Shanxi Taigang Stainless Steel Co., Ltd.
Sustainability (ESG) Report
About This ReportMessage from the ChairmanAbout UsKey Figures of 2024Sustainability ManagementHonorsCSR Spotlights
Outlook in 2025Key Performance TableESG Indicator IndexThird-party RatingFeedback
About This ReportThis is the 17th annual Sustainability (ESG) report released by Shanxi TaigangStainless Steel Co., Ltd. (“Taigang Stainless”, “STSS”, “the Company”, or “we/our”for short), which is released simultaneously with the Company’s annual report.This report was approved and released at the 29th meeting of the 9th Board ofDirectors of the Company on April 24, 2025.Reporting scopeThe Report focuses on Shanxi Taigang Stainless Steel Co., Ltd. The Report coversShanxi Taigang Stainless Steel Co., Ltd. and its directly affiliated second-tiersubsidiaries and branches.Reporting periodThe reporting period is from January 1, 2024 to December 31, 2024. To enhancethe comparability and timeliness of the Report, some information dates back toprevious years or refers to the rst quarter of 2025.Preparation BasisThis report is prepared mainly based on the Self-Regulatory Guidelines No.17 forCompanies Listed on Shenzhen Stock Exchange—Sustainability Report (For TrialImplementation), Self-Regulatory Guidelines No.3 for Companies Listed on ShenzhenStock Exchange — Preparation of Sustainability Report and the Guidelines forthe Preparation of CSR and ESG Reports for Subsidiaries of China Baowu SteelGroup Corporation Limited (Baowu). It also references the United Nations SustainableDevelopment Goals (SDGs), the GRI Sustainability Reporting Standards (GRI Standards)issued by Global Sustainability Standards Board (GSSB), ISSB standards, the ChinaCorporate Sustainability Reporting Guidelines (CASS-ESG 6.0) released by ChineseAcademy of Social Sciences, and other guidelines and initiatives.Data InformationThe financial data in this report complies with the provisions of the ChineseAccounting Law and Accounting Standards for Business Enterprises, and has beenaudited in accordance with national auditing standards.Preparation processThe preparation process for the Report covers team building, research on domesticand international policy trends, initiation training, data collection, stakeholder surveys,dual materiality analysis, framework establishment, report drafting, translation,design, review by departments and senior management, and report grading.Reliability assuranceThe Company ensures the completeness, materiality, balance, and comparabilityof the content disclosed in the Report, and systematically introduces theCompany’s philosophy, systems, actions, and performance in pursuing economic,environmental, and social development. The Company assures that this report isfree of false records or misleading statements.Reporting language and accessThe Report is published in both Chinese and English versions. In the event of anydiscrepancies in understanding between the Chinese and English versions, theChinese version shall prevail. Furthermore, this report is published in both print andelectronic formats, with PDF version available on our website http://tgbx.tisco.com.cn for viewing or download.
Building a SolidFoundation and FosteringGrowth Drivers
Pursuing Excellence andNurturing New QualityProductive Forces
Striving for Win-WinProgress Toward SocialHarmonyUpgrading Innovation ManagementSeeking Innovation-driven DevelopmentAchieving Excellent QualitySupporting Industrial Upgrading
Upgrading Quality ServicesBuilding a Responsible Supply ChainFullling Employees’ ValueContributing to Social Harmony
2959
Building a Beautiful ChinaThrough Green and Low-Carbon DevelopmentStrengthening Environmental ManagementImplementing Green ProductionMaking Green a Dening FeatureTackling Climate Change
Strengthening the Leading Role ofParty BuildingImproving Corporate GovernanceFollowing Business Ethics andCompliance Requirements
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 efcient development. Embracing a mindset to bring out all development potential, we seized on-site improvementand market opportunities and advanced product-based, integrated, and lean operations that make financial sense. These effortsboosted 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 advancedcustomer-centered mechanism reforms and strengthened our product teams, resulting in a signicant increase in sales of high-end anddifferentiated products.In 2024, we maintained smart development by advancing projects to replace manual labor with mechanization, reduce theworkforce through automation, and achieve unmanned intelligent operations.By driving AI innovations, we optimized production sites with minimal or even zero human intervention. With measurable standardsand metrics, we built data models, automated equipment, and introduced intelligent systems. The application of big data continued toexpand, elevating our lean manufacturing capabilities.In 2024, we devoted ourselves to green development by making intensive adjustments to key processes to consolidate andextend 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 saltrecovery system retrotting, earning recognition as a water-efcient 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 rst eight recognized low-carbon steel categories in the industry.In 2024, we focused on efcient development by raising our intrinsic efciency and promoting lean operations.We rened production line task distribution, thus improving efciency. The “one headquarters, multiple bases” integration deliveredsignicant synergies and value creation. We achieved progress in personnel efciency, per capita steel output, and prot margins perton of steel. By deepening internal reform, we fostered an increasingly dynamic, clean, and motivating culture, gathering signicantstrengths 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 afaster pace, and sharpen core competitiveness amid multiple challenges posed by a prolonged industry downturn. Driven by reformand innovation, we will benchmark ourselves against others to identify gaps and spare no effort to optimize our structure, reducecosts, improve efciency, strengthen the supply chain, and prevent risks. These efforts will enhance our operational efciency andperformance, helping us secure greater achievements in building the world’s most competitive high-tech enterprise with a completestainless steel industry chain.
Chairman
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
Company OverviewAs 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 13,080 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 capitalraised through public funding. The Company was listed on the Shenzhen Stock Exchange in June 1998 (Stock Code: 000825). In June 2006, STSSacquired TISCO’s core steel assets, bringing the Company a compelte steel production process and supporting facilities. In December 2020, ShanxiState-owned Capital Investment and Operation Co. Ltd., which held 100% equity in TISCO, transferred 51% of it to China Baowu Group at no cost.As a result, China Baowu Group became the indirect controlling shareholder of the Company, and our actual controller changed from the State-owned Assets Supervision and Administration Commission of Shanxi Provincial People’s Government to the State-owned Assets Supervision andAdministration Commission of State Council (SASAC).The Company specializes in the development of special steel, especially stainless steel. We have established innovation platforms such as thenational key laboratory for advanced stainless steel materials and the national physical and chemical laboratory, with over 800 core and proprietarytechnologies containing independent intellectual property rights, primarily in stainless steel. We have led or participated in the formulation of more than70% of China’s stainless steel plate and strip standards. The Company has developed a portfolio of high-efciency, energy-saving, and long-lifespansteel 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 specications such as ultra-wide, ultra-thick, and ultra-thin materials. Our cutting-edge products, such as pen-tipsteel, hand-torn steel, nuclear-grade stainless steel, railway-grade steel, duplex stainless steel, and high-grade silicon steel for new energy vehicles,are renowned at home and abroad. “TISCO-brand” stainless steel has been recognized as a “China Famous Brand Product” and the “Most InuentialStainless Steel Brand in China.”Committed to green and low-carbon development, we accelerate our work agenda centering around carbon peaking and carbon neutrality andcoordinate the reduction of pollution and carbon emissions. Building on our achievement of A-level environmental performance for ultra-low emissionsacross the entire production process, we pursue the goals of “higher than the standard, better than the urban area, integrating into the city.” Guided bythese goals, we intensify our efforts by launching the campaign to build an all-factor ultra-low-emission AA enterprise, targeting ultra-low air emissions,zero wastewater discharge, zero solid waste leaving the plant, minimal noise pollution, and a cleaner, better plant environment. These measures haveelevated our environmental performance from good to excellent. As a result, we have been recognized as one of China’s rst green plants and an A-levelenvironmental performer in the steel industry. We also contribute to harmonious coexistence with cities by treating municipal wastewater for reuse incity 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 efcient development, we will leverage technological innovation as thedriving force, benchmark ourselves against others to identify gaps, and empower ourselves through reform and innovation. We will strengthen our corecapabilities and competitiveness, striving to become the world’s most competitive high-tech enterprise with a complete stainless steel industry chainand a world-class stainless steel manufacturer.
Corporate CultureAbout Us
Total assets
67.53
CNYbillion
Revenue
100.38
CNYbillion
Mission
Values
To support advancedmanufacturing andcreate a better life
Integrity InnovationGreen Collaboration
VisionTo become a globalleader in the stainlesssteel industry
Corporate SpiritLi Shuangliang SpiritSub-cultureIntegrity culture Innovation cultureSafety culture Quality cultureGreen culture Marketing cultureResponsibility culture Integrity culture
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
Economicperformance
KeyFiguresof 2024
Organizational Structure
Environmentalperformance
Socialperformance
Total assetsTotal tax payment
Revenue
Social contribution valueper shareTotal equity attributable to theowner of a listed company
67.53
100.38
0.579
32.57
CNYCNY
CNYCNYbillionmillion
billion
CNY/sharebillion
Total investment in environmentalprotection projects
Investment in work safety R&D investment
Utilization rate of solid waste
Water reuse rate
User complaint resolution rate
Employee trainingcoverage rateSupplier ESG training
Customer satisfaction
New patentapplications
Consumption of fresh waterper ton of steel decreased
Urban sewage and reclaimedwater treated
Total investment in energy-efcienttechnology retrots
1664.11
99.53
99.02
98.9
10041130
87.9
22.8
24.93
CNY
CNYCNY
CNYmillion
million
Employee traininginvestment
25.13
CNYmillion
billion
%
%
%points
%sessions, totalinghours
%
million m
million
Scope 1 GHG emission reduction*Scope 2 GHG emission reduction*
0.160.01million tonsmillion tons
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.
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
Shanxi Taigang Stainless Steel Co., Ltd.
Directly afliated secondary unitsControlled subsidiaries
Wholly-owned subsidiary
Administrative Ofce (Party Ofce)Discipline Inspection and SupervisionDepartment (Discipline Inspection Dept.)HR Department (Organization Department,United Front Work Department)Audit Department (Inspection Ofce)Corporate Culture Department(Publicity Department)Trade Union and Youth LeagueCommitteeOperations Improvement DepartmentLegal and Compliance DepartmentBusiness and Finance DepartmentPlanning and Development DepartmentSafety Supervision DepartmentEnvironmental Protection DepartmentCapital Operations and Overseas BusinessDevelopment Department (Securities andInvestor Relations Management Department)
Operation Center (ProcessSupport Ofce)Tech Center (Specialty SteelDevelopment BusinessDepartment)Marketing CenterProcurement CenterManufacturing DepartmentEquipment DepartmentEnergy DepartmentLogistics DepartmentEngineering ManagementDepartmentSecurity Department(Fire Brigade)
Silicon Steel Division
Wuhan Taigang Sales Co., Ltd.
Iron smelting plant
Beijing Taigang Sales Co.,Ltd.Taiyuan Iron and Steel (Group) SpotSales Co., Ltd.Shenyang Taigang Stainless SteelProcessing and Sales Co., Ltd.Chengdu (Taigang) Sales Co., Ltd.Wuxi Taigang Sales Co., Ltd.Hangzhou Taigang Sales Co., Ltd.Foshan Taigang Stainless Steel Sales Co., LtdX’an Taigang Sales Co., Ltd.Shanxi Taigang Dingxiang Sales Co., LtdQingdao Taigang Sales Co., Ltd.Tianjin Taigang Sales Co., Ltd.Taigang Europe LLCShanxi Taigang Bonded ComprehensiveService Co., Ltd.Taiyuan Iron and Steel (Group) MetalRecycling and Processing Trade Co., Ltd.Shanxi Linfen Taigang Medium and HeavyPlate Co., Ltd
No.1 Steel MillNo.2 Steel MillHot rolling millCold rolling millContinuous hot rolling millStructural Section DivisionWire DivisionTianjin Taigang TianguanStainless Steel Co., Ltd.Shandong Taigang XinhaiStainless Steel Co., Ltd.Shanxi Taigang StainlessPrecision Strip Steel Co., Ltd.Shanxi Taigang StainlessSteel Pipe Co., Ltd.
ESG MaterialTopics
Conducting ESG materiality assessments is fundamental to STSS’s ESG strategic planning, riskand opportunity management, and information disclosure. In 2024, the Company followed doublemateriality assessments according to the latest international sustainability disclosure standards.This upgrade incorporated financial materiality assessments into the existing impact materialityassessments, ensuring that we evaluate not only the external environmental and social impact of ourbusiness operations but also the critical topics that impact our nancial performance.
ESGCommunication
The Company prioritizes sustainability management as well as the summary and disseminationof best practices. Through multiple communication channels, including newspapers, television,websites, mobile reports, WeChat, and Weibo, we showcase our sustainability achievements. On theCompany's ofcial website, a dedicated section “CSR Updates”, under “Sustainable Operations,"provides stakeholders with comprehensive insights into our best sustainability practices and cases.This helps strengthen employees’ awareness of and engagement in fullling social responsibility.OrganizationalSystem
To effectively implement the Company’s sustainability principles, the Company has establisheda well-defined, tiered ESG management framework. The Board of Directors has set up theStrategy, ESG, and Technological Innovation Committee. It studies and advises on the Company’sESG objectives, strategic planning, governance structure, and management policies, while alsosupervising, guiding, and assessing ESG-related matters and performance. The SustainabilityManagement Committee oversees company-wide sustainability initiatives by setting overarchingstrategies, goals, missions, and guidelines and refining sustainability management processes. Italso strengthens the governance and coordination of major sustainability matters and activities.The office of the Sustainability Management Committee is established at the Corporate CultureDepartment, which collaborates with all subsidiaries and departments to advance daily sustainabilityefforts, enhance sustainability management, and improve our performance. The sustainabilitypromotion group of each subsidiary and business unit implements sustainability tasks andrequirements to ensure systematic, normalized, and integrated sustainability management.
ImplementationMechanism
According to prevailing sustainability (ESG) policies and standards at home and abroad, we improveour ESG indicator system to make it more science-based and meet the Company’s reality. TheCompany integrates ESG into strategic planning and annual business plans, with a well-structured,clearly dened, and efcient ESG management mechanism. This framework strongly supports thecontinuous improvement of corporate governance.
Upholding the principle of “leveraging stainless steel know-how to create exceptional quality andgenerating value for stakeholders,” the Company is committed to sustainable development byenhancing our sustainability framework and capabilities. We strive to create long-term corporatevalue and resilience, and work with stakeholders to achieve sustainable growth and responsiblebusiness practices, contributing to sustainable development around the world.SustainabilityManagement
Headquarters Departments and OfcesDirectly Afliated Secondary Units
Work Promotion Team
Subsidiaries
Sustainability Management Committee
(Subordinate committee ofces)
Organizational structure for sustainability management
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 anESG topic repository after fully considering factors such as international and domestic sustainability standards and initiatives, ESG capitalmarket rating criterions, industry policy trends, peer company focus, and the Company’s strategic development. The repository covers 24topics, including 9 environmental topics, 11 social topics, and 4 governance topics.Topic MetricTopicDescriptions and ChangesEnvironmental(9)
? Environmentalcompliancemanagement? Energy utilization? Water resourcesutilization? Circular economy? Climate response
? Green products? Pollutant discharge? Waste disposal? Biodiversityconservation
? New topics: “Environmental compliance management” and “energy utilization”have been added to the materiality analysis. Information on these topics hasbeen continuously disclosed in the Reports.? Topic change: To align with the requirements of the Guidelines, topics such as“waste utilization,” “water resource management” and “renewable resourceutilization” have been renamed to “waste disposal,” “water resource utilization,”and “circular economy,” respectively. “Air pollution management” has beenrenamed to “pollutant discharge” to expand the scope of the topic.
Social (11)
? Technological innovation? Product quality and
safety? Customer service? New materials? Supply chain security? Promotion of industrialdevelopment
? Protection of
employees’ rightsand interests? Employee
development? Occupational health
and safety? Rural revitalization? Social contribution
? Undisclosed topics: To align with the requirements of the Guidelines, topics
such as “ethics of science and technology” and “equal treatment of SMEs” asstipulated in the Guidelines are not included in the ESG topic repository.? Topic change: “Public welfare” and “volunteer services” have been incorporatedinto the topic of “social contribution.” “Customer service” has been kept thesame since its broader connotation covers service quality as well as data securityand customer privacy protection. “Data security and customer privacy protection”has not been set up separately. “Product quality” has been renamed to “productquality and safety.”Governance
(4)
? Corporate governance? Due diligence? Business integrity? Business ethics
? Topic change: “Risk management” has been renamed to “due diligence”; “anti-
commercial bribery and anti-corruption” and “anti-unfair competition” have notbeen set up separately since “business ethics” has a broader connotation.? “Stakeholder communication” has not yet been included in the ESG topicrepository for materiality analysis, but the section of “stakeholder communication”has been set up in the Report to align with the requirements of the Guidelines.
Step 1: Identifying ESG topics and establishing an ESG topic repository
CapacityBuilding
Emphasizing specialized ESG management and training, we optimize corporate management basedon the ESG framework and strive to enhance our ESG management and capabilities. The Companyhas established the CSR/ESG Work Group, and organize them to participate in online training andexchanges offered by top CSR/ESG institutions. For the executives and professional managers, Wehost training programs on better CSR/ESG management and sustainability reporting, and producedthe online lecture on China Baowu CSR/ESG Management System Development, which has beenuploaded to the Employee E-education/training Platfor. These efforts enhance the Company’s valuecreation, corporate governance and CSR performance.
Board of DirectorsStrategy, ESG, and Technological Innovation Committee
ESGPerformance
In 2024, the STSS 2023 Sustainability (ESG) Report received a ve-star (excellent) rating from theChinese Academy of Social Sciences for the eighth consecutive year and was recognized with the“GoldenBee Excellent Corporate Sustainability Report 2024 – Environmental Information DisclosureAward.” The Company received the Silver Award for the 2022–2023 “Baowu Social ResponsibilityPioneer Award.” The case of Establishing TISCO’s Nuclear-Grade Stainless Steel as a Global Brandwas recognized as a “2023 Baowu Benchmark Case in Social Responsibility.” And the Company waslisted in the “Central SOE ESG Pioneer 100 Index,” ranking 49th.
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
Based on the ranking of the above ESG topics in terms of impact materiality and nancial materiality, a dual-materiality topic matrixis established. Through matrix analysis, two ESG topics with high nancial and impact materiality are identied, namely technologicalinnovation and climate response. There are 19 topics of medium materiality and 3 topics of general materiality.
