南山铝业:山东南山铝业股份有限公司2022年度环境、社会及管治报告（英文版）

2022
Environmental Social and
Governance Report
Shandong Nanshan Aluminium Co. LtdContents
About This Report 02 Performance of UN SDGs 85
Address from Chairman of Board 04 Reader Feedback Form 86
Performance Highlights 06
020406
01 Compliance and Joining Hands with Perseverance for Steadiness in 03 Industry Partners 05 Goodness Peaking
About Nanshan Governance Ingenuity Quality Low-carbon and the Mountains
Aluminium 2.1 Corporate governance 15 and Great 4.1 Responsible supply chain 39 Environment-friendly 6.1 Urgent needs of talents 65
2.2 ESG management 16 Responsibility 4.2 Making progress together 43 Development 6.2 Employee care 72
2.3 Integrity management 20 6.3 Safety production 74
1.1 Industry development 09 3.1 Product quality 27 5.1 Dealing with climate change 47
2.4 Risk management 23 6.4 Passing on warmth 81
1.2 Enterprise strategy 12 3.2 Innovative research and 31 5.2 Environmental impact 53
2.5 Information security 24 development
1.3 Awards and Recognition 13 5.3 Resource conservation 60
3.3 Customer service 362022 I Environmental Social and Governance Report
About This Report
Report description Data source and reliability assurance
This Report is the 13th Environmental Social and Governance The information and data disclosed in the Report are from
Report (hereinafter referred to as the Report)1 issued by Shan- statistical reports and official documents of the Company
dong Nanshan Aluminium Co. Ltd. which is an annual report and have been audited by relevant departments. The
focusing on the management practice and performance of Company guarantees that this Report does not involve any
the Company in respect of environment society and gover- false records and misleading statements and will be liable
nance (ESG). for the authenticity accuracy and integrity of the contents.Organisational scope of the Report Report preparation process
The Report is about Shandong Nanshan Aluminium Co. The preparation process of the Report covers establish-
Ltd. and its subsidiaries. In the Report "we" "the Company" ment of work team data collection interviews with and
and "Nanshan Aluminium" all refer to "Shandong Nanshan questionnaire inquiry on stakeholders framework de-
Aluminium Co. Ltd.". Unless otherwise specified all termination report preparation report design audit by
currencies mentioned in this Report refer to RMB. department and senior management etc.Report time frame Confirmation and approval
The report covers the period from January 1st 2022 to This Report was audited and approved by the Board
December 31st 2022 (hereinafter referred to as the "Report of Directors and senior leadership of the Company on
Period") some dating back to previous years and covering April 28 2023.the first quarter of 2023.Basis of preparation Report acquisition
The Report is prepared referring to documents such as the This Report is available for consulting and downloading
Guideline for the Preparation of the 'Report on Performance on the Company’s website: www.600219.com.cn.of Corporate Social Responsibility ' promulgated by Shang-
hai Stock Exchange and the Opinions Concerning Enhanc- For further inquiries comments or suggestions on
ing the Social Responsibility of Listed Companies and the this Report please contact the Company by:
Promulgation of 'Guidelines of Shanghai Stock Exchange for Email: 600219@nanshan.com.cn
Environmental Information Disclosure of Listed Companies' Tel.: 0535-8666352
and it also refers and responses to evaluating indicators Address: Nanshan Village Dongjiang Town
such as the United Nations Sustainable Development Goals Longkou Yantai City Shandong Province
(UN SDGs) Environmental Social and Governance Ratings
initiated by Morgan Stanley Capital International (i.e. MSCI
ESG Ratings) etc.
1N anshan Aluminium has upgraded the ESG disclosure form and scope and released the environment society and governance (ESG) report since
2021. Since the data here include the report released before 2021 (social responsibility reports or sustainable development reports) the report
released in 2022 is the 13th environment society and governance (ESG) report released after the listing of Nanshan Aluminium.
02 032022 I Environmental Social and Governance Report Address from
Chairman of Board
Address from Chairman of Board
Nanshan Aluminium sticks to the bottom line of compliance continuously improves the energy management system and
management. By adhering to the principle of openness and recycled aluminium recycling and comprehensive utilization
transparency we continuously improve the corporate gover- system and assists for achieving "carbon peaking and carbon
nance structure through communication with all stakeholders neutrality" goals. On the one hand we continue to deepen the
deepen the enterprise ESG governance constantly and pro- ultra-low discharge modification achievements and minimise
In 2022 with the overall implementation of the mote the industry compliance development with effective ESG the impact of enterprise on the ecological environment. On the
"14th Five Year Plan" and successful holding of the information disclosure. In addition we constantly carry out the other hand we always pay attention to the impact of ecologi-
"20th National Congress of the Communist Party of social responsibility audit with an honest and upright attitude cal environment on the Company and carry out annual inspec-
China (CPC)" China's modernisation construction steadily improve the internal risk monitoring and information tions on greenhouse gas and water resource risk assessment
security capability and ensure the sustainable development of periodically. In 2022 Nanshan Aluminium was ranked as Level
has entered a new journey which brings both the Company on the right way through multiple channels. "B" in CDP Climate Change Questionnaire by means of our high
opportunities and challenges to the aluminium environmental management level.market. As a benchmarking enterprise of aluminium Nanshan Aluminium attaches great importance to the product quality gives full play to the enterprise advantages of high By adhering to the principle of "people oriented" Nanshan
processing industry Nanshan Aluminium remains starting point and high technology builds a high-quality Aluminium fully respects and guarantees the rights of all
true to the original aspiration fully implements multi-level and high-end product series matrix and provides employees in equal employment and fair development.the sustainable development concept of "creating customers with high-quality products and services continuous- We pay high attention to the personal value of employ-
ly. We steadily promote the quality management and control ees during enterprise development and select and retain
a better future for enterprise through green carry out quality audits periodically and implement the princi- high-quality talents through a perfect human resource
manufacturing" actively responds to the United ple of "quality first" in the whole cycle of enterprise production management system and diversified promotion channels.Nations Sustainable Development Goals (UN SDGs) and operation. Besides we continuously accelerate the pace We try to understand the needs of all employees provide
contributes to the society with strong economic of scientific research and innovation based on a clear and them with a competitive welfare system in the industry and
comprehensive intellectual property protection mechanism embody the humanistic care of the enterprise in various
development strength and excellent environmental design and develop new products such as 7-series recycled aspects. We also stick to the production concept of "safety
social and governance (ESG) effects and takes lead aviation aluminium alloy plates and transform innovation into first" constantly optimize the double prevention system
in promoting the national aluminium industry to the driving force of the enterprise development. carry out safety hazard inspections and emergency drills
achieve high-quality and green development. and build and consolidate the safety foundation of the en-Nanshan Aluminium focuses on the upstream and down- terprise from top to bottom.stream industrial chain collaborates with all partners to
forge ahead continuously and strives to achieve the goal Nanshan Aluminium keeps a commitment to residents and
of building a world-class aluminium processing brand. We protects the rights and interests of indigenous residents cul-
further optimize the supplier classification management tural sites and religious shrines in the whole process of pro-
and performance assessment mechanism actively carry duction and operation. Besides we also share the enterprise
Chairman of Board of Nanshan Aluminium out supplier exchange activities and build a responsible development achievements with all sectors of society contin-
supply chain from the source. Relying on excellent techni- uously carry out public welfare donations and sponsorship ac-
Lu Zhengfeng cal strength and rich industry experience we participate tivities for the people in need and strive to achieve a common in the formulation and revision of national and industrial prosperity goal of the enterprise and communities.standards assist to overcome technical challenges such as
crushing irregular-shaped and cross-section aluminium al- The success of Nanshan Aluminium cannot be achieved with-
loy materials in the industry strengthen the industrial talent out the trust and support of all stakeholders. Looking to the
cultivation and promote the high-quality development of future Nanshan Aluminium will continue to move forward in
aluminium industry in China. the harvest of honors carry out the strategic development
idea of "innovation-driven high-end manufacturing and in-
In addition Nanshan Aluminium takes the responsibility in tensive processing" with perseverance accelerate the organic
environmental protection actively deals with climate change integration of enterprise development and operation place
formulates and updates the Greenhouse Gas Emission Tar- management create a global high-end aluminium brand with
gets and Implementation Plan takes all measures to reduce strong innovation power and high-quality products and work
carbon emission during production and operation strives to together with all partners to strive for the prosperity of national
achieve short/medium-term greenhouse gas emission targets aluminium industry tirelessly!
04 052022 I Environmental Social and Governance Report Performance
Highlights
Performance Highlights
Female directors account for Board meetings were hel 22 Training and assessment on business Invested about RMB1400000 The Company passed the certification of ESG materiality issues were ethics and anti-corruption was
25% 8 in the information security
GB/T 23001 Integration of Informatisation
times evaluated and selected (including completed by technology upgrade. and Industrialisation Management
9 highly-important issues). Systems and Class 2 classified protection 100% evaluation.
We passed many system certifications
Supplier delivery including ISO 9001 Quality Management The Company is first aluminium 22 scientific research projects were The comprehensive score of
quality audits System ISO/TS 22163 Railway System product chain enterprise that passes approved in which
There were new invention patents 13 customer satisfaction survey was
were carried out pass rate Quality Management System IATF 16949 "double standard" certification of ASI new utility models 40 95 points for packaging materials
Automotive Quality Management Sys- PS performance standard and ASI 12 projects have been accepted A total of inventions 76 98.51 points for auto sheets
36 100% tem AS9100 Aerospace Management CoC regulatory chain materials in with the total subsidy funds of and aeronautical materials and System GB/T 29490 Enterprise Intellec- China. RMB 26200000 utility models were authorised . 132 97.54% for civil materials.
tual Property Management System.The "high-performance 6xxx-series
We never support or use The pass rate of procurement aluminium alloy sheet for auto sheets
and its industrialisation" jointly declared Nanshan Aluminium participated in revision of 22 national standards We served as a director and member
the metals obtained from armed personnel training assessment was with GRIMAT Engineering Institute Co. and industrial standards. We acted as the main drafter of unit of China Nonferrous Metals
conflicts illegal mining and poor 29 1100% Ltd. won the first prize of the Science Industry Association Aluminium working environment i.e. "conflict national standard and 4 industrial standards.and Technology Award for China's Branch and other associations.minerals". Nonferrous Metals Industry.Energy target: Longkou Nanshan Aluminum Rolling The generating capacity of
New Material Co. Ltd. and Yantai Dong- We keep protecting the "Carbon peaking and the carbon emission The certification coverage operating photovoltaic projects
carbon neutrality" goals reduction target that the hai Aluminium Foil Co. Ltd. voluntarily
ecological environment
rate of ISO 50001 and ISO in the park was We successfully passed the We carried out the water of the local area carry out
achieving carbon peaking comprehensive energy
inspected the carbon footprint of products 14001 reached certification of GB/T 36132- resource risk assessment
consumption of the unit such as can/end stock ring packaging foil 18804047.2 2018 General Principles the special risk assessment by 2030 and battery foil and obtained the third- 87.5% for Assessment of Green and no related high risk on biodiversity and actively carbon neutrality by 2050 product is lower than the party verification certificate of ISO14067 Factory. was found. maintain the biodiversity energy consumption quota
for nonferrous industry carbon footprint of products.kWh and ecological balance.We carried out the safety
We carried out sessions of management by referring to
The signing proportion training the occupational health and The work-related
of collective agreements no The campus recruitment The training coverage There were child rate of employees was 4481 safety management system There were no accident rate (serious was covered 72 universities certification (ISO 45001) injury and casualties)
labor and forced labor 100% and 100% branches in casualty accidents in for external construction 100% and colleges in China. with the total training time of 657345 China passed the Level II past three years. contractors was 0 hours safety production standard
certification.
0607
Compliance and steadi- Ingenuity quality and Joining hands with Low-carbon and Perseverance for
ness in Governance. great responsibility industry partners environment-friendly goodness peaking the
development mountains2022 I Environmental Social and Governance Report About Nanshan
Aluminium
1.1 Industry development
Nanshan Aluminium has always insisted on the development strategy of "innovation-
driven high-end manufacturing fine and intensive processing" adhered to the
Nanshan spirit of "not to do it unless do it best" and aimed to become a benchmark
enterprise in China's aluminium processing industry. Since the Company was
established we have constantly improved the industrial chain deeply engaged in
aluminium processing while extending to the upstream and downstream industry
built a whole industrial chain of aluminium smelting processing sales and recycling
dominated by aluminium processing in an area of 45km2 and developed a high
capability in risk resistance and cost control.Alumina-electrolytic High-end Manufacturing
aluminium achieving Focusing on transportation
a full industrial chain and cultivating the traditional
products for many years
Aluminium Aluminium
smelting processing
01
About Nanshan Aluminium Aluminium Aluminium recycling sales
Grade-keeping recycled Increasing the market share
Founded in 1993 Shandong Nanshan Aluminium Co. Ltd. (stock Nanshan Aluminium has been selected in the aluminium developing a with stable supply and the
code: 600219) was successfully listed on the Shanghai Stock Ex- Top 500 Chinese sustainable closed loop trust of clientschange on December 23 1999. From a high starting point we built
the complete aluminum processing industrial chain located in the enterprises
same region which is unique in the world and covers thermal power
alumina electrolytic aluminium melting & casting aluminum profile/ for many years
hot rolling-cold rolling-foil rolling/forging and scrap aluminum recov-
ery (recycling). At present our products cover all aluminium alloy in In 2022 the Company was ranked
different fields such as aviation shipbuilding nuclear power rail tran-
sit automobiles and tanks and most are high value-added products Our terminal products are widely used in many fields such as aviation plates auto sheets aluminium foils tank materials can lid
such as auto sheets aviation plate and power battery foils. Relying on 414 th materials tank truck materials container profiles rail transit profiles aviation structural members and aluminium alloy doors &
the advantageous aluminium industrial chain and profound corporate windows. Our customers include aircraft manufacturers automobile OEMs and well-known domestic and foreign new energy vehicle
culture we constantly improve the business level and promote the on the list of Fortune China Top 500 manufacturers railway traffic equipment manufacturers communication enterprises food and beverage enterprises etc.sustainable development of aluminium industry. Enterprises
08 092022 I Environmental Social and Governance Report About Nanshan
Aluminium
Schematic Diagram of Nanshan Aluminium Industrial Chain Key products of Nanshan Aluminium
Aluminium Auto sheets:
flat-rolled Nanshan Aluminium has become an auto sheet supplier with the fastest certification progress the most cer-
products tified manufacturers and the most complete certified alloys in China. Besides we have increased the supply
share in some leading automobile enterprises expanding the market occupancy continuously.Aviation plate:
Nanshan Aluminium has overcome the key technological difficulties of aviation aluminium profiles concluded
co-operation agreements and long-term orders with many world's leading aviation equipment manufacturers in
Europe and Asia and further improved the supply level.Auto Aviation Can and lid
Aluminium sheets plate products Can and lid products:
flat-rolled
products Nanshan Aluminium produces various can stocks which makes us rank in the leading position in domestic
and foreign markets and becomes the largest can stock exporter in China. The annual export volume is more
than 300000t accounting for 5% of the total volume in the world and we are highly praised by all users
with our high metallurgical quality and formability high compression strength high-precision thickness and
shape control and good surface quality.Electric Power battery foil:
power Power Packaging Aluminium
Alumin- battery foil foil We have established co-operation relationship with the Top 5 enterprises in China on power battery foil foil
ium foil in new energy market and become the major supplier in high-end aluminium foil. Besides we have
explored many well-known enterprises with good future prospects in China which further increases the
high value-added product orders and effectively optimises the order structure.Packaging foil:
We keep the strategic co-operation relationship with high value-added sterile package customers con-
tinuously which achieves a year-on-year increase in sales.Electrolytic Melting &
aluminium casting
Architectural profile:
Aluminium
profile We promote the co-operation with large-scale real estate companies; establish long-term co-operation
relationship with large civil material customers; complete the construction of Longkou Processing Center
preliminarily and support the radiation of civil materials in the market of eastern Shandong.Industrial aluminium profile:
Architectural Industrial
Aluminium profile aluminium profile We focus on signing orders with key customers. In 2022 all goods were delivered within specified time and Alumina profile the market share was increased further.Aviation forgings:
Nanshan Forge has become the first company in China listed on the qualified supplier catalog of side- Forgings
strut landing gear forgings among the world-famous aviation equipment manufacturers marking a
Aviation new step forward in the research and development field of aviation products and high-quality forgings.Forgings forgings
At present the main production bases of Nanshan Aluminium include Donghai Thermal Power Plant Longkou Donghai Alumina Co. Ltd. Electro-
lytic Aluminium Branch of Shandong Nanshan Aluminium Co. Ltd. Longkou Nanshan Aluminum Rolling New Material Co. Ltd. Nanshan Alumin-
ium Profile Company Medium-thick Plate Branch Forging Branch Technical Research Center Alumina Project in Indonesia etc. We have estab-
lished branch companies or offices in Beijing Tianjin Shanghai Shenzhen Hainan and Hong Kong as well as the United States Australia Italy
Singapore Germany and Indonesia ranking the top with regard to the international market occupancy and the products are not only popular in
China but also exported to many countries and regions such as Asia America and EU.
10 112022 I Environmental Social and Governance Report About Nanshan
Aluminium
1.2 Enterprise strategy 1.3 Awards and Recognition
Be harmonious and broad and aim for the highest. Nanshan Aluminium adheres Over years of development and relentless pursuit in aluminium processing industry
to the development strategy of "innovation-driven high-end manufacturing and Nanshan Aluminium has received many corporate honours and product recognition
intensive processing" takes "building the world-class high-end aluminium foundation" during the reporting period. Besides we have made great strides forward to intelligent
as the objective develops the traditional advantageous industry steadily based on and green manufacturing won the titles such as provincial digital workshop and green
the complete industrial chain focuses on the high value-added products such as auto factory and taken the lead in high-quality and green sustainable development of
sheets and aeronautical materials constantly breaks through the monopoly of foreign national aluminium industry.technologies strives to be a pioneer in the development of Chinese market optimises
and adjusts the product structure forms a layout in high-end products to meet the
needs of rapidly developing the aviation industry and the market of lightweight of China Enterprise Reform and Development China Association for
automobile in China further strengthens expands and supplements the industrial Wind Society and China Cooperative Trade Public Companies
chain integrates the enterprise development into regional development strategy and China's Top 500 Listed Companies in Enterprises Association Performance Evaluation (Level 4A) for Board
makes greater contributions to revitalise the glory and dream of national aluminium Market Value in 2022 Chinese Enterprise Credit Ranking List in 2022 Secretary of Listed Companies in 2022
industry and promote the high-quality development of local economy.China Nonferrous Metals Industry Department of Science & Technology of Department of Industry and
Association Shandong Province Shandong Provincial Information Technology of Shandong
Focus on the development state of emerging automotive manufacturers and "A356.2 Alloy Ingot" of Nanshan Aluminium won Department of Finance and Shandong Province
constantly find potential customers; the "Gold Cup Award" for the physical quality of
Provincial Tax Service State Taxation
nonferrous metal products in China Administration "Intelligent High-end Aluminium Alloy Flat-rolled Product Workshop" of Nanshan Aluminium was
selected into the Provincial Digital Workshops List
Expand the scope of automobile OEM certification for external body sheets improve Nanshan Aluminium obtained the High Tech
Enterprise Certificate and Provincial Green Factories in 2022
customer viscosity and increase customer confidence;
Auto sheets
Accelerate the market layout focus on the expansion of domestic market share and
promote the layout in the Europe market.Department of Science & Technology of Shandong Council for Brand Department of Industry and
Shandong Province Information Research Development Information Technology of
Institute of Shandong Academy of Sciences Shandong Province
and Innovation and Development Institute Brand Value List of Key Industries of Shandong Province in 2022
of Shandong Province The first batch of excellent new material products of Shandong Province
Expand the industrial chain upgrade technologies and equipment increase the addi-
Science and Technology Leading Enterprises of
tional value of industrial chain and constantly improve the international competitive- Shandong Province in 2022
ness of the industry relying on the raw material supply of aviation aluminium alloy;
Promote the certification with major OEMs and increase the market share by means of
geographical advantages of current aviation market transferring to the Asian area; Roadshow - China IR COMEIN FINANCE TIMES MEDIA
Aeronautical Maintain co-operative relationship with COMAC continuously improve the technology Capital Market Best Communication The Best Roadshow IR Team in 2022 Golden Orange Award Gold Medal th
materials Award of 6 China IR Annual Awards Innovation Secretary and High Quality constantly and lay a good foundation for the development of national aluminium in- Development Listed Company in 2022
dustry.Stabilise and strengthen the co-operation relationship with old customers learn about
the product structure of competitors in time and promote the development of new mar-
kets and customers;
Promote the production of products including battery foil medical foil plates for house-
Other flat- car tankers tooling and molds and 3C electron plate ensure the scale of production and
sales and maintain stable order volume by means of improving service ensuring product
rolled products quality reasonable price positioning research and development innovation etc.Performance Evaluation The Best Roadshow Nanshan Aluminium obtained the High The first batch of excellent new material
(Level 4A) for Board Secretary IR Team in 2022 Tech Enterprise Certificate products of Shandong Province
of Listed Companies
Strategic Development Direction of Nanshan Aluminium
Awards and Recognition of Nanshan Aluminium
12 13Compliance and
2022 I Environmental Social and Governance Report Steadiness in
Governance
2.1 Corporate governance
Nanshan Aluminium strictly abides by national laws and regulations such as the
Company Law of the People's Republic of China and the Securities Law of the People's
Republic of China and guidelines and normative document requirements such as the
Code of Corporate Governance for Listed Companies and Listing Rules of Shanghai
Stock Exchange. We constantly improves the corporate governance framework and
further regulates the company operation. The Company has established Shareholders'
Meeting Board of Directors Supervisory Board and Professional Committee all gov-
ernance layers and committees work in accordance with the regulations and working
systems with clear rights and responsibilities. While actively expanding the global
market Nanshan Aluminium is committed to improving the governance mode and its
diversity and professional level so as to empower the Company for development.Board of Directors
Audit Committee Remuneration and Assessment Committee Nomination Committee Strategy Committee
Board of Directors and Committee of Nanshan Aluminium
In order to improve the corporate governance framework Nanshan Board of Directors. We also deepen the understanding of the Board
Aluminium is committed to building a diverse inclusive professional of Directors and management layer about ESG and other concepts
and compliant Board of Directors and senior management talent by carrying out internal/external training help them know the future
team. With regard to the staff composition we ensure the diversi- development direction of the industry and improve the whole ESG
fication on many aspects such as gender age cultural/education governance level of the Company.
