Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental compliance
• Exhaust management
• Wastewater management
• Use of water resources
• Ecological protection
• Prevention and handling of environmental incidents
• Employment compliance
• Occupational health and safety
• Prevention of child labor and forced labor
• Operational compliance
• Quality management

Environmental Achievements

• Completed construction of electrolytic aluminum flue gas desulfurization ultra-low emission transformation project
• Upgraded and reformed other devices to improve performance and reduce exhaust emission
• Achieved zero discharge of wastewater from alumina production
• Recycled cooling water used in the casting process for use in electrolytic aluminum production
• Implemented various water efficiency measures reducing water consumption
• Recycled and reused aluminum scraps reducing industrial waste
• Comprehensively utilized waste carbon residue (slag) generated from the aluminum smelting process
• Recycled highly magnetic materials from red mud
• Implemented energy-saving transformation projects improving environmental protection technologies and maintaining ultra-low emissions
• Introduced various machine improvements to lower safety risk

Social Achievements

• Established a comprehensive and diversified staff training system
• Implemented annual training programs and job training, professional and technical personnel training, elementary management training and middle and senior management training
• Cooperated with several universities to improve workforce quality and management capabilities
• Implemented a comprehensive safety management system and accident emergency plan
• Provided various safety trainings to increase safety awareness and strengthen abilities to handle emergencies
• Provided complete and professional labor protective supplies
• Improved employees’ welfare system integrating housing, education, health care and pension insurance mechanisms
• Provided financial and material assistance to employees in economic difficulties
• Held various types of employee activities to enrich spare-time life and enhance sense of belonging
• Launched the project of Weiqiao Rainbow Home to provide an environment for left-behind children to meet their educational and life needs

Governance Achievements

• Established a permanent Economic Supervision Department to urge each department to carry out anti-fraud duties
• Held regular anti-corruption meetings to mobilize and supervise leaders of various departments
• Organized a large-scale integrity education training to enhance employees’ awareness of probity
• Adopted strict monitoring measures for bidding and purchasing to ensure fairness, openness and justness
• Required personnel and management cadres related to bidding and procurement to sign an undertaking of integrity

Climate Goals & Targets

Environmental Challenges

• Exhaust gas emissions
• Wastewater discharge
• Waste disposal
• Energy consumption
• Water consumption
• Occupational health and safety risks
• Potential for corruption

Mitigation Strategies

• Investment in environmentally-friendly equipment and technologies
• Implementation of wastewater treatment and recycling systems
• Strict adherence to waste disposal regulations and recycling initiatives
• Energy-saving transformation projects and efficient resource management
• Water conservation measures and efficient water use
• Comprehensive safety management system, regular training, and equipment upgrades
• Establishment of an Economic Supervision Department, regular anti-corruption meetings, and integrity education training

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Bidding system for raw materials and supplies, considering factors such as supplier integrity and environmental impact

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 14001:2015, ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental compliance
• Exhaust management
• Wastewater management
• Waste management
• Soil pollution management
• Ecological protection
• Prevention and handling of environmental incidents
• Occupational health and safety
• Operational compliance

Environmental Achievements

• Completed super-low emission reform in primary aluminum production, exceeding national emission standards and achieving world-leading standards in various energy consumption and emission indicators.
• Shandong Hongqiao New Material Co., Ltd. awarded as the only energy efficiency leader in the primary aluminum industry by the Ministry of Industry and Information Technology in 2016, 2019 and 2020.
• Passed ISO 50001:2018 energy management system certification audit.
• Completed over 3,000 energy conservation and technology transformation projects.

Social Achievements

• Provided more than 12,000 new jobs in Yunnan Province.
• Established 13 Weiqiao Rainbow Homes providing care and education for left-behind children in poverty areas.
• Invested a total relief payment of RMB39,000 to provide assistance to 20 families in need.

Governance Achievements

• Established an effective ESG management and control system with specific duties and responsibilities for the Board to supervise ESG related affairs.
• Engaged an independent consultant to assist in ESG management, data analysis, and stakeholder engagement.
• Implemented the “one-vote veto system” for quality control.

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic on global economy and business operations.
• Potential climate-related risks such as extreme weather events disrupting supply chains and increasing production costs.
• Transitional risks from increasingly stringent environmental policies and emission reporting obligations.

Mitigation Strategies

• Formulated and implemented a COVID-19 Emergency Plan to protect employee health and ensure safe production.
• Established a well-established mechanism of prevention and emergency, set up contingency plan for environmental emergency, and prevent significant environmental accidents due to natural disasters or human activities.
• Regularly monitors global and local government policies and regulations on climate change to identify potential climate-related risks and opportunities.

Supply Chain Management

Responsible Procurement

• Bidding system for raw materials and supplies; consideration of supplier integrity and environmental impact; procurement from nearby suppliers to reduce transportation costs and emissions.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing transportation difficulties and supply chain disruptions.

Transition Risks

• Stringent policies and emission reporting obligations.

Opportunities

• Green aluminium innovation industrial park utilizing clean hydropower.

