2021

Environmental Social

and Governance Report

E-mail: 600219@nanshan.com.cn

Tel: 0535-8666352

Address: Nanshan Village Dongjiang Town Longkou City Yantai City Good morality towards perfection

Shandong Province China

Accumulated hills towards mountain.

2021 Environmental Social and Governance ReportAbout This Report Good morality towards perfection

Accumulated hills towards mountain.Contents

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15

3959

Sustainable Development

Green manufacturing for

bright future. Low Carbon Production Human Resources

Green manufacturing towards Diverse talents with inclusive

Concept of Sustainable Development 17 the peak carbon emissions employment.and carbon neutrality.ESG Management 17 21 Rights and Interests Guarantee 61Energy Management 43

Communication with Stakeholders 18 Staff Development 64

Management of Carbon Emission 45

ESG Materiality Issues 19 47 Environment and Ecology Employee Training 65

Awards and Recognition Corporate Governance20 Work together to protect Strive for continuous the ecology for harmony. Employee Communication 67

governance and corporate

Address from Chairman of Board 01 enhancement. 29 Health and Safety 68Product Quality 71Compliance of Emission 50

About This Report 03 Craftsmanship for excellent quality.Governance Structure 23 Water Resources Management 56

Highlight the Performance 05 Cooperation

Business Ethics and Anti-corruption 24 Product Quality 31 Biodiversity Protection 58 Win-win partnership for benefiting

07 Risk Management 25 R&D and Innovation 33 cooperation.About Nanshan Aluminium

Investor Relations 27 Customer Service 37 Supply Chain Management 73

Industrial Distribution 09

Information Security 28 Win-win Development of Industries 75

Main Products 11

Care for Local Community 76

Strategic Development 13

Corporate Culture 14

4 5Address from

Chairman of Board

In 2021 the aluminium supply chain faced profound challenges because of the depressing COVID-19 pandemic

overseas quite discouraging COVID-19 pandemic control unbalanced global economy resurgence and the

superpower games. However the low-carbon aluminium industry has embraced opportunities for development

thanks to steady improvement and sustained recovery of China's overall economy and comprehensive and

environmental-friendly transformation of economic and social development under the strategy of "carbon

neutrality" and " carbon emissions peak".Having always adhered to the sustainable development idea of "green manufacturing building a bright future

for enterprises" Nanshan Aluminium actively responds to the national strategy for peak carbon emissions

LU ZHENGFENG and carbon neutrality with the requirements of the 14th Five-year Plan continues to fulfill corporate social

Nanshan Aluminium responsibilities from the three dimensions of environmental society and governance strives to build a

responsible aluminum industry chain setting a leading example for promoting the high-quality development

Chairman of Board and green growth of China aluminum industry.Sound Governance System Improve Product Quality Promote Green Production Safeguard Employees' Rights Promote Social Development

and Interests

The Company is committed to creat- Nanshan Aluminium adheres to the As the first enterprise in aluminium Having created a perfect supply chain Based on the present while looking

ing a fair and equitable business en- quality management system with industrial chain to obtain the Alumin- Nanshan Aluminium protects the le- management system we improve for the future we will never forget

vironment. We promote the healthy high standards strengthens product ium Stewardship Initiative (ASI) certi- gitimate rights and interests of every the social responsibility performance why we started and continue to move

development of production and quality control and implements fication in China Nanshan Aluminium employee in aspects of employment of supply chain gradually through forward with unique advantages of

operation with a sound corporate the concept of "Quality is the life of takes measures for energy saving and salary and welfare career develop- s y s t e m a t i c a n d s t a n d a r d i z e d industrial chain integration and high-

governance structure and risk man- enterprise" into the whole process consumption reduction actively and ment etc. earnestly. On the basis of management process. Playing a end products including fulfilling

agement system. At this point we of production. Paying attention to build green plants and enterprises existed human resource management positive and valuable role we actively social and economic responsibilities

have completed the transformation customer experience and being that coexist harmoniously with the system we provide every employee cooperate with multiple parties and promoting industrial distribution

from only considering short-term customer-oriented the Company environment through positive envi- with an inclusive and open develop- the industry and the surrounding providing high-quality products and

economic benefits to pursuing long- has established perfect customer ronmental management policies. The ment platform various and diversi- community for mutual and beneficial making unremitting efforts to fulfill

term comprehensive value by setting feedback and after-sales service newly-added aluminium resource re- fied training system convenient and development and joint creation of the strategy of "carbon neutrality"

up the ESG governance structure with mechanism. Meanwhile the Company cycling project as a model of second- efficient communication channels harmonious and prosperous business and "carbon emissions peak" green

work teams as the core identifying attaches strategic importance to ary aluminium recycling has signifi- and mutual-aid and friendly work en- environment. cycling and sustainable development

related and significant ESG issues scientific research and innovation cant socialbenefits in resource-saving vironment continuously by optimizing with all the stakeholders.through regular communication with a n d co n t i n u e s t o i m p r o v e t h e energy conservation emission reduc- the three-pillar structure of human

stakeholders and following up objec- management level through industrial tion and environmental protection resource.tives and performance of correspond- informatization. We have won a which not only effectively responds to

ing issues during daily management. wide range of external recognition in the objectiveness of national strategy

aspects of brand competitiveness of "carbon neutrality" and "carbon

p r o d u c t q u a l i t y i n d e p e n d e n t peak" but also alleviates the impact

innovation etc. of climate change on society.

1 2About This Report Good morality towards perfection

Accumulated hills towards mountain.About This Report

Report description Data source and reliability assurance

This Report is the 12th Environmental Social and Governance Report (ESG) issued The information and data disclosed in this Report are from statistical reports

by Shandong Nanshan Aluminium Co. Ltd. 1 which is an annual report focusing and official documents of the Company and have been audited by relevant

on the management practice and performance of the Company in respect of departments. The Company guarantees that this Report does not involve any false

environment society and governance (ESG). records and misleading statements and will be liable for the authenticity accuracy

and integrity of the contents.Organizational scope of the Report Report preparation process

This Report is about Shandong Nanshan Aluminium The preparation process of this Report covers establish-

Co. Ltd. and its subsidiaries. In this Report "we" ment of work team data collection interviews with and

"the Company" and "Nanshan Aluminium" all refer questionnaire inquiry on stakeholders framework deter-

to "Shandong Nanshan Aluminium Co. Ltd.". Unless mination report preparation report design review by de-

otherwise specified all currencies mentioned in this Report partment and senior executives etc.refer to RMB.Report time frame Confirmation and approval

The report covers the period from January 1st 2021 to This Report was audited and approved by the Board of

December 31st 2021 (hereinafter referred to as the "Report Directors and senior leadership of the Company on March

Period") some dating back to previous years and covering 30 2022.the first quarter of 2022.Basis of preparation Report acquisition

This Report is prepared not only with reference to documents including the This Report is available for consulting and downloading on the Company's website:

Guideline for the Preparation of the 'Report on Performance of Corporate Social www.600219.com.cn.Responsibility' promulgated by the Shanghai Stock Exchange and the Opinions For further inquiries comments or suggestions on this Report please contact the

concerning Enhancing the Social Responsibility of Listed Companies and the Company by:

Promulgation of 'Guidelines of Shanghai Stock Exchange for Environmental Email: 600219@nanshan.com.cn

Information Disclosure of Listed Companies' but also with reference to and Tel.: 0535-8666352

response to evaluating indicators such as the United Nations Sustainable Address: Nanshan Village Dongjiang Town Longkou Yantai City Shandong

Development Goals (SDGs) Environmental Social and Governance ("ESG") Province

Ratings initiated by Morgan Stanley Capital International (i.e. MSCI ESG Ratings)

etc.

1Before 2021 Nanshan Aluminium issued a responsibility report or sustainable development report. In 2021 the upgrade

of comprehensive ESG disclosure and the preparation of the 2021 ESG Report of Nanshan Aluminium were completed.

3 4About This Report Good morality towards perfection

Accumulated hills towards mountain.Highlight the Performance The carbon emission intensity of Electrolytic Aluminium The carbon emission intensity of plant of Nanshan in

Branch of Shandong Nanshan Aluminium Co. Ltd. is USA is

13.24 t CO2e /t product. 0.45 t CO2e /t product.

Sustainable Development Green manufacturing for bright future.Environment and Ecology Work together to protect the ecology for harmony.Identified 21 ESG issues and 7 key issues

Target：100% rate of waste water discharge Successfully applied and approved the key special

Strive for continuous governance and corporate projects titled Solid Waste Utilization under the Corporate Governance enhancement. ????100% rate of waste gas discharge National Key Research and Development Program of

China.Female directors account for 22% and independent The number of business ethics violations is 0 ????100% disposal rate of solid waste

directors account for 33% 100% The aluminium recycling company achieved 61200t Obtained GB/T 23001 informatization and ???? and harmless disposal rate of annual treatment of aluminium slag crusts and hazardous waste.Business ethics training covers 100% of employees industrialization management system certification 18900t production of aluminium ingots.Level II Multi-level Protection Scheme (MLPS) evaluation

Coverage rate of ISO 14001 certification is 87.5%. Achieves a comprehensive solid waste utilization rate

Product Quality Craftsmanship for excellent quality. Passed the GB/T 36132-2018 General Principles for of 56% hazardous wastes compliance treatment

Assessment of Green Factory certification. rate of 100% reaching the industrial advanced and

historically best level.Management has passed a number of System Pressure Equipment Directive Certification. Continuously investing and propelling ultra-low

Certifications：ISO 9001 quality management system discharge modification projects and optimizing all Water recirculation reached the Company's historically

ISO/TS 22163 railway system quality management The first responsible enterprise in China that has passed subsidiaries and production companies of Nanshan best level.system IATF 16949 automobile quality management the ASI aluminum industry chain certification and Aluminium have fully achieved the goal of ultra-

system ISO 22000 quality safety management system low discharge target for 2021 and far lower than the Continuously protect the ecological environment of the obtains the ASI PS performance standard certificate and

ISO/IEC 17025 laboratory management system GB/T ASI CoC standard certificate national and operational basic standard.region where the Company are located and actively

29490 enterprise intellectual property system etc maintain biodiversity and ecological balance.

Established 5 national and 7 provincial R&D platforms.The products have passed the certification of many Human Resources Diverse talents with inclusive employment.Classification Societies National Aerospace and Overall customer satisfaction 96.9%

Defense Contractors Accreditation Program (NADCAP) The collective agreement signing proportion of the work safety standardization certification reaches 83%

special process certification and PED&AD2000 Company is 100%

Green manufacturing towards the peak carbon Zero work-related fatalities

Low Carbon Production emissions and carbon neutrality. Training coverage of employees is 100% Work-related injury accident (serious injuries and

In 2030 the Company's carbon emission intensity of Total training hours reach 821419 hours casualties) rate of external construction personnel was 0 The carbon emission intensity of Longkou Donghai

electrolytic aluminium reaches to be less than 8 t Alumina Co. Ltd. is 0.55 t CO e /t product. The Company invested 89.1 million yuan of the special The qualification rate of dust and harmful gas operation 2

CO2e /t product and the overall energy consumption of reserve in 2021 points reaches 100%

the unit product is less than the energy consumption The carbon emission intensity of Longkou Nanshan

quota of the non-ferrous industry. Aluminium Rolling New Material Co. Ltd. is 0.52 t CO e The coverage of occupational health and safety 2

/t product. management system certification such as ISO 45001 and

Coverage rate of ISO 50001 certification is 66.6%.The carbon emission intensity of Plate Company is

The direct and indirect greenhouse gas emission carbon Cooperation Win-win partnership for benefiting cooperation.0.58 t CO2e /t product.footprint of products throughout the full life cycle was

transparently disclosed by the responsible company as Served as a director and a member of China Nonferrous Metals Industry Association Aluminium Branch and

the first one in the industry. other associations

5 6About This Report Good morality towards perfection

Accumulated hills towards mountain.The Company has ranked 429th on the Top 500 Enterprises in China in 2021. About

Nanshan Aluminium

Founded in 1993 and successfully

went public at the Shanghai Stock Exchange

on December 23 1999 (trading code: 600219)

Shandong Nanshan Aluminium Co. Ltd. is the only

large joint-stock company in the world with a complete

aluminium industrial chain production line including

thermoelectricity - alumina - electrolytic aluminium -

casting - (aluminium profile/hot rolling -cold rolling - foil

rolling/forging) in the same local region. At present the

Company is in the leading place of aluminium

processing industry in China regarding the scale and

the benefit with annual processing capacity of

about 1.275 million tons.

7 8About This Report Good morality towards perfection

Accumulated hills towards mountain.Industrial Distribution

With 30 years of hard work by all employees Nanshan Aluminium has become the world's only aluminium processing At present the main production bases of Nanshan Aluminium include Nanshan Thermal Power Plant Donghai Thermal

enterprise with complete industrial chain within short reaching. By extending the upstream and downstream industrial Power Plant Longkou Donghai Alumina Co. Ltd. Electrolytic Aluminium Branch of Shandong Nanshan Aluminium Co. Ltd.chains including improving and refining the upstream production process as well as R&D and making breakthrough for the Nanshan Aluminium Rolling New Material Co. Ltd. Nanshan Aluminium Profile Company Medium-thick Plate Branch Forging

downstream product technology the Company has established the business model based on the main industrial chain of Branch Technical Research Center Alumina Project in Indonesia etc. The Company has set up branches and overseas offices

electric power aluminium oxide electrolytic aluminium aluminium extrusion aluminium rolling forging and aluminium in Indonesia Singapore the U.S. Australia and other countries which extents regional business coverage and spreads the

intensive processing. Our customers include aircraft manufacturers automobile OEMs and well-known domestic and foreign reputation of Nanshan Aluminium all over the world.new energy vehicle manufacturers rail traffic equipment manufacturers communication enterprises food and beverage

enterprises etc.Longkou Donghai Alumina Co. Ltd. Electrolytic Aluminium Company

Schematic Diagram of Nanshan Aluminium Industrial Chain

Aluminium Flat Rolling New Material Co. Ltd. Aeronautical Material Industrial Park

9 10About This Report Good morality towards perfection

Accumulated hills towards mountain.Main Products

In recent years we have improved the product mix continuously and focused on high-tech and value-added

products. At present the Company's main products include the upstream products such as electricity alumina and

aluminium alloy slabs; downstream products such as extrusions rolled products and forgings which are mainly

used for processing aviation plates automobile sheets aluminium materials for new energy vehicles high-speed

trains railway freight trains plates for ships tank trucks house cars urban subways passenger cars electric power

tubes & rods aluminium foil stock high-grade aluminium-plastic composite boards power battery foil food

flexible packaging cigarette packaging pharmaceutical packaging air-conditioning foil can stock high-grade PS

substrate curtain wall aluminium alloy doors and windows containers and large mechanical structural parts etc.Aeronautical material

Auto-material

The Company produces forgings for fuselages (landing gears and their support beams cabin

Manufacturing car body sheets and structural parts including hang-on door frames etc.) engines (mounts casing parts of aeroengine etc.) and aircraft seats luggage

parts (doors and hoods) and wheel fenders etc. Nanshan Aluminium is racks etc.; the aluminium sheet is mainly used for fuselage skins wing ribbed plates etc.; it is the

currently the automobile sheet manufacturer with the fastest certification only extruded material supplier for civil aviation aircraft structural parts in China.progress the most certified manufacturers and the most complete certified

alloys in China. We are also the first qualified supplier of automobile sheet

materials in China to realize the batch supply of automobile sheets. As a

corporate champion of domestic automobile sheet industry the Company

actively promotes business cooperation or certification with customers

including a famous international new energy OEM NIO GAC New Energy

BAIC BJEV Audi Daimler GM BMW Nissan Hyundai Volvo Ford Jaguar Canning materials and food packaging

Land Roverand RIVIAN etc.aluminium

The Company produces bodies and lids for ordinary ring-pull cans food cans and bottles

Power battery foil for new and plates and sheets for lids and bottom caps of ring-pull cans. The products are mainly used

energy market in the field of ring-pull can packaging and for the production of ring-pull cans bottles etc. containing soft drinks tea drinks energy drinks protein drinks and beer. Now the Company is

not only in a leading position regarding the export of canning materials but also the largest

canning materials exporter in China with the annual export volume of more than 0.3 million

The Company has established cooperative relations with domestic leading enterprises tons accounting for 5% of the global total volume. The Company has brought the product

including CATL BYD CALB Gotion High-tech EVE etc. and became an important supplier of advantages into play by promoting the thinning process of canning materials as well as the

high-end aluminium foil for these customers; the Company has extended business with development and testing of new canning materials and cap-type materials and stabilizing the

domestic well-known enterprises with better future prospects and the sales volume increase supply of BPA-free materials. As the supplier of OEM customers such as Pepsi Cola Budweiser

significantly compared with that of last year; the proportion of orders of high value-added etc. and international canning giants such as Boer Crown Ardagh etc. the Company exports

products is further increased which effectively optimizes the order structure. products to regions including North America South America Europe etc.Relying on high quality aluminium foil the Company has established long-term strategic

cooperative relationship with many international well-known flexible packaging compa-

nies and became the main supplier of aluminium foil for aseptic packaging in China.High-quality materials for

civilian use

Rail transit

Nanshan SIPOT has independently designed researched and developed the 100 Series Ultra-low

Energy Passive Windows. According to the technical standards of passive ultra-low energy green

buildings the heat transfer coefficient U of the whole window is below 0.80W /(m2*K). The window As a long-term strategic partner of CRRC the Company has successfully

passed the Energy Saving Evaluation of Germany Passive House Research Institute in one attempt researched developed and delivered train body profile for CRHs with

with energy conservation level of phB which maximizes the thermal insulation and air tightness speed per hour of 200km/h 250km/h 300km/h 350km/h 380km/h and

performance of buildings effectively reducing the dependence on active mechanical heating or 500km/h

cooling systems and contributing to the strategic goal of carbon emission peak and carbon neutrality.

