Beijing Shougang Company LimitedSustainability Report 2022
Beijing Shougang Company Limited Sustainability Report 2022
Beijing Shougang Company Limited Sustainability Report 2022
About This Report
Esteemed readers,The 2022 Shougang Steel Sustainability Report adheres to the principles of objectivity, standardization, transparency, andcomprehensiveness. It systematically discloses Beijing Shougang Co., Ltd.'s commitments, management, measures, andachievements in social responsibility, environmental protection, and corporate governance in 2022.
Beijing Shougang Co., Ltd.
August 2023Reporting PeriodThe reporting period covered by this report spans from January 1, 2022 to December 31, 2022 (referred to as the "reportingperiod"). Part of the content may refer to previous years as needed.Report ScopeThis report covers Beijing Shougang Co., Ltd. and its subsidiaries, branches, and af?liated units. For the sake ofdescription and readability, Beijing Shougang Co., Ltd. is also referred to as "Shougang Steel" "the company", or "we" inthe report.Shougang Steel's main product production companies: Shougang Qian'an Iron&Steel Co., Ltd.(Qiangang Co.), ShougangJingtang United Iron & Steel United Co., Ltd. (Jingtang Co.), Beijing Shougang Cold Rolling Co., Ltd. (Cold-R Co.),Shougang Zhixin Qian'an Electromagnetic Materials Co., Ltd. (Zhixin Co.).Note: The Qianshun Base refers to the integrated production organization and product research and development systemformed by Qiangang Co, located in Qian-an, Hebei province, and Cold-R Co., located in Shunyi District, Beijing.
Data Sources and Reliability Assurance
The information and data disclosed in this report originate from the company's documents and statistical data, andhave been veri?ed by relevant departments. The company guarantees that the contents of this report are free from anyfalse records or misleading statements and takes responsibility for the authenticity, accuracy, and completeness of thecontents.Preparation Basis? Guidelines for Preparation of China Corporate Social Responsibility Report (CASS-ESG5.0) issued by the ChineseAcademy of Social Sciences? Guidelines No. 1 for Self-Discipline Supervision to Listed Companies- Normative Operation of Main Board Listed
Companies issued by Shenzhen Stock Exchange? The Sustainability Reporting Standards (GRI Standards) issued by the Global Sustainability Standards Board? The United Nations 2030 Sustainable Development Goals (SDGs)? State-owned Assets Supervision and Administration Commission of the State Council "Guidelines for BetterFul?llment of Social Responsibilities by State-owned Enterprises" (State Asset Research [2016] No. 105)? The Guidance on Social Responsibility Reporting (GB/T 36001-2015)
Text LanguageThis report is available in both Chinese and English. In the event of any discrepancy between the two languages, theChinese version shall prevail.
Report Acquisition
The electronic version of document can be downloaded from the Social Responsibility section on the of?cial website ofShougang Steel (http://www.sggf.com.cn/).
2 3
CONTENTS
AppendixKey Performance Indicators Form 103Content Index 107Feedback Form 112
Governance:
Strengthening theFoundation of Governance (G)
Corporate Governance 20ESG Management 23Business Ethics 25Risk Management 28Investor Relations 31
Environmental protection:
Practicing and Leading ByExample (E)
Environmental Management 34Ultra-low Emissions 37Circular Economy 39Low-carbon Development 44Green Products 50 Biodiversity 52
Society:
Achieving a Better Life (S)
Employee Protection 60Talent Development 67Health and Safety 69Quality Assurance 74Customer Service 78Supply Chain Management 81
Value：
Demonstrating Mission andResponsibility (V)
National Strategic Projects Participation 86Research and Development Innovation 88Intelligent Manufacturing 96Industry Collaboration 98Public Welfare Activities 101Urban Integration 102
Special topic: Circular development,Jingtang Co. builds an "industrialresource comprehensive utilizationbase" and a provincial-level "zerowaste factory"
About This Report 1Message From Chairman 4About Us 6Column: Shougang Relocation - Creating the Futurewith Spirit of Historical Responsibility 8Honors in 2022 10Figures for 2022 11
Focus 1Inherent safety, environmental protection model 12Focus 2Independent innovation, technology leadership 14Focus 3Assets optimization, value enhancement 16
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The year 2022 is the year of the successful convening ofthe 20th CPC National Congress of the Communist Partyof China, the key year for implementing the "14th Five-Year Plan", and also the key year to lay a solid foundationfor Shougang Steel's high-quality development. Due tothe turbulence of the international situation, the demandfor steel market declined more than expected, the steelprice continued to weaken, the raw mateiral and fuelprice remained relatively high, and the industry benefitdeclined significantly year-on-year. Facing the newsituation, new tasks, and new challenges, in accordancewith the vision of building a steel listed companywith international competitiveness and influence, thecompany has implemented the strategy of strengtheningthe company with talents, consolidated the governance
governance and build a risk-warning indicator system.Through integrating risk control with compliance, weaim to achieve "strong internal control, effective riskprevention, and enforced compliance".Intelligent manufacturing, leading by technology,strengthening the long-term advantages of theenterprise. We adhere to technological innovation,pushing technological innovation to become the FirstCompetitiveness of the company. We aim to maketechnological innovation a key variable, driving high-quality growth and taking steps towards becoming aworld-class enterprise, with continuous breakthroughsin "first release of products, original processes, andfirst deployment of equipment". We actively advancedigital transformation and intelligent manufacturing,continually progressing in the construction of smartfactories, achieving new breakthroughs in intelligentmanufacturing. We have built the world's ?rst specializedproduction line for high-grade non-oriented electricalsteel used in new energy vehicles. The productperformance, dimensional accuracy, and productionef?ciency have all reached the world's leading standards,with two types of electrical steel products being globallylaunched.Green manufacturing, inherent safety, setting industrybenchmarks. We insist on green manufacturing andpracticing inherent safety, aiming to become a modelenterprise. We encourage the whole chain of greenproduction and manufacturing. Shougang Steel is theworld's first company to achieve ultra-low emissionsthroughout the entire process. It has exported ultra-lowemission transformation technology and managementexperience to 35 domestic steel companies, contributingShougang's wisdom to the steel industry's ultra-lowemission transformation. We actively respond to climatechange, voluntarily integrate into the national dual-carbon strategy, vigorously carry out energy-conversationand carbon-reducing work, continue to research andinnovate low-carbon metallurgical technology, anddeepen the construction of the LCA system, building a
Message From Chairman
Chairman of Beijing Shougang Co., Ltd.
"carbon management" information application platform.We prevent and resolve risks at the source, creating anintrinsically safe enterprise system that encompassespersonnel, machines, environment, and management.Customer-oriented, providing precise services,pursuing joint and win-win development. We adhereto a market-oriented approach, centering on customers,using technology as the means, walking side by sidewith customers, and striving for win-win development.We deepen the marketing strategy of "technology +service", continuously optimize the customer servicesystem, build an intelligent marketing service platform,and continuously improve customer service efficiency.We effectively construct a user ecosystem service systemcharacterized by "open sharing, interconnectedness, andvalue co-creation" to work with customers to create andbuild together, continuously creating value.Fulfilling our mission with long-term commitment,enhancing our achievements and composing a newchapter. We will continue to set our sights on world-
class enterprises, firmly adhere to the strategy of"green manufacturing, intelligent manufacturing,high-quality manufacturing, lean manufacturing,and precise services", and persist in talent-drivendevelopment, governance modernization, technology-driven development, green and low-carbon development,and customer orientation to promote the high-end,intelligent, and green development of Shougang Steel!
foundation, innovatively driven by technology leadership,guided by green safety demonstrations, enhanceddevelopment momentum, and continuously improvedsustainable development capabilities.
People-oriented, strengthening the company withtalents, striving to build a world-class enterprise.
We adhere to a people-oriented development strategy,deeply promote talent-driven development, and builda multi-level training system for all staff. The companyhas established the "voyage" career development systemfor high-potential talents, encompassing the entireprofessional lifecycle, and constructed a "four horizontaland three vertical" training system for all staff. We openup the channels for horizontal movement of talent acrossthree sequences: "business management, professionaltechnology, and skill operation", thereby improving the?ow of talents. The proportion of high-tech and highly-skilled personnel in the company has steadily increased.We comprehensively create a talent innovation highland,with 4 employees honored with the title of "ShougangScientist". We enrich incentives for high-level talents,implement treatment for sophisticated talents, andoptimize and enhance the incentive mechanisms forinnovation and market operations, reinforcing the vitalityof enterprise development.Optimizing governance, operating in compliance,building a solid governance foundation. We adhereto compliant operations and comprehensively promotethe modernization of the company's governancesystem and governance capabilities. We haveestablished a standardized and orderly corporategovernance framework, forming a governancemechanism characterized by clearly defined rights andresponsibilities, transparency, coordinated operation,and effective checks and balances. We have established acomprehensive compliance management system, repletewith well-structured organization, complete regulations,standardized processes, and features distinctive toShougang Steel. Continuously optimizing and enhancingour internal control system, we also advance special risk
Zhao Minge
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Beijing Shougang Co., Ltd. was listed on Shenzhen Stock Exchange inDecember 1999 (Stock Code: 000959), controlled by Shougang Group, aFortune Global 500 enterprise.Shougang Steel owns Shougang Qian'an Iron&Steel Co., Ltd.(Qiangang Co.),Shougang Jingtang United Iron&Steel United Co., Ltd. (Jingtang Co.), andcontrols Beijing Shougang Cold Rolling Co., Ltd. (Cold-R Co.), ShougangZhixin Qian'an Electromagnetic Materials Co., Ltd. (Zhixin Co.), and othersteel entities. The company has a complete production process includingcoking, ironmaking, steelmaking, rolling, and heat treatment, and hasinternationally advanced equipment and process levels. We have a completeseries of hot-rolled and cold-rolled ?at products with complete varietiesand speci?cations, providing customers with high-quality products such aselectrical steel, automotive sheet, tinplate, pipeline steel, and householdappliance sheet, as well as value-added services such as early venderinvolvement(EVI).
Focusing on the promotion and implementation of the "Two Strong and ThreeExcellent" project (strong pro?tability, strong innovation capability, excellentasset quality, excellent operational ef?ciency, excellent energy-conservationand environmental protection), we adhere to the strategic determination of"green manufacturing, intelligent manufacturing, high-quality manufacturing,lean manufacturing, and precise services", advocate the dual-drive of "capital+ operation" to promote deepening reform and high-quality development. Weadhere to the development direction of "high-quality products + services",continuously promote the development of high-end products, focusing onelectrical steel, automotive sheet, and tinplate(chromium), and continuouslyimprove the level of steel material manufacturing services and operationalef?ciency, forming a cluster of strategic product customers with internationalcompetitiveness, and striving to build the company into a listed steelcompany with international competitiveness and influence.
About Us
Year 2022.? Pig iron:
22.22
million tonnes? Crude steel:
23.23
million tonnes? Finished products:
22.18
million tonnes? Operating pro?t:
118.142
billion yuan? Total pro?t:
1.793
billion yuan? Net pro?t attributable to
shareholders of the company:
1.125
billion yuan
Company History
Development Strategy
Organizational Structure
1999.12Successfully listed on Shenzhen StockExchange, becoming the ?rst listedcompany in China to introduce strategicinvestors, the ?rst listed company toissue shares through a combination ofonline and of?ine distribution, and the?rst listed company to conduct publicroadshows.
2009.12
Jingtang Co. Phase I?rst stage project wasfully completed and putinto operation.
2002.12
Shougang Qian'an Iron&SteelCo., Ltd. was established.
2010.10-2014.04
The mainstream processfacilities positioned inShijingshan District, Beijing,were shut down and transferredto Qiangang Co.
2004.10
Qiangang Co. PhaseI project was put intooperation.
2005.11
Completed thestock-reform.
2008.08
Beijing ShougangCold Rolling Co., Ltd.was established.
2007.01
Qiangang Co. Phase IIproject was completed andput into operation.
20092010
2018.03Shougang Zhixin Qian'anElectromagnetic MaterialsCo., Ltd. was established.
2020.06
Acquired 51% equity of BeijingShougang Steel TradingInvestment Management Co.,Ltd. (Steel Trading) throughasset exchange.
2022.03Acquired 49%equity of theSteel Trading.
2021.07
Acquired 19.1823% equity
of Jingtang Co.
2018202020212022
2015.04-2016.04
Acquired 51% equity ofJingtang Co.
2015199920022004200520072008
To strive forexcellencebetter quality
To besincerebetter service
To bevirtuous
better growth
To bebeautiful
betterenvironment
Column
Entering the 21st century, Shougang implemented the future layout adjustment of the national steel industryand the ful?llment of the commitment to the "Green Olympics" in Beijing in 2008. In 2005, the State Councilapproved theShougang Relocation, Structural Adjustment, and Environmental Governance Plan, and Shougang'ssteel-related industries began to relocate from Beijing. By the end of December 2010, the steel main processfacilities in the old factory area in Shijingshan, Beijing, had completely shut down, marking the end ofShougang's 91-year history of steel melting in Beijing.From Shijingshan to Cao Fei Dian in Hebei, the historic relocation of Shougang is not only a landmark projectfor the coordinated development of Beijing, Tianjin, and Hebei, but also a landmark event in the history ofChina's steel industry development.The relocation of Shougang is a new layout for new capacity, new technology, and new levels. Before therelocation, Shougang Steel mainly produced long products, but after the relocation, it shifted its focus to theproduction of high-end ?ats. The business forms of Shougang in Beijing have transformed from extensiveproduction to a multi-forms development model of headquarters economy, demonstrating the modernizationand upgrading of product structure. The concept of green, circular, and low-carbon development has beensystematically implemented, demonstrating the green upgrading of production processes.
In Cao Fei Dian, Hebei Bohai BayA steel "dream factory" has stood for more than ten years
From Shijingshan to Bohai BayFrom the old Shougang to the new JingtangShougang has achieved a phoenix-like rebirth
Shougang RelocationCreating the Future with Spirit ofHistorical Responsibility
February 2005The State Council approved theShougang Relocation,Structural Adjustment and Environmental GovernancePlan, and agreed to build an internationally advancedintegrated steel plant in Caofeidian, Tangshan, Hebei asthe carrier for the relocation.
June 2005
The shutdown of BF No. 5 of Shougang ironmaking plantmarked the of?cial start of the production reduction andrelocation work of the Shougang in Beijing.
October 2005
Shougang Jingtang United Iron&Steel United Co., Ltd.was established.
May 2009The ignition of BF No. 1 of Jingtang Co. marked thelaunching of the trial production of the Jingtang Co.project.End of 2010With the complete shutdown of the main steel productionlines in Shijingshan, Beijing, and the production of thesecond stage of the ?rst phase of the Caofeidian JingtangCo., the historic task of Shougang's relocation andadjustment was basically completed.August 2019The full production of the second phase of one-stageprojects in Jingtang Co. was achieved.
Jingtang Co. has relocated more than4,500
workers from the Beijing area,Recruited about
5,400
college graduates to settlein Caofeidian,Created nearly
20,000
jobs in related upstreamand downstream service industries.
8 9
Figures for
Honors in
★ Awarded the "National May Day Labor Award"★Shougang Steel and Zhixin Co. were awarded the title of "National IntellectualProperty Advantage Enterprise"★Awarded the "National Harmonious Labor Relations DemonstrationEnterprise"★Rated as the "Grade A" enterprises in environmental protection performanceevaluation★Awarded the label of "double carbon Best Practice Energy Ef?ciency
Benchmark Demonstration Plant Cultivation Enterprise" by China Iron andSteel Association★Awarded the title of national "Industrial Product Green Design DemonstrationEnterprise", which is the only steel enterprise on the list★ Named as the "Bookish Enterprise of 2022"★Awarded the "Best ESG Disclosure Award" and the "Best Board of DirectorsAward" by Tianma Award★Received the "16th China's Top 100 Listed Companies Growth Award" bySecurities Times
★As the only steel enterprise, received the "Special Contribution Award" fromBYD, and received 16 awards including the "Partner Progress TogetherAward" from FAW-Volkswagen, and the "Excellent Supplier" from CIMC andCRSBG★Xu Houjun was selected as one of the "Top 10 Beijing Role Models of 2022",and Nanning was elected as the "Capital Citizen Learning Star"
shareholders' general meetings held
meetings of board of directors held
meetings of supervisory committee held
information disclosures released100%accuracy rate for informationdisclosureDebt-to-asset ratio decreased by
2.18
percentage pointsFinancial expenses per tonne of steeldecreased by
21.78%
year-on-year...............................Total environmental investment amounted to
1.122
billion yuanThe reaching standard rate of pollutantsachieved100%
Emissions of three major air pollutants(particulate matter, sulfur dioxides, nitrogenoxides) per tonne of steel achieveddomesticleading level
Water recycling and reuse rate exceeded
98.7%
Utilization rate of industrial solid wasteapproached100%
The implementation rate of three-simultaneous environmental protection(designed simultaneously, constructedsimultaneously, and put into operationsimultaneously) achieved100%
Achieved100%synchronous operationrate of environmental protection facilities
...............................18,608 employees in total
100% labor contract signing rate
100%
employee training coverage
100%
social insurance coverageTotal investment in safety productionamounted to
million yuanTotal safety training time reached
801,222
hoursR&D investment accounted for
4.56%
authorized patentsOnline procurement orders accounted for
99.14%
10 11
Long-term commitment to inherent safety has yielded signi?cant results.Shougang Steel emphasizes safety culture, earning recognition as a nationallevel demonstration enterprise for end-to-end safety culture. The companyhas concentrated on safety standardization construction, completing level-one compliance across main process units. Utilizing the "dual control"mechanism as a core strategy, Shougang Steel has independently developeda 'dual' prevention and control system for occupational safety, becominga leader in the uni?ed and digital management of safety risk control, andhazard detection and remediation. In 2022, Shougang Steel quanti?ed 2,642job responsibility lists, integrated 165 critical safety parameters into the dualcontrol system, ensuring that all employees "follow the rules" and that thesystem "automatically detects hidden dangers". Emphasizing inherent safetymanagement, the company has created unique twelve-step methods suchas lock-out/tag-out, mechanical protection, and energy isolation, setting aprecedent for the metallurgical industry's inherent safety management. In
Inherent safety, environmentalprotection modelFocus 1
Incorporating
key processsafety parametersAssisting
iron and steelenterprises with advancedtechnology and managementexperience for ultra-low emissiontransformationThe first iron and steelenterprise:
achieving ultra-low
emissions in the whole process
2022, Shougang Steel completed 403 key breakthroughsin areas like new technology application, maintenanceworkwear R&D, and elimination of con?ned spaceoperations, reducing the total on-site risk value by 10% forthree consecutive years.In 2019, Qiangang Co. became the ?rst iron and steelenterprise to achieve ultra-low emissions throughoutthe entire process, earning a "Grade A" rating forenvironmental protection performance in Hebei Province.Jingtang Co. received the same rating in 2020.Shougang Steel promotes green production manufacturingthroughout the entire value chain. It is the only steelenterprise to be awarded the title of national "IndustrialProduct Green Design Demonstration Enterprise". Thecompany was awarded the title of "double carbon BestPractice Energy Ef?ciency Benchmark DemonstrationPlant Cultivation Enterprise", awarded the "2022 IndustrialWastewater Recycling Pilot Enterprise" by the Ministryof Industry and Information Technology, and was namedone of the ?rst batch of "Zero Waste Enterprise" in Hebei
Province. In ful?lling our social responsibility, we havepromoted ultra-low emission advanced technologyand management experience, and have helped 35 ironand steel enterprises improve their environmentalperformance. We have deepened the construction of theLCA system, and established a "carbon management"information application platform, and the EPD platformof hot-rolled products has been successfully released.
13 12
Shougang Steel is the only high-end steel product supplier in the steel industryin China with independent brand (both electrical steel and automotive sheetbeing products of independent innovative technology). The company, leading intechnology and committed to green and low-carbon practices, is a manufacturerand service provider of metal soft magnetic materials and high-end metalmaterials. We provide industrial materials for national pillars, cooperate with top-level customers worldwide, and have a direct supply ratio of over 90%.ESW1230 and 20SW1200H, the ?rst electrical steel for new energy vehicles in theworld, were globally launched; 0.18mm thick and 1200mm wide grain-orientedelectrical steel CRC was developed ?rstly in the industry; breakthroughs wereachieved in mass production of ultra-high strength steel such as GA780MPa and980MPa; automotive outer sheet DP490+Z has been successfully localized; ultra-high carbon steel S100VD for valve discs was ?rst launched in China. ShougangSteel and Zhixin Co. were awarded the title of "National Intellectual PropertyAdvantage Enterprise".
Independent innovation,technology leadershipFocus 2
Steel production line for new energy vehicles
Global debut
electrical steel for newenergy vehicles ESW1230,
20SW1200H
Global debut ceremony of electrical steel fornew energy vehicles ESW1230, 20SW1200H
The output of key productsand strategic products totaledapproximately
13.9 million
tonnes, accounting for 63%.The output of three strategicproducts (electrical steel,automotive sheet, andtinplate(chromium)) totaled
5.71 million tonnes.
14 15
16 17
Shougang Steel is the ?rst listed company in China to introduce strategic investors, the ?rst listed company to issueshares through a combination of online and of?ine distribution, and the ?rst listed company to conduct public roadshows.For a long time afterwards, Shougang Steel provided a reference for companies planning to issue shares and playeda demonstrative role, providing assistance to the development of China's securities market. In 2010, according to theoverall planning of the State Council and the relocation and adjustment approval of the National Development and ReformCommission, Shougang's main process facilities in Beijing's Shijingshan District had ceased production.Shougang Steel continues to benchmark against world-class enterprises. Through capital operations, optimizing thecompany's equity structure, and leveraging the equity ?nancing function of listed companies, the company's debt-to-asset
1617
Listed on the ShenzhenStock Exchange, with atotal share capital of 2.31billion shares.
Injected in Qiangang Co., and thetotal share capital increased to
5.289 billion shares.
Shougang Group andBaowu Group completedthe transfer of equity withno cost of Shougang Steeland Baosteel.
Issued 1.235 billionshares to purchase
19.18% equity in
Jingtang Co. held byBeijing Investmentand Beijing Guorui.
Implemented theequity incentive plan,and the total sharecapital increased to
6.76 billion shares.
Issued shares topurchase the remaining49% equity in SteelTrading held by ShougangGroup, achieving 100%(direct + indirect)shareholding in JingtangCo.
Issued shares toraise supportingfunds, and thetotal share capitalincreased to 7.82billion shares.
Introduced 15 externalinvestors to increase thecapital of Zhixin Co. by2 billion yuan, and theequity ratio of Zhixin Co.held by Shougang Steelchanged to 68.0293%.
Issued 2 billion convertiblecorporate bonds to buildCold-R Co.
After the conversion ofconvertible corporatebonds issued byShougang Steel, the totalshare capital increasedto 2.97 billion shares.
Shougang Steel replacedShougang Group's 51% stake inJingtang Co. with its full stake inGuizhou Investment.
Exchange of 12.83%equity in BAIC heldby Shougang Steelwith 51% equity inSteel Trading held byShougang Group.
Introduced 6 externalinvestors to increase thecapital of Zhixin Co. by 1.7billion yuan, and the equityratio of Zhixin Co. held byShougang Steel changed to
82.77%.
Zhixin Co. absorbed andmerged Qian'an ElectricalSteel, and the equityratio of Zhixin Co. held byShougang Steel changedto 75.4%.
Acquired pellet-sinteringassets held by ShougangMining Corp. for cash.
1999.12
2014.042020.012021.042021.12
2022.042022.06
2022.112003.12
2007.122015.042020.062021.10
2022.05
2022.12
ratio has signi?cantly decreased, and asset quality and ef?ciency have greatly improved. The total share capital of thecompany has increased from 2.31 billion shares at the time of listing to 7.82 billion shares. The company has facilitatedthe integration and injection of high-quality assets, achieved an increase in the revenue and pro?t levels of the listedcompany's, further enhanced the company's performance, and strengthened its comprehensive competitiveness andsustainable development capabilities.Assets optimization, valueenhancementFocus 3
Building a steel listed company with internationalcompetitiveness and influence
18 19
：
Corporate Governance 20ESG Management 23Business Ethics 25Risk Management 28Investor Relations 31
20 21
Governance Structure
Shougang Steel has established a standardized and orderly corporate governance structure in accordance with therequirements of relevant laws, regulations, rules, and normative documents such as theCompany Law of the People'sRepublic of China, the Securities Law of the People's Republic of China, the Code of Corporate Governance for ListedCompanies,andListing Rules of Shenzhen Stock Exchange.We have also formed a governance mechanism characterized byclear and transparent rights and responsibilities, coordinated operation, and effective checks and balances, ensuring theef?ciency and compliance of corporate governance.
Shougang Steel always adheres to legal and compliant operaon, and connuously improvesthe scienfic nature of risk management and the effecveness of internal control. At thesame me, we establish the mechanism of communicaon with investors, enhance thelevel of informaon disclosure, and strictly enforce an-corrupon measures and promoteintegrity, making high-quality governance the cornerstone of the company's sustainabledevelopment.
The shareholders' general meeting, board of directors, supervisory committee, and management of Shougang Steelall perform their respective duties, highly coordinate, maintain effective checks and balances, and ful?ll their dutiesdiligently. They strictly operate according to decision-making authority and procedures, achieving positive synergy insetting directions, making decisions, supervising, and ensuring implementation. This fully safeguards the legitimate rightsand interests of the company and all stakeholders.
Shareholders' general meeting. The shareholders' general meeting is the supreme governing body of of the company. Itis convened and held in strict accordance with theArticles of Association, the Rules of Procedure for General Meetingsandrelevant regulations. All shareholders, especially small and medium shareholders, have equal rights and fully exercisetheir voting rights. In 2022, 5 shareholders' general meetings were held, and 22 proposals were passed after deliberation.
Corporate Governance Structure
60-70years old50-59 years old
Age
Professionalbackground
Metallurgy
Accounting
LawManagementFinancePosition40-49 years old
DirectorsIndependent
Directors
Diverse back-ground of board
of directors
Diverse background of board of directors
Board of directors. The company is committed to improving the diversity and independence of the board of directors.The board of directors consists of 9 directors, including 5 independent directors. These directors possess rich knowledgeand experience in various ?elds such as technology, law, ?nance, and management. For details of the expertise andskills of directors, please refer to the Corporate Governance section of the Annual Report 2022. The board of directorshas a sound decision-making mechanism and is responsible for exercising decision-making authority. It has establishedfour specialized committees: the Strategy, Risk and Compliance Management Committee, the Audit Committee, the
Audit CommitteeStrategy, Risk and Compliance Management Committee
Remuneration and Assessment Committee
Nomination Committee
SupervisoryCommittee
Shareholders'General MeetingBoard of Directors
Management Team
Remuneration and Assessment Committee, andthe Nomination Committee. The Audit Committeeand the Remuneration and Assessment Committeeare composed entirely of independent directors.Independent directors, based on their professionalexpertise, provide opinions on major matters suchas corporate strategy, standardized operations,management, and risk control, forming internalchecks and balances within the board of directors.In 2022, Shougang Steel held 11 meetings of boardof directors, 2 meetings of Audit Committee ,and 1 meeting of Remuneration and AssessmentCommittee. 65 proposals were passed afterdeliberation. The company was awarded the "BestBoard of Directors Award" at the 13th China ListedCompanies Investor Relations Tianma Awards, andChen Yi, the secretary of the board, was awardedthe "Best Secretary of the Board" at the 18th NewFortune Best Secretary Awards.
22 23
Supervisory committee. The supervisory committee consists of 5 supervisors, including 2 female supervisors and 2employee representative supervisors. The supervisory committee is responsible for supervising the company's ?nancialcondition, major matters, and the legal compliance of directors and senior executives, and providing independent opinionsand suggestions. In 2022, Shougang Steel held a total of 10 meetings of supervisory committee.Management team. The management team consists of 8 senior executives who have rich technical and managementexperience. The management team is capable of ?exibly responding to market changes, taking corresponding measures,and implementing effectively.In 2022, Shougang Steel continued to deepen standardized operations and strengthen scienti?c corporate governance.The company has formulated 48 systems such asAuthorization Management System of the Board of Directors to ManagersandCompliance Management System,and revised 78 systems such asRules of Procedure of the Board of Directors and FundsManagement System. Information Disclosure
According to relevant laws, regulations, rules, and normative documents,and in accordance with the requirements of the Shenzhen Stock Exchange,Shougang Steel actively ful?lls its obligation to disclose information, ensuringtimely and fair disclosure of information and ensuring that the disclosedcontent is true, accurate, and complete. We have established a regular internalreview process for information disclosure to eliminate any false records,misleading statements, or signi?cant omissions, and continuously improvethe ef?ciency and quality of information disclosure. We comprehensively andef?ciently convey the company's management and business developmentinformation to investors, and safeguard the legitimate rights and interests ofinvestors. In 2022, based on the rules of high-quality mandatory informationdisclosure, the company increased the voluntary disclosure of key concernsof domestic and foreign investors and the capital market, such as corporatestrategy, production and operation, green production, employee rights,and supply chain management, continuously enhancing the quality andtransparency of information disclosure.The company timely discloses information through China Securities Journal,Shanghai Securities News, Securities Times, Securities Daily, and CNINFOWebsite, which may have a signi?cant impact on investor decisions andstock prices, fully disclosing potential risks. In 2022, the company completed55 information disclosures and submitted 396 documents to the ShenzhenStock Exchange. The company achieved a 100% accuracy rate in informationdisclosure and was awarded the "Best ESG Disclosure Award" at the 18th NewFortune Awards.
information disclosures
100%accuracy rate ininformation disclosure
"Best ESG Disclosure Award"
Stakeholder Communication
Shougang Steel respects the demands of stakeholders and establishes a regular communication mechanism withstakeholders based on the principles of integrity, interaction, equality, and transparency. We fully understand the demandsand suggestions of all parties and actively respond through multiple channels, ensuring the stakeholders' right to know,to participate and to supervise, and maximizing the comprehensive value of stakeholders.During the reporting period, we regularly record, measure, and review the communication between the companyand stakeholders. We improve the communication mechanism in a timely manner based on stakeholders' feedback,continuously enhancing the effectiveness and timeliness of communication with stakeholders. The main issues of concernto stakeholders and the company's communication methods are as follows:
StakeholdersExpectationsCommunication and Response
Shareholders and Investors
? Corporate governance? ESG management? Anti-corruption? Compliance management? Risk management? Business ethics? Climate change response
? Annual general shareholders meeting
/ extraordinary general shareholdersmeeting? Performance brie?ng? On-site investigation? Investor communication (Interactive
Easy Platform, etc.)? Information disclosure
Employees
? Diversity and equal opportunities? Employee compensation and bene?ts? Employee care and satisfaction? Employee career development andtraining? Occupational health management? Work Safety management
? Employee representative conference? Various employee activities? Meetings and training? Employee performance assessment? Shougang Sincere Friend app? Employee satisfaction survey
Customers
? Product quality management? Information security and privacy
protection? Quality service and complaint handling? Responsible marketing? Technological innovation? Green products
? Customer satisfaction survey? Customer on-site representative? Green productionSuppliers? Responsible supply chain
? Supplier quali?cation audit? Industry communication? Exchange and visit
Government and regulatoryagencies
? Serving national major strategies? Environmental management system? Energy management? Water resource management? Wastewater discharge? Waste gas emission? Waste disposal? Biodiversity
? Daily communication and reporting? On-site surveys? Information disclosure? Compliance with laws, regulations, and
policy learning? Acceptance of regulatory inspections
Community organizations,non-governmentalorganizations
? Public welfare activities
? Public welfare activities? Information disclosure
Industry partners, industryassociations, and researchinstitutions
? Industry development and win-win
cooperation
? Industry communication? Establishment of joint laboratories
Media? Information disclosure
? Timely disclosure of important
information, news
? Acceptance of media interviews
Issue Communication and Response
Best Board of Directors Award18th New Fortune Best Secretary Awards
24 25
Materiality AnalysisShougang Steel conducted materiality analysis, referring to the GRI's recommendations on dual materiality analysisof important issues, and combining the company's business characteristics to identify the most important sustainabledevelopment issues for the company as important references for ESG management and information disclosure.