For topics with high nancial materiality, including technological innovation and climate response, a comprehensive analysis is conductedon their scope of impact, risks and opportunities, and impact cycle, with focused reporting of related governance, strategy, impact andrisk opportunity management, as well as metrics and targets. Relevant management and actions are disclosed for topics with mediumand general materiality in the Report. Considering that environmental topics within the medium-materiality category are generallymore significant, information related to governance, strategy, impact and risk opportunity management, and metrics and targets forenvironmental topics are also disclosed in the Report.
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 FinancialMaterality
Scope of Impact
AffectedStakeholders
RiskOpportunityImpact CycleChapterSDGsUpstreamValue Chain
CorporateOperation
DownstreamValue Chain
Technological
innovation
??
? Customers? Partners? Employees
? A significant amount of R&D investment often requiredmay increase the Company’s costs in the short term? Technological innovation may lead to uncertain marketacceptance of products or services, which in turnincreases market risks.
? Technological innovation oriented towards customer needs enablesthe Company to adapt more exibly to market trends and enhances itscompetitiveness and leadership within the industry in the long term.
Medium and long
term
Upgrading Innovation
ManagementSeeking Innovation-driven Development
Climateresponse
???
? Suppliers? Customers? Partners? Employees? Communities
? Trends such as climate-induced natural disasters,unstable energy supplies, policy updates, and changes inmarket preferences cause physical and transition risks tothe Company, which may increase the Company’s costsand affect its operations.
? Seizing the business opportunities for low-carbon products andpursuing innovative sustainable business development modelsenhance corporate reputation and image, and improve the Company’smarket competitiveness.
Medium and long
term
Tackling Climate
Change
Step 2: Materiality assessment
Step 4: Topic review, conrmation and disclosure
Step 3: Materiality ranking
High
High
Impact materiality on the economy, society, and environment
Financial materialityLow
?
Technological innovation?
Climate response?
Product quality and safety?
Business integrity
?
Corporate governance?
Protection of employees’ rights and interests?
Supply chain security?
Promotion of industrial development
?
Rural revitalization
?
Water resources utilization?
Waste disposal?
Biodiversity conservation
?
Employee development
?
New materials?
Energy utilization?
Business ethics?
Due diligence
?
Customer service?
Circular economy?
Environmental compliance management
?
Social contribution
?
Occupational health and safety
?
Green products?
Pollutant discharge
Considering the degrees of impact and likelihoodof occurrence of ESG topics on the economy,society, and environment, a questionnaire surveyis conducted among the Company’s stakeholders,with an impact materiality threshold set to assessthe materiality of these topics based on theirpotential impact.
Considering the risks and opportunities and likelihood that may arisein short, medium, and long terms, a questionnaire survey is conductedamong the directors, senior management, and representatives fromLegal Compliance Department, Finance and Operations Department,Securities and Investor Relations Department, and Corporate CultureDepartment, as well as external investor representatives, with afinancial materiality threshold set to assess the significance of thenancial impacts of ESG topics on the Company.
Conducting impact materiality
assessment
Conducting nancial materiality
assessment
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
1112
StakeholderCommunication
Stakeholders are influenced by a company’s ESG performance and their actions affect acompany’s long-term development. To better understand stakeholder expectations and fostera positive relationship, the Company has established a regular stakeholder communicationmechanism. This ensures a timely understanding of stakeholder interests and concerns whileseeking their understanding and support for ESG strategy.
DateAwardSponsor
2024.01
Three products were awarded the Metallurgical Product Physical QualityGold Cup for outstanding quality
China Iron and Steel Association
2024.06Well-performing “Technological Reform Enterprise” of Central SOEs
State-owned Assets Supervision andAdministration Commission of theState Council (SASAC)2024.08
The “Modeling Innovation and Application of Multi-Category High-Quality Integration Based on Quality Technology" project won thesecond prize of Quality Technical Awards
China Association for QualitySecond prize of China Quality Innovation and Quality ImprovementAchievements Exchange Activities
China Association for QualityMetallurgical Science and Technology AwardChina Iron and Steel Association2024.10
Typical Case of Water-Saving Industrial Enterprises with High-QualityDevelopment in the Yellow River Basin
Yellow River Conservancy Commission
of Ministry of Water Resources
2024.11Listed in Central SOEs (ESG): Pioneer 100 IndexBureau of Social Responsibility, SASAC2024.12
Dual Carbon Best Practice Energy Efciency BenchmarkingDemonstration Processes/Equipment
China Iron and Steel AssociationAdvanced Enterprise in the Three-Year Action for Energy EfciencyBenchmarking in the 2024 China Steel Industry Ultimate EnergyEfciency Project
China Iron and Steel AssociationSecond place in Dual Carbon Skills Competition for National SteelIndustry Workers of the First Green Hanggang Cup
China Machinery, Metallurgy and
Building Materials Workers Technical
AssociationShanxi Science and Technology Awards
Department of Science and Technology
of Shanxi Province2024 GoldenBee CSR China Honor Roll · Environmental ResponsibilityInformation Disclosure Award
GoldenBee ThinkTank
2025.01
The Company’s “hand-tear steel” innovation and R&D team is honoredas the “Role Model of Central SOEs”
CPC Committee of SASACRecognized as “Excellent” on the Ranking of Dual Carbon Leadership ofChina’s Top 100 Listed CompaniesRanked rst in the steel sector on the Carbon Efciency Ranking ofChina’s Top 100 Listed Companies
Caijing Magazine
StakeholdersExpectations and demandsResponse methods
Government
? Tax payment in accordance with the law andjob creation? Promoting economic and social development? Compliant and legal operation, and faircompetition? Fullling corporate social responsibility
? Field research? Group discussions? Compliance information disclosure
Shareholders
? Operational compliance? Stable investment return? Business information disclosure
? Shareholders’ meetings? Investor meetings? Earnings announcements? Press releases/announcements
Customers
? Contract fulllment with integrity? High quality products? Quality services
? Customer satisfaction surveys? Customer complaints and countermeasures? Product promotion activities
Suppliers
? Honesty and integrity? Openness and fairness? Mutual benets
? Supplier trainings? Exchange meetings
Employees
? Protection of rights and interests? Career development? Occupational health? Humanistic care
? Employee communication activities? Employee trainings? Care and assistance activities? Internal publications, WeChat ofcial accountand others
Partners
? Fair procurement? Honesty and mutual benets? Long-term stable relationship
? Exhibitions? Project cooperation
Peers
? Fair competition? Industry development
? Industry exchange meetings
Communities
? Paying attention to community development? Strengthening community communication? Engagement in social welfare
? Public welfare activities? Community communication
Media
? Information disclosure and transparency
? Press releases/announcements? Ofcial media platforms
Honors
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.1314
Fostering the Ultimate Excellence of Stainless Steel viaTechnological InnovationHand-torn steel, as thin as cicada wings, is hailed as the “crown jewel of the steel industry.” By developing hand-tornsteel, we have transformed hardened steel into material as soft as silk around a nger. From conventional steel productsto emerging materials, we continuously push the limits of innovation and creation, reecting our relentless pursuit oftechnological innovation and our support for the high-quality development of China’s stainless steel industry.CSRSpotlights
Ultra-thin SteelThinSteel
Products and technology form the foundation of a company’s success. Companiesshould continue to push the boundaries of technological innovation and strive forgreater breakthroughs, making greater strides in supporting the development ofadvanced manufacturing.
—Xi Jinping, Chinese President, made the comment during his 2020
inspection of “hand-torn steel” foil
ThinSteel
Xi Jinping, Chinese President, visited TISCO andemphasized the importance of “catching up and forgingahead.”June 22, 2017
After 711 trials, overcoming more than 170 equipment problemsand 450 process problems, the rst batch of hand-torn stainlesssteel (0.02mm thick, 600mm wide) was produced, overcomingthe limits of rolling mill specications. STSS became the onlycompany globally capable of mass-producing ultra-thin, widestainless steel precision foils.
June 2018
2023
The hand-torn steel R&D team is honored as a“Central SOE Role Model” by the SASAC
May 2021
Two “hand-torn steel” products, precisionfoil with a smooth surface and 0.07mmultra-at stainless precision strip, havebeen launched globally.
May 2022The JDA61 precision stainless strip forhydrogen fuel cell bipolar plates has madeits global debut.
2024Xi Jinping, Chinese President, revisited TISCOand inspected the 0.22mm stainless steel hand-torn steel foils, commenting, “ Our sophisticatedtechniques produce steel as thin as foil，thecountless renements make hardened steel as softas silk around a nger."May
We developed 0.015mm-thick hand-torn stainless steel,setting a new world record for Chinese manufacturing.
August
Our R&D team is pushing the research of metal masksfor OLED displays.October
2020
We have initiated the development of the 4J42K nickel-basedprecision alloyed steel strip for lead frames.
March
We completed the rst sample delivery of metal photomask basematerials.
April
We successfully rolled the rst batch of photomask base materials.AugustThe rst domestically produced metal masks have been launched,marking a milestone for metal masks made in China and used inChinese products.October
Mass production has begun for “chip steel”designed for lead frame applications.January
We have developed precision steel strips,exible screen steel, and low-magnetic,high-strength, and ultra-at materials for thenext-generation high-end 5G electronics.JulyBy the end of 2024：
We have over 20 products in
four major categories with 44 core stainless steel
patents, including 30 invention patents.
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.1516
Shanxi Taigang Stainless Steel Co., Ltd.
The Company transformed from traditional crudesteel to high-precision, cutting-edge products,, andquickly established the “hand-torn steel” R&D team.
2016
The Company Upholds an eco-friendly product design philosophy, we seek new applications, functions, and performances for existing products,broadening the scope of stainless steel applications.
Guided by six key low-carbon development pathways, the Company hasestablished the first decarbonization intelligent information managementplatform in China’s stainless steel industry. This platform includescarbon data management, carbon footprint management, carbonemissions management, carbon asset management, carbon informationmanagement, and carbon inclusion. With this system, STSS has achievedthe traceability of carbon emissions data for steel products, ushering inrened and comprehensive carbon management.
Exploring advanced materialsIntegrating smart control system
STSS has developed a low-carbon stainlesssteel short-process smelting process, reducingcarbon emissions by more than 70% comparedto conventional methods.Stainless steel replaces carbon steel, offering long-lifespan, green, and low-carbon solutions andlowering lifecycle costs.
The Company consistently adopts a high pellet ratio in blast furnace smelting to control coal consumption in ironmaking effectively. We alsoadvance the research and application of new energy-saving, low-carbon technologies, including carbon capture, utilization, and recycling.
Integrating smart control systemRevolutionizing technologies
Guided by an approach of “saving resources and expanding utilization,” the Company improves multi-steam-sourceintegration. We have upgraded the cooling part of the 1549 waste heat unit, expanded steam extraction capacity for theCDQ2# unit, optimized peak cooling for the CDQ1# unit, and transformed the new steelmaking waste heat unit. Thesemeasures signicantly improve waste heat and steam recovery efciency. In 2024, the Company was recognized as a“Benchmark Enterprise for Best Decarbonization Energy Efciency.”
| Maximizing energy efficiency | Revolutionizing technologies |
Optimizing energy structure and processes
The Company advances photovoltaic power projects, with an installedcapacity of 15.53 MW and an annual electricity output of 15.57 GWh,reaching a leading level within the China Baowu Group. The Companyhas also purchased 258.5 GWh of green electricity, maintaining anannual procurement volume exceeding 0.2 TWh for two consecutiveyears, effectively supporting the R&D and production of low-carbon steel.
Photovoltaic powergeneration
Purchased greenelectricity
15.57
GWh
258.5
GWh
Optimizing energy structure and processesDeepening the integration with cities
The Company maximizes the use of industrial waste heat from production processes to supply clean heatingfor urban areas, meeting 60% of heating demand. During the reporting period, the Company's centralizedheating coverage has reached 21.5 million square meters, fostering deep city-enterprise integration, enhancingenergy efciency, and reducing carbon emissions.
The Company prioritizes the use of new-energy off-road vehicles and new-energy vehicles for transportationand continuously optimizes the logistics of bulk materials and products. Through green logistics, the Companyhas achieved a clean transportation ratio of 80.2%. Additionally, we have developed an intelligent raw materialyard that reasonably arranges and tracks the storage, transportation, and mixing of raw materials, realizingautomation, mechanization, and digitalization. This has significantly reduced dust by over 80% and roadpollution from vehicles by over 98%.
Deepening the integration with citiesBuilding a green logistics network
Launching an industrial demonstration project for CCUSThe Company have launched an industrial demonstration project for carbon capture, utilization, and storage (CCUS) using chemicalabsorption. The initiative includes constructing a CO
production line with an annual capacity of 60,000 tons, primarily for use insteelmaking converters. The captured CO
contains over 28% CO, increasing its caloric value by 32%, making it more efcient forreheating furnaces in the rolling process. This project pioneers a new technology pathway integrating CO
capture, CO
top-bottomcombined blowing energy-efcient converter operations, and high-CO-content gas reuse.
GreenGreen
Nurturing New Momentum for Green Steel DevelopmentIn response to China’s strategy of carbon peaking and carbon neutrality (decarbonization), the Company steadily advancesthe “13473” initiative (1 low-carbon development center, 3 low-carbon development stages, 4 low-carbon implementationsteps, 7 low-carbon development pathways, and 3 low-carbon management platforms) for green and low-carbondevelopment. By leveraging the dual benets of “green manufacturing” and “manufacturing green,” the Company acceleratescarbon reduction across the entire production process covering all factors of production. Expanding the application of low-carbon steel products in diverse settings, the Company continues to unleash “green momentum” featuring greater impactand stronger competitiveness, with steady progress achieved in the pursuit of green and low-carbon development.
Green Transition
CSRSpotlights
Clean transportation ratio
80.2%
The ratio of supply cleanheating60%
1718
Shanxi Taigang Stainless Steel Co., Ltd.
The Company accelerates high-end, digital, intelligent, green, and clustered development of new materials, contributing to the government’sstrategic emerging industry clusters. In 2024, three of the Company’s products were listed in the First Batch of Shanxi Province’s New MaterialsCatalog, the highest number among enterprises in the province.
Focusing on downstream deep-processing within the specialtysteel industry, the Company engages with leading enterprises whilepartnering with the Jiancaoping District government and ZhongbeiHigh-Tech Zone Management Committee to establish a “government+ industrial park + leading enterprise” model to attract businesses.Together, we have hosted three targeted investment conferences forthe specialty steel and high-end metal materials industries, attractingover 160 enterprises to reach out for partnerships. As a result, 11companies have signed investment agreements worth over CNY 2.6billion. Once in operation, these projects are expected to consume
486,000 tons of specialty steel materials.
Focusing on high-end new materialsEstablishing a “government + industrial park + leadingenterprise” model to attract businesses
Establishing a “government + industrial park + leadingenterprise” model to attract businesses
Hosting industry collaboration and targeted investment conferencesfor specialty steel and high-end metal materials industries
SUS430LX ultra-pure ferritic stainlesssteel possesses a domestic marketshare exceeding 80%. This producthas been certied and suppliedin bulk to leading domestic andinternational home appliance brands,laying a solid foundation for Chinesehome appliance products to expandinto global high-end markets.
Thin, high-efciency, high-strength,non-oriented silicon steel featuressuperior magnetic and mechanicalproperties. This product meetsinternational advanced standards andhas been widely adopted in the motorplatforms of renowned global anddomestic automotive manufacturers,providing essential materials for high-end manufacturing.
Hand-torn steel breaks foreignmonopolies. This steel achieves massproduction at an extreme specicationof 0.015×600mm. It surpassesindustry standards in specication,performance, delivery cycle, and coilweight, serving as a critical materialfor high-end manufacturing.The Company has implemented the 2024 Action Plan for the Specialty Steel Industry in Shanxi Province and followed the development logicof “strengthening key players, extending the supply chain, fostering industrial clusters, and solidifying the foundation.” The Company exploresnew pathways for coordinated innovation and supply chain integration in clustered industrial parks by focusing on product and technologydevelopment, new application scenarios, innovative resource allocation, industrial chain extension, and full lifecycle services. This approachensures that every enterprise in the industrial chain becomes both a value creator and a beneciary. The Company has been recognized as anoutstanding leading enterprise in Shanxi province’s key industries for 2023.
In 2024
CSRSpotlights
Building a High-Quality Specialty Steel Industry Ecosystem
As the backbone of an industrial chain, the chain leader drives technological innovation and transformation, graspsmarket trends, and sets development direction. As the dual leader of the specialty steel industry in Shanxi Provinceand the high-end metal materials industry in Taiyuan City, we give full play to our comprehensive resources andleadership. Guided by our plans, we adopt a project-based approach and attract investments to strengthen our industryfundamentals. Together with upstream and downstream partners, we channel resources into the specialty steel industry,aiming to build a world-class, domestically leading high-quality specialty steel ecosystem.
Industrial Synergy
Synergy
Synergy
SynergyPrecise layout of industrial chain development
Industry revenue increase attributed
to the Company’s efforts
Increase in local consumption of specialty steeldue to the coordination of provincial enterprises
New specialized and sophisticatedenterprises
New market entities New investment projects for
industrial chain implemented
Recognized as national “little giant”specialized and sophisticated SMEs35%
23%
Nearly
From 11% to
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.1920
Shanxi Taigang Stainless Steel Co., Ltd.
Building a SolidFoundation and FosteringGrowth Drivers
To improve the modern corporate system with Chinese characteristics, it is imperative to giveplay to the advantages of the socialist system with Chinese characteristics, strengthen theleadership of the CPC, and improve corporate governance. It is also imperative to promoteenterprises to establish and improve a modern corporate system, under which propertyownership as well as rights and obligations are clearly defined, and the functions of thegovernment and enterprises are separated. Such a system should be managed in a scienticmanner so as to foster more world-class enterprises.—Stressed by Chinese President Xi Jinping when he presided over the fth meeting of the
Central Commission for Deepening Overall Reform
National Call
Taigang Stainless integrates the Party leadership into every aspect of corporategovernance and strengthens the Board of Directors to create a modern corporategovernance system for SOEs with Chinese characteristics. By adhering to principlesof integrity and compliance, we have reinforced organizational structure and systems,streamlined operational mechanisms, and strengthened risk prevention. High-qualitygovernance drives the Company’s steady development in the long run.
Corporate Actions
Guided by the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,the guiding principles of the 20th CPC National Congress and the second and third plenarysessions of the 20th CPC Central Committee, as well as the important discourses anddirectives of the Chinese President Xi Jinping regarding the reform and development of state-owned enterprises (SOEs) and for Taigang, we radically implement the decisions and plansmade by Baowu and the Shanxi Provincial Party Committee and Provincial Government. Intandem with our Party members and cadre staff, we deeply implement the business principlesof “4 Operations” (high-end, intelligent, green, and efcient operations) and “4 Withs” (productionwith orders, output with margins, revenue with prots, prot with cash), and diligently promotecost-conscious management, product-oriented management, integrated collaboration, andlean operations. As a result, we have made new progress in Party’s construction and allundertakings, and are moving toward stable and positive high-quality development.
