Shanxi Taigang Stainless Steel Co. Ltd.Sustainability (ESG) ReportAbout This Report
This is the 17th annual Sustainability (ESG) report released by Shanxi Taigang
Stainless Steel Co. Ltd. (“Taigang Stainless” “STSS” “the Company” or “we/our”
for short) which is released simultaneously with the Company’s annual report. 29 59
This report was approved and released at the 29th meeting of the 9th Board of About This Report 01
Directors of the Company on April 24 2025. Pursuing Excellence and Striving for Win-Win
Message from the Chairman 03
Reporting scope Nurturing New Quality Progress Toward Social
About Us 05 Productive Forces Harmony
The Report focuses on Shanxi Taigang Stainless Steel Co. Ltd. The Report covers
Shanxi Taigang Stainless Steel Co. Ltd. and its directly affiliated second-tier Key Figures of 2024 08
subsidiaries and branches. Upgrading Innovation Management 31 Upgrading Quality Services 61
Sustainability Management 09
Reporting period Seeking Innovation-driven Development 34 Building a Responsible Supply Chain 64
Honors 14
The reporting period is from January 1 2024 to December 31 2024. To enhance Achieving Excellent Quality 36 Fulfilling Employees’ Value 66
the comparability and timeliness of the Report some information dates back to CSR Spotlights 15 Supporting Industrial Upgrading 40 Contributing to Social Harmony 73
previous years or refers to the first quarter of 2025.Preparation Basis
This report is prepared mainly based on the Self-Regulatory Guidelines No.17 for
Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial
Implementation) Self-Regulatory Guidelines No.3 for Companies Listed on Shenzhen
Stock Exchange — Preparation of Sustainability Report and the Guidelines for
the Preparation of CSR and ESG Reports for Subsidiaries of China Baowu Steel
Group Corporation Limited (Baowu). It also references the United Nations Sustainable 21 41
Development Goals (SDGs) the GRI Sustainability Reporting Standards (GRI Standards)
issued by Global Sustainability Standards Board (GSSB) ISSB standards the China
Corporate Sustainability Reporting Guidelines (CASS-ESG 6.0) released by Chinese Building a Solid Building a Beautiful China
Academy of Social Sciences and other guidelines and initiatives. Foundation and Fostering Through Green and Low-
Data Information Growth Drivers Carbon Development
The financial data in this report complies with the provisions of the Chinese
Accounting Law and Accounting Standards for Business Enterprises and has been Strengthening the Leading Role of 23 Strengthening Environmental Management 43
audited in accordance with national auditing standards. Party Building
Implementing Green Production 45
Preparation process Improving Corporate Governance 25 Making Green a Defining Feature 51
The preparation process for the Report covers team building research on domestic Following Business Ethics and 28 Tackling Climate Change 53
and international policy trends initiation training data collection stakeholder surveys Compliance Requirements
dual materiality analysis framework establishment report drafting translation
design review by departments and senior management and report grading.Reliability assurance
The Company ensures the completeness materiality balance and comparability Outlook in 2025 75
of the content disclosed in the Report and systematically introduces the
Company’s philosophy systems actions and performance in pursuing economic Key Performance Table 77
environmental and social development. The Company assures that this report is ESG Indicator Index 82
free of false records or misleading statements.Third-party Rating 83
Reporting language and access
Feedback 85
The Report is published in both Chinese and English versions. In the event of any
discrepancies in understanding between the Chinese and English versions the
Chinese version shall prevail. Furthermore this report is published in both print and
electronic formats with PDF version available on our website http://tgbx.tisco.com.cn for viewing or download.3 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 4
Message from the Chairman
Thank you for reading our 2024 Sustainability (ESG) Report.In 2024 amid the steel industry’s market complexities we navigated cyclical downturns of the industry while promoting high-end
smart green and efficient development. Embracing a mindset to bring out all development potential we seized on-site improvement
and market opportunities and advanced product-based integrated and lean operations that make financial sense. These efforts
boosted our value creation capabilities and kept our business performance among the best in the stainless steel industry.In 2024 we remained committed to high-end development and tackled China’s technological bottlenecks.Thanks to our product and technology R&D we launched seven products to the global market and eight in China. We also advanced
customer-centered mechanism reforms and strengthened our product teams resulting in a significant increase in sales of high-end and
differentiated products.In 2024 we maintained smart development by advancing projects to replace manual labor with mechanization reduce the
workforce through automation and achieve unmanned intelligent operations.By driving AI innovations we optimized production sites with minimal or even zero human intervention. With measurable standards
and metrics we built data models automated equipment and introduced intelligent systems. The application of big data continued to
expand elevating our lean manufacturing capabilities.In 2024 we devoted ourselves to green development by making intensive adjustments to key processes to consolidate and
extend the results achieved as an A-level environmental performance enterprise.Following the requirement of “Cleaner Water into the Yellow River” we implemented project to upgrade wastewater standards and salt
recovery system retrofitting earning recognition as a water-efficient corporate model in Yellow River Basin’s high-quality development.Additionally we developed and applied low-carbon manufacturing processes and launched three low-carbon products with our hot-
rolled coils becoming one of the first eight recognized low-carbon steel categories in the industry.In 2024 we focused on efficient development by raising our intrinsic efficiency and promoting lean operations.We refined production line task distribution thus improving efficiency. The “one headquarters multiple bases” integration delivered
significant synergies and value creation. We achieved progress in personnel efficiency per capita steel output and profit margins per
ton of steel. By deepening internal reform we fostered an increasingly dynamic clean and motivating culture gathering significant
strengths to seek breakthroughs and overcome challenges.The year 2025 marks an important milestone for the Company to seize opportunities foster new growth drivers and advantages at a
faster pace and sharpen core competitiveness amid multiple challenges posed by a prolonged industry downturn. Driven by reform
and innovation we will benchmark ourselves against others to identify gaps and spare no effort to optimize our structure reduce
costs improve efficiency strengthen the supply chain and prevent risks. These efforts will enhance our operational efficiency and
performance helping us secure greater achievements in building the world’s most competitive high-tech enterprise with a complete
stainless steel industry chain.Chairman5 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 6
About Us
Company Overview
Corporate Culture
As a global stainless steel leader Shanxi Taigang Stainless Steel Co. Ltd. boasts an annual production capacity of 14.56 million tons of steel including
6.12 million tons of stainless steel. With total assets worth CNY 67.53 billion the Company has 13080 full-time employees and generates revenues of
CNY 100.38 billion. During the reporting period the Company produced 13.98 million tons of steel including 6.20 million tons of stainless steel.In October 1997 the Company was founded which was solely initiated by Taiyuan Iron & Steel (Group) Co. Ltd. (TISCO) with additional capital Mission
raised through public funding. The Company was listed on the Shenzhen Stock Exchange in June 1998 (Stock Code: 000825). In June 2006 STSS
To support advanced
acquired TISCO’s core steel assets bringing the Company a compelte steel production process and supporting facilities. In December 2020 Shanxi
manufacturing and
State-owned Capital Investment and Operation Co. Ltd. which held 100% equity in TISCO transferred 51% of it to China Baowu Group at no cost.create a better life
As a result China Baowu Group became the indirect controlling shareholder of the Company and our actual controller changed from the State- Vision
owned Assets Supervision and Administration Commission of Shanxi Provincial People’s Government to the State-owned Assets Supervision and To become a global
Administration Commission of State Council (SASAC). leader in the stainless
The Company specializes in the development of special steel especially stainless steel. We have established innovation platforms such as the steel industry
national key laboratory for advanced stainless steel materials and the national physical and chemical laboratory with over 800 core and proprietary
Values
technologies containing independent intellectual property rights primarily in stainless steel. We have led or participated in the formulation of more than
70% of China’s stainless steel plate and strip standards. The Company has developed a portfolio of high-efficiency energy-saving and long-lifespan Integrity Innovation
Green Collaboration
steel products including stainless steel cold-rolled silicon steel and high-strength high-toughness steel. Our stainless steel products cover plates
strips wires tubes and extreme specifications such as ultra-wide ultra-thick and ultra-thin materials. Our cutting-edge products such as pen-tip
steel hand-torn steel nuclear-grade stainless steel railway-grade steel duplex stainless steel and high-grade silicon steel for new energy vehicles
Corporate Spirit
are renowned at home and abroad. “TISCO-brand” stainless steel has been recognized as a “China Famous Brand Product” and the “Most InfluentialStainless Steel Brand in China.” Li Shuangliang Spirit
Committed to green and low-carbon development we accelerate our work agenda centering around carbon peaking and carbon neutrality and Sub-culture
coordinate the reduction of pollution and carbon emissions. Building on our achievement of A-level environmental performance for ultra-low emissions
Integrity culture Innovation culture
across the entire production process we pursue the goals of “higher than the standard better than the urban area integrating into the city.” Guided by Safety culture Quality culture
these goals we intensify our efforts by launching the campaign to build an all-factor ultra-low-emission AA enterprise targeting ultra-low air emissions Green culture Marketing culture
zero wastewater discharge zero solid waste leaving the plant minimal noise pollution and a cleaner better plant environment. These measures have Responsibility culture Integrity culture
elevated our environmental performance from good to excellent. As a result we have been recognized as one of China’s first green plants and an A-level
environmental performer in the steel industry. We also contribute to harmonious coexistence with cities by treating municipal wastewater for reuse in
city landscapes and supplying heating resources to cities.Going forward driven by our mission to “supporting advanced manufacturing and creating a better life” we will uphold our vision to “become a globalleader in the stainless steel industry.” Devoted to high-end intelligent green and efficient development we will leverage technological innovation as the
driving force benchmark ourselves against others to identify gaps and empower ourselves through reform and innovation. We will strengthen our core
capabilities and competitiveness striving to become the world’s most competitive high-tech enterprise with a complete stainless steel industry chain
and a world-class stainless steel manufacturer.CNY 100.38 billion
67.53 RevenueCNY billion
Total assets7 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 8
Organizational Structure
Shanxi Taigang Stainless Steel Co. Ltd.CNY 67.53 billion CNY 100.38 billion
Total assets Revenue
Economic
performance
CNY 463 million CNY 32.57 billion 0.579 CNY/share
Total tax payment Total equity attributable to the Social contribution value
owner of a listed company per share
CNY 455 million CNY 293 million
Total investment in environmental Total investment in energy-efficient
protection projects technology retrofits
Key 99.53 % 24.93 million m3
Utilization rate of solid waste Urban sewage and reclaimed
Figures water treatedEnvironmental
performance
of 2024 99.02 % 22.8 %
Water reuse rate Consumption of fresh water
Directly affiliated secondary units Controlled subsidiaries per ton of steel decreased
0.16 million tons 0.01 million tons
Scope 1 GHG emission reduction* Scope 2 GHG emission reduction*
Wholly-owned subsidiary CNY 166 million CNY 4.11 billion
Investment in work safety R&D investment
Social 98.9 % 87.9 393points New patent
performance User complaint resolution rate Customer satisfaction applications
41sessions totaling130 hours 100 % CNY 25.13 million
Supplier ESG training Employee training Employee training
coverage rate investment
Note: On February 14 2025 the Coking Plant and the Iron Smelting Plant were merged into the Ironmaking Plant. Scope 1: Direct greenhouse gas (GHG) emissions from sources owned or controlled by a company.Scope 2: Indirect greenhouse gas (GHG) emissions from purchased electricity steam heat or cooling consumed by the company.
8
Environmental Protection Department
Shanxi Linfen Taigang Medium and Heavy
Logistics Department Shanxi Taigang Stainless
Plate Co. Ltd
Steel Pipe Co. Ltd.Taiyuan Iron and Steel (Group) Metal
Safety Supervision Department Recycling and Processing Trade Co. Ltd.Shanxi Taigang Stainless
Energy Department Precision Strip Steel Co. Ltd. Shanxi Taigang Bonded Comprehensive
Capital Operations and Overseas Business Service Co. Ltd.Development Department (Securities and
Investor Relations Management Department) Shandong Taigang Xinhai
Taigang Europe LLC
Security Department Stainless Steel Co. Ltd.
(Fire Brigade)
Planning and Development Department Tianjin Taigang Sales Co. Ltd.Tianjin Taigang Tianguan
Stainless Steel Co. Ltd.Engineering Management
Department Qingdao Taigang Sales Co. Ltd.Business and Finance Department
Shanxi Taigang Dingxiang Sales Co. Ltd
Equipment Department
Legal and Compliance Department
X’an Taigang Sales Co. Ltd.Operations Improvement Department Silicon Steel Division Foshan Taigang Stainless Steel Sales Co. Ltd
Manufacturing Department
Trade Union and Youth League Wire Division Hangzhou Taigang Sales Co. Ltd.Committee
Procurement Center Structural Section Division
Wuxi Taigang Sales Co. Ltd.Corporate Culture Department
(Publicity Department)
Cold rolling mill
Chengdu (Taigang) Sales Co. Ltd.Marketing Center
Audit Department (Inspection Office) Continuous hot rolling mill
Shenyang Taigang Stainless Steel
Processing and Sales Co. Ltd.HR Department (Organization Department Hot rolling millTech Center (Specialty Steel
United Front Work Department) Development Business Taiyuan Iron and Steel (Group) Spot
Department) Sales Co. Ltd.No.2 Steel Mill
Discipline Inspection and Supervision
Department (Discipline Inspection Dept.) Beijing Taigang Sales Co.Ltd.Operation Center (Process No.1 Steel Mill
Support Office)
Administrative Office (Party Office) Iron smelting plant Wuhan Taigang Sales Co. Ltd.9 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 10
Sustainability Upholding the principle of “leveraging stainless steel know-how to create exceptional quality and ESG The Company prioritizes sustainability management as well as the summary and dissemination generating value for stakeholders” the Company is committed to sustainable development by of best practices. Through multiple communication channels including newspapers television
Management enhancing our sustainability framework and capabilities. We strive to create long-term corporate Communication websites mobile reports WeChat and Weibo we showcase our sustainability achievements. On the value and resilience and work with stakeholders to achieve sustainable growth and responsible Company's official website a dedicated section “CSR Updates” under “Sustainable Operations"business practices contributing to sustainable development around the world. provides stakeholders with comprehensive insights into our best sustainability practices and cases.This helps strengthen employees’ awareness of and engagement in fulfilling social responsibility.Organizational To effectively implement the Company’s sustainability principles the Company has established In 2024 the STSS 2023 Sustainability (ESG) Report received a five-star (excellent) rating from the
a well-defined tiered ESG management framework. The Board of Directors has set up the ESG Chinese Academy of Social Sciences for the eighth consecutive year and was recognized with theSystem Strategy ESG and Technological Innovation Committee. It studies and advises on the Company’s Performance “GoldenBee Excellent Corporate Sustainability Report 2024 – Environmental Information DisclosureESG objectives strategic planning governance structure and management policies while also Award.” The Company received the Silver Award for the 2022–2023 “Baowu Social Responsibilitysupervising guiding and assessing ESG-related matters and performance. The Sustainability Pioneer Award.” The case of Establishing TISCO’s Nuclear-Grade Stainless Steel as a Global Brand
Management Committee oversees company-wide sustainability initiatives by setting overarching was recognized as a “2023 Baowu Benchmark Case in Social Responsibility.” And the Company was
strategies goals missions and guidelines and refining sustainability management processes. It listed in the “Central SOE ESG Pioneer 100 Index” ranking 49th.also strengthens the governance and coordination of major sustainability matters and activities.The office of the Sustainability Management Committee is established at the Corporate Culture
Department which collaborates with all subsidiaries and departments to advance daily sustainability ESG Material Conducting ESG materiality assessments is fundamental to STSS’s ESG strategic planning risk
efforts enhance sustainability management and improve our performance. The sustainability and opportunity management and information disclosure. In 2024 the Company followed double
promotion group of each subsidiary and business unit implements sustainability tasks and Topics materiality assessments according to the latest international sustainability disclosure standards.requirements to ensure systematic normalized and integrated sustainability management. This upgrade incorporated financial materiality assessments into the existing impact materiality
assessments ensuring that we evaluate not only the external environmental and social impact of our
business operations but also the critical topics that impact our financial performance.Board of Directors
Step 1: Identifying ESG topics and establishing an ESG topic repository
Strategy ESG and Technological Innovation Committee
Based on the 21 topics required by the Self-Regulatory Guidelines No.17 for Companies Listed on Shenzhen Stock Exchange—
Sustainability Report (For Trial Implementation) (hereinafter referred to as the Guidelines) the Company has preliminarily established an
Sustainability Management Committee ESG topic repository after fully considering factors such as international and domestic sustainability standards and initiatives ESG capital
(Subordinate committee offices) market rating criterions industry policy trends peer company focus and the Company’s strategic development. The repository covers 24
topics including 9 environmental topics 11 social topics and 4 governance topics.Topic Metric Topic Descriptions and Changes
Headquarters Departments and Offices Directly Affiliated Secondary Units Subsidiaries
* Environmental * Green products * New topics: “Environmental compliance management” and “energy utilization”
Work Promotion Team compliance * Pollutant discharge have been added to the materiality analysis. Information on these topics has
management
* Waste disposal been continuously disclosed in the Reports.Environmental * Energy utilization
Organizational structure for sustainability management * Biodiversity * Topic change: To align with the requirements of the Guidelines topics such as (9) * Water resources conservation “waste utilization” “water resource management” and “renewable resourceutilization utilization” have been renamed to “waste disposal” “water resource utilization”
* Circular economy and “circular economy” respectively. “Air pollution management” has been
Implementation According to prevailing sustainability (ESG) policies and standards at home and abroad we improve * Climate response renamed to “pollutant discharge” to expand the scope of the topic.our ESG indicator system to make it more science-based and meet the Company’s reality. The
Mechanism Company integrates ESG into strategic planning and annual business plans with a well-structured * P rotection of * T echnological innovation * Undisclosed topics: To align with the requirements of the Guidelines topics employees’ rights
clearly defined and efficient ESG management mechanism. This framework strongly supports the * Product quality and such as “ethics of science and technology” and “equal treatment of SMEs” as
and interests stipulated in the Guidelines are not included in the ESG topic repository.continuous improvement of corporate governance. safety * Employee
Social * Customer service * T opic change: “Public welfare” and “volunteer services” have been incorporated
development
(11) * New materials into the topic of “social contribution.” “Customer service” has been kept the
* O ccupational health same since its broader connotation covers service quality as well as data security
Capacity Emphasizing specialized ESG management and training we optimize corporate management based * Supply chain security and safety and customer privacy protection. “Data security and customer privacy protection”
on the ESG framework and strive to enhance our ESG management and capabilities. The Company * P romotion of industrial * Rural revitalization has not been set up separately. “Product quality” has been renamed to “productBuilding developmenthas established the CSR/ESG Work Group and organize them to participate in online training and * Social contribution quality and safety.”