Assessment Matrix
Material Issues ListHighly important issuesClassi?cationNo.Issue
Environment
1Environmental management system
Energy management
Water resource management4Wastewater discharge5Waste gas emission6Waste disposal7Green products9Climate change response
Society
11Employee compensation and bene?ts12Employee care and satisfaction
Employee career development and
training15Work Safety management
Product quality management
Quality service and complaint
handling20Technological innovation21Responsible supply chainGovernance
25Corporate governance27Business ethics29Compliance Management30Risk management31Information disclosure
Moderately important issuesClassi?cationNo.Issue
Environment8Biodiversity
Society
Diversity and equal
opportunities
Occupational health
management
Information security and
privacy protection19Responsible marketing
Industry development and
win-win cooperation23Public welfare activities
Serving national major
strategiesGovernance
26ESG management
Anti-corruption
Issue identification：Based on international initiatives
and standards, relevant domestic policies, industrytrends, stakeholder concerns, and company developmentgoals, 31 highly relevant issues were identi?ed.
Issue impact analysis: For the identi?ed highly relevantissues, a risk-based approach was used to evaluate theactual and potential impact of these issues on ShougangSteel, as well as the impact of Shougang Steel on theseissues.
Stakeholder survey:Online questionnaires and on-
site surveys were conducted for key stakeholdersto understand the important issues of concern tostakeholders.Issue assessment:Based on the results of the issue
impact analysis and the level of stakeholder concern,the importance and priority of ESG issues were ranked,con?rming 21 high material issues, which are also thefocus of the company's risk management.
Determine the report boundaries:Based on the
identi?ed material issues, the focus of this report hasbeen determined.
Shougang Steel conducts business cooperation with a professional, honest, and integrity attitude, strictly adhering to thehighest standards of business ethics to ensure integrity in operations. We respect the principles of market competitionand actively promote and maintain a fair and free market competition environment. We ?rmly oppose any form of unfaircompetition, monopoly, and money laundering, and carry out comprehensive management in areas such as anti-monopolyand anti-money laundering. We value and continuously cultivate an integrity corporate culture, ?rmly resisting any formof corruption, and are committed to creating a healthy business ecosystem. In 2022, the company did not receive anypenalties related to business ethics. Integrity Construction
The company attaches great importance to integrity and anti-corruption, and adopts a zero-tolerance attitude forcorruption, fraud, and other non-compliant behaviors. We focus on anti-corruption, con?icts of interest, and unfaircompetition, strengthen the integrity education of personnel with business disposal rights, and regulate their professionalconduct. We strengthen the supervision and accountability mechanism, maintain integrity in production and businessactivities, and regulate the behavior of partners, suppliers, and employees in relevant positions.
Integrity risk prevention and control. The company has established ?ve mechanisms: responsibility implementation,education and guidance, early warning prevention and control, supervision linkage, and punishment and control. Thecompany has built a "?ve-in-one" inherent integrity risk prevention and control management system with Shougangcharacteristics, achieving accurate identi?cation and effective control of integrity risks, and creating a clean and uprightworking environment.
Responsibilityimplementationmechanism
Education and
guidancemechanism
Early warningprevention and
controlmechanism
Supervision
linkagemechanism
Punishment and
controlmechanismLeadershiporganization
Accountabilitymechanism
Integrityeducation
Integrity culture
construction
Keybusinesssupervision
Systemconstruction
guarantee
Disciplineinspection and
supervision
Joint meetingfor supervision
work
Disciplinarysupervisionand deterrence
Integrityregulatory
Don't want to corruptCan't corruptDon't dare to corrupt
"Five-in-one" inherent integrity risk preventionand control management system framework
The company has built a closed-loop management system for integrity risk identi?cation, hierarchical control,investigation and governance, education and supervision, and punishment and recti?cation throughout the entire chain.The company has formulated a comprehensive, speci?c, and quantitative indicator evaluation system. We continuouslyimprove the supervision mechanism, implement the system of sending discipline inspection and supervision to differentregions and the joint meeting system for supervision work, and carry out special supervision on integrity risks. We identifyintegrity in key areas, key links, and key businesses throughout the entire process, and carry out multi-departmental,cross- specialty, and full-chain joint prevention and control. We also construct a database of clean and honest behaviorsfor relevant personnel and parties, sort out key business processes and integrity risk points for relevant personnel,evaluate the level of integrity risks, and formulate prevention and control measures and preventive supervision measures.
Importance to StakeholdersImportance
Importance to Shougang Steel's Development
High
Hig
| h |
Low
26 27
We strengthen supervision for positions with highintegrity risks and long tenure, promote job rotationfor personnel with business disposal rights, and carryout education and training on "integrity conduct",hierarchical talks before taking of?ce, and warnings onintegrity self-discipline, etc.Integrity culture construction. The companyincorporates anti-corruption education and traininginto important work deployments and corporate cultureconstruction, determining different education contentand methods based on different levels, positions, andtargets.
Key educationUniversal education
Theme educationExemplary education
Solving problemsLearning theory
Traditional educationNew media education
0102
0304
Fourcombinations
Integrity education system? Universal education:The company organized activities such as "three meetings and one lesson", independenteducation and learning, thematic study and seminars. We also carried out special education on party disciplineand government integrity laws and regulations, and published 10 issues ofCartoon on Disciplineand 10 issues ofFamous People's Family Style.? Key Education:Focused on important time nodes, key business processes, and major work matters, we
conducted warning education through joint education, joint inspections, and other forms. We ensure thatdiscussions are held before taking up a position, in case of petitions or complaints, when early signs of problemsare discovered, and before holidays and major business activities.
A forum on integrity construction before the Mid-Autumn Festival was held
Integrity training
? Theme Education: The company organized activities such as "My Family Rules and Traditions" "DisciplineEducation Around Us" "Jingtang Ethics" and integrity conduct essay competition. The "Integrity Culture Month"was carried out, including organizing exhibitions on family traditions, signing integrity and ethical pledges,telling "family ethical stories", conducting "clean and friendly assistance" activities, and holding integrityculture knowledge competitions. We also carried out activities for the disciplinary education propaganda month,including visits and research by leading cadres, supervision and inspections, and reminder conversations.
Integrity Culture Month
Training course for young cadres titled "Promising Youth, Ethical
Companions"
Warning education
? Exemplary education: The company summarized and established advanced examples of diligence, integrity,and excellence through activities such as exemplary report meetings, experience exchange meetings,storytelling of "integrity stories," and organizing training courses for young cadres titled "Promising Youth,Ethical Companions". Additionally, we conducted warning education activities such as typical cases of violationsof discipline and law learning, visits to Nangang Prison in Jidong Sub-bureau, and warning education activitiesat the Beijing Warning Education Base.
? New media education: The company expanded the in?uence of propaganda and education through enriching
the content of the "Integrity Construction" column and organizing exhibitions on integrity culture.
Activities for the disciplinary education propaganda month
28 29
Due diligence. The company has carried out thorough and practical due diligence on new business partners, focusing onfactors such as corruption and bribery. During the bidding and quali?cation review process, we review the new businesspartners' illegal and criminal information, credit information, etc. At the same time, we require new business partners tostrictly comply with national laws and regulations and company requirements, ensure no bribery or integrity issues, andmake an integrity commitment.
Reporting and investigation. The company supports and protects whistleblowers and has established an open,transparent, and accessible reporting channel. The procedures for investigating violations are clearly de?ned. During theveri?cation process, the identity of the whistleblower and the information provided will be strictly con?dential to preventretaliation. We attach great importance to the authenticity and credibility of the reported information. Upon receivinga complaint, we promptly collect and organize the information and conduct further investigations if necessary. Onceviolations of discipline, regulations, or laws are con?rmed, the company will propose corresponding disciplinary measuresand transfer suspected criminal cases to the relevant authorities.
Compliance OperationAccording to the international compliance management system standards, Shougang Steel has de?ned compliancepolicies and objectives, improved the compliance management organizational structure and responsibilities,comprehensively reviewed the compliance risk database, formulated compliance operation and guarantee mechanisms,and evaluation and improvement management systems, and established a complete compliance management systemwith Shougang Steel characteristics. In 2022, the company modi?ed the strategy and risk committee to strategy, risk, andcompliance management committee to strengthen compliance management.Institutional system. The company strengthens the top-level design of the compliance management system and builds acompliance management system that takes the basic management system as the core, supported by special managementmethods and guidelines for key areas. It contains "laws and regulations identi?cation list" "compliance obligation list"and "compliance risk measures list", and combines positive guidance with negative lists. This provides basic guidelinesfor the company's units, employees, and stakeholders, and guides and promotes the company to operate in compliancewith laws, with integrity and in a standardized and rigorous manner. In 2022, the legal review rate for both the system andcontracts reached 100%.
Risk Management
Shougang Steel has established a strict, standardized, comprehensive, and effective risk control systems, promoted theconstruction of risk special governance and risk warning indicator systems, and continuously optimized and improved theinternal control system construction. Thereby, the effective integration of risk control and compliance systems is ensured,and "strengthening internal control, preventing risk, and promoting compliance" is achieved.Institutional system. The company has formed a risk control system consisting of risk control management system,risk control manual, and risk control evaluation manual. In 2022, the company formulated theRisk Control ManagementSystem, optimized and adjusted theRisk Control Manual, guided the subsidiaries to carry out internal control systemconstruction, strengthened the control of key business of subsidiaries, and achieved full coverage of risk control systemsfor Shougang Steel's wholly-owned and controlling subsidiaries.
Management structure. The company implements risk classi?cation and hierarchical management, builds a sound
risk management structure, and establishes three risk defense lines to ensure the closed-loop of risk control andcompliance management mechanism. The three risk defense lines are composed of business units and businessentities, risk management function departments, and the internal audit department. In addition, we have integratedESG risks, including safety production management, environmental protection management, energy management, andemployee rights protection management, into our existing risk control system, demonstrating our commitment to socialresponsibility.
? First line of risk defense: Business units and business entities.? Second line of risk defense: Risk management department and the strategy, risk, and compliance managementcommittee under the board of directors.? Third line of risk defense: Internal audit department and the audit committee under the board of directors.
Risk management process. The company continuously optimizes the risk management process, establishing acomprehensive mechanism that involves all staff, covers the whole process, and integrates the entire system forrisk prevention and control. The risk management processes include risk information collection and identi?cation,risk assessment, risk response strategies formulation, proposal and implementation of risk management solutions,supervision and improvement of risk management, and risk management reporting. In addition, Shougang Steel hasestablished a multi-disciplinary collaborative inspection mechanism, focusing on key areas to carry out integrated jointsupervision, inspection, and evaluation, improving the effectiveness of supervision and the implementation of internalcontrol system.
Major risks and early warning. The company organizes annual identi?cation of major risks, and determines and
implements major risk control projects. The company continuously improves the risk warning indicators system, andoptimizes the functions of the risk warning platform, achieving comprehensive dynamic early warning coverage in ?vemajor areas including strategy, market, operations, ?nance, and law.
Compliance and risk control culture construction. The company continuously fosters a corporate culture of compliancemanagement, enriches the channels for promoting risk control culture, and enhances employees' risk preventionawareness and level of risk management.Compliance Management System
5 supporting systems4 key areas of specialcompliance regulations
3 basic managementsystems
Management Measures for Compliance
Objectives and Policies,
Methods for Compliance Risk Identification,
Evaluation, and Control, Management Measures
for Compliance Monitoring and Reporting,
Management Measures for Compliance Internal
Audit,
Management Measures for Compliance
Management Review
Management Measures for Work SafetyCompliance Audit,Guidelines for Environmental ProtectionCompliance Management,Management Measures for CommercialPartner Compliance in Procurement,Guidelines for Asset ComplianceManagement
Compliancemanagementsystem manual,Compliancemanagement system,Compliancemanagement manual
Compliance measures. The company implements the main responsibility
for compliance management. The company focuses on key core businessesand high-risk businesses, and strengthens the responsibilities of businessdepartments, operating units, and project frontline entities. We strictlyobserve compliance requirements in business decision-making process, andensure that legal compliance review is a prerequisite for major decisions. In2022, based on compliance interviews, risk matrix, and external regulatoryrequirements, Shougang Steel identi?ed key compliance risk points in areassuch as safety production, environmental protection, business partnermanagement, and assets management. Meanwhile, we completed key worksuch as basic research on compliance management, formulation of specialmanagement systems, laws and regulations lists, and compliance obligationlist databases.
The rate of legal review of systemand contract:
100%Nomajor non-compliantincidents such as legal sanctions,regulatory penalties, signi?cantproperty losses, and reputationdamage
On June 14, 2022, Shougang Steel organized a conference on the promotion of compliance systemconstruction to promote the establishment of the compliance management system, ensuring that all workhas legal and regulatory basis. At the meeting, the Chief Compliance Of?cer explained and promulgated theCompliance Management Manual. The managers took the lead in signing the compliance commitment letter.The investment management department spoke on behalf of the department responsible for compliance, andconducted training on "Experience Sharing in Compliance System Construction".
Case: Compliance System Construction Promotion Conferenceand compliance training were held
30 31
Tax Risk ManagementCompliance with tax laws is the most basic social responsibility of enterprises. The company has established acomprehensive tax management system and an effective tax risk assessment and evaluation mechanism, providing pre-warning, in-process control, and post-assessment of tax risks. The company regulates the entire process management oftax-related accounting, declaration, monitoring, evaluation, forecasting, and reporting. By formulating tax managementmeasures, enhancing training and learning, and improving invoice management, we strengthen tax managementfoundation, thereby strengthening enterprise tax risk management and actively preventing tax risks. In addition, thecompany regularly evaluates the performance of compliance with national tax regulations and internal tax managementsystem requirements involved in daily business operations.The company ?rmly opposes tax corruption, ful?lls tax obligations with integrity, transparency, and cooperation, and keepsa good and professional cooperative relationship with local tax authorities. In 2022, there were no major tax violations. Wepromise:
? We adhere to tax laws, ful?ll tax declaration obligations, and follow the principle of transparent interaction withgovernment departments to carry out work.? We disclose tax information to the public in accordance with the principle of transparency. Financial statementsand audit reports include relevant information such as deferred income tax assets, liabilities, corporate taxes,and tax rates.? We actively respond to tax policies, promote the development of businesses encouraged by the government, andenjoy tax bene?ts.
Business Continuity ManagementShougang Steel attaches great importance to business continuity management, and optimizes and improves the businesscontinuity system and process. The company establishes a sound mechanism for dynamic identi?cation and assessmentof business continuity risks, and forms a hierarchical business continuity management organization system with the boardof directors, supervisory committee, management team, risk management department, and other risk managementbusiness units as the main body. The company has speci?c risk control management personnel and establish a businesscontinuity management operating system with clear responsibilities, standardized processes, hierarchical management,and coordinated collaboration.For critical areas such as procurement, marketing, and accounting that may affect the company's business continuity,relevant professional management departments collect relevant information in a timely manner, assess businesscontinuity risks, determine risk management strategies based on actual business, and propose and implement riskmanagement measures.
Information Security
Shougang Steel attaches great importance to data and privacy security. In order to protect the con?dentiality, integrity,and availability of information systems, equipment, and data, and strictly protect the security bottom line in all aspects,we have established a sound information security system and corresponding management measures, and continuouslyimprove our technical capabilities in the ?eld of information security. In 2022, the company was awarded the title ofAdvanced Unit in Network Security Work in Shijingshan District for the Beijing Winter Olympics and Paralympics.
The company attaches great importance to information security incidentmanagement and business continuity management, and is committed toprotecting the company's core assets and customer information security.We effectively reduce the risk of customer interests being damaged dueto the lack of business continuity through the construction of institutionaldocuments, the establishment of a security warning and noti?cation system,the implementation of security protection, security situation management,emergency drills, and other means. In 2022, there were no customer privacybreaches.Institutional system. In 2022, the company has formulated institutionaldocuments such as theInformation Security Strategy Management Systemand Information Security Incident Management Measures, which clarify theclassi?cation, grading, and response processes of information securityincidents, stipulate procedures such as security assessment managementand emergency plans, and provide guidance to carry out informationsecurity management systematically. Combined with audits and evaluationsof information security management system, we achieve comprehensivesupervision of the company's information security. In 2022, Shougang Steelformulated and implemented theIndustrial Control System InformationSecurity Management Measures, which stipulates emergency exercises, datasecurity, whitelist protection mechanisms, and other content. Additionally, weconducted emergency drills at six integration levels and two business levels.
Awarded the title of Advanced Unit inNetwork Security Work in ShijingshanDistrict for the Beijing Winter Olympics
and Paralympics in 2022
Organizational structure. Shougang Steel has established a three-level
information security management organizational structure, consisting of theNetwork Security and Informatization Committee, the Network Security andInformatization Of?ce, and information security responsible persons at variouslevels. The company holds monthly informationization meetings organized bythe company's responsible managers to coordinate the overall network securitywork and supervise the implementation of various tasks. Information securitymanagement covers the following areas: network security, host security, terminalsecurity, data security, application security, and security management.
Training. The company continues to carry out training and promotion work inthe ?eld of information security. We provide general information security trainingfor all employees and specialized awareness and skills training for personnelengaged in information security-related work on a regular basis. In 2022, thecompany organized a series of activities such as the Capital Network Security Dayon April 29th, Software Legalization Knowledge, and National Network SecurityAwareness Week, and organized employees to participate in network securitytechnology training and competition activities.
Information security management system organizational structure
Network Security and Informatization Committee
Specializeddepartment
Information securityresponsible persons
Operation and Maintenance Teamof Beijing Shougang AutomationInformation Technology Co., Ltd.
Network Security andInformatization Of?ce
Qiangang Co. completed the re-cerficaon of the informaonsecurity management system,and the assessment resultshowed that the system is runningeffecvely. Zhixin Co. completedthe cerficaon of the informaonsecurity management system forthe frist me.
Shougang Steel attaches great importance to investor relations management,continuously optimizes investor communication mechanisms, and strengthenscommunication with investors and potential investors. Through holding company'sperformance conference, actively participating in investment strategy meetingsorganized by securities ?rms, and other forms, the company showcases itsoperating conditions to investors. Through forms such as the Shenzhen StockExchange Interactive Easy platform, investor hotline, and on-site surveys, thecompany listens to and responds to investor questions, safeguarding investors'right to know, to participate, to express, and to supervise.In 2022, in order to have real-time interactive communication with investors,Shougang Steel held the Annual 2021 and Q1 2022 Performance Brie?ng throughvideo live streaming and online interaction. The company also held semi-annualand Q3 2022 Performance Brie?ngs through the "Online Performance Brie?ng"and "Speci?c Investor Performance Brie?ng" formats. The company's seniormanagement interacted with small and medium investors on the PanoramaNetwork studio to discuss the company's operating results. The companycontinued to carry out roadshow activities and had one-on-one or one-on-manyexchanges with over a hundred investment institutions to promote ShougangSteel's investment highlights to investors. We actively respond to investorconcerns, and answered a total of over 600 questions covering electrical steel,?nance, capital operations, industry development, and other aspects, ensuringsmooth communication channels between the company and investors.
In 2022, Shougang Steel'spracce was successfullyselected as the "ExcellentPracces in InvestorRelaons Management ofBeijing Listed Companies"by the Listed CompaniesAssociaon of Beijing.
100%software legalizationcommitment signing rate100%coverage of informationsecurity management systemauditor training
people obtained thecerti?cation of information securitymanagement system internalauditors
32 33
Environmental Management 34Ultra-low Emissions 37Circular Economy 39Low-carbon Development 44Green Products 50Biodiversity 52
Special topic: Circular development,Jingtang Co. builds an"industrial resourcecomprehensive utilization base"and aprovincial-level"zero waste factory"
34 35
Environmental Management Certi?cationShougang Steel has obtained ISO14001 environmental management system certi?cationin accordance with the requirements of GB/T24001-2004 Environmental ManagementSystem, with a certi?cation rate of 100%. The company has also invited third-partyorganizations to conduct annual supervision audit of the environmental managementsystem, focusing on improving the level of environmental management. Environmental Investment and PerformanceDuring the reporting period, Shougang Steel invested a total of 1.122 billion yuan inenvironmental protection, carried out a number of key environmental improvementprojects, further reduced pollutant emissions, and effectively improved the ecologicalenvironment in and around the plant. At the same time, the company strengthenedenvironmental publicity and education, actively carried out environmental training onspeci?c topics, enhanced environmental awareness, and achieved a training coveragerate of 100%.
Shougang Steel has earnestly implemented Xi Jinping's ecological civilizaon ideology, and acvely pracced this new developmentconcept. The company has taken green development as its core strategy and dufully pursued the path of green and low-carbondevelopment. By vigorously advancing the technological innovaon of energy conservaon and carbon reducon, connuouslyimproving the level of ulmate energy efficiency, acvely promong the use of clean energy, deepening the construcon of carbonemission control system, vigorously developing green and low-carbon products, to construct a pattern of green and low-carbondevelopment framework, we have demonstrated the responsibility and commitment of state-owned enterprises with praccalacons, and contributed to the response to climate change and the improvement of ecological environment quality.The company is the first enterprise to realize ultra-low emissions throughout the enre process. We have been rated as the "GradeA" enterprises in environmental protecon performance evaluaon for consecuve years and the benchmark enterprise for greendevelopment in the steel industry, and have built a naonal-level "Green Factory", green supply chain management enterprise,and environmentally creditworthy enterprise, playing an important role in demonstrang green development in the steel industry.During the reporng period, the company was awarded honorary tles such as "Industrial Wastewater Recycling Pilot Enterprise""Industrial Product Green Design Demonstraon Enterprise" by the Ministry of Industry and Informaon Technology, and "doublecarbon Best Pracce Energy Efficiency Benchmark Demonstraon Plant Culvaon Enterprise".
Environmental Management Structure and System
NO.Project
Investment(RMB10,000)
E?ect
Zhixin Co. Annealing Furnace Environmental Denitri?cationModernization Project.
2,500.0
Control NOx Emissions.
Qiangang Co. Hot Rolling Heating Furnace Denitri?cation FacilityAddition Project
3,499.0
Control NOx Emissions
Qiangang Procurement Center Dry Mist Dust Suppression in GreenRecycling Industrial Park Project
1,445.0
Control Dust Emissions
Qiangang Procurement Center New Electric Dust Removal And Fan forthe Primary Line of Desulfurization in Green Recycling Industrial ParkProject
1,490.0
Control Dust Emissions
Qiangang Co. Ironmaking Operation Department BF No. 1 Hot StoveFlue Gas Treatment Project
8,990.1
Control Pollutant Emissions
Qiangang Co. Steelmaking Operation Department No. 1 SteelmakingSleeve Kiln Raw Material Unloading and Loading Mode OptimizationProject
2,185.0
Control Disorganization
7
Qiangang Co. Ironmaking Operation Department BF No. 2 Hot StoveFlue Gas Denitri?cation Treatment Project
3,698.9
Control Pollutant Emissions
8
Qiangang Co. Ironmaking Operation Department BF No. 3 Hot StoveFlue Gas Treatment Project
8,207.7
Control Pollutant Emissions
9Sintering Plant Lime Kiln Denitri?cation2,684.0 Control NOx Emissions10Installing Cover on the Torpedo 1,126.0
Control Pollutant Emissions
11Installing Denitri?cation Systemfor Lime Sleeve Kiln2,954.0 Control NOx Emissions12Secondary Closure of Conveyor Belt2,918.0
Control Disorganization
Key environmental protection projects of the company in 2022
1.122
billion yuan invested in environmental protection,100% training coverage rate
Shougang Steel strictly complies to the requirements of various legal, regulatory, and normative documents includingtheEnvironmental Protection Law of the People's Republic of China, Environmental Impact Assessment Law of the People'sRepublic of China, Air Pollution Prevention and Control Law of the People's Republic of China, Water Pollution Prevention andControl Law of the People’s Republic of China, Opinions on Promoting the Implementation of Ultra-low Emission in the Ironand Steel Industry, Ultra-low Emission Standards for Air Pollutants in the Iron and Steel Industry,andRegulations of HebeiProvince on Ecological and Environment Protection.The company has established a robust environmental managementsystem, crafting and continually improving systems for environmental protection, energy management, water resourcesmanagement and emissions management.The company continues to maintain ongoing supervision and management, methodically crafting environmentalsupervision work plans. During the reporting period, a total of 2,298 environmental supervision inspections wereundertaken. Through follow-up assessments and similar approaches, all identi?ed issues from these inspections weresuccessfully addressed within the required time frame.
The third levelisthe EnvironmentalProtectionDepartments ofeach subsidiary,responsible forthe construction,management,and monitoringof the localizedenvironmentalprotection system.
The
first levelisthe EnvironmentalProtection LeadershipGroup. It is responsiblefor the company'scomprehensiveenvironmentalmanagement work,studying majorenvironmental issueswithin the company,making decisions,coordinating and solvingimportant environmentalproblems.
The second levelis the EnvironmentalProtection Department. It is responsiblefor developing and enhancing thecompany's environmental managementsystem, structure and goals. Additionally,this department oversees themonitoring, inspection, and evaluationof the company's environmentalmanagement effectiveness. Thisdepartment coordinates effortsat enhancing the performance ofeach subsidiary, thus ensuring theircompliance with legal requirementswhen conducting environmental impactassessments on construction projects.
Shougang Steel's environmental management system consists of three tiers:
36 37
100%compliance rate forenvironmental standardsregarding pollutants100%synchronous operation rateof environmental protectionfacilities
During the reporting period, the company achieved the emission standards for allpollutants, with a 100% compliance rate for environmental standards regardingpollutants, a 100% synchronous operation rate for environmental protection equipmentand facilities, and no occurrences of major environmental or other signi?cant socialsafety issues. The emissions of particulate matter, sulfur dioxides, and nitrogenoxides were signi?cantly lower than the permitted emissions. The water recycling andreuse rate reached 98.73%. The chemical oxygen demand in wastewater dischargewas much lower than the permitted discharge. All solid waste was either utilized ordisposed of through commissioned processing.Shougang Steel Environmental Targets/Permitted Emissions and Actual
Emissions in 2022IndicatorsUnits
Actual Emissions in
2022
2022 Targets/PermittedEmissionsNitrogen oxidesemissions
Tonne5,22610,105Nitrogen oxidesemissionsemissions
Tonne2,2124,727Chemical oxygen demand emissions
Tonne17.87648.99Comprehensiveutilization rate of solidwaste
%99100 Environmental Warning and Emergency Mechanism
Based on the Shougang Steel's environmental management system, Qiangang Co., Jingtang Co., Cold-R Co., and ZhixinCo. have formulated emergency plans for sudden environmental accidents and special emergencies such as air and waterpollution, further improving their emergency response capabilities for air pollution, water pollution, and hazardous waste.During the reporting period, in accordance with the requirements of the plan, Jingtang Co. implemented 25 emergencydrills, including oil leakage emergency drills, oil sludge leakage emergency drills, and radiation accident emergencydrills, to improve the skills of preventing and dealing with sudden environmental pollution accidents and enhancepractical capabilities. Qiangang Co. established an emergency command center and established emergency organizationsand emergency expert groups to carry out environmental emergency drills 22 times, mainly targeting risks such asacid leakage and gas leakage. Zhixin Co. has enhanced its emergency response capabilities for sudden environmentalincidents through drills, timely problem identi?cation, and recti?cation.
Qiangang Co. has established an emergency command center and established emergency organizationsand emergency expert groups, to unify command and coordination of prevention, disposal, and rescueof sudden environmental incidents. According to the warning level issued by the emergency commandcenter, corresponding emergency response measures are initiated, and the warning level is divided intoworkshop level, enterprise level, and social level. Each emergency team adopts appropriate emergencyresponse measures according to different levels of emergency response. In 2022, a total of 22 environmentalemergency drills were conducted, which strengthened the response capability of the company's emergencycommand center, better tested the emergency response level of personnel in the event of an accident,and further strengthened the optimization of on-site emergency response plans and emergency responsecapabilities.