At STTS, the “rst agenda” system at Party Committee Meetings and the learning system ledby the Party Committee’s theoretical study groups are in place to stay updated with and act onthe Chinese President Xi Jinping’s latest important speeches and directives. We have organized32 special study sessions on reform and deepening, sci-tech innovation, work safety, ecologicalcivilization, Party building, etc. Taking the important discourses and directives of ChinesePresident Xi Jinping to Baowu, especially to Taigang, as paramount political missions, we havemade the 4 major to-do lists and broken them down into 18 items and 66 specic tasks toensure effective execution.
Primary-levelParty building
The Company thoroughly implements the important thoughts of Chinese President Xi Jinpingon Party building, and conscientiously follows the Party’s organizational line for the new era.We have continuously amplied the political and organizational functions of primary-level Partyorganizations, and constantly improved the mechanisms for the management and impactmaximization of Party member education to propel the comprehensive improvements andexcellence of primary-level Party organizations.
Full and strict governance over the PartyTo 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 DisciplinaryActions of the Communist Party of China, ensuring that Party members and cadres fully understand and adhere to these standards. Throughwarning videos, typical cases, and visits to integrity education bases, Party members are encouraged to learn from past mistakes and remainvigilant. Those initiatives have strengthened their discipline awareness, fostering a new culture of integrity and responsibility. In 2024, 17 Partydiscipline cases were investigated and closed, with 12 individuals receiving disciplinary warnings within the Party and 5 individuals receivingserious warnings (one of whom received a serious warning with a two-year effect).
The Integrity Education
? Training sessions for Party member executives at the C-level and above and Party organization secretaries havebeen 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”.? All Party members have been organized to attend the “Joint Study Program for Central Enterprises’ Party Memberson 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 Guiding
Principles of the Third Plenary Session of the 20th CPC Central Committee” on the website for CPC Party members(www.12371.cn), achieving 100% training coverage.
In 2024
In 2024
The Party Day is conducted, with participants signing their names on banners
Strengtheningthe LeadingRole of PartyBuilding
Strengtheningtheoreticalguidance
Advanced central SOE primary-level Party organization
Excellent Taiyuan CityParty members
Excellent China BaowuParty members
Outstanding China BaowuParty affairs administrators
Advanced China Baowu primary-levelParty organizations
Outstanding Taiyuan CityParty affairs administrators
Advanced Taiyuan City primary-level Party organizations
22 1011
Warning education sessions
Issues reported frominspections
Party members covered
Complaints taken andaddressed
3,040
72,587
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.2324
IR management
In compliance with applicable laws, the Articles of Association, the Corporate InformationDisclosure Policy, and the Management System for Investor Relations, the Company hasdeveloped a 2024 investor relations (IR) communication plan to strengthen engagement withexisting and potential investors. This helps improve investors’ understanding of the Company,fully guarantees their right to know, standardizes IR management, and elevates corporategovernance and reputation.
ImprovingCorporateGovernance
Sound corporate governance is fundamental to sustainable development and strongerstakeholder collaboration. Taigang Stainless strictly adheres to the Company Law, the Codeof Corporate Governance for Listed Companies, the Basic Norms for the Internal Control ofEnterprises, and other relevant regulations and requirements for listed companies. To improvethe modern corporate system with Chinese characteristics, the Company puts in place agovernance framework featuring clear responsibilities, science-based standards, and efcientoperations, ensuring long-term stability and growth.
Governance structureTo adapt to the revised Company Law and enhance governance, we have overhauled the charters for TISCO and TISCO’s subsidiaries. Takingthis opportunity, we have implemented the TISCO Subsidiary Board Development and Operation Plan (Trial) to build Boards of Directors at alllevels and establish a “1+N” governance system. This ensures that the Board follows standards in effectively fullling its strategic, decision-making, and risk-prevention responsibilities.The Company has established the Shareholders’ Meeting, Board of Directors, Supervisory Board, and the Management. The Shareholders’Meeting is the highest decision-making body, while the Board of Directors is accountable to it. The Board oversees four specialized committees:
the Strategy, ESG, and Technological Innovation Committee, the Audit Committee, the Nomination Committee, and the Compensation andAssessment Committee. These committees report directly to the Board. The Supervisory Board, responsible for oversight, reports to theShareholders’ Meeting. The Board Secretary prepares shareholders’ and board meetings, manages documents and shareholders’ records, andhandles matters related information disclosure.The Board of Directors consists of 11 members: 7 directors and 4 independent directors. Independent directors, comprising one-third ofthe Board, do not engage in corporate management but ensure independent and effective operations of the Board. Board members bringdiverse expertise in corporate management, human resources, nance, investment, legal affairs, and sustainability. With their extensive industryexperience, they can provide professional suggestions for the corporate development and help guarantee the effective operations of the Board.According to the Board-approved incentive and performance assessment policy for the management members, the Company requires themanagement team to sign annual performance responsibility agreements that incorporate key indicators, including green development, intelligenttechnology, low-carbon transition, and total energy consumption. Performance assessments are weighted to reect the differences in executives’responsibilities.
The Strategy, ESG, andTechnological InnovationCommittee
The Audit CommitteeThe Nomination Committee
The Compensation andAssessment Committee
Supervisory BoardThe Shareholders’ Meeting
Board of Directors
The Management
In 2024
In 2024
Share of female executives on theManagement
Board meetings
Supervisory Board meetings Shareholders’ Meetings
Announcements issued
Periodic reportsissued
Jnterim reportsissued
Proposals reviewed andpassed
13.33
%
40+
Meetings of the Board’sspecialized committees
External supervisors
33.3
%
Share of female supervisors
33.3
%
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
2526
The Company discloses information in strict accordance with relevant laws andnormative documents. Based on lawful and compliant information disclosure, weexplore to expand information disclosure oriented towards investor needs and helpinginvestors make value judgments and investment decisions, enhancing the depth andbreadth of information disclosure. With growing investor attention to ESG topics, weregularly release reports to address the concerns and expectations of stakeholders. Toensure timely, accurate, complete, and legal information disclosure, we disseminate keyupdates on major projects, operations, energy conservation, environmental protection,and technological innovation through media platforms, including China SecuritiesJournal, Securities Times, Shanghai Securities News, Securities Daily, and CNINFO(http://www.cninfo.com.cn).
Information disclosure
Relying on the platforms such as the Shenzhen StockExchange Easy Interaction (SSEEI) platform, online receptiondays, earnings briefings, visiting research and visits, theCompany bridge efficient communication with investorsthrough direct communication and diverse interaction toengage extensively with investors on industry trends, corporategovernance, development strategies, sustainability, andbusiness operations. Such interactions better communicate theCompany’s values to investors and ensure that investors gaina deeper understanding of the Company’s investment value,enhancing the Company’s image in the capital market andincreasing investor recognition of the Company.
Investor engagement
Shareholders are Coming" activity of "Focus on high-qualitydevelopment, explore new quality productivity forces
DeepeningSOE reform
The Company implements the work ledger for the initiative to deepen SOE reform by integrating reformtasks into business management and annual priorities. In 2024, in the SASAC’s evaluation of SOE reformprojects, The Company was recognized as an outstanding “technology reform enterprise” among centralSOEs.
To enhance the internal control system, the Company analyzes internal control risks across development strategies, human resources, socialresponsibility, sales, procurement, and R&D. We incorporate risk and compliance management into the internal control process and system,translate external regulatory requirements into the Company’s internal policies to better the corporate internal management system. Additionally,accountability for business misconduct is embedded in internal management systems to strengthen restraints. In 2024, the company hascompleted 21 auditing projects, with 100% auditing issues corrected by due date.
Strengthenintegrity building
Standardized compliance management
Adhering to systematic, holistic and collaborative thinking, we introduce the full-cycle managementapproach into anti-corruption and continuously strengthen efforts to promote integrated “non-corruption in three aspects.”
Based on our experience of obtaining the British Standards Institution (BSI) domestic and international certications for comprehensive compliance,the Company continues to deepen compliance management, and fosters a culture of compliance, making it an intrinsic part of employee conduct.In 2024, taking advantage of the revised Company Law, we conducted a comprehensive review and revision of our corporate charter, developedcompliance manuals covering key areas such as safety, overseas operations, and anti-corruption, and enhanced our governance framework.
ERM
To strengthen enterprise risk management (ERM), Taigang Stainless reinforces the “three lines of defense.”The Company follows a process that includes identifying key risks, developing work plans, deployingcontrol measures, establishing major risk early warning indicators, and preparing quarterly reports to trackimplementation. In 2024, in terms of six level 1 categories—strategic, nancial, market, operational, legal,and other risks—along with level 2 risks associated with macroeconomic situations, reform and businesstransformation, and technological innovation, We provide precise evidence for subsequent adjustments torisk prevention strategies by quarterly tracking the monitoring of risk indicators and analyzing the causesof data uctuations, and build a more efcient and exible risk response mechanism, ensuring overall riskswere under control.
First line of defenseSecond line of defenseThird line of defense
Play a regulatory and supportingrole, dene boundaries and rules,and improve departmental functionmanagement policies, internal control,compliance, audit, and oversight for riskprevention in all aspects
Provide independent oversight,prioritize risk and complianceassessments in audits and inspections,and gather supervisory strengths toraise supervision efciency
Conducting the 2024key risk identicationsurveys and identifyingannual key risks basedon weighted scoring
Developing targetedcontrol measures formajor risksEstablishing theCompany’s annualERM working plan
Dening majorrisk indicators andimproving the red-orange-yellow-greenearly warning system
Compiling quarterlyERM briengs to trackrisk prevention andmitigation efforts
Following BusinessEthics and ComplianceRequirements
Taigang Stainless adheres to Chinese laws and regulations such asthe Law Against Unfair Competition, the Anti-monopoly Law, and theAnti-Money Laundering Law. We continue to strengthen our leadershipaccountability framework, law-based governance system, regulatoryframework, compliance management system, and operational structure,enhancing our compliance capabilities to ensure law-based decision-making and standardized management.
Faircompetition
Taigang Stainless operates with integrity in strict compliance with the Law Against Unfair Competition andother relevant Chinese laws and regulations to foster a fair business environment. In 2024, the Company didnot receive any penalties from domestic or international market regulators for unfair competition practices,nor were we involved in any unfair competition lawsuits, contributing to an orderly market environment.
The opening ceremony of the smart legalinformation system
Furthermore, the Company has upgraded the smart legal information system, which identies,analyzes, and evaluates legal and compliance risks online while standardizing, streamlining, anddigitalizing risk prevention. This upgrade signicantly improves our law-based governance andrisk management capabilities. To promote a compliance culture, we utilize annual meetings,corporate social media accounts, lectures, and primary-level activities delivered by courtpersonnel. All newly hired employees are required to sign a Compliance Commitment Letter,resulting in a substantial improvement in overall compliance awareness. During the reportingperiod, the Company achieved a 100% employee signing rate of the Compliance CommitmentLetter, with no major legal or compliance risk incidents.
Subsidiaries
Manage risks at the sourceand ensure compliance andeffective risk prevention
Functional departments
Inspection, audit, and disciplinesupervision departments
Key riskidentication
Work plandevelopment
Controlmeasuresdeployment
Earlywarningindicators
Quarterlyreporting
Integrity cultureeducational bases builtat the primary-level
In 2024
Inability to corruptReluctance to corrupt
We continuously increasepressure through severepunishment with focuses on keyindividuals and critical areas.
Centering on production andbusiness operations, we establish58 special supervisions and 33intelligent supervisions. We renethe “six-step” method for identifyingand controlling integrity risks.
Based on integrated online and ofine development, an online exhibitionhall is added to the Taigang Integrity Culture Education Base, encouragingnewly hired employees and newly promoted ofcials to visit the base. Weadvance the practices of “study, observation and discussion” to create aunique “business card” for family-supported integrity, and we establish a“1+1+N” governance integrity publicity mechanism.
Deterrence against corruption
16,700
Total visits to TaigangIntegrity CultureEducational Base
Anti-commercial bribery and anti-corruption training coverage forpersonnel with business disposal rights
%Newly identiedintegrity riskpoints
New or revisedsystems
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.2728
Pursuing Excellence andNurturing New QualityProductive Forces
Traditional manufacturing industries are the mainstay of China’s manufacturing industry andthe foundation of a modern industrial system. Promoting the transformation and upgrading oftraditional manufacturing industries is a strategic choice to proactively adapt to and lead thenew round of technological revolution and industrial transformation. The important initiativethat enhances the resilience and security level of the industrial chain and the supply chain is aninevitable requirement for advancing new industrialization and building a manufacturing majorcountry 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 TraditionalManufacturing Industries issued by the Ministry of Industry and Information Technology and seven
other departments
National Call
Committed to product and technological innovation, Taigang Stainless focuses on keynational projects, critical material supply, and bottlenecks in new equipment materials.We are dedicated to establishing a cradle for original stainless steel technology anddeveloping a portfolio of cutting-edge, proprietary products. These efforts aim toaddress the challenges in supplying new materials for China’s high-end manufacturingand contribute to Shanxi’s high-quality development.
Corporate Actions
GovernanceAs 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 byexternal innovation resources. Under centralized management and planning as well as tiered implementation, the Company adopts a process-driven management approach to ensure systematic, integrated, and efcient execution.Taigang Stainless implements the 2024 Technology Innovation Evaluation Plan, Enhanced Plan for “One Headquarters, Multiple Bases”Technology Innovation Management, Patent Management Measures, and Technical Secrets Management Measures. These policies aim toensure systematic and law-based technology innovation management and strengthen the Company’s overall innovation capacity and efciency.
Strategy
Under the 2024–2026 Strategic Plan, the Company is pushing forward with a global vision,breakthrough innovations, and highly efficient management. We have realized industry-leading technology innovation by developing premium products, shaping brand excellence,and pursuing outstanding performance. Our goal is to lead the market of global stainless steelproducts and technologies when we celebrate our centennial. Focusing on critical and frontiertechnologies, we have built strategic alliances and joint laboratories for technological innovationwith over 40 leading universities and research institutions at home and abroad. Through theinnovation consortium, we enhance collaborations with upstream and downstream partners todevelop new technologies and products, promoting industry development.
Impact, risk,and opportunitymanagement
As China prioritizes technological innovation with continuous policy support and the globaltechnology industry rapidly evolves, the Company faces signicant growth opportunities andmultiple challenges, including technological, market, and collaboration risks. Throughoutnew product development, we conduct contract reviews, technical evaluations, and designverifications based on systematic management protocols to effectively manage impact,identify and mitigate risks, and seize emerging market and technology opportunities. Thisensures product-market fit, reliable quality, accelerated commercialization, and strongercompetitiveness.
UpgradingInnovationManagement
Prioritizing the governance structure and institutional support for technological innovationmanagement, we rene our organizational structure and systems to ensure the efciency ofinnovation initiatives.
External innovation resources as a supplement
Driven by a strategy of technological innovation
Technology Innovation CommitteeDecision-making
? Central Sci-tech Innovation Management Department(Technical Center)? Functional Coordination Management Department? Technical Committee, Subsidiaries? Core Execution Body (Technical Center)? Specialized Execution Body (Functional Department)? On-site Execution Body (manufacturing units)
Subsidiaries
Subsidiaries
Our stainless steel products and technologies reach world-classquality levels, with other products and technologies meetinginternationally advanced standardsWe work to build a national base for high-end strategic materialR&D and manufacturing and make ourselves a key innovator inspecialty steel technologies and a cradle for original stainless steeltechnologiesWe aspire to build ourselves as the world’s most competitive high-tech enterprise with a complete stainless steel industry chain,with technology innovation as the primary driver of businessperformance and sustainable development, contributing to ChinaBaowu Group’s vision of becoming a world-class enterprise
Impact management
Before pilot production, the Companyconducts contract reviews thatintegrate technical and manufacturingconsiderations to align productdesign with market demand. Thishelps minimize post-launch negativefeedback and enable fast adjustmentsbased on user feedback to elevate ourbrand.
Risk managementThe Company assesses technology,market, and production risks duringnew product development. Technicalreviews are integrated early in thedesign phase to ensure feasibility,while initial pilot production validatesmanufacturing stability to reduce massproduction risks.
Opportunity managementGiven market demand and ourtechnological strengths, we developdifferentiated new products andparticipate in industry exchanges tostay informed of technology trends.The Company rapidly marketssuccessful new products to drive swiftgrowth in market share.
Technology innovation governance structure
Threestrategicgoals fortechnologyinnovation
Advisory
Management
Execution
Sci-tech Expert CommitteeBasic internal resourcesHuman resources + other resources
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
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Metrics andtargets
According to the 2023–2032 technology innovation plan and the 2024–2026 strategic plan,the Company has set goals to achieve global leadership in the quality of key stainless steelproducts and technologies and become a core material supplier that supports China’s high-tech industries, which points out the direction for and inject impetus into the Company’stechnological innovation.
To track progress and target accomplishment in technological innovation, the Company develops an annual technology innovation business planand implements a process control mechanism with key metrics monitored each month. This provides strong support for continuous improvementand innovation.
Technology innovation
targets
Key stainless steel amongthe top worldwide
New product varieties
R&D investment
Investment ratio of new processes and new products
Share of R&D personnelbillion
%
%CNY
300+
New products
4.11
4.1
20.34
Shanxi Provincial Science &Technology Awards
Metallurgical Science &Technology Awards
Baowu Major Awards
Specialized technologies forproduct categories200+
New and specialty products4+million tons
In 2024
SeekingInnovation-drivenDevelopment
Guided by an innovation-driven strategy, Taigang Stainless improves its systems andmechanisms while ramping up investments in R&D and product innovation. Employees areencouraged to innovate, which improves their innovation efciency and capability. Theseefforts enable the Company to move up the value chain and industrial chain, better adaptto market dynamics, and realize sustainable growth.
Innovationmanagement
Integrating technological and industrial innovation, we adopt a structured and law-basedapproach to advance sci-tech innovation, strengthen R&D platforms, refine incentivemanagement, and form teams of high-caliber and highly skilled individuals. Throughsystematic, standardized, and institutionalized management, our capability and efciencyof technological innovation have been improved, laying a solid foundation for high-qualitydevelopment and better competitiveness.
