Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance
• Sustainable Development
• Circular Economy
• Employee Well-being
• Investor Relations
• Supply Chain Management
• Community Engagement

Environmental Achievements

• Reduced tons steel comprehensive energy consumption by 2.1% compared to 2006.
• Reduced water consumption per ton of steel by 15.2% compared to 2006.
• Decreased atmospheric dust by 20.1% compared to 2006.
• Achieved 98.48% comprehensive utilization rate of industrial solid secondary resources.
• Implemented various environmental protection projects, including flue gas desulfurization and wastewater treatment.
• Completed the construction of the first phase of the environmental automatic monitoring and surveillance system.

Social Achievements

• Launched the "Love Forever, Enlightenment Action" project, helping 3400 impoverished cataract patients regain their sight.
• Implemented various employee well-being initiatives, including sports facilities and health checkups.
• Maintained employee turnover at 1.28%.
• Provided comprehensive assistance funds for employees in need.
• Consistently recognized as a "China's Outstanding Employer".

Governance Achievements

• Further improved internal control system and established a self-assessment system.
• Established a complete risk management system.
• Improved investor relations through various communication channels.
• Obtained a positive outlook from Standard & Poor's for long-term credit rating.

Climate Goals & Targets

Environmental Challenges

• Rising raw material prices (iron ore, coal, etc.)
• Increased transportation costs
• Market fluctuations
• Environmental regulations
• Competition from other steel companies

Mitigation Strategies

• Implemented cost reduction and efficiency improvement measures.
• Optimized product structure
• Strengthened internal control and risk management.
• Developed alternative sourcing strategies.
• Improved energy efficiency and reduced emissions.

Supply Chain Management

Responsible Procurement

• Emphasis on integrity and long-term partnerships with strategic suppliers.
• Implementation of "sunshine procurement" practices.
• Strict adherence to anti-corruption policies.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3, 《中国工业企业及工业协会社会责任指南》 (2008)

Certifications: ISO 14001

Sustainable Products & Innovation

• High-strength steel
• Thinned DI materials
• High-efficiency non-oriented electrical steel
• Fire-resistant and weather-resistant steel
• Tinplate DI materials
• High-pressure boiler tubes
• Economical corrosion-resistant casing pipes
• Hot-dip (aluminum) zinc chromium-free passivation treated steel sheet
• High-efficiency electrical steel
• Self-cleaning building color plates

Awards & Recognition

• Global Most Admired Companies (three consecutive years)
• China's Best Integrity Enterprise
• China's Outstanding Employer (two consecutive years)
• Best Investor Relations Award
• National Environmental Friendly Enterprise
• Shanghai's A-Class Taxpayer Credit Rating

Environmental Metrics

ESG Focus Areas

• Personnel
• Community
• Environment
• Economy
• Supply Chain

Environmental Achievements

• Increased investment in environmental protection to effectively reduce emissions; Received recognition as one of the first Chinese green enterprises for benchmarking; Implemented dry coke quenching technology (CDQ), waste heat recovery from sintering, TRT residual energy power generation by blast furnace, and other energy efficiency measures; Achieved a wastewater reuse rate of above 75%; Successfully utilized neutralized water in clean circulating cooling water system; Upgraded industrial solid secondary resources treatment, turning wastes into wealth and saving raw materials; Completed Phase I of an automatic environment monitoring system.
• Developed new generation of PVDF color steel plate with strong resistance to extreme low temperature and UV radiation, high-performance fire and weathering resistant steel and new-type stainless steel for Kunlun Station construction.

Social Achievements

• Donated RMB 175 million in 2008 to various social causes, including earthquake relief, poverty alleviation, and education; Built color-coated steel sheet housing for disaster-stricken people after the Wenchuan earthquake; Launched the “Everlasting Love, Eyesight Restoring Action” providing eye operations for cataract patients; Implemented a Corporate Annuity Plan to improve employees’ post-retirement living standards; Maintained a low employee turnover rate (1.1% in 2008); Implemented “Green Apple” and “Golden Apple” talent training plans; Established a multi-layer long-term alleviation and warmth delivery mechanism for employees in financial difficulty.

