Innovation New Material 2023 Environmental, Social and Governance Report
Innovation New Material
Technology Co., Ltd.
Environmental,
Social and
Governance
Report
Email: zqb@innovationmetal.com
Tel: 010-66536198
Address: No. 1808, Floor 18, Excel Centre, Wudinghou Street, Xicheng District, Beijing
Innovation New Material 2023 Environmental, Social and Governance Report
Contents
Message from the
About the Report 01 03 Key ESG Performances 89 GRI Standards Index 94
Chairman
Unite Efforts and Join Hands
About Innovation New Sustainable Development Green-driven Innovation and to Forge Development
Material Management Product-led Development Together
Company Profile 07 Innovation Pioneering the Green Diving Deep into Technological Empowering Employees' Growth 69
Aluminum Journey Innovation
Company Culture 09 Protecting Work Safety 79
ESG Governance 16 Striving for Excellent Quality 57
Honors & Awards 10 Facilitating Harmonious Social
Communications with Stakeholders 17 Providing Quality Services 60 Development
Materiality Issue Analysis 19 Practicing Sound
Management to Promote
Innovation New Material in Figures 20 Responsibility-Driven
Development
Improving Risk Prevention and Control
Capabilities 63
Pursuing Green Cycle to
Promote Green
Strengthening Business Ethics
Development 63
Construction
Strengthening Patent and Brand
Designing Green and Low-carbon Protection
Products
Stepping Up Information Security
Actively Responding to Climate Change 41 Efforts
Practicing Environmental Protection 43 Building a Sustainable Value Chain 65
Innovation New Material 2023 Environmental, Social and Governance Report
About the Report Feedback on the Report
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Shanghai Stock Exchange's website (http://www.sse.com.cn/ ). If you have any valuable suggestions on the Report or
Introduction
would like to access to other relevant information, please contact us through the following channels:
Email: zqb@innovationmetal.com
The Report is the first Environmental, Social and Governance report prepared and issued by Innovation New Material
Technology Co., Ltd. (hereinafter ''Innovation New Material'', ''the Company'' or ''We''). The Report focus on material
ESG topics of concern to stakeholders, and is intended to disclose the Company's strategies, practices and
performance in Environmental, Social and Governance (hereinafter ''ESG'') in an objective, just and transparent Tel: 010-66536198
manner to promote stakeholders to gain a more comprehensive understanding of Innovation New Material.
Address: No. 1808, Floor 18, Excel Centre, Wudinghou Street, Xicheng District, Beijing
Reporting Scope Index of Abbreviations for Company Members
The scope of the Report includes Innovation New Material and its subsidiaries. The statistical scope of data in the
Report has been marked therein and data is calculated in accordance with national regulations or international
Company abbreviation Full name of company
standards. Unless otherwise stated, the amounts in the Report are denominated in RMB.
Innovation New Material, the Company, we Innovation New Material Technology Co., Ltd.
Innovation Metal Shandong Innovation Metal Technology Co., Ltd.
Innovation Precision Shandong Innovation Precision Technology Co., Ltd.
Reporting Period Suzhou Chuangtai Suzhou Chuangtai Alloy Material Co., Ltd.
Shandong Sheet Materials Shandong InnovationCreative Sheet Materials Co., Ltd.
The information and data contained in the Report covers the period from 1 January 2023 to 31 December Yuanwang Electrical Technology Shandong Yuanwang Electrical Technology Co., Ltd.
has been extended forward and backward as appropriate. Shandong Chuang Yuan Renewable Resources Shandong Chuang Yuan Renewable Resources Co., Ltd.
Chuanghui New Material Shandong Chuanghui New Material Technology Co., Ltd.
Chuangfeng New Material Shandong Chuangfeng New Material Technology Co., Ltd.
Basis of Preparation
Innovation Beihai Shandong Innovation Beihai Co., Ltd.
Yunnan Innovation Yunnan Innovation Alloy Co., Ltd.
QingDao Li Wang QingDao Li Wang Precision Technology Co., Ltd.
The Report is prepared based on the Global Reporting Initiative Reporting Standards (GRI Standards), the
Inner Mongolia Innovation Inner Mongolia Innovation New Materials Co., Ltd.
Self-discipline Regulation of Listed Companies No. 1 - Standardized Operation by the Shanghai Stock
Exchange and the United Nations Sustainable Development Goals (UN SDGs). Inner Mongolia Lightweight Inner Mongolia Innovation Lightweight New Materials Co., Ltd.