Case: Qiangang Co. improves emergency response capabilities through drills
Emergency drill
Shougang Steel takes the lead in exploring and practicing ultra-low emissions and is the ?rst steel enterprise to achieveultra-low emissions in the whole process, making ultra-low emissions in the steel industry possible and playing ademonstrative and leading role. Green Leadership, Achieving Ultra-low Emissions ComprehensivelyIn 2019, against the background of winning the battle against air pollution, the Ministry of Ecology and Environment issuedtheOpinions on Promoting the Implementation of Ultra-low Emission in the Iron and Steel Industry,marking the beginning ofultra-low emissions in the steel industry. In the absence of any experience in implementing ultra-low emissions for steelenterprises, Shougang Steel closely followed the policy guidance, made advanced plans, and organized meticulously.Following the concept of source control, process control, and end treatment, a series of modernizations were carried out,including organized emission locations achieving stable ultra-low emissions, integrated management of unorganizedemissions control, and clean transportation methods. Multiple ?ue gas treatment technologies were developed andintroduced. On January 7, 2020, Qiangang Co. became the ?rst company in the country to pass the ultra-low emissionassessment and monitoring organized by the Ministry of Ecology and Environment, successfully creating a model of agreen steel company.
In 2022, the company's "Exploration and Practice ofRe?ned Environmental Management Based on Ultra-low Emissions Technology" project was awarded the?rst prize of the 36th Beijing Enterprise ManagementModernization Innovation Achievement by the BeijingEnterprise Management Modernization InnovationAchievement Appraisal Committee.
Measures such assource control, processcontrol, and endtreatment were takento strengthen sourcecontrol of harmfulsubstances such assulfur in materialsand fuels and enhanceorganized emissionlocations control.
For unorganizedemissions, a series ofupgrades were carriedout, including enclosingstockyard and materialtransportation beltcorridors.
A complete list ofunorganized emissionsources in the entireplant area wasestablished to achievereal-time onlinemonitoring and keycontrol of more than 400key pollution sources.
Data collection andanalysis were integratedusing advancedtechnologies suchas big data and AI toachieve automatedoperation and intelligentcontrol of environmentalprotection systems.
38 39
Pursuing Excellence, Improving ContinuouslyShougang Steel continues to promote strict and precise environmental control, tap into the potential for environmentalimprovement, and ensure a continuous and stable reduction in pollutant emissions. In 2022, the company's particulatematter, sulfur dioxides, and nitrogen oxides emissions per tonne of steel were signi?cantly lower than the industryaverage and the national level of clean production. Among them, Qiangang Co.'s particulate matter, sulfur dioxides, andnitrogen oxides emissions per tonne of steel decreased by 45.5%, 66.7%, and 74.3% respectively compared to 2018.
Technological Output, Contributing Shougang's WisdomQiangang Co. has won 6 provincial and ministerial-level (industry) scienti?c and technological progress awards (including3 ?rst prizes) for its achievements in ultra-low emissions. The company has also participated in establishing and revising13 industry and group standards, as well as a series of replicable and promotable ultra-low emission control technologiesand management experiences. We have conducted benchmark training, experience exchanges, and hosted large-scaleconferences such as Hebei Province's steel company for "Grade A" performance benchmark training and national steelindustry ultra-low emission and assessment monitoring seminars, assisting 35 iron and steel enterprises in improvingtheir environmental performance and contributing Shougang's intelligence.
Shougang Steel employs a three-tier energy management system, encompassing the parentcompany, functional departments, and various subsidiaries. The Energy Leadership Groupis responsible for the overall energy management of the company. The Energy Departmentestablishes and improves energy management systems and is responsible for organizing,supervising, inspecting, and coordinating daily energy management. The energy departmentsof each subsidiary are engaged in the localized construction, management, and monitoring oftheir respective energy systems.Qiangang Co., Jingtang Co., and Cold-R Co. have successively established and implementedenergy management systems that comply with national standards (GB/T23331). They havealso obtained energy management system certi?cation from China Classi?cation SocietyCerti?cation, with a certi?cation rate of 100%.In recent years, the company has adhered to the philosophy of circular development andcontinuously improved the ef?ciency of the system through plan, do, check, act (PDCA) as thebasic method, greatly improving the energy ef?ciency.Assisted 35iron and steel enterprises inimproving their environmental performanceand contributing Shougang's intelligence
Qiangang Co.'s pollutant emissions per tonne of steel have been decreasing year by year (Kg/t-crude steel)
Certification
Rate
Energy management system
certi?cation
Water recycled rate exceeded
98.73%
, Utilization rate of industrial solid wasteapproached100%
,)
Water supply pump
PretreatmentSeawater
intakeDirect coolingflow of power
stationSeawaterdesulfurization
Seawater
drainage
Booster pump300MW powergenerationPrecision desalinationVarious users
Seawaterdesalination
Brine is sent tonearby salt fieldsfor alkali making
Schematic diagram of seawatercomprehensive utilization process
滵澳滷滵澳滹滵澳滻滵澳滽滶澳滵滶澳滷滶澳滹滶澳滻
滷滵滶滽滷滵滶滾滷滵滷滵滷滵滷滶滷滵滷滷
Particulate matterSulfur dioxideNitrogen oxides
Jingtang Co. has independently developed the"water and electricity symbiosis" technologybased on seawater desalination. This technologyreplaces the condenser of the power generationturbine with a thermal seawater desalinationdevice, directly coupling the steam turbinegenerator with the seawater desalinationequipment. It is the ?rst successful attempt inthe world. Compared with the steam extractionmode of conventional power plants, the pre-seawater desalination steam turbine generatorsystem of energy cascade utilization principlehas a high thermal energy utilization rate of
82.23% and an annual power generation of 340
million kWh. At the same time, the generatedpower is used for the membrane seawaterdesalination device, and seawater desalinationhas reduced the energy cost by 50%.
Case: Jingtang Co. develops "water and electricity symbiosis" technology,and achieves cascade energy utilization
Energy Management
40 41
Qiangang Co. practices the concept of scienti?c energy use, fully recovers and utilizes the waste heat, excesspressure, and excess gas in the steel production process, and applies advanced and ef?cient low-calori?c gaspower generation technology to build 3 combined cycle power plant (CCPP).Case:Qiangang Co.'s combined cycle power plant
Waste DisposalShougang Steel has compiled theSolid Waste Secondary Resource Management Systemand carried out source reductioncontrol and professional management of waste based on this system. After multiple inspections, the company hasdeveloped theGreen Development Plan, aiming to achieve the full recovery and ef?cient utilization of solid waste secondaryresources, achieve reduction, resource utilization, and productization, maximize bene?ts, achieve "no solid wast leavingthe factory", promote internal circulation, and gradually realize social circulation. Jingtang Co. follows the concept of"absorption, value-added, and leading" in the management of solid waste resource utilization, continuously expands thecomprehensive utilization of metallurgical slag resources, achieves "zero external discharging" of solid waste, and createsa model for the green utilization of solid waste secondary resources in the steel industry. The company was awarded the"Industrial Resource Comprehensive Utilization Base" by the Ministry of Industry and Information Technology in 2019, andapplied for the provincial-level "Zero Waste Factory" in 2022.The company has established a complete desulfurization slag and steel slag processing line, realizing the maximumrecovery and utilization of desulfurization slag and steel slag.Low-alkali steel dust and iron-scale, which have low alkali metal content, can be directly used in sintering. For zinc-containing dust with high alkali metal content, in order to achieve the recycling of iron and zinc elements, Shougang Steelaccumulated and processed 146,600 tonnes of zinc-containing dust using external rotary kilns in 2022. The processed slaghas been used for pelletizing, and the iron-containing resources have been returned to the plant for reuse.In 2022, the total amount of general industrial solid waste generated was 119.2 million tonnes, all of which were recycled.The amount of hazardous waste generated was 462,800 tonnes, of which 453,200 tonnes was recycled, achieving arecycling rate of 97.92%.
Waste Gas Management
In accordance with the regulations and policies such as the
Air Pollution Prevention and Control Law of the People'sRepublic of China and Implementation Plan for Ultra-Low Emission in the Iron and Steel Industry,the company has taken thelead in completing the ultra-low emission projects, continuously strengthened comprehensive air pollution control, andestablished an environmental monitoring and control system based on online monitoring of pollution sources combinedwith self-monitoring and environmental inspection. The company is equipped with monitoring equipment for waste gas,wastewater, and ambient air quality throughout the plant, and monitors various indicators in real time.In 2022, the company implemented key environmental deep treatment projects such as hot stove ?ue gas treatment,denitration and desulfurization ash modernization of sintering plant No. 3 and reduction of particulate matter emissions,desulfurization of heating furnace, and denitri?cation of annular shaft kiln ?ue gas. The emissions of major pollutantsand characteristic pollutants are lower than the government's permitted emissions. The emission intensities per tonneof steel are 0.211 kg for particulate matter, 0.095 kg for sulfur dioxide, and 0.225 kg for nitrogen oxides respectively,signi?cantly lower than the industry average and the national level I standard of clean production.
Waste discharge and related indicators of Shougang Steel in 2022IndicatorsUnits2022Scrap steel recycling rate%100Total amount of waste generated10,000 tonnes1,238.43General waste generation10,000 tonnes1,192.14General waste recycled10,000 tonnes1,192.14Hazardous waste generation10,000 tonnes46.28Hazardous waste recycled10,000 tonnes45.32
Waste gas emissions of Shougang Steel in 2022
IndicatorsUnitsActual Emissions in 2022Permitted EmissionsParticulate matter emissionsTonne4,9086,669
Sulfur dioxides emissionsTonne2,2124,727Nitrogen oxides emissionsTonne5,22610,105
020004000600080001000012000
Nitrogen
oxides
Permitted emissions 2022Actual emissions
SulfurdioxidesParticulate
matter
滵澳滵滵澳滶滵澳滷滵澳滸滵澳滹滵澳滺滵澳滻滵澳滼滵澳滽滵澳滾滶澳滵
Particulate matter emissions
per tonne of steelper tonne of steelper tonne of steel
Sulfur dioxides emissionsNitrogen oxides emissionsShougang Steelindustry averagelevel I standard of clean production
Comparison of air pollutant emissions with the permitted emissions (Tonnes)
The company's air pollutant emissions intensity is signi?cantly lower than the industry average and the level I standard of
clean production (Kg/t-crude steel)
42 43
Water Resources Management
The water recycled amountedto
4.331
billion tonnesThe water recyclingand reuse rate reached
98.73%
Shougang Steel adheres to the concept of "minimizing intake, treatingcomprehensively, and reducing discharge" for water use, insists on legal waterintake, scienti?c water-saving, and water recycling, and develops a series of water-saving and water treatment technologies to continuously improve the reuse rate ofwater resources. Jingtang Co. utilizes its advantage of being by the sea to developwater and electricity symbiosis technology and produce low energy-consumption,high-quality desalinated water. The company has achieved the title of "ExcellentMarine Engineering" for seawater desalination and achieved "zero discharging" ofwastewater. Qiangang Co. achieves nearly "zero discharging" of wastewater throughcomprehensive water resources management and the use of the "three dry" processand cascade utilization. The company has been successively awarded the titles of"Hebei Province Water-saving Enterprise" and "National Water Ef?ciency Leader",and has been selected as "Industrial Wastewater Recycling Pilot Enterprise" by theMinistry of Industry and Information Technology in 2022. Cold-R Co. extensively usesmunicipal reclaimed water in various production systems, and in 2022, the proportionof municipal reclaimed water and reused wastewater reached 55.9%. The companyhas been recognized as a water-saving enterprise and an advanced collective forwater-saving in Beijing.During the reporting period, the water recycled amounted to 4.331 billion tonnes,and the water recycling and reuse rate reached 98.73%. The total discharge ofwastewater was 434,700 tonnes, with chemical oxygen demand and ammonianitrogen discharge of 17.866 tonnes and 0.216 tonnes respectively, which were muchlower than the permitted discharge.
IndicatorsUnits2022Annual fresh water consumption10,000 tonnes6,696.83Water recycled10,000 tonnes433,087Water recycled rate%98.73Wastewater Discharged10,000 tonnes43.47Chemical oxygen demand in wastewaterdischarge
Tonne17.866Ammonia nitrogen in wastewater dischargeTonne0.216
98.56
98.58
98.6
98.62
98.64
98.66
98.68
98.7
98.72
98.74
滷滵滷滵滷滵滷滶滷滵滷滷
0200400600800
Ammonianitrogen
Chemical
oxygen
demand
2022 Actual emissionsPermitted emissions
Water recycled rate (%)Chemical oxygen demand and ammonia nitrogen in
wastewater discharged, and permitted discharge (Tonnes)
Case: Qiangang Co. was selected as "Industrial Wastewater RecyclingPilot Enterprise" in 2022
Jingtang Co. utilizes its advantage of being by the sea and fullydeploys the technical route of comprehensive and ef?cientutilization of seawater. The company has successively built 50,000tonnes/day, 35,000 tonnes/day, and 10,000 tonnes/day seawaterdesalination projects, forming a total seawater desalinationcapacity of 95,000 tonnes/day. We have created a low-carbon, low-cost seawater desalination new model, promoting the cascadeutilization of seawater and saving 19.93 million tonnes of freshwater resources annually. By using the water and electricitysymbiosis technology, we produce low-energy consumption andhigh-quality desalinated water, realizing the concept of "drawingwater from the ocean", and earning the title of "Excellent MarineEngineering" in seawater desalination.
Case: Jingtang Co. achieves " drawing water from the ocean"
Water utilization and wastewater discharge data of Shougang Steel in 2022
Qiangang Co. actively responds to the call of Hebei Province to create water-saving enterprises, strictlyimplements theHebei Province Water-saving Regulations, vigorously promotes new technologies, new equipment,and new processes for industrial water-saving, and has invested approximately 1.53 billion yuan in watersystems. By adopting advanced water-saving technologies and building ?rst-class water treatment facilities,the water consumption per tonne of steel has been greatly reduced and the water recycled rate has exceeded
98.6%. The company has been awarded the titles of "Tangshan Water-saving Enterprise" and "Hebei Water-
saving Enterprise", and become a provincial water-saving demonstration enterprise and an industrial wastewaterrecycling pilot enterprise.Comprehensive wastewater treatment for the entire plant. The company adopts the "separate drainage of rain and sewage"system to ensure the effective collection of wastewater. According to the principle of separate treatment,production and domestic sewage treatment facilities have been constructed. Among them, the designedtreatment capacity of production wastewater is 60,000 tonnes/day, and the designed treatment capacity ofdomestic sewage is 3,600 tonnes/day.
Advanced "Zero Waste" technology. The company adopts the double membrane deep treatment technology, all the
reclaimed water from the sewage treatment plant is reused. The generated desalinated water is used for theclosed-loop water systems, vaporization cooling systems, rinsing and spraying in the production process. Theconcentrated brine is used for slag ?ushing for blast furnace, stewing slag, and sintering mixture after furtherconcentration and reduction through concentrated water reverse osmosis, achieving nearly "zero" discharging ofindustrial wastewater.
Reuse of various types of wastewater. In accordance with national standards, industry standards, and production practices,various measures are taken into reuse various types of wastewater. Circulation use includes the iron slag ?ushingwater system, the hot rolling turbid water system, and the steelmaking turbid water system; cascade utilizationincludes the drainage of the oxygen production circulating water system into the hot rolling laminar ?owspraying system; comprehensive utilization includes the treatment and utilization of various types of productionwastewater. Various types of sewage and wastewater are treated separately. Starting from the design, sewageand wastewater are classi?ed according to their water quality and treatment dif?culty, so that the collection,treatment, and reuse of sewage and wastewater can truly be implemented, facilitating the improvement of waterresource ef?ciency.Qiangang Co. was selected as
"Industrial Wastewater Recycling Pilot
Enterprise"
44 45
Carbon Management Structure and StrategyShougang Steel ?rmly establishes the concept of green and low-carbon development, consciously integrates into thelocal economic development, and regards achieving carbon neutrality as an important part of achieving high-qualitydevelopment and high-standard environmental protection. The company strengthens top-level design, focuses on keyareas, reinforces target guidance, takes comprehensive measures, and steadily advances efforts to reach carbon peakand carbon neutrality. In March 2022, low-carbon management center was established, mainly responsible for collecting,organizing, and studying national low-carbon management policies, building a carbon management system, establishingmanagement systems and processes, setting decarbonization goals and plans, establishing management assessmentsystems, establishing an information management platform, and promoting the implementation of low-carbon work. Thecenter is also responsible for life cycle assessment (LCA) evaluation and research, actively carrying out environmentalproduct declaration (EPD) work.The "dual carbon" targets of the company: striving to peak carbon emissions and possessing the capability for a 60%reduction in CO
emissions of some products by 2025, possessing the capability for a 30% reduction (compared with 2020)in CO
emissions intensity of steel production lines by 2030, reducing CO
emissions by 30% from the peak by 2035, andstriving to achieve carbon neutrality between 2050 and 2060.
Climate Risk and Opportunity Identi?cation
Climate change is a global issue that concerns the community of human destiny and is a major challenge for sustainabledevelopment. The steel industry is crucial for achieving peak carbon emissions and carbon neutrality in society. ShougangSteel actively responds to climate change, identi?es climate change risks and opportunities, combines its own advantagesand the development stage and characteristics of the industry, actively integrates into China's "dual carbon" strategiclayout, vigorously promotes energy conservation and carbon reduction work, and continuously promotes the green andlow-carbon development of the company.
Climate change promotes and changes the social and economic development model, and also brings correspondingopportunities for the sustainable development of enterprises. Through analysis of the industry and market environment,combined with the company's own characteristics and strategic planning, the following opportunities have been identi?ed:
Product development: Research and develop green products such as electrical steel for new energy vehicles and high-performance oriented electrical steel to meet the market and customer demand for low-carbon products and services.Energy efficiency: Continuously optimize process technology, fully utilize waste heat and waste energy, research andintroduce advanced energy-conservation technologies, use big data and intelligent technologies to build a smart energymanagement system, improve resource and energy ef?ciency, promote energy-conservation and emission reduction, andreduce operating costs.Energy sources: Increase the use of clean and low-carbon energy, replace traditional high-carbon energy, further increase
photovoltaic power generation capacity, and increase the proportion of green electricity purchased from external sources.
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IntelligentLogistics
IntelligentFactory
SmartControlCoalOreSol-vent
CleanElectricity
CokingSinteringProcessAdjustmentPelletCircularIndustry
Slag
Lime KilnConverter
Scrap
EnergyRecovery
Green Low-Carbon Products
Route 1 Carbon ReductionFrom the Source
Route 2 Energy Efficienc
Carbon ReductionRoute 3 CollaborativeCarbon Reduction
Route 4 Social
Carbon ReductionRoadBuilding
OilfieldOil Drive
Ethanol Productionand other Chemical
| Industries |
Making AlkaliUsing BrineShougang Steel's carbon reduction technology routeGHG EmissionsThe company always prioritized ultimate energy ef?ciency, and committed to the concept of high-end greenmanufacturing. The company vigorously researched and innovated low-carbon technology, actively developed and utilizedrenewable energy, comprehensively promoted energy-conservation and carbon reduction work, and signi?cantly reducedGHG emissions compared to 2021.In 2022, the company's GHG emissions were calculated by the Department of Ecology and Environment of Hebei Province.The details of GHG emissions are as follows:
GHG emissionsUnits202020212022
Direct emissions (Scope 1)tCO
e35,855,259 38,615,904 38,542,164Indirect emissions (Scope 2)tCO
e3,207,411 4,179,058 3,936,676Direct/indirect GHG emissions (Scope 1 & 2)tCO
e3,9062,670 42,794,962 42,478,839
Risk CategoryRisk ParametersPotential ImpactPhysicalRisk
Acute risk
The severity and frequencyof extreme weather events(such as typhoons, ?oods,etc.) increase
Jingtang Co. is located on the coast of Bohai Sea and experiences 1-2severe typhoons and extreme weather events each year. Especially inrecent years, there has been a sudden increase in global extreme weatherevents, which may lead to impairment or loss of physical assets, as well asother potential economic losses.
Transform-ation Risk
Policy,Laws andregulations
Policy constraints, carbonpricing mechanism andcosts
With the implementation of energy-conservation and emissionreduction policies in the steel industry, as well as the implementation ofenvironmental and carbon-related laws and regulations, the company willface rising carbon prices and carbon compliance costs, restrictions on coaluse, and other energy transition policies, which will lead to correspondingincreases in investment and operating costs, a?ecting revenue.Carbon tari?s
The European Union Commission announced the launch of the world's?rst "Carbon Border Adjustment Mechanism" plan, imposing tari?s onimported carbon goods including steel and cement, which will restrain thecompany's exports of certain products and a?ect revenue.
Technologyand cost
Low-carbontechnologytransformation
In response to China's 30-60 Decarbonization Goal and to achieve thecompany's "dual carbon" goals, signi?cant investments will be requiredin the future for the research and development or application of low-carbon steelmaking technologies. The research and development processinvolves uncertainties.Transformation cost
During the low-carbon transformation process, the company willincrease the use of renewable energy, new energy, and other energy-conservation and environmental protection technologies. The applicationand investment in low-carbon steelmaking technologies will lead to anincrease in the company's research and development costs and the risk ofvalue loss of existing ?xed assets.Market
Increasing demand forgreen and low-carbonproducts
With the deep adjustment period of domestic steel markets and thepromotion of the green and low-carbon development trend throughoutthe industry chain, the market demand for green and low-carbon steelproducts will signi?cantly increase. The industry competition will becomemore intense, and if the greenization process is too slow, it may lead to adecrease in the company's market share.Rising raw material costs
Prices of energy and other resources will increase due to the impact ofclimate change, which will in turn a?ect the procurement costs of fuel andraw materials, resulting in increased costs and other risks.Reputation
Concerns of stakeholdersregarding climate changemeasures
Investors and other stakeholders, as well as the public, will pay moreattention to the company's response to climate change measures,and may even consider it a key factor in evaluating the company'sperformance. This could potentially pose reputation risks to the company,and resources need to be invested to strengthen carbon management inorder to meet their expectations.
46 47
Persisting in Pursuing Excellence, Strengthening Energy Ef?ciency and Carbon ReductionShougang Steel always places ultimate energy ef?ciency work in a prominent position. We work on the pursuit ofexcellence, advanced planning, systematic innovation, and precise control, and continuously strengthen the "dual control"of energy consumption intensity and total amount. The company has independently developed technologies such as "waterand electricity symbiosis" "fuel gas-wasteheat-electricity-wastewater-salt" ?ve-in-one ef?cient cascade recycling system,ef?cient conversion of steel manufacturing processes, and maximum recovery and utilization of waste heat, promotingenergy ef?ciency and carbon reduction. In December 2022, Qiangang Co. and Jingtang Co. were both selected as the ?rstbatch of "double carbon Best Practice Energy Ef?ciency Benchmark Demonstration Plant Cultivation Enterprise" in theindustry.
Innovating Low-carbon Technology, Promoting Synergizing Carbon ReductionShougang Steel vigorously develops and innovates low-carbon technological methods to promote synergizing carbonreduction in the industrial chain. By using by-product gases such as converter gas as fuels and employing microbialfermentation technology, the company produces ethanol products for automobile and aviation fuels. The company hasbuilt the ?rst domestic lime kiln exhaust CO
capture and recovery used for mixed blowing in steelmaking, leading theindustry in low-carbon technology innovation. We have won the third prize for typical cases of carbon peak and carbonneutrality actions in 2022 awarded by the State-owned Assets Supervision and Administration Commission of the StateCouncil, and have been included in the pilot projects for CO
capture, utilization, and storage as well as the catalog forpromotion of low-carbon technology of Hebei Province.
In order to better promote the three-year action plan for energy ef?ciency benchmarking, the China Ironand Steel Association has organized the cultivation work of "double carbon Best Practice Energy Ef?ciencyBenchmark Demonstration Plant". The aim is to use the leading role of industry-leading enterprises in
Case: Qiangang Co. and Jingtang Co. have both been awarded thetitle of "double carbon Best Practice Energy Efciency BenchmarkDemonstration Plant Cultivation Enterprise"
Efficient utilization of gas and waste heat energy. Qiangang Co. adheres to the principle of zero gas emission and achieves dynamic
balance of gas utilization, develops ef?cient utilization paths for gas resources, and realizes the maximization of gascascade utilization. The company has realized the ef?cient utilization of BF slag ?ushing water waste heat for civilianheating in winter and industrial utilization in summer.The company has taken multiple measures to optimize and improve interface energy efficiency. By strictly controlling the temperature of hot
metal, improving the hot charging and hot delivery rate, and implementing measures such as the "one ladle to the end"of BF hot metal and the MCCR-DUE compact strip production, the company has continuously optimized and improvedinterface energy ef?ciency. In 2022, temperature drops of hot metal have narrowed to 97℃in Qiangang Co. and JingtangCo., a decrease of 37.42% and 11.01% respectively compared to 155℃ and 109℃ in 2019, and the hot charging and hotdelivery rates have increased from 46% and 41% in 2019 to 66% and 62.4% in 2022, respectively.
Promoting Technological Innovation, Strengthening Carbon Reduction from the SourceThe company actively develops low-carbon sintering technology, large-scale blast furnaces (BF) with a large proportion ofpellet ore for low-carbon ironmaking, ef?cient application of recycled steel materials, and ef?cient recycling of secondaryresources, continuously strengthening carbon reduction from the source and achieving good results.Jingtang Co. has successfully applied its independently developed blast furnace (BF) large proportion pellet ironmakingtechnology, implemented its independently developed sintering composite injection and ?ue gas recycling technology, aswell as high air temperature oxygen-enriched pulverized coal injection technology. During the reporting period, the pelletore ratio reached a maximum of 65%, and the carbon emissions per tonne of hot metal were reduced by more than 10%compared to traditional processes, promoting clean production in the pre-ironmaking stage and pioneering the domesticsimilar BF technology.High scrap steel ratio steelmaking: By comprehensively applying low-carbon technology, the BOF scrap ratio has been increased to
over 40%, achieving a 30% carbon reduction for the production of low-carbon automotive coating products.Low-carbon sintering process technology: Developed sintering ?ue gas circulation + ultra-thick burden layers sintering + steamspraying coupling energy-conservation and consumption-reducing technology, achieving a reduction of over 25% inpollutant emissions and over 9% in CO
emissions from the sintering process.Dust ash substitution for desulfurizing agent: The dust ash generated during the steelmaking process is used instead of thedesulfurizing agent in the hot metal desulfurization process. One tonne of dust ash can replace 600 kilograms ofdesulfurizing agent, reducing the consumption of desulfurizing agent by 7,200 tonnes per year and reducing CO
emissions by over 10,000 tonnes.
energy ef?ciency benchmarking to promote the steel industry toreach benchmark levels of energy ef?ciency in an orderly manner,further improve the mechanism for energy-conservation, carbonreduction, and ef?ciency enhancement in steel enterprises, andsigni?cantly increase the intensity and level of energy-conservation,carbon reduction, and ef?ciency enhancement. By the end of 2023,80-100 million tonnes of capacity may achieve benchmark levelsof energy ef?ciency. By the end of 2024, 150-200 million tonnes ofcapacity may achieve benchmark levels of energy ef?ciency. By theend of 2025, over 300 million tonnes of capacity within the ChinaIron and Steel Association members may achieve benchmark levelsof energy ef?ciency and the capacity below the energy ef?ciencybenchmark level will be basically eliminated. In December 2022,at the launching ceremony of the three-year action plan for energyef?ciency benchmarking in the steel industry, 21 steel companieswere awarded the title of "double carbon Best Practice EnergyEf?ciency Benchmark Demonstration Plant", and Qiangang Co.and Jingtang Co. were both listed.
Gas
CombustionEngine
Flue Gas
Boiler
Conden-
sateWater
Thermal Seawater
Desalination
Industrial WaterMembrane MethodSeawater DesalinationDesalinated Water
Primary BrinePrimary Brine
Secondary BrineSalt ChemicalIndustryBromineCalcium SaltCrude SaltMagnesium-based F
ExhaustSteamSteam Turbine
Electricity
Five-in-one efficient cascade recycling system. With Combined Cycle Power
Plant (CCPP) and low-temperature multi-effect distillation seawaterdesalination as the core, combined with the downstream salt-alkalichemical industry chain, the world's ?rst "fuel gas-wasteheat-electricity-wastewater-salt" ?ve-in-one ef?cient cascade recyclingsystem has been constructed. This system realizes the ef?cient cascadeutilization of energy media, reducing CO
emissions by 400,000 tonnesper year. This system also won the ?rst prize for energy-conservationand carbon reduction technological progress, and being promoted byHebei Province.This technology realizes low-cost and ef?cient stable operation, andestablishes a new model for the ef?cient conversion and cascadeutilization of metallurgical energy. The ef?ciency of the CCPP has beenincreased to 47%, an increase of 2 percentage points compared tosimilar models, ranking ?rst in the industry; the thermal ef?ciency ofthe water and electricity symbiosis system reaches 81.5%, reachingthe international leading level; the cost of seawater desalination hasbeen reduced by more than 50% compared to the conventional methodof using steam from power plants. This system also extends the steelcircular economy industrial chain, transporting the concentrated brinefrom seawater desalination to salt chemical enterprises as by-productresources, actively exploring and practicing the synergistic emissionreduction of the steel and chemical industries.
