Contents
About This ReportAbout Nanshan AluminiumAddress from Chairman of Board
Steady Progress, Building aSustainable EnterpriseCorporate governanceIntegrity managementRisk managementInformation security and privacy protection
Topic: Embracing a GreenAluminium Revolution throughCircular Low-carbon PracticesLow-carbon manufacturing practicesCircular industry layout
Guiding Principles for CorporateGovernance, Paving the Way for aSustainable Future TogetherESG governance frameworkCommunication with stakeholdersESG materiality issuesPerformance of UN SDGs
Annex I: Reader Feedback FormAnnex II: ESG Policies and Key Systems
Adhering to Tradition whileInnovating and Providing Qualityand Wholehearted ServicesProduct qualityInnovative research and developmentCustomer serviceMaking progress together
People First, Standing byEach Other in Joint HandsUrgent needs of talentsEmployee careSafety production
Harmonious Coexistence,Safeguarding the NaturalEnvironmentAddressing climate changeEnvironmental management
Shouldering Responsibility,Co-creating a Better Future
Responsible supply chainContributing to society
About This Report
Nanshan Aluminium has upgraded the ESG disclosure form and scope and released the environment, society and governance (ESG) report since2021. Since the data here include the report released before 2021 (social responsibility reports or sustainable development reports), the reportreleased in 2023 is the 14th environment, society and governance (ESG) report released after the listing of Nanshan Aluminium.
Report descriptionThis Report is the full version of the 14th Environmental, Social and Governance Report (hereinafter referred to as "Full Versionof ESG Report" or "this Report") issued by Shandong Nanshan Aluminium Co., Ltd.,
which is an annual report focusing on themanagement, practice and performance of the Company in respect of environment, society and governance (ESG). In February2024, we published the summary version of 2023 Environmental, Social and Governance Report of Shandong Nanshan AluminiumCo., Ltd. (hereinafter referred to as "Summary Version of ESG Report"). Compared to the Summary Version of ESG Report, the FullVersion of ESG Report provides detailed insights into management, practice, performance, and annual quantitative data statistics.Organisational scope of the Report
The Report is about Shandong Nanshan Aluminium Co., Ltd. and its subsidiaries. including Longkou Donghai Alumina Co.,Ltd.(hereafter referred to as "Alumina Company"), Nanshan Aluminium Branch of Shandong Nanshan Aluminium Co., Ltd.(hereafter referred to as "Electrolytic Aluminium Company"), Longkou Nanshan Aluminium Rolling New Material Co., Ltd.(hereafter referred to as "Aluminium Rolling Company"), Plate Branch of Shandong Nanshan Aluminium Co., Ltd. (hereafterreferred to as "Plate Company"), Yantai Donghai Aluminium Foil Co., Ltd. (hereafter referred to as "Aluminium Foil Company"),Aluminium Pro?le Plant of Nanshan Aluminium (hereafter referred to as "Aluminium Pro?le Plant"), Yantai Nanshan AluminiumNew Material Co., Ltd. (hereafter referred to as "Aluminium New Material Company"), Longkou Nanshan Recycled Aluminium Co.,Ltd. (hereafter referred to as "Recycled Aluminium Company"), Donghai Thermal Power Plant, American Plant, and IndonesianPlant. For details on the statistic scope of environmental data, please refer to the footnotes in each chapter. In this Report, "we","the Company" and "Nanshan Aluminium" all refer to "Shandong Nanshan Aluminium Co., Ltd.". Unless otherwise speci?ed, allcurrencies mentioned in this Report refer to RMB.
Report time frame
The report covers the period from January 1st, 2023 to December 31st, 2023 (hereinafter referred to as the "report period"), somedating back to previous years and covering the ?rst quarter of 2024.
Basis of preparationPrepared with reference to theGuidelines No. 14 of Shanghai Stock Exchange for Self-regulation of Listed Companies -Sustainability Report (Trial)and other relevant documents, this Report also considers the United Nations Sustainable DevelopmentGoals (UN SDGs), Morgan Stanley Capital International Environmental, Social, and Governance rating (MSCI ESG rating), and otherrating indicators.
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Data source and reliability assurance
The information and data disclosed in this Report are from statistical reports and official documents of the Company andhave been audited by relevant departments. The Company guarantees that this Report does not involve any false records andmisleading statements and will be liable for the authenticity, accuracy and integrity of the contents. This Report is available inboth Simpli?ed Chinese and English versions for readers to consult. In instances where there may be confusion or di?erences ininterpretation between the two texts, the Simpli?ed Chinese version shall prevail. Should there be any disparities between the fulland summary versions of the ESG report, the former shall prevail.Report preparation process
The preparation process of this Report covers establishment of work team, data collection, interviews with and questionnaireinquiry on stakeholders, framework determination, report preparation, report design, audit by department and seniormanagement, etc.Con?rmation and approvalThis Report was audited and approved by the Board of Directors and senior leadership of the Company on April 29th, 2024.Report acquisitionThis Report is available for consulting and downloading on the Company's website: www.600219.com.cn.For further inquiries, comments or suggestions on this Report, please contact the Company by:
Email: 600219@nanshan.com.cnTel.: 0535-8666352Address: Nanshan Village, Dongjiang Town, Longkou, Yantai City,
Shandong Province
About This Report
About Nanshan AluminiumSince its listing in 1999, Nanshan Aluminium has deeply implemented the development strategy of "innovation-driven, high-end manufacturing, and intensive processing". Rooted in the aluminium processing industry, it continuously provides high-quality aluminium alloy products for aviation, shipbuilding, rail transit, automobiles and tanks (cans), and other ?elds with stronginnovation, complete aluminium processing industrial chains, and high-quality products and services and contributes to thesustainable development of the national aluminium industry.
Electric Power
Alumina
ElectrolyticAluminium
Melting & Casting
Recycled Aluminum
Aluminium Pro?le
Flat-rolled Product
| Hot RollingCold RollingAviation SheetAviation PlateFoil Rolling |
Schematic Diagram of Nanshan Aluminium Industrial Chain
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Industry developmentNanshan Aluminium adheres to the development concept of "highlighting the main business and chain operation", focusing onbuilding a complete industrial chain centred on aluminium processing. It covers businesses such as thermal power, alumina,electrolytic aluminium, melting & casting, aluminium pro?les/hot rolling-cold rolling-foil rolling, and scrap aluminium recovery(recycling). This lays a solid foundation for the Company's high-quality and e?cient development.
Electric Power
Alumina
ElectrolyticAluminium
Melting & Casting
Recycled Aluminum
Aluminium Pro?le
Industrial Aluminium Pro?le
Civil Building Materials
Deep-processingLightweight of Automobile
System Doors & Windows
Aviation Pro?lesAerospace Parts
Auto Sheet,Can Stock
Flat-rolled Product
Hot Rolling
Cold Rolling
Aviation Sheet
Aviation Plate
Foil Rolling
About Nanshan Aluminium
With a complete industrial chain of aluminium processing as its foundation, Nanshan Aluminium follows the path of "technologicalinnovation + industrial development". It proactively analyses market changes, achieves breakthrough development with highvalue-added products represented by auto sheets and aviation plates, and then constructs a high-quality, multi-level and high-endproduct series matrix.
At present, the main production sites of Nanshan Aluminium include Alumina Company, Electrolytic Aluminium Company,Aluminium Rolling Company, Plate Company, and Donghai Thermal Power Plant. We have established branches or offices inBeijing, Tianjin, Shanghai, Shenzhen, Hainan and Hong Kong, as well as branches or subsidiaries in the United States, Australia,Italy, Singapore, Germany and Indonesia.Moving forwards, plans for Nanshan Aluminium are to continue its strategy of domestic high-end manufacturing and internationalexpansion, working together both at home and abroad to strengthen our market presence and improve business performance.
High-end Products of Nanshan Aluminium
Auto sheets: As a leader in aluminium ABS manufacturing in China, Nanshan Aluminium seizes the trendof lightweight of automobile and the advantage of high industry access thresholds. It actively promotescerti?cation with automotive manufacturers, becoming a high-end aluminium product supplier for joint-venture, foreign-funded, independent-brand, and emerging automotive manufacturers.Aviation plates: Nanshan Aluminium aims for complete localisation of aluminium plates & sheets for civilaircrafts as its construction goal. While breaking through multiple technical barriers in the industry, it hassmoothly passed aeronautical material certi?cation programs and become a major manufacturing entityfor the localisation demonstration platform of raw materials for China's homemade large aircrafts.Can body and end stock: As a leading enterprise in the can stock market, Nanshan Aluminium stands outin the market with stable quality, delivery times, and high-quality services. During the report period, theCompany's domestic market share of products has also increased.Power battery foil: Nanshan Aluminium deeply explores the high-end product market of power battery foil,actively promotes the research and development of high-performance power battery foil, and consolidatesits industry position in the ?eld of power battery foil with high-pro?t margin products.Packaging foil: Nanshan Aluminium continues to lay out in the aseptic packaging market, establishing long-term strategic co-operation relationships with several internationally renowned soft packaging companies.
Aluminium foil
Architectural pro?le: Nanshan Aluminium is steadily venturing into the civil material market, leveragingits well-equipped facilities, top-notch research and development teams, and cost advantages across theentire industrial chain. It's actively exploring retail opportunities in home decoration and the system doors& windows market, earning recognition and favor from high-quality downstream customers.Industrial pro?le: Nanshan Aluminium focuses on the aerospace and other major transportation ?elds asits main expansion direction, continuously researching and developing mid-to-high-end aluminium pro?leproducts applied in aerospace, high-speed rail, automobiles, and other high-end manufacturing industries.
Aluminium pro?le
Aluminium ?at-rolled products
Nanshan Aluminium, combining the "carbon peaking and carbon neutrality goals", actively promotes thedevelopment of high-quality, grade-keeping and comprehensive utilisation project of recycled aluminium, so asto achieve energy conservation, emission reduction, and clean production in the aluminium industrial chain.Recycled aluminium
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Enterprise strategyAs a privately-owned enterprise with a rich 30-year history, Nanshan Aluminium thrives on innovation with an objective of"building the world-class high-end aluminium foundation". We are seizing the opportunities presented by the structural reformson the supply side and new and old kinetic energy conversion in China. Leveraging our strong position in the high-end aluminiumindustry, along with our industrial cluster advantages and resource utilisation strengths, we are dedicated to maintaining stabilityin our traditional industries while expanding into high-end product sectors to solidify our position as an industry leader. In parallel,the Company is committed to the development strategy of "high-end manufacturing + integrated industrial chain". This involvescontinuous expansion of our production capacity for high-value-added products such as auto sheets and aviation plates, as wellas the enhancement of our aluminium deep-processing capabilities. We are steadily promoting the transformation of "high-endmanufacturing" and progressing towards our goal of becoming a trusted brand in the aluminium industry, contributing to therevitalisation of the national aluminium sector and supporting local economic growth with our high-quality contributions.
Strategic Development Aspects of Nanshan Aluminium
Ensure that all services are provided for certi?ed productsand strengthen co-operation between both parties.Keep leveraging the advantages of the industrial chain toadvance the research and development and large-scaleproduction of aluminium products for aviation, andcontinuously improve production processes to supportthe localisation of materials for civil aircrafts.Actively expand the scope and speci?cations of productcerti?cation based on years of technical expertise.
Stabilise and strengthen the co-operation relationshipwith old customers while increasing efforts to developnew markets and customers.Meet customers' sustainable development needs whilestabilising the deployment of ?at-rolled products.
Continuously promote the quali?cation progress of automobile OEMs for ABS outers and establish the batch supply.Explore potential customers with high-quality products, becoming a supplier of more high-end aluminium products in theautomotive industry.Accelerate the market layout, focus on the expansion of domestic market share, and promote the layout in overseas markets.
Aspect of auto sheets
Aspect of aviation materialsOther ?at-rolled products
About Nanshan Aluminium
Awards and recognition
In 2023, Nanshan Aluminium garnered broad recognition and encouragement from society, thanks to its remarkable achievementsin the areas of environment, society and governance. Furthermore, the Company continued to explore its innovative capabilities,introducing several patents and facilitating the implementation of innovative outcomes. This effort aimed to provide freshproducts, novel ideas and innovative methods, thereby fostering the rapid and steady growth of the aluminium processingindustry.
China National Intellectual Property
Administration
Nanshan Aluminium's patent,
An Aluminium Alloy Material andPreparation Method Suitable for AutoBody Sheet Manufacturing,won theChina Patent Silver Award.
China Nonferrous Metals Industry AssociationNanshan Aluminium's 11 products werehonored with the "Gold Cup Award" for thephysical quality of nonferrous metal products.Nanshan Aluminium was successfully selectedas one of the ?rst batch of national evaluationenterprises for green-power aluminium.
Shandong Administration for
Market Regulation
Shandong Provincial High-endBrand Cultivation Enterprise
Department of Industry and InformationTechnology of Shandong ProvinceShandong Province Quality Benchmark
The People's Government of Shandong
ProvinceShandong's First Batch of Green, Low-carbon, High-quality Development Pilots
Yantai Municipal Bureau of Industryand Information TechnologyDonghai Alumina was selected inthe list of Yantai "Green Factory"
Leading Group for Promoting the Development ofNon-public-owned Economy in Shandong ProvinceMr. Lyu Zhengfeng, Chairman of Board and GeneralManager of Nanshan Aluminium, was awarded theleader of the "Leading Enterprises on the Frontline:
Top 100 Private Entrepreneurs".
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Key Awards and Recognition of Nanshan Aluminium in 2023
Performance Evaluation (Level 4A) for BoardSecretary of Listed Companies
China Preferred Employer of the Year 2023 by Zhaopin
"China's Top 500 Listed Companies in Market Value in 2022"
The third prize of 2023 Shandong New and Old Kinetic Energy
Conversion High Value Patent Cultivation Competition
Best Practice Award for AI Application by the Board
O?ce in 2023
The 5th NewFortune Best Listed Company
"2022 China Enterprise Credit Top 500" and other multiple lists
Yantai High-quality High-Value Patent Project
About Nanshan Aluminium
Address from Chairman of Board
“
”
The year of 2023 marked a pivotal year for the implementationof the "14th Five-Year Plan". Faced with new challengesand opportunities for the high-quality and sustainabledevelopment of the aluminium industry, Nanshan Aluminiumhas remained steadfast in its strategic development idea of"innovation-driven, high-end manufacturing, and intensiveprocessing". We've ramped up investment in criticaltechnology areas, fortified our foundation in superiorproducts, and stayed committed to elevating industrialsupply standards while embracing green practices.With unwavering determination and a forward-lookingmindset, we've delivered exceptional results, contributingsigni?cantly to our industry.In recent years, the global spotlight on climate change hasintensified. Aluminium products, with their attributes oflightweight, durable, conductive, and recyclable, have madethem increasingly indispensable in advancing global effortstoward low-carbon and sustainable development. Drawingon our accumulated advantages in the aluminium industry,including our strategic positioning, industrial clusters, andresource utilisation, Nanshan Aluminium is actively promotinglow-carbon manufacturing and circular industry practices.Collaborating closely with our customers, we've pioneeredinnovative co-operation models. Our establishment ofRecycled Aluminium Company, with an annual capacity of100,000 tons and focusing on the recycling of graded wastesfrom downstream customers, underscores our commitmentto building a closed-loop system from alumina processingto electrolytic aluminium, high-end manufacturing, andaluminium recycling, providing high-quality, eco-friendly, andrecyclable solutions to the new energy sector and beyond.Additionally, we're transferring 336,000 tons of electrolyticaluminium capacity indicators, signi?cantly reducing energyconsumption and emissions in the upstream industrial chain,thus accelerating our journey towards green and sustainabledevelopment.
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Nanshan Aluminium continues to enhance its ESG management system, committing to fully integrating ESG core
principles and standards into the Company's development strategies and daily operations. In 2023, we introduced the
Sustainability (ESG) Committee Working System, establishing a clear ESG governance structure to enhance the Company'sESG accountability capabilities. We systematically advance business ethics audits, re?ne internal supervision and risk controlmechanisms, foster an environment of integrity and transparency, and elevate corporate governance standards.Nanshan Aluminium remains committed to driving industry transformation through technological innovation andsetting industry benchmarks through craftsmanship and quality. Guided by market trends, while consolidating our positionin the traditional aluminium product market, we focus on high-end manufacturing, particularly developing high-value-addedproducts such as auto sheets, aviation plates, and high-performance power battery foils, continuously strengthening ourleading position in advantageous industries. We also focus on the forefront of industry development, increasing investment inresearch and development innovation, actively pursuing key core technologies and "three-characteristics" technologies thatare disruptive, forward-looking, and breakthrough, contributing to the construction of a new industrial development patternthat meets the requirements of the new era.
We consistently adhere to the concept of "creating a better future for enterprise through green manufacturing",and steadily promote the green transformation of the Company. We integrate climate change factors into Nanshan Aluminium'sstrategic planning and daily operations, setting an example for the promotion of high-quality green development in China'snon-ferrous metal industry. For two consecutive years, we have participated in the climate change questionnaire disclosure ofCarbon Disclosure Project (CDP) and received a continuous Level "B" management evaluation from CDP in 2023. The Companycontinuously enhances pollution prevention and control and environmental risk prevention capabilities, conducts ongoingwater resource risk assessments, and leverages advanced facilities and equipment to make green and low-carbon practices thevibrant backdrop for Nanshan Aluminium's high-quality development.
Over the years, Nanshan Aluminium has been proactive in responding to and championing the Belt and RoadInitiative. We've expanded our footprint in overseas industrial chains. During the report period, our 2-million-ton alumina projectin Indonesia's Bintan Island has successfully commenced operations, with plans underway to extend downstream industrial chains,laying a solid foundation for establishing a world-class high-end aluminium foundation. Guided by the sustainable developmentconcept, we're empowering overseas industrial chain construction through ESG practices. Our Indonesian Plant maintains a vigilantwatch over the ecological environment impact of full life cycle activities, fostering deep-rooted green partnerships and steering acollective course toward sustainable development. Through practical actions, we're fostering economic and cultural prosperity bothat home and abroad. By 2023, our Indonesian Plant had created over 2,000 local job opportunities and contributed signi?cantly toaddressing critical local needs such as medical supplies. Transitioning from hard connectivity to soft connectivity and people-to-people connectivity, we're fostering harmonious development, mutual bene?t, and ultimately, prosperity for all.At Nanshan Aluminium, our core belief revolves around "people first, talents foremost". We're committed tofostering an employer brand that our employees trust, ensuring their rights and interests are upheld, and cultivating a workingenvironment rooted in mutual respect. Continuously re?ning our safety production responsibility system for all employeesand reward and punishment mechanisms for middle and senior leadership, we improve our health and safety cores, safeguardthe physical and mental health of our employees in multiple dimensions. By o?ering competitive remuneration, structuredtraining programs, and clear paths for advancement, we provide our employees with ample opportunities for personal growth,company development and industry advancement.Nanshan Aluminium firmly believes in progress through collaboration and sharing our successes with society.That's why we're dedicated to building a responsible supply chain, integrating the sustainable development concept intothe whole process of our procurement and supplier management processes. As we deepen our partnerships with suppliers,we encourage them to embrace sustainable practices. Additionally, we're committed to protecting rights and interests ofindigenous residents, preserving cultural heritage, and actively participating in community welfare initiatives, demonstratingour commitment to corporate citizenship with practical actions.Be harmonious and broad and aim for the highest. With a spirit of ambition, every member of Nanshan Aluminium isdedicated to advancing the ecological aluminium industrial chain and driving high-quality development in the aluminiumsector. As we embark on a new year, we're eager to join hands with partners from all sectors, explore innovative domestic andinternational strategies, and work tirelessly towards our vision of "building the world-class high-end aluminium foundation".Together, we're leading the charge to elevate the national aluminium industry from strength to greatness.
Chairman of Board of Nanshan Aluminium
Lyu Zhengfeng
Address from Chairman of Board
Embracing a GreenAluminium Revolutionthrough Circular Low-carbonPractices
Topic
Aluminium is a nonferrous metal with production and utilization quantities closely following steel globally.However, it also holds the unfortunate title of being the ?rst emission source of greenhouse gases within thenonferrous industry. As the issue of global climate change gains increasing urgency, aluminium products, withtheir attributes of lightweight, durable, conductive, and recyclable, position as a crucial material for low-carbonsustainable economic development. Hence, exploring pathways of carbon emission reduction in the aluminiumindustry becomes imperative for achieving China's goals of carbon peaking and carbon neutrality.Nanshan Aluminium steadfastly upholds the business philosophy of "green, energy conservation, emissionreduction and efficiency improvement". Drawing on our accumulated advantages in the aluminium industry,including our strategic positioning, industrial clusters, and advantages of resource utilisation, NanshanAluminium is committed to discovering a greener and more sustainable trajectory for aluminium industrydevelopment pathway. Pioneering the way forward, we actively promote the sustainable development of theindustrial chain of aluminium via low-carbon manufacturing and the adoption of circular industry layouts, withenergy conservation, carbon reduction, and clean reuse forming the twin pillars of our strategy. Collaboratingclosely with our customers, we aim to introduce high-quality, green, and recyclable "aluminium" solutions to adiverse array of industrial sectors.
1414
Green electricity and greencerti?cate procurement
Roof photovoltaic application
Aluminium Foil Company will establish a photovoltaicpower project, expected to generate approximately2,900 MWh
In line with the customers' carbon reductiontargets and requirements, we've calculatedthe electric power demand during theproduction and replaced thermal powerwith purchased green electricity.During the report period, wepurchased20,000,000kWh
of international green certi?cates.
Clean energy utilisation
Electric power serves as the lifeblood of the electrolytic aluminiumsector. Nanshan Aluminium has adopted a strategic approach thatintegrates self-owned and self-supplied power plants in DonghaiThermal Power Plant, alongside participation in coal-electricity-aluminium integrated models through joint ventures. This approachnot only enhances economic efficiency but also strengthens ourcompetitive position in the market. In response to the push for carbonpeaking and carbon neutrality goals, the electrolytic aluminium sectorurgently needs to transform its power consumption structure.Nanshan Aluminium is actively addressing the energy utilisationstructure goals outlined in theImplementation Plan for Carbon Peakingin the Nonferrous Metal Industry, and gradually increasing the use ofgreen electricity in the electrolytic aluminium production to unlock itsemission reduction potential fully and overcome the challenges posed
by both the natural ecological constraints and the capacity expansion inthe decarbonisation transformation of the electrolytic aluminium sector.Nanshan Aluminium is focusing on two main strategies: clean-up of gridand clean-up of self-generated electricity. It plans to achieve self-supplyby procuring green electricity and investing in distributed resourceslike photovoltaics, thereby replacing the use of self-generated thermalpower plants and achieving the clean-up of grid and self-generatedelectricity.Looking ahead, Nanshan Aluminium intends to replace its currentenergy supply with green and low-carbon energy such as nuclearpower in Shandong Province. Leveraging the advantages of windpower and nuclear power in the region, along with of rooftopphotovoltaics, the Company aims to reach its green, low-carbongoals more swiftly.
