Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Operation
• Environment
• Employee
• Community

Environmental Achievements

• Shehong Production Base achieved both environmental and economic benefits through "coal to natural gas" conversion, reducing coal use, SO2, dust, and NO2 emissions.
• Zhangjiagang Production Base reduced wastewater discharge by 10.2% compared to 2017 and optimized exhaust treatment to ensure compliant emissions.
• Tongliang Production Base eliminated exhaust emissions by utilizing sodium hypochlorite.
• Shehong Production Base implemented a new desulfurization and denitrification system, significantly reducing emissions.

Social Achievements

• Established a global unified cross-regional and cross-business job grade and completed the rank map and internal promotion channels.
• Revised the Employee Handbook and the Employee Attendance and Leave Management System to improve the leave system.
• Established a diversified employee benefits system including supplementary commercial insurance.
• Organized various staff activities to enhance communication and team cohesion.
• Launched 21 philanthropy projects at home and abroad.

Governance Achievements

• Established a modern governance structure of "three boards and one management".
• Formulated the corporate Anti-fraud and Reporting System.
• Actively fulfilled the obligation of information disclosure, gaining an A information disclosure rating from the Shenzhen Stock Exchange.
• Improved the organizational support system for investor relations.

Climate Goals & Targets

Environmental Challenges

• Waste lithium batteries polluting the environment.
• Potential risks of occupational diseases.

Mitigation Strategies

• Established required technologies and processes for cathode material recycling.
• Built a laboratory for synthesizing and testing basic materials of lithium-ion batteries.
• Compiled the Identification and Compliance Evaluation Checklist of Laws and Regulations on Occupational Health and Safety to identify and manage potential risks of occupational diseases.
• Provided employees with protective equipment and regular occupational health examinations.

Supply Chain Management

Supplier Audits: 100% coverage in 2018, with environmental and social factors accounting for about 60.6% of the assessment.

Responsible Procurement

• Supplier Management Standards
• Bidding and Tendering Management System

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Environmental, Social and Governance Reporting Guide (Appendix 27 of the Main Board Listing Rules of the Stock Exchange of Hong Kong Limited), Guidance on Social Responsibilities of Listed Companies on the Shenzhen Stock Exchange

Certifications: ISO 14001

Awards & Recognition

• Outstanding private enterprise in Sichuan Province
• Most Respected Listed Company by Investors
• 14th special contribution award for board governance
• Top 10 best performing list firm of the year
• 20th Golden Bull Award for most valuable investment
• Golden Wisdom Award for outstanding management teams
• Most valuable listed companies for long-term investment
• Top 50 Value and Top 10 Management Teams among small- and medium-sized listed companies
• Constituent stock of 2018 SGCX ESG50 Index
• Included in MSCI Index system and FTSE Global Equity Index
• Corporate Social Responsibility Award 2018
• Best Responsibility Report Award
• Young People and the Arts Partnership
• Sustainable Development Capacity Building Award 2018
• Overseas sustainability excellence award
• Ranked 12th on the 2018 Corporate Social Responsibility List
• National Technological Innovation Demonstrative Enterprise
• Second prize for Key Technologies and Industrialization of Lithium Material Production for Electric Vehicles
• Inorganic Salt Chemical Science and Technology Progress Award
• Nominated China best employer of the year 2017/2018
• Best Employer for Health and Well-being Award 2017/2018
• China Employee Relationship Management Practice Model Enterprise Award 2017/2018

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Resource Utilization
• Responsible Governance
• Employee Development
• Employee Care
• Health and Safety
• Community Investment
• Supply Chain Management

Environmental Achievements

• All production bases started carbon accounting and product carbon footprint verification.
• Shehong plant in Sichuan completely eliminated raw coal and cleaned coal, realizing full use of green electricity.
• 91% of total water consumption was recycled/reused.
• Zero environmental penalties caused by excessive or illegal discharge of pollutants, and zero unexpected environmental accidents.

Social Achievements

• Community investment totaled 966.43 thousand dollars in 2021.
• Invested a total of 30.27 thousand dollars in volunteer service, with 107 people contributing 131.50 hours in volunteer service activities in 2021.
• Customer satisfaction >95%
• Invested a total of 92.92 thousand dollars in employee training.
• Average training hours per employee: 46.65 hours

Governance Achievements

• Established the ESG and Sustainability Committee and the ESG and Sustainability Department.
• MSCI ESG rating upgraded from B to BB.
• Developed an in-house model and strategy to guide the company’s future sustainable development activities.
• Launched a publicity month with the theme of “Striving to Be a Role Model of Honesty and Trustworthiness”

Climate Goals & Targets

Environmental Challenges

• Continuing impact of the COVID-19 pandemic.
• Drastic fluctuations in the lithium market.
• Climate change related risks (physical risks like extreme weather, transition risks like stricter emission requirements, market risks related to consumer preferences and raw material prices, reputational risks from inadequate disclosure).

Mitigation Strategies

• Set up an international management team, planned new developments, and laid out new strategies.
• Brought in a strategic investment from IGO, restarted the process of a listing on the Hong Kong Stock Exchange, and effectively resolved debt issues.
• Made significant efforts to reduce costs and increase efficiency, optimized three major domestic plants.
• Completed commissioning of the Kwinana plant in Western Australia.
• Implemented energy conservation and emission reduction measures.
• Launched a carbon management program.
• Participated in the formulation of carbon emission standards.
• Developed the Green Lithium Project.
• Implemented comprehensive utilization of secondary products from lithium slag.

