Climate Change Data

Environmental Metrics

ESG Focus Areas

• Integrity Operation
• Business Performance
• Environmental Protection
• Occupational Safety and Health
• Staff Cultivation
• Employee Compensation
• Sustainable Management
• Products and Services
• Regulatory Compliance

Environmental Achievements

• Obtained ISO 14001 environmental management system certification.
• Implemented energy-saving measures, reducing electricity consumption intensity.
• Improved water recycling, increasing water recycling usage as % of water consumption.
• Reduced waste generation through waste separation and recycling.
• Received the first award from the Environmental Protection Administration for waste resource recycling.

Social Achievements

• No work-related accidents in 2022.
• Provided various employee benefits, including marriage subsidy, fertility subsidy, and education subsidy.
• Organized domestic and overseas trips for employees.
• Implemented training programs for employees, totaling 99 hours in 2022.

Governance Achievements

• Established a Risk Management Committee and a Sustainable Development and Responsible Minerals Committee.
• Implemented a Code of Integrity Management.
• Established an internal material information handling and prevention of insider trading management procedures.
• No significant penalties or non-monetary sanctions for violation of laws and regulations in 2022.

Climate Goals & Targets

Environmental Challenges

• Increased operating costs due to international standards, energy tax related regulations, and customer behavior change.
• Risk of flooding of plants and damage to equipment and facilities caused by extreme weather events.
• Transition risks related to policy and regulatory changes, energy taxes, and market risks.
• Potential negative impacts on the environment and society from suppliers.

Mitigation Strategies

• Establishing a Corporate Sustainability Committee and actively promoting ESG.
• Setting "Energy Sustainability 2030" carbon reduction targets.
• Setting renewable energy use and carbon reduction targets that meet customer requirements.
• Continuous investment in disaster prevention equipment and drainage system maintenance.
• Implementing strategies such as operational efficiency improvement, green power procurement evaluation, and product design energy efficiency improvement.
• Developing a greenhouse gas inventory and verification schedule plan.
• Supplier selection process that includes quality, reputation, delivery, sample testing, and compliance with ISO14001.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier evaluation process
• Requirement for suppliers to meet ISO14001 standards.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding)

Transition Risks

• Policy and regulatory changes
• Energy taxes
• Market risks

Opportunities

• Resource utilization efficiency
• Recycling
• Development of low-carbon products and services

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 14001:2015

Third-party Assurance: Ernst & Young (limited assurance)

Sustainable Products & Innovation

• Recycled cobalt and manganese catalyst

Awards & Recognition

• First award from the Environmental Protection Administration for waste resource recycling

Environmental Metrics

ESG Focus Areas

• Management Performance
• Occupational Safety and Health
• Environmental Protection
• Human Resource Development
• Employee Compensation
• Sustainable Management
• Products and Services
• Regulatory Compliance
• Integrity Operation

Environmental Achievements

• Reduced total water withdrawal by 11% and total water consumption by 16% compared to 2022.
• Total greenhouse gas emissions from energy consumption decreased by 9% from 2022 to 2023 (Area 2).

Social Achievements

• Zero work-related accidents in 2023.
• Employee satisfaction score higher than industry peers (65th percentile).

Governance Achievements

• Established a Risk Management Code of Practice.
• Established the “Code of Integrity,” “Employee Code of Ethical Conduct,” “Code of Ethical Conduct for Directors, Supervisors, and Managers,”

Climate Goals & Targets

Environmental Challenges

• Sharp drop in the price of cobalt metal, leading to a significant decrease in revenue.
• Increased operating costs due to energy saving and carbon reduction measures and compliance with new regulations.
• Potential for increased operating costs due to gradual improvement in product energy efficiency, potentially affecting customer investment willingness.
• Increased frequency and severity of extreme weather events posing risks to plant facilities.
• Transition risks related to changing government policies and customer demands for carbon emission control.

Mitigation Strategies

• Implementing energy conservation measures (LED lights, temperature control, etc.).
• Using natural gas instead of heavy oil.
• Investing in disaster prevention equipment and drainage system maintenance.
• Adopting strategies such as operational efficiency improvement, green power procurement evaluation, and product design energy efficiency improvement.
• Considering the creation of negative carbon assets through investment in new businesses.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier evaluation process
• Requirement for suppliers to meet ISO 14001 standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods).

Transition Risks

• Policy and regulatory risks (carbon taxes, emissions regulations).
• Market risks (customer behavior changes).

Opportunities

• Resource utilization efficiency improvements.
• Recycling and development of recyclable materials.
• R&D of low-carbon products and services.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 14067-1

Third-party Assurance: Ernst & Young

Sustainable Products & Innovation

• Recycled cobalt and manganese catalyst

Awards & Recognition

• First award from the Environmental Protection Administration (2 stars for waste resource recycling economy evaluation).