Low-carbon manufacturing practices
Achieving carbon peaking and carbon neutrality hinges on the energy conservation and carbon-reduction transformation and upgrade withinthe nonferrous metal industry. To propel the industry towards greener practices, the government has introduced a slew of policies, includingSeveral Opinions on Strict Energy E?ciency Constraints to Promote Energy Conservation and Carbon Reduction in Key Areas, theDevelopmentPlan for the Raw Materials Industry in the 14th Five-Year Plan Period, and theImplementation Plan for Carbon Peaking in the Nonferrous MetalIndustry. These policies outline clear targets for improving energy e?ciency and reducing carbon emissions in the electrolytic aluminium sector.Additionally, they incentivise companies to adopt clean energy sources, promote energy conservation technology, and encourage high-energy-consuming enterprises to engage in demand-side response for electric power.As a world-leading complete aluminium processing industrial chain enterprise, Nanshan Aluminium actively responds to theParis Agreement, NationalClimate Change Adaptation Strategy of Chinese governmentand targets and pathways of greenhouse gas emission reduction set by China NonferrousMetals Industry Association and International Aluminium Institute, aiming to facilitate the green transformation. We have published theGreenhouseGas Emission Targets and Implementation Plan, including the short and medium-term emission target plan of greenhouse gas of unit product andemission reduction measures. Furthermore, we have completed ISO 14067 product carbon footprint certi?cations for nine product categories. Utilisingthe SimaPro software, a global leading lifecycle assessment and modelling, we've conducted full life cycle evaluations and modelling of pro?le products.In 2023, we successfully registered with EPD International in Sweden for both architectural and industrial pro?les. These e?orts serve as a model foradvancing the nonferrous metal industry towards high-quality and green development.
Plate Company can generate approximately24,550 MWh
We've also initiated distributed photovoltaic powergeneration projects on the roofs of the company buildings:
Aluminium Rolling Company can generate approximately
5,850
MWh
of photovoltaic power annually.
of photovoltaic power annually.
of photovoltaic power annually.
Embracing a Green Aluminium Revolution through Circular Low-carbon Practices
Energy conservation technology application
Nanshan Aluminium actively explores new technologies, equipment, materials, and processes for energy management, initiatinga series of technical optimisations and equipment upgrades for energy conservation and emission reduction in various businesssegments.
At the end of 2022, Electrolytic Aluminium Company jointlycarried out the energy conservation cell transformationproject with Northeastern University Engineering & ResearchInstitute. By adopting the graphite cathode phosphorus pigiron casting technology and upgrading the lined structureand material, the lined structure of electrolytic cells wasoptimised to improve stability, reduce comprehensiveenergy consumption of electrolytic cells, and consequentlylower greenhouse gas emissions. By 2023, ElectrolyticAluminium Company had completed the transformation of58 electrolytic cells.It is projected that by 2027, all electrolytic cells will beupgraded and transformed, reducing the comprehensive ACpower consumption of aluminium liquid by over 300kWh/t.Al. After completion, the annual electricity consumption isexpected to decrease by approximately 141,000,000 kWh,resulting in an annual reduction of carbon emissions by125,000 tons.
Case ｜ Energy conservation transformation of electrolytic cells of Electrolytic Aluminium Company
In 2023
It is projected that by 2027, all electrolytic cells will beupgraded and transformed
Electrolytic Aluminium Company had completed thetransformation of
electrolytic cells
Reducing the comprehensive AC power consumption ofaluminium liquid by
over
kWh/t.AlThe annual electricity consumption is expected todecrease by approximately141,000,000 kWhAn annual reduction of carbon emissions by125,000 tons
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Shutdown of outdated production facilitiesAgainst the backdrop of supply-side reforms and the "carbon peaking and carbon neutrality" strategy, regions like Southwest China andInner Mongolia with lower electric power costs, especially Southwest China with power structures conducive to low carbon production,are becoming focal points for China's electrolytic aluminium industry. Nanshan Aluminium is proactively responding to the NationalDevelopment and Reform Commission's directives outlined in theGuidance on Industrial Structural Adjustment. We decisively shutdown outdated production processes, technologies, and equipment, such as self-baking electrolytic cells and prebaked cells below160kA, by transferring electrolytic aluminium capacity indicators to the Southwest China. This initiative aims to continually adjust andoptimise industrial layout and asset structures.During the report period, Nanshan Aluminium completed the transfer of its entire 336,000 tons electrolytic aluminium capacityindicators. This involved transferring 78 units of 160kA prebaked electrolytic cells (with a rated capacity of 36,000 tons/year) and 412 unitsof 300kA prebaked cells (with a rated capacity of 300,000 tons/year), along with some supporting carbon production lines. Followingthese transfers, Nanshan Aluminium plans to continue reducing high carbon emissions by procuring aluminum ingots produced withgreen electricity and clean energy sources like hydropower, and expanding its recycled aluminium capacity. This strategy also aligns withmeeting ongoing customer demand for low-carbon products.
Alumina Company implemented the optimisation projectof temperature reduction with evaporative circulating waterby adding 2 cooling towers to lower the temperature ofthe evaporative circulating water, compensating for the
insufficient cooling capacity of the evaporative circulatingwater and reducing steam consumption, leading to anannual reduction in steam consumption by 5,300m
.
Case ｜ Energy conservation transformation project of Alumina Company
The transformation of the smoke exhaust fan during theEDT rolling mill downtime in the cold rolling workshopcan save 340,161kWh of electricity annually.
The transformation of the heat exchange system cansave 212,500kWh of electricity annually;The transformation of the start-stop button for thenewly added fan on the 2# tension levelling productionline WINCC screen can save 108,000kWh of electricityannually.
Plate CompanyAluminium Rolling Company
Embracing a Green Aluminium Revolution through Circular Low-carbon Practices
Circular industry layout
Recycled aluminium is a vital source of aluminium metal, obtained through the re-melting and refining of scrap aluminium,aluminium alloy materials, or aluminium-containing wastes. Nanshan Aluminium, in alignment with the national "carbon peakingand carbon neutrality goals", is actively empowering the recycled aluminium sector. We're driving forward the construction of high-quality, grade-keeping and comprehensive utilisation project of recycled aluminium. This aims to achieve energy conservation,emission reduction, and clean production of the aluminium industrial chain, meet downstream customers' demands for low-carbon and energy-e?cient products, and signi?cantly enhance the Company's competitiveness in customer acquisition.
Advantages of Recycled Aluminium Compared to Primary Aluminium
Grade-keeping and comprehensive utilisation ofrecycled aluminiumNanshan Aluminium established Recycled Aluminium Com-pany, focusing on processing and treating metal scraps anddebris. It primarily handles scraps from can body, can end,and auto sheet production plants, along with additionalmilling scraps of aviation plate etc. During the report period,the side side-well furnace and holding furnace productionlines were completed and put into operation. Using the sidewell furnace, main raw materials like aluminium scrap aremelted and purified with high-purity gas to produce high-quality aluminium ingots for aviation materials. This achievesgrade-keeping recycling of hard alloy aluminium scraps. Uponcompletion, the project will enable effective keep gradingrecovery of scrap materials from various processing stages
within the Companyand downstream auto sheet and can stockprocessing stages. It aims to produce 100,000 tons of recycledaluminium annually, filling the gap of keep grading recoveryof high-quality recycled aluminium in Yantai and easing thesupply-demand imbalance of electrolytic aluminium. Moreover,Nanshan Aluminium will promote energy conservation, emissionreduction, and clean production throughout the industrialchain, forming a complete closed loop of "alumina-electrolyticaluminium-high-end manufacturing-recycled aluminium".This streamlined process, from new material delivery to wasterecovery, significantly shortens the cycle of closed-loop reuse,ensuring customers receive products that meet their objectivespromptly.
Coal consumption inalumina production
-100 %
Electric powerconsumption-98.96 %
Red mud disposal
-100 %
Freshwater consumption-93.75 %
Alumina
Electrolyticaluminium
High-endmanufacturing
Recycledaluminium
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
On November 24
th
, 2023, Erik Novaes, vice president of global packaging procurement at AB InBev, led a procurementteam to tour the Flat-Rolled Product Division. During the visit, the delegation explored Nanshan Aluminium'shigh-quality recycled aluminium project workshop and expressed admiration for the Company's achievements insustainable development. Both parties signed an agreement for strategic co-operation in the coming years, furtherstrengthening the longstanding strategic relationship developed over more than a decade of collaboration.
Case｜ Vice president of global packaging procurement at AB InBev visits Nanshan
Aluminium to explore the recycled aluminium project workshop
Embracing a Green Aluminium Revolution through Circular Low-carbon Practices
Practical implementation of recycled aluminiumNanshan Aluminium is continuously improving its procurement system and strengthening business partnerships with downstreamcanning companies and automotive manufacturers to extend the channel procurement network and ensure a consistent supply ofrecycled aluminium.
The Lightest Aluminium Beer Can
This includes aluminium collected from society, suchas old aluminium doors and windows, aluminiumparts from scraped vehicles, appliances, machinery, aswell as used aluminium cans and various aluminiumcontainers.
These are wastes and defective products generatedduring the aluminium processing and production ofaluminium products.
Old scrapaluminium
New scrapaluminium
330ml size cans only weigh
9.57
g
Collected graded wastes from downstream customers55,749.75 tAchieved portion of recycled aluminium
%
Lighter than the industry average
%Avergae carbon footprint per can
gReduction compared to the 2017 baseline
g
During the report period, Flat-Rolled Product Division collecteda total of 55,749.75t of graded wastes from downstreamcustomers. By using recycled aluminium, Flat-Rolled ProductDivision achieved an 18% proportion of recycled aluminium inits can packaging materials, leading to a remarkable reduction ofover 90% in carbon dioxide emissions compared to electrolyticaluminium. Some brands even surpassed the 20% target forrecycled aluminium usage.In terms of recycled aluminium product research anddevelopment, Nanshan Aluminium conducted a full productioncycle veri?cation of food safety risks under conditions of 100%recycled aluminium content. This successful veri?cation led tothe introduction of the group standard,Recycled AluminiumAlloy Sheets and Containers in Contact with Food(T/CNLIC0091-2023). Moreover, the Company has developed customisedproduction technology for products with high-recycledaluminium proportions. This technology has been applied inthe production of AB InBev Asia Paci?c's lightweight aluminiumcans. These cans weigh only 9.57g for the 330ml size, makingthem 4% lighter than the industry average. Additionally, theaverage carbon footprint is only 185g per can, representing areduction of nearly 100g compared to the 2017 baseline.
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Empowering the automotive industrial chainAgainst the background of "carbon neutrality", the degree of electri?cation and penetration of vehicle models are steadily increasing.The primary constraint on the development of new energy vehicles is their endurance mileage, making the demand for lightweightmaterials in electric vehicles more urgent. Therefore, the use of lightweight aluminium materials in new energy vehicles will become adecisive breakthrough. Additionally, aluminium alloys have strong corrosion resistance, are recyclable, and possess excellent recyclingcapabilities. Recycled aluminium has thus emerged as a key material for the current green and low-carbon development of thelightweight of automobile.Through years of technological accumulation and innovative research and development, Nanshan Aluminium has successfullybroken through the technological barriers in auto sheets. It has developed all-aluminium body products that meet the requirementsof lightweight of automobile, becoming the first company to break the monopoly of foreign competitors in supplying automotiveexterior panels. This not only represents the highest technology of all-aluminium bodies in China but also promotes the practice ofgreen circular economy. The use of all-aluminium bodies can reduce vehicle weight by nearly 30%, making the structure and chassisof vehicles more robust. With reduced vehicle weight, the centre of gravity of complete built-up vehicles is lowered, improving side-
All-aluminium Body ProductsLooking forward to the future, Nanshan Aluminium will remember its original intention and adhere to the sustainabledevelopment concept of "creating a better future for enterprise through green manufacturing". We will focus on improvingenvironmental benefits and resource utilisation efficiency from multiple perspectives, including raw material extraction,production processes, and end consumer consumption. Nanshan Aluminium will fully realise the goals of resource lightweighting,waste resource utilisation, recycling, and recovery, thereby empowering the green development of the entire industrial chain.
slip resistance, reducing inertia, shortening braking distances,extending endurance mileage, saving fuel and electricity, reducingfuel consumption, and aiding in energy transition. Furthermore,through the high-quality recycled aluminium project of NanshanAluminium, waste aluminium profile can be recycled multipletimes, giving vehicles energy conservation and environmentalprotection characteristics throughout their full life cycle.
The use of all-aluminium bodies can reduce vehicleweight by nearly
%
Embracing a Green Aluminium Revolution through Circular Low-carbon Practices
Guiding Principles forCorporate Governance,Paving the Way for aSustainable Future Together
Nanshan Aluminium remains committed to its founding principles, and promotesthe organic integration of the business philosophy "green, energy conservation,emission reduction and efficiency improvement" and the Company's strategy.The Company deepens the enterprise ESG governance constantly, and keepscommunication and exchange with all stakeholders, thus contributing to industrytransformation, upgrading and high-quality development.
ESG governance framework
Nanshan Aluminium systematically advances its ESG governance e?orts by establishing and continuously re?ning a governancestructure led by the Board of Directors. This framework lays the organisational groundwork for the Company's complianthandling of ESG-related matters. In 2023, Nanshan Aluminium published theWorking System of the Sustainability (ESG)Committee of Shandong Nanshan Aluminium Co., Ltd. on its o?cial website, aimed to ful?l its commitment to ESG by enhancingits comprehensive management approach and core competitiveness. This publication served to deepen the Company's ESGinitiatives and ensure the smooth implementation of its various mid-to-long-term ESG plans.The Nanshan Aluminium Sustainability (ESG) Committee comprises a director, a sustainable development o?cer, vice directors,and members. The director of the ESG Committee is held by the Company's Chairman of Board, with the vice directors being heldby directors, supervisors, deputy general managers, and heads of the Control Centre. Committee members are drawn from relevantdepartment heads and branch and subsidiary leaders within the Company. Additionally, the ESG Committee has established nineworking groups where each group is led by relevant department heads or branch and subsidiary leaders.
ESG Governance Framework of Nanshan Aluminium
Management Structure Chart of Sustainability (ESG) Committee
Special ESG training for members of the Board of Directors
During the report period, members of the Board of Directors of Nanshan Aluminium participated in the ESG trainingorganised by the Shanghai Stock Exchange. Through presentations on ESG development and exemplary cases from otherlisted companies, they gained a comprehensive understanding of the requirements for sustainable ESG development anddeepened their awareness of ESG principles.Moving forwards, Nanshan Aluminium will actively respond to regulatory directives, implement disclosure guidelinesintegrating the sustainable development concepts of the Shanghai Stock Exchange and the International SustainabilityStandards Board (ISSB), re?ne the Company's ESG reporting guidance, provide support for future ESG report preparation,and elevate the Company's overall ESG management standards.
Sustainability (ESG) Committee
Quality AssuranceWorking GroupTechnologicalInnovation WorkingGroup
Safety andEnvironmentalProtection WorkingGroupEnergy Conservationand CarbonReduction WorkingTeam
InformationSecurity WorkingGroupLabour RightsProtection WorkingGroupSupply GuaranteeWorking GroupBusiness EthicsWorking GroupCapital MarketsWorking Group
Board ofDirectors
As the highest responsible organisation of ESG issues, the Board of Directors is responsible forformulating, supervising and approving the ESG policies, strategies and objectives
Sustainability(ESG)Committee
Review ESG-related policies, regulations, standards, trends, and stakeholders' demandsAssess the importance of ESG matters for the Company and provide decision-making advisoryrecommendations to the Board of Directors for reviewSupervise the implementation of ESG initiatives and the execution of ESG strategies, review progresstowards achieving ESG goals and suggest improvements for the next phase of ESG workESGWorkingGroup
Divide into 9 working groups, i.e., Quality Assurance, Technological Innovation, Labour RightsProtection, Safety and Environmental Protection, Energy Conservation and Emission Reduction,Information Security, Supply Guarantee, Business Ethics, and Capital MarketsExecute committee resolutions, conduct regular reviews, and update the management system's mid-to-long-term sustainable development goals, and e?ectively implement various implementation strategies
Guiding Principles for Corporate Governance, Paving the Way for a Sustainable Future Together
Communication with stakeholders
Nanshan Aluminium consistently engages in dialogue with all stakeholders. The Company establishes diversi?ed communicationchannels according to the internal system ofControl Procedures for Information Exchange, Negotiation and Communicationandevaluates their e?ectiveness periodically, so as to keep well-informed about our operational and developmental progress. Our keystakeholders encompass government and regulatory bodies, investors, shareholders, suppliers, customers, research institutions,society and public, employees, environment, etc.Stakeholders Groups, Issues of Concerns and Communication ChannelsStakeholdersGroups
Issues of Concerns for Stakeholders Main Communication ChannelsGovernment/Regulators
Compliance management
Combat corruption and uphold integrity
Tax payment according to lawPeriodic information reportingSafety productionPollutant emission compliance
Investors/Shareholders
Business and operation situationResearch and development technology andinnovationBusiness layout and strategy planInformation disclosureCorporate governance and risk control
Hold Shareholders' MeetingsCompany investigation, roadshow/reverse roadshowRelease regular reports and hold achievement meetingsInvestor hotline and emailInteractive platform of Shanghai Stock Exchange
Suppliers
Fair competitionFormulation of industrial standardsSupply chain management
Enhance research and development capabilitiesStrengthen supply chain management and co-operationParticipate in industry activities
Customers
Business ethicsProduct quality
Collect customer opinionsHandle customer complaintsConduct customer satisfaction survey
Research
institutes
Scienti?c and technological innovation Industry-university-institute co-operationSociety/Public
Social public welfare
Community development
Maintain communication with government departmentsand social organisations
Employees
Employee health and safety
Employee remuneration and bene?ts
Employee development and training
Employee working environment
Hold conferences of employee representativesImplement employee trainingCollect and respond to opinions and suggestions ofemployees
Environment
Renewable energy resources
Energy conservation and emission reduction
HSE management improvement
Discharge and management of waste gas,
wastewater and solid waste
Communicate with and learn from environmentalprotection departments and social organisationsExchange advanced experience at home and abroadImprove production process
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
ESG materiality issuesIn 2023, we conducted in-depth discussions with our stakeholders to understand their core expectations and demands regardingNanshan Aluminium's ESG development, considering the Company's operational status and ESG trends in the nonferrousmetal industry. Through this process, we identi?ed 22 ESG issues with signi?cant impacts on Nanshan Aluminium. After carefulconsideration, we formulated a materiality issue matrix for the current year, providing a clear roadmap for implementing ESGstrategies at Nanshan Aluminium.Issue type Issue name Issue type Issue nameEnvironmental
Renewable energy resources
Social
Employee development and trainingDischarge and management of waste gas, wastewaterand solid waste
Employee remuneration and bene?tsEnergy conservation and emission reduction Employee health and safetyGreen and low-carbon transformation and capacity layout Product quality
Social
HSE management improvement
Governance
Compliance managementEmployee working environment Fair competitionScienti?c and technological innovation Business ethicsDriving the economic growth and social development Enterprise pro?tabilitySocial public welfare Combat corruption and uphold integritySupply chain management Information disclosureFormulation of industrial standards Corporate governance and risk control
Materiality Issues in 2023
Materiality Issue Matrix of Nanshan Aluminium in 2023
HSE management improvementEmployee working environmentScienti?c and technological innovationRenewable energy resources
Importance to the stakeholders of Nanshan Aluminium
High Low
HighRelevance to the strategy of Nanshan Aluminium
Compliance managementEmployee development and trainingEmployee remuneration and bene?tsEmployee health and safetyProduct qualityBusiness ethicsDischarge and management of waste gas,wastewater and solid wasteEnergy conservation and emission reductionGreen and low-carbon transformation and capacity layoutDriving the economic growth and social developmentSocial public welfareSupply chain managementFormulation of industrial standardsFair competition
Enterprise pro?tabilityCombat corruption and uphold integrityInformation disclosureCorporate governance and risk control
Environmental issues Social issues Governance issues
Guiding Principles for Corporate Governance, Paving the Way for a Sustainable Future Together
Nanshan Aluminium is dedicated to aligning the United Nations Sustainable DevelopmentGoals (UN SDGs) with materiality issues pertinent to our business growth, thereby supportingSDGs from various perspectives.Performance of UN SDGs
Conduct employee health check-ups and enhance the workingenvironmentProvide comprehensive humanistic care and welfare benefits to allemployees to enhance their happiness and satisfactionContinuously invest in the research and development of greenmaterials, and establish a research support system based on"government-industry-university-institute" with universities andresearch institutesUtilise the educational resources of Nanshan Training Academyto develop tailored training plans based on the growth needs ofemployees at various levels and positionsRefuse gender discrimination and insist on equality of men andwomen for employmentEstablish facilities such as medical rooms, maternity rest areas,and lactation rooms to demonstrate care and support for femaleemployees
Conduct water resource risk assessments to ensure stable supply forproduction operations in terms of water consumptionFollow the principle of "multi-purpose, grading and cascade utilisation"to minimise wastewater generation and reduce its impact on healthand the environmentPromote the carbon reduction in electric power through greenelectricity procurement and renewable energy resource utilisationPass the ISO 50001 energy management system certificationsuccessfully for many factories
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Strengthen research and development management system policiesto accelerate innovation in research and development from variousaspects such as internal research projects, industry-university-institute co-operation projects, and upstream and downstream co-operation in the industryBroaden diversi?ed co-operation channels to drive industry developmentand innovation
Prohibit child labour and forced labour, and take remedial measuresfor any violationsContinuously promote local employment, and provide numerousjob opportunities for residents in the operation areas, therebycontributing to local economic development
Foster a diverse workforce and maintain a zero-tolerance attitudetowards discrimination and harassment based on employee race,gender, colour, religion, etc.Address the needs of employees facing difficulties and organiseregular visits and assistance programs for them
Foster deep communication and collaboration with indigenous residentsand local organisations to ensure the responsible development andutilisation of minerals, water resources, and other natural assets, with fullrespect for and consent from indigenous residents
Strengthen the quality management system and actively pursueproduct quality certifications to promote a culture of qualityawareness among all employeesImprove customer communication and feedback channels, optimiseservice guarantees, and safeguard customer privacy, while establishinge?cient marketing management practiceConduct assessments of climate risks and opportunities, and activelyintegrate relevant ?ndings into corporate strategic planning e?ortsConduct internal carbon inventory, use the assessment results toformulate and publicly share theGreenhouse Gas Emission Targetsand Implementation Plans, and outline speci?c short- to medium-termemission reduction goals for unit products, along with correspondingemission reduction strategies and measures
Guiding Principles for Corporate Governance, Paving the Way for a Sustainable Future Together
Nanshan Aluminium understands that operating in compliance is essentialfor driving the Company's high-quality development. We remain committedto compliance, continually refining our corporate governance framework. Weeffectively implement anti-corruption measures, complaint reporting systems,and consistently advance risk management and information security protection,turning governance principles into a driving force for the Company's enduringoperation.
