Land for the He Yang plant was acquired by the company from the industrial park authorities between 2013-15 with no known issues related to involuntary resettlement and economic displacement of local communities, and the He Yang plant footprint is not located within areas inhabited by indigenous peoples communities, or within sensitive biodiversity sites and areas, and there are no known presence of cultural heritage or artefacts impacted by the project. As such, PS5 (Land Acquisition and Involuntary Resettlement), PS6 (Biodiversity Conservation and Sustainable Natural Resource Management), PS7 (Indigenous Peoples), and PS8 (Cultural Heritage) are not triggered for this project.

Yuwell employs more than 5,000 employees including at its facilities and at headquarters comprising about 55% male and 45% female, which reflect the ratio of available talents in the sector and the nature of work. All the employees are directly employed by the Group and currently there are no third-party workers except a very small number of security guards and cleaners. At the two Danyang plants, the company employs around 2,200 workers. After the project is operational, the company expects to hire an additional 1,000 employees.

Yuwell has corporate HR policies and procedures in place which are consistent with local labor laws and IFC PS2 requirements; and these are applied to all employees, and include requirements and provisions on working conditions, compensation and benefit policy, etc. Each worker receives a written contract that describes the working conditions and terms of employment, and an employee handbook is also provided. Overtime work is electronically monitored and does not exceed 36 hours per month per worker as per national regulations. All employees are enrolled in the mandatory social insurance scheme. The company mainly hires local employees and provides accommodation with modern amenities for  a few and key employees in cases where they could not find local rental housing. Yuwell also provides annual health check-ups for all employees.

The company, in its day-to-day communications with and ongoing training for all staff members, emphasizes norms of ethical behaviors expected including a focus on non-discrimination, zero-tolerance for harassment in the workplace, and equal opportunity. Child and forced labor practices are strictly prohibited in line with Chinese labor law. No pregnancy tests are required when hiring.

A labor union is in place and most employees have voluntarily joined the union. The company holds regular meetings with union representatives and the union acts as an important channel for the voicing of employee grievances to management. There are no disputes with the labor union and no major grievances to date. The Group has set up a three-level staff grievance procedure (direct supervisor, department head and complaint investigation team) to handle anonymous and non-anonymous grievances. Anonymous grievances can be directly lodged with the CEO’s office.

While operations at Yuwell present limited OHS risks to the workers, the company has documented OHS management system and procedures applicable to each plant. Training on OHS are provided to all employees which address topics such as: safety operation precautions, escape evacuation drills, fire-fighting drills, safety management of hazardous chemicals, personal and property safety, etc. All workers including new employees are required to have initial safety training prior to starting work and refresher training are regularly conducted.

Yuwell completed an OHS risk assessment and review its safety provisions as part of the management programs to reduce OHS risks through continuous improvement and awareness improvement training. No major accidents or fatalities are reported by any of the facilities in the past few years. Workplace noise and air quality monitoring records are well within the applicable standards.

During the COVID-19 pandemic, the company has not and does not have any future plans to lay off any workers, and there have been no salary cuts or no-pay-leave arrangements.  The company has implemented several COVID-19 response measures for its operations including: health declaration, temperature checks, regular cleaning and disinfection, etc.

Construction safety, health safety, and L&FS training are provided by the quality assurance & equipment sub-departments under the operations department to all construction workers. The Infrastructure and Construction Department controls and oversees all construction projects including OHS compliance. The Administration Department reviews and monitors the qualifications of all subcontractors in accordance with national labor regulations. The COVID-19 response measures are also applied to construction sites. The company did not suspend or cancel construction contracts due to the COVID-19 pandemic.

The company’s production process primary involves assembly of medical equipment (electronics and mechanical) and does not result in significant quantities of wastes and emissions.

Electricity is sourced from the national grid for all facilities, and no major air pollutants arise from the company’s operations. A steam boiler (6 ton/hour capacity) installed at the He Yang plant produces steam for non-production use (e.g. heating/warming) and the use of natural gas as fuel leads to very limited sulphur content in boiler stack air emissions, with nitrous oxides and particulate matter treated by appropriate installed technologies in line with national requirements. Yuwell monitors emissions and ambient air quality at plant boundaries on a monthly basis. The emission monitoring reports indicate compliance with applicable legal requirements.

The company uses R134a for 12 chillers at its He Yang plant and currently utilizes R22 for commercial refrigerators. As part of ESAP, the company will ensure that all new facilities do not utilize R22 or other refrigerants that have been phased out, and for existing facilities the company will explore technically and financially feasible options to switch from R22 to another refrigerant with a much lower global warming potential e.g., HFC134a or R404.

Water for all the facilities are sourced from the local utility supply company. After in-situ waste water treatment, 90% of the waste water is re-used within the facility mainly for gardening, landscaping and in cooling towers and the other 10% (including sanitary waste water - after in-situ treatment) is discharged to the municipal sewer which goes to the industrial park waste water treatment plant for secondary treatment. While no major effluent is generated from operations, at the He Yang plant, the company has an on-site effluent treatment plant (5,750 tons annual capacity) which comprises several stages: sedimentation, chemical treatment, aerobic and anaerobic biological treatment and secondary sedimentation as per the environmental permit condition. A small amount of sludge is produced from the treatment systems, which is removed regularly and collected by licensed companies. All monitoring results were noted to comply with the national emission standards and environmental permit conditions.

Yuwell closely monitors resource consumption i.e., water consumption, gas, electricity and chemicals. Each facility tracks electricity usage and looks for opportunities to achieve a reduction. The current GHG emission from operations at the He Yang plant is estimated to be about 20,000 tons CO2 equivalent per annum. After the project becomes operational, the annual GHG emissions are not expected to exceed 20,000 tons CO2 equivalent.

Yuwell has hazardous and non-hazardous waste management procedures including a system of appropriate sorting, handling, storage and disposal which are consistent with applicable legal requirements. All hazardous and non-hazardous wastes are collected for disposal by authorized public service agencies specialized in each type of waste. At the Heyang plant, all hazardous materials are properly labelled and stored in the designated class-A storage building. Inflammable and explosive materials are evaluated and detailed control documents and material safety data sheets (MSDS) prepared. There is no fuel storage at the sites.

As per local regulatory requirements, all Yuwell plants, during EIA preparations, duly undertake public consultation to solicit and document potential stakeholder opinions about draft EIA reports and proposed environmental mitigations. Yuwell plans to commission its first annual Corporate Social Responsibility report in the future. No major EHS related complaints have been received to date at any Yuwell plants. Local communities and other stakeholders can lodge grievances, if any, through a hotline set up by the company, or directly to relevant city government organizations in Danyang. As part of an ESAP action, the company will reinforce its existing stakeholder communication practices by putting in place a formal stakeholder grievance mechanism.

Jiangsu Yuyue Medical Equipment & Supply Co., Ltd

Ms. Yesheng Tang (Emily), Project Manager

Telephone: +86-18105159806

Email: tang.ys@yuyue.com.cn

Address: He Yang Industrial Park, Danyang, Jiangsu Province, PR China.

Website: https://yuwell.com/index_en.php