Climate Change Data

CITIC Pacific Special Steel Group Co., Ltd.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:38,710,357.08 tCO2e/year
Scope 1 Emissions:35,633,457.10 tCO2e/year
Scope 2 Emissions:3,076,899.98 tCO2e/year
Water Consumption:4,108,719.00 m3/year
Waste Generated:11,079,030 tons/year
Carbon Intensity:382.64 tCO2e/RMB in 1 million revenue

ESG Focus Areas

  • Climate Change
  • Green Manufacturing
  • Digital Intelligence Transformation
  • Talent Development
  • Corporate Governance
  • Supply Chain Responsibility
  • Social Responsibility

Environmental Achievements

  • Completed full-process ultra-low emission transformation in Xingcheng Special Steel, Qingdao Special Steel, and Tianjin Pipe.
  • Reduced atmospheric particulate matter, sulfur dioxide, and nitrogen oxide emissions by 18.9%, 62.2%, and 58.3% respectively in Xingcheng Special Steel after ultra-low emission treatment.
  • Achieved a 97% water reuse rate.
  • Developed the world's first "Product Category Rule (PCR) for Special Steel Used in Automotive Components"
  • Xingcheng Special Steel obtained the "EATNS Carbon Management System" certificate.
  • Yangzhou Special Materials was included in the MIIT's "Green Factory" list.

Social Achievements

  • Implemented various talent plans, including the 100 Elite Talent Plan and the "Star Program" for college students, training 110,000 employees.
  • 100% coverage of ISO 45001 Occupational Health and Safety Management Systems certification.
  • Organized various community volunteering activities with 695 employee participants.
  • Carried out internal promotion of agricultural products to support rural revitalization.

Governance Achievements

  • Established a four-level ESG management structure approved by the Board of Directors.
  • Obtained the world's first ISO 37301 "Compliance Management Systems" certification.
  • Achieved 100% coverage of employee anti-corruption training and 100% signing rate of "Transparent Cooperation Agreement" by suppliers.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2060, reducing carbon emissions by around 80% compared to the peaking level.
Medium-term Goals:
  • Reduce carbon emissions intensity by 20% compared to peak year by 2035.
Short-term Goals:
  • Deployment of steel scrap recycling industry to improve resource utilization.

Environmental Challenges

  • Policy and legal risks related to pollution and carbon emission reduction.
  • Technological barriers and costs associated with low-carbon technologies.
  • Market competition and customer demand for low-carbon products.
  • Extreme weather events affecting operations and supply chains.
  • Long-term climate changes impacting production.
  • Reputational risks from failing to meet climate change expectations.
Mitigation Strategies
  • Developed a carbon neutrality roadmap and invested in energy conservation and emission reduction projects.
  • Collaborated with research institutions for low-carbon technology research.
  • Leveraged advantageous location for renewable energy exploration.
  • Developed contingency plans for extreme weather events and strengthened supply chain risk assessments.
  • Actively responded to stakeholder feedback and published ESG reports.
  • Implemented a three-year low-carbon action plan focusing on optimizing industrial structure, advancing ultra-low emission transformation, emphasizing energy conservation, planning low-carbon transformation, leveraging intelligent control, and actively pursuing industrial collaboration.

Supply Chain Management

Supplier Audits: 404 qualified suppliers in 2023

Responsible Procurement
  • Supplier Code of Conduct
  • Requirements on human rights, labor rights, environment, work safety, and privacy protection.
  • Carbon emission management incorporated into supplier access and annual evaluation.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (typhoons, extreme precipitation)
  • Long-term climate changes (rising sea levels, sustained high temperatures)
Transition Risks
  • Policy and regulatory changes
  • Market shifts in demand for low-carbon products
Opportunities
  • Increased demand for green low-carbon steel products
  • Resource efficiency improvements
  • Development of renewable energy solutions

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals (SDGs), S&P Global Corporate Sustainability Assessment (S&P CSA), Refinitiv ESG Rating, Sustainalytics ESG Rating, TCFD

Certifications: ISO 14001, ISO 45001, ISO 37301, ISO 27001, IATF 16949

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Initiatives contribute to these goals through green manufacturing, renewable energy use, waste reduction, and climate change mitigation.

Sustainable Products & Innovation

  • High-performance, lightweight, long-life, near-net shape special steel products
  • Bearing steel for world's largest shield tunneling machine bearing
  • Ultra-high-strength suspension spring steel and spring steel
  • Steel for bridge anchorage
  • High-end pipeline products for ultra-deep wells

Awards & Recognition

  • 2023 Global Influential Brand in the Steel Industry
  • 2023 Intelligent Manufacturing Demonstration Factory (Daye Special Steel)
  • 2023 Excellent Application Scenario of Intelligent Manufacturing (Tongling Special Materials)
  • Lighthouse Factory (Xingcheng Special Steel)
  • Excellence in Life Cycle Assessment (Steelie Awards)