1112

MAIN

PRODUCTS

MAIN

PRODUCTSAbout This Report Good morality towards perfection

Accumulated hills towards mountain.Strategic Development Corporate Culture

Adhering to the strategic development ideas of "innovation-driven development high-end manufacturing and fine and As an enterprise with historical accumulation Nanshan Aluminium has planted the

intensive processing" Nanshan Aluminium will focus on high value-added products and accelerate the layout of aeronautical

material and auto sheets. Always being market- and problem- orientated the Company actively promotes supply-side concept of value into the heart of every employee. Having always adhered to the

structural reform cultivates new development momentum breaks down foreign technology monopoly fills the gap in the sustainable development idea of green manufacturing building a bright future for

domestic market and meets the needs of rapid development of domestic aviation industry and automotive lightweight enterprises and persisting in the Nanshan spirit of "Do Nothing but the Best" Nanshan

market.Aluminium guides leaders and employees to establish a scientific outlook on life and

value with Nanshan culture enhances team cohesiveness and strives to develop with

the enterprise and make progress with the industry with higher quality better service

and more cutting-edge products.Auto sheets Aeronautical materials

According to the quality of existing products Relying on the supply of aeronautical alu-

the Company implements benchmarking with minium alloy raw materials the Company

the products of competitors in the same indus- promotes the certification by major OEMs con-

try to improve the competitive edge; tinuously extends the industrial chain realizes

The Company strengthens the implementation the upgrading of technology and equipment

of project management system completes improves the added value of industrial chain

the organization structure and division of re- improves the international competitiveness of

sponsibilities of project teams and drafts and industry constantly and establishes a near-side

implements project schedule; machining and aluminium recycling center to improve the added value;

Pay attention to the development status of

new force of car manufacturers to develop po- As an aeronautical raw material supplier Nan-

tential customers; shan Aluminium boasts its complete alumin-ium industrial chain in the region and enjoys

Expand the scope of automobile OEM certifica- great advantages at the moment when the

tion for external body sheets improve custom- aviation market shifts to the Asian region;

er viscosity and increase customer confidence; Maintaining cooperative relationship with do-

Accelerate the market layout focus on the mestic large aircraftmanufacturerscontinuous-

expansion of domestic market share and pro- ly Nanshan Aluminium will improve the tech-

mote the layout in the Europe market. nology constantly and lay a good foundation

for the development of national aluminium

industry.Other flat-rolled products

Stabilize and strengthen the cooperation relationship with old customers learn about the product structure of

competitors in time and promote the development of new markets and customers.Promote the delivery of other flat-rolled products such as battery foil pharmaceutical foil; plates for house car

tank truck; plates for tooling and 3C plates for electronics ensure the scale of production and sales and maintain

stable order volume by means of improving service ensuring product quality reasonable price positioning R&D

innovation etc.

13 14Sustainable Development

Green manufacturing for bright future

The sustainable development is the

goal and direction of national development in

the new era the requirement of healthy develop-

ment of manufacturing industry and the only way for

the development of Nanshan Aluminium. As a high-end

processing and manufacturing enterprise Nanshan

Aluminium takes the initiative to shoulder the responsibility

of sustainable development after fully recognizing the

significance of good performance of environment society

and governance (ESG) to the Company's development. The

Company actively responds to industry requirements

and implements sustainable development through

research and determination of ESG key issues and

conduction of relevant training.Sustainable development Good morality towards perfection

Accumulated hills towards mountain.Concept of Sustainable Development Communication with Stakeholders

Actively advocates the business philosophy of "green energy conservation emission reduction and efficiency enhancement" It is crucial to the sustainable development of the of the Company one-to-one communication telephone

Nanshan Aluminium adheres to the sustainable development strategy fulfills the sustainability requirements of Company by maintaining good communication with consultation on-site visits online and offline meetings with

environmental social and governance and the highest standards in the industry and actively undertakes its social stakeholders and timely understanding the demands of analysts road shows etc. During the report period the

responsibilities. The Company will continue to increase investment in environmental protection and adopt advanced stakeholders. Nanshan Aluminium has established a regular Company participated in or led more than 100 rounds of

energy conservation and environmental protection facilities and technologies to realize resource recycling. As always the communication mode with stakeholders and continued activities for investor relations including holding the large-

Company will achieve environmental goals for production waste water recycling exhaust emissions noise comprehensive to strengthen the management of communication with scale investor meeting "Joint Efforts for Success".energy consumption of products etc. and fulfill the business philosophy of "energy conservation emission reduction green stakeholders. The Company organizes regular meetings of

development" through the improvement of infrastructure technological transformation and process optimization. the Boards of Directors and Supervisors and the general The Company has identified key stakeholder groups with

meeting of shareholders completes regular reports and close relationship. The ESG issues concerned by different

issues true and accurate semi-annual reports and annual stakeholder groups during the report period as well as the

reports. We communicate with investors in a timely in-depth main communication channels between the Company and

ESG Management and extensive manner through website and official account stakeholders are listed in the following table.Stakeholder Groups Issues of Concerns for Stakeholders Main Communication Channels

Nanshan Aluminium integrates the sustainable development In order to improve the overall ESG governance capacity

concept into daily management. The Company has set a Nanshan Aluminium has conducted various internal and Tax payment pursuant to the law

special work team responsible for tracking the performance external training for the Board of Directors and management Government/ Compliance management Periodic information reporting

of sustainable development of all departments; each including discussion on regulatory policies and development Regulators Combat corruption and uphold integrity Safety production

department establishes sustainable development indicators trends of mergers and acquisitions of listed companies insight Pollutant emission compliance

targets and plans every year according to its rights and and analysis of ESG development trends interpretation of

responsibilities and is responsible for the implementation dual carbon policy and suggestions on course of action Enterprise profitability Convening of general meetings

of plans and the assessment of targets. etc. These training courses have effectively promoted the Investors/ Information disclosure Regular reporting

development of ESG concept in Nanshan Aluminium and Shareholders Corporate governance Regular release of annual reports

provided strong support for the management regarding the

ESG mechanism and policy decisions. Enhance R&D capabilities

Fair competition

Strengthen supply chain management and

Suppliers Formulation of industry standard

cooperation

Supply chain management

Participate in industry events

Collect the customer's opinions

Business ethics

Customers Handle customer complaints

Product quality

Conduct customer satisfaction survey

Research Institute Scientific and technological innovation Industry-university-research cooperation

Social benefits Maintain communication with government

Society/ Public

Community development departments and social organizations

Summon conference of employee

Employee health and safety

representatives

Employee compensation and benefits

Employees Implement employee training Employee development and training

Collect and respond to opinions and

Employee working environment

suggestions of employees

Communicate with and learn from

Renewable energy

environmental protection departments and

Energy conservation and emission reduction

social organizations

Environment Improve HSE management Exchange advanced experience at home and

Discharge and management of waste gas

abroad

wastewater and solid waste

Improve production process

Management training on ESG

17 18Sustainable development Good morality towards perfection

Accumulated hills towards mountain.ESG Materiality Issues Awards and Recognition

Combining with macro policy guidance as well as attention and demands of stakeholders the Company has confirmed ESG key Nanshan Aluminium is committed to high-qual i ty mechanism based on “People-oriented” and encouraging

issues as follows analyzed the current situation of sustainable management in different aspects formulated corresponding sustainable development management. Creating economic diversified development of employees is the fundamental

development strategy and concrete measures made breakthroughs one by one and promoted the development of ESG value for enterprises and the society continuously is power of our sustainable development. So far sustainable

governance in multiple aspects by benchmarking with excellent enterprises in the industry and conducting interviews with the basis of our sustainable development; Advocating development has become one of the core competitiveness

various stakeholders. These issues will be disclosed in subsequent sections of the Report in response to stakeholder demands. environmental protection goal and business philosophy of Nanshan Aluminium Our commitments and achievements

of green and energy conservation is the direction of our based on sustainable development have been recognized by

High sustainable development; formulating perfect promotion many external institutions.Improve HSE management Compliance management

Employee working environment Employee development and training

Scientific and technological innovation Employee compensation and benefits External

Renewable energy Employee health and safety Recognition

Product Quality

Business ethics

Discharge and management of waste gas

wastewater and solid waste

Energy conservation and emission reduction

Community development Enterprise profitability

Social benefits Combat corruption and uphold integrity

Supply chain management Information disclosure

Formulation of industry standard Corporate governance

Fair competition

Low High

Materiality to the stakeholders of Nanshan Aluminium

Environmental Issue Social Issue Governance Issue

2021 Nanshan Aluminium Materiality

2021 Sina Finance Best

Corporate Governance (G)

Responsibility Award

The fifth excellent IR: Best Capital Market Communication

Award & Best Information Disclosure Award

1920

Materiality to Nanshan AluminiumCorporate Governance

Strive for continuous governance and

corporate enhancement.As one of the leading listed compa-

nies in China's aluminium industry Nanshan

Aluminium firmly believes that building a

high-quality corporate governance system is an

important measure to protect the stockholder's equity

and the Company's sustainable and healthy develop-

ment. While constantly improving the governance

architecture and mechanism Nanshan Aluminium

actively identifies monitors and responds to internal

risks pursues business ethics and integrity and

accelerates the Company's network informatization

process so as to promote the leap of governance

level.Corporate governance Good morality towards perfection

Accumulated hills towards mountain.Governance Structure Business Ethics and Anti-corruption

Nanshan Aluminium focuses on business ethics management and anti-corruption construction committed to building a fair

Nanshan Aluminium establishes a robust corporate Articles of Association. Under the background of actively and impartial business environment and upholds a zero tolerance attitude to irregularities for favoritism. So far the Company

governance structure. We strictly abide by the Company expanding the global market Nanshan Aluminium has formed an internal ecology with ethics and integrity actively promotes positive development of industry and society.Law of the People's Republic of China the Securities improves the governance mode synchronously enhances

Law of the People's Republic of China the Governance the diversification and specialization level of governance

Standards of Listed Companies the Stock Listing Rules of to carry out business orderly and deeply empowers the

Shanghai Stock Exchange and other normative document Company's future development. Besides the Company Code of business ethics

requirements and formulate the Articles of Association. also strengthens the participation of the Board of Directors

The shareholders meeting Board of Directors Board of and Professional Committees in many issues according to By adhering to the business philosophy with law abiding honest and high-quality The business ethics

Supervisors and the top management perform respective the laws regulations and actual operation status so as to service as the core Nanshan Aluminium strictly abides by national and regional laws training in report period

rights and obligations independently make decisions maintain the interests of shareholders and the Company. and regulations such as the Company Law of the People's Republic of China Anti-unfair

and operate in accordance with the law according to the Competition Law of the People's Republic of China and Anti-monopoly Law of the

People's Republic of China. The Company has released system procedure documents covers100%

such as Management Procedures for Labor and Business Ethics Hazards Management employees which

Procedures for Enterprise Merger and Acquisition Management Procedures for Clean successfully prevent the

Governance and Employee Handbook and defines the code of business ethics of leaders violations to business

Board of Directors and employees in daily work such as honest procurement and operation privacy and ethicsidentity confidentiality labor rights and interests improper income and diversification.We continuously strengthen system supervision so as to vigorously maintain the

principle of fair competition and the interests of company and shareholders.In order to control and manage the business ethics hazard related to operation Nanshan Aluminium formulates the

Management Procedures for Labor and Business Ethics Hazards . All employees shall accept the Company's educational

training periodically according to the procedures. In addition the Company carries out identification evaluation and control

of business ethics hazard every year so as to evaluate the performance in business ethics. The business ethics training in

Audit Committee Remuneration and Nomination Strategy Committee report period covers 100% employees which successfully prevent the violations to business ethics. Assessment Committee Committee

Board of Directors and Committee of Nanshan Aluminium Anti-corruption management

Nanshan Aluminium fights against corruption resolutely takes a

While fulfilling the sustainable development Nanshan we are committed to establishing a pluralistic inclusive sound internal control system as the cornerstone and establishes a

Aluminium focuses on the diversity of talent background professional and compliant Board of Directors and perfect management mechanism of anti-corruption such as Man-adheres to the employment philosophies of “Emphasizing senior management talents team and accept different agement Procedures for Clean Governance and Market Manage-education background and capability arranging posts individuals regardless of gender age major and educational ment System. The Company establishes a standard and normalized

according to talents and making employees seek their background. By the end of this report period the Board of operation process. All departments shall control the responsibilitiesproper jobs” and introduces technical backbones and Directors of Nanshan Aluminium is composed of 9 directors through self-inspection and correction periodically accept and as-

management elites both at home and abroad in many ways. wherein female directors account for 22% and independent sist the Group and the Company's review on ledger and compliance

When building the corporate governance architecture directors account for 33%. and ensure the normalization of work process. For any behaviors

violating to the national laws and regulations the Company's rules

and systems or damaging the Company's image and interests the

Discipline Inspection Department will focus on investigation prose-

cute or transfer to judicial authorities in the light of circumstances

In 2021 the Company held 11 with the attendance rate of and 52 proposals approved and timely report to the Chairman or the Board of Directors.board meetings directors of after deliberation.In order to create an honest clean and anti-corruption business cul- Anti-corruption training of Nanshan Aluminium

11 100% 52 ture environment Nanshan Aluminium organizes anti-corruption training for employees periodically publicizes and implements the policy and system and conduct assessment so as to enhance the

employees' understanding on anti-commercial bribery and further

improves their compliance awareness.In order to implement the Aluminium Stewardship Initiative (ASI) Performance Standard (PS) and Chain of Custody (CoC)

review we employed the third-party certification agency to review and confirm the Company's clean governance in this report

period. Corporate management conforms to the document requirements and standard and internal clean governance has

achieved landmark effect.

