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InnovationNewMaterial2023Environmental,SocialandGovernanceReportEmail:zqb@innovationmetal.comTel:010-66536198Address:No.1808,Floor18,ExcelCentre,WudinghouStreet,XichengDistrict,BeijingInnovationNewMaterialTechnologyCo.,Ltd.2023Environmental,SocialandGovernanceReportInnovationNewMaterial2023Environmental,SocialandGovernanceReportAbouttheReport01MessagefromtheChairman03AboutInnovationNewMaterialCompanyProfileCompanyCultureHonors&Awards070910KeyESGPerformances89GRIStandardsIndex94ContentsSustainableDevelopmentManagementInnovationPioneeringtheGreenAluminumJourneyESGGovernanceCommunicationswithStakeholdersMaterialityIssueAnalysisInnovationNewMaterialinFigures1516171920PursuingGreenCycletoPromoteGreenDevelopmentDesigningGreenandLow-carbonProductsActivelyRespondingtoClimateChangePracticingEnvironmentalProtection414326Green-drivenInnovationandProduct-ledDevelopmentDivingDeepintoTechnologicalInnovationStrivingforExcellentQualityProvidingQualityServices576051PracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentImprovingRiskPreventionandControlCapabilitiesStrengtheningBusinessEthicsConstructionStrengtheningPatentandBrandProtectionSteppingUpInformationSecurityEffortsBuildingaSustainableValueChain6363646565UniteEffortsandJoinHandstoForgeDevelopmentTogetherEmpoweringEmployees'GrowthProtectingWorkSafetyFacilitatingHarmoniousSocialDevelopment697987InnovationNewMaterial2023Environmental,SocialandGovernanceReportAbouttheReportTheReportisthefirstEnvironmental,SocialandGovernancereportpreparedandissuedbyInnovationNewMaterialTechnologyCo.,Ltd.(hereinafter''InnovationNewMaterial'',''theCompany''or''We'').TheReportfocusonmaterialESGtopicsofconcerntostakeholders,andisintendedtodisclosetheCompany'sstrategies,practicesandperformanceinEnvironmental,SocialandGovernance(hereinafter''ESG'')inanobjective,justandtransparentmannertopromotestakeholderstogainamorecomprehensiveunderstandingofInnovationNewMaterial.IntroductionThescopeoftheReportincludesInnovationNewMaterialanditssubsidiaries.ThestatisticalscopeofdataintheReporthasbeenmarkedthereinanddataiscalculatedinaccordancewithnationalregulationsorinternationalstandards.Unlessotherwisestated,theamountsintheReportaredenominatedinRMB.ReportingScopeTheinformationanddatacontainedintheReportcoverstheperiodfrom1January2023to31December2023(hereinafter''2023''or''thisyear'').ForthecomparabilityandcompletenessoftheReport,theperiodhasbeenextendedforwardandbackwardasappropriate.ReportingPeriodTheReportispreparedbasedontheGlobalReportingInitiativeReportingStandards(GRIStandards),theSelf-disciplineRegulationofListedCompaniesNo.1-StandardizedOperationbytheShanghaiStockExchangeandtheUnitedNationsSustainableDevelopmentGoals(UNSDGs).BasisofPreparationFeedbackontheReportCompanyabbreviationFullnameofcompanyInnovationNewMaterial,theCompany,weInnovationNewMaterialTechnologyCo.,Ltd.InnovationMetalShandongInnovationMetalTechnologyCo.,Ltd.InnovationPrecisionShandongInnovationPrecisionTechnologyCo.,Ltd.SuzhouChuangtaiSuzhouChuangtaiAlloyMaterialCo.,Ltd.ShandongSheetMaterialsShandongInnovationCreativeSheetMaterialsCo.,Ltd.YuanwangElectricalTechnologyShandongYuanwangElectricalTechnologyCo.,Ltd.ShandongChuangYuanRenewableResourcesShandongChuangYuanRenewableResourcesCo.,Ltd.ChuanghuiNewMaterialShandongChuanghuiNewMaterialTechnologyCo.,Ltd.ChuangfengNewMaterialShandongChuangfengNewMaterialTechnologyCo.,Ltd.InnovationBeihaiShandongInnovationBeihaiCo.,Ltd.YunnanInnovationYunnanInnovationAlloyCo.,Ltd.QingDaoLiWangQingDaoLiWangPrecisionTechnologyCo.,Ltd.InnerMongoliaInnovationInnerMongoliaInnovationNewMaterialsCo.,Ltd.InnerMongoliaLightweightInnerMongoliaInnovationLightweightNewMaterialsCo.,Ltd.IndexofAbbreviationsforCompanyMembers0102ThisReportcanbedownloadedandviewedontheCompany'swebsite(andtheShanghaiStockExchange'swebsite().IfyouhaveanyvaluablesuggestionsontheReportorwouldliketoaccesstootherrelevantinformation,pleasecontactusthroughthefollowingchannels:Email:zqb@innovationmetal.comTel:010-66536198Address:No.1808,Floor18,ExcelCentre,WudinghouStreet,XichengDistrict,BeijingInnovationNewMaterial2023Environmental,SocialandGovernanceReportMessagefromtheChairman0304Astimepasses,opportunitiesarealsoconstantlyemergingandevolving.Theyear2023witnessedtherapidprogressofInnovationNewMaterialfollowingitslistingonthecapitalmarket,andayearwhentheresultsofourdevelopmentarerealized.Overthepastyear,wehaveadheredtotheprinciplesofsharingfuturewithouremployees,growingtogetherwithourcustomers,developingalongsideourpartners,andprogressinginsyncwithsociety.Wehaveachievedremarkablesuccessesinlow-carbondevelopment,productmanufacturing,technologicalinnovation,andmarketexpansion,whichlaidasolidfoundationfortheCompany'slong-termdevelopment.Ayearofdeepeningcommitmenttogreendevelopmentandleadingthelow-carbonera.Facingtheseverechallengesoftheglobalclimatechange,wehavebeenfirmlycommittedtothepathofgreendevelopmentbybuildingacomprehensivedevelopmentsystemofgreenenergy,greenproduction,greenemissions,greenproducts,andgreenrecycling,integratingthephilosophyofgreendevelopmentthroughouttheentirelifecycleofourproducts.Wehavemadesignificantprogressintheconstructionofourindustrialchainofgreenaluminumduringtheyear.LeveragingtheuniqueadvantagesinresourcesofYunnanandInnerMongolia,wehavemadefulluseofhydroelectric,windandsolarpoweraluminumtocontinuetoexpandourpresenceinthefieldofsecondaryaluminum.Additionally,wehaveboostedenergyconservationandemissionreductionintheproductionprocesswhileincreasingtheproportionofrenewableenergy,whichsignificantlyreducedcarbonemissionsthroughouttheproductlifecycle.Bydoingso,wehaveprovidedlightweightandenvironmentallyfriendlyaluminumalloyproductstonumerousindustriesdomesticallyandabroad,contributinginnovativestrengthtothesustainable,green,andhealthydevelopmentofthealuminumindustry.Ayearofacceleratingtechnologicalinnovationandrefiningqualitymanagement.WefirmlybelievethatinnovationisthepersistentdriverfortheCompany'sdevelopment,andthatqualityisthesolidfoundationofbrandreputation.Centeringaroundthecoreprinciplesoftechnologicalinnovationandhigh-qualitydevelopment,wehavecontinuouslyimprovedourinnovativecapabilitiesandproductionefficiency.Tomaintainaleadingpositioninthefiercemarketcompetition,wehaveintroducedandcultivatedtechnicaltalentswhileincreasinginvestmentintechnologicalinnovationandenhancingthelevelofintelligenceintheproductionprocess.Wehavebeencontinuouslystrengtheningourcustomer-centeredphilosophyandimprovingourqualitymanagementsystemtoensurethateveryproductandservicemeetsorevenexceedscustomerexpectations,bywhichwehaveestablishedagoodbrandimageinthemarket.Ourcommitmenttoinnovation-drivenandquality-firstprincipleshasinjectedstrongmomentumintothesustainableandhealthydevelopmentoftheCompanyandtheentireindustry,whichmanifestourwell-foundedconfidenceandenduringpursuitforthefuturedevelopmentoftheindustry.Ayearofstrengtheningcorporategovernanceandforginganexcellentbrand.WehaveaprofoundunderstandingthatstandardizationisthecornerstoneoftheCompany'ssteadydevelopmentandhaveinvestedsubstantialeffortinit.Wehavealwaysadheredtotheprincipleofhonestoperationbycontinuouslystrengtheninginternalcontrolandriskmanagementtoensuretherationalityandcomplianceofcorporatedecisions.Wefirmlyupholdafairandcompetitivemarketorderwithafocustorespectandprotectintellectualpropertyrights,creatinglong-termvalueforshareholdersandcustomers.Wehaveestablishedlong-termandstablecooperativerelationshipswithoursupplierstojointlybuildasustainableecosystemalongtheindustrialchain,promotingthehealthydevelopmentoftheindustry.Inacomplexandevolvingmarket,wehaveadheredtoouroriginalaspirations,operatedwithintegrity,andpressedforwardsteadily,continuouslycreatingsustainablevalueforsociety.Ayearoffulfillingsocialresponsibilitiesandbuildingaharmoniouscommunity.Asacompanyfullofwarmth,wehaveassimilatedsocialresponsibilitiesintoourcorporateculture.Werecognizethehardworkofeveryemployeeandsafeguardtheirworkplacerightsandinterestswhileenablingtheirgrowthanddevelopment,tocreateaworkingenvironmentcharacterizedbyhappinessandasenseofbelonging.Furthermore,weactivelyparticipateinsocialwelfareundertakingstogivebacktosocietythroughpublicwelfareaid,charitydonations,andothermeans.Indoingso,wehavepromotedpositiveenergyandbroughtwarmthandhopetosociety.Weholdthefirmbeliefthatfulfillingcorporatesocialresponsibilitiesisourinescapableduty,whichnotonlybenefitsemployeesbutalsoservesasasincerecontributiontosociety,drivingoursustaineddevelopment.WewillunswervinglyadvanceESGpracticesinourfuturedevelopment,withgreaterdeterminationandinvestmentinpromotinggreendevelopment,fulfillingsocialresponsibilities,andstrengtheningcorporategovernancetocapturethedevelopmenttrendsoftheneweraandaccuratelyseizestrategicopportunities.Wewillcontinuetocollaboratewithglobalpartners,withamoreopenmindsetforchangeandmoresolidadvancesforthefuture,tojointlyexplorenewpathsfortheCompany'ssustainabledevelopment.Inthisprocess,wewillworkcloselywithallsectorsofsocietytoanchorourgoalsanduniteourefforts.Wewillstrideforwardonthejourneyof''becominganindustryleaderandbuildingacentury-oldenterprise''tocreatemaximumvalueforshareholders,customers,employees,society,andotherstakeholders,usheringinamorebrilliantandgloriousfuture!Mr.CuiLixinChairmanofInnovationNewMaterialInnovationNewMaterial2023Environmental,SocialandGovernanceReport01050606AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherAboutInnovationNewMaterialInnovationNewMaterial2023Environmental,SocialandGovernanceReportCompanyProfileInnovationNewMaterialisalarge-scale,modernandcomprehensiveenterprisemainlyengagedintheproductionandoperationofaluminumprofilesfor3Cconsumerelectronics,aluminumprofilesforvehiclelightweighting,sheetsandfoils,aluminumrodsandcables,aluminumalloyrods,structuralcomponents,etc.Positionedasoneoftheworld'slargestproductionandresearchanddevelopmentbasesforaluminumalloymaterials,theCompanyhasmaintainedaleadingglobalmarketshareinaluminumalloyrodsformultipleconsecutiveyears.TheCompanyspecialisesintheresearch,development,production,andprocessingofaluminumalloysandtheirproducts,offeringcomprehensivesolutionsforthealuminumalloyprocessingindustry.Itsproductsarewidelyusedinvariousfieldssuchas3Cconsumerelectronics,vehiclelightweighting,construction,andnewenergy.InnovationNewMaterialhasestablished14industrialparksacross4provinces(autonomousregions)inChina,includingShandong,Jiangsu,InnerMongolia,andYunnan,aswellasoverseaslocationsinVietnamandMexico.Withatotalof10,724employees,theCompanyachievedatotalproductionoutputof4.7196milliontonsin2023,whichinvolving3.4093milliontonsofrods,87,800tonsofprofiles,551,500tonsofsheetsandfoils,671,000tonsofaluminumrodsandcables,and23.1262millionstructuralcomponents.MilestonesFoundedin2007,InnovationMetalisatechnology-basedenterprisefocusingonresearch,development,production,andprocessing,whileprovidingcomprehensivesolutionstothealuminumalloyprocessingsector.Wepioneeredauniqueprocurementmodelthatensuresliquidaluminumremainsuntouchedbytheground.ThisinnovativeapproachforgedastrategicpartnershipwithWeiqiaoPioneeringGroup,theworld'slargestprivately-ownedelectrolyticaluminumenterprise.Thiscollaborationmarkedasignificantmilestoneinourjourney,asitwasthefirsttimeweformallysetthedevelopmentgoalof''buildingacentury-oldenterprise.''2007-Amomentousyearofestablishment,openinganewchapter,aswesolidifiedfoundationsforacentury-oldenterpriseIn2013,wesuccessfullytackleddifficultiesrelatedtohigh-strengthsuperconductivityinaluminumalloycables.Assuch,duringthe13thFive-YearPlanperiod,ourproductswerechosenbyover70%ofthebiddingwinnersforthenationalwest-to-eastpowertransmissionprogram.2013-Fortifyingdiversifiedgrowth,wesurpassedindustrybenchmarksIn2018,wedevelopedasoneofthecoresupplierstotheworld'slargest3Cconsumerelectronicsresearch,development,andmanufacturingenterprises.Assumingapivotalrole,wetookontheresponsibilityofdeveloping,prototyping,andindustrializingaluminumalloymaterialsforvariousinnovativeproducts.Thisendeavorwaswidelyacknowledgedbyourhigh-qualitycustomersinthe3Cconsumerelectronicssectorandbeyond.2018-Navigatingtherapidsandraisingthesails,weestablishedaglobalpresencewithvibrantindustrialgrowthSince2021,wehaveembarkedonajourneytosupplyaluminumalloymaterialsinbulktotheworld'sleadingmanufacturersofnewenergyvehicles,remainingvigilantandresponsivetothedemandsofthehigh-endmarket.Throughoutthisjourney,wehaveconsistentlypositionedourselvesattheforefrontofindustrytechnology.2021-Unveilinganewchapterinvehiclelightweighting,wesetglobalbenchmarksintechnicalexcellenceTheCompany'ssignificantassetrestructuringwasapprovedbytheChinaSecuritiesRegulatoryCommissionon13October2022.Subsequently,inDecember2022,wesuccessfullylistedonthemainboardoftheShanghaiStockExchange,withthestockabbreviation''InnovationNewMaterial''andstockcode''600361''.Byleveragingthecapitalmarket,wehaveachievedcontinuousoptimizationofourcapitalstructureandsustainedenhancementofourdevelopmentmomentum.2022-''Dream-PursuingPlan''remainedunwavering,asweshapedthefuturethroughinnovation0708AccordingtostatisticsprovidedbytheChinaNonferrousMetalsFabricationIndustryAssociation,innovationmetal'sproductsstandattheforefrontoftheindustryinvariousaspects,suchasenergyconsumptionperunitproduct,emissionsofpollutantsperunitproduct,rawmaterialconsumptionperunitproduct,solidwasteutilization,andcarbonemissionsperunitproduct.Thiscomprehensivecommitmenttogreendevelopmentplacesuswithinthetop10%oftheindustry.2023AwardedamongtheEighthBatchofManufacturingIndividualChampions(Aluminum-Magnesium-SiliconAlloy)2022RankedNo.3globallyandNo.1nationallyin3Celectronicaluminumprofilesmarketshare2023Ranked169thintheListofTop500ChineseManufacturingEnterprises2023Ranked98thintheListofTop500ChinesePrivateManufacturingEnterprises2023Ranked335thintheListofTop500ChineseEnterprises2023Ranked149thintheListofTop500ChinesePrivateEnterprises2023Ranked16thintheListofTop100ShandongPrivateEnterprises2023RankedNo.1globallyinroundaluminumalloyingotmarketshareAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReportCompanyCultureEnterprisePhilosophyAbeautifulfuturethroughinnovationEnterpriseMissionPropellingindustryprogressthroughscientificandtechnologicaladvancementsEnterpriseEthosPioneeringandinnovatingthroughatruthfulandpragmaticperformanceBusinessPhilosophyCustomersatisfactionisthekeydrivingforceforawiderpresenceEnterpriseObjectiveAspiringtoindustryleadershipandbuildingacentury-oldenterpriseHonors&AwardsInnovationNewMaterialhasalwayspracticedthesustainabledevelopmentstrategyandisrecognizedbygovernmentandinstitutionsinvariousaspects.In2023,theCompanyanditssubsidiariesreceivedanumberofhonors&awards,includingbutnotlimitedto:DateNameofHonors&AwardsInDecember2023InnovationNewMaterialjoinedtheAluminumStewardshipInitiative(ASI).InDecember2023InnovationNewMaterialwasnominatedfortheShandongProvincialGovernorQualityAward.InDecember2023YunnanInnovationAlloyCo.,Ltd.wasshortlistedasNo.29thinthe''2023Top100YunnanEnterprises''list,risingby34positionsfromthepreviousyear;wasranked15thinthe''2023Top100YunnanManufacturingEnterprises''list,risingby18positionsfromthepreviousyear;wasshortlisted8thinthe''2023Top100YunnanPrivateEnterprises''list,risingby23positionsfromthepreviousyear.InNovember2023TheCodeforControlofWastewater,WasteGasandScrapWastefromAluminumandAluminumAlloyMeltingandCastingledandpreparedbyInnovationMetalandSuzhouChuangtaiAlloyMaterialsCo.,Ltd.wonthefirstprizeoftheExcellenceAwardforTechnicalStandardsawardedbytheNationalNonferrousMetalsStandardizationTechnicalCommittee.InnovationMetalparticipatedinpreparingtheAluminumAlloyIngotsforAviationProducts,whichwonthesecondprizeoftheExcellenceAwardforTechnicalStandardsawardedbytheNationalNonferrousMetalsStandardizationTechnicalCommittee.InNovember2023InnovationMetalwasawardedthetitleof''NationalGreenFactory''.InOctober2023InnovationMetalwasfundedby2023ShandongProvincialKeyResearchandDevelopmentProgramme(MajorScientificandTechnologicalInnovationProject).InSeptember2023InnovationMetalranked149thintheListofTop500ChinesePrivateEnterprisesfor2023,risingby23positionscomparedtothepreviousyear.ranked98thinthe''ListofTop500ChinesePrivateManufacturingEnterprisesin2023'',risingby7positionscomparedtothepreviousyear.InSeptember2023InnovationMetalwassuccessfullyselectedintothe''ProvincialQualityBenchmarking''.0910AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReportHonors&AwardsDateNameofHonors&AwardsInSeptember2023InnovationPrecision'sproject-''lightweightalloymaterialapplicationinrailtransitwithanannualoutputof100thousandtons''wasshortlistedforShandongNewMaterialInnovationandApplicationDemonstrationProjects.InSeptember2023YunnanInnovationAlloyCo.,Ltd.wasrankedasthe19thoftheTop100Non-PublicEnterprisesinYunnanProvincein2023and16thoftheTop20Non-PublicManufacturingEnterprisesinYunnanProvincein2023.InAugust2023ourCompanyranked23rdintheListofChina'stop50nonferrousfirmsin2022,advancingbytwopositions.InAugust2023InnovationMetalwasshortlistedinthe''Top100ShandongPrivateEnterprises''listforthe11thconsecutiveyear,ranking16th,advancingbyonepositionfromthepreviousyear.InAugust2023InnovationPrecisionandYuanwangElectricPowerwereawardedtheShandongprovincial-level''GreenFactory''titlefor2023.InAugust2023thenationalstandardGB/T13586-2021secondaryaluminumpreparedbytheCompanywasapprovedasShandongOriginalTechnicalStandardProject.InJune2023InnovationMetalandInnovationPrecisionwereselectedintothe''CultivationListofShandongNewMaterialLeadingEnterprises''.InJune2023InnovationPrecisionwasaccreditedinthecultivationlistoffirstbatchof''MorningStarFactories''forthedigitaleconomyinShandongProvince.InJune2023InnovationMetalwasawardedasthe''OutstandingUnitforBloodDonationOrganisation''inShandongProvince.InJune2023InnovationPrecisionwascertifiedasShandong''OneEnterprise,OneTechnology''R&DCentre,andBinzhouIndustrialDesignCentre.InFebruary2023InnovationMetalwasawardedthetitleof''NationalAdvancedPrivateEnterpriseinEmploymentandSocialSecurity''.InFebruary2023The''ShandongEngineeringResearchCentreforNewAluminumAlloyMaterialswithUltra-strengthandHighToughness''wasapprovedtheoptimizationandintegrationbytheShandongDevelopmentandReformCommission.InJanuary2023InnovationMetalwashonoredas''TheMostInnovativeEnterprisein2022''.1112AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport021314AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherSustainableDevelopmentManagementInnovationNewMaterial2023Environmental,SocialandGovernanceReportESGgovernanceInnovationNewMaterialvaluesESGgovernancehighly.Withthegoalofrealizinghigh-qualitysustainabledevelopmentoftheCompany,wecomprehensivelyintegrateESGconceptsintothedailymanagementsystemoftheenterprise,respondtotheconcernsofcustomers,employees,investorsandotherstakeholdersabouttheESGperformanceoftheenterprise,andcontinuouslycreatevalueforallstakeholders.InordertobetterpromoteESGgovernance,InnovationNewMaterialhasestablishedanESGmanagementsystemwiththeBoardofDirectorsasthesupremegoverningauthority,theStrategyandESGCommitteeundertheBoardofDirectorsasthespecializedcommittee,theESGWorkingGroupasthecoordinatingauthorityfororganizingtheESGworkofitssubsidiaries,anditssubsidiariesasthemainexecutingagencies,thuslayingthefoundationforthemanagementofESGrelatedmattersoftheCompany.ESGgovernancestructure1516TheBoardofDirectorsStrategyandESGCommitteeESGWorkingGroupResearchesanddraftsESGstrategies,actionplansandmanagementsystems,andorganizesthepreparationofESGreportsandotherESGdisclosures;FocusesonESGrelatedrisksandissuesindailymanagement,responsibleforliaisonandcommunicationwithconsultingandratingagenciesandESGmanagementtraining;CoordinatesandpromotestheimplementationofESGrelatedmatters,submitstheinformationrequiredfordecision-making,andfullyfulfilsthedailyESGmanagementduties.Asthehighestdecision-makingauthorityforESGwork,itisresponsiblefortheCompany'sESGstrategyandreporting.ItregularlylistenstoandreviewsreportsfromtheStrategyandESGCommitteeontheESGworkprogress,andprovidesguidanceontheESGworkguidelines.InnovationPioneeringtheGreenAluminumJourneyAsglobalclimatechangebecomesincreasinglyprominentandthenational''CarbonPeakingandCarbonNeutrality''goalsmakesteadyprogress,thealuminumindustryisfacingunprecedentedchallengesingreentransformationforitsmassiveenergyconsumptionandhighcarbonemissions.Thistransformationservesasaninevitabletrendforindustrydevelopmentaswellasaprofoundresponsetoenvironmentalprotectionandsustainabledevelopment.Enterprisesintheindustryarebeingdrivenbytheerawithanurgentneedtoacceleratetechnologicalinnovationtopromoteindustrialupgradingandfacilitateprofoundtransformation.Inthistransformation,secondaryaluminum,asarepresentativeofgreenandcirculareconomy,isreceivingincreasingattention.Thecomprehensiveenergyconsumptionofsecondaryaluminumisonly5%ofthatofprimaryaluminum.Besides,thecarbonfootprintofprimaryaluminumis8.6tonsofCO2pertonofaluminum,withthatofsecondaryaluminumbeingonly0.5,whichrepresentsamere5.8%ofthegreenhousegasemissionsofprimaryaluminum.Thismeansthatforeveryadditionaltonofsecondaryaluminumutilized,onetonofprimaryaluminumproductioncanbeavoided,therebyreducing94.2%ofcarbonemissionsandyieldingsignificantsocialbenefits.Thetremendouspotentialandadvantagesofthesecondaryaluminumindustryinenergyconservationandenvironmentalprotectionarecrucialforthehealthy,stable,andlong-termdevelopmentofthealuminummarket.Asaleadingenterpriseinthealuminumalloysector,InnovationNewMaterialhasalwaysadheredtothephilosophyofgreendevelopment.TheCompanyisfullycommittedtobuildingagreenlifecycleforitsproductsandleadingtheindustryinembarkingonagreenaluminumjourneythroughdevelopinghigh-endflagshipgreenproducts,boostinginvestmentincarbonreduction,andestablishingcloseindustry-widecooperation.Developinghigh-endflagshipgreenproductsistheessentialcoreofgreendevelopment.InnovationNewMaterialperceivesinnovationasthekeytogreentransformation.TheCompanyengagesindeep''industry-academia-research''cooperation,initiatingcollaborativeeffortstotackletechnicalchallengesintheindustrywithrenowneduniversitiesandresearchinstitutionsbothdomesticallyandinternationally.Asaresult,theCompanyhassuccessfullydevelopedaseriesofhigh-performancealuminumalloyproductswithlowenergyconsumptionandemissions.Theseproductshavenotonlymetthemarketdemandforhigh-qualityaluminumalloysbutalsoeffectivelyreducedtheenergyconsumptionandcarbonemissionsduringproduction.Thelaunchofthesehigh-endflagshipgreenproductshaveenhancedtheCompany'smarketcompetitivenesswhileprovidingstrongsupportfortheindustry'stransformation.Boostinginvestmentincarbonreductionisanimportantmeanstoachievegreendevelopment.TheCompanyhasenteredthesecondaryaluminummarketandmadeproactiveinvestmentsleveragingupstreamhigh-qualityandgreenrawmaterialstoexpeditetheentryofvariousdownstreamcastingandextrusionaluminumalloyproductsintothefieldsofgreenandcleanenergy,therebybuildingagreenlifecycleforitsproducts.Onthisbasis,theCompanycontinuestoexpanditsinvestmentandconstructioninsecondaryaluminumalloyprojects,sparingnoefforttopromotethegreendevelopmentofthealuminumindustrychain.Establishingcloseindustry-widecooperationisacrucialapproachtodrivegreendevelopment.TheCompanyleveragesitsadvantagestoestablishclosepartnershipswithupstreamanddownstreamenterprises.Throughdeepcooperationwithupstreamsuppliers,theCompanyensuresthestablesupplyofhigh-quality,greenrawmaterials,providingpowerfulassurancesforgreenproduction.TheCompanyalsoactivelycollaborateswithdownstreamcustomerstojointlydevelopandpromotenewproductsthatmeetthemarket'sdemandforgreenaluminummaterials.Simultaneously,theCompanyengagesinvigorousexchangesandcooperationwithpeerenterprisestojointlypromotethegreentransformationandindustrialupgradingofthealuminumindustry.ServesasaspecializedcommitteeonESGmanagementundertheBoardofDirectors,andreportsregularlytotheBoardofDirectorsonmajorESGmatters;ResearchesandproposesESGstrategies,policiesandworkplanning,andconsidersESG-relatedmajorriskresponseprograms,ESGreportsandotherpublicdisclosureofsignificantESGinformation;OverseestheCompany'scommitmentandperformancetoaddresskeyissuessuchasclimatechangeandotherESGrelatedmatters.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReportCommunicationswithStakeholdersInnovationNewMaterialactivelycarriesoutstakeholdercommunicationsandrespondstotheexpectationsofdifferentstakeholders.ConsideringthecharacteristicsoftheCompany'sdailyoperationsandbusinessscope,wehavefullyidentifiedstakeholdersandestablishedavarietyofcommunicationmechanismstorespondtotheexpectationsanddemandsofstakeholders,tojointlybuildagoodcooperativerelationship,andtostrivetoachievewin-wincooperationandmaximizevalue.StakeholdersCommunicationchannelsExpectationsanddemandsShareholderandinvestorsShareholders'meeting,Annual/Interimreports,Corporateannouncements/Pressreleases,Fieldtrips,ResearchandquestionnaireR&D&Innovation,Productmanagement,Customerservice,Respondingtoclimatechange,CarbonemissionmanagementGovernmentandregulatorsRegularmeetingsofregulatoryauthorities,Seminars,Regularinformationreporting,Sitevisits,High-levelmeetings,PolicyadvisoryBusinessethicsandcompliance,Waterresourcemanagement,Occupationalhealthandsafety,Publicinterestinitiatives,BiodiversityconservationTheBoardofDirectorsandCorporateManagementReporting,High-levelmeeting,Sitevisit,TheBoardofDirectors,RegularquestioningESGgovernance,Productmanagement,R&D&Innovation,Businessethics&compliance,Sustainablesupplychain,Energymanagement1718StakeholdersCommunicationchannelsExpectationsanddemandsEmployeesStaffcouncil,Symposium,Employeefeedbackmailbox,Internalofficesoftware,Employeesatisfactionsurvey,Training,InternalpublicationEmployeerightsanddiversity,Professionalhealthandsafety,Talenttraininganddevelopment,CompensationandbenefitsClientsBusinesscommunication,Clientfeedback,Clientsatisfactionsurvey,SocialmediaProductmanagement,Customerservice,Circulareconomyandwastemanagement,Carbonemissionsmanagement,Respondingtoclimatechange,EnergymanagementPartnersBiddingandprocurement,Accessandevaluation,Fieldtrips,SeminarsandforumsSustainablesupplychain,Productmanagement,OccupationalhealthandsafetymanufacturingCommunityandthepublicPublicwelfareactivities,Communityactivities,Pressreleases,Socialmedia,SeminarsActionsforthepublicgood,R&D&Innovation,Respondingtoclimatechange,CarbonemissionsmanagementAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport1920MaterialityissueanalysisDuringtheyear,InnovationNewMaterialanalyzedtheCompany'sinternalandexternalsustainabledevelopmentbackgroundbasedontheCompany'scorebusinessandfuturedevelopmentplans,combinedwithfactorssuchasindustryESGrelatedpoliciesandstandards,andcapitalmarketfocus.Basedontheresultsoftheanalysis,theCompanyidentifiedatotalof18materialESGissues.InordertofullyunderstandthefeedbackfrominternalandexternalstakeholdersonthematerialityoftheCompany'sESGissues,InnovationNewMaterialconductedasurveyonthematerialityoftheissuestoeachstakeholderusingacombinationofonlinequestionnairesandofflineinterviews.Inresponsetothefeedbackfromeachstakeholder,theCompanyconductedin-depthanalysesandformedth。
2. efollowingmatrixofmaterialityissue,inordertobetterrespondtotheneedsofthestakeholders.ImpactonexternalstakeholdersImpactonInnovationNewMaterialPublicwelfareactionsBiodiversityconservationESGgovernanceInnovationNewMaterial2023MatrixofMaterialityIssuesWaterresourcesmanagementCirculareconomyandwastemanagementClimatechangeresponseCarbonemissionsmanagementResource/EnergymanagementProfessionalhealthandsafetySustainablesupplychainR&D&InnovationProductmanagementBusinessethics&complianceCompensation&BenefitsTalenttraining&developmentEmployeerightsanddiversityExhaustemissionmanagementCustomerserviceInnovationNewMaterialinFiguresEnvironmentalIssuesSocialIssuesGovernanceIssuesGreenDevelopmentLowCarbonMaterialsUseThetotalamountofelectrolyticliquidaluminumpurchasedbytheCompanyreached3.42milliontons,accountingfor76%ofthetotalrawelectrolyticaluminummaterials.TheCompanypurchased1.4406milliontonsofgreen-poweraluminumandsecondaryaluminum,accountingfor32%ofthetotalrawelectrolyticaluminummaterials,with426,700tonsofgreen-poweraluminumpurchased.SecondaryAluminumUseandDevelopmentTheCompanycomprehensivelyrecycled1.0139milliontonsofsecondaryaluminum,consistingof698,900tonsrecoveredfromexternalsourcesand315,000tonsreusedfromtheCompany'sownproductionlines.TheCompanylaunched7projectsforsecondaryaluminum,withplanstoincreasetheannualproductioncapacityofsecondaryaluminumto2.05milliontons.TheCompanyhasachieved100%maintenanceofqualitylevelfortheuseofsecondaryaluminum.TheCompanyhasparticipatedintheformulationof5nationalandindustrystandardsforsecondaryaluminum.CarbonFootprintandEnvironmentalSystemCertificationTheCompanyhasobtainedcarbonfootprintcertificationsfor19products.2subsidiarieshaveobtainednational-levelgreenfactorycertification,withanother2obtainingprovincial-levelgreenfactorycertification.Onthemunicipallevel,thereare2subsidiarieswithgreenfactorycertification.Besides,1subsidiaryhasobtainedmunicipal-levelgreensupplychainenterprisecertification.TheproportionoftheCompany'ssubsidiarieshavingobtainedISO14001environmentalmanagementsystemcertificationreaches100%.9subsidiarieshaveobtainedISO14064greenhousegasemissionsaccountingcertification.9subsidiarieshaveobtainedISO14067carbonfootprintofproductscertification.4subsidiarieshaveobtainedISO50001energymanagementsystemcertification.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReportEmploymentThetotalnumberofemployeesis10,724,theproportionoffemaleemployeesaccountsfor31.4%.Theemployeesatisfactionsurveycovers92%ofemployees,withasatisfactionrateof90%.EmployeeSafety8oftheCompany'ssubsidiarieshaveobtainedISO45001OccupationalHealthandSafetyManagementSystemcertification,withthenumberofemployeesholdingcertifiedsafetyengineerqualificationsexceeding40.Theparticipationrateforemployeesafetytrainingis100%,with100%ofparticipantscompletingthesafetyeducationandtraining.Besides,thecompletionrateforemergencydrillsis100%.Therehavebeennocasesofwork-relatedfatalaccidents,severeinjuries,oroccurrencesofoccupationaldiseases.EmployeeDevelopmentandCareIn2023,theCompanyorganizedmorethan50employeeactivitiesand40employeeskillcompetitions.In2023,98vehicleswereissuedto''loyalteams''.Atpresent,theCompanyhasatotalof2,598dormitoriesinvariousparks,ofwhich344dormitorieswillbenewlybuiltandputintousein2023.2122InnovationNewMaterialinFiguresGreenDevelopmentEnvironmentalTechnologyTransformationTheCompanyhasinvested58.9298millionyuaninenvironmentalprotection.Throughwasteheatrecoverytechnology,theCompanyhasgenerated35.64millionkWhofelectricity,saving10,800tonsofstandardcoalannually,equivalenttoreducingcarbondioxideemissionsbyapproximately28,000tonsperyear.Throughcleantechnologyupgrades,theCompanycansave1.73millioncubicmetersofnaturalgasannually,reducingcarbonemissionsbyapproximately3,700tons.LowEmissionofWasteGasesTheemissionsofparticulatematter,sulfurdioxide,andnitrogenoxidesattheCompany'soperationsitesinBinzhouarefarbelowtheShandongprovincialstandardsandnationalstandards.Theemissionconcentrationofparticulatematterandsulfurdioxidearebothlowerthanthe10%ofthenationalstandard,whilenitrogenoxideemissionsare50%lowerthanthenationalstandard.Theeffectivecollectionrateofwastegasreaches99.5%,Dustremovalefficiencyexceeded99.7%,Purificationefficiencyofoilmistandfluegasexceeds95%.TheCompanyhasobtained445patents,including44inventionpatentsand401utilitymodelpatents.In2023,theCompanyobtained110newlyauthorizedpatents,amongwhich18areinventionpatentsand92areutilitymodelpatents.100%oftheCompany‘ssubsidiarieshavingobtainedISO9001QualityManagementSystemcertification.8oftheCompany'ssubsidiarieshaveobtainedtheIATF16949AutomotiveIndustryQualityManagementSystemcertification.ProductQualityResponsibleOperationsTherewasnoincidentofviolationagainstlawsandregulationsin2023.In2023,theCompanyconducted18sessionsoftraininginlawsandregulations,withatotalof1,454attendances.Thecustomersatisfactionrateexceeded90%.In2023,theCompanyheld3suppliersymposiums,invitingatotalof35suppliers.People-centeredPhilosophyAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport032324PursuingGreenCycletoPromoteGreenDevelopmentAsoneofthelargestglobalaluminumalloymaterialsuppliers,InnovationNewMaterialiswellawarethatwebearagreaterresponsibilityinthecurrenteraofglobalclimatechangeandsustainabledevelopment.Practicallyimplementingthegreendevelopmentphilosophy,theCompanyiscommittedtobuildinganindustry-leadinggreenaluminumindustrychain.Wevigorouslydevelopgreen-poweraluminum,liquidaluminumandsecondaryaluminumindustriesfromtherawmaterialside.Wealsomakefullandefficientuseofhydroelectric,wind,photovoltaicpowerandothercleanenergysourcesduringproduction.Bydoingso,wecontinuouslyprovidelightweight,low-carbonandenvironment-friendlyaluminumalloyproductstodomesticandoverseassectorssuchasphotovoltaics,3Celectronicsandautomanufacturing,thuscontributingtothesustainabledevelopmentofthealuminumindustryandalow-carbonsociety.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherThischapterrespondstotheUNSDGsInnovationNewMaterial2023Environmental,SocialandGovernanceReportDesigningGreenandLow-carbonProductsInnovationNewMaterialiscommittedtothegreenandlow-carbondevelopmentphilosophy,andstrivestodevelopasystematicaluminumalloyindustrythatcentersoncirculareconomy,enablingthegreenandcirculardevelopmentofthewholeindustrychain.Basedontheactualprocesses,theCompanyactivelyseeksandhasrealizedthelarge-scaleuseofgreenaluminummaterials,thelow-carbonandcleanproductionandthesystematicrecyclingofaluminumalloyproducts,drivingthedevelopmentofthesecondaryaluminumindustry.InnovationNewMaterialmakesconcreteeffortstopromotetheaccountingandcertificationofproductcarbonfootprint,continuouslypromotingthe''cradle-to-gate''carbonfootprintcertification,inanefforttotrackthecarbonfootprintinthewholeproductlifecycle.Bytheendof2023,theCompanyhasobtainedtheobtainedthecarbonemissionscertificateissuedbytheChinaQualityCertificationCentre(CQC).Wehaveobtainedcarbonfootprintcertificationfor19products,including2cylindricalingotsofsecondaryaluminum.Byadoptingadvancedproductiontechnologyandenergy-savingandconsumptionreductioncontrolmeasures,combiningthehigh-qualitygreenpoweraluminumprovidedbytheupstreamofthesupplychainandtheinnovativeindustrialcooperationmodel,aswellasstrictcarbonemissionmanagement,theCompanyeffectivelyreducesthecarbonfootprintofitsproductsandprovidesmorelow-carbonproductsfortheindustrialchain.2526ApplicationareasAluminumalloyproductsCastingproductionProcurementofrawmaterialsWhilestrictlyadheringtothegreendevelopmentphilosophy,SuzhouChuangtaiAlloyMaterialsCo.,Ltd.(''SuzhouChuangtai'')putseffortsinhigh-qualityandgreendevelopmentandupholdsthephilosophyofgreen,low-carbonandcirculardevelopmentthroughouttheproductlifecycle.In2023,SuzhouChuangtaitookseveralmeasuresforenergyconservationandemissionreduction,advancingtherationalallocationandcomprehensiveutilisationofenergyandresourcesintheplant.TheCompanyintendstobuildthe''greenaluminum''industrychainthroughouttheprocessescoveringaluminumrecycling,casting,extrudingandCNCfinishingtofacilitatethenational''CarbonPeakingandCarbonNeutrality''strategies.Thisyear,SuzhouChuangtaiwassuccessfullyadmittedtothenationalgreenmanufacturinglist.Buildingthefull-process''greenaluminumindustrychain''for''CarbonPeakingandCarbonNeutrality''goalsCaseNational''greenfactory''forSuzhouChuangtaiGreenpoweraluminumNon-greenpoweraluminumElectrolyticaluminumliquidAluminumingotSecondaryaluminumUseofcleanenergyCastrollingHotrollingColdrollingForgingFoilrollingExtrudingSmelting,etc.AluminumalloyBarProfileStructuralcomponentSheetandfoilAluminumrodandcableBuildingandstructureElectronicsandpowerConsumerdurablesPackagingcontainerOthersMachineryandequipmentPV3CelectronicsLightweightautomobileEfficientuseofenergyTransportationAluminumIndustryChainWehaveobtainedcarbonfootprintcertificationfor19products,including2cylindricalingotsofsecondaryaluminum.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport2728ThemainupstreamrawmaterialsofInnovationNewMaterial'sproductsareelectrolyticliquidaluminum,aluminumingotandsecondaryaluminum.Bydevelopinggreen-poweraluminum，optimizingtheindustrialpatternandencouragingtheuseofsecondaryaluminum,andincreasingtheproportionsofgreenpoweraluminumandsecondaryaluminuminrawmaterials,theCompanyhasavoidedtheincreaseincarbonfootprintwithintheproductlifecyclewhilerawmaterialsincrease,andprovidedmorelow-carbonproductstodownstreamcustomerstoboostthetransformationoftheindustrychain.Thisyear,theCompanyused1.4406milliontonsofgreen-poweraluminumandsecondaryaluminum,comprising32%ofthetotalrawelectrolyticaluminummaterials.OptimizationofrawmaterialsstructureMeanwhile,tofurtherpromoteandreduceproductcarbonfootprints,theCompanyleveragesrenewableenergytolaunchhigh-endflagshipgreenproducts.InnovationYunnanhascapitalizedontheamplelocalhydropoweraluminumresourcesandsetcarbonfootprintobjectivesforcylindricalaluminumalloyingots:Since2021Wehaveachievedanyearlycarbonfootprintreductionof0.05kilogramsofCO2equivalentperkilogramofcylindricalaluminumalloyingots.Bytheendof2025Thecarbonfootprintforeverykilogramofcylindricalaluminumalloyingotswillhavedroppedto5.64kilogramsofCO2equivalent.Bytheendof2030Thecarbonfootprintforeverykilogramofcylindricalaluminumalloyingotswillhavedroppedto5.39kilogramsofCO2equivalent.Comprisingof32%TheCompanyused1.4406milliontons100%secondaryaluminumInnovationPrecision——Profilefor3Celectronics97%secondaryaluminumSuzhouChuangtai——CylindricalaluminumalloyingotHigh-contentsecondaryaluminumInnovationMetal——Cylindricalaluminumalloyingot100%coal-poweredaluminum21.41kilogramsofCO2equivalent40%secondaryaluminum11.52kilogramsofCO2equivalentTraditionalprocess13.9kilogramsofCO2equivalent1.74kilogramsofCO2equivalent0.76kilogramsofCO2equivalent0.79kilogramsofCO2equivalentSubstitutedwithSubstitutedwithSubstitutedwithcarbonfootprintreducedby94.3%carbonfootprintreducedby93.4%carbonfootprintreducedby91.9%AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport2930Developinggreen-poweraluminumpresenceInnovationNewMaterialhasmadepreliminaryeffortsinareassuchasInnerMongoliaandYunnantomakefulluseoflocalhydroelectric,windandphotovoltaicpowerforaluminumproduction.Inaddition,theCompanyhasestablishedin-depthcooperationwithelectrolyticaluminumsuppliersusingcleanenergytojointlyreducethecarbonemissionsthroughouttheproductlifecycle.Byutilizingthehigh-qualitygreen-poweraluminumresourcesofShandongInnovationGroupCo.,Ltd.