Policy Statement on Biodiversity

CITIC Pacific Special Steel Group Co., Ltd. adheres to the concept of sustainable development, pledges not to engage in any business that damages the ecosystems and endangers biodiversity. The Company is active in the conservation and scientific sustainable use of biodiversity. The Company continues to pay close attention to the protection of biodiversity, responds to national policies and international calls as well as the concerns of domestic and foreign investors, fulfills the social responsibility and mission of a state-owned enterprise, and builds a global home in which human beings coexist harmoniously with nature.

Integrated biodiversity strategies
In accordance with the general requirements of the United Nations Convention on Biological Diversity, the Kunming Declaration, and the Opinions on Further Strengthening Biodiversity Conservation issued by the General Office of the State Council of the People's Republic of China, the Company integrates the biodiversity strategy with the ESG management framework system, strengthens internal publicity, and enhances the penetration of the awareness of biodiversity protection into the business process,  and assist the economic transformation in the direction of green and sustainability.

Strengthen ex-ante risk control of biodiversity
The Company enhances the protection and support for biodiversity and avoids all behaviours that harm biodiversity. The Company improves biodiversity risk assessment and prevention framework, especially emphasis on identifying related risks, and cautiously assessing the impact of potential environmental pollution and possible natural disasters on biodiversity involved in project construction, operation and production.

Guided by the relevant policy guidelines on ecological protection redlines, the Company establishes the concept of ecological protection redlines, respects the Convention on Biological Diversity, and carries out strict verification on the site selection and layout design of factories; during the construction of projects, steps are taken to protect natural habitats, wetlands, forests, wildlife corridors, and agricultural lands. The Company strives to mitigate the adverse impacts on the surrounding environment and communities as much as possible.

Mitigate biodiversity impacts
The Company aims to reduce negative impact on the natural habitat through "ultra-low emission transformation" of waste gas, comprehensive utilization of solid waste resources, recycling of water resources, noise control and so on.

Promoting biodiversity disclosure, communication and cooperation
The Company actively interacts with social groups and media through communication and promotion via multiple channels, to enhance the biodiversity conservation awareness of the Company, suppliers, business partners, and the public. The Company carries out biodiversity-themed education and training for employees and stakeholders to enhance their awareness and knowledge in biodiversity conservation.