Recruitment andtraining of high-caliber talent
Talent drives technological innovation. Adhering to the principle of “more competent, moreopportunities,” the Company maintains a balanced approach to attracting, nurturing,utilizing, and retaining talent. We have implemented a value-driven major project contractingsystem, enabling researchers to form teams freely, choose research topics independently,and get rewarded based on contributions. Immediate and targeted incentives fuelinnovation, reinforcing both technological innovation and on-site technical support.
In 2024
Awarded
New product sales revenue
billionCNY
7.62
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.3334
Optimizing innovation systems
and mechanisms
Improving management overtechnological innovation
Strengthening R&DplatformsThe Company has issued and revised policiessuch as the sci-tech incentive policy and theR&D Project and Expenditure ManagementMeasures to stimulate employees’ intrinsicmotivation and vitality for innovation. Thesemeasures enhance the efciency of researchproject management and optimize theutilization of funds.
Following a “one headquarters, multiplebases” sci-tech innovation managementmodel, the Company has refined theinnovation management processes. For keyR&D tasks, monthly priority work plans andprogress reports are issued, with quarterlyassessments on each unit to ensure asystematized and standardized innovationagenda. This approach maximizes theinnovation potential of each base, raisingoverall innovation capacity and efciency.
To pool stainless steel R&D resources,we improve our National CorporateTechnology Center and key facilitiessuch as the National Key Laboratory forAdvanced Stainless Steel, the NationalPhysical and Chemical Laboratory, and theNational Postdoctoral Research Center.The successful restructuring of the NationalKey Laboratory for Advanced StainlessSteel is also realized. All these efforts haveimproved research quality and productivity.
IPRprotection
As an outstanding intellectual property right(IPR) holder in China, we follow national strategiesand industry trends and venture into key and emerging technologies. We enforce rigorous PatentManagement Regulations and Technical Secret Management Regulations. These measuresleverage the value of patents and technical secrets in the protection of knowledge assets, stimulateinnovation, and guarantee robust IP protection.In 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 patentsreceived recognition at the National Invention Exhibition, including four gold medals and six bronzemedals. The Company also designed and registered 22 trademarks for seven key product varieties,all approved by China National Intellectual Property Administration, providing strong support for newproduct development.
10658
Sci-tech talent teamHigh-skilled talent teamThe Company has built a high-caliber sci-tech team led by expertssuch as Wang Yide, an academician of the Chinese Academy ofEngineering, Li Jianmin, China Baowu’s Chief Scientist, and LiGuoping, a distinguished expert under China’s “Ten-ThousandTalents Plan.” The team includes one academician of the ChineseAcademy of Engineering, one China Baowu chief scientist, oneChina’s Baowu engineering scientist, three TISCO scientists, 14senior chief researchers, and 65 chief technology researchers.
We have established a high-skilled workforce,led by national master craftsmen Lvy Tao andNiu Guodong. The team includes 14 nationaltechnical experts, 67 national steel industryand Shanxi provincial technical experts, and 35chief technicians.
In 2024
AchievingExcellentQuality
Focusing on “full variety, full series, and full coverage” and “high-end, sophisticated productsand new areas,” Taigang Stainless implements an innovation-driven development strategyto move up the value chain and industrial chain. We aim to meet the needs of major nationalprojects and economic development in all aspects and make greater contributions to China’stechnological progress and industrial advancement.
Launching the world’s widest lanthanum-containing iron-chromium-aluminum sheetsIn February 2024, the Company successfully launchedthe world’s widest and heaviest lanthanum-containingiron-chromium-aluminum sheets, setting new globalbenchmarks in key component control and high-temperature performance. The sheets, widely used ascritical materials in industrial furnaces, food machinery,vehicles & transportation, home appliances, andenvironmental equipment, are recognized as one ofthe most durable and heat-resistant iron-chromium-aluminum materials, with promising market prospects.Before this product, the prevailing iron-chromium-aluminum sheets worldwide were 950 mm wide. Afteryears of R&D, we expanded the sheets to 1,300 mmwith a maximum coil weight of 18 tons, suitable forlarge-scale and continuous production. This milestoneboosted the global competitiveness of the Company'siron-chromium-aluminum products while stronglysupporting the high-quality development of equipmentmanufacturing in China.
Innovations inpremium products
The Company pushes forward the development of mission-driven materials and advances R&Dof new products. Multiple brand-new products in energy, transportation, aerospace, and othersectors have been developed, further expanding our product portfolio and lling the gap in theworld. This has boosted our market competitiveness at home and abroad. During the reportingperiod, we developed 106 new products, with a total output of 810,000 tons.
Stainless steel plates for nuclear power applications, 1,300MPa hot-formed wheel steel, high-grade magnetic yoke steelsheets for pumped-storage power stations, aerospace-gradehigh-chromium ultra-pure alloy base materials, and durablesteel for breaker cylinders in extremely cold environments.
Ultra-pure ferritic stainless steel for plate-n heat exchangers, high-efciency,high-strength quick self-bonding silicon steel, ultra-pure ferritic stainlesssteel for heat exchangers, steel for high-power locomotive axles of Fuxingtrains, pure iron for precision alloys for aerospace applications, high-strengthstainless steel cold-rolled products for rocket fuel casings (Baoxin).
Seven products launched globallyfor the rst time
Eight products launcheddomestically for the rst time
New patent applications
Total valid patents
Valid patents per CNY one million of revenues
Including, invention patents
Including, invention patentsAuthorized patentsInvention patents
%
1,335
0.013
1,000
85.24
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
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New precision strip steel used for high-end semiconductor “core” components
In March 2024, in response to a tight supply of semiconductor lead frame materials, we assembled a cross-departmental researchteam to overcome key technical challenges, including alloy purity, thermal expansion coefcient, and surface quality control. As aresult, we developed 4J42K precision alloyed steel strips. After rounds of process improvements, we realized stable production totalingseveral dozen tons in small batches. Almost equivalent to imported counterparts, the strip steel met customers’ quality requirements.With a thickness range of 0.1-0.4 mm, the steel offers excellent magnetic, electrical, processing, and welding properties, making it anideal material for semiconductor lead frames. The breakthrough not only resolves quality and supply instability for domestic lead framematerials but also enables large-scale supply to industry leaders, reducing pressure on imports and enhancing the competitiveness ofChina’s semiconductor lead frame materials.
Qualitymanagement
Regarding quality as our lifeline, the Company remains committed to quality excellence byimplementing a rigorous quality management system. The Company strictly adheres tointernational standards and specic customer requirements throughout the production process,ensuring continuous improvement at every stage. At the same time, the Company obtainsauthoritative quality system and product certications and improve product quality and serviceto earn industry recognition and customer trust, laying a solid foundation for the Company’slong-term development.
4300 medium-thickness plate production line receives EU CE markingIn March 2024, the Company’s 4300 medium-thickness plate production line obtainedCE marking for 15 steel varieties, including PED certication for 13 stainless steel varietiesand CPR certication for 2 carbon steel varieties. As a key export product, stainless steelmedium-thickness plates feature high production capacity and superior quality. Throughintelligent upgrading and process optimization, the Company has strengthened processcontrol and ensured effective quality management, continuously improving product quality.Our products have wider and thicker specifications, high-end varieties, and excellentquality. The newly certied products under CE marking are widely used in industries withhigh safety requirements, such as machinery, chemicals, petroleum, and construction,offering domestic and international customers more reliable options. This certication alsoreinforces our market position and facilitates further global expansion.
In 2024
Successfully producing the heavy and wide N06625 nickel-based alloy hot-rolled coilIn December 2024, we trial-produced a wide N06625 nickel-based alloy hot-rolledcoil weighing over 14 tons, marking a major technological breakthrough in theglobal specialty alloy market. As a solid solution-strengthened nickel-based alloy,N06625 offers exceptional corrosion resistance, so it is widely used in high-endequipment manufacturing, petrochemical applications, and other industries. Ourattempt overcame key global challenges such as segregation during solidicationand narrow hot-working temperature ranges, making STSS now the thirdcompany worldwide—and the only one in China—capable of full-process, large-scale production of this wide alloy coil. This innovation not only enhances China’scompetitiveness in the high-end metal materials market but also provides globalcustomers with more diverse, high-quality, and efcient materials, driving industrialupgrading and economic growth.
Quality managementsystems revised
New qualitymanagement systems
Effective qualitymanagement systems
7532
Product percent of pass
%
99.68
QC team activities held
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
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ProductqualitytestingQualitysystemcertications
The Company adopts fully automated equipment to precisely test product composition and mechanical properties. Thesystem’s automated evaluation and real-time data transmission signicantly enhance testing efciency, objectivity, andaccuracy, providing customers with reliable quality assurance.To cement our quality management foundation and meet the stringent requirements of special industries, the Companyhas acquired key quality system certications, including ISO 9001, JIS, IATF 16949, TISI, SIRIM, GJB, PED, and CPR.These certications drive continuous improvements in our quality management.
Authoritativeproductcertications
In the eld of specialty steels, the Company has obtained multiple authoritative product certications, including shipuse certications from seven countries, technical assessments for pressure equipment materials, recyclable materialscertications, and the French GTT certication for LNG vessel materials.? The “Modeling Innovation and Application of Multi-Category High-Quality Integration Based on Quality Technology" project won the
second prize at the China Association for Quality’s Technical Quality Awards.? The Company’s austenitic stainless steel cold-rolled sheets and strips, ultra-pure ferritic stainless steel cold-rolled sheets and strips, andwelding gas cylinder steel strips were awarded the Metallurgical Product Physical Quality Gold Cup for outstanding quality.
Contribution to standard formulationThe Company leads and promotes the standardization of stainless steel and related materials to align with global standards. We have advancedthe 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 Specication for Cold-Rolled Alloy Structural Steel Plates forAerospace Applications, have been released, providing solid technical support for improving product quality and facilitating the industry upgrade.
Industry-academia-research collaborationwith Xi’an Jiaotong University
Taking the lead in building the Taiyuan Special Steel Materials Cluster by fully leveraging the leading roles of key enterprises. The cluster upstreamutilizes Taiyuan’s abundant iron ore and coking coal resources, while midstream companies serve as the core of a specialty steel manufacturingand deep processing base, effectively promoting a better allocation and use of resources. Downstream players supply high-quality specialty steelmaterials to equipment manufacturers such as Taiyuan Heavy Machinery Group Co., Ltd., Shanxi Yangmei Chemical Machinery (Group) Co., Ltd.,Taiyuan Boiler Group Co., Ltd., and Jinxi Axle Company Limited. The cluster drives product upgrade and sharpens market competitiveness, withits innovation capabilities ranking No.1 in all regions of Shanxi Province for many years, fostering strong industrial competitiveness overall.
Promote industrial clusters
We collaborate with domestic universities and research institutes and apply for national andShanxi provincial key R&D programs. We have submitted applications for 24 projects. In2024, we undertook six key R&D projects in Shanxi Province, including the “developmentand 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“open bidding for selecting the best candidates” projects, and provincial key R&D plans, allof which have passed nal assessments.
Advancing multi-party collaborative innovation
In 2024
SupportingIndustrialUpgrading
Leveraging our resources and expertise, Taigang Stainless promotes coordinated developmentbetween regions, and between upstream and downstream players. The Company deepensthe integration of industry, academia, and research, contributes to the formulation of industrystandards, and facilitates the effective sharing of knowledge, technology, and resources. Byfostering close cooperation across the supply chain, the Company supports the transformationand high-quality development of the stainless steel industry.Closer industrycollaboration
The Company has established in-depth exchange and collaboration mechanisms withgovernments, upstream and downstream enterprises, and research institutions. Throughstrategic technology innovation alliances, shared laboratories, R&D centers, and industry-academia-research cooperation bases, we gather industry expertise and resources to incubatenew technologies and products, injecting strong momentum into the industry’s prosperity andadvancement.
Upgrading of smartmanufacturing
As we advance smart manufacturing, we implement special projects to replace manual laborwith mechanization, reduce the workforce through automation, and achieve unmannedintelligent operations. By exploring AI-driven innovations, we have significantly improvedproduction quality and efciency while reducing operational costs, injecting strong momentuminto our digital transformation and sustainable development.
Urea feeding robot realizes intelligent SCR catalyst ow
AI-powered upgrading in steelmaking – new manufacturing execution system (MES) launched
In May 2024, after 398 days of development, the northern section of theCompany's No.2 steelmaking plant embraced smart transformation withthe ofcial launch of a new Manufacturing Execution System (MES). As theintelligent center for production management, the system integrates AI-drivenmodels to address operational bottlenecks through 26 targeted managementand business improvement measures, providing a solid foundation for leanoperations. The new MES system localizes metallurgical MES as a domesticsoftware substitute while fostering technological innovation and industrialupgrading. This smart transformation injects fresh momentum into the plant’sdevelopment and sets a benchmark for digital transformation in the industry.
Data value explorationSmart mining development
By leveraging existing resources, we innovate in value-addeddata applications, improve data quality, and optimize datamodels. This enables us to uncover data possibilities forimproving profitability, expanding markets, reducing costs,optimizing processes, enhancing quality, and ensuring stableequipment operations. In addition, we gather cases forinnovative data applications.
Leveraging the establishment of intelligent non-coal miningdemonstration projects at Yuanjiacun and Ekou Iron Mines inShanxi Province, the Company has promoted smart mining.By integrating digital technologies into mining operations, weenhance technical support and drive the efcient developmentof the mining sector.In 2024
Unmanned operation projectspromoted
We contributed to the formulation and release of following standards
Company-level technologyR&D projects set up
Digital control rate for keyprocesses
%
International standard
National standards
Industry standard
Group standards
85+
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
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Building a Beautiful ChinaThrough Green and Low-Carbon Development
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 technologicalinnovation, and enhance the internal driving force and innovative vitality for building a beautifulChina.—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
National Call
The Company proactively takes on the mission of environmental protection,continuously advances the initiatives to address climate change and protect theecological environment, and comprehensively improves its capabilities and standardsin green and low-carbon development. We strive to build a resource-conserving andenvironmentally friendly enterprise for high-quality development.
Corporate Actions
StrengtheningEnvironmentalManagement
The Company strictly implements environmental protection requirements. We improve ourenvironmental management system and ensure its effective operation. While comprehensivelystrengthening our environmental risk management, we clarify the primary responsibility forenvironmental protection to fully support the Company’s compliant and green production andoperations.
GovernanceThe Company has established a three-tier environmental protection management framework consisting of the Environmental ProtectionManagement Committee headed by the Chairman, the Department of Ecology and Environment (the Carbon Neutrality Office), and theenvironmental protection departments of subsidiaries. They supervise and manage waste gas, wastewater, solid waste, noise, as well as energyconservation and carbon reduction. To ensure effective management of environmental risks, we prepare a quarterly brieng on comprehensiverisk management, and report it to the Company’s Party Committee each quarter.We have formulated management regulations, such as the Energy and Environmental Protection Management Measures, the Provisions onthe Responsibility for Ecological Protection (Trial), the Accountability Management Measures for Environmental Protection Incidents, and theImplementation Plan for Differential Evaluation of Environmental Protection Management. Additionally, we continuously improve the Company’senvironmental protection through environmental management system certication.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 programsconcerning the certification for environmental management system internal auditor, hazardous waste pollution prevention and controltechnologies, management technologies for online monitoring facilities of pollution sources, soil and groundwater pollution prevention and control,as well as relevant environmental protection forums, with 670 participants trained, totaling 78 class hours.
Metrics and targetsBased on a problem-oriented approach, we sign the Energy Conservation, Carbon Reduction, and Environmental Protection Target ResponsibilityLetter with our subsidiaries at the beginning of each year. This document covers three binding targets, including the total emissions of sulfurdioxides, 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.
StrategyIn accordance with action plans such as the Energy Efciency Benchmarking Work Plan (2023-2025) and the Three-Year Action Plan for TacklingKey Challenges in Nuclear and Radiation Issues (2024-2026), the Company systematically identies and manages environmental risks concerningthe discharge of hazardous solid waste, noise pollution, radiation, soil and groundwater contamination, and pollutant discharge permits. We havealso formulated the Carbon Peaking and Carbon Reduction Action Plan, clarifying the “13473” green and low-carbon development mode andgoals. 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 strengthenenvironmental risk prevention and control and strictly manage all types of environmental risks. Based on ourregular environmental monitoring and evaluation system, we regularly monitor and prevent environmental risksthrough “specialized + on-site” inspections, supervision, guidance and other management models.The Company pays much attention to environmental risk management throughout the entire life cycle ofprojects. We require the environmental impact assessment at the feasibility study stage of new projectsthat shall only be launched with approval from relevant government authorities. We strictly follow 'ThreeSimultaneities' principle--simultaneous design, simultaneous construction, and simultaneous commissioning ofsafety facilities, occupational hazard control systems, and environmental protection installations with the mainproject--in project construction, and take ecological and environmental protection measures, maximizing theprevention and reduction of project-related environmental risks. To tackle sudden environmental incidents, wehave formulated emergency plans such as the Environmental Emergency Response Plan and the RadiationAccident Emergency Response Plan. Our regular emergency drills and timely improvement of environmentalrisk management measures also help effectively prevent and manage environmental accident risks.
Total investment in environmentalprotection projects
Total Investment in energy-efcienttechnology retrots455293CNYCNY
Environmentalprotection penalty
Emergency drillsorganized
The Company has enlistedA-level environmental performance for ultra-low emissions across the entire production process, with GradeA
performance in ultra-low emissions.
In 2024
IndicatorUnitTargets in 2024Progress in 2024Sulfur dioxide emissionst< 650628.87Nitrogen oxide emissionst< 3,0002,819.97Chemical oxygen demand (COD) emissionst8556.22Utilization rate of solid waste%
99.5 99.53
millionmillion
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
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The Company strictly complies with the regulatory requirements of “Cleaner Water into the Yellow River”set by Taiyuan City and ShanxiProvince. We have formulated the Management Measures for the Prevention and Control of Wastewater Emission Pollution accordingly.Through “precision water use control + specialized rectification of drainage,” we steadily improve the reuse efficiency of wastewatermembrane and the quality of water supply, enhancing the efficiency of water circulation. During the reporting period, the Companycompleted the comprehensive management project for desulfurization wastewater from the 2×300MW power generation units and fullyconnected the Phase VI pipeline of sewage inflow to the neutralization station. These measures have significantly improved the waterquality indicators of the entire industrial wastewater system and greatly reduced the operational load of subsequent advanced treatment ofmembrane units.