48 49
Case: Cold-R Co.has built the largest photovoltaic project in BeijingJingtang Co.'s lime kiln exhaust CO
capture and recovery use CO
-O
mixed blowing in steelmaking processis the ?rst industrial demonstration project in China that captures CO
from lime kiln exhaust and usesit for mixed blowing in steelmaking. It can capture 50,000 tonnes of CO
annually and use it for convertersteelmaking. This technology utilizes pressure swing adsorption to extract CO
from lime kiln exhaust,achieving a CO
concentration of≥
99.8% and reducing CO
emissions by 26 kg per tonne of steel. By using CO
instead of some nitrogen for bottom blowing in the converter, it can reduce nitrogen consumption, productioncosts, nitrogen content and slag in the steel, and improve the quality of the steel. The mixed blowing of CO
-O
in converter steelmaking can reduce the temperature of the oxygen jet ?ame point area and improve therecovery ef?ciency of gas. This technology has achieved a leading level in the industry and offers substantialbene?ts in energy-conservation, emission reduction, and carbon reduction effects, such as reducing CO
emissions and industrial dust emissions, reducing industrial gas consumption and iron loss, and improvingthe calori?c value of converter gas. It has innovated the mode of CO
resource utilization and circularutilization, and has been included in the ?rst batch of CO
capture, utilization, and storage pilot projects andthe low-carbon technology promotion catalog of Hebei Province. It has won the third prize for typical casesof carbon peak and carbon neutrality actions in 2022 awarded by the State-owned Assets Supervision andAdministration Commission of the State Council.
Cold-R Co. constructed what was thenthe largest distributed photovoltaicdemonstration project in Beijing,boasting an installed capacity of 8.3MWand an annual average power generationof 10 million kWh. In 2022, the newphotovoltaic support bracket wascommissioned, generating 10.02 millionkWh of electricity throughout the year,saving 2.678 million yuan in electricitycosts, generating an economic bene?t of
60.4261 million yuan, and reducing CO
emissions by more than 6,000 tonnes.At the same time, through measuressuch as purchasing green electricity andphotovoltaic power generation in themarket, carbon emissions decreased by
4.3% year-on-year .
Utilizing Clean Energy, Building Green Steel Plants
Shougang Steel actively develops and utilizes renewable energy, striving to create a new generation of green steelplants that are "circular economy-oriented, energy-conservation and environmentally friendly, and clean and ef?cient".The company actively utilizes photovoltaic power generation on the roofs of factories and parking lots in the plant area,with an installed capacity of 13.69MW, generating 15.5 million kWh of electricity annually and reducing CO
emissionsby 14,000 tonnes per year. In 2022, a total of 719 million kWh of green electricity was purchased, accounting for 15.4%of the purchased electricity, which equals to reducing CO
emissions by 640,000 tonnes per year. At the same time, theproportion of clean energy transportation methods for bulk raw materials entering the plant and ?nished products leavingthe plant has reached 85% through rail, belt, and electric truck transportation. There are about 100 electric trucks forinternal transportation in-plant, accounting for 60% of the transportation trucks. All fuel trucks for in-plant transportationand external delivery meet the National VI emission standards.
Establishing an LCA System,
Carrying Out Carbon ManagementIn response to the trend of green and low-carbon development and thedemand for carbon reduction from customers, Shougang Steel has carriedout carbon footprint management for steel products throughout their lifecycle assessment. The company has established a life cycle assessment(LCA)system for steel products, comprehensively controlling the carbon footprintof steel materials from raw materials to manufacturing processes andservice stage. Carbon reduction effect assessment has been conducted,and third-party low-carbon certi?cation has been initiated. Jingtang Co.has released an Environmental Product Declaration (EPD) for hot-rolledproducts, and completed the application for green products for key gradessuch as high strength steel. Zhixin Co. has completed the green designproduct application of two series of non-oriented electrical steel and orientedelectrical steel for new energy vehicles and obtained national recognition.
LCA research: Following the ISO standard methodology, a comprehensive life
cycle assessment system has been established, including methodologydevelopment, model construction, calculation software, a factor database,and an online data collection platform. This facilitates the depiction of thecarbon footprint and the visualization of carbon emissions data for thecompany's steel products, offering product carbon labeling. Through the LCAmethod, carbon emission accounting and reduction potential analysis havebeen performed for the company's green manufacturing, green procurement,and green marketing. Collaborative efforts with upstream and downstreampartners in the industrial chains have been initiated to collectively engagein ecological design, continually minimize the carbon emissions of steelproducts throughout their life cycle, and construct a green product ecologicaldesign and manufacturing system anchored in LCA methodology, thusbolstering Shougang's green and low-carbon development.
Initiating the construction of a carbon data management platform: In June 2022, the companyhas launched the establishment of the "Shougang Carbon Data ManagementPlatform". The collection of carbon and product carbon data, modeling,installation of carbon emission data servers, and integration of carbon modelsystems were completed, achieving the visualization of carbon emissionsinformation in the production process.
ShougangSteel LCAOnlineSystem
Steel Coil
CarbonLabelGreenMarketing
GreenDesignGreenManufac-
turing
Case:Jingtang Co.'s lime kiln exhaust CO
capture and recovery usedfor mixed blowing in steelmaking
50 51
Oriented electrical steel: Orientedelectrical steel is widely used in"double-million" ultra-high voltagetransformers and high-ef?ciencyenergy-conservation distributiontransformers. It has beensuccessfully applied in national keyengineering projects and powerplants and grid projects of the Beltand Road, accounting for 50% ofthe supply of main transformers inthe Baihetan Hydropower Stationand 70% of the supply of generatortransformers in the WudongdeHydropower Station.
Cicada wing steel: The companysuccessfully rolled 0.07mm"cicada wing steel", exceeding theequipment's design limit by 42%,reaching a world-leading level. Itwas successfully used in the BeijingWinter Olympics sports projectpostcards.
High-toughness bridge steel: The ultra-thick high-toughness and easilyweldable bridge steel accountsfor 90% of the special thick bridgeplate market in China. It has beensuccessfully applied to the PadmaBridge project in Bangladesh, witha supply proportion of up to 70%.
9Ni steel, etc.: The company hassuccessfully developed therenowned "steel diamond" 9Ni steeland achieved mass production,making a breakthrough in theproduction of 9Ni steel for ultra-low-temperature containers.
Automotive sheet: The product structureof automotive sheet has beenfurther optimized. The companybecame the second company in theworld to pass the certi?cation ofGA products with a strength level of980MPa or higher from a Japaneseautomaker. Zinc-aluminum-magnesium coated products havebeen used in large quantitiesfor automotive side panels. UFsteel made its debut in China andachieved mass production.
Resisting hydrogen steel: Resisting
hydrogen steel not only meets theconventional mechanical propertiesbut also meets the requirementsof strength, resistance to temperembrittlement, and hydrogencorrosion at high temperatures.It also has good formability andweldability, making it suitable forlong-term use in high-temperature,high-pressure, and hydrogen-containing environments.
Non-oriented electrical steel: The company
has formed a product system of107 grades in four series, with aleading market share in China.The dedicated product system ofnon-oriented electrical steel fornew energy vehicles consists of?ve series and 23 grades. Everythree new energy vehicles in Chinause Shougang electrical steel formanufacturing.
Shougang Steel adheres to the concept of high-end green manufacturing and is committed to developing high strengthlightweight, long-life, and highly corrosion-resistant green products. The company promotes collaborative carbonreduction in multiple industries such as machinery, automobiles, household appliances, and construction, helpingdownstream industries reduce CO
emissions by more than 5 million tonnes annually. In the past three years, ShougangSteel has developed 19 new green products, such as high-grade non-oriented electrical steel for new energy vehicles.The cold-rolled high-strength steel sheet and strip for automobile was recognized as "green design products" by theMinistry of Industry and Information Technology in 2021, marking the steel industry's ?rst green product in this category.During the reporting period, the company was selected as "Industrial Product Green Design Demonstration Enterprise"by the Ministry of Industry and Information Technology. Shougang Steel has built the world's ?rst specialized line for newenergy vehicle electrical steel, and two products are the ?rst electrical steel for new energy vehicles in the world. Sevennew products, including high strength automotive outer panel UF steel, were ?rst launched in China. Five categories ofproducts, including oriented electrical steel, were recognized as green design products by the Ministry of Industry andInformation Technology.
Shougang'sPromote DownstreamIndustry to Reduce Carbon by
Green Low-Carbon Products
5.35 Million tpy
Case:The world's rst specialized production line for new energy vehicleelectrical steel has been built and put into operationOn August 31, 2022, Shougang Steel completed the world's ?rst specialized production line for new energyautomotive electrical steel. The self-developed six-stand cold continuous rolling mill "SUPPER MILL" isa world ?rst, and the product performance, pro?le control, and production ef?ciency have also reachedthe world's leading level. The commissioning of the new production line will greatly enhance Shougang'sresearch and development and innovation capabilities for electrical steel products for new energy vehicles, aswell as its supply chain service guarantee capabilities, further expanding its leading advantages. The new linewill be able to provide the industry chain with more high-end, ef?cient, and environmentally friendly electricalsteel products, support the healthy development of the new energy vehicle industry, and contribute to thetechnological progress and transformation and upgrading of the steel industry and the national economy with"Shougang power".At the same time, two products, 20SW1200H and ESW1230, are the ?rst electrical steel for new energyvehicles in the world, which surpass the performance of conventional electrical steel and can greatly improvethe power density and ef?ciency of motors. Among them, the ESW1230 product provides a new de?nition forelectrical steel used in drive motors. Compared with the current high-end 0.25mm thick electrical steel, theiron loss performance is improved by 5%, and the motor ef?ciency can be increased by more than 0.8%; the20SW1200H product is mainly aimed at the development needs of high-speed motors. With its low iron lossand high strength characteristics, it will empower new energy vehicles with greater power, higher ef?ciency,and longer endurance.As a rising star in the ?eld of electrical steel, Shougang Steel has ef?cient, green, clean, and advancedfull-process electrical steel production equipment, and has always adhered to the positioning of high-end, ef?cient, and environmentally friendly products. We have formed a cluster of advantageous productswith high ef?ciency and low iron loss. In particular, the high grades and high-magnetic induction, thin-speci?cation electrical steel products maintain a leading position, leading the continuous improvement ofenergy consumption levels in the national electromechanical equipment application ?eld.
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Case:High-efciency electrical steel contributes to green social developmentShougang Steel has ef?cient, green, clean, and advanced full-process electrical steel production equipment,forming a cluster of advantageous products with high ef?ciency and low iron loss. In particular, the company'shigh-grade, high-magnetic induction, thin-speci?cation electrical steel products maintain a leading position,leading the continuous improvement of energy consumption levels in the national electromechanicalequipment application ?eld. As a green and ef?cient energy material, the utilization of Shougang's electricalsteel in household inverter air conditioners can save 36 kilowatt-hours of electricity annually. Likewise, theapplication of Shougang's electrical steel in new energy vehicles can save 375 kilowatt-hours of electricityeach year, and in a transformer within the construction of a national green power grid, it can reduce powerloss by 7600 kilowatt-hours annually, thereby supporting the development of a green society.
Emphasizing BiodiversityShougang Steel fully understands the importance of biodiversityto the company, strictly complies with national and locallaws and regulations, and continues to pay attention to theharmonious development of the factory environment and thesurrounding ecological environment. During the project designphase, biodiversity conservation and land use assessmentare carried out in accordance with relevant requirements.During the project operation phase, the surrounding ecologicalenvironment is continuously monitored. Active measuresare also taken to protect biodiversity, reduce the impact ofproduction and operation on the ecological environment, avoiddisturbance to wildlife habitats, and prevent soil erosion anddeforestation.By the end of 2022, Qiangang Co. has a greening area of 1.8539 million square meters in the factory area, with 8key landscapes and more than 70 species of trees and over 30,000 trees, and more than 110 species of ?owers andshrubs with over 1.5 million plants. The greening coverage rate and green space rate have reached 45.67% and 35.83%respectively, and 100% greening is achieved with available green space. The company has successively been awarded thehonorary titles of "Garden-like Enterprise" in Tangshan City, "Garden-like Enterprise" in Hebei Province, and "High-qualityGreening Project" in Hebei Province. The greening area of Jingtang Co. 's factory area has reached 5.265052 millionsquare meters, with a greening coverage rate of 41% and a green space rate of 38%. The entire factory area has achieveda green natural landscape, with "?owers in three seasons, evergreen in four seasons" , and a concept of "forest in thefactory, factory in the forest". The integration of greening, culture, and production serves to showcasing the green ethos ofmodern steel enterprises. The greening area of Cold-R Co.'s factory area is 270,000 square meters, with a greening rateof nearly 40%. It has established avenues of magnolia, red maple, water ?r, and Chinese scholar tree, along with areasshowcasing various ?owers such as peony, rose, chrysanthemum, and hibiscus, thus forming a distinctive landscapefeature characterized by "one road, one scene".
Efficient, High-endElectrical SteelApplication of electrical steelA houshold inverter air
conditioner saves 36 kilowatt-hours of electricity per year
A new energy vehicle saves
375 kilowatt-hours of electricity perYear
A transformer reduces loss by
7600 Kilowatt-hours per Year
Strengthening Green Environmental Protection Publicity
The company organized theme publicity activities such as "harmonious coexistence between man and nature" "buildinga global community of life" and "environmental protection and green production" in conjunction with National LowCarbon Day, Biodiversity Day, World Environment Day, etc. By organizing a series of learning and training activities, theenvironmental protection awareness of all employees is enhanced, and employees are guided to consciously ful?ll theirresponsibilities for ecological environment protection. These activities promote a lifestyle and concept of simplicity, greenand low-carbon living, civilized health practices, and actively encourage and guide employees to engage in ecologicalenvironment protection. Furthermore, they motivate employees to become participants, advocates, and practitioners ofecological civilization construction.
Case: Qiangang Co. carries out a series of activities to promote the prevention andcontrol of noise pollution with the theme of "Building a Clean and Beautiful World"
June 5, 2022, marked the 51st World Environment Day. To promote the company's deep and extensivecommitment to ecological environment protection, the Environmental Protection Department invited theQian'an City Branch of the Tangshan City Ecological Environment Bureau to visit Qiangang Co., launching aseries of activities themed "Building a Clean and Beautiful World" to advocate for the prevention and controlof noise pollution.Under the guidance of the Tangshan City Ecological Environment Bureau's Qian'an City Branch, the LawPropagation Section held an awareness campaign about the Noise Pollution Prevention and Control Lawat the east gate of the Production Environmental Protection Command Center. They called on employeesto actively participate in environmental protection efforts, maintain quiet, and collaborate in preservingQian'an's clean air, environment, water, peaceful living conditions, and harmonious working environment.This activity also encouraged individuals to practice green and low-carbon living, translate the company'sgreen concepts into practical actions, and work collectively to foster and safeguard the harmoniouscoexistence of humans and nature.At the event site, environmental tote bags and informational brochures on environmental protection weredistributed, and consultations regarding noise pollution prevention and control laws were provided. Theseefforts aimed to encourage employees to focus on ecological civilization construction and inspire them tobecome ambassadors for environmental protection.
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Comprehensive Utilization of Metallurgical Slag
Jingtang Co. cooperates with Shougang ResearchInstitute, University of Science and Technology Beijing,and other research institutes, leveraging the advantagesof industry-university-research collaboration to activelyinnovate and practice in the ?eld of circular economyand comprehensive utilization of solid waste. Throughtechnologies such as sintering process solid wastedisposal, steel slag "roller press + pressure-hot stew"treatment, ground granulated BF slag, and zinc-containing resource recycling, a variety of products suchas solid waste cementitious materials, shield powder,composite mineral powder, slag powder, subgradematerials, and non-?red bricks have been developed,realizing the comprehensive utilization of metallurgicalslag resources.
Jingtang Co. always adheres to the concept of circular economy development, pursues the path of green, low-carbon,and circular development, and continuously expands the comprehensive utilization of metallurgical slag resources inaccordance with the management concept of "absorption, value-added, and leading" for solid waste resource utilization.In 2019, the company was awarded the "Industrial Resource Comprehensive Utilization Base" by the Ministry of Industryand Information Technology, and applied for the provincial-level "Zero Waste Factory" in 2022.
2016
201820202022
20192021
China Baogang Excellent
Environmental Award
National Level "Green Factory"
"Grade A" enterprises inenvironmental protectionperformance evaluation
Provincial Level "Zero Waste
Factory"
"Industrial Resource Comprehensive
Utilization Base" by the Ministry ofIndustry and Information Technology
Excellent Green Low-Carbon
Brand EnterpriseThe green development path of Jingtang Co.
SlagPowder
Steel Slag
Powder
Composite
MineralPowder
Solid WasteCementitious
Materials
ShieldPowder
SubgradeMaterialsNon-firedBricks
Metallurgical slag resource products
Disposal of Solid Waste in the Sintering ProcessAs the main entity responsible for solid waste disposal, Jingtang Co. has a high proportion of solid waste in the sinteringprocess, with an annual disposal of more than one million tonnes of solid waste, achieving 100% disposal of iron-containing solid waste, including iron-containing dust, steel slag, iron oxide scale, and hot-rolled sludge. Calcium-containing solid waste such as annular shaft kiln dust, digestion ash, and KR desulfurization dust is 100% recycled.
Steel Slag Pressure-hot Stew TechnologyJingtang Co. adopts the "roller press + pressure-hot stew" technology for steel slag treatment, which has the advantagesof excellent environmental performance, high degree of automation, compact process, short handling time, thoroughseparation of slag and iron, and high ef?ciency. The processed steel slag tailings have a particle size of less than 10mm,with more than 90% reaching this size, and the contents of metallic iron and free calcium oxide are both less than 2%.This technology has excellent stability and can be directly used in the production lines of non-?red bricks, prefabricatedconcrete components, and roadbed materials.
Steel slag processed by the "roller press + pressure-hot stew" technologycan be directly used in the production of non-?red bricks, roadbedmaterials, etc.Non-fired bricks: Utilizing steel slag of 0-5mm particle size as aggregate, mixedwith cement and other auxiliary materials, various types of non-?red brickssuch as square bricks, permeable bricks, S bricks, Dutch bricks, as wellas standard bricks, lawn bricks, curb stones, etc., are produced throughbrick machines. The products cover strength grades from C10 to C60, and172,000 bricks were supplied for the construction of the China InternationalFair for Trade in Services in Beijing 2021.Subgrade materials: After the aging and digestion of steel slag tailings in the rawmaterial shed, different grades of subgrade materials are produced throughprocesses such as primary crushing, two-stage magnetic separation, andthree-stage screening. The products are mainly used in subgrade, cementstabilized layer, concrete aggregate, asphalt pavement, etc.
Sintering reuse system
Steel slag roller press + pressure-hot stew processing lineResource Utilization Production of Steel Slag
Roadbed material production line
56 57
Ground Granulated BF Slag Technology
Ground granulated BF slag production lineProduction and Reuse of Metallurgical Slag ResourcesBy using metallurgical slag resources such as steel slag, BF slag, desulfurization gypsum, and coal ash powder as rawmaterials to develop solid waste cementitious materials, comprehensive utilization of metallurgical slag resources hasbeen achieved. Compared to the production of ordinary silicate cement, the carbon emissions reduce by 40%—60% pertonne. The solid waste cementitious materials are used in in-plant roads and external projects. Jingtang Co. has usedsolid waste cementitious materials to pave multiple in-plant roads, as well as in various projects such as external roadsand ?oors. In June 2021, solid waste cementitious materials were successfully applied to the ?oor of the W4 venue of theChina International Fair for Trade in Services, with a paving area of 3000 square meters, thickness of 120mm, and strengthreaching the C30 standard requirement for concrete, while effectively reducing the cost of concrete.Prefabricated concrete components. Steel slag, cement or cementitious materials, refractories, etc. are mixed in a certainproportion, mixed evenly, and then steamed and cured to produce converter grate materials, which have been stablyapplied in the steelmaking process for a long time. Various prefabricated components can also be produced usingdifferent molds according to demand. The project produces 50,000 square meters of prefabricated components each year,such as wave breakers, isolation piers, integrated pouring houses, prefabricated building materials, etc., with an annualconsumption of about 15,000 tonnes of steel slag.Recycling of Zinc-containing Solid Waste
Zinc resource recycling line
Hazardous Waste Recycling
In order to prevent environmental risks in the disposal of hazardous waste, and based on the principle of "recycle, reuse,reduce", Jingtang Co. conducts resource utilization of waste acid, oil washing residue, tar residue, and oily sludge. Amongthem, the waste hydrochloric acid arising from the cold rolling pickling process is converted into regenerated acid throughhigh-temperature calcination and reused in the production line; the oily sludge generated resulting from the cold rollingwastewater treatment process enters the coal blending system of coke plant and undergoes dry distillation in the cokeoven, generating by-products such as gas and tar; oil washing residue and tar residue are utilized within the process byreturning to the coal blending system and entering the coke oven for resource utilization. Establishing an Achievement Transformation PlatformJingtang Co. cooperates with Anhui University of Technology to establish a collaborative base for industry-university-research, as well as an internship and practice base. Utilizing the metallurgical resource advantages of Jingtang Co., theyjointly develop ultra?ne powders, effectively promote the research and development, achievement transformation, andindustrial application of solid waste resource utilization. At the same time, we actively exchange and learn from advancedenterprises in the industry and research institutes, and actively participate in various solid waste industry exchangeconferences to improve our capabilities in waste disposal and research and development achievement transformation.In the future, Jingtang Co. will exert a high sense of social responsibility and mission, and vigorouslydevelop a circular economy, striving to build an "Industrial Resource Comprehensive Utilization Base"and a provincial-level "Zero Waste Factory" with first-class environmental performance, and makingdue contributions to carbon peak and carbon neutrality.
According to the production scale of BF, Jingtang Co. hasbuilt six 600,000 tpy of ground granulated BF slag productionlines, with a capacity of 3.6 million tonnes per year of slagpowder. BF slag is fed into the vertical mill system throughthe charging system, then undergoes grinding and drying,and ?nally produces slag powder that meets the particlesize requirements through air classi?cation. Slag powder iswidely used in cement, building materials, and other ?elds,and has been widely used in major national mega projectssuch as the Hong Kong-Zhuhai-Macao Bridge. In addition,a new vertical mill production line is used to producecomposite mineral powder, whose product performanceindicators meet the application standards of JGT486-2015compound mineral admixtures for concrete, mainly used inroad engineering, construction engineering, etc.
The disposal of zinc-containing solid waste includeshomogenization production lines and zinc resourcerecycling lines. The homogenization production line takesdust ash, industrial sludge, etc. into the raw materialsystem, and mixes them in a certain proportion to generatehomogenized material with a moisture content of less than15%, which is used as raw material for the ironmakingprocess. The zinc resource recycling line takes differenttypes of zinc-containing dust and binders, etc., and mixesthem in a certain proportion, then presses and dries themto enter the rotary hearth furnace for heating and reduction,generating metallized pellets. After cooling, screening, andother processes, they enter the ?nished product warehouse.
58 59
Employee Protection 60Talent Development 67Health and Safety 69Quality Assurance 74Customer Service 78Supply Chain Management 81
60 61
?EmploymentRights ProtectionShougang Steel strictly follows the requirements of theLabor Law of the People'sRepublic of China, the Labor Contract Law of the People's Republic of China,and otherrelated laws and regulations. The company has formulated theLabor ContractManagement Systemand continuously improves the human resources managementsystems, to create an equal, inclusive, and diverse employment environment andsafeguard the legitimate rights and interests of every employee. As of December 31,2022, Shougang Steel had 18,608 employees in total. The signing rate of labor contractwas 100% and the coverage rate of collective labor contracts reached 100%.The company is committed to providing equal opportunities for every employeeand believes that differences in nationality, ethnicity, religious beliefs, and culturalbackgrounds can bring greater innovation. We respect the customs and habits ofethnic minority employees and strictly protect the personal privacy of employees. Inrecruitment, salary and bene?ts, vocational education, technical training, promotion,and participation in enterprise democratic management, we make our decisions onobjective facts and do not discriminate against or treat employees differently based ontheir gender, physical characteristics, marital status, or other reasons.The company is committed to implementing human rights protection policies, andrespecting employees' rights to freedom of association, participation in trade unions,and collective bargaining. We prohibit forced labor, child labor, and workplaceharassment. We have formulated management measures such as theProhibition ofChild Labor Regulations and Child Labor Remediation Control Procedures, Standards forthe Protection of Female Workers and Minor Workers, Standards for the Prohibition ofDiscrimination, Harassment, and Abuse,andStandards for the Prohibition of Forced Labor.
Thereby, we strengthen monitoring in the recruitment, employment, and promotionprocesses, establish channels for employees to appeal to senior management, andeliminate the use of child labor, forced labor, harassment, bullying, intimidation, andother illegal behaviors, resolutely safeguarding employees' human rights. In 2022,Shougang Steel did not have any illegal or irregular employment incidents.Employee Structure
滶滼為
滷滶為滺滷為滶滵為
50 years old or older
40-50 years old30-40 years old 30 years old
or younger
滻滽為滹為滶滷為
滶為滶滷為
滸為
Production StaffSales StaffTechnicianFinance StaffAdministrative StaffService Staff
滽為
滹滸為滸滶為
滶滽為
Master‘s degree or aboveBachelors’ degreeAssociate's degreeVocational secondary and below
In alignment with the values of "loyalty, gratude, passion" and the philosophy that "talentdrives development, and development shapes talent", Shougang Steel adheres to a talent-empowering strategy, building a comprehensive "selecon, culvaon, ulizaon, retenon"closed-loop management system. This approach energizes the talent pool, establishes acompeve edge in talent recruitment, and reinforces the talent foundaon for building aglobally influenal steel enterprise.
Salary and BenefitsShougang Steel has established a comprehensive and differentiated salary and incentive mechanism, and a fair andfavorable incentive salary structure. The salary structure bases on basic salary and follows the principle of equal payfor equal work, supported by performance bonuses, allowances, and bene?ts. The salary and incentive mechanism andstructure ensure that employees receive remuneration consistent with the posts they held and the value they created.At the same time, we continuously optimize salary management measures, establish long-term incentive mechanisms,and formulate equity incentive policies. The scope of incentives includes core technical personnel and managementbackbones, fully exerting the incentive effect of the salary system on talents and fully mobilizing employees' enthusiasm,initiative, and creativity. During the reporting period, we formulated and implemented theJob Salary Management System,Salary Management System,and Performance Assessment and Distribution Management System.
Salary and Benefits System:
Salary and bonuses: Job salary; Performance salary; Overtime pay; Individual rewards, etc.Various subsidies: Seniority wages; Housing allowance; Transportation subsidy; Communication subsidy; Position
allowance; Subsidy for working in a different location; Subsidy for high-skilled talents; Allowance for team leaders andgroup leaders; Craftsman allowance; Female worker fee; Subsidy for infants and young children; Only child fee; Othersubsidies, etc.
Medium and long-term incentives: Equity incentives; Tenure incentives, etc.The company continuously improves employee bene?ts and has formulated theThree-Year Plan toImprove Employee Quality of Lifeto continuously improve employee welfare levels based on nationalstatutory standards. Various types of paid leave, such as paid annual leave, family visit leave,childcare leave, parental care leave for only children, and paternity leave, have been provided toemployees, making them have more time to spend with their families and helping them achieve abalance between work and life.
Non-monetary Benefits:
Various types of protection: Social insurance such as pension, unemployment, medical, work-
related injury, maternity; Supplementary medical insurance; Employee mutual aid insurance, etc.
Various types of paid leave: Statutory holidays, weekends; Paid annual leave; Family visit leave;
Marriage and funeral leave; Supplementary leave for female workers; Maternity leave; Childcareleave; Paternity leave; Parental care leave for only children, etc.Various projects: Health check; Occupational health monitoring; Recuperation, etc.
In order to enhance employees' sense of happiness and belonging, Shougang Steel has taken various measures. Interms of infrastructure, the company builds "Workers' Home", which includes staff gymnasiums, libraries, and otherprofessional equipment such as intelligent physiological screening robots, providing employees with comprehensive restareas. The company has also further improved on-site living facilities and commuting conditions, continuously improvingon-site living standards. We also provide guaranteed housing for employees, and assist in the enrollment of employees'children, ensuring the well-being and career development of employees. In terms of soft bene?ts, Shougang Steel hascarried out activities such as sending warmth during festivals, providing coolness during the summer, showing careduring major situations, and implementing a health care plan for employees. The company has organized employeerecuperation, employee car purchase discounts, and parent-child sports events, and conducted special lectures onparent-child relationships and psychological adjustment during exams, as well as summer care classes for employees'children, enhancing employees' quality of life and sense of pride in their work. In 2022, our employee satisfaction reached100%.
Providing coolness during the summer
Providing equal opportunitiesfor every employeeImplementing human rightsprotection policies
In 2022, the signing rate oflabor contract:
100%
The coverage rate of collectivelabor contracts:
100%
In 2022, Shougang Steel was awarded the "National May Day Labor Award" "National Harmonious Labor RelationsDemonstration Enterprise" and was named one of the top ten "Bookish Enterprises" of Beijing. The employee health cabinwas recognized as an outstanding demonstration site.
In 2022, the socialinsurance coveragerate:
100%In 2022, employeesatisfaction:
100%
62 63
?Employee CareDemocratic ManagementShougang Steel always listens sincerely to the voicesof employees, ensuring that their most concerned,urgent, and dif?cult issues are promptly addressedand resolved through online and of?ine communicationchannels, guaranteeing employees' right to know, toparticipate, to express, and to supervise, and jointlybuilding harmonious labor relations with employees.Through online channels, we have set up a "EmployeeService Hotline" to respond, process, and provide timelyfeedback to employees' reasonable demands. We alsouse the Shougang Sincere Friend app, special meetings,WeChat subscription, and other means to convey thelatest information on corporate strategy and industrytrends to employees, enhancing their understanding ofthe company's development. Through of?ine channels,we have formulated theFactory Affairs Open ManagementSystem, conducted annual employee satisfaction surveys,held quarterly employee demand meetings, and regularlyorganized employee forums and "Listening to Voices andSolving Problems" reception events, to directly respondto and resolve employee needs.