23 24Corporate governance Good morality towards perfection

Accumulated hills towards mountain.Reporting and complaint mechanism Risk identification

So far Nanshan Aluminium has established a complete risk identification process to identify the internal/external potential risks

The Company encourages employees to report al l control laws and regulations work style and benefit transfer. and make quick response. We carry out a series of effective risk response by defining the key risk points of internal operation

behaviors violating to business ethics or damaging the We focus on protecting the confidentiality management of external macropolicy risks and the foreign exchange risk of international settlement through special audit and daily risk

Company's interests so as to find and treat the potential informants arrange special personnel to handle and record identification.hazards. The Company establishes an internal report and the reports strictly prevent the leakage and dissemination

complaint system formulates Management Procedures of informant's identity and reporting materials prohibit and

for Employee Complaints (Appeal) publicizes the report punish the act of retaliating against informants and request

channel periodically checks the complaint box and email the judicial organ to investigate the legal responsibility External risk

box investigates and treats relevant issues such as internal according to law when necessary.We continuously evaluate

the recent performance in produc-

tion capital flow employee health To timely know the latest important

Complaint box and safety ecological environment policy information and trend such as Investigation community cooperation and hu- customs taxation import and export

Complaint channels Complaint email and gathering for man rights protection judge the technological innovation and project dec-

box/telephone evidence probability and severity of internal laration we keep close communication

risks based on the current gov- with government sectors such as the Na-

ernance measures and response tional Development and Reform Commis-

mechanism determine the priority sion (NDRC) and Ministry of Industry and

of key risks and carry out risk man- Information Technology (MIIT) summa-

agement pointedly. By periodically rize and analyze the industrial policies

Related department monitoring the internal risks we identify and report the potential risks to

Issue the treatment result Reviewed by Colleagues keep updating the risk conditions relevant departments and leaders in time general manager and establish a long-term mecha- and actively promote the risk control of

Party concerned nism of risk audit and evaluation. next step. Furthermore we organize feasi-

bility evaluation on the new development

projects and provide policy analysis and

Complaint/appeal investigation process judgment.Internal risk To minimize the risk of exchange rate fluctuations we settle and sign orders

Risk Management with USD EUR and other foreign curren-cies in foreign trade activities; with regard

to overseas purchasing we collect foreign

currencies for settlement to reduce the

foreign exchange loss; we also entrust

A good risk control system is the key to guarantee the normal In the beginning of 2021 the Company organized relevant financial companies to mark the market

and orderly operation of an enterprise. The top management departments to fully analyze the internal/external factors handle the spot foreign exchange settle-

and supervision departments of Nanshan Aluminium pay that may affect the strategic direction and objectives ment and sale less in few times effective-

high attention to risk control incorporates risk management requirements and expectations of interest parties ly smooth the exchange rate fluctuation

into corporate culture core business activities and environmental factors and compliance obligations and carry out forward foreign exchange

decisions strictly abides by the listing rules of Shanghai identified the internal advantages and disadvantages settlement and sale thereby reducing

Stock Exchange implements risk management policy and external potential risks and opportunities with SWOT matrix the exchange rate risk.establishes an integrated overall risk management system analysis method and formulated the Risk and Opportunity

with the Control Procedures for Risks and Opportunities Identification Form . Besides the Company evaluated the

as the basic system and the Project Risk Management risks according to risk evaluation criterion determined

System Management Method for Supplier Risk Evaluation the risk level formulated and implemented corresponding

Management Method for Sales Service Risk Evaluation and measures and evaluated the effectiveness in the end of Risk monitoring

Management Method for Product Inspection Effectiveness the year. The evaluation result showed that all risk control

Risk Evaluation as the supplementary. The Company actively measures were effective and the Company's risk control To further strengthen the risk management the Company audit covers the whole company so that all subsidiaries

identifies monitors and responds to the risks in all operation system worked well. carries out risk evaluation and audit periodically. It can complete circular audit within a year. Besides the

processes and links so as to minimize or avoid the risk formulates annual audit plans (including overall audit Company establishes a closed-loop tracking mechanism

impact. special audit and joint audit) which will guide the monthly for internal risk monitoring collects all audit items results

work after being approved by the Board of Directors. The and rectifications every year tracks the rectification

financial revenue/expenditure and economic activities of all effect of different departments and prevents financial and

departments holding/joint-stock companies subsidiaries operational risks.and overseas offices are supervised by the system and the

25 26Corporate governance Good morality towards perfection

Accumulated hills towards mountain.Investor Relations Information Security

The Company keeps a close connection with capital market and strengthens the relationship with investors through deep Nanshan Aluminium incorporates information safety into drills eliminate potential hazards and actively fill the risk

communication. The Company has a special Securities Department in charge of information disclosure of regular and interim the major control field. In order to guarantee the network loopholes.reports and keeps a timely deep and wide communication with the investors through regular/interim announcement information security the Company has established a safety

performance illustration meeting shareholders meeting analyst online/offline meeting and roadshow. We are committed to perception platform to monitor the enterprise internet Owning to the joint forces of all departments Nanshan

creating an efficient and smooth communication mechanism and establishing good relationship with investors. access and data center server treat potential hazards timely Aluminium has obtained GB/T 23001 informatization

and form a platform safety operation process through people and industrialization management system certification.involvement risk host treatment terminal site treatment Besides the Company's BPM business process approval

unblock and risk query. Computers and servers at intranet system and website system have passed the Level II Multi-

Investor activities Achievements terminal have been equipped with antivirus program so level Protection Scheme (MLPS) evaluation. So far we have

as to identify and eliminate the risks of threats bogusware improved the digital operation service capacity in phases.and spyware. We also cooperate with government sectors In the future we will empower the Company's value benefit

Engaged with and covered to carry out network safety inspection and attack-defense through information technology.nearly 130 domestic The number of large/

institutions medium-sized public

offering institutions is

Carried out more than 100 increased from 15 to 23

investor relationship activities

The number of rating agencies

Organized reverse roadshows is increased from 6 to 11

in Beijing Shanghai and

Shenzhen Research report: 13

Participated in seller's

institutional investment

strategy meetings

Investor activities and achievements

27 28Product Quality

Craftsmanship for excellent quality

Nanshan Aluminium always adheres

to the development concept of "quality first"

and high-standard quality management system

since its founding and strengthens the product

quality control. The Company insists on the principle of

“customer-oriented” focuses on customer requirements

respects the customers' opinions and suggestions

constantly improves the customer service capacity

improves the after-sales service guarantee system

strengthens scientific and technological development

and innovation and has been recognized by all

sectors of society in brand competitiveness

development quality and product innovation.Product quality Good morality towards perfection

Accumulated hills towards mountain.Product Quality System certification

The Company strictly controls the product quality and has been certified by ISO 9001 quality management system ISO/TS

22163 railway system quality management system IATF 16949 automobile quality management system ISO 22000 quality

The Company constantly optimizes the quality management mechanism consolidates the quality management foundation safety management system ISO/IEC 17025 laboratory management system GB/T 29490 enterprise intellectual property

enhances the quality management awareness of all employees and promotes capacity construction. The Company has system seven classification societies (China Norway U.S. Japan British France and Korea) National Aerospace and Defense

formulated Quality Management System of Shandong Nanshan Aluminium Co. Ltd. to strengthen the quality monitoring on Contractors Accreditation Program (NADCAP) special process certification of Performance Review Institution (PRI) such as

all production links that may affect product quality and guarantee the outgoing product quality. thermal treatment nondestructive testing chemical treatment and testing laboratory and PED&AD2000 Pressure Equipment

Directive Certification.Management system In the report period a series of product certifications have been obtained involving many fields such as automobiles and

aerospace.The Company has established a three-level quality management architecture to monitor the production quality defines the

rights responsibilities through hierarchical management and ensures the product quality. In 2021 the certification of auto The Company actively In 2021 the company The Company was approved

sheet was mainly the external sheet. promoted the certification carried out skin sheet as the supplier of COMAC

The Company passed the external and supply of suppliers' certification project for 2026 and 7055 alloy bending

sheet material certification of in-plant parts with stable 2024 and 7075 aircraft profiles and became the

Quality Management Quality Management Shift leaders directors production managers and head of Quality Guangzhou Automobile Group Co. quality realized bulk supply with COMAC based on only domestic (the third in Department Department of subsidiaries Inspection Department Ltd.、Beijing Automotive Group、 of world-famous OEMs such National Sheet Application the world) supplier with the Great Wall Motor Company Limited as Audi A6 BMW 5 series Demonstration Platform supply capacity of bending

Be responsible for the quality and NIO successively which marks Be responsible for daily monitoring and GM Cadillac and RIVIAN and

Project. So far the project profile.Be responsible for daily quality inspection

management and quality that the external sheet technology inspection on quality management of further expanded the brand

has been implemented

special inspection casual inspection and final smoothly and entered the

monitoring of the whole product of automobile aluminium sheet has different operation places and guarantee awareness and market share inspection and report timely when finding

realization process broken through the monopoly of

acceptance link.the product quality of Nanshan auto sheet. abnormities foreign competitors

Quality management architecture

The Company focuses on production process management and strictly controls the product quality of all links. The Company The Company completed With regard to Airbus The Company passed the

manages and controls three stages such as raw material entry production process and the packaging and warehousing of the certification of six certification the Company certification project of Boeing

finished products. The Company defines the production process responsibilities. All departments shall cooperate with the furnaces of 7050Φ600 cast submitted three project data 2024-T3511 extruded profile

production and Quality Management Department and bear corresponding responsibilities. Besides the Company links bar production passed the packages in 2021 including (thickness:1.5-4 in.) and audit of Safran obtained the SEO2026 certification 2024-T8511 extrusion profile

the quality assessment results with employee performance by formulating quality management assessment system and production verification of project data package and (thickness: 2.7-3.8 in.) approved

guarantees the effectiveness of quality management system. backward extrusion process completed the delivery of as qualified suppliers and became

of 7050 extruded rod and machining profile; SEO/ the only domestic aluminium

met the conditions for CEO7150 data package and profile supplier certified by

bulk supply of forward and A330 certification project Boeing

Raw material entry Production process quality Packaging and warehousing backward extrusion. data package

management management management of finished products

Product certification of Nanshan Aluminium in 2021

The incoming raw/auxiliary materials QC staff shall carry out special casual QC staff shall conduct casual

shall be checked based on product and final inspections on intermediate inspection on the products on a

standard and inspection standard. products and finished products regular basis in finished product Responsible production

Inspection and Analysis Report of Raw If the quality is abnormal rectification warehouse;

and Auxiliary Materials shall be issued. shall be made immediately to guarantee Issue the inspection report Aluminium Stewardship Initiative (ASI) ASI CERTIFICATION

Warehousing formalities can only be the product quality timely and be responsible for CHAIN OF CUSTODYis the only comprehensive voluntary STANDARD

handled after the acceptance of raw/ Intermediate products after inspection the inspection result sustainability criteria for the global P R E S E N T E D T O

auxiliary materials. shall be stamped with inspection seal be- SHANDONG NANSHAN aluminium value chain and the ESG ALUMINUM CO. LTD.If defective products are found during fore being transferred to the next process framework is totally in line with the widely C E R T I F I C A T E A S I C E R T I F I C A T I O N A S I A C C R E D I T E D N U M B E R S T A N D A R D L E V E L A U D I T O R6 2 C H AI N O F C U S T O D Y F U L L D N V G L

production the using department ( V 1 2 0 1 7 ) C E R T I F I C AT I O NAfter inspection the inspector shall pre- concerned ESG investment philosophy. D A T E O F I S S U E D A T E O F E X P I R Y C E R T I F I E D S I N C E7 J AN U AR Y 2 0 2 0 6 J AN U AR Y 2 0 2 3 7 J AN U AR Y 2 0 2 0

shall inform the center laboratory for vent the unqualified finished products A U T H O R I S E D B Y C E R T I F I C A T I O N S C O P E

inspection and confirmation again. Shandong Nanshan Aluminium Co. Ltd is Headquarters: Shandong Nanshan Aluminium Co. Ltd. (Nanshan Industrial Park Longkou City Yantai from warehousing and delivery City Shandong Province China) H.Q. functions. The the first enterprise in the whole industry following sites/facilities are included in the scope: Site 1: Donghai Industrial Park Longkou City Yantai City Shandong Province China. Included facilities:

(1). Longkou Donghai Alumina Co. Ltd. (2).

chain that has passed ASI certification for Shandong Nanshan Aluminum Co. Ltd. (3). Aluminium Stewardship Initiative Ltd Shandong Nanshan Aluminum Co. Ltd. (4). Plate ACN 606 661 125 Australia Company of Shandong Nanshan Aluminum Co. Ltd. info@aluminium-stewardship.org

Site 2: Nanshan Industrial Park Longkou City Yantai

Quality Management Flow Validity of this Certificate is subject to continued City Shandong Province China. Included facilities: the first time and successfully obtains the conformance with the applicable ASI Standard (1). Longkou Nanshan Aluminum Rolling New Material and can be verified at www.aluminium- Co. Ltd. (2). Longkou Nanshan Aluminum Rolling stewardship.org New Material Co. Ltd.The Company strictly controls the release of products and adheres to the three principle in quality control that is the Company ASI PS performance standard certificate

does not accept unqualified products does not manufacture unqualified products and does not flow out unqualified products. The and ASI CoC standard certificate thereby ASI CoC standard certificate Certificate of GB/T 36132- ASI PS performance standard certificate

Company has established two-level organizations including the unqualified product review committee and the unqualified product improving the Company's green value. 2018 General Principles for

review team which adopt "8D" and RCCA methods to analyze the causes and formulate corrective measures according to different Assessment of Green Factory

quality problems so as to ensure that all quality problems are managed in a closed loop.

31 32Product quality Good morality towards perfection

Accumulated hills towards mountain.R&D and Innovation

Achievements

Participation in formulating national and industry standards Patents

Technical research and development

In 2021 the national standard Wrought Alu- The Company obtained 46

The Company adheres to facing the technology frontier and industrialization production bottlenecks and major economic minium Alloy Sheets Strips and Foils for Deep authorized patents in 2021 in-

activities and indexes during innovative development and actively carries out scientific research by relying on various talents Cans drafted by the Company was published; cluding 11 invention patents;

experimental platforms and college-enterprise cooperation. The Company's R&D project management is implemented

according to the Management Measures of Nanshan Holding Technology Project with the process as follows: The industrial standard Methods for Chemical The Company accepted 36 Analysis of Aluminium Electrolyte. Part 4: De- patents in 2021 including 19

termination of Alumina Content. Gravimetric invention patents;

Method drafted by the company was pub-

lished; Aluminium Alloy for Avia-

Application Project approval Management and implementation tion and Production Process

The national standard Renewable Material for Thereof won the Second Prize

Wrought Aluminium Alloys and Renewable of Patent of Yantai City.The project implementation unit After preliminary examination and 1. Technology Center is responsible for the Materials for Pure Aluminium were published;

shall submit the project application summary the Technology Center organization management and coordination

based on feasibility study fills in the shall organize project review group of scientific and technological projects. The seven industrial standards such as Meth- Cooperation Projects

Application Report for Approval of for audit. The expert review group is ods for Chemical Analysis of Bauxite. Part 19:

Scientific and Technological Plan composed of 3-5 experts of relevant 2. The Financial Department of project un- Determination of Loss on Ignition. Gravimeric In 2021 the Company success-

Project and Summary of Scientific fields. Enterprises shall formulate im- dertaker is responsible for the finance of Method Aluminium and Aluminium Alloy fully applied for one National

and Technological Plan Project and plementation plans based on the opin- scientific and technological funds. Foils for Household and Determination of Key Research and Develop-

submit them to the Scientific and ions of expert panel and Technology 3. The project undertaker shall strictly imple- Chemical Content and Physical Properties of ment Project and two Key

Technological Management Depart- Center shall sign a planning statement ment the research objectives contents pro- Aluminium Fluoride. Part 15: Free Alumina Research and Development

ment of Technology Center. with the project leader for contract gress and assessment indexes in contract. Content were published. Projects of Shandong Province

management. The project shall be ap- jointly with scientific research

proved in the beginning of each year. 4. The project implementation report shall universities and enterprises.be submitted to the Technology Center

every half a year.Conclusion and acceptance Project fund Intellectual property

management management Recycled aluminium recycling and Intelligent process control Traffic lightweight aluminium

development project technology project upgrading project

1. The project undertaker shall fill in the conclusion R&D Fund for science and technolo- The scientific and technological

application form. Technology Center shall issue the gy projects shall be established and achievements related to state and

project acceptance notice and determine the accept- the annual amount of fund shall be company secrets in the project

ance mode after preliminary examination of materials. determined according to the project shall be implemented according In 2021 the Company applied the key pro- 2017 National Key Research and Develop- In 2021 the Company continuously adhered

application funds. The funds shall to the Law of the People's Repub-

2. The project acceptance group is made up of project jects of "solid waste utilization" in National ment Project "intelligent process control to the cooperation mode of “industry-uni-be planned and managed by the lic of China on Guarding Statemanagement personnel and scientific and technolog- Key Research and Development Project technology of aluminium/copper strip based versity-research” and successfully applied Technology Center uniformly. Secrets and the Company's confi- jointly with University of Science and Tech- on industrial big data" undertaken by the 2021 Key Research and Development Project of

ical experts familiar with project situation and techni- dentiality rules. nology Beijing Institute of Process Engineer- Company as the project leading unit suc- Shandong Province (major scientific and tech-

cal fields and responsible for the technical approval ing Chinese Academy of Sciences and DELTA cessfully passed the acceptance of the Minis- nological innovation project) "research and de-

of acceptance materials. ALUMINIUM. The project obtained the fund try of Science and Technology in 2021. In the velopment of key technologies for preparation

from the central government. The project project a demonstration line of industrial and intelligent processing of light alloy and

3. The project acceptance result is divided into: successful ac- period is started from October 2021 to Sep- big data platform for the whole production composite materials for key industries" jointly

ceptance conclusion reconsideration and acceptance failure. tember 2024 realizes integrated production process of CPS and a demonstration base of with Shandong University CRRC QINGDAO

of aviation aluminium sheet hot rolling - cold intelligent process control technology based SIFANG CO. LTD. and SHANDONG YANKUANG

rolling - continuous annealing heavy plate on industrial big data were built and the LIGHT ALLOY CO. LTD. The Company success-

thermal treatment and accurate control of comprehensive production efficiency of the fully applied 2021 Key Research and Develop-

The Company has established the National Aluminium Alloy Pressure Processing Engineering Technology Research aviation aluminium sheet/heavy plate com- enterprise's production demonstration line ment Project of Shandong Province (Science

Center which is the only national engineering technology research center. More than a dozen national standards drafted position - organization - structure - perfor- reached 76.57% with an increase of 20.58%; and technology demonstration project) "alu-

by The Company have won the "Technical Standard Excellence Award" of the National Non-ferrous Metal Standardization mance establishes the industrialization pro- The comprehensive manufacturing cost of minium-based traffic lightweight science and

Technical Committee. Besides the Company actively carries out industry-study-research cooperation and realizes the duction system of aviation aluminium sheet/ aluminium alloy coil decreased 29.10% and technology demonstration project" jointly with

organic combination of mechanism theory and mass production through new technical development and experiments with heavy plate and supports the high-quality the Company's intelligent production level Shandong Hongqiao Advanced Materials Co. development of secondary aluminium in- was further improved. Ltd. Advanced Materials Institute Shandong

Northeastern University Central South University Northwestern Polytechnical University and General Research Institute for dustry. Academy of Sciences and Suzhou University.Nonferrous Metals. By the end of report period the Company has established 5 national and 7 provincial R&D platforms. The The project period is started from October 2021

Company won the honors of "National High-tech Enterprise" "National Innovative Enterprise" by the Ministry of Science and to December 2024.Technology as well as the "Shandong Provincial Governor Quality Award".

