On March 23, MSCI (Morgan Stanley Capital International), an internationally authoritative index provider, released its latest Environmental, Social, and Governance (ESG) rating results. Leveraging its outstanding practices in the ESG field, Sino Biopharm (1177.HK) achieved a breakthrough leap from an A to an AA rating in just two years, a pace of advancement far exceeding the industry average. 

 

MSCI is the most influential and widely recognized ESG rating index in global capital markets. Its rating system covers over 17,000 listed entities worldwide and serves not only as a core value judgment basis for investment decisions by mainstream international institutional investors but also as the most authoritative benchmark for measuring a company's sustainable development quality, long-term value creation, and risk management capabilities. 

 

 

Since 2021, Sino Biopharm has formulated a three-year ESG development plan, establishing a scientific planning system that fosters mutual reinforcement between long-term and short-term plans, and ensures coordination between comprehensive and thematic initiatives, systematically guiding the high-quality implementation of ESG practices.In fiscal year 2024, the Group's First Three-year ESG Plan was completed with high quality, achieving core objectives such as a sound and complete ESG system and mechanism, comprehensive control of key risks, and industry-leading governance levels in key areas. In 2025, the Second Three-year ESG Plan has entered the full implementation stage, aiming to pioneer multiple innovative special actions within the Chinese pharmaceutical industry and establish a leading benchmark for sustainable development in the sector. 

 

 

At the ESG governance level, Sino Biopharm has built and continuously improved a governance structure with the Board of Directors as the highest decision-making body. It has established a CARE-centric ESG strategy, systematically carrying out special practices around the four dimensions of Cure, Accessible, Relationship, and Environmental to effectively promote the deep integration of sustainable development concepts with corporate decision-making and business operations. Meanwhile, the Group actively embraces artificial intelligence, leveraging full-domain AI integration to support scientific decision-making and continuous industrial upgrading, while prudently guarding against risks. 

 

In the area of environmental friendliness, Sino Biopharm actively responds to the national 30·60 dual carbon goals. It was the first in the Chinese pharmaceutical industry to release a carbon neutrality target plan, and the emission intensity of several major pollutants has continuously decreased by more than 10% for five consecutive years. In March 2026, the 15th Five-Year Plan Outline proposed the full implementation of a dual control system for total carbon emissions and intensity. In 2025, Sino Biopharm achieved a simultaneous reduction in both total carbon emissions and intensity for the first time, contributing its strength to helping achieve the goal of carbon peaking. To date, three member companies of Sino Biopharm have been awarded the national Green Factory title, and their green and sustainable development practices have gained wide recognition. 

 

 

 

 

In the area of social responsibility, Sino Biopharm earnestly practices the philosophy of Healthtech for a Warmer World, continuously providing society with higher-quality and more affordable medical resources to address unmet clinical needs. In the past three years, Sino Biopharm's R&D expenses have accumulated to over RMB 13 billion and have continued to climb at an annual rate of over 15% year-on-year. Meanwhile, the Group has engaged in extensive collaborations with over 30 biotechs, biopharmas, and MNCs, contributing China's strength to global health through a strategy of Bringing in and Going Global. 

 

At the beginning of 2026, Sino Biopharm's licensing of the rare disease treatment drug Rofecitinib with Sanofi shattered the perception that niche therapeutic areas are unlikely to yield blockbuster drugs, further promoting the global benefit of high-quality medical achievements. In the past three years, Sino Biopharm's key products have served over 160 million patient-times, and another 13 rare disease drugs are in the clinical stage or beyond.

 

 
Furthermore, Sino Biopharm places great importance on talent echelon construction and development, systematically carrying out an Employee Assistance Program (EAP) and special talent culture initiatives centered on its talent development strategy to promote the mutual growth of the company and its employees. While continuously enhancing its own sustainable development capabilities, it actively engages in charitable and public welfare undertakings. In November 2025, a sudden fire in Tai Po, Hong Kong, drew national concern. Sino Biopharm immediately donated RMB 10 million in cash and medicines for the emergency resettlement and transitional living support of the affected compatriots. Focusing on areas such as disaster relief, rural revitalization, and inclusive healthcare, the Group has donated a total of over RMB 150 million in the past three years, giving back to society through practical actions. 

 

 

 

 

 

As one of China's largest prescription drug companies, Sino Biopharm has always actively practiced its ESG philosophy. In addition to the recent MSCI rating upgrade, it was the only pharmaceutical company selected for the main list of Forbes China's 2024-2025 Sustainable Development Industrial Enterprises. Its S&P Global CSA score ranks in the top 6% of global pharmaceutical companies and the top 3% of all Chinese industry enterprises. It has also received numerous honors, including being named one of the China ESG Listed Companies' Top 30 Sci-Tech Innovation Pioneers, the Whale-Bull Award for ESG Public Welfare Pioneer, the Ram Charan Management Practice Award, and being included in the Harvard Business Review case library, gaining wide recognition from all sectors of society. 

 

Looking back at Sino Biopharm's ESG advancement journey, every step of improvement has been attributed to its sound governance, scientific planning, pragmatic cultivation, and continuous investment in the field of sustainable development. Looking ahead, Sino Biopharm will take this AA rating upgrade as a new starting point, insisting on forging a solid foundation for sustainable development with outstanding ESG performance. It will actively play a leading role in the industry, drive synergistic progress across the industrial chain, promote the high-quality development of China's pharmaceutical and healthcare industry, create sustainable long-term value for all stakeholders, and steadily advance towards becoming a global ESG industry benchmark, fulfilling its corporate mission through practical actions—Healthtech for a Warmer World.