Assistance for Employees in DifficultiesShougang Steel is committed to creating a corporate culture atmosphere that cares for employees, and continuouslyimproving the long-term and normalized assistance mechanism. We gradually improve the system of assistance and relieffor employees in dif?culties, and provide assistance and relief through multiple channels and methods such as visiting andcomforting, fundraising, employee mutual aid insurance, and Shougang assistance fund. In 2022, the company formulatedtheSubsidy fir Employees in Difficulties Management System.
Employee Demand Meeting
Comforting
The company actively promotes democratic management, continuously improves the democratic management systemwith the Workers' Congress as the basic form, and revises theRegulations on the Workers' Congress, fully playing therole of the union as a bridge and link. We listen to the opinions of employees in advance and accept their supervisionafterwards on hot and dif?cult issues including company development, cadre appointment, salary and bene?ts, and othermatters that are closely related to the vital interests of employees, to ensure their right to know and to participate to themaximum extent.
In 2022,
employee demands intotal were responded to and resolvedThe response rate, resolution rate, andsatisfaction rate all reached100%
Mental HealthIn addition to ensuring the physical health of employees, Shougang Steel actively explores new methods and approachesfor employee mental health, and constructs a comprehensive and full-cycle service for employee health. We build "Homefor Employees" and "Soul Station", conduct annual assessment of overall employee happiness index and psychological riskscreening, hire senior professional psychological counselors for one-on-one counseling four times a week, provide a 24/7counseling service hotline for employee psychological counseling, and organize positive psychology growth salons, mentalhealth lectures, and other activities to help employees and their families obtain timely and effective psychological support.
A Series of activities for International Women's Day
Soul Station
Mental Health Training
In 2022, Shougang Steel organized a series of activities for International Women's Day and the "Women's MeritCompetition". We also organized daily activities for female employees, such as yoga, physical training, parent-childearly education training, and live streaming of beauty and makeup. We conducted a series of knowledge lectures ongynecological health and psychological care for female employees, and organized special physical examinations forfemale employees, with a 100% participation rate. In addition, we established a volunteer team to guarantee the supplyof daily necessities for female employees living in the factory, and set up a "Resident Female Employee Daily NecessitiesGuarantee Group" to provide one-on-one assistance in solving special needs, coordinating and distributing labor protectionsupplies for female employees living in the factory, and solving practical dif?culties.
Caring for Female EmployeesShougang Steel is committed to safeguarding the rights of female employees from the root, and paying attention to theneeds of female employees. We conduct special physical examinations for female employees every year, organize lecturesand activities on women's health, and comfort female employees in dif?culties and single-parent female employees, toimplement concrete measures to care for female employees. In 2022, the company reviewed and approved theSpecialCollective Contract for Safeguarding Female Employees's Rights.
64 65
Shougang Steel implemented the 5+N psychological care action plan, which includes: establishing a base,conducting a set of training, cultivating a team, conducting an assessment, and providing one-on-onecounseling. At the same time, comprehensive activities such as psychological care in work teams and otherN items are carried out, using various methods to provide knowledge, assistance, and services to employees.By improving psychological quality through mental health services, employees can work happily and livehealthily.
5+N "establishing a base": Shougang Steel has built the "Harmony Team" training base and employee soulstation with high-standard in employee living area, with an area of 300m
, including reception area, groupactivity room, counseling room, VR experience room, 4D stress relief space, venting room, and other 10functional areas.5+N "conducting a set of training": Shougang Steel cooperated with a professional psychological technicalservice team to develop the "Employee Harmony Team Training System" and carry out comprehensive mentalhealth knowledge popularization and training for all employees.
5+N "cultivating a team": We have formed internal trainers for psychological care and formulated the
Employee Harmony Team Training System Internal Trainer Development Project Plan.In July 2022, a three-day SPC employee psychological care instructor training was conducted, and a professional skills trainingcerti?cate for employee psychological care instructors was issued by the Of?ce of National Workers HealthPromotion Project.
5+N "conducting an assessment": We have developed a set of psychological health assessment systemsuitable for Shougang's characteristics, and conducted annual assessment of the happiness index andpsychological risk screening for all employees. In 2022, a survey on "employee happiness" was conducted,and 17 team counseling sessions and one-on-one interviews with 120 employees were organized. Employeehappiness index increased by 1 percentage point year-on-year.5+N "providing one-on-one counseling": We have established an employee psychological counseling roomand hired senior professional psychological counselors to provide one-on-one counseling on Tuesdays,Thursdays, Saturdays, and Sundays to help resolve psychological problems.
5+N "N" series of practices: We conduct positive psychology growth salons, mental health lectures; bringpsychological care to work teams and employees; organize "Harmony Leadership Enhancement Training",etc.
Case: 5+N psychological care model
Won the "Outstanding Employee Psychological Service Promotion Project in 2022" of Beijing Federation of Trade Unions
Employee happiness index increased by
percentage point year-on-year
Rich and Colorful Activities
The company holds employee cultural festivals and labor and skills competitions annually, and periodically organizesvarious activities and competitions such as food exhibitions, photography, speeches, and singing to meet the spiritual andcultural needs of employees, enhance their vitality and sense of happiness, and create a warm and welcoming atmosphereenterprise. In 2022, the company organized a series of 20th CPC National Congress activities such as walking, themedconcerts, and story competitions. We also organized Spring Festival garden parties, Mid-Autumn Festival and NationalDay celebrations, and a series of cultural and sports activities such as host challenges, basketball games, and youthfriendship events. In addition, we organized four categories of 21 online activities, including readings and cloud singing, toenrich employees' leisure lives.
Employee Cultural Festival - Swimming CompetitionEmployee Cultural Festival - Badminton Competition
Employee Cultural Festival - Other activitiesEmployee Cultural Festival - Basketball Competition
Youth friendship activities
WalkingParent-child activities
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Spring Festival garden party activitiesMid-Autumn Festival garden party activities
Other colorful activities
I am Jingtang's excellent lecturer competition 119 Fire Safety Month series of activities
"Shining Stock" Youth Host Challenge"Celebrating Mid-Autumn Festival, Welcoming National Day"
large-scale food exhibitions
?Talent AttractionIn order to attract high-quality talents, Shougang Steel conducts campus recruitment and social recruitment throughdouble selection meetings, special job fairs and other forms. We collaborate with universities such as University ofScience and Technology Beijing, Beijing Institute of Technology, and Yanshan University to build university-enterprisetalent cultivation programs. To accelerate the growth and development of talents and enhance the introduction of high-quality talents, we have made aWork Plan for Differentiated Cultivation and Incentive Mechanism of Graduates.In addition, tomotivate and retain core talents, the company has introduced equity incentive plan for core technical skill employees.?Career Development
Shougang Steel adheres to the concept that talent is the primary driving force for enterprise development. Based onrespecting, caring for, and developing talents, the company continuously optimizes the building and development systemof the company's talent team. Supported by capabilities in technology, evaluation methods, and development strategies,based on the development path of three talent team channels, an empowerment and development system named "voyage"for high-potential talents, and the training and management system for all members of the three talent teams, we haveformed a "Three Teams, Three Series, and Three Channels" development and management relationship that encouragesboth vertical promotion and horizontal collaboration. We are committed to creating a comprehensive ecological systemconducive to talent growth and development, laying a solid foundation for sustainable development.The company has built the "voyage" full life cycle career development system, gradually established ?ve levels of talentdevelopment and training platforms: "Wave, Sail, Set Sail, Guide, Lead", based on the talent positioning needs of differentlevels. Thanks to the continuous diversi?cation, targeted empowerment training, scienti?c evaluation and selection, etc.,the construction of the "Dual System" of three sequences talent management is solidi?ed, the vitality and creativity ofemployees is stimulated, and the internal driving force for development is strengthened.The company has improved the evaluation mechanism, implemented the promotion of positions and ranks, and optimizedthe promotion of primary management personnel to promote three sequences talent incentive mechanisms. The companyhas innovatively implemented performance accumulation system, using cumulative points as promotion entry clause forhigh-level talents. During the reporting period, the percentage of employees receiving regular performance and careerdevelopment reviews is 100%.The company attaches great importance to employee career planning and development, and helps employees achievetheir career goals through measures such as training and development, job rotation, skills competitions, performanceevaluations, and job promotions. During the reporting period, the company implemented the "Big Positions, Big JobCategories" labor organization model, the "Master Craftsmen" selection and evaluation system, and strategic talentreviews to create a talent hub for scienti?c and technological talents. The company recommended, voted and hired the?rst batch of "Shougang Scientists" to create good environment that values technology and cherishes talents.
"Voyage" full life cycle career development system
Lead PlanGuide PlanSet Sail Plan
Sail PlanWave Plan
Cultivate a group of high-potential strategic talentsCultivate a groupof high-potential key talentsCultivate a groupof high-potentialcore talents
GoalGoalGoal
Cultivate a groupof high-potentialbackbone talentsCultivate a groupof high-potential
Skill Operation Sequence
Professional Technology Sequence
Business ManagementSequenceSenior assistantMiddle-level manager
Middle-level assistantWave A/B/C/D plan, post practice stage + targeted training stage, differentiated salary + salary protection periodThree mentor system: career development mentor, professional development mentor, post practice mentor
Red and yellow card mechanism
Shougang CraftsmanShougang Steel CraftsmanShougang ScientistChief Technical Expert
Chief EngineerSenior director
Director
Chief skill expertChief technicianSenior worker
Intermediate workerJunior workerSenior technician
TechnicianSupervisorChief OfficerAssistant OfficerSupervisor Reserve
GoalGoal
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?Employee TrainingTo comprehensively and thoroughly implement the strategy of making theenterprise stronger through talents, Shougang Steel has built a multi-dimensional talent training system, promoted the construction of a learningorganization, and provided training for all employees. The company hasformulated the2022 Talent Work Promotion Plan,combined with the2022Employees Education and Training Work Plan,focusing on six key areas suchas leadership development, scienti?c and technological innovation, functionaland professional improvement, and empowerment of front-line workers,implemented 82 targeted training programs at different levels, and establisheda sustainable talent training mechanism through training course systemsdesign, training systems implementation, and training evaluation effectstracking. During the reporting period, the training coverage is 100%.
18,608participants trained
1,316,073
training hours
The company has established a four step closed-loop management mechanism of "selection—cultivation—utilization—motivation" for internal trainers, realizing talent empowerment and focusing on building a high-quality professional talentteam. As of the reporting period, we have a total of 1,020 internal trainers.Skill competitions provide strong talent support for high-quality development and create a "Fast Lane" for the growth anddevelopment of skilled personnel. In 2022, Shougang Steel held the 8th Vocational Skills Competition, with 91 preliminarycompetition job categories and 9,042 participants in the preliminary competition. 762 participants participated in the ?nalsof 17 job categories, achieving a double increase in both the number of job categories and participants.Shougang Steel continues to cultivate a fertile ground for talent development, incubating an innovation cradle. Withexpert workstations and employee innovation workshops as the strategic platforms, high-tech and high-skilled talentsas the leaders, we incubate and cultivate innovation backbone talents, accumulating empowerment for the sustainabledevelopment of the company.
Talent development measures of Shougang Steel in 2022"Cyan" Training Program
In order to help new employees integrate into their work quickly, the company implements
the "Cyan" training program, formulates career planning and training plans, and assigns
corresponding mentors to help them grow rapidly."Deep Blue Training Camp"training program
In order to identify, cultivate, and retain talents with leadership qualities and key positions
potentials, Shougang Steel implements the "?ve forces model" Deep Blue Training Camp
training program to cultivate a core middle-level leadership team with market thinking,
excellent leadership, and high performance execution.Technology InnovationYouth Training Camp
In order to strengthen the talent echelon and reserve construction, in 2022, Shougang Steel held
the "Technology Innovation Youth Training Camp". 46 young talents of the company participated
in a two-month full-time training, continuously empowering the company's technological
innovation.Promoting the "Bigpositions, Big jobcategories" labororganization model
The company continues to promote the "Big Positions, BigJob Categories" labor organization
model, providing a platform for operators to engage in entrepreneurship and effectively forming
a positive development channel with development opportunities. In 2022, 38 pilot positions for
"Big Positions, Big Job Categories" were established, 152 talents of "All-round Duty Workers"
were trained by the energy department, and 63 talents of "Full-line Operators" were trained by
Cold-R Co.Establishing "MasterCraftsmen" evaluationmechanism
The company has established a hierarchical evaluation mechanism "Master Craftsmen", which
includes gold, silver, bronze, and skilled operators, and carefully cultivates a high-skilled talent
team with knowledge, skills, and innovation.
In 2022, according to the principles of "internal strengthening planning, external expansion of channels" andthe full coverage of main categories of work in company-level competitions in ?ve years, Shougang Steelhas built a competition platform and organizes multi-level skills competitions annually. At the same time,in accordance with the requirement of "training and preparing throughout the competition", we establishtraining bases, simulation laboratories, and training classrooms for multiple categories of work, and combinethe competition with job operation training through theoretical knowledge training and on-site practicalexercises. We have cumulatively cultivated more than 300 technical experts at all levels of the country,Beijing, and Shougang.
Case: Special skills training for "promoting learning throughcompetition and promoting application through learning"
?Work Safety ManagementHealth and Safety Management SystemShougang Steel consistently prioritizes the health and safety of employees. The company strictly complies with relevant laws andregulations such as theWork Safety Law of the People's Republic of China, Law of the People's Republic of China on Prevention and Controlof Occupational Disease and Fire Prevention Law of the People's Republic of China.We adhere to the principle of "safety ?rst, peopleand life foremost", establish the safety production committee, strengthen the responsibility system for safety production, promotestandardized safety production procedure, and create safe and healthy workplace for employees and stakeholders.The company has set short-term and long-term occupational health and safety management goals. During the reporting period,Shougang Steel did not experience major or over safety accidents, and the injury severity rate of work-related accidents in millionman-hours was 0. In 2022, the company invested a total of 137 million yuan in work safety sector.Qiangang Co., Jingtang Co., New-E Co., and Cold-R Co. have all obtained ISO 45001 Occupational Health and Safety ManagementSystem certi?cation. The company implemented work safety standardization construction in multiple production units according tothe ?rst-level standard. Among them, Jingtang Co.'s sintering plant and pelleting plant, rolling, iron-making, energy, and steelmakingunits have all passed the ?rst-level certi?cation of safety standardization. Qiangang Co.'s iron-making and energy units, New-E Co.,and Cold-R Co. have also passed the ?rst-level certi?cation of safety standardization. Other production units have met the applicationconditions for ?rst-level certi?cation of safety standardization.Intrinsic Safety ManagementBased on the consideration of "Personnel-Machine-Environment-Management", Shougang Steel adheres to the principleof source control, fully utilizing technological and informational means such as "Mechanized personnel replacement,Automation to reduce personnel, and Intelligence to eliminate humans" for unmanned operations, to strengthen safetybehavior control and strive to build an inherently safe company.
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Case: Strengthening emergency plan drills, and enhancing theoverall emergency rescue and disposal capabilities of all staff
Dual-Prevention Mechanism ConstructionShougang Steel continues to promote the construction of dual-prevention mechanism for risk classi?cation controland hidden danger investigation and governance. We formulate a list of hazard identi?cation and control measures andcarry out standardized and normalized risk classi?cation and control. The company also independently develops a "DualControl" system to automatically investigate hidden dangers. It concludes the process and equipment parameters ofmajor risk points such as BF top pressure and difference in oxygen gun in?ow and out?ow into the system platform forreal-time monitoring, forming an intelligent closed-loop control process of "alarm push-noti?cation disposal-recti?cationcon?rmation"
Safety Emergency DrillsThe company has revised the company's production safety emergency plan and improved the emergency drill system inaccordance with the requirements of normative documents such asRegulation on Emergency Responses to Work SafetyAccidents,and effectively enhanced the level of emergency management from aspects such as emergency monitoringand early warning, equipment upgrading and modernization, and the construction of a cross-regional and adjacent postemergency coordination mechanism. In 2022, the company strengthened monitoring and early warning, and promotedthe application of 129 sets of mobile sentinels, temperature-sensitive thermal imaging electrical ?re monitoring,and continuous toxic and harmful wireless monitoring systems for high-risk operational sitess such as limited spaceoperations, hot end work operations, and gas operations. We also launched an intelligent ?re?ghting "cloud maintenanceand cloud patrol" management system to ensure the continuous operation and safety of employees. The companyconducted a total of 3,571 safety emergency drills.
Safety Management of StakeholdersShougang Steel regards stakeholders as part of the safety management community, incorporates relevant units intointernal overall management, builds a work safety responsibility system, implements hierarchical and classi?edmanagement, and highlights the long-term mechanisms of overall management, accurate control, and autonomousimprovement. Based on the risk characteristics of maintenance and construction projects, the company has focusedon the development of "mechanization to replace humans" workwear. In 2022, the company focused on tackling thedif?culties and bottlenecks during the course of equipment maintenance, which are characterized by high hazardcoef?cients, time-consuming, and labor-intensive. The company also independently developed and customized 124 setsof maintenance workwear, comprehensively improving the level of standardized management of maintenance safety andensuring the health and safety of relevant personnel.
Risk classi?cation control and hidden danger investigation and governance measures adopted in 2022Continuouslypromting specialrecti?cation
The company continues to promote special recti?cation work. We have carried out the "Hundred DaysZero Clearance Action", organized the "Look Back" of key areas such as relevant parties, maintenanceand construction, safe electricity use, and material silos, and achieved a 100% completion rate forhidden danger recti?cation.Solidly doing agood job in safetyand stability work
The company conducted in-depth inspections of safety production around special events such as the"Winter Olympics", the "Two Sessions", and the "20th National Congress", identi?ed various risks andhidden dangers, which strengthened responsibilities to ensure safety and stability during key periods.Creating incentivemechanisms forclosed-loop safetymanagement
The company continues to carry out series of selections such as "Skilled Inspectors" "GovernanceModels" "Sharp Eyes", and "Safety Experts", fully stimulating the intrinsic motivation of employees toparticipate in intrinsic safety management. At the same time, we comprehensively implement high-risk analysis pre-shift meetings, continuously strengthen the closed-loop process of "identi?cation-con?rmation-operation" for high-risk operations, and strictly prevent unsafe behaviors.
Shougang Steel combined on-site safety risks
and the demand for employees' emergency
response capabilities, formulated annual
emergency drill plan for work safety accidents
in 2022, cooperated with local government
emergency rescue forces, and carried out
emergency plan drills for safety, ?re protection,
occupational health, and other activities.
Control of personnel's work behavior and abnormal statesControl of the status of objectsShougang Steel uses intelligent analysis cameras and "superbrain"AI self-learning and training functions to real-time identify violationssuch as unauthorized entry of zinc pots and surrounding, personnelfalling, and failure to wear safety helmets, as well as abnormalequipment temperatures, achieving automatic capture, analysis,alarm, SMS noti?cation, and hidden danger management taskassignment of 24-hour safety warnings.
By upgrading the existing online monitoring systemfor hazardous gases, Shougang Steel collects,analyzes, classi?es alarms, sends SMS noti?cations,and at the same time, automatically generatesalarm data and sends hidden danger noti?cations torelative personnel precisely, supervises the entireprocess of recti?cation and acceptance, and achievesPDCA closed-loop control.
?Construction of Smart Safety Enterprise
Shougang Steel actively promotes the digital and intelligent transformation of safety management, builds a smart safety-oriented enterprise around the elements of health and safety, ?re protection, and emergency production management,strengthens the safety monitoring of production processes and sites, and continuously improves the standardization levelof safety management.Information-based Standardized Safety Management
The company establishes a safety management platform based on the "dual prevention mechanism" and "safetyproduction standardization", improving the ef?ciency and accuracy of the company's health and safety management.This platform mainly includes functions such as safety training activities, risk control, hidden danger investigation, andmonitoring and early warning.Visual Comprehensive Monitoring of Safety Risks
The company utilizes the safety management platform to promote the process control of safety risks. In 2022, thecomprehensive coverage of workplace monitoring videos was completed, and process monitoring of hazardous operationsand key control projects was achieved through video surveillance and online monitoring technologies. This timelyregulates employees' work behavior and ensures safe and ef?cient production.
Intelligent Safety Real-time Monitoring and Early Warning
The company promotes the construction of an intelligent "Dual Control" system to monitor and warn personnel'swork behavior, abnormal states, and the status of objects. The company builds an information-based and intelligentmanagement system based on industrial Internet to perceive, assess, monitor, warn, and handle safety, thereby reducingsafety risks and improving the level of intelligent safety prevention and control of the enterprise.The company has developed an automatic hidden danger investigation function in the "Dual Control" system, whichmonitors the process and equipment parameters in real-time and sets 774 warning and alarm thresholds. At the sametime, it sets warning lines for major hazard sources and major risk operation data, enabling proactive control andenhancing the control capabilities of major hazard sources and major risks.
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Safety Three-Minute Learning: Shougang Steel organizes daily morning meetings of "Safety Three-minute" learning, focusing on the interpretation of new laws and regulations, intrinsic safety management,interpretation of major accident hazards, and other series of content to instill the concept of "safety ?rst"to all employees. During the reporting period, a total of 877 issues of 40 series of "Safety Three-minute"learning materials were organized.Safety Little Instructor Training: Shougang Steel vigorously strengthens the construction of the safetyeducation team, and trains team little safety instructors. The company organizes internal excellent lecturersand a little safety instructors to carry out safety lectures, helping cadres and employees to become experts insafety. During the reporting period, 30 new excellent little instructors were added, a total of 2,021 coursewarewere produced, and 3,365 trainings were conducted with 37,203 participants.Enhancing the safety management capabilities of grassroots backbone: Shougang Steel organizes team
leaders to conduct special training on safety knowledge such as safety standardization, emergency rescue,gas, con?ned spaces, and safety culture.
Case: Safety education activities organized by the company in 2022
Six OnesWork Safety
Month
Work Safety LectureMajor cleanup ofaccident hazards
Safety Propagandaand Consultation
DayWarning educationactivity to strengthen theawareness of red lines
Comprehensive emergencyevacuation drill for allemployees
? Safety Culture Construction
Shougang Steel adheres to the principle of "shaping culture with safety andpreserving safety with culture", strengthens the sense of responsibility for worksafety of all employees, and continuously optimizes the safety culture system,including the assessment mechanism for safety objectives, the implementationmechanism for safety regulations, and the education and training mechanism forsafety. This promotes the stable development of work safety.Safety Performance Linkage
The company continues to improve theSafety Performance Evaluation Criteria,conducts job safety responsibility assessment, sets 9 dimensions and 34 evaluationcriteria, and promotes the implementation of safety responsibilities at all levels.In order to ensure the standardized operation of the hidden danger investigationsystem, the company analyzes and evaluates the hidden danger investigationdata at all levels on a monthly basis, and the evaluation results are includedin the monthly safety performance, eliminating the "idle" of the hidden dangerinvestigation system.
Safety Education
The company strengthens the overall safety competence of all employees,formulates an annual safety training plan, and conducts special training onemergency rescue, ?re management, limited space operations, hazardouschemicals management, etc. The company adopts a combination of online andof?ine training methods to ensure full coverage of safety training for all employees.
2.7719
million yuaninvested in work safety training
801,222
training hours
193,985
participants in the trainingThe coverage rate of employee andrelated party safety training:
100%
Work Safety Culture Promotion
The company is committed to ensuring thehealth of employees and their families. Thecompany organizes a series of educationalactivities during the "Work Safety Month" everyyear, focusing on the theme of "complyingwith the work safety law and being the ?rstperson responsible", and carries out the "SixOnes" activities. At the same time, we organizeemployees' family members and relatedparties to participate in the "Work Safety FamilyCulture" including company's safety, ?re, andhealth education activities, further enhancingemployees' safety awareness and their ability torespond to emergencies.
Through activities such as safety VR experience, work safety lectures,safety skills competitions, and party member demonstration posts,Shougang Steel continuously enhances the safety awareness and qualityof all employees, and deepens the construction of Shougang Steel'ssafety culture. Among them, the activity of leaders "Going on Stageand Talking about Safety" was carried out, with leaders at all levelsconducting 341 trainings with a total of 12,420 participants throughoutthe year.We innovated the content of safety activities, organized 8 online family-enterprise linkage and family-assistance safety activities; collected33 suggestions, completed 446 standardized and quali?ed internalevaluations of team groups, and shaped safety cultural symbols withShougang Steel characteristics through continuously summarizing andre?ning.At the same time, the company creates a "One Family" culturalactivity for relevant parties, with a focus on clear responsibilities,ful?lling responsibilities, and taking responsibilities. We implementedhierarchical, layered, and classi?ed management for 95 long-termrelevant parties. Through forms such as "self-improvement + guidanceand assistance" and "typical experience exchange tour", we promotemutual learning and exchange of safety management experience andsafety culture integration, and build a new pattern of win-win situationin enterprise governance capability building and the implementation ofrelevant party's main responsibilities.
Case: Carrying out characteristic safety culture activities,deepening the construction of Shougang Steel's safety culture
In 2022, Qiangang Co. andJingtang Co.were respecvelyawarded the advanced unitsfor emergency managementand work safety in HebeiProvince.Qiangang Co. was awardedthe tle of "HealthyEnterprise" in Hebei Province.Cold-R Co. was awarded theadvanced unit for fire safetywork in Shunyi District, Beijingin 2022.
?Occupational Health ProtectionShougang Steel is committed to building a healthy enterprise. In accordance withtheLaw of the People's Republic of China on Prevention and Control of OccupationalDiseases, Regulations on Occupational Health Management in Workplacesand otherrelevant laws and regulations, we have formulated theOccupational Disease HazardPrevention and Control Responsibilities. The company continuously improves theworking environment and conditions, protects the physical and mental healthof employees and related parties through occupational health standardizationsystem, and occupational health monitoring. In 2022, no cases of occupationaldiseases were found.The company strengthens occupational health monitoring, conductscomprehensive health check-ups for all employees, and establishes employees'occupational health monitoring ?les. In addition, we provide personal laborprotection equipment that meets the requirements of job operations foremployees, and set up occupational disease prevention facilities such as dustcollectors and soundproof walls to ensure the occupational health and safety ofemployees and related parties during the operation process.The detection rate of occupationaldisease hazards:
100%
Occupational hazard exposurecerti?cate rate:
100%
The rate of employee occupationalhealth monitoring:
100%
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?Quality Management SystemShougang Steel adheres to the quality management concept of "dedicated to excellent products, pursuing customersatisfaction", strengthens the quality responsibility system structure, solidly promotes the construction of quality,environment, and occupational health and safety management system on the basis ofManagement Manual,continuouslyimproves product quality, meets customer needs, and creates value for customers.The company implements comprehensive quality assurance and quality prevention. The company has obtained ISO9001quality management system certi?cation, IATF16949 automotive industry quality management system certi?cation,ISO27001 information security management system certi?cation, and ISO10012 measurement management systemcerti?cation. We have obtained third-party product certi?cations such as CE certi?cation, BIS certi?cation, UKCAcerti?cation, and certi?cations from multiple international classi?cation societies, and maintained the continuous andeffective operation of the quality system. The company's laboratories have accredited by the China National AccreditationService for Conformity Assessment (CNAS), which provide strong technical support for the products quality and innovativeresearch and development.?Quality Risk Control
Strengthening Process Control
The company establishes quality management systems such as control plan management, product standardmanagement, product identi?cation management, and non-conforming product management. At the business level, weclarify the content of quality control at various levels by combing through business processes from product managementand process management. The company insists on benchmarking advanced manufacturing services, focusing on "qualityimprovement, cost reduction and ef?ciency enhancement, competitive advantage", and continuously improving the serviceskills of user technical personnel and providing technical support for production lines.
Product development quality management:Combining the APQP (Advanced Product Quality Planning) process withthe actual situation of the company, we optimize the product development process, and implement a hierarchicalmanagement model for the development of new products/components to ensure the reliability of product quality.
Supplier quality management: Starting from the source of raw material procurement, the company creates a supplychain evaluation model to comprehensively evaluate the supplier's ability to stably supply goods from the perspectiveof the quality system. It realizes the switching from quality inspection of supplied goods to supplier production processcontrol, leads supplier quality improvement, and ensures the safety of product quality.Manufacturing quality management: Quality control points are implemented in aspects of personnel, machines,materials, methods, environment, and measurement, and established control standards are adhered to during productionpreparation. In addition, online automatic detection equipment is equipped in the entire process and multiple processesto build an online quality monitoring platform to ensure the stability of product quality. Furthermore, the company
Qualitycost
Targetmanagement
Documentmanagement
Recordmanagement
Identificationand traceability
Stakeholdermanagement
Product and manufacturing
process development
Contract ordermanagement
Production plan management
Production process
management
Inspection andtesting management
Productprotection
Logistics andtransportation
Product deliveryUser
userProcurementmanagement
Correction, prevention andimprovement management
Customer feedbackinformation processing
Managementreview
Non-conforming
product managementProcurementmanagement
Full-process quality assurance system
Strengthening Supervision and AssessmentThe company has established a comprehensive system for product quality rewards and punishments, which includesmechanisms for inspection management, customer complaint handling, problem listing and oversight, and professionalassessment management. Implementation of inspections and supervision occurs at all levels, with weekly self-inspections by each unit and joint inspections by specialized departments. Through careful analysis and resolution ofcustomer complaints, the company has enhanced customer satisfaction.In addition, Shougang Steel has formulated theProduct Management Accident Measuresfor production line quality issues,and divided them into corresponding assessment methods based on accident levels. At the same time, in order to motivateemployees to innovate and promote continuous improvement of quality, we carry out activities such as "Listed SupervisionProjects" and "Double Ten Projects" to tackle bottleneck quality issues. Every year, we evaluate outstanding individualsand collectives in terms of quality, creating a good atmosphere of everyone participating in quality improvement.In 2022, the company implemented the "Quality Improvement Year" and conducted 50 rounds of process qualityinspections throughout the year, checking 552 items and identifying 84 issues. At the department level, we conducted 50rounds of process quality inspections, checking 4,295 items and identifying 431 issues. With the focus on closing the loopon quality technical issues and management issues, we continuously improve the level of quality management throughorganizing quality inspections and quality problem-solving.