Steady ProgressBuilding a SustainableEnterprise
Corporate governance
Aligned with theCompany Law, theCode of Corporate Governance for Listed CompaniesandListing Rules of Shanghai StockExchange, Nanshan Aluminium has established the Shareholders' Meeting, the Board of Directors, the Supervisory Board, andprofessional committees to ensure that corporate governance responsibilities are ful?lled comprehensively. The Board of Directorshas established four professional committees to ensure the Company's stable development. In 2023, the Company held fiveShareholders' Meetings, approving 37 proposals cumulatively. Additionally, 14 board meetings were convened, with a 100%attendance rate of directors, resulting in the approval of 76 proposals in total.
Board of Directors and Committee of Nanshan Aluminium
In order to further enhance corporate governance standards, Nanshan Aluminium focuses on cultivating a diverse, compliant,and professional Board of Directors to improve the diversity of the Board of Directors and the independence in decision-making.By the end of the report period, the Company's Board of Directors includes one female director, and three independent directors.Independent directors represent 33% of the total directors.By the end of the report period
The Company is diversifying the structure of its Boardof Directors by selecting members from variousbackgrounds, including gender, age, education,industry experience, and skills. This ensures a diverseperspective in the decision-making.
The Company strictly complies with theRegulationson the Administration of Independent Directors ofListed Companies. Clear rules and strict scrutinyare applied to the conditions, responsibilities, andmethods of performance for independent directors.Continuous efforts are made to empower membersof the Board of Directors with independent judgment,minimising external in?uences and con?icts of interest inboard decisions to uphold the independence of decision-making.
Board of Directors
Audit Committee
Remuneration andAssessment Committee
Nomination Committee Strategy Committee
Diversi?cation of the Board of Directors Decision-making independence of Board of Directors
Female director
Person(s)
Independent directors
Person(s)
Represent
%
Steady Progress , Building a Sustainable Enterprise
Following the principle of accountability to shareholders and investors, Nanshan Aluminium systematically enhances training forBoard of Directors, supervisors, and senior management. This improves compliance awareness and decision-making capabilities,contributing to better corporate disclosure and laying a solid foundation for the Company's stable growth.
Training session on theDetermination of Securities Illegal Liability and Administrative Penaltiesfor the Boardof Directors of Nanshan Aluminium
Information disclosure and investor communication
Nanshan Aluminium strictly adheres to requirements outlined in laws such as theCompany Law,theSecurities LawandListingRules of Shanghai Stock Exchange.It has established internal systems like theManagement Procedures for Information Disclosure
to ensure compliance with principles of truthfulness, accuracy, completeness, timeliness, and fairness in ful?lling its informationdisclosure obligations. Regular and ad-hoc announcements are made to provide investors with a comprehensive understanding ofthe Company's operational status and future directions.In response to industry market conditions and internal strategic planning, the Company has established and continuallystrengthens communication mechanisms for significant investor events. This is a practical action to safeguard the legal rightsand interests of investors, particularly small and medium-sized investors. Through various communication channels such as theo?cial website, Shanghai Stock Exchange website and the SSE E-interactive, social media platforms, phone, fax, and email, wemaintain close and friendly communication with investors. We conduct a variety of activities including online and o?ine researchexchanges, analyst conferences, roadshows, achievement meeting, and Shareholders' Meeting. These e?orts enable investors togain a three-dimensional, comprehensive, and timely understanding of the Company's production and operational status, andpromotea positive brand image. In 2023, Nanshan Aluminium organised and participated in more than 130 online/o?ine activitiesfor investors, communicated with over 500 buyer institutions and 20 main seller institutions.In 2023Nanshan Aluminium organised and participated inonline/o?ine activities for investorsmore than
Communicated with buyerinstitutionsover
Main seller institutionsover
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Integrity managementAt Nanshan Aluminium, integrity is our cornerstone, guiding every aspect of our operations with a focus on compliance. We'veestablished and continually re?ned our anti-corruption management and reporting and complaint mechanism to promote businessethics and compliance management. Together with our employees, suppliers, and stakeholders, we're committed to fostering a clean,transparent, and compliant business environment.In accordance with laws and regulations such as theAnti-unfair Competition Law,theAnti-monopoly Law, Transparency International'sAnti-corruption Business Principles,as well as authoritative certification guidelines like ASI and RBA 7.0, Nanshan Aluminium hasformulated and publicly disclosed internal policies such as theAnti-corruption Policy,adopting a zero-tolerance attitude towardscorruption, bribery, money laundering, and other unethical behaviours.Nanshan Aluminium has established and continually optimises internal complaint and reporting mechanisms, encouraging employees,customers, suppliers, and other stakeholders to report any improper or unlawful behaviour during company operations throughhotlines and reporting e-mails, collectively safeguarding a clean and ethical business environment. The Company also attaches greatimportance to the motivation and protection of whistleblowers, requiring all departments and subsidiaries to strictly adhere to internalregulations outlined in theReporting Management Policy,ensuring the permanent and strict con?dentiality of whistleblowers' identitiesand information, and strictly prohibiting any retaliatory actions or information disclosure against whistleblowers. Upon veri?cation ofrelevant reports, the Company will also reward whistleblowers in accordance with the provisions of theEmployee Code of Conductandtake practical actions to protect their legitimate rights and interests.
Nanshan Aluminium adheres to the highest standards of integrity to govern its commercial transactions, regularly auditing theimplementation of its business ethics policies and compliance. The Company has established a dedicated Discipline Inspectionand Supervision Committee responsible for overseeing matters related to business ethics and investigating and handling majorviolations, reporting promptly to the Chairman of Board and the Board of Directors.We also continue to advance routine anti-corruption inspections, regularly conduct internal and external audits of business ethics,periodically open the whistleblower mailbox, and randomly select employees for interviews. In 2023, to further strengthen thefoundation of the Company's compliance management, the Company e?ectively implemented business ethics audits to identifyand assess potential business ethics risks in its operational processes and has ensured the compliance of business managementwithin Nanshan Aluminium and its subsidiaries.
Submit complaints throughsuggestion boxes, complaint emails,phone calls, and other channels
Conduct investigations and gatherevidence regarding the complaintby relevant departments
Inform the results to relevantdepartments, colleagues and theperson concernedAudit by the GeneralManagerIssue the treatment resultNanshan Aluminium's Complaint handling process
Steady Progress , Building a Sustainable Enterprise
Business ethics audits of Nanshan Aluminium in 2023
We also continue to enrich the core of anti-corruption and compliance culture by regularly conducting workshop training and promotingbusiness ethics standards to all employees, including part-time employees. By the end of the report period, the training and assessmentcompleteness of the employees of Nanshan Aluminium in business ethics and anti-corruption reached 100%.While continuously improving internal compliance management, Nanshan Aluminium strictly implements integrity managementpractices with contractors and suppliers. Guided by the internal system of theStandards of Suppliers' Business Conduct,we set highstandards to regulate the business ethics of contractors and suppliers. Taking reference from ASI PS certi?cation and RBA guidelines,we have developed theSupplier RBA Commitment LetterandAdherence to Business Ethics Agreementfor suppliers to sign, ensuringa supply chain with integrity. We also require all contractors and suppliers to voluntarily comply with relevant business ethics laws andregulations applicable to their operations and establish anti-corruption and bribery policies. The Company conducts regular auditsof contractors and supplier anti-bribery and anti-corruption policies to verify compliance. By the end of the report period, NanshanAluminium has conducted ?eld business ethics audits for 10 major raw material suppliers in China.
RBA: Responsible Business Alliance.
In July 2022, T?V Rheinland conducted an RBA7.0 Responsible Business Alliance Code of Conduct veri?cation certi?cation for the Plate Company.The customer-recognised validity period for the RBA 7.0 Responsible Business Alliance Code of Conduct veri?cation is two years, so by the end ofthe report period, the certi?cation is still valid.
ASI: Aluminium Stewardship Initiative.
PS: Performance standard.
? Nanshan Aluminium conducted regular internal audits for its Medium-thick Plate Company regarding compliance with theResponsible Business Alliance (RBA) code of conduct, verifying adherence to business ethics practices.? Nanshan Aluminium invited T?V Rheinland to conduct RBA 7.0 Responsible Business Alliance Code of Conduct certi?cationaudits for its Medium-thick Plate Company. This audit covered aspects such as business integrity, no unfair competition,fair business, advertising and competition, intellectual property rights, identity protection and prohibition of retaliation,responsible mineral procurement, and privacy. This certification aimed to strengthen compliance management levelswithin subsidiaries. By the end of the report period
, this certi?cation audit remains valid.
? Nanshan Aluminium regularly conducted ASI Performance Standard (ASI PS) internal audits for its subsidiaries, includingAlumina Company, Electrolytic Aluminium Company, Medium-thick Plate Company, Aluminium Rolling Company, andAluminium Foil Company. These audits effectively monitored subsidiary business ethics practices and managementcapabilities, and any business ethics risks identi?ed during the audit were addressed through corrective actions.
RBA
code of conduct audit
ASI
PS
Internal audit
The training and assessment completeness of theemployees of Nanshan Aluminium in business ethics andanti-corruption reached
%
Nanshan Aluminium has conducted fieldbusiness ethics audits for major raw materialsuppliers in China
By the end of the report period
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Risk management
Nanshan Aluminium considers risk management as one of the key focus areas in its business operations. The Company hasestablished and continually improves internal risk control systems such as theControl Procedures for Risks and Opportunities.Ithas set up ?ve major audit departments covering ?nance, supply, sales, physical assets and budgeting to lay the organisationalfoundation for advancing specialised audits and daily risk identi?cation and assessment work.
Key Internal Operation RisksExternal Macro Potential RisksProduction and operationEmployee health and safetyEcological environmentProtection of human rightsCapital ?ow
CustomsTaxesImport and exportTechnical innovationInternational settlement and foreign exchangeInternal/External Risk Consideration Dimension
In 2023, Nanshan Aluminium continued to implement specialised audit plans related to supply, sales, and other businessareas, and reported audit results and improvement suggestions to the Board of Directors. Additionally, the Company e?ectivelyaddressed potential exchange rate ?uctuation risks in its foreign trade activities by adopting multiple currency settlement methodsand conducting spot foreign exchange transactions in small amounts multiple times. This provided assurance for the Company'scompliance and facilitated the progress of its overseas business expansion e?orts.
Please refer to 2023 Annual Report of Nanshan Aluminium for details: http://www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2024-02-29/600219_20240229_MM2F.pdf.
Steady Progress , Building a Sustainable Enterprise
Information security and privacy protection
Nanshan Aluminium has always considered information security and privacy protection as one of its important corporate responsibilities.The Company adheres to laws and regulations such as thePersonal Information Protection Lawand theCyber Security Law, continuouslyoptimising requirements in network security systems such as theManagement System for Data Security, theInformation ManagementSystem, theImplementation Rules for Trade Secret Management, and theControl Procedures for Production Process. Furthermore, theCompany has established network security teams composed of technical personnel from various entities and information departments. Itembeds requirements for information security and privacy protection throughout the whole process, forming a management mechanismcharacterised by "clear regulations, strict adherence, strict enforcement, and accountability for violations".We actively adopt the best and most practical information security protection technologies and conducted special governance on networksecurity and special recti?cation of weak passwords during the report period. This multi-dimensional approach ensures the security ofcompany information storage and transmission, enhancing overall network security defense capabilities. We are diligently advancinginformation security-related system certification work, fulfilling our network security management responsibilities through practicalactions. We also prioritise customer privacy security. In collaboration, we have signed correspondingCon?dentiality Agreementwith somecustomers, further re?ning customer information classi?cation management and optimising emergency response procedures for customerinformation disclosure, and fully protecting customer privacy and the Company's own rights and interests.By the end of the report period, Nanshan Aluminium has not experienced any network information security-related violations. Additionally,the Company has obtained TISAX
certi?cation with an AL2 label and completed the re-evaluation of the National Information Security LevelProtection Level 2. Our subsidiary, Donghai Aluminium Foil Co., Ltd., has successfully passed the ISO 27001 certi?cation.
TISAX (Trusted Information Security Assessment Exchange): TISAX is a trusted information security assessment exchange standard mainly for the automotiveindustry. It aims to build a bridge of trust for automotive manufacturers, suppliers, and third-party information security assessment organisations to helpenterprises deal with information safety risks.
DLP: Data leakage prevention. DLP, is a strategy that prevents designated data or information assets of an enterprise from ?owing out of the enterprise ina form that violates security policy through certain technical means. The concept of DLP originates from abroad and is the most mainstream informationsecurity and data protection method internationally.
Nanshan Aluminium's Network information security measures
Adopt GreenShield DLP
technology to ensure data security during transmission andstorage processes.Equip comprehensive information security protection facilities and conduct regularmaintenance and security checks.Conduct targeted network security protection around malicious domain violations on hostmachines, and block malicious domains and related threat hosts through technical means toe?ectively safeguard end-user security.Informationsecurity protection
technologies
In 2023, Nanshan Aluminium carried out special governance on network security focusing ondimensions such as computer terminal security, legitimate software use, internet behaviournorms, and wireless network security to enhance the Company's information securityprotection level.Computer terminal security: Prevent data leakage by installing ?rewalls, intrusion detectionsystems, and other technical means.Legitimate software use: Require employees to use legitimate software to avoid safety hazardassociated with pirated software.Internet behaviour norms: Formulate and implement internet behaviour guidelines toprevent network safety risks caused by improper employee online activities.
Specialgovernance onnetwork security
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Nanshan employees are required to use company email and are prohibited from accessing other emailaccounts. Employee email accounts are deactivated immediately upon departure.Encryption software is used to protect the computers of personnel involved in sensitive products suchas Medium-heavy Plate Branch.Employees are required to sign con?dentiality agreements upon joining the Company.Departments are prohibited from disclosing sensitive information of other customers during communication,exchange, or response with a particular customer. If data comparison is needed, customer information mustundergo desensitisation.Privacy protection training is conducted.Based on a series of information security and privacy protection measures, Nanshan Aluminium convened network securitymeetings for employees at di?erent levels, providing personalised network security training courses and practical network attackand defense exercises. This continuous effort aims to strengthen employees' awareness of information security and enhancethe Company's network security defense capabilities. During the report period, Nanshan Aluminium has carried out 10 networkinformation training sessions, with the total training period of 20 hours.
In June 2023, Nanshan Aluminium organised the "Guarding theNetwork 2023" network security attack and defense exercise. Leveragingsecurity perception platforms, WAF (YXLink Web Application Firewall),AF (Sangfor Application Firewall), AES terminal protection centres, andother network security platforms, the exercise tested the rapid responseand collaborative combat capabilities of the security operations andmaintenance team in real combat scenarios, e?ectively enhancing theCompany's network security defense level.
In September 2023, Nanshan Aluminium actively responded to thenational call for cyber security knowledge dissemination and jointlyorganised the cyber security seminar in "2023 National Cyber SecurityAwareness Week" with the Longkou City Cybersecurity Brigade.This seminar aimed to continuously strengthen the awareness of networksecurity among information officers from various entities throughreal attack Case warnings, security technology demonstrations,emergency response drills, and policy interpretation sessions, usingexperiential teaching methods. These efforts contribute to theoverall enhancement of the Company's network security defensecapabilities.
Case ｜ "Guarding the network 2023" network security attack and defense exercise
Case｜Cyber Security Seminar in 2023 National Cyber Security Awareness Week
Site of "Guarding the Network 2023" Network SecurityAttack and Defense Exercise
2023 Cyber Security Awareness Seminar
Privacy protection measures
Steady Progress , Building a Sustainable Enterprise
Adhering to Traditionwhile Innovatingand Providing Quality andWholehearted Services
Nanshan Aluminium, rooted in a high starting point, is committed to providinghigh-quality products and services to global customers. We drive productupgrades through technological innovation, insist on grasping quality, andcontinuously break through in business areas. We provide customers with acomprehensive communication feedback and complaint handling mechanism tobetter listen to their voices, improve product quality and service experience, andcreate more value for customers.
Product quality
Quality management
Nanshan Aluminium has always adhered to the quality culture concept of "quality ?rst, customer supreme, excellence, and winningby quality", taking customer demand as the direction for quality improvement and implementing quality standards upgrades.We continuously deepen the construction of the quality management system, actively carry out various product physical qualitycerti?cations, and continuously build advanced and competitive product standards, setting an example for industry progress anddevelopment.
Nanshan Aluminium adheres to the road of quality and e?ciency, continuously optimises its own quality management modeland quality management team, establishes a three-level quality management model of Nanshan Aluminium Quality ManagementDepartment - Quality Assurance Department of branches - Quality Inspection Department of branch factories, and a quality riskpre-control mechanism. We comprehensively control the product realisation process throughout the full cycle to ensure thatproduct quality continues to meet customer requirements continuously and stably.
Quality Management Process
Quality Management Structure
The QualityManagementDepartment tested orcasually inspected the?nal products
Nanshan Aluminium Quality
Management DepartmentQuality Assurance Departments of
branchesQuality Inspection Department of
Branch Factories
Be responsible for supervising the quality management of Nanshan Aluminiumand quality monitoring of the whole product realisation processImplement the production quality control requirements of Nanshan Aluminiumand supervise the product quality in the whole process for all branchesBe responsible for raw material incoming inspection, process supervision,product outbound inspection, and promptly report any abnormalities discovered
The ProductionDepartment supervisedthe product processand ?nal indicatorassessmentAll factories formulatedand controlled theassessment indicatorsof process/?nalproductsThe process qualitywas controlled instrict accordancewith productionmanagement standards
Adhering to Tradition while Innovating and Providing Quality and Wholehearted Services
As the ?rst responsible enterprise of aluminium industrial chain to obtain dual certi?cation in ASI Performance Standard (PS) andFlow of Chain of Custody (CoC) in China, Nanshan Aluminium and its subsidiaries have received multiple quality managementsystem certi?cations, including ISO 9001 Quality Management System, IATF 16949 automotive quality management system, AS9100 aerospace management system, and ISO/TS22163 railway system quality management system. This achievement sets abenchmark for high-standard quality development and sustainable growth in the aluminium processing industry.
In 2023, Nanshan Aluminium continued to enhance its quality indicator monitoring mechanism, guided by the goal of improvingthe yield rate. It implemented a digital and intelligent quality management system, carried out multiple quality improvementprojects, and aimed to enhance the e?ciency and accuracy of quality management.
The Company organises internal and external reviews according to the annual audit plan. During the report period,Nanshan Aluminium conducted 54 on-site supervision inspections for process discipline and quality issues, identifying atotal of 301 quality issues. Each branch continuously improved during the active recti?cation process.
Quality IndicatorDevelopment
Quality ImprovementProjects
Quality InformationSupervision
Guided by the goal of improvingthe yield rate, Nanshan Aluminiumenhanced its quality responsibilitytracing, establishing statisticalindicators for product yield ratesacross 103 production areas,workshops, and machine units,along with 36 specific productyield rates and weekly dynamicyield rates.
Nanshan Aluminium conducted qualityimprovement projects to unearthpotential cost reduction and e?ciencyenhancement opportunities, focusingon reducing defect rates, improvingyield rates, and enhancing customersatisfaction.
In 2023, a total of 84 quality improvementprojects were implemented, continuouslyenhancing product quality throughongoing improvements.
Nanshan Aluminium establisheda three-tier quality informationsharing platform and formedmonitoring teams for daily qualityreports, scrap reports, and customercomplaint logs. These teamsoversee information relatedto process control and qualityinspection across subsidiaries ofNanshan Aluminium.
Quality management system certi?cationCerti?cation subject of Nanshan AluminiumISO 9001 Quality Management SystemShandong Nanshan Aluminium Co., Ltd.IATF 16949 Automotive Quality ManagementSystem
Shandong Nanshan Aluminium Co., Ltd (Flat-Rolled Product Division),Yantai Donghai Aluminium Foil Co., Ltd., Aluminium Pro?le Plant of NanshanAluminiumAS 9100 Aerospace Management System
Shandong Nanshan Aluminium Co., Ltd (Flat-Rolled Product Division),Aluminium Pro?le Plant of Nanshan AluminiumISO/TS 22163 Railway System QualityManagement System
Aluminium Pro?le Plant of Nanshan AluminiumGB/T 29490 Enterprise Intellectual PropertyManagement System
Shandong Nanshan Aluminium Co., Ltd.NADCAP Aviation Products and SpecialProcess Certi?cation
Shandong Nanshan Aluminium Co., Ltd (Flat-Rolled Product Division),
Aluminium Pro?le Plant of Nanshan AluminiumQuality System Certi?cation
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Quality culture
To enhance employees' quality awareness and skills, NanshanAluminium has established a normalised quality training system.Additionally, regular activities such as Quality Month and qualityknowledge competitions are held to improve employees'professional skills and quality awareness. During the report period,Nanshan Aluminium continued to cultivate its quality brand,achieving "well-known brand" coverage for its main products, with11 products winning the "Gold Cup Award" for the physical quality.
"Gold Cup Award" Certi?cate for the PhysicalQuality of Nonferrous Metal Products
To strengthen the foundation of quality management and enhance on-site quality control, the Quality Management Departmentof Nanshan Aluminium collaborates monthly with the Operation Co-ordination Department, System Certi?cation Department,Equipment Department, Measurement Centre, and other departments to conduct joint supervision inspections of the "men,machines, materials, methods, environment, and measurement" aspects affecting quality. We have established mechanismsfor supervising product quality and process management quality, promptly proposing corrective measures and improvementsuggestions for identi?ed issues, promoting continuous improvement in quality management, and implementing both processand management zero-defect initiatives in key quality areas.