exchanges offered by top CSR/ESG institutions. For the executives and professional managers We
* Topic change: “Risk management” has been renamed to “due diligence”; “anti-host training programs on better CSR/ESG management and sustainability reporting and produced * Corporate governance commercial bribery and anti-corruption” and “anti-unfair competition” have not
the online lecture on China Baowu CSR/ESG Management System Development which has been Governance * Due diligence been set up separately since “business ethics” has a broader connotation.uploaded to the Employee E-education/training Platfor. These efforts enhance the Company’s value (4) * Business integrity * “Stakeholder communication” has not yet been included in the ESG topic
creation corporate governance and CSR performance. * Business ethics repository for materiality analysis but the section of “stakeholder communication”
has been set up in the Report to align with the requirements of the Guidelines.11 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 12
Step 2: Materiality assessment Step 3: Materiality ranking
Conducting impact materiality Conducting financial materiality Based on the ranking of the above ESG topics in terms of impact materiality and financial materiality a dual-materiality topic matrix
assessment assessment is established. Through matrix analysis two ESG topics with high financial and impact materiality are identified namely technological
innovation and climate response. There are 19 topics of medium materiality and 3 topics of general materiality.Considering the degrees of impact and likelihood Considering the risks and opportunities and likelihood that may arise
of occurrence of ESG topics on the economy in short medium and long terms a questionnaire survey is conducted
society and environment a questionnaire survey among the directors senior management and representatives from
is conducted among the Company’s stakeholders Legal Compliance Department Finance and Operations Department
with an impact materiality threshold set to assess Securities and Investor Relations Department and Corporate Culture
the materiality of these topics based on their Department as well as external investor representatives with a
potential impact. financial materiality threshold set to assess the significance of the * Technological innovation* Business integrity
* Business ethics * New materials * Climate responsefinancial impacts of ESG topics on the Company.* Green products * Pollutant discharge
* Water resources utilization * Product quality and safety
* Due diligence * Environmental compliance management
* Corporate *
governance Circular economy
Step 4: Topic review confirmation and disclosure * Employee * Customer service * Energy utilization development
* Occupational * Waste disposal
health and safety
* * Promotion of industrial developmentProtection of employees’
For topics with high financial materiality including technological innovation and climate response a comprehensive analysis is conducted rights and interests
on their scope of impact risks and opportunities and impact cycle with focused reporting of related governance strategy impact and * Supply chain security
risk opportunity management as well as metrics and targets. Relevant management and actions are disclosed for topics with medium * Biodiversity conservation
and general materiality in the Report. Considering that environmental topics within the medium-materiality category are generally
more significant information related to governance strategy impact and risk opportunity management and metrics and targets for * Rural revitalization
environmental topics are also disclosed in the Report. * Social contribution
Low Financial materiality High
Scope of Impact
High Financial Affected
Risk Opportunity Impact Cycle Chapter SDGs
Materality Upstream Corporate Downstream Stakeholders
Value Chain Operation Value Chain
* A significant amount of R&D investment often required
* Customers may increase the Company’s costs in the short term Upgrading Innovation * T echnological innovation oriented towards customer needs enables
Technological Management? ? Medium and long * Partners * T echnological innovation may lead to uncertain market the Company to adapt more flexibly to market trends and enhances its innovation term
competitiveness and leadership within the industry in the long term. Seeking Innovation-* Employees acceptance of products or services which in turn driven Development
increases market risks.* Suppliers * Trends such as climate-induced natural disasters
* S eizing the business opportunities for low-carbon products and
* Customers unstable energy supplies policy updates and changes in
Climate ? ? ? pursuing innovative sustainable business development models Medium and long Tackling Climate * Partners market preferences cause physical and transition risks to response enhance corporate reputation and image and improve the Company’s term Change
* Employees the Company which may increase the Company’s costs
market competitiveness.* Communities and affect its operations.Impact cycle: The short term refers to less than 1 year; the medium term refers to 2 to 5 years; and the long term refers to more than 5 years.High Impact materiality on the economy society and environment13 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 14
Stakeholder Stakeholders are influenced by a company’s ESG performance and their actions affect a
company’s long-term development. To better understand stakeholder expectations and foster Honors
Communication a positive relationship the Company has established a regular stakeholder communication
mechanism. This ensures a timely understanding of stakeholder interests and concerns while
seeking their understanding and support for ESG strategy.Date Award Sponsor
Stakeholders Expectations and demands Response methods 2024.01 Three products were awarded the Metallurgical Product Physical Quality China Iron and Steel AssociationGold Cup for outstanding quality
* Tax payment in accordance with the law and
job creation * Field research State-owned Assets Supervision and
* Promoting economic and social development * Group discussions 2024.06 Well-performing “Technological Reform Enterprise” of Central SOEs Administration Commission of the
* C ompliant and legal operation and fair * Compliance information disclosure State Council (SASAC)
competition
Government* Fulfilling corporate social responsibility The “Modeling Innovation and Application of Multi-Category High-
2024.08 Quality Integration Based on Quality Technology" project won the China Association for Quality
* Shareholders’ meetings second prize of Quality Technical Awards
* Operational compliance
* Investor meetings
* Stable investment return
* Earnings announcements Second prize of China Quality Innovation and Quality Improvement
* Business information disclosure China Association for Quality
Shareholders * Press releases/announcements Achievements Exchange Activities
Metallurgical Science and Technology Award China Iron and Steel Association
* Contract fulfillment with integrity * Customer satisfaction surveys
* High quality products * Customer complaints and countermeasures 2024.10 Typical Case of Water-Saving Industrial Enterprises with High-Quality Yellow River Conservancy Commission
* Quality services * Product promotion activities Development in the Yellow River Basin of Ministry of Water Resources
Customers
2024.11 Listed in Central SOEs (ESG): Pioneer 100 Index Bureau of Social Responsibility SASAC
* Honesty and integrity
* Supplier trainings Dual Carbon Best Practice Energy Efficiency Benchmarking
* Openness and fairness 2024.12 China Iron and Steel Association* Exchange meetings Demonstration Processes/Equipment
* Mutual benefits
Suppliers
Advanced Enterprise in the Three-Year Action for Energy Efficiency
* Employee communication activities
* Protection of rights and interests Benchmarking in the 2024 China Steel Industry Ultimate Energy China Iron and Steel Association
* Employee trainings
* Career development Efficiency Project
* Care and assistance activities
* Occupational health
* Internal publications WeChat official account
* Humanistic care China Machinery Metallurgy and Employees and others Second place in Dual Carbon Skills Competition for National Steel Building Materials Workers Technical
Industry Workers of the First Green Hanggang Cup
Association
* Fair procurement
* Exhibitions
* Honesty and mutual benefits Department of Science and Technology
* Project cooperation Shanxi Science and Technology Awards
* Long-term stable relationship of Shanxi Province
Partners
2024 GoldenBee CSR China Honor Roll · Environmental Responsibility
GoldenBee ThinkTank
Information Disclosure Award
* Fair competition
* Industry exchange meetings
* Industry development The Company’s “hand-tear steel” innovation and R&D team is honored CPC Committee of SASAC
as the “Role Model of Central SOEs”
Peers
2025.01 Recognized as “Excellent” on the Ranking of Dual Carbon Leadership of
* Paying attention to community development China’s Top 100 Listed Companies
* Public welfare activities Caijing Magazine
* Strengthening community communication Ranked first in the steel sector on the Carbon Efficiency Ranking of
* Community communication
* Engagement in social welfare China’s Top 100 Listed Companies
Communities
* Press releases/announcements
* Information disclosure and transparency
* Official media platforms
Media15 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 16
Thin Ultra-thin Steel Products and technology form the foundation of a company’s success. Companies
Fostering the Ultimate Excellence of Stainless Steel via should continue to push the boundaries of technological innovation and strive for
Steel greater breakthroughs making greater strides in supporting the development of Technological Innovation advanced manufacturing.—Xi Jinping Chinese President made the comment during his 2020
inspection of “hand-torn steel” foil
Hand-torn steel as thin as cicada wings is hailed as the “crown jewel of the steel industry.” By developing hand-torn
steel we have transformed hardened steel into material as soft as silk around a finger. From conventional steel products
to emerging materials we continuously push the limits of innovation and creation reflecting our relentless pursuit of
CSR technological innovation and our support for the high-quality development of China’s stainless steel industry.Spotlights
2020
2024
May Xi Jinping Chinese President revisited TISCO
and inspected the 0.22mm stainless steel hand- January Mass production has begun for “chip steel”June 22 2017 torn steel foils commenting “ Our sophisticated designed for lead frame applications.techniques produce steel as thin as foil，the May 2021 July We have developed precision steel stripsXi Jinping Chinese President visited TISCO and countless refinements make hardened steel as soft Two “hand-torn steel” products precision flexible screen steel and low-magneticemphasized the importance of “catching up and forging as silk around a finger." foil with a smooth surface and 0.07mm high-strength and ultra-flat materials for theahead.”
August We developed 0.015mm-thick hand-torn stainless steel ultra-flat stainless precision strip have next-generation high-end 5G electronics.setting a new world record for Chinese manufacturing. been launched globally. By the end of 2024：We have over 20 products in
October Our R&D team is pushing the research of metal masks May 2022 four major categories with 44 core stainless steel
for OLED displays. patents including 30 invention patents.The JDA61 precision stainless strip for
hydrogen fuel cell bipolar plates has made
its global debut.
2023
June 2018 March We have initiated the development of the 4J42K nickel-based
2016
After 711 trials overcoming more than 170 equipment problems precision alloyed steel strip for lead frames.The Company transformed from traditional crude and 450 process problems the first batch of hand-torn stainless April We completed the first sample delivery of metal photomask base
steel to high-precision cutting-edge products and steel (0.02mm thick 600mm wide) was produced overcoming materials.quickly established the “hand-torn steel” R&D team. the limits of rolling mill specifications. STSS became the only August We successfully rolled the first batch of photomask base materials.company globally capable of mass-producing ultra-thin wide October The first domestically produced metal masks have been launched
stainless steel precision foils. marking a milestone for metal masks made in China and used in
Chinese products.The hand-torn steel R&D team is honored as a
“Central SOE Role Model” by the SASAC17 Shanxi Taigang Stainless Steel Co. Ltd. 18
Green Transition
Green Nurturing New Momentum for Green Steel Development
In response to China’s strategy of carbon peaking and carbon neutrality (decarbonization) the Company steadily advances
the “13473” initiative (1 low-carbon development center 3 low-carbon development stages 4 low-carbon implementation
steps 7 low-carbon development pathways and 3 low-carbon management platforms) for green and low-carbon
development. By leveraging the dual benefits of “green manufacturing” and “manufacturing green” the Company accelerates
carbon reduction across the entire production process covering all factors of production. Expanding the application of low-
CSR
carbon steel products in diverse settings the Company continues to unleash “green momentum” featuring greater impact
Spotlights and stronger competitiveness with steady progress achieved in the pursuit of green and low-carbon development.Maximizing energy efficiency Revolutionizing technologies
Guided by an approach of “saving resources and expanding utilization” the Company improves multi-steam-source The Company consistently adopts a high pellet ratio in blast furnace smelting to control coal consumption in ironmaking effectively. We also
integration. We have upgraded the cooling part of the 1549 waste heat unit expanded steam extraction capacity for the advance the research and application of new energy-saving low-carbon technologies including carbon capture utilization and recycling.CDQ2# unit optimized peak cooling for the CDQ1# unit and transformed the new steelmaking waste heat unit. These
measures significantly improve waste heat and steam recovery efficiency. In 2024 the Company was recognized as a
“Benchmark Enterprise for Best Decarbonization Energy Efficiency.” Launching an industrial demonstration project for CCUS
The Company have launched an industrial demonstration project for carbon capture utilization and storage (CCUS) using chemical
Optimizing energy structure and processes absorption. The initiative includes constructing a CO2 production line with an annual capacity of 60000 tons primarily for use in
steelmaking converters. The captured CO2 contains over 28% CO increasing its calorific value by 32% making it more efficient for
reheating furnaces in the rolling process. This project pioneers a new technology pathway integrating CO2 capture CO2 top-bottom
The Company advances photovoltaic power projects with an installed combined blowing energy-efficient converter operations and high-CO-content gas reuse.capacity of 15.53 MW and an annual electricity output of 15.57 GWh 15.57 GWh 258.5 GWh
reaching a leading level within the China Baowu Group. The Company
Photovoltaic power Purchased green
has also purchased 258.5 GWh of green electricity maintaining an
generation electricity
annual procurement volume exceeding 0.2 TWh for two consecutive Integrating smart control system
years effectively supporting the R&D and production of low-carbon steel.Guided by six key low-carbon development pathways the Company has
established the first decarbonization intelligent information management
Building a green logistics network platform in China’s stainless steel industry. This platform includes
carbon data management carbon footprint management carbon
emissions management carbon asset management carbon information
The Company prioritizes the use of new-energy off-road vehicles and new-energy vehicles for transportation
80.2% management and carbon inclusion. With this system STSS has achieved and continuously optimizes the logistics of bulk materials and products. Through green logistics the Company the traceability of carbon emissions data for steel products ushering in
has achieved a clean transportation ratio of 80.2%. Additionally we have developed an intelligent raw material refined and comprehensive carbon management.Clean transportation ratio
yard that reasonably arranges and tracks the storage transportation and mixing of raw materials realizing
automation mechanization and digitalization. This has significantly reduced dust by over 80% and road
pollution from vehicles by over 98%. Exploring advanced materials
The Company Upholds an eco-friendly product design philosophy we seek new applications functions and performances for existing products
Deepening the integration with cities broadening the scope of stainless steel applications.The Company maximizes the use of industrial waste heat from production processes to supply clean heating
for urban areas meeting 60% of heating demand. During the reporting period the Company's centralized 60% STSS has developed a low-carbon stainless Stainless steel replaces carbon steel offering long- steel short-process smelting process reducing
heating coverage has reached 21.5 million square meters fostering deep city-enterprise integration enhancing lifespan green and low-carbon solutions and
The ratio of supply clean carbon emissions by more than 70% compared
energy efficiency and reducing carbon emissions. lowering lifecycle costs.heating to conventional methods.19 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 20
Industrial Synergy
Synergy Building a High-Quality Specialty Steel Industry Ecosystem
As the backbone of an industrial chain the chain leader drives technological innovation and transformation grasps
market trends and sets development direction. As the dual leader of the specialty steel industry in Shanxi Province
and the high-end metal materials industry in Taiyuan City we give full play to our comprehensive resources and
CSR leadership. Guided by our plans we adopt a project-based approach and attract investments to strengthen our industry
fundamentals. Together with upstream and downstream partners we channel resources into the specialty steel industry
Spotlights aiming to build a world-class domestically leading high-quality specialty steel ecosystem.Precise layout of industrial chain development
SUS430LX ultra-pure ferritic stainless Thin high-efficiency high-strength Hand-torn steel breaks foreign
steel possesses a domestic market non-oriented silicon steel features monopolies. This steel achieves mass
share exceeding 80%. This product superior magnetic and mechanical production at an extreme specification
The Company has implemented the 2024 Action Plan for the Specialty Steel Industry in Shanxi Province and followed the development logic has been certified and supplied properties. This product meets of 0.015×600mm. It surpasses
of “strengthening key players extending the supply chain fostering industrial clusters and solidifying the foundation.” The Company explores in bulk to leading domestic and international advanced standards and industry standards in specification
new pathways for coordinated innovation and supply chain integration in clustered industrial parks by focusing on product and technology international home appliance brands has been widely adopted in the motor performance delivery cycle and coil
development new application scenarios innovative resource allocation industrial chain extension and full lifecycle services. This approach laying a solid foundation for Chinese platforms of renowned global and weight serving as a critical material
ensures that every enterprise in the industrial chain becomes both a value creator and a beneficiary. The Company has been recognized as an home appliance products to expand domestic automotive manufacturers for high-end manufacturing.outstanding leading enterprise in Shanxi province’s key industries for 2023. into global high-end markets. providing essential materials for high-
end manufacturing.In 2024
Nearly 35% 6 3
Industry revenue increase attributed New specialized and sophisticated Recognized as national “little giant”
to the Company’s efforts enterprises specialized and sophisticated SMEs
2 2 23% Establishing a “government + industrial park + leading From 11% to enterprise” model to attract businesses
New market entities New investment projects for Increase in local consumption of specialty steel
industrial chain implemented due to the coordination of provincial enterprises
Focusing on downstream deep-processing within the specialty
steel industry the Company engages with leading enterprises while
partnering with the Jiancaoping District government and ZhongbeiHigh-Tech Zone Management Committee to establish a “government+ industrial park + leading enterprise” model to attract businesses.Focusing on high-end new materials Together we have hosted three targeted investment conferences for
the specialty steel and high-end metal materials industries attracting
over 160 enterprises to reach out for partnerships. As a result 11
The Company accelerates high-end digital intelligent green and clustered development of new materials contributing to the government’s companies have signed investment agreements worth over CNY 2.6 Hosting industry collaboration and targeted investment conferences
strategic emerging industry clusters. In 2024 three of the Company’s products were listed in the First Batch of Shanxi Province’s New Materials billion. Once in operation these projects are expected to consume for specialty steel and high-end metal materials industries
Catalog the highest number among enterprises in the province. 486000 tons of specialty steel materials.Building a Solid
Foundation and Fostering
Growth Drivers
National Call
To improve the modern corporate system with Chinese characteristics it is imperative to give
play to the advantages of the socialist system with Chinese characteristics strengthen the
leadership of the CPC and improve corporate governance. It is also imperative to promote
enterprises to establish and improve a modern corporate system under which property
ownership as well as rights and obligations are clearly defined and the functions of the
government and enterprises are separated. Such a system should be managed in a scientific
manner so as to foster more world-class enterprises.—Stressed by Chinese President Xi Jinping when he presided over the fifth meeting of the
Central Commission for Deepening Overall Reform
Corporate Actions
Taigang Stainless integrates the Party leadership into every aspect of corporate
governance and strengthens the Board of Directors to create a modern corporate
governance system for SOEs with Chinese characteristics. By adhering to principles
of integrity and compliance we have reinforced organizational structure and systems
streamlined operational mechanisms and strengthened risk prevention. High-quality
governance drives the Company’s steady development in the long run.23 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 24
Strengthening Guided by the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era Primary-level The Company thoroughly implements the important thoughts of Chinese President Xi Jinping the guiding principles of the 20th CPC National Congress and the second and third plenary on Party building and conscientiously follows the Party’s organizational line for the new era.the Leading sessions of the 20th CPC Central Committee as well as the important discourses and Party building We have continuously amplified the political and organizational functions of primary-level Party
directives of the Chinese President Xi Jinping regarding the reform and development of state- organizations and constantly improved the mechanisms for the management and impact
Role of Party owned enterprises (SOEs) and for Taigang we radically implement the decisions and plans maximization of Party member education to propel the comprehensive improvements and
made by Baowu and the Shanxi Provincial Party Committee and Provincial Government. In excellence of primary-level Party organizations.Building tandem with our Party members and cadre staff we deeply implement the business principles
of “4 Operations” (high-end intelligent green and efficient operations) and “4 Withs” (production In 2024
with orders output with margins revenue with profits profit with cash) and diligently promote
cost-conscious management product-oriented management integrated collaboration and
lean operations. As a result we have made new progress in Party’s construction and all 1
undertakings and are moving toward stable and positive high-quality development.Advanced central SOE primary-level Party organization
Strengthening At STTS the “first agenda” system at Party Committee Meetings and the learning system led
by the Party Committee’s theoretical study groups are in place to stay updated with and act on
theoretical the Chinese President Xi Jinping’s latest important speeches and directives. We have organized 3 3 3
32 special study sessions on reform and deepening sci-tech innovation work safety ecological Excellent Taiyuan City Outstanding Taiyuan City Advanced Taiyuan City primary-
guidance civilization Party building etc. Taking the important discourses and directives of Chinese Party members Party affairs administrators level Party organizations
President Xi Jinping to Baowu especially to Taigang as paramount political missions we have
made the 4 major to-do lists and broken them down into 18 items and 66 specific tasks to
ensure effective execution. 22 10 11
Excellent China Baowu Outstanding China Baowu Advanced China Baowu primary-level
Party members Party affairs administrators Party organizations
Full and strict governance over the Party
To deepen Party discipline education The Company organizes study groups expert lectures themed Party courses and special presentations.We encourage the study of Xi Jinping’s important statements on strengthening Party discipline in all aspects and the Regulations on Disciplinary
Actions of the Communist Party of China ensuring that Party members and cadres fully understand and adhere to these standards. Through
warning videos typical cases and visits to integrity education bases Party members are encouraged to learn from past mistakes and remain
vigilant. Those initiatives have strengthened their discipline awareness fostering a new culture of integrity and responsibility. In 2024 17 Party
The Party Day is conducted with participants signing their names on banners discipline cases were investigated and closed with 12 individuals receiving disciplinary warnings within the Party and 5 individuals receiving
serious warnings (one of whom received a serious warning with a two-year effect).* Training sessions for Party member executives at the C-level and above and Party organization secretaries have In 2024been provided including the 6 sessions of 5-day study seminar for central enterprises’ executives on “Learning andImplementing the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era” and the 3 sessions of 4-daycentralized rotation training seminar on “Learning and Implementing the Xi Jinping Thought on Socialism with ChineseCharacteristics for a New Era and the Guiding Principles of the Third Plenary Session of the 20th CPC Central Committee”. 3040 72587* All Party members have been organized to attend the “Joint Study Program for Central Enterprises’ Party Members Warning education sessions Party members coveredon Learning and Implementing the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era” on the
“SASAC’s e-Learning” platform achieving 100% training coverage.* All Party members have been organized to attend the “Training Program on Learning and Implementing the GuidingPrinciples of the Third Plenary Session of the 20th CPC Central Committee” on the website for CPC Party members 222 2
(www.12371.cn) achieving 100% training coverage.Issues reported from Complaints taken and
inspections addressed
The Integrity Education25 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 26
Improving Sound corporate governance is fundamental to sustainable development and stronger In 2024stakeholder collaboration. Taigang Stainless strictly adheres to the Company Law the Code
Corporate of Corporate Governance for Listed Companies the Basic Norms for the Internal Control of
Enterprises and other relevant regulations and requirements for listed companies. To improve 13.33 % 8 40+ 12
Governance the modern corporate system with Chinese characteristics the Company puts in place a Share of female executives on the Board meetings Proposals reviewed and Meetings of the Board’s
governance framework featuring clear responsibilities science-based standards and efficient Management passed specialized committees
operations ensuring long-term stability and growth.