Intelligent Control of the Entire Quality Process
The company has built a full-process quality control system around intelligent quality process determination and cross-process quality traceability analysis. In the quality control stage, key links in each process are equipped with intelligentcontrol models to establish online determination and process monitoring throughout the entire process. This enablesmacro-control of quality control and facilitates the separation and positioning of defects in processes, making it easierto dynamically adjust processes. Through the application of intelligent control of the entire quality process, the companycomprehensively enhances its quality control capabilities and responds promptly to customer demands.
Product full-process quality control systemQuality traceability
and analysis
Monitoring and analysis of key quality controlindicatorsComprehensive evaluation of qualitythroughout the whole product process
Cross-process product quality interactionanalysis and abnormal diagnosis
Quick backtracking of quality disputes
Manufacturing management dataCustomer usage dataManufacturing process dataSurface defect data
Integration and data modeling of full-process quality dataData splicing of steelmaking processData splicing of hot rolling processData splicing of pickling and rolling processData splicing of galvanizing process
Enterprise big data center
Intelligent quality process determinationSurface defect detection classification
Online monitoring and early warningof the manufacturing processIntelligent online productdeterminationPerformance forecast of the previousand next processesQuality defect review assistance
Cross-process defect traceabilitySurface quality grade determinationDDCD
CAAA
Quick data collection of surfaceinspection instrumentsMachine learning defect imageclassification
Qualityknowledge
base
Product full-process quality control system's functional architecture diagram
has participated in the revision of 4 national standards and led formulating of 1 industry standard in terms of qualityinspection. The company has established requirements for quality accident management, non-conforming productmanagement, and product quality inspection, clarifying the responsibilities and management processes of each unit in theproduction process, and strictly controlling the product quality.Customer quality management:The company delivers products utilizing a three-level service system, implements the
"technology + sales" dual representative system, switches services from after-sales to pre-sales, actively responds tocustomer feedback, and provides "personalized" full-lifecycle services to users. At the same time, we establish logisticsquality management, setting acceptance release standards for port storage and loading operations, to ensure that productlabels and physical quality are consistent, and to safeguard the timely delivery of products to customers.
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Case: Cold-R Co. tackled quality control challengesand solved the "bottleneck" problemsIn 2022, Cold-R Co. successfully produced a test coil that exceeded the upper limit of the product's design widthon the galvanizing line No. 2, which is of great signi?cance for further enhancing the cold rolling galvanizedautomotive sheet order-taking capability and improving the supply level for automotive sheet customers.In order to meet market demand, Cold-R Co.'s product quality improvement team focused on optimizing productstructure and increasing production capacity, gathering technical backbone, conducting technical demonstrationsand implementing plans, independently upgrading and transforming existing equipment, breaking throughequipment bottlenecks. Focusing on the product goals of widening the galvanizing line No. 2, 28 equipmentupgrade and modernization contents were sorted out, and independent upgrade and modernization were carriedout to solve the "bottleneck" problems that restrict the stable operation of the widening production system, solvethe equipment problems that have troubled its production and product quality, restore equipment accuracy, andprovide strong support for the road to widening automotive sheet supply.
?Quality Culture ConstructionShougang Steel carries out comprehensive quality culture construction activities through various forms such as qualityeducation and monthly quality events, strengthening the awareness of quality management among all employees andpromoting the enhancement of the company's quality management culture.The company attaches great importance to employee quality education and has established a four-level quality trainingsystem for senior management, middle management, technical personnel, and operators. This includes training in qualitysystem thinking, IATF16949 internal auditor certi?cation, quality standards and tools, and product knowledge. In 2022, thecompany conducted quality skills training for 1,194 person-times.In addition, The company carries out the "Voice of Customer" activity, making video ?les of product defects that haveaffected customer usage over the years and playing, conveying the real voice of the customers, and bringing productissues to the forefront, in order to provide satisfactory products to the users.
Product Safety ManagementIn order to ensure product safety and protect the health and safety of employees and customers, Shougang Steel strengthensself-inspection and self-control of products. The company implements monitoring and control of hazardous substancesin product design, raw material procurement, production, and packaging. The company organizes third-party testing ofrelevant products and publishes third-party testing reports to ensure that all products comply with the speci?cations for theprohibition and restriction of hazardous substances. The HRC, pickled sheets, automotive sheet, and electrical steel productsof the company consistently meet the requirements of the EU RoHS Directive, SVHC substances of high concern, ChinaNational Standard GB/T30512-2014 for Automotive Prohibited Substances, Registration, Evaluation and Authorization ofChemicals(REACH) and the End-of-Life Vehicles Directive (ELV Directive).
Case: Shougang Steel launched Quality ConsistencyMaster Class training
Case: Taking "quality as the lifeline" as the developmentpivot, and rening high-quality products
In October 2022, in order to comprehensivelystrengthen the construction of the qualityconsistency talent team and the cultivation of talentreserves, Shougang Steel launched the "QualityConsistency Master Class" training, with 7 selectedstudents and a planned training period of 12months. Taking this training as an opportunity, Thecompany further improved the talent cultivationsystem for quality consistency management neededfor the high-quality development, and reservedtalents for the realization of the "technology-oriented company" strategic transformation.
Taking customer satisfaction as the standard, the company relentlessly pursues the stability and consistencyof quality through measures such as weekly board meetings, quality inspections, quality meetings, "DoubleTen" tackling, and listed supervision, aiming to create quality advantages and continuously improve productquality. In 2022, the company has completed the development of 10 new products for non-oriented electricalsteel: the ?rst release of ESW1230 and 20SW1200H products in the world, which have been appraised bythe expert committee of the Chinese Society for Metals and reached the international leading level, andare applied to the next generation of new energy drive motors; the development of ultra-thin speci?cationsUSW35085 and USW40110 products, with P1.0/1k reaching below 35W/kg, leading in domestic productperformance.Breakthroughs have been made in the ef?cient process of oriented electrical steel industry, realizing massproduction of 0.30mm and 0.27mm thick products. The rate of high-end product 20SQGD070 has increasedby 12.4%, and the rate of 18SQGD065 has increased by 10.2%, achieving the production of low-excitation23SQGD085LS, and small-scale production of high-end products 27SQGD080 and 23SQGD070. Signi?cantimprovement in the control level of nitrogen in?ltration uniformity, and 100% wide speci?cation production inthe double-loop furnace have been achieved.
In 2022, Shougang Steel won the second prize of the Quality Technology Award for "Construconand Applicaon of Digital Empowerment Intelligent Customer Service System for Iron and SteelEnterprises" awarded by the China Associaon for Quality.The company has been awarded the "Naonal Quality Inspecon Stable Qualified Product" bythe China Associaon for Quality Inspecon, and was recognized as a Naonal Quality LeadingEnterprise in the metallurgical industry, a Naonal Quality Integrity Benchmark Enterprise, a providerof Naonal Trustworthy Products, one of the Naonal Top 100 Quality Inspecon Integrity BenchmarkEnterprises, and a Hebei Province Quality Benchmark Enterprise.
Non-oriented electrical steelOriented electrical steel ?nished goods warehouse
78 79
Shougang Steel adheres to the orientation of satisfying user needs, fully implementing the service concept of "customer?rst, utmost integrity; meticulous to the extreme, innovation-driven". Upholding the responsibility and mission that"service creates value", the company works on building a smart marketing service platform, promoting a new modelof integrated online and of?ine marketing services, strengthening the closed-loop management of customer appeals,enhancing customer experience and satisfaction. Effectively constructing a user ecosystem service system characterizedby "open sharing, interconnectedness, and co-creation of value", Shougang Steel co-creates and builds together withcustomers, continuously and unceasingly creating value.
Emphasis on continuousimprovementEstablish a customer feedbackmechanism, focus on customer needs,form a closed-loop management ofcustomer response and claimmechanism, and continuously optimizecustomer service
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Emphasis on win-wincooperationPractice responsible marketing, ensure theconsistency of products and services, andcreate higher value for customers
A three-level service system in one ecosystem
Interconnectedness
Open sharing
Co-creation of value
?Optimizing the Three-level Service System
Shougang Steel has set up a three-level service support system, focusing on customer demands, delivery qualityassurance, and continuous improvement of services. The company has established customer service, supervision, andevaluation mechanisms, implementing graded service strategies across dimensions such as quality assurance, supplyassurance, technical services, logistics services, and commercial guarantees, continuously enhancing comprehensiveinteractions and collaboration with customers.With a customer-?rst approach and sincere service, the company strives to create an excellent professional service team,achieve forward-moving service, and take multiple measures to improve the quality of customer service. The company hasestablished a customer-centric Key Account Manager team. They represent the customers internally and the companyexternally, providing comprehensive, convenient, and ef?cient exclusive services to customers. The company also has a?exible problem-solving team that combines manufacturing and service, conducting on-site R&D and service at customersites.
Shougang Steel's three-level service system
Building a user ecosystem service system
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Mainresponsibility△：
Secondaryresponsibility?：
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Before salesDuring salesAfter sales
Userinformationcollection
Technicalserviceactivitiesvisit andexchange
Technicaldemanddiscovery,identification,and transfer
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Guide usermaterialselection
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technicalrecomme-ndation
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demandtransfor-mation andimplem-entationDeliveryqualityassur-ance
Usageprocessguidance
Customercomplaintanalysis and
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tech-nicalsolut-ionsZerolevel
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?Creating Smart Marketing ServicesShougang Steel has created a smart marketing service platform with the goal of improving customer experience andincreasing service ef?ciency. The company has integrated customer marketing services internally to achieve informationsharing and logistics coordination throughout the entire supply chain of Shougang. Externally, the company has achievedvisual tracking of orders for major customers in industries such as automobiles and home appliances, as well asintelligent demand forecasting and automated inventory alerts. By offering features like mobile access, delivery tracking,shortage alerts, and material performance analysis, we consistently enhance user experience and trust.While focusing on technological innovation, we also emphasize co-creation and co-construction with our users, constantlyimproving customer experience. During the reporting period, the company continued to strengthen communication andinteraction with customers through integrated online and of?ine marketing service models, such as exclusive apps, visits,forums, and of?ine user co-creation activities. We conducted 2,410 customer visits, including 1,423 technical exchangesand user services.The company optimized and upgraded customer satisfaction management by combining the smart marketing platformand the production and sales system. We accurately grasped customer satisfaction from six aspects: overall impression,steel quality, supply capability, service quality, sales price, and suggestions, with a total of 40 questions. We also promotedrapid improvement in production, sales, and research coordination in response to customer requests, and implementedonline closed-loop management for customer requests. This has promoted continuous upgrades in product quality andservice quality, and improved user stickiness. In 2022, Shougang Steel's comprehensive customer satisfaction score was
98.62 points.
?Establish Customer Feedback Mechanism
Shougang Steel has formulated theCustomer Complaint ManagementRegulationsandProduct Quality Objection Management Measures, focusing onclosed-loop management of customer response needs, and strengtheningthe ef?ciency and effectiveness of demand collection, transmission, andhandling. The company has established customer response mechanismsand fast claims settlement mechanisms. We carry out graded circulation ofcustomer objection events, promote the circulation of demands through keyissue tracking in weekly/monthly meetings, listing supervision, and internalcollaborative problem-solving, thereby improving service ef?ciency. Basedon previous customer feedback (mainly focused on objections), we havealso promoted the collection of customer needs and provided value-addedservices to customers. At the same time, we have optimized the three-levelservice system, adjusting objection handling from the Marketing CenterService Department to branch of?ces. This not only improves the ef?ciencyof objection handling by utilizing regional advantages but also enables theservice department to provide accurate services and continuously improvecustomer service levels.
Production andManufacturingDemandCollection
Transformation
QualityInspection
Product Sales
In 2022, over
customerdemands were managed throughclosed-loop processes throughoutthe year
key user demands wereadvanced on the production,sales, and research platformThe customer complaintresolution rate:
100%
Customer demand closed-loop management mechanism
80 81
?Practicing Responsible MarketingShougang Steel practices the concept of responsible marketing and adheres to the requirements of relevant con?dentialitylaws to strengthen customer privacy protection. At the same time, the company provides relevant training to convey theprinciples of responsible marketing to customers, ensuring consistency in products and services, avoiding inaccurate ormisleading information, and protecting customer rights and fair transactions. During the reporting period, the companydid not have any illegal or irregular incidents in market promotion or customer privacy. There were no violations in healthand safety or labeling of products and services provided by the company.The company focuses on meeting customers' comprehensive needs for quality, delivery, R&D, service, innovation, andef?ciency. We create higher value for users with better technology, more re?ned products, and better services. Thecompany received honors such as the "Best Service Provider Award" from BMW-Brilliance Automotive, the "SpecialContribution Award" from BYD, the "Best Cooperation Partner Award" from Geely Automobile, and the "Partner ProgressTogether Award" form FAW-Volkswagen.
Case: Special Contribution Award - BYD praises Shougang Steel
Case: Shougang·BMW-Brilliance Automotive alliance workstogether for a win-win situation and creates the future together
At the BYD NEV Core Supplier Convention2022, BYD presented the "SpecialContribution Award" to ShougangSteel, fully af?rming Shougang Steel'soutstanding performance in "quality,cost, delivery, research and development,and service". Shougang Steel focuseson customer demand changes, fullyleverages the advantages of marketingsystem synergy and full-industry chain synergy, explores and practices an integrated service system that is"agile, ef?cient, and orderly", and provides service guarantees for BYD's smooth production.The production and service teams of the company take customer needs as their own responsibility, resonatewith customers, and work together to promote the transformation of the new energy vehicle industry. We willadvance the high-end process of Chinese brands, and contribute to the sustainable development of a betterfuture for humanity.
Strong alliance createshigh-quality products andworks together for a win-win situation. In March2022, the third phaseof the Shougang·BMW-Brilliance Automotivealliance innovation studioproject was launched inShenyang. In response tothe call of the All-China Federation of Trade Unions, an alliance innovation studio was established by the companyand BMW-Brilliance Automotive, to explore the establishment of a new platform for "cross-border" workerinnovation studios. The studio was jointly formed by the Shougang's Guo Dapeng BMW Service Innovation Studioand the BMW-Brilliance Automotive Stamping Workshop Guo Yingliang Innovation Workshop, achieving deepcooperation between Shougang and BMW-Brilliance Automotive across professions, ?elds, and enterprises.At the meeting, Shougang Steel and BMW-Brilliance Automotive signed the Shougang · BMW-BrillianceAutomotive Alliance Innovation Studio Phase III Project Cooperation Agreement. With the help of the alliance studioplatform, we will further strengthen communication and cooperation, give full play to our respective advantagesand strengths, and work together to create the future.
Suppliers are important partners of Shougang Steel, and stable supply chain is the foundation and guarantee forsustainable development of the company. Shougang Steel attaches great importance to business cooperation withsuppliers, continuously optimizes the supplier management system, strengthens supply chain ESG management, activelypromotes the construction of green supply chain, and builds a responsible supply chain.
?Supplier Management SystemThe company's suppliers include raw materials, fuel, production materials, spare parts, engineering equipment, andengineering materials suppliers. We strictly abide by national laws and regulations, carry out supplier admission, audit,evaluation, and grading work in accordance with thePurchasing Supplier Management Measures. We realize the full lifecycle management of online supervision, dynamic management, and automatic evaluation of suppliers.Admission: Suppliers are required to provide quality system certi?cation certi?cates and other credit materials.Review: We review the credit materials submitted by different types of suppliers according to requirements, and conducton-site compliance research, letter research, and other research when necessary. On-site research or letter research areconducted in accordance with the admission scoring criteria.
Evaluation: Suppliers with order quantity in the previous year and new admission are included in the company's annualevaluation; suppliers with quality problems con?rmed by various base departments in the previous year or suppliers thatneed to be evaluated for other reasons are included in the company's second-party audit.Evaluation criteria for raw material suppliers: quality, delivery, collaborative response, service, price, excess freight,major impact, business reputation, etc.Evaluation criteria for spare parts/engineering equipment/engineering materials suppliers: enterprise quali?cation,product quality, contract performance, supply capability, and after-sales service, etc.Exit: If any safety or environmental accidents occur, delivery is delayed, or the company's integrity regulations are violated,resulting in economic losses or adverse social impact, the supplier may be included in the blacklist or permanentlydisquali?ed, depending on the situation.Grading: According to the annual evaluation results, suppliers are classi?ed into four levels: priority (A) suppliers, regular
procurement level (B) suppliers, quali?ed level (C) suppliers, and alternative (D) suppliers. Suppliers with priority, regular,and quali?ed levels will continue to be included in the quali?ed supplier list and directly enter the next supply cycle.As of December 31, 2022, the company has a total of 3,558 suppliers, all of which are mainland suppliers.
?Supplier ESG Management
The company pays close attention to the performance of suppliers in terms of employment, environmental protection,safety production, and privacy protection, and informs relevant parties through various means that they must ful?ll socialresponsibilities and comply with theSupplier Code of Conduct Commitment. At the same time, we carry out supplieradmission, audit, and ESG assessment work, and visit the supplier site when necessary to identify environmental andsocial risks in various links of the supply chain. If the supplier's products are found to have a signi?cant adverse impacton the environment, occupational health, and safety, the company will include them in the blacklist or permanentlydisquali?ed, depending on the situation.During the reporting period, a total of 1,495 suppliers were evaluated, of which 22.54% were A-level suppliers, 31.17%were B-level suppliers, 46.09% were C-level suppliers, and 0.2% were D-level suppliers. The number of suppliers whosecooperation was suspended due to non-compliance with social responsibilities was 0.
82 83
Case:Making every effort to stabilize the supply chain of keycustomers and gaining high recognition from customersIn 2022, the company's service team, guided by the customer-centric concept,thinks what the customers think and responds to their urgent needs. With multiplemeasures and ef?cient coordination, we have made every effort to solve the supplydif?culties for multiple key customers and have withstood the severe test of supplychain guarantee.As a long-term partner of Hisense, in the situation of tight logistics and productioncapacity resources, the company has made every effort to meet the needs ofHisense. We coordinated logistics, production, and shipment of ?nished productsthroughout the process, and solved the dif?culties caused by the temporaryincrease in Hisense's plans. At the end of February, Penglai Dajin Ocean HeavyIndustry signed a contract for 20 sets of Shandong Changyi Sanying OffshoreTower Project steel plates with Shougang. In order to ensure the timely deliveryof the project, the company's service team raced against time and fought against dif?culties, actively responded,coordinated operations, and shipped the products immediately after production completion, gaining time andcreating favorable conditions for the smooth production of customers.The company's service team has gained customer recognition through professionalism and practical actions,and has received thank-you letters from key customers such as Hisense, Dajin Ocean Heavy Industry, CXIC
Case:Prioritizing customers, Zhixin Co. rised to the challengeand ensured supply for 63 customers in emergency situations
In April 2022, Zhixin Co., with customer service as thecenter, has made every effort to solve the urgent materialneeds and supply dif?culties of customers. To speed up theresponse, Zhixin Co. adopted the "one day, two meetings"coordination mechanism. Within one month, the companysorted out ?ve batches of urgent customer orders andurgently shipped 12,000 tonnes of goods, solving theproduction and supply problems for 63 customers.
Stable SupplyWith a strong sense of mission and responsibility, the company takes multiple measures and ef?ciently coordinates to ensurethe stability and safety of the industrial chain and supply chain, effectively assisting upstream and downstream enterprises inresuming work and production. During the reporting period, the company urgently guaranteed supply for 35 key customers,processed hundreds of thousands of tonnes of urgent orders, and successively won 16 awards. These awards include the "BestProduction and Supply Guarantee Award" from Great Wall Motor Company Limited Xushui Branch, the "Excellent Supplier"from Dongfeng Honda, the "Excellent Supplier" from CIMC Group and Foton, etc. We also received a commendation banner forsupply cooperation from SAIC Maxus and a commendation banner for overcoming dif?culties in supply from Great Wall Motor,as well as thank-you letters from 27 companies.
Group, China Merchants Group, andBYD. In these letters, they expressedtheir gratitude for the efforts made bythe Shougang Steel service team toprioritize customers, guarantee supply,actively coordinate production andtransportation, guarantee resourcedelivery, and escort the smoothproduction of customers.
Transparent Procurement
By building a uni?ed procurement system, developingfunctions such as electronic signature, supplierquali?cation warning and evaluation, and procurementef?ciency evaluation, Shougang Steel has achievedonline and transparent procurement throughout theentire process, with traceable data. At the same time,we have strengthened multidimensional control, activelypromoted integrity with suppliers, and achieved transparentprocurement. In 2022, the number of online procurementorders reached 117,191, accounting for 99.14%.
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Percentage of the company's online procurement quantity
Building a centralized procurement system:
Based on the principle of uniformity acrossmanagement system, material codes,suppliers, and information systems, we havereorganized and standardized the procurementprocess, promoted the integrated businessmodel of production and sales, and connectedwith the supply chain ?nancial platform.Moreover, we have built a uni?ed centralizedprocurement information system and asystematic and orderly procurement businessmanagement system, to solve the problemsin actual business operations. This reducesprocurement costs, creates procurementbene?ts, and improves procurement ef?ciency,process ef?ciency, and personnel ef?ciency.
Full-process traceability: The company has
successively developed functions such aselectronic signature, electronic contract,supplier quali?cation warning, supplierevaluation, and procurement ef?ciencyevaluation. The transparency, openness, andtraceability throughout the procurement process are achieved, creating conditions for transparent procurement andoperational management, with an electronic contract signing rate of 94%.Multidimensional control: We have streamlined the procurement business and inventory control processes, involving
2 primary processes, 11 secondary processes, 18 tertiary processes, and 29 risk points. We conduct regular risk self-assessment on a monthly basis, implement normalized management, and deeply integrate the execution of regulations,supervision and inspection, big data analysis, and process optimization in various procurement processes, to strengthenmultidimensional control.Integrity construction: The company actively promotes integrity construction activities with suppliers. We sign co-
construction agreements with suppliers such as SINOSTEEL Xingtai Machinery&Mill Roll Co., Ltd., disseminating behaviorguidelines such as the "Five Prohibitions " and the "Five Can't". We issue "integrity construction notices" to suppliersbefore key holidays, to actively promote integrity construction with suppliers, and jointly create a clean and transparent"sunshine" procurement environment.ESG Training for Procurement Personnel
During the reporting period, the company conducted LCA, and environmentaland social responsibility awareness training for procurement personnel,with a training coverage of 100%. The awareness of procurement personnelin terms of environmental and social responsibility has been signi?cantlyimproved.
?Supplier Empowerment
Through various means, the company promotes the green and low-carbon procurement requirements to suppliers, tofoster win-win cooperation and synergistic development in the upstream and downstream supply chain of raw materials.We also disseminate the requirements for green emission reduction and low-carbon work to suppliers. At the same time,we provide suggestions for environmental risks that may arise during supplier admission and performance, disseminatethe important value and main process of carbon accounting. These measures enhance suppliers' understanding of carbonaccounting and the construction of a low-carbon supply chain.
The centralized procurement informationsystem is based on the principles ofuniformity across management system,material codes, suppliers, and informationsystems and achieve full coverage. Thisachieves centralized management andunified management, and further improvethe control ability and management level.
The purpose is to dock with the group'ssupply chain financial service platform,solve the business pain points of theupstream and downstream of the supplychain, and create the Shougang financialecosystem. Steel Trading procurementfunds are effectively revitalized andthe procurement system is effectivelyoperated.
Adhering to the concept of sharingand openness, committed to sharingand transparency as the core, high-quality supply channels as the focus,and digital and professional servicesas the support, the company exploredigital applications and achieve newupgrades in intelligent operations.
The company integrates collectiveprocurement demand and businessresources, to improve the bargainingpower of bulk materials, achieveprice exchange with quantity, andreduce cost and increase efficiency.
Unified Management
Integration of Production
and Finance
Intelligent Operation
Cost Reduction andEfficiency Increase
84 85
National Strategic Projects Participation 86Research and Development Innovation 88Intelligent Manufacturing 96Industry Collaboration 98Public Welfare Activities 101Urban Integration 102
86 87
Shougang Steel integrates company development into national strategies and focuses on new product R&D andlocalization substitution of bottleneck products. In 2022, 16 high-end materials, represented by automotive outer sheet490+Z and automotive stabilizer bar steel 34MnB5, have been replaced by localization and supplied in batches. ShougangSteel exports electrical steel products to 29 countries and regions. These products have been successfully applied toseveral key national projects along the Belt and Road Initiative countries such as Laos.Serving national projects: Shougang Steel actively participates in national and provincial-level projects, undertaking 7national projects such as "Synergistic Optimization and Integrated Application of Key Elements in the Steel Process", andits products are widely used in national key projects and major engineering projects.
ProductsKey projectsOriented electricalsteel
Widely used in the field of UHV transformer substations such asBaihetan Hydropower Station, Wudongde Hydropower Station,Beijing World Expo venues, Winter Olympics venues, Laos-Chonkham-Nasertong Transmission and Transformation Beltand Road Project, UHV "double million" transformers, and high-e?ciency energy-conversation distribution transformers.
Pipeline steel
Used in major national projects such as the "West-East Gas PipelineLine 2" "West-East Gas Pipeline Line 3" "East Asia Line" "Shaanxi-Beijing Line" "Zhonggui Line" "New Guangdong-Zhejiang Line""Central Asia Line" "China-Myanmar Line" "China-Russia East Line"as well as local oil and gas pipelines and key projects.In 2022, it is used in the Western Line 4 (Turpan-Zhongwei) naturalgas pipeline project, the Kashagan project X60MOS low-temperatureacid-resistant submarine pipeline, etc.
Hydropower steel
Used in projects such as Xianju Pumped Storage Power Station,Guandi Hydropower Station, Yazui River Hydropower Station, andLaos Nam Leuk Hydropower, and bulk supplied for the NinghaiPumped Storage Hydropower Project.
Shougang Steel has always taken technology and innovation as the lead, intelligent manufacturing as a
means to continuously break through technological bottlenecks and actively serve national key projects.
The company always adheres to the concept of industry co-construction and cooperates closely with
stakeholders to jointly promote the high-quality development of the steel industry. In the process of
development, the company emphasizes social issues and participates in public welfare actions to provide
strong support for promoting economic prosperity and sustainable social development.
ProductsKey projectsShipbuilding andO?shore engineering
steel
Achieving full coverage from A-grade to E690, it is used in the world-wide deepest semi-submerged drilling platform "blue-whale 1#",Asia's largest ocean ranch "long-whale 1#", and won the bid for theCCSEH690 ultra-high-strength marine engineering steel projects foro?shore wind power installation vessels.
Tank steel
Used in projects such as Sinopec Lanzhou Petroleum Reserve BaseProject, Sinopec Sichuan Tank Farm Project, Shanxi YanChangPetroleum Group Jingbian Project, UAE Black Pearl Tank FARMProject, Ethiopia Ocean Engineering Project, etc.
Bridge steel
Used in the world's largest highway-railway bridge, the Shanghai-Nantong Yangtze River Bridge, the China-Russia Tongjiang RiverBridge, the Baigou River Extra Large Bridge in Xiong'an New Area,BeiPanjiang River Bridge, Pingtan Strait Bridge, Bangladesh PADMABridge, etc.
High-performancebuilding structuralsteel
Used in projects such as the Wuhan International Expo Center,the Winter Olympics Big Air Shougang, the Dubai World Expo ParkMetro, the Xiong'an High-speed Railway Station, etc.
Wind power steel
Used in more than 30 large-scale o?shore wind power projectsat home and abroad. In 2022, it is used in projects such as theHeilongjiang Haotai Tonghe Wind Power.
Weathering steel
In 2022, high-grade weathering bridge steel is supplied in bulkfor the ?rst time for the largest single weathering bridge projectin China. Weathering steel for new type power tower is used inthe demonstration line of the State Grid.
Color-coated sheet
In 2022, participated in national key projects includingthe Changxing Shipbuilding Base of China ShipbuildingCorporation, Jiangxi Chaoyang Machinery Base of ChinaShipbuilding Corporation, Xi'an Xianyang Airport, and XiamenNorth Station High-speed Railway Station, and involved in13 provincial and ministerial key projects, including XiamenInternational Convention and Exhibition Center, Shaanxi JintaiChlor-alkali, Hebei Tangyin Steel City Relocation, HandanSteel Old Area Relocation and Integration, and Shanxi PostalLogistics, etc.
88 89
In July 2022, the Baihetan to Jiangsu ±800 kV ultra-high voltage direct current transmission project wascompleted and put into operation. The ultra-high voltage direct current transformer, manufactured usingShougang high-performance oriented electrical steel, was of?cially connected to the grid and put intooperation. Shougang electrical steel once again engraved its glory on super projects and national heavyequipment.The Baihetan to Jiangsu ±800 kV ultra-high voltage direct current transmission project is the world's?rst hybrid cascade ultra-high voltage direct current project. It is the ?rst time in the world to develop the"conventional DC + ?exible DC" hybrid cascade ultra-high voltage direct current transmission technology,integrating the advantages of ultra-high voltage direct current transmission with large capacity, longdistance, low loss, ?exible DC transmission control, and strong system support capability. This major projectis the ?rst application of Shougang high-performance oriented electrical steel in ultra-high voltage directcurrent transformers, marking another major breakthrough for Shougang Electrical Steel in more than tenyears of climbing to new heights with constant craftsmanship, and achieving full coverage of high-voltagetransmission in the ?eld of ultra-high voltage electrical steel applications.The Baihetan to Jiangsu ±800 kV ultra-high voltage direct current transmission project is the strategic arteryof China's "West-East Power Transmission" project. It is a major project serving stable growth, a major greenproject serving the "dual carbon" goals, and a major innovative project serving technological self-reliance.After the completion and operation of the project, it can transmit over 30 billion kilowatt-hours of cleanelectricity annually, reduce coal consumption for power generation in the East China region by 14 milliontonnes per year, and reduce CO
emissions by more than 25 million tonnes.