02 background region professional experience skills and tenure. We By the end of the reporting period female members of the Board continue to enrich the composition of members of the Board of Di- of Directors of Nanshan Aluminium account for 25% while inde-rectors and strengthen the specialisation and diversity of the Board pendent directors account for 37.5%. In 2022 the Company held of Directors. All directors have rich industry experience and good ed- 8 board meetings with the attendance rate of directors of 100% ucation background. Besides we have established the Work System of Independent Directors and 46 proposals approved after deliberation. to strictly standardise the tenure of mem-
bers of the Board of Directors strengthen their independent judg-
Compliance and ment power and improve the decision-making independence of the
Steadiness in Diversity of members of the Board of Directors Decision-making independence
Governance Members with different professional skills and The Company strictly standardises the tenure of mem-industry backgrounds are elected into the Board bers of the Board of Directors. To guarantee the com-of Directors based on the gender age culture/ pliance of company operation the re-election term of
education background region professional independent directors shall not exceed six years
experience skills and tenure
Nanshan Aluminium firmly believes that compliance management is the Besides the Company continuously strengthens the in-
foundation for healthy and sustainable development of an enterprise. We dependent judgment power of members of the Board
constantly improve the corporate governance framework and working mech- of Directors requires them to strictly follow the Compa-
anism to reduce potential governance risks. We actively combat corruption ny's regulations and minimises the impact of external
and uphold integrity and promote the integrity management continuously factors and interest conflict on decision making
improve the internal control audit and reporting and complaint mechanism
as well as the risk management system and realise the stable development
of Nanshan Aluminium through reasonable governance.Construction of the Board of Directors of Nanshan Aluminium
14 15Compliance and
2022 I Environmental Social and Governance Report Steadiness in
Governance
2.2 ESG management Communication with stakeholders Nanshan Aluminium firmly believes that enterprise development could not be achieved without the trust and support of stake-
Nanshan Aluminium always remains true to the original aspiration follows the national holders. The Company establishes diversified communication channels according to the internal system of Control Procedures
guideline of "carbon peaking and neutrality" goals continuously deepens the ESG for Information Exchange Negotiation and Communication and evaluates their effectiveness periodically to listen and respond
governance keeps communication and exchange with all stakeholders promotes the to the expects and needs of stakeholders and establish a close friendly and fair co-operation relationship with them.organic integration of the business philosophy "green energy conservation emission
reduction and efficiency improvement" and the Company's strategy and constantly
creates sustainable values for all sections of society. Stakeholders Groups Issues of Concerns for Stakeholders Main Communication Channels
Tax payment according to law
ESG governance C ompliance management Periodic information reporting
Government/Regulators
Combat corruption and uphold integrity Safety production
Pollutant emission compliance
Nanshan Aluminium always carries out ESG governance Besides we organize and participate in ESG training and ex-
according to laws and regulations establishes and continu- change activities periodically strengthen the understanding of Hold Shareholders' Meetings
ously optimizes the ESG governance framework which takes all employees on ESG concepts gradually and improve the ESG Business and operation situation Company investigation roadshow/reverse
the Board of Directors as the leadership ESG work team as governance level of the Company constantly while grasping R esearch and development technology roadshow
the supervisory institution and the subordinate departments industry trends. and innovation Release regular reports and hold
as the main enforcement body to lay an organization foun- Investors/Shareholders Business layout and strategy plan achievement meetings
dation for the compliance of ESG issues. I nformation disclosure Investor hotline and email
Corporate governance and risk control I nteractive platform of Shanghai Stock
Exchange
E nhance research and development
F air competition capabilities
As the highest responsible organization of ESG issues the Board of Directors Suppliers Formulation of industrial standards S trengthen supply chain management and
is responsible for formulating auditing and approving the ESG policies
strategies and objectives S upply chain management
co-operation
P articipate in industry activities
Evaluating and continuously supervising the major ESG risks and Board of
opportunities during daily operation and their impact on the Directors
enterprise economy environment and staff C ollect customer opinions Business ethics
Customers Handle customer complaints
Product quality
Conduct customer satisfaction survey
Research Institutes S cientific and technological innovation I ndustry-university-institute co-operation
ESG work team continuously tracks the ESG performance
of different departments and the implementation of ESG
objectives and strategies and submits report to the ESG work team
Board of Directors periodically Social public welfare Society/Public Maintain communication with government
Community development departments and social organisations
Employee health and safety Hold conferences of employee
representatives
Subordinate departments prepare the annual E mployee remuneration and benefits
sustainable development objectives and plans Employees Implement employee training Employee development and training
according to respective responsibilities and Subordinate departments C ollect and respond to opinions and
internal staff and are responsible for the Employee working environment suggestions of employees
plan execution and objective assessment
Renewable energy resources Communicate with and learn from
E nergy conservation and emission environmental protection departments and
reduction social organisations
Environment
ESG Governance Framework of Nanshan Aluminium HSE management improvement Exchange advanced experience at home
D ischarge and management of waste gas and abroad
wastewater and solid waste Improve production process
Stakeholders Groupsissues of concerns and communication channels
16 17Compliance and
2022 I Environmental Social and Governance Report Steadiness in
Governance
Information disclosure and investor communication ESG Materiality Issues
By adhering to the principle of openness and transparency of Shanghai Stock Exchange investor hotline and email pro- In 2022 Nanshan Aluminium reviewed and updated the Company's ESG materiality issues in appropriate time from two
Nanshan Aluminium performs the information disclosure obli- vide the latest information timely through official website and aspects such as strategy relevance and creditor importance according to the requirements of nonferrous metal industry for ESG
gations according to the internal systems such as Management WeChat official account and organize investors to carry out on- governance the annual business condition and the peer benchmarking results. After evaluating and selecting 22 materiality
Procedures for Information Disclosure and the principles of line/offline investigation and exchange analyst meeting road- issues an annual major issue matrix was drawn to provide guidelines and direction for achieving the Company's ESG strategic
authenticity accuracy completeness timeliness and fairness show achievement meeting and shareholders' meeting so target and report disclosure.releases regular and temporary announcements carries out that all investors can know the company operation manage-
ESG information disclosure in accordance with laws and regu- ment and development strategies timely and comprehensively.lations and promotes the industry development with good ESG In 2022 Nanshan Aluminium organized and participated in
performance. more than 170 online/offline activities for investors communi-
cated with over 500 buyer institutions and 50 seller institutions
Besides we actively build a bridge for communicating with guaranteed the timely and smooth market communication High
investors according to the market development status and channels during the industry downturn showed a good com-
internal strategic planning to protect the legitimate rights and pany image and protected the legitimate rights and interests of Compliance man- Business ethics
interests of investors especially the small and medium-sized Improve HSE managementinvestors from infringement effectively. agement
investors effectively. We keep good communication with inves- Employee working environment Discharge and man-
tors through different channels such as the interactive platform Employee develop- agement of waste gas Scientific and technological innovation ment and training wastewater and solid
Renewable energy Employee remuner- waste
ation and benefits Energy conservation
Activity of "March 15 Protecting the Legitimate Rights and Interests of Investors"
Employee health and emission reduction
and safety Green and low-carbon
Product quality transformation and
capacity layout
In March 2022 just when the "World Consumer Rights Day" comes Nanshan Aluminium organized a propaganda and
education activity with the theme of "Comprehensive registration system reform towards the future". The activity constantly
enhanced the investment knowledge risk prevention and self-protection awareness of investors especially the small and
medium-sized investors through website propagation promotional material pasting and theme lecture training which
can further improve the protection idea of internal investors and create a good investment environment for investors. Driving the economic growth and social Enterprise profitability
development
During the reporting period Nanshan Aluminium has pasted more than 200 promotional materials; and carried out 11 Combat corruption and uphold integrity
theme lectures with more than 1125 participants. Social benefits Information disclosure
Supply chain management Corporate governance and risk control
Formulation of industrial standards
Fair competition
Low Importance to the stakeholders of Nanshan Aluminium High
Environmental issues Social issues Governance issues
Materiality Issue Matrix of Nanshan Aluminium in 2022
Scene photo of the theme propaganda and education activity of "March 15 Protecting the Legitimate Rights and Interests of Investors"
1819
Relevance to the strategy of Nanshan AluminiumCompliance and
2022 I Environmental Social and Governance Report Steadiness in
Governance
2.3 Integrity management
By adhering to the enterprise culture of "taking loyalty as the first kindness as Responsible Business Alliance (RBA) the largest corporate workers and the compliance of management activities with
the virtue honesty as the foundation and sincerity as the foothold" Nanshan social responsibility alliance in global supply chain aims to environmental protection and ethics requirements. During the
Aluminium promises to conduct business with integrity in all business relationships formulate industrial standards and code of conduct in labor reporting period Medium-thick Plate Branch passed RBA7.0
and transactions and strictly prevent all activities that may have adverse effect on health and safety environment and ethics for the electronics audit by the third-party certification agency and there were no
Company's integrity and reputation. We create and actively maintain a fair and industry or the industry and its supply chain companies non-conforming items during the audit. A great achievement
impartial business environment to promote the development of industry integrity. with electronic products as the key element so as to ensure was made in the construction of ESG governance system.the working environment safety the respect and dignity to
Business ethics and anti-corruption
Internal control audit
Creating a fair and honest business environment is one of the goals foundation and anti-corruption management mechanism improvement
that Nanshan Aluminium is striving for. We strictly abide by the national as the key point strengthen the anti-corruption unswervingly and
laws and regulations such as Company Law of the People's Republic implement the management methods effectively. We precisely define Nanshan Aluminium strictly supervises the implementation of the Company's social responsibilities according to the
of China Anti-unfair Competition Law of the People's Republic of the management regulations for anti-corruption and anti-bribery and
China and Anti-monopoly Law of the People's Republic of China and prohibit employees from accepting or providing bribery or accepting internal rules of Management System Manual and further strengthens the internal supervision management. To improve
have released system procedure documents such as Management commissions and other personal interests. In addition to the anti- the internal constraint mechanism we have established the Financial Department Supply Department Sales Department
Procedures for Labour and Business Ethics Hazards Management corruption requirement for internal employees we also establish Physical Department and Budget/Settlement Audit Department under the Audit Department.Procedures for Enterprise Merger and Acquisition Management clear anti-corruption provisions for our suppliers service providers
Procedures for Clean Governance Employee Handbook and Marketing and contractors. We establish a complete violation and disciplinary
Management System . With regard to observing business ethics review system. The Company's Discipline Inspection and Supervision
combating corruption and upholding integrity we stand firm and strictly Committee is responsible for investigating the illegal and disciplinary Audit and inspect sales
standardise the Code of Conducts for all employees. incidents dealing with the behaviours that violate national laws and businesses
regulations company rules and regulations or damage the interests
We firmly believe that the Company's commercial activities should be and image of the Company prosecuting or transferring relevant S upervise and audit the
based on "fair transactions". Therefore in order to control and manage personnel to judicial authorities according to the severity and timely
the business ethics risks related to operation we have defined the codes inventory management reporting to the Chairman of Board and the Board of Directors.of business ethics and conducts for incorruptible procurement and of unit sales product
operation privacy and identity confidentiality illegitimate income labor We carry out educational training on business ethics periodically and Control the audit on
rights in daily work of the company leaders and employees. We supervise require all employees to participate in the training so as to improve supplier selection
the codes of business ethics and conducts for employees and follow their performance in business ethics effectively. Besides we carry out
the principle of fair competition to maintain the benefits of the Company propagation and training on anti-corruption in the Company actively C ontrol the audit on Sales Audit
and shareholders effectively. Besides we carry out the risk identification organise employees to participate in training activities with a theme material service life Department Supervise and
evaluation and control of business ethics every year and evaluate and of combating corruption and upholding integrity publicise the anti- and after-sales service Supply Au- co-ordinate the
improve the Company's performance in business ethics periodically. corruption system assess employee performance periodically and dit Depart- physical asset
strengthen their compliance awareness of clean employment. During
Nanshan Aluminium pays high attention to the work of combating ment management the reporting period the training and assessment completeness of our
corruption and upholding integrity of the Company. We established the employees in business ethics and anti-corruption reached 100%.Anti-corruption Policy which takes integrity risk identification as the Physical Be responsible for
Audit De- the asset inspection
partment and field supervi-
sion and inspection
Propaganda and training objects Main content of anti-corruption management
A udit the internal
control process- Financial
Directors and supervisors participated in the special training on "Cracking down es and financial Audit De-
Financial Fraud Strictly and Eliminating Fund Occupation Resolutely" organised by accounting man- partment
Board of Directors China Association for Public Companies agement
Training on Management Procedures for Clean Governance Budget/ Carry out budget/set- C omplete the pre/ Settlement tlement audit on the
concurrent audit Audit De-
plan of all issues partment
internal and external
contract engineering
Senior management Training on Management Procedures for Clean Governance
Focus on reviewing the
accuracy and reason-
Work assignment of the Audit Department
ability of construction
Training on Management Procedures for Clean Governance cost data so as to
Employees
Training activity with the theme of "Combating Corruption and Upholding Integrity" control the project cost
effectively
20 21Compliance and
2022 I Environmental Social and Governance Report Steadiness in
Governance
During the reporting period we established an internal audit plan External Inspection External Inspection Pass Rate
broke it down for execution in every month. Simultaneously we Risk management
carried out special audits including supply and sales audit. With 36times 100%
regard to the supply audit we conducted an overall inspection on the
arrival materials of branches and strictly implemented the changing/ 2.4
refunding system for the non-conforming products; and with regard During the process of operation and development Nanshan Aluminium fulfils
to the sales audit we conducted the progress inspection on the social responsibilities and obligations earnestly establishes a major risk monitoring
annual sales tasks of Flat-Rolled Product Division and Aluminium and reporting mechanism and improves the risk control level continuously.Profile Company. We timely summarised and submitted the audit
results and rectification suggestions to the Board of Directors and Nanshan Aluminium strictly abides by the Listing Rules of Shanghai
tracked the implementation of relevant issues till the rectifications Stock Exchange and other regulations establishes the internal
were completed. Besides we invited qualified third-party inspection risk control systems such as Control Procedures for Risks and
agencies to check the purchased materials required external Opportunities Project Risk Management System Management Internal risks External risks
inspection. By the end of the reporting period we have conducted 36 Method for Supplier Risk Evaluation Management Method for
external inspections with the pass rate of 100%. Sales Service Risk Evaluation and Management Method for Product
Inspection Effectiveness Risk Evaluation integrates the enterprise Production and operation Customs
risk control and compliance management into the whole process of
Whistleblowing and complaint mechanism production construction operation and management and creates a safe and reliable production and management environment for the
Company. We monitor and identify potential internal/external risks Employee health and safety Taxes
by improving the risk identification process and respond in time.. We
Nanshan Aluminium holds a zero-tolerance attitude phone number/email in non-monitoring area and realise define key internal operation risks and external macro potential risks
towards all corruption illegal and disciplinary violations responsibility control through self-check and self-correction. through special audit and daily risk identification and deal with the
establishing the Reporting Management Policy and setting We also focus on privacy confidentiality and protection risks effectively. Some major risks are recorded in the annual report Ecological environment Import and export
a whistleblowing complaint mechanism for all employees to mechanisms for the whistleblowers. If a whistleblowing clue is and please refer to the Company's Annual Report for more details.find and deal with relevant issues in time. All units are required found to be true the whistleblower would be rewarded.to set a suggestion box with a lock and posted with reporting Additionally in terms of the exchange rate fluctuation risks in Protection of human rights Technical innovation
foreign trading activities we adopt various foreign currencies such
as US dollars and euros for order settlement and signing in order
Relevant to maximize diversification of exchange rate fluctuation risk. For Suggestion the overseas purchasing we reduce the foreign exchange loss Capital flow International settlement
box com- Investigation departments Audited by Issue the through the foreign currency settlement. Besides we handle the spot and foreign exchange
Complaint plaint email and obtaining colleagues the General Manager treatment settlement and sales of foreign exchange in small quantities and channels and tele- evidence and the result multiple times by means of financial companies so as to reduce the
phone person con- exchange rate fluctuation effectively. We have established a special Internal/external risk consideration dimension
cerned team for aluminium ingot futures and reducing the impact of future
aluminium price and exchange rate fluctuation on the processing cost
Complaint Investigation Process of export orders by locking the forward exchange rate.
22 23Compliance and
2022 I Environmental Social and Governance Report Steadiness in
Governance
2.5 Information security Information security drills and training Nanshan Aluminium actively participates in the supervision activities on external data security co-operates with government
Nanshan Aluminium pays high attention to information security and actively establish- sectors to carry out attack-defense drills and network security inspection and further strengthens the information security
es the network and information security responsibility mechanism. Nanshan Alumini- guarantee capability. In addition we actively organise the daily network information security training prevent the information
um strictly abides by the laws and regulations such as Personal Information Protection security risks in advance and improve the network security awareness of employees effectively. During the reporting period
Law of the People's Republic of China and Interim Provisions on the Protection of Trade Nanshan Aluminium has carried out 5 network information training sessions with the total training period of 346 hours.Secrets of Central Enterprises. To guarantee the network information security we have
updated internal management mechanisms such as Management System for Data
Security Management System for Network Configuration and Management System for
Network Operation Monitoring to promote the standardisation institutionalisation and
scientisation of network information security.Nanshan Aluminium undertook the "Longkou network protection" attack-defense
Information security technology upgrade May 2022 drill and simulated network attack on 18 enterprises and public institutions in the
city and successfully passed the drill at last.By upgrading the information network technology Nanshan and field inspection reporting the network security hazards
Aluminium constantly improves the information security guar- according to laws and regulations and formulating optimisa-
antee capability. In 2022 the Company established a network tion protection strategies and vulnerability repair/interception
security group constituted by different units and the techni- measures. Besides we have completed the upgrading and
July 2022 Besides we successfully passed the "Supervision and inspection on network and cians of Information Department. The group is responsible for replacement of data center application delivery gateway and data security organised by public security organs in 2022".dealing with the safety hazards found by security induction online behaviour management system the authorisation and
platform online behaviour system penetration test and vul- upgrading of bastion host security induction platform and SIP
nerability scanning checking the computers and business probe unit as well as the classified protection evaluation with
systems of intranet and extranet through remote monitoring a total investment of about RMB 1400000.We successfully passed the "data security management system and data security
December 2022
Launch of protective products Antivirus software optimisation protection inspection" organised by the Publicity Department of the Municipal Party Committee (Internet Information Office).In 2022 Nanshan Aluminium launched Mo- In 2022 we authorised and upgraded the ver-
reSec protective products for protecting the sion of AsiaInfo antivirus software including
real assets of the Company as well as attack the data center application delivery gateway Network information security inspection and simulation drills
evidence collection and tracing. online behaviour management system bas-
tion host security induction platform (SIP)
probe unit and rule feature library.We issued a network security propaganda and learning notice during Yantai
Safety risk vulnerability check Security induction platform upgrade network security publicity week and organised all employees to watch and learn September 2022
the short video of network security.We conducted patrol through remote moni- We upgraded the version of security induction
toring and field inspection. carried out vulner- platform and collected all key data to identify
ability scanning once a month and security all potential threats and improve the response Network information security training
induction every day; and reported and pun- speed to events and the identification capa-
ished the safety risks and asked to make recti- bility of advanced threats.fications within specified time.Network security events and treatment
Network security guarantee measures In 2022 we paid high attention to network security events after identifying the vulnerabilities of control system held a special
meeting after receiving notice and established a specialised team to check all servers and modify the complexity requirement
With the joint efforts of all departments Nanshan Aluminium has passed the certification of GB/T 23001 Integration of Informatisation of business system password. After modification the security group carried out the security detection for confirmation held
and Industrialisation Management Systems by the end of the reporting period. Besides we completed Class 2 classified protection a settlement meeting to re-emphasise the importance of network security punished the responsible persons and carried out
evaluation on BPM approval system Exchange mail system and supply chain system. In the future we will continue to upgrade the normalised self-inspection and vulnerability scanning on the Company's network.information security products and improve the digital operation service capability and information security guarantee level.