Case ｜ Joint quality review system
Joint Quality Review Dimensions
In 2023, Nanshan Aluminium conducted extensive qualitypublicization and education, encouraging innovation andvitality. Activities such as "Quality Month", "Quality LectureHall", "Golden Ideas", "Quality Knowledge Competition",and "Quality Improvement Around Us" were organised.These included a series of mass quality managementactivities like themed speeches, QC team/groupcompetitions, and trustworthy team competitions. Theseinitiatives aimed to instil a "zero defects" and "continuousimprovement" quality concept among employees at alllevels, enhancing quality and safety assurance.During the report period, Nanshan Aluminium andits branches organised approximately 583.5 hours ofrelevant quality training.During the report period,Nanshan Aluminium and its branches organisedrelevant quality training approximately
583.5
hours
Qualityawareness
Quality level
SystemguaranteeStandardimplementationSitemanagementMetrological
assuranceQuality loss
Case ｜ Quality culture activities organised by Nanshan Aluminium
Adhering to Tradition while Innovating and Providing Quality and Wholehearted Services
Innovative research and development
Nanshan Aluminium considers research and development innovation as the core of its competitiveness and a key factor towardssuccess. We have cultivated an environment conducive to innovative development, increased support for technological innovation,and strengthened the construction of its research and development capabilities and talent team. Additionally, we have integratedintellectual property e?orts with product research and development, and technological innovation, transitioning from patents toproductivity. This integration has enhanced our technological innovation, product competitiveness, and contributed to the high-quality development of the industry.Scienti?c research innovationNanshan Aluminium adheres to the development strategy of "innovation-driven, high-end manufacturing, and intensiveprocessing". The Company has improved upstream production processes, intensi?ed e?orts in the research and development, andre?ning of downstream product technologies, and actively pursued key core technologies and "three-characteristics" technologiesthat are disruptive, forward-looking, and breakthrough. We continue to establish and strengthen research and developmentmanagement system and policies to accelerate innovation in research and development from various aspects such as internalresearch projects, industry-university-institute co-operation projects, and upstream and downstream co-operation in the industry.During the report period, Nanshan Aluminium's total research and development expenditure reached RMB 1.273 billion.
On December 8
th
, 2023, the Department of Science &Technology of Shandong Province organised a panel of expertsto conduct a comprehensive performance evaluation of the2019 Shandong provincial major scienti?c and technologicalinnovation project titled "Research and Development ofRoller Hearth Continuous Solution Quenching Technologyand Equipment for Aluminium Alloy Medium-heavy Plates forAviation Use" undertaken by Nanshan Aluminium.This project is a collaboration between Nanshan Aluminiumand Northeastern University focused on developing high-uniform heating devices and systems, high-strengthquenching devices, high-uniform cooling systems, and high-precision heat treatment furnaces with a fully automaticintelligent control system. Additionally, the project involvedthe research and development of special high-temperatureresistant metal brush rolls and installation techniques foraluminium alloy medium-heavy plate roller hearth furnaces.These efforts culminated in the establishment of a rollerhearth continuous solution quenching production line foraviation aluminium pro?les, marking a signi?cant milestonein breaking foreign technological monopolies and achievingsubstantial economic and social bene?ts.
Case ｜Nanshan Aluminium's roller hearth furnace project passes provincial major scienti?cand technological innovation project acceptance
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
For many years, Nanshan Aluminium has been deeply involved in the research and development of aviation aluminium pro?les.With its outstanding product quality and strong technological research and development capabilities, the Company has becomethe ?rst Chinese enterprise of deep processing of aluminium to supply aviation plates to top global aircraft manufacturers suchas Boeing and Airbus. Building on this achievement, the Commercial Aircraft Corporation of China Ltd (COMAC) Shanghai AircraftDesign & Research Institute and Nanshan Aluminium have established the "Civil Aircraft Aluminium Alloy Material Joint ResearchCentre". As a new type of scientific research innovation platform, this centre fully leverages COMAC's aircraft manufacturingexperience and Nanshan Aluminium's technical advantages in aluminium alloy products for aircrafts to create a world-classresearch base for civil aviation aluminium alloy materials.Nanshan Aluminium provides full support to the research, development and production of China's key aircrafts, including theC919, C929, and ARJ21. The Company has successfully overcome the core key technology challenges related to aluminium pro?lesfor wing spars in domestic aviation wings, breaking foreign monopolies and playing a crucial role in promoting the localisationof aviation aluminium pro?les. Since 2017, Nanshan Aluminium has been involved in the research and development of China'sdomestic large aircraft, the C919. The Company undertook the research and development of some aluminium alloy products forCOMAC's C919, which have now passed certi?cation of multiple models for 2- and 7-series alloy plates and sheets. Batch supplyhas commenced, making Nanshan Aluminium one of the main suppliers of aviation plates for C919.
Case ｜ Nanshan Aluminium's aviation aluminium pro?les support the development of China's domestic large aircrafts
Adhering to Tradition while Innovating and Providing Quality and Wholehearted Services
Nanshan Aluminium, in collaboration with GRIMAT EngineeringInstitute Co., Ltd., was awarded the "China Patent SilverAward" for the invention patent ofAn Aluminium AlloyMaterial and Preparation Method Suitable for Auto Body SheetManufacturing.This achievement represents the highesthonour and a historic breakthrough for Nanshan Aluminium inthe ?eld of Chinese patents.The revolutionary technology of this patent significantlyenhances the strength and room temperature stability ofaluminium alloy auto body sheets, reduces the hardeningphenomenon during the stagnation process of aluminiumalloy auto sheets, and effectively addresses the issue ofnatural aging hardening of aluminium alloy auto body sheets.This technology not only fills a gap in the production ofaluminium alloy auto sheets in China but also plays a pivotalrole in advancing technological progress and optimising andupgrading the industrial structure of its production, offeringpromising development prospects.
Case ｜ Nanshan Aluminium achieves ?rst "China Patent Silver Award"
Nanshan Aluminium, in collaboration with Yantai NanshanUniversity, participated in the "High-quality Auto SheetApplication" project, earning the third prize in the ShandongNew and Old Kinetic Energy Conversion High Value PatentCultivation Competition.
Nanshan Aluminium, in conjunction with Yantai NanshanUniversity and Hangxin Materials Technology Co., Ltd.,jointly applied for the project of "Aluminium Alloy for AutoBody and Its Preparation Method", which won the YantaiHigh-quality High-Value Patent Project.
Nanshan Aluminium collaborates on the Industrialisation Technology and Demonstration of Fine Control of RecycledAviation Aluminium Pro?les with University of Science and Technology Beijing and other institutions, aiming to establishproduction process regulations and a corresponding product evaluation system.
Third prize in the Shandong New and Old KineticEnergy Conversion High Value Patent Cultivation
Competition
Certi?cate of Yantai High-quality High-
Value Patent Project
Industry-university-institute Project Highlights in 2023
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Intellectual propertyIntellectual property protection is a cornerstone of sustaininginnovation. Nanshan Aluminium rigorously adheres to thePatentLaw,theAnti-unfair Competition Law,theEnterprise IntellectualProperty Management,theGuidelines for Intellectual PropertyManagement of Industrial Enterprisesand other related lawsand regulations. The Company has developed theManagementSystem Manualfor the intellectual property protection, whichincludes a structured process for trademark and copyright
protection applications, conducting risk assessments andregistrations according to business requirements. These e?ortscomprehensively advance the creation, protection, utilisation,and management of intellectual property. During the reportperiod, Nanshan Aluminium acquired the certi?cation of GB/T29490 Enterprise Intellectual Property Management System andsuccessfully completed the intellectual property managementsystem revision and re-certi?cation audit.
Supervise the intellectual property related to the market and company periodically, investigate the laws, policies andimplementation of intellectual property in destination before foreign trading, understand relevant industry litigationregulations, analyse possible dispute and its damage to the enterprise and formulate a preventive plan
Sign written contracts for external entrusted business, make agreement on the ownership and confidentiality ofintellectual property, and submit the contacts to the Legal Department for review and ?ling
Monitor the infringement of intellectual property during purchasing, sales, research and development or other business,report ?ndings to the Intellectual Property Department, and entrust the Legal Department for protecting intellectualproperty with administrative and judicial measures
Diligently renew trademarks upon expiration and actively combat malicious trademark imitation to safeguard againstmarket infringement
Collaborate with related entities to clarify ownership boundaries, reducing trademark con?icts and narrowing gaps in rights
Intellectual Property Management
Previouspreparations
Contract signing
Collaboration ofdepartments
Active monitoring
Jointmanagement
Adhering to Tradition while Innovating and Providing Quality and Wholehearted Services
To further bolster Nanshan Aluminium's technological innovationcapabilities, inspire innovation and creativity, and foster thepassion for innovation among employees, we have implementeda series of incentive programs. These initiatives encourage allemployees for patent application and paper publishing andaccelerate the transformation of intellectual property throughcash bonus. Besides, we organise employees for special trainingon intellectual property, enhancing their awareness of intellectualproperty and boosting their capacity for independent innovation.During the report period, Nanshan Aluminium carried out 5internal training sessions on intellectual property.
During the report period
In 2023
Nanshan Aluminium carried out internal training sessions onintellectual property.
times
Nanshan Aluminium was grantednew invention patents
A total of inventions
Utility models were authorised
Filled trademark applications
Utility models
In November 2023, Nanshan Aluminium's intellectual property management personnel participated in the 2023 ChinaNational Intellectual Property Administration Enterprise Intellectual Property Work Training Class organised by the YantaiAdministration for Market Regulation. The training focused on theSpecial Action Plan for Patent Transformation andUtilisation (2023-2025),providing insights into key policies and tasks related to enterprise intellectual property.
Case ｜ Nanshan Aluminium's participation in external intellectual property training
Annual patent achievements
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Customer service
Quality service
By adhering to the concept of service-oriented, Nanshan Aluminium dedicates itself to providing customers with timely,professional, and warm service experiences, with the aim of actively enhancing the customer satisfaction. We continue to improvecustomer communication and feedback channels, optimise service guarantees, and safeguard customer privacy, while establishinge?cient marketing management practice.Nanshan Aluminium abides by the laws and regulations such as theLaw of the Protection of Consumer Rights and Interests,formulatesinternal policies such as theProcess Control Procedures Related to Customers,theControl Procedures for After-sales Service,theControlProcedures for Customer Satisfaction Measurementand theManagement Regulations for Product Service.These policies ensure theimplementation of a comprehensive customer service management mechanism to optimise customer service experiences to the largestextent and improve the e?ciency of addressing customer needs. Monthly on-site visits and weekly communication through variousmeans, including telephone visits, correspondence, fax communication, video conferences, and emails, are conducted to promptlyaddress customer orders, delivery progress, shipment plans, customer payments, after-sales service, and other related matters.
We standardise the customer complaint and product service procedures according to theManagement Regulations for Product Service,
and clearly de?ne complaint classi?cation standards and the responsibilities of each department in handling complaints. We ensureto respond to the after-sales service and requirements in the current day. When necessary, special meetings are organised, or visits tocustomers are conducted to deal with the quality objections of customers timely and properly during the purchasing and using, and toprevent similar customer complaints. During the report period, all customer complaints received by Nanshan Aluminium were promptlyand properly handled, with a 100% timely processing rate.
Customer complaints
Customer Complaint Service Process
After receiving customer feedback or complaints, we aimto understand their needs through various channels, suchas telephone, WeChat, email, and ?eld visits. These includeinquiries about order changes, material usage, deliveryprogress, logistics information, and after-sales service.
Customer Service Process
Processcommunication
Communicationabout customers'
requirements
Contract/orderendorsementIdenti?cation/transmission/con?rmationof customers'requirements
Customerrequirement reviewCustomersatisfaction survey
Product deliveryAftersales services
of customers
Contract/orderimplementation
We collect information, photos, samples, etc., and sendthem to relevant departments, such as production andtechnology, for investigation and analysis, determine thetreatment plan through investigation and negotiation, trackthe secondary use condition of products on site if necessaryand ?nd the cause or solve the problems.For complaints, we formulate treatment agreements aftercon?rming solutions and send them to customers after theapproval. Solutions requiring for changing or refunding shallbe sent to the Storage and Transportation Department forvehicle arrangement. After the goods returned, they undergoreinspection and are disposed of according to agreements.
For customers' requirements such as suggestions onperformance improvement, specification change, newproduct research and development, relevant internaldepartments conduct reviews. Once the review is approved,it will be implemented and the results will be tracked andcommunicated with customers in a timely manner.
Adhering to Tradition while Innovating and Providing Quality and Wholehearted Services
Satisfaction survey
Responsible marketing
We conduct the customer satisfaction survey everyyear according to theControl Procedures for After-salesService,including but not limited to the investigationon product quality, delivery quality, service quality,price, packaging, and transportation. For the itemswith low satisfaction mark, we co-ordinate withrelevant departments for recti?cations, and track andverify whether the problems are improved.
Nanshan Aluminium focuses on responsible marketing and is committed to building a fair, justice and open marketing ecology.Annually, the Company formulates marketing policies and management systems based on market dynamics and product realities,which are strictly adhered to by sales personnel. We promptly re?ne and adjust our marketing policies and management systems ifsigni?cant market changes occur. Additionally, we ensure the protection of customer rights and interests through comprehensivemarketing training and audits.
To further ensure the marketing compliance, we have formulated theManagement Procedures for Clean GovernanceandMarketing Management Systemto stipulate the integrity of business personnel. All departments conduct self-inspection andself-correction, and are subject to the review of the Audit Department. Sales personnel are required to adhere to theIntegrityAgreementsigned with customers during the co-operation. In cases of violations or misconduct by sales personnel, the Companywill take appropriate disciplinary action based on the severity of the o?ense.
In 2023, Customer satisfaction survey resultsFlat-rolled products
points
Aluminium Pro?le Product Division
98.92
points
Training of Responsible Marketing Audit of Responsible Marketing
Develop marketing training plans and conduct specialisedmarketing training sessions for all sales personnelevery month, which cover product knowledge, projectmanagement, customer management, marketingsystems, business etiquette, and other areas to enhancethe overall quality and level of sales teams.
The Sales Management and Audit Departments trackand inspect the implementation of marketing policies,management systems, sales contracts, and behaviouralstandards by sales personnel during businessoperations, and promptly rectify any deviations.
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Making progress together
Industry Collaboration
By actively following the concept of "making progress together", Nanshan Aluminium is committed to co-operating with thegovernment, enterprises and universities to promote industry construction and development through co-construction and sharingand achieve win-win results in expanding co-operation with all sectors of society.
Nanshan Aluminium upholds the principles of co-operation and mutual benefit, actively seeking diverse collaborationopportunities. We actively participate in various industry associations, engaging in discussions and seminars with peer enterpriseson industry development and technological innovation. We also work to implement tangible outcomes in industry associations,driving the industry development and innovation. During the report period, Nanshan Aluminium served as a director or memberunit in multiple industry associations such as China Nonferrous Metals Industry Association, working in tandem with peerenterprises to promote the sustainable development of the nonferrous metal industry.Name of industry association PositionChina Nonferrous Metals Industry Association Vice President BusinessChina Nonferrous Metals Fabrication Industry Association Vice Director-General BusinessShandong Advanced Materials Industry Association Vice President BusinessShandong Aluminium Industry Association Vice President BusinessAssociation participation of Nanshan AluminiumFurthermore, leveraging its strengths in scientific research and development, Nanshan Aluminium actively promotes theformulation of industrial standards.
In 2023, Nanshan Aluminium participated in revision of 21 national standards and 13 industrial standards, includingas the main drafter of 1 national standard and 5 industrial standards.In 2023, Nanshan Aluminium participated in formulating, revising and releasing 12 national standards and 39industrial standards, including as the main drafter of 1 industrial standard.
Preparation of national and industrial standards
Adhering to Tradition while Innovating and Providing Quality and Wholehearted Services
From August 3rd to 5th, 2023, the National Nonferrous Light Metal Standards Work Conference was convened at the Nanshan InternationalConference Centre. Organised by the National Nonferrous Metal Standardization Technical Committee and undertaken by NanshanAluminium, the conference convened over 50 experts and leaders from 28 entities, including the Nonferrous Light Metal StandardsCommittee, COMAC Shanghai Aircraft Design & Research Institute, GRIMAT Engineering Institute Co., Ltd., Northeast Light Alloy Co., Ltd.,Southwest Aluminium (Group) Co., Ltd., Northwest Aluminium (Group) Co., Ltd., Seres, Li Auto and Great Wall Motor.During the conference, discussions centred around 6 national and industrial standards drafted by Nanshan Aluminium, includingAluminiumAlloy Sheets for Auto Body Coverings, Aluminium Alloy Ingots for Aviation Products, General Technical Speci?cation of Aluminium AlloyPlates and Sheets for Aviation Products, Wrought Aluminium Alloy Plates and Sheets for Aviation Products - Part 1: 7050T7451 Plate, UltraPhased-array Inspection Method of Wrought Aluminium and Aluminium Alloy Products, Fluorescent Penetration Inspection Method ofWrought Aluminium and Aluminium Alloy Products. Undertaking the drafting of these 6 main draft standards demonstrates the recognitionof Nanshan Aluminium's competitiveness and influence in the aviation plate and auto sheet markets by the Nonferrous Light MetalStandards Committee and the industry. It also re?ects Nanshan Aluminium's commitment to "serving all customers with high technologyand quality, better service and latest products from a high starting point".
On July 5th, 2023, the ALUMINIUM CHINA Exhibition opened at theShanghai New International Expo Centre. Nanshan Aluminiumshowcased its high-end aluminium processing products, demonstratingthe Company's excellent achievements in the field of high-endaluminium processing to the public.Nanshan Aluminium's booth, located at the centre of Hall N3 of theShanghai New International Expo Centre, covered an area of nearly400m
. The booth displayed a variety of products in di?erent categories,including flat-rolled foils, profiles, and deep processing productsfor the aviation, automotive, rail transit, packaging, and new energyindustries. Among the many products showcased, the most attention-grabbing was a concept exhibit of a new energy vehicle constructedusing Nanshan Aluminium's auto sheet products. This "star" productshowcased Nanshan Aluminium's research and developmentachievements in the lightweight of automobile and new energy?elds, attracting the attention of numerous Chinese and internationalexhibitors.
Case ｜ Hosting the National Nonferrous Light Metal Standards Work Conference
Case ｜ Nanshan Aluminium made a stage pose on ALUMINIUM CHINA Exhibition
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Industry-university-institute co-operation
While constantly improving the independent innovation capability, we actively collaborate with government departments, peerenterprises, universities and other institutions to promote structural reforms on the supply side of the industry, and facilitate thehealthy and sustainable development of the industry, which fully re?ects the mission and responsibility of Nanshan Aluminium asan excellent representative of the industry. We continue to invest in the research and development of green materials, establisha research support system based on "government-industry-university-institute" with universities and research institutes, expandthe upstream and downstream communication channels of the industry, accelerate technical co-operation and innovation ofenterprises, and collaborate with industry partners on the path of green innovation and development.
Project nameCo-operative entityAchievementKey Technology Research andDevelopment and IndustrialDemonstration of High-performance Aluminium AlloySheets for Transportation
Shandong Hongqiao NewMaterial Co., Ltd., NewMaterial Research Instituteof Shandong Academy ofSciences
Completed all research andformed corresponding processsystem documentsIndustrialisation Technologyand Demonstration of FineControl of Recycled AviationAluminium Pro?les
University of Science andTechnology Beijing, CentralSouth University, GRIMATEngineering Institute Co.,Ltd.
Established a 1,000 tonsindustrialised technologydemonstration production linefor recycled aviation aluminiumAn Aluminium Alloy Materialand Preparation MethodSuitable for Auto Body SheetManufacturing
GRIMAT Engineering InstituteCo., Ltd.
China Patent Silver Award
Adhering to Tradition while Innovating and Providing Quality and Wholehearted Services
Harmonious CoexistenceSafeguarding the NaturalEnvironment
Nanshan Aluminium upholds the environmental protection concept of"Harmonious Coexistence, Safeguarding the Green Mountains the NaturalEnvironment", taking action to respond to the era's call for green development.We actively address climate change, conducting assessments of climate risksand opportunities, promoting green production and transformation, reducingenergy consumption, and achieving greenhouse gas emission reductions. TheCompany rigorously implements environmental management, striving toachieve harmonious coexistence between production activities and the naturalenvironment, safeguarding a clean, prosperous, and sustainable future forgenerations to come.In 2023, Nanshan Aluminium was successfully selected as a pilot entity for theconstruction of the 2023 Shandong Province Green, Low-Carbon, and High-Quality Development Pioneer Zone.
Addressing climate change
Climate governance
Low-carbon transformation has become an essential aspectof the manufacturing industry's journey towards sustainabledevelopment. As a member of the Aluminium StewardshipInitiative (ASI), Nanshan Aluminium actively responds to the
Paris Agreementand theNational Climate Change AdaptationStrategyof Chinese government, integrating climate changeconsiderations into the Company's strategic planning anddaily operations, setting an example for promoting high-quality, green development in China's nonferrous metalindustry.By the end of the report period, for two consecutive years,we have participated in the climate change questionnairedisclosure of Carbon Disclosure Project (CDP) and received acontinuous Level "B" management evaluation on from CDPin 2023. This Level "B" management evaluation is higherthan the global average of the metal processing industry,fully demonstrating that Nanshan Aluminium has gainedbroad recognition in green, low-carbon, and sustainablemanagement and development. It also enhances ourcorporate image in addressing climate change, effectivelystrengthening our industry competitiveness.
To better address climate change and advance related initiatives, in 2023, we established an Energy Conservation and CarbonReduction Working Team under the Nanshan Aluminium ESG Committee, led by the Control Centre. This team implements energyconservation and emission reduction policies, actively responds to the national "carbon peaking and carbon neutrality goals", ande?ciently meets customer demands for green manufacturing.
Review climate change-related policies, laws, regulations, trends, and stakeholders demands,and propose energy use and carbon emission management goals to the Board of Directors.Supervise all divisions, lead and organise the implementation of ISO 50001 EnergyManagement System, ISO 14064 Greenhouse Gas Emission Standard, ISO 14067 ProductCarbon Footprint Standard, and respond carefully to the climate change questionnaire ofCDP, comprehensively implementing tasks related to climate change response and energyconservation and emission reduction.Take charge of daily energy conservation and emission reduction inspections as an executingbody. Decompose management goals and supervise the work of production departmentsthrough assessments at di?erent intervals. Ensure that daily work meets the requirements ofthe ISO 50001 Energy Management System, ISO 14064 Greenhouse Gas Emission Standard,and assist in carbon inventory-related work.
Nanshan Aluminium's Organisational Structure for Dealing with Climate ChangeESG Committee
Energy Conservationand Carbon ReductionWorking Team
Subsidiaries andRelevant Departments
The CDP rating of Nanshan Aluminium is higher than the averagelevel of global metal processing industry.
Harmonious Coexistence, Safeguarding the Natural Environment
Assessments of climaterisks and opportunities
Nanshan Aluminium's Climate Change Risk Identi?cationand Response Measures
The impacts of climate change on a global scaleand within the aluminium industry are poised tosigni?cantly in?uence the operational model ofthe Company. In order to bolster our resilienceto these changes, Nanshan Aluminium hasundertaken comprehensive assessments ofclimate risks and opportunities, and integratedthese factors into our strategic planning. Wehave identified five major climate risks andsix key opportunities, and have incorporatedappropriate mitigation measures into ourcorporate strategy.
Extreme weather conditions, such as hurricanes and tsunamis, and their relatedconsequences and impacts, including energy shortages and public health issues, maylead to temporary interruptions in operations. Furthermore, if our factory locationsexperience extreme weather conditions, this could adversely impact our production,operations, and financial status. Additionally, extreme weather may affect theoperations of our suppliers, manufacturers, and other suppliers, or cause economicinstability, thereby adversely a?ecting our operational results and ?nancial status.Climate change may increase the frequency and severity of extreme weatherconditions and natural disasters, which could impact our business operations inspecific regions or globally, as well as the activities of our third-party and othersuppliers, manufacturers, and customers.