Supply Chain Management

Supplier Audits: Six on-site audits completed during the Reporting Period.

Responsible Procurement

• Supplier Management Specifications
• Supplier Admission Process
• Supplier Annual Appraisal Process
• Downgrading or elimination process for non-performing suppliers
• Code of Conduct for Responsible Mineral Suppliers
• Management Manual for Responsible Mineral Supply Chains

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Stricter emission reporting and compliance requirements
• Costs of switching to low-carbon technologies

Opportunities

• Low-carbon transition
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals (SDGs), TCFD

Certifications: ISO 14001, ISO 45001, IATF 16949 (Shehong, Zhangjiagang, Tongliang plants), ISO 9001 (most plants)

Sustainable Products & Innovation

• Green lithium products (lithium-based silicon aluminum powder products)
• Ultra-thin lithium metal strips
• Lithium sulfide products

Awards & Recognition

• 2021 Valuable Listed Company to Focus on (Snowball Finance)
• China CSR Top 300
• Southern Weekly CSR Ranking
• Advanced Targeted Poverty Alleviation in Sichuan Province
• Top 10 Outstanding Examples of Private Enterprises CSR in Sichuan Province 2021
• Innovation Case of the Year — “Changing the World with Lithium” Tianqi Volunteer Service Program
• 2021 Dream Builder Public Welfare Conference
• Outstanding Volunteer Service Enterprise
• CSR CHINA Volunteer Special Award
• CSR China Education Award
• CSR CHINA TOP 100 Responsible Corporate Brand of the Year
• Technical Standard Excellence Award (third prize) (National Nonferrous Metal Standardization Technical Committee)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Shehong Production Base completed renovation for zero discharge of reusable wastewater.
• Zhangjiagang Production Base's distributed photovoltaic system connected to the grid, generating approximately 700,000 kWh.
• Maintained a high-level rating in the industry of B for the CDP’s water security questionnaire and upgraded the climate change questionnaire rating from B- to B.
• Completed a structural change to a three-year US$400 million loan linked to sustainability and obtained dual certification. This represents the first syndicated loan linked to sustainability completed in the Chinese lithium industry.

Social Achievements

• Invested 1,915,455.97 USD in employee training, reaching average training hours per employee to 30.33 hours.
• Invested a total of 537,619.83 USD in the community, reaching volunteer service time to 1,528 hours.
• Successfully held Program NET (New Energy Talents) to promote cultural and talent exchanges between China and Chile.
• World’s first Li Science Museum officially opened.

Governance Achievements

• 100% coverage of ESG indicators in the Company’s executive compensation performance.
• MSCI ESG rating upgraded from BB to BBB and included in the S&P China A300 ESG Tilted Index (in 2024).
• Ranked 10th (by percentile) in the Bloomberg Intelligence - CSI 300 Index ESG Score.

Climate Goals & Targets

Environmental Challenges

• Overall market and economic environment challenges.
• Potential climate-related risks (extreme weather, water scarcity).
• Transitional risks (regulatory changes, market shifts, alternative technologies).

Mitigation Strategies

• Active deployment of lithium resources and capacity enhancement of lithium chemical products.
• Development of alternative sourcing strategies.
• Implementation of comprehensive management and safeguard measures for high-level physical risks.
• Closely following national policies on energy conservation and emission reduction.
• Active participation in the formulation of low-carbon emission standards.
• Investment in research and development of climate-resilient technologies and diversified lithium sources.
• Optimization of customer structure and deeper cooperative relationships with new energy materials and manufacturers of next-generation battery technologies.

Supply Chain Management

Supplier Audits: 721 suppliers assessed annually

Responsible Procurement

• Supplier Management Standards
• Procurement Management Specifications
• Supplier Admission Procedures
• Supplier Annual Evaluation Procedures
• Downgrading or Elimination Process for Non-Performing Suppliers
• Code of Conduct for Responsible Mineral Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Floods
• Heatwaves
• Extreme cold
• Water scarcity
• Sea level rise
• Ecological damage

Transition Risks

• Regulatory changes
• Market shifts
• Alternative technologies
• Carbon emission constraints
• Green trade barriers

Opportunities

• Increased demand for lithium in electric vehicles and energy storage
• Development of energy-efficient products
• Development of climate-resilient technologies
• Expansion of upstream lithium resources
• Development of next-generation battery technologies

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, SASB Standards (Chemicals sector), TCFD recommendations, IFRS S1, IFRS S2, UN Sustainable Development Goals (SDGs), HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, IATF 16949

Third-party Assurance: Beijing Zhongcai Green Index Co., Ltd.

Sustainable Products & Innovation

• Aluminosilicate powder from lithium slag
• Lithium sulphide
• Ultra-thin lithium alloy strips

Awards & Recognition

• 2022 China Enterprise Carbon Neutrality Performance Ranking - Energy Conservation and Emission Reduction Achievement Award
• Listed Company Board of Directors Excellent Practice Case Award (2023)
• ESG Activist Data Rating: A
• 2023 China New Growth · ESG Trailblazing