24 252022 I Environmental Social and Governance Report Ingenuity Quality and
Great Responsibility
3.1 Product quality
The industry-leading product quality is an important competitiveness of enterprises.Nanshan Aluminium always adheres to the development concept that "quality
is the life of an enterprise" strengthens the construction of quality management
system focuses on product quality certification enhances the quality awareness of
all staff and contributes to customers and the society with high-quality products.Quality management
Nanshan Aluminium constantly optimises own quality management system establishes an internal system related to quality
management and keeps improving the product quality with a perfect quality management mechanism. In addition we
establish a three-level quality management structure carry out supervision and inspection on quality management orderly and
lay a good foundation for improving the product quality to the industry-leading level.Quality ● B e responsible for the quality management of Nanshan Aluminium and quality monitoring of the
Department whole product realisation process
Quality
Assurance ● I mplement the production quality control requirements of Nanshan Aluminium and supervise the
Departments
03 product quality in the whole process for all branches of branchesResponsible ● B e responsible for daily quality inspection special inspection casual inspection and final person for pro-duction inspection and report timely when finding abnormities
Ingenuity Quality Quality Management Structure
and Great To ensure that products conform to quality standards and contract requirements Nanshan Aluminium integrates the quality control into the whole process of production. During the reporting period Nanshan Aluminium invited third-party agencies to
carry out quality audit supervised the quality of goods raw materials and products and strictly controlled the product quality.Responsibility
The process quality
Nanshan Aluminium insists on serving all customers with high technology was controlled in All factories formulated
The Production De-
and controlled the as- partment supervised
The Quality De-
and quality better service and latest products from a high starting point. strict accordance with the product process partment tested or
We strictly control product quality through quality management and production manage- sessment indicators of and final indicator casually inspected
training continuously promote the scientific research and innovation and ment standards process/final products assessment the final products
intellectual property protection inject vitality into the development and
constantly improve the brand influence. We always consider the customer
needs improve the service quality strengthen the information protection
and create a larger value for customers with high-quality products. Quality Management Flow
26 272022 I Environmental Social and Governance Report Ingenuity Quality and
Great Responsibility
Third-party quality audit RBA (Code of Conduct - Responsible Business Alliance) certification
During the report period
In July 2022 the Medium-thick Plate Branch of Nanshan Aluminium passed the RBA7.0 audit by a third-party certification agency
designated by customers 5 aspects including hundreds of clauses about the labor health and safety environment ethics and
the Audit Department organised suppliers for conducting management system were accepted. Besides the working environment safety the rights and interests of employees as well
36 as the environmental protection and ethics of operation activities of the enterprise and its supply chain were also inspected. delivery quality reviews and inspections Nanshan Aluminium had no non-conforming items during the audit and was highly recognised by customers.
and and with the pass rate of
279100%
batches of goods and batches of machine
raw materials parts were checked
So far we have passed many quality management system certifications and
organised internal/external reviews according to the annual audit plan. In 2022
we conducted 45 internal reviews and 44 external reviews on quality management
system and carried out 16 daily supervisions/inspections. Besides we are the
first responsible enterprise that has passed the dual standard certification of ASI
(Aluminium Stewardship Initiative) PS and ASI CoC and set up standards for the
high-quality and sustainable development of aluminium processing industry.In 2022
Internal quality reviews External quality reviews
45times 44times
Daily supervisions/inspections
16times
Quality management system certification Certification subject of Nanshan Aluminium
IATF 16949 Automotive Quality Management System Flat-Rolled Product Division of Nanshan Aluminium Yantai Donghai Aluminium Foil Co. Ltd. and Aluminium Profile Plant of Nanshan Aluminium
AS 9100 Aerospace Management System Flat-Rolled Product Division of Nanshan Aluminium and Aluminium Profile Plant of Nanshan Aluminium
ISO/TS 22163 Railway System Quality Management System Aluminium Profile Plant of Nanshan Aluminium
ISO 9001 Quality Management System Shandong Nanshan Aluminium Co. Ltd
GB/T 29490 Enterprise Intellectual Property Management System Aluminium Profile Plant of Nanshan Aluminium Medium-thick Plate Branch and Electrolytic Aluminium Company of Nanshan Aluminium
NADCAP special products and process certification Aluminium Profile Company of Nanshan Aluminium
Quality System Certification
28 292022 I Environmental Social and Governance Report Ingenuity Quality and
Great Responsibility
Quality culture 3.2 Innovative research and Nanshan Aluminium enhances the quality awareness of all employees combines quality assessment results with the employee development
performance in quality management assessment system implements the guideline of "quality first" actively carries out quality training
in different departments and factories improves the quality control level of employees and creates the quality culture for all employees.The innovative R&D is the core driving force behind the industrial development.Activities of quality management group Nanshan Aluminium attaches great importance to and encourages scientific
research and innovation inside carries out industry-university-institute co-
operation projects outside and explores digital empowerment while constantly
strengthening the intellectual property protection and training so as to obtain the
industry competitiveness with technology leadership and digital intelligence.To constantly stimulate the enthusiasm of employees for
participating in quality improvement and innovation and
promote the high-quality development of Nanshan Alumin- Scientific research innovation
ium the Management and Control Center of Nanshan Alu-
minium carried out the technical breakthrough and quality
management group activities in 2022 and encouraged all Nanshan Aluminium encourages employees to carry out and accelerate scientific research and innovation through scientific
units to select issues according to the hotspots and difficult research projects in the group industry-university-institute co-operation projects and industry upstream/downstream co-
points in quality improvement and efficiency increase and operation. During the reporting period 22 scientific research projects of Nanshan Aluminium were approved wherein 12
participate in assessment of quality research achievements. projects were accepted with the total subsidy funds of RMB 26200000.After rounds of selection the quality group determined and
issued fifteen research achievements which was a session
with the largest number of participants and issued achieve- 7-series recycled aviation aluminium alloy plate project
ments in the past few years. All research were based on the
solution of actual problems and committed to serving the
product quality development of the Company. Nanshan
Aluminium held an achievement press conference of the Nanshan Aluminium designs and develops the whole-process production line of 7-series recycled aviation aluminium
management group to commend outstanding researches alloy plates and determines the ingot homogenisation heat treatment rolling and aging heat treatment process. The
and further create the enterprise culture of "quality first". performance of 7-series recycled aviation aluminium alloy plates meets the requirements of AMS 4050 standard.Besides we develop a kiloton/year recycled aviation aluminium profile demonstration project accumulate the production
data of more than 27 furnaces of 7050 recycled aviation aluminium alloy ingot (total output capacity: about 1350t) realise
the supply industrialisation of recycled aviation aluminium and supply products to more than 10 OEMs and suppliers.Quality training in the Indonesian factory
Internal Research and Development Highlights in 2022
In 2022 the Alumina Plant in Indonesia carried out quality training activities according to the training plan such as the
training on aluminum oxide scorch control so as to greatly improve the control ability of dispatchers over the production
process indicators of alumina as well as the control level of employees on the production process and final product
indicators. The first prize The first prize The first prize
The "high-performance 6xxx-se- The project "A green smelting The invention patent "Heat treat-
ries aluminium alloy sheet for method for recycled aluminium ment method for improving nat-
auto sheets and its industrialisa- alloy" jointly declared by Nan- ural aging stability of 6000-series
tion" jointly declared by Nanshan shan Aluminium University of aluminium alloy and aluminium
Aluminium and GRIMAT Engi- Science and Technology Beijing alloy sheets" (patent number:
neering Institute Co. Ltd. won Zhaoqing Delta Aluminium and ZL201710445217.7) jointly au-
the first prize of the Science and other units won the first prize thorised by Nanshan Aluminium
Technology Award for China's of New and Old Kinetic Energy and Yantai Nanshan University
Nonferrous Metals Industry Conversion High Value Patent won the first prize of Shandong
Cultivation Competition Provincial Patent Award
Industry-university-institute Project Highlights in 2022
30 312022 I Environmental Social and Governance Report Ingenuity Quality and
Great Responsibility
Key Laboratory for Light Alloy Material Preparation and Forming of Shandong Province Preparation of national and industrial standards
Nanshan Aluminium establishes the "Key Laboratory for well as the physical chemical microstructure experi- In 2022 Nanshan Aluminium participated in revision of national standards
Light Alloy Material Preparation and Forming of Shan- mental detection analysis and performance evaluation
dong Province" which takes the enterprise as the subject of light alloy materials. 22
and the market as the orientation. We carry out basic
researches on the application of light alloy materials Over years of experience in research and development
such as aluminium alloy magnesium alloy and titanium and production of aluminium and aluminium alloy Nan-
alloy by combining industry university and institute to- shan Aluminium has invested over RMB 100000000 in this
and We acted as the main drafter of 1 national
gether and study the full life cycle of materials through laboratory purchased domestic and foreign advanced ex-
research and development of new alloy plastic forming perimental and testing equipment and built an advanced 29
and heat treatment process such as aluminium electrol- metal material detection platform which can undertake
standard and 4 industrial standards.industrial standards
ysis smelting casting rolling extrusion and forging as more than 200 experimental/detection items.In 2022 Nanshan Aluminium participated in formulating revising
and releasing national standards
Co-operation in demonstration project of aluminium-based lightweight transportation technology 10
Nanshan Aluminium co-operates with a material compa- At present we are dealing with a pilot plan for homo- and
ny to construct aluminium-based lightweight transporta- genisation annealing based on experimental conditions including as a main drafter of 1 national
tion project. So far the project has completed component compare it with homogenisation annealing process and 2 standard and 1 industrial standard
design process simulation and experiment simulation the initial morphology and evolution law of primary solid-
established technical prototype under industrial condi- ification precipitates in basic research so as to determine industrial standards
tions proposed the component design optimisation plan the process parameters for homogenisation annealing
for processing high-performance transportation alu- treatment of industrial melting & casting and ingot cast-
minium alloy materials through microstructure structure ing. With regard to the research we have applied four
analysis and finally confirmed the target components of invention patents. Industrial informatisation
industrial production.We constantly improve informatisation management co-ordinate procurement and production management through
business process management (BPM) promote the linkage of strategy business technology and management by establishing
informatisation and industrialisation management framework system and realise intelligent management. During the reporting
Nanshan SIPOT 100-series passive window has passed a German certification period we have made a significant progress in informatisation management in Bintan Park of Indonesia.In response to the national strategy of "carbon peaking and carbon neutrality" Informatisation management of Indonesian factory
reduce the energy consumption and improve the living environment Nanshan
SIPOT designs and develops the 100-series ultra-low energy consumption passive
window independently. According to the technical standard for passive ultra-low
energy consumption green buildings the heat transfer coefficient "U" of the whole Indonesian park establishes 16 core functional modules By means of IoT and real-time database we can obtain
window is lower than 0.80 W/(m2 * K) and successfully passes the energy conser- such as production management operation monitoring production data automatically generate production
vation evaluation of German Passive Housing Research Institute. The energy con- equipment management HSE management and reporting according to the template and greatly ensure
servation level is phB which can maximise the heat preservation heat insulation production reporting based on production and operation the data accuracy. Besides we can master the production
and airtightness performance of buildings effectively reduce the dependence on breaks through the systems such as alumina (DCS) power plan equipment operation production execution and
active mechanical heating or cooling system realise high-quality living environment plant (SIS) coal gas (SIS) port (PLC) numerical control (NC) statistics in real time through data acquisition and
and assist for achieving the strategic targets of carbon peaking and neutrality. system and e-card system integrates with the business analysis and realise the digital management. We also
management system such as BPM and enterprise resource design a mobile terminal APP for data monitoring and
planning (ERP) effectively realises the interconnection rectification tracking to realise real-time monitoring of
of equipment data and system and the accurate data equipment operation data timely patrol of equipment
sharing of systems and breaks through the information location and closed-loop management of equipment
isolated island through high-quality information transfer. defects and maintenance work order.
32 332022 I Environmental Social and Governance Report Ingenuity Quality and
Great Responsibility
Intellectual
property Previous preparations
Supervise the intellectual property related to the market and company pe-
Nanshan Aluminium attaches great riodically investigate the laws policies and implementation of intellectual
importance to the application and property in destination before foreign trading know relevant industry liti-
protection of intellectual property gation regulations analyse possible dispute and its damage to the enter-
formulates the Management Sys- prise and formulate a preventive plan
tem Manual for intellectual property
protection in accordance with the Contract signing
Patent Law of the People's Republic
of China Anti-unfair Competition Sign written contracts for external entrusted business make agreement on
Law of the People's Republic of the ownership and confidentiality of intellectual property and submit the
China Norms for the Administration contacts to the Legal Department for review and filing
of Intellectual Property of Enterpris-
es and Guidelines for Intellectual Process monitoring
Property Management of Industrial
Enterprises defines the intellectual Monitor the infringement of intellectual property during purchasing sales
property protection in the whole research and development or other business report problems to the In-
process of business co-operation tellectual Property Department and entrust the Legal Department for pro-
obtains GB/T 29490 Enterprise tecting intellectual property with administrative and judicial measures
Intellectual Property Management
System and passes the supervision Risk control
and audit of intellectual property
management system. Formulate an emergency plan for intellectual property investigate and
analyse infringement according to the Control Procedures for Intellectual
Property Information Resource Management and Retrieval organise all
departments to identify and evaluate the intellectual property risks and
take risk control measures
According to the internal system Nanshan Aluminium encourages all employees for patent application and paper publishing
and accelerate the transformation of intellectual property through cash bonus. Besides we organise employees for special
Intellectual Property Management training on intellectual property constantly improve their comprehensive abilities in application protection and utilisation of
independent intellectual property and increase the patent projects greatly in the reporting period. In 2022 Nanshan Aluminium
carried out 8 internal training sessions on intellectual property external learning and patent excavation for all employees with
Nanshan Aluminium successfully passes the audit on intellectual property. a total participants of 340 people.In 2022
In November 2022 Nanshan Aluminium successful- Medium-thick Plate Branch Aluminium Profile Company and
ly passed the review on national intellectual property Electrolytic Aluminium Company were involved. The audit Carrying out A total participants of
demonstration enterprises by China National Intellectual group reviewed the intellectual property management sys-
Property Administration. Since being recognised as a tem of Nanshan Aluminium in current year according to GB/ 340people
national intellectual property demonstration enterprise Enterprise Intellectual Property Management intellectual 8
Nanshan Aluminium has improved the intellectual proper- property management system documents of the Company internal raining sessions on intellectual property external learning and
ty system constantly and made great contributions to the and existing laws regulations and local policies. Since no patent excavation
construction of intellectual property power. non-conforming items were found Shandong Nanshan Alu-
minium Co. Ltd. successfully passed the audit.In February 2022 Shandong Nanshan Aluminium Co. Ltd. Annual patent achievements
successfully passed the supervision and audit on intellec- In the future we will further deepen the strategy of develop-
tual property management system organised by Zhongzhi ing enterprise with intellectual property promote the con-
(Beijing) Certification Co. Ltd. In this audit the Technology struction of intellectual property system improve the compre-
Department Purchasing Department System Certification hensive abilities and core competitiveness continue to create In 2022 Nanshan Aluminium increased
Department Intellectual Property Department Technology high economic and social benefits and increase power for and and a total of and
Management Department and General Office of Longkou the high-quality development of enterprise.Longkou Nanshan Aluminum Rolling New Material Co. Ltd. 13 40 76 132
authorised invention patents utility models inventions utility models were authorised
34 352022 I Environmental Social and Governance Report Ingenuity Quality and
Great Responsibility
3.3 Customer service
By adhering to the concept of service-oriented Nanshan Aluminium takes the market We pay high attention to the customer complaint management and try to solve all product and service problems
and customers as the orientation optimises service guarantee implements responsible wholeheartedly. With regard to complaints the Quality Assurance Department and Sales Department visit customers' factories
marketing strengthens privacy protection and provides customers with all-round high- for technical exchange know their requirements for product performance timely adjust the production process parameters
quality services. carry out multiple tracking and survey and verify whether the problems are improved.Quality service
Satisfaction survey Satisfaction survey
Nanshan Aluminium abides by the
laws and regulations such as Law We conduct the customer satisfaction In 2022
of the People's Republic of China on Identification/
transmission/ Aftersales survey every year according to the Con-
the Protection of Consumer Rights confirmation Contract/order Process com- services of trol Procedures for After-sales Service the comprehensive score of customer satisfaction aeronautical materials
and Interests formulates the policies of customers’ endorsement munication customers including but not limited to the investi- survey was points for packaging materials for civil materialssuch as Process Control Procedures requirements
Related to Customers Control Proce- gation on product conformity delivery
dures for After-sales Service Control timeliness major customer complaints 95 97.54%
Procedures for Customer Satisfaction and corrective measures. For the items Communication Customer Customer
Measurement and Management about customers’ requirement Contract/order Product delivery satisfaction with low satisfaction mark we co-ordi-
Regulations for Product Service requirements review
implementation survey points for auto sheets nate with relevant departments for rec-
standardises the customer process tifications and track and verify whether
and improves the customer satisfac- the problems are improved. 98.51
tion in the whole procedure.Customer Service Process
Customer communication Responsible marketing
We standardise the customer complaint and product service procedures according to the Management Regulations for Product Service Nanshan Aluminium establishes an orderly and high-effi- is committed to building a fair impartial and open marketing
respond to the after-sales service and requirements in the current day and deal with the quality objections of customers timely and ciency marketing management system optimises the annual ecology. We have formulated the Management Procedures
properly during the purchasing and using. sales policy according to the industry development trend and for Clean Governance and Marketing Management System to
During the reporting period we strengthen the customer visiting. Our sales personnel will visit customers every month know their pro- market situation controls the risks and improves the marketing stipulate the integrity of business personnel. All departments
duction and operation status answer and solve their problems visit the production and technicians if necessary and solve their prob- management system. We prepare the training plan every year conduct self-inspection and self-correction and are subject
lems in a timely manner. and organise marketing personnel for training as planned to the review of the Audit Department. During co-operation
including the product knowledge project management cus- we abide by the Integrity Agreement signed with customers
tomer management and business etiquette so as to improve participate in the training of "Anti-hunting integrity awareness
Collect relevant samples and photos and send them to the Production Department and
Try to know the using conditions Technology Department for investigation and analysis determine the treatment plan through the overall quality and level of the sales team. and execution" and are subject to the integrity management
problems performance of the investigation and negotiation track the secondary use condition of products on site if neces- and field audit organised by the customers' Supplier Manage-
same batch and the product per- sary and find the cause or solve the problems Nanshan Aluminium focuses on responsible marketing and ment Department irregularly.formance of other suppliers by
telephone email WeChat or field
visit after receiving the customers'
quality feedback or complaints Treatment agreements are formulated after confirming solutions and send to customers after
the approval. Solutions requiring for changing or refunding shall be sent to the Storage and Privacy protection
Transportation Department for vehicle arrangement. QC and warehouse keepers recheck the
weight of returned goods and make treatment according to the agreement
Nanshan Aluminium attaches great importance to the custom- To further improve the privacy protection capability Nanshan
er privacy protection strictly abides by the laws such as Cyber Aluminium constantly strengthens the information and net-
The sales personnel report the customers' requirements such as suggestions on performance Security Law of the People's Republic of China and Personal work security management ability. We establish the Manage-
improvement specification change and new products to the Technology Department. The Information Protection Law of the People's Republic of China ment System for Data Security Management System for Data
Technology Department shall review the customers' requirements and arrange relevant tests formulates and abides by the systems such as Implementation Backup Management System for Network Configuration Man-
after the approval. The Sales Department and Product Service Department assist in knowing Rules for Trade Secret Management and Control Procedures for agement System for Network Operation Monitoring Manage-
the using conditions and improvement effect of products report relevant information to the
Technology Department and confirm the subsequent production mode Production Process signs the Confidentiality Agreement with ment System for Network Access and Management System for
some partners during co-operation and protects the customer Application System Maintenance and ensure the security guar-
Customer Complaint Service Process privacy and the rights and interests of the Company. antee with the information security management software.
36 372022 I Environmental Social and Governance Report Joining Hands with
Industry Partners
4.1 Responsible supply chain
Building a stable and continuous responsible supply chain is a key link for Nanshan
Aluminium to keep moving forward. While constantly standardising the purchasing
process of raw materials we also strengthen the sustainable development
management level of supply chain commit to establishing a fair and transparent
co-operation relationship with the supply chain and make progress with all co-
operative suppliers hand in hand.Whole process management
Nanshan Aluminium adheres to the purchasing principle Providers) communicate with all suppliers to publicise our
of fairness impartiality and openness and standardises requirements for the responsible supply chain constrain
the purchasing process in strict accordance with the responsibilities rights and interests of the Company and
laws and regulations such as Civil Code of the People's suppliers with rules and systems and gradually improve
Republic of China and Tendering and Bidding Law of the sustainable development management of suppliers.the People's Republic of China . Besides we formulate We also formulate regulations for the approval exit and
normative documents such as Management Procedures for evaluation of suppliers and commit to establishing a fair
Implementation of ASI by Suppliers (Contractors and Service and transparent co-operation relationship with them.
04 Supplier approval Supplier evaluation Exchange and co- Supplier exit operation with suppliers
● Open tendering ● Field survey ● S upplier assistance ● E limination of
Joining Hands with and training unqualified suppliers ● Self-recommendation ● S coring and evaluation according to the scores ● Periodic exchange and evaluation results
● C lassification of Class
Industry Partners A and B suppliers ● I ndustrial exhibition and annual meeting
Nanshan Aluminium pays high attention to the mutually beneficial
relationship with suppliers and other co-operative enterprises and aims Whole process management
to promote the innovative development of the industry. We strengthen the
responsible supply chain management and deepen the co-operation and
exchange with co-operative suppliers. We are also committed to promoting
resource sharing and advantage complementarity through the win-win
development of the industry and strategic co-operation of enterprises and
create a bright future for the industry with all partners hand in hand.
38 392022 I Environmental Social and Governance Report Joining Hands with
Industry Partners
Supplier approval
Qualification verification To further improve the supplier management mechanism goods with the annual supply amount of more than RMB 10000000
Nanshan Aluminium is committed to and goods and projects involving a supply unit with the annual supply amount of RMB 10000000 shall be filed and tabulated
establishing a long-term and stable
co-operation relationship with suppliers Suppliers are required to submit related information
and the supervision strategy and system for bulk purchasing shall be established for assessment.implements strict approval policies and The Supply Department audits the business licenses three-year financial
promotes the construction of responsible statements co-operation contracts and account opening permits
supply chain. We have clear approval The supplier and supply information is filed and tabulated To keep consistent with the sustainable development
conditions for the suppliers and traders The preliminary audit on the qualifications of suppliers is completed guidelines of suppliers in environmental protection ethics
and carry out prequalification and field safety health and human rights we formulate provisions
audit to confirm whether they have the for guaranteeing the labor rights and interests of suppliers Sunshine Commitment Letter
ability in long-term and stable supply. To Field investigation environmental protection and occupational health and
realise further standardisation informa- safety. We have clear requirements for the suppliers'
tisation and transparency of purchasing integrity and co-ordinate with all suppliers to establish We require all enterprises to sign the above
process we select long-term co-oper- The Supply Department formulates an examination plan in advance an honest and upright purchasing process. Therefore all commitment letters including integrity business and
ative suppliers through open tendering Examine the operation plan of suppliers as planned suppliers are required to sign integrity constraint documents default commitment so as to define the integrity and
and make a public announcement on the Conduct the field survey on bid-winning suppliers periodically such as Sunshine Commitment Letter and Integrity business ethics of suppliers. In case of any defaults
"official website of Nanshan Holdings" Commitment Letter. we have right to terminate the co-operation or transfer Complete the supplier approval evaluation form
and " China Tender Website" for 7 days. to judicial authorities for treatment.Approval and warehousing
Suppliers that pass the assessment are included in the qualified supplier list Supplier evaluation and exit
To ensure long-term and stable supply of high-quality raw materials we establish a scoring and evaluation mechanism for
evaluating the operation status of suppliers i.e. to evaluate the product arrival time and quality acceptability every month.Supplier Approval Process
Besides we incorporate the social responsibility performance of suppliers into evaluation and provide them with improvement
suggestions or measures. For suppliers whose overall evaluation score is less than 60 points we will give a warning reduce or
In 2022 we further optimised the classification of suppliers and took more reasonable measures for the classification. According to even terminate the co-operation with them as the case may be. Any supplier with its score deducted by more than 30 points
the supply amount and scale we classify the suppliers into Class A and B and follow different tendering and approval process. will be removed.Material classification Specified condition Tendering and approval process Supplier ESG management evaluation
● An annual purchasing amount for single/pack- ● Tendering in the way of signing framework
aging amount of more than RMB 10000000 agreement professional website guidance price
● Direct manufacturer not an agent or trader fluctuation and similar material packaging The Supply Department co-ordinates with the Quality Management Department and other departments of Nanshan
A ● Q ualified production equipment and process ● Change of all issues should be confirmed by the Aluminium to carry out field audits on the "subordinate major suppliers/contractors/service providers" at least once
leaders of corresponding units supply company every two years fill in the Field Audit Report on Suppliers/Subcontractors/Service Providers and evaluate their social
Class A materials ● C omplying with national laws and regulations Supply Audit Department and the Purchasing responsibility performance. In addition we conduct field surveys on the goods arrival period and services of some
and industrial policies
General Manager as well as the approval of the new co-operative suppliers every month and provide/track the implementation of improvement measures.● G ood financial status no legal disputes debt Chairman of Board. No unit or individual has the
or loan right to change issues without authorisation
● D irect manufacturer not an agent or trader ● Report to the Chairman of Board for approval af-
● Qualified production equipment and process ter the joint field audit of the Legal Department
B Financial Audit Department Centralised Pur-● Complying with national laws and regulations
chasing Technology Department and the Supply
Class B materials and industrial policies General Manager of Nanshan Holdings
● G ood financial status no legal disputes debt
or loan
Supplier Classification
40 412022 I Environmental Social and Governance Report Joining Hands with
Industry Partners
Conflict mineral management 4.2 Making progress together
By actively following the concept of "making progress together" Nanshan
Commitment of Nanshan Aluminium Aluminium is committed to co-operating with the government enterprises
and universities to promote industry construction and development through
We never support or use the metals obtained from armed conflicts illegal mining and poor working environment co-construction and sharing and achieve win-win results in expanding co-
i.e. "conflict minerals". Suppliers should investigate their products for metals such as gold (Au) tantalum (Ta) operation with all sectors of society.tin (Sn) tungsten (W) aluminium (Al) and identify their sources in accordance with the "OECD Due Diligence
Guidance for Responsible Supply Chains of Minerals from Conflict-affected and High-risk Areas (DDG)".Win-win development of the industry
We have formulated the Management Procedures for Prohibiting the Use of Conflict Minerals to prevent our suppliers from using
conflict minerals of Democratic Republic of Congo and its adjacent areas. We also require suppliers to sign the Commitment
Letter on Not Using Conflict Minerals and provide Investigation Report on Conflict-free Minerals. Nanshan Aluminium actively participates in activities organised by different industry associations and engaged in internal
construction strives to build a bridge for internal and external co-operation and promotes the implementation of substantive
achievements of industry associations as well as the industry development and innovation. So far we have been serving as the
Co-operation and exchange with suppliers director and member unit in many industry associations such as China Nonferrous Metals Industry Association and made great
contributions to assist the technology development of all associations and the whole aluminium industry.We hope to establish and maintain a good co-operation suppliers to participate in industrial exhibitions and annual
relationship with excellent suppliers expand the co-operation meeting every year. Besides we have organised 24 training Name of industry association Role
with them keep active communication and exchange sessions and 12 examinations for all purchasing personnel
encourage widely market participation and co-operation and with the total training time of 48 hours. The trained purchasing China Nonferrous Metals Industry Association Vice President Unit
commit to making progress with all suppliers. To keep active personnel communicating with suppliers can publicise our
communication and exchange with suppliers in carrying out rules and systems to the suppliers regularly and be helpful for
industry trends and strategic co-operation we invite excellent solving their problems during working. China Nonferrous Metals Fabrication Industry Association Vice Director-General Unit
Purchasing Personnel Training Rate Purchasing Personnel Training Times Purchasing Personnel Training Hours Shandong Advanced Materials Industry Association Vice President Unit
100% 24Times 48hours Shandong Aluminium Industry Association Vice President Unit
Association entry of Nanshan Aluminium (Partial)
Besides as a technological champion and pioneer of aluminium industry we actively participate in the formulation of industrial
standards. By the end of the reporting period we have formulated or revised 10 national standards and 2 industrial standards
including as a main drafter of 1 national standard and 1 industrial standard.Outstanding achievement: the standard drafted by Nanshan Aluminium was rewarded
The national standard Aluminium and Aluminium Alloy Terms and Definitions - Part 4: Aluminium Scrap that we
dominated in drafting won the first prize of the "Excellent Technical Standards Award" in the field of nonferrous
metals the industrial standard Alloy Wires Used for the Grain Refiner for Aluminium and Aluminium Alloys - Part
1: Al-Ti-B Wires that we participated in drafting won the second prize and the national standard Test Method for
Determining Susceptibility to Stress Corrosion Cracking of Aluminium Alloys The Norm of Energy Consumption per
Unit Product of Electrolytic Aluminium and Alumina and the industrial standard Prebaked Anode for Aluminium
Electrolysis won the third prize.
42 432022 I Environmental Social and Governance Report Joining Hands with
Industry Partners
Highlight activity: promote the industry progress through university-enterprise co-operation Enterprise co-operation
While constantly improving the independent innovation capability we also actively promote the co-operation with many
On March 4 2022 Alumina Branch of Nanshan Alu- cept of "possessing intelligence and virtue appointing enterprises universities and institutes explore the future development direction and potential benefits of the whole industry
minium in Bintan Indonesia held a university-enter- people on their merits designating assignment ac- and promote the industrial sustainable development which fully reflects the mission and responsibility of Nanshan Aluminium
prise co-operation forum in the way of network video. cording to competence and giving full scope to the as an excellent representative of the industry. In addition we expand the upstream and downstream communication channels
The parties expanded respective ideas extensively to talents" keep consistency in the development direction of the industry accelerate technical co-operation and innovation of enterprises constantly improve the industry knowledge
strengthen the university-enterprise co-operation and and target with co-operative schools i.e. to strengthen sharing platform and collaborate with industry partners on the path of green innovation and development.talent cultivation. Nanshan Aluminium solemnly prom- the talent cultivation create more job opportunities for
ised to insist on the strategy of "strengthening the en- students promote educational development and joint-
terprise with talents" actively carry out the talent con- ly fulfil the social responsibility with all universities. Project name Co-operative unit Achievement
High-performance 6xxx-series alumin- GRIMAT Engineering Institute Won the first prize of Science and ium alloy sheet for auto sheets and its Co. Ltd. Technology Award for China's Nonfer-industrialisation rous Metals Industry
A green smelting method for recycled al- University of Science and Won the first prize of New and Old
uminium alloy Technology Beijing Zhao- Kinetic Energy Conversion High Value qing Delta Aluminium etc. Patent Cultivation Competition
Heat treatment method for improving
natural aging stability of 6000-series alu- Yantai Nanshan University Won the first prize of Shandong Pro-
minium alloy and aluminium alloy sheets vincial Patent Award
Symposium on University-enterprise Co-operation and Exchange with Batam State Polytechnic Highlight co-operation with aviation industry: Nanshan Aluminium further expands the batch supply of
C919 aviation plates
Highlight activity: Nanshan Aluminium made a stage pose on ALUMINIUM CHINA-South China Nanshan Aluminium has supplied materials in batches for COMA C919 and the Company's aviation plates will
be further expanded by the increasing market scale of homemade large aircrafts. So far Nanshan Aluminium
has passed the certification of 2- and 7-series alloy plates and sheets which are mainly used for fuselage frame
partition wing sheet/beam/rib wherein the 7-series aluminium alloy plates have been applied to C919 and ARJ21.On August 10 2022 Nanshan Aluminium appeared industry insiders visited and exchanged ideas at the
at South China International Aluminum Industry Exhibition Hall of Nanshan Aluminium fully knew
Exhibitionwith the latest products showed research the product specifications varieties and research
and development achievements in the lightweight and development innovation capability through Highlight co-operation with railway transportation
of automobile and new energy and received a the advertising videos sample exhibitions and
widespread attention from industry peers and co- negotiations which lays a good foundation for
operative customers. During the exhibition many subsequent order placement and project co-operation.Nanshan Aluminium has developed
and supplied dozens of cross sections
for Jakarta-Bandung High-speed
Railway in Indonesia and most
materials are profiled bars with large
cross section multiple cavities and
different thickness. We have tackled
many key and difficulty problems
based on our r ich exper ience
advantages and industry-leading
technologies and mastered the core
technology for extrusion of aluminium
alloy profiles with irregular cross-
sections. Trial operation of Jakarta-Bandung High-speed Railway
44 45Low-carbon and
2022 I Environmental Social and Governance Report Environment-friendly
Development
5.1 Dealing with climate change
At present the low-carbon transformation has become a necessary path for the
manufacturing industry to achieve sustainable development and transformation. As
a key enterprise of carbon emission in the industry Nanshan Aluminium attaches
great importance to low carbon production commit to reducing the greenhouse
gas emission during production and strives to alleviate the adverse effect of
company operation on climate. Besides we implement energy and greenhouse
gas management promote the use of renewable energy resources and energy
conservation technology transformation and actively deal with climate change.Risk management
CDCPD PS CSOCRODEPR ERS ECRPOECOPRDROEPT R R S -T-E C C-PO LCORIILMREITMA R TA- ECTP ELCOI HMCRAHTNA T-G ENC EGCL EI2HM 0A2A20N2T2GE2E C 2H0A2N2GE 2022
Since the climate change is one of the decisive challenges in SSfhhraSaannhdmdaonondnegogw n NgaoSa nNnhrssaakhhnnaasd nrnho i anAsnglklu u AN mmlaSuiinnmhisaiuauihnnnmaidun a oCm Anogo gl.C.ue LLNomtmt.dadiLn..tiseduh.mnan tC Amol.uLemtdtihn. iuomd CsTo Tha.heLeTn CtChdDdeD. PPC SeDScPcoo Srreec T oRRrheeep p RoCorerDttp aPaoll lrolSto wacwolslso r cewco oTRsm hecpeppoa aomCnnriDptei eaaPssnl l toSitoeowc s os tr oce o Rmeppaonrite asl ltoow s companies to uunnddeuernrssdttaeanrnsddt a tmthnhedei ritir uh sssneccdisoroe rsirerecos oataarnnnendd d a i rninthdedei ciiicdnrau adstnteuicecd o waewcrtherehsti ciatwciahnohn d idc ni hnth d eicira stec owreh icahn d indicate which
the 21st century Nanshan Aluminium pays high attention to the RRieenggRiioioetngniiaontiveRseg. ioTAnAhssiaiarAosiaugRehgio tAnhsiae quesAtisoiannaire ocncaat teeCcggaooDtrerieigePsos r ri reeecqsq uluriiericmreqea u ataeirtattgeteeo natnrttieietoieosnn r t teiNtoooq n rur eaetiroacae cancr htaehe tas hgtheciohgihngrh tihiaeoeisrgnr n hr teeoq r r ueiraec ha thteignhtieorn to reach higher ssccoorsrinicngog r lielnevgve elleslsv.. e TTlhsshc.isi osT erheininsaga b eblelnelevasesb cllsceo.os Tm cpshpocaisamon nreipeiineasgasn t bitoleeole sv s et olcs o. mThpiasn eiensa btole s companies to
progpr
CouCnoturyn/tAryre/Aarea ChiCnahina progre
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risks caused by climate change. As a world-leading complete CAoulnutrym/Ariena iuComunt Creyh/iAnsarteaa bCloiusnhtCryhe/iAnsare aa gooChdina corporattthherrootu uhiggrmhoh u bbgeaehnn cbgchehnmecatahh rrrmkakoiniaunngrgk h aidan nbngded an ccncoodhm cppotahamrrrkriosipisnuoaognrn ih sa w wonbintdieth h nw c coithmhm parrkisinogn awnidth c omparison with
ppeeeerprsse e inirns oo rirndd eeorr dttopoe e rcc oetonrns tctini oniunnuo toi
nueusolnoursdleyyur i sitmholpyp pec airmonreornvvpseteir ces n o tinuthvh oeeoeui ritrs dh leeyri r im top cronvtein tuhoeuirs ly improve their
aluminium processing industrial chain enterprise Nanshan the competitiveness in the industry. cclilimcaaltiteme gagotoevv egerornnvaaencnrcnlciemae.n. a IcIntneevv. e geIsnostvvtooeerrssrsn t woawrincslillc ll i awemad.id ladlId ntiaetivtido ieogdnsnoiattaviololelrylnysr na wallynil lc aed. dInitvioensatollrys will additionally QQuueeQssuttiieoosnntninaaniirrneeaiQreuestGiGoenennnGeeareraianrleleraQluestGioennneariarle General rreecceerievivcee aiav ceco oapp ycy o ooprff ey tthc hoeefi v CtCheDe Da PPC c SDoScpPcoyo Sr reoecr f oRe Rtrcheeep pi RovCoererDttp a uPuo pc prSoto nucpn opy ro oenf Rtheep oCrDt uPp Sonco re Report upon
Paris Agreement Na- rreeqquureeesqstut.. e FFsoot.rr F ffuuorrtt hrhfueeqrrrt u hffeeeserd tdf.be bFaeaocdcrkb k fa pupclreltkehra apessqlreea csoen Aluminium actively responds to the and uf ecoesndt.tb ctaFaaococcntrt kt yaf youpcourlteut rhyar oesure rf eceodnbtaacctk y poluera se contact your AAccttiAivvciittyyiv GGitryroo GuuprpoAucptivitMye eGttaMarlo le puptrarpool ddpAuurcoctdtsisvu icmtMtyasae n Gnmtuaurfalofa anpcucurtpotufuadrricunintcgugtrsin mgMaentuafla pcrtoudriuncgts manuaafcacccotaoucurncinntot g umnaatn nmaagagenearar c gooceror r yuy oonourtu rymr okkaeuenyry ak CCgeDeyDar PPC co cDrco oPyunon ntcutatao rcmc ntkt.ta.eanyca tC.gDerP o cr oynotuarc tk.ey CDP contact.tional Climate Change Adaptation Strategy of Chinese govern-