Research and Development SystemRelying on the "one institute, multiple centers" system, Shougang Steel takes the improvement of independentinnovation capability and driving force of industrial development as the core, and the breakthrough of major processand product quality bottleneck as the starting process, to strengthen the ability of "technology innovation + researchand development". The company conducts in-depth technical research projects, establishes expert workstations, andcreates practical platforms for external cooperation,pushing technological leadership to become thecore competitiveness. We aim to make technologicalinnovation a key variable, driving high-quality growthand taking steps towards becoming a world-classenterprise. Shougang Steel and Jingtang Co. have beenidenti?ed as high-tech enterprises. Cold-R Co. hasbeen identi?ed both as a national and a Zhongguancunhigh-tech enterprise, and specialized new small andmedium-sized enterprise of Beijing. Zhixin Co. hasbeen identi?ed as a leading technological enterprisein Hebei Province and a champion demonstrationenterprise in the ?eld of manufacturing electrical steelproducts in the sixth batch.
Case: Shougang electrical steel is rst applied to ultra-highvoltage direct current converter transformers
R&D System
Shougang Steel insists on building a "strong support, open sharing, and collaborative ef?ciency" R&D system, and implementssolid and detailed scienti?c and technological innovation work based on the information system. Based on the "one institute,multiple centers" system, the company has established Qianshun Technical Center and Jingtang Technical Center, and set up atechnical committee responsible for major technological innovation strategic decision-making. We have built innovative platformssuch as expert workstations, joint laboratories, and employee innovation workshops, effectively integrating the scienti?c researchstrength of society and upstream and downstream enterprises, making breakthroughs in "?rst release of products, originalprocesses, and ?rst deployment of equipment".
R&D Investment
Shougang Steel has established a stable and growing R&D investment mechanism.The company continuously increases R&D investment through performanceassessment, incentive policies, and R&D reserve funds. At the same time, thecompany strengthens the overall management of R&D investment, improves thesupervision and management of R&D funds, and performance evaluation system.In 2022, Shougang Steel invested 5.386 billion yuan in R&D, accounting for 4.56% ofoperating revenue, ranking among the top in the industry.
Shougang Technical Research Institute
Technical CommitteeQianshun Technical
Center
Jingtang Technical
Center
Expert WorkstationJoint Laboratory
Employee Innovation
Workshop
InnovationPlatforms
R&D investment:
5.386
billion yuanProportion of R&D investmentto operating revenue:
4.56%
R&D system
Shougang Steel has Enterprise Technical Centerof Beijing, Silicon Steel Technology InnovationCenter of Hebei province, Silicon Steel EngineeringTechnology Research Center, AdvancedElectromagnetic Materials and Motor TechnologyJoint Research Center, and other research centers.The company has built the only laboratory in thesteel industry with the capability and quali?cationto test the performance of new energy-drivenmotors, certi?ed by CNAS. In 2022, Hebei SeawaterDesalination Technology Innovation Center wasunveiled.
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滵澳滵滵滶滵澳滵滵滷滵澳滵滵滸滵澳滵滵滹滵澳滵滵滺滵澳滵滵滻滵澳滵滵
R&D investment(RMB 100 million)
Proportion of R&D investment to operating revenue
R&D investment in the past ?ve years
90 91
In 2022, Xu Houjun, the main operator of Zhixin Co. SecondOperaon Area Rolling Mill, was awarded the honorary tleof "Innovaon Model" in the "Top 10 Figures of State-OwnedEnterprises and Beijing Models" by the State-owned AssetsSupervision and Administraon Commission of People'sGovernment of Beijing Municipality. He also received the honorarytle of "Top 10 Beijing Role Models of 2022" by the BeijingCommittee of the Communist Party of China. He has alwaysadhered to independent innovaon, and achieved more than 20first-me trial producon results of high-end products, including 3products that were globally launched, filling the domesc gap.
Employee Innovation WorkshopThe Employee Innovation Workshop is an important platformthat combines employee technical innovation with managementinnovation. It is an essential platform for turning creativity intoprojects, projects into results, and results into bene?ts. It isalso an important platform for resolving technical bottlenecksand stimulating the enthusiasm of employees for innovation.Shougang Steel vigorously promotes the establishment ofworkshops. Currently, there are 66 employee innovationworkshops, including 12 at the municipal level (Beijing), 2 atthe industry level, and 29 at the group level. All R&D innovationprojects of the company are undertaken by various innovationworkshops. By conducting activities such as technical researchand discussion, backbone training sessions, evaluation ofexcellent employee innovation workshops, recognition andrewards for technical innovation achievements, and employeeinvention competitions, we create a good atmosphere of"Innovation Everywhere, Everyone is a Source of Innovation",injecting innovation power into the company's development.Employee Innovation Workshop
Xu Houjun
Building an innovative platform and cultivating innovative talentsShougang Steel has always attached great importance to and encouraged innovation among all employees. The company fullyleverages the leading role of scienti?c and technological talents to promote innovation, and helps employees to reach achievementtransformation, creating a good environment that respects labor, knowledge, talents, and creativity. We have establishedemployee innovation workshops, research management platforms, and other innovative platforms, and organized activities suchas technology innovation training camps, employee innovation festivals, multi-level skills competitions, and technical talent openreport meetings to continuously promote the deep development of technological innovation, cultivate innovative talents, andimprove innovation capabilities.In 2022, the proportionof R&D personnelin Shougang Steelwas
12.59%,
and theproportion of R&Dpersonnel with amaster's degree orabove was 28.61%.
In 2022,
employeeinnovationachievements wereshowcased at the ?rstNational CraftsmenInnovation ExchangeConference.
In 2022,
special prize,
?rst prizes,
secondprizes, and
thirdprizes were awarded atthe national Machinery,Metallurgy, and BuildingMaterials IndustryWorkers' TechnicalInnovation AchievementExhibition.In 2022,
employees wereawarded the "Post Expert" in thenational mechanical metallurgyand building materials industry.
In 2022,
employees wereawarded Shougang Scientists,including
?rst-levelscientists.
In 2022,
employees wereawarded the "Capital CitizenLearning Star".
In 2022, several
participants were awarded
the titles of "Shougang
Technical Expert" and
"Outstanding Contribution
Technician" of Hebei
Province, and enjoyed
the "Special Allowance
for Technicians" by the
People's Government of
Beijing Municipality.
Technology Innovation Youth Training Camp
In order to strengthen talent echelon construction and talentreserve development, in 2022, the company held a TechnologyInnovation Youth Training Camp, where 46 young professionaland technical backbone personnel participated in a two-monthfull-time training and completed seven units of training coursesincluding innovative thinking exploration and professionalcompetence enhancement.
Workers' Innovation Festival
In 2022, the company held the "Innovation Building Dreams, Win-win Future"Workers' Innovation Festival, which included activities such as innovationachievement exhibition, national craftsmanship lecture hall, innovation tour,and workers' invention competition. Through the festival, we strengthen theatmosphere of innovation driven by talents development led by innovation, andpromote employees' innovation to a new stage.
Shougang Steel attaches great importance to intellectual property rightsmanagement. Our goals are to improve the creation quality, protectionef?ciency, and operation level of intellectual property rights, and to enhance thecomprehensive ability and core competitiveness of intellectual property rights.In order to achieve these goals, we have revised and promulgated thePatentManagement System, and established a leadership group for intellectual propertyrights management. Additionally, we have established an intellectual propertyright work system and management system, and built an intellectual propertyright management network, to promote the in-depth development of intellectualproperty right work, supported by the active participation of all employees inindependent innovation. In 2022, Shougang Steel and Zhixin Co. were awardedthe title of "National Intellectual Property Advantage Enterprise" and entered theforefront of intellectual property strong enterprises.In 2022, Shougang Steel organized the patent layout of key products, completedrapid pre-examination and ?ling ofpatents, accelerated the acquisitionof patent authorization, and formed apatent protection barrier. In addition, weorganized the infringement comparisonand analysis of electrical steel relatedproducts with target products andformed an analysis report to prevent theinfringement of others' patent rights inR&D and production of products.
Workers' Innovation Festival
Technology Innovation Youth Training Camp
Intellectual Property Rights Protection
Shougang Steel was awarded thetle of "Beijing Intellectual PropertyDemonstraon Enterprise".Zhixin Co. was awarded the tleof "Hebei Intellectual PropertyAdvantage Enterprise".In 2022, Shougang Steel andZhixin Co. were awarded the tleof "Naonal Intellectual PropertyAdvantage Enterprise" and enteredthe forefront of intellectual propertystrong enterprises.
92 93
Innovation AchievementsShougang Steel has made breakthroughs in high-end product R&D, whole-process manufacturing, process optimization,and user application technology, and has achieved more scienti?c and technological achievements, created more high-end products, and achieved more precise customer service.New product R&DIn 2022, 2 products were ?rst launched in the world, 5 products were ?rst launched in China, and 16 high-end materialshave been replaced by localization. 2 products were awarded the "Golden Cup Outstanding Product".
Other product R&DThe company has successfully trial-produced chromium-free passivated high-end tinplate, with the corrosion resistancefar exceeding similar chromium-containing products. The company achieved a breakthrough in the use of 9Ni steel forultra-low temperature containers, realizing batch supply.Key technological breakthroughsThe "large proportion pellet ironmaking technology" of BF with obvious carbon reduction effect in China can be assembledup to 65% in pellet ore. The pioneering technology of "ef?cient preparation of wide and ultra-thin low-carbon steel strip"has been successfully applied in Jingtang Co. The import substitution project of the distributed control system of the airseparation unit was put into operation smoothly, becoming the ?rst successful case of domestic DCS system replacingimported control systems. The achievements of ?ve-in-one ef?cient cascade recycling system, large proportion pelletironmaking technology of BF, and the use of lime kiln exhaust CO
capture and recovery used for CO
-O
mixed blowingin steelmaking process technology won the third prize of the State-owned Assets Supervision and AdministrationCommission of the State Council's annual carbon peak and carbon neutrality action typical case in 2022.Intellectual propertyIn 2022, the company obtained 654 patents, including 166 invention patents. Two patents "A method and system ofelectricity, heat and water co-generation" and "R&D and Application of unmanned operation of pellet intelligent control"won gold awards at the 121th International Exhibition of Inventions in Paris. 150 projects participated in the NationalExhibition of Inventions.
The 121th International Exhibition of Inventions in Paris
New product R&D2 products global debut
20SW1200H and ESW1230 were the ?rst electrical steel for new energy vehicles in the world,which surpass the performance of conventional electrical steel and can greatly improve thepower density and ef?ciency of motors.5 products domestic debut
Five products, represented by HJAC980B2M with high respreading and ultra-high strength andS100VD with high fatigue performance steel for compressor valve plate, were ?rst launched inChina.Localization substitution of16 high-end materials
16 high-end materials represented by automotive outer plate 490+Z and automotive stabilizerbar steel 34MnB5 have been replaced by localization and supplied in batches."Golden Cup" Award
6 products were awarded the "Golden Cup Quality Product". Among them, the "Cold RollingOriented Steel Strip (Sheet) 20SQGD070" and "Porcelain Enamel Cold Rolling Low CarbonSteel Sheet and Strip DC06EK (STC1)" were awarded the "Golden Cup Outstanding Product".
滾滼
滶滹滶滶滹滽
滶滽滷
滶滻滻滸滶滷
滸滷滽
滹滷滹
滹滺滵
滻滺滹
滵滶滵滵滷滵滵滸滵滵滹滵滵滺滵滵滻滵滵滼滵滵
滷滵滶滽滷滵滶滾滷滵滷滵滷滵滷滶滷滵滷滷
Number of invention patents grantedNumber of patents granted
Patents in the past five years
Achievement award
In 2022, Shougang Steel has organized andparticipated in multiple national key research anddevelopment projects, carrying out 78 scienti?cresearch tasks. It has won 19 provincial andministerial-level science and technology awardsand 19 provincial and ministerial-level managementinnovation achievement awards.
Scienti?c and technological achievementsAwards
The construction and practice of ef?cient collaborativesteelmaking whole process control system
First prize of Metallurgical Enterprise Management InnovationDevelopment and application of key technologies forhigh-aluminum steel and micro-alloyed steel slabcontinuous casting
First prize of Metallurgical Science and Technology Award by China
Iron and Steel Association and The Chinese Society for MetalsDevelopment and application of BF safety, longevity,and self-repair theory and key technologies
First prize of Metallurgical Science and Technology Award by China
Iron and Steel Association and The Chinese Society for MetalsDevelopment and integrated application of keytechnologies for ef?cient and green connectingbetween large slab continuous casting and steel rolling
First prize of Metallurgical Science and Technology Award by China
Iron and Steel Association and The Chinese Society for MetalsDevelopment and industrialization of high-performanceelectrical steel for new energy vehicles
First prize of the provincial award for scienti?c and technological
progress in Hebei Province
Part of scienti?c and technological achievements
94 95
Case: Shougang's new generation of high-strength automotive bodyouter panel UF steel series products were rst launched in ChinaShougang Uni-FISH ultra?ne-grained high-strength steel (referred to as UF steel) is the ?rst domesticallydeveloped new generation innovative product of the company, and it is also the ?rst domestically developedproduct for automotive body outer panels since the domestic debut of Shougang DH steel series products.UF steel abandons the traditional solid solution strengthening method of high-strength steel with Mn and P,and adopts ?ne-grain strengthening and precipitation strengthening as the main strengthening methods. Byprecise quantitative ratio of micro-alloying elements combined with corresponding heat treatment system,it controls the formation of uniform and ?ne micro-structure and speci?c micro-precipitates, which notonly improves the strength of the product, but also has the quality and performance advantages of "FourHighs and Two Lows", namely higher dent resistance, higher isotropy, higher surface quality, higher agingresistance, lower-temperature toughness, and lower waviness. The product meets the requirements of thenew generation of high-strength automotive body outer panels in terms of forming, stability, painting, dentresistance, and no intermediate coating, which is conducive to achieving thinning and lightweighting of outerpanels, bringing more economic, energy-conservation, and low-carbon advantages to users.
Uniform
Uni-FISH
Fine
HighStrength
SmoothIsotropyInherentNatureStruc-ture
SurfaceProper-ties
Case: Development and application of key manufacturing technologyfor high-quality heavy plateIn 2022, Jingtang Co. established an integrated control technology andinternal quality evaluation system for continuous casting solidi?cationprocess, high-permeability rolling, and slab ultrasonic detecting, realizingthe development of utilizing 400mm thick continuous casting slabs toproduce 230mm national standard grade I ultrasonic detecting heavyplate. We developed: a low Nb content design scheme for austeniterecrystallization; low temperature controlled rolling and reciprocatingwater cooling technology; the equipment and production technologyfor online quenching of high-strength and toughened steel with largethickness; a rapid cooling system combining gap jet, high-density jet,and laminar ?ow cooling. 23 invention patents, 2 software copyrights, 14papers, and 2 leading revisions of international standards were authorized.
Xiong'an New Area Train Station
Blue-whale I#
In 2022, Jingtang Co. overcame the common dif?culties of rolling large-width-to-thickness ratio ultra-thinDR materials and developed 415~690MPa grade ultra-thin DR materials, achieving the leading indicators ofthe thinnest 0.14mm in continuous annealing online secondary cold rolling and the thinnest 0.07mm in of?inesecondary cold rolling with the maximum width-to-thickness ratio of 11400. Jingtang Co. broke through thetechnical bottleneck of ef?cient production of high-cleanliness steel and achieved zero discharging of platingsolution, ensuring high-quality and ef?cient mass production and application of ultra-thin products, meetingthe high-tech development needs of international packaging, telecommunications, and new business cardindustries. The most stringent surface quality requirement of milk powder can DR material products werelaunched ?rstly.Shougang's high-quality DR material products achieve ultra-thin, green, strength, and full coverage of sizespeci?cations, narrowing the gap with the international ?eld. The products are widely used in well-knownpostcard and metal can production enterprises such as China Post, Suzhou Hycan, and COFCO, achievingthe global debut of the Winter Olympics "Cicada Wing Steel" postcard and exclusive supply of 0.07～0.13mmwide 5G lightweight electrical components.
First in the world: Ef?cient preparation process of wide and ultra-thin low-carbon steel stripTechnology development: Low interface energy dispersion control technology for inclusions, intermediate packageinclusion adsorption and micro-bubble removal technology, control technology of optimal upper back?ow ?ow?eld in mould, high-quality tinplate surface control technology for ultra-thin DR materials
Innovative integration of production line: "MSA + pure induction soft melting + multi-mode passivation" ef?cient and
environmentally friendly tinplating production lineUnique in China: The only tinplating unit in China with a lead content on the strip surface lower than 30ppm
Case: Development and application of high-quality ultra-thin DRmaterial efcient manufacturing technology
The 20th CPC National Congress' version of theCicada Wing Steel postcard "Ode to the Great Wall"
Beijing Winter Olympics mascot sports icon
Cicada Wing Steel postcard
| Dent r |
Aging
AgingSurfac
| Surfac |
quality
qualityLow-temper
| Low-temper | e toughnes |
Fo
| Fo |
r-values
r-valuesEx
| Ex |
Ex
| Ex |
Ex
| Ex |
UF 34
| UF 34 |
UF 39
| UF 39 |
180BD+Z
180BD+ZDX54D+Z
| DX54D+Z |
Good
GoodNormal
NormalP
| P |
Beijing Winter OlympicsBig Air ShougangThe products are applied to more than 40 energyequipment such as the world-wide deepest semi-submerged drilling platform "blue-whale 1#", morethan 100 offshore wind farms such as the world'slargest coastal wind farm, more than 50 high-rise buildings such as the Xiong'an New Area trainstation, and more than 30 heavy equipment such asshield tunneling machines in major countries.
96 97
The company continues to promote the construction of smart factories,and the level of work safety and ef?ciency continues to improve. In 2022,Jingtang Co. proceeded unmanned warehousing and intelligent logisticscontrol projects as planned, completed the unmanned transformation ofmultiple locations, and put into operation the ?rst independent snif?ngrobot in the coking industry. 11 sub-projects including 55 use cases of the?rst phase of Lighthouse Factory of Cold-R Co. were all put into operation.Zhixin Co.'s steel production line for new energy vehicles has achievedoverall arrangement for information systems.
Shougang Steel's digital soluon was recognizedas the excellent case by the Ministry of Industryand Informaon Technology and China Iron andSteel Associaon.The digital applicaon pracce won the "SilverAward of China Data Producvity Compeon"The inventory control platform won the "BestIndustry Applicaon Award" in the "2022FanRuan BI Data Analysis Compeon".The "construcon and implementaon of the bigdata analysis system for equipment managementin iron and steel enterprises" won the secondprize of the 36th Beijing Enterprise ManagementModernizaon Innovaon Achievement.The "construcon and operaon of the intelligentmaterial measurement management platform"won the second prize of the State-ownedEnterprise Management Innovaon.Intelligent manufacturing awards
Shougang Steel strives to become an "Exporter" and "Leader" of bestpractice in digital transformation. The company makes full use ofadvanced technologies such as intelligent remote control, AI, machinevision, AR remote collaboration, and digital twins, to actively promotethe implementation of various intelligent manufacturing projects,including digital operation management, intelligent manufacturing,intelligent IoT customer service, and intelligent centralized control forgreen and safety. The company has gathered 150,000 items of 200Tdata from various business areas and on-site production processes,and has built a distributed hybrid data warehouse. Moreover, wehave pioneered an agile data autonomous analysis model, withthe construction of business decision models as the core for bigdata mining applications, and have carried out the construction ofquality, sales, and other professional business decision models anddata governance. The construction of 23 business decision modelswas completed, comprehensively improving the intelligence andautomation of process handling and decision-making. In addition, wecultivate digital transformation and data culture of all employees, inorder to discover and utilize the value of data assets more effectively.
100% coverage of basic automationfor main production equipmentThe digital rate of productionequipment exceeds90%
Intelligent Manufacturing CapabilityMaturity Assessment is atlevel III
Jingtang Co. was awarded as the
"2022 Intelligent ManufacturingDemonstration Plant"
Cold-R Co. was awarded"BeijingIntelligent Manufacturing Bench-markEnterprise (Intelligent Plant)"
Shougang Steel actively promotes digital transformation and intelligentmanufacturing. The company fully utilizes the strategic opportunitiesbrought by new generation information technologies such as big data,cloud computing, AI, and 5G, and accelerates the automatic, digital,networking, and intelligent transformation of key business processes.We establish a new pattern of digital transformation and intelligentmanufacturing with "automatic operation, intelligent equipment, digitalcontrol, smart decision-making, and service platformization", and strive tobecome a benchmark for digital transformation.The company has built a cross-regional, multi-base and uni?ed productionand marketing integration collaborative management platform, and theevaluation level of the integration of information and industrialization hasgenerally reached the "innovation breakthrough stage". We have achieved"one-click steelmaking" "one-click re?ning" as well as full-processautomatic and intelligent inspection of raw material and fuel, leadingdomestically.
In 2022, based on new technologies such as 5G, AI, and big data, Jingtang Co. constructed a low-carbon andef?cient intelligent manufacturing demonstration plant, with multi-mode continuous casting and rolling(MCCR), high-strength steel pickling, and hot-dip galvanizing, achieving world ?rst-class level. It was selectedon the list of Intelligent Manufacturing Demonstration Plant. At the same time, Jingtang Co. formulated andreleased standards, evaluation criteria, and technical speci?cations for intelligent factory construction. Thisaward is a recognition of Jingtang Co.'s achievements in the ?eld of digitalization at the national level, andfully demonstrates Jingtang Company's strong strength in the ?eld of intelligent manufacturing in the steel
Cold-R Co. has comprehensively launched intelligent transformation and upgrading. The company fullyimplemented intelligent quality management, automatic production process control, digital equipmentmaintenance, intelligent warehousing and logistics, and intelligent energy and environmental protection,and reduced the number of dangerous positions andachieved unmanned. Thereby, the automation andintelligence level of the production line has improvedsigni?cantly, the ef?ciency of warehousing and logisticshas optimized continuously, the product quality andcustomer service have improved constantly, and thecompany's re?ned management level has improvedsteadily. The company has been awarded "BeijingIntelligent Manufacturing Benchmark Enterprise(Intelligent Plant)" by the Beijing Municipal Bureau ofEconomy and Information Technology.Initial performance? In 2022, the total inventory decreased by 4.7% year-on-year.? The contract automatic processing rate increased
by 10%, and customer satisfaction greatly improved.
RGV coil transport trolley
Overhead cranecentralized control room
Label sticking robot
industry.Implementation performance
? Production ef?ciency increased by 10.6%; product defect rate
decreased by 1.9%; quality objections decreased by 1%; energyef?ciency increased by 10%;? Equipment comprehensive ef?ciency increased by 10.9%; logistics
turnover rate increased by 15%; CO
emissions reduced by 9.7%.Implemented technologies? Machine vision technology;? Quality defect identi?cation-control loop technology;? Equipment vibration feature recognition technology;? "Fuel gas -wasteheat-electricity-wastewater-salt" ?ve-in-oneef?cient recycling technology;? Intelligent dispatching technology for vehicles;? Multi-link, multi-scenario combination energy comprehensive
balance and optimization scheduling technology.
Case: Cold-R Co. creates an intelligent manufacturing benchmarkenterprise
Case: Intelligent manufacturing demonstration plant of multi-mode continuous casting and rolling
98 99
On April 7, 2022, the "2022 (1st) High-end Magnetic New Material Development Forum", hosted by theZhongguancun Stainless and Special Alloy New Material Industry Technology Innovation Alliance, organizedby Shougang Steel and China Metallurgical Industry Planning and Research Institute, and supported by TheChinese Society for Metals, was successfully held at Beijing Shougang Park. More than 100 representativesfrom relevant government departments, industry associations, research institutes, industrial chain applicationenterprises, and ?nancial institutions attended the forum.The participating experts gave theme reports on "New Materials for Low-carbon Society - High-end ElectricalSteel", focusing on the dual carbon policy and magnetic materials. They also conducted in-depth sharings anddiscussions from multiple aspects such as macro policies, technological innovation, user needs, and materialprogress, in order to promote the popularization of high-end magnetic materials research and application andcontribute to the construction and development of a low-carbon society in China.
Shougang Steel actively participates in industry exchanges and sharing, and promotes the high-quality development ofthe steel industry through the formulation of industry standards and cooperation between industry, academia, research,and application. As of the end of the reporting period, we have joined social organizations such as the China Iron and SteelAssociation, the Solid Waste Disposal and Utilization of New Materials Special Committee of China Society of BuildingMaterials Industry Economy, and the Society for Metals of Beijing, continuously expanding the depth and breadth ofindustry participation and collaboration.
Industry Standards
Shougang Steel establishes the standardization industry benchmark. The companyestablishes a complete enterprise standard system by focusing on leading standards, andpromotes standardization development by undertaking national standards tasks. We alsoactively participate in the formulation of domestic and international industry technicalstandards, hold leadership positions in domestic technical standard organizations, andactively integrate with international standards, to vigorously enhance the company'svoice in technical standards and promote the internationalization of technical standards.In addition, Shougang Steel actively leads and participates in the formulation of greenproduct design standards and green production evaluation standards for the steel industry,integrating advanced technical indicators and green manufacturing concepts into industrystandards, and guiding to achieve high-quality development.In 2022, the company participated in the formulation of 46 standards at all levels, amongwhich, 22 standards were the lead formulation. The company led the drafting of 1 industrystandard and 2 association standards for hydrogen transportation steel plates and hydrogen transportation pipelines, andchaired the formulation of standards such asEvaluation Index and Calculation Method for Thickness Accuracy of Sheet andStrip.TheAnalysis Method for Silicon Calcium Alloy Part 2standard was rated as internationallyadvanced.Zhixin Co.'sstandardQ/SGZGS 0342-2020 Cold-rolled Grain-oriented Electrical Steel Strip (Sheet)won the title of"Forerunner" of national Enterprise Standards, and has been awarded for two consecutive years.
Case: High-end magnetic new material development forum was held
Industry-University-Research-Application Cooperation
Shougang Steel promotes the integration of industry, academia, research, and application, and strengthens deepcooperation with universities, research institutions, and upstream and downstream enterprises, to continuously enhanceresearch on cutting-edge technology applications and to fully leverage the collaborative innovation role of joint researchand development platforms.
Joint laboratoriesShougang Steel strengthens cooperation with more than 10 universities andresearch institutes such as University of Science and Technology Beijing,Northeastern University, and Tsinghua University, and establishes jointlaboratories and research platforms for relevant research content. The companyhas established a tinplate laboratory and carried out a series of product researchprojects with well-known domestic universities and research institutes. Thecompany jointly builds the Hebei Province Steel Laboratory, a high-level innovationplatform, with the People's Government of Hebei Province, Tangshan MunicipalGovernment, North China University of Science and Technology, and HBIS. Thecompany and Beijing Institute of Technology have jointly established the AdvancedElectromagnetic Materials and Motor Technology Joint Research Center. In 2022,we held the ?rst high-end composite talent training class with University of Scienceand Technology Beijing, and established a cooperative base for industry-university-research and an internship practice base with Anhui University of Technology.
Expert workstations
The ?rst high-end composite technology talent training class
Expert workstationsThe company hasestablished 12 expertworkstations and hiredauthoritative experts in theindustry such as ZhangLifeng, Kang Yonglin, andWang Quanli. We haveformed a good mechanismfor high-level experts toparticipate in the company'stechnological innovationdirectly, solving technicalproblems and researchtopics that require expertassistance, while cultivatinghigh-level scienti?c andtechnological talents.In 2022, the companyestablished the ZhangFuming Expert Workstationand the Wu Shengli ExpertWorkstation.
100 101
Shougang Steel, based on its own development, actively gives back to society, promotes the volunteer spirit of "dedication,friendship, mutual assistance, and progress", ful?lls its social assistance responsibilities, and actively carries out socialpublic welfare undertakings.Volunteer activities. The company has built a three-level volunteer service system including a youth volunteer serviceteam, volunteer service units, and volunteers, creating a "volunteer circle". We serve national events and ful?ll socialresponsibilities, demonstrating the spirit of Shougang in various "urgent, dif?cult, dangerous, and important" tasks. In2022, the company has released more than 130 volunteer service projects, recruited more than 3,500 volunteers, andaccumulated more than 100,000 volunteer service hours.
?Serving national events: The company'svolunteers actively participated inand contributed to 14 major nationalevents such as the Beijing WinterOlympics, Beijing Winter Paralympics,China International Fair for Tradein Services in Beijing, BeijingInternational Horticultural Expo, andthe FIS Snowboard World Cup. Inaddition, we regularly hold volunteersymposiums, commend outstandingvolunteers, tell volunteer stories, and establish youth role models. In 2022, 11 young volunteers for the Winter Olympicsand 3 members of the Winter Olympics Service Support Youth Strike Team received the Shougang Group's "Special Awardfor Service Support for the Winter Olympics", and 2 young volunteers were honored as "Outstanding Volunteers" at theChina International Fair for Trade in Services.
Win-win cooperationShougang Steel deepens the close cooperationrelationship with customers continuously. Based onthe principles of "mutual complementarity, resourcesharing, mutual bene?t, and win-win development",the company establishes joint laboratories withleading enterprises in the industry, and conductsspecial research on adhesion, sulfur resistance, rustresistance, and stamping forming. By leveraging theirrespective technological and resource advantages, werealize resource sharing and promote mutual bene?tand common development.