(hereinafterreferredtoas''InnovationGroup'')inInnerMongolia,theCompanycontinuouslyincreasestheproportionofgreen-poweraluminuminitsrawmaterials,whichwillreach50%bytheendof2026.TheCompanyalsoleverageshydropoweraluminumresourcestoactivelydevelopthehydropoweraluminumindustryandsetrelevantproductioncapacitygoals.InnovationYunnanplanstoboosttheproductioncapacityofcylindricalaluminumalloybarsusinghydropoweraluminumto600,000tonsand900,000tonsbytheendof2025and2030respectively.Thisyear,theCompanypurchased425,200tonsofgreen-poweraluminum.OptimizingtheindustrialcooperationmodelInnovationNewMaterialactivelypromotesthegreentransformationandtakesfulladvantageofthealuminumindustrycluster,establishingan''InnovationModel''basedonshort-distancetransportationanddeepprocessinginvirtueofco-locationwithelectrolyticaluminumenterprises.Additionally,withaluminumingotshavingbeenreplacedwithelectrolyticliquidaluminumduringproduction,thecoagulationandcastingprocessofelectrolyticliquidaluminumisavoided,reducingcarbonemissionsinrawmaterialselection.Meanwhile,theshort-distancetransportationhassubstantiallycutthecarbonemissionsfromthetransportofelectrolyticaluminumandreducedthecarbonfootprintoftheproducts.Thisyear,theCompanypurchased3.42milliontonsofelectrolyticliquidaluminumintotal,accountingfor76%ofthetotalelectrolyticaluminum.InnovationNewMaterialalsodevelopsthealuminumindustryinYunnanandmaintainsthecooperationwithShandongWeiqiaoPioneeringGroupCo.,Ltd.Bygivingfullplaytoadvantagesofupstreamanddownstreamindustryclusters,theCompanyhasexpandedproductioncapacityandreducedthecarbonemissionsinproductionandoperationtodrivegreendevelopmentoftheindustry.Intendingittoreach50%bytheendof2026.InnovationYunnanplanstoboosttheproductioncapacityofcylindricalaluminumalloybarsusinghydropoweraluminumto600,000tonsand900,000tonsbytheendof2025and2030respectively.Thisyear,theCompanypurchased425.2thousandtonsofgreen-poweraluminum.3.42milliontonsofelectrolyticliquidaluminumintotal76%ofthetotalelectrolyticaluminum''InnovationModel'':AnexamplediagramofupstreamanddownstreamcollaborationAluminumliquidShortentheproductionchainIngotTransportationRemeltingCastingprocessingOrdinaryingotAluminumingotAluminumliquidShort-termtransportationDeepprocessingHigh-endalloyValuetechnologiesSecondaryaluminumAluminumliquidAluminumingotAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReportExpandingtheapplicationofsecondaryaluminumAsaleaderinsecondaryaluminum,InnovationNewMaterialrecoverssecondaryaluminumthroughindustrialleftovermaterialsfromdownstreamcustomersandwastefromexternalmarkets.TheCompanyhasmaintainedandadvancedthequalitylevelofthesecondaryaluminumusingadvancedindustrialproductiontechnologiesandequipment.Inaddition,throughthepersistentR&Dandapplicationoftechnologies,wehavebeenabletomanufacturerods,profilesandstructuralcomponentsinprocessessuchascasting,extrudingandfinishingwithrecoveredsecondaryaluminum,enablingthewideuseofsecondaryaluminumin3Celectronics,lightweightautomobiles,newenergyindustry,etc.toacceleratethecirculationofsecondaryaluminumandboostitseconomicvalue.Thisyear,theCompanycomprehensivelyrecycled1.0139milliontonsofsecondaryaluminum,ofwhich698,900tonswererecoveredfromexternalsources,withtherestof315,000tonsreusedfromitsownproductionlines.Additionally,secondaryaluminumaccountedfor60%ofthetotalrawmaterialsatSuzhouChuangtai.3132RecyclingmarketwasteTheCompanyhasamplesourcesofmarketwasteandactivelypromotesitsrecyclingtoefficientlyuselimitednaturalresources.Weseektorecyclemarketwastefromdownstreamcustomersandotherthirdpartiestoreplaceelectrolyticaluminumasrawmaterialsforcasting.Inaddition,weconstantlyincreaseourrecyclingefforts.TheCompanyalsostrivestomaximisetheutilizationofwasteandhasestablishedstablemarket-basedrecyclingchannelsbyacceleratingthelayoutandbuildingofdomesticrecyclingstations.Wehaveformedarecyclingteamforsecondaryaluminum,implementingapoint-to-pointrecyclingmodelinmajorrawmaterialbasessuchasShanghai,Suzhou,GuangdongandChongqing,inanefforttoenabletheaccuraterecyclingofmarketwaste.RecyclingindustrialleftovermaterialsAstheupstreamenterpriseofthevaluechain,InnovationNewMaterialhassignedstrategiccooperationagreementswithdownstreamcustomerstodefinetherolesofthepartiesinvolvedinaluminumproductrecoveryandpromoteresourcerecycling.Thisyear,intheprocurementcontractwithdownstreamcustomers,InnerMongoliaLightweightspecifiedtheproportionofsecondaryaluminumusedintherawmaterialsaswellastherequirementsfortherecyclingofindustrialleftovermaterials,inanefforttojointlycreateandexpandsecondaryaluminumchannels.Topromotesustainabledevelopment,SuzhouChuangtaiactivelypurchasedwastealuminumprofilesandscrapstoensurethatmorethan60%ofrawmaterialswereindustrialleftovermaterialsfromdownstreamcustomers,whilespecifyingthattheproportionofsecondaryaluminumusedinsomeproducttypesmustbe100%.Inthemeantime,theCompanyplanstomakerecycledmaterialsaccountfor70%ofrawmaterialsacrossalllinesby2025,withthepercentagebeing100%forsecondaryaluminumlines.SuzhouChuangtaiactivelypurchasesmarketwastetodesignsecondaryaluminumproductsCaseBytheendof2023,InnovationNewMaterialhasalsoobtainedtheSCSGlobalServicesandUnderwritersLaboratories(UL)Certificationforsomeproducttypes.TheCompanycomprehensivelyrecycled1.0139milliontonsofsecondaryaluminum,withtherestof:315,000tonsreusedfromitsownproductionlines698,900tonswererecoveredfromexternalsourcesReusingaluminumfromtheCompany'sproductionlinesInnovationNewMaterialscontinuestopromotecirculareconomyandactivelycarryouttherecyclingofwastealuminumfromitsownproducts.Forwastematerialssuchasrodheads,rodtails,scraps,andtrimmededgesgeneratedduringtheproductionprocess,theCompanyhasestablishedascientificandefficientrecyclingprocess.Throughcontinuoustechnologicalinnovationandprocessoptimization,theCompanyensuresthattheyarereusedtothemaximumextent,mitigatingenvironmentalpollution.Thisyear,theCompanyreused315,000tonsofaluminumfromitsownproductionlines.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport3332InnovationNewMaterialpromotesthegreenandlow-carbontransformationthroughvariousmeasures.Resourceefficiencyhasbeenenhancedbyactivelydevelopingsecondaryaluminumalloylines,continuouslyimprovingtheenergymanagementsystem,increasingtheproportionofcleanenergyandvigorouslyupgradingenergy-conservingtechnologies.Thisyear,9subsidiariesobtainedtheISO14064greenhousegasaccountingcertification.CarbonreductionthroughoutproductionprocessesThisyear,ShandongChuangYuanRenewableResourcesCo.,Ltd.successfullyputitsfirstproductlineofthe500,000-tonhigh-qualitysecondaryaluminumprojectintooperation.Relyingonimportedproductionequipmentwithhighefficiencyandlowenergyconsumptionaswellasotheradvancedenergy-savingtechnologies,theprojectcanrealisetheminimumconsumptionofenergyandlowestcarbonemissionsduringproduction.Theproductionprocessofcylindricalaluminumalloyingotsisfurtheroptimizedtomaximizeresourceutilizationandproductionefficiency.Advancedimportedequipmentsuchaspaintremovingfurnacesrunautomaticallyandenableultra-loworevenzeroemissions.Wastegasgeneratedduringoperationcanbeusedforwasteheatrecoveryandreusedforpowergeneration.Everyeffortismadetominimizeresourcewasteandenvironmentalpollution.Thesuccessoftheprojecthasadvancedthegreendevelopmentofthealuminumalloyindustrychain,promotingsustainabledevelopmentofthewholeindustrychainandboostingthedevelopmentofthe''hubofglobalhigh-endaluminumbases''.Promotingtheproductionofhigh-qualitysecondaryaluminumforcirculardevelopmentofthevaluechainCaseSecondaryaluminumalloyproductionlineQualitylevelmaintenanceofsecondaryaluminumTheCompanyfocusesonmaintainingthequalitylevelofsecondaryaluminumandworkswithdownstreamcustomerstoensurethestabilityandreliabilityofthefeedstock.Inaddition,weconvertthesecondaryaluminumcontainingvariousimpuritiesintothealloyedproductwithcompositionandperformancewithinspecificationsthroughstrictcontrolprocesses.Byintroducingstate-of-the-artproductionequipmentandprocessestotheproductionline,theCompanyactivelymakesproactiveeffortstorecoversecondaryaluminumandachieve100%maintenanceofqualitylevelforreuse.Withoursuperiorexpertiseinfront-endprocessesaswellascoretechnologiestopurifyhigh-qualityaluminummeltandremoveimpuritiesinsecondaryaluminum,theCompanycanupgradethequalityofsecondaryaluminumbyeffectivelycontrollingitschemicalcomposition.TheCompanyhasbeenworkingwitharenownedtechnologycompanysince2017torecoverandreusethesecondaryaluminuminaclosedloop,leadingthemaintenanceandupgradeofthequalitylevelofsecondaryaluminum.TheCompanyhasformedamaturetechnologysystemintermsofsecondaryaluminumscreening,decontamination,impurityremovalandpurification,andalloying,whichhasbeenappliedtoallproducts.Thissystemcanmaintainandevenupgradethequalityofsecondaryaluminumbykeepingconsistentproductperformance,maximizingalloyproperties,effectivelyremovingimpuritiesandensuringthepurityanduniformityamongsecondaryaluminumproducts.Currently,theCompanyhasachieved100%qualitylevelmaintenanceofsecondaryaluminumforuseandbecomeadomesticleaderinmanufacturingandutilizingsecondaryaluminum.Workingwitharenownedtechnologycompanyonthequalitylevelmaintenanceof3CelectronicsforrecyclingCase9subsidiariesobtainedtheISO14064greenhousegasaccountingcertificationandISO14067carbonfootprintofproductscertification.Currently,theCompanyhasachieved100%qualitymaintenanceofsecondaryaluminumforuse.34SecondaryaluminumalloyprojectsInnovationNewMaterialvigorouslydevelopsthesecondaryaluminumindustryandcontinuestopromotethegreendevelopmentofthealuminumindustrychainwithastrongsenseofsocialresponsibility.TheCompanyhaslaunched7secondaryaluminumprojectsintotalandplanstoboosttheannualsecondaryaluminumproductioncapacityto2.05milliontons.Atpresent,wehaveput2high-qualitysecondaryaluminumalloyprojectsintooperationwithannualproductionreaching600,000tons.TheCompanyhaslaunched7secondaryaluminumprojectsintotalandplanstoboosttheannualsecondaryaluminumproductioncapacityto2.05milliontons.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReportOptimisingtheenergystructureTheCompanycontinuestooptimizeitsenergystructuretopromotetheconstructionofnewenergyprojectsandpracticethe''dualcarbon''philosophy.TheCompanyvigorouslydevelopsphotovoltaicpowerprojectstosaveenergyandreduceemissions.Consequently,wehavereducedproductioncostsandboostedtheuseofgreenenergy,achievingeconomic,ecological,andsocialbenefits.Thisyear,theCompanyhascompletedtheinstallationandgrid-connectedpowergenerationof22.58MWofphotovoltaicequipmentinShandongProvince,whichisexpectedtoreduceapproximately13,521tonsofcarbondioxideemissionsannually.3536GreenenergytransformationInnovationNewMaterialcontributestothenational''CarbonPeakingandCarbonNeutrality''strategiesbyvigorouslypromotingthegreentransformationandstridingtowardsgreenandhigh-qualitydevelopment.Westrivetoreducetheconsumptionoftraditionalenergyinproductionandoperationonallfrontstograduallyincreasetheusageofcleanenergyandfurtherenhanceourproductionandoperationefficiency.EnergymanagementsystemTocarryoutenergymanagementsystematicallyandefficiently,theCompanyhascomprehensivelyplanned,implemented,inspectedandimprovedenergymanagement.TheCompanyscientificallymonitorsthewholeprocessofenergymanagementtoeffectivelycontrolenergyconsumptionandimproveenergyutilizationefficiency.AccordingtolawsandstandardssuchastheEnergyConservationLawofthePeople'sRepublicofChina,ISO50001EnergyManagementSystemandRB/T117-2014EnergyManagementSystemsCertificationRequirementsforNonferrousIndustry,theCompanyhastakenintoaccounttheactualdailyoperationoftheCompanytoestablishathree-levelmanagementsystemincludingtheCompany,departmentsandteams.Anenergymanagementleadershipgroupandofficehavebeenestablished,withthedeputygeneralmanagerastheteamleader.TheyareresponsibleforformulatingenergypoliciesandoperatingguidelinestoclearlydefineandcommunicatethescopeofresponsibilityandauthorityrelatedtoenergymanagementwithintheCompany.Meanwhile,theywilldevelopguidelinesandmethodstoensureeffectivecontrolandoperationoftheenergymanagementsystemandregularlyreporttheworkprogresstothetopmanagement.AttheCompanylevelAnenergymanagementteamhasbeenestablishedwithmembersfromnumerousdepartmentstocarryoutenergymanagementpolicies.Theteamisalsoaskedtoestablish,implement,maintain,andcontinuouslyimprovetheenergymanagementsysteminaccordancewithstandardsandrequirementstoplaneffectiveenergymanagementactivities.Inaddition,theteamisinchargeofmonitoringenergyperformanceandevaluatingcomplianceissuestohelpallemployeesenhancetheirawarenessofenergypoliciesandgoalsandregularlyreporttotheCompanylevel;AtthedepartmentallevelEnergymanagementspecialistsareresponsiblefordailyenergymanagementandthecontinuous,effectiveimplementationofenergymanagementwithintheenterprise.AttheteamlevelThisyear，4subsidiariesoftheCompanyhaveobtainedtheISO50001EnergyManagementSystemcertification.InnovationMetal'sdistributedphotovoltaicpowergenerationprojecthasbeensuccessfullyconnectedtothegrid.Thisyear,theFourthParkofInnovationMetal,theFirstParkofInnovationBoardMaterial,theParkofChuanghuiNewMaterial,andtheParkofYuanwangElectrotechnicshavebeenintegratedintothegrid,withatotalinstalledcapacityof22.58MW.SuzhouChuangtai'sphotovoltaicpowergenerationprojecthasbeensuccessfullyconnectedtothegrid.SuzhouChuangtaiplanstousethe120,000-square-metreroofinthefactorytoconstructa12MWphotovoltaicpowergenerationfacilitywithananuualcapacityof12millionkWh,whichcansupplyabout70%ofthefactory'sdemandforelectricity.InnovationFirstIndustrialPark'sdistributedphotovoltaicpowergenerationprojecthasbeensuccessfullyconnectedtothegrid.TheCompanyhassignedacooperationagreementwithathirdpartyfortherooftopdistributedphotovoltaicpowerstationprojectandsuccessfullyconnectedthephotovoltaicpowerstationtothegridin2023.AlltheelectricitygeneratedbytheprojectwillbesuppliedtotheCompanyforenergyconservationandemissionreduction.Thisyear,theCompanyhascompletedtheinstallationandgrid-connectedpowergenerationof22.58MWofphotovoltaicequipmentinShandongProvince,whichisexpectedtoreduceapproximately13,521tonsofcarbondioxideemissionsannually.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport3738PhotovoltaicfactoryInordertoeffectivelypromotetheCompany'slow-carbondevelopment,InnerMongoliaLightweighthasaddedrooftopphotovoltaicpowergenerationtothenewfactory'sdesignandinvestedheavilyintheconstructionofwastealuminumrecyclingproductionlines.Whileimprovingitsgreenandlow-carbondevelopment,italsocontributestothegreentransformationofthevaluechain.Carryingouttheconstructionofthephotovoltaicfactorytocreatealow-carbonsupplierimageCaseEnergyEfficiencyUpgradingTheCompanycontinuestomakeenergy-conservingtechnologicalimprovementsandupgradethetechnologyofexistingproductionequipment.Wearealsoreducingenergyconsumptiontoimproveenergyefficiencybyadoptingwasteheatrecoverytechnology.Aftertheupgradeiscompleted,theCompanywillbeabletogenerate35.64millionkWhofelectricitybyrecoveringandutilizingtheheatoffluegasandsteam,saving10,800tonsofstandardcoalannually,whichisequivalenttoreducingapproximately28,000tonsofCO2emissionsannually.Saving10,800tonsofstandardcoalannua。
3. lly,whichisequivalenttoreducingapproximately28,000tonsofCO2emissionsannually.Inordertoimprovetheefficiencyofcleanenergyuse,InnovationMetalhascarriedoutsuccessiveupgradesofcombustionfurnaces,replacingconventionalmeltingequipmentwithregenerativeheatingcombustionfurnacestoacceleratetheinternalheatingandimprovetherecoveryandutilizationrateofwasteheat.Comparedwithtraditionalfurnaces,naturalgasconsumptionhasbeenreducedbyabout42%,withtheenergyefficiencyofequipmentimproved.Bytheendof2023,theCompanyhassaved1.73millionm3ofnaturalgasannuallythroughcleantechnologyupgrades,reducingcarbonemissionsbyabout3,700tons.UsingregenerativeheatingcombustionfurnacestoreducenaturalgasconsumptionCaseRegenerativeheatingcombustionfurnaceNaturalgasconsumptionhasbeenreducedbyabout42%，saved1.73millionm3ofnaturalgas，reducingcarbonemissionsbyabout3,700tons.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport3940WasteheatturbinegeneratorInnovationNewMaterialprovideshigh-performancealuminumalloyproductsfordownstreamindustriesandactivelysupportslow-carbondevelopmentintheindustrialchain.Withtheadvantagesofaluminumalloybeinglight-weightandhigh-quality,theCompany'sproductsarewidelyusedinhigh-enddomainssuchasphotovoltaics,light-weightautomobilesand3Celectronics.Toagreatextent,theCompanyhasmettheenvironmentalandlow-carbonrequirementsofdownstreamcustomersforgreenproductsandagreenindustry.Meanwhile,theCompanyisworkingcloselywithcustomersinthedownstreamsupplychaintoexplorepossibilitiesofcarbonreduction.Wearecommittedtocooperatingwithcustomerstocarryoutgreenandlow-carbonproductionthroughouttheentireindustrialchaintocontinuouslystrengthenthegreenattributesoftheindustry.DeepeninggreenapplicationdomainsInnovationMetalchannelsthefluegasgeneratedintheproductionprocessintothewasteheatrecoveryboilerforsteamproduction.Afterstabilizingthepressureandthefluid,thefluegasisfedintoaturbinegeneratorforhigh-qualitypoweroutput,enablingthecascadeutilizationofenergy.Theprojectfullyutilizesthemediumandlow-levelwasteheatresourcesandtheheatofhigh-temperaturefluegasdischargedfromtheoriginalproductionline.Withatotalinstalledcapacityof5MW,theannualpowergenerationreaches35.64millionkWh,savingup10,781tonsofstandardcoalannually.RecoveringwasteheattogenerateelectricityandreduceenergyconsumptionCaseReaches35.64millionkWh,savingup10,781tonsofstandardcoalannually.PhotovoltaicsTheCompany'saluminumalloyproductsareusedinkeypartssuchassolarpanelframes,photovoltaicmodules,andphotovoltaicpillarsduetotheirhighdurability,lightweight,corrosionresistanceandrecyclability.Aluminumalloyiscapableofimprovingtheoverallperformanceandreliabilityofphotovoltaicequipmentandenhancingitsabilitytowithstandwindandsnowloads.Meanwhile,iteffectivelyreducestherisksofloadbearing,therebyexpandingtheapplicationscenariosofrooftopdistributedphotovoltaicswhileincreasingtheinstalledcapacityofphotovoltaics.Inaddition,aluminumalloycansignificantlyreducecarbonemissionsduringtheproductlifecyclecomparedtosteelduringtransportation.Theexcellentcorrosionresistanceofaluminumalloycanextendtheservicelifeofphotovoltaicequipment.Moreover,duetotheconvenienceofrecycling,therecoveryrateofaluminumalloyinphotovoltaicequipmentremainshighafteryearsofuse,withtheenergyconsumptionforrecyclingbeingonlyasmallportionofthatofsteel.Theseadvantagesofaluminumalloyhavepromisedavastarrayofitspotentialapplicationsinthephotovoltaicsindustry.LightweightautomobilesThealuminumalloymaterialsproducedbytheCompanyarewidelyusedinautomotivetrimparts,sunroofguiderails,automobileseats,batterytrays,etc.Theirstrengthandotherindicatorsmeettherequirementsforautomotiverigidityandperformance.Additionally,theuseofaluminumalloyhasreplacedthatofsteeltoreducetheweightofautomobiles.3CelectronicsThealuminumalloyproductsproducedbytheCompanyaremainlyusedfordecorativeparts,supportparts,shellcases,framematerials,andstructuralcomponentsforvariouscategoriesofelectronicproductssuchaslaptops,tablets,mobilephones,andwearabledevices.Theyhavebeensuppliedtomanywell-known3Celectronicbrands.Thelight-weightandhigh-strengthaluminumalloyishighlycompatiblewiththetrendofportabilityandthinnessinthedevelopmentof3Celectronics.Theapplicationofsecondaryaluminumalloyalsohelpstoreducecarbonemissionsinthelifecycleofconsumerproducts.Currently,theCompanyhasgainedrecognitionfromgloballeadingcustomersin3Celectronicsforitsadvancedmanufacturingtechnologyandexcellentperformanceofgreenandlow-carbonaluminumproducts.40AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport4142ActivelyRespondingtoClimateChangeThisyear,inordertosystematicallyanalyzetheimpactandopportunitiesofclimatechangeontheCompany'soperations,theCompanyreferredtotheRecommendationsoftheTaskForceonClimate-relatedFinancialDisclosures(TCFD)toproactivelyidentifytherisksofclimatechangeandanalyzetheabilityofourmeasurestocopewiththerisks.RisksandpotentialimpactsCopingstrategiesTransitionrisksPolicyandLegalChinahaslaunchedanationalcarbonmarket,withtherequirementsforcontrollingcarbonemissionsbecomingincreasinglystrict,whichmaycreateanimpactontheCompany'soperations,e.g.,higheroperatingcostsduetotheneedtoinvestmoreintechnologyimprovement.Internationally,barrierstocarbon-relatedtrade,suchastheEUCarbonBorderAdjustmentMechanism(CBAM),continuetoincrease.ThiswillnotonlyimpacttheCompany'sfutureexportstooverseasmarkets,butalsoaffectthecross-bordertransactionsinthedownstreamvaluechain.TheCompanywillactivelyrespondtonationalpoliciesandindustrydevelopmenttrendsbyacceleratingthegreentransformationandincreasingtheuseofcleanenergyandgreenaluminumtoreducecarbonemissions.TechnologyWithChina's''carbonpeakingby2030andcarbonneutralityby2060''goals,thecountry'scarbonemissionpolicieswillbegraduallytightened,puttingpressureontheCompanytoreducecarbonemissions.Intheshortandmediumterm,theCompanymayhavetoresorttocleantechnologiesduetocarbonreductionneeds,resultinginincreasedoperatingcosts.TheCompanywillcontinuetooptimiseenergyconservationandemissionreductionmanagement,promotingtheresearchandapplicationofaluminumrecyclingtechnology.TheCompanywillcontinuetoconductresearchincleantechnologiesandvigorouslyoptimisetheenergystructure,suchasincreasingtheusageofcleanenergy,includingphotovoltaicandwindenergy.Moreover,theCompanywillacceleratetheenergystructureadjustmentofitssubsidiaries.MarketTheCompany'sdownstreamenterprisesareplacinggreateremphasisonthelow-carbonattributesoftheirproductsandservices,thuselevatingthelow-carbonrequirementsforupstreamaluminumalloymanufacturers.Theshiftinmarketdemandisaccompaniedbytheemergenceofnewopportunities,whileproductsnotcompliantwiththegreenattributesfacetheriskofobsolescence.TheCompanyalreadyhasaproductionlineforsecondaryaluminumalloy.Inthefuture,theCompanywillgraduallyincreasetheuseofsecondaryaluminuminotherproductionlinesaswelltoenhancethegreenattributesofproductsandexpandthemarketshareoftheCompany'sgreenproducts.ReputationInconsistencybetweentheCompany'sbusinessbehaviouranditsgreenandlow-carbonphilosophymayaffectitsreputationandimage,jeopardizingitsmarketperformance.TheCompanywillestablishspecialcommunicationchannelswithstakeholders.Whenproblemsarise,theCompanywillquicklydevelopandimplementremedialsolutionswhileprovidingtimelyfeedbacktostakeholders.RisksandpotentialimpactsCopingstrategiesPhysicalrisksAcuteClimatechangehasledtoanincreaseinthefrequencyofextremeweathereventssuchasfloodsandtyphoons,whichmayresultinpoweroutages,watersupplyinterruptions,anddamagetologisticalroutes,potentiallydisruptingtheCompany'snormaloperationsandcausingfinanciallosses.TheCompanywilldevelopcontingencyplansrelatedtosupplychainprotectiontorespondtounexpectednaturalweathereventsandmeetthetransportationneeds.Besides,theCompanywillcarryoutequipmentreplacementtoimproveresilienceagainstnaturaldisasters.ChronicClimatechangeiscausingasustainedriseinglobaltemperatures,whichmayleadtochronicriskssuchasthemeltingofseaice,risingsealevels,andchangesinwaterresourcedistribution.ItmayalsoaffecttheCompany'soperatingcoststhroughincreasingthefrequencyofequipmentmaintenanceandrefrigeratingequipmentpurchases.ClimatechangeasanopportunityInnovationNewMaterialisactivelyrespondingtothedemandforgreendevelopmentinthevaluechain.Byreducingouroperationalcarbonemissionsandincreasingtheuseofgreenenergyinproductionandoperations,wearedrivingthegreenandlow-carbondevelopmentoftheentirevaluechain.ReferringtotheTCFDframework,themainclimateopportunitieswehaveidentifiedinclude:OpportunitytypeOpportunitiesandpotentialfinancialimpactsProductsandservicesInnovationNewMaterialiscommittedtohelpingthevaluechainachievegreenandlow-carbondevelopment.Weactivelypromotetheuseofgreenandcleanenergywhileupgradingproductionprocessestocreatelow-carbonproducts.Inaddition,wevigorouslypromotetheapplicationofthephilosophyofcirculareconomybysigningstrategiccooperationagreementsonaluminumrecyclingwithdownstreamcustomerstoenabletheproductionofgreenerandlighteraluminumalloyproductsandprovidesolutionsthatbettermeetlow-carbonneeds.Meanwhile,wecontributetothehigh-qualitydevelopmentofthenewenergyindustrybyprovidinghigh-qualityaluminumalloysforindustriessuchaswindpowerandphotovoltaics,toboostthejointcreationofeconomicandsocialvaluealongthevaluechain.MarketsToachievelow-carbondevelopmentgoals,countriesandregionsworldwidehaverenderedstrongsupporttogreendevelopmentinvariousindustriestoreducetheconsumptionoftraditionalenergy.Therefore,theCompanyvigorouslypromoteslow-carbontransformationbyrespondingtomarketdemandsforgreenaluminumalloysandseizingnewmarketopportunitiestocreatenewgrowthdriversforincome.ResourceefficiencyTheCompanyhascarriedoutgradualenergy-conservingtechnologicalupgradestoimprovetheenergyefficiencyofproduction,reducetheuseofresources,andscalingdowinenergyconsumption.Inthemeantime,benefitingfromtheincreaseinproductioncapacity,theCompanycanproducemorefinishedgoodswithinthesametimeframetogeneratemoreprofits.EnergysourceTheCompanyisconstructinggreenenergyfacilitiessuchasphotovoltaicandwindpowerstationsinmultipleoperatinglocations,planningtograduallyreplacetraditionalenergyusesinproductionactivities.Whilereducingourcarbonemissions,wealsohavealsomitigatedthecompliancerisksarisingfromstricteremissionpoliciesinthefuture.Inaddition,theCompanycontinuestoincreasetheusageofcleanenergysuchashydropowerinYunnanProvince.ResilienceTheCompanyactivelylaysoutthelow-carbondevelopmentofthewholeprocessofproducts,givesfullplaytotheadvantagesofindustrialcooperation,cooperateswithupstreamenterpriseswithahigherproportionofcleanenergyuse,expandstheproportionofgreenpoweraluminumrawmaterialsatsource,expandsthechannelsofsecondaryaluminum,increasestheproportionofsecondaryaluminumrawmaterials,andrealizesthereductionofcarbonatsource;andcontinuestoincreasetheinvestmentinandconstructionofsecondaryaluminumalloyprojects,expandstheproportionofsecondaryaluminumalloyproducts,andproducesmorelow-carbonproducts,soastoenhancetheabilityoftheCompanytograspthenewopportunitiesoflow-carbonmarketssuchasgreenaluminumalloysandothernewopportunitiesinthelow-carbonmarket,andenhancetheCompany'sresiliencetocopewiththeimpactofclimatechange.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport4344PracticingEnvironmentalProtectionTheCompanyalwaysadherestotheenvironmentalprotectionphilosophyof''Lucidwatersandlushmountainsareinvaluableassets''throughcontinuousimprovementofenvironmentalprotectionmanagementandpersistenteffortstoreducetheenvironmentalimpactsofproductionandoperation,includingformulatingstrictstandards,adoptingadvancedemissionreductiontechnologies,andcultivatingemployees'awarenessofenvironmentprotection.Indoingso,wehavepracticedthephilosophyofgreenandsustainabledevelopment.Thisyear,2subsidiarieshaveobtainednational-levelgreenfactorycertification,withanother2obtainingprovincial-levelgreenfactorycertification.Onthemunicipallevel,thereare2subsidiarieswithgreenfactorycertification.1subsidiaryhasalsoobtainedmunicipal-levelgreensupplychainenterprisecertification.Environmentalriskmanagement1Thefacilitiesforpollutionpreventionandcontrolinconstructionprojectsshouldbedesigned,constructed,andputintooperationsimultaneouslywiththemainproject.Thisyear,2subsidiarieshaveobtainednational-levelgreenfactorycertification,withanother2obtainingprovincial-levelgreenfactorycertification.Onthemunicipallevel,thereare2subsidiarieswithgreenfactorycertification.Besides,1subsidiaryhasobtainedmunicipal-levelgreensupplychainenterprisecertification.TheCompanystrictlycomplieswithlawsandregulationsincludingtheEnvironmentalProtectionLawofthePeople'sRepublicofChina,LawofthePeople'sRepublicofChinaonthePreventionandControlofAtmosphericPollution,LawofthePeople'sRepublicofChinaonthePreventionandControlofWaterPollution,andtheLawofthePeople'sRepublicofChinaonPreventionandControlofEnvironmentalPollutionbySolidWaste.Inaddition,theCompanyhasformulatedenvironmentalmanagementpoliciessuchastheEnvironmentalProtectionManagementPolicyandtheManagementPolicyforLegalDisclosureofEnvironmentalInformation.Inordertocarryoutrefinedenvironmentalmanagement,theCompanyhasestablishedtheSafetyandEnvironmentSupervisionDepartmentthatisresponsiblefortheoverallenvironmentalsupervision,inspectionandmanagement,thehandlingofenvironmentalprotectionproceduresforconstructionprojects,andtheimplementationofthe''threesimultaneities''1.Meanwhile,wedispatchfull-timepersonneltosuperviseandinspectthemanagementprogressofwastegas,wastewaterandsolidwasteateachsubsidiaryaccordingtotheCompany'senvironmentalpoliciesandmanagementrequirementstoscreenandrectifypotentialenvironmentalrisks.Bytheendof2023,allsubsidiariesoftheCompanyhaveobtainedtheISO14001environmentalmanagementsystemcertification,andSuzhouChuangtaiisapplyingforthecertificationofASIPSperformancestandardmanagementsystem.StrengtheningenvironmentalmanagementAllsubsidiariesoftheCompanyhaveobtainedtheISO14001environmentalmanagementsystemcertificationSuzhouChuangtaiisapplyingforthecertificationofASIPSperformancestandardmanagementsystem.Topreventandcontrolsuddenenvironmentalincidentsandrisks,theCompanyhasformulatedtheContingencyPlanforSuddenEnvironmentalIncidentsandfileditinaccordancewithlegalrequirementssuchastheManagementMeasuresfortheFilingofContingencyPlansforSuddenEnvironmentalIncidentsinEnterprisesandInstitutions(Trial).ConsideringtheCompany'scharacteristics,theCompanyhasidentifiedfactorsrelevanttoenvironmentalimpactbeforescreeningriskstorectifyhiddendangers.Werequirepersonnelresponsibleforenvironmentalprotectiontoregularlyinspecttheoperationsinworkshopsandconductinvestigationsintohiddendangerssuchashazardousmaterials,fires,atmosphericimpacts,soilenvironment,etc.Fortheexposedenvironmentalrisks,theCompanyhasestablishedstrictcontrolproceduresforrectificationofenvironmentalissues,specifyingdeadlinesforsolutionswhilerequiringallissuestobesubmittedtotheCompany'sSafetyandEnvironmentSupervisionDepartmentintheformofrectificationreportsforreview.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReportTheCompanypersistentlyusesenvironmentalprotectionequipmentwithhigherefficiencyandoptimizespoliciesandmanagementmeasurestocontinuouslyreducepollutantemissionsforscientificandeffectivewastedisposalaswellasreasonableuseofwaterresources,inanefforttomaintainecologicalbalanceandprotectthenaturalenvironment.Implementingenvironmentalprotectionmeasures46WastegastreatmentTheCompanystrictlyimplementstheIntegratedEmissionStandardforAirPollutants,theEmissionStandardforAirPollutantsfromIndustrialKilnandFurnace,andlocalemissionstandardsforairpollutants.TheCompanyhasestablishedamanagementsystemforwastegastreatmentfacilitiesandrequiresthatemissionsfromallsubsidiariesshallnotexceedrelevantnationalorlocalemissionindicators.In2023,allpollutantemissionsfromtheCompany'smanufacturingbasesmetthenationalandlocalemissionstandardsforairpollutants.AttheCompany'soperationalsiteinBinzhou,theemissionsofparticulatematter,sulfurdioxide,andnitrogenoxidesweresignificantlylowerthanboththeprovincialstandardsofShandongandthenationalstandards.Specifically,theemissionsofparticulatematterandsulfurdioxidewerebothlowerthan10%ofthenationalstandard,whilenitrogenoxideemissionswerelowerthan50%ofthenationalstandard.Theemissionsofparticulatematterandsulfurdioxidewerebothlowerthan10%ofthenationalstandard,whilenitrogenoxideemissionswerelowerthan50%ofthenationalstandard.Thisyear,theCompanyhasinvested58.9298millionyuaninenvironmentalprotection.InnovationBoardMaterialusesafull-oilreclamationandpurificationsystemtopurifyoilmistinwastegasforutilization.Thissystempurifiestheoilyfluegasinthepurificationtower,whichusesthepurifiedoilasfuel.Inthisway,theemissionconcentrationofoilyfluegasisreduced,withtheresourcesrecycled.Withthissystem,around540tonsofrollingoilcanbereclaimedeveryyear,whichpromotestheCompany'senergyconservationandemissionreductionaswellasthesustainabledevelopmentofcirculareconomy.Adoptingthefull-oilreclamationandpurificationsystemtomakefulluseofwastegasCaseFull-oilreclamationandpurificationsystemTheCompanyalsocontinuestoupgradeandrenovateenvironmentalprotectionfacilitiestoimprovetheoperatingefficiencyofenvironmentalprotectionequipment.Thisyear,theCompanyhasinvested58.9298millionyuaninenvironmentalprojectrenovation.Ourmainmeasuresinclude:InstallingandrenovatingequipmentforwastegastreatmentTheCompanyhasintroducedaregenerativelow-nitrogenburnersystemtoreducenitrogenoxidegenerationbyadjustingtheaircombustionratio,whichcanreducenitrogenoxideemissionsbyabout10tonsannually.TheCompanyhasupgraded32smeltingfurnaceswithregenerativelow-nitrogenburners,reducingtheconcentrationofnitrogenoxideemissionsbyabout20%.ConductingfuelreplacementandcollectingwastegasTheCompanyoptedfornaturalgasastheonlyfuelinthesmeltingprocesstogeneratelesswastegas.Theefficiencyoffugitivewastegascollectionhasbeenimprovedto99.5%byusinglargergashoodonthefurnacedoor,enlargingthediameterofthemainflueandincreasingtheairvolumeofthefan.Optimizingprocessesofend-stagetreatmentForwastegastreatment,high-efficiencycyclonedustcollectorandbagfiltersareusedfordustremoval,withthetreatmentefficiencyexceeding99.7%.Thenewfull-oilrecoveryandpurificationsystemisadoptedintherollingprocess,achievinganover95%purificationefficiencyofoilmistandsmoke.WastewatergovernanceTheCompanystrictlycomplieswiththeLawofthePeople'sRepublicofChinaonWaterPollutionPreventionandControlandotherlawsandregulationsaswellaslocaldischargestandardsofwastewater.Accordingtothefeaturesofproductionprocesses,theCompanyhastakenvariousmeasuresforcomplianttreatmentandrecyclingofwastewatertodischargelesswastewaterandpromotecirculareconomy.ForaluminumprofilesurfacetreatmentTheCompanyreusesallofitsnickel-containingwastewaterafternickelrecoveryforzerodischargeduringproduction.IndyeingprocessTheCompanysubjectsthewastewatergeneratedinthisprocessandfromothersourcestohigh-saltwastewatertreatmentbeforerecycling,achievinga90%recyclingrate.InmachiningprocessThereuserateofwastewaterreaches80%aftertreatment,withtheremaining20%ofconcentratedwastewaterandwastewaterofothertypeswillbedischargedinthesewagenetworkoftheParkaftercompliancewithtreatmentstandards.ForwastewaterindailyoperationsDomesticsewageistreatedbytheseptictankinthefactoryandthendischargedintothesewagenetworkofthePark.45AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport4748WaterresourcemanagementStrictlyabidingbytheWaterLawofthePeople'sRepublicofChina,theLawofthePeople'sRepublicofChinaonWaterPollutionPreventionandControlandotherlawsandregulations,theCompanycontinuestopracticerefinedmanagementofwaterresources.ThewaterusedbytheCompanymainlycomesfromthemunicipaltapwaternetwork,ofwhichthemainpurposesaredesignatedforofficeoperations,canteen'scateringandproduction.TheCompanyattachesgreatimportancetotherationaluseofwaterandpayscloseattentiontothemanagementofwaterconservation.Toenhanceemployees'awarenessofwaterconservation,theCompanyhaspostedsignssuchas''Pleasesavewater''nearwater-consumingfacilitiestoemphasizetheimportance,callingforjointeffortstoprotecttheenvironment.TheCompanytakessustainedactionstomanagewaterresources.Forexample,allrecirculatedcoolingwaterusedinproducingaluminumalloymaterialsisreusedratherthandischarged,withfreshwaterregularlyreplenished.InnovationPrecisionhasrecollectedthewaterusedinanodisingproductionfortoiletflushing,savingabout1,100tonsofwaterannually.WastemanagementTheCompanystrictlycomplieswiththeLawofthePeople'sRepublicofChinaonthePreventionandControlofEnvironmentalPollutionbySolidWaste,theStandardforPollutionControlonHazardousWasteStorageandotherlaws,regulationsaswellasnationalstandards,andreducestheamountofwastegeneratedatsourceandattheendthroughtheimprovementoftheproductionequipmentandprocesses,andtheresourcefulnessandminimizationmanagementofthesolidwastegenerated.Forhazardouswaste,westrictlyabidebytheStandardforPollutionControlonHazardousWasteStoragetobuildstandardizedstoragewarehousesforhazardouswaste.Besides,wehavemadedetailedplansandestablishedastandardizedsystemaswellasledgerforhazardouswastemanagement,regulatingtheoverallmanagementofhazardouswaste.Strivingtoachieve''zerolandfill''ofwaste,wehavelegallyentrustedexternalqualifiedthirdpartiesforhazardouswastedisposal,adheringtotheprincipleof''organizationscapableofcomprehensiveutilizationanddisposalcomefirst''.Leftovermaterialsinproductionarealsorecycledinacomprehensiveway.TheCompanyadoptsadvancedtechnologiestoscreenandrecyclealuminumash.Afterthescreeningprocess,theup-to-standardaluminumashisprocessedagain,withtheremainingscrapwasterecycledbyqualifiedthirdpartiesfortheproductionofhigh-value-addedproducts,inanefforttopromotethedevelopmentofcirculareconomyalongthevaluechain.Meanwhile,wecontinuetoupgradeequipmenttoreducehazardouswastegeneration.Thereplacementofaluminumashseparatorshasreducedthealuminumcontentinthesecondaryaluminumashtobelow5%,reducingthegenerationofbothsecondaryaluminumashandhazardouswaste.InnovationBoardMaterialusesaluminumashseparatorsbeforeusingballmillingscreenersforaluminumashextraction,improvingtherecyclingefficiencyofaluminumash.Thisyear,InnovationBoardMaterialrecycledmorethan8,000tonsofaluminumblocks(includinggranular),reducingthegenerationofsolidwastewhilepromotingwasterecycling.AcceleratingtechnologyupgradestoimproverecyclingefficiencyCaseTheCompanycollectsthegeneralsolidwasteanddomesticwasteatfixedsitesasrequired.Wastewithrecoveryvaluewillundergothecomprehensiverecyclingprocess,withtheresthandedovertoaqualifiedthirdpartyforregulardisposal.In2023,InnovationBoardMaterialrecycledaround3,000wastewoodenpalletsthroughouttheyear.OptimisingthealkalinewashingprocesstoreducewastewaterdischargeCaseAlkalinewashingdeviceandprocessToimprovewastewaterutilization,InnovationPrecisionusesadvancedalkalirecoverytechnologytorecyclealkaliinthewastewatergeneratedfrommoldcleaning.Byadoptingmulti-processchemicalandphysicalprocesses,InnovationPrecisionrecycles90%ofalkali-containingwastewaterfromthecleaningprocess.Theseprocessesalsoreducetheuseofapproximately200tonsofalkalitabletsand90%ofsodiumhydroxide,therebyachievingthereuseandconservationofwaterandotherresources.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport044950Green-drivenInnovationandProduct-ledDevelopmentIntoday'sever-changingandchallengingera,InnovationNewMaterialadherestothespiritofingenuity,andstayscommittedtodevelopmentdrivenbybothtechnologicalinnovationandqualitymanagement.WesparenoeffortstoacceleratetheconstructionofR&Dplatforms,overcomedifficultiesinprocesstechnologies,andactivelyparticipateintheformulationofindustrystandards,toshapeahealthierandmoresustainableindustryecosystem.Besidescultivatingtechnicalelitesandpromotingsmarttransitionofproductiontoenhanceourowntechnicalstrengths,wealsocontributetothesustainabledevelopmentoftheentireindustry.Furthermore,duetostrictcontrolofproductqualityandconstantoptimizationofcustomerservice,wehavewonthetrustofourcustomers,andlaidasolidfoundationforcommondevelopmentoftheindustry.ThischapterrespondstotheUNSDGsAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport5152DivingDeepintoTechnologicalInnovationPursuingthemissionof''innovationmakesthefuture'',theCompanyhasformulatedsupportingpoliciesandbuiltinnovationplatformstoboostindependentinnovationdevelopment.WealsopromotepatentR&D,participateinthestandardformulation,andfosterinnovativetalents,toenhanceourabilitiestoinnovateproductiontechnologiesandtransformresults,whichstronglybolstersthedevelopmentoftheCompanyandtheindustrialchain.In2023,theCompanyhad110newlyauthorizedpatents,including18inventionpatents,and92utilitymodelpatents.Bytheendof2023,wehadobtained445patentsintotal,including44inventionpatents,and401utilitymodelpatents.InnovationMetal'sinventionpatent-''aprocessforproducingelectronicaluminumalloysbyusingsecondaryaluminum''wonthefirstprizeof2023BinzhouPatentAward.InnovationPrecision'sinventionpatent-''amethodfortestingcoarsecrystallayerofaluminumalloy''wonthesecondprizeof2023BinzhouPatentAward.TheCompanyrecognizestheimportanceofbuildingasolidscientificresearchfoundation.Inthisregard,theCompanystrivestopromoteclose''industry-university-research''cooperationbyconstructingresearchinstitutes,studios,practicebases,etc.,soastoenhancetheR&DstrengthsoftheCompanyandtheindustry.Bytheendof2023,wehadestablishedvariousplatformssuchasthe''InnovationAlloyResearchInstitute'',the''AcademicianWorkstationofShandongProvince'',New-typeR&DInstitutionofShandongProvince,the''PostdoctoralResearchPracticeBaseofShandongProvince'',the''EnterpriseTechnologyCentreofShandongProvince'',the''ShandongEngineeringResearchCentreforNewAluminumAlloyMaterialswithUltraStrengthandHighToughness''andthe''ModelWorkerInnovationStudio''.Indoingso,weexertourselvesinR&D,topromotethetransformationofR&Dachievements.AcceleratingtheconstructionofR&DplatformsKeyaspectsofInnovationNewMaterial'stechnologyR&DTheCompanyhas110newlyauthorizedpatents,including18inventionpatents,and92utilitymodelpatents.Wehaveobtained445patentsintotal,including44inventionpatents,and401utilitymodelpatents.PromotingsmarttransitionofproductionFocusingonkeyR&DprojectsParticipatinginindustrystandardsformulationFosteringindustrytechnicaltalentsAcceleratingtheconstructionofR&DplatformsThisyear,the''ShandongEngineeringResearchCentreforNewAluminumAlloyMaterialswithUltraStrengthandHighToughness''jointlybuiltandoperatedbytheCompanyandCentralSouthUniversitywasapprovedbytheShandongDevelopmentandReformCommission.Focusingonthemajorstrategicneedsofthecountry,theResearchCentreisdevotedtoovercomingthecommontechnicalproblemsthatneedtobeaddressedinthealuminumprocessingindustry,consideringthetechnologicaldevelopmentoftheindustry.Theseproblemsincludeproducinghigh-endaluminumalloyproductswithsecondaryaluminum,removingdamagingelementsinthemelt,controllingimpurityelements,castingwithhomogenizedstructure,andtheheattreatmenttechnologywithmulti-scaleandmicrostructurecoordinatedcontrolofcomprehensiveperformance.Bytacklingthesedifficulties,theCentreaimstoboostgreenandcirculareconomyinrecyclingaluminum.Promotingindustry-university-researchcooperati。