ment and takes lead in promoting China's nonferrous metal YYoouuYrr o CCuDDr PPC sDscPcoo srrecYeooruer CDP scoreYour CDP score AAvveeArravagegerea ppgeerr fpfooerrAmfovaarennmrccaaeegnec eperformAvaenrcaege performance
industry to realise high-quality and green development.BB B BC C C C C C C C
In 2022 we identified and assessed the risk issues of climate
change took countermeasures during daily production and MMeettaaMl lp eprtroaold dpuurcocttsds u ctsM NNeootrartthlNh p oA Arromtmhde ueArrcicmitcasae ricaGMNGleolotrbabtGahla lpl loA rAbomvavdeleur rAraciacgvtgsaeee rageGNlorbtahl Amveraicgae Global Average
mmaannumuffaaacnctutuufraricnintgugringmanufacturing manufacturing
operation and continuously improved our risk control level on
UNUDNEDRESRTSATNADNIND
climate change. During the reporting period Nanshan Alumin- T UNIDE
GIRN SYGTO YAUOUNRUND SRDINC ESGORC RYSOOETR A URENRE RD PSEIONCPRGOTT YREOT URREP SOCROTRE REPORT
05 SShhaanSndhdoaonngdg oN Nnaagnn sNshahanaSnsnh hA aAalnulnudm moAinliungiumi uNmmina Ci nuCsomoh.. aLCSLntodth dA..a .Lrl nuretdedmcoc.e ienriveigivuec eNmded ai av Cane B sodBh . w aaLw nhtBhd icAi .cw hlrhu ehi mscisc ei hniinv i iute shtm dhein e aC t hBoe. w Lhtdic. hre isc einiv ethde a B which is in the ium participated in the questionnaire on CDP climate change MMaannMaagagenemamgeeennmt tb ebanantn dbMd.a .aT nTnhdhai.si gs Ti esihsm ih shei gingsht h ehberigar t hnhthedaMar.n naTt ht nhtahaiesneg NietNshmo oehrert ihgNtnh hotA eArbmtrmah ten heArdarimci.nc aTe a trrh reiiceesga gNi osiroo nehnragtiaghli olh Aneamrl tehraicna t hreeg Nioonrathl America regional aavveeraraavggeeer ao ogf feC C o a fa nCndd aah hvnigiedghr haehegrigr et hht hoeaafrn nCt ht hta heane n MtdMhe aehtv aitgMael hlrpe aeprtgarro oeldt hd puoaurcfonc tCsdt st uhm mcaeatn saMnd nmu euhftaafiagnclch tuputefurraori ncitdnhtguuga cr nitns tg hm ea Mnueftacl tpurroindgu cts manufacturing sseecctotsorer ca atvoverer araavggeeer ao ogf feC sC e.o.cft oCr. average of Cse.ctor average of C.conducted self-evaluation on potential carbon emission risks LLeeaadLdeerarssdhheipirps ( h(AAip/A/ A(-A-)L):/: eAI maIm-d)p:pe leIlrmesmmhpelieenpnmt it(niAengng/ Act ic-unu)Lrg:rre reIceamnundtpr terb leebresnmeshtst e btip neprt srai(naAtc gcpt/i tAcricae-ue)csr:str ieIcmnetps bleemste pnrtiancgt iceusrrent best practicesManMaagneamgenmt e(Bnt/ B(B-and opportunities promoted and formulated effective carbon Management (B/BM-)a):/:n BT Ta-aga)k:ke inTimngage kc niconotog o(r Bcrddo/inBionMa-ra)tdaet:ien ndTdaa a gtakececitdnmito igoane ncc not iotono n(n rB cd col/ilnBminma -ac)tae:tleit mdeT i saaiskstcseiutnui eoigessn sc uoenos rcdlinmaateted isascutieosn on climate issuesAAwwaaArrewennaeersessns e( (CsC/sC/ C(-C-)A):/: CwK K-an)nro:oe wKwnlneleodsdwgsgel e( Cdo og/fC fei mi- m)oAp:fp wa Kiamcanctrsoptse wao noclnetnsds agsoane n(d Cdo ao /foC nfifmd - c) cp:oli lamiKfmc nactaostleit wmeo lnaetd eag ned o of fim cpliamcatste o n and of climate isisssuueiesssues issues issuesstrategy created the development direction of green low-car- DDisisccDloliossscuulrorees ( u(DDr/eD/ D(-D-)D):/: DT iTs-rcr)aa:ln onTsssrpapuanarrsree pn(naDt tra /eaDbnb-oto) uD:au tTib ts crocclaiulmilnmot sacsaptlueitamer ri esais nst(seDutu eai/esDsbs-ou)u:e tTs crlaimnsaptea riesnsut easbout climate issuesbon and sustainable operation and management and rated as
"B" ("management level") which represents that Nanshan Al- ATCAhTTCIeIVT ICITITVDYI T PGY AR sGCcORToUIOrVPeU I PT PoYE P fRG EFNFAROaCOFRTUOMIPVRA IMPTNEYACR NGEFCROEORUMPA PNECREFORMANCEMeettMaalle pptarrolo dpduruoccdttsus M cmtesaat nanmulua nshan Aluminium is higher than the average fpfanarcouctdtfuuaurcricintntugsgr Mimnegatnaul fparcotduuricntgs manufacturing
uminium has formed a complete climate change governance level of global metal processing industry. YYoouuYrr occouorm cppoaamnnypy a isinsY y aoa iumsro oacnnmoggmsostnpt 3ga36sn6ty% 3 i 6osoY%f f ao ccm uoorofm cncpopogaamsnntpi pei3eaas6snn % tyitheh aisosat f ta rhcremeaoaatmo ccrnhephgeaaesdcndt h i e3Mes6ada %nt nhMa aaogagtfe n ercaemogaemecnnhmptt ea leeldnenv ivMte elslea l vtnheaalg t ermeaecnhte ledv Mela nagement level
inin yyoionuu ryr oAAuccrtt iviAvictitytyi v GGiitnryro o yuGuoppru.o.ru Apc. tivity Ginro yuopu.r Activity Group.Low-carbon and In 2022 we updated the Greenhouse Gas Emission Targets and Implementation Plan2 including the shorAAt s saAaam snppalmlede poo lffe m A Ao--lflAi iseAs tst- ldcacisomotim pucplopeamma nonpifie eaA-ssn- t liAieess ts rcamommppl ea noife As- list companies ffrroomfr o yymoouu yrr o AAuccrt tiAivvfcirittoyyiv m GGit ryyroo oGuuuprpro: :Aucpt:ivfirtoym G ryoouupr: Activity Group:emission target plan of greenhouse gas of unit product and emission reduction measures.3
HHYYUUHNNYDDUAANII D WAIIA AW CCHIOAOY RUCRPNOPOODRRARPAIOA TWTRIIOIAOANTN CIHOOYNRUPNODRAAI TWIOIAN CORPORATION
Environment-friendly RRoobbReerorttb BBeorots sBcchoh s GGchRm boGbHbHmerbtH Bosch GmRobbHert Bosch GmbHSScchhSaaecefhffflaelerrffler Schaeffler SchaefflerSSttaanSnlelteayyn BlBelalya ccBkkl a &&c S kDD te&aec ncDklkeeyrcr kB IIenlnarccc. .Ikn c&. SDteacnkleyr BInlacc. k & Decker Inc."Carbon peaking and carbon neutrality" goals Energy target
Development Carbon peaking by 2030 Carbon neutrality by 2050 Overall energy consumption of the unit product < energy consumption quota for nonferro**PPleuleaas*sPese len n aooisteten t nhthoadatte tt htthueea p tp est*ehePerlt re g pagrreosroeyeuur p npg oa raotvevue eprthar aaggvte et hs rsacecog poreer* essePsc rla eoagrarerreso sce uc o paonm rmoaeptv pecieli eoltrehdamda gwp tew iitl teishthdec o owpnrneiltyleshy ri an oignrvnervelo eyscu stoipontmo rva-rep-vsielteroadrg -wei tshc onrelys ianrvee sctoomr-piled with only investor-rereqqueersestqeteudde c scotoemmdp pcaaonnmyy ps scaconroreyer qessusceosretesd company scorreeqsuested company scores
Carbon emission reduction target of Nanshan Aluminium
Nanshan Aluminium adheres to the sustainable development concept of "creating bright
future of enterprise through green manufacturing" and continuously carries out the sustainable For the carbon footprint of electrolytic aluminium products please refer to Greenhouse Gas Emission Targets and Implementation
development path. We constantly strengthen the energy and environmental management Plan on the official website of Nanshan Aluminium.system and integrate energy conservation emission reduction resource recycling and
biodiversity protection into all links of production and operation. Besides we continue to focus
2
on the cutting-edge technology of carbon reduction promote energy conservation and carbon http://www.600219.com.cn/static/admin/upload/file/20230309/20230309163136_76008.pdf
3
reduction comprehensively accelerate the construction of low carbon recycling system assist for Disclosure boundary of greenhouse gas emission data: 600000t/year alumina production line 480000t/year electrolytic aluminium production
the green and low-carbon transformation of aluminium processing industrial chain and fulfil the line 450000t/year aluminium alloy slab ingot production line 200000t/year aluminium alloy flat-rolled product production line 750000t/year hot rolling production line 600000t/year aluminium alloy flat-rolled product production line and 40000t/year high-precision aluminium and
social responsibility of an industry-leading enterprise. aluminium alloy foil production line of Shandong Nanshan Aluminium Co. Ltd.
46 47Low-carbon and
2022 I Environmental Social and Governance Report Environment-friendly
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As a member of Aluminum Stewardship Initiative (ASI) Nanshan Aluminium constantly optimises the carbon emission man- See the table below for details of the greenhouse gas emission of Nanshan Aluminium during the report period:
agement structure by establishing a clear carbon reduction target and continuously implementing the practices of carbon
neutrality. We established a working group of greenhouse gas reduction on March 7 2022 with the General Manager as the Emission indicators Unit 2021 Data 4 2022 Data 5
group leader the General Managers of branches as the deputy group leaders and the responsible persons in charge of carbon
inspection of branches as the members so as to promote the carbon emission management continuously and effectively. Greenhouse gas emission indicators (aluminium products)
Total greenhouse gas emission (scope 1 + scope 2) t CO -eq 13057121 9630182
In 2022 in order to standardise the Company's greenhouse gas management requirements Nanshan Aluminium carried out in- 2
ternal carbon emission inspection scientific statistics and evaluation and established and implemented the Management Sys- Greenhouse gas emission (scope 1) t CO2-eq 2118741 1504469
tem for Greenhouse Gas Inspection. Besides Nanshan Aluminium carries out the greenhouse gas inspection of previous year
annually and issues related reports so as to ensure the effective implementation of overall greenhouse gas plan and emission/ Greenhouse gas emission (scope 2) t CO2-eq 10938379 8125713
carbon reduction mechanism through data check and tracking verification mechanism. In 2022 the greenhouse gas emissions Carbon emission intensity6
of unit product of branches of Nanshan Aluminium achieved the emission reduction target. The details are as follows:
Longkou Donghai Alumina Co. Ltd. t CO2-eq/t product 0.55 2.22
Branch Expected carbon emission target in Actual performance in 2022 Completion Longkou Nanshan Aluminum Rolling New Material Co. Ltd. t CO2-eq/t product 0.52 0.57 2022 ≤ (tCO2e/t product) (tCO2e/t product) progress Medium-thick Plate Branch t CO2-eq/t product 0.58 1.09
Longkou Donghai Alumina Co. Ltd. 2.23 2.22 Completed
Electrolytic Aluminium Branch of Shandong Nanshan Aluminium t CO -eq/t product 13.24 17.19
Electrolytic Aluminium Company 17.19 17.19 Completed Co. Ltd. 2
Longkou Nanshan Aluminum Rolling New Y antai Donghai Aluminum Foil Co. Ltd. of Nanshan Aluminium t CO2-eq/t product / 1.25
Material Co. Ltd. 0.61 0.57 Completed Greenhouse gas emission indicator (electric power)
Medium-thick Plate Branch 1.095 1.092 Completed Total greenhouse gas emission of electric power t CO2-eq / 10099361
Yantai Donghai Aluminum Foil Co. Ltd. 1.31 1.25 Completed Greenhouse gas emission indicators (overseas factories)
Total greenhouse gas emission
During the reporting period we invited third-party agencies to check the carbon emission of Nanshan Aluminium and American factory t CO2-eq / 41088
Shandong Nanshan Aluminium Co. Ltd. has successfully passed the audit and certification of ISO 14064 greenhouse gas I ndonesian factory t CO2-eq / 769070
emission standard. In addition we designed and implemented a standard greenhouse gas inventory template according to
ISO 14064 standard and supervise the emission source energy consumption data and emission load in each quarter so as to Carbon emission intensity
ensure the accuracy of emission data. The audit scope of ISO 14064 includes: American factory t CO2-eq/t product 0.45 0.45
Alumina Company Electrolytic Aluminium Company Longkou Nanshan Aluminum Rolling New Material Co. Ltd. Indonesian factory t CO2-eq/t product / 0.66
Medium-thick Plate Branch Aviation Product Division of Aluminium Profile Company Donghai Aluminium Foil Co. Ltd.Nanshan Forge
Inspection of carbon footprint of products Low carbon production
Nonferrous metal smelting is one of the key control industry of carbon emission. Nanshan Aluminium publishes the enterprise
standard documents such as Greenhouse Gas Emission Targets and Implementation Plan and Management Procedures for
Accounting of Greenhouse Gas and proposes the short/medium-term emission reduction path of greenhouse gas. We take
Under the background of global carbon emission reduction trend carbon reduction measures during production and operation through electric power decarbonisation direct emission reduction
and the China's policy "carbon peaking and carbon neutrality" and recycling so as to achieve the short/medium-term emission goals of greenhouse gas.Nanshan Aluminium actively responds to the carbon reduction
requirements for the upstream and downstream supply chain in
accordance with the greenhouse gas emission reduction require- 4 In order to improve the disclosed granularity data of greenhouse gas we revised the data of 2021 in ESG report of 2022. In 2021 the data scope
ments of foreign customers formulates the gradual reduction of greenhouse gas emission indicators (aluminium products) involved Nanshan Electrolytic Aluminium Factory (Phase IV) Longkou Donghai
target and measures of carbon emission based on the third-party Alumina Co. Ltd. (Phase I Low temperature line) Longkou Nanshan Aluminum Rolling New Material Co. Ltd. Yantai Donghai Aluminium Foil Co.product verification report and focuses on building the key links of Ltd. Medium-thick Plate Branch of Shandong Nanshan Aluminium Co. Ltd. and Aluminium Profile Plant (Aviation Product Division). In 2021 the greenhouse gas emission indicators of electric power industry and overseas factories were listed separately. Since Indonesian factory was just
low-carbon aluminium metal supply chain. In the reporting pe- put into operation at that time there were no statistic data about it.riod Longkou Nanshan Aluminum Rolling New Material Co. Ltd. 5 In 2022 the data scope of greenhouse gas emission indicators (aluminium products) involved Nanshan Electrolytic Aluminium Factory (Phase
and Yantai Donghai Aluminium Foil Co. Ltd. voluntarily inspected IV) Longkou Donghai Alumina Co. Ltd. Longkou Nanshan Aluminum Rolling New Material Co. Ltd. Yantai Donghai Aluminium Foil Co. Ltd. and
the carbon footprint of products such as can/end stock ring pack- Medium-thick Plate Branch of Shandong Nanshan Aluminium Co. Ltd. In 2022 the greenhouse gas emission indicators of electric power industry
aging foil and battery foil and obtained the third-party verification and overseas factory were listed separately.certificate of ISO14067 carbon footprint of products. ISO 14067 Carbon Footprint Verification Statement 6 Since the calculation boundary and audit scope of carbon emission intensity in 2022 was changed compared to 2021 the emission intensity in
2022 was higher than that in 2021.
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2022 I Environmental Social and Governance Report Environment-friendly
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Direct emission reduction
Energy conservation technology transformation of Donghai Thermal Power Plant
Nanshan Aluminium has realised that high-efficiency energy manage-
ment is an important link for achieving carbon targets. We strictly abide Production
by the laws and regulations such as Energy Conservation Law of the & Operation Co-ordination
People's Republic of China establish an energy management structure Department of We transformed the frequency converter of No.3 unit
with clear hierarchy and responsibilities and actively explore the new Nanshan Aluminium
technologies equipment materials and process of energy manage- forced draft fan of Donghai Thermal Power Plant. We
ment based on high-efficiency energy management system. increased frequency converter loops based on the
power frequency operation of original forced draft fan
Since 2014 Nanshan Aluminium has established and implemented an Energy conservation group leader/ (for backup). The project was started from May 2022
energy management system and a three-level document management deputy group leader of subordinate
system constituted by the energy management manual procedure production and operation units and completed and put into operation in August. The
documents and management system documents. In 2022 Nanshan project investment is RMB 2400000 and the electricity
Aluminium optimised the system further based on the previous energy consumption can be reduced by 2127000kWh/year.management structure. We establish the Production & Operation Co-or-
dination Department to manage and supervise the energy conservation
work of subordinate units implement the energy management deci- Heads of functional departments and workshops
sions and check the implementation situation of energy conservation
measures.Energy Management Structure
Nanshan Aluminium combines the management theories and skills
with practical operation through systematic training on carbon reduc-
tion and environmental protection and conveys the sustainable devel-
opment concept and green low-carbon working method to all employ- The energy conservation technology transformation for
ees. During the reporting period we carried out more than 90 training
sessions on energy conservation and emission reduction according to improving the disturbance of No.5 unit gas desulfurisation Coverage rate of ISO
the annual training plan including energy management system ener- system (absorber slurry deflection devices are arranged
gy conservation awareness and energy conservation management. 50001 certification on the inlet filter screens of No.1-No.4 circulating pump)
can solve the problems such as low output of circulating
Nanshan Aluminium positively fulfils obligations in energy conserva-
tion and emission reduction. In our continuing efforts many factories 87.5% pump and poor desulfurisation efficiency due to the
have passed the ISO 50001 energy management system certification serious blocking of inlet filter screen caused by the
including the production and energy management activities organised solidification and deposit of desulfurisation slurry. The
in the core production and operation places such as Alumina Company project was demonstrated in October 2021 and put into
Electrolytic Aluminium Company Medium-thick Plate Branch Longkou operation in May 2022. It reduces the slurry solidification
Nanshan Aluminum Rolling New Material Co. Ltd. Donghai Aluminium
Foil Co. Ltd. and Aluminium Profile Plant. In the future we will continue and deposit and screen blocking remarkably increases
to improve the coverage of energy management system and imple- the output of circulating pump solves the problem of
ment the advanced measures for energy conservation and emission high auxiliary power ratio and saves the electricity by
reduction in more operation places. ISO 50001 Energy Management about 3050000kWh/year.System Certification
Electrolytic Aluminium Company carried out the energy conservation transformation of electrolytic cells Electric power decarbonisation
Electric power is a main energy type for manufacturing aluminium products. We mainly promote the electric power
decarbonisation of Nanshan Aluminium through green electric power procurement and renewable energy power generation.Electrolytic Aluminium Company is a pillar industry of Nanshan reduces the integrated energy consumption and greenhouse gas
Aluminium. It has two factory areas (Nanshan and Donghai) and emission by upgrading electrolytic cells. So far the first trial cell
two electrolytic aluminium factories with 676 300KA and 400KA has been put into operation in November 2022 4 electrolytic cells Green electric power procurement
electrolytic cells. were replaced in 2022 and 70 energy-conservation cells will be
replaced by 2023. After replacing electrolytic cells the integrated Nanshan Aluminium takes the energy structure improvement as the starting point calculates the power requirement during
Since 2021 Electrolytic Aluminium Company has started digital AC power consumption of aluminium liquid was reduced by more
and intelligent transformation on electrolytic cell control system than 200kWh/t.Al compared with that in 2022. The electricity production according to the customers' carbon reduction targets and requirements actively consumes the renewable energy
and upgraded crust breaking cylinders into intelligent ener- consumption can be reduced by 94000000kWh/year and the resources through green electric power transaction and green electric power certificate purchasing and realises replacement
gy-conservation crust breaking cylinders. Through digital and carbon emission can be reduced by 77000t. of thermal power. During the reporting period Nanshan Aluminium has purchased 30000000kWh green electricity certificate
intelligent transformation of electrolytic cell control system it is and co-ordinated for peak regulation during the Spring Festival and in the daily period.estimated that the integrated AC power consumption of alumin-
ium liquid in 2023 will be reduced by more than 40kWh/t.Al than
that in 2022 the electricity consumption could be reduced by
19000000kWh/year and carbon emission can be reduced by Renewable energy power generation
15500t.
Besides Electrolytic Aluminium Company also co-operates with In 2022 we constructed photovoltaic power generation projects in different factories and improved the energy structure
Northeastern University Engineering & Research Institute to devel- remarkably through clean energy. During the reporting period an electricity of 18804047.2kWh has been consumed
op the energy-conservation lined structure electrolytic cells and from the operating photovoltaic projects.