Nanshan Aluminium is located at Yantai, Shandong Province, which experiencesarid and water shortage conditions. The Company's production activities require asigni?cant amount of freshwater supply. If the price of water resources continues torise, it will result in a direct increase in operational costs.
Nanshan Aluminium has always been committed to ful?lling its social responsibilityto protect the environment, minimising the adverse impact of production operationson ecology and climate, and reducing the climate impact of production activities asmuch as possible.Nanshan Aluminium has established an emergency management system foraccidents, identifying the hazardous factors involved, formulating various emergencyplans, and conducting drills according to the plan.A plant-level emergency rescue command centre, consisting of eight emergencyrescue teams, has been established to respond quickly in emergency situations.Additionally, the Company is equipped with flood prevention sandbags, anti-skidsand, and other equipment to address extreme weather conditions such as heavyrain and snow.
To address the impact of water shortage on production, Nanshan Aluminiumregularly conducts water balance tests, prepares water balance diagrams, andpublishes them on the official website. Through the analysis of water supply anddemand, we provide reliable data measurement guarantee for optimising andstrengthening water resource management.Based on the water balance diagram, Nanshan Aluminium further identifies weaklinks in water consumption, explores the potential for water saving, and clari?es themain directions for water saving. We will continue to explore the best solutions forwater intaking, consumption, discharge, and saving for enterprises to improve thee?ciency of water resource utilisation.To prevent production downtime caused by drought, we have introduced seawaterdesalination equipment to increase the source of freshwater supply for production.In 2023, we obtained more than 3,500,000 tons of freshwater through seawaterdesalination.
Five major climate risksChanges in environmental protectionlaws and regulationsIncreasing market demand for low-carbon productsGrowing emphasis on disclosing carbonfootprintsFrequent occurrence of extreme weatherConstraints on natural resources atproduction and operation sites
Main Climate Risks and Opportunities for NanshanAluminium
Six key climate opportunitiesDevelopment of low-carbon productsRecycling of resourcesEnergy conservation and emissionreductionResearch and development of newproductsApplication of low-carbon energyReduction of water resourceconsumption
Response measures
Response measures
Risk description
Risk descriptionRisk category：Severe natural factors(typhoons,tsunamis, extreme heat, extreme cold, wild?res, etc.)
Risk category：Long-term natural factors(climate patternchanges, etc.)
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
With the continuous strengthening of environmental regulationsby the government, the pressure of environmental protection onthe aluminium industry is also increasing. Currently, China hasimplemented orders and regulations on banning new capacity,dual control of energy consumption, environmental governance,and production reduction and suspension. For example, duringperiods of heavy pollution, companies that do not meet specificenvironmental protection requirements will be required to reduceproduction and implement emission reduction measures.
Many downstream companies in the aluminium processingindustry, represented by automobile companies, are activelypromoting the construction of green products and green supplychains.If Nanshan Aluminium fails to demonstrate a clear advantagein low-carbon emissions and green technology, it will face therisk of losing customers and declining market demands, therebyadversely a?ecting the Company's revenue.
China has announced the "carbon peaking and carbon neutralitygoals", with carbon emission reduction and carbon neutralitybeing key areas for future corporate transformation. In someindustries, downstream customers have begun to impose certainrequirements on the greenhouse gas emission intensity of ourproducts and those of our suppliers. In the future, carbon emissionreduction will become one of the thresholds for brand supplierentries.
The Company's main products are aluminium ?at-rolled products,can body materials, can lid materials, aluminium foils, whichare mainly used in automobiles, ships, packaging materials, etc.Customers in the auto sheet and packaging material industries, aswell as some foreign customers, require the Company to provideproduct carbon footprint reports and conduct product life cycleassessments.If there are no relevant product certifications of products, theCompany may face the risk of losing orders and damaging itsreputation.
To address national and local regulatory requirements, theCompany actively engages in related energy and environmentalmanagement system certi?cations to reduce the impact of currentproduction and emission reduction policies on operations inaccordance with strict national environmental protection standardsand requirements.We set high standards and strict requirements for ourselves.The Company has established and continues to refer to theISO 14001 Environmental Management System and ISO 50001Energy Management System, conducting rigorous internal systeme?ectiveness audits.
The Company is increasing the use of green energy in theproduction and gradually improving the intelligence level ofproduction facilities.The Company also strategically co-operates with advanced designinstitutes and high-tech enterprises in China, invests in researchand development of new production processes and applies newenergy conservation materials to provide high-quality electrolyticaluminium, gradually reducing greenhouse gas emissions.With an investment of RMB 330 million, the Company has built ahigh-quality grade-keeping and comprehensive utilisation projectof recycled aluminium, with a designed capacity of 100,000 tons ofrecycled aluminium per year.Nanshan Aluminium and its customers are jointly pursuingsustainable development. We reduce carbon emissions bypurchasing green ingots, green electricity, and recycled wastes tomeet customer requirements.
Relying on the energy management system operation, theCompany formulates energy-saving and technologicaltransformation plans annually to achieve emission reductionthrough energy conservation and consumption reduction projects.To meet some customer needs, we reduce carbon emissionsby purchasing green ingots and electricity, and wastes, therebymeeting customer requirements.
To meet customer requirements, the Company has conductedcarbon footprint certification for 9 categories of main products,including electrolytic aluminium, can body materials, can lidmaterials, aluminium foil blanks, battery foils, packaging foils, autosheets, and aluminium alloy architectural and industrial pro?les.We work with upstream suppliers to jointly formulate medium andlong-term emission reduction targets and plans, and are workingwith downstream strategic co-operation customers to promote thesustainable development of the supply chain.
Response measures
Response measures
Response measures
Response measures
Risk description
Risk description
Risk description
Risk description
Risk category：Replacement of currentproducts with low-carbon ones
Risk category：Market's requirements oncarbon footprint
Risk category：Current laws and regulations
Risk category：New laws and regulations
Harmonious Coexistence, Safeguarding the Natural Environment
Recycling ofresources
Energy conservation andemission reduction
The Company has obtained ASI performance standard and supply chain certification,ensuring that our products circulate from COC raw materials to ?nished products in China,adhering to the green sustainable development concept and providing customers withaluminium pro?les that meet ASI requirements.During the product design and development, the Company focuses on the full life cycleemission reduction concept, formulating theDesign and Development Control Procedures,identifying and controlling environmental factors, possible hazards, and occupationalhealth and safety risks throughout the design and development process.Actions in energy conservation and carbon reduction will enhance the marketcompetitiveness of the Company's products and services, attracting more customers andbringing revenue growth.
The Company is advancing the comprehensive utilisation projectof high-quality recycled aluminium, constructing a 100,000 tonsrecycled aluminium recovery project.The Company recycles 100% of internal waste and has establishedsystems such as theWaste Staging Hierarchy and Management.Through process and production management, all wastes generatedin the production process of aluminium plates and foils are recycledand remelted. Additionally, the Company actively communicateswith downstream customers to recycle external wastes,implementing a closed-loop recycling of wastes.During the aluminium ingot production, we improve the wasteinput ratio through process improvement, and reduce aluminiumwater consumption, costs, and industrial chain's carbon dioxideemissions during aluminium flat-rolled product and aluminiumfoil productions. Through technological innovation and internaltransformation, we reduce resource wastage and production costs,improve equipment utilisation rates and resource utilisation andproduction e?ciency through energy conservation methods, andincrease economic bene?ts.
The Company regularly conducts greenhouse gas emission surveys, formulates short-, medium-,and long-term emission reduction plans and implementation plans, and publishes them on theo?cial website.We actively explore new technologies, equipment, materials, and processes for energymanagement, initiating a series of technical optimisations and equipment upgrades for energyconservation and emission reduction, such as the optimisation project of temperature reductionwith evaporative circulating water to reduce steam consumption; development of energyconservation internal lined structure electrolytic cells, which can reduce electricity consumptionand carbon emissions annually; and projects such as the transformation of exhaust fanoperation speed reduction, and the pre-tension leveling heat exchange system transformation,reducing electricity consumption and carbon emissions.
With thewave of low-carbon transformation,an increasing number ofdownstream customers willdemand low-emission aluminiumprocessing products. Earlydevelopment of related productsmeans having the opportunityto seize market share.
Emphasis on resource recycling willdrive the application of advancedtechnology and equipment in theCompany to increase the reuserate. This will reduce the use of rawmaterials and increase pro?ts.
Retrofitting for energyconservation and emissionreduction will increasethe Company's energyuse efficiency and reduceenergy costs.
Development of low-emission products
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Application of low-carbon energy
Reduction of waterresource consumption
Our research and development departments are actively innovating and developing newproducts. If the Company can provide additional products and services to customers, itwill bring higher revenue to the Company. For example, in the auto sheet and aviationplate sectors, we have passed certi?cation for internal and external body sheets of someautomotive OEMs, as well as certi?cation from several major airlines at home and abroad,and will continue to develop new products for green and low-carbon development. At thesame time, we have a high market share in packaging materials such as can lid materials,can body materials, aluminium foils and battery foils, and will continue to work withmultiple parties to expand the development of new products under climate change.
Nanshan Aluminium has summarised the comprehensivemanagement idea of water resources of "multi-purpose,grading and cascade utilisation" in practice, and started fromrefined management and recycling to promote the rationaluse of water resources. On the one hand, we continued toinspect and optimise the production lines with high waterconsumption in factories, and reduced unnecessary waterresource loss by improving the water conservation process.On the other hand, we constantly optimised the internal watercirculation system, and improved the reuse rate of rainwater,sewage and water resource through recycling of rainwaterand sewage.
The Company is actively deploying non-fossil energy powergeneration, gradually increasing the use of photovoltaic power,reducing the use of thermal power, and fully considering the purchaseof low-carbon energy such as hydropower and wind power. Since2022, the Company has been using green electricity purchasedexternally for production of some products, and gradually increasingthe use of green electricity, thereby reducing long-term energy costsand carbon emissions.The Company has laid out photovoltaic power projects in plantareas, significantly improving the energy structure with cleanenergy. By 2023, Nanshan Aluminium's cumulative installedcapacity of photovoltaics is 100MW, with an expected annual powergeneration of 100 million kWh.
The reduction of water resourceconsumption will improve thee?ciency of the Company's productionprocess in water consumption, andreduce water costs and the risk ofproduction being hindered due towater resource shortages.
Development of new products willexpand the Company's businessscope and revenue.
In recent years, theinvestment in renewableenergy resource in China hasexceeded that in fossil fuels, and thecosts of distributed energy and energystorage are still decreasing.The transformation to low-carbon energy canhelp us reduce potential carbon emissioncompliance risks in the future andreduce current energy costs.
Research and developmentof new products
Harmonious Coexistence, Safeguarding the Natural Environment
Nanshan Aluminium strictly adheres to the greenhouse gas emission requirements outlined in Chapter 5 of the ASI Performance Standard.The Company publicly discloses key greenhouse gas emissions and the use of various energy sources annually. The Company conductsinternal carbon emission inventories every year in accordance with theManagement System for Greenhouse Gas Inventory, which involvesstatistical evaluations and ensures the e?ective implementation of overall greenhouse gas planning, emission reduction, and carbon reductionmechanisms through mechanisms such as data investigation and tracking veri?cation. In 2023, the Company continually conducted ISO 14064carbon inventory for organisation, the coverage scope boundaries of which are as follows:
Nanshan Aluminium ISO 14064 Carbon Inventoryfor Organisation
Refer toGreenhouse Gas Emission Targets and Implementation Planon the o?cial website.
Disclosure boundary of greenhouse gas emission data: 600,000 tons/year alumina production line, 480,000 tons/year electrolytic aluminium production line, 450,000 tons/year aluminiumalloy slab ingot production line, 200,000 tons/year aluminium alloy ?at-rolled product production line, 750,000 tons/year hot rolling production line, 600,000 tons/year aluminium alloy ?at-rolled product production line and 40,000 tons/year high-precision aluminium and aluminium alloy foil production line of Shandong Nanshan Aluminium Co., Ltd.
Greenhouse gas and energy managementTo mitigate the environmental impact of greenhouse gas emissions from its production, Nanshan Aluminium conducts annualinternal carbon inventory, scientifically evaluates the results, and rigorously implements the energy management. In 2023,Nanshan Aluminium formulated and publicly disclosed theGreenhouse Gas Emission Targets and Implementation Plan
based onthe assessment results. This plan delineates the short- and medium-term greenhouse gas emission targets for Chinese entities,along with speci?c emission reduction paths and measures
.Emission targetsCarbon peaking by 2030 Carbon neutrality by 2050
Product emission intensity targets (China)Unit
Emission targetin 2022 (tCO
e/tproduct)
Emission targetin 2023 (tCO
e/tproduct)
Emission target in2024 (tCO
e/tproduct)
Emission targetin 2025 (tCO
e/tproduct)Alumina Company 1.81.791.781.77Aluminium Rolling Company 0.990.9850.980.975Medium-thick Plate Company 2.682.672.662.65Aluminium Foil Company 1.31.291.281.27
Electrolytic aluminium product carbon footprint (China)Unit
Emission target
in 2022 (tCO
e/t
product)
Emission targetin 2023 (tCO
e/tproduct)
Emission target in2024 (tCO
e/tproduct)
Emission targetin 2025 (tCO
e/tproduct)Product carbon footprint frombauxite to electrolytic aluminium
17.6117.4117.2117.01
ElectrolyticAluminiumCompanyAluminiumPro?le PlantAluminium RollingCompany
Coverage scopeAlumina Company
Aluminium FoilCompanyMedium-thick PlateBranch
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Emission indicators
Unit 2022 Data 2023 Data
Greenhouse gas emission indicators (aluminium products)
Total greenhouse gasemission (scope 1 + scope 2)
t CO
eq9,630,1829,087,064Greenhouse gas emission(scope 1)
t CO
eq1,504,4691,534,661Greenhouse gas emission(scope 2)
t CO
eq8,125,7137,552,403
Carbon emission intensity
Alumina Company t CO
eq/t product 2.221.90Aluminium Rolling Company t CO
eq/t product 0.570.79Medium-thick Plate Company t CO
eq/t product 1.091.89Electrolytic AluminiumCompany
t CO
eq/t product 17.1916.64Aluminium Foil Company t CO
eq/t product 1.251.09
Greenhouse gas emission indicator (electric power)Total greenhouse gasemission of electric power
t CO
eq10,099,3619,656,270Greenhouse gas emission indicators (overseas factories)
Total greenhouse gas emissionAmerican factory t CO
eq41,08834,559Indonesian factory t CO
eq769,0701,909,740
Carbon emission intensityAmerican factory t CO
eq/t product 0.450.45Indonesian factory t CO
eq/t product 0.661.01
Data scope covers the Company's operations in the Electrolytic Aluminium Company, Alumina Company, Aluminium Rolling Company, Aluminium Foil Company and Medium-thickPlate Branch. Carbon emissions related to the electric power industry and overseas factory carbon emissions are listed separately in the table below.
In 2023, the Indonesian factory conducted a comprehensive review and expansion of greenhouse gas total and emission intensity statistical scope based on actual production andoperation, for the ?rst time comprehensively including emission sources such as coal gasi?cation in greenhouse gas and energy statistics and management. Based on this scope,greenhouse gas and energy management work will continue.
In 2023, various branches of Nanshan Aluminium are orderly promoting the emission reduction targets for greenhouse gasemissions per unit product, speci?cally as follows:
Subsidiary
Expected carbon emission target in 2023≤(tCO
e/t product)
Actual performance in 2023 (tCO
e/t product)
CompletionprogressAluminaCompany
1.791.90IncompleteAluminium RollingCompany
0.9850.79CompletedMedium-thickPlate Company
2.671.89CompletedAluminium FoilCompany
1.291.09Completed
Harmonious Coexistence, Safeguarding the Natural Environment
Case ｜ Product carbon footprintNanshan Aluminium actively responds to the global consensuson carbon emission reduction and the explicit requirements fromdownstream customers for greenhouse gas emission reduction.The Company has engaged third-party organisations to conductproduct carbon footprint certi?cations for several products withinits portfolio. In 2023, Nanshan Aluminium achieved a signi?cantmilestone in carbon footprint management. Building upon thecerti?cation of can body materials, can lid materials, packaging
foils, aluminium foils and battery foils, the Company successfullyobtained ISO 14067 carbon footprint certification for fiveadditional product categories, i.e., electrolytic aluminium water,aluminium auto sheets, aluminium foil blanks, aluminium alloyarchitectural and industrial profiles. With a total of 9 productsnow certified for their carbon footprint, Nanshan Aluminium isproviding robust support for the development of a low-carbonaluminium supply chain.
Carbon FootprintCerti?cate for Electrolytic
Aluminium Water
Carbon FootprintCerti?cate for AluminiumAuto Sheets
Carbon FootprintCerti?cate for AluminiumFoil Blanks
Carbon Footprint Certi?catefor Aluminium AlloyArchitectural Pro?les
Carbon FootprintCerti?cate for AluminiumAlloy Industrial Pro?lesNew Product Carbon Footprint Certi?cates Acquired by Nanshan Aluminium in 2023
Electrolytic Aluminium CompanyCerti?cated subject Certi?ed product
Electrolytic aluminium waterCan body materials, can lid materials, aluminium foil blanks
Packaging foils, battery foilsAluminium auto sheetsAluminium alloy architectural and industrial pro?lesAluminium Rolling CompanyAluminium Foil CompanyMedium-thick Plate CompanyAluminium Pro?le Plant
Case ｜ International EPD (Environmental Product Declaration)
Case ｜ LCA (Life Cycle Analysis) of pro?le products
To meet the demand for International EPD (Environmental ProductDeclaration) reports for industrial and architectural pro?les in 2023from foreign customers such as The Metal Centre in the UK, Seiko inSingapore, and YKK, Nanshan Aluminium actively utilised the world-leading SimaPro software to conduct comprehensive evaluations
and modeling of the full life cycle of pro?le products. After extensivepreparation, the Company successfully completed the registrationof architectural and industrial aluminium profiles with EPDInternational in Sweden in 2023.
To gain a better understanding of the environmental impact ofproduct production processes, Nanshan Aluminium engaged athird-party organisation to use Simapro software to conduct a full
life cycle assessment and modeling of pro?le products, identifyingkey areas for improvement. In 2023, Nanshan's profile plantachieved 100% recycling of waste aluminium.
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Following theGreenhouse Gas Emission Targets andImplementation Plan, we have conducted targeted studies andenhanced our risk response capabilities. We focus on threeareas, i.e., carbon reduction in electric power, reduction of directemissions, and recycling, as focal points, and implement carbonreduction measures in the production and operation processesto fully achieve the short- to medium-term greenhouse gasemission targets.Energy use, as the primary source of carbon emissions, is crucialfor optimising carbon emission reduction. We strictly abide bythe laws and regulations such asEnergy Conservation Law,establish a three-tier energy management structure, and set theProduction & Operation Co-ordination Department co-ordinate,manage and supervise energy conservation efforts in varioussubsidiaries.
Low carbon production
Production & Operation Co-ordination Departmentof Nanshan AluminiumEnergy conservation group leader/deputy group leaderof subordinate production and operation unitsHeads of functional departments and workshopsEnergy Management Structure
Nanshan Aluminium has established and a management system inaccordance with the ISO 50001 energy management system standardand implemented related work. Several branches have achieved ISO50001 energy management system certification, including DonghaiThermal Power Plant, Alumina Company, Electrolytic AluminiumCompany, Medium-thick Plate Company, Aluminium RollingCompany, Donghai Aluminium Foil Co., Ltd., Aluminium Pro?le Plant,covering core production and operation sites. Leveraging this energymanagement system with clear hierarchy and responsibilities, weactively explore new technologies, equipment, materials and processof energy management, implement energy management decisions,and regularly organise inspections of energy conservation measures invarious entities.
ISO 50001 Energy ManagementSystem Certi?cation
The data scope currently only includes our subsidiaries whose operation places are in China. We will continue to strengthen the management ofoverseas operating subsidiaries, promote the implementation of energy management based on ISO 50001 energy management system, and timelyincorporate their energy system coverage into the scope of internal data statistics of the Company.
except for the newly commissioned Recycled Aluminium Company, the ISO 50001 energy managementsystem coverage rate of Nanshan Aluminium subsidiaries is
%
By the end of the report period
Harmonious Coexistence, Safeguarding the Natural Environment
Data scope covers the Company's major production factories in China (Donghai Thermal Power Plant, Nanshan Electrolytic Aluminium Factory,Nanshan Aluminium Pro?le Plant, Alumina Company, Aluminium Rolling Company, Aluminium Foil Company, Aluminium New Material Companyand Medium-thick Plate Branch). The Company's original coal consumption in 2022 should be 5,195,290 tons, which is hereby corrected in thisReport.
We calculate the Company's annual comprehensive energy consumption (unit: ton of standard coal) based on the ISO 50001 energy management system.
Electric power is the core energy source in the manufacturing process of aluminium products. Nanshan Aluminium promotes thecarbon reduction in electric power through green electricity procurement and renewable energy resource utilisation. Throughthese two initiatives, we aim to achieve a more environmentally friendly and sustainable electric power supply while ensuringproduction e?ciency, contributing to the green development of the aluminium products industry.
Energy consumption situationEnergy consumptionindicator
Unit2022 Data 2023 DataIndirect energy consumptionPurchased electric power kWh 4,884,915,5002,127,629,400Purchased steam MkJ - -Direct energy consumptionDiesel oil ton 3,6994,011Raw coal ton 5.195,2905,050,233Natural gas 10,000m
31,16227,163Comprehensive energyconsumption
Ton of standard coal 4,183,7173,789,111Purchasing of greenelectricity energy
kWh 30,000,00020,000,000Self-generation and self-utilisation of solar electricpower energy
kWh 18,804,04769,542,205Case ｜ Green o?ceIn addition to efforts in the production process, we actively promote green office practices. Through company-widepromotion, we encourage departments to retrofit energy conservation lighting and adopt paperless office practices.We also encourage employees to take energy conservation and emission reduction actions, such as using publictransportation or new energy vehicles for commuting.
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Case ｜ Green electricity procurement
Case ｜ Application of digital cell control machine
Case ｜ Renewable energy power generation
Through participation in green electricity transactionsand the purchase of green electricity certificates, weactively integrate renewable energy resource andgradually achieve green replacement for thermal power.During the report period, we purchased 20,000,000kWhof international green electricity certi?cates and activelyco-operated with grid peak-shifting to contribute to thestability and greenness of the electric power system.
Nanshan Aluminium has purchased a digital cell control machine, replaced and upgraded the lined materials andcathode materials of the electrolytic cell, e?ectively reducing the cell voltage, improving energy utilisation e?ciency, andreducing energy consumption from 13,371kWh/t to 12,993kWh/t.