Governance Achievements

• Established a Corporate Social Responsibility Committee (CSR Committee); Established a Sustainable Development Research Center; Implemented the Safety Production Responsibility System at different levels; Developed Baosteel’s Guidelines on Accident Assessment; Implemented the “Under-sunshine” Procurement Plan; Perfected the organizational frameworks for anti-corruption efforts; Issued the Measures for Implementing 2008-2012 Work Plan on Establishing and Perfecting the Corruption Punishment and Prevention System; Consistently rated as “a Contract Abiding & Trustworthy Enterprise” and AAA Grade enterprise (highest credit rating).

Climate Goals & Targets

Environmental Challenges

• Severe external environment and complex development situation due to the impact of the global financial crisis; Drastic fluctuations in the domestic steel market.

Mitigation Strategies

• Baosteel people united as one and fulfilled various social responsibilities to the best of their abilities; Main steel business scored steady development with substantial progress achieved in Zhanjiang Project and the official unveiling of Baosteel Group Guangdong Iron & Steel Co., Ltd.; Practical results were registered in new product R&D and market exploration; Competitiveness of related diversified business kept being enhanced and the restructuring of auxiliary business was carried out steadily.

Supply Chain Management

Responsible Procurement

• Green Procurement Action Plan; Sunshine Procurement; Long-term strategic cooperation agreements with suppliers; ISO9000 certification on production suppliers; Priority to suppliers with more consciousness of social responsibility; E-procurement.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Guideline on Fulfilling Social Responsibility by Central Enterprises (2008 No. 1 document of State-owned Assets Supervision and Administration Commission of the State Council), GRI G3, UN Global Compact

Certifications: ISO 14001

Sustainable Products & Innovation

• Environmentally friendly products (lead-free hot galvanized steel sheet, lead-free easy-cutting steel, chromium-free galvanized sheet, etc.); Automotive lightweight products; High-strength steel plates for extra-large crude oil storage tanks; Nickel-base alloy oil tubing/casing and undersea pipeline tubes; Stainless steel pipe for ultra supercritical pressure boiler; High efficient and non-oriented electrical steel; High strength and high ductility pipeline steel; High strength and high ductility plate; High strength steel pipe; Steel for chemical storage tanks; Steel for petroleum storage tanks; High strength enameled steel; High strength structural steel for buildings; High-tensile Strength wires; Self-cleaning color precoated steel sheet; High-ductility and high strength structural steel pipe; High strength fire-resistant and weathering steel; High-durability color precoated steel sheet; Hot rolled high strength die steel for plastic materials forming.

Awards & Recognition

• 2007 China Quality Construction Award (stainless steel project); 2007 Shanghai Enterprise Management Modernization Innovation Achievements (first prize); National Award for Technological Inventions (second prize); National Award for Scientific and Technological Progress (second prize); Shanghai Municipal Awards for Scientific and Technological Progress; Shanghai Municipal Awards for Technological Inventions; Shanghai Energy Saving & Pollution Reduction Outstanding Achievements Awards; “Advanced Energy Saving Unit of Shanghai 2007”; “Corporate Social Responsibility Contribution Award”; “China Iron & Steel Industry Clean Production and Environment-Friendly Enterprise 2007”; “Outstanding Enterprises Award”; “2006 China Charity Award”; 2008 National Awards for Scientific and Technological Progress (second prize); “Top 10 Outstanding Figures in Chinese Economy 2008”; 5.12 Earthquake Relief Outstanding Contribution Award; 2010 Shanghai World Expo Service Star Award; “World’s Most Admired Companies”; “Top 10 Energy Saving and Pollution Reduction Enterprises in China 2008”; “2007 Most Trustworthy Enterprise in China”.

Environmental Metrics

ESG Focus Areas

• Corporate operation
• Environmental protection
• Employee care
• Community support
• Supply-chain building

Environmental Achievements

• Reduced SO2 emission by 19.5%, COD by 28.6%, dust by 8.8%, wastewater by 25.5%, and dust fall amount in plants by 4.8% compared to 2008.
• Solid waste resource reutilization rate of 98.52% at Baosteel Co., Ltd.
• Meishan Steel’s clean production passed the examination and acceptance of Jiangsu Province and Nanjing City.
• Completion of the phase-II engineering construction of the environmental monitoring system at Baosteel Co., Ltd.