33 34Product quality Good morality towards perfection

Accumulated hills towards mountain.Industrial informatization Intellectual property protection

The improvement of network informatization construction is increase the benefits. The Company constantly improves the intellectual property departments uniformly according to the Management

beneficial for assisting the Company to manage the finance management system while focusing on innovation and System Manual handles the patent review responses

human resources quality management and information Currently we have completed the submission and docking development. We formulate the Management System payment inventor and patentee change and does well

security from multiple perspectives. The Company has of to-do-list of all departments through business process Manual according to the Patent Law of the People's in patent archives management. To avoid the occurrence

made continuous investments in network informatization management (BPM) so as to realize transformation Republic of China Anti-unfair Competition Law of the of infringement and right protection incidents a patent

to actively promote digital transformation. We establish and upgrading from offline centralized procurement to people's Republic of China Norms for the Administration retrieval shall be made for the technical disclosure before

an informatizat ion- industr ial izat ion management internet purchasing and efficiency improvement. With the of Intellectual Property of Enterprises Guidelines for the patent application to ensure the technical disclosure

framework system based on the successful informatization- intelligent park as an objective Nanshan Bintan project the Administration of Intellectual Property of Industrial contains no infringement point. Before a paper is published

industrialization integration cases of excellent enterprises in Indonesia has established an integrated information Enterprises and actual situation constantly standardize externally the duplicate shall be checked and reduced for

inside and outside the industry so as to guarantee the platform successfully developed toward group multi-factory the intellectual property management system improve the such paper to avoid the occurrence of infringement incident.planning promotion and coordinate linkage of strategy collaborative management and continuously improved the comprehensive capacity in intellectual property declaration

business technology and management reduce the cost and project improvement level in the process. protection and utilization encourage innovation avoid The Company cultivates the employees' awareness of

intrusion of other intellectual properties while protecting intellectual property comprehensively. It invites an agency

own intellectual properties accelerate the intellectual to provide more than 2 intellectual property trainings every

Integrated Information Platform of Bintan Park in Indonesia property transformation and improve the enterprise benefit year. In 2021 Nanshan Aluminium had a strict control of the

and practical productive force. intellectual property so no infringement or right protection

incident occurred.The Technology Center manages the patents of different

By taking large park network as the basis and production as the main line Bintan integrated information platform in Indonesia

has established centralized management system production management platform and dispatching center based on information

technology and realized heterogeneous system integration and IoT connection requirements through distributed application and

data cluster deployment. Trademark management

So far the platform has established a park centralized management system including human resource management supply chain

management financial management assets management engineering project management AD domain control BPM system and

all-purpose card system and built 16 core function modules for Indonesian park production such as production management two- Trademarks belong to intangible assets of the enterprise. Nanshan Aluminium strictly During the report period Shan-

ticket management operation monitoring equipment management and production report and integrates with the park centralized complied with the Trademark Law of People's Republic of China and developed its internal dong Nanshan Aluminium Co.management system so as to break through the barrier of business segments and realize interconnection and digital management of trademark management system based on its own conditions. The Company arranged a Ltd applied the registration of 1

equipment data and system. new trademark. special post for trademark management and use review as well as active right protection

against the infringement behaviors in the market. To protect the enterprise's legal rights and

As the twelfth special economic zone in Indonesia the park has received a great attention from local government and customs

in Indonesia. The Indonesian customs takes the park as a trial project of the whole special economic zone and promotes the interests the Company collaborated with other affiliates to clearly define the ownership

informatization of supervision initiatively. The park project establishes a customs supervision system based on the integrated reduce trademark conflicts and narrow the gap between rights. 1

information platform. So far the platform has passed the customs acceptance and put into operation which makes Nanshan

Aluminium become the only company successfully utilizing the customs online system.By the end of 2021 it owned

印尼园区信息化管控 31 effectively registered trade-marks in total.多端展示集成门户统一认证异构系统集成决策层决策支持分析财务管理分析生产过程监控生产信息发布

浏览器 ERP 人力资源管理 供应链管理 财务管理 销售管理 资产管理 工程项目管理 ERP-NC 系统 31

氧化铝 MES 电厂生产管理 煤制气厂生产管理 港口生产管理 物流管理 文档管理计划作业建设物资文档维护

生 生 生 运 异 库 BPM 系统产产产行常存计调执监预管理货地磅闸口运营物资目录管理划度行视警理

手机 核 办单 结算 销售物资 文控管理心 氧化铝 DCS应用层 应用 调度指挥中心设质安能生生备量环源产产

管 管 管 管 实 统 生产运行监控 核心指标监视 电厂 SIS理理理理绩计生产分析可视化现场视频监控

PDA 智能一卡通 考勤管理 消费管理 门禁管理 通道管理 卡务管理 人事资料 煤制气 SIS信息安全保障身份验证权限分配日志追踪数据容灾汽车衡

数据层 生产数据 质量数据 设备数据 计量数据 组织数据 ... BI 决策支持

大屏展示 感知 DCS/PLC/SIS 检验检测 感知 仪表仪器 SCADA 容器具 PDA 原物料 工人 AD 域控系统支撑层

保障大型园区网络、生产网络、应用网络、信息安全

系统配置/底层平台

35 36Product quality Good morality towards perfection

Accumulated hills towards mountain.Customer Service

Nanshan Aluminium has always attached importance to the Customers

guarantee of customers' rights and interests. It is devoted

to providing high quality services to customers and further The Company sticks to the concept of deep integration with the industrial chain. It adopts the cooperation mode of actively

optimizing the customer experience. To establish a complete constructing an interest community with customers and seeks to establish a long-term stable mutually beneficial and win-

customer management system the Company took a series win partnership with customers. It realizes the strategic cooperation and strives together for long-term development through

of measures in accordance with Process Control Procedure joint participation in R&D with customers.Related to Customer s Post-sales Service Control Process

Customer Satisfaction Measurement Procedure Product Main process of customer service

and Service Management Regulations and other system Cooperation with customer France SAFRAN Cooperation with customer CRRC Qingdao Sifang Co. Ltd.documents to normalize the customer service process and

improve the customer service satisfaction. Customer satisfaction SAFRAN is a high-tech cross-border group company. It is also The high speed maglev traffic system is a key special topic

a world-class aero-engine and equipment manufacturer for advanced rail traffic in the National Key Research and

According to the Customer Satisfaction Measurement Proce- and one of the Global Fortune 500 companies. Nanshan Development Project of the "13th Five-year Plan" by the

Customer communication dure Nanshan Aluminium regularly conducts the customer Forge Company focuses on the R&D of forging products for Ministry of Science and Technology. On July 20 2021 the opinion and satisfaction investigation. The investigation di- A320/321 top-side and downside stay bars. The forgings first set of high speed maglev traffic system with a design

mensions cover the product quality delivery period service have successfully passed the trail-manufacture and been put speed per hour of 600 km successfully left the production

Smooth communication with customers is the bridge to establish attitude and response to problem. The Company summariz- into mass production upon approved by the material lab of line in Qingdao China. The high speed maglev train has

the deep trust of customers. In addition it is able to systematically es the result scores of investigations analyzes the shortcom- SAFRAN. stricter requirements on aluminium materials. Nanshan

display the advantages of the Company's products and enhance ings and organizes relevant departments to take corrective Aluminium started to participate in the R&D of aluminium

the brand influence. Nanshan Aluminium participated in the "ALU- measures against the investigations.During the two years from the contract signature of both alloy materials for train body of the project by CRRC Qingdao

parties to successful trial-manufacture of the first forging

MINIUM CHINA 2021" and held a new product release conference Sifang Co. Ltd. since 2018. The aluminium alloy 6A01 6005A Nanshan Aluminium is further strengthening the commu- multiple sectors including review research and testing have

titled "Build a dream with ingenuity and create a bright future". 6106 and 6082 used in the project had special requirements nication with customers optimizing the service process been completed. The Company's team has been constantly

During the conference it displayed its achievements and develop- on the microstructure tensile property fatigue performance reasonably detailing the production schedule improving looking for solving and improving problems in R&D

ment concept in multiple fields including aviation automobile exfoliation corrosion performance fatigue corrosion the production process lifting quality and increasing effi- production and testing to meet the customer's requirements

packaging material etc. to customers and peers. The Company performance stress corrosion performance and weldability. ciency and creating the scale benefits; in storage and trans- for products. The successful trial-manufacture of the forging

won the high recognition of attendees with the advanced market portation the Company strengthens the coordination with for the side stay bar is an outcome of the elaborate R&D Nanshan Aluminium participated in the R&D of the high

layout leading development concept and strong social responsi- logistics company dispatches more vehicles for delivery and and operation of Nanshan Aluminium. In addition it fully speed maglev train with a speed of 600 km/h. In this

bilities which further improved our industry reputation and brand follows up the transportation of goods ensuring delivery proves the Company's ceaseless emphasis on technology project we broke through multiple key technologies

image. within the customer's delivery period. and improvement of quality monitoring and testing. The solved many technical problems and mastered the core

Nanshan Aluminium devotes itself to continuous improve- Results of customer satisfaction investigation successful trial-manufacture of stay bar will significantly process technology for crushing irregular-shaped and cross-

ment and structural optimization. It strives to provide the improve the product credibility and brand influence of section aluminium alloy materials. We also acquired and

most considerate services highest cost performance and 97.6 the forging company as well as the share of its products in mastered the mass production capacity of high performance 96.9

most stable and reliable product quality. Furthermore it is domestic and foreign markets. aluminium alloy materials for train body under industrial

intended to provide the most suitable and perfect product 95.7 conditions.solutions to customers. The Company knows about the cus-

tomer's demand for quality improvement through email 94 Privacy protection

telephone communication face-to-face visit talkfest etc. It Responsible marketing

also adheres to good communication with customers and Nanshan Aluminium attaches great important to protection

responds to and properly handles their demands timely in of customer's privacy in strict accordance with Cybersecurity Nanshan Aluminium strictly abides by the related national

accordance with Process Control Procedure Related to Cus- Law of the People's Republic of China Personal Information laws and regulations and strives to build up a fair just

tomers Post-sales Service Control Process etc. Packaging Aviation materials Civil materials Overall Nanshan Protection Law of the People's Republic of China and and open business platform. During the cooperation with

materials for auto sheets Aluminium other related laws. We developed and implemented a customers the Company signed the Integrity Agreement

To protect the customers' rights and interests the Company series of systems including Rules for Implementation of with some customers. These customers were asked to

has formed a complete set of customer complaint and feed- Commercial Secret Management Rules for Implementation strictly abide by the related requirements of the agreement

back treatment process. Such process ensures the smooth of Documentation Management and Control Procedure in cooperation. The Company also participated in the "anti-

complaint channel timely acceptance and fair treatment. for Production Process . These systems stipulate the hunting" (integrity awareness and execution) training

Once receiving the customer's feedback or complaint about contents and scope of commercial secrets and confidential of some customers and accepted the integrity and site

quality problems we will collect more information such as responsibilities of personnel at all levels. The Company has review irregularly initiated by the customer's Supplier

the performance of related materials in use and law of prob- established a confidentiality organization (confidentiality Management Department.lem from the customer as possible. And then we will deliver office) for the unified management of related confidential

such information to the Production and Technology Depart- documents and data. In addition to protect the customer's

ments for investigation and analysis. Finally we will negoti- privacy and our own rights and interests we signed the

ate with the customer based on the investigation conclusion corresponding Confidentiality Agreement with some

and determine the treatment scheme. Nanshan Aluminium participated in "ALUMINIUM CHINA 2021" customers during the cooperation thereby reducing the risk

of information disclosure.

3738

Customer satisfaction

survey

Customer's after-sales

service

Product delivery

Process communication

Contract/order

implementation

Contract/order

endorsement

Customer requirements

review

Identification/

transmission/confirmation

of customer's requirement

Communication about

customer's requirementCarbon emission reduction target of Nanshan Aluminium

in 2030 Energy consumption quota

The carbon emission of electrolytic aluminium of the non-ferrous industry Low Carbon Production

8 Green manufacturing towards the peak Overall energy consumption carbon emissions and carbon neutralityt CO2e /t product of unit product