The Company has laid out photovoltaic power projects in plant areas, significantly improving the energy structurewith clean energy. Nanshan Aluminium's total installed capacity of photovoltaics is 95MW, with an expected annualpower generation of 100 million kWh. The construction situation of photovoltaic projects is shown as below:
Green Electricity Certi?cate
Donghai Thermal
Power Plant
AluminiumPro?le PlantNanshan Park
we purchasedinternational green electricity certi?cates
20,000,000 kWh
Nanshan Aluminium'stotal installed capacity ofphotovoltaics is
MW
with an expectedannual powergeneration of
million kWh
During the report period
Harmonious Coexistence, Safeguarding the Natural Environment
Environmental management
Environmental management system
Nanshan Aluminium recognises the importance of environmental responsibility. We have established and continuously improved ourenvironmental management structure and systems, and engage professional third-party organisations to enhance our environmentalmanagement standards. Our commitment is to minimise environmental impacts during production, rigorously manage and mitigate impactson biodiversity, ensure compliant disposal of wastewater, waste gas, solid waste, and hazardous waste, and e?ciently recycle water resources.Additionally, we actively participate in ecosystem protection to contribute to the construction of an environmentally friendly society.
Nanshan Aluminium strictly adheres to local ecologicalenvironmental protection laws, regulations, and guidelines.We have developed a series of internal management systems,including theManagement Methods for Environmental Protectionand theEnvironmental Information Disclosure System of NanshanAluminium, to regulate the environmental management. We ful?lour environmental management responsibilities at all operationplaces. During the report period, Nanshan Aluminium has alwaysadhered to the bottom line of environmental protection, with noenvironmental accidents or violations, nor any environmentalpenalties.
To ensure compliance with legal requirements and theimplementation of company regulations by relevant departmentsand operation places, we have established a clear and responsibleenvironmental management structure. The ESG Committee,composed of the Chairman of Board and senior managementpersonnel, serves as the highest decision-making body forenvironmental management matters. The Safety and EnvironmentalProtection Working Group under the ESG Committee leads thepromotion of the emission management three wastes, life cycleassessment of products, and green manufacturing, ensuring smoothimplementation of ISO 14001 environmental management systemsby all departments of the Company and its subsidiaries.Environmental Management Structure of Nanshan Aluminium
ESG Committee
Examine environmental policies, regulations, standards, trends, and stakeholders'demands, propose environmental management goals to the Board of Directors, andformulate environmental management policies.Safety andEnvironmental ProtectionWorking Group
Supervise all entities, lead and take charge of controlling three waste emissions, lifecycle assessments, and green manufacturing, and implement ISO14001 environmentalmanagement systems.
Subsidiaries andRelevant Departments
Take charge of daily environmental management, three waste emissions, and environmentalinspection as an executing body. Decompose environmental management goals andsupervise the environment-related work of production departments through environmentalassessments at di?erent intervals.
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
except for the newly commissioned Recycled Aluminium Company, the ISO14001 environmentalmanagement system coverage rate of Nanshan Aluminium subsidiaries is
87.5
%
By the end of the report period
Case ｜ Nanshan Aluminium recognised as the Shandong Province Green, Low-Carbon, and
High-Quality Development Pioneer ZoneOn November 9th, 2023, Nanshan Aluminium was successfullyselected as a pilot entity for the construction of the 2023Shandong Province Green, Low-Carbon, and High-QualityDevelopment Pioneer Zone. This list was announced by theShandong Development and Reform Commission, highlightingour significant contributions to green and low-carbonmanufacturing.As a benchmarking enterprise of aluminium processingindustry, Nanshan Aluminium fully implements the sustainabledevelopment concept of "creating a better future for enterprise
through green manufacturing", actively responds to the national"carbon peaking and carbon neutrality" strategy and therequirements of the "14th Five-Year Plan". We are acceleratingthe progress of ongoing projects such as recycled aluminium,photovoltaics, and energy conservation transformation forelectrolytic aluminium cells. We continue to fulfil our socialresponsibilities across environmental, social, and governancedimensions, striving to build a low-carbon, energy-efficient, andresponsible aluminium industry, setting a benchmark for high-quality, green development in the Chinese aluminium industry.Adhering to regulations like theManagement Methods for Environmental Protection, we conduct regular and comprehensive on-siteinspections and evaluations of all subordinate enterprises. Our focus is on eight core management areas and ?ve assessment indicators.The assessment results directly impact the performance evaluations of senior management and responsible personnel in eachsubsidiary of Nanshan Aluminium.
Eight Dimensions of Environmental Management System ofNanshan Aluminium
Five Assessment Indicators of Environmental Performance
Standardemission ofwaste gas andwastewaterEnvironmentalmanagement onthe productionsite
Implementation
of pollutionemission permitmanagement
Completeenvironmentalprotectionarchives
Standardmanagementof solid waste
Goalmanagement
ProductionmanagementEquipmentmanagement
TechnologymanagementStandardisedmanagement
IndicatormanagementPerformancemanagement
Environmental
accidentmanagement
The data scope currently only includes our subsidiaries whose operation places are in China. We will continue to strengthen the management ofoverseas operating subsidiaries, promote the implementation of environmental management based on ISO 14001 environmental managementsystem, and timely incorporate their environment system coverage into the scope of internal data statistics of the Company.
Harmonious Coexistence, Safeguarding the Natural Environment
Environmental protection trainingThe Company places a high importance on the daily management and risk prevention of environmental-related work. We activelyorganise various specialised environmental training sessions and drills to strengthen the awareness of environmental management andenvironmental protection work among employees at all levels. This e?ort aims to enhance the response and handling capabilities ofenvironmental personnel in emergency situations.In 2023, Nanshan Aluminium and its subsidiaries organised a total of 12 environmental protection training sessions. These sessionsfocused on core content such as responding to heavy pollution weather, online monitoring operations, hazardous waste disposal, andcompliance with environmental inspection requirements at all levels. These training sessions e?ectively enhanced the awareness andprofessional skills of hazardous waste of environmental protection management personnel in various enterprises. Additionally, NanshanAluminium and its subordinate enterprises strictly adhere to theEmergency Plan for Emergency Environmental Incidents, and haveconducted a total of 4 emergency drills to ensure the rapid and e?ective reduction of environmental risks in emergency situations.
Specialised Environmental Protection Training Session
Pollution prevention and control
By adhering to the concept of "promoting clean productionand realising sustainable development", Nanshan Aluminiumactively carries out pollution prevention and control in allproduction links. We implement compliance management overwaste gas, wastewater and waste in strict accordance with the
pollutant emission management requirements of regulatoryagencies in overseas operation places. While maintaining 100%compliant emissions, we have set stricter emission targets,focusing on reducing pollutant emissions at the source andpromoting recycling to minimise our environmental impact.
Furthermore, we have engaged independent third-partyorganisations as external environmental protection stewardsto conduct on-site environmental impact audits. These auditsare conducted in accordance with relevant laws, such as theRegulation on the Administration of Permitting of PollutionDischarges, Prevention and Control of Atmospheric Pollutionand thePrevention and Control of Solid Waste Pollution. They areconducted at di?erent frequencies - weekly, monthly, quarterly, andannually. The Company and contracted external environmentalprotection stewards conduct monthly reviews of each subsidiary's
environmental compliance management work to ensure that theCompany's environmental management and pollution dischargecomply with various standards. These reviews focus on theexecution of pollution discharge permits, environmental recordmanagement, hazardous waste management, and the operation ofpollution control facilities.During the report period, the Company conducted a total of 415on-site inspections, identifying 493 issues. Rectification noticeswere issued to subsidiaries with identified issues, ensuring theycompleted all relevant recti?cation work promptly.
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Case ｜Long-term environmental management goalsWhile achieving the short-term goals, realise the ultra-low discharge of waste gas and "zero emission and full recycling"of wastewater at most subsidiaries of Nanshan Aluminium by fully upgrade and transform the environmental protectionfacilities for wastewater and gas.
Short-term environmental management goalsAtmospheric pollutants such asparticulate matter, nitrogen oxides,and sulfur dioxide
Achieve a 2% reduction in total emissions by 2026, based on 2021 levelsSolid wastes
Achieve 100% compliant disposal of solid wastes and actively promote waste
reduction through measures such as aluminium re-melting and recycling to
e?ectively reduce solid wastesWastewater treatment
Achieve 100% compliant wastewater discharge and reduce wastewater discharge
through wastewater recycling measures
Waste gas managementNanshan Aluminium has formulated and implemented theControl Procedures for Emission of Atmospheric Pollutionin strictaccordance with thePrevention and Control of AtmosphericPollution, Comprehensive Emission Standards for AtmosphericPollutantsas well as the laws and regulations of overseas operationplaces, ensuring 100% compliance with waste gas emissions.Additionally, we have included the waste gas treatment facilitiesof each branch in the equipment management scope of theplants and workshops, providing them with the same inspection,maintenance, and repair services as the main equipment to ensurethe e?cient and normal operation of these facilities and e?ectivelyreduce waste gas emissions.Each entity has installed online monitoring systems in accordancewith environmental protection management requirements, andconducted uninterrupted emission monitoring assessments. Bycomparing monitoring data and conducting effective audits, weensure the accuracy and reliability of the monitoring data andobtain quali?ed marks. Furthermore, we have developed annualself-monitoring plans tailored to the speci?c circumstances of eachentity, specifying monitoring points, items, frequency, and timeto promptly identify and resolve issues and ensure that waste gasemissions are always controlled within the standard limits.
We are actively promoting emission reduction upgrades for eachsubsidiary, using advanced environmental protection technologiesto remove harmful substances from emissions and reduce theimpact of production operations on the atmosphere. We requirestrict control of unorganised emissions in the production system,timely recovering overflow materials back into the system toavoid secondary pollution. In addition, we have implemented aseries of protective measures during storage, transportation, andloading and unloading processes, such as closed operations, layingdust-proof nets, and cleaning transport vehicles, to minimise thegeneration of waste gas particulates.Donghai Thermal Power Plant strictly complies with theEmissionStandard of Air Pollutants for Thermal Power Plants, ensuringcompliant emissions while minimising environmental pollution.To reduce waste gas pollutant emissions, Donghai Thermal PowerPlant employs techniques such as low-nitrogen combustion,selective catalytic reduction (SCR) denitration, electrostaticprecipitators, limestone-gypsum desulfurisation, and wetelectrostatic precipitation. The self-monitoring results of DonghaiThermal Power Plant in 2023 all met the standards.
the Company achieved compliant waste gas emissions
%
During the report period
Harmonious Coexistence, Safeguarding the Natural Environment
Solid waste managementNanshan Aluminium rigorously adheres to pertinent laws and regulations, such as theLaw of Prevention and Control of SolidWaste Pollution, theTechnical Speci?cations for Collection, Storage, and Transportation of Hazardous Waste, theManagementMethod for Transfer of Hazardous Wasteand relevant environmental protection regulations of overseas operation places. Basedon these laws and guidelines, the Company has formulated internal systems such as theStandardised Management Measuresfor Solid Waste of Nanshan Aluminiumand theControl Procedures for Solid Waste of Nanshan Aluminium. We focus on theenvironmental strategy of "source reduction, intermediate control, terminal governance and recycling" and meticulously classifyand e?ciently dispose of solid waste according to the principles of "reduction, recycling and hazard-free treatment".In addition to achieving 100% compliant disposal of solid waste, Nanshan Aluminium actively promotes the recovery and reuseof non-hazardous waste. Through measures such as remelting and recycling, we recover aluminium scraps, blocks, and ash,transforming waste into recycled aluminium ingots, thereby reducing the generation of solid waste at the source.
Aluminium scrap, desulfurisationgypsum and red mud
Aluminium and foil scrap arerecycled through smeltingfurnace
Red mud is stored in piling yardin a dry mode
Such as aluminium ash, wastelubricating oil, emulsi?ed liquidand waste diatomaceous earth
Hazardous waste that canbe utilised or reducedcomprehensively shall be pre-treated
Residual hazardous waste shallbe entrusted to quali?ed unitfor proper treatment
Domestic wastes shall becleared away and disposedby environmental sanitationdepartment
General Industrialwastes
Hazardouswastes
Domestic wastes
Waste gas emission indicators
Emission indicators Unit 2022 Data 2023 DataNitrogen oxide ton 3,484 3,698Sulfur dioxide ton 7,801 6,386Non-methane hydrocarbon ton143 59Particles in ?ue gas from theburning and roasting furnace
ton 72 151Particles ton 838 419
Data scope covers includes Donghai Thermal Power Plant, Nanshan Electrolytic Aluminium Factory, Nanshan Aluminium Pro?le Plant, AluminaCompany, Aluminium Rolling Company, Aluminium Foil Company, Aluminium New Material Company, Medium-thick Plate Branch, as well as majoroperating factories in Indonesia and the United States.
The following table provides our waste gas emission indicators:
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
To further increase the reuse rate of solid waste, in 2023,we conducted capacity expansion and transformation ofthe comprehensive utilisation project for aluminium ash.All ash roasters were shut down, and a rotary kiln and acooling sieving machine were added. Through this projecttransformation, our annual processing capacity of aluminiumash increased from 52,000 tons to 80,000 tons, producing40,000 tons of recycled aluminium ingots.
Comprehensive Utilisation Equipment of Aluminium Ash
Our annual aluminum ash and slag processing capacityhas increased from the original 52,000 tons to80,000 tons
Can produce recycled aluminium ingots40,000 tons
Through the project renovation
In 2023, the Company's general solid waste recycling rate increased from 73.95% in 2022 to 99.79%, while the recycling rate ofhazardous wastes remained high at 100.11%.
In 2023, our solid waste emission indicators were as follows:
Amount of produced and utilised solid wastes
Indicators Unit 2022 Data 2023 Data
Total solid wastes ton 5,263,747 5,652,315Generation of general solid wastes ton 5,117,328 3,800,439Total amount of general solid waste
recycling
ton 3,828,615 3,792,642Generation of hazardous wastes ton 86,419 86,221 Total reutilised hazardous wastes ton 85,92886,315
Due to the surplus hazardous waste in 2022 being recycled this year, the recycling volume exceeds the generation volume, and the recycling rateexceeds 100%.
Data scope covers includes Donghai Thermal Power Plant, Nanshan Electrolytic Aluminium Factory, Nanshan Aluminium Pro?le Plant, AluminaCompany, Aluminium Rolling Company, Aluminium Foil Company, Aluminium New Material Company, Medium-thick Plate Branch, as well asIndonesian factory and American factory.
Due to the surplus hazardous waste in 2022 being recycled this year, the recycling volume exceeds the generation volume.
Harmonious Coexistence, Safeguarding the Natural Environment
Wastewater discharge conditions
Emissions Unit 2022 Data 2023 Data
Wastewater discharge 10,000 ton 97 87
Filter pressing water 10,000 ton 239 518Recycled wastewater 10,000 ton 130 456
COD kg 57,392 23,953Ammonia nitrogen kg 615 807
Data scope covers includes Donghai Thermal Power Plant, Nanshan Electrolytic Aluminium Factory, Nanshan Aluminium Pro?le Plant, AluminaCompany, Aluminium Rolling Company, Aluminium Foil Company, Aluminium New Material Company, Medium-thick Plate Branch, as well asIndonesian factory and American factory. In 2023, due to the full commissioning of the alumina project at the Indonesian factory, our pressure ?lterpressing water and ammonia nitrogen slightly increased.
During the report period, Nanshan Aluminium realized 100% compliant wastewater discharge. The related indicators are asfollows:
Wastewater discharge managementIn strict accordance with theWater Pollution Prevention and Control Lawand other laws and regulations of operation places, with"zero discharge and all recycling" as the target, Nanshan Aluminium formulated theControl Procedures for Sewage Discharge,to reduce wastewater discharge and enhance wastewater reuse rates. Each production department of Nanshan Aluminium hasconstructed internal sewage treatment facilities tailored to the product production process, ensuring compliant wastewaterdischarge. In addition to treating conventional pollutants like ammonia nitrogen, COD, and BOD, we also apply advanced sewagetreatment technologies such as activated carbon ?ltration and multi-medium ?ltration to address industrial wastewater containingheavy metals and waste oil, thereby reducing the concentration of pollutants in the discharged e?uent.During the report period, Nanshan Aluminium initiated the construction of a new integrated wastewater treatment system capableof processing 30 tons chemical wastewater from desulfurisation and fuel systems, and gray water from other processes per hour.The treated chemical wastewater will be utilised in production processes that meet water quality requirements, based on safesystem operation. In 2024, Nanshan Aluminium plans to construct a sewage treatment plant with a daily processing capacityof 6,500m
. This plant will receive and treat production and domestic sewage discharged from multiple production bases. Thesewage treatment plant employs MBR (membrane bioreactor) technology and ozone catalytic oxidation technology, with an onlinemonitoring system installed in the sand ?lter to ensure compliant discharge of all wastewater.
Hourly capacity for grey wate
tons
Nanshan Aluminium plans to build a new wastewatertreatment plant with a daily treatment capacity of up to6,500 cubic metres
During the reporting periodIn 2024
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Ecological system protection
Nanshan Aluminium incorporated valuable suggestions from theBiodiversity Conservation in Chinaand developed theManagement Procedures for Biodiversity Protection of Nanshan Aluminium. The procedures focus on four core areas: new (modi?edand expanded) construction projects, daily environmental management activities, biodiversity risk management, and assessmentof alien species. We establish speci?c and feasible management measures and operational procedures to minimise the adversee?ect on biodiversity during production and project operation.During the report period, we conducted biodiversity risk assessments for five production sites, including Alumina Company,Electrolytic Aluminium Company, Medium-thick Plate Company, Aluminium Rolling Company, Yantai Donghai Aluminium FoilCo., Ltd. in the Donghai Industrial Park and Nanshan Industrial Park. We assessed the affected species and potential sourcesof risk at each site and provided risk reduction measures, including "entry introduction and quarantine", "wastewater testing",and "introduced species approval". Based on the assessment results, we prepared theBiodiversity Risk Assessment Reportandpublicly disclosed it.All construction projects of Nanshan Aluminiumshould be entrust to quali?ed units for environmentalimpact assessment and identifying real effects onbiodiversity.
We prepare, release, periodically update and sharethe biodiversity action plans with all stakeholders.
We formulated a management procedure forwastewater, waste gas, noise, solid waste andoil & chemicals to reduce the adverse effect onbiodiversity.
For the alien species introduced through operationactivities accidently, the Security and EnvironmentDepartment evaluates and controls the risks andprepares a biodiversity evaluation report.
Management Procedures for Biodiversity of Nanshan Aluminium
Harmonious Coexistence, Safeguarding the Natural Environment
Water resource management
Water resource risk management
Aluminium processing and production have a huge dependence on water resources. Therefore, reasonable planning andmanagement of our water resource use are crucial for the production of Nanshan Aluminium and the lives of surroundingcommunities. Our production water mainly comes from municipal pipelines and seawater desalination. When in shortage of water,the local water supply company is responsible for communicating with Longkou Water Supply Company for introducing waterfrom the Yellow River. During the production, we strictly implement the Water Law, continuously optimise the water resourcemanagement system, prevent water resource risks, and reduce the risks that water resources may pose to our production andoperation.Nanshan Aluminium carries out water resource risk assessment on subordinate enterprises, and the assessment scope includesoccurrence probability, hazard rating and risk level of water resource risks. Based on the water resource risk analysis results in2023, we compiled theWater Resource Risk Assessment Report.
Through analysis of water supply and water consumption, weidenti?ed areas with excessive water consumption and formulated targeted water conservation measures, optimised the closed-loop water resource consumption, and ensured a stable supply of water for production and operation.
Make precedent water resource riskwarning and announcementCarry out transparent and compliantevaluation and research on potentialwater resource risks
Continuously monitor the waterdischarge and quality, and control theoccurrence probability of potentialwater resource risks with active riskcontrol measures
Periodically disclose the monitoringresult of water pollution dischargeand discharge reduction plan, andrealise transparent management ofwater resource risks
Key Points of Prior, In-process and Post-action Management of Water Resources
Link:
Water Resource Risk Assessment Report of Shandong Nanshan Aluminium Co., Ltd.
Water resource consumptionDuring the operation, Nanshan Aluminium strictly abided by theRegulations for the Administration of Water Collection Licensesand Water Resources Feesand other laws and regulations, and attached importance to water resource management andconservation in the whole production and operation process.In 2023, the Company implemented a monthly water intake and consumption plan and successfully met its water consumptiontarget by implementing a series of water conservation measures, including the reuse of condensed water and over?ow water. Theactual water consumption was 215,111m
less than planned.To meet the water demand of the Donghai Thermal Power Plant's generating units, prevent supply risks, and avoid productionstoppages, we introduced seawater desalination equipment to convert seawater into freshwater to support production and reducethe pressure on the water supply network. In 2023, we used 9,202,821 tons of seawater, successfully producing 3,549,241 tons offreshwater, with a utilisation rate of 38.57%.Nanshan Aluminium continues to implement a comprehensive strategy for water resource management, adhering to the principlesof "multi-purpose, grading and cascade utilisation". We are committed to promoting the rational use of water resources throughtechnological transformation and recycling. During the report period, the Company conducted systematic reviews and optimiseddesigns for production lines with high water resource consumption, e?ectively reducing water waste through the introduction ofwater-saving technologies and processes. Additionally, Nanshan Aluminium continuously optimises its internal water circulationsystem, signi?cantly improving the reuse rate and utilisation e?ciency of industrial water through the recycling of rainwater andwastewater, providing strong support for the Company's long-term sustainable development.
Prior control In-process control Post-action control
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Through our series of measures, the water reuse rate of the Company increased signi?cantly in 2023, rising from 2.23% in 2022 to
15.27%. During the report period, the water resource consumption indicators of Nanshan Aluminium are described in the following
table:
Recycling of rainwater in red mud reservoir
Flushing water reuse
Technology transformation of ultra?ltration back washing water
We have completed the diversion transformation of rainwater and sewage in the factory and living area of LongkouDonghai Alumina Co., Ltd., so the rainwater in factory area can be collected and recycled through a sedimentation tank
In Longkou Donghai Alumina Co., Ltd., the water for ?ushing the "running, emitting, dripping and leaking" products inalkaline workshop as well as for the ?oor and equipment is recycled by a special sewage pump station
We adjust the operation mode and increase the ultra?ltration time and chemical cleaning frequency according to theraw water quality, so as to reduce the ultra?ltration water and save water resources
Water resource consumption indicator
Indicators Unit 2022 Data 2023 DataTotal water withdrawals 10,000m
482 737Municipal water withdrawal 10,000m
482 737Total water consumptions 10,000m
493 760Total volume of circulating andreclaimed water
10,000m
11 22.55
Data scope covers includes Nanshan Electrolytic Aluminium Factory, Nanshan Aluminium Pro?le Plant, Alumina Company, Aluminium RollingCompany, Aluminium Foil Company, Aluminium New Material Company, Medium-thick Plate Branch, as well as Indonesian factory and Americanfactory. In 2022 and 2023, the total water withdrawal of water resource consumption did not include surface water and groundwater, so the dataresult is 0.