Comprehensive treatment project for desulfurization wastewater from 2×300MW power generation unitscommence operationThe Company has launched the comprehensive treatment project for desulfurization wastewater from 2×300MW power generationunits. Based on the technological route of “low-temperature triple-effect ash evaporation + bypass rotary spray drying,” the Companyboasts the wastewater treatment capacity of 25 tons per hour. In September 2024, the project was put into operation. Subsequently,the recovery rate of the low-temperature multi-effect ash evaporation concentration system exceeded 80%, and all the water qualitytest results met performance indicator requirements, with the recovered water quality being superior to that of industrial water. Throughsuch efforts, the Company has achieved zero wastewater discharge at the source of the desulfurization system for its 300MW powergeneration units, and promoted a synergy of pollution control and carbon reduction among its thermal power units.
The Company has formulated the Management Measures for the Prevention and Control of Waste Gas Emission Pollution, strictlycontrolling environmental risks of air pollution and enhancing Grade A performance in ultra-low emissions. We strengthen the managementof 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 organizedexcessive emissions and unorganized smoke emissions.In 2024, focusing on the emissions of air pollutants, the Company completed the desulfurization and denitrication retrotting project forcoke oven ue gas at the coking plant, as well as the low-carbon energy-saving comprehensive utilization retrotting project for the 300MWunit, etc. All the Company’s air pollutant emission indicators met the requirements of ultra-low emissions, with key processes achieving theemission level of advanced treatment.
Volatile organic compound (VOC)emissions
Ammonia nitrogen emissions
Particulate matter emissions1,959tons
Advanced treatment project of heating furnace ue gas from the 4300mm production line at theCompany's Hot Rolling PlantIn January 2024, the project wasofcially put into operation. As a typicalcase of “super ultra-low emissions” forheating furnace ue gas, it has achievedtargeted emission concentrations ofparticulate matters, sulfur dioxides, andnitrogen oxides at no more than 5, 15,and 100 milligrams/m
, respectively.After putting into operation, the projecthas significantly reduced pollutantemissions, with an annual reduction ofapproximately 10 tons of sulfur dioxideemissions and 20 tons of nitrogen oxideemissions.Advanced treatment project ofheating furnace ue gas from the4300mm production line at theCompany's Hot Rolling Plant
In 2024
Waste gas management
Drainage volume
22.48
million m
24.93
million m
6.31
million m
Volume of urban sewage and reclaimed water treated
Volume of wastewater discharge Volume of wastewater discharge per ton of steel
0.52
ton of water/ton of steel
Water reuse rate
99.02
%
In 2024
ImplementingGreenProduction
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 wellas the overall utilization of solid waste, continuously improving resource utilization efciency.We also accelerate the green and low-carbon transformation of production modes, driving adynamic synergy of pollution control and carbon reduction.
Reducing pollutionemissions
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.We strictly comply with permitted emissions specified in discharge permits to achieve theoverall control of pollutant emissions. Through measures like system establishment, processoptimization, and technological innovation, we enhance the management level ,achieve 100%standard discharge of three wastes, aiming to build a green steel plant in harmony with nature.In 2024, by actively participating in environmental rights trading including emission rights, theCompany sold 147 tons of particulate matters and 47 tons of nitrogen oxides reduced throughultra-low emission retrotting, with a trading revenue of approximately CNY 1.67 million.
Waste gas emissions288,485.89million m
1,482.88tons
1.33
tons
Atmospheric depositions inthe plant area
5.79
tons/km
/month
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.4546
Wastewater management
Sinter machine head dust collection and utilization project at the processing plant
Taigang Stainless launched the sinter machine head dust collection and utilization project at the processing plant, and put it into usein May 2024. After putting into operation, the dust from sinter machine heads were fully treated within the plant, reducing the riskof environmental disposal traceability. Moreover, iron-containing lter cakes generated were reusable for sintering, with potassiumchloride products sold externally for added value, maximizing the circular utilization of solid waste resources. The project savedexternal disposal fees of CNY 42.5 per ton and transportation fees of CNY 34.16 per ton, with an annual prot of about 2 millionyuan, achieving the goal of “no solid waste from the plant, and products as the only outputs generated.”
1.80
1.39
91.80
99.02
1.8191.84
Freshwater consumption per ton of steel (tons of water/steel)Wastewater reuse rate per ton of steel (%)
1.9384.95
20232023
20242024
2022202220212021
The Company actively builds zero-waste plants. We have released the Work Plan for Building a Zero-Waste Group, and the ManagementMeasures for General Industrial Solid Waste . We steadily maximize the reduction of solid waste at the source, minimize its disposal fromthe plant, standardize its collection and storage, optimize its utilization and discharge, promote the resource-to-product transformation,and enhance intelligent supervision and monitoring of solid waste, aiming to achieve the goal of “zero solid waste leaving the plant nosolid waste from the plant.” To reduce waste at the source, we take measures such as replacing sulfuric acid with hydrochloric acid foracid washing and reusing claried dilute acid water, and promote the reuse of iron-containing dust and sludge from water treatment inproduction. To better utilize solid waste resources, we have completed and put into use the sinter machine head dust collection andutilization project, effectively preventing environmental risks associated with solid waste.
Waste management
Resourcerecycling
The sustainable use of resources is crucial for environmental protection. The Company actively promotesthe recycling of water, energy, mineral resources and solid waste, strengthen resource conservation, andvigorously develop circular economy, effectively improving resource utilization efciency.
The Company’s water sources mainly include reclaimed water from urban sewage andnearby urban sewage treatment plants, tap water, and surface water from the Fen River.The Company upholds the principle of “sourcing water properly, using water as less aspossible, and achieving zero discharge,” and standardize the use and management ofwater resources. The Company also increases the use of unconventional water sourcessuch as municipal sewage and reclaimed water, improve the quality of membrane-based produced water, reduce water use at the source, adopt water-saving facilities andequipment in production, and implement water-saving measures. Those initiatives help usactively explore our water-saving potentials and promote water conservation throughoutproduction and other procedures. In 2024, the company has set a target of freshwaterconsumption per ton of steel of 1.78 tons of water/steel, and has consumed 1.39 tonsfreshwater of water/steel actually.The Company insists on independent innovation. For example, advanced water-savingtechnologies such as differentiated water supply, closed-loop circulation, evaporative aircooling, reverse osmosis membrane treatment, and advanced treatment of municipaldomestic wastewater, are applied across all procedures. The Company has successivelylaunched new-type wastewater treatment projects, including the rolling area wastewatertreatment system, the smelting wastewater treatment system, the membrane-basedwater treatment system, the domestic sewage treatment system, the reclaimed wateradvanced treatment system, and the rolling steel wastewater differentiated treatmentsystem, greatly improving water use efciency.
The Company works to establish an environmental protection intelligent management and control system, intensifying noise monitoring at keynoise source areas. The Company continuously improves our noise reduction measures to ensure a quiet plant. The Company also strengthensnoise control to prevent any disturbances to the public during special periods, including the national college entrance examination and the highschool entrance examination.
Noise management
The Company actively organizes specialized training sessions on radioactive sources and those from Class II radiation devices, radiationprotection instruments and meters. Through monthly inspections of hidden dangers, routine professional management, special inspectionsduring key time frames, as well as emergency drills for radioactive sources and radiation devices, the Company comprehensively enhances theessential safety of our radiation-related operations.
Radiation risk management
In 2024
The Company has formulated the Regulations for the StandardizedManagement of Hazardous Waste. To improve the harmless utilizationand disposal of hazardous waste, we adopt an integrated governanceand management model focusing on coordinated utilization anddisposal during the production (to control risks associated with off-site disposal), supplemented by entrusted qualied organizations fordisposal . We have also built facilities for the regeneration of wastehydrochloric acid and the treatment of alkaline oily wastewater,and ensure their efficient operation, strengthening the disposal ofhazardous waste. Our hazardous waste management informationsystem regulates the treatment of hazardous waste and itscompliance with external disposal, ensuring that our hazardous wastemanagement meets relevant national requirements. In 2024, theCompany engaged a third party to track and manage the risk controlof entrusted utilization and disposal of solid waste, and organizedspecialized training sessions on hazardous waste pollution preventionand control technologies, essentially bringing risks associated withhazardous waste under control.
On December 2, 2024, the unveiling ceremony of the NorthChina region of China Baowu Hazardous Waste Utilizationand Disposal Center was held in Taigang Slag Field
General industrial solid wastegenerated
7.17
million tons
Hazardous waste generated
0.69
million tons
Used and treated independently
0.55
million tons
Treated by entrusted qualiedexternal units
0.14
million tons
Safe disposal rate ofhazardous waste
%
7.13
million tonsUsed
0.68
tons/ton steelGeneral industrial solid waste productionstrength is not higher than
The Company's water-saving experience wasincluded in typical cases of water-savingindustrial enterprises in the high-qualitydevelopment of the Yellow River Basinreleased by the Yellow River ConservancyCommission of the Ministry of WaterResources.
Water resource management
Circulating water1,694.68million tons
In 2024
Fresh water consumption
16.79
million tons
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.4748
The Company is one of the pioneers implementing energy system management in China’s steel industry. The Company has establisheda complete set of Integrated System Management Manual, the Energy Management Measures, the Measures for Energy Metering andManagement, and the Job Descriptions. The Company guides each position to carry out energy management in accordance with strictstandards and continue to improve and enhance our management through the PDCA (Plan-Do-Check-Act) cycle, systematically reducingenergy consumption.The Company sets energy consumption targets at the beginning of each year, and successively breaks them down to various departmentsand units for effective implementation. We annually organize an internal audit of the energy system and an external audit to examinethe operation of the system and identify issues within the energy system, and continuously address these issues through recticationactions. In 2024, the Company revised and issued the Management Measures for Energy Reviews, the Measures for Energy ManagementEvaluation, and the Specications for Energy Management Evaluation, encouraging our subsidiaries to strengthen energy managementand the research and application of energy-saving process technologies based on monthly performance reports and quarterly evaluations,maximizing energy efciency.
Energy Utilization
IndicatorUnitTargets in 2024Progress in 2024Comprehensive energy consumption per ton of steelkgce/tNo more than 528
525.01
Residual energy and waste heat recovery per ton of steelkgce/tNo less than 104
110.5
IndicatorUnitTargets in 2024Progress in 2024
Recycled steel scrap 10,000 tons115
Taiyuan Stainless Steel won the “Advanced Enterprise in the Three-Year Action Plan for Energy
Efciency Benchmarking under the Steel Ultimate Energy Efciency Project in 2024” and the “Best
Practice for Dual Carbon, Energy Efciency Benchmarking Demonstration Process/Equipment” by
China Iron and Steel Association.
The Company attaches great importance to the comprehensive utilization of solid waste. Focusing on industrial solid waste such as blastfurnace slag, steel slag, and y ash, we efciently operate facilities for ultra-ne powder production from blast furnace slag and resourceutilization of steel slag, aerated concrete production lines using y ash, and standard brick production lines, and produce green products,providing green building materials for urban construction.
Circular economy
In 2024
Through environmental impact assessmentduring the stage of project feasibility study,we systematically analyze the impact ofprojects on the ecological environmentand argue the technical feasibility ofenvironmental protection measures.Construction can commence only after theassessment is approved by relevant gove.
We strictly enforce on-site environmental protection and conduct responsibleconstruction management. We increase the frequency of inspections andthe intensity of assessments at construction sites, and strengthen themanagement of processes such as earthwork operations, demolition,concrete construction, slag transportation, and material transport to minimizethe Company’s environmental impact. In 2024, the Company conducted 47inspections for environmentally friendly and responsible construction, and noenvironmental incidents occurred in the construction eld.
We strictly monitor and manage the emissions of exhaust gases,wastewater, and waste materials, and organize regular inspectionson hidden dangers in soil and groundwater to avoid negative impactson the natural ecological environment. Based on supporting sewagetreatment facilities, we collect and re-treat domestic sewage fromsurrounding residents and industrial wastewater. The reclaimed water isused both as supplementary water for the Company’s production andas water for urban landscaping, protecting the Fen River water system.
Based on geographical locations, seasonalcharacteristics, and climatic features of the plantarea, we grow green plants accordingly andimprove the environmental quality, aiming to build agarden-style plant . In 2024, the Company planted1,604 trees and 1,598 shrubs, with an investmentof CNY 34.17 million,with a greening coverage rateof 35.15%.
Biodiversityprotection
Iron and steel companies mainly put pressure on biodiversity through greenhouse gas emissions,pollution and waste emissions, water use, land use and other factors. The company attaches greatimportance to the protection of local biodiversity in the whole process of project site selection,construction, production and operation, and takes necessary measures to reduce the impact onbiodiversity as much as possible.Site selectionConstruction
ProductionOperations
No.9 coke oven riser gas waste heat recovery and utilization project at the Company's Coking PlantIn line with the national strategy of “developing a circular economy and promoting energy conservation and emission reduction” andthe energy-saving technology promotion requirements of the Baowu Group, the Company launched the No.9 coke oven riser gaswaste heat recovery and utilization project at the coking plant. Waste heat from the riser gas was collected via heat exchanges toproduce steam, achieving the goals of energy conservation, carbon sequestration and emission reduction. In July 2014, the projectwas put into use. After operation, the hourly steam recovery rate reached approximately 11.3 tons of steam per hour, with an annualsaving of 9,599.96 tons of standard coal.
In 2024
Total energy consumption
6.91
million tons of standard coal
Energy consumption per CNY ten thousand of output value
0.83
tce/ ten thousand yuan
Green electricity used byphotovoltaic power generation andgreen electricity purchaseIncluding, Direct energy consumption
6.87
million tce
274.07
GWh
Indirect energy consumption
0.43
million tce
General industrial solid waste comprehensive utilization rate
99.53
%
Return-to-production utilization rate
24.24
%
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
4950
Making Greena DeningFeature
With a focus on our main business market, we improve our supply system for green stainlesssteel products throughout the entire chain ranging from basic raw materials to end consumergoods. We work to expand the supply of green and low-carbon products, and acceleratethe development of green and low-carbon transportation and packaging methods. A carbonemission data chain for stainless steel products has taken shape, ranging from raw materialproduction to steel product shipment. It will help reduce the environmental impact of productsthroughout their entire life cycle.Eco-friendlyproducts
The Company id driving product iteration and upgrading by prioritizing green and low-carbonfeatures, such as “corrosion resistance, energy saving, high strength, lightweight, and longservice life.” We vigorously develop high value-added, high-tech, and eco-friendly stainless steelproducts, and conduct a life cycle assessment (LCA) of these products to track their carbonfootprints, facilitating the green and low-carbon development of steel-using industries and theentire society. In 2024, the Company became the rst in the world to pass the SCS recycledcontent certication for its stainless steel precision strip, with the highest 98% recycled content,demonstrating our leading circular utilization of green products.
Launch event of low-carbon stainless steel products
By the end of 2024
Steel productEPDs
Low-carbon productsdeveloped and tested
Environmental product declaration (EPD) is an internationally recognized tool forquantifying the environmental impacts of a product throughout its entire life cycle.The release of the document not only enhances the market competitiveness ofproducts but also provides reference for downstream customers when selectinggreen materials. In 2024, Taigang Stainless Steel released EPDs for four categoriesof cold-rolled steel sheets (316L, SUH409L, PTG316L, 430LX). We plan to widelyapply relevant products in sectors such as construction, automotive, machinery,home appliances, petrochemicals, transportation, and warehousing.
Releasing EPD
In 2024
Greenpackaging
The Company precisely identifies customer needs and logically selects packaging methods.weattempt to reduce the use of packaging materials based on simplied packaging solutions and theirconsumption by replacing elaborate packaging with simplified or lightweight packaging. The WireProducts 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 andbenchmarking analysis on packaging. Through measures such as thinning inner and outer protectivepanels, narrowing outer protective rings, and reusing packaging materials, the Company has reducedthe consumption of packaging materials, successfully minimizing resource and energy consumption.Greenlogistics
The Company continuously improves clean transportation, accelerates the adjustment oftransportation structures, and promotes new energy transportation methods. High-emission transportvehicles are phased out, achieving a higher level of clean transportation. We have also launched adigital logistics system, which reduces cross-transportation based on its automatic design of optimallogistics routes. This system lowers logistics costs and effectively improves production efciency whilereducing energy consumption during the transportation.
Optimizing road transportPromoting clean transportPrioritizing rail transportWe take rail transport for allraw materials and productsthat can be transported byrail as much as possible.
We ensure that 50% of the
existing transport vehicles shall
be electric vehicles and others
shall comply with the National
VI emission standards.
We develop and implementelectric heavy-duty trucktransportation plans for supernepowders and steel products.
Advocate forgreen ofce
Upholding the concept of “green ofce and low-carbon lifestyle,” we encourage employees toadopt a simple, moderate, green, and low-carbon lifestyle and work style. We set the summerair conditioning temperature no lower than 26 degrees Celsius, use energy-saving lightingand recycle water in office areas. Other measures include paperless office practices, videoconferences, double-sided use of paper, and scientic classication of ofce waste, and a low-carbon application. Our goal is to reduce the consumption of ofce resources and implementgreen ofce practices.
Green products owned
Steel scrap used in electric arc furnace toadvance ultra-low carbon process
%
Hot-rolled carbon steel coils are enlisted asone of the rst batch of eight major low-carbon emission steel products released
by China Iron and Steel Association(CISA)
Clean transport ratio
Comprehensive energy consumption of locomotives
Utilization rate of hybridlocomotives
80.2
210.81
%
tons/10,000 ton-kilometers
%
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
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The Company actively promotes the developmentof low-carbon products. In 2024, we released threerepresentative low-carbon products: austenitic cold-rolled stainless steel strip/stainless steel precision strip(SUS304/304, SUS316L/316L) and ferritic cold-rolledstainless steel strip (SUS430LX). These productsare widely used in national economic sectors,including electronic information and home appliancemanufacturing. According to the on-site verication byT?V S?D, the carbon footprint of these low-carbonproducts was reduced by over 60% compared withconventional processes, creating a green and efcientvalue point for stainless steel products.
Developing low-carbon steel
Tackling ClimateChange
As global climate change intensies, the steel industry faces unprecedented challenges andpressures. The Company fully recognizes the potential impacts of climate change on itsoperations and actively explores effective pathways to achieve carbon peaking and carbonneutrality goals. The Company strategically strengthens climate-related risk management andtakes measures to reduce its carbon emissions and minimize the environmental impact of itsoperations.Climategovernance
We set forth a comprehensive and responsibility-specific climate governance framework toensure the effectiveness of climate change risk management initiatives. To enhance our climategovernance capabilities, we have incorporated climate-related impacts, risks, and opportunitiesinto our strategic practices, major transaction decisions and risk management.