Social Achievements

• Introduced employee health plan covering 39,166 employees.
• Established corporate annuity system.
• Donations totaled RMB 87.305 million.
• Supported Antarctic exploration.
• Poverty alleviation in Yunnan and Tibet.

Governance Achievements

• Improved corporate governance through the board of directors system.
• Strengthened enterprise risk management.
• Implemented management reform plan.
• Strengthened anti-corruption campaign.

Climate Goals & Targets

Environmental Challenges

• Global financial crisis impacting demand and steel prices.
• Overcapacity and fierce competition in China's steel industry.
• Environmental challenges related to CO2 emissions.

Mitigation Strategies

• Implemented crisis management principles.
• Management reform to improve efficiency and market responsiveness.
• Investment in energy-saving and emission-reduction technologies.
• Exploration of a new system for “environmental operation”.

Supply Chain Management

Supplier Audits: On-site second-party audits were completed in 2009 with over 23 suppliers audited.

Responsible Procurement

• Green procurement policy
• Preference given to suppliers with ISO 14001 certification
• Sunshine procurement policies emphasizing process optimization and IT application

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Guidelines for Social Responsibility Performance by Central Enterprises (Document No. 2008-01), GRI G3, UN Global Compact, Guidelines of the Chinese Academy of Social Sciences

Certifications: ISO 14001

Sustainable Products & Innovation

• Environment-friendly products (e.g., antibacterial stainless steel, tubes for nuclear power generation)

Awards & Recognition

• World's Most Admired Company
• Fortune Global 500
• China Metallurgical Science and Technology Awards
• Golden Bee Best CSR Report

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced SO2 emissions by 4401 tons compared to the annual target; reduced per-ton-steel comprehensive energy consumption by 8 kg of standard coal compared to the annual target

Social Achievements

• Achieved 85 hours of average training per employee; 535 employees resigned, representing 1.24% of the average annual number of employees.
• Established the first experience-based safety education and training center in the domestic metallurgical industry.

Governance Achievements

• Implemented internal control standards pilot audit work; conducted compliance evaluations in various fields; improved risk management and system management.

Climate Goals & Targets

Environmental Challenges

• High costs and low profits in the steel industry; pressure from both procurement and sales markets; complex external environment and the "low-profit operation" era of the steel industry.

Mitigation Strategies

• Ensuring stable production and sales balance; optimizing internal resource allocation; increasing efforts to improve costs; optimizing product structure to adapt to market demand; strengthening cost control; improving service capabilities; promoting environmental management; and adhering to an employee-centric approach.

Supply Chain Management

Supplier Audits: 9% of suppliers had ISO14001 certification; 100% of key carriers had ISM/NSM certification.

Responsible Procurement

• Green procurement policy; supplier environmental management system (ISO14001) certification as a priority condition for new suppliers; inclusion of environmental protection requirements in raw material purchase contracts.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3, CASS－CSR2.0

Certifications: ISO 14001

Sustainable Products & Innovation

• Environmentally friendly products, including high-strength automotive steel, high-strength structural steel, chrome-free environmentally friendly coated non-oriented electrical steel, TMCP process ship plates, and wear-resistant steel.

Awards & Recognition

• National Quality Work Advanced Unit Pioneer Title
• First China's Most Respected Knowledge-Based Organization Award
• Most Socially Responsible Listed Company Title
• National Enterprise Trade Union Work Red Flag Unit Honor Title
• National May 1 Labor Award

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Value Creation
• Environment Management
• Employee Development
• Community and Supply Chain

Environmental Achievements

• Invested RMB 1.522 billion in energy-conservation and emission-reduction projects, realizing a year-on-year energy conservation of 483,000 tons of coal equivalent and reduced SO2 and COD emissions by 39% and 41% respectively.
• Reduced carbon emission by 17 million tons (equivalent to creating 560,000 hectares of green forest) through the promotion of green products.
• Achieved 98.8% by-product resource utilization rate and 27.9% by-product re-utilization rate in production of Baosteel Co., Ltd. headquarter.
• Successfully produced mineral wool from hot melted slag, reducing energy consumption by 51% from that of traditional process.