Innovation New Material 2023 Environmental, Social and Governance Report
Message from the Chairman
A year of accelerating technological innovation and refining quality management.
We firmly believe that innovation is the persistent driver for the Company's development, and that quality is the
solid foundation of brand reputation. Centering around the core principles of technological innovation and high-
quality development, we have continuously improved our innovative capabilities and production efficiency. To
maintain a leading position in the fierce market competition, we have introduced and cultivated technical talents
while increasing investment in technological innovation and enhancing the level of intelligence in the production
process. We have been continuously strengthening our customer-centered philosophy and improving our quality
As time passes, opportunities are also constantly management system to ensure that every product and service meets or even exceeds customer expectations, by
emerging and evolving. The year 2023 witnessed the which we have established a good brand image in the market. Our commitment to innovation-driven and quality-
rapid progress of Innovation New Material following its first principles has injected strong momentum into the sustainable and healthy development of the Company and
listing on the capital market, and a year when the the entire industry, which manifest our well-founded confidence and enduring pursuit for the future development
results of our development are realized. Over the past of the industry.
year, we have adhered to the principles of sharing
future with our employees, growing together with our
customers, developing alongside our partners, and A year of strengthening corporate governance and forging an excellent brand.
progressing in sync with society. We have achieved
remarkable successes in low-carbon development,
product manufacturing, technological innovation, and We have a profound understanding that standardization is the cornerstone of the Company's steady development
market expansion, which laid a solid foundation for the and have invested substantial effort in it. We have always adhered to the principle of honest operation by
Company's long-term development. continuously strengthening internal control and risk management to ensure the rationality and compliance of
corporate decisions. We firmly uphold a fair and competitive market order with a focus to respect and protect
intellectual property rights, creating long-term value for shareholders and customers. We have established long-
term and stable cooperative relationships with our suppliers to jointly build a sustainable ecosystem along the
industrial chain, promoting the healthy development of the industry. In a complex and evolving market, we have
adhered to our original aspirations, operated with integrity, and pressed forward steadily, continuously creating
sustainable value for society.
A year of fulfilling social responsibilities and building a harmonious community.
Mr. Cui Lixin
As a company full of warmth, we have assimilated social responsibilities into our corporate culture. We recognize
Chairman of Innovation New Material the hard work of every employee and safeguard their workplace rights and interests while enabling their growth
and development, to create a working environment characterized by happiness and a sense of belonging.
Furthermore, we actively participate in social welfare undertakings to give back to society through public welfare
aid, charity donations, and other means. In doing so, we have promoted positive energy and brought warmth and
hope to society. We hold the firm belief that fulfilling corporate social responsibilities is our inescapable duty, which
A year of deepening commitment to green development and leading the low-carbon era. not only benefits employees but also serves as a sincere contribution to society, driving our sustained development.
Facing the severe challenges of the global climate change, we have been firmly committed to the path of green We will unswervingly advance ESG practices in our future development, with greater determination and investment in
development by building a comprehensive development system of green energy, green production, green promoting green development, fulfilling social responsibilities, and strengthening corporate governance to capture
emissions, green products, and green recycling, integrating the philosophy of green development throughout the the development trends of the new era and accurately seize strategic opportunities. We will continue to collaborate
entire lifecycle of our products. We have made significant progress in the construction of our industrial chain of with global partners, with a more open mindset for change and more solid advances for the future, to jointly explore
green aluminum during the year. Leveraging the unique advantages in resources of Yunnan and Inner Mongolia, we new paths for the Company's sustainable development. In this process, we will work closely with all sectors of society
have made full use of hydroelectric, wind and solar power aluminum to continue to expand our presence in the to anchor our goals and unite our efforts. We will stride forward on the journey of ''becoming an industry leader and
field of secondary aluminum. Additionally, we have boosted energy conservation and emission reduction in the building a century-old enterprise'' to create maximum value for shareholders, customers, employees, society, and
production process while increasing the proportion of renewable energy, which significantly reduced carbon other stakeholders, ushering in a more brilliant and glorious future!
emissions throughout the product lifecycle. By doing so, we have provided lightweight and environmentally
friendly aluminum alloy products to numerous industries domestically and abroad, contributing innovative
strength to the sustainable, green, and healthy development of the aluminum industry.