The Company strictly observes the requirements of the Ministry of Ecology and Environment and other departments for submittingprofessional environmental protection and low-carbon reports, data, and other relevant information. In terms of environmental control, theCompany submits quarterly and annual reports on the implementation of pollution discharge permits through the National Pollution DischargePermit Management Information Platform. We also submit quarterly and annual environmental statistics through the Ecological EnvironmentStatistics Business System of the Ministry of Ecology and Environment. Based on our environmental incident information reportingmechanism, we immediately report to local departments of ecology and environment by phone in the event of environmental emergency. Asfor low-carbon control, the Company's coal-red power generation units engage in the carbon emission information reporting for the powergeneration industry by submitting monthly reports through the National Carbon Market Management Platform. As a steel enterprise, theCompany also submits its annual report through the platform.In 2024, the Company organized training courses on tackling climate change, including topics on energy metering review standards for keyenergy-consuming units, carbon emission data quality management, and the inclusion of the steel industry in the unied national carbonmarket, enhancing our capacity to manage climate change.
The management team reviewsthe annual green and low-carbonbudget, engages in due diligenceduring acquisitions and divestitures,and advises on issues, such asenvironmental protection, low-carbondevelopment and climate change. Theteam also deliberates on major climatepolicies or special reports on investmentprojects associated with the Company’soperations. Climate-related risksand opportunities are assessed andmanaged in line with relevant climatepolicies and regulatory requirements.The team also guides and advances theCompany’s low-carbon work through atop-level design, so as to mitigate risksand seize development opportunities.
The Carbon Neutrality Ofceoversees various greenand low-carbon tasks,such as timely revision ofplans, implementation ofcarbon peaking and carbonreduction action plans, tightermanagement of carbonemission data statistics andaccounting, carbon assetmanagement and trading,carbon footprint evaluationand EPD publication of keyproducts, and carbon emissionreduction, ensuring theprogress of plans and budgettargets.
The Environmental Protection Management Committeeis composed of the CEO (serving as the director), thegeneral manager (serving as the rst deputy director), theCompany’s leaders in charge of energy, environmentalprotection, and low-carbon work (serving as the executivedeputy director), and other relevant leaders of the Companyand the chief responsible person of each departmentand unit. The Environmental Protection ManagementCommittee is responsible for comprehensively advancinggovernment initiatives at all levels, including advancedpollution control, the vision of “Cleaner Water into the YellowRiver,” ensuring the ow of clear water into the YellowRiver,” zero-waste group, energy conservatiervation andcarbon reduction, as well as climate risk and opportunitymanagement. According to work needs and the divisionof professional responsibilities, several sub-committeeshave been established, with their heads appointed from theCompany’s divisional leaders.
Climate strategiesTo address medium- and long-term climate change risks, the Company has formulated the Carbon Peaking and Carbon Reduction Action Plan,proposing the “13473” green and low-carbon development model (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), 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.”To manage climate change impacts, risks, and opportunities, the Company accelerates the development and promotion of green and low-carbonproducts, and continuously optimizes its product structure to enhance market competitiveness and low-carbon premium capability. Additionally,the Company actively conforms to national policies on green transformation, and completes ultra-low emission retrofitting and advancedtreatment of air pollution. These efforts not only generate positive social and environmental benets, but also create favorable conditions for ourstable operations, enhancing our resilience.
The Management TeamThe Environmental ProtectionManagement Committee
The CarbonNeutrality Ofce
以“提高碳生产率”为中心的低碳发展体系
Maximizing
energyefciency
Revolutionizingtechniques and
technologies
Optimizingstructuralprocesses
Integratingintelligent controlsystems
Buildinggreen supplynetworks
Exploringadvancedmaterials
Deepeningintegration withcities
The “13473” green and low-carbon development model
To become a global leader inlow-carbon development in thestainless steel industry
Five-year steadfast
action(2021–2025)Carbon emissionspeaking
Steadyreduction
Furtherreduction
Carbon neutrality
One coreThree stages
Seven pathways
Four steps
Three platforms
A low-carbon development framework centered on enhancing carbon productivity
Ten-year vision(2026–2035)
15-year long-termoutlook(2036–2050)
Digital carbon information
management platform
Full lifecycle assessmentplatform
Online carbon emissionsmonitoring platform
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Governance structure
Governance mechanism
Management of climate change risksThe 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 investmentbudget. We also track domestic and international low-carbon policies, and interpret climate policies quarterly through the Environmental ProtectionCommittee. Furthermore, relevant countermeasures will be developed based on our regular risk identication and assessment.The Department of Environmental Protection (the Carbon Neutrality Ofce) has designated specialty-based management personnel to superviseand manage the Company’s air emissions, wastewater, solid waste, noise, as well as energy conservation and carbon reduction initiatives. TheCompany 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 andLow-Carbon Energy.
CategoryRisks/OpportunitiesTime FrameScope of Impact Countermeasures
Physical risks
Acute risk
Severe events related to climate change, such as typhoons and oods, can lead toextreme weather conditions or natural disasters, which may affect the Company’sproduct transportation, goods supply, and the Company’s operations, resulting ina decrease in operating revenue.
Short term
The Company, major suppliers,and other stakeholders
Emergency response plans for extreme weather conditions are established along with practical drills, ensuring theimprovement of employees’ capabilities in response to disasters or emergencies.Flood and disaster prevention materials for extreme weather events are prepared, ensuring the Company’s routine productionand operations.Chronic risk
Long-term changes in nature, such as rising sea levels and sustained hightemperatures, may cause adverse effects on the Company’s normal production,resulting in a decrease in the operating revenue.
Long term
The Company, major suppliers,
and other stakeholders
Transition risks
Policy risk
Inadequate implementation of environmental protection policies or insufcienttracking of downstream customers will result in environmental risks.The European Union’s Carbon Border Adjustment Mechanism (CBAM) and theexpansion of the national carbon market adds pressures on the Company’s carbonemission management and raises compliance costs.
Medium and long term
The Company, major suppliers,and other stakeholders
We stay informed of environmental regulations, and have established environmental information systems to enhance supervisionand manage environmental risks.A CBAM calculation module is developed to calculate relevant CBAM report data for products according to CBAM calculationrules, and analyze and improve factors with a signicant impact on the report data.Technology risk
Failure to upgrade outdated equipment and technology in a timely mannercould result in falling behind in production efciency, product quality and pricecompetitiveness compared to industry peers, which in turn, can reduce productsales revenue and expose the Company to the risk of being phased out.
Medium and long termThe Company
Organize the elimination and upgrading of key energy-using products and equipment in an orderly manner, and developand apply a number of new processes, technologies, and achievements in the energy conservation and low carbon eld,including low-carbonization, carbon dioxide capture, and energy resource reusing.
Market risk
The increasingly strict environmental information disclosure for the Company’sproducts and those in the upstream and downstream of the supply chain addspressure on the Company’s carbon emission management and raises compliancecosts.
Medium and long term
The Company, major suppliers,and other stakeholders
A full-process online carbon management platform has been established to expand comprehensive service functionsincluding carbon data management, carbon footprint management, carbon emission control management, carbon assetmanagement, carbon information management, and carbon inclusion, achieving the tracking and tracing of carbon emissiondata for steel products.
Opportunities
Policyopportunity
Advancing the construction of green electricity projects like self-built photovoltaicsystems and relevant purchasing is benecial to fullling increasingly strict carbonemission management requirements and lowering compliance costs.
Medium and long term
The Company, major suppliers,and other stakeholders
The complementary use of multiple energy sources is promoted through the pathways of introducing and independentlydeveloping green energy to replace high-emission energy sources.Technologyopportunity
Optimized processes increase the use proportion of steel scrap and enhanceenergy utilization efciency, achieving cost reduction and efciency improvementwhile reducing carbon emissions.
Medium and long termThe Company
The production structure is adjusted to increase the use proportion of steel scrap; and a series of energy-saving projectshave been launched, including the recovery and utilization of waste heat from No.9 coke oven riser pipes, sinter dustcollection and frequency conversion retrot of cooling ring system.
Marketopportunity
Differentiated competition in product lines enhances the R&D, production, andmarketing capabilities for low-carbon products, which in turn, adds the value oflow-carbon products and increases product sales and operating income.
Medium and long term
The Company, major suppliers,and other stakeholders
Vigorous efforts have been made to develop highly value added, technological and environmentally friendly stainless steelproducts.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.
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Metrics and targets
Risk management process
We implementassessments and surveysof major risks, identify keyrisks for the year usingweighted scoring, anddetermine early warningindicators for major risks.
Risk identication
We improve the four-color (red,orange, yellow and green) earlywarning mechanism for major risks.We make annual risk preventionand resolution efforts, and managemajor risks, focusing on theCompany’s comprehensive riskmanagement work plan.
Risk management
We monitor carbon emissions and management throughonline monitoring, video surveillance, manual monitoring,and on-site inspections, and analyze potential risks.We also regularly track and analyze the progress of riskmanagement, major risk prevention and control measures,and disposal of occurred risk events. Meanwhile, wecompile a quarterly comprehensive risk management workbrieng to ensure the overall control of risk management.
Risk monitoring
In 2024
IndicatorUnit202220232024Total Ggreenhouse gas emissions (Scope 1 +
Scope 2)
10,000 tons of CO
e2,160.12,180.12,114.51GHG emissions (Scope 1)10,000 tons of CO
e2,1542,160.12,114.51GHG emissions (Scope 2)10,000 tons of CO
e6.120.0
IndicatorUnitTargets in 2024Progress in 2024
Greenhouse gas emission intensity
Tons of carbon dioxide equivalent
per ton of crude steel
No more than 1.79
1.78
The Company has formulated the Carbon Peaking and Carbon Reduction Action Plan, clarifying its medium- and long-term goals, anddecompose to form an annual emission reduction target..In 2024, we continued our energy-saving project retrofits, further enhancing thecomprehensive utilization of residual heat and energy resources, and contributing to tackling climate change.Greenhouse gas(GHG) emitted by the Company mainly come from production facilities such as coke ovens, blast furnaces, converters, electricarc furnaces, and power generation units, covering combustion, electricity, heating, cooling, and steam. The primary scope of impact is Taiyuan,Shanxi Province, where the Company locates. Since the 2×300MW power generation units were included in the national carbon trading marketfor the power generation industry in 2019, the Company has completed fulfillment and trading at three compliance periods, with all quotasettlements and compliance fulllment on schedule.
Scope 1 greenhouse gas emission reduction
0.16
million tons
Scope 2 greenhouse gas emission reduction
0.01
million tons
Note: The GHG emission data is calculated in accordance with the requirements of the Technical Guidelines for Verication of Corporate Greenhouse Gas Emissions: Steel Industry.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.
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Striving for Win-WinProgress TowardSocial Harmony
Acting on the people-centered development philosophy, we will fulfill our responsibilities tomeet people’s basic needs and provide a cushion for those most in need and take more stepsto deliver real benets to the people to their satisfaction. We will make solid progress towardprosperity for all and promote social harmony and stability. By doing so, we will give our peoplea growing sense of fulllment, happiness, and security.
—Excerpt from the 2024 Report on the Work of the Government
National Call
Taigang Stainless continuously improves its after-sales service system and supplychain 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 acooperative network based on shared value and mutual benets. Our shared explorationand pursuit of sustainable development will contribute to a more harmonious andprosperous society.
Corporate Actions
Protectingcustomerrights
Upholding the business philosophy of “satisfying consumers with high-quality products”, the Companyalways puts the rights of customers at the forefront. To boost customer satisfaction, we continuouslyimprove our product quality and customer services, develop policies to protect customer privacy, andoptimize the customer complaint handling process to efciently address customer concerns. Togetherwith other parties, we crack down on illegal activities that disrupt market order and infringe on thelegitimate rights of the Company and customers. By joining hands with customers, we strive to establishand maintain our brand image, and contribute our share to high-quality development.
Offering technical services to end-users on site
Taigang Stainless awarded the title of “Best Strategic Supplier” by Dongfang Electric MachineryIn September 2024, Taigang Stainless was honored with the title of “Best Strategic Supplier” at the supply chain conference ofthe Dongfang Electric Machinery, a subsidiary of the Dongfang Electric Corporation (DEC), becoming the only steel manufactureramong nearly a thousand material suppliers to receive this honor. During the long-term cooperation, we have satised the stringentrequirements of the company for high-end steel products with technological innovation and product upgrades. We not only supportedthe construction of national high-quality projects such as Baihetan, Panlong, and Changlongshan, but also driven continuous businessgrowth of both parties through mutually benecial models. Moreover, we will continue to improve our product and service quality tocontribute to the localization of high-end equipment manufacturing together with Dongfang Electric Machinery.
Taigang Stainless recognized as a “Core Business Partner” by Zoppas Industries China
In 2024, with unparalleled product performance, stable quality and premium customer service, Taigang Stainless nally stood outand was recognized as the “2024 Core Business Partner” by Zoppas Industries China, the world’s largest manufacturer of heatingelements. This title is not only a recognition of our excellent product performance and stable quality, but also an afrmation of our long-lasting commitment to technological innovation and customer services. We will continue our close partnership with Zoppas IndustriesChina to drive technological progress and industrial upgrading of the sector.
Channel optimization and efcient response
All-round services
Differentiated on-demand services
Expansion into international markets
We have built a direct supply model to focuses on keycustomer groups, converting unmet needs into directsupply increment and value enhancement. Meanwhile,our real-time information collection, rapid order response,and comprehensive user services, form an ever-improvingclosed-loop management system that constantly improvesour service efciency and quality.
Focusing on customer needs, we have established a “dualmanager” mechanism to provide users with all-roundservices. The mechanism is led by professional marketingmanagers and supported by technical marketing managersof nished products plants. To meet the differentiated andpersonalized demands of users, we offer services in linewith the principles of “one policy for one customer” and “onestandard for one customer”, thus continuously elevating ourcustomer satisfaction.
We have stepped up efforts to build a stronger productmanagement team. Focusing on factors that affectcustomer experience and loyalty, we have established aplant management team to efciently connect with markets.Meanwhile, our intensified development of differentiatedproducts ensures more diversified and higher value-addedproduct choices so that we can navigate the specic needsof different customers and boost our market competitiveness.
We vigorously improve our international market channelsand increase our export market shares. In particular, theoverseas market expansion of high-value-added products,the sales growth in Belt and Road countries, and thefirst-time supply of products such as economical steelfor exhaust systems and advanced ultra-supercriticalboiler tubes all have made a positive contribution to theupgrading of the global industrial chain.
In 2024
In 2024
UpgradingQuality Services
The Company advances the transformation from production-centered operations to customer-centered operations. To upgrade the standards of high-quality service, we constantly improvethe marketing, processing, and service network system through refined managementand technological innovation. By providing customers with one-stop, personalized, andcomprehensive services, we strive for efficient and precise responses to diverse customers’needs, contributing to a closer and more trustful relationship with customers and a win-win future.Improvingservice systems
With the core objective of improving service systems, we have built a comprehensive andefcient after-sales service system that meets and even goes beyond the diversied demandsof customers. As a result, we have won widespread acclaim from domestic and internationalcustomers. Meanwhile, we strengthen global market networks, particularly in Belt and Roadcountries, to bolster their infrastructure and industrial modernization.
Sales ratio of differentiated products
%
Increase in 439 steel for appliances
30+%
Year-on-year increase
46.2
%Exports of Taiyuan base
0.92
million tons
Comprehensive customer satisfaction index
87.9
points
User complaint resolution rate
98.9
%
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.6162
Responsiblemarketing
STSS continuously cements marketing business collaboration, and benchmarks industry leaders. Byimplementing the marketing control model of “one headquarter and multiple bases” and promotingproject-based synergistic value creation, we boost sales performance and internal collaborationefciency. Marketing organization reform and digitalization are implemented to strengthen centralizedmanagement and analysis of multi-base data, achieving comprehensive information-based marketingmanagement. Meanwhile, we actively participate in domestic and international exhibitions, productpromotion presentations, and seminars. In our promotional activities, we strictly follow relevantregulations of the Company to promote our new and special products in a realistic, objective, andeffective manner. This effectively increases our brand inuence and market recognition.
We ensure that our products and services do not pose threats to the health and property of customers.Once potential issues are identied, we will take immediate measures to recall or withdraw products, thusprotecting customers’ safety. In 2024, the Company saw no such incidents that cause harm to customerhealth and safety due to product quality issues.
Through third-party satisfaction surveys and satisfaction surveys of specic customer groups, we identify andaddress shortcomings accordingly. This allows for closed-loop management and continuous improvement ofproduct quality.We take strict control over customer information access and grant the minimum necessary permissionsbased on employees’ job responsibilities and demands. We also continuously raise employees’ awarenessof information security. To effectively protect the personal information of users, sensitive data is encryptedduring transmission and storage, and important data is backed up on a regular basis. In 2024, there were noincidents of customer privacy leakage.By working closely with customs, public security, and quality supervision departments, we tighten the controlover export products at ports and clamp down on counterfeit and substandard products. We also publishanti-counterfeiting announcements and strengthen public opinion guidance to regulate online information. Inaddition, we have established a joint rights protection mechanism with customers to cooperate with victimsin defending their rights, thereby guarding against counterfeit products in collective efforts.
Through rapid information classication and circulation, we promptly convey customer feedback to relevantdepartments for investigation and resolution. Meanwhile, the objection handling process is streamlined andthe on-site verication is accelerated to improve overall response efciency. For customer losses caused byproduct quality issues, we conduct on-site verication immediately , and provide return services or negotiatecompensation plans, effectively protecting customers’ economic interests.
Participating in the 3
rd China Nuclear Energy High-Quality Development Conference & ShenzhenInternational Nuclear Energy Industry Innovation Expo
Participating in the 2024 China InternationalSpecial Steel Industry Exhibition
Protectinginformationsecurity andprivacyIntensifyinganti-counterfeitingefforts
GuaranteeingproductsafetyImprovingcustomercomplainthandlingsolutions
Boostingcustomersatisfaction
By revising and promulgating relevantpolicies for the management of rawmaterial suppliers, we strengthen thefull-process management ranging fromsupplier admission to assessment, whicheffectively improves the overall quality ofsuppliers and boosts the resilience andefciency of supply chains.