Harmonious Coexistence, Safeguarding the Natural Environment
People FirstStanding by Each Other inJoint Hands
Nanshan Aluminium places great emphasis on the pivotal role of high-qualitytalent in its development. The Company is committed to creating an inclusive,safe, and democratic working environment, ensuring the legitimate rights andinterests and well-being of employees. It provides a scientific and efficienttraining and promotion mechanism for every like-minded partner, workingalongside employees to achieve mutual success.
Urgent needs of talents
Equal employment
Nanshan Aluminium recognises that employees are the driving force behind its development. The Company adheres to fair andjust recruitment and employment mechanisms, providing a platform for each employee to realise their self-worth. It aims to builda talented team that aligns closely with the Company's development needs, fostering mutual growth and creating a shared future.
In accordance with International Labour Organization (ILO)conventions and relevant laws such as theLabour Law, NanshanAluminium has developed internal systems including the
Management Procedure for the Prohibition of Discrimination
and theManagement Procedures for Protection of UnderageWorkersto ensure compliant employment management.In 2023, Nanshan Aluminium was honored with the "ChinaPreferred Employer of the Year 2023" by Zhaopin, re?ecting itsoutstanding employment management practices.The Company is committed to creating an employer imagethat employees can trust. It focuses on dual selection based onjob requirements and employee intentions, actively building ateam with a diverse cultural background. Nanshan Aluminiummaintains a zero-tolerance attitude towards any form ofdiscrimination or harassment based on factors such as race,gender, skin colour, or religious belief.
The Company upholds the principle of mutual respect,continuously improving internal systems such as the
Management Procedure for the Prohibition of Discrimination,Management Procedures for Protection of Underage Workers,Management Procedures for Prohibition of Forced Labour
andManagement Procedures for Prohibition of Child Labourand Remedial Measures. These systems ensure that allemployees enjoy equal rights and interests in recruitment,employment, collective bargaining, and association freedom.Nanshan Aluminium strictly implements employee identityveri?cation and veri?cation processes to eliminate the use ofchild labour and forced labour, and takes remedial measuresfor any violations of employment regulations.
People First, Standing by Each Other in Joint Hands
The Company has also developed and continuously optimised the internal system of theManagement Procedure for the Right toFreedom of Organising Trade Unions and Collective Bargaining, fully respecting the rights of all employees to freedom of speechand association. In 2023, we had no employment of child labour or forced labour; and the rate of collective agreement signing byemployees was 100%, and the proportion of employees covered by worker representatives was 100%.
Production personnel
MasterSales personnel
BachelorTechnical personnel
Junior collegeFinancial personnel
Below junior college Administrativepersonnel
By specialty
By educationbackground
Employee Structure of Nanshan Aluminium in 2023
The following data statistic scope includes Chinese on-duty employees (including overseas factories).
Number of employees
15,255Person(s)
By company
By gender
30 years old and below
10,3163,661
11,594
7634614,446
1,8743,734
9,534
4,939
2,362
3,627
11,280
2,586
1,040
9,266
31-49 years old50 years old and above
Parent companyPrincipal branches
Senior managementMiddle managementFrontline employees
MaleFemale
By age
By level
By the end of the report period, Nanshan Aluminium had a total of 15,255 employees, categorised as follows:
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Talent attractionNanshan Aluminium places a strong emphasis on ethics andstrives to build a highly skilled and professional team. We haveestablished the Equipment Management Department and theInternational Business Department and integrated personnelfrom departments such as flat-rolled products, aluminiumpro?les and aviation pro?le extrusion. This ongoing optimisationof our personnel management injects continuous drive intothe high-quality development of our enterprise. Furthermore,
Nanshan Aluminium attracts talents who align with theCompany's development needs and values through campusrecruitment, core talent introduction and other methods.During recruitment, we integrate our resources, promote localemployment, provide numerous job opportunities for localresidents, and o?er competitive welfare bene?ts to employees,thereby contributing to local economic development.Highlights of Nanshan Aluminium's Recruitment Activities in 2023In 2023, Nanshan Aluminium conducted spring and autumn campus recruitment drives for undergraduate studentsmajoring in metallurgy, metal materials, mechanical and electrical engineering, and other related fields based on theprinciple of matching people with positions and focusing on key training areas. This e?ort aimed to continuously enrichNanshan Aluminium's pool of high-end skilled talents and provide fresh talent for technical management positions invarious workshop departments. The Company also integrated its recruitment e?orts with the training of frontline technicalbackbone personnel to cultivate a reserve force for the Company's development. By the end of the report period, NanshanAluminium had signed contracts with 214 fresh graduates.
Campus recruitment
Nanshan Aluminium understands the importance of high-end talents in driving continuous development and growth. TheCompany uses a combination of internal recruitment and external hiring to attract high-end technical research and developmentand management personnel for leading core positions, e?ectively ?lling the talent gap and further enhancing the Company'score competitiveness. By the end of the report period, the Company had introduced 47 core and cutting-edge talents.
Recruitment for leading core positions
In 2023, Nanshan Aluminium conducted the recruitment of frontline ordinary employees in an orderly manner through thepolicy of cultivating new employees under the guidance of experienced employees.
First-line ordinary employee recruitment
The Company also pays continuous attention to employee turnover and retention. We provide a variable remuneration structure foremployees of di?erent ranks, consisting of basic salary, performance salary, and piece-rate salary. Additionally, the Company regularlyconducts differentiated performance assessments and evaluations for employees of all ranks, including front-line employees, toencourage them to continuously improve their job capabilities and work performance, thus realising their self-worth.
A salary paid based on theevaluation of the position'scontribution, capabilities, andperformance accumulation ofthe employee.
A salary paid based on a certainpercentage of the basic salaryor a certain amount of salaryas the base for performanceassessment, and di?erentialpayments are made based onthe actual assessment.
A salary paid based on thequantity of work completed bythe employee and the piecerate specified in advance,considering quality indicatorsand equipment capacity.Nanshan Aluminium's Remuneration Structure
Basic salaryPerformance salary Piece-rate salary
People First, Standing by Each Other in Joint Hands
Nanshan Aluminium's performance assessment mechanism for employees at various levelsSenior management
personnel
Conduct di?erentiated assessments of each entity's management team based on the Company'sstrategic development, unit production and operation, and the responsibilities of each leader.
Middle-levelmanagement personnel
Decompose unit operating indicators based on the assessment of the management team, andcascade them down to each workshop in each sub-factory for assessment.Functional departmentsand technical personnel
Adopt a one-person-one-table assessment method, and evaluate individuals based on their jobresponsibilities and actual work completion against set indicators.Frontline employees
Each sub-factory and department of the Company formulates corresponding standard operatingprocedures and daily behavioural norms based on company regulations and employee jobrequirements. Employees are assessed di?erentially every month according to the correspondingassessment criteria.The Company considers the turnover rate as a key performance indicator for leaders of each entity and department. To maintaina stable workforce, the Company improves employee remuneration and welfare benefits, provides heatstroke prevention andcooling supplies during hot summers, and organises a variety of recreational activities. In 2023, we respected employees' personalpreferences and prioritised internal transfers to retain high-quality talent and reduce turnover. By the end of the report period,Nanshan Aluminium's employee turnover rate was 17.48%
.
Turnover rate = Number of employees leaving in the year / (Number of employees at the beginning of the year + Number of new employees duringthe year) * 100%.
Employee Turnover of Nanshan Aluminium in 2023 （Unit: %）By gender By age
By rank
Seniormanagement
2.13
Male
17.28
Female
18.09
30 years oldand below
22.14
50 years oldand above
19.00
31-49 years old
15.04
Middlemanagement
6.11
Frontlineemployees
18.08
Employee turnover rate
17.48
%
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Talent cultivation
Employee training
Nanshan Aluminium places a strong emphasis on cultivating high-quality talents, recognising them as the driving force behindthe Company's sustainable operations. Through a personalised training system and a clear and de?ned promotion developmentmechanism, the Company is dedicated to nurturing professional talent, empowering Nanshan Aluminium's sustainable future.Nanshan Aluminium leverages the educational resources of the Nanshan Training Academy. It has tailored training plans to meetthe growth needs of employees at different levels and positions. The Company fully utilises various channels such as onlinelearning platforms, offline training, and internal trainers to promote multidimensional enhancement of employees' businesscapabilities, providing strong support for their growth.Highlight measures for employee training of Nanshan Aluminium in 2023Skill and leadership training
Nanshan Aluminium conducts training programs for reserve cadres to enhance their leadership skills continuously.
Nanshan Aluminium organises training programs such as new apprenticeship systems, gold and blue-collar training,and enterprise self-assessment, involving job types mainly including aluminium electrolysis workers, alumina extractionworkers, electricians, ?tters and among others.
Standardisation and Normalisation Management Training forProduction Systems
New Apprenticeship Program
Multi-functional Unit Maintenance and Upkeep Training
"Golden blue collar" Training Project
People First, Standing by Each Other in Joint Hands
University student training
Acquisition of professional quali?cation certi?cates
Educational improvement
In 2023, Nanshan Aluminium conducted training programs such as Nanshan Star University Student Training to helpnewly hired graduates quickly adapt to their positions.
Nanshan Aluminium benchmarks against the excellent practices of peers and provides subsidy bonuses to employeesholding registered safety certi?cates. This enhances the enthusiasm for certi?cation among all employees and improvesthe overall retention rate of professional talents in the Company.
Nanshan Aluminium collaborates with Yantai Nanshan University to provide academic advancement support for allemployees. All employees can achieve academic advancement through forms such as correspondence education or self-registration in Yantai Nanshan University, following the voluntary principle.
Employee Training of Nanshan Aluminium in 2023
MaleFemale
Senior managementMiddle managementFrontline employees
405,783
505,61026,7051,610128,142
During the report period, Nanshan Aluminium conducted a total of 3,679 training sessions, with a total training hours of 533,925hours and an average training hours per employee of 35 hours.
Training hoursof employeesclassi?ed bygender
Training hoursof employeesclassi?ed by
rank
Number of trainees
15,255 Person(s)
Total training time533,925Hours
Training coverageof employees
%
Average traininghours per employee
Hours
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Employee promotionTo further tap into high-potential talents, Nanshan Aluminiumprovides a career development path that combines vertical andhorizontal promotions for employees in six major sequences:
operation, function, management, logistics, marketing, andtechnology. This motivates employees to face challengesand continuously surpass themselves. We also continuously
optimise the organisational structure, conduct orderlyperformance assessments and dynamic management formanagement positions, continuously enhance the leadershipand performance capabilities of management personnel, andachieve "giving full scope to the talents and matching peoplewith positions".Sequence Promotion Case of Nanshan Aluminium
Promotion channel of operation sequenceHelper
Assistant
Deputy Operator
Chief Operator
Technician
Senior Technician
Promotion channel of technology sequenceEmployees
Technical Engineer
Assistant Engineer
Engineer
Senior Engineer
ProfessionalEngineer
Promotion channel of management sequence
Specialist
Director/Team Leader
Deputy Head/Head
Deputy FactoryDirector/FactoryDirector
Deputy GeneralManager/General
Manager
People First, Standing by Each Other in Joint Hands
Employee care
Bene?ts
Nanshan Aluminium understands that the growth of the Company relies on the efforts of every like-minded partner. Adheringto the principle of "people first", Nanshan Aluminium accurately target employees' common needs and provide them with acompetitive remuneration and welfare mechanism in the industry. We continue to broaden democratic communication channelsand convey corporate humanistic care through practical actions.
As a caring company, Nanshan Aluminium not only provides mandated bene?ts to employees but also o?ers non-salary bene?tsincluding welfare subsidies, performance rewards, welfare housing, and free travel. Through multi-dimensional humanistic careand welfare guarantees, we continuously enhance employees' happiness and satisfaction.
Employee Welfare System of Nanshan Aluminium
Paid annual leave, funeral leave, maternity leave, marriage leave and breastfeeding leave
? Welfare allowance: Seniority allowance, overseas allowance, transportation allowance, high-temperature allowance,
health allowance, heating allowance, holiday bene?ts, birthday allowance, night duty allowance, full attendance bonusand meal allowance
? Performance incentive: Overproduction bonus, project bonus and excellence bonus? Welfare housing: Free dormitories and daily necessities such as water, electricity, and heating facilities for non-localemployees, and gyms, sports venues, libraries, etc. for employees
? Free travel: Free visit of AAAAA Nanshan tourist attractions for internal employees
Mandated bene?ts
Supplementary bene?ts
The Company regularly enriches employees' leisure activitiesthrough activities such as artistic performances and basketballgames, helping employees achieve work-life balance. We showcare and concern for employees in every detail, enhancing teamcohesion and centripetal force. We also pay attention to theneeds of female employees, e?ectively implement the internalsystem ofManagement Procedures for Protection of Women
Employees, set up specific places such as clinics, maternityrest rooms, and nursing rooms according to actual needs, andcontinue to convey care to female employees. In addition, theCompany focuses on the needs of employees in straitenedcircumstances, provide regular condolences and assistanceto the employees with difficulties and help them overcomedi?culties.
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Democratic communication
Nanshan Aluminium attaches great importance to democraticcommunication. Based on internal systems such as theEmployee Complaint (Appeal) Management Procedure,Management Procedure for Staff RepresentativeandInformation Exchange, Negotiation and Control Procedures,the Company encourages all employees to develop a sense ofownership and reflect their own demands through channelssuch as suggestion boxes, e-mail complaints, phone complaints,
and direct communication with leaders, providing suggestionsfor the Company's development. The Company's managementcan understand employees' thought through conferencesof employee representatives, pre/post-shift meeting andsymposiums, listen to and respond to reasonable suggestionsand feedback from employees, and effectively enhance thecohesion of the employee team.
Pre/Post-shift MeetingSymposium in Power PlantSymposium in Alumina CompanyDemocratic Communication Activities of Nanshan AluminiumTo further consolidate the achievements of democraticmanagement, the Company conducts satisfaction surveysfor all employees every year and analyses and improves thede?ciencies in the Company's operation process based on theresults. By the end of the report period, the average employee
satisfaction rate was 88.54%. We will continue to combinethe survey results to enhance employee satisfaction throughimprovements in employee training, organisation of recreationalactivities, and logistic service guarantees.
Spring Festival Welfare Distribution
Trekking in Nanshan Aluminium
Basketball Game in Electric Power Company
Tug-of-war in Alumina Company
Badminton Match in Aluminium Pro?le Company
Spring Festival Chinese-Indian EmployeesFriendship Association in Indonesian Plant
People First, Standing by Each Other in Joint Hands
Safety production
Safety management
Nanshan Aluminium considers safety production as the lifeline and bottom line of the Company's development. With a well-established safety management system, the Company implements e?ective health and safety management, safety risk preventionand control, and safety culture promotion to strengthen its safety production defense line, e?ectively safeguarding the physicaland mental health of employees.
Nanshan Aluminium complies with safety production-related laws and regulations such as theProduction Safety Lawand hasformulated internal management systems covering the Company and its subsidiaries, including theSafety Management StandardSystemand theSafety Production Responsibility System for All Employees. The Company continuously optimises the safetymanagement structure consisting of the Company's General Manager, the Safety Management Department and each subsidiary,ensuring the smooth implementation of safety production work from top to bottom.Safety Management Structure of Nanshan Aluminium
The Company has established and gradually implementedsafety management goals covering all subordinate subsidiariesand contractors. Safety performance is listed as one of theimportant indicators for executive remuneration performanceassessment. In the event of a serious or major safety accident,executive year-end bonuses will be deducted proportionately.In 2023, the Company established a safety productionresponsibility system for all base front line employees and areward and punishment mechanism for middle and senior
management, further refined the list of safety productionresponsibilities for all employees, and e?ectively implementedsafety production responsibilities at all levels, helping to createan atmosphere of safety management with full participationand shared responsibility. By the end of the report period,the Company has successfully achieved its goal of a work-related accident rate below 1‰, with no serious or major safetyaccidents occurring. The actual work-related accident rate forthe year was 0.79‰.Safety Management Goals of Nanshan Aluminium
No casualties
No ?res or explosions
Work-related accident rate below 1‰
No casualties
No ?res or explosions
Work-related accident rate of 0.79‰, successfullyachieving safety management goals
Safety Management Goals of Nanshan AluminiumAchievement in 2023
General manager of theCompanyOrganise relevant departmentsto carry out safety managementcomprehensively
Supervise di?erent units to ful?ltheir safety production entityresponsibilities and implementthe safety productionresponsibility system
Take charge of daily safetymanagement and safetyinspection work as anexecutive body
Safety Management
Department
Branches
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Security system certi?cation
Safety risk prevention and control
The subordinate companies in Nanshan Aluminium's operationplaces have actively promoted the certification of safetymanagement systems. By the end of the report period, allbranches of Nanshan Aluminium in different operation placescarried out safety management based on the OccupationalHealth and Safety Management System Certi?cation (ISO 45001)
and safety production standard certi?cation requirements, whileall domestic companies passed the Class II safety productionstandard certification, and established and improved a dual-prevention system. The Indonesian Plant has also passed theISO 45001 external audit of certi?cation
.
Nanshan Aluminium adheres to the principle of "preventionfirst, control as the main focus". It conducts internal safety riskassessments and audits in a three-year cycle. Based on theassessment results of the Company's safety management status,it clarifies the methods, cycles, and requirements for safetyemergency drills and safety emergency plan compiling andtraining, and comprehensively prevents potential safety risks.In 2023, the Company formulated and implemented theMajorHidden Safety Hazards Special Inspection and Recti?cation2023 Action Implementation Plan of Nanshan Aluminiumbased on theStandards for Determining the Potential Risksof Major Accidents of Industry and Trade Enterprises(OrderNo. 10 of the Ministry of Emergency Management). Thisprovided guidance for the Company's safety hazard work.An Activity Leadership Working Group was established with
the Company's Chairman of Board as the main person incharge to guide and supervise the major hidden dangerelimination and rectification stages, including publicityand learning, inspection and diagnosis. The Company alsocombines the results of the hidden danger elimination topromptly rectify major safety hazards discovered and reviewsthe effectiveness of related safety training and emergencydrills to achieve the closed-loop management of safetyproduction.During the report period, the Company conducted a total of9 safety inspections focusing on major hidden dangers andseasonal checks and carried out special governance work foridenti?ed safety hazards. By the end of the report period, allsafety hazards have been eliminated.
Except for the newly commissioned Recycled Aluminium Company, the ISO 45001 occupational health and safety management system certi?cationcoverage rate of the subsidiaries of manufacturing of Nanshan Aluminium in China is 87.5%. The Indonesian Plant has passed the ISO 45001external audit of certi?cation. We will continue to strengthen the management of overseas operating subsidiaries, promote the implementation ofoccupational health and safety management in strict accordance with the ISO 45001 standard.
Special Inspection of Deep Well Casting inthe Flat-Rolled Product Division
Fire Protection Special Inspection of theElectrolytic Aluminium Company
Hazardous Chemicals Special Inspectionof Donghai Power PlantNanshan Aluminium Safety Inspection Projects (Selected)
People First, Standing by Each Other in Joint Hands
Intelligent video surveillance system for vehiclesIn 2023, Nanshan Aluminium established an intelligent video surveillance system for vehicles to have an intelligentsurveillance of vehicles and drivers and enhance the vehicle transport safety.
Establishment of safety control systems
Safety inspection and special recti?cation
Summer ?re safety inspection
In 2023, Nanshan Aluminium integrated ?re inspections with the Company-wide ?re safety responsibility system, andconducted a summer ?re safety inspection. The inspection focused on identifying safety hazards in key ?re-prone areassuch as special operations and ?ammable/explosive zones, and implementing relevant corrective measures based onthe identi?ed risks.Special recti?cation campaign of hazardous operationsIn 2023, Nanshan Aluminium launched a special rectification of hazardous operations. This initiative aimed tosystematically identify and evaluate potential safety risks related to operation preparation and on-site management,clearly de?ning hazardous factors and devising risk control measures.Safety inspection before holidaysIn 2023, Nanshan Aluminium concentrated on areas including natural gas, hazardous chemicals, special operations,and general production safety, and organised a safety inspection before holidays. This effort further reinforcedsafety risk management, hidden danger elimination and control, e?ectively preventing and mitigating major safetyproduction risks and hazards.
Highlights of measures implemented to reduce safety risk in 2023 by Nanshan Aluminium
Risk assessment for limited space operationIn 2023, Nanshan Aluminium developed theLimited Space Operation Safety Management Systemto assess risks inhazardous places such as limited space, promoting safety and emergency management in limited spaces.
Safety risk assessment
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Aligned with theAppraisal Standard for Human InjuryDegreeand industry accidents, Nanshan Aluminiumformulated and continuously improved the safetyaccident reporting process, clarifying safety managementresponsibilities and report deadlines to protect employees'physical and mental health. During the report period,Nanshan Aluminium had 12 industrial accidents, with thework-related accident rate of 0.79‰ and the lost time injuryrate (LTIR) of 0.39.
The Company has not experienced anymajor accidents in the past three years.Additionally, Nanshan Aluminium hires third-partyorganisations annually to conduct comprehensive safetyproduction diagnoses on high-risk units regarding safetymanagement systems and on-site safety. This effectivelyidentifies risks and harmful factors in the Company'ssafety management process. For each diagnosed issue,the Company analyses and discusses it, formulatescorresponding safety risk response measures, issues safetystatus evaluation reports, and continuously improves itssafety management level.
Calculation formula: Injury rate per million working hours = number of injured employees / (employees * working hours per day * working days peryear) *10
.
Third-party Safety Evaluation Report of Nanshan Aluminium in 2023
Safety culture publicising and implementationNanshan Aluminium continued to deepen the culture of "safety?rst" through employee training. Starting from legal regulations,safety rules and regulations, job operation procedures,emergency plans, occupational health, dual preventionsystem, fire safety knowledge, safety professional knowledge,and accident cases, the Company strengthened employees'
safety awareness from multiple perspectives and scenariosand continuously improving their ability to identify and controlsafety risks. By the end of the report period, Nanshan Aluminiumhad conducted a total of 3,072 safety training sessions, with anaverage training duration exceeding 24 hours per person.