Hisense "Technological Innovation Award"Changfa Group Hengchuang Thermal Management"Breakthrough Innovation Supplier Award"
In the development and application of cold-rolling ultra-high-strength steel, the "1000MPa -level AdvancedHigh-strength Steel for Automobile Key and Application Demonstration" project in Hebei Province of JingtangCo. has formed a comprehensive industry-university-research cooperation, leading the development of high-strength steel strategically.? In cooperation with Yanshan University and China Iron&Steel Research Institute Group, targeted solutionshave been provided for the use and service of ultra-high-strength steel.? The "Blue Elf" project was designed to address the implementation issues of ultra-high-strength hot-dipgalvanized steel production lines.? Independent R&D of "Enhanced Formability Dual-phase Steel (CH Steel) Development" and "TBF/
High-expansion Hole /Martensitic Ultra-high-strength Steel Development and Application TechnologyResearch", speci?cally address issues such as composition design, production, and applicationtechnology of 1000MPa-level ultra-high-strength steel products.Throughout the industry-university-research cooperation mechanism, Jingtang Co. has formed an open,multi-level, and ef?cient technological innovation system according to the ?ve-layer project promotion,achieving signi?cant results. The expansion-hole rate of hot-dip galvanized FB steel has been increased from60% to over 90%. The balanced dual-phase steel with high expansion hole and elongation has been developed.
Shougang Steel and Hisense have expanded theircooperation from single-product to all-round collaboration inproducts, technology, and R&D. Shougang Steel and Hisensehave jointly conducted research on the application of newmaterials such as zinc-aluminum-magnesium coatingproducts and high-strength steel sheet thickness reductionin the household appliance industry, and have achievedbulk supply of zinc-aluminum-magnesium products incommercial air conditioners, establishing a higher-leveland deeper-level sustainable strategic partnership. In 2022,Shougang Steel won the "Technological Innovation Award" byHisense, which has been awarded for two consecutive years.
Case: Industry-university-research cooperation
Case: Strategic cooperation with Hisense
?Fulfilling social responsibilities: The company has carried out the "Learning from Lei Feng" Volunteer Service Month activityfor 10 consecutive years. We go into communities to provide services such as household appliance repairs, voluntaryhaircuts, and free clinics. We also visit special education schools to care for and support children's growth, and donatesports equipment such as footballs and basketballs to schools. Additionally, we carry out "donating with love" fundraisingactivities and organize other public welfare activities, including donations, voluntary tree planting, and blood donation.
Winter Olympics volunteers
"Learning from Lei Feng" Volunteer Service Activity - Volunteers went into the community
Issued certi?cates to the "Top 10 Most
Beautiful Youth Volunteers"
Voluntary tree planting activitiesVisited schools and donated sportsequipment on Children's Day
102 103
Rural revitalization. The company sends two employees to serve as the ?rstsecretaries of economically weak villages in Beijing. Under the leadership of thelocal party committee and government, they ful?ll their duties and contributeto the implementation of the rural revitalization strategy. At the same time,through poverty alleviation by consuming, we expand the achievements ofpoverty alleviation and support rural revitalization. In 2022, we purchased povertyalleviation agricultural materials in the paired assistance areas, totaling 3.3887million yuan.
Organized the "donating with love"fundraising activity, with a totaldonation of867,500 yuan.Purchased
3.3887
millionyuan of poverty alleviationagricultural materials in thepaired assistance areas.
Book donationwith love
Purchased poverty alleviation materialsand distributed them to employees"Warm Winter Clothes" Clothing
Donation
Shougang Steel continuously promotes the ef?cient recycling of resources fromthe perspective of the product manufacturing life cycle, and has formed a newdevelopment model of internal circulation of the company, regional industrycollaboration, and integration into the city.Qiangang Co. fully utilizes the advantage of abundant industrial waste heatresources to provide heating for surrounding residential areas, schools, hospitals,and other areas, meeting the needs of the people's livelihood and contributing tothe clean heating industry in the northern region. Waste heat heating is mainlyconcentrated in Binhe Village, Yangdianzi Town, with a heating area of over 1.1million square meters, bene?ting nearly 10,000 households, effectively reducingpollutant emissions, saving 31,500 tonnes of standard coal per year, reducing CO
emissions by 78,600 tonnes, and reducing SO
emissions by 477 tonnes.As the ?rst large enterprise to settle in Caofeidian, Hebei, Jingtang Co. has driventhe transfer of Beijing's productive service industry to Caofeidian, forming anindustrial chain with the upstream and downstream of the steel industry, greatlypromoting the construction of Caofeidian port cluster including iron ore port, crudeoil port, coal port, etc., and becoming a pioneer in the coordinated development ofBeijing-Tianjin-Hebei region. Through relocation and adjustment, Jingtang Co.'sdemonstration and leading role in the process of relieving non-capital functionsof Beijing and the coordinated development of Beijing-Tianjin-Hebei region hasgradually emerged: Jingtang Co. has absorbed graduates from universities inHebei and other places for employment and driven the employment of nearly20,000 people in related upstream and downstream service industries; JingtangCo. has jointly built a 300,000-tonne ore terminal in Caofeidian with QinhuangdaoPort Authority, Jingtang Port, Hebei Construction&Investment Group, andTangsteel; Jingtang Co. has jointly built a coal tar deep processing project withKailuan Group, and the granulated blast furnace slag project with Tangshan JidongCement... A steel industry chain that promotes the coordinated development of thelocal economy has been formed, promoting the economic and social developmentof the local area.
Heating bene?ting nearly
10,000 householdsSaving31,500tonnesof standard coal per yearReducing CO
emissions by
78,600 tonnesReducing SO
emissions by
tonnes
Governance IndicatorsUnits202020212022The average term of of?ce for the directorsYear3.894.333.67Resignation rate of directors, supervisors and seniorexecutives
%000Proportion of independent directors%565656Age standard deviation of directors, supervisors and seniorexecutives
Age6.24 6.75 7.80Number of board meetingsTime81211Attendance rate of directors%100100100Number of directors attending less than 75% of boardmeetings
Person000Number of meetings of Audit CommitteeTime222Number of meetings of Remuneration and AssessmentCommittee
Time121Total share-proportion of the Top 10 shareholders%88.6785.0986.78Share-proportion of senior executives%0.000 0.032 0.029Stock pledge ratio%000
Number of investorcommunications
Frequency of performance releasesTime133Investment banking strategy meetingNOS031TeleconferenceTime378Investor visitsPerson014Roadshow communicationTime03266Answering investors' questionsNOS3568601Investor relations questionnaire surveyNOS4104Number of compliance training participantsPerson2,251 4,389 8,768Compliance training coverage%122547Total time of compliance trainingHour5,004 9,556 19,156
Economic IndicatorsUnits202020212022Operating revenueRMB 10,0007,995,118.19 13,403,448.61 11,814,218.35Net pro?tRMB 10,000241,114.28 832,653.11 150,941.54Pro?t before taxRMB 10,000277,795.24 979,949.93 179,311.39Total taxRMB 10,000235,724.44 555,920.64 305,365.11Total cash bonus(including tax)RMB 10,000/66,854.24 62,558.95Cash dividend per 10 sharesRMB/10.8
Key Performance Indicators Form
104 105
Environmental IndicatorsUnits2020 2021 2022Environmental investmentTotal investment in environmental protection RMB 100 million13.84 5.48 11.22Environmental pollution incidentsItem000Environmental ?nes during the reportingperiod
RMB 10,000000Environment training coverage%100100100Environmental protection performanceevaluation(The highest grade: A)
AAAEnergy consumptionNatural gasm
160,092,622 241,795,747 214,783,928Streamm
6,565,797 6,706,799 7,598,898CoalTonne11,898,889 12,364,202 12,554,736Energy consumptionTonne standard coal12,930,444 13,676,223 13,842,868Electricity consumption100 million140.36 149.18 151.31Self-provided clean energy generationcapacity (photovoltaic power generation)
MW8.313.6913.69Annual generation of Self-provided cleanenergy (photovoltaic power generation)
MWh10,280 12,160 15,500Water resources usageAnnual fresh water consumption10,000 tonnes6,044.06 6,318.92 6,696.83Fresh water intensity (crude steel productionbased)
m
/t-crude steel2.74 2.67 2.83Amount of water recycled10,000 tonnes362,742 393,641 433,087Water recycled rate%98.63 98.67 98.73Waste gas emissionsParticulate matter （PM） emissionsTonne8,019 5,715 4,908Sulfur dioxides（SO
） emissionsTonne1,736 2,121 2,212Nitrogen oxides （NOx） emissionsTonne5,533 5,208 5,226Particulate matter emissions per tonne ofsteel
Kg/t-crude steel0.405 0.241 0.211Sulfur dioxides emissions per tonne of steelKg/t-crude steel0.088 0.089 0.095Nitrogen oxides emissions per tonne of steelKg/t-crude steel0.280 0.220 0.225WastewaterChemical oxygen demand in wastewaterdischarge
Tonne17.89 16.76 17.87Ammonia nitrogen(NH3-N) in wastewaterdischarge
Tonne0.3540.3360.216Chemical oxygen demand in wastewaterdischarge per tonne of steel
Kg/t-crude steel0.001 0.001 0.001Ammonia nitrogen(NH3-N) in wastewaterdischarge per tonne of steel
Kg/t-crude steel0.000 0.000 0.000Waste materialsScrap steel recycling rate%100100100Total amount of waste generated10,000 tonnes1,121.19 1,247.74 1,238.42
Social IndicatorsUnits202020212022Signing rate of labor contracts%100100100Social insurance coverage%100100100Per capita remuneration RMB 10,00020.16 26.15 25.84Per capita income generation RMB 10,000440.10 751.10 634.90Total number of employeesPerson18,166 17,846 18,608Number of male employeesPerson16,316 16,024 16,675Number of female employeesPerson1,850 1,822 1,933Number of employees 50 years or olderPerson2,525 2,581 3,069Number of employees aged 40-50Person3,437 3,426 3,944Number of employees aged 30-40Person9,645 9,741 9,759Number of employees aged 30 or youngerPerson2,559 2,098 1,836Proportion of female employees in management%16.05 16.27 16.52Number of ethnic minority employeesPerson851 848 856Employee turnover rate%2.20 2.24 2.54Total time of volunteer activitiesHour9,811 15,430 124,125Donation amount for rural revitalizationRMB 10,000108.94 105.68 179.94Training coverage%100100100Percentage of employees who regularly receive performanceand career development examines
%100100100Proportion of employees receiving integrity related training%100100100Total training hoursHour1,331,090 1,260,719 1,316,073Per capita training hoursHour737171Training hours for male employeesHour11,314,267 882,503 1,118,662Training hours for female employeesHour199,663 252,144 197,411
Environmental IndicatorsUnits2020 2021 2022
General waste generation10,000 tonnes1,086.96 1,202.70 1,192.14General waste recycled10,000 tonnes1,086.96 1,202.70 1,192.14Hazardous waste generation10,000 tonnes34.2345.0446.28Hazardous waste recycled10,000 tonnes33.2643.8545.32Clean productionComprehensive utilization rate of solid waste%999999Comprehensive utilization rate of steel slag%100100100Comprehensive utilization rate of dust%100100100GHG emissionsDirect emissions (Scope 1)tCO
e35,855,259 38,615,904 38,542,164Indirect emissions (Scope 2)tCO
e3,207,411 4,179,058 3,936,676Direct/indirect GHG emissions (Scope 1 & 2)tCO
e39,062,670 42,794,962 42,478,839GHG intensity (Scope 1 & 2)tCO
e/t-crude steel1.97 1.80 1.83
106 107
Social IndicatorsUnits202020212022Training hours for front-line employeesHour971,763 672,503 921,251Training hours for middle managementHour266,218 192,144 263,215Training hours for senior executivesHour93,109 126,072 131,607Physical examination coverage%100100100Number of safety training
Person-times
165,136 173,189 193,985Safety training hoursHour699,808 648,412 801,222Total investment in work safety
RMB 100million
1.661.541.37Working days lostDay2102100Occupational disease frequency%000Number of people with occupational diseasePerson000Number of work-related deaths per 100 million revenuePerson000Million working hour injury rate %0.0990.1020Number of employees injured in work-related accidentsPerson220Number of work safety accidentsNOS220Percentage of products sold or shipped that need to be recalledfor safety and health reasons
%000Customer complaint resolution rate%100100100Number of product quality promotion training
Person-times
1,032 920 1,194Customer satisfactionScores97.55 98.45 98.62Total number of suppliersNOS3,377 3,445 3,558Proportion of suppliers in mainland China (supplier localizationratio)
%100100100Total number of procurement orders on bidding procurementplatform
Item122,270 146,560 117,191Procurement amount on bidding procurement platform
RMB 100million
179.73307.35312.06
Proportion of procurement orders on bidding procurementplatform
%98.6998.9999.14Amount of equipment and materials purchased from the local
RMB 100million
1.161.131.24The proportion of equipment and materials purchased from thelocal
%9.556.967.57Amount of equipment and materials purchased from SMEs
RMB 100
million
13.2915.5114.08
The proportion of equipment and materials purchased fromSMEs
%76.4268.90 67.57Number of patents grantedPCS424 450 654Number of innovation patents grantedPCS148 182 166Number of R&D staffPerson2,454 2,295 2,342Proportion of R&D staff%13.5112.86 12.59R&D investmentsRMB 10,000327,119.28 532,148.67 538,607.09Proportion of R&D investment to operating revenue%4.09 3.97 4.56
GRI Standards Index
IndexTitle of disclosureShougang Steel response
General DisclosuresGRI 1: Foundation 2021GRI 2: General Disclosures 2021The organization and its reporting practices2-1Organizational detailsAbout UsP62-2Entities included in the organization's sustainability reportingAbout This ReportP12-3Reporting period, frequency and contact pointAbout This ReportP12-4Restatements of information?2-5External assurance?Activities and workers2-6Activities, value chain and other business relationships
About Us, Supply Chain Management,Industry Collaboration
P6, P81, P982-7Employees
Society: Achieving a Better Life—EmployeeProtection
P602-8Workers who are not employees?Governance2-9Governance structure and composition
Governance: Strengthening the Foundationof Governance—Corporate Governance
P212-10Nomination and selection of the highest governance body
Governance: Strengthening the Foundationof Governance—Corporate Governance
P212-11Chair of the highest governance body
Governance: Strengthening the Foundationof Governance—Corporate Governance
P212-12
Role of the highest governance body in overseeing themanagement of impacts
Governance: Strengthening the Foundationof Governance—Corporate Governance,ESG Management
P21, P232-13Delegation of responsibility for managing impacts?2-14Role of the highest governance body in sustainability reporting?2-15Con?icts of interest
Governance: Strengthening the Foundationof Governance—Business Ethics, AnnualReport
P252-16Communication of critical concerns
Governance: Strengthening the Foundationof Governance—ESG Management
P232-17Collective knowledge of the highest governance body?2-18Evaluation of the performance of the highest governance body?2-19Remuneration policies
Society: Achieving a Better Life—EmployeeProtection
P612-20Process to determine remuneration
Society: Achieving a Better Life—EmployeeProtection
P612-21Annual total compensation ratio?Strategy, policies and practices2-22Statement on sustainable development strategyMessage From ChairmanP42-23Policy commitmentsBusiness Ethics, Employee ProtectionP25, P612-24Embedding policy commitments
Governance: Strengthening the Foundationof Governance—Business Ethics
P252-25Processes to remediate negative impactsBusiness Ethics, Employee ProtectionP28, P622-26Mechanisms for seeking advice and raising concerns
Governance: Strengthening the Foundationof Governance—Business Ethics
P252-27Compliance with laws and regulationsKey Performance Indicators FormP1032-28Membership associations
Value: Demonstrating Mission andResponsibility—Industry Collaboration
P98
108 109
IndexTitle of disclosureShougang Steel responseStakeholder engagement2-29Approach to stakeholder engagement
Governance: Strengthening the Foundationof Governance—ESG Management
P232-30Collective bargaining agreements
Society: Achieving a Better Life—EmployeeProtection
P60GRI 3: Material Topics 20213-1Process to determine material topics
Governance: Strengthening the Foundationof Governance—ESG Management
P243-2List of material topics
Governance: Strengthening the Foundationof Governance—ESG Management
P243-3Management of material topics
Governance: Strengthening the Foundationof Governance—ESG Management
P24GRI 201: Economic Performance 2016201-1Direct economic value generated and distributed
Key Performance Indicators Form, AnnualReport
P103201-2
Financial implications and other risks and opportunities dueto climate change
Environmental protection: Practicingand Leading By Example—Low-carbonDevelopment
P45201-3De?ned bene?t plan obligations and other retirement plans
Society: Achieving a Better Life—EmployeeProtection
P61201-4Financial assistance received from governmentAnnual ReportGRI 202: Market Presence 2016202-1
Ratios of standard entry level wage by gender compared tolocal minimum wage
?202-2
Proportion of senior management hired from the localcommunity
?GRI 203: Indirect Economic Impacts 2016203-1Infrastructure investments and services supported
Value: Demonstrating Mission and
Responsibility—National Strategic Projects
Participation, Public Welfare Activities
P86, P101203-2Signi?cant indirect economic impacts
Value: Demonstrating Mission andResponsibility—Public Welfare Activities
P102GRI 204: Procurement Practices 2016204-1Proportion of spending on local suppliersKey Performance Indicators FormGRI 205: Anti-corruption 2016205-1Operations assessed for risks related to corruption?205-2
Communication and training about anti-corruption policiesand procedures
Governance: Strengthening the Foundationof Governance—Integrity Construction
P25205-3Con?rmed incidents of corruption and actions taken
Governance: Strengthening the Foundationof Governance—Integrity Construction
P28GRI 206: Anti-competitive Behavior 2016206-1
Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices
Governance: Strengthening the Foundationof Governance—Business Ethics
P25GRI 207: Tax 2019207-1Approach to tax
Governance: Strengthening the Foundationof Governance—Risk Management
P30207-2Tax governance, control, and risk management
Governance: Strengthening the Foundationof Governance—Risk Management
P30207-3
Stakeholder engagement and management of concernsrelated to tax
Governance: Strengthening the Foundationof Governance—Risk Management
P30207-4Country-by-country reporting?GRI 301: Materials 2016301-1Materials used by weight or volume?301-2Recycled input materials used
Environmental protection: Practicing andLeading By Example—Circular Economy
P39301-3Reclaimed products and their packaging materials
Environmental protection: Practicing andLeading By Example—Circular Economy
P40GRI 302: Energy 2016302-1Energy consumption within the organizationKey Performance Indicators FormP104302-2Energy consumption outside of the organizationKey Performance Indicators FormP104
302-3Energy intensityKey Performance Indicators FormP104
IndexTitle of disclosureShougang Steel response
302-4Reduction of energy consumption
Environmental protection: Practicingand Leading By Example—CircularEconomy
P39302-5
Reductions in energy requirements of products andservices
Environmental protection: Practicingand Leading By Example—CircularEconomy
P39
GRI 303: Water and Ef?uents 2018303-1Interactions with water as a shared resource
Environmental protection: Practicingand Leading By Example—CircularEconomy
P42
303-2Management of water discharge-related impacts
Environmental protection: Practicingand Leading By Example—CircularEconomy
P42
303-3Water withdrawal
Environmental protection: Practicingand Leading By Example—CircularEconomy
P42
303-4Water discharge
Environmental protection: Practicingand Leading By Example—CircularEconomy
P42
303-5Water consumption
Environmental protection: Practicingand Leading By Example—CircularEconomy
P42
GRI 304: Biodiversity 2016304-1
Operational sites owned, leased, managed in, or adjacentto, protected areas and areas of high biodiversity valueoutside protected areas
Environmental protection: Practicingand Leading By Example—Biodiversity
P52
304-2
Signi?cant impacts of activities, products, and services onbiodiversity
Environmental protection: Practicingand Leading By Example—Biodiversity
P52304-3Habitats protected or restored
Environmental protection: Practicingand Leading By Example—Biodiversity
P52
304-4
IUCN Red List species and national conservation listspecies with habitats in areas affected by operations
?GRI 305: Emissions 2016305-1Direct (Scope 1) GHG emissions
Environmental protection: Practicing
and Leading By Example—Low-carbon
Development
P44
305-2Energy indirect (Scope 2) GHG emissions
Environmental protection: Practicing
and Leading By Example—Low-carbon
Development
P44
305-3Other indirect (Scope 3) GHG emissions?305-4GHG emissions intensityKey Performance Indicators FormP105305-5Reduction of GHG emissions
Environmental protection: Practicing
and Leading By Example—Low-carbon
Development
P44
305-6Emissions of ozone-depleting substances (ODS)?305-7
Nitrogen oxides (NOx), sulfur oxides (SOX), and othersigni?cant air emissions
Environmental protection: Practicing
and Leading By Example—
Environmental Management
P36
GRI 306: Waste 2020306-1Waste generation and signi?cant waste-related impacts
Environmental protection: Practicing
and Leading By Example—Circular
Economy
P40
306-2Management of signi?cant waste-related impacts
Environmental protection: Practicing
and Leading By Example—Circular
Economy
P40
306-3Waste generated
Environmental protection: Practicing
and Leading By Example—Circular
Economy
P40
306-4Waste diverted from disposal
Environmental protection: Practicing
and Leading By Example—Circular
Economy
P40
306-5Waste directed to disposal
Environmental protection: Practicing
and Leading By Example—Circular
Economy
P40
GRI 308: Supplier Environmental Assessment 2016308-1
New suppliers that were screened using environmentalcriteria
Society: Achieving a Better Life—Supply
Chain Management
P81
308-2
Negative environmental impacts in the supply chain andactions taken
Society: Achieving a Better Life—Supply
Chain Management
P81
GRI 401: Employment 2016401-1New employee hires and employee turnoverKey Performance Indicators FormP105401-2
Bene?ts provided to full-time employees that are notprovided to temporary or part-time employees
Society: Achieving a Better Life—
Employee Protection
P61
401-3Parental leave
Society: Achieving a Better Life—
Employee Protection
P61GRI 403: Occupational Health and Safety 2018403-1Occupational health and safety management system
Society: Achieving a Better Life—Healthand Safety
P69
110 111
IndexTitle of disclosureShougang Steel response403-2
Hazard identi?cation, risk assessment, and incidentinvestigation
Society: Achieving a Better Life—Healthand Safety
P73
403-3Occupational health services
Society: Achieving a Better Life—Healthand Safety
P73403-4
Worker participation, consultation, and communication onoccupational health and safety
Society: Achieving a Better Life—Healthand Safety
P73403-5Worker training on occupational health and safety
Society: Achieving a Better Life—Healthand Safety
P73403-6Promotion of worker health
Society: Achieving a Better Life—Healthand Safety
P73403-7
Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships
Society: Achieving a Better Life—Healthand Safety
P73403-8
Workers covered by an occupational health and safetymanagement system
Society: Achieving a Better Life—Healthand Safety
P73403-9Work-related injuriesKey Performance Indicators FormP106403-
Work-related ill health
Society: Achieving a Better Life—Healthand Safety
P73GRI 404: Training and Education 2016404-1Average hours of training per year per employee
Society: Achieving a Better Life—TalentDevelopment
P68
404-2
Programs for upgrading employee skills and transitionassistance programs
Society: Achieving a Better Life—TalentDevelopment
P67
404-3
Percentage of employees receiving regular performanceand career development reviews
Society: Achieving a Better Life—TalentDevelopment
P68
GRI 405: Diversity and Equal Opportunity 2016405-1 Diversity of governance bodies and employees
Society: Achieving a Better Life—Employee Protection
P60
405-2Ratio of basic salary and remuneration of women to men?GRI 406: Non-discrimination 2016406-1Incidents of discrimination and corrective actions taken
Society: Achieving a Better Life—Employee Protection
P60GRI 407: Freedom of Association and Collective Bargaining 2016407-1
Operations and suppliers in which the right to freedom ofassociation and collective bargaining may be at risk
Society: Achieving a Better Life—Employee Protection
P60
GRI 408: Child Labor 2016408-1
Operations and suppliers at signi?cant risk for incidentsof child labor
Society: Achieving a Better Life—Employee Protection
P60
GRI 409: Forced or Compulsory Labor 2016409-1
Operations and suppliers at signi?cant risk for incidentsof forced or compulsory labor
Society: Achieving a Better Life—Employee Protection
P60
GRI 410: Security Practices 2016410-1
Security personnel trained in human rights policies orprocedures
?GRI 411: Rights of Indigenous Peoples 2016411-1
Incidents of violations involving rights of indigenouspeoples
No incidents of violations involving rights of indigenous
peoples happenedGRI 413: Local Communities 2016413-1
Operations with local community engagement, impactassessments, and development programs
Value: Demonstrating Mission and
Responsibility—National Strategic
Projects Participation, Public Welfare
Activities
P86, P101
413-2
Operations with signi?cant actual and potential negativeimpacts on local communities
Value: Demonstrating Mission and
Responsibility—National Strategic
Projects Participation, Public Welfare
Activities
P86, P101
GRI 414: Supplier Social Assessment 2016414-1New suppliers that were screened using social criteria
Society: Achieving a Better Life—Supply
Chain Management
P81
414-2
Negative social impacts in the supply chain and actionstaken
Society: Achieving a Better Life—Supply
Chain Management
P81
GRI 415: Public Policy 2016415-1Political contributions?GRI 416: Customer Health and Safety 2016
IndexTitle of disclosureShougang Steel response
416-1
Assessment of the health and safety impacts of productand service categories
?416-2
Incidents of non-compliance concerning the health andsafety impacts of products and services
Society: Achieving a Better Life—Quality
Assurance
P80
GRI 417: Marketing and Labeling 2016417-1
Requirements for product and service information andlabeling
Society: Achieving a Better Life—
Customer Service
P74
417-2
Incidents of non-compliance concerning product andservice information and labeling
Society: Achieving a Better Life—
Customer Service
P74
417-3
Incidents of non-compliance concerning marketingcommunications
Society: Achieving a Better Life—
Customer Service
P80
GRI 418: Customer Privacy 2016418-1
Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data
Governance: Strengthening the
Foundation of Governance—Risk
Management
P30
SDGs Index
SDGsBrief introductionShougang Steel response
1No Poverty: End poverty in all its forms everywhere.
Value: Demonstrating Mission andResponsibility—Public Welfare Activities
Good Health and Well-being: Ensure healthy lives andpromote well-being for all at all ages.
Society: Achieving a Better Life—EmployeeProtection
Quality Education: Ensure inclusive and equitablequality education and promote lifelong learningopportunities for all.
Value: Demonstrating Mission andResponsibility—Public Welfare Activities
Gender Equality: Achieve gender equality and empowerall women and girls.
Society: Achieving a Better Life—EmployeeProtection
Clean Water and Sanitation: Ensure availability andsustainable management of water and sanitation forall.
Environmental protection: Practicing and LeadingBy Example—Circular Economy
Affordable and Clean Energy: Ensure access toaffordable, reliable,sustainable and modern energy forall.
Environmental protection: Practicing and LeadingBy Example—Circular Economy, Low-carbonDevelopment, Green Products
Decent Work and Economic Growth: Promotesustained, inclusive and sustainable economic growth,full and productive employment and decent work forall.
Society: Achieving a Better Life—EmployeeProtection
Industry, Innovation and Infrastructure: Build resilientinfrastructure, promote inclusive and sustainableindustrialization and foster innovation.
Value: Demonstrating Mission andResponsibility—Intelligent Manufacturing
Reduced Inequalities: Reduce inequality within andamong countries.
Society: Achieving a Better Life—EmployeeProtection
Sustainable Cities and Communities: Make citiesand human settlements inclusive,safe, resilient andsustainable.
Value: Demonstrating Mission andResponsibility—Urban Integration
Responsible Consumption and Production: Ensuresustainable consumption and production patterns.
Society: Achieving a Better Life—QualityAssuranceEnvironmental protection: Practicing and LeadingBy Example—Green Products
Climate Action: Take urgent action to combat climatechange and its impacts.
Environmental protection: Practicing and LeadingBy Example—Low-carbon DevelopmentSociety: Achieving a Better Life—Supply ChainManagement
Life Below Water: Conserve and sustainably use theoceans, seas and marine resources for sustainabledevelopment.
Environmental protection: Practicing and LeadingBy Example—Biodiversity
Life on Land: Protect, restore and promote sustainableuse of terrestrial ecosystems, sustainably manageforests, combat deserti?cation, and halt and reverseland degradation and halt biodiversity loss.
Environmental protection: Practicing and LeadingBy Example—Biodiversity
Peace, Justice and Strong Institutions: Promotepeaceful and inclusive societies for sustainabledevelopment, provide access to justice for all and buildeffective, accountable and inclusive institutions at alllevels.
Governance: Strengthening the Foundation ofGovernance—Business Ethics
Partnerships for the Goals: Strengthen the means ofimplementation and revitalize the Global Partnershipfor Sustainable Development.
Value: Demonstrating Mission andResponsibility—Industry Collaboration
Dear readers,Thank you for taking the time to read the 2022 Shougang Steel Sustainability Report! We attach great importance to andlook forward to hearing your feedback on this report. Your opinions and suggestions are an important basis for us tocontinue to promote sustainable development management and practice. We wold appreciate if if you provide valuablecomments and suggestions by completing relevant questions in the feedback form, and please sent it back to us in thefollowing way:
Board Secretary Of?ce of Beijing Shougang Co., Ltd.Contact Add: No. 99 Shijingshan Road, Shijingshan District, Beijing, PRCPostcode: 100043E-mail: sggf@sgqg.comTel: 010-88293727Fax: 010-88292055
1. Which type of stakeholder do you belong to?
□Shareholders and investors □Company management □Employees □Customers □Suppliers □Government
and regulatory agencies □Community organizations, non-governmental organizations □Industry partners, industryassociations, and research institutions □Media □Other (please specify)
2. Please comment on the response and disclosure of this report to the concerns of stakeholders:
□Great □Good □General □Poor □Very poor
3. Please comment on the clarity, accuracy, and completeness of the information, indicators, and data disclosed in this
report:
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4. Please comment on the readability of this report:
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5. Please make a comprehensive evaluation of this report:
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Open Questions:
1. What suggestions do you have for Shougang Steel's work related to sustainable development work and report release?
2. What de?ciencies do you think exist in this report?
3. What else sustainable development information do you think needs to be disclosed in this report?