5433.3%33.3%
Governance structure Supervisory Board meetings Shareholders’ Meetings External supervisors Share of female supervisors
To adapt to the revised Company Law and enhance governance we have overhauled the charters for TISCO and TISCO’s subsidiaries. Taking
this opportunity we have implemented the TISCO Subsidiary Board Development and Operation Plan (Trial) to build Boards of Directors at all
levels and establish a “1+N” governance system. This ensures that the Board follows standards in effectively fulfilling its strategic decision- IR management In compliance with applicable laws the Articles of Association the Corporate Information
making and risk-prevention responsibilities. Disclosure Policy and the Management System for Investor Relations the Company has
developed a 2024 investor relations (IR) communication plan to strengthen engagement with
The Company has established the Shareholders’ Meeting Board of Directors Supervisory Board and the Management. The Shareholders’ existing and potential investors. This helps improve investors’ understanding of the Company
Meeting is the highest decision-making body while the Board of Directors is accountable to it. The Board oversees four specialized committees: fully guarantees their right to know standardizes IR management and elevates corporate
the Strategy ESG and Technological Innovation Committee the Audit Committee the Nomination Committee and the Compensation and governance and reputation.Assessment Committee. These committees report directly to the Board. The Supervisory Board responsible for oversight reports to the
Shareholders’ Meeting. The Board Secretary prepares shareholders’ and board meetings manages documents and shareholders’ records and
handles matters related information disclosure.Information disclosure
The Board of Directors consists of 11 members: 7 directors and 4 independent directors. Independent directors comprising one-third of
the Board do not engage in corporate management but ensure independent and effective operations of the Board. Board members bring In 2024
The Company discloses information in strict accordance with relevant laws and
diverse expertise in corporate management human resources finance investment legal affairs and sustainability. With their extensive industry
normative documents. Based on lawful and compliant information disclosure we
experience they can provide professional suggestions for the corporate development and help guarantee the effective operations of the Board.explore to expand information disclosure oriented towards investor needs and helping 43
According to the Board-approved incentive and performance assessment policy for the management members the Company requires the investors make value judgments and investment decisions enhancing the depth and Announcements issued
management team to sign annual performance responsibility agreements that incorporate key indicators including green development intelligent breadth of information disclosure. With growing investor attention to ESG topics we
technology low-carbon transition and total energy consumption. Performance assessments are weighted to reflect the differences in executives’ regularly release reports to address the concerns and expectations of stakeholders. To
responsibilities. ensure timely accurate complete and legal information disclosure we disseminate key
updates on major projects operations energy conservation environmental protection 4 39
and technological innovation through media platforms including China Securities Periodic reports Jnterim reports
Journal Securities Times Shanghai Securities News Securities Daily and CNINFO issued issued
(http://www.cninfo.com.cn).The Shareholders’ Meeting
Investor engagement
Supervisory Board
Relying on the platforms such as the Shenzhen Stock
Exchange Easy Interaction (SSEEI) platform online reception
Board of Directors
days earnings briefings visiting research and visits the
Company bridge efficient communication with investors
through direct communication and diverse interaction to
engage extensively with investors on industry trends corporate
The Strategy ESG and The Compensation and
The Audit Committee The Nomination Committee governance development strategies sustainability and
Technological Innovation Assessment Committee business operations. Such interactions better communicate the
Committee Company’s values to investors and ensure that investors gain
a deeper understanding of the Company’s investment value
The Management enhancing the Company’s image in the capital market and Shareholders are Coming" activity of "Focus on high-quality
increasing investor recognition of the Company. development explore new quality productivity forces27 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 28
ERM To strengthen enterprise risk management (ERM) Taigang Stainless reinforces the “three lines of defense.” Taigang Stainless adheres to Chinese laws and regulations such as
The Company follows a process that includes identifying key risks developing work plans deploying Following Business the Law Against Unfair Competition the Anti-monopoly Law and the
control measures establishing major risk early warning indicators and preparing quarterly reports to track Ethics and Compliance Anti-Money Laundering Law. We continue to strengthen our leadership
implementation. In 2024 in terms of six level 1 categories—strategic financial market operational legal accountability framework law-based governance system regulatory
and other risks—along with level 2 risks associated with macroeconomic situations reform and business Requirements framework compliance management system and operational structure
transformation and technological innovation We provide precise evidence for subsequent adjustments to enhancing our compliance capabilities to ensure law-based decision-
risk prevention strategies by quarterly tracking the monitoring of risk indicators and analyzing the causes making and standardized management.of data fluctuations and build a more efficient and flexible risk response mechanism ensuring overall risks
were under control.Strengthen Adhering to systematic holistic and collaborative thinking we introduce the full-cycle managementapproach into anti-corruption and continuously strengthen efforts to promote integrated “non-integrity building corruption in three aspects.”
First line of defense Second line of defense Third line of defense
Deterrence against corruption Inability to corrupt Reluctance to corrupt
Inspection audit and discipline
Subsidiaries Functional departments
supervision departments
We continuously increase Centering on production and Based on integrated online and offline development an online exhibition
Manage risks at the source Play a regulatory and supporting Provide independent oversight pressure through severe business operations we establish hall is added to the Taigang Integrity Culture Education Base encouraging
and ensure compliance and role define boundaries and rules prioritize risk and compliance punishment with focuses on key 58 special supervisions and 33 newly hired employees and newly promoted officials to visit the base. We
individuals and critical areas. intelligent supervisions. We refine advance the practices of “study observation and discussion” to create a
effective risk prevention and improve departmental function assessments in audits and inspections
the “six-step” method for identifying unique “business card” for family-supported integrity and we establish a
management policies internal control and gather supervisory strengths to
and controlling integrity risks. “1+1+N” governance integrity publicity mechanism.compliance audit and oversight for risk raise supervision efficiency
prevention in all aspects
In 2024
297217100%167005
Newly identified New or revised Anti-commercial bribery and anti- Total visits to Taigang Integrity culture
Control Early
Key risk Work plan Quarterly integrity risk systems corruption training coverage for Integrity Culture educational bases built
measures warning
identification development reporting
deployment indicators points personnel with business disposal rights Educational Base at the primary-level
Conducting the 2024 Establishing the Developing targeted Defining major Compiling quarterly Standardized compliance management
key risk identification Company’s annual control measures for risk indicators and ERM briefings to track
surveys and identifying ERM working plan major risks improving the red- risk prevention and
Based on our experience of obtaining the British Standards Institution (BSI) domestic and international certifications for comprehensive compliance
annual key risks based orange-yellow-green mitigation efforts
the Company continues to deepen compliance management and fosters a culture of compliance making it an intrinsic part of employee conduct.on weighted scoring early warning system
In 2024 taking advantage of the revised Company Law we conducted a comprehensive review and revision of our corporate charter developed
compliance manuals covering key areas such as safety overseas operations and anti-corruption and enhanced our governance framework.Furthermore the Company has upgraded the smart legal information system which identifies
analyzes and evaluates legal and compliance risks online while standardizing streamlining and
To enhance the internal control system the Company analyzes internal control risks across development strategies human resources social digitalizing risk prevention. This upgrade significantly improves our law-based governance and
responsibility sales procurement and R&D. We incorporate risk and compliance management into the internal control process and system risk management capabilities. To promote a compliance culture we utilize annual meetings
translate external regulatory requirements into the Company’s internal policies to better the corporate internal management system. Additionally corporate social media accounts lectures and primary-level activities delivered by court
accountability for business misconduct is embedded in internal management systems to strengthen restraints. In 2024 the company has personnel. All newly hired employees are required to sign a Compliance Commitment Letter
completed 21 auditing projects with 100% auditing issues corrected by due date. resulting in a substantial improvement in overall compliance awareness. During the reporting
period the Company achieved a 100% employee signing rate of the Compliance Commitment The opening ceremony of the smart legal
information system
Letter with no major legal or compliance risk incidents.Deepening The Company implements the work ledger for the initiative to deepen SOE reform by integrating reform Fair Taigang Stainless operates with integrity in strict compliance with the Law Against Unfair Competition and
tasks into business management and annual priorities. In 2024 in the SASAC’s evaluation of SOE reform other relevant Chinese laws and regulations to foster a fair business environment. In 2024 the Company did
SOE reform projects The Company was recognized as an outstanding “technology reform enterprise” among central competition not receive any penalties from domestic or international market regulators for unfair competition practices
SOEs. nor were we involved in any unfair competition lawsuits contributing to an orderly market environment.Pursuing Excellence and
Nurturing New Quality
Productive Forces
National Call
Traditional manufacturing industries are the mainstay of China’s manufacturing industry and
the foundation of a modern industrial system. Promoting the transformation and upgrading of
traditional manufacturing industries is a strategic choice to proactively adapt to and lead the
new round of technological revolution and industrial transformation. The important initiative
that enhances the resilience and security level of the industrial chain and the supply chain is an
inevitable requirement for advancing new industrialization and building a manufacturing major
country at a faster pace which is crucial to the overall development of a modern industrial system.—Excerpt from the Guideline on Accelerating the Transformation and Upgrading of Traditional
Manufacturing Industries issued by the Ministry of Industry and Information Technology and seven
other departments
Corporate Actions
Committed to product and technological innovation Taigang Stainless focuses on key
national projects critical material supply and bottlenecks in new equipment materials.We are dedicated to establishing a cradle for original stainless steel technology and
developing a portfolio of cutting-edge proprietary products. These efforts aim to
address the challenges in supplying new materials for China’s high-end manufacturing
and contribute to Shanxi’s high-quality development.31 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 32
Upgrading Prioritizing the governance structure and institutional support for technological innovation Strategy Under the 2024–2026 Strategic Plan the Company is pushing forward with a global vision management we refine our organizational structure and systems to ensure the efficiency of breakthrough innovations and highly efficient management. We have realized industry-
Innovation innovation initiatives. leading technology innovation by developing premium products shaping brand excellence
and pursuing outstanding performance. Our goal is to lead the market of global stainless steel
Management products and technologies when we celebrate our centennial. Focusing on critical and frontier
technologies we have built strategic alliances and joint laboratories for technological innovation
with over 40 leading universities and research institutions at home and abroad. Through the
Governance innovation consortium we enhance collaborations with upstream and downstream partners to
develop new technologies and products promoting industry development.As we optimize our technological innovation management system we have established a four-tier governance structure comprising decision-
making consulting management and execution. This structure is supported by internal human and other resources and supplemented by Our stainless steel products and technologies reach world-class
external innovation resources. Under centralized management and planning as well as tiered implementation the Company adopts a process- quality levels with other products and technologies meeting
driven management approach to ensure systematic integrated and efficient execution. internationally advanced standards
Taigang Stainless implements the 2024 Technology Innovation Evaluation Plan Enhanced Plan for “One Headquarters Multiple Bases” We work to build a national base for high-end strategic material
Technology Innovation Management Patent Management Measures and Technical Secrets Management Measures. These policies aim to Three R&D and manufacturing and make ourselves a key innovator in
ensure systematic and law-based technology innovation management and strengthen the Company’s overall innovation capacity and efficiency. strategic specialty steel technologies and a cradle for original stainless steel
goals for
technologies
technology
innovation We aspire to build ourselves as the world’s most competitive high-
Driven by a strategy of technological innovation
tech enterprise with a complete stainless steel industry chain
with technology innovation as the primary driver of business
Decision-making Technology Innovation Committee performance and sustainable development contributing to China
Baowu Group’s vision of becoming a world-class enterprise
Advisory Sci-tech Expert Committee
Impact risk As China prioritizes technological innovation with continuous policy support and the global
* C entral Sci-tech Innovation Management Department technology industry rapidly evolves the Company faces significant growth opportunities and
(Technical Center) and opportunity multiple challenges including technological market and collaboration risks. Throughout
Management Subsidiaries
* Functional Coordination Management Department new product development we conduct contract reviews technical evaluations and design
* Technical Committee Subsidiaries management verifications based on systematic management protocols to effectively manage impact
identify and mitigate risks and seize emerging market and technology opportunities. This
ensures product-market fit reliable quality accelerated commercialization and stronger
* Core Execution Body (Technical Center) competitiveness.Execution * Specialized Execution Body (Functional Department) Subsidiaries
* On-site Execution Body (manufacturing units)
Impact management Risk management Opportunity management
Technology innovation governance structure
Before pilot production the Company The Company assesses technology G iven market demand and our
conducts contract rev iews that market and production risks during technological strengths we develop
integrate technical and manufacturing new product development. Technical di fferent iated new products and
considerat ions to a l ign product reviews are integrated early in the participate in industry exchanges to
design with market demand. This design phase to ensure feasibility stay informed of technology trends.helps minimize post-launch negative while initial pilot production validates The Company rap id l y marke ts
feedback and enable fast adjustments manufacturing stability to reduce mass successful new products to drive swift
based on user feedback to elevate our production risks. growth in market share.brand.External innovation resources as a supplement
Basic internal resources
Human resources + other resources33 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 34
Metrics and According to the 2023–2032 technology innovation plan and the 2024–2026 strategic plan Guided by an innovation-driven strategy Taigang Stainless improves its systems and
the Company has set goals to achieve global leadership in the quality of key stainless steel Seeking mechanisms while ramping up investments in R&D and product innovation. Employees are
targets products and technologies and become a core material supplier that supports China’s high- Innovation-driven encouraged to innovate which improves their innovation efficiency and capability. These
tech industries which points out the direction for and inject impetus into the Company’s efforts enable the Company to move up the value chain and industrial chain better adapt
technological innovation. Development to market dynamics and realize sustainable growth.Innovation Integrating technological and industrial innovation we adopt a structured and law-based
approach to advance sci-tech innovation strengthen R&D platforms refine incentive
1 200+ management management and form teams of high-caliber and highly skilled individuals. Through
systematic standardized and institutionalized management our capability and efficiency
Key stainless steel among Specialized technologies for of technological innovation have been improved laying a solid foundation for high-quality
the top worldwide product categories development and better competitiveness.