Full-process suppliermanagement
We have established a robust supplychain risk management system.Through dynamic supplier databasemanagement, formulation and revisionof key procurement regulations, andestablishment of a compliance riskrepository, we effectively mitigatevarious procurement risks. We havealso developed emergency procurementplans and measures to ensure promptresponse to supply chain disruptionsand other emergencies, therebysafeguarding production stability.
Supply chain riskmanagementWe regularly review and assess suppliers’management and performance in labor,environment, safety, and other aspects.Unqualified suppliers are eliminated toimprove the sustainability of the supplychain. Specialized training on personnelqualifications, environment, safety etc.is provided to all suppliers. In addition,the cooperation agreements are revisedto incorporate relevant requirements,laying a solid foundation for building amore responsible and sustainable supplychain.
Supplier review andassessment
In 2024In 2024
Presentations in domestic andinternational exhibitions
Presences in product promotionmeetings and seminars
Building aResponsibleSupply Chain
The Company adheres to open supplier admission, transparent procurement platforms,standardized processes, and fair design. Stringent compliance with supply chain managementlaws, regulations, and industry standards ensures the integrity of our honest, open, fair, and justprocurement system and platform. By strengthening information sharing, process coordination,and technical alignment, STSS builds seamless collaboration and deep trust with suppliers tojointly create a transparent, efcient, and collaborative supply chain ecosystem.Suppliermanagement
Operating under a “one headquarters, multiple bases” procurement management model,the Company strictly manages supplier access and exit procedures and performs dynamicqualication reviews to introduce high-quality suppliers. All these efforts are geared towardsbuilding a stable and responsible supply chain.
Qualied suppliers
Suppliers certied by ISO 14001 system
New suppliers reviewed
ESG training sessions forsuppliers held
Number of supplierssuspended due tonon-compliance
Number of potentialsuppliers rejected fornon-compliance
Total ESG training hours forsuppliers
hours
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The rate of the femalmanagers accounting
Responsibleprocurement
STSS is committed to building a procurement platform based on the principles of integrity,openness, fairness, and impartiality. Effective measures, including standardized processes,transparent operations, and acceptance of supervision, ensure all-round oversight of the entireprocurement process. Meanwhile, we actively promote a green procurement strategy, deeplyembedding environmental concepts into every aspect of supply chain management. By strictlyfollowing 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.Business ethics and code of conduct
Green procurement and eco-friendly supply chain
We strive to build a transparent, honest, and standardized procurement system. Through policydevelopment, compliance management, and educational campaigns etc., we comprehensivelyenhance the business ethics standards of management and employees. This approach effectivelyprevents such risks as commercial bribery and corruption, ensuring transparent and efficientprocurement operations. In 2024, the fulllment rate of procurement contracts was 96.21%.
We actively promote green procurement, encouraging suppliers to use clean energy vehicles fortransportation. Our procurement contract mandate adherence to implement relevant requirementsof ISO 14001 Environmental Management System. Moreover, we advocate for the reduction ofpackaging and the use of renewable and biodegradable packaging materials to drive toward aneco-friendly supply chain and to reduce procurement costs in the long run.
As of the end of 2024
In 2024
FulllingEmployees’ Value
Adhering to the people-oriented principle, the Company values the comprehensivedevelopment of talents, and provides all-round protection of employee rights and interests.We strive to provide employees with a platform for diversied development, enhance theirsatisfaction and sense of belonging, and create a healthy and safe workplace, promotingthe sharing of development achievements between employees and the Company.
Protectingemployee rights
In line with the applicable provisions of the Labor Law of the People’s Republic of China, theLabor Contract Law of the People’s Republic of China and other laws and regulations, wevehemently oppose child labor, forced labor, harassment, bullying, and intimidation, ensurethat employees enjoy the legitimate rights and consolidate the talent pool, providing animportant guarantee for the Company’s stable development.
On-the-job employees13,080
Female managers
4.50
%
0.12
%
%
%
Employees brought in throughopen recruitment
Overseas students brought inthrough open recruitment
Total number ofshared employees
Ethnic minority employees
Employee turnover rate
Signing rate for laborcontracts
Coverage of socialinsurance
Signicant labor disputes, incidents offorced labor or employment of child labor
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We continuously improve our recruitment channels such as campus recruitment, industry-education integration programs, and socialrecruitment. Besides, we rene recruitment systems, standardize management processes, and embrace “transparent recruitment” to ensureall external hires are brought in through open recruitment. Moreover, we have innovatively set up a shared employment pipeline, which allowsfor more exible mobilization of human resources and more employment opportunities.
Employee recruitment
The number of paidannual leave days percapita on average
days
11.63
Unblockingemployee vitality
Attaching great importance to the all-round development of our employees, the Companyfosters long-term growth through accessible career advancement pathways, well-structuredtraining systems, and the competition-driven learning mechanism. Guided by the principle ofequality, we ensure fair and just treatment for all employees, irrespective of nationality, race,gender, religious belief, or cultural background. We offer equal growth opportunities for eachemployee to thrive alongside the Company’s progress.MaleAged 41-50
Technician
Junior college’sdegreeAged 30 and below
Sales staffProductionpersonnel
FemaleAged over 50
Administrativestaff
Bachelor’s degreeand aboveAged 31-40
Financial staff
Secondary vocationaldegree and belowEmployeeStructure by
Gender
(%)
EmployeeStructure byProfession(%)
EmployeeStructure byEducationalBackground
(%)EmployeeStructure byAge Group(%)
92.95
77.91
16.76
2.70
0.80
1.83
34.10
36.52
29.38
7.05
In 2024
In 2024
In 2024
%
%Coverage rate ofcollective contracts
Performance rate ofcollective contracts
25.13
1131339790
millionInvested in employee training
%Training coverage rate
1819
Newly-appointed Engineering Scientist ofChina Baowu, TISCO Management Expert,and Senior Chief Engineer respectively
Internal job transfertraining classes
Positions transferredthrough openrecruitment
Average traininghours of employees
Average traininghours of managers
Average training hours oftechnical/business staff
Average training hours ofoperational staff
Average online traininghours of all employeesCNY
Employee Structure by Job Titles (%)
3.59
11.72
43.78
SeniorIntermediateSenior operatorand above
97.5
Employee trainingsatisfaction
%
39.58
29.12
7.91
23.39
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.6768
We have established a market-oriented salary distribution system that follows the principles of scientic and fairdistribution. Through a variety of salary methods such as performance-based annual salaries and position-basedwages, we provide employees with competitive salary in the market and pay employees in time . In 2024, we madea reform of our compensation and benet system. By launching the salary point mechanism for employees, weincrease the incentive effect of salaries and propel the development of employees together with the Company.In terms of employee benets, we pay social insurance and housing provident funds for employees as required bylaw. We also provide annuities, paid annual leave, work meals, tness facilities, and other benets for our employees.
Compensation and benets
We are committed to providing comprehensive and multi-dimensional protection for employees’ rights to informationand supervision. Through approaches such as “Plant Affairs Publicity Columns”, workers’ congress, business briengmeetings, internal media, WeChat public account, and special progress meetings, we promptly disclose key employeeconcerns, including business operations, role model selection, professional title evaluation, labor competitions, andemployee care programs. To deepen democratic management within the organization, the Company’s labor unionhas taken the lead in corporate reform and actively provided suggestions on policies that had been reviewed bythe workers’ congress, such as the Employee Reward and Punishment Management Regulation and the SafetyAccountability Measures. The Company has established a grievance mechanism, which enables the Labor Union toraise objections to the Company in the implementation of rules and regulations, as well as decisions on major matters,and urge the Company to make improvements through consultation if the Labor Union considers it inappropriate.Through equal negotiation, we enter into the Collective Contract, the Special Collective Contract for Special LaborProtection of Female Employees and the Collective Wage Contract with our employees. Recognizing the evolvingneeds of both the Company and our workforce, we periodically adjust the content of these agreements. In theevent of any disputes arising from the implementation of collective contracts, equal consultation shall be conductedbetween the Company and the Labor Union. We have also conducted employee representative inspections andaddressed “the most concerned, the most relevant, and the most realistic issues of employees”. In 2024, weconducted inspections over 1,000 times and pinpointed 169 such issues with a resolution rate of 100%.
Democratic communication
STSS has established and improved the career advancement mechanisms for employees, including the recruitment, promotion, demotion(dismissal), and cross-functional transfers. We have formulated the Employee Development Management Measures (Trial) to set up careerpaths for managerial, technical, and operational roles and positions at all levels, and to specify the position levels and recruitment standardsfor the three roles. We have developed a hierarchical structure and career progression routes ranging from the managerial sequence Level Band above to technical sequence Associate Technicians to TISCO Scientist, and from operational sequence General Operator to TISCO SkillMaster, among other levels.We have also formulated policies such as the Employee Education and Training Management Measures and the Job Transfer TrainingManagement Measures to carry out on-the-job training and job transfer training based on the Company’s strategy and employeedevelopment needs. The training provides support for employee development and career shifts.
Career development
We have formulated employee development policies such as the Employee Education and Training Guidelines and the Employee Educationand Training Management Measures. To continuously improve employee quality, a three-tiered training management system has beenestablished, encompassing the company level, plant level, and operation area (departmental) level.With a focus on supporting strategic implementation, and integrating training with production and operation planning, we develop andexecute annual training plans. This involves building effective training courses, establishing a robust pool of qualied trainer, and advancingan assessment system for operational staff, and improving a cloud learning platform for empowerment. These efforts provide intellectual andtalent support for the Company’s growth.
Employee training
In 2024
Percentage of employeesin the Labor Union
%
Promoting occupationalhealth and safety
Employee health is a paramount concern for the Company. Focusing on thephysical and mental well-being, we actively promote the “Safety and Health EscortInitiative”. To this end, we provide all employees with necessary protections inline with occupational health and safety standards, and fully safeguard employeeoccupational health and safety.
Our team “Steel Olympics” makes good results
The Company and all its afliated entities have set up Work Safety Committees, which serve as the highest safetymanagement bodies at their respective levels. Dedicated safety management organizations have also been establishedwithin the Company and its entities, staffed with safety management personnel responsible for safety supervisionand management. In addition, we have formulated 17 work safety management policies and 34 safety managementstandards, including the All-employee Work Safety Responsibility System, the Measures for the Rewards andAccountability of Work Safety, the Measures for the Management of Occupational Health and the Measures for theManagement of Emergency Response Plans for Work Safety Accidents. These comprehensively cover the entire worksafety process, including accountability for safety accidents, hidden hazard investigation and rectication, emergencyrescue, and recognition and compensation of work-related injuries. In June 2024, STSS achieved ISO 45001:2018Occupational Health and Safety Management System certication.
To prevent accidents arising from vehicle injuries, confined spaces, lifting and hoisting operations, hazardouschemicals, and metallurgical gas, we have carried out a series of investigations and rectications to achieve closed-loop management of hidden hazards. In addition, all units are required to identify and control hazard sources fromoperational activities, equipment and facilities, production processes, and management activities. Such hazard sourcesare incorporated into the graded management system of safety risks to ensure effective risk control.
We conduct all-encompassing risk identification and hierarchical control over occupational health risks arisingfrom production, maintenance, construction, and other processes. Routine safety inspections and quarterly safetyevaluations are carried out. Besides, we strengthen the distribution and use of personal protective equipment (PPE). Wehave also strengthened intelligent and unmanned operations for positions with high risks, poor working conditions, andrepetitive strenuous labor, to continuously improve the working environment for employees. For personnel whose healthand safety have been compromised, we provide treatment and claim workers’ compensation in accordance with lawsand regulations, ensuring that employees’ rights and interests are well protected.
The Company has built and put into use a safety training experience center, which includes 10 high-risk operationexperience projects such as working at heights, lifting injuries, gas poisoning and operation at conned spaces, creatingan immersive safety training experience. We also organize specialized safety education and training, safety awarenessenhancement 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 sametreatment), all suppliers and ecosystem partners fall within the scope of our safety management. Through safety workmeetings, daily safety inspections and evaluations, and regular guidance and instruction, we help improve their safetymanagement capabilities.
? The company had 3 Work safety accidents, including 2 minor injury accidents of formal employees, and 1 serious injury
accident of suppliers’ worker. 2 formal employees suffered from work-related injuries, accourting for 0.015% of the totalnumber of employees. The total lost time due to work-related injuries was 920 hours, 115 days, and the accident rate ofmissed work was 0.075.
Hiddenhazardmanagement
Safety riskcontrol
Creatinga safetycultureSafetymanagement
of partners
Safetymanagement
system
Our extensive engagement in labor competitions, includingthe host of the 45th Skills Competition and the groups’attendance in external competitions, has helped strengthen skilltraining, cultivate skilled technicians, and sharpen employees’capabilities. In 2024, the Company won the “ExcellenceAward for Group” at the 11th National Iron and Steel IndustryVocational Skills Competition (the “Shagang Cup”), and fourindividuals were honored as National Steel Industry TechnicalExperts.
Competition-driven learning
Opening of Safety Training Experience CenterSafety emergency drillsFire safety drills
In 2024
Invested in work safetyCNYmillion
1.44
Investment in work safety liability insuranceCNY
29.36
millionInvested in workers’ compensation insuranceCNY
%Coverage of workers’ compensationinsurance for employees
%Training coverage
%Coverage of work safety liabilityinsurance for employees
120.5
Training hours for work safety
537,389Training attendances
Safety emergency drills organized
Training sessions
million
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
6970
Strengthen workplace safety
YearNumber of work-related fatalitiesFatality rate202210.01%202300202400
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 theeCompany’s history and culture, all aimed at inspiring company-wide morale.
Sports meetings
Table tennis competition
Basketball game
Reading Room
Employee care
We continuously enriches employee care initiatives. Focusing on the specic needs of vespecial groups: core talents, expatriate staff, employees in difculties, female employees, andyoung employees, we provide targeted support. Besides, we organize various cultural andsports activities, guiding employees to pursue better lives and achieve work-life balance.
During festivals such as the Spring Festival and the Mid-Autumn Festival, we visited and providedallowances for employees in key projects, special positions, and employees in difculties, with CNY1,018,100 of relief funds distributed.
We improves employee benets and care systems through birthday gifts, holiday gifts, movie ticketsand other benets to enhance employees' corporate identity.
To show care for female employees, we have issued the Decision on Commending AdvancedFemale Collectives and Advanced Female Individuals for 2023, and organized activities suchas a tea culture experience in celebration of International Women’s Day, “Business Accounting”she-power experience exchange, and rose-themed reading for female employees.
Assistance and allowances
Benet distribution
Care for female employees
Cultural and sports activities
Plaque-unveiling ceremony of the Health StationPsychological counseling activity themed
Outstanding Labor Protection Workers by theChina Iron and Steel Association
Outstanding Labor ProtectionPublicists
Outstanding SafetyDemonstration Team
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.7172
Ensuring physical and psychological well-being
Highlighting psychological well-beingWe have formulated the Guidelines on the 2024 Employee Psychological Care Work. We organize a series of activities such as theme-basedpsychological lectures, book reading sessions of the Life Blueprint, and psychological care from small psychological counseling teams asneeded. During the reporting period, our psychological adjustment and stress relief services provided at the “Care House” have benetedover 3,000 employees.
Providing healthcare servicesThe Company offers employees diverse health insurance plans, including accidental injury coverage, medical coverage, and critical illnesscoverage. We build health stations, equip with health kits, and organize activities such as employee rest and recuperation, summer heatrelief, and on-the-job healthcare, providing comprehensive support for employees’ physical and mental well-being. Furthermore, we continueto improve health check-up services to make it more convenient for employees to take health check-ups nearby and promptly receive theirhealth reports, enhancing employees’ satisfaction with the check-up services. During the reporting period, the physical examination rate ofon-duty employees was 96.38%.
In 2024
Project-based assistance
Contributingto SocialHarmony
Committed to joint contributions and shared benets with local communities, we actively engagein rural vitalization to promote coordinated regional development. We also conduct regularvoluntary and public welfare activities to pool charitable resources and to pass on the warmth.Through these efforts, we strive to create sustainable social value.
Rural vitalization
Firmly upholding its corporate social responsibility and mission, STSS fully leverages its strengthsto offer targeted assistance based on the demand surveys on assistance programs. The targetedassistance initiatives include organizational, project-based, consumption-driven, and educationalassistance. These efforts contribute to building well-governed, livable, and harmonious villages,thereby promoting comprehensive rural vitalization.
Public welfare
Dedicated to public welfare and committed to common development with communities, wecontinuously organize voluntary activities, including “March 5th Learning from Lei Feng Day”,“Supporting College Entrance Exams”, “Fullling the Dreams of Orphans on Children’s Day”,voluntary blood donation, civilized construction, competition and conference support, andenvironmental clean-ups. These warm-hearted and meaningful voluntary services demonstrateour commitment to spreading love and warmth, and to forming an open, sincere, andharmonious relationship with society.
Following the principles of “6+10 commitments”and “5 clarications” for village-based assistance,we bring assistance programs into effect withconcrete measures, such as promoting industrialdevelopment, elevating public services, andimproving the living environment in assistedvillages.
Engagements in voluntary servicesin 2024, with1,561
Practical tasks, good deeds and problem-solving undertaked
400+
Voluntary rubbish removal activity
Voluntary blood donation
Voluntary activity to support college entrance exams
Volunteer in a nursing home
In 2024
In 2024Organizational assistance
? We continuously promote the in-depth and practical implementation of the
“Three Ones” initiative, mobilizing team members stationed in villages toundertake over 400 practical tasks, good deeds and problem-solving efforts.? We intensify the building of village-level party organizations. Through PartyLecture System delivered by First Secretaries and educating on Partydiscipline, we give full play to the role of the party branches as ghtingbastions and the exemplary role of outstanding party members.
Educational assistance
We are pushing ahead with the “Green Steel intoSchools” student aid program and have donatedstainless steel products to primary and secondaryschools in assisted areas.
1,302Volunteers registered on the Volunteer Hub platform ofthe Communist Youth League as of the end of 2024
Volunteers reaching theStar level
Voluntary service hoursin total6,832
In the 2023 comprehensive assessment oforganizations stationed in villages of ShanxiProvince to offer rural assistance, we continuedto rank in the top tier of provincial-level entities.Labor union chairman of the Company MengYongquan successfully completed his duties asthe head of the provincial-level unit detachmentstationed in Loufan County and was honoredas an “Outstanding Dispatched Head Stationedin Counties”.The Directly invest in assistance funds through the purchase ofjumbo bags by us and by our ecosystem partner
millionCNY over
6.8
Paid assistance funds introduced
millionCNY
3.67
Consumption-driven assistance?We have organized diverse activities such as distributing collectivewelfare benets on the Dragon Boat Festival, engaging employees in the“Agriculture Vitalization Week” event for state-owned enterprises, andencouraging employees and ecosystem partners to purchase Loufanpotatoes. Through these efforts, we procured and distributed a total ofover CNY 9.7 million worth of specialty agricultural products from ourtargeted assistance areas and impoverished regions in Shanxi.
