in provinces where Universtar has contracts for providing monitoring services. An announcement informing the public of its availability and location for review and comment will also be placed in a local newspaper at each of these provinces.