300+ Technology innovation targets 4+ million tons
New product varieties New and specialty products Optimizing innovation systems Improving management over Strengthening R&D
and mechanisms technological innovation platformsThe Company has issued and revised policies Following a “one headquarters multiple To pool stainless steel R&D resourcessuch as the sci-tech incentive policy and the bases” sci-tech innovation management we improve our Nat ional Corporate
R&D Project and Expenditure Management model the Company has refined the Technology Center and key faci l i t ies
Measures to stimulate employees’ intrinsic such as the National Key Laboratory for
To track progress and target accomplishment in technological innovation the Company develops an annual technology innovation business plan innovation management processes. For key
motivation and vitality for innovation. These Advanced Stainless Steel the National
and implements a process control mechanism with key metrics monitored each month. This provides strong support for continuous improvement R&D tasks monthly priority work plans and measures enhance the efficiency of research progress reports are issued with quarterly Physical and Chemical Laboratory and the
and innovation. project management and optimize the assessments on each unit to ensure a National Postdoctoral Research Center.utilization of funds. systematized and standardized innovation The successful restructuring of the National
agenda. This approach maximizes the Key Laboratory for Advanced Stainless
Steel is also realized. All these efforts have
In 2024 innovation potential of each base raising
overall innovation capacity and efficiency. improved research quality and productivity.CNY 7.62 billion 106
New product sales revenue New products In 2024
CNY 4.11 billion 20.34 % 4 3
R&D investment Share of R&D personnel Shanxi Provincial Science & Metallurgical Science &
Technology Awards Technology Awards
4.1%4
Investment ratio of new processes and new products Baowu Major AwardsRecruitment and Talent drives technological innovation. Adhering to the principle of “more competent moreopportunities” the Company maintains a balanced approach to attracting nurturing
training of high- utilizing and retaining talent. We have implemented a value-driven major project contracting
system enabling researchers to form teams freely choose research topics independently
caliber talent and get rewarded based on contributions. Immediate and targeted incentives fuel
innovation reinforcing both technological innovation and on-site technical support.Awarded35 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 36
Sci-tech talent team High-skilled talent team Achieving Focusing on “full variety full series and full coverage” and “high-end sophisticated products and new areas” Taigang Stainless implements an innovation-driven development strategy
Excellent to move up the value chain and industrial chain. We aim to meet the needs of major national The Company has built a high-caliber sci-tech team led by experts
projects and economic development in all aspects and make greater contributions to China’s
such as Wang Yide an academician of the Chinese Academy of We have established a high-skilled workforce
Quality technological progress and industrial advancement.Engineering Li Jianmin China Baowu’s Chief Scientist and Li led by national master craftsmen Lvy Tao andGuoping a distinguished expert under China’s “Ten-Thousand Niu Guodong. The team includes 14 nationalTalents Plan.” The team includes one academician of the Chinese technical experts 67 national steel industry
Academy of Engineering one China Baowu chief scientist one and Shanxi provincial technical experts and 35
China’s Baowu engineering scientist three TISCO scientists 14 chief technicians. Innovations in The Company pushes forward the development of mission-driven materials and advances R&D
senior chief researchers and 65 chief technology researchers. of new products. Multiple brand-new products in energy transportation aerospace and other
premium products sectors have been developed further expanding our product portfolio and filling the gap in the
world. This has boosted our market competitiveness at home and abroad. During the reporting
period we developed 106 new products with a total output of 810000 tons.IPR As an outstanding intellectual property right(IPR) holder in China we follow national strategies
and industry trends and venture into key and emerging technologies. We enforce rigorous Patent
protection Management Regulations and Technical Secret Management Regulations. These measures
leverage the value of patents and technical secrets in the protection of knowledge assets stimulate
Seven products launched globally Eight products launched
innovation and guarantee robust IP protection. for the first time domestically for the first timeIn 2024 the Company’s patent “composition control method for ultra-pure stainless steel usedin nuclear power” won second prize at the Shanxi Provincial Patent Awards. Another ten patents Stainless steel plates for nuclear power applications 1300 Ultra-pure ferritic stainless steel for plate-fin heat exchangers high-efficiency
received recognition at the National Invention Exhibition including four gold medals and six bronze MPa hot-formed wheel steel high-grade magnetic yoke steel high-strength quick self-bonding silicon steel ultra-pure ferritic stainless
medals. The Company also designed and registered 22 trademarks for seven key product varieties sheets for pumped-storage power stations aerospace-grade steel for heat exchangers steel for high-power locomotive axles of Fuxing
all approved by China National Intellectual Property Administration providing strong support for new high-chromium ultra-pure alloy base materials and durable trains pure iron for precision alloys for aerospace applications high-strength
product development. steel for breaker cylinders in extremely cold environments. stainless steel cold-rolled products for rocket fuel casings (Baoxin).In 2024
Launching the world’s widest lanthanum-containing iron-chromium-aluminum sheets
39385.24%10658
New patent applications Including invention patents Authorized patents Invention patents In February 2024 the Company successfully launched
the world’s widest and heaviest lanthanum-containing
iron-chromium-aluminum sheets setting new global
benchmarks in key component control and high-
1335 1000 temperature performance. The sheets widely used as critical materials in industrial furnaces food machinery
Total valid patents Including invention patents vehicles & transportation home appliances and
environmental equipment are recognized as one of
the most durable and heat-resistant iron-chromium-
aluminum materials with promising market prospects.Before this product the prevailing iron-chromium-
0.013 aluminum sheets worldwide were 950 mm wide. After
years of R&D we expanded the sheets to 1300 mm
Valid patents per CNY one million of revenues with a maximum coil weight of 18 tons suitable for
large-scale and continuous production. This milestone
boosted the global competitiveness of the Company's
iron-chromium-aluminum products while strongly
supporting the high-quality development of equipment
manufacturing in China.37 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 38
Quality Regarding quality as our lifeline the Company remains committed to quality excellence by
Successfully producing the heavy and wide N06625 nickel-based alloy hot-rolled coil implementing a rigorous quality management system. The Company strictly adheres to
management international standards and specific customer requirements throughout the production process
ensuring continuous improvement at every stage. At the same time the Company obtains
In December 2024 we trial-produced a wide N06625 nickel-based alloy hot-rolled
authoritative quality system and product certifications and improve product quality and service
coil weighing over 14 tons marking a major technological breakthrough in the
to earn industry recognition and customer trust laying a solid foundation for the Company’s
global specialty alloy market. As a solid solution-strengthened nickel-based alloy
long-term development.N06625 offers exceptional corrosion resistance so it is widely used in high-end
equipment manufacturing petrochemical applications and other industries. Our
attempt overcame key global challenges such as segregation during solidification Product The Company adopts fully automated equipment to precisely test product composition and mechanical properties. The
and narrow hot-working temperature ranges making STSS now the third quality system’s automated evaluation and real-time data transmission significantly enhance testing efficiency objectivity and
company worldwide—and the only one in China—capable of full-process large- testing accuracy providing customers with reliable quality assurance.scale production of this wide alloy coil. This innovation not only enhances China’s
competitiveness in the high-end metal materials market but also provides global
customers with more diverse high-quality and efficient materials driving industrial Quality To cement our quality management foundation and meet the stringent requirements of special industries the Company
upgrading and economic growth. system has acquired key quality system certifications including ISO 9001 JIS IATF 16949 TISI SIRIM GJB PED and CPR.certifications These certifications drive continuous improvements in our quality management.Authoritative In the field of specialty steels the Company has obtained multiple authoritative product certifications including ship
product use certifications from seven countries technical assessments for pressure equipment materials recyclable materials
certifications certifications and the French GTT certification for LNG vessel materials.New precision strip steel used for high-end semiconductor “core” components* T he “Modeling Innovation and Application of Multi-Category High-Quality Integration Based on Quality Technology" project won theIn March 2024 in response to a tight supply of semiconductor lead frame materials we assembled a cross-departmental research second prize at the China Association for Quality’s Technical Quality Awards.team to overcome key technical challenges including alloy purity thermal expansion coefficient and surface quality control. As a
result we developed 4J42K precision alloyed steel strips. After rounds of process improvements we realized stable production totaling * The Company’s austenitic stainless steel cold-rolled sheets and strips ultra-pure ferritic stainless steel cold-rolled sheets and strips and
several dozen tons in small batches. Almost equivalent to imported counterparts the strip steel met customers’ quality requirements. welding gas cylinder steel strips were awarded the Metallurgical Product Physical Quality Gold Cup for outstanding quality.With a thickness range of 0.1-0.4 mm the steel offers excellent magnetic electrical processing and welding properties making it an
ideal material for semiconductor lead frames. The breakthrough not only resolves quality and supply instability for domestic lead frame
materials but also enables large-scale supply to industry leaders reducing pressure on imports and enhancing the competitiveness of
China’s semiconductor lead frame materials. In 2024
753299.68%181
Quality management New quality Effective quality Product percent of pass QC team activities held
systems revised management systems management systems
4300 medium-thickness plate production line receives EU CE marking
In March 2024 the Company’s 4300 medium-thickness plate production line obtained
CE marking for 15 steel varieties including PED certification for 13 stainless steel varieties
and CPR certification for 2 carbon steel varieties. As a key export product stainless steel
medium-thickness plates feature high production capacity and superior quality. Through
intelligent upgrading and process optimization the Company has strengthened process
control and ensured effective quality management continuously improving product quality.Our products have wider and thicker specifications high-end varieties and excellent
quality. The newly certified products under CE marking are widely used in industries with
high safety requirements such as machinery chemicals petroleum and construction
offering domestic and international customers more reliable options. This certification also
reinforces our market position and facilitates further global expansion.39 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 40
Upgrading of smart As we advance smart manufacturing we implement special projects to replace manual labor Supporting Leveraging our resources and expertise Taigang Stainless promotes coordinated development with mechanization reduce the workforce through automation and achieve unmanned between regions and between upstream and downstream players. The Company deepens
manufacturing intelligent operations. By exploring AI-driven innovations we have significantly improved Industrial the integration of industry academia and research contributes to the formulation of industry
production quality and efficiency while reducing operational costs injecting strong momentum standards and facilitates the effective sharing of knowledge technology and resources. By
into our digital transformation and sustainable development. Upgrading fostering close cooperation across the supply chain the Company supports the transformation
and high-quality development of the stainless steel industry.Data value exploration Smart mining development
Closer industry The Company has established in-depth exchange and collaboration mechanisms with
governments upstream and downstream enterprises and research institutions. Through
By leveraging existing resources we innovate in value-added Leveraging the establishment of intelligent non-coal mining collaboration strategic technology innovation alliances shared laboratories R&D centers and industry-
data applications improve data quality and optimize data demonstration projects at Yuanjiacun and Ekou Iron Mines in academia-research cooperation bases we gather industry expertise and resources to incubate
models. This enables us to uncover data possibilities for Shanxi Province the Company has promoted smart mining. new technologies and products injecting strong momentum into the industry’s prosperity and
improving profitability expanding markets reducing costs By integrating digital technologies into mining operations we advancement.optimizing processes enhancing quality and ensuring stable enhance technical support and drive the efficient development
equipment operations. In addition we gather cases for of the mining sector.innovative data applications. Promote industrial clusters
Taking the lead in building the Taiyuan Special Steel Materials Cluster by fully leveraging the leading roles of key enterprises. The cluster upstream
In 2024 utilizes Taiyuan’s abundant iron ore and coking coal resources while midstream companies serve as the core of a specialty steel manufacturing
and deep processing base effectively promoting a better allocation and use of resources. Downstream players supply high-quality specialty steel
materials to equipment manufacturers such as Taiyuan Heavy Machinery Group Co. Ltd. Shanxi Yangmei Chemical Machinery (Group) Co. Ltd.
43 Taiyuan Boiler Group Co. Ltd. and Jinxi Axle Company Limited. The cluster drives product upgrade and sharpens market competitiveness with its innovation capabilities ranking No.1 in all regions of Shanxi Province for many years fostering strong industrial competitiveness overall.
Unmanned operation projects
promoted
Advancing multi-party collaborative innovation
18 We collaborate with domestic universities and research institutes and apply for national and Shanxi provincial key R&D programs. We have submitted applications for 24 projects. InCompany-level technology 2024 we undertook six key R&D projects in Shanxi Province including the “developmentR&D projects set up and application of high-nitrogen high-strength stainless steel plates for special vehicleprotection.” Additionally we led 10 projects covering national key R&D programs Shanxi’s
85+ “open bidding for selecting the best candidates” projects and provincial key R&D plans all Industry-academia-research collaboration % of which have passed final assessments. with Xi’an Jiaotong University
Digital control rate for key
processes
Urea feeding robot realizes intelligent SCR catalyst flow Contribution to standard formulation
The Company leads and promotes the standardization of stainless steel and related materials to align with global standards. We have advanced
AI-powered upgrading in steelmaking – new manufacturing execution system (MES) launched
the ISO 4653 international standard project to the committee draft stage and contributed to the release of the ISO 6435 international standard.Four national standards which we have helped formulate or revise including the Specification for Cold-Rolled Alloy Structural Steel Plates for
In May 2024 after 398 days of development the northern section of the Aerospace Applications have been released providing solid technical support for improving product quality and facilitating the industry upgrade.Company's No.2 steelmaking plant embraced smart transformation with
the official launch of a new Manufacturing Execution System (MES). As the
intelligent center for production management the system integrates AI-driven In 2024
models to address operational bottlenecks through 26 targeted management
and business improvement measures providing a solid foundation for lean We contributed to the formulation and release of following standards
operations. The new MES system localizes metallurgical MES as a domestic
software substitute while fostering technological innovation and industrial
upgrading. This smart transformation injects fresh momentum into the plant’s 1 4 1 5
development and sets a benchmark for digital transformation in the industry. International standard National standards Industry standard Group standardsBuilding a Beautiful China
Through Green and Low-
Carbon Development
National Call
It is necessary to vigorously promote green and low-carbon economic and social development
accelerate the green and low-carbon transformation in the fields of energy industry
transportation urban and rural construction and agriculture strengthen green technological
innovation and enhance the internal driving force and innovative vitality for building a beautiful
China.—Excerpt from the Opinions of the Central Committee of the Communist Party of China and the
State Council on Advancing the Construction of a Beautiful China
Corporate Actions
The Company proactively takes on the mission of environmental protection
continuously advances the initiatives to address climate change and protect the
ecological environment and comprehensively improves its capabilities and standards
in green and low-carbon development. We strive to build a resource-conserving and
environmentally friendly enterprise for high-quality development.43 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 44
Strengthening The Company strictly implements environmental protection requirements. We improve our Metrics and targetsenvironmental management system and ensure its effective operation. While comprehensively
Environmental strengthening our environmental risk management we clarify the primary responsibility for
environmental protection to fully support the Company’s compliant and green production and Based on a problem-oriented approach we sign the Energy Conservation Carbon Reduction and Environmental Protection Target Responsibility
Management operations. Letter with our subsidiaries at the beginning of each year. This document covers three binding targets including the total emissions of sulfur
dioxides nitrogen oxides and chemical oxygen demand as well as 16 key task metrics and requires regular monitoring of their progress
ensuring the effective control of all environmental emission indicators.Governance Indicator Unit Targets in 2024 Progress in 2024
The Company has established a three-tier environmental protection management framework consisting of the Environmental Protection Sulfur dioxide emissions t < 650 628.87
Management Committee headed by the Chairman the Department of Ecology and Environment (the Carbon Neutrality Office) and the
environmental protection departments of subsidiaries. They supervise and manage waste gas wastewater solid waste noise as well as energy Nitrogen oxide emissions t < 3000 2819.97
conservation and carbon reduction. To ensure effective management of environmental risks we prepare a quarterly briefing on comprehensive
risk management and report it to the Company’s Party Committee each quarter. Chemical oxygen demand (COD) emissions t 85 56.22
We have formulated management regulations such as the Energy and Environmental Protection Management Measures the Provisions on
the Responsibility for Ecological Protection (Trial) the Accountability Management Measures for Environmental Protection Incidents and the Utilization rate of solid waste % 99.5 99.53
Implementation Plan for Differential Evaluation of Environmental Protection Management. Additionally we continuously improve the Company’s
environmental protection through environmental management system certification.In 2024
We organize regular training sessions on the laws regulations knowledge and skills on ecological protection enhancing employees’ awareness
management capabilities and professional skills in this aspect. In 2024 the Company launched 10 environmental protection training programs
concerning the certification for environmental management system internal auditor hazardous waste pollution prevention and control
CNY 455 million CNY 293 million 0 11
technologies management technologies for online monitoring facilities of pollution sources soil and groundwater pollution prevention and control
Total investment in environmental Total Investment in energy-efficient Environmental Emergency drills
as well as relevant environmental protection forums with 670 participants trained totaling 78 class hours.protection projects technology retrofits protection penalty organized
Strategy The Company has enlisted A-level environmental performance for ultra-low emissions across the entire production process with Grade A
performance in ultra-low emissions.In accordance with action plans such as the Energy Efficiency Benchmarking Work Plan (2023-2025) and the Three-Year Action Plan for Tackling
Key Challenges in Nuclear and Radiation Issues (2024-2026) the Company systematically identifies and manages environmental risks concerning
the discharge of hazardous solid waste noise pollution radiation soil and groundwater contamination and pollutant discharge permits. We have
also formulated the Carbon Peaking and Carbon Reduction Action Plan clarifying the “13473” green and low-carbon development mode and
goals. These efforts will contribute to achieving China’s 30·60 Decarbonization Goal and building a beautiful China.Impact risk and opportunity management
By fully integrating environmental risks into the Company’s risk management process we continue to strengthen
environmental risk prevention and control and strictly manage all types of environmental risks. Based on our
regular environmental monitoring and evaluation system we regularly monitor and prevent environmental risks
through “specialized + on-site” inspections supervision guidance and other management models.The Company pays much attention to environmental risk management throughout the entire life cycle of
projects. We require the environmental impact assessment at the feasibility study stage of new projects
that shall only be launched with approval from relevant government authorities. We strictly follow 'Three
Simultaneities' principle--simultaneous design simultaneous construction and simultaneous commissioning of
safety facilities occupational hazard control systems and environmental protection installations with the main
project--in project construction and take ecological and environmental protection measures maximizing the
prevention and reduction of project-related environmental risks. To tackle sudden environmental incidents we
have formulated emergency plans such as the Environmental Emergency Response Plan and the Radiation
Accident Emergency Response Plan. Our regular emergency drills and timely improvement of environmental
risk management measures also help effectively prevent and manage environmental accident risks.45 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 46
Implementing Taigang Stainless emphasizes the management of wastewater waste gas and solid waste. We advance the comprehensive prevention and control of air water and soil pollutions as well Waste gas management
Green as the overall utilization of solid waste continuously improving resource utilization efficiency.We also accelerate the green and low-carbon transformation of production modes driving a The Company has formulated the Management Measures for the Prevention and Control of Waste Gas Emission Pollution strictly