4. ontotackledifficultiesoftheindustrytechnologiesCaseShandongEngineeringResearchCentreforNewAluminumAlloyMaterialswithUltraStrengthandHighToughnessAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReportTheCompanyconstantlyworksonthehigh-endtechnologyR&D,andparticipatesintheresearchoflocalandnationalkeyscienceandtechnologyprojects,receivinghighrecognitionfromtheindustrypeers.In2023,InnovationMetalandInnovationPrecisionwereselectedintothe''CultivationListofShandongNewMaterialLeadingEnterprises''.Tobespecific,InnovationMetalwashonoredas''TheMostInnovativeEnterprisein2022''byAll-ChinaFederationofIndustryandCommerce,andits''R&Dandapplicationmanagementteamofthekeytechnologyinhigh-endaluminum''wonthehonorof''2023BinzhouMostBeautifulScienceandTechnologyInnovationTeam''.InnovationPrecisionwascertifiedasShandong''OneEnterprise,OneTechnology''R&DCentre,andBinzhouIndustrialDesignCentre.Itsproject-''lightweightalloymaterialapplicationinrailtransitwithanannualoutputof100thousandtons''wasselectedastheShandongNewMaterialInnovationandApplicationDemonstrationProject.FocusingonkeyR&Dprojects5354Thisyear,InnovationPrecision'sproject-''lightweightalloymaterialapplicationinrailtransitwithanannualoutputof100thousandtons''wasshortlistedforShandongNewMaterialInnovationandApplicationDemonstrationProjects.Asa''ShandongNewMaterialLeadingEnterprise'',InnovationPrecisionwilltaketheopportunityofbeingshortlistedforShandongNewMaterialInnovationandApplicationDemonstrationProjectstofurtherreplaceoldgrowthdriverswithnewones.Bydeepening''industry-university-research''cooperation,InnovationPrecisionenhancestheR&Dstrength,andmakesgreatercontributionstothenewmaterialindustryofShandongProvince.DemonstrationprojectsforcommondevelopmentoftheindustryCaseIn2023,InnovationMetalledacademicinstitutionsandthird-partyprofessionalcompaniesincarryingouttheproject''R&Dofcompletesetoftechnologyformanufacturinghigh-qualitysecondaryaluminumalloy''.Theprojectwasfundedby2023ShandongProvincialKeyResearchandDevelopmentProgram(MajorScientificandTechnologicalInnovationProject).Toeffectivelyhelptheindustrytoachievethegoalofcarbonpeakandcarbonneutrality,theprojectfocusesonsolvingkeyneedsinthedevelopmentandengineeringapplicationofthesecondaryaluminumindustry.Theprojectcoverstheefficientseparationofsecondaryaluminum,impurityremoval,melttreatment,refinementandtougheningofanti-poisoningseed,smeltingandcasting,intelligentproductionandtypicalapplicationdemonstration.Meanwhile,basedonthe''industry-university-research''cooperationmodel,theprojectiscommittedtobuildingasounddevelopmentandindustrialapplicationsystemofcompletesetoftechnologyforhigh-qualitysecondaryaluminumalloymanufacturing.SupportingtheR&DofkeyprojectstofosterindustryleaderCaseTheCompanyplaysanactiveroleintheformulationofindustrytechnicalstandards,tappingintothestandardizeddevelopmentinkeyandhotareas,suchashigh-endalloymanufacturing,secondaryaluminummanufacturing,andgreenmanufacturing.So,weactivelyparticipateintheformulationandrevisionofanumberofnational,industryandgroupstandards,topromotethehigh-qualitydevelopmentofindustrytechnologies.In2023,theCompanyparticipatedintheformulationandrevisionofstandardsrelatedtosecondaryaluminum,aluminumscrap,environmentalindicatorsandenergyconsumptionindicatorsforthealuminumindustry,qualitymeasurementandotheraspects.TheCompanyparticipatedintherevisionof2nationalstandards,namely,theRecyclingMaterialforCastAluminumAlloysandtheAluminumandAluminumAlloyTermsandDefinitions—Part4:AluminumScrap,thelatterofwhichwasapprovedasShandongOriginalTechnicalStandardProject.Wealsoparticipatedintherevisionof3groupstandards;thestandardthattheCompanyledinthecompilationwonthefirstprizeoftheExcellenceAwardforTechnicalStandardsawardedbytheNationalNonferrousMetalsStandardizationTechnicalCommittee,andthestandardthattheCompanyparticipatedinthecompilationwonthesecondprizeoftheExcellenceAwardforTechnicalStandards.ParticipatinginindustrystandardsformulationTheCompanyparticipatedintherevisionof2nationalstandards,Wealsoparticipatedintherevisionof3groupstandards.In2023,theCodeforControlofWastewater,WasteGasandScrapWastefromAluminumandAluminumAlloyMeltingandCastingledandpreparedbyInnovationMetalandSuzhouChuangtaiAlloyMaterialsCo.,Ltd.wonthefirstprizeoftheExcellenceAwardforTechnicalStandardsawardedbytheNationalNonferrousMetalsStandardizationTechnicalCommittee.InnovationMetalparticipatedinpreparingtheAluminumAlloyIngotsforAviationProducts,whichwonthesecondprizeoftheExcellenceAwardforTechnicalStandardsawardedbytheNationalNonferrousMetalsStandardizationTechnicalCommittee.TheawardsnotonlydemonstratetheCompany'scrucialcontributionstothenationalnonferrousmetalstandardization,butalsoshowfullrecognitionoftheCompany'seffortsinpromotinghigh-qualitydevelopmentoftheindustry.Participatinginpreparingtechnicalstandardstoleadthehigh-enddevelopmentoftheindustryCaseThefirstandsecondprizeoftheExcellenceAwardforTechnicalStandardsawardedbytheNationalNonferrousMetalsStandardisationTechnicalCommitteelightweightalloymaterialapplicationinrailtransitAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport5556FosteringindustrytechnicaltalentsPursuing''abeautifulfuturethroughinnovation'',theCompanyputsemphasisoncultivatingtechnologicalinnovationtalentsthatcancontributetotheprogressoftheCompanyandtheindustry.Tofurtherstrengthenthetrainingofinnovativetalents,theCompanyhasformulatedtheEnterpriseAdministrativePolicyforAllStaffInnovation.Wealsocarryoutmulti-dimensionaltalenttrainingprograms,andholdlaborcompetitionforexcellence,tostimulateemployeestobringouttheirinnovationabilities.Additionally,diversifiedinnovationactivitiesareorganizedtoadvocateinnovationcultureamongallemployees.InJuly2023,ShandongChuanghuiNewMaterialTechnologyCo.,Ltd.heldarecognitionmeetingfor''outstandingworkers''incableworkshop,atwhich6awardswerepresentedbythegeneralmanager.Inthisactivity,theCompany'sCableDepartmentlearntfrombenchmarkingenterprises,andadoptedaseriesofreformmeasuressuchas''fixedstaff,fixedpost,andfixedvalue''forthewiredrawingequipmentoftheworkshop,whichgreatlyimprovedtheworkshopcapacity.Fromthestudyactivity,employeeswereinspiredtofullyimplementtheproductionconceptof''reducingcostandincreasingefficiencywithoutstandingquality'',topromoteinnovationandmakebreakthroughs.Holdingarecognitionmeetingfor''outstandingworkers''tomobiliseinnovationenthusiasmCaseRecognitionmeetingfor''outstandingworkers''Thisyear,toencourageallemployeestoinnovate,InnovationPrecisionheldthe''InnovationandBreakthrough''improvementproposalcollectionactivity,with1,325participants,and698proposalsobtained.Attherecognitionmeeting,812employeesof425caseswererewardedwithRMB61.1thousandofincentivemoneyintotal.Besides,themanagementofInnovationPrecisionencouragedemployeestoactivelyparticipateinthe''innovationandbreakthrough''activity,andputtheimprovementsuggestionsandprogramsintopracticetoimproveworkefficiency.Inaddition,thegeneralmanagerofInnovationPrecisioncalledonemployeesto''review''theproposedimprovementcases,soastoachievepersistence,continuouspromotionandmaximumbenefit.Employeeswerealsoencouragedtocontinuetoputforwardmoreexcellentimprovementsuggestions.Collecting''innovationandbreakthrough''proposalstofosteraninnovationatmosphereCaseRecognitionmeetingforthe''innovationandbreakthrough''proposalcollectionactivityThisyear,InnovationPrecisionintroducedtheMOMsystemtorealizestandardizedoperationalprocesses,transparentmanagementandreal-timedataanalytics.Thesystemcontainsfivemodules,namely,planningandscheduling,productionmanagement,intelligentequipment,intelligentenergymanagementandintelligentcarbonmanagement.Bylinkingandcombiningtheinformation,thesystemenableseachmanagementunittoidentifyandsolveproblemsinatimelymanneronthesameplatformandinthesamedimension,effectivelyimprovingtheefficiencyofproblemsolving.TheadoptionoftheMOMsystemwillsteadilypromoteInnovationPrecision'sdigitaltransformationandupgrading,realizingpaperlessandautomatedoffice,aswellasreal-timemonitoringandrefinedmanagementofproductionandoperations,andeffectivelysupportsitsscaledevelopment.TheMOMsystemwasadoptedforarefinedoperationmanagementCaseToensurecontinuousqualityimprovement,theCompanyintroducedtheworld-leadingautomatedcastingsystem.Additionally,themostadvancedhardwarewasequippedtooptimizethespecialsoftwareusedindirectchillcasting,creatinga''one-stop''solutionforintelligentmanufacturing.Thissystemprovidednecessarytoolsandhistoricaldatafortheproductionandmanufactureofsomeproducts,andhelpedtoimproveproductquality.Moreover,theCompanyintroducedanewelectromagneticmulti-layerfiltrationsystemtofiltertheliquidaluminumbyelectromagneticforce,performsreal-timesummaryandanalysisofmeasurementdatathroughautomatedsampleloadingandautomatedsamplemeasurement,toachievecomprehensivemonitoringandprecisecontrolofproductquality.AutomatedcastingsystemswereintroducedtocreatearefinedproductionprocessCaseTocreateafirst-class''excellentoperation+intelligentmanufacturing''benchmarkfactory,theCompanyiscommittedtointegratingscienceandtechnologyapplicationintoproductionandoperation,toimprovetheproductionandoperationefficiency,andlaythefoundationforrapidandhigh-qualitydevelopment.In2023,wecarriedoutdigitalreformofproductionprocesses.Specifically,wehavelaunchedthereal-timetrackingsystemofsecondaryaluminumandtheQRcodemanagementsystemtoensurethetraceabilityofproducts,whichrealizedthevisualization,standardizationanddataficationinproduction.Inaddition,wedevelopedaproductionmanagementsystemwithathird-partydeveloper,theManufacturingOperationManagement(MOM)platform.Wealsointroducedanonlineenergyconsumptiondatacollectionsystem,toapplythedigitalconceptintotheentireprocessofourproductionandoperation.In2023,thankstothepotentialofindustrialdataresourcesandthenewdata-drivenmanufacturingmodel,InnovationPrecisionwasaccreditedinthefirstbatchof''MorningStarFactories''forthedigitaleconomyinShandongProvince.Meanwhile,InnovationPrecisionwasincludedinthesecondbatchofpilotenterprisescertificatedbyDataManagementCapabilityMaturityAssessmentModel(DCMM)inShandongProvincein2023.ThishonorprovidesareferenceforInnovationPrecisiontoenhanceitsdatamanagementcapabilitiesintermsofdatastandards,datagovernanceanddataquality,therebypromotingitsdigital,networkingandintelligenttransformationandupgrading.PromotingsmarttransitionofproductionAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport58StrivingforExcellentQualityTheCompanyfirmlybelievesthatqualityproductsarethekeyfactortowincustomers'trustandcompetitivenessinthemarket.Adheringtothequalitymanagementconceptof''customerorientation,fullparticipation,andcontinuousimprovement'',weadoptthequalityapproachofputtingqualityfirst,seekingcontinuousimprovement,complyingwiththelawandservingcustomers.Inthisway,weaimtooptimizethequalitymanagementsystemonacontinuousbasis.Inaddition,wehaveformulatedstrictproductqualityrequirementsthatareintegratedintotheentireproductionprocesstoprovidehigh-qualityproducts.In2023,theCompanywontheShandongProvincialQualityBenchmarkingAwardandwasnominatedfortheShandongProvincialGovernorQualityAward.Tocontinuouslystrengthenqualitymanagement,theCompanyhasformulatedinternalproceduresforqualitymanagementandestablishedatwo-tiermanagementstructurewithaQualityManagementCentreandQualityManagementDepartmentofsubsidiariestoeffectivelyreportandpresentqualitymanagementrequirements.Meanwhile,theCompanyhasclarifiedthequalitymanagementrequirementsforeachposition,toimplementqualitymanagementmeasures.QualitymanagementsystemQualityManagementCentreCoordinatestheCompany'squalitymanagement,formulatesqualitymanagementpolicy,andsupervisesthequalitymanagementperformanceofbusinessunits.QualityManagementDepartmentofSubsidiariesCommunicateandimplementqualitymanagementinallaspects,includingqualitycontrol,qualityimprovementandqualityassurance.QualityManagementPositionsIncludefourstages:qualitycontrol,qualityengineering,documentcontrolcentreandqualityassurance;ensuretheimplementationofqualitymanagementmeasuresatallstages;implementthequalityplanningdevelopedbytheCompany;participateinqualityperformanceassessmentandtraining;accomplishqualitymanagementobjectives.Bytheendof2023,theCompanyanditssubsidiarieshaveobtainedtheISO9001QualityManagementSystemCertification.Specifically,8subsidiarieshaveobtainedtheIATF16949AutomotiveIndustryQualityManagementSystemCertification.57TheCompanyanditssubsidiarieshadeachobtainedISO9001QualityManagementSystemCertification.8oftheCompany'ssubsidiarieshaveobtainedtheIATF16949AutomotiveIndustryQualityManagementSystemcertification.TheCompanyfocusesonthewholeprocessofqualitymanagement,fromrawmaterialsprocurementtosupplierclassificationmanagement,fromproductqualityplanningtothequalitycontrolofthemanufacturingprocess,fromthequalityinspectionanddeliveryandthepost-deliveryservicequality,eachstageoftheprocessisfullyintegratedwiththeconceptofthePDCA2qualitymanagementcycletoachieveacomprehensiveprocessoffinequalitycontrol.Inordertopromotestandardizedmanagement,wehaveformulatedaseriesofoperationstandards,includingincominginspectionoperationstandards,processinspectionoperationstandardsandshippinginspectionoperationstandards,aimingtoensurethatthereareclearqualitycontrolstandardsandoperationnormsforeachstageoftheprocessfromrawmaterialwarehousingtoproductshipment,avoidingthegenerationandoutflowofsubstandardproducts,andimprovingthestabilityandreliabilityofproductquality.Full-processqualitycontrolInordertodeepentheleanmanagementofquality,wecontinuetointroduceadvancedqualitymanagementmethods,includingthecreationofa''lean''qualityculture,theestablishmentofatechnicalresearchgroup,thedevelopmentofqualitycontrolteamactivities,digitalsystemanalysis,etc.,tocontinuouslyimprovethequalitymanagementprocess,andprovidecustomerswithhigh-qualityproducts.Inaddition,wehaveestablishedahighlyefficientqualityissuehandlingprocesstoensureaquickresponseandeffectivelypreventrecurrenceofsimilarissues.Oncewereceiveaqualitycomplaint,weimmediatelyidentifythecauseandspecifytheresponsibledepartmenttodealwiththecustomer'sprobleminatimelymanner.Subsequently,throughtheestablishmentofaqualityfeedbackcommunicationgroupandthereleaseofmonthlyqualityreports,weworkwithalldepartmentstoimproveandpreventtherecurrenceofproblems,soastorealizeavirtuouscycleofqualitymanagement.IncomingqualityinspectionClarifytherequirementsforqualitymeasurementtools,inspectionequipment,inspectionstandardsandinspectionmethods,standardizetheproceduresfordealingwithanomalies,andemphasizetheresponsibilitiesofrelevantinspectionpersonnel,soastoimprovetheaccuracy,standardizationandconsistencyofinspection.In-processqualityinspectionEmphasizethecontinuousqualitycontrolintheproductionprocess,includingtheinspectionrequirementsforthefirstbatchoffinishedproductsandthesamplingrequirementsforeachproductionprocess;emphasizewhethertheinspectionoftheappearanceandperformanceoffinishedproductsmeetscustomerrequirements;clarifytheinspectiontoolsandequipment,andthemannerinwhichtheresultsarerecordedandreported.Detailedinstructionsarealsoprovidedfordealingwithnonconformingproducts.Out-goingqualityinspectionClarifytheitems,inspectionandoperationmethodsandjudgementstandardsaccordingtoproductstandards,customerrequirements,qualityplansandotherinformation;clarifytheresponseprocessforabnormalitiesfoundintheout-goingqualityinspection,includingtheidentification,isolation,disposalandreportingofnonconformingproducts,toavoidpotentialnonconformingproductsfromenteringthemarket.2ThePDCAcycleisafour-stepmodelforqualitymanagement,namelyPlan,Do,CheckandAct.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport5960HazardoussubstancecontrolToprovidehighqualityproducts,wecontinuouslyassesspotentialhealthandsafetyrisksduringproductionanduseofourproductsinaccordancewithlegalandregulatoryrequirementsaswellastherequirementsofourcustomers.Thescopeofassessmentcoversrawmaterialinspection,in-processqualityinspection,finishedproductinspection,andby-productinspectionduringtheproduction.5subsidiariesoftheCompanyhavepassedtheQC080000HazardousSubstanceProcessManagementSystemCertification.QualitycultureconstructionTheCompanycontinuestostrengthentheconstructionofqualityculture,andorganisesavarietyofactivitiestoraiseemployees'qualityawareness.In2023,weactivelycarriedoutactivitiessuchas''QualityMonth''and''QualityChampionCompetition''toenhanceemployees'understandingofqualitymanagementthroughouttheproductlifecycle.TheCompanyholdsmonthlyorquarterlyqualityanalysismeetingstosummarisethequalityperformanceandoptimisethequalityandcoststructure,andformulatesqualitytargetsandimprovementplans.Specifically,theCompanyhadsetupatechnicalresearchgroupdedicatedtosolvingtechnicalproblemsinproduction,inspectionandinternalandexternaldefects.Inaddition,theCompanyencouragestheQCgrouptomaketechnicalinnovationsinprocedures,energyconsumptionandprocess,andactivelycallsforallemployeestoputforwardvaluablesuggestionstoimprovedesignquality.Withthesemeasures,wenotonlysignificantlyimprovedthequalityofourproducts,butalsoeffectivelyreducedproductioncosts.StrengtheningqualityimprovementandpromotingtechnologicalinnovationCaseRawmaterialtestingToensurethatthecontentofhazardoussubstancesinrawmaterialsislowerthanthestandardamount,weinviteprofessionalthirdpartiestoconductRoHStestingonrelevantsuppliers.,amongwhichthequalifiedonescanbeenrolled;ManufacturingprocessmonitoringTominimisesafetyhazardsduringthemanufacturingprocess,wemonitorkeyparameterstoensureareliableandstableproductionprocess;FinishedproductinspectionToensurethesafetyoffinishedproducts,wecarryoutcomprehensivequalitytestsattheinspectionstagetoensurethattheproductsmeetthestandards.ProvidingQualityServicesAdheringtothebusinessphilosophythat''customersatisfactionisthekeydrivingforceforawiderpresence'',theCompanycontinuouslyimprovestheservicequalityandactivelyrespondstocustomerneeds,therebycontinuouslyincreasingcustomersatisfaction.Wehavedevelopedacustomerrelationshipmanagementframeworkinmodulesaccordingtobusinesscharacteristicsandprocesses,coveringfourareasofsalesassistant,fieldsalesassistant,on-siteoperationsandsecondaryaluminumrecovery,toprovidecomprehensivequalityservices.Meanwhile,theCompanyprovidescustomerswithavarietyoffeedbackandcomplaintchannels,includinge-mail,WeChat,fax,telephoneandon-sitemeetings.ThesechannelsenabletheCompanytolistentocustomers'demandsandprovideexcellentservicestocustomers.CustomercomplaintmanagementprocessTheCompanyhasformulatedCustomerFeedbackProcessControlProcedurestostandardisethecustomercomplaintmanagementprocess.Theproceduresprovidedetailedrulesontheprocessandtimeframeforhandlingcustomercomplaintstoensureatimelyandproperresolutionofeachcustomercomplaint.CustomerSatisfactionSurveyMeanwhile,theCompanylistenstothecustomers.Atleastonceayear,theCompanyconductssatisfactionsurveysforallcustomersthroughonlinequestionnairesandofflinevisits.Thesesurveyscoverfouraspectsofproductquality,service,deliveryandhazardousmaterialcontrol,aswellasproductappearance,serviceattitude,packagingandlabelling.TheCompanythencollects,collatesandanalysesthefeedbackdatatoproduceproductandserviceimprovementsuggestionsandresultsreports,whicharepresentedtomanagementasabasisformanagementimprovement.In2023,theCompanyconductedseveralcustomersatisfactionsurveys,andreceivedasatisfactionrateofmorethan90%.TheCompanyconductedseveralcustomersatisfactionsurveys,andreceivedasatisfactionrateofmorethan90%.TheQualityManagementDepartmentorganisesaqualityreviewmeetingwithin48hoursandanalysesthecausewiththerelevantresponsibledepartments,whoformulatecorrectiveandpreventivemeasuresinaccordancewiththeProcessControlProceduresforImprovement,CorrectiveandPreventiveActions,theProcessControlProceduresforNonconformingProductsandotherdocuments.Theresponsibledepartmentsimplementtheabovemeasuresasplannedwithin72hours.TheQualityManagementDepartmentrespondstocustomersbyissuingthe8Dreport(i.e.,aproblemsolvingmethodcommonlyusedbyengineersorotherprofessionals)orbysendingcontactletters,andmonitorstheabnormalclosureofcustomercomplaints.TheMarketingDepartmentreceivesandrespondstothecomplaintwithin24hoursafterithappened,andforwardsthecomplainttotheQualityManagementDepartmentandrelevantresponsibledepartments.