About Sustainable Pursuing Green Green-driven Practicing Sound Unite Efforts and
Innovation New Material 2023 Environmental, Social and Governance Report Innovation Development Cycle to Innovation and Management to Join Hands to
New Material Management Promote Green Product-led Promote Responsibility- Forge Development
Development Development Driven Development Together
About
Innovation New
Material
About Sustainable Pursuing Green Green-driven Practicing Sound Unite Efforts and
Innovation New Material 2023 Environmental, Social and Governance Report Innovation Development Cycle to Innovation and Management to Join Hands to
New Material Management Promote Green Product-led Promote Responsibility- Forge Development
Development Development Driven Development Together
Company Profile Milestones
chapter, as we solidified foundations for a century-old enterprise
Innovation New Material is a large-scale, modern and comprehensive enterprise mainly engaged in the production and Founded in 2007, Innovation Metal is a technology-based enterprise focusing on research,
operation of aluminum profiles for 3C consumer electronics, aluminum profiles for vehicle lightweighting, sheets and development, production, and processing, while providing comprehensive solutions to the
foils, aluminum rods and cables, aluminum alloy rods, structural components, etc. Positioned as one of the world's aluminum alloy processing sector. We pioneered a unique procurement model that ensures
largest production and research and development bases for aluminum alloy materials, the Company has maintained a liquid aluminum remains untouched by the ground. This innovative approach forged a
leading global market share in aluminum alloy rods for multiple consecutive years. The Company specialises in the strategic partnership with Weiqiao Pioneering Group, the world's largest privately-owned
research, development, production, and processing of aluminum alloys and their products, offering comprehensive electrolytic aluminum enterprise. This collaboration marked a significant milestone in our
solutions for the aluminum alloy processing industry. Its products are widely used in various fields such as 3C journey, as it was the first time we formally set the development goal of ''building a century-
consumer electronics, vehicle lightweighting, construction, and new energy. old enterprise.''
Innovation New Material has established 14 industrial parks across 4 provinces (autonomous regions) in China,
including Shandong, Jiangsu, Inner Mongolia, and Yunnan, as well as overseas locations in Vietnam and Mexico. With a 2013 - Fortifying diversified growth, we surpassed industry
total of 10,724 employees, the Company achieved a total production output of 4.7196 million tons in 2023, which benchmarks
involving 3.4093 million tons of rods, 87,800 tons of profiles, 551,500 tons of sheets and foils, 671,000 tons of aluminum
In 2013, we successfully tackled difficulties related to high-strength superconductivity in
rods and cables, and 23.1262 million structural components.
aluminum alloy cables. As such, during the 13th Five-Year Plan period, our products were
chosen by over 70% of the bidding winners for the national west-to-east power
transmission program.
Ranked 335th in the Ranked 169th in the List of Ranked 98th in the List of Top 2018 - Navigating the rapids and raising the sails, we
List of Top 500 Chinese Top 500 Chinese 500 Chinese Private established a global presence with vibrant industrial growth
Enterprises Manufacturing Enterprises Manufacturing Enterprises
In 2018, we developed as one of the core suppliers to the world's largest 3C consumer
electronics research, development, and manufacturing enterprises. Assuming a pivotal role,
we took on the responsibility of developing, prototyping, and industrializing aluminum
our high-quality customers in the 3C consumer electronics sector and beyond.
Ranked No. 1 globally in
Ranked 149th in the List of Ranked 16th in the List of Top round aluminum alloy
Top 500 Chinese Private 100 Shandong Private ingot market share
Enterprises Enterprises
set global benchmarks in technical excellence
Since 2021, we have embarked on a journey to supply aluminum alloy materials in bulk to
responsive to the demands of the high-end market. Throughout this journey, we have
According to statistics provided by the China Nonferrous Metals Fabrication Industry Association, consistently positioned ourselves at the forefront of industry technology.
innovation metal's products stand at the forefront of the industry in various aspects, such as
energy consumption per unit product, emissions of pollutants per unit product, raw material
consumption per unit product, solid waste utilization, and carbon emissions per unit product. This 2022 - ''Dream-Pursuing Plan'' remained unwavering, as we
comprehensive commitment to green development places us within the top 10% of the industry.
shaped the future through innovation
The Company's significant asset restructuring was approved by the China Securities
Batch of Manufacturing successfully listed on the main board of the Shanghai Stock Exchange, with the stock
Ranked No. 3 globally Individual Champions abbreviation ''Innovation