Production dynamic synergy of pollution control and carbon reduction. controlling environmental risks of air pollution and enhancing Grade A performance in ultra-low emissions. We strengthen the management
of unorganized emissions through mobile monitoring drone aerial photography online monitoring video surveillance and cross-checks.Based on the principle of “four prohibits” and the incident management mechanism we strictly manage the incidents of organized
excessive emissions and unorganized smoke emissions.Reducing pollution The Company steadily advances energy conservation and carbon reduction waste gas ultra-
low emission compliant wastewater treatment and the building of a zero-waste enterprise. In 2024 focusing on the emissions of air pollutants the Company completed the desulfurization and denitrification retrofitting project for
emissions We strictly comply with permitted emissions specified in discharge permits to achieve the coke oven flue gas at the coking plant as well as the low-carbon energy-saving comprehensive utilization retrofitting project for the 300MW
overall control of pollutant emissions. Through measures like system establishment process unit etc. All the Company’s air pollutant emission indicators met the requirements of ultra-low emissions with key processes achieving the
optimization and technological innovation we enhance the management level achieve 100% emission level of advanced treatment.standard discharge of three wastes aiming to build a green steel plant in harmony with nature.In 2024
In 2024 by actively participating in environmental rights trading including emission rights the
Company sold 147 tons of particulate matters and 47 tons of nitrogen oxides reduced through
ultra-low emission retrofitting with a trading revenue of approximately CNY 1.67 million. 288485.89 million m3 1959 tons
Waste gas emissions Particulate matter emissions
Wastewater management
The Company strictly complies with the regulatory requirements of “Cleaner Water into the Yellow River”set by Taiyuan City and Shanxi 1482.88 tons 1.33 tons 5.79 tons/km2/month
Province. We have formulated the Management Measures for the Prevention and Control of Wastewater Emission Pollution accordingly.Volatile organic compound (VOC) Ammonia nitrogen emissions Atmospheric depositions in
Through “precision water use control + specialized rectification of drainage” we steadily improve the reuse efficiency of wastewater emissions the plant area
membrane and the quality of water supply enhancing the efficiency of water circulation. During the reporting period the Company
completed the comprehensive management project for desulfurization wastewater from the 2×300MW power generation units and fully
connected the Phase VI pipeline of sewage inflow to the neutralization station. These measures have significantly improved the water
quality indicators of the entire industrial wastewater system and greatly reduced the operational load of subsequent advanced treatment of
Advanced treatment project of heating furnace flue gas from the 4300mm production line at the
membrane units.Company's Hot Rolling Plant
In 2024
In January 2024 the project was
officially put into operation. As a typical
22.48 million m3 6.31 million m3 0.52 ton of water/ton of steel case of “super ultra-low emissions” for
heating furnace flue gas it has achieved
Drainage volume Volume of wastewater discharge Volume of wastewater discharge per ton of steel
targeted emission concentrations of
particulate matters sulfur dioxides and
nitrogen oxides at no more than 5 15
24.93 99.02 and 100 milligrams/m3 respectively. million m3 % After putting into operation the project
Volume of urban sewage and reclaimed water treated Water reuse rate has signif icantly reduced pollutant
emissions with an annual reduction of
approximately 10 tons of sulfur dioxide
emissions and 20 tons of nitrogen oxide
Comprehensive treatment project for desulfurization wastewater from 2×300MW power generation units emissions.commence operation
The Company has launched the comprehensive treatment project for desulfurization wastewater from 2×300MW power generation
units. Based on the technological route of “low-temperature triple-effect flash evaporation + bypass rotary spray drying” the Company Advanced treatment project of
boasts the wastewater treatment capacity of 25 tons per hour. In September 2024 the project was put into operation. Subsequently heating furnace flue gas from the
the recovery rate of the low-temperature multi-effect flash evaporation concentration system exceeded 80% and all the water quality 4300mm production line at the
test results met performance indicator requirements with the recovered water quality being superior to that of industrial water. Through Company's Hot Rolling Plant
such efforts the Company has achieved zero wastewater discharge at the source of the desulfurization system for its 300MW power
generation units and promoted a synergy of pollution control and carbon reduction among its thermal power units.47 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 48
Waste management Noise management
The Company actively builds zero-waste plants. We have released the Work Plan for Building a Zero-Waste Group and the Management The Company works to establish an environmental protection intelligent management and control system intensifying noise monitoring at key
Measures for General Industrial Solid Waste . We steadily maximize the reduction of solid waste at the source minimize its disposal from noise source areas. The Company continuously improves our noise reduction measures to ensure a quiet plant. The Company also strengthens
the plant standardize its collection and storage optimize its utilization and discharge promote the resource-to-product transformation noise control to prevent any disturbances to the public during special periods including the national college entrance examination and the highand enhance intelligent supervision and monitoring of solid waste aiming to achieve the goal of “zero solid waste leaving the plant no school entrance examination.solid waste from the plant.” To reduce waste at the source we take measures such as replacing sulfuric acid with hydrochloric acid for
acid washing and reusing clarified dilute acid water and promote the reuse of iron-containing dust and sludge from water treatment in Radiation risk management
production. To better utilize solid waste resources we have completed and put into use the sinter machine head dust collection and
utilization project effectively preventing environmental risks associated with solid waste. The Company actively organizes specialized training sessions on radioactive sources and those from Class II radiation devices radiation
protection instruments and meters. Through monthly inspections of hidden dangers routine professional management special inspections
The Company has formulated the Regulations for the Standardized
during key time frames as well as emergency drills for radioactive sources and radiation devices the Company comprehensively enhances the
Management of Hazardous Waste. To improve the harmless utilization
essential safety of our radiation-related operations.and disposal of hazardous waste we adopt an integrated governance
and management model focusing on coordinated utilization and
disposal during the production (to control risks associated with off-
The sustainable use of resources is crucial for environmental protection. The Company actively promotes
site disposal) supplemented by entrusted qualified organizations for Resource
the recycling of water energy mineral resources and solid waste strengthen resource conservation and
disposal . We have also built facilities for the regeneration of waste
vigorously develop circular economy effectively improving resource utilization efficiency.hydrochloric acid and the treatment of alkaline oily wastewater recycling
and ensure their efficient operation strengthening the disposal of
hazardous waste. Our hazardous waste management information
system regulates the treatment of hazardous waste and its Water resource management
compliance with external disposal ensuring that our hazardous waste
management meets relevant national requirements. In 2024 the On December 2 2024 the unveiling ceremony of the North
Company engaged a third party to track and manage the risk control China region of China Baowu Hazardous Waste Utilization The Company’s water sources mainly include reclaimed water from urban sewage and In 2024
of entrusted utilization and disposal of solid waste and organized and Disposal Center was held in Taigang Slag Field nearby urban sewage treatment plants tap water and surface water from the Fen River.specialized training sessions on hazardous waste pollution prevention The Company upholds the principle of “sourcing water properly using water as less asand control technologies essentially bringing risks associated with possible and achieving zero discharge” and standardize the use and management of 16.79 million tons
hazardous waste under control. water resources. The Company also increases the use of unconventional water sources Fresh water consumption
such as municipal sewage and reclaimed water improve the quality of membrane-
In 2024
based produced water reduce water use at the source adopt water-saving facilities and
equipment in production and implement water-saving measures. Those initiatives help us
7.17 7.13 0.68 actively explore our water-saving potentials and promote water conservation throughout million tons million tons tons/ton steel 1694.68 million tons
production and other procedures. In 2024 the company has set a target of freshwater
General industrial solid waste Used General industrial solid waste production
consumption per ton of steel of 1.78 tons of water/steel and has consumed 1.39 tons Circulating water
generated strength is not higher than
freshwater of water/steel actually.The Company insists on independent innovation. For example advanced water-saving The Company's water-saving experience was
0.69 0.55 0.14 100 technologies such as differentiated water supply closed-loop circulation evaporative air included in typical cases of water-saving million tons million tons million tons % cooling reverse osmosis membrane treatment and advanced treatment of municipal industrial enterprises in the high-quality
Hazardous waste generated Used and treated independently Treated by entrusted qualified Safe disposal rate of domestic wastewater are applied across all procedures. The Company has successively development of the Yellow River Basin
external units hazardous waste launched new-type wastewater treatment projects including the rolling area wastewater released by the Yellow River Conservancy
treatment system the smelting wastewater treatment system the membrane-based Commission of the Ministry of Water
water treatment system the domestic sewage treatment system the reclaimed water Resources.advanced treatment system and the rolling steel wastewater differentiated treatment
system greatly improving water use efficiency.Sinter machine head dust collection and utilization project at the processing plant
Freshwater consumption per ton of steel (tons of water/steel) Wastewater reuse rate per ton of steel (%)
Taigang Stainless launched the sinter machine head dust collection and utilization project at the processing plant and put it into use
in May 2024. After putting into operation the dust from sinter machine heads were fully treated within the plant reducing the risk
20211.93202184.95
of environmental disposal traceability. Moreover iron-containing filter cakes generated were reusable for sintering with potassium
chloride products sold externally for added value maximizing the circular utilization of solid waste resources. The project saved 2022 1.81 2022 91.84
external disposal fees of CNY 42.5 per ton and transportation fees of CNY 34.16 per ton with an annual profit of about 2 million
20231.80202391.80
yuan achieving the goal of “no solid waste from the plant and products as the only outputs generated.”
2024 1.39 2024 99.0249 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 50
Energy Utilization Circular economy
The Company is one of the pioneers implementing energy system management in China’s steel industry. The Company has established The Company attaches great importance to the comprehensive utilization of solid waste. Focusing on industrial solid waste such as blast
a complete set of Integrated System Management Manual the Energy Management Measures the Measures for Energy Metering and furnace slag steel slag and fly ash we efficiently operate facilities for ultra-fine powder production from blast furnace slag and resource
Management and the Job Descriptions. The Company guides each position to carry out energy management in accordance with strict utilization of steel slag aerated concrete production lines using fly ash and standard brick production lines and produce green products
standards and continue to improve and enhance our management through the PDCA (Plan-Do-Check-Act) cycle systematically reducing providing green building materials for urban construction.energy consumption.The Company sets energy consumption targets at the beginning of each year and successively breaks them down to various departments Indicator Unit Targets in 2024 Progress in 2024
and units for effective implementation. We annually organize an internal audit of the energy system and an external audit to examine
the operation of the system and identify issues within the energy system and continuously address these issues through rectification Recycled steel scrap 10000 tons 115 117
actions. In 2024 the Company revised and issued the Management Measures for Energy Reviews the Measures for Energy Management
Evaluation and the Specifications for Energy Management Evaluation encouraging our subsidiaries to strengthen energy management
and the research and application of energy-saving process technologies based on monthly performance reports and quarterly evaluations
In 2024
maximizing energy efficiency.
99.53%24.24%Taiyuan Stainless Steel won the “Advanced Enterprise in the Three-Year Action Plan for EnergyEfficiency Benchmarking under the Steel Ultimate Energy Efficiency Project in 2024” and the “Best General industrial solid waste comprehensive utilization rate Return-to-production utilization ratePractice for Dual Carbon Energy Efficiency Benchmarking Demonstration Process/Equipment” by
China Iron and Steel Association.Biodiversity Iron and steel companies mainly put pressure on biodiversity through greenhouse gas emissions Indicator Unit Targets in 2024 Progress in 2024 pollution and waste emissions water use land use and other factors. The company attaches great
protection importance to the protection of local biodiversity in the whole process of project site selection
Comprehensive energy consumption per ton of steel kgce/t No more than 528 525.01 construction production and operation and takes necessary measures to reduce the impact on
biodiversity as much as possible.Residual energy and waste heat recovery per ton of steel kgce/t No less than 104 110.5
Site selection Construction
No.9 coke oven riser gas waste heat recovery and utilization project at the Company's Coking Plant
Through environmental impact assessment We strictly enforce on-site environmental protection and conduct responsible
In line with the national strategy of “developing a circular economy and promoting energy conservation and emission reduction” and during the stage of project feasibility study construction management. We increase the frequency of inspections and
the energy-saving technology promotion requirements of the Baowu Group the Company launched the No.9 coke oven riser gas we systematically analyze the impact of the intensity of assessments at construction sites and strengthen the
waste heat recovery and utilization project at the coking plant. Waste heat from the riser gas was collected via heat exchanges to projects on the ecological environment management of processes such as earthwork operations demolition
produce steam achieving the goals of energy conservation carbon sequestration and emission reduction. In July 2014 the project and argue the technical feasibil ity of concrete construction slag transportation and material transport to minimize
was put into use. After operation the hourly steam recovery rate reached approximately 11.3 tons of steam per hour with an annual environmental protect ion measures. the Company’s environmental impact. In 2024 the Company conducted 47
saving of 9599.96 tons of standard coal. Construction can commence only after the inspections for environmentally friendly and responsible construction and no
assessment is approved by relevant gove. environmental incidents occurred in the construction field.In 2024
Production Operations
6.91 million tons of standard coal 6.87 million tce 274.07 GWh We strictly monitor and manage the emissions of exhaust gases Based on geographical locations seasonal
Total energy consumption Including Direct energy consumption Green electricity used by wastewater and waste materials and organize regular inspections characteristics and climatic features of the plant
photovoltaic power generation and on hidden dangers in soil and groundwater to avoid negative impacts area we grow green plants accordingly and
green electricity purchase on the natural ecological environment. Based on supporting sewage improve the environmental quality aiming to build a
treatment facilities we collect and re-treat domestic sewage from garden-style plant . In 2024 the Company planted
0.43 million tce 0.83 tce/ ten thousand yuan surrounding residents and industrial wastewater. The reclaimed water is 1604 trees and 1598 shrubs with an investment
used both as supplementary water for the Company’s production and of CNY 34.17 millionwith a greening coverage rate
Indirect energy consumption Energy consumption per CNY ten thousand of output value
as water for urban landscaping protecting the Fen River water system. of 35.15%.51 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 52
Advocate for Upholding the concept of “green office and low-carbon lifestyle” we encourage employees to Releasing EPD
adopt a simple moderate green and low-carbon lifestyle and work style. We set the summer
green office air conditioning temperature no lower than 26 degrees Celsius use energy-saving lighting
and recycle water in office areas. Other measures include paperless office practices video Environmental product declaration (EPD) is an internationally recognized tool for In 2024
conferences double-sided use of paper and scientific classification of office waste and a low- quantifying the environmental impacts of a product throughout its entire life cycle.carbon application. Our goal is to reduce the consumption of office resources and implement The release of the document not only enhances the market competitiveness of
green office practices. products but also provides reference for downstream customers when selecting 9 3
green materials. In 2024 Taigang Stainless Steel released EPDs for four categories
of cold-rolled steel sheets (316L SUH409L PTG316L 430LX). We plan to widely Steel product Low-carbon products
EPDs developed and tested
apply relevant products in sectors such as construction automotive machinery
With a focus on our main business market we improve our supply system for green stainless home appliances petrochemicals transportation and warehousing.Making Green steel products throughout the entire chain ranging from basic raw materials to end consumer
a Defining goods. We work to expand the supply of green and low-carbon products and accelerate
the development of green and low-carbon transportation and packaging methods. A carbon Green The Company precisely identifies customer needs and logically selects packaging methods.we Feature emission data chain for stainless steel products has taken shape ranging from raw material attempt to reduce the use of packaging materials based on simplified packaging solutions and their
production to steel product shipment. It will help reduce the environmental impact of products packaging consumption by replacing elaborate packaging with simplified or lightweight packaging. The Wire
throughout their entire life cycle. Products Division of the Company uses recycled refractory wood pallets for packaging steel billets
achieving the reuse of packaging materials. In 2024 the Company made market research and
benchmarking analysis on packaging. Through measures such as thinning inner and outer protective
Eco-friendly The Company id driving product iteration and upgrading by prioritizing green and low-carbon panels narrowing outer protective rings and reusing packaging materials the Company has reducedfeatures such as “corrosion resistance energy saving high strength lightweight and long the consumption of packaging materials successfully minimizing resource and energy consumption.products service life.” We vigorously develop high value-added high-tech and eco-friendly stainless steel
products and conduct a life cycle assessment (LCA) of these products to track their carbon The Company continuously improves clean transportation accelerates the adjustment of
footprints facilitating the green and low-carbon development of steel-using industries and the Green transportation structures and promotes new energy transportation methods. High-emission transport
entire society. In 2024 the Company became the first in the world to pass the SCS recycled logistics vehicles are phased out achieving a higher level of clean transportation. We have also launched a
content certification for its stainless steel precision strip with the highest 98% recycled content digital logistics system which reduces cross-transportation based on its automatic design of optimal
demonstrating our leading circular utilization of green products. logistics routes. This system lowers logistics costs and effectively improves production efficiency while
reducing energy consumption during the transportation.Developing low-carbon steel
The Company actively promotes the development Prioritizing rail transport Optimizing road transport Promoting clean transport
of low-carbon products. In 2024 we released three
We take rail transport for all We ensure that 50% of the We develop and implement
representative low-carbon products: austenitic cold-
raw materials and products existing transport vehicles shall electric heavy-duty truck
rolled stainless steel strip/stainless steel precision strip
that can be transported by be electric vehicles and others transportation plans for superfine
(SUS304/304 SUS316L/316L) and ferritic cold-rolled
rail as much as possible. shall comply with the National powders and steel products.stainless steel strip (SUS430LX). These products
VI emission standards.are widely used in national economic sectors
including electronic information and home appliance
manufacturing. According to the on-site verification by
TüV SüD the carbon footprint of these low-carbon
products was reduced by over 60% compared with
conventional processes creating a green and efficient
value point for stainless steel products. Launch event of low-carbon stainless steel products 80.2 % 85 %
Clean transport ratio Utilization rate of hybrid
By the end of 2024 locomotives
Hot-rolled carbon steel coils are enlisted as
15 100 % one of the first batch of eight major low- 210.81 tons/10000 ton-kilometers
carbon emission steel products released Comprehensive energy consumption of locomotives
Green products owned Steel scrap used in electric arc furnace to
advance ultra-low carbon process by China Iron and Steel Association(CISA)53 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 54
Tackling Climate As global climate change intensifies the steel industry faces unprecedented challenges and Climate strategiespressures. The Company fully recognizes the potential impacts of climate change on its
Change operations and actively explores effective pathways to achieve carbon peaking and carbon
neutrality goals. The Company strategically strengthens climate-related risk management and To address medium- and long-term climate change risks the Company has formulated the Carbon Peaking and Carbon Reduction Action Plan
takes measures to reduce its carbon emissions and minimize the environmental impact of its proposing the “13473” green and low-carbon development model (1 low-carbon development center 3 low-carbon development stages 4 low-operations. carbon implementation steps 7 low-carbon development pathways and 3 low-carbon management platforms) and setting targets of “peakingcarbon emissions by 2023; reducing carbon emission intensity by 6% by 2025; lowering carbon emission intensity by 16% by 2030; striving toreduce carbon emission intensity by 30% by 2035; and working to achieve carbon neutrality by 2050.”