Being committed to building a green and

sustainable production system Nanshan Alumini-

um strictly abides by the Energy Law of thePeople's

Republic of China Law of the People's Republic of China

on Conserving Energy and other laws and regulations. We

utilize the technical means such as energy use monitoring

and energy conservation analysis to intensify the energy

consumption control and lift the energy utilization efficiency

from two aspects namely optimization of engineering technolo-

gy and energy consumption structure improvement. We guide

and urge all subsidiaries and production units to actively

implement the energy conservation and consumption reduction

measures and make an effort to build green enterprises and

plants in harmonious coexistence with the environment.Furthermore we actively respond to the strategy of "carbon

neutrality" and "carbon peak" and the Aluminium Steward-

ship Initiative (ASI). We develop an active emission

reduction target of greenhouse gas and set an example

for promoting the high quality and green develop-

ment of the industry.Low carbon production Good morality towards perfection

Accumulated hills towards mountain.Governance structure Training mechanism

Under the overall management of the energy conservation office Nanshan Aluminium has paid continuous attention to the emission standard of the industrial pollutants utilization of solid

of Nanshan Group we have established an energy conservation waste resources low-carbon sustainable development and some other key topics related to environmental management. We

control architecture featured with a clear hierarchy and explicit analyze and interpret the trend of ecological environment protection policies and regulation news as well as the development

responsibilities. The organizations at all levels coordinate in an trend of low carbon production technology in real-time. Through the systematic special training on low carbon and

inter-connected manner and cooperate with each other. The Group Energy

Conservation Office environmental protection we combine the management theory and practical operation of skills and convey the sustainable Group's Energy Conservation Department serves as the Overall development concept and green low carbon working method to all employees.Planning and Management Department. It is responsible for

supervising and managing the energy conservation of its sub- Nanshan Aluminium provides the systematic management knowledge related to the low carbon environmental protection to

sidiaries implementing the Company's all decisions on energy Responsible person for energy the employees. It also organizes the key personnel for environmental protection of the key energy consumption subsidiaries

conservation

management and checking the implementation of energy con- including Donghai Power Plant to participate in the training for carbon market capacity building of power generation

servation by all subsidiaries. The head of the Company works enterprises in Shandong Province the special training program of Beijing Zhonghuan Environmental Protection Technology

as the responsible person for energy conservation and takes Various production and operation subsidiaries Center for industrial green low carbon development and carbon emission management and green manufacture the workshop

charge of the management supervision and check of the energy Energy conservation group leader and deputy for development and application of carbon neutrality implementation route and other external trainings and workshops of

conservation of all subsidiaries. In all domestic and foreign pro- group leader various types. We guide employees' behavior for energy conservation and emission reduction and low carbon environmental

duction and operation subsidiaries we have assigned the group protection during the production and operation through the combination of theory and reality as well as the combination of

leader and deputy group leader for energy conservation. They method and practice.perform the daily energy conservation practice based on the Heads of functional departments and workshops

actual conditions of production and operation collect statistics Environmental protection theory training with the topic of

on and manage the energy consumption of their own companies low carbon development and green manufacture

and prepare the energy conservation planning and execution Energy governance architecture

plan; on the other hand we ask the functional department and

head of workshop of each subsidiary to strictly implement various energy conservation requirements in the principle of energy con-

servation and consumption reduction strengthen the energy conservation and utilization and summarize the scientific management

experience.In addition we set up a carbon check group and assign the general manager as the group leader general managers of the branches

and subsidiaries as the deputy group leaders and carbon check responsible persons as members. They constitute the check group and

verification group working in coordination. This arrangement helps us master our own current status of carbon emission realizes our

control of the total carbon emission and provides practical experience and data support for our subsequent management and trade of

carbon assets.Governance system

We support the implementation of the energy conservation and emission reduction target of Nanshan Aluminium based on a unified

orderly and efficient management system. Besides we integrate the management concept of "strictness meticulousness practicality

innovation constancy and alignment" in the whole process of energy management actively implement the energy conservation

and consumption reduction measures and reduce the resources consumed during production and operation. Through enhancement

of energy management improvement of energy management working system documentation and operating requirements and Training for energy consumption practice

implementation of the responsibility system for energy conservation target Nanshan Aluminium decomposes the consumption

indicators for resources energy and raw materials in layers. Finally it implements the management closed loop with the assessment

indicators including energy conservation plan management energy conservation foundation management energy conservation

system and assessment system construction construction of energy conservation organization and management system energy

conservation modification project etc.Nanshan Aluminium starts with various production sectors and efficiently and reasonably utilizes the energy resources. It adheres

to five basic energy conservation principles namely the combination of conservation priority and multi-energy complementation

the combination of energy conservation and consumption reduction and reducing costs and improving efficiency the combination

of source control and existing potential tapping the combination

of management in accordance with laws and regulations and policy Coverage rate of ISO

incentives and the combination of partly highlighting and comprehensive

promotion. Through its own positive efforts it passed the ISO 50001 energy 50001 certification

management system certification. Such certification covers the production

and energy management activities on the core production and operation

places of Donghai Thermal Power Plant Electrolytic Aluminium Branch of

Shandong Nanshan Aluminium Co. Ltd. Longkou Donghai Alumina Co. 66.6%

Ltd. Nanshan Aluminium Flat Rolling New Material Co. Medium-thick Plate

Branch and Nanshan Aluminium Profile Company.

41 42Low carbon production Good morality towards perfection

Accumulated hills towards mountain.Energy Management Modification for variable frequency control and energy conservation of fan in the melting furnace in the plate belt

casting workshop

Efficient energy management is an important sector to realize the green development. Nanshan Aluminium improves and

strengthens the fitness of energy use management by means of continuous energy consumption monitoring and energy Nanshan Aluminium implements the frequency converter modification on the motors of two melting furnace

conservation analysis. We also constantly lift the energy utilization efficiency in terms of production technology optimization combustion fans and two smoke exhaust fans in the third plate belt casting workshop. We change the condition that the

and energy consumption structure improvement and urge the production and operation subsidiaries to actively implement fan still operates at a high speed when the fire is off in the melting furnace which minimizes the energy consumption of

the energy conservation and consumption reduction measures. During the report period we start with the all-around energy motor and achieve the target of energy conservation and consumption reduction. After the modification is completed

management and realize the accurate recognition of energy consumption object and energy conservation modification and then commissioned and tested the equipment in workshop operates normally and has no adverse impact on the

changes. Apart from setting the annual energy conservation target we add the energy consumption indicators at the original production control of the workshop. In addition it optimizes the combustion air controls the smoke exhaust

Company system facility and area levels continuously detecting and controlling the energy consumption. pressure reduces the workshop noise prolongs the service life of motor as well as reduces the power consumption by

319235 kWh achieving a year-on-year energy conservation of 25%.

Nanshan Aluminium actively explores the new technology equipment material and process for energy management. We

have successively invested in and started a series of projects for energy conservation and emission reduction technology

optimization and equipment modification to constantly consolidate the basic energy management capacity and offer a

powerful support to the attainment of the Company's energy management target.We reuse the exhaust gas from We organize the direct discharge In addition we install the fan

high-pressure flash evaporation process modification against the frequency converter for melting

and reduce the consumption of bottom flow of the sedimentation and holding furnace optimize the

new steam and discharge of non- tank which improves the sludge production-used sawing machine

flashed exhaust gas while con- discharge efficiency reduces the prolong the thermal control time

serving steam and reducing the equipment operation time and for tank materials replace the lin-

discharge of greenhouse gas; lowers the electricity consump- ings for melting and holding fur- Nanshan Aluminium has always implemented the green office concept to create the green and low-carbon working

tion; nace on the production line and environment in the Company.reduce the energy consumption

through fine adjustments.Reuse process modification project for high-flash waste We promote the energy conser- We further popularize wa- All of our employees carry out We are gradually replacing

steam in the aluminium oxide sedimentation workshop vation modification of lights and ter-conserving devices in the paperless online office the office cars with new en-

adopt the timing and voice con- office places and conduct a through an internal OA online ergy electric environmental

trol light management mode to regular inspection to avoid office system of the Compa- protection vehicles.reduce the power consumption water venting overflowing ny;

We optimize the process for sedimentation tank and heater in the aluminium oxide sedimentation workshop and in lighting; dripping and leakage;

replace the original new steam with the high-flash waste steam from the VI stripping workshop for heating. At

present the high-flash exhaust gas has been used for the daily heating of all sedimentation tank and heater in the

workshop. It is predicted to conserve 8000t new steam and reduce the discharge of greenhouse gas - about 2500t During the report period the energy consumption indicators of Nanshan Aluminium are described as follows:

CO2 every year.Energy consumption indicators Unit Data

Indirect energy consumption tce 251735

Purchased electricity kWh 2048287783

Direct energy consumption tce 5049267

Diesel t 4309

Raw coal t 6564588

Natural gas 10000 m3 31743

Comprehensive energy consumption tce 5301002

Energy consumption in 2021（The scope includes the company's main operating plants in China Indonesia and the U.S..）

43 44Low carbon production Good morality towards perfection

Accumulated hills towards mountain.Management of Carbon Emission

Nanshan Aluminium adheres to the sustainable development concept of "Green manufacture for a bright future". We respond

to the national strategy of "carbon neutrality" and "carbon peak" and continuously implement the sustainable development

route. As the first enterprise passing the ASI aluminium industrial chain certification we set an example for constantly

promoting high quality and green development of Chinese non-ferrous metal industry. We take the green development as

a topic and actively respond to the call upon carbon reduction from the national and local governments. We are ceaseless

exploring the best carbon neutrality practice in the non-ferrous metal industry through the green and low carbon optimization

of production and operation.Optimization of energy Low carbon process Roof Distributed PV Power Project of Thermal Power Plant

architecture development

Nanshan Aluminium checks the carbon emission in strict accordance with the standard ISO 14064. We established our own

standard document Management Procedure for Greenhouse Gas Calculation and an internal greenhouse gas check and

verification group. The group checks calculates and discloses the greenhouse gas discharge every year. During the report

Nanshan Aluminium is actively attempting With the maturity and promotion of the period we reduce our own greenhouse gas discharge through the refined energy conservation management and thereby

the power generation layout of non- carbon capture and storage technology address the climate change. See the table below for details of the greenhouse gas emission of Nanshan Aluminium:

fossil energy. We are gradually increasing Nanshan Aluminium is actively exploring

photovoltaic power generation reducing the comprehensive solution for carbon

consumption of thermal power and fully capture and storage (CCS) and biological

consider purchasing low carbon energy and energy and carbon capture and storage Discharge indicators Unit Data

discuss the deep cooperation with energy (BECCS) equipment while upgrading and

partners in cross-region power and gas modifying the existing coal-fired unit. We

supply constantly optimizing the energy strive to both realize the low carbon green Total greenhouse gas discharge (Scope 1 + Scope 2) t CO2e 13057121

structure with the clean energy represented and sustainable development and explore

by green power. the optimal route to reduce the discharge of Greenhouse gas discharge (Scope 1) t CO2e 2118741

greenhouse gas.Greenhouse gas discharge (Scope 2) t CO2e 10938379

Carbon emission intensity

Longkou Donghai Alumina Co. Ltd. t CO2e /t product 0.55

Check of carbon footprint of products Longkou Nanshan Aluminium Rolling New Material Co. Ltd. t CO2e /t product 0.52

Medium-thick Plate Branch t CO2e /t product 0.58

We closely trace the frontier technology of the industrial low carbon process update the

greenhouse gas emission plan and control target every year and publish Greenhouse Gas Electrolytic Aluminium Branch of Shandong Nanshan Aluminium Co. Ltd. t CO2e /t product 13.24

Emission Target and Implementation Plan of Nanshan Aluminium on the official website

accepting the supervision of all sectors of society. As the only responsible enterprise American plant t CO2e /t product 0.45

disclosing the direct and indirect greenhouse gas emission carbon footprint during

the whole product life cycle we actively respond to the carbon reduction demand on Greenhouse gas discharge indicators of 20212

upstream and downstream of the supply chain. Furthermore we decide to lower the year-

by-year carbon emission target and measuresbased on the third-party's product checkreport and try to buildthe important sector on the supply chain of low carbon aluminium. （ Data scope includes the company's main operating plants in China Indonesia and the U.S..The scope of the data includes the company's mainproduction plants in China as well as the U.S. We will conduct future disclosures of greenhouse gas emissions metrics for the Indonesia plant as it

Product carbon came into operation in 2021.)

footprint check report

2As the Company is involved in a long industrial chain the Company carried out carbon emission verification for major products and the carbon emission data disclosed

accounts for 85% of major aluminium products.

45 46Environmental management target of Nanshan Aluminium

target rate of waste target rate of waste

water discharge gas discharge

100%100%

disposal rate harmless disposal rate

of solid waste of hazardous waste

100% 100% Environment and Ecology

Work together to protect the ecology

for harmony

Nanshan Aluminium takes high quality

and sustainable green development concept as its

own promotion topic and attaches great importance to

the impact of production and operation on natural environ-

ment and ecology. Under double topics of transformations to

green and low carbon development we continually enhance the

environmental protection efforts with normalized and efficient

emission reduction initiatives. We stably implement the emission

reduction and pollutant-cleaning by the company's complete

environmental management system and integrate the concept of

ecological civilization into the whole process of enterprise

production operation and management. Nanshan Aluminium

constantly digs the value of resources while sticking to the

commitment of sustainable development. We utilize our active

environmental management policies to cultivate green

dynamics supply green products build green enterprise

and lead the green and high quality development.Environment and Ecology Good morality towards perfection

Accumulated hills towards mountain.Management structure Compliance of Emission

Nanshan Aluminium always adheres to the clear environmental protection target and ensures the proper direction of environmental

management; we carry out clear internal labor division and cooperation to ensure the coordinated environmental management; we use a Nanshan Aluminium adheres to the concept of "prevention first combining prevention and control clean production". We actively carry out

powerful environmental management system to ensure the implementation of environmental management. For all subsidiaries of Nanshan pollution prevention and control in strict accordance with the requirements of the Atmospheric Pollution Prevention and Control Law of the

Aluminium we clearly assign the head of each company as the first responsible person for environmental protection. The responsible person People's Republic of China Water Pollution Prevention and Control Law of the People's Republic of China Law of the People's Republic of China

manages the company's environmental protection uniformly and is in full charge of all environmental problems within the area under on the Prevention and Control of Environmental Pollution by Solid Wastes and laws and regulations of the authorities at the operation places

management; In the meanwhile we stick to the management principle of "the one who is in charge shall bear the responsivity" and further of overseas projects for pollutant discharge management. We start with two aspects namely emission reduction from the source and resource

divide the environmental protection responsibilities into details and allocate them to the environmental management responsible persons utilization and introduce advanced pollution control technology and process improve the pollutant treatment capability deeply implement the

and environmental management commissioners for various production sectors. Clear post responsibilities post instructions workflow and pollution prevention and control measures and promote the achievement of production discharge target and purifying.operating guidelines are also provided for support which ensures the effective implementation of environmental protection and management

during the whole production process of Nanshan Aluminium. In addition our overseas operation places strictly abide by the requirements

of American and Indonesian laws and regulations and rules of local competent environmental authorities. They implement the internal Management of waste gas

management and assessment guideline of Nanshan Aluminium while ensuring compliance with local environment regulations promoting the

green and stable production and sustainable and healthy development of American and Indonesian plants. We actively respond to the requirements of the Atmospheric Pollution Prevention and Control Law of the People's Republic of China and

operation places of the overseas projects propel the ultra-low discharge modification and constantly mitigate the impact of production process

Nanshan Aluminium employs the third-party institution - Shandong Longxin Monitoring Technology Co. Ltd. (hereinafter referred to as on atmospheric environment. All subsidiaries and production companies of Nanshan Aluminium have achieved their ultra-low discharge target

"Longxin") to guide and supervise the Company's environmental protection and collaborates with the Security and Environment Department of for 2021. Their discharge is much lower than the national and operational basic standard.Nanshan Aluminium and all its subsidiaries. Longxin conducts the daily quarterly and special assessments and comprehensively supervises the

environmental management of various production companies based on decomposed and detailed environmental management targets.Management system

Nanshan Aluminium strictly bears the environmental protection management responsibilities. While meeting the requirements of national

laws and regulations for ecological environment protection including the Environmental Protection Law of the People's Republic of China Constantly propel the fugitive ultra-

Environmental Impact Assessment Law of the People's Republic of China Regulations on the Administration of Construction Project low emissions control

Environmental Protection etc. we also implement the Management Method for Environmental Protection of Nanshan Holdings. We determine

the environmental protection target key work contents functional division and coordination and assessment and accountability mechanism to As regards to fugitive emissions all produc-

adhere the bottom line for environmental protection. tion posts are responsible for controlling the

the construction and commissioning of desulfurization discharge points in the production system and enhancing the "sealing" and "blocking"

works have also been completed. control of the "venting" "overflowing" and

"leakage" in the production system.In 2021 with the constant advance of the environmental protection target Nanshan Aluminium carried out a new round of

environmental management system optimization and summarizing for all subsidiaries. At first we established the refined

environmental management system and low carbon and emission reduction work mode covering power plant coal gas water works

and aluminium oxide product in the subsidiary PT Bintan Alumina Indonesia (hereinafter referred to as "Indonesian Plant"). We have

also shared and promoted the successful experience of Indonesian Plant among the subsidiaries.Nanshan Aluminium takes the environmental protection performance level as one of the measures to test the effectiveness of our environmen- Accelerate the organized ultra-

tal protection. During the report period two subsidiaries - the Electrolytic Aluminium Company and the Aluminium Oxide Company have been low emissions modification

awarded Level C environmental protection performance during the enterprise assessment. In this case we set a clear target to improve the en- Unintermittent ultra-low emissions

vironmental protection level of the two companies to Level A in 2022. When effectively bearing the environmental protection responsibilities we Invest in the construction of desulfurization and monitoring assessment

will try to improve the environmental management of Nanshan Aluminium to a higher level. denitration optimized technical equipment and im-

plement the ultra-low discharge operation in strict The Security and Environment Department of