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide under Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

Certifications: ISO 14001:2015, ISO 50001:2018

Sustainable Products & Innovation

• Lightweight automotive parts; green aluminum production.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Social Responsibility
• Governance
• Occupational Health and Safety
• Supply Chain Management
• Community Investment
• Talent Cultivation
• Circular Economy

Environmental Achievements

• Achieved near-zero anode effect in aluminum electrolytic baths, reducing carbon emissions by more than 750,000 tonnes/year.
• Developed Aluminum Electrolysis Integrated Copper-Carbon Composite Cathode (RuC) Technology, resulting in annual power savings of 100 million kWh and a reduction of 100,000 tonnes of carbon emissions.
• Registered two green and low-carbon aluminum brands, HQALight and HQALoop, in China and Germany.
• Successfully trial produced low-carbon aluminum cans using 100% green aluminum.
• Shandong Hongshun's recycled aluminum alloy manufacturing technology won a green and low-carbon scientific and technological achievement award.

Social Achievements

• Provided financial assistance of RMB30,000 to 11 employees in difficulty.
• Continued participation in the “Sany Student Aid” charity program.
• Organized various employee activities, including sports galas and Women’s Day events.
• Provided a total of 380,584 hours of employee training, averaging 8 hours per employee.

Governance Achievements

• Successfully completed a HK$2.3 billion sustainability-linked syndicated loan.
• Established a robust ESG management and control system overseen by the Board.
• Conducted a materiality assessment with an independent consultant.

Climate Goals & Targets

Environmental Challenges

• Transition risks from increasingly stringent environmental regulations and disclosure obligations.
• Technological constraints in developing innovative low-carbon technologies.
• Funding requirements for climate change adaptation and mitigation measures.
• Market shifts towards low-carbon products and services.
• Reputational risks associated with climate change performance.
• Physical risks from extreme weather events and changes in climate patterns.

Mitigation Strategies

• Regularly reviews government policies and regulatory updates on climate change.
• Conducts risk assessments to review climate-related risks and determine appropriate business operations.
• Continuously reviews and refines climate change and energy policies.
• Actively implements internationally recognized environmental management systems (e.g., ISO14001).
• Engages a professional consultant for GHG emissions reporting.
• Actively participates in consultations on climate-related industry regulations.
• Develops appropriate insurance policies and provides comprehensive insurance coverage for property and assets.
• Improves energy use efficiency and reduces carbon emissions by promoting renewable energy.
• Conducts life cycle assessments (LCA) of products.
• Issues sustainability-linked loans and sets emission reduction targets.
• Creates a flexible supply chain to reduce reliance on specific regions or raw materials.
• Develops green aluminum brands (HQALight and HQALoop) to enhance reputation.
• Implements risk mitigation measures and contingency management plans for extreme weather events.
• Conducts risk assessments on the impact of extreme weather on business.
• Provides comprehensive insurance coverage for properties vulnerable to extreme weather.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Responsible procurement approach
• Requires suppliers to comply with laws and regulations regarding responsible procurement, business ethics, labor, environmental protection, and occupational health.
• Requires suppliers to sign the Non-use of Conflict Minerals Undertaking.
• Prioritizes suppliers with ISO9001, ISO14001, or low-carbon product certifications.
• Prioritizes suppliers with OHSAS18001 Occupational Health and Safety Management certification.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (e.g., impacting hydropower supply in Yunnan)
• Increased rainfall and sea level rise (increasing likelihood of flooding)
• Sustained high temperatures (increasing water demand and energy consumption)

Transition Risks

• Stringent environmental regulations and disclosure obligations
• Increased legal liabilities and operating costs
• International carbon-related trade barriers (e.g., EU CBAM)

Opportunities

• Development of energy-efficient products
• Investment in renewable energy and green hydrogen
• Promotion of recycled aluminum
• Deployment of advanced technology like inert anode and CCUS

Reporting Standards

Frameworks Used: Appendix C2 – “Environmental, Social and Governance Reporting Guide” of the Rules Governing the Listing of Securities of the Stock Exchange of Hong Kong, AA1000AS v3, Type 2 Engagement and Moderate Level of Assurance, TCFD

Certifications: ISO 14001:2015, ISO 45001:2018 (GB/T 45001-2020) (Shandong Hongshun), ASI Performance Standard (four subsidiaries)

Third-party Assurance: SHINEWING Sustainability Advisory Services Limited

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 6
• 8
• 9
• 10
• 11
• 12
• 13
• 15
• 17

The report details how various initiatives contribute to these SDGs, including job creation, community development, environmental protection, and education.

Sustainable Products & Innovation

• HQALight (low-carbon primary aluminum)
• HQALoop (recycled aluminum products)
• Low-carbon aluminum cans

Awards & Recognition

• 2023 Forbes China ESG Innovation Enterprise
• Leading Environmental Project Award (Bloomberg Businessweek)
• 2023 Top Ten Green and Low-Carbon Scientific and Technological Achievement Award of Renewable Resources Industry (Shandong Hongshun)
• Best Taxpayer Enterprise Award (Indonesia)
• First Prize for Clean and Environmentally Friendly Coal Utilization Technology (ASEAN, PT. Well Harvest Winning)
• Standards Excellence Prize (National Nonferrous Metals Standardisation Technological Committee)
• Enterprise Standard Forerunner Certificate (Institute of High Quality Standardisation)