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport056162PracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentFacedwithanincreasinglycomplexbusinessenvironment,InnovationNewMaterialcontinuestostrengthenitsriskpreventionandcontrolcapabilitiestoensuresoundbusinessoperations.Meanwhile,theCompanyabidesbybusinessethics,strengthenspatentandbrandprotectionandenhancesinformationsecurityandprivacymanagement,tobuildaresponsiblecorporateimageinacontinuousmanner.TheCompanyalsomakessustainedeffortstopromotethecommondevelopmentoftheindustry.Bystrengtheningsuppliermanagement,theCompanystrivestocreateasustainableecosystemwithsuppliers.ThischapterrespondstotheUNSDGsAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport6364TheCompanyactivelystrengthensriskmanagement,andkeepsstrictcompliancewithrelevantlawsandregulations.Inaddition,wehaveformulatedinternalriskmanagementpoliciestopreventandcontrolpotentialrisksandsafeguardthesoundoperationoftheCompany.Tothisend,theCompanyhasestablishedthreelinesofdefence:Thefinancedepartment,legaldepartmentandarchiveofficeactasthesecondlineofdefense,monitorandinspecttheexecutionsituationofthefirstline,ensuringthecompletecontrolofrisks.ThesecondlineofdefenseFrontlineemployeesserveasthefirstlineofdefense,responsiblefordailyinternalcontrol,assessrisksandtakecontrolmatters,andreporttothemanagementwhennecessary.ThefirstlineofdefenseTheinternalauditdepartmentactsasthethirdlineofdefense,responsiblefortheinternalauditandriskmanagementreview,ensuringtherigoroftheCompany'sinternalriskcontrols.ThethirdlineofdefenseMeanwhile,toensureeffectiveriskmanagement,theCompanyhasestablishedariskmanagementsystemcoordinatedbytheCompany'sheadofficetomonitorandevaluatetheriskmanagementperformanceofallinternalorganisationsandsubsidiaries.Aftertheriskassessment,theAuditDepartmentattheheadofficewillsummarizetheassessmentresultsandrectificationsuggestionsinatimelymannerandreporttotheAuditCommittee.Meanwhile,outstandingissuesandcorrespondingactionswillbefollowedupandimplementedinatimelymanner,formingaclosed-loopriskmanagementsystem.StrengtheningBusinessEthicsConstructionTheCompanyfirmlybelievesthatbusinessethicsarethecornerstoneofsoundbusinessoperationsandsustainabledevelopment.WestrictlycomplywiththeCompanyLawofthePeople'sRepublicofChina,theAnti-UnfairCompetitionLawofthePeople'sRepublicofChina,theAnti-monopolyLawofthePeople'sRepublicofChina,theAnti-MoneyLaunderingLawofthePeople'sRepublicofChinaandotherrelevantnationallawsandregulations.Indoingso,wehaveformulatedpoliciessuchastheCodeofBusinessConduct,theManagementControlProceduresforAnti-ForeignBriberyandAnti-Corruption,theManagementControlProceduresforProhibitionofAcceptingBribesorUsingOtherMeanstoObtainImproperAdvantagesandtheControlProceduresfortheRegulationofEthicalStandardstoeffectivelyregulatetheoperationsoftheCompanyandtheemployees'codeofconduct.In2023,theCompanyhadnoviolationsofcorruption,moneylaundering,unfaircompetition,bribery,extortion,andfraudthatwouldhaveasignificantimpact.TheCompanyattachesgreatimportancetocorporateanti-corruptionandintegrity.Wehaveestablishedacomprehensivereviewsystemforviolationsoflawsandregulations,setsuptheEconomicOversightandInspectionDepartmenttotakeresponsibilitiesininvestigatingillegalanddisciplinaryincidents,analyzingtheresultsofinvestigationsandproposingcountermeasurestopreventrisksofbusinessethics.Toensurefairoversight,weprovideemployees,suppliersandotherstakeholderswithopenreportingchannelssuchasemailandtelephone.Meanwhile,theCompanyhasestablishedstrictrequirementstoprotectthewhistleblowerprivacyandmanagethereportinginformationtoensurethatwhistleblowerscaneffectivelyexercisetheirlegitimaterights.Tostrengthentheintegrityconstructionofsuppliers,theCompanyattachestheIntegrityAgreementtothecommercialcontractssignedwithsuppliersandconductsintegrityrelatedauditsonsuppliers,toincreasetransparencyandcredibilityinthesupplychain.TheCompanyisactivelyinvolvedinthedevelopmentofbusinessethicsandorganizesregulartrainingonlawsandregulationstocontinuouslyraiseemployees'awarenessoflegalcompliance.Thisyear,theCompanycarriedout18trainingsessionsonlawsandregulations,whichwereattendedby1,454middleandseniormanagementpersonnel,projectmanagersandrelatedpersonnel.Thetrainingcoveredlegalawareness,typicalcases,andgeneralknowledge.Inaddition,weconductspeciallegalandregulatorytrainingforkeydepartments.Thetrainingincludesexplanationoflaws,regulationsorrules,analysisofcompanycasesandsummaryoflessonslearned,toraisethelegalawarenessofmanagerpersonnelandrelevantemployees.Additionally,theCompanygivesconsiderableweighttotheprotectionoftradesecretsofitspartners.Wehaveadedicatedtradesecretprotectionofficethatformulatesthetradesecretconfidentialitysystemandthecompetitionagreementsystemforouremployeestoensurepropermanagementofcustomerinformation.Thisyear,theCompanyupdatedtheBiddingandBusinessIntegrityAgreementtofurtherstrengthenanti-corruptionmanagementatsource.Meanwhile,theCompanyadoptstechnicalmeasuressuchasdataencryptionandtwo-factorauthenticationtoprotectcustomerprivacy,andsetsaccessrightstoenhancetheconfidentialityofcustomerinformation.StrengtheningPatentandBrandProtectionWearecommittedtoprotectingourownIPrightsandrespectingthoseofotherstopromotethecommonandharmoniousprogressoftheindustry.InstrictcompliancewiththePatentLawofthePeople'sRepublicofChina,theTrademarkLawofthePeople'sRepublicofChinaandotherlawsandregulations,wehaveactivelyimprovedtheIPmanagementsystem,setuptheIPmanagementleadinggroupandestablishedtheinternalmanagementsystemforpatents,trademarksandsoftwarecopyrightstoprotecttheIPrightsinanall-roundway.Moreover,weincluderestrictiveclausesinbusinesscontractswithourpartnerstoclarifytheallocationofIPrightsandinterestsandtheinformationconfidentialityobligationsofeachparty,soastoavoidinfringingonthelegitimaterightsandinterestsofbothparties.ToavoidinfringingIPrightsofothers,duringtheR&Dofnewproducts,theCompany'stechnologycenterstrictlyreviewsandevaluatesnewproductprojectsbeforetheyarelaunched.Atthesametime,theIPoutputandprotectionarecontinuouslymonitoredtoensurethattheIPrisksarecontrolled.Additionally,theCompanyhasadedicateddepartmentthatprovideslegaladviceonIP-relatedissuesinvolvedinoperationsandassistsotherdepartmentswiththeirIPmanagement.TheCompanyincorporatestrainingonintellectualpropertyrightsmanagementandprotectionintotheannualtrainingforemployees,organizesthemtoparticipateinintellectualpropertyrightsmanagementtrainingofferedbyrelevantdepartments,andinvitesexpertstogivespeciallectures.TheCompanyalsocarriesoutspecialtrainingonthecreation,application,andprotectionofintellectualpropertyrightsamongtheemployeestoenhancetheirawarenessofintellectualpropertyrightsmanagementandprotection.Emailaddress（sdcxjt@sdcxjt.com）Hotline（0543-6981801、0543-6981777）ImprovingRiskPreventionandControlCapabilitiesAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsib。
5. ility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport6566SteppingUpInformationSecurityEffortsTheCompanyattachesgreatimportancetoinformationsecurityandprivacyprotectionandstrictlyobserveslawsandregulationsincludingtheCybersecurityLawofthePeople'sRepublicofChinaandthePersonalInformationProtectionLawofthePeople'sRepublicofChina.TheCompanyhasformulatedtheInformationSecurityStrategyandManagementPolicy,theInformationSecurityEducationandTrainingPolicy,thePasswordManagementPolicyandotherregulations,inordertoenhanceemployees'cybersecurityawarenessandabilitytoprotectinformation.TheCompanycontinuetoimproveinformationsecuritymanagementandoperationsystemstoavoidthenegativeimpactofcybersecurityincidentsontheCompany'soperationsandcustomerprivacyprotection.TheCompanyhasanInformationSecurityWorkingTeam,whichisheadedbytheGeneralManager,whoisalsotheultimateresponsiblepersonforinformationsecurity.TheTeamconsistsofcybersecurityexperts,applicationsecurityexperts,datasecurityexperts,andcomplianceandlegalexpertstomanageinformationsecurity-relatedmattersseparately.Intheeventofanetworksecurityincident,theCompanystrictlyfollowstheIncidentResponseEmergencyPlantotakeaction,shutsdownthefailedlineorserver,removethevirusesandvulnerabilitiesfromtheattackedequipment,andmakeseveryefforttoensurethesecurityoftheCompany'sinformationsystemandimportantdata.Atthesametime,theCompanyusesfirewalls,IPS,IDSandotherfacilitiestomakeinformationmoresecure,andsetsupstrictaccesspermissions,whicharemanagedbytheInformationCentre.Wehaveestablishedacompletedatabackupsystemthroughthecloudplatformtostrengthendatabackupcapabilities.Inaddition,theCompanyregularlyconductsinformationsecurityanddatasecuritytrainingamongallemployeesoftheInformationCentretoimproveemployees'cybersecurityawarenessandriskpreventionandmitigationcapabilities.Thisyear'strainingincludedphishingwebsites,emailidentification,andpasswordsecurityprotection.BuildingaSustainableValueChainTheCompanyiscommittedtoestablishinggoodcommunicationchannelsandclosepartnershipandbuildingasmoothcooperationmodeltopromotethecommondevelopmentofthevaluechainbyformulatingmanagementstandards,carryingoutbusinesscooperationandexchanges,andpromotingsustainabledevelopmentprojects.Inthisregard,theCompanyhasformulatedmanagementpoliciessuchastheProcurementProcessControlProcedures,theSupplierControlProcedures,theSupplierEvaluationManagementControlProceduresandtheQualifiedSupplierEvaluationStandardstoclarifysuppliermanagementrequirementsandstandardizethesupplychainmanagementprocess.InaccordancewiththeSupplierControlProcedures,wecollectinformationandconductqualificationauditsonsuppliersbeforetheyareadmitted,andformauditreports.Uponapproval,weconductcomprehensivereviewsofsuppliersbeforeformalcooperationandrequirethemtosigntheSupplierSocialResponsibilityCommitment,theProhibitedSubstanceAssuranceDeclarationandHSFNoticeandotherdocumentsthatguidethemtoimprovetheirESGperformance.Duringthecooperation,weestablishsupplierauditplanswithreferencetorelevantpoliciesanddocuments,andcontinuouslymonitorsuppliers'performancethroughon-siteevaluation,supplierself-evaluationandsecond-partyevaluation.Wealsocommunicatewellwithoursuppliers,sharingoursustainabledevelopmentconceptandlisteningpatientlytotheirdemands.Thisyear,wecommunicatedwithoursuppliersontheintegrityandbiddingrequirements,andcommonprocurementissuesbyorganizingsupplierassistance,industryexhibitions,in-personmeetingsandexchangeseminars,etc.,tohelpbothsidesmaintaincloseandfriendlylong-termcooperation.Bytheendof2023,theCompanyhadsuccessfullyorganized3symposiums,inviting35supplierstodiscusscooperationanddevelopmentissues,withabout70participants.SuppliermanagementandcoordinateddevelopmentInnovationNewMaterialactivelyengageswithprofessionalthirdpartiesanddownstreamcustomersincollaborativesustainabledevelopmentprojectstoachievesynergiesinsustainabledevelopmentwithourcustomersandotherpartiesacrossthewholevaluechain.Duringtheyear,theCompanydevelopedadigitalcarbonemissioncalculationtoolwithathird-partyprofessionalorganizationtoaccuratelycalculateandmonitorthecarbonfootprintofproductsandfurthermeettherequirementsofdownstreamcustomers.Atthesametime,asasuppliertomanyindustryleaders,theCompanyreceivessocialresponsibilityauditsfromdownstreamcustomerseveryyear,coveringenvironmentalprotection,resourcemanagement,humanrights,etc.,andstrivestobecomearesponsiblesupplier.SustainablevaluechaincollaborationTheCompanysuccessfullyorganized3symposiums，inviting35supplierstodiscusscooperationanddevelopmentissues,withabout70participants.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport066768UniteEffortsandJoinHandstoForgeDevelopmentTogetherAdheringtotheprincipleof''IntegrityandTalent,Person-to-postMatching'',InnovationNewMaterialprotectsthelegitimaterightsandinterestsofemployees,empowersemployees'growthinanall-roundwayandshapethecorporatecultureof''jointconstruction,jointcreation,sharedprosperity,sharedbenefits''.Theseeffortsenableustocreateahappyworkplaceandachievewin-winresultswithemployees.Inaddition,weshoulderoursocialresponsibilitiesandparticipateinpublicwelfareactivitiessuchascharitabledonations,socialcareandenvironmentalprotection.Wealsoencourageemployeestotakepartinvolunteeractivitiestobuildanimageofaresponsibleenterprise.ThischapterrespondstotheUNSDGsAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReportRecruitmentanddismissalTheCompanyhasformulatedtheRecruitmentManagementPolicy,theSeparationofEmploymentPolicyandotherdocumentsthatclarifytheprocessandimplementationstandardsformanagingtheentryandexitofemployees.WerequirerecruiterstoworkinstrictaccordancewiththeRecruitmentManagementPolicy.Wehavesetupmonitoringandreportingmailboxesandatelephonelinetoacceptthemonitoringofcandidatesandthecommunity.Employeeseparationishandledinstrictaccordancewiththerelevantsystemsandprocessestoprotecttherightsandinterestsofemployees.RemunerationandbenefitsInordertobetterserveemployees,wepracticeequalpayforequalwork,andadvocatesforaperformance-basedsalaryincentivepolicywithvariousbonusesandallowances.Thisfairpaysystemcanstimulatetheenthusiasmandcreativityofemployees.Wecontinuetoimprovetheemployeebenefitsbasedonthenationalstatutorystandardstomakeourcompensationsystemmorecompetitive.6970EmpoweringEmployees'GrowthTheCompanyeffectivelyprotectsthelegitimaterightsandinterestsofemployeesbyprovidingafair,justandopenworkingatmosphereaswellasaninclusiveanddiversifiedworkplace,andlocallycompetitiveremunerationpackages.Toenhanceemployees'senseofbelonging,wedoourbesttoensurethatthey''workwell,eatwell,livewell,learnwellandgrowwell''.Wecareforouremployeesinallaspectsofworkandlife,creatingahealthy,safe,beautifulandhappyworkingenvironment.Commercialinsurance,holidaygifts,privatecarallowance,freeworkingmealsandaccommodations,shuttlebuses,healthcheck-ups,teambuildingfund,association,etc.AdditionalbenefitsInsuranceandHousingFund,marriageleave,maternityleave,etcetera.StatutorybenefitsIn2023,theemployeesatisfactionsurveycovered92%ofemployees,and90%ofthesurveyedemployeesweresatisfiedwiththeCompany.StrictlyabidingbytheInternationalLaborStandard,theLaborLawofthePeople'sRepublicofChinaandotherstandards,lawsandregulationsathomeandabroad,theCompanyhasformulatedtheEmployeeHandbook,theCorporateCultureHandbookandotherrulesandregulationswhichclarifythecodeofconductforemployees,emphasizingthemanagementprincipleof''policiesandproceduresgofirst''.Werespectouremployees'socialbackgrounds,nationalities,physicalconditions,genderorientations,religiousbeliefs,etc.,andtreatallofouremployeesequallyintermsofcompensation,recruitment,promotion,andtraining.Bytheendof2023,somesubsidiarieswerecertifiedtotheSA8000:2014SocialAccountabilityInternationalstandard.Westrictlyenforcestandardworkinghoursandarrangeholidaysforouremployeesbasedonstatutoryholidaysandbusinessconditions.Wealsopaysocialsecurityandhousingcontributionsforouremployeesinaccordancewiththerelevantstandards,andpurchaseadditionalcommercialinsurancetoprovideouremployeeswithcomprehensiveoccupationalandsocialsecurity.Inaddition,wefullyrespectandprotectemployees'freedomofassociation,theirrighttocollectivebargaining,beliefs,freedomtoformandjoinlaborunionsandrighttopeacefulassembly,basedonthelaborUnionManagementPolicyandotherrules.Safeguardingemployees'rightsandinterestsDiversitypromotionTheCompanyvaluesthediversityofemployeesintermsofage,gender,andbackground,andhasbuiltaseniormanagementteamconsistingofpromisingyoungtalents,experiencedmiddle-agedtalents,professionalmanagerswhomastermanagement,andseniortechnologistswhoareexpertsinR&D.Theworkforceisacombinationofinnovation,experienceandwisdomthatcanimprovetheoperationefficiency.TheCompanycaresforfemaleemployees,supportingtheircareerdevelopmentandprovidingsupportrolesbasedontheprincipleofequalpayforequalwork.Inaddition,theCompanyhasformulatedacomprehensiveandflexibleleavepolicythatprovidesstatutorymaternityleaveandbreastfeedingleaveforfemaleemployeesandtheirfamilies,andprotectsemployeebenefitsduringspecialperiods.EmployeecommunicationchannelsTheCompanysmoothscommunicationchannelsforemployeesandconvenesstaffcongressesregularlytocommunicatewithemployeerepresentativesaboutpolicies,guidelines,corporateculture,rulesandregulations.Tocontinuouslycollectopinionsandsuggestionsofemployeesandfullylistentotheirvoices,theCompanyhassetupstaffsuggestionboxesinthecanteen,thestaffactivitycenterandproductionworkshop,aswellasadirecttelephonelinewhereemployeescancommunicatewiththePresident.Inaddition,theCompanyconductsanemployeesatisfactionsurveyeveryyear,inwhichemployeeswritedowntheiropinionsandsuggestionsonthequestionnaires.TheEnterpriseManagementDepartmentsummarizesandanalysesthequestionnaireandsubmitsittothemanagement.Afterdiscussion,themanagementdeterminestheimprovement,preventiveandcorrectivemeasures,andthecounterpartsensurethattherelevantimprovementsareputintoeffect.In2023,theemployeesatisfactionsurveycovered92%ofemployees,and90%ofthesurveyedemployeesweresatisfiedwiththeCompany.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport7172Inordertoimprovethe''everyoneadvises''mechanismandpromoteemployeeparticipationincorporatedevelopment,wehaveconductedademocraticappraisalamongallemployees,invitingthemtoevaluatethecadresondutyinananonymousway,andtoexpresstheiropinionsandsuggestionsontheCompany'smanagement,safeproduction,technologicalinnovation,etc.Employees'suggestionsweresummarizedandanalyzedbytherelevantdepartment,andthensubmittedtothePresidentforreviewanddeterminationofrectificationplans.In2023,wemadeadjustmentsbasedonemployees'suggestions,includingincreasingthefrequencyofshuttlebuses,improvingthestandardofemployees'meals,andimprovingaccommodation,andbuildinghigh-standardemployeeactivitycenterTheseeffortswerewidelypraisedbyemployeesandmotivatedthemtobecomemoreinvolvedintheCompany'sdevelopmentdecisions.DemocraticappraisalforalltopromotetheparticipationofallemployeesinmanagementCaseTheCompanyensuresthatemployees''learnwell''and''growwell''.Adheringtotheprincipleof''learntouseandusewhathasbeenlearned'',wearecommittedtoprovidingemployeeswithasmoothpromotionpathandasoundtrainingsystemtoimprovetheirworkskillsandprofessionalism,stimulatetheirpotential,andlayasolidfoundationforthelong-termdevelopmentoftheCompanyandemployees.PrioritisingemployeedevelopmentBytheendof2023,morethan300skilledpersonnelhavepassedthroughindependentevaluation,furtherpromotinginternaldevelopment.3''Fourchannels''underthe''Dualsequences'':''Dualsequences''refertofunctionalsequenceandproductionsequence.Thefunctionalsequenceincludesprofessionalchannelandmanagementchannelwhiletheproductionsequenceincludesskillchannelandmanagementchannel.SmoothemployeedevelopmentpathsTheCompanyiscommittedtobuildingafair,justandtransparentpromotionsystem.Inordertoensurethefairnessofthepromotionprocess,wehaveintroducedanall-employeedemocraticassessmentmechanism,whichcombinesmultiplefactorstomakeacomprehensiveassessmentoftheemployee'sperformance,includingjobrequirements,performance,anddepartmentalevaluations.Inaddition,wefullyinvestigatetheemployeestobepromotedandhaveestablishedapromotionpublicitysystemtopublicizepromotioninformationaswellasthehandlingofobjectionswithintheCompanytoensurethatthepromotionprocessisfairandtransparent.TheCompanycontinuestoimprovediversifiedpaths,includingthefourchannelsunderthe''dualsequences''3,internalrecruitmentandindependentevaluationplatformforskilledpersonnel,inordertoachieveperson-to-postmatching.Toboostemployeedevelopment,theCompanyhasestablishedaninternalrecruitmentmethodwhereinternalrecruitmentinformationisregularlyreleasedandemployeesareencouragedtoapplyforpositions,thusprovidingemployeeswithmoredevelopmentopportunities.TheCompanyhasobtainedShandongEnterpriseSkillsSelf-evaluationQualification,whichprovidesmoreopportunitiesforskilledpersonneltolearn,evaluateanddevelop.Bytheendof2023,morethan300skilledpersonnelhadpassedthroughindependentevaluation,furtherpromotinginternaldevelopment.ImprovingtheemployeetrainingsystemTheCompanyfostersaloveoflearningamongallemployees,andiscommittedtobuildingtheCompanyintoamoredynamicandinnovativelearningorganization,providingemployeeswithmoreopportunitiesforgrowthanddevelopment.WehaveformulatedtheTrainingManagementPolicyandofferemployeeslearningresourcesandplatforms.Inthisway,employeesareencouragedtoimprovethemselvesandadaptthemselvestotheneedoftheCompany'sglobalizationstrategy.Inordertoinvolveallemployeeintothetrainingprogram,wehavecarriedoutsystematictrainingprogramsforemployeesindifferentpositionsandgrades,including:Toimprovethetrainingefficiencyandenrichthecontent,theCompanyhasbuiltonlinetrainingplatformssuchasthe''MagicSchool''and''DechuangBusinessSchool''tocontinuouslyexploretrainingresourcesandmethodsandimproveemployees'satisfaction.Moreover,inordertomotivateouremployeestolearn,wehavesetuptheAcademicUpgradingIncentivePolicy,whichstandardizesstudysubsidies,includingsubsidiesfortitles,certificatesofcertifiedsafetyengineers,andotherskillsofothercorrespondingoccupationalgrades.FormiddleandseniormanagementWeadopta''inputandoutput''trainingmethod.Theyarerequiredtoparticipateinthe''condensedEMBA''training,andtransferthelearningresultstothewholestaff.Inthisway,wetrytopromoteconsistencybetweenthethinkingofthemanagementandthatoftheworkinglevel.FornewemployeesWeholdseminars,symposiumsandteambuildingactivitiestolistentotheirvoices.WecontinuetoupdatethetrainingPPTandenrichthetrainingcoursessothatnewemployeeshaveanin-depthunderstandingoftheCompany.Wealsoadoptan''instructor''approachtohelpthemintegrateintotheCompanymorequicklyafterjoining.FortechnicalmanagementpersonnelWecarryoutthe''teamleadertraining''and''furnaceprogram''trainingsessionforreservetalents,andcultivatereservetalentsintheproductionmanagementsystemthroughthe''independentevaluationofskilledtalents''platform.SymposiumforreservetalentsThisyear,InnovationSheetMaterialorganizedasymposiumforreservetalentstohelpthemfullyunderstandthetrainingrequirements,adapttothenewworkingenvironmentassoonaspossibleanddevelopahigh-qualitytalentpool.Atthesymposium,theGeneralManageremphasizedtherequirementsforthereservetalentsintermsofworkingconditions,mindexpansion,workinghabits,etc.Theleadersofeachdepartmentclarifiedthetrainingobjectivesandhabitsforthereservetalentsintheirdepartmentsandencouragedthemtodevelopwithapositiveandpeacefulmindset,demonstratingtheCompany'sfocusontalent.AsymposiumoninnovativereservetalentstostrengthentalentteamdevelopmentCaseAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport7374Openingceremonyofthesecondtrainingsessionofthe''FurnaceProgramme''forreservetalents''LeanManagementEnhancement''trainingcompletionceremonyThisyear,InnovationMetalsuccessfullyheldthesecondtrainingsessionofthe''FurnaceProgram''forreservetalentsandselected41traineesthroughcompetitiveexaminationanddepartmentalrecommendation.Thistrainingsessionisbasedonthevisionof''buildingpassionateteam,creatingcorevalue''andincludesacurriculumdesignedtohelptraineespursue''exercise,practice,breakthrough,innovation,value''withthecoreobjectiveof''lowercosts,higherefficiency,andmorebenefits''.Thetrainingprogramaimstoenableemployeestobenefitfromwhattheylearn,andtobuildasolidtalentbasefortheCompany'sscientificandtechnologicalinnovation.The''FurnaceProgram''reservetalenttrainingsessionCaseThisyear,InnovationPrecisionsuccessfullyheldthethird''LeanManagementEnhancement''training,withatotalof66participants.ThetrainingincludedtheQualityManagement-SixSigmaSystem,LeanProductionManagementPractice,FourStepstoProjectManagementandLeanProductionTechnique,whichconveyedthebasicknowledgeandskillsofleanmanagementtotheparticipantsintheformofwork-basedlectures.Thiscourseprovidedknowledgeandtechnicalsupportforsystematicleanmanagement,andlaidasolidfoundationforleanmanagement.Atrainingcourseon''LeanManagementEnhancement''tostrengthenmanagement'sknowledgeandskillsCaseAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport7576TheCompanyalwaysadherestotheprincipleof''people-oriented''andplacesgreatimportanceonthewell-beingofemployees.Tothisend,theCompanyensuresthatemployees''workwell,eatwell,playwell'',creatingabetterworkingandlivingenvironmentforemployees.CaringforemployeesWorkwellGarden-stylefactoryWecreateagarden-stylefactoryandofficeenvironmentforemployeesandprovidethemwithafavorableworkingenvironment.EatwellDailymealsforemployeesWeprovideemployeeswithhigh-standardandfreeworkingmeals,sothattheycaneatwell.PlaywellWeprovideemployeeswithhigh-standardapartmentsaswellaswell-equippedrecreationalfacilities,includinggymnasiums,indoorbasketballcourts,badmintoncourts,billiardcourt,Tabletenniscourt,audio-visualroom,readingroom,yogaroom,laundryroom,etc.,ofwhichthegymisequippedwithmultifunctionaltreadmill,ellipticalmachine,mountaineeringmachine,waistandbackmulti-functionalabdominalmuscletrainer,shoulderpressbench,barbellbenchandotherequipment,lettingemployeesfullyenjoyleisuretimesbesideswork.EmployeeActivityCenterAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport7778TheCompanyattachesgreatimportancetoemployees'workplacehappinessandsenseofbelonging,andorganizesavarietyofculturalandsportsactivities,sothatemployeesworkininnovation,happinessininnovation.In2023,wehavecarefullyorganizedmorethan50varioustypesofemployeeactivities,morethan40employeeskillscompetitions,includingtheannualsummaryoftheGeneralAssembly,theCompany'sannualmeeting,the8thofMarchWomen'sDayactivities,theMayDayWorkers'SportsDay,Mid-autumnFestivalactivities,ThanksgivingDayactivities,Christmasactivities,NewYear'sDayTeaParty,rewardactivitiesforemployees'children'sadvancementtohighereducation,seminarsforgraduates,knowledgecompetitionactivities,etc.,aimingatenrichingthelifeofemployees,promotingthefriendshipofcolleagues,conveyingtheCompanyculture,andfurtherenhancingthesenseofidentityandreputationofemployeestotheCompany.Thisyear,wealsorewardedatotalof98vehiclesfortheCompany'sloyalteamrolemodels,recognizingtheirconsistenthardworks.Weprovidehigh-standardapartmentstoemployees.Atpresent,theCompanyhasatotalof2,598dormitoriesinvariousparks.Tocontinuouslyimproveemployeelivingconditionsandmeettheaccommodationneedsofnewemployees,theCompanyhasbuiltandputintouse344dormitoriesthisyear.EmployeeApartmentsAtpresent,theCompanyhasatotalof2,598dormitoriesinvariousparks.TheCompanyhasbuiltandputintouse344dormitoriesthisyear.In2023,wehavecarefullyorganizedmorethan50varioustypesofemployeeactivitiesMorethan40employeeskillscompetitionsWealsorewardedatotalof98vehiclesfortheCompany'sloyalteamrolemodelsEnrolmentcelebrationactivityforemployees'childrenCampaignsof''healtheducationontraditionalChinesemedicinefortheInternationalWomen'sDay''In2023,atotalof108employeesandtheirchildrenvisitedthehigh-strengthandhigh-toughnessaluminumalloyrodproductionworkshopinInnovationMetal,theNo.1andNo.2aluminumextrusionworkshopsinInnovationPrecision,andthecoldrollingproductionworkshopandproductdisplayzoneinInnovationSheetMaterial.Duringtheactivity,representativesofemployees'childrendeliveredrousingspeeches,sharingtheirlearningexperiences,expressingtheirgratitudetotheirparentsandwishingtheCompanyaprosperousfuture.ThisactivityhasfurtherstrengthenedthecohesionandcentripetalforceoftheCompany,stimulatedthestaff'ssenseofidentityandbelongingness,anddeliveredtheCompany'shumanisticcareforemployees.Enrolmentcelebrationactivitiesforemployee'schildrentoshowhumanisticcareCaseInMarch2023,theCompanyjoinedhandwithZoupingHospitalofTraditionalChineseMedicinetoholdtwocampaignsof''HealthEducationonTraditionalChineseMedicinefortheInternationalWomen'sDay'',involvingmorethan140femaleemployeeparticipants.Doctorsfromthehospitaleducatedfemaleemployeesonthepreventionandtreatmentofcommonfemalediseasesandshareddailyself-careprogramstopromoteahealthylifeforthem.Inaddition,doctorsinterpretedindetailthecommandsandmovementsofthe''BaduanjinQigong''tohelpemployeescultivategoodlivinghabitstoachievephysicalandmentalhealthandfamilyharmony.Holdingcampaignsof''HealthEducationonTraditionalChineseMedicinefortheInternationalWomen'sDay''toadvocaterightideaonhealthCaseAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport797980ProtectingWorkSafetyAttachinggreatimportancetoproductionsafetyandemployeehealth,theCompanyadherestothehealthandsafetymanagementpolicyof''safetyfirst,preventionatthecore,comprehensivemanagement,continuousimprovement,peoplecentricity,andsafedevelopment''.Weadheretothesafetymanagementconceptof''allriskscanbecontrolledandallaccidentscanbeprevented'',andcontinuouslyoptimizethesafetyriskidentificationandcontrolprocess.Besides,weimplementtheworksafetyresponsibilitysystem,improvetheworksafetyprotectionandmanagementcapacity,andstrengthenthemonitoringofoccupationalhealth,toprovideemployeeswithasafeandhealthyworkingenvironment.Bytheendof2023,theCompany'sheadofficeand9subsidiarieshadcompletedtheacceptanceofsafetystandardization(levelIII)andactivelysubmittedtheapplicationforacceptanceofsafetystandardization(LevelII)totherespectiveprovincialdepartmentsofemergencymanagement.Duetotheexistingreconstructionandexpansionprojects,therespectiveemergencymanagementdepartmentsdidnotarrangeacceptancefortherestsubsidiaries.However,thesafetystandardizationsystemhadbeenestablished,improvedandeffectivelyoperatedinsuchsubsidiaries.Atpresent,9oftheCompany'ssubsidiarieshaveobtainedISO45001occupationalhealthandsafetymanagementsystemcertification.Bytheendof2023,theCompany'sheadquarterand9subsidiarieshadcompletedtheacceptanceofsafetystandardization(levelIII).8subsidiariesoftheCompanyhaveachievedISO45001OccupationalHealthandSafetyManagementSystemcertification.SafetyCommitteeTheheadofthesafetycommitteeholdsquarterlymeetingstosummarize,deployandcoordinatethepromotionofsafetymanagement,formulatesannualworksafetyobjectivesandplans,topromotesafetymanagementineachsubsidiary;SafetyandEnvironmentalSupervisionDepartmentTheDepartmentofSafetyandEnvironmentalSupervisionactsastheofficeoftheSafetyCommittee,playstheroleofunifieddeploymentofsafetymanagement,coordinationofservices,trainingandguidance,andcomprehensivesupervision,andperformsthefunctionofsafetyservices.TheDepartmentalsocontinuouslyimprovestheworksafetysystemandoptimizestheworkflowaccordingtotheactualproductionneeds;EachsubsidiaryBefullyresponsibleforitsownsafetywork,carriesoutthemainsafeproductionactivities,acceptstheGroup'ssupervisiononsafetymanagement,andundertakesthesafetymanagementtasksassignedbytheheadquarter.''Double-wheeldriving''structureofproductionmanagementforallemployeesTheCompanybuildsa''double-wheeldriving''systemforsafetymanagement,withtheunifiedmanagementoftheGroupandmanagersofsubsidiariesastheactivewheel,andthehierarchicalmanagementofsubsidiariesandthe12elementsofsafetymanagementasthepassivewheel.Underthejointeffectoftheworksafetyresponsibilitysystemforallemployeesandtheperformanceevaluation,theCompanycreatesaprogressiveproductionsafetymanagementmodetoeffectivelyconductworksafetymanagementmeasures.Two''One''CentralisedmanagementbytheGroupManagementManagementbyBranchleadersTeamFivelevelsofcontrol12elementsofsafetymanagementThedrivingwheelThedrivenwheel1Thedrivenwheel2TheCompanycontinuestoimproveitssafetymanagementrulesandregulationsandhasformulatedaseriesofpolicieswithrespecttoworksafetyresponsibility,riskassessmentandcontrolmanagement,specialoperationpersonnelmanagement,operationsafetymanagement,occupationalhealthmanagement,worksafetyassessmentmanagement,emergencymanagement,andsafetyperformanceevaluationmanagement.Inordertoeffectivelyimplementhealthandsafetymanagement,theCompanyhasestablishedatop-downmanagementmodelwithunifiedleadershipandformulationofworksafetyobjectivesandplansbytheSafetyCommittee,unifiedsupervisionandmanagementbytheSafetyandEnvironmentalSupervisionDepartment,andindependentmanagementbyeachsubsidiary.Inaddition,theCompanyemphasizesthecoreconceptof''whoevermanagesproductionmustmanagesafety''and''whoevermanagessafetymustunderstandsafety'',andcontinuouslystrengthenstheconstructionofthesafetymanagementteam.TheCompanyimplementsthetitlesubsidysystemforCertifiedSafetyEngineers(CSE)andprovidessubsidiesforexaminationandtrainingcoststoencouragefull-timesafetymanagementpersonneltotaketheCSEexamination.Inrecentyears,atotalof57safetymanagementpersonnelandproductionmanagementcadreshaveparticipatedinCSEstudies,trainingsandexaminations,andmorethan40employeesarecertifiedsafetyengineers.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport8182TheCompanycontinuouslyimprovestheidentification,assessment,managementandmonitoringofoccupationalhealthandsafetyrisks.WehaveformulatedtheGradedRiskManagementandControlListtomanagethesafetyriskshierarchicallybasedontheindustrypracticesonaccidentsandthehazardsidentified.Fordifferentrisksources,wehaveformulatedtheRecordsofIdentification,EvaluationandAnalysisonRisks,whichclarifiestheengineeringandtechnicalmeasures,managementmeasures,trainingandeducationmeasures,individualprotectionmeasuresandemergencyresponsemeasuresforpreventingeachrisk,toensuretherationalityandoperabilityofthecontrolmeasures.Inaddition,tocontinuouslyenhanceitsriskidentificationandmanagementcapabilities,theCompanyestablishesapoolofinternalsafetyexperts,andcarriesoutmonthlyinspections,regularcomprehensiveinspectionsandspecialsafetyinspections.Atthesametime,theCompanyemploysqualifiedexternalunitstocarryoutinspectionseverysixmonthstocomprehensivelyidentifysafetyrisks.Forthesubsidiaries,weemphasizethatalllevelsattachgreatimportancetotheinvestigationandmanagementofhealthandsafetyhazards.Andwerequireoursubsidiariestoorganizesafetyinspectiononceeverymonth,undertheleadershipofthemainmanagersandtheeng。
6. agementoftheheadsofworkshops.Workshopsarerequiredtoorganizesafetyinspectiononceeverymonth,undertheleadershipoftheworkshopdirectorsandtheengagementoftheteamleaders.Bytheendof2023,theCompanyhadachieved100%rectificationforhazards,withover95%ofhazardsrectifiedinfirstre-inspection.Ifanaccidentoccurs,theCompanyrequiresallsubsidiariestoseriouslyimplementtheprincipleof''NoForgiveness''4.Whileinvestigatingaccidentsandtracingworksafetyloopholes,westrivetofurtherpromotesafetytraining,preventivemeasures,andhazarddetectionandrectification,toresolutelyavoidany''gap''inresponsibilityorany''blindspot''inmanagement.Thisyear,theCompanyhadnoworkfatalitiesorseriousinjuries.Inresponsetopotentialsafetyemergencies,theCompanyhasestablishedcomprehensiveemergencyrescue,mitigationandremediationmeasuresandrequireseachsubsidiarytoformulateanEmergencyPlanforWorkSafetyAccidentsbasedontheiractualsituation,andtosetupemergencyfacilities,prepareemergencyequipmentandreserveemergencymaterialsatthesite.ControllingsafetyrisksAdheringtotheprincipleof''replacinglaborwithmechanization,reducinglaborwithautomation,andrealizingunmannedoperationwithintelligence'',theCompanycontinuouslycarriesouttechnologicaltransformationandequipmentupgrading.topromoteintelligentandautomaticequipmentinpartoftheproductionprocess,soastoensurethesafetybymitigatingworksafetyriskthroughlaborintensityreduction.Thisyear,theCompanyvigorouslypromotedtheconstructionoftheintelligentmonitoringinformationplatform,integratingthesafetydetectionalarmdataandlinkagedataintothesafetymanagementplatformtorealizethedailycentralizedcontrolandmanagementofhealthandsafety.Atthesametime,wehaveimplementedintelligentsurveillanceviolationdetectionandearlywarning,andusedintelligentanalysistechnologytoanalyzeanddeterminebehavioralviolationsinthesurveillancearea.Wehavesetupelectronicfencestodetectviolationssuchasoff-duty,overcrowdingandlackoflaborprotectioninrealtime.Ifrelevantbehaviorsoccur,thesystemwillimmediatelysendouton-sitealarmstostopandcorrecttheviolations.Intelligentsafetymanagement4Namely,noforgivenessforthefollowingsituations:thecauseoftheaccidenthasnotbeeninvestigated;nopreventivemeasureshavebeentaken;thepersonresponsiblefortheaccidenthasnotbeenpunished;andlessonshavenotbeenlearnedfromtheaccident.EvaluationindicatorsControlobjectivesSafetyresponsibilitysystemQualifiedrateofcompliancewiththeworksafetyresponsibilitysystem100%Passrateofsafetyeducationandtraining100%Percentageofspecialoperationpersonnellicensedtowork100%Rateofcontrolledsourcesofdanger100%Passrateofone-timereviewofhazards(includingdeferredrectification)95%Completenessrateofcompletedevices,safetysignsandemergencyfacilities100%Completionrateofemergencydrills100%ManagementofworkinjuriesWork-relatedfatalities0Occupationaldiseaserate0Seriousaccidents0Minorinjuryrateperonethousandpeople10%Toefficientlyimplementtheworksafetyresponsibilitysystemforallemployees,theCompanyadherestothepositiveincentiveconceptof''rewardfirst,penaltysecond'',andhasestablishedasafetyperformanceassessmentsystemandformulatedtheMeasuresforSafetyPerformanceAssessmenttoclarifytherequirementsonsafetyresponsibility,zerotoleranceofaccidents,andthetargetrewardandpunishmentmode,soastodriveallemployeestofulfiltheirdutiesinworksafetyindependently.TheCompanyorganizesquarterlycomprehensiveinspectionsforsafetymanagementpersonnelandtechniciansofeachsubsidiaryandimplementsdailymanagementsafetyperformanceappraisal.Basedonindicatorssuchasworkinjuries,performanceofsafetyresponsibilities,training,controlledsourcesofdanger,andrectificationforhazards,theCompanyevaluateson-sitesafetymanagement,performanceofsafetyresponsibilities,andachievementofgoals.Basedontheyear-endcomprehensiveassessment,theCompanyrewardsmiddleandseniormanagement(includinggeneralmanagersofsubsidiaries)andgrass-rootscadresinaccordancewiththerulesandregulations.KeyPerformanceIndicatorsforHealthandSafetyTheCompanyhadachieved100%rectificationforhazards,withover95%ofhazardsrectifiedinfirstre-inspection.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport8384TheCompanyattachesgreatimportancetothecultivationofemployees'healthandsafetyawareness,andregularlycarriesoutavarietyofoccupationalhealthandsafetytrainingforemployees.WehaveformulatedtheSafetyEducationandRetrainingProgramforPractitioners,whichincludesmonthlytrainingforallemployees,teamactivities,''three-level''safetyeducationfornewemployees,aswellascompetencetrainingforpersonnelindifferentpositions.TheCompanyrequiressubsidiariestoconductmonthlymeetingsonsafetytoshareandlearntheknowledgeofsafetymanagement.AsrequiredbytheCompany,forcompaniesinvolvedinmoltenmetalproduction,thetotaldurationoftrainingforallemployeesshallbenolessthan20hoursperyear;forcompaniesinnon-high-riskindustries,thetotaldurationoftrainingforallemployeesshallbenolessthan8hoursperyear.During2023,theCompany'semployeesafetytrainingparticipationratewas100%.ImprovingsafetyawarenessWerequireproductionandoperationunitstoorganizecomprehensiveorspecialemergencydrillatleastonceeveryyear,aswellastoorganizefullspecialdrillatleastonceeverythreeyears.Werequireeachproductionandoperationunittoestablishanemergencydrillrecordafterthedrillandevaluatethedrilleffect,soastoidentifydeficienciesandmakecontinuousimprovements.EmergencymanagementtrainingInnovationnewmaterial'shighlighthealthandsafetytrainingcoursesDuring2023,theCompany'semployeesafetytrainingparticipationratewas100%.TheCompanyrequiresallnewemployeestoreceivesystematicandcomprehensivesafetymanagementeducationbeforework.Amongthese,thedurationofpre-servicetrainingforemployeesinvolvedinmoltenmetaloperationsshallbenolessthan72hours;andthedurationofpre-servicetrainingforemployeesofcompaniesinnon-high-riskindustriesshallbenolessthan24hours.Newemployeeswillbeallowedtostartworkonlyafterpassingatrainingtest.Toenhancetheprofessionalcompetenceofbusinesspersonnel,theCompanyemploysqualifiedexternaltrainingagenciestoprovidetrainingonsafetymanagementandsafetytechnologyreviewforfull-timesafetymanagementpersonnel,productionmanagementcadresandspecialoperationpersonnel.TheCompanyrequiresteamleadersofeachshifttocarryoutsafetyeducationactivitiesinthemorningmeeting,informingaboutthesituationofon-sitesafetyproductionandproblemsinthepreviousshift.Theteamleadersarerequiredtodeclaretheriskpoints,keypreventivemeasuresandemergencyresponsemeasuresoftheteam,checktheworkingstatusoftheparticipants,andconductrandomchecksonthekeyworkofsafetyproductionfortheteammembers.TrainingforFront-lineEmployeesProfessionalTechnicalSafetyTrainingTrainingforNewEmployeesThisyear,InnovationSheetMaterialorganizedofflinetrainingonemergencymanagementfor1,300workersinproductionlineandthoseinchargeofworksafety.Thetrainingincludesthegeneralknowledgeofemergency,emergencyplans(emergencyresponseduties,emergencyresponseproceduresandmeasures,etc.),self-rescueandmutualrescueandescapetechniques.Italsoincludesthecorrectuseofprotectivefacilitiessuchasairrespirators,fireextinguishersandsafetybelts,aswellasanalysesoftypicalaccidentcases.OrganizingemergencymanagementtrainingtoenhancesafetyawarenessofemployeesCaseAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport8586Withregardtooccupationalhazards,theCompanyadherestothecomprehensiveprinciplesofprevention,control,reductionandeliminationtopreventoccupationaldiseases.Inordertoeffectivelydealwiththeoccupationalhazardsofdifferentpositions,theCompanyregularlyissuesstandardizedoccupationalprotectiveequipmenttoemployeesand,througheducation,urgesthemtouseandkeeptheequipmentcorrectly.Atthesametime,theCompanyhasstandardizedthemanagementofpre-service,in-serviceandoff-serviceoccupationalhealthcheck-ups,andestablishedpersonalhealthfileforeveryemployee.Thisyear,nooneintheCompanysufferedfromoccupationaldiseases.SafeguardingoccupationalhealthTheCompanyincorporatesdispatchedlabors,third-partyemployees,externalconstructionparties,andotherexternallyhiredpersonnelintotheunifiedsafetymanagementsystem.Theselectionofcooperativeconstructorsrequiresverificationoftheirqualificationsandpersonalinjuryinsurancecoveringtheconstructionpersonnel,andthelicensingofspecialoperators,toensurethattheiremployeesgainthehealthandsafetyprotection.TheCompanysignssafetymanagementagreementswithexternalconstructionunitsandjointlyformulatesplansfordangerousoperations,andrequiresthemtocarryoutsafetynotificationtrainingandassessmentbeforeenteringtheproductionplant.Inaddition,theCompanyconductsdailyandregularsafetyinspectionsforexternalconstructionunits,andcarriesouton-sitepre-operationhazardinspectionsmonthlytoensurethesafetyforthird-partyconstructionpersonnel.Third-partysafetymanagementOccupationalhealthmanagementtrainingInSeptember2023,InnovationSheetMaterialorganizedofflineoccupationalhealthmanagementtrainingforallworkersinproductionlineandthoseinchargeofworksafety.Thetrainingcomprehensivelycoversthebasicknowledgeofoccupationaldiseasepreventionandcontrolregulations,therightsandobligationsofworkersinoccupationalhealthprotection,themainoccupationaldiseasehazardsandpreventivemeasuresforjobs,aswellastheuseandmaintenanceofpersonallaborprotectiveequipment