Climate We set forth a comprehensive and responsibility-specific climate governance framework to
ensure the effectiveness of climate change risk management initiatives. To enhance our climate To manage climate change impacts risks and opportunities the Company accelerates the development and promotion of green and low-carbon
governance governance capabilities we have incorporated climate-related impacts risks and opportunities products and continuously optimizes its product structure to enhance market competitiveness and low-carbon premium capability. Additionally
into our strategic practices major transaction decisions and risk management. the Company actively conforms to national policies on green transformation and completes ultra-low emission retrofitting and advanced
treatment of air pollution. These efforts not only generate positive social and environmental benefits but also create favorable conditions for our
stable operations enhancing our resilience.Governance structure
The Environmental Protection The Carbon
The Management Team To become a global leader in
Management Committee Neutrality Office low-carbon development in the
stainless steel industry
The Environmental Protection Management Committee The management team reviews The Carbon Neutrality Office
is composed of the CEO (serving as the director) the the annual green and low-carbon oversees various green One core
general manager (serving as the first deputy director) the budget engages in due diligence and low-carbon tasks
Company’s leaders in charge of energy environmental during acquisitions and divestitures such as timely revision of A low-carbon以 de“ve提lop高me碳nt生 fra产m率ew”ork为 ce中nt心ere的d 低on 碳en发ha展nci体ng系 carbon productivity
protection and low-carbon work (serving as the executive and advises on issues such as plans implementation of
deputy director) and other relevant leaders of the Company environmental protection low-carbon carbon peaking and carbon Three stages
and the chief responsible person of each department development and climate change. The reduction action plans tighter
and unit. The Environmental Protection Management team also deliberates on major climate management of carbon
Committee is responsible for comprehensively advancing policies or special reports on investment emission data statistics and
Five-year steadfast 15-year long-term
government initiatives at all levels including advanced projects associated with the Company’s accounting carbon asset Ten-year vision
action outlookpollution control the vision of “Cleaner Water into the Yellow operations. Climate-related risks management and trading (2026–2035)(2021–2025) (2036–2050)River” ensuring the flow of clear water into the Yellow and opportunities are assessed and carbon footprint evaluationRiver” zero-waste group energy conservatiervation and managed in line with relevant climate and EPD publication of key
carbon reduction as well as climate risk and opportunity policies and regulatory requirements. products and carbon emission Four steps
management. According to work needs and the division The team also guides and advances the reduction ensuring the
of professional responsibilities several sub-committees Company’s low-carbon work through a progress of plans and budget Carbon emissions Steady Further Carbon neutrality
peaking reduction reduction
have been established with their heads appointed from the top-level design so as to mitigate risks targets.Company’s divisional leaders. and seize development opportunities.Seven pathways
Maximizing Optimizing Building Deepening
energy structural green supply integration with
Governance mechanism efficiency processes networks cities
Revolutionizing Integrating Exploring
The Company strictly observes the requirements of the Ministry of Ecology and Environment and other departments for submitting techniques and intelligent control advanced
professional environmental protection and low-carbon reports data and other relevant information. In terms of environmental control the technologies systems materials
Company submits quarterly and annual reports on the implementation of pollution discharge permits through the National Pollution Discharge
Three platforms
Permit Management Information Platform. We also submit quarterly and annual environmental statistics through the Ecological Environment
Statistics Business System of the Ministry of Ecology and Environment. Based on our environmental incident information reporting
mechanism we immediately report to local departments of ecology and environment by phone in the event of environmental emergency. As Digital carbon information Full lifecycle assessment Online carbon emissions
management platform platform monitoring platform
for low-carbon control the Company's coal-fired power generation units engage in the carbon emission information reporting for the power
generation industry by submitting monthly reports through the National Carbon Market Management Platform. As a steel enterprise the
Company also submits its annual report through the platform. The “13473” green and low-carbon development model
In 2024 the Company organized training courses on tackling climate change including topics on energy metering review standards for key
energy-consuming units carbon emission data quality management and the inclusion of the steel industry in the unified national carbon
market enhancing our capacity to manage climate change.55 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 56
Management of climate change risks
The Company increases investment in environmental equipment and facilities and accelerates ultra-low emission and advanced treatment projects.We prioritize strategic energy-saving and environmental projects to manage and address climate risks when formulating the annual investment
budget. We also track domestic and international low-carbon policies and interpret climate policies quarterly through the Environmental Protection
Committee. Furthermore relevant countermeasures will be developed based on our regular risk identification and assessment.The Department of Environmental Protection (the Carbon Neutrality Office) has designated specialty-based management personnel to supervise
and manage the Company’s air emissions wastewater solid waste noise as well as energy conservation and carbon reduction initiatives. The
Company has also established management and evaluation methods including the Energy and Environmental Protection Management Measures
the Management Measures for Carbon Peaking and Carbon Neutrality and the Comprehensive Evaluation Plan for Environmentally Friendly and
Low-Carbon Energy.Category Risks/Opportunities Time Frame Scope of Impact Countermeasures
Severe events related to climate change such as typhoons and floods can lead to
extreme weather conditions or natural disasters which may affect the Company’s The Company major suppliers
Acute risk Short term
product transportation goods supply and the Company’s operations resulting in and other stakeholders Emergency response plans for extreme weather conditions are established along with practical drills ensuring the
a decrease in operating revenue. improvement of employees’ capabilities in response to disasters or emergencies.Physical risks
Flood and disaster prevention materials for extreme weather events are prepared ensuring the Company’s routine production
Long-term changes in nature such as rising sea levels and sustained high
The Company major suppliers and operations.Chronic risk temperatures may cause adverse effects on the Company’s normal production Long term
and other stakeholders
resulting in a decrease in the operating revenue.Inadequate implementation of environmental protection policies or insufficient
We stay informed of environmental regulations and have established environmental information systems to enhance supervision
tracking of downstream customers will result in environmental risks.The Company major suppliers and manage environmental risks.Policy risk The European Union’s Carbon Border Adjustment Mechanism (CBAM) and the Medium and long term and other stakeholders A CBAM calculation module is developed to calculate relevant CBAM report data for products according to CBAM calculation
expansion of the national carbon market adds pressures on the Company’s carbon
rules and analyze and improve factors with a significant impact on the report data.emission management and raises compliance costs.Failure to upgrade outdated equipment and technology in a timely manner
Transition risks Organize the elimination and upgrading of key energy-using products and equipment in an orderly manner and develop could result in falling behind in production efficiency product quality and price
Technology risk Medium and long term The Company and apply a number of new processes technologies and achievements in the energy conservation and low carbon field
competitiveness compared to industry peers which in turn can reduce product
including low-carbonization carbon dioxide capture and energy resource reusing.sales revenue and expose the Company to the risk of being phased out.The increasingly strict environmental information disclosure for the Company’s A full-process online carbon management platform has been established to expand comprehensive service functions
products and those in the upstream and downstream of the supply chain adds The Company major suppliers including carbon data management carbon footprint management carbon emission control management carbon asset
Market risk Medium and long term
pressure on the Company’s carbon emission management and raises compliance and other stakeholders management carbon information management and carbon inclusion achieving the tracking and tracing of carbon emission
costs. data for steel products.Advancing the construction of green electricity projects like self-built photovoltaic
Policy The Company major suppliers The complementary use of multiple energy sources is promoted through the pathways of introducing and independently
systems and relevant purchasing is beneficial to fulfilling increasingly strict carbon Medium and long term
opportunity and other stakeholders developing green energy to replace high-emission energy sources.emission management requirements and lowering compliance costs.Optimized processes increase the use proportion of steel scrap and enhance The production structure is adjusted to increase the use proportion of steel scrap; and a series of energy-saving projects
Technology
Opportunities energy utilization efficiency achieving cost reduction and efficiency improvement Medium and long term The Company have been launched including the recovery and utilization of waste heat from No.9 coke oven riser pipes sinter dust
opportunity
while reducing carbon emissions. collection and frequency conversion retrofit of cooling ring system.Differentiated competition in product lines enhances the R&D production and
Market The Company major suppliers Vigorous efforts have been made to develop highly value added technological and environmentally friendly stainless steel
marketing capabilities for low-carbon products which in turn adds the value of Medium and long term
opportunity and other stakeholders products.low-carbon products and increases product sales and operating income.Notes: The short term refers to less than 1 year; the medium term refers to 2 to 5 years; and the long term refers to more than 5 years.57 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 58
Risk management process In 2024
0.16 million tons 0.01 million tons
Risk identification Risk management Risk monitoring
Scope 1 greenhouse gas emission reduction Scope 2 greenhouse gas emission reduction
We implement We improve the four-color (red We monitor carbon emissions and management through
assessments and surveys orange yellow and green) early online monitoring video surveillance manual monitoring
of major risks identify key warning mechanism for major risks. and on-site inspections and analyze potential risks.risks for the year using We make annual risk prevention We also regularly track and analyze the progress of risk
weighted scoring and and resolution efforts and manage management major risk prevention and control measures
determine early warning major risks focusing on the and disposal of occurred risk events. Meanwhile we Indicator Unit Targets in 2024 Progress in 2024
indicators for major risks. Company’s comprehensive risk compile a quarterly comprehensive risk management work
management work plan. briefing to ensure the overall control of risk management. Tons of carbon dioxide equivalent Greenhouse gas emission intensity No more than 1.79 1.78
per ton of crude steel
Indicator Unit 2022 2023 2024
Metrics and targets Total Ggreenhouse gas emissions (Scope 1 + 10000 tons of CO2e 2160.1 2180.1Scope 2) 2114.51
GHG emissions (Scope 1) 10000 tons of CO2e 2154 2160.1 2114.51
The Company has formulated the Carbon Peaking and Carbon Reduction Action Plan clarifying its medium- and long-term goals and
decompose to form an annual emission reduction target..In 2024 we continued our energy-saving project retrofits further enhancing the
comprehensive utilization of residual heat and energy resources and contributing to tackling climate change. GHG emissions (Scope 2) 10000 tons of CO2e 6.1 20.0 0
Greenhouse gas(GHG) emitted by the Company mainly come from production facilities such as coke ovens blast furnaces converters electric
arc furnaces and power generation units covering combustion electricity heating cooling and steam. The primary scope of impact is Taiyuan Note: T he GHG emission data is calculated in accordance with the requirements of the Technical Guidelines for Verification of Corporate Greenhouse Gas Emissions: Steel Industry.Shanxi Province where the Company locates. Since the 2×300MW power generation units were included in the national carbon trading market Scope 1: Direct greenhouse gas (GHG) emissions from sources owned or controlled by a company.Scope 2: Indirect greenhouse gas (GHG) emissions from purchased electricity steam heat or cooling consumed by the company.for the power generation industry in 2019 the Company has completed fulfillment and trading at three compliance periods with all quota
settlements and compliance fulfillment on schedule.Striving for Win-Win
Progress Toward
Social Harmony
National Call
Acting on the people-centered development philosophy we will fulfill our responsibilities to
meet people’s basic needs and provide a cushion for those most in need and take more steps
to deliver real benefits to the people to their satisfaction. We will make solid progress toward
prosperity for all and promote social harmony and stability. By doing so we will give our people
a growing sense of fulfillment happiness and security.—Excerpt from the 2024 Report on the Work of the Government
Corporate Actions
Taigang Stainless continuously improves its after-sales service system and supply
chain management capabilities. We also promote employee career development
and extensively engage in social welfare activities. Together with our shareholders
customers suppliers employees and all sectors of society we seek to build a
cooperative network based on shared value and mutual benefits. Our shared exploration
and pursuit of sustainable development will contribute to a more harmonious and
prosperous society.61 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 62
Upgrading The Company advances the transformation from production-centered operations to customer- Taigang Stainless awarded the title of “Best Strategic Supplier” by Dongfang Electric Machinerycentered operations. To upgrade the standards of high-quality service we constantly improve
Quality Services the marketing processing and service network system through refined management
and technological innovation. By providing customers with one-stop personalized and In September 2024 Taigang Stainless was honored with the title of “Best Strategic Supplier” at the supply chain conference of
comprehensive services we strive for efficient and precise responses to diverse customers’ the Dongfang Electric Machinery a subsidiary of the Dongfang Electric Corporation (DEC) becoming the only steel manufacturer
needs contributing to a closer and more trustful relationship with customers and a win-win future. among nearly a thousand material suppliers to receive this honor. During the long-term cooperation we have satisfied the stringent
requirements of the company for high-end steel products with technological innovation and product upgrades. We not only supported
the construction of national high-quality projects such as Baihetan Panlong and Changlongshan but also driven continuous business
Improving With the core objective of improving service systems we have built a comprehensive and growth of both parties through mutually beneficial models. Moreover we will continue to improve our product and service quality to
efficient after-sales service system that meets and even goes beyond the diversified demands contribute to the localization of high-end equipment manufacturing together with Dongfang Electric Machinery.service systems of customers. As a result we have won widespread acclaim from domestic and international
customers. Meanwhile we strengthen global market networks particularly in Belt and Road
countries to bolster their infrastructure and industrial modernization.Channel optimization and efficient response Differentiated on-demand services
We have built a direct supply model to focuses on key We have stepped up efforts to build a stronger product
customer groups converting unmet needs into direct management team. Focusing on factors that affect
supply increment and value enhancement. Meanwhile customer experience and loyalty we have established a
our real-time information collection rapid order response plant management team to efficiently connect with markets.and comprehensive user services form an ever-improving Meanwhile our intensified development of differentiated
closed-loop management system that constantly improves products ensures more diversified and higher value-added
our service efficiency and quality. product choices so that we can navigate the specific needs
of different customers and boost our market competitiveness.All-round services Expansion into international markets
Taigang Stainless recognized as a “Core Business Partner” by Zoppas Industries ChinaFocusing on customer needs we have established a “dual We vigorously improve our international market channelsmanager” mechanism to provide users with all-round and increase our export market shares. In particular the
In 2024 with unparalleled product performance stable quality and premium customer service Taigang Stainless finally stood out
services. The mechanism is led by professional marketing overseas market expansion of high-value-added products
managers and supported by technical marketing managers the sales growth in Belt and Road countries and the and was recognized as the “2024 Core Business Partner” by Zoppas Industries China the world’s largest manufacturer of heating
of finished products plants. To meet the differentiated and first-time supply of products such as economical steel elements. This title is not only a recognition of our excellent product performance and stable quality but also an affirmation of our long-
personalized demands of users we offer services in line for exhaust systems and advanced ultra-supercritical lasting commitment to technological innovation and customer services. We will continue our close partnership with Zoppas Industries
with the principles of “one policy for one customer” and “one boiler tubes all have made a positive contribution to the China to drive technological progress and industrial upgrading of the sector.standard for one customer” thus continuously elevating our upgrading of the global industrial chain.customer satisfaction.In 2024
Protecting Upholding the business philosophy of “satisfying consumers with high-quality products” the Company
always puts the rights of customers at the forefront. To boost customer satisfaction we continuously
57 customer improve our product quality and customer services develop policies to protect customer privacy and %
optimize the customer complaint handling process to efficiently address customer concerns. Together
Sales ratio of differentiated products rights with other parties we crack down on illegal activities that disrupt market order and infringe on the
legitimate rights of the Company and customers. By joining hands with customers we strive to establish
and maintain our brand image and contribute our share to high-quality development.