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.7374
Look ahead to 2025, STSS recognizes it as a pivotal year to aggressively navigate the prolonged downturn in the steel industry, rmlyadvance intrinsic growth, and resolutely overcome challenges to achieve success. It is also a crucial period to seize developmentopportunities, accelerate transformation and upgrading, and foster new growth drivers and advantages to enhance our corecompetitiveness. Committed to high-end, intelligent, green, and efficient development, we will leverage reform and innovation ascatalysts and benchmark ourselves against others to identify gaps. We will also spare no effort to optimize our structure, reducecosts, improve efciency, strengthen supply chains, and prevent risks. These efforts will boost our operational efciency and businessperformance, enabling us to take even greater strides towards becoming the world’s most competitive high-tech enterprise with acomplete stainless steel industrial chain.
Outlook in 2025
STSS will maintain a strong focus on technology-driven innovationWith insights into advanced stainless steel products and technologies, our unwavering commitment lies in advancing product andtechnology innovation to deliver original, groundbreaking, and pioneering stainless steel technologies that foster new quality productiveforces. Additionally, we will serve major national strategies by customizing “mission-driven” products and upgrading conventionalmaterials for applications in new elds, which will shape our differentiated competitiveness.
STSS will elevate product operations and intrinsic efciency
By implementing integrated reform covering production, sales, and research, we will offer more cost-effective products and convenient,efficient services, generating greater value to our customers. We will deepen our benchmarking efforts to identify and close gaps,implement practical cost reduction measures, and enhance value creation efficiency of all factors. Ultimately, our overall businessperformance will be improved. Our aim is to realize intensive and efcient operations for maximum efciency. Meanwhile, we will upgradeour “one headquarters, multiple bases” management system and capabilities to create greater synergistic value.
STSS will deepen digital and green development, propelling our transformation to a new level
By deepening the integration of digital technology with steel manufacturing, we will build smart production lines, intelligent bases, andintelligent plants. Additionally, we will strengthen carbon emissions management throughout the product lifecycle, enhance carbon datamanagement and application, and develop low-carbon metallurgical processes, positioning ourselves as an industry leader in green andlow-carbon practices.
STSS will implement comprehensive risk control to ensure the Company’s steady growthWith a bottom-line mindset, we will heighten risk awareness and strengthen risk prevention and mitigation. Committed to businesscompliance, we will balance risk prevention and development and evaluate and prevent risks at the source. We will diligently strengthensafety management at production sites with a well-dened, collaborative, integrated, standardized, and efcient work safety monitoringsystem to improve our safety management capabilities.
STSS will continue fullling our corporate responsibilitiesAware that value creation is the foundation of value sharing, we will stimulate the vitality of all employees while delivering our socialresponsibilities. In addition, we will strengthen branding, safeguard our corporate image, ensure transparency in major matters, andproduce high-quality corporate social responsibility reports. These efforts will improve transparency and recognition, bolster investorcondence, and cultivate a positive public image.
7576
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
IndicatorUnit202220232024
RevenueCNY billion
97.65105.62
100.38
Total assetsCNY billion
72.8668.24
67.53
Total equity attributable to the owner of a listed companyCNY billion
34.8333.58
32.57
Total protCNY million209-1,203-937
Social contribution value per shareCNY/share
1.1610.773
0.579
Tax paymentCNY million1,9201,418
Steel productionmillion tons
12.1713.91
13.98
Stainless steel productionmillion tons
4.145.59
6.20
IndicatorUnit202220232024
Share of female executives on the Management%
12.512.5
13.33
Board meetingssession1314
Proposals reviewed and passed by the Board /6070
Meetings of the Board’s specialized committeessession
Shareholders’ Meetingssession
Supervisory Board meetingssession
Announcements issued/14867
New points of integrity risks identication///
Anti-commercial bribery and anticorruption trainingcoverage for personnel with business disposal rights
%//
Auditing projects /1844
Auditing issues corrected by due date%100100
Partipants of ESG trainingheadcount91102 128
IndicatorUnit202220232024
Product percent of pass%
89.699.06
99.68
Customer satisfactionpoint
90.186.8
87.9
User complaint resolution rate%8998.8
98.9
Number of qualied suppliers//268
Review of new suppliers//58
Suppliers certied by ISO 14001 system/13562
Procurement contract fulllment rate%9995
96.21
Number of suppliers suspended due to non-compliance
//0
Number of potential suppliers rejected fornon-compliance
//0
Supplier ESG trainingsession1358
R&D investmentCNY billion
3.403.41
4.11
Share of R&D personnel%//
20.34
Investment Ratio in new processes andproducts
%//
4.1
Patent applications/335370
Authorized patents/192157
Authorized invention patents/109110
Total employeesheadcount15,12314,01213,080Female employeesheadcount1,4911,327
Ethnic minority employeesheadcount149144
Share of female managers
%
5.265.92
4.50
Employees hired through open recruitmentheadcount114320
Employee turnover rate%
0.030.07
0.12
Labor contract signing rate%100100
Economy
Govermence
Social"/": STSS has not disclosed historical data for some of the indicators, and the data has been disclosed starting in 2023 or 2024 through theimprovement of the level of management of ESG indicators.Key Performance Table
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.
7778
IndicatorUnit202220232024
GHG emissions (Scope 1)10,000 tCO
e2,1542,160.12,114.51
GHG emissions (Scope 2)10,000 tCO
e
6.120.0
GHG emission intensity (Scope 1+Scope 2)tCO
e / ton of crude steel
1.781.77
1.78
GHG emission reduction (Scope 1)million tons//
0.16
GHG emission reduction (Scope 2)million tons//
0.01
Investment in environmental protectionprojects
CNY million543397
Environmental protection training hourshour//
Participants of environmental protectiontraining
///
Environmental protection penalty/
Energy consumption10,000 tons of standard coal
633.94641.46
690.77
Comprehensive energy consumption per tonof steel
kg of standard coal/ton
522.37522.02
525.01
Energy consumption per CNY 10,000 ofoutput value
tce/ ten thousand yuan/0.79
0.83
Clean energy useGWh
541.74235.47
274.07
Recycling volume of scrap steel10,000 tons113 118
Fresh water usagemillion tons
21.9222.17
16.79
Fresh water usage per ton of steelTon of water/ton of steel
1.811.8
1.39
Urban sewage and reclaimed water treatedmillion m
15.2726.68
24.93
Water reuse rate%
98.7198.71
99.02
Exhaust emissionsmillion m
292,431.91 296,175.96288,485.89Sulfur dioxide emissionston
615.81621.55
628.87
Nitrogen oxide emissionston2,864.122,901.262,819.97
EconomyIndicatorUnit202220232024
Social insurance coverage rate%100100
Coverage rate of collective contracts%100100
Paid annual leave days per employeeday
8.2812.41
11.63
Investment in employee trainingCNY million
18.4641.45
25.13
Training hours per employeehour
186.5169
Employee training satisfaction%
96.397.1
97.5
Employee health check-ups coverage rate%
84.4796.38
96.38
Investment in work safety
CNY million145108
Invested in workers’ compensation insuranceCNY million//
29.36
Coverage of workers’ compensationinsurance for employees
%//
Investment in work safety liability insuranceCNY million//
1.44
Coverage of work safety liability insurance foremployees
%//
Coverage rate of safety training%100100
Safety training hourshour/196
120.5
Safety emergency drills organized session24654
Work safety accidents/
Work-related fatalities/
Days lost due to work-related injuriesday6,025540
Number of newly added occupationaldiseases
/
Relief funds distributedCNY million
0.772.21
1.02
Consumption-driven assistanceCNY million
3.524.92
9.70
Volunteers/6111,0161,302
Engagements in voluntary services/1,3901,2211,561
Volunteer service hourshour7,227.157,111.796,832
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.7980
Report ChapterGRI Standards
Self-Regulatory Guidelines No.17 forCompanies Listed on Shenzhen StockExchange—Sustainability Report (ForTrial Implementation)
About This Report2-2/2-3/2-4Article 4, Article 6Message from the Chairman2-22About Us2-1/2-6/201-1Key Figures of 2024Sustainability Management
2-12/2-14/2-16/2-19/2-20/2-26/2-27/2-28/2-29/3-1/3-2/3-3
Article 5, Article 7, Article 9, Article 10,Article 11, Article 12, Article 13, Article 14,Article 16, Article 18, Article 53Honors
CSR Spotlights
Spotlight 1 : Ultra-thin Steel—Fostering the Ultimate Excellenceof Stainless Steel via TechnologicalInnovation
Article 42Spotlight 2: Green Transition—Nurturing New Momentum for GreenSteel Development
Article 20, Article 23, Article 27, Article 28Spotlight 3: Industrial Synergy—Building a High-Quality SpecialtySteel Industry EcosystemBuilding a SolidFoundation andFostering GrowthDrivers
Strengthening the Leading Role ofParty Building
205-2Improving Corporate Governance2-9/2-10/2-11Article 12, Article 51, Article 52, Article 53Following Business Ethics andCompliance Requirements
205-1/205-2/205-3/206-1Article 54, Article 55, Article 56PursuingExcellence andNurturing NewQuality ProductiveForces
Upgrading Innovation Management 102-15Article 11, Article 19, Article 41Seeking Innovation-drivenDevelopment
203-2Article 42Achieving Excellent Quality 201-1Article 47Supporting Industrial Upgrading203-1/203-2Building aBeautiful ChinaThrough Greenand Low-CarbonDevelopment
Strengthening EnvironmentalManagement
305-7/307-1Article 11, Article 33Implementing Green Production
101-4/101-4/101-7/101-8/203-1/301-1/301-2/
301-3/302-1/302-3/302-4/302-5/303-1/303-2/
303-3/303-4/303-5/304-2/305-7/306-1/306-2/
306-3/306-4/306-5
Article 20, Article 28, Article 29, Article 30,Article 31, Article 32, Article 34, Article 35,Article 36, Article 37Making Green a Dening Feature301-3Article 20Tackling Climate Change201-2/305-1/305-2/305-4/305-5
Article 10, Article 11, Article 13, Article 14,Article 15, Article 17, Article 18, Article 19,Article 20, Article 21, Article 22, Article 23,Article 24, Article 26, Article 27Striving for Win-Win ProgressToward SocialHarmony
Upgrading Quality Services416-1/417-1/418-1Article 44, Article 47, Article 48Building a Responsible Supply Chain103-3/204-1/308-1/414-1/414-2Article 45Fullling Employees’ Value
2-7/2-8/2-30//401-1/401-2/401-3/403-1/403-2/
403-3/403-4/403-5/403-6/403-7/403-9/403-10/
404-1/404-2/405-1/406-1/408-1/409-1
Article 49, Article 50Contributing to Social Harmony413-1/415-1Article 38, Article 39, Article 40Outlook in 2025 2-22Key Performance TableESG Indicator IndexArticle 54Third-party RatingFeedback
IndicatorUnit202220232024Particulate matter emissionston1,952.031,976.541,959
Volatile organic compound emissionston1,466.491,480.831,482.88
Atmospheric depositions in the plant areatons/km
/month
5.815.80
5.79
Chemical oxygen demand (COD) emissionston/60.36
56.22
Ammonia nitrogen emissionston
1.941.72
1.33
Wastewater dischargedmillion m
7.156.89
6.31
Wastewater discharged per ton of steelTon of water/ton of steel
0.590.56
0.52
Reuse rate of wastewater per ton of steel%
91.8491.80
99.02
General waste generatedmillion tons
8.088.29
7.17
General waste utilizedmillion tons
7.948.25
7.13
Comprehensive utilization rate of generalindustrial solid waste
%
98.3599.5
99.53
Return-to-production utilization rate of generalindustrial solid waste
%
25.7 24.47
24.24
Hazardous waste generatedmillion tons
0.57 0.65
0.69
Safe disposal rate of hazardous waste%100100
Emissions trading proceedsCNY million//
1.67
Investment in greening activitiesCNY million
89.0536.52
34.17
Green products owned///
Steel product EPDs//3
Clean transport ratio%/over 85
80.2
ESG Indicator Index
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.8182
Third-party Rating
Vice Chairman of the Chinese ExpertCommittee on CSR Report RatingDate issued: April 11, 2025
Scan the QR code to viewthe enterprise’s rating file
The Sustainability/ESG Report of Shanxi Taigang Stainless Steel Co., Ltd. is rated as a five-star report for the 9th consecutive yearIV. Suggestions for ImprovementNegative information and corresponding prevention and response measures should be disclosed adequately to improve the balance of the report.
Leader of the Rating TeamExpert of the Rating Tea
Rating Report of 2024 Sustainability/ESG Report of Shanxi Taigang Stainless Steel Co., Ltd.Upon the request of Shanxi Taigang Stainless Steel Co., Ltd., the Chinese Expert Committee on CSR Report Rating invited experts to form a Rating Teamand rated the 2024 Sustainability/ESG Report of Shanxi Taigang Stainless Steel Co., Ltd. (hereafter referred to as "the Report").I. Rating CriteriaThe Guidelines on Sustainability Reporting for Chinese Enterprises (CASS-ESG 6.0) issued by the China Enterprise Reform and Development Society andthe CSR Cloud Research Institute, and the Rating Standards for the Sustainability Report of Chinese Enterprises (2025) issued by the Chinese ExpertCommittee on CSR Report Rating.II. Rating Process
1. The Rating Team reviewed and confirmed the Confirmation Letter on Materials for the Process Evaluation of the Sustainability Report of the Company
and related supporting materials submitted by the Preparation Team of the Report;
2. The Rating Team evaluated the compilation process and the disclosed information of the Report and drafted the Rating Report;
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
Report.III. Rating ResultsProcess (★★★★★)The Corporate Culture Department of the Company was responsible for the overall preparation of the Report, coordinating all departments to providematerials as required, and submitted the Report prepared to the Sustainability Working Committee and the Board of Directors for final approval and givingthe final review opinions. The Report was positioned as an important tool to meet the requirements for compliance management disclosures, improvesustainability management level, disseminate corporate sustainable brand image, disclose corporate responsibility fulfillment information, and respond tocapital market demands, with clear functional and value positioning. According to the latest sustainability information disclosure standards at home andabroad, the method for analyzing the double materiality of ESG issues was upgraded by integrating financial materiality analysis on the basis of impactmateriality assessment, so as to identify and disclose key issues. The ESG indicator system was continuously improved in a scientific and standardizedmanner to reflect the actual situation of the enterprise. The Report was published through the Company's official website, Shenzhen Stock Exchange andother 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 Report systematically disclosed the key issues in the industry, such as addressing climate change, pollutant discharge, waste treatment, energy andresources conservation, R&D and application of environmental protection products or technologies, biodiversity and land use, sustainable supply chain,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.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 toaccumulate development momentum", "Casting high-quality products to cultivate new quality productive force", "Upholding green and low-carbon initiativeto build a beautiful China", and "Achieving mutual benefits to co-build a harmonious society". Therefore, the Report has leading completeness performance.Balance (★★★★☆)The Report discloses many negative data, such as the "number of environmental punishment events", "number of work safety accidents" and "number ofwork-related deaths", and briefly described the relevant situations, such as "no punishments by domestic or foreign market supervision or administrationinstitutions due to unfair competition", and "no major environmental emergencies or environmental violations". Therefore, the Report has leading balanceperformance.
Comparability (★★★★★)The Report discloses the comparative data for 83 key indicators for three consecutive years, including the "energy consumption", "comprehensive energyconsumption per ton of steel", "labor contract signing rate", "proportion of R&D personnel", "steel production" and "total profit", and provides horizontalcomparisons, such as the "ESG Pioneer Index Top 100 Central SOEs" for horizontal comparison. Therefore, the Report has excellent comparabilityperformance.Readability (★★★★★)The Report has a clear framework and complete structure, with four major chapters detailing the Company's CSR concepts and achievements in theenvironmental, social and governance domains, demonstrating the Company's sense of responsibility. The cover features the Company's distinctive logoto enhance the recognition of the Report. The cross-page of each chapter is designed with real-life images and narrative introductions that match the topicdiscussed in the chapter, enabling readers to quickly learn about the key points of the chapter, and enhancing the communicability of the Report. Therefore,the Report has excellent readability performance.Innovation (★★★★★)Three major CSR topics: "Cicadas wing like steel, Technological innovation shaping the ultimate beauty of stainless steel", "Directing to green development,Creating new driving forces for green development of steel industry", and "Connecting chains into clusters, Creating a high-quality industry chain ecosystemfor special steel materials", are set out to summarize and showcase the great achievements of the Company in fulfilling its corporate responsibilitiesfrom scientific and technological innovation, green development and ecosystem building, respond to the expectations of stakeholders and demonstratethe Company's sense of responsibility. The annual key performance data are summarized in the "numbers in 2024" to enhance the credibility of thecontents, and the Company's achievements in fulfilling its corporate responsibilities are presented in the form of stakeholder's testimony to enhance thecommunicability of the Report. Therefore, the Report has excellent innovation performance.Overall Rating (★★★★★)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 excellentsustainability report.
2024 Sustainability (ESG) ReportShanxi Taigang Stainless Steel Co., Ltd.8384
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Dear readers,Thank you for taking the time to read our sustainability (ESG) report amidst your busy schedule. We remain committed to deliveringcomprehensive and meaningful information to enhance public understanding of our sustainability (ESG) management capabilities. Wesincerely invite you to share any feedback and suggestions on this report - your insights will help us continuously improve our reportingprocess and enhance the effectiveness and transparency of our sustainability (ESG) management. Thank you for your continued interestand 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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2. Overall, how would you evaluate our report?
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3. What do you think of the clarity, accuracy, and completeness of the information, data, and indicators
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4. Do you think the content arrangement and layout design of the report are read friendly?
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5. Which topics have caught your attention the most? (3 options)
□Environmental compliance□Resources utilization□Circular economy□Climate response□Green products□Technological innovation□Product quality and safety□Customer service□Supply chain security□Promotion of industrial development□Employee development□ Corporate governance
6. What other opinions or suggestions do you have regarding the sustainability (ESG) report or our work
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Shanxi Taigang Stainless Steel Co., Ltd.
Shanxi Taigang Stainless Steel Co., Ltd.
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