Coverage rate of ISO

Nanshan Aluminium has laid a green foundation for high quality de- accordance with the waste gas treatment standard all subsidiaries communicating with Longxin 14001 certification

velopment and become a comprehensive aluminium enterprise that and equipment operation procedure. and the competent third-party organizations

lays out the whole industrial chain. Our company keeps in line with the are entrusted as required to carry out the dis-We incorporate the waste gas treatment facilities

international standard optimizes the management and increases the within the responsible areas of all subsidiaries into charge monitoring assessment. The discharge

benefits. Our environmental management has won the recognition of 87.5% the branch and workshop equipment management. data helps us realize the accurate scientific

professional organizations for several times and passed the certification They accept the patrol inspection maintenance care and legal pollution control.of ISO 14001 Environmental Management System and GB/T 36132-2018 and overhaul equivalent to the main equipment to

General Principles for Assessment of Green Factory . It means our man- ensure their efficient and normal operation.agement in full compliance with the basic requirements infrastructure

management system energy and resource investment product envi-

ronment discharge performance etc.Green factory certificate

49 50Environment and Ecology Good morality towards perfection

Accumulated hills towards mountain.The electrolysis and calcination workshops of the Electrolytic

During the report period Nanshan Aluminium spares no effort to support the ultra-low discharge modification. We are

Aluminium Company have completed the optimization and continuously investing and propelling ultra-low discharge modification projects and optimizing and improving the air quality

upgrade of desulfurization and denitration within and surrounding the plant. Our performance continues to rise in multiple waste gas emission indicators compared with

past years while meeting the national emission standards. All subsidiaries can abide by the requirements of national and local

laws and regulations and ensure compliance of production discharge.In 2021 Nanshan Aluminium carried out the ultra-low discharge modification on the land originally owned by the

Electrolytic Aluminium Company. We took the technical upgrade as the main line performed the optimization and The following table provides our waste gas discharge indicators during the report period:

rectification in combination with multiple aspects including process and management improvement. As a highlight

we deployed the denitration and limestone - gypsum wet desulfurization process combining the selective non- Discharge indicators Unit Data

catalytic reduction (SNCR) technology and the selective catalytic reduction (SCR) technology. This landmark project

of deep ultra-low discharge modification involves a total investment of up to 220.97 million yuan a total planned Nitrogen oxide t 2935

building area of 6499.75 m2 and 15 sets of purchased new large-scale treatment equipment.The desulfurization and denitration facilities for the 200000t electrolytic aluminium plant have been completed and Sulfur dioxide t 2768

formally put into operation; The denitration works for the 480000t electrolytic aluminium plant have been put into

operation and the construction and commissioning of desulfurization works have also been completed. After the Non-methane hydrocarbon t 169

project is put into operation the

concentration of sulfur dioxide in the Particles in flue gas from the burning and roasting furnace t 59

flue gas discharged from the 200000t

and 480000t electrolytic aluminium

production line will be less than 35 Particles t 1030

mg/m3. The concentration of NOx

in the burning and roasting flue Waste gas discharge indicators of 2021

gas discharged from the associated （The scope includes the company's main operating plants in China Indonesia and the U.S..）

carbon production l ine wil l be

less than 50 mg /m3. An emission

reduction of 734t sulfur dioxide/year Prevention and control of solid waste

and 95t nitrogen oxide/year will be

achieved.Nanshan Aluminium attaches great importance to the prevention and control of solid contaminants and compliance treatment

of hazardous wastes and strictly abides by the national laws and regulations including Law of the People's Republic of China

on the Prevention and Control of Environmental Pollution by Solid Wastes Technical Specifications for Collection Storage

Closed modification project of the coal yard of Donghai Transportation of Hazardous Waste Management Measures of Sheets for Transfer of Hazardous Wastes and related regulations

Power Plant of the domestic and overseas operation places. To meet the requirements of Measures for Standardized Management of Solid

Wastes of Nanshan Holdings we classify the solid wastes for collection based on the prevention and control measures of "safe

storage compliance transfer and reasonable treatment" and the principle of "reduction reutilization and harmlessness". In

In 2021 Nanshan Aluminium carried out the special action against the flying dust pollution problem in the open coal addition to reducing the hazardous wastes from the source we are actively exploring the "zero-emission" green production

yard and performed the closed alteration for all coal yards under Donghai Power Plant. The special governance action mode.implemented a fully-closed modification of three coal yards of Donghai Power Plant in form of gas film. The modification

covers the construction of new facilities with an area of 64320 m2. The new area of 38624 m2 can prevent the diffusion of

flying dust caused by mechanical operation in the coal shed. The coal unloading and storage facilities were modified with

the more mature bolt-sphere steel grids in design manufacture and installation. A total of 21280 m2 was modified and the Strengthened

steel material of the bolt-sphere steel grid can be recycled. control of emission Utilization of reduction from the solid wastes

The investment on the closed modification of Donghai Power Plant totaled up to 100 million yuan. The closed coal source

storage and transportation building resistant to wind frost rain and snow creates a closed management space. The

environmental benefit of particle emission reduction of 1000t has been achieved every year. While isolating the

flying dust it also avoids the overflow of particles prevent the rain flush from causing loss of coal ensuring the coal Waste management

blending quality. system of Nanshan

Aluminium

Treatment of

Investment in hazardous wastes

key treatment in accordance with

projects standards

Waste management system of Nanshan Aluminium

51 52Environment and Ecology Good morality towards perfection

Accumulated hills towards mountain.Nanshan Aluminium is continuously working on technical research and practice exploration of comprehensive utilization of During the report period

non-hazardous waste and return of solid wastes to production. In 2021 Nanshan Aluminium cooperated with the University Indicator Unit Data Nanshan Aluminium

of Science and Technology Beijing and Institute of Process Engineering of Chinese Academy of Sciences and other high quality achieves a comprehensive

scientific research institute partners. We jointly applied for and received the approval of the key special projects titled "solid Total generation of solid wastes t 5564270 solid waste utilization rate of

waste utilization" under the National Key Research and Development Program of China. The project will constantly break

through the integrated production technology for aviation aluminium sheet hot rolling - cold rolling - continuous annealing Generation of hazardous wastes t 81490

heavy plate thermal treatment and accurate control of aviation aluminium sheet/heavy plate composition - organization -

structure - performance promote the establishment of the industrialization production system of aviation aluminium sheet/ Recycling and utilization of hazardous wastes t 20793 56%

heavy plate and supports the high-quality development of secondary aluminium industry.Generation of general wastes t 5482780 compliance treatment of

Comprehensive aluminium ash and slag utilization project Recycling and utilization of general wastes t 3048956 100%

Amount of produced and utilized solid wastes in 2021

Nanshan Aluminium recycles the aluminium slag crusts produced during the slagging-off of melting furnace in the (The scope includes the company's main operating plants in China Indonesia and the U.S..) of hazardous wastes

forging workshops of the electrolytic aluminium light alloy aluminium and medium-thick plate companies in princi- reaching the industrial

ple of "recycle and reuse all wastes as possible". Through the comprehensive utilization of aluminium ash the work- advanced and

shops realize the secondary production of the aluminium slag crust and return the produced aluminium alloy ingots historically best level

to all subsidiaries for recycling effectively lifting the resource utilization efficiency. Wastewater Discharge

In 2021 Nanshan Aluminium made several break-

throughs in comprehensive reduction-based utiliza- Nanshan Aluminium strictly abides by the related regulations Nanshan Aluminium performs the all-around overall

tion of aluminium slags including sorting recycling in the Water Pollution Prevention and Control Law of the supervision on the wastewater treatment plants of the

and use. The aluminium recycling company achieved People's Republic of China and continues to pursue the subsidiaries including technical support operation and

61200t annual treatment of aluminium slag crusts and zero-discharge target of wastewater. We will continuously management and equipment control.

18900t production of aluminium ingots. reduce the water consumption of process and improve the

wastewater treatment through infrastructure improvement Based on compliance discharge we constantly carry out the

The aluminium recycling company's treatment technical modification and process optimization. Apart from wastewater treatment process modification and technical

of aluminium slag crusts from downstream constructing the production facilities all of our subsidiaries upgrade improve the wastewater recycling utilization rate

processing companies are are equipped with internal wastewater treatment facilities and recycled water quality control standard and actively

capable of treating production wastewater to meet the propel the wastewater reduction in source and check on

61200 municipal wastewater discharge and receipt standard. wastewater zero-discharge demonstration project. t

Nanshan Aluminium Donghai Park domestic wastewater

Grade-keeping and comprehensive utilization project of treatment plant project

recycled aluminium

As Nanshan Aluminium constantly invests in the wastewater treatment the highlight projects have been

implemented in succession. In 2021 the Donghai Park domestic wastewater treatment plant project of Nanshan

The recycled aluminium is a key sector for the Chinese aluminium industrial system to realize sustainable develop- Aluminium was formally started. The project was proposed to cover an area of 50640 m

2 and a total building area of

2

ment. In 2021 Nanshan Aluminium started the grade-keeping and comprehensive utilization project of recycled alu- 4413.46 m .minium. The project remelts raw materials - waste aluminium and processes them into aluminium products. It mainly As a highlight project of Nanshan Aluminium's wastewater purifying and discharge the Donghai Park domestic

utilizes the aluminium scraps or offcuts produced by the subsidiaries and tank waste materials and defective alumin- wastewater treatment plant uses the treatment process combining the off-side buried and integrated lifting pump

ium products as the raw materials introduces the nationally advanced double-chamber melting furnace logging fur- station and thin grids aeration grit chamber biochemical (A/A/O+A/O) secondary sedimentation tank efficient

nace and multi-chamber furnace and adopts the self-owned advanced melting process for aluminium recycling and sedimentation tank denitrification deep-bed filter tank activated coke adsorption tank contact disinfection tank

uses the metal aluminium and recycled aluminium for grade-keeping and reproduction. and reused water tank. The treatment solution can ensure

At present the project remains at the environmental pro- the economic efficient and safe treatment of wastewater.tection procedure approval and early preparation stage. After completion the Donghai Park domestic wastewater

It is predicted that after the project is completed and treatment plant will undertake the treatment of all domestic

put into production in 2022 the target of an annual pro- wastewater produced in the residential and industrial areas

duction of 100000t recycled aluminium will be achieved in Donghai community. It will achieve a daily domestic

with only less than 3% of the energy consumption of wastewater treatment of 40000t which greatly improves

electrolytic aluminium. We will continuously build the the surrounding water environment. It will supply the

green and environment-friendly grade-keeping alumini- compliance water upon domestic wastewater treatment in

um products with the low energy consumption pollution the area to the municipal organization for reuse providing

and cost and construct the complete green product the backup guarantee for the municipal water supply.closed recycling network of Nanshan Aluminium.

53 54Environment and Ecology Good morality towards perfection

Accumulated hills towards mountain.During the report period Nanshan Aluminium complies with all standards in wastewater discharge. The related indicators are

as follows: Water Resources Management

Emissions Unit Data Nanshan Aluminium paid great attention to the water resources and strictly control the potential risks by which the safe and reliable

management kept evaluating our responsibilities and actively water supply for production and operation of Nanshan Aluminium

explored the optimal utilization method. We conducted scientific can be guaranteed. During the reporting period there were no issues

testing and consumption analysis on the water sources thus to or incidents with water sourcing.Wastewater 10000 m3 113 optimize the consumption structure and the closed recycling network

Pressure filtration water 10000 m3 238 Water environment risk management

During the operation Nanshan Aluminium strictly abided by and through our active control measures. At the same time regular

Recycled wastewater 10000 m3 130 implemented the Water Law of the People's Republic of China the public disclosure of water pollution discharge monitoring results

Regulations for the Administration of Water Collection Licenses and and emission reduction plans was made to achieve transparent

Water Resources Fees the Water Pollution Prevention and Control management of water resources risks.Law of the People's Republic of China and other laws and regulations

COD t 57376 and attached importance to water resources management and Based on the results of water resources risk analysis we formulated

conservation in the whole value chain. Except that the water used by the Water Resources Risk Assessment Report of Shandong Nanshan

the Indonesian alumina plant is drawn from the surface the water Aluminium Co. Ltd . to give tips on water resources risk and guide

used by the Company's main production sites is from municipal the implementation of mitigation plan. Meanwhile according to the

Ammonia nitrogen t 598 pipelines. A complete and comprehensive water resources control management measures of water balance testing in the regions where

system has been established in the long-term practice of achieving each operation place is located water balance tests were carried

the goal of "zero discharge" of industrial wastewater. out regularly. Based on the analysis of available water supply and

demand the Water Balance Chart of Shandong Nanshan Aluminium

Wastewater discharge in 2021 We were faced with potential water resource risks in the production Co. Ltd was drawn which provides reliable data calculation

operation storage and transportation of Nanshan Aluminium. Then guarantee for the optimization and promotion of water resources

we carried out early warning and announcement of water resources management. Furthermore we analyzed the weak links of water

(The scope includes the company's main operating plants in China Indonesia and the U.S..) risks with the goal of mitigating risks. In addition by conducting consumption tapped the potential of water saving in enterprises

transparent and compliant potential water resources risk assessment made clear the main direction of water-saving and continuously

and research and cooperating with the continuous monitoring explored the best solutions for enterprises to provide water drawing

of water discharge and water quality in Nanshan Aluminium consumption drainage and saving to improve the utilization

we controlled the probability of potential water resources risk efficiency of water resources.Comprehensive demonstrations of water resources help

the Indonesian plants launch projects successfully

In order to speed up the industrial layout along the Belt and out comprehensive analysis and demonstration activities on

Road and deeply participate in international cooperation on the rationality of water consumption drawing and returning in

production capacity Nanshan Aluminium started to plan the Indonesian plants and the impact of construction projects on

Indonesian Bintan Nanshan Industrial Park Project in 2015. The the water environment and the legitimate rights and interests

planned area of the project is 2333.6 hectares which is planned of other interested parties. With the support of water resources

constructed and put into production in stages according to the demonstration Indonesian plants were making smooth progress

industrial model of "port - electric power - aluminium oxide - in water resources management such as water returning

electrolytic aluminium". In the preparatory stage of Indonesian permits division of water function zones optimal dispatch

plant project based on the requirements of the Guidelines for supervision of examination and approval etc. In May 2021 the

Water-draw and Utilization Assessment on Construction Projects first phase of 1 million tons of alumina and supporting projects

of the Ministry of Water Resources of the People's Republic of of the Indonesian Plant were completed and put into operation.China and the supervision of the operation places Nanshan The water resources demonstration supported the smooth

Aluminium cooperated with a third-party qualified unit to implementation of the construction project and also helped

conduct comprehensive demonstrations of water resources promote the Indonesian plants to realize the conservation

and put Nanshan Aluminium's strict requirements on water protection and efficient utilization of water resources and

resources management into practice in advance. promoted the sustainable development and utilization of water

resources and the sustainable economic development of the

Based on the Water Resources Demonstration Report we carried factory area.