30+%
In 2024
Increase in 439 steel for appliances
0.92 87.9 points 98.9 %million tons 46.2 %
Comprehensive customer satisfaction index User complaint resolution rate
Exports of Taiyuan base Year-on-year increase
Offering technical services to end-users on site63 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 64
Building a The Company adheres to open supplier admission transparent procurement platforms
We ensure that our products and services do not pose threats to the health and property of customers. standardized processes and fair design. Stringent compliance with supply chain management
Guaranteeing Once potential issues are identified we will take immediate measures to recall or withdraw products thus laws regulations and industry standards ensures the integrity of our honest open fair and just
product Responsible
safety protecting customers’ safety. In 2024 the Company saw no such incidents that cause harm to customer procurement system and platform. By strengthening information sharing process coordination
health and safety due to product quality issues. Supply Chain and technical alignment STSS builds seamless collaboration and deep trust with suppliers to
jointly create a transparent efficient and collaborative supply chain ecosystem.Through rapid information classification and circulation we promptly convey customer feedback to relevant
Improving
customer departments for investigation and resolution. Meanwhile the objection handling process is streamlined and Supplier Operating under a “one headquarters multiple bases” procurement management model complaint the on-site verification is accelerated to improve overall response efficiency. For customer losses caused by the Company strictly manages supplier access and exit procedures and performs dynamic
handling product quality issues we conduct on-site verification immediately and provide return services or negotiate
solutions management qualification reviews to introduce high-quality suppliers. All these efforts are geared towards
compensation plans effectively protecting customers’ economic interests.building a stable and responsible supply chain.Boosting Through third-party satisfaction surveys and satisfaction surveys of specific customer groups we identify and
customer address shortcomings accordingly. This allows for closed-loop management and continuous improvement of
satisfaction product quality.Supplier review and
assessment
We take strict control over customer information access and grant the minimum necessary permissions
Protecting based on employees’ job responsibilities and demands. We also continuously raise employees’ awareness Supply chain risk
information
security and of information security. To effectively protect the personal information of users sensitive data is encrypted management We regularly review and assess suppliers’
privacy during transmission and storage and important data is backed up on a regular basis. In 2024 there were no management and performance in labor
incidents of customer privacy leakage. environment safety and other aspects.Full-process supplier
We have established a robust supply Unqualified suppliers are eliminated to management
cha in r i sk management sys tem. improve the sustainability of the supply
By working closely with customs public security and quality supervision departments we tighten the control
Intensifying Through dynamic supplier database
chain. Specialized training on personnel
over export products at ports and clamp down on counterfeit and substandard products. We also publish
anti- management formulation and revision qualifications environment safety etc.counterfeiting anti-counterfeiting announcements and strengthen public opinion guidance to regulate online information. In By revising and promulgating relevant of key procurement regulations and is provided to all suppliers. In addition
efforts addition we have established a joint rights protection mechanism with customers to cooperate with victims policies for the management of raw
establishment of a compliance risk the cooperation agreements are revised
in defending their rights thereby guarding against counterfeit products in collective efforts. material suppliers we strengthen the
repository we effectively mit igate to incorporate relevant requirements
full-process management ranging from
various procurement risks. We have laying a solid foundation for building a
supplier admission to assessment which
also developed emergency procurement more responsible and sustainable supply
effectively improves the overall quality of chain.Responsible STSS continuously cements marketing business collaboration and benchmarks industry leaders. By
plans and measures to ensure prompt
suppliers and boosts the resilience and
response to supply chain disruptions
implementing the marketing control model of “one headquarter and multiple bases” and promoting efficiency of supply chains.marketing and other emergenc ies thereby project-based synergistic value creation we boost sales performance and internal collaboration safeguarding production stability.efficiency. Marketing organization reform and digitalization are implemented to strengthen centralized
management and analysis of multi-base data achieving comprehensive information-based marketing
management. Meanwhile we actively participate in domestic and international exhibitions product
promotion presentations and seminars. In our promotional activities we strictly follow relevant
regulations of the Company to promote our new and special products in a realistic objective and
In 2024
effective manner. This effectively increases our brand influence and market recognition.In 2024 289 41 50
16 Qualified suppliers New suppliers reviewed Suppliers certified by ISO 14001 system
Presentations in domestic and
international exhibitions
0 0 41 130 hours
2 Number of suppliers Number of potential ESG training sessions for Total ESG training hours for suspended due to suppliers rejected for suppliers held suppliers
rd
Presences in product promotion Participating in the 3 China Nuclear Energy High- Participating in the 2024 China International non-compliance non-compliance
meetings and seminars Quality Development Conference & Shenzhen Special Steel Industry Exhibition
International Nuclear Energy Industry Innovation Expo65 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 66
Responsible STSS is committed to building a procurement platform based on the principles of integrity Fulfilling Adhering to the people-oriented principle the Company values the comprehensive openness fairness and impartiality. Effective measures including standardized processes development of talents and provides all-round protection of employee rights and interests.procurement transparent operations and acceptance of supervision ensure all-round oversight of the entire Employees’ Value We strive to provide employees with a platform for diversified development enhance their
procurement process. Meanwhile we actively promote a green procurement strategy deeply satisfaction and sense of belonging and create a healthy and safe workplace promoting
embedding environmental concepts into every aspect of supply chain management. By strictly the sharing of development achievements between employees and the Company.following the ISO 14001 Environmental Management System we strive to create a green and eco-
friendly procurement supply chain and lead the industry towards a greener and healthier future.Protecting In line with the applicable provisions of the Labor Law of the People’s Republic of China the
Business ethics and code of conduct Labor Contract Law of the People’s Republic of China and other laws and regulations we
employee rights vehemently oppose child labor forced labor harassment bullying and intimidation ensure
that employees enjoy the legitimate rights and consolidate the talent pool providing an
We strive to build a transparent honest and standardized procurement system. Through policy important guarantee for the Company’s stable development.development compliance management and educational campaigns etc. we comprehensively
enhance the business ethics standards of management and employees. This approach effectively
prevents such risks as commercial bribery and corruption ensuring transparent and efficient
procurement operations. In 2024 the fulfillment rate of procurement contracts was 96.21%. Employee recruitment
We continuously improve our recruitment channels such as campus recruitment industry-education integration programs and social
Green procurement and eco-friendly supply chain recruitment. Besides we refine recruitment systems standardize management processes and embrace “transparent recruitment” to ensure
all external hires are brought in through open recruitment. Moreover we have innovatively set up a shared employment pipeline which allows
for more flexible mobilization of human resources and more employment opportunities.We actively promote green procurement encouraging suppliers to use clean energy vehicles for
transportation. Our procurement contract mandate adherence to implement relevant requirements
of ISO 14001 Environmental Management System. Moreover we advocate for the reduction of As of the end of 2024
packaging and the use of renewable and biodegradable packaging materials to drive toward an
eco-friendly supply chain and to reduce procurement costs in the long run.
13080304.50%129
On-the-job employees Female managers The rate of the femal Ethnic minority employees
managers accounting
In 2024
33541180.12%
Employees brought in through Overseas students brought in Total number of Employee turnover rate
open recruitment through open recruitment shared employees
100%100%
Signing rate for labor Coverage of social
contracts insurance
0
Significant labor disputes incidents of
forced labor or employment of child labor67 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 68
7.057.91
Unblocking Attaching great importance to the all-round development of our employees the Company
29.12 29.38 fosters long-term growth through accessible career advancement pathways well-structured
Employee Employee Employee 23.39 employee vitality training systems and the competition-driven learning mechanism. Guided by the principle of
Structure by Structure by Structure by 36.52
Educational equality we ensure fair and just treatment for all employees irrespective of nationality race Gender Age Group
(%) (%) Background gender religious belief or cultural background. We offer equal growth opportunities for each
Aged 30 and below (%) Secondary vocational
degree and below employee to thrive alongside the Company’s progress.Aged 31-40
Junior college’s
92.95 Male 39.58 Aged 41-50 34.10 degree
Female Aged over 50 Bachelor’s degree
and above Career development
1.83
STSS has established and improved the career advancement mechanisms for employees including the recruitment promotion demotion
Employee Structure by Job Titles (%)
16.76 (dismissal) and cross-functional transfers. We have formulated the Employee Development Management Measures (Trial) to set up career
paths for managerial technical and operational roles and positions at all levels and to specify the position levels and recruitment standards
0.80
2.70 Employee Senior 3.59 for the three roles. We have developed a hierarchical structure and career progression routes ranging from the managerial sequence Level B
Structure by
Production and above to technical sequence Associate Technicians to TISCO Scientist and from operational sequence General Operator to TISCO Skill
Profession personnel Intermediate
(%) 11.72 Master among other levels.Sales staff
Financial staff Senior operator We have also formulated policies such as the Employee Education and Training Management Measures and the Job Transfer Training 77.91 43.78
Technician and above Management Measures to carry out on-the-job training and job transfer training based on the Company’s strategy and employee
Administrative development needs. The training provides support for employee development and career shifts.staff
In 2024
Compensation and benefits
In 2024 1 8 19
We have established a market-oriented salary distribution system that follows the principles of scientific and fair
Newly-appointed Engineering Scientist of Internal job transfer Positions transferred
distribution. Through a variety of salary methods such as performance-based annual salaries and position-based
China Baowu TISCO Management Expert training classes through open
wages we provide employees with competitive salary in the market and pay employees in time . In 2024 we made 11.63 days and Senior Chief Engineer respectively recruitment
a reform of our compensation and benefit system. By launching the salary point mechanism for employees we
The number of paid
increase the incentive effect of salaries and propel the development of employees together with the Company.annual leave days per
In terms of employee benefits we pay social insurance and housing provident funds for employees as required by capita on average Employee training
law. We also provide annuities paid annual leave work meals fitness facilities and other benefits for our employees.We have formulated employee development policies such as the Employee Education and Training Guidelines and the Employee Education
and Training Management Measures. To continuously improve employee quality a three-tiered training management system has been
Democratic communication established encompassing the company level plant level and operation area (departmental) level.In 2024 With a focus on supporting strategic implementation and integrating training with production and operation planning we develop and
We are committed to providing comprehensive and multi-dimensional protection for employees’ rights to information execute annual training plans. This involves building effective training courses establishing a robust pool of qualified trainer and advancing
and supervision. Through approaches such as “Plant Affairs Publicity Columns” workers’ congress business briefing an assessment system for operational staff and improving a cloud learning platform for empowerment. These efforts provide intellectual and
meetings internal media WeChat public account and special progress meetings we promptly disclose key employee 100 % talent support for the Company’s growth.concerns including business operations role model selection professional title evaluation labor competitions and
employee care programs. To deepen democratic management within the organization the Company’s labor union Percentage of employees
in the Labor Union In 2024
has taken the lead in corporate reform and actively provided suggestions on policies that had been reviewed by
the workers’ congress such as the Employee Reward and Punishment Management Regulation and the Safety
Accountability Measures. The Company has established a grievance mechanism which enables the Labor Union to
raise objections to the Company in the implementation of rules and regulations as well as decisions on major matters 100 % CNY 25.13 million 100 % 83 97.5 %
and urge the Company to make improvements through consultation if the Labor Union considers it inappropriate. Coverage rate of Invested in employee training Training coverage rate Average online training Employee training
collective contracts hours of all employees satisfaction
Through equal negotiation we enter into the Collective Contract the Special Collective Contract for Special Labor
Protection of Female Employees and the Collective Wage Contract with our employees. Recognizing the evolving
needs of both the Company and our workforce we periodically adjust the content of these agreements. In the
event of any disputes arising from the implementation of collective contracts equal consultation shall be conducted 100 % 113 133 97 90
between the Company and the Labor Union. We have also conducted employee representative inspections and Performance rate of Average training Average training Average training hours of Average training hours of
addressed “the most concerned the most relevant and the most realistic issues of employees”. In 2024 we collective contracts hours of employees hours of managers technical/business staff operational staff
conducted inspections over 1000 times and pinpointed 169 such issues with a resolution rate of 100%.69 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 70
Competition-driven learning In 2024
Our extensive engagement in labor competitions including
CNY 166 million CNY million %the host of the 45th Skills Competition and the groups’ 29.36 100
attendance in external competitions has helped strengthen skill Invested in work safety Invested in workers’ compensation insurance Coverage of workers’ compensation
insurance for employees
training cultivate skilled technicians and sharpen employees’capabilities. In 2024 the Company won the “ExcellenceAward for Group” at the 11th National Iron and Steel Industry
Vocational Skills Competition (the “Shagang Cup”) and four
individuals were honored as National Steel Industry Technical CNY 1.44 million 100 % 53
Experts. Investment in work safety liability insurance Coverage of work safety liability Safety emergency drills organized
Our team “Steel Olympics” makes good results insurance for employees
Promoting occupational Employee health is a paramount concern for the Company. Focusing on thephysical and mental well-being we actively promote the “Safety and Health Escorthealth and safety Initiative”. To this end we provide all employees with necessary protections in 120.5 26 537389 100 %
line with occupational health and safety standards and fully safeguard employee Training hours for work safety Training sessions Training attendances Training coverage
occupational health and safety.Strengthen workplace safety
The Company and all its affiliated entities have set up Work Safety Committees which serve as the highest safety
management bodies at their respective levels. Dedicated safety management organizations have also been established
within the Company and its entities staffed with safety management personnel responsible for safety supervision * T he company had 3 Work safety accidents including 2 minor injury accidents of formal employees and 1 serious injury
and management. In addition we have formulated 17 work safety management policies and 34 safety management accident of suppliers’ worker. 2 formal employees suffered from work-related injuries accourting for 0.015% of the total
Safety standards including the All-employee Work Safety Responsibility System the Measures for the Rewards and number of employees. The total lost time due to work-related injuries was 920 hours 115 days and the accident rate of
management
system Accountability of Work Safety the Measures for the Management of Occupational Health and the Measures for the missed work was 0.075.Management of Emergency Response Plans for Work Safety Accidents. These comprehensively cover the entire work
safety process including accountability for safety accidents hidden hazard investigation and rectification emergency
rescue and recognition and compensation of work-related injuries. In June 2024 STSS achieved ISO 45001:2018
Occupational Health and Safety Management System certification.We conduct all-encompassing risk identification and hierarchical control over occupational health risks arising Year Number of work-related fatalities Fatality rate
from production maintenance construction and other processes. Routine safety inspections and quarterly safety
evaluations are carried out. Besides we strengthen the distribution and use of personal protective equipment (PPE). We 2022 1 0.01%
Safety risk
have also strengthened intelligent and unmanned operations for positions with high risks poor working conditions and
control
repetitive strenuous labor to continuously improve the working environment for employees. For personnel whose health
202300
and safety have been compromised we provide treatment and claim workers’ compensation in accordance with laws
and regulations ensuring that employees’ rights and interests are well protected.
202400
To prevent accidents arising from vehicle injuries confined spaces lifting and hoisting operations hazardous
Hidden chemicals and metallurgical gas we have carried out a series of investigations and rectifications to achieve closed-
hazard loop management of hidden hazards. In addition all units are required to identify and control hazard sources from
management operational activities equipment and facilities production processes and management activities. Such hazard sources
are incorporated into the graded management system of safety risks to ensure effective risk control.The Company has built and put into use a safety training experience center which includes 10 high-risk operation
Creating experience projects such as working at heights lifting injuries gas poisoning and operation at confined spaces creating
a safety an immersive safety training experience. We also organize specialized safety education and training safety awareness
culture enhancement campaigns safety skills competitions and emergency evacuation drills aiming to improve employees’
awareness and capabilities in safety production.In accordance with the principle of “4 Sames” (same system same standards same requirements and same
Safety treatment) all suppliers and ecosystem partners fall within the scope of our safety management. Through safety work
management Opening of Safety Training Experience Center Safety emergency drills Fire safety drills
of partners meetings daily safety inspections and evaluations and regular guidance and instruction we help improve their safety
management capabilities.71 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 72
Ensuring physical and psychological well-being
Benefit distribution
Highlighting psychological well-being We improves employee benefits and care systems through birthday gifts holiday gifts movie tickets
and other benefits to enhance employees' corporate identity.We have formulated the Guidelines on the 2024 Employee Psychological Care Work. We organize a series of activities such as theme-based
psychological lectures book reading sessions of the Life Blueprint and psychological care from small psychological counseling teams as
needed. During the reporting period our psychological adjustment and stress relief services provided at the “Care House” have benefited
over 3000 employees.Providing healthcare services
The Company offers employees diverse health insurance plans including accidental injury coverage medical coverage and critical illness Care for female employees
coverage. We build health stations equip with health kits and organize activities such as employee rest and recuperation summer heat
relief and on-the-job healthcare providing comprehensive support for employees’ physical and mental well-being. Furthermore we continue To show care for female employees we have issued the Decision on Commending Advanced
to improve health check-up services to make it more convenient for employees to take health check-ups nearby and promptly receive their Female Collectives and Advanced Female Individuals for 2023 and organized activities such
health reports enhancing employees’ satisfaction with the check-up services. During the reporting period the physical examination rate of as a tea culture experience in celebration of International Women’s Day “Business Accounting”
on-duty employees was 96.38%. she-power experience exchange and rose-themed reading for female employees.Cultural and sports activities
A variety of cultural and sports activities including seminars employee fun sports meetings singing competitions and artistic performances
fitness and arts shows calligraphy and photography exhibitions themed essay collection sports competitions and a “vintage items”
collection were organized to enrich employee life. Furthermore we have built employee reading rooms and deepened education on thee
Company’s history and culture all aimed at inspiring company-wide morale.Psychological counseling activity themed Plaque-unveiling ceremony of the Health Station
In 2024
632
Outstanding Labor Protection Workers by the Outstanding Labor Protection Outstanding Safety
China Iron and Steel Association Publicists Demonstration Team
Sports meetings Basketball game
Employee care We continuously enriches employee care initiatives. Focusing on the specific needs of five
special groups: core talents expatriate staff employees in difficulties female employees and
young employees we provide targeted support. Besides we organize various cultural and
sports activities guiding employees to pursue better lives and achieve work-life balance.Assistance and allowances
During festivals such as the Spring Festival and the Mid-Autumn Festival we visited and provided
allowances for employees in key projects special positions and employees in difficulties with CNY
1018100 of relief funds distributed. Table tennis competition Reading Room73 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 74
Contributing Committed to joint contributions and shared benefits with local communities we actively engage Public welfare Dedicated to public welfare and committed to common development with communities we in rural vitalization to promote coordinated regional development. We also conduct regular continuously organize voluntary activities including “March 5th Learning from Lei Feng Day”
to Social voluntary and public welfare activities to pool charitable resources and to pass on the warmth. “Supporting College Entrance Exams” “Fulfilling the Dreams of Orphans on Children’s Day”
Through these efforts we strive to create sustainable social value. voluntary blood donation civilized construction competition and conference support and
Harmony environmental clean-ups. These warm-hearted and meaningful voluntary services demonstrate
our commitment to spreading love and warmth and to forming an open sincere and
harmonious relationship with society.Rural vitalization Firmly upholding its corporate social responsibility and mission STSS fully leverages its strengths
to offer targeted assistance based on the demand surveys on assistance programs. The targeted In 2024
assistance initiatives include organizational project-based consumption-driven and educational
assistance. These efforts contribute to building well-governed livable and harmonious villages
thereby promoting comprehensive rural vitalization.