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2022 I Environmental Social and Governance Report Environment-friendly
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The construction situation of photovoltaic projects is shown as below: Environmental impact
Donghai Power Plant Donghai Aviation Product Park Nanshan Park 5.2
Under the theme of "establishing an ecological civilisation system and promoting
Completed power generation Completed power generation Planned construction capacity green and sustainable economic and social development" Nanshan Aluminium
1.39MW 50.93 carries out the ecological environmental protection concept fulfils responsibility MW 49.14MW Under construction in ecological environmental protection according to the guidelines of building
resource-saving enterprise promotes clean production and circular economy
and regards "green" as the main theme of industrial development. In 2022 we
continued to define the environmental objectives improved the environmental
management system and structure optimised the manufacturing process in
Recycling production links and reduced pollutant emission from the source.Nanshan Aluminium continuously improves the recycling and comprehensive utilisation system of recycled aluminium and has built an
aluminium scrap recovery project with the annual output of 100000t to strengthen the cyclic utilisation of recycled aluminium. Besides Short-term goals Medium and long-term goals
we co-ordinate with customers to implement aluminium closed-loop project according to the product process plan increase the use of Realising lightweight and recycling of solid waste at the While achieving the short-term goals realising the
industrial waste and reduce the use of electrolytic aluminium water/remelting ingot as well as the carbon emission of industrial chain. branches of Nanshan Aluminium by treating solid waste ultra-low discharge of waste gas and "zero emission
Waste heat recovery and utilisation is an important way to save and utilise energy efficiently in aluminium smelting and processing properly and full recycling" of wastewater at most branches of
industry. Nanshan Aluminium implements low-temperature recovery and utilisation of waste heat during aluminium smelting. Nanshan Aluminium by fully upgrade and transform the
environmental protection facilities for wastewater and gas
By utilising the cascade recovery of By utilising the waste steam of high- And by using waste heat steam
waste heat from alumina calcination pressure unit in alumina settlement boilers in the calcination process Environmental management target of Nanshan Aluminium
furnace we can save about workshops we can save we can save about
10000 t 8000 t 70000 t Environmental management
of steam every year of steam every year of steam every year Nanshan Aluminium strictly abides by the national laws and regulations of the United Sates and Indonesia as well as
During the reporting period the energy consumption indicators of Nanshan Aluminium are described in the following table: regulations on ecological environmental protection such local environmental regulatory requirements implement
as Environmental Protection Law of the People's Republic the Management Methods for Environmental Protection
of China Environmental Impact Assessment Law of the of Nanshan Holdings and strictly fulfil our responsibility in
Energy consumption situation People's Republic of China and Regulations on Administration the environmental protection. During the reporting period
Energy consumption indicator Unit 2021 Data 2022 Data7 of Construction Project Environmental Protection . For Nanshan Aluminium has no environmental protection
overseas operation places we strictly abide by the laws and accidents violations or punishment.Indirect energy consumption
Purchased electric power kWh 2048287783 48849155008
Purchased steam t / /
Direct energy consumption
Diesel t 4309 3699
Raw coal t 6564588 5167786
Natural gas 10000m3 31743 31162
Comprehensive energy consumption Ton of standard coal 5301002 4183717
Purchasing of green electric power energy kWh / 30000000
Self-generation and self-utilisation of solar electric power energy kWh / 18804047
7 Data scope covers some major production factories in China (Donghai Thermal Power Plant Nanshan Electrolytic Aluminium Factory Nanshan
Aluminium Profile Plant Longkou Donghai Alumina Co. Ltd. Longkou Nanshan Aluminum Rolling New Material Co. Ltd. Yantai Donghai
Aluminium Foil Co. Ltd. Yantai Nanshan Aluminium New Material Company and Medium-thick Plate Branch of Shandong Nanshan Aluminium
Co. Ltd.).
8 Due to the shutdown of a unit in Donghai Thermal Power Plant in 2022 the consumption of diesel oil and raw coal was reduced while the
purchasing electric power was increased.
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2022 I Environmental Social and Governance Report Environment-friendly
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Management system Management Structure
The Management Methods for Environmental Protection of Nanshan Holdings systematically defines the environmental By establishing a sound management structure Nanshan Aluminium defines the environmental management duties and
objectives key work functional division and assessment mechanism of the Company. We attach great importance to the steady authorities of different levels and continuously improves the environmental governance capability. We established a three-level
realisation of short medium and long-term environmental protection goals focus on eight categories of management and five environmental management structure constituted by the "Headquarters Environmental Protection Office - Branch Management
assessment indicators and check and evaluate all subordinate enterprises periodically. We closely associate the assessment - Branch Security and Environment Department" to fully carry out the performance assessment of environment management
result to the performance of management level and branch leaders so as to enhance the importance and enthusiasm of and steadily promote the implementation of green strategy of Nanshan Aluminium.enterprise management and employees towards environmental protection.Headquarters Environmental
n Protection Office Branch Management
Branch Security and
tio Environment Department
ntae n
lem
p ollu
tio rmi
t Environmental
Environmental accident Im of p
e
on
p ent management on Set the environmental management Implement the environmental man- Decompose and refine the environ-si m
management Goal management em
is
nag
e the production goals and annual environmental agement objectives of headquarters in mental goals and supervise the envi-
ma site management plans and supervise the links of production and operation ronmental management of production
the environmental management units through daily/quarterly/annual
Performance Production performance of branches Assign and manage the environment management management assessment Standard work of production units comprehen-
emission
Complete Carry out environment policy pro- sively and report the achievements to of waste
Indicator Equipment environmental gas and motion and organise environmen- the headquarters periodically
management management protection wastewater tal protection training
archives
Standardised Technology Standard
management management management of
solid waste
Three-level environmental management structure of Nanshan Aluminium
Eight Dimensions of Environmental Management System of Nanshan Aluminium Five assessment indicators of environmental performance Nanshan Aluminium invited Shandong Longxin Monitoring Technology Co. Ltd. (hereinafter referred to as "Longxin Company")
as the third-party agency (i.e. external environmental protection manager) to guide and supervise the environmental
Carry out professional training and enhance the environmental protection awareness management of core operation places organise all units to prepare environmental protection indicator management plan and
carry out clean production and environmental impact assessment. In 2022 Longxin Company increased the environmental
inspection frequency and intensity on different units and factories of Nanshan Aluminium and carried out multiple
environmental protection inspections referring to the key points of environmental protection department so as to further
In 2022 Nanshan Aluminium formulated a complete training guarantee the environmental compliance of the Company.plan for the environmental protection leaders including
hazardous waste management pollutant emission permit
management system and environmental protection laws Compliance of emission
and regulations and the training was organised by the
heads of Security and Environment Department. Apart By adhering to the concept of "promoting clean production regulations and requirements of regulatory agencies in
from internal training we actively organise external and realising sustainable development" Nanshan Aluminium overseas operation places. We improve the pollutant treatment
training about carbon emission and green factory for the actively carries out pollution prevention and control in all capability by upgrading the technology in source reduction
environmental protection leaders so as to further improve production links. We implement high-standard management and recycling actively explore the recycling method of waste
their environmental protection knowledge and professional over waste gas wastewater and solid waste in strict strengthen the pollution prevention and control and promote
skills. accordance with the pollutant emission management laws the standard and clean emission of production.Waste gas management
Nanshan Aluminium has formulated and implemented the desulfurisation alumina adsorption catalytic combustion
Control Procedures for Emission of Atmospheric Pollution in and oil mist recovery and continuously reduce the impact of
Deeply rooted in high-quality green development and as strict accordance with the Law of the People's Republic of production on atmospheric environment.an integrated aluminium enterprise planning a layout in Coverage rate of ISO
whole industrial chain Nanshan Aluminium integrates 14001 certification
China on the Prevention and Control of Atmospheric Pollu-
tion Comprehensive Emission Standards for Atmospheric By learning from excellent practices in domestic and abroad
with the international standard optimises management
87.5 Pollutants as well as the laws and regulations of overseas
the emission concentration of nitrogen oxide and sulfur di-
and improves benefits. During the reporting period the % operation places. We strive to promote ultra-low discharge oxide of Nanshan Aluminium is much lower than the local environmental management system of the Company has modification according to different production process of standard requirement of Shandong Province due to the adop-
been recognised by many professionals and successfully branches treat the particles nitrogen oxide sulfur diox- tion of advanced environmental protection equipment in the
passed the certification of ISO 14001 environmental ide fluoride and VOCs generated from the production links industry. In the future Nanshan Aluminium will strengthen the
management system and GB/T 36132-2018 General through environmental protection process such as bag dust management and control on arbitrary emission and on-site
Principles for Assessment of Green Factory. Green Factory Certificate removal electrostatic dust removal wet electrostatic dust environmental protection and further reduce the impact on
removal SNCR and SCR denitration limestone/gypsum wet surroundings.
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Prevention and control of solid waste
Accelerate the organised ultra-low discharge modification In accordance with the Law of the People's Republic of China effective treatment of hazardous waste. We formulate the
on the Prevention and Control of Solid Waste Pollution Control Procedures for Solid Waste and collect and treat the
We strictly abide by the national and local requirements for atmospheric pollutant emission. Technical Specifications for Collection Storage and solid waste according to the principle of "reduction recycling
Transportation of Hazardous Waste Management Method and hazard-free treatment" based on the prevention and
We incorporate the waste gas treatment facilities within the responsible areas of all branches into the branch and for Transfer of Hazardous Waste and relevant regulations of control measures of "source reduction intermediate control
workshop equipment management. They accept the patrol inspection maintenance care and overhaul equivalent overseas operation places Nanshan Aluminium promotes terminal governance and recycling".to the main equipment to ensure their efficient and normal operation. the recycling of harmless waste while ensuring the safe and
General Hazardous Domestic
waste waste wastes
Constantly propel the unorganised ultra-low discharge control
All production posts shall control the arbitrary emission of production system collect the spills into system timely Such as aluminium scrap desulfuri- Such as aluminium ash waste lu- Domestic wastes shall be cleared
and prevent secondary pollution. sation gypsum and red mud bricating oil emulsified liquid and away and disposed by environ-
waste diatomaceous earth mental sanitation department
During storage transportation and handling we take preventive measures such as enclosing dust screen and Aluminium and foil scrap are recy-
vehicle washing to prevent dust pollution. cled through smelting furnace Hazardous waste that can be uti-
lised or reduced comprehensively
Red mud is stored in piling yard in shall be pre-treated
a dry mode
Residual hazardous waste shall
Unintermittent ultra-low discharge monitoring assessment be entrusted to qualified unit for
proper treatment
All units shall install the online monitoring system according to environmental protection management
requirements and obtain the mark of conformity through contrastive monitoring and effectiveness audit.Waste Staging Hierarchy of Nanshan Aluminium
Longxin Company defines the monitoring points items frequency and time according to the annual self-
monitoring plan of each unit. Hazardous waste incinerator
Nanshan Aluminium fully supports ultra-low discharge modification continuously invests in ultra-low discharge modification
projects and improves the air quality of factory area and surroundings. So far all branches strictly abide by the national and
local laws regulations and requirements and the production emission conforms to the standard. In 2022 Shandong Nanshan Aluminium Co. Ltd. invested RMB 9200000 in building the Estimated amount of
hazardous waste incinerator (design treatment capacity: 500kg/h solid waste equal to
3600t/a) on the north and east of bathroom of new aluminium alloy production line in reduced hazardous waste
The following table provides our waste gas emission indicators during the reporting period: Donghai Industrial Park and reserved an allowance for treatment. The treatment objects
include surface treatment sludge oily sludge waste rolling oil waste mineral oil and waste
liquid pressure oil generated from existing project. After incineration it is estimated that 2668t
2668t of hazardous waste can be reduced every year.
Waste gas emission indicators
Emission indicators Unit 2021 Data 2022 Data9
Nitrogen oxide t 2935 3484
Grade-keeping and comprehensive utilisation project of recycled aluminium
Sulfur dioxide t 2768 7801
Non-methane hydrocarbon t 169 143
Particles in flue gas from the burning and In 2022 Nanshan Aluminium continued to promote the t 59 72 construction of grade-keeping and comprehensive utilisation roasting furnace project of recycled aluminium. Through an advanced
Particles t 1030 838 production process of recycled aluminium and grading utilisation we can achieve energy conservation emission
reduction and clean production while producing high-quality
9 Data scope covers some major production factories of Donghai Thermal Power Plant Nanshan Electrolytic Aluminium Factory Nanshan aluminium products. The grade-keeping and comprehensive
Aluminium Profile Plant Longkou Donghai Alumina Co. Ltd. Longkou Nanshan Aluminium Rolling New Material Co. Ltd. Yantai Donghai utilisation project of recycled aluminium can collect 106900t
Aluminum Foil Co. Ltd. Yantai Nanshan Aluminum New Material Co. Ltd. Medium-thick Plate Branch of Shandong Nanshan Aluminium Co. Ltd. of aluminium scrap every year produce 100000t of recycled
and Indonesian and American factories. Indonesian factory was officially put into operation in 2022. Due to the increase of annual output the aluminium water reduce the solid waste and achieve
indicators of nitrogen oxide sulfur dioxide and particles in flue gas from the burning and roasting furnace were increased in 2022. remarkable economic benefits.
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During the reporting period the comprehensive utilisation ratio of solid waste (hazardous waste and general waste) of Nanshan During the reporting period Nanshan Aluminium complies with all standards in wastewater discharge. The related indicators
Aluminium reached 50% and all hazardous waste was treated as required which reaches the industry-advanced and historical best level. are as follows:
Amount of produced and utilised solid wastes Wastewater discharge conditions
Indicators Unit 2021 Data 2022 Data10 Emissions Unit 2021 Data 2022 Data 11
Total generation of solid wastes t 5564270 5263747 Wastewater 10000t 113 97
Wherein: Generation of hazardous wastes t 81490 86419 Filter pressing water 10000t 238 239
Reutilised hazardous wastes t 20793 85928 Recycled wastewater 10000t 130 130
Wherein: Generation of general wastes t 5482780 5177328 COD kg 57376 57392
Reutilised general wastes t 3048956 3828615 Ammonia nitrogen kg 598 615
Wastewater discharge
In strict accordance with Water Pollution Prevention and Control Law of the People's Republic of China and other laws and regulations Green office
of operation places Nanshan Aluminium formulates the Control Procedures for Sewage Discharge continuously optimises the
environmental protection facilities and management system for wastewater with the "zero discharge and all recycling" as the target In addition to carrying out the concept of green and low carbon production Nanshan Aluminium is committed to creating a
and reduces the adverse effect of water pollutants on human health and environment. green office environment in the Company and integrates the sustainable development concept into daily work. We advocate
paperless office promote the use of energy conservation equipment publicise water saving and encourage employees to use
During construction all branches build sewage treatment facilities in factory area to meet the municipal sewage discharge/collecting standards public transport so as to practice a low-carbon lifestyle from top to bottom.according to the characteristics of product and production process. In addition to the conventional pollutants such as COD BOD ammonia
nitrogen and total phosphorus we also treat the industrial wastewater containing heavy metal and waste oil with the sewage treatment
technologies such as "demulsification flocculation reducing agent reduction multi-media filtration and activated carbon filtration".We promote the energy Electrocars are used as
Comprehensive utilisation modification of the wastewater in the backflow water of Nanshan Thermal conservation modification the vehicles for securi-
Power Plant of lights and adopt the ty/equipment inspec-
timing and voice control tion and visiting
light management mode
to reduce the power con-
The original make-up water of No.4 slag scraper of Nanshan Thermal Power Plant Save the amount industrial water sumption in lighting
is industrial water and used for cooling the boiler slug and sealing the hearth but
the wastewater after cooling contains sundries and heavy metal and cannot be
recycled due to water quality which is wasteful for industrial water. According to 17280t
the field investigation and calculation results Nanshan Thermal Power Plant adds
the linkage valves and complementary tubes to the original tubes utilises the
filter water comprehensively from the backflow water tank as the source of make-
up water for No.4 slag scraper. It prevents the filter water in the backflow water We strengthen the em- We further popularise
tank from flowing back into the tower and reduces the risk of shutdown accidents. ployees' saving con- water-conserving de-
Furthermore it helps us save the industrial water of 17280t significantly reducing sciousness by pasting vices in office places
the unnecessary consumption of industrial water. the slogans such as and conduct a regular
water saving and turning inspection to avoid wa-
off lights when leaving ter venting overflowing
dripping and leakage
Promotion of Energy Conservation and
Green Office Measures Emission Reduction
11 T o improve the wastewater management effectiveness Nanshan Aluminium improved all statistical data of wastewater discharge indicators
in 2022 and re-evaluated and traced the wastewater discharge data of 2021. We hereby adjust the wastewater discharge data of 2021 please
take the ESG report of 2022 as the standard. The wastewater data scope in 2022 covers some major production factories of Donghai Thermal
10 Data scope covers some major production factories of Donghai Thermal Power Plant Nanshan Electrolytic Aluminium Factory Nanshan Power Plant Nanshan Electrolytic Aluminium Factory Nanshan Aluminium Profile Plant Longkou Donghai Alumina Co. Ltd. Longkou Nanshan
Aluminium Profile Plant Longkou Donghai Alumina Co. Ltd. Longkou Nanshan Aluminium Rolling New Material Co. Ltd. Yantai Donghai Aluminium Rolling New Material Co. Ltd. Yantai Donghai Aluminum Foil Co. Ltd. Yantai Nanshan Aluminum New Material Co. Ltd. Medium-
Aluminum Foil Co. Ltd. Yantai Nanshan Aluminum New Material Co. Ltd. Medium-thick Plate Branch of Shandong Nanshan Aluminium Co. Ltd. thick Plate Branch of Shandong Nanshan Aluminium Co. Ltd. and Indonesian and American factories.and Indonesian and American factories.
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5.3 Resource conservation
Nanshan Aluminium constantly enhances the water resource management level Water resource consumption
and actively takes the measures for protecting biodiversity. We strictly control the
potential risks of water resource by carrying out water resource risk assessment Nanshan Aluminium continues to implement the water resource comprehensive management idea of "multi-purpose grading
and optimise the closed-loop utilisation of water resource so as to guarantee the and cascade utilisation" and promotes the reasonable utilisation of water resource through technical transformation and
water consumption safety and stability during production and operation. Besides recycling. During the reporting period we continued to inspect and optimise the production lines with high water consumption
we carry out special risk assessment on biodiversity take measures to reduce risks in factories and reduced unnecessary water resource loss by improving the water conservation process. On the other hand
and minimise the adverse effect on biodiversity. we constantly optimised the internal water circulation system and improved the reuse rate of rainwater sewage and water
resource through recycling of rainwater and sewage.Water resource management
Recycling of rainwater in
red mud reservoir Flushing water reuse
Technology transformation of
ultrafiltration back washing water
Nanshan Aluminium regards the utilisation and management of water resource as a
materiality issue and constantly promotes the delicacy management of water resources. We have completed the diver- In Longkou Donghai Alumi- We adjust the operation
During the operation the Company strictly abided by and implemented the Water Law of sion transformation of rainwa- na Co. Ltd. the water for mode and increase the ultra-
the People's Republic of China the Regulations for the Administration of Water Collection ter and sewage in the factory flushing the "running emit- filtration time and chemical
Licenses and Water Resources Fees the Water Pollution Prevention and Control Law of and living area of Longkou ting dripping and leaking" cleaning frequency accord-
the People's Republic of China and other laws and regulations as well as attached im- Donghai Alumina Co. Ltd. so products in alkaline work- ing to the raw water quality
portance to water resource management and conservation in the whole value chain. Our the rainwater in factory area shop as well as for the floor so as to reduce the ultrafil-
production water mainly comes from municipal pipelines. When in shortage of water the can be collected and recycled and equipment is recycled tration water and save water
water supply company of Nanshan Group is responsible for communicating with Longk- through a sedimentation tank by a special sewage pump resources
ou Water Supply Company for introducing water from the Yellow River. In 2022 Nanshan station
Aluminium formulated and successfully achieved the annual water consumption and
withdrawal targets according to the actual production situation. We also established a
complete water resource management and control system in long-term practice.Water resource risk management
Nanshan Aluminium carries out water resource risk assessment on Alumina Company
Electrolytic Aluminium Company Medium-thick Plate Branch Longkou Nanshan Alumi-
num Rolling New Material Co. Ltd. and Donghai Aluminium Foil Co. Ltd. and the assess-
ment scope includes occurrence probability hazard rating and risk level of water resource
risks. According to the water resource risk analysis result we issued the Water Resource
Risk Assessment Report of Shandong Nanshan Aluminium Co. Ltd. and confirmed that
there is no high water resource risks which further strengthen the management and take
corresponding countermeasures. In addition we formulated a Water Balance Diagram
of Shandong Nanshan Aluminium Co. Ltd. according to the analysis on the water supply
and consumption volume to further sort out the high water consumption links take spe-
cific water conservation measures and continuously improve the water resource utilisa-
tion ratio of the Company.Prior control In-process control Post-action control
Make precedent water re- Continuously monitor the Periodically disclose the
source risk warning and an- water discharge and quality monitoring result of water
nouncement and control the occurrence pollution discharge and dis-
probability of potential wa- charge reduction plan and
Carry out transparent and com- ter resource risks with active realise transparent manage-
pliant evaluation and research risk control measures ment of water resource risks
on potential water resource
risks
60 61Low-carbon and
2022 I Environmental Social and Governance Report Environment-friendly
Development
Circulating water polarisation device Biodiversity protection
Biodiversity is a foundation and guarantee for human sur- imises the adverse effect on biodiversity during production
Shandong Yili Electric Industry Co. Ltd. (Nanshan vival and development. By adhering to the concept of build- and project operation but also optimises the positive effect.Thermal Power Plant) co-operates with Polarised ing a planet with harmonious coexistence between human
and nature we strictly abide Environmental Impact Assess- The Company formulated the Management Procedures for Water Treatment Institute of Shandong University of Biodiversity Protection of Nanshan Aluminium and defined
Science and Technology to transform the circulating ment Law of the People's Republic of China Law of the the management procedures on new (reconstruction and
water system of two units. By installing circulating People's Republic of China on Soil and Water Conservation
water polarisation devices circulating water can keep Regulations on the Administration of Construction Project expansion) projects daily environmental management
Environmental Protection and the suggestions of Biodiversi- activities biodiversity risk management and alien species a high concentration ratio (6 times or above) when assessment.the condenser is not scaling and the cooling tower is ty Conservation in China. Nanshan Aluminium not only min-
low in algae content the concentration ratio can be
controlled according to the seasons and water quality
and 690000m3 water can be saved each year.water can be saved each year
All construction projects of
690000 Nanshan Aluminium should m3 be entrust to qualified units
for environmental impact
assessment and identifying
real effects on biodiversity
In the reporting period Nanshan Aluminium had no water shortage or relevant events. The water resource utilisation indicator
is shown as below:
Water resource consumption indicators We formulated a man-
agement procedure
for wastewater waste We prepare release peri-
Indicators Unit 2021 Data12 2022 Data13 gas noise solid waste odically update and share
and oil & chemicals to the biodiversity action
reduce the negative plans with all stakehold-
Total water withdrawals 10000m3 515 482 impact on biodiversity. ers.Municipal water withdrawal 10000m3 515 482
For the alien species intro-
duced through operation ac-
Total water consumptions 10000m3 575 493 tivities accidently the Security
and Environment Depart-
ment evaluates and controls
Total volume of circulating and reclaimed water 10000m3 60 1114 the risks and prepares a bio-
diversity evaluation report.