Limited Space Operation Safety Trainingof Flat-Rolled Product Division
Special Safety Training in ElectrolyticAluminium Company
Factory Headquarters Monthly Training inElectric Power CompanySafety Training Organised by Nanshan Aluminium
Nanshan Aluminium hadindustrial accidents
Work-relatedaccident rate
0.79
‰
Lost time injury rate (LTIR)
0.39
Company major accidents in thepast three yearsNot experienced
During the report period
People First, Standing by Each Other in Joint Hands
Contractor safety management
Nanshan Aluminium extends its commitment to health andsafety to its collaboration with contractors. In accordancewith ASI requirements, the Company has formulated andcontinuously refined theContractor (External Contracting)Safety Management Systemand established a health and safetytarget for contractors with a work-related accident rate below1‰. All contractors are required to comply with and e?ectivelyimplement these standards. The Company diligently monitors
the safety performance of contractors, implementing a series ofsafety management measures such as on-site hidden dangerelimination and contractor safety training to safeguard the well-being of contractor employees. In 2023, Nanshan Aluminiumconducted safety audits for 10 contractors focusing on qualitymanagement systems, occupational health, work at height, andon-site safety.Contractor safety management measuresContractortendering
Training tocontractors
Require all entering contractors to meet 100% of ASI safety management requirements and providequalification documents such as safety certificates, special operation personnel certificates, andconstruction grade certi?catesRequire all contractors to sign a safety management agreement, clarifying the safety productionmanagement responsibilities of both the Company and the contractorRequire contractors to voluntarily comply with safety regulations applicable to the operating location andactively co-operate with Nanshan Aluminium in conducting safety hazard elimination and on-site auditsRegularly conduct on-site inspections for special hazardous operations and high-risk operations to ensurethe implementation of safety measuresImplement a work approval system for operations, and continuously strengthen safety protection forhigh-risk operations by contractors
Urge the contractors to carry out daily safety education and training on construction personnel andensure the construction personnel are trained before entering the construction site.
Dailymanagementof contractors
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Occupational health
Nanshan Aluminium diligently upholds the responsibility for ensuring employee occupational health and safety. The Company hasconstructed and continuously enhances the occupational health and safety management system and co-ordinate various safetyculture promotion activities to e?ectively reduce occupational health and safety risks in the workplace.The Company strictly complies with occupational safety-related laws and regulations, such as thePrevention and Control ofOccupational Diseasesand theRegulations on Supervision and Management of Occupational Health in Workplace. It also refersto industry best practices and company health and safety objectives to continuously optimise internal systems, such as the
Management Procedures for Infrastructure and Work Environment. These e?orts systematically implement the identi?cation andcontrol of occupational hazards. In 2023, through regular employee physical examinations and improvements to the workingenvironment, the Company ensured the life and health of every employee were protected from the source.Occupational health and safety protection measures of Nanshan Aluminium
The Company has established theSafety Production Risk Grading and Control Management Systemand theHidden DangerElimination and Governance Management System, clarifying the standards and basis for risk identi?cation and judgment.The Company continues to promote the grading control of occupational disease hazards, elimination and governance ofhidden dangers, identification of hazards, risk assessment, and control work, achieving the normalised management ofoccupational hazard risks.
Identi?cation and control ofoccupational hazards
Provide labour protection supplies to employees free of charge according to job requirementsDistribute heatstroke prevention and cooling drugs and food during the summer high-temperature seasonConduct on-site occupational hazard factor detection and strengthen on-site protection facilities management andcontrol based on detection data
Working environmentimprovement
Conduct screenings of employees' physical health status, formulate targeted control measures for diseases such ascardiac disorders, abnormal blood pressure and blood sugar, and issue employee health risk noti?cation letters.
Carry out regular employeephysical examinations
People First, Standing by Each Other in Joint Hands
Nanshan Aluminium actively embraces the ethos of collaboration and sharedresponsibility, striving to foster a mutually bene?cial and transparent relationshipwith suppliers. We are dedicated to enhancing supplier management,standardising the raw material procurement process, and partnering withsuppliers to uphold ESG responsibilities. While we are committed to building aresponsible supply chain, we recognise the importance of actively contributing tosociety to ensure the long-term and sustainable development of our enterprise.We prioritise engagement in public welfare and charitable initiatives within ouroperation places, aiming for reciprocal benefits and integration with the localsociety.
Shouldering ResponsibilityCo-creating a Better Future
Responsible supply chain
Developing a responsible supply chain is crucial for ensuring the sustainability of our business operations. Nanshan Aluminiumhas standardised its whole process supplier management process to ensure that suppliers adhere to our sustainable developmentguidelines, particularly in environmental management, health and safety, business ethics, and human rights. We continuouslyenhance the resilience of our supply chain, striving to create a clean, transparent, and sustainable procurement environment.Whole process supplier management
Nanshan Aluminium adheres to the purchasing principle of fairness, impartiality, and openness, strictly complying with laws andregulations such as theCivil CodeandTendering and Bidding Law.We formulated internal regulations and procedures, such astheSupplier Management Regulations, Management Procedures for Implementation of ASI by Suppliers (Contractors and ServiceProviders)andManagement Procedures for Prohibiting the Use of Con?ict Minerals, to rigorously govern our procurement andsupplier management processes.
Supplier approval
We have clear approval conditions for the suppliers and carry out prequalification, small batch trial and field audit to confirmwhether they have the ability in long-term and stable supply. During the report period, we streamlined the open tendering processfor long-term co-operative suppliers, consolidating online, temporary, and o?ine tendering into a uni?ed tendering platform. Thisinitiative has enhanced the standardisation, informatisation, and transparency of our procurement process. All tendering projectinformation is publicly disclosed on our o?cial website and China Bidding Network and other platforms, with communicationchannels provided for reporting any irregularities, ensuring the openness and fairness of our tendering process.
Whole Process Supplier Management
Supplier approvalSupplier evaluation
Exchange and co-operation with suppliers
Supplier exitOpen tendering ononline platformSelf-recommendationSupplier classi?cationSigning ASI SocialResponsibilityCommitment Letter
Field surveyAssessment and gradingon suppliersAdjusting procurementgrading of suppliers
Supplier trainingPeriodic exchangeIndustrial exhibitionand annual meeting
Elimination ofunquali?ed suppliersaccording to evaluationscores
Supplier Approval Process of Nanshan Aluminium
Quali?cation veri?cationField investigation
Approval andwarehousing
Suppliers are required to submit related informationThe Supply Department audits the business licenses,three-year ?nancial statements, co-operationcontracts and account opening permitsThe supplier and supply information is ?led andtabulatedThe preliminary audit on the quali?cations ofsuppliers is completedSmall batch trial
The Supply Department formulates anexamination plan in advanceExamine the operation of suppliers asplannedConduct the ?eld survey on bid-winningsuppliers periodicallyComplete the supplier approval evaluationform
Suppliers that passthe assessmentare included in thequali?ed supplierlist
Shouldering Responsibility, Co-creating a Better Future
In 2023, Nanshan Aluminium further refined its supplier classification based on the criticality of supplied materials to productprocessing. Suppliers are categorised into Class I, Class II, and Class III, each subject to specific tendering and managementprotocols. In implementing the classi?cation and management of suppliers, we adhere to ASI management standards to promoteresponsible aluminium procurement, regularly supervise and ensure that suppliers meet ASI requirements.
We have established scoring and evaluation mechanism for suppliers to assess suppliers based on indicators such as productdelivery timeliness and product quality acceptance rates. These evaluations are conducted monthly, and the results are usedto generate annual supplier performance scoring. Suppliers are then categorised into four levels based on these scorings, withprocurement prioritised according to their level.
Supplier Classi?catio
Supplier evaluation and exit
%
%
%
Class I suppliers primarily provide rawmaterials that directly a?ect the qualityof the ?nal product or are critical to themanufacturing process. They includesuppliers whose products, if found non-compliant, could lead to significantlosses due to their direct impact onproduct quality.
Class II suppliers have a significant impacton final product quality but do not requirehigh safety performance. Within Class II, wefurther categorise suppliers into key Class IIsuppliers and important Class II suppliers.
Class III suppliers have direct contactwith the final product but have aminimal impact on its quality. Thesesuppliers provide materials that donot require high safety performancestandards.
Class I suppliers
Class II suppliersClass III suppliers
Supplier Scoring and Evaluation Mechanism
are categorised as Class I suppliers and are given priority in procurement co-operation.are categorised as Class II suppliers. They undergo annual ?eld audits to assistin improvement and are closely monitored.are categorised as Class III suppliers. They undergo annual ?eld audits toassist in improvement and are closely monitored.if there are other suppliers providing the same product/process/service whocan fully meet our requirements, we will terminate procurement from theunderperforming suppliers and revoke their quali?ed supplier status.
Assessment results
Suppliers scoring above 90 (inclusive)Suppliers scoring between 80 (inclusive)and 90Suppliers scoring between 70 (inclusive)and 80For suppliers scoring below 70
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
In addition, we conduct regular annual ?eld audits and inspections of suppliers. Di?erent categories of suppliers are subject tovarying frequencies of performance evaluations to e?ectively monitor co-operation quality. Based on the assessment results, wepromptly disqualify underperforming suppliers.
Enhance the resilience of supply chainThe Company consistently optimises the supply chain structure, establishes prudent safety stocks, deepens collaboration withinthe supply chain, and consistently identi?es and mitigates supply chain risks. These e?orts are aimed at preventing disruptionsin the supply chain, ensuring a stable supply of strategic resources, and comprehensively enhancing the supply chain's ability towithstand risks, thereby strengthening its ?exibility and agility.In 2023, we continued to reduce supply chain risks by enhancing the ?exibility and reliability of our supply chain through diversi?edsupply strategies. The Procurement Department closely collaborated with various business departments, considering factors suchas commodity and service prices, supplier assurance capabilities. In the tendering process, we adopted a multi-lot bidding modelto stimulate market competition, selecting the most cost-e?ective and high-quality service providers for each category of goods.
Supplier Performance Assessment, Rating, and Field Audit Frequency
Monthly performanceassessment, annualperformance rating, supplier?eld audit every three years(adherence to special customerrequirements if applicable)
Monthly performance assessment,annual performance ratingfor suppliers with 6 months ofconsecutive performance, ?eld auditof Class II key suppliers every threeyears (adherence to special customerrequirements if applicable)
Monthly performanceassessment, annualperformance rating for supplierswith 12 months of consecutiveperformance
Class I key suppliers
Class II key suppliers andClass II important suppliers
Class III general suppliers
During the report period, we conducted comprehensive capacity-buildingfor the procurement team, focusing on issues like supplier management,business communication and negotiation, and fine cost control. Wecustomised and implemented 15 professional training sessions, totalling 25hours, covering 450 participants. These trainings signi?cantly strengthened theteam's professional knowledge base, laying a solid foundation for establishingdeeper co-operation with suppliers. Moreover, to build solid and efficientco-operation with suppliers, we invite high-quality suppliers to industryconferences and company annual meetings every year. This aims to deepenmutual understanding and grasp of industry dynamics and strategic co-operation, jointly promoting the progress and development of both parties.
totalling
hours
covering
participants
Safety stock andemergency incidentresponseEnhance strategic
supplier co-
operationmanagementSupply Chain Risk Management Measures of Nanshan Aluminium
Measure Description
Conduct regular emergency drills for material interruptions to cope with supply disruptions caused byemergencies, ensuring the stability and continuity of the supply chain to maintain normal business operationsMonitor safety stocks to ensure the Company has su?cient backup supplies to respond quickly and providealternative products or servicesEstablished the system ofSupplier Whitelist Managementto deepen strategic partnerships with high-qualitysuppliers, ensuring the stability of material supply in terms of timing, price, and qualityClosely co-operate with 2-3 long-term strategic suppliers in terms of bulk commodities and other productionguarantee materials and establish stable co-operation with at least ?ve or more suppliers in terms of routinematerials
Shouldering Responsibility, Co-creating a Better Future
The ?eld ?eld audit contents mainly include: 1) QMS: Conduct related audits around the quality management system; 2) EHS: Conduct relatedaudits around system management, occupational health, occupational safety, work at heights, chemicals, emergency preparedness, etc.; 3) CSR:
Conduct related audits around labour rights and interests, human rights, salary bene?ts, fair trade, anti-corruption, responsible procurement,supplier management, management systems, etc.
Supplier Field Audit Assessment Factors
QMSEHSCSR
QMS (Quality Management System)
EHS (Environment, Health and Safety)
CSR (Corporation Social Responsibility)
Supplier ESG management
To enhance the development of a responsible and sustainable supply chain, Nanshan Aluminium encourages and urges suppliers to actively embracetheir responsibilities for sustainable development. We integrate suppliers' performance in sustainable development into our evaluation scope andprovide improvement suggestions based on the results. For suppliers whose performance in sustainable development falls below standards, we willissue warnings, reduce, or even terminate supply co-operation based on the actual situation.
In 2023, to ensure alignment between suppliers' sustainable development
guidelines and our own, the Company has incorporated ASI requirements into
regular supplier management. Relevant suppliers are required to undergo ?eld
audits in 240 items by us in areas such as quality, environment, occupational
health and safety, and labour rights. During the report period, we conducted
?eld audits for 10 core raw material suppliers, of which 9 passed the audit. All
39 tracked and veri?ed issues identi?ed have been recti?ed.Field audits
items
Tracked and veri?ed issuesidenti?ed have been recti?ed.
Sustainable Development Evaluation Dimensions for Suppliers of Nanshan Aluminium
Environment,safety, labour,and humanrights
Businessethics andintegrityCon?ict mineral
ASI requirementsEvaluationdimensions
InspectioncontentInclude Aluminium Stewardship Initiative (ASI) requirements in normalised management, and require relevantsuppliers to sign anASI Social Responsibility Commitment Letterand comply with the requirements of productquality, environmental protection, health and safety, business ethics, human rights, and other related provisionsConduct regular on-site audits and reviews of core raw material suppliers to assess their QMS, EHS, and CSRComply with national and local laws and regulations related to the environmentPrioritise co-operation with suppliers of green-power aluminium raw materials and encourage suppliers toprioritise the use of clean energyCarry out safety production to ensure the occupational health and safety of employeesHave no child labour, forced labour, or work that harms physical healthComply with national and local laws and regulations related to the environmentSignSunshine Commitment Letter, Integrity Commitment Letter, ASI Social Responsibility Commitment Letterand other integrity constraint documents for all co-operating suppliers. In Case of breach of contract, NanshanAluminium has the right to terminate co-operation with suppliers or transfer the matter to judicial authorities.All core suppliers have signed theCommitment Letter on Not Using Conflict Minerals and provided the
Investigation Report on Con?ict-free Minerals.
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
In the entry process such as bidding and tendering, we attach great importance to the feedback and opinions of suppliers and hope to eliminate allillegal activities. Should suppliers encounter or discover any problems during the co-operation process, please provide feedback through our publiclyreleased "Supplier Complaint Email (group-gysts@nanshan.com.cn)". The Company will designate personnel to reply, provide feedback, and co-ordinate in a timely manner to ensure that the problems can be resolved promptly and e?ectively, jointly maintaining the smooth and stable co-operation between both parties.
To drive carbon emission reduction within the supply chain and meet the needs of downstream customers, Nanshan Aluminium is committed toreducing the carbon emissions associated with the entire product life cycle at the source. We require suppliers to implement measures to reducecarbon emissions, encourage the development of green products, and prioritise the use of clean energy sources such as wind and hydropower. Thise?ort aims to make a substantial contribution to building a low-carbon, environmentally friendly supply chain system.
Green supply chain
All our core suppliers have signed theCommitment Letter on Not Using Con?ict Mineralsand providedInvestigation Report on Con?ict-free Minerals.They provide proof of origin and inspection certi?cates for the products we purchase to eliminate the use of con?ict minerals from the DemocraticRepublic of the Congo and its neighboring regions. The Company never supports or uses the metals obtained from armed con?icts, illegal mining andpoor working environment.
Con?ict mineral management
We never support or use the metals obtained from armed con?icts, illegal mining and poor working environment, i.e., "con?ict minerals".Suppliers should investigate their products for metals such as gold (Au), tantalum (Ta), tin (Sn), tungsten (W), aluminium (Al) and identifytheir sources in accordance with the "OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Con?ict-a?ected andHigh-risk Areas (DDG)".
Commitment of Nanshan Aluminium
Supplier Sunshine Commitment Letter Excerpts
Sunshine Commitment Letter
Undertake to strictly adhere to relevant laws and regulations in our business dealings with Nanshan Aluminium, upholding principles ofopenness, impartiality fairness and integrity and pledge not to seek undue bene?ts or trading opportunities and to abstain from engagingin any form of unfair trade practicesUndertake to possess the requisite licenses, qualifications, approvals, permits, certificates, and any other necessary documents asmandated by law for business operations, and furthermore, ensure that the goods provided meet Nanshan Aluminium's specifiedtechnical requirementsUndertake not to discriminate against Nanshan Aluminium in terms of pricing or sales policies, and that transaction prices and salespolicies will not surpass those of any third party in the marketUndertake that the Company will safeguard any commercial information and secrets of Nanshan Aluminium that we and ourrepresentatives become privy to during the tendering period
Shouldering Responsibility, Co-creating a Better Future
Contributing to society
Nanshan Aluminium recognises that corporate growth is reliant on societal support, thus making it an imperative duty to give backto society. Over the years, we have actively participated in social welfares, embodying corporate social responsibility, and ?rmlybelieve that by ful?lling these commitments, we can coexist harmoniously with society and progress together.Nanshan Aluminium has consistently honored its commitments to the community, respecting and supporting its economicdevelopment. We actively encourage employee participation in volunteer services, blood donation, and other charitable activities.We continue to engage in charitable projects such as educational assistance and community festival outreach, striving to give backand make a contribution to the society.
Nanshan Aluminium recognises the importance of communityprotection and respecting culture. We take internalguidelines such as theIndigenous Protection and Autonomyand Protection of Prior and Informed Consent Rights, theManagement Procedures for Protection of Cultural Sites andReligious Shrines, Control Procedures for Local Community
Impactas the guidance. Throughout the project advancementprocess, we consistently focus on the impact on the localcommunity and actively communicate and co-operate withindigenous residents and local institutions. We also rectifyoperational projects that may affect local cultural sites andreligious shrines and their environment and safety.
During the traditional Muslim New Year period of "LesserBairam" in April 2023, our Indonesian factory organisedemployees to visit and console surrounding villages,nursing homes, and orphanages totalling 1,020 people.We provided ?our, rice, edible oil, butter, sugar, and otherdaily necessities to improve the lives of local residents.
Case ｜ "Lesser Bairam" visits and welfare activities
Visit and console surrounding villages,nursing homes, and orphanages totalling1,020 people
The Company focuses on solving the adverse effect of enterprise operation on local communities through activecommunication in strict accordance with national laws and regulations, fully maintains the legitimate and traditionalrights and interests of local communities in land, livelihood and natural resources, and makes unremitting e?orts topromote community development.
Commitment of Nanshan Aluminium
Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
We are keenly aware that projects such as raw materialextraction may have certain impacts on local communities andthe environment during implementation. Therefore, we havea responsible attitude and foster deep communication andcollaboration with indigenous residents and local organisationsto ensure the responsible development and utilisation ofminerals, water resources, and other natural assets, with fullrespect for and consent from indigenous residents. In variousstages of project construction, renovation, and expansion, westrictly comply with relevant laws and regulations, striving to
achieve a win-win situation for economic development andcommunity harmony.To better protect the rights of indigenous residents, we haveestablished a dedicated indigenous peoples' complaint channelaccording to theIndigenous Protection and Autonomy andProtection of Prior and Informed Consent Rights, and steadilypromote related work around labour rights, women's rights,resettlement compensation, and other key issues, aiming toprovide comprehensive and multi-level protection of the rightsand interests of indigenous residents.
The Company has always regarded the protection of cultural sites and religious shrines as its own responsibility, strictly followingthe guidance of the cultural relics administrative department, and implementing the internal management procedure of theManagement Procedures for Protection of Cultural Sites and Religious Shrines. During the project implementation, we balanceenvironmental, social, and financial costs and benefits, and take prudent steps to carry out avoidance, protection, and, whennecessary, relocation of cultural sites and religious shrines. For operational projects that may a?ect the environment and safety oflocal cultural sites and religious shrines, we actively make corrections to ensure the integrity and safety of cultural heritage. TheCompany is committed to translating its ?rm commitment to material cultural protection into practical actions, contributing itsown strength to the protection of humanity's common cultural heritage.
We fully respect the freedom of religious belief in operation place and promise to protect the ancient cultural sites andreligious shrines by laws and regulations during daily operation.
We fully respect the basic rights and interests of indigenous residents, including but not limited to the rights to survival,development, use of natural resources (such as mines, land and scenic spots), bene?t sharing and informed consent.During new construction (reconstruction and expansion), closure, decommissioning, divestment and natural resourceacquisition, we promise not to collude with the local government, but provide compensation or resettlement after theexpropriation of natural resources in strict accordance with laws and regulations. We also promise to communicate wellin advance, treat the recruitment, work arrangement, salary and job promotion of indigenous residents with a fair andjust attitude, and completely eradicate all discriminations.
Commitment of Nanshan Aluminium
Commitment of Nanshan Aluminium
Shouldering Responsibility, Co-creating a Better Future
Annex I: Reader Feedback Form
Dear readers,Thanks for your attention and support to the ESG of Nanshan Aluminium. In order to provide more professional and valuableinformation in environment, society and governance and further improve the ESG report quality, please answer the questions inthe Reader Feedback Form.
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Shandong Nanshan Aluminium Co., Ltd.2023 ESG Report
Annex II: ESG Policies and Key SystemsESG governance
Working System of the Sustainability (ESG) Committee of Shandong Nanshan Aluminium Co., Ltd.
EnvironmentGreenhouse Gas Emission Targets and Implementation PlanManagement Methods for Environmental Protection2022 Pollutant Emission and 2023 Emission Reduction PlanStandardised Management Measures for Solid Waste of Nanshan AluminiumEnvironmental Information Disclosure System of Nanshan AluminiumManagement System for Greenhouse Gas InspectionEmergency Response Plan of Shandong Nanshan Aluminium Co., Ltd.Management Procedures for Biodiversity Protection of Nanshan AluminiumControl Procedures for Sewage DischargeSocietyManagement System Manual for Intellectual Property ProtectionControl Procedures for After-sales ServiceControl Procedures for Customer Satisfaction MeasurementImplementation Rules for Trade Secret ManagementControl Procedures for Production ProcessManagement Procedure for the Prohibition of DiscriminationManagement Procedures for Protection of Underage WorkersManagement Procedures for Prohibition of Forced LabourManagement Procedures for Prohibition of Child Labour and Remedial MeasuresManagement Procedure for the Right to Freedom of Organising Trade Unions and Collective BargainingManagement Procedures for Protection of Women EmployeesSafety Production Responsibility System for All EmployeesSupplier Management RegulationsManagement Procedures for Implementation of ASI by Suppliers (Contractors and Service Providers)Management Procedures for Prohibiting the Use of Con?ict MineralsGovernanceWork System of Independent DirectorsManagement Procedures for Information DisclosureAnti-corruption PolicyStandards of Suppliers' Business ConductReporting Management PolicyManagement System for Data Security
Annex
邮箱地址：600219@nanshan.com.cn联系电话：0535-8666352地 址：山东省烟台市龙口市东江镇南山村