.Thepurposeofthetrainingistoraiseemployees'awarenessofoccupationalhealthandtoassisttheminbetterunderstandingandfulfillingtheirresponsibilitiesinoccupationalhealth.OccupationalhealthmanagementtrainingCaseAboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport8788TheCompanyattachesgreatimportancetoenvironmentalprotectionandencouragesemployeestoprotecttheenvironment.Weextendtheconceptofenvironmentalprotectiontopublicwelfareactivitiestopromotethegreenandsustainabledevelopmentofthesociety.EnvironmentalprotectionTheCompanyhasalwaysinsistedongivingbacktothesocietyandactivelyengagedincharitabledonations.Basedonouradvantagesinresources,wehavesetup''Lvxingren'',apublicwelfareorganization,toshareourachievementswiththesociety.CharitabledonationsTheCompanyalwayspaysattentiontotheneedsofdisadvantagedgroups,anddeliverssocialcareinvariouspublicwelfareactivities,activelycreatingafairandharmonioussocialatmosphere.SocialcareAdheringtotheconceptof''nopoorstudentdroppingoutofschool'',theCompanyactivelycarriesoutthe''TrinityofSponsorship''activitytoprovidemoreopportunitiesforgood-performancestudentsfromdisadvantagedfamiliesinpoverty-strickenareastostudy,soastopromoteequalityineducationandfulfilitssocialresponsibility.Holdingthe''TrinityofSponsorship''tohelppoorstudentsmakedreamscometrueCaseCaringabouttheseniors,theCompanyorganizedemployeestothehomesfortheelderlyinGaoxinTown,XidongTown,JiaoqiaoTownandWeiqiaoTowninBinzhoutovisitseniorsundercentralizedsupportandpeopleinexceptionalpoverty.TheCompany'sconsolationteamwentwithflour,cookingoilandconsolationmoney,andgainedin-depthunderstandingofthedailylifeoftheseniorsthere,demonstratingouremployees'exemplaryroleindedicatingtothesocietyandhelpingtheseniors.VisitinghomesfortheelderlyandwarmingtheheartsoftheseniorsCaseDistributionofconsolationmoneytotheseniorsCeremonyof''TrinityofSponsorship''Tohelpemployeerelativessufferingfromcerebralhaemorrhage,''Lvxingren''issuedafund-raisinginitiative,whichwassupportedbytheCompany'scadresandemployeeswithdonations.InAugust2023,''Lvxingren''handedovertheraisedfundtothebeneficiaries,embodyingthespiritofsolidarityandfraternity.''Lvxingren''raisedfundtohelppatientsovercomedifficultiesCaseCharitabledonationceremonyInNovember2023,''Lvxingren''carriedoutactivitiesthemedon''Enhancingenvironmentalprotectionawarenesstojointlybuildaninnovativehome''.Atotalof81employeesparticipatedintheactivities.Theypickeduprubbishatdesignatedplacesandcleanedupalongtheroads,contributingtotheprotectionofurbanecology.EnhancingenvironmentalprotectionawarenesstojointlybuildaninnovativehomeCasePublicwelfareactivitiesforenvironmentalprotectionFacilitatingHarmoniousSocialDevelopmentTheCompanyisdeeplyengagedinpublicwelfareprojects,andcallsonemployeestoactivelyparticipateinvoluntaryactivitiestobuildanimageofresponsiblecorporatecitizenship.Thisyear,theCompanyorganizedandparticipatedinvariousprojectscoveringcharitabledonation,socialcare,environmentalprotectionandothers,inabidtofulfilitssocialresponsibilityfromallaspectsandenhanceitsbrandimageandsocialinfluence.AboutInnovationNewMaterialSustainableDevelopmentManagementPursuingGreenCycletoPromoteGreenDevelopmentGreen-drivenInnovationandProduct-ledDevelopmentPracticingSoundManagementtoPromoteResponsibility-DrivenDevelopmentUniteEffortsandJoinHandstoForgeDevelopmentTogetherInnovationNewMaterial2023Environmental,SocialandGovernanceReport8990KeyESGPerformances5KeyPerformanceIndicatorsUnit2023GreenhouseGas(GHG)EmissionTotalGHGemissionTons(CO2equivalent)865,967.35DirectGHGemission(Scope1)Tons(CO2equivalent)387,053.55IndirectGHGemission(Scope2)Tons(CO2equivalent)478,913.80GHGEmissionIntensityAluminumrodsTons(CO2equivalent)/tons0.12AluminumrodsandcablesTons(CO2equivalent)/tons0.13AluminumprofilesTons(CO2equivalent)/tons1.09AluminumsheetsandfoilsTons(CO2equivalent)/tons0.52StructuralcomponentsTons(CO2equivalent)/10,000pieces10.47EnergyTotalenergyconsumptionTonsofstandardcoal272,109.36Totaldirectenergyconsumption6Tonsofstandardcoal203,646.04GasolineTons190.56DieselTons698.16NaturalgasCubicmeters166,541,868.00Totalindirectenergyconsumption7kWh576,592,451.99SolarpowerkWh19,527,164.00Purchasedelectricity8kWh557,065,287.99EnvironmentalKPIsKeyPerformanceIndicatorsUnit2023WaterResourceUsage9TotalwaterwithdrawalTons2,647,465.33WastewaterTotalcompliantindustrialwastewaterdischargesTons19,499.00BycontentsofsubstancesinwastewaterAmmoniaNitrogenDischargeinWastewaterKg69.05ChemicaloxygendemandKg1,851.89WasteGasSulfuroxides(SOx)emissionTons20.72Nitrogenoxides(NOx)emissionTons208.86ParticulatematteremissionTons43.78Volatileorganiccompound(VOC)emissionTons2.01WasteTotalhazardouswastegenerated10Tons61,141.56TotalhazardouswastetreatedTons61,676.64TotalgeneralindustrialsolidwastegeneratedTons637,436.18TotalutilizationofgeneralindustrialsolidwasteTons562,552.41SecondaryAluminumRecycling11TotalrecyclingofsecondaryrecyclingTons698,900.009TheCompany'swaterwithdrawalsarefrommunicipalwatersupplies,andtherearenowithdrawalsfromareasofhighwaterpressure.10Hazardouswastemainlyincludesaluminumash,dustremovalash,oil-containingdiatomaceousearth,wasteoil,wastesludge,andwasterollingoil.11Secondaryaluminumrecyclingconsistsofmarketscrapandindustrialresiduals.5ThecoverageofthefollowingKPIsisthesameasthatoftheconsolidatedstatements.Incaseofanydiscrepanciesbetweenthetotalnumberandthesumofthedataandratiosdisclosedherein,itisduetorounding.6Directenergyconsumptioncoversgasoline,dieselandnaturalgas.TheresultiscalculatedinaccordancewiththeGeneralRulesforCalculationoftheComprehensiveEnergyConsumption(GB/T2589-2020).7Indirectenergyconsumptioncoverssolarpowerandelectricityconsumption.TheresultiscalculatedinaccordancewiththeGeneralRulesforCalculationoftheComprehensiveEnergyConsumption(GB/T2589-2020).8Purchasedelectricityconsistsofelectricitypurchasedfromthenationalandnon-nationalgrid.InnovationNewMaterial2023Environmental,SocialandGovernanceReportKeyPerformanceIndicatorsUnit2023EmployeeTrainingTrainingcoverage%100EmployeetrainingtotaltimeHours310,553TotaltrainingtimebygenderMaleHours207,967FemaleHours102,586TrainingtimepercapitabygenderMaleHours38.76FemaleHours37.88TrainingtimepercapitabyemploymenttypeProductionpersonnelHours49.91SalespersonnelHours60.47R&DpersonnelHours69.99FinancepersonnelHours35.95ProcurementpersonnelHours48.48ManagementpersonnelHours71.46OtheradminandlogisticspersonnelHours62.11R&DInvestmentTotalR&DinvestmentRMB10,00051,431.25TotalemployeesonR&DpositionsPerson814SocialKPIs9192KeyPerformanceIndicatorsUnit2023EmploymentTotalemployeesPerson10,724BygenderMalePerson7,361FemalePerson3,363ByemploymenttypeFull-timeemployeesPerson10,724Part-timeemployeesPerson0WorkersbesidesemployeesDispatchedworkersPerson212DispatchedworkersfromcontractorsPerson409ManagementlevelemployeesnumberandproportionbygenderMalemanagementlevelemployeesPerson198FemalemanagementlevelemployeesPerson24Proportionofmalemanagementlevelemployees%89.19Proportionoffemalemanagementlevelemployees%10.81ByregionChinesemainlandemployeesPerson10,671OverseasTerritoriesemployeesPerson53EmployeeHealthandSafetyLostworktimeduetoworkinjuriesDays5,710NumberofworkinjuryincidentsEmployee53Contractor0Numberofwork-relatedfatalitiesNumberofdeaths0InnovationNewMaterial2023Environmental,SocialandGovernanceReport9394KeyPerformanceIndicatorsUnit2023SuppliersTotalsuppliers122,233ByregionChineseMainland2,221OverseasTerritories12BylevelTotallevel1suppliers132,233Totalkeylevel1suppliers1491Proportionofprocurementfromkeylevel1suppliers%74.02None-level1keysuppliers0Keysuppliers(includelevel1andnone-level1)91NumberofsuppliersparticipatinginevaluationandtrainingSuppliersthatpassedonsiteevaluation1,500Numberofsuppliersassessedtohavesignificantactual/potentialnegativeimpacts0Percentageofsupplierswithsignificantactualorpotentialnegativeimpactsthathavetakencorrectiveactionorimprovementplans%0Numberofsupplierswithsignificantactual/potentialnegativeimpactsterminated0Totalnumberofsupplierssupportedincorrectiveactionplanimplementation35Bymainoperatingregion(Shandongprovince)ofsupplier,proportionoftotaltransactionamount%43Anti-corruptionNumberofcorruptionlawsuitsfiledandconcludedagainsttheCompanyoritsemployeesduringthereportingperiod0NumberofdiscriminationorharassmentlawsuitsfiledandconcludedagainsttheCompanyoritsemployeesduringthereportingperiod0NumberofcustomerprivacydatalawsuitsfiledandconcludedagainsttheCompanyoritsemployeesduringthereportingperiod.0NumberofconflictofinterestlawsuitsfiledanddisposedofagainsttheCompanyoritsemployeesduringthereportingperiod0NumberofmoneylaunderingorinsidertradingcasesfiledandconcludedagainsttheCompanyoritsemployeesduringthereportingperiod012ThetotalnumberofsuppliersthatgeneratedtransactionswiththeCompanyduringthereportingperiod.13Tier1suppliersrefertosupplierswhohavetransactionsdirectlywiththeCompany.14ImportantsuppliersarethesumoftheCompany'sClassAandClassBsuppliers.GRIStandardsDisclosureChapter(s)intheReportGRI2TheOrganizationandItsReportingPractices2-1OrganizationaldetailsAboutInnovationNewMaterial2-2Entitiesincludedintheorganization'ssustainabilityreportingAbouttheReport2-3Reportingperiod,frequencyandcontactpointAbouttheReport2-4Restatementsofinformation/2-5Externalassurance/GRI2ActivitiesandWorkers2-6Activities,valuechainandotherbusinessrelationshipsAboutInnovationNewMaterial,BuildingaSustainableValueChain2-7EmployeesInnovationNewMaterialsinFiguresKeyESGPerformances2-8WorkerswhoarenotemployeesKeyESGPerformancesGRI2Governance2-9GovernancestructureandcompositionSustainableDevelopmentManagement,InnovationNewMaterial2023AnnualReport2-10NominationandselectionofthehighestgovernancebodyInnovationNewMaterial2023AnnualReport2-11ChairofthehighestgovernancebodyInnovationNewMaterial2023AnnualReport2-12RoleofthehighestgovernancebodyinoverseeingthemanagementofimpactsInnovationNewMaterial2023AnnualReport2-13DelegationofresponsibilityformanagingimpactsInnovationNewMaterial2023AnnualReport2-14RoleofthehighestgovernancebodyinsustainabilityreportingSustainableDevelopmentManagement2-15ConflictsofinterestSustainableDevelopmentManagement2-16CommunicationofcriticalconcernsSustainableDevelopmentManagement2-17Collectiveknowledgeofthehighestgovernancebody/2-18Evaluationoftheperformanceofthehighestgovernancebody/GRIStandardsIndexStatementofUseForthe2023reportingperiod,InnovationNewMaterialpreparedreportwithreferencetotheGRIStandards.GRI1UsedGRI1:Foundation2021InnovationNewMaterial2023Environmental,SocialandGovernanceReport9596GRIStandardsDisclosureChapter(s)intheReport2-19RemunerationpoliciesEmpoweringEmployeesGrowth2-20Processtodetermineremuneration2-21Annualtotalcompensationratio/GRI2Strategy,Policies,andPractices2-22StatementonsustainabledevelopmentstrategyMessagefromtheChairman2-23PolicycommitmentsStrengtheningBusinessEthicsConstruction,EmpoweringEmployeesGrowth2-24EmbeddingpolicycommitmentsStrengtheningBusinessEthicsConstruction2-25Processestoremediatenegativeimpacts2-26MechanismsforseekingadviceandraisingconcernsStrengtheningBusinessEthicsConstruction2-27CompliancewithlawsandregulationsNomajorincidentsofviolation2-28Membershipassociations/GRI2StakeholderEngagement2-29ApproachtostakeholderengagementCommunicationswithstakeholders2-30CollectivebargainingagreementsEmpoweringEmployeesGrowthGRI3MaterialTopics3-1ProcesstodeterminematerialtopicsCommunicationswithstakeholders,Materialityissueanalysis3-2ListofmaterialtopicsCommunicationswithstakeholders,Materialityissueanalysis3-3Managementofmaterialtopics/GRI201:EconomicPerformance201-1DirecteconomicvaluegeneratedanddistributedInnovationNewMaterial2023AnnualReport201-2FinancialimplicationsandotherrisksandopportunitiesduetoclimatechangeActivelyrespondingtoclimatechange201-3DefinedbenefitplanobligationsandotherretirementplansEmpoweringEmployeesGrowth201-4Financialassistancereceivedfromgovernment/GRI202:MarketPresence202-1Ratiosofstandardentrylevelwagebygendercomparedtolocalminimumwage/GRIStandardsDisclosureChapter(s)intheReport202-2Proportionofseniormanagementhiredfromthelocalcommunity/GRI203:IndirectEconomicImpacts203-1InfrastructureinvestmentsandservicessupportedFacilitatingHarmoniousSocialDevelopment203-2SignificantindirecteconomicimpactsFacilitatingHarmoniousSocialDevelopmentGRI204:ProcurementPractices204-1ProportionofspendingonlocalsuppliersKeyESGPerformancesGRI205:Anti-Corruption205-1OperationsassessedforrisksrelatedtocorruptionStrengtheningBusinessEthicsConstruction205-2Communicationandtrainingaboutanti-corruptionpoliciesandproceduresStrengtheningBusinessEthicsConstruction205-3ConfirmedincidentsofcorruptionandactionstakenStrengtheningBusinessEthicsConstructionGRI206:Anti-CompetitiveBehavior206-1Legalactionsforanti-competitivebehavior,anti-trust,andmonopolypracticesStrengtheningBusinessEthicsConstructionGRI207:Tax207-1Approachtotax/207-2Taxgovernance,control,andriskmanagement/207-3Stakeholderengagementandmanagementofconcernsrelatedtotax/207-4Country-by-countryreporting/GRI301:Materials301-1MaterialsusedbyweightorvolumeDesigningGreenandLow-carbonproducts,PracticingEnvironmentalProtection301-2RecycledinputmaterialsusedDesigningGreenandLow-carbonproducts,PracticingEnvironmentalProtection301-3ReclaimedproductsandtheirpackagingmaterialsDesigningGreenandLow-carbonproducts,PracticingEnvironmentalProtectionInnovationNewMaterial2023Environmental,SocialandGovernanceReport9798GRIStandardsDisclosureChapter(s)intheReportGRI302:Energy302-1EnergyconsumptionwithintheorganizationKeyESGPerformances302-2Energyconsumptionoutsideoftheorganization/302-3EnergyintensityKeyESGPerformances302-4ReductionofenergyconsumptionDesigningGreenandLow-carbonproducts302-5ReductionsinenergyrequirementsofproductsandservicesDesigningGreenandLow-carbonproductsGRI303:WaterandEffluents303-1InteractionswithwaterasasharedresourcePracticingEnvironmentalProtection303-2Managementofwaterdischarge-relatedimpactsPracticingEnvironmentalProtection303-3WaterwithdrawalKeyESGPerformances303-4WaterdischargeKeyESGPerformances303-5WaterconsumptionKeyESGPerformancesGRI304:Biodiversity304-1Operationalsitesowned,leased,managedin,oradjacentto,protectedareasandareasofhighbiodiversityvalueoutsideprotectedareasNotapplicable304-2Significantimpactsofactivities,productsandservicesonbiodiversityNotapplicable304-3HabitatsprotectedorrestoredNotapplicable304-4IUCNRedListspeciesandnationalconservationlistspecieswithhabitatsinareasaffectedbyoperationsNotapplicableGRI305:Emissions305-1Direct(Scope1)GHGemissionsKeyESGPerformances305-2Energyindirect(Scope2)GHGemissionsKeyESGPerformances305-3Otherindirect(Scope3)GHGemissions/305-4GHGemissionsintensityKeyESGPerformances305-5ReductionofGHGemissionsInnovationNewMaterialsinFigures,DesigningGreenandLow-carbonproducts305-6Emissionsofozone-depletingsubstances(ODS)/305-7Nitrogenoxides(NOx),sulfuroxides(SOx),andothersignificantairemissionsKeyESGPerformancesGRIStandardsDisclosureChapter(s)intheReportGRI306:Waste306-1Wastegenerationandsignificantwaste-relatedimpactsPracticingEnvironmentalProtection306-2Managementofsignificantwaste-relatedimpactsPracticingEnvironmentalProtection306-3WastegeneratedKeyESGPerformances306-4WastedivertedfromdisposalKeyESGPerformances306-5WastedirectedtodisposalKeyESGPerformancesGRI308:SupplierEnvironmentalAssessment308-1NewsuppliersthatwerescreenedusingenvironmentalcriteriaBuildingaSustainableValueChain308-2NegativeenvironmentalimpactsinthesupplychainsandactionstobetakenBuildingaSustainableValueChainGRI401:Employment401-2Benefitsprovidedtofull-timeemployeesthatarenotprovidedtotemporaryorparttimeemployeesEmpoweringEmployees'GrowthGRI402:Labor/ManagementRelations402-1Minimumnoticeperiodsregardingoperationalchanges/GRI403:OccupationalHealthandSafety403-1OccupationalhealthandsafetymanagementsystemProtectingWorkSafety403-2Hazardidentification,riskassessment,andincidentinvestigationProtectingWorkSafety403-3OccupationalhealthservicesProtectingWorkSafety403-4Workerparticipation,consultation,andcommunicationonoccupationalhealthandsafetyProtectingWorkSafety403-5WorkertrainingonoccupationalhealthandsafetyProtectingWorkSafety403-6PromotionofworkerhealthProtectingWorkSafety403-7PreventionandmitigationofoccupationalhealthandsafetyimpactsdirectlylinkedbybusinessrelationshipsProtectingWorkSafetyInnovationNewMaterial2023Environmental,SocialandGovernanceReport99100GRIStandardDisclosureChapter(s)intheReportGRI411:RightsofIndigenousPeoples411-1IncidentsofviolationsinvolvingrightsofindigenouspeoplesNotApplicableGRI413:LocalCommunities413-1Operationswithlocalcommunityengagement,impactassessments,anddevelopmentprogramsFacilitatingHarmoniousSocialDevelopment413-2Operationswithsignificantactualandpotentialnegativeimpactsonlocalcommunities/GRI414:SupplierSocialAssessment414-1NewsuppliersthatwerescreenedusingsocialcriteriaBuildingaSustainableValueChain414-2NegativesocialimpactsinthesupplychainandactionstakenBuildingaSustainableValueChainGRI415:PublicPolicy415-1PoliticalcontributionsNotApplicableGRI416:CustomerHealthandSafety416-1Assessmentofthehealthandsafetyimpactsofproductandservicecategories/416-2Incidentsofnon-complianceconcerningthehealthandsafetyimpactsofproductsandservicesNooccurrenceofsuchincidentsGRI417:MarketingandLabeling417-1RequirementsforproductandserviceinformationandlabelingStrivingforExcellentQuality417-2Incidentsofnon-complianceconcerningproductandserviceinformationandlabelingNooccurrenceofsuchincidents417-3Incidentsofnon-complianceconcerningmarketingcommunicationsNooccurrenceofsuchincidentsGRI418:CustomerPrivacy418-1SubstantiatedcomplaintsconcerningbreachesofcustomerprivacyandlossesofcustomerdataProvidingQualityServicesGRIStandardDisclosureChapter(s)intheReport403-8WorkerscoveredbyanoccupationalhealthandsafetymanagementsystemProtectingWorkSafety403-9Work-relatedinjuriesProtectingWorkSafety403-10Work-relatedillhealthProtectingWorkSafetyGRI404:TrainingandEducation404-1Averagehoursoftrainingperyearperemployee/404-2ProgramsforupgradingemployeeskillsandtransitionassistanceprogramsEmpoweringEmployeeGrowth404-3Percentageofemployeesreceivingregularperformanceandcareerdevelopmentreviews/GRI405:DiversityandEqualOpportunities405-1DiversityofgovernancebodiesandemployeesKeyESGPerformances405-2Ratioofbasicsalaryandremunerationofwomentomen/GRI406:Non-discrimination406-1IncidentsofdiscriminationandcorrectiveactionstakenEmpoweringEmployeeGrowthGRI407:FreedomofAssociationandCollectiveBargaining407-1OperationsandsuppliersinwhichtherighttofreedomofassociationandcollectivebargainingmaybeatriskEmpoweringEmployeeGrowth,BuildingaSustainableValueChainGRI408:Childlabor408-1Operationsandsuppliersatsignificantriskforincidentsofchildlabor/GRI409:ForcedorCompulsoryLabor409-1OperationsandsuppliersatsignificantriskforincidentsofforcedorcompulsorylaborEmpoweringEmployeeGrowth,BuildingaSustainableValueChainGRI410:SecurityPractices410-1Securitypersonneltrainedinhumanrightspoliciesorprocedures/InnovationNewMaterial2023Environmental,SocialandGovernanceRepo。
7. rtEmail:zqb@innovationmetal.comTel:010-66536198Address:No.1808,Floor18,ExcelCentre,WudinghouStreet,XichengDistrict,BeijingInnovationNewMaterialTechnologyCo.,Ltd.2023Environmental,SocialandGovernanceReport<>/ColorImageDict<>/JPEG2000ColorACSImageDict<>/JPEG2000ColorImageDict<>/AntiAliasGrayImagesfalse/CropGrayImagestrue/GrayImageMinResolution300/GrayImageMinResolutionPolicy/OK/DownsampleGrayImagestrue/GrayImageDownsampleType/Bicubic/GrayImageResolution300/GrayImageDepth-1/GrayImageMinDownsampleDepth2/GrayImageDownsampleThreshold1.50000/EncodeGrayImagestrue/GrayImageFilter/DCTEncode/AutoFilterGrayImagestrue/GrayImageAutoFilterStrategy/JPEG/GrayACSImageDict<>/GrayImageDict<>/JPEG2000GrayACSImageDict<>/JPEG2000GrayImageDict<>/AntiAliasMonoImagesfalse/CropMonoImagestrue/MonoImageMinResolution1200/MonoImageMinResolutionPolicy/OK/DownsampleMonoImagestrue/MonoImageDownsampleType/Bicubic/MonoImageResolution1200/MonoImageDepth-1/MonoImageDownsampleThreshold1.50000/EncodeMonoImagestrue/MonoImageFilter/CCITTFaxEncode/MonoImageDict<>/AllowPSXObjectsfalse/CheckCompliance[/None]/PDFX1aCheckfalse/PDFX3Checkfalse/PDFXCompliantPDFOnlyfalse/PDFXNoTrimBoxErrortrue/PDFXTrimBoxToMediaBoxOffset[0.000000.000000.000000.00000]/PDFXSetBleedBoxToMediaBoxtrue/PDFXBleedBoxToTrimBoxOffset[0.000000.000000.000000.00000]/PDFXOutputIntentProfile()/PDFXOutputConditionIdentifier()/PDFXOutputCondition()/PDFXRegistryName()/PDFXTrapped/False/CreateJDFFilefalse/Description</BGR
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