130229
Volunteers registered on the Volunteer Hub platform of Volunteers reaching the
the Communist Youth League as of the end of 2024 Star level
Organizational assistance Educational assistance
In 2024* W e continuously promote the in-depth and practical implementation of the We are pushing ahead with the “Green Steel into“Three Ones” initiative mobilizing team members stationed in villages to Schools” student aid program and have donated
undertake over 400 practical tasks good deeds and problem-solving efforts. stainless steel products to primary and secondary 1561 6832
schools in assisted areas.* W e intensify the building of village-level party organizations. Through Party Engagements in voluntary services Voluntary service hours
Lecture System delivered by First Secretaries and educating on Party in 2024 with in total
discipline we give full play to the role of the party branches as fighting
bastions and the exemplary role of outstanding party members.Project-based assistance
400+ Following the principles of “6+10 commitments”
Practical tasks good deeds and problem-solving undertaked and “5 clarifications” for village-based assistance
we bring assistance programs into effect with
concrete measures such as promoting industrial
development elevating public services and
improving the living environment in assisted
villages.Consumption-driven assistance
* W e have organized diverse activities such as distributing collective Voluntary rubbish removal activity Voluntary activity to support college entrance exams
welfare benefits on the Dragon Boat Festival engaging employees in the
In the 2023 comprehensive assessment of
“Agriculture Vitalization Week” event for state-owned enterprises and
organizations stationed in villages of Shanxi
encouraging employees and ecosystem partners to purchase Loufan
Province to offer rural assistance we continued
potatoes. Through these efforts we procured and distributed a total of
over CNY 9.7 million worth of specialty agricultural products from our to rank in the top tier of provincial-level entities.targeted assistance areas and impoverished regions in Shanxi. Labor union chairman of the Company Meng
Yongquan successfully completed his duties as
the head of the provincial-level unit detachmentCNY over 6.8 stationed in Loufan County and was honored million as an “Outstanding Dispatched Head StationedThe Directly invest in assistance funds through the purchase of in Counties”.jumbo bags by us and by our ecosystem partner
CNY 3.67 million
Paid assistance funds introduced Voluntary blood donation Volunteer in a nursing home75 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 76
Outlook in 2025
Look ahead to 2025 STSS recognizes it as a pivotal year to aggressively navigate the prolonged downturn in the steel industry firmly STSS will deepen digital and green development propelling our transformation to a new level
advance intrinsic growth and resolutely overcome challenges to achieve success. It is also a crucial period to seize development
opportunities accelerate transformation and upgrading and foster new growth drivers and advantages to enhance our core
competitiveness. Committed to high-end intelligent green and efficient development we will leverage reform and innovation as By deepening the integration of digital technology with steel manufacturing we will build smart production lines intelligent bases and
catalysts and benchmark ourselves against others to identify gaps. We will also spare no effort to optimize our structure reduce intelligent plants. Additionally we will strengthen carbon emissions management throughout the product lifecycle enhance carbon data
costs improve efficiency strengthen supply chains and prevent risks. These efforts will boost our operational efficiency and business management and application and develop low-carbon metallurgical processes positioning ourselves as an industry leader in green and
performance enabling us to take even greater strides towards becoming the world’s most competitive high-tech enterprise with a low-carbon practices.complete stainless steel industrial chain.STSS will maintain a strong focus on technology-driven innovation STSS will implement comprehensive risk control to ensure the Company’s steady growth
With insights into advanced stainless steel products and technologies our unwavering commitment lies in advancing product and With a bottom-line mindset we will heighten risk awareness and strengthen risk prevention and mitigation. Committed to business
technology innovation to deliver original groundbreaking and pioneering stainless steel technologies that foster new quality productive compliance we will balance risk prevention and development and evaluate and prevent risks at the source. We will diligently strengthen
forces. Additionally we will serve major national strategies by customizing “mission-driven” products and upgrading conventional safety management at production sites with a well-defined collaborative integrated standardized and efficient work safety monitoring
materials for applications in new fields which will shape our differentiated competitiveness. system to improve our safety management capabilities.STSS will elevate product operations and intrinsic efficiency STSS will continue fulfilling our corporate responsibilities
By implementing integrated reform covering production sales and research we will offer more cost-effective products and convenient Aware that value creation is the foundation of value sharing we will stimulate the vitality of all employees while delivering our social
efficient services generating greater value to our customers. We will deepen our benchmarking efforts to identify and close gaps responsibilities. In addition we will strengthen branding safeguard our corporate image ensure transparency in major matters and
implement practical cost reduction measures and enhance value creation efficiency of all factors. Ultimately our overall business produce high-quality corporate social responsibility reports. These efforts will improve transparency and recognition bolster investor
performance will be improved. Our aim is to realize intensive and efficient operations for maximum efficiency. Meanwhile we will upgrade confidence and cultivate a positive public image.our “one headquarters multiple bases” management system and capabilities to create greater synergistic value.77 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 78
Key Performance Table Social
Indicator Unit 2022 2023 2024
"/": STSS has not disclosed historical data for some of the indicators and the data has been disclosed starting in 2023 or 2024 through the
improvement of the level of management of ESG indicators. Product percent of pass % 89.6 99.06 99.68
Customer satisfaction point 90.1 86.8 87.9
Economy
User complaint resolution rate % 89 98.8 98.9
Indicator Unit 2022 2023 2024
Number of qualified suppliers / / 268 289
Revenue CNY billion 97.65 105.62 100.38
Review of new suppliers / / 58 41
Total assets CNY billion 72.86 68.24 67.53
Total equity attributable to the owner of a listed company CNY billion 34.83 33.58 32.57 Suppliers certified by ISO 14001 system / 135 62 50
Total profit CNY million 209 -1203 -937 Procurement contract fulfillment rate % 99 95 96.21
Social contribution value per share CNY/share 1.161 0.773 0.579
Number of suppliers suspended due to non-
/
compliance / 0 0
Tax payment CNY million 1920 1418 463
Number of potential suppliers rejected for
Steel production million tons 12.17 13.91 13.98 /non-compliance / 0 0
Stainless steel production million tons 4.14 5.59 6.20
Supplier ESG training session 13 58 41
R&D investment CNY billion 3.40 3.41 4.11
Govermence Share of R&D personnel % / / 20.34
Investment Ratio in new processes and
Indicator Unit 2022 2023 2024 %products / / 4.1
Share of female executives on the Management % 12.5 12.5 13.33 Patent applications / 335 370 393
Board meetings session 13 14 8
Authorized patents / 192 157 106
Proposals reviewed and passed by the Board / 60 70 40
Authorized invention patents / 109 110 58
Meetings of the Board’s specialized committees session 12 6 12
Shareholders’ Meetings session 3 4 4 Total employees headcount 15123 14012 13080
Supervisory Board meetings session 8 5 5 Female employees headcount 1491 1327 922
Announcements issued / 148 67 43
Ethnic minority employees headcount 149 144 129
New points of integrity risks identification / / / 297
Anti-commercial bribery and anticorruption training Share of female managers % 5.26 5.92 4.50
%//100
coverage for personnel with business disposal rights
Employees hired through open recruitment headcount 114 320 335
Auditing projects / 18 44 21
Auditing issues corrected by due date % 100 100 100 Employee turnover rate % 0.03 0.07 0.12
Partipants of ESG training headcount 91 102 128 Labor contract signing rate % 100 100 10079 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 80
Indicator Unit 2022 2023 2024 Economy
Social insurance coverage rate % 100 100 100 Indicator Unit 2022 2023 2024
Coverage rate of collective contracts % 100 100 100 GHG emissions (Scope 1) 10000 tCO2e 2154 2160.1 2114.51
Paid annual leave days per employee day 8.28 12.41 11.63
GHG emissions (Scope 2) 10000 tCO2e 6.1 20.0 0
Investment in employee training CNY million 18.46 41.45 25.13
GHG emission intensity (Scope 1+Scope 2) tCO2e / ton of crude steel 1.78 1.77 1.78
Training hours per employee hour 186.5 169 113
GHG emission reduction (Scope 1) million tons / / 0.16
Employee training satisfaction % 96.3 97.1 97.5
GHG emission reduction (Scope 2) million tons / / 0.01
Employee health check-ups coverage rate % 84.47 96.38 96.38
Investment in environmental protection
Investment in work safety CNY million 145 108 166 CNY millionprojects 543 397 455
Invested in workers’ compensation insurance CNY million / / 29.36 Environmental protection training hours hour / / 78
Coverage of workers’ compensation
% Participants of environmental protection
insurance for employees / / 100 /training / / 670
Investment in work safety liability insurance CNY million / / 1.44 Environmental protection penalty / 0 0 0
Coverage of work safety liability insurance for
%
employees / / 100 Energy consumption 10000 tons of standard coal 633.94 641.46 690.77
Coverage rate of safety training % 100 100 100 Comprehensive energy consumption per ton
kg of standard coal/ton
of steel 522.37 522.02 525.01
Safety training hours hour / 196 120.5
Energy consumption per CNY 10000 of
tce/ ten thousand yuan
output value / 0.79 0.83
Safety emergency drills organized session 246 54 53
Clean energy use GWh 541.74 235.47 274.07
Work safety accidents / 2 2 3
Recycling volume of scrap steel 10000 tons 113 118 117
Work-related fatalities / 1 0 0
Days lost due to work-related injuries day 6025 540 115 Fresh water usage million tons 21.92 22.17 16.79
Number of newly added occupational
/ 3 1 2 Fresh water usage per ton of steel Ton of water/ton of steel 1.81 1.8 1.39diseases
Relief funds distributed CNY million 0.77 2.21 1.02 Urban sewage and reclaimed water treated million m3 15.27 26.68 24.93
Consumption-driven assistance CNY million 3.52 4.92 9.70 Water reuse rate % 98.71 98.71 99.02
Volunteers / 611 1016 1302
Exhaust emissions million m3 292431.91 296175.96 288485.89
Engagements in voluntary services / 1390 1221 1561
Sulfur dioxide emissions ton 615.81 621.55 628.87
Volunteer service hours hour 7227.15 7111.79 6832
Nitrogen oxide emissions ton 2864.12 2901.26 2819.9781 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 82
Indicator Unit 2022 2023 2024 ESG Indicator Index
Particulate matter emissions ton 1952.03 1976.54 1959
Self-Regulatory Guidelines No.17 for
Report Chapter GRI Standards Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For
Volatile organic compound emissions ton 1466.49 1480.83 1482.88 Trial Implementation)
About This Report 2-2/2-3/2-4 Article 4 Article 6
Atmospheric depositions in the plant area tons/km2/month 5.81 5.80 5.79 Message from the Chairman 2-22
About Us 2-1/2-6/201-1
Chemical oxygen demand (COD) emissions ton / 60.36 56.22 Key Figures of 2024
Article 5 Article 7 Article 9 Article 10
2-12/2-14/2-16/2-19/2-20/2-26/2-27/2-28/
Sustainability Management Article 11 Article 12 Article 13 Article 14
2-29/3-1/3-2/3-3
Ammonia nitrogen emissions ton 1.94 1.72 1.33 Article 16 Article 18 Article 53
Honors
Spotlight 1 : Ultra-thin Steel—
Wastewater discharged million m3 7.15 6.89 6.31 Fostering the Ultimate Excellence
Article 42
of Stainless Steel via Technological
Innovation
Wastewater discharged per ton of steel Ton of water/ton of steel 0.59 0.56 0.52 Spotlight 2: Green Transition—CSR Spotlights
Nurturing New Momentum for Green Article 20 Article 23 Article 27 Article 28
Steel Development
Reuse rate of wastewater per ton of steel % 91.84 91.80 99.02 Spotlight 3: Industrial Synergy—
Building a High-Quality Specialty
Steel Industry Ecosystem
Strengthening the Leading Role of
General waste generated million tons 8.08 8.29 7.17 205-2
Building a Solid Party Building
Foundation and
Improving Corporate Governance 2-9/2-10/2-11 Article 12 Article 51 Article 52 Article 53
Fostering Growth
General waste utilized million tons 7.94 8.25 7.13 Drivers Following Business Ethics and 205-1/205-2/205-3/206-1 Article 54 Article 55 Article 56
Compliance Requirements
Upgrading Innovation Management 102-15 Article 11 Article 19 Article 41
Comprehensive utilization rate of general
% Pursuing
industrial solid waste 98.35 99.5 99.53 Excellence and Seeking Innovation-driven 203-2 Article 42
Nurturing New Development
Return-to-production utilization rate of general Quality Productive Achieving Excellent Quality 201-1 Article 47
%
industrial solid waste 25.7 24.47 24.24 Forces Supporting Industrial Upgrading 203-1/203-2
Strengthening Environmental
305-7/307-1 Article 11 Article 33
Hazardous waste generated million tons 0.57 0.65 0.69 Management
101-4/101-4/101-7/101-8/203-1/301-1/301-2/
Article 20 Article 28 Article 29 Article 30
Building a 301-3/302-1/302-3/302-4/302-5/303-1/303-2/Implementing Green Production Article 31 Article 32 Article 34 Article 35
Safe disposal rate of hazardous waste % 100 100 100 Beautiful China 303-3/303-4/303-5/304-2/305-7/306-1/306-2/ Article 36 Article 37
Through Green 306-3/306-4/306-5
and Low-Carbon Making Green a Defining Feature 301-3 Article 20
Development
Emissions trading proceeds CNY million / / 1.67 Article 10 Article 11 Article 13 Article 14
Article 15 Article 17 Article 18 Article 19
Tackling Climate Change 201-2/305-1/305-2/305-4/305-5
Article 20 Article 21 Article 22 Article 23
Investment in greening activities CNY million 89.05 36.52 34.17 Article 24 Article 26 Article 27
Upgrading Quality Services 416-1/417-1/418-1 Article 44 Article 47 Article 48
Striving for Win- Building a Responsible Supply Chain 103-3/204-1/308-1/414-1/414-2 Article 45
Green products owned / / / 15 Win Progress 2-7/2-8/2-30//401-1/401-2/401-3/403-1/403-2/
Toward Social Fulfilling Employees’ Value 403-3/403-4/403-5/403-6/403-7/403-9/403-10/ Article 49 Article 50
Harmony 404-1/404-2/405-1/406-1/408-1/409-1
Steel product EPDs / / 3 9 Contributing to Social Harmony 413-1/415-1 Article 38 Article 39 Article 40
Outlook in 2025 2-22
Clean transport ratio % / over 85 80.2 Key Performance Table
ESG Indicator Index Article 54
Third-party Rating
Feedback83 Shanxi Taigang Stainless Steel Co. Ltd. 2024 Sustainability (ESG) Report 84
Third-party Rating
Rating Report of 2024 Sustainability/ESG Report of Shanxi Taigang Stainless Steel Co. Ltd. Comparability ( ★★★★★ )
The Report discloses the comparative data for 83 key indicators for three consecutive years including the "energy consumption" "comprehensive energy
consumption per ton of steel" "labor contract signing rate" "proportion of R&D personnel" "steel production" and "total profit" and provides horizontal
Upon the request of Shanxi Taigang Stainless Steel Co. Ltd. the Chinese Expert Committee on CSR Report Rating invited experts to form a Rating Team
comparisons such as the "ESG Pioneer Index Top 100 Central SOEs" for horizontal comparison. Therefore the Report has excellent comparability
and rated the 2024 Sustainability/ESG Report of Shanxi Taigang Stainless Steel Co. Ltd. (hereafter referred to as "the Report").performance.I. Rating Criteria
Readability ( ★★★★★ )
The Guidelines on Sustainability Reporting for Chinese Enterprises (CASS-ESG 6.0) issued by the China Enterprise Reform and Development Society and The Report has a clear framework and complete structure with four major chapters detailing the Company's CSR concepts and achievements in the
the CSR Cloud Research Institute and the Rating Standards for the Sustainability Report of Chinese Enterprises (2025) issued by the Chinese Expert environmental social and governance domains demonstrating the Company's sense of responsibility. The cover features the Company's distinctive logo
Committee on CSR Report Rating. to enhance the recognition of the Report. The cross-page of each chapter is designed with real-life images and narrative introductions that match the topic
discussed in the chapter enabling readers to quickly learn about the key points of the chapter and enhancing the communicability of the Report. Therefore
II. Rating Process the Report has excellent readability performance.
1. The Rating Team reviewed and confirmed the Confirmation Letter on Materials for the Process Evaluation of the Sustainability Report of the Company Innovation ( ★★★★★ )
and related supporting materials submitted by the Preparation Team of the Report;
Three major CSR topics: "Cicadas wing like steel Technological innovation shaping the ultimate beauty of stainless steel" "Directing to green development
2. The Rating Team evaluated the compilation process and the disclosed information of the Report and drafted the Rating Report;
Creating new driving forces for green development of steel industry" and "Connecting chains into clusters Creating a high-quality industry chain ecosystem
3. The Vice Chairman of the Chinese Expert Committee on CSR Report Rating and the leader and the expert of the Rating Team cosigned the Rating
for special steel materials" are set out to summarize and showcase the great achievements of the Company in fulfilling its corporate responsibilities
Report.from scientific and technological innovation green development and ecosystem building respond to the expectations of stakeholders and demonstrate
III. Rating Results the Company's sense of responsibility. The annual key performance data are summarized in the "numbers in 2024" to enhance the credibility of the
contents and the Company's achievements in fulfilling its corporate responsibilities are presented in the form of stakeholder's testimony to enhance the
Process ( ★★★★★ ) communicability of the Report. Therefore the Report has excellent innovation performance.The Corporate Culture Department of the Company was responsible for the overall preparation of the Report coordinating all departments to provide
Overall Rating ( ★★★★★ )
materials as required and submitted the Report prepared to the Sustainability Working Committee and the Board of Directors for final approval and giving
the final review opinions. The Report was positioned as an important tool to meet the requirements for compliance management disclosures improve Upon evaluation by the Rating Team the 2024 Sustainability/ESG Report of Shanxi Taigang Stainless Steel Co. Ltd. is rated as a five-star and excellent
sustainability management level disseminate corporate sustainable brand image disclose corporate responsibility fulfillment information and respond to sustainability report.capital market demands with clear functional and value positioning. According to the latest sustainability information disclosure standards at home and
abroad the method for analyzing the double materiality of ESG issues was upgraded by integrating financial materiality analysis on the basis of impact
materiality assessment so as to identify and disclose key issues. The ESG indicator system was continuously improved in a scientific and standardized
manner to reflect the actual situation of the enterprise. The Report was published through the Company's official website Shenzhen Stock Exchange and
other platforms and presented in an H5 version with a single image to summarize the key points. Therefore the Report has excellent process performance.Materiality ( ★★★★★ ) The Sustainability/ESG Report of Shanxi Taigang Stainless Steel Co. Ltd. is rated as a five-star report for the 9th consecutive year
The Report systematically disclosed the key issues in the industry such as addressing climate change pollutant discharge waste treatment energy and
resources conservation R&D and application of environmental protection products or technologies biodiversity and land use sustainable supply chain IV. Suggestions for Improvement
construction of intelligent plants safety and quality of products and services occupational health and work safety sustainable governance mechanism
anti-commercial bribery and anti-corruption which are fully described in detail. Therefore the Report has excellent materiality performance. Negative information and corresponding prevention and response measures should be disclosed adequately to improve the balance of the report.Completeness ( ★★★★☆ )
The main body of the Report systematically discloses 89.51% of the core indicators of the industry in the sections of "Consolidating the foundation to
accumulate development momentum" "Casting high-quality products to cultivate new quality productive force" "Upholding green and low-carbon initiative
to build a beautiful China" and "Achieving mutual benefits to co-build a harmonious society". Therefore the Report has leading completeness performance.Balance ( ★★★★☆ )
Vice Chairman of the Chinese Expert Leader of the Rating Team Expert of the Rating Tea
The Report discloses many negative data such as the "number of environmental punishment events" "number of work safety accidents" and "number of
Committee on CSR Report Rating
work-related deaths" and briefly described the relevant situations such as "no punishments by domestic or foreign market supervision or administration
institutions due to unfair competition" and "no major environmental emergencies or environmental violations". Therefore the Report has leading balance
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performance. Date issued: April 11 2025 the enterprise’s rating file85 Shanxi Taigang Stainless Steel Co. Ltd.Feedback
Dear readers
Thank you for taking the time to read our sustainability (ESG) report amidst your busy schedule. We remain committed to delivering
comprehensive and meaningful information to enhance public understanding of our sustainability (ESG) management capabilities. We
sincerely invite you to share any feedback and suggestions on this report - your insights will help us continuously improve our reporting
process and enhance the effectiveness and transparency of our sustainability (ESG) management. Thank you for your continued interest
and support. We look forward to working together with you towards a better future!
1. Please select the stakeholder group that best represents you
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□ Green products □ Technological innovation □ Product quality and safety □ Customer service
□ Supply chain security □ Promotion of industrial development □ Employee development □ Corporate governance
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