Social Achievements

• Increased total employee remuneration to RMB 11.52 billion.
• Employee devotion increased from 46% in 2010 to 52% in 2012.
• Launched the “Good Life Employee Service Platform”, integrating multiple functions to serve employees.
• Won China Charity Award for the fourth consecutive year.

Governance Achievements

• Established Baosteel Central Research Institute to integrate R&D resources.
• Strengthened the coordinated operations encompassing five main mechanisms in anti-corruption campaign.
• Implemented efficiency supervision in key areas such as project construction, procurement and sales, capital management, asset disposal and safety management.

Climate Goals & Targets

Environmental Challenges

• Struggling global economic recovery, weak endogenous momentum in China’s economic growth, prominent structural conflicts, intensifying homogenized competition in China’s iron and steel sector, tremendous environmental pressure and operation on slim-profit margin.
• Severe market challenges in the iron and steel industry.

Mitigation Strategies

• Focused on technological innovation, actively implemented environment management and followed the guidance of “Creativity” to ensure the survival, development and future breakthrough of Baosteel.
• Implemented strategic transformation from “steel to materials”, “from manufacturing to services” and “from China to the world”.

Supply Chain Management

Responsible Procurement

• Sunshine Procurement
• Green Procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Guidelines to the State-owned Enterprises Directly under the Central Government on Fulfilling Corporate Social Responsibilities (Document No.2008-01), Outline of Implementation of Harmonious Development Strategies for Central Enterprises during “Twelfth Five-Year Plan”, Sustainability Reporting Guidelines (G3 version) of the Global Reporting Initiative (GRI), 10 Principles of the United Nations Global Compact, Guidelines of the Chinese Academy of Social Sciences for the Compilation of Social Responsibility Reports by Chinese Enterprises

Certifications: ISO14001

Sustainable Products & Innovation

• High-strength auto steel
• Antibacterial stainless steel
• Mineral wool from blast furnace slag

Awards & Recognition

• China Charity Award
• World’s Most Admired Company
• Highest credit rating among global iron and steel enterprises
• Steelies Award - Excellence in Life Cycle Assessment
• Steelies Award - Excellence in Sustainability Reporting
• National Technology Innovation Model Enterprise

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption by 6.7万吨标煤 compared to the annual target; reduced per-ton steel comprehensive energy consumption by 1 kgce/t-s compared to the annual target.
• Achieved 99.2% comprehensive utilization rate of by-products and 26.4% return-to-production utilization rate.
• 100% compliance rate for hazardous waste disposal.

Social Achievements

• Increased employee labor productivity by more than 6%.
• 湛江钢铁 achieved profitability.
• Implemented various employee wellbeing initiatives (details not quantified).

Governance Achievements

• Received the “National Greening Advanced Collective” title.
• Selected as a pioneer enterprise for the UN Sustainable Development Goals.
• Received awards at the 2nd China (Shanghai) Listed Company Corporate Social Responsibility Summit.

Climate Goals & Targets

Environmental Challenges

• Overcapacity in the steel market.
• Increased cost pressures (environmental costs, raw material costs).
• Weak profitability in some business units.
• International trade protection and exchange rate fluctuations.

Mitigation Strategies

• Cost reduction exceeding 60 billion yuan.
• Synergies from Baowu integration exceeding 10 billion yuan.
• Focus on cost reduction, technological leadership, and service excellence.
• Emphasis on new product development and market leadership.

Supply Chain Management

Responsible Procurement

• Prioritizing suppliers with good environmental performance.
• Implementing a “sunshine procurement” strategy.
• Promoting the use of green materials.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4, CASS－CSR 2.0

Certifications: ISO 14001, ISO 50001, ISO 9001, OHSAS 18001, ISO10012-1

Sustainable Products & Innovation

• High-strength steel
• Silicon steel
• Green coatings

Awards & Recognition

• National Greening Advanced Collective
• UN Sustainable Development Goals Pioneer Enterprise
• Awards from the China (Shanghai) Listed Company Corporate Social Responsibility Summit