China Steel

No leading practices were identified for this company.

China Steel has outlined four pathways towards carbon neutrality: electrification, carbon-free fuels, CCS and a full hydrogen smelting process. Its strategy integrates scenario analysis to identify climate-related risks and opportunities, alongside risk management measures, performance metrics and targets. Additionally, the company qualitatively incorporates carbon pricing into its transition plan.

No leading practices were identified for this company.

No leading practices were identified for this company.

China Steel has disclosed targets to reduce its scope 1, 2 and 3 emissions by 7% by 2025 and 22% by 2030, and to achieve carbon neutrality by 2050. By the close of 2022, China Steel disclosed a greenhouse gas offset credit balance of 4.5 million tonnes of carbon dioxide equivalent (CO2e). Yet, it remains unclear whether this balance will be used in the context of the company’s climate targets. The company needs to clarify how it intends to utilise carbon offsets.

China Steel identifies four pathways towards carbon neutrality electrification, carbon-free fuels, CCS and a full hydrogen smelting process. The company’s strategy integrates a scenario analysis that identifies climate-related risks and opportunities, risk management measures, performance metrics and targets. Further, it uses carbon pricing qualitatively in its transition plan.

China Steel has incorporated the increased use of steel scrap in its overall low-carbon transition plan as part of its mid-term goal for 2030. It has also implemented a strategy on sources of scraps and how they are utilised. However, the company incorporates no value or cost quantification in its steel scrap strategy.

China Steel has a stakeholder engagement strategy covering its customers and traders, but it has no low-carbon requirements and recommendations in place for its suppliers and clients.

China Steel has set targets to reduce its scope 1, 2 and 3 emissions by 7% by 2025 and 22% by 2030, and to achieve carbon neutrality by 2050.

China Steel is considering the development of CCS technology, but this is still in initial stages. This technology is expected to contribute to its low-carbon transition plan within the decade 2030-2040. The company’s primary use case for CCS in the steelmaking process is to integrate it in the blast furnace-basic oxygen furnace (BF-BOF) to capture emissions and achieve a carbon-free BF by 2040.

China Steel’s current production relies 100% on a carbon-intensive process, and several transition risks pose a threat to its decarbonisation.

China Steel has allocated a total of approximately USD 76.79 million to research and development (R&D) initiatives. Of this, USD 6.78 million (9%) was dedicated to enhancing efficiency in existing process plants, while another USD 7.86 million (10%) was invested in carbon capture, utilisation, and storage (CCUS) technology for large-scale commercial deployment.

The company has set three action plans to achieve its overall low-carbon transition plan: Pathway to Carbon Neutrality and Carbon Reduction Strategy Planning, Product Carbon Footprint Inventory, and Carbon Credits Management and GHG Offset Project.

The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. Furthermore, no evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

The company discloses its actions to increase local youth employment opportunities and has recruited 15 students as employees in 2022. Furthermore, the company states that it will also create local employment opportunities through the development of its offshore wind power industry supply chain. However, no public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups.  No relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training and education opportunities for workers and affected stakeholders. For instance, it has offered programmes for developing professional skills and cultivating AI talent. Furthermore, the company cooperates with top universities in Taiwan to provide Steel Introduction courses and has awarded scholarships to 18 students. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

No relevant disclosure was found to show if the company identifies the impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to their social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

No company policies or commitments related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

No evidence of the company’s policies or commitments related to key decent work issues was found in the public domain. These issues include the provision of safe, secure and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.   However, the company does disclose some indicators of workforce diversity, such as gender.

No company policies or commitments related to key ethical business topics – personal data protection, tax, bribery and corruption, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its business relationships.