55 56Environment and Ecology Good morality towards perfection

Accumulated hills towards mountain.Water resources consumption Biodiversity Protection

In practice Nanshan Aluminium has summed up the idea of "one water for multiple purposes graded utilization and cascade Nanshan Aluminium abided by the concept of ecological civ- ments: all construction projects and operation and produc-

utilization" for the comprehensive management of water resources and has started to further promote the rational use of ilization and upheld the reverence for the nature. The Com- tion units in Nanshan Aluminium must formulate positive bi-

water resources from refined management and recycling. During the reporting period we reduced the unnecessary loss of pany strictly adhered to the Environmental Impact Assess- odiversity action plans and efficient prevention and control

water consumption by strengthening water statistics plugging treatment of process equipment and upgrading of water-saving ment Law of the People's Republic of China the Law of the measures for biodiversity risks in combination with the mit-

technology. Besides the industrial water reusability was improved by the recycling of rain water and cooling water which People's Republic of China on Water and Soil Conservation igation hierarchy. At the same time efforts should be made

continuously optimized the water supply network to reinforce the internal water circulation system thereby improving the the Regulations on the Administration of Construction Pro- to maintain the biodiversity and ecological balance of the

efficiency of water utilization. ject Environmental Protection and other relevant laws and communities around where we operate combining the nec-

regulations. In the process of production management and essary ecological restoration and compensation measures as

In the report period Nanshan Aluminium reached the highest level in water recirculation and there were no issues or project operation we have minimized the impact and dam- needed.incidents in seeking water sources. The water resource utilization indexes are as follows: age to the surrounding ecological environment and carefully

protected the habitat of local animal and plant communities. We conducted a special biodiversity risk assessment for two

In addition we were committed to continuously improve the of Nanshan Aluminium's core domestic production sites the

Indicator Unit Data ecological environment quality of our operation places and Nanshan Industrial Park and the Donghai Industrial Park.regions and strived to protect biodiversity. And in the Nanshan Aluminium Biodiversity Report the

Total water consumption 10000 m3 700 potential risks were forewarned. On the basis of the above The Company has formulated the Management Procedures with our active pollution prevention and control policies and

for Biodiversity Conservation in Nanshan Aluminium and the rational utilization of local plant communities and soil

Tap water 10000 m3 228 in coordination with the Environmental Impact Assessment the negative impact of the production units on the surround-

Report of Construction Projects and the Biodiversity Risk ing ecological environment was strictly controlled thus the

Surface water 10000 m3 402 Assessment Report has put forward the following require- ecological environment of the local area was protected.　Other types of water 10000 m3 10 Ecological restoration of red mud dump and green plant

covering project

Recycled water 10000 m3 60

Water resources consumption indicators in 2021 Nanshan Aluminium has f irmly established the the end of 2021 Nanshan Aluminium had accumulated

(The scope includes the company's main operating plants in China Indonesia and the U.S..) development concept of respecting nature conforming 700000 square meters of ecological restoration area

to nature and protecting nature and continues to in the green planting coverage project of the red mud

carry out ecological management. We designed and dump and the effective coverage rate of green planting

built a red mud dry storage yard according to domestic in the first phase of the red mud dump reached 95%.standards. On this basis we carried out ecological These achievements have effectively improved the

restoration and green plant coverage projects regional ecological environment and demonstrated

improved the soil structure of the red mud dump and Nanshan Aluminium's responsibility.continuously increased the green plant coverage. By

57 58Human Resources

Diverse talents with inclusive employment

Nanshan Aluminium cares for its employ-

ees respects their human rights and earnestly

safeguards and protects every employee's legitimate

rights and interests in employment remuneration and

benefits career development and learning and training. The

Company has a sound human resource management system

recruitment system training system salary and welfare system

performance system promotion system staff change management

system foreign expert management regulations etc. The regula-

tions are implemented in all units under Nanshan Aluminium and

updated regularly every year. At present the Company has

completed the restructuring of the three pillars of human

resources to ensure that every employee is provided with a

platform for growth and development a diversified and

flexible training system a sound and comprehensive

health protection and a friendly and harmonious

working environment.Human resources Good morality towards perfection

Accumulated hills towards mountain.Rights and Interests Guarantee Equal employment

Nanshan Aluminium adheres to the recruitment principle of equal employment. The Company puts an end to any

discrimination against religion gender and ethnicity in talent introduction and create a diversified working environment

Nanshan Aluminium has formulated a thorough recruitment Management Procedure for the Protection of Minors the by combining job demand with two-way selection of employees' intentions. The Company also actively contributes to

system to respect the legitimate rights and interests of Management Procedure for the Prohibition of Forced community development and local employment thus providing many jobs and better welfare benefits for local residents.every employee. The Company complies with the relevant Labor the Management Procedure for the Protection of

requirements of the Labor Law of the People's Republic Female Employees and the Management Procedure for

of China and the International Labour Organization (ILO) the Prohibition of the Use of Child Labor and Remedial Indicator Unit Value

Conventions . It has formulated the system and procedural Measures. It aims at eradicating employment discrimination

provisions such as the Management Procedure for the forced labor child labor and harassment in the workplace Turnover rate

Prohibition of Mental and Physical Abuse the Management and promoting the diversity and inclusiveness of the

Procedure for the Prohibition of Discrimination the company's personnel. Total turnover rate % 8.44

By gender

Number of on-the-job staff in the parent company 13182 Turnover rate of male employees % 8.68

Number of on-the-job staff in the main subsidiaries 5564 Turnover rate of female employees % 7.72

By age

Total number of on-the-job staff 18746

Turnover rate of employees no more than 30 years old % 15.22

Number of retired workers with expenses undertaken by

0

parent company and main subsidiaries Turnover rate of employees between 30-50 years old % 7.01

Turnover rate of employees no less than 50 years old % 4.30

Professional Composition

Professional composition categories Number of professionals *The above-mentioned data are collected from all the Company's on-the-job Chinese employees.Production personnel 13957 Bintan Alumina Indonesia signed a talent cooperation

agreement with three universities in Batam.Sales personnel 378

Technical personnel 2889

Bintan Alumina Indonesia Universitas Riau Batam Universitas Internasional Batam and Batam Institute of Technol-

Financial personnel 112 ogy held a school-enterprise cooperation forum in the Bintan Alumina Indonesia Park and formally signed a coop-eration agreement with them. Based on the principle of "complementary advantages cooperative education joint

Administrative personnel construction and sharing mutual benefit and win-win situation and cooperative development" the Company has 1410 actively explored a new cooperative model of cooperative development between enterprises and universities. The

Company carries out all-round and integrated cooperation in recruitment and employment targeted training re-

Total 18746 source development and joint construction of teaching and research bases. The Company will take measures in forms

of Indonesia campus education sponsored oriented training and employment practice. In this way we can funda-

mentally solve the problem of

Educational Background talent supply in simple short-

term employment focusing on

Education level Quantity (person) the transformation of produc-

tion results school-enterprise

Master and above 101 cooperation in education and

resource sharing. We will also

Bachelor 2144 create a good environment

for attracting and retaining

Junior college 5120 talents help stabilize employ-ment facing the pandemic in

Indonesia and strive to set an

Below junior college 11381 example and demonstrate its

responsibility.Total 18746

61 62Human resources Good morality towards perfection

Accumulated hills towards mountain.Staff Development

Rights and interests guarantee Nanshan Aluminium attaches great importance to the Aluminium divides the positions into six categories construction of career promotion paths for employees and including operation series technical series and management

it is committed to creating diversified career development series. Each employee of each series has the opportunity to

The Company has established the Management Procedure for the Right to Freedom of Organizing Trade Unionsand Collective opportunities for all excellent employees. In Nanshan get promoted vertically from manipulation level to executive

Bargaining and the Management Procedure for Staff Representative which made it clear that the Company respects all Aluminium the development paths for all occupational level operation level and decision-making level. Positions

employees' rights of free association and collective bargaining belief free formation participation in trade unions collective categories and ranks are open and transparent. The in each series are adjusted according to the characteristics

bargaining and peaceful assembly. When the rights to freedom of association and collective bargaining are subject to laws the Company has established a sound performance system of the business line and promotion channels that best meet

Company will assist all employees to obtain the rights of independence freedom of association and bargaining through similar and promotion system including vertical promotion and position and employee development needs are established.channels. When an employee's right of freedom of association is infringed he/she can report to the general manager who will horizontal cross-series extension. At present Nanshan

deal with it personally and publish the result. During the reporting period the collective agreement signing proportion of the

Company is 100%

Salary and welfare

assistant deputy operator operator technician

senior

technician

In strict compliance with the laws regulations and policies Nanshan Aluminium is committed to establishing a Operation series

of the place of its business Nanshan Aluminium establishes staff team with strong cohesion and belongingness. The

a compensation management standard system in line Company launched a welfare housing policy; set up many

with its actual situation and an operating mechanism to kinds of allowances such as seniority allowance night

continuously improve the income of employees to ensure shift allowance full-attendance bonus mobility premium

that every employee gets a competitive salary and their transportation allowance high-temperature allowance

labor can be rewarded. At the same time it attracts and health care allowance and heating allowance. For female

retains necessary talents for its strategic development and employees in addition to insurance maternity leave breast- assistant senior

advocates the synchronous and harmonious development feeding leave and other state-stipulated policy guarantees Technical series

employee technician engineer engineer engineer

of the Company and employees. the Company also provides a medical room and maternity

lounge or nursery room to properly meet the physiological

health lactation and baby nursing needs of female

employees.commissioner supervisor/

deputy deputy factory deputy general

Management series foreman director/ manager/factory manager/general director manager manager

Nanshan Aluminium carries out employee performance assessment every year encourages outstanding talents to make

contributions to the Company and holds an annual commendation conference to commend and reward advanced individuals

management cadres technical experts sales champion and "five-good" families.Photo Taken at the 2021 Annual Commendation Conference

63 64Human resources Good morality towards perfection

Accumulated hills towards mountain.Employee Training

Management Cadre Training

Nanshan Aluminium has established a training management learning platform (eLearning platform) to achieve the online

mechanism composed of three parallel systems involving management of the whole training process which covers all

training management training support and training employees in combination with offline training activities. During the reporting period the Company organizes ideology training of middle and senior management cadres

operation. Moreover the Company also developed an online and the training courses include the Construction of Ideological Style of Enterprise Leaders the Realistic Value and

Nanshan Aluminium Practice of Yan 'an Spirit. About 800 management cadres above the deputy factory director of

Nanshan Group attended these courses which helped the management of Nanshan Aluminium to strengthen the

work style construction tap their own potential keep up with the pace of the industry and improve the management

Training

management The Company establishes and improves relevant systems

level.system involving the training management and the internal promotion management.Relying on the resource advantages of Yantai Nanshan

University and Nanshan Training Institute the Company

Training establishes an internal training lecturer team improves the course system covering new employee training sales staff

support training professional and technical training and safety training

system courses and learning materials and cooperates with a number

of external training institutions for internal training and open

class learning.Training The Company develops annual and monthly training plans

operation based on needs surveys improves training files according to

system the implementation and supervises and inspects the training plan organization and implementation of subordinate units.Indicator Unit Data

Number of trainees Person 17477

Total training hours Hour 821419

Training hours for male employees Hour 625570

Training hours for female employees Hour 195849

Training hours for senior management Hour 2491

Training hours for middle management Hour 42535

Training hours for ordinary employees Hour 776393

Training coverage of employees 100% 100%

Staff training statistics of Nanshan Aluminium

*The above-mentioned data are collected from all the Company's on-the-job Chinese employees.

65 66Human resources Good morality towards perfection

Accumulated hills towards mountain.Employee Communication Health and Safety

Nanshan Aluminium actively listens to the demands and feedback from employees and builds smooth communication chan- Nanshan Aluminium has always put the health and safety of employees as the top priority in the management and sees it as its responsibility

nels for employees. In accordance with the Employee Complaint (Appeal) Management Procedure and the Management and obligation to create a healthy and safe working environment for employees so as to ensure the employees’ work is carried out safely with

Procedure for Staff Representative em- quality and quantity guaranteed.ployees can put forward their demands

and suggestions through the workers' con- Management Structure

gress complaint box complaint mailbox

telephone leadership mailbox or direct In accordance with GB/T 45001-2020 Occupational Health and responsible for routine safety management work safety reporting

communication with leaders. In response to Safety Management Systems - Requirements with Guidance for organization of safe production and preparation for occupational

complaints employees who experience or Use the Company has established and continuously operated the health inspection. occupational health and safety management system. An emergency

witness discrimination or harassment in the response office was also set up to supervise the implementation According to the Work Safety Responsibility System and the Work

Company should immediately report to the of the primary responsibilities of work safety and the work safety Safety Incentive and Accountability Management System Nanshan

staff representative ASI management rep- responsibility system in all units improve the safety management Aluminium incorporates safety performance into the performance

resentative HR Department or other man- system enhance safety production conditions investigate and deal indicators of the senior management to ensure the realization of the

agement personnel as they deem appropri- with production safety accidents assist the HR Department in safety Company's development strategy.ate. Harassment from other personnel who education of employees. Each unit has a work safety committee

have business dealings with the Company

should also be reported so that the Com- Management System

pany can take corresponding actions. The

Company will complete the Employee Com- The Company abides by laws and regulations such as the Work Safety Law of the People's The company invested

plaint / Feedback / Suggestion Handling Republic of China the Law of the People's Republic of China on the Prevention and Control

Record in accordance with regulations of Occupational Diseases the Fire Protection Law of the People's Republic of China the Basketball Game of Electric Power Corporation

and will keep the personal information of Regulations on the Reporting Investigation and Disposition of Work Safety Accidents the

employees strictly confidential. Besides Provisions on the Safety Training of Production and Operation Entities the Provisions on

89.1 million yuan

the Company through various forms such the Administration of Fire Control Safety of State Organs Organizations Enterprises and

as workers' congress meetings before and Institutions and the Provisions on the Supervision and Administration of Occupational Health of the special reserve in 2021

after work and symposiums understands at Work Sites and has developed internal policies to ensure employee health and safety.the ideological trends of employees solves For domestic plants the Company established the Safety Management Standard System and implements safety systems and

their problems in life and work and adopts policies such as work safety responsibility system safety education and training hidden danger identification emergency

the specific constructive suggestions they plan work safety input reward and punishment system hazardous operation approval and equipment and facilities safety

put forward. management. In 2021 it further established a vehicle safety management system and a building safety management system.The Company organizes various cultural Nanshan Aluminium constantly improves the construction of work safety standardization by establishing the work safety

activities every year such as artistic perfor- responsibility system formulating the safety management system and operating procedures identifying and controlling hidden

mances basketball games internal sports dangers monitoring major sources of danger establishing a prevention mechanism and standardizing production behaviors.meetings hikes and tourist activities for

outstanding cadres and employees to en- For overseas plants the Company has formulated compliance and legal system documents in line with the Company's safety

hance their position knowledge and enrich and health policy according to relevant domestic systems and the laws and regulations in Indonesia the U.S. and other places

their life. of operation. Corresponding management systems for on-site construction units were also formulated and implemented. At

the beginning of each year our overseas plants will formulate training plans on environmental protection health and safety

and carry out trainings and drills according to the training plans to improve employees' safety operation skills environmental

Team Building Activities of Indonesia Project Department of Nanshan Aluminium protection concepts and self-protection awareness.Satisfaction survey shows that

employees' overall satisfaction

with the company is Goals Assessment Indicators

87.53% There is no casualty accident no fire or explosion accident The Company conducts profit and tax assessment on senior and no occupational disease accident. The key performance executives based on their monthly assessment and year-end

indicators of occupational health and safety were mainly assessment results of which safety assessment accounts for

the work-related accident rate supplemented by hazardous 15%. The Company practices one-vote veto for work-related

events. The work-related accident rate is 1‰ . death incidents.Each of the subsidiaries and branch offices of Nanshan Aluminium organizes at least one satisfaction survey every year and

formulates a satisfaction survey report. Among them the 2021 satisfaction survey report of Nanshan Aluminium shows that Health and Safety Goals of Nanshan Aluminium

employees' satisfaction with the overall situation of the Company is 87.53%. The Company will make improvements according The Company has obtained occupational health and safety management system certification (ISO 45001) and work safety standardization

to the problems raised by employees in line with its actual situation so as to enhance employee satisfaction. certification and it is a Level II enterprise in terms of work safety standardization. All the plants have passed the ISO45001 system certification except

Donghai Power Plant among which the plant certification accounts for 83% and there are no work-related death accidents in the report period.