12T o improve the water resource management effectiveness Nanshan Aluminium improved all statistical data of water resource consumption
indicators in 2022 and re-evaluated and traced the water resource consumption data of 2021. We hereby adjust the water resource consumption
data of 2021 please take the ESG report of 2022 as the standard. In 2021 the total water withdrawal of water resource consumption did not Management Procedures for Biodiversity of Nanshan Aluminium
include surface water and groundwater so the data result is 0.
13D ata scope covers some major production factories of Nanshan Electrolytic Aluminium Factory Nanshan Aluminium Profile Plant Longkou In 2022 Nanshan Aluminium carried out a special biodi- precedent warning for potential risks. We strictly control the
Donghai Alumina Co. Ltd. Longkou Nanshan Aluminum Rolling New Material Co. Ltd. Yantai Donghai Aluminium Foil Co. Ltd. Yantai Nanshan versity risk assessment on the five production places i.e. adverse effect of production units on surrounding ecologi-
Aluminium New Material Co. Ltd. and Medium-thick Plate Branch of Shandong Nanshan Aluminium Co. Ltd. and Indonesian and American
factories. In 2021 the total water withdrawal of water resource consumption did not include surface water and groundwater so the data result is 0. Alumina Company Electrolytic Aluminium Company Long- cal environment through the measures such as "wastewater
14 kou Nanshan Aluminum Rolling New Material Co. Ltd. detection" "introduced species approval" "entry introduc- I n 2022 Nanshan Aluminium comprehensively implemented cost reduction and efficiency increase so the water demands in different processes
was reduced. Besides due to the improvement of deep processing and reuse standard the total volume of circulating and reclaimed water was Medium-thick Plate Branch and Yantai Donghai Aluminium tion and quarantine" and "transportation vehicle cleaning"
reduced slightly compared to 2021. Foil Co. Ltd. We prepared a Biodiversity Report of Nanshan and continuously protect the ecological environment of lo-
Aluminium according to the assessment result and gave cal area.
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6.1 Urgent needs of talents
Nanshan Aluminium adheres to the development concept of "people first" and
regards talents as the core strategic resource for sustainable development of the
enterprise. We continuously expand the excellent talent team insist on equal
and compliant employment create a diverse and inclusive corporate culture and
vigorously support the company development.Equal employment
In strict accordance with the Labor Law of the People's Republic of China and Labor Contract Law of the People's Republic of
China Nanshan Aluminium establishes a complete human resource management system including staffing management
system recruitment system training system compensation and welfare system performance system employee job change
management system and foreign expert management regulations.During employment period we adhere to the corpo-
rate culture of "diversity and equality" strictly abide
by the systems such as Management Procedure for
the Prohibition of Discrimination and Management
Procedure for the Prohibition of Mental and Physical
Abuse eliminate discriminations due to race creed
gender age and marital status constantly optimize
the internal employee structure and realize reason-
able employee distribution of different companies
genders ages specialties levels and educational
06 background. As of December 31 2022 we own 16855 employees in the distribution as follows:
We own
Perseverance for Goodness 16855 employees
Peaking the Mountains
Nanshan Aluminium always regards employees as the most precious wealth of the
enterprise. We insist on maintaining the employees' legitimate rights and interests
continuously optimizing the human resource management system focusing on the
employee development and physical/mental health and providing them with good
occupational experience. We also insist on coordinated development with communities
and actively making contributions to build a better society.
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By company By gender The Company is always committed to maintaining the basic timely manner. In 2022 we had no employment of child labour
rights and interests of employees. We resolutely resist the em- or forced labour.ployment of child labour and forced labour and formulate and
4339 4027 continuously update the Management Procedures for Prohibi- Besides we fully respect and guarantee the employees' rights
tion of Forced Labour Management Procedures for Prohibition such as freedom of association and faith right to collective bar-
12516 12828 of Child Labour and Remedial Measures and Management Pro- gaining freedom to form and participate in trade unions and
cedures for Protection of Underage Workers according to the In- peaceful assembly based on the Management Procedure for
ternational Labour Office (ILO). We strictly review the identity of the Right to Freedom of Organizing Trade Unionsand Collective
all employees. If child labour is found after inspection we will Bargaining and Management Procedure for Staff Represent-
stop the employment immediately pay the labour remunera- ative. In 2022 the proportion of collective agreement signing
tion and contact with their parents or statutory guardians in a and employee representatives was 100%.Parent company Principal branches Male Female Talent attraction
Nanshan Aluminium insists on building a high-level chasing and other benefits to drive the positive development
By age By specialty high-potential and dynamic employee team and continu- of employment in the operation place with rich enterprise re-
ously improves the core competitiveness of the enterprise. sources. In Indonesia we hire local residents preferentially and
200 We select high-quality talents by assessing their morality provide them with training on basic operation skills. In 2022
3279
1847 ability experience and job qualification to promote the the number of Indonesian employees accounted for 68%.
steady development of the Company.
68
In 2022 we fully expanded recruitment channels and widely The number of Indonesian
1069 attracted excellent talents through campus and social recruit- employees accounted for
ment and internal recommendation. We fully consider the local
recruitment conditions offer a large number of job opportu- 68 %
3696 13671 nities for local residents in Longkou and provide house pur-
9880
30 years old and below 31-49 years old Production personnel Sales personnel
50 years old and above Technical personnel Financial personnel
Administrative personnel Campus recruitment First-line ordinary employee recruitment Special talent recruitment
At present the campus recruit- We revise and update the policy We introduce core position
By level By education background ment has covered 72 univer- of "cultivating new employees talents high-end technology
93 sities and colleges in China under the guidance of experi- research and development 47 wherein 9 universities were enced employees" improve the specialists and management
1887 increased in 2022. To attract recruitment rewards and make personnel according to the ac-
and retain high-quality talents specific requirements for the tual production and operation
875 we improve the salary plan for recruitment of different units. requirements as well as the sit-college students and provide uation of domestic and foreign
them with attractive and com- peer enterprises.petitive remuneration.
15933 Highlight Measures for Recruitment of Nanshan Aluminium 9312 5563
We pay high attention to the employee turnover and associate the turnover rate with
the assessment of units and department heads. Besides we formulate an incentive Employee turnover
Senior management Middle management Master Bachelor policy for core backbones. Considering the industry development prospect we rate of the Company
implement a remuneration incentive mode which connects the individual income
Frontline employees Junior college Below junior college with the Company's business efficiency to fully stimulate the employees' motivation
and retain and attract excellent talents to the maximum. As of December 31 2022 the 12.96 %
Employee Structure of Nanshan Aluminium in 2022（Unit：Person(s) ）15 employee turnover rate of the Company was 12.96%.16 The details are as follows:
15The following data statistic scope includes Chinese on-duty employees (including Indonesian projects). 16 Calculation formula of turnover rate: Turnover rate = Number of department employees in the period / (number of initial employees + number
of new employees).
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By gender By age By rank
Training for new Acquisition of professional Educational improvement
19.87 college students qualification certificates
According to the Training and We co-operate with the gov- We co-operate with Yantai Nan-
13.7113.33
12.73 Assessment Plan for College Stu- ernment to carry out enterprise shan University and help em-11.53 dents we assist them to quickly self-rating establish a self-eval- ployees improve their educa-
8.76 integrate with the working posi- uation platform for professional tional background through
5.43 tions and become a viable force technicians such as bench work- correspondence education and
for company development on ers and electricians and help all network education.three aspects: working skills employees obtain the profes-
1.82 management ability and corpo- sional qualification certificate
rate culture integration. suitable for specific posts.Male Female 30 years old and below 31-49 years old Senior management Middle management
50 years old and above Frontline employees Highlight measures for employee training of Nanshan Aluminium
Employee Turnover of Nanshan Aluminium in 2022 （Unit：%）
"New apprenticeship system" training project
In 2022 Nanshan Aluminium carried out the training project "new apprenticeship system" wherein 112 employees
Talent cultivation participated in the training and 108 of them obtained the skill level certificate finally. According to the work idea
of "enrollment upon recruitment entering the company means entering a school joint training of enterprise and
university" the project is mainly for the company's bench workers electricians and other professional technicians
Nanshan Aluminium focuses on the personal development of employees provides them with high-efficiency and perfect issues professional qualification certificates to the employees who pass the training assessment improves their
training system and clear occupational development path and co-operates with all employees to strive for the sustainable expertise and operation skills cultivates their craftsmanship and improves the overall quality of employee team and
development of enterprise hand in hand. the innovation capability and competitiveness of the Company.Employee training
Nanshan Aluminium attaches great importance to the value
created by employees during enterprise development.We continuously promote the construction of training
management system according to the investigation result
of training needs prepare detailed training plan and
customized training route for employees promote their Employees participated in the training of "new apprenticeship system"
capacity building expand their visions and create a high-
quality talent team."Golden Blue Collar" training project
We focus on the training modes and contents and realize
the whole coverage by combining online training with
offline training. Relying on internal resources we develop
and continuously optimize the online learning platform In 2022 Nanshan Aluminium actively responded to the
and formulate specific course content and learning government's call and promoted the technical talents
materials. In addition we co-operate with many external cultivation mode of "golden blue collar". As a system
training institutions to carry out open class and vigorously theory learning and practice skill improvement plat-
support the employee training. We gradually expand form jointly built by universities and enterprises the
the lecturer teams carry out one-to-one apprenticeship One-to-one apprenticeship training project takes the improvement of vocational skills of
training activities empower employees in operation place employees as the core follows the learning mode of
with professional perspective and promote the overall "enterprise-university system work-study integration"
improvement of employee competency. and fully assists for the comprehensive ability improve-
ment of professional technicians such as electricians
and bench workers. During the reporting period we
organized 171 employees to participate in the "golden Employee training qualification certificate of "Golden
blue collar" training project and 138 of them obtained Blue Collar" training project
the skill level certificate finally.
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Yantai Talent Workstation of Nanshan Aluminium PT Bintan Alumina Indonesia of Nanshan
successfully passed the final assessment Aluminium carried out language training on Employee promotion
Chinese and Indonesian
Nanshan Aluminium formulated a clear personal career pro- business operation and employee promotion.In July 2022 the "Yantai Talent Workstation of Nanshan motion path for employees and planned their development
Aluminium" declared by the Company successfully passed In 2022 we implemented different measures to optimize the
the final assessment. The workstation highly accords In May 2022 PT Bintan Alumina Indonesia of Nanshan
direction reasonably. We divide the posts into six categories
Aluminium carried out language training sessions on of operation functional management logistics marketing organization structure and cadres’ system actively promot-with the national talent policies and the Company's ed the "cadres withdrawal mechanism" carried out dynamic
development needs. It takes introduction and cultivation Chinese and Indonesian for the management personnel and technology sequence. Personnel in the sequences can
of high-level talents as the major task promotes the above director level and employees of major technical promote vertically from the operation execution and manage- management of rotation promotion and elimination on the
innovative technology research and development and posts about 300 persons participated in the training. ment level to the decision-making level. Posts in different se- current management cadres to ensure the matching be-
the achievement transformation and application and The activity gradually improved the oral proficiency of
Chinese and Indonesian employees according to their quences can be adjusted according to the characteristic of the tween personnel capability and post requirements excavate builds the talent base for maintaining the vitality of
actual requirements and oral level strengthened the business line. We establish a dual-channel promotion mech- more excellent talents and realize overall improvement of the enterprise and realizing high-quality industrial
development. exchange between Chinese and Indonesian employees anism so that the post setting can meet the requirements of personnel capability.and transferred many high-quality talents for enterprise
Yantai Talent Workstation has introduced and cultivated business. Promotion channel of operation sequence
27 high-level talents and cultivated 54 engineering
technicians for the Company since its establishment.Helper Assistant Deputy Operator Chief Operator Technician Senior Technician
Promotion channel of technology sequence
Employees Technical Engineer Assistant Engineer Engineer Senior Engineer Professional Engineer
Composition of "Yantai Talent Workstation of Nanshan Aluminium" Language training site on Chinese and Indonesian
Promotion channel of management sequence
During the reporting period Nanshan Aluminium has carried out 4481 trainings for all employees with the total training time
of 657345 hours.Number of trainees Total training time of Carried out sessions Training coverage
of training of employees Specialist Director/Team Leader Deputy Head/Head Deputy Factory Director/ Deputy General Manager/
16855 657345 Factory Director General Manager Person(s) Hours 4481 100 %
Sequence Promotion Case of Nanshan Aluminium
Training hours of employees classified by gender Training hours of employees classified by rank
1833
15705334125
500292
621387
Male Female Senior management Middle management
Frontline employees
Employee Training of Nanshan Aluminium in 2022 （Unit：Hour）
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6.2 Employee care
Nanshan Aluminium regards the employees as the center fully understands their
needs breaks through the communication channel provides employees with
diversified care and guarantee creates a warm working and living environment
and shares enterprise development achievements with them.Benefits New Year party Outgoing activities
For showing the corporate humanistic care we strictly guarantee the mandated benefits of female employees such as
Nanshan Aluminium continuously expands the employee welfare modes provides them with mandated benefits such as paid maternity leave and breastfeeding leave in accordance with the Management Procedures for Protection of Women Employees
annual leave and supplementary benefits such as seniority allowance night duty allowance full attendance bonus overseas provide medical room maternity lounge and nursery room for them and help them solve the problems such as sanitation
allowance transportation allowance high-temperature allowance health allowance heating allowance holiday benefits and and breastfeeding. In addition we pay high attention to the employees in straitened circumstances provide condolences and
birthday allowance optimizes the construction of living facilities and builds a sound and industry-competitive welfare system assistance to the employees with living difficulties recognized by the government pass on warmth and care to them and help
for all employees. them overcome difficulties.Democratic communication
Mandated Paid annual leave funeral leave maternity
benefits leave marriage leave and breastfeeding Nanshan Aluminium listens to the needs of employees and continuously strength-leave
ens the communication and exchange with them. According to the Employee Com- The employee
plaint (Appeal) Management Procedure Management Procedure for Staff Repre- satisfaction survey
Welfare allowance: Seniority allowance over- sentative and Information Exchange Negotiation and Control Procedures we fully result of the Company
seas allowance transportation allowance understand the employees' thought through employees' representative meeting
Supplemen- high-temperature allowance health allow-
ance heating allowance holiday benefits pre/post-shift meeting symposiums and employee relation specialists accept the tary benefits
birthday allowance night duty allowance full constructive feedback from employees and actively implement the measures. 87 %
attendance bonus and meal allowance
We also encourage employees to maintain their rights and interests through a
Performance incentive: Overproduction bo-
nus project bonus and excellence bonus complete complaint handling mechanism. We establish and continuously optimize
different information feedback channels such as employees' representative meet-
ing suggestion box email telephone direct communication with leaders and on-
Welfare housing: Free dormitories and dai- line communication platform. After receiving feedback we will make a thorough
ly necessities such as water electricity and investigation to further know the employee's complaints to solve their problems
Infrastructure heating facilities for non-local employees properly. We keep strict confidentiality for the personal information of employees
construction Entertainment venues: gyms sports venues who give complaints or suggestions.libraries etc. for employees; free visit of 5A Nan-
shan tourist attractions for internal employees Besides we periodically organize employee satisfaction investigations form inves-
Indonesian factory distributed holiday benefits to employees tigation reports collect and listen to employees' complaints and ideas timely and
Employee Welfare System of Nanshan Aluminium make rectifications and improvements according to the actual situation. In 2022
the employee satisfaction survey result of the Company was 87%.Besides we periodically carry out rich cultural and sports activities
such as tourism artistic performances and sports activities
help employees balance the relationship between life and
work alleviate their working pressure provide a platform and
opportunities for their communication and exchange enhance
the team cohesion and improve their sense of belonging and
identification to teams and the Company.Hiking activities Employees' Representative Meeting of Nanshan Aluminium
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6.3 Safety production Safety risk prevention and control Nanshan Aluminium insists on starting from the source deeply carries out safety risk identification and hidden danger elimination formulates an emergency plan for possible major safety risks during daily operation and minimizes the occurrence
Nanshan Aluminium fully understands the importance of safety for the sustainable probability and impact of safety risks.development of an enterprise. We establish and continuously improve the internal
safety management system carry out safety risk control occupational health In 2022 the Company carried out safety hazard inspection and emergency drills with the themes of the holding of "20th
management and safety culture propaganda comprehensively integrate the safety National Congress of the Communist Party of China (CPC)" and "Safety Production Month" to fully prevent and control safety
idea into full life cycle of enterprise production and operation and create a safe and production accidents.comfortable working environment for employees.Hidden danger elimination activity of
Safety management Safety inspection before holidays "Safety Production Month"
Nanshan Aluminium always adheres to the production the guidelines the Company sorts out and implements the
concept of "safety first". The Company carries out safety safety production management responsibilities of different
management in strict accordance with the Production Safety departments associates safety performance with the remu- In September 2022 to further consolidate the In 2022 by sticking to the theme of "Safety Produc-
Law of the People's Republic of China Fire Protection Law neration performance of senior executive builds a complete safety management achievements during the tion Month" Nanshan Aluminium steadily carried
of the People's Republic of China Regulations on Reporting safety responsibility network and establishes a safe and National Day excavate the hazards eliminate pro- out hidden danger elimination on equipment and
Investigation and Handling of Production Safety Accidents sustainable enterprise development mode. During the re- duction hidden dangers and assist the enterprise facilities safety protection fire-fighting equipment
Regulations on Supervision and Management of Occupa- porting period all branches of Nanshan Aluminium in differ- production and operation Nanshan Aluminium field management chemicals deep well casting
tional Health in Workplace and other safety-related laws ent operation places carried out safety management based carried out safety inspection on water electricity metal smelting and personnel operation and as-
and regulations as well as the Safety Management Stand- on the Occupational Health and Safety Management System heating natural gas fire prevention production sisted for improving the safety risk control level.ard System and Management System for Safety Production Certification (ISO 45001) and safety production standard safety equipment and facilities. Besides the Company organized all employees to
Rewards and Accountability of the Company. certification requirements while all domestic companies carry out the activity of "identifying safety hazards
passed the Class II safety production standard certification
By taking a sound safety management structure as the around" effectively identified the production safety and established and improved a dual-prevention system.foundation and effective safety management objectives as risks through self-inspection and self-correction and
strengthened the safety management achievements.Employees who provided excellent rectification sug-
Goal Assessment indicator gestions were rewarded and encouraged after review.During the reporting period 78 safety hazards were
There is no casualty accidents no fire or explosion The Company conducts profit and tax assessment on Safety inspection before holidays timely identified and rectified by employees.accidents and no occupational disease accidents. The senior executives based on their monthly assessment
key performance indicators of occupational health and year-end assessment results of which safety
and safety were mainly the work-related accident rate assessment accounts for 15%. The Company practices
supplemented by hazardous events. The work-related one-vote veto for work-related death incidents. Emergency drills of Alumina Factory in
accident rate is 1‰ . Bintan Indonesia
Health and Safety Goals of Nanshan Aluminium
In May 2022 Alumina Company of Nanshan Aluminium
in Bintan Indonesia carried out the activity of
"Emergency rescue drills for vehicle injury". The activity
General Organise relevant departments to carry out safety management comprehensively simulated vehicle injury accident of commanders on Hidden danger elimination activity
manager of
the Company site further verified the effectiveness and timeliness of
safety treatment process and improved the emergency
Improve the safety management system and safety production conditions handling capability of employees.Emergency Supervise different units to fulfil their safety production entity responsibilities
Management Office and implement the safety production responsibility system
Investigate and deal with safety accidents and carry out employee safety
education and training
Carry out daily safety management and safety report
Branches Organise safety production and occupational health examination
Assign full-time safety management personnel and registered safety
engineers to guide safety management
Safety Management Structure of Nanshan Aluminium
Activity of "Emergency rescue drills for vehicle injury" Activity of "identifying safety hazards around"
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The Company takes major safety accidents occurred in the industry as a warning focuses Contractor safety management
on safety accidents and injured employee treatment and standardizes the accident report Nanshan Aluminium had
process by referring to the Appraisal Standard for Human Injury Degree. We have made industrial accidents
explicit provisions on the injury level and report period of safety accidents as well as the Nanshan Aluminium adheres to the principle of "who is in charge of management who is responsible" formulates and
safety responsibilities of different departments so that relevant departments can timely continuously improves the Safety Management System for External Construction Personnel provide system guidelines for
and accurately receive the accident information carry out accident investigation and 18 guaranteeing the life safety of external construction personnel and improving the contractor's safety management capability disposal in the first time and fully guarantee the life safety of employees. and strictly prevents safety accidents of industrial chain. In the report period the work-related accident rate (serious injury and
During the report period Nanshan Aluminium had 18 industrial accidents with the work- casualties) for external construction contractors was 0.related accident rate of 0.95‰ and the lost time injury rate (LTIR) of 0.45.17 In the past three Work-related accident rate of
years we had no major casualties all accidents were minor injury/health damage and Contractor selection
all employees concerned were treated and treated properly. 0.95‰
Contractors shall provide qualification certificate documents including but not limited to enterprise qualification
certificate safety qualification certificate construction level certificate safety management personnel qualification
certificate special operation personnel qualification certificate and employee insurance information.Minor injury and Minor accidents Severe accidents Casualty accidents All contractors shall sign a safety management agreement which further specifies the potential hazards and control dangerous events measures during operation and clarifies the responsibilities of the parties in safety production management.Report and archive Report and archive Report and investi- Report and investigate
within 24 hours within 12 hours gate within 6 hours within 30 minutes Daily management of contractors
Integrate contractor safety management into overall safety management of the Company periodically carry out safety
supervision and inspection timely identify the potential risks in operation place and urge the contractors for rectification.Reporting Time Limit of Production Safety Accidents Strictly standardize the labor protective articles of employees and guarantee the life safety of construction personnel to the
maximum.Besides Nanshan Aluminium invites third-party agencies to check and evaluate the safety production conditions periodically
and provide multiple perspectives for the smooth implementation of safety production. In 2022 we invited Shandong Contractor performance assessment
Rui'an Safety Appraisal Co. Ltd. to conduct safety status evaluation on the 100000t rail transit high-performance metallic
material production line project of Aluminium Profile Company and all items met the requirements of safety production and Periodically carry out contractor safety performance evaluation and assessment.occupational safety. Strictly standardize the safety management review on contractor's hazardous operation.Periodically review the technical plan for contractor's construction safety and confirm the technical disclosure of
contractor safety.Previous Training to contractors
preparations Identification Assessment Response
Urge the contractors to carry out daily safety education and training on construction personnel and ensure the
construction personnel are trained before entering the construction site.Select legal and qualified Identify existing risks Conduct qualitative and quantitative Formulate countermeasures
appraisal units through harmful factors and evaluations on safety management and suggestions according to Contractor Safety Management Measures
tendering hidden dangers according to the risk and hidden the safety management situ-
danger identification result ation and complete the safety
status evaluation report
Third-party safety evaluation process of Nanshan Aluminium Occupational health
Nanshan Aluminium always gives priority to the occupational health and safety of employees. The Company follows the
occupational health and safety policy of "focusing on safety and prevention reducing risks and guaranteeing health"
constructs a perfect occupational health and safety management system continuously promotes safety culture propaganda
and creates a healthy safe and comfortable working environment for all employees.Employee health
In accordance with the Law of the People's Republic of China on We continue to promote the construction of occupational hazard
Prevention and Control of Occupational Diseases Regulations on risk grading and control system and hidden danger elimination and
Supervision and Management of Occupational Health in Workplace governance system fully check the potential occupational hazard
(No.47 order of the State Administration of Work Safety) Measures risks in workplace from the aspects such as operation environment
for Supervision and Management of Occupational Health Supervi- equipment and facilities surrounding environment and occupational
sion of Employers (No.49 order of the State Administration of Work health management and classify evaluate and publicize the risks
Safety) and other laws and regulations as well as the Management according to the risk category level and impact. Besides we con-
Procedures for Infrastructure and Work Environment and other inter- tinuously optimise the hidden danger elimination and governance
nal regulations the Company continuously improves the occupation- system standard and list formulate an emergency plan for occu-
Third-party Safety Evaluation Report of Nanshan Aluminium in 2022 al health and safety performance based on the occupational health pational health refine the responsibility for occupational hazard
indicators and the existing peer and best practices and implements elimination to the department post and equipment/facilities and
the occupational health protection for all employees effectively. co-ordinate with all units to realize normalized management of oc-
cupational hazard risks.
17 Calculation formula: Injury rate per million working hours = number of injured employees / (employees * working hours per day * working days
per year) *106.
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We further guarantee the health and safety of employees in production and life by improving the archives management and In 2022 the Company carried out a series of safety production training and emergency drills with the theme of "Safety
strengthening safety protection. Production Month" on the popularization of safety laws and regulations safety rules and systems post operation procedures
emergency plan fire safety knowledge and accident cases by suspending promotional banners setting bulletin boards and
watching educational film of safety warnings. In addition Indonesian factory actively responded to the initiative of provincial
Improve the archive management Strengthen the safety protection government of Riau Archipelago Indonesia to organize donation activities for construction units in local area participated in
the flag raising ceremony and gymnastics competition in "Safety Production Month" organized by the provincial government
Sign the Occupational Health Notification Contract Continuously promote the iteration of production and Labor Department of Riau Archipelago Indonesia and won the Enterprises Conforming to BPJS Standards for K3 Safety
with New Employees process and equipment and effectively reduce the Month in the Province of Riau Archipelago Indonesia and Excellent Award of K3 Safety Month Gymnastics Competition in the
harmful factors such as dust toxic substance and Province of Riau Archipelago Indonesia issued by the provincial government of Riau Archipelago Indonesia which were highly
Periodically carry out occupational health exami- noise appraised by the local government and Labor Department of Riau Archipelago Indonesia.nations for all employees
Purchase and distribute special labor protective
Manage and back up the documents related to oc- articles for the personnel working on site and dan-
cupational health publicity training occupational gerous posts according to actual needs strictly
hazard monitoring and detection evaluation and standardize the wearing and use of labor protec-
workers' occupational health monitoring by laws tion articles
and regulations
Suspend the occupational hazard notification
cards and warning signs in public place with occu-
pational hazards
Occupational Health and Safety Protection Measures of Nanshan Aluminium
Safety culture publicizing and implementation
Nanshan Aluminium attaches great importance to the construction of enterprise safety culture commit to continuously enhancing
the employees' safety prevention awareness and emergency response capability through staff training emergency drills and other Award photo of Enterprises Conforming to BPJS Standards Award photo of Excellent Award of K3 Safety
safety culture promotion to lead the healthy development of employees with the guidance of sustainable safety culture. for K3 Safety Month in the Province of Riau Archipelago Month Gymnastics Competition in the Province
Indonesia of Riau Archipelago Indonesia
During the report period
The Company carried out
safety training sessions Total training time of the participants of
4231 250000 hours 125000 persons
Sketches of Safety Culture Corridor
Safety Training Activities of Branches of Nanshan Aluminium
Enterprise entity responsibility Fire safety training of Donghai Commencement safety training of First-aid safety training of Flat-
training of Donghai Thermal Thermal Power Plant Electrolytic Aluminium Company Rolled Product Division Publicity Mobilisation Meeting of "Safety Production Month"
Power Plant
78 79Perseverance for
2022 I Environmental Social and Governance Report Goodness Peaking
the Mountains
Safety production "Eight Focuses and Twenty
Measures" training "Safety Production Consulting Day" activity Passing on warmth
In 2022 the Company carried out safety production In June 2022 the Company carried out the activity of 6.4 Nanshan Aluminium always adheres to the concept of "serving and repaying
"eight focuses and twenty measures" training invited "Safety Production Consulting Day" with the theme of society" actively fulfils the social responsibility focuses on community
the Director of Emergency Management Office of Xufu "observing safety production law doing well as the development insists on harmonious development mode and community
Street to interpret relevant contents strengthened first responsible person" for the safety management reciprocity constantly repays the society with practical actions and passes on
the employees' understanding in safety production personnel of all units answered the doubts of dif- warmth and love to the society.laws regulations and knowledge assigned the ferent units about safety work further strengthened
safety production responsibilities to individuals and the work safety production achievements of the
advocated for all employees working together to enterprise and laid a good foundation for effective
create a safe and stable working environment. implementation of safety management.Community protection
Nanshan Aluminium takes the Management Procedures for Indigenous Protection and Autonomy and Protection of Prior and
Informed Consent Rights Management Procedures for Protection of Cultural Sites and Religious Shrines and Control Procedures
for Local Community Impact as the guidance continuously protects the rights and interests of indigenous residents ancient
Safety Production Training Site "Safety Production Consulting Day" Activity Site cultural sites and religious shrines and fully displays its responsibility as a responsible enterprise.Protection of the rights and interests of indigenous residents
Popularisation activity of safety production laws and regulations
The Company pays high attention to the impact of operation Informed Consent Rights we construct and continuously
on the community in project site actively promotes the optimize a diversified and open complaint channel for
In 2022 the Company carried out the popularization activity of safety production laws and regulations for all cadres communication and co-operation with indigenous residents indigenous residents steadily carry out the work related
and employees particularly publicized the laws and regulations closely related with safety production such as and local institutions develops the mineral resources and with indigenous residents such as local labor women
Production Safety Law of the People's Republic of China Amendment to the Criminal Law of the People's Republic other local natural resources properly with the acknowledge collection and settlement and fully guarantee their basic
of China and Regulations on Safety Production of Shandong Province clearly defined the obligations of operation and consent of indigenous residents and carries out new rights and interests. According to the evaluation outline
personnel and emergency treatment requirements and strengthened the safety production concept of "observing construction reconstruction and expansion according to indigenous residents could deeply participate in project
learning and using laws". laws and regulations. evaluation monitoring and treatment and establish a good
relationship with the Company.Relying on the Management Procedures for Indigenous
Protection and Autonomy and Protection of Prior and
Commitment of Nanshan Aluminium
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) benefit sharing
and informed consent. During new construction (reconstruction and expansion) closure decommissioning
divestment and natural resource acquisition we promise not to collude with the local government but provide
compensation or resettlement after the expropriation of natural resources in strict accordance with laws and
regulations. We also promise to communicate well in advance treat the recruitment work arrangement
salary and job promotion of indigenous residents with a fair and just attitude and completely eradicate all
discriminations.Training Activity of Safety Laws and Regulations
80 81Perseverance for
2022 I Environmental Social and Governance Report Goodness Peaking
the Mountains
Protection of cultural sites and religious shrines Showing humanistic care
Nanshan Aluminium deeply knows the importance of attention to the environment society and financial cost and Nanshan Aluminium fully respects the customs and habits in the operation place makes every effort to guarantee the life
tangible cultural heritage for the inheritance of Chinese benefits steadily avoids protects and transfers the ancient quality of local people through charitable donations and shows the humanistic care of an enterprise.civilization and focuses on realizing co-existence and win- cultural sites and religious shrines rectifies the projects
win of cultural protection and enterprise development. In which may have impact on the environment and safety In 2022 American factory of Nanshan Aluminium donated sponsorship to food donation banks for supplying sufficient food
accordance with the opinions of cultural relics administration of local ancient cultural sites and religious shrines and to low-income groups in need and tried to eliminate the impact of hungry on local community development. Besides the
department and Management Procedures for Protection effectively protect the material cultural. Company supplied festival gifts such as flour rice cream sugar and juice to surrounding Muslim people during Lesser Bairam
of Cultural Sites and Religious Shrines the Company gives in 2022 conveying sincere blessings of the enterprise with practical actions.Commitment of Nanshan Aluminium Guaranteeing life and health
Nanshan Aluminium always cares for the community people and sees the role as protecting the life and health of the masses.We fully respect the freedom of religious belief in operation place and promise to protect the ancient cultural sites Under the background of shrinking demand the Company responds to the national call in first time widely carries out
and religious shrines by laws and regulations during daily operation. charitable donations and volunteer services such as unpaid blood donation according to the needs of local government and
community and conveys love and warmth to community people in special period.Donations of oxygenators to Riau Archipelago Indonesia
Public welfare care
Nanshan Aluminium always keeps commitment to respecting and supporting community livelihood empowers the community As a responsible enterprise Nanshan Aluminium always interprets the corporate love with practical actions. In February
development with enterprise resources continuously enhances the residents' sense of happiness and belonging and makes 2022 Alumina Company in Bintan Indonesia donated 100 medical oxygenators to Riau Archipelago with the total value
contributions to build prosperous community. of more than RMB 1500000 aiming to solve the local problem of medical supplies shortage in Indonesia and providing
vigorous support for the life and health of local residents.Commitment of Nanshan Aluminium
The Company focuses on solving the adverse effect of enterprise operation on local communities through
active communication in strict accordance with national laws and regulations fully maintains the legitimate
and traditional rights and interests of local communities in land livelihood and natural resources and makes
unremitting efforts to promote community development.Assisting student development
Nanshan Aluminium always regards education as a key link to carry out public welfare activities. In 2022 the Company co-
operated with the government in operation place to actively carry out school aid construction provided pick-up services
for local teachers and students and effectively improved the local education level and students' living quality. Besides the
Company widely carried out sponsorship activities in culture sports science and technology according to the needs for high-
quality talents and provided financial security for promoting the comprehensive development of student groups.Cultural and sports sponsorship activities Technological innovation sponsorship
● N anshan Aluminium distributed a sponsorship of USD 2500 to ● I n 2022 American factory of Nanshan
the Community Sports Center in Lafayette the United States for Aluminium distributed sponsorship to
supporting the recreational and sports activities of local students student groups such as the McCultson
and enriching the spare time of local young students Robotics Group and the Robotics
Commune of West Lafayette Community
● N anshan Aluminium distributed sponsorship to the rugby team of School for supporting the robot research
Jefferson High School lacrosse team of Harrison High School and and competitions of students
other student movement groups for supporting the development
of young athletes Oxygenator Donation Site
Some Sponsorship Activities of Nanshan Aluminium in 2022
82 832022 I Environmental Social and Governance Report Performance of
UN SDGs
Unpaid blood donation Performance of UN SDGs
In 2022 to relieve the blood
supply pressure of blood dona- Nanshan Aluminium is committed to combining the United Nations Sustainable Development Goals (UN SDGs) with enterprise
tion stations during the industry development actively responds to and supports SDGs from multiple dimensions according to the identified materiality issues.downturn Nanshan Aluminium
and Indonesian factory actively
organized internal employees SDGs Response of Nanshan Aluminium SDGs Response of Nanshan Aluminium
to participate in unpaid blood
donation and effectively ful- ● D onate sponsorship to food donation banks for
● Refuse the employment of child labor and forced
helping the low-income groups in need and try labor and resolutely eliminate the illegal employ-
filled the social responsibility. to eliminate the impact of hungry on local com- ment
munity development ● A ttach importance to the talent cultivation and
● Supply sufficient foods to surrounding Muslim provide a reasonable and clear promotion path
people during Lesser Bairam and convey the for employees
sincere blessing of enterprise with practical ● Create job opportunities and promote local eco-
Indonesian factory carried out unpaid blood donation activities actions nomic growth
● A ccelerate the pace of scientific research and innova-
tion through industry-university-institute co-operation
● Provide occupational health and safety protec- and upstream/downstream industry co-operation
Promoting common prosperity of communities tive measures for employees and strengthen and promote industry development and innovation
the safety protection in their daily life
Nanshan Aluminium always adheres to the original intention of repaying society committed to integrating sustainable ● Steadily promote the high-quality grade-keeping and
development concept into public welfare and charitable undertakings focuses on talent employment residents safety and ● Provide diversified employee benefits and im- comprehensive utilisation project of recycled alumin-
prove the employee welfare system ium as well as the green and sustainable develop-
environment governance and makes unremitting effort to realize common prosperity of enterprise and community. ment of aluminium processing industry based on the
advantages of complete industrial chain
Improving living environment ● Insist on the corporate culture of "diversity and
● F ormulate a detailed training plan for employ- equality" and eliminate all workplace discrimina-
Nanshan Aluminium actively co-operates with communities in operation place ees continuously optimise the training mode tion
continuously carries out activities such as community health governance and hol- and content and promote the employee ca-pacity building ● Focus on living conditions of the needy employ-
iday decorations according to the actual situation and festival holidays and cre- ees and assist for them to solve problems
ates a comfortable artistic and green living environment for community residents.● R efuse gender discrimination and insist on ● Avoid protect and transfer the rights and inter-
equality of men and women for employment ests of indigenous residents ancient cultural sites
and religious shrines to fully display the responsi-
Promoting talent backflow ● Formulate the Management Procedures for bility of a responsible enterprise Protection of Women Employees and guar-
antee the gender equity in many ways such ● Empower the community development with en-
In June 2022 the activity of "Yantai Young Entrepreneurs Association's Tour as defining the exclusive benefits for female terprise resources and continuously enhance the
in District and City" - Longkou Station and Longkou Youth Assistance 'Double employees and setting convenient places for sense of happiness and belonging of community
Recruitment and Attraction'" was carried out more than 30 young entrepre- women residents
neurs from different districts of Yantai came to Longkou for examination and
exchange discussed the innovation and development issues and explored the ● P romote reasonable utilisation of water re-source through technical transformation and ● C onstantly optimise the quality management sys-
path of win-win co-operation. recycling tem and strictly control the product quality
In August 2022 "Home in Longkou - Green Bird Returns" 2022 Longkou Youth ● C ontinuously optimise the environmental protec- ● Respond to the after-sales service and customer
Talent Hometown Tour" organised by the Talent Leading Group Office of Long- tion facilities and management system of waste- needs in current day and improve the responsible
kou Municipal Party Committee was carried out successfully. 76 outstanding water and reduce the adverse effect of water consumption performance pollutants on human health and environment
young students of Longkou nationality from 54 well-known domestic universi-
ties such as Renmin University of China and Tongji University were invited. ● R elease the Greenhouse Gas Emission Targets and
Implementation Plan and realise low carbon pro-
duction through direct emission reduction electric ● Identify and evaluate the climate change risk is-
Guaranteeing resident safety power decarbonisation and recycling sues take corresponding measures for the identi-
● Construct photovoltaic generation projects and fied risks and continuously improve the response
Nanshan Aluminium actively co-operates with local fire brigade to participate in firefighting and joint defense improve the energy structure through clean to climate change risk level
tasks in surrounding villages and towns and makes own contributions to protect the life safety of residents. energy significantly ● Define the decarbonisation target and continu-
● Actively consume renewable energy resources ously carry out carbon neutrality practices
through green electric power transaction and
Highlight activities of Nanshan Aluminium for promoting common prosperity of communities in 2022 green electric power certificate purchasing
84 852022 I Environmental Social and Governance Report
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Work unit Tel.Post Email
86Tel: 0535-8666352
Email: 600219@nanshan.com.cn
Address: Nanshan Village Dongjiang Town Longkou City Yantai City Shandong Province China