67 68Human resources Good morality towards perfection

Accumulated hills towards mountain.Risk Prevention and Control

Adhering to the principle of "prevention first and all-time improve the safety culture construction. Safety Knowledge Training of Special Operation Posts

preparedness" Nanshan Aluminium has never stopped

risk prevention and control. It constantly improves safety The Company has also organized various safety-related

management and emergency management measures and trainings for employees to consolidate their safety

implements the whole-process management before during knowledge. The emergency management office organized In January 2021 a workshop of the Flat-Rolled Product Division of Nanshan Aluminium organized safety knowledge

and after the event aiming to provide a safer working all departments to carry out first-aid knowledge training training for personnel in special operation posts to help them learn special operation skills and safety knowledge of

environment for employees. and further popularized self-rescue and mutual aid their posts and improve safety awareness.knowledge and skills through teaching by doctors which

Nanshan Aluminium has established an emergency effectively improves the self-rescue and mutual aid ability

management system identified the Company's hazard of employees and prevents or reduces the occurrence

sources and evaluated them according to the workplace of accidents. Furthermore the Company organized all

hazard identification and evaluation method (LECD) to departments to watch the work safety warning education

determine the risks to be controlled and the occupational film titled Life First Alarm Bell Ringing produced by the

health and safety goal indicators and management plan of provincial work safety committee and also carried out

the year. All units have identified highly possible incidents safety law learning and training activities for the foremen

and emergencies formulated various contingency plans and and above and full-time safety management personnel

organized drills according to the plans to control the adverse of all units. Through safety training the safety red-line

consequences caused by the accidents and maintain work consciousness consciousness of responsibility and legal

and life stability. The Company's emergency plan has been consciousness of the leaders and employees of all units have

approved and filed by the government and won the title of been further enhanced."demonstration unit of emergency plan management".During the reporting period the Company organized 1848

In the meantime the Company set up a special work safety inspections of potential safety hazards covering natural

management organization equipped with full-time safety gas dangerous chemicals inflammable and explosive

management personnel and registered safety engineers sites external construction units emergency plans safety

to enable the safety management professionalized and education and training "three violations" of staff lifting

standardized gradually established and improved work equipment electrical equipment pressure vessels vehicles During the reporting period the accident rate was 1‰ equivalent to 0.66 of LTIR per million working hours. There was no

safety regulations and operating procedures promoted in the factory. It also organized safety publicity activities in major casualty. All the accidents mentioned above are minor injuries or health damages and the employees involved have

the work safety and occupational health "dual-prevention the "national work safety month" in various forms including been compensated and treated properly.system" to eliminate hidden risks and prevent accidents safety banner safety oath accident video fire-fighting skill

strengthened safety education and training for all staff competition and safety knowledge contest.and organized safety culture activities on a regular basis to Employee Health

Nanshan Aluminium takes occupational health protection In addition the Company makes technical improvement

Fire-fighting skills competition measures for all employees including occupational health and reforms production process such as replacing toxic

education occupational health inspection regular physical substances with non-toxic or low-toxic ones for example

examination of employees regular workplace detection replacing high sulfur coke with low sulfur coke in an

and provision of labor protection products. The Company aluminium electrolysis process. In the production process

To train the fire control emergency team and improve their ability of fire rescue and emergency disposal the fire- formulates and implements the occupational disease we reduce workers' exposure to harmful factors through

fighting skills competition of Nanshan Holdings was organized in November 2021 and a total of 37 teams including prevention management system to strictly control daily mechanization and automation reduce and eliminate

more than 180 people participated in this competition. This fire-fighting skills competition was divided into three production equipment operation and staff operation productive harmful factors through ventilation dust

parts: basic theoretical knowledge physical fitness test and actual combat operation including fire-fighting process. It also regularly detects occupational hazard removal noise reduction isolation and other technical

knowledge target shooting with fire-extinguishing water tanker relay race fire-fighting and rescue. Such activities factors in workplaces provides labor protection articles measures. and strengthen equipment management to

further consolidated the fire control knowledge and common sense of the staff improved their fire-fighting skills and to employees exposed to occupational hazard factors prevent blowing puffing dripping and leakage. Every

provided a safety guarantee for our continuous and stable operation. supervises their daily wear and use of such protection year the Company entrusts a qualified unit to detect the

articles organizes occupational physical examination workplace and the qualification rate of dust and harmful gas

annually adjusts their posts in time if there is any operation points reaches 100%.abnormality and files the physical examination results.Safety of External Construction Personnel

Nanshan Aluminium has formulated the Safety Management System for External Construction Personnel. According to the

principle of "A person in charge should be responsible for management" production and operation units together with

the Safety Management Department are responsible for the management of the qualifications and work safety of external

construction units. The Company signs a work safety management agreement with the external construction party to clarify

the work safety responsibilities of both parties and provides regular trainings for relevant personnel. The Company will

conduct regular statistics of the work-related injury accident rate of external construction personnel. During the reporting

period the work-related injury accident (serious injuries and casualties) rate of external construction personnel was 0.

69 70Cooperation

Win-win partnership for

benefiting cooperation

Nanshan Aluminum actively shoulders

social responsibilities and joins hands with all

parties to achieve a greater vision. We attach impor-

tance to the cooperation with the upstream and down-

stream of the industry strengthen supplier management

carry out supplier assistance and build a responsible supply

chain. We also actively promote industry co-construction

deeply participate in government-enterprise cooperation and

carry out strategic cooperation with outstanding companies in

the industry. We are committed to promoting resource sharing

complementary advantages and win-win cooperation to

achieve industry prosperity and sustainable development. At

the same time based on the attributes of the industry we are

mindful of the protection of indigenous rights environmental

protection and cultural heritage in the communities where

the projects are located and always insist on participat-

ing in community public welfare and charitable

causes to build a beautiful homeland together.Cooperation Good morality towards perfection

Accumulated hills towards mountain.Supply Chain Management

Supplier Assessment

The Company's high quality service and vigorous development depend on the stable supply chain operation. Committed

to close business cooperation with suppliers Nanshan Aluminium attaches great importance to supply chain system

construction and management process improvement. It evaluates suppliers' legal compliance and other key factors such as To further ensure the healthy and stable supply of high-qualify raw materials we will Annual score deducted

supply level and guarantee ability through various review and assessment measures so as to create a fair and efficient system dynamically update and manage the supplier list through a supplier scoring and evaluation by more than

for supply chain standardization and professional management. mechanism after establishing a partnership with the suppliers. A monthly evaluation

mechanism is set up to uniformly evaluate the product delivery time quality qualification

For each link in the supply chain that involves suppliers the Management Procedure for Supplier (Contractor and Service rate invoices and other aspects of suppliers. In addition the incorporated social responsibility points

Provider) Implementation ASI formulated by the Company can fully publicize responsible supply chain policies to all suppliers performance will also be included into the supplier evaluation management system. 30

to ensure the effective implementation of ASI code of conduct and standards and gradually improve the social responsibility According to the Management Procedure for Supplier (Contractor and Service Provider) will be removed

performance of the supply chain. To realize the unified management and dispatching of raw material procurement issues Implementation ASI the Company organizes on-site audit of "main suppliers/contractors/

Nanshan Aluminium sets up a supply department to be responsible for supplier assessment communication and certification service providers of next tier" at least once every two years fills out the On-site Audit Report

contract signing cooperation and support to achieve systematic and standardized supply chain management. of Supplier / Subcontractor / Service Provider evaluates the social responsibility of the "main

subordinate suppliers/contractors/service providers of next tier" and puts forward follow-up

improvement measures to ensure that the social responsibility performance of suppliers is

Supplier Access consistent with business ethics.Nanshan Aluminium implements refined management whether a supplier has the ability and qualification of stable For suppliers whose overall evaluation score is less than 60 points Nanshan Aluminium will

and control starting with the supplier admission link. and long-term supply through pre-qualification and on- give a warning reduce or even terminate the cooperation with them as the case may be. Any

All the production departments independently will site investigation and makes provisions on protection of supplier with its annual score deducted by more than 30 points will be removed.submit their procurement plans and the procurement workers' rights and interests environmental protection

specialist communicates and coordinates with the supply occupational health and safety. Suppliers that pass the

department of the head office about material dispatching assessment will be included in the qualified supplier list and Conflict Minerals Regulation

and procurement method. Nanshan Aluminium confirms proceed the cooperation with us.To prevent conflict minerals from the Democratic Republic of Congo and its adjacent areas from being used in the production

of Nanshan Aluminium products the Company has formulated the Regulation Procedure for the Prohibition of the Use of

Minerals in Conflict Areas. When selecting suppliers the Company requires them to sign the Letter of Commitment for Not

Qualification verification On-site investigation Approval and inclusion Using Conflict Minerals and to provide the Conflict-Free Mineral Survey Report. If any supplier is found to use materials from

conflict minerals the Company will immediately stop using such materials provided by the supplier and require for another

source of minerals with valid proofs.Suppliers are required to The personnel of the Supply S u p p l i e rs t h at pa s s t h e

submit related information. Department make an investi- assessment are included in

gation plan in advance. the qualified supplier list.The Supply Department

shall examine the business The investigation focuses on Commitment of Nanshan Aluminium

licenses three-year financial the registered capital produc-

statements cooperation tion scale enterprise manage-

contracts and account open- ment product quality price

ing permits. advantage corporate culture Do not support or use metals derived from armed conflict zones illegal mining and poor working conditions known

staff appearance and other as "conflict minerals". Suppliers should investigate their products for metals such as gold (Au) tantalum (Ta) tin

Classify and file relevant business conditions. (Sn) tungsten (W) aluminium (Al) and identify their sources in accordance with the OECD Due Diligence Guidance for

data to complete the prelim- Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (DDG).inary review. Fill in the supplier scoring

sheet.Communication with Suppliers

While actively promoting the construction of a supply chain conditions. The Company provides effective suggestions

Supplier access process management system Nanshan Aluminium adheres to the and substantive assistance to solve suppliers' problems in

common growth and progress together with suppliers and the working environment and help them improve product

Nanshan Aluminium works together with its suppliers to and agreement for sale and purchase. A regular training steadfastly fulfill social responsibilities and obligations. Every supply performance. We will continue to improve its ability

create a clean and responsible procurement supply chain. will be organized for all procurement personnel related year the Company will invite high-quality suppliers to attend of systematic and standardized supply chain management

When the qualified upstream suppliers are determined to responsible supply chain so as to publicize its internal industry exhibitions and annual meetings to communicate guarantee legal and compliance operation actively assume

we will require them to sign constraint documents such procurement system. about strategic cooperation and market dynamics social responsibilities and make important contributions to

as letter of integrity commitment letter of commitment discuss industry development trends and forecast market the sustainable development of supply chain.

73 74Cooperation Good morality towards perfection

Accumulated hills towards mountain.Win-win Development of Industries Care for Local Community

Maximizing its positive role as an enterprise Nanshan Aluminium is committed to promoting the construction of a bridge Enterprise growth is closely related to community development. Focusing on the mutual benefit and common development

of cooperation inside and outside the industry and facilitating the application of substantive cooperation achievements to of enterprises and communities Nanshan Aluminium is committed to creating a harmonious and co-prosperous development

achieve industry co-construction and win-win development. environment through the integration of enterprise and community relations. Nanshan Aluminium formulated such procedures

as the Management Procedure for the Protection of Indigenous Residents and Their Independent Prior and Informed

Industry Association Consent Right the Management Procedure for the Protection of Cultural Heritage Sites and Religious Holy Sites and the Local

Community Impact Control Procedure to strengthen the compliance management of the Company's construction projects

At present Nanshan Aluminium is a director unit and a mem- of advanced productivity. The Company actively participates in terms of governance environment human rights and labor rights and protect the legitimate rights and interests of local

ber unit of China Nonferrous Metals Industry Association in various activities and internal construction of the associ- community residents.Aluminium Branch and other associations. On the premise of ations safeguards the legitimate rights and interests of its

abiding by the basic principles such as constitutions and res- own and other member units practices fair cooperation and

olutions Nanshan Aluminium contributes its management competition in the industry and provides possibilities for Protection of the Rights and Interests of Indigenous Residents

wisdom and provides technical assistance to the develop- enhancing the communication between members and the

ment of the associations and the industry and helps enter- government and society. When the development and utilization of mineral water or monitors and disposal process and enables them to choose

prises in independent innovation and vigorous development other resources may affect indigenous communities during independent experts to review the impact assessment. In

the project construction reconstruction and expansion of addition the Company actively protects the basic human

the Company Nanshan Aluminium will actively communi- rights and other legitimate rights and interests of indigenous

Name of Industry Association Role cate with indigenous residents and establish cooperation residents of labors women expropriation and resettlement

with them through a representative agency so as to obtain and establishes a complaint mechanism for indigenous

China Nonferrous Metals Industry Association Aluminium Branch Vice President Unit the independent informed consent of indigenous residents communities according to local coefficient-related laws and

before the project is approved. The Company provides re- regulations to ensure the openness and effectiveness of

Industry Technology Innovation Alliance for Lightweight Material Forming Technology and

Council Unit sources such as an open evaluation outline invites indige- complaint channels.Equipment of China nous communities to participate in our normal evaluation

Marine Materials Association of China Member Unit

Shandong Aluminium Industry Association Vice President Unit Commitment of Nanshan Aluminium

Shandong Aluminium Alloy Material R&D and Application Technology Innovation Alliance Leading Unit

Yantai Manufacturing Big Data Industry Technology Innovation Strategic Alliance Member Unit The Company will respect indigenous residents' rights to live and develop rights to use and share the interests

from natural resources (including mines land and scenic spots) and right to enjoy a healthy and suitable natural

environment. The Company undertakes to safeguard the indigenous residents' right of "independent prior and

informed consent" before its expropriation of natural resources project construction (reconstruction and expansion)

Government-enterprise Cooperation Enterprise Cooperation closure decommissioning and divestment; not to collude with local governments but communicate with indigenous

residents in advance and provide compensation or resettlement after expropriation of natural resources according

As an excellent representative of the industry Nanshan By adhering to the cooperation concept of "win-win to laws and regulations; and not to discriminate against indigenous residents in recruitment work arrangement

Aluminium actively conveys and feeds back the Company's cooperation resource sharing and complementar y salary and remuneration and post promotion.opinions and suggestions when the government sectors a d va n ta ge s " N a n s h a n A l u m i n i u m a cce l e rate s i ts

formulates and issues policies so as to maximize the communication with the upstream and downstream

interests of the whole industry and promote the sustainable peers and enhances the sustainable development ability

and healthy development of all companies in the industry. while improving our technical level and business capacity

During the reporting period the Company actively through cooperation. During the reporting period Nanshan

participated in the 14th Five-Year Plan of the provincial Aluminium successfully reached strategic cooperation with

level the municipal level the non-ferrous industry and the Honeywell UOP. In the future based on green chemical

aluminium industry and actively sought for major projects technology the two sides will carry out in-depth technical

and policy supports. Through continuous coordination with cooperation in carbon neutrality to build a global industrial

government sectors during this reporting period Nanshan chain of aluminium electric power and petrochemistry

Aluminium successfully entered the "List of Leading New characterized by green and low-carbon development and

Material Enterprises" issued by the Department of Industry establish technology demonstration sites. We also plan to

and Information Technology of Shandong Province obtained organize a "Carbon Neutrality Industry Forum" based on the

the external recognition. All above continuously expand the progress in the application of carbon neutral technology

consensus building and value identification with industry regularly issue white papers on industrial development and

regulators and other institutions and provide valuable new provide services such as technology training and personnel

ideas for the development direction of peer companies. training for small and medium-sized enterprises through

an open and shared development platform and industrial

development direction to achieve green and environment-

friendly development.

75 76Cooperation Good morality towards perfection

Accumulated hills towards mountain.Protection of Cultural Heritage Sites and Religious Holy Sites Community Impact Control

Tangible cultural heritage as a unique and often non- protection of them. To implement the in-situ protection the Committed to fostering good interactions with communities the Company will develop measures and procedures to promote

renewable resource with cultural scientific spiritual or Company should determine protection measures in advance community development and strengthen the ESG management of projects to protect the rights and interests of local residents.religious value is highly valued managed and protected by which should be incorporated into the feasibility study

the Company. report and design specification and reported for approval. The Company actively promotes the organization construction of community medical care education culture tourism

If it is impossible to implement the in-situ protection and it and other industries such as building infrastructure including hospitals schools and libraries stadiums using abandoned

Before project approval and site selection Nanshan is necessary to remove or dismantle the cultural heritage resources to transform and develop scenic spots providing and improving assistance for villagers social insurance and

Aluminium will seek for advice from the Cultural Relic Nanshan Aluminium will report to the people's governments commercial insurance organizing cultural activities and providing other services. In local project construction and operation

Administration Department at the same level as the at all levels for approval. If the Company's operation the Company emphasizes the implementation of human rights due diligence and management biodiversity conservation

competent department of examination and approval so activities affect the safety and environment of cultural and environmental assessment monitoring and governance. In the event of closure decommissioning and divestment the

as to avoid cultural heritage sites and religious holy sites heritage sites and religious holy sites the Company will Company will discuss and negotiate about the ESG impact with local communities.as far as possible. If such avoidance is impossible under make rectification within a prescribed time limit according

special circumstances the Company must implement in-situ to law.Commitment of Nanshan Aluminium

Commitment of Nanshan Aluminium The Company will respect the legal and traditional rights and interests of local communities with respect to their

land livelihoods and use of natural resources. Appropriate steps will be taken in accordance with laws to prevent and

eliminate any adverse impact of the activities on the livelihood of local communities. The Company also explores

opportunities with local communities to respect and support their livelihoods.The Company abides by international conventions and national laws and regulations to protect cultural heritage sites

and religious holy sites.The Company fully respects the freedom of religion.Nanshan Aluminium has organized many public welfare and the communities. In the meantime in active response

activities to provide living subsidies free health examination to the call of local governments Nanshan Aluminium

free travel to 5A scenic spots and other welfare care to the assisted in nucleic acid testing epidemic prevention and

elderly from Nanshan. We also took measures to improve control population census to protect the life and health of

community living environment and create a harmonious employees and community residents.and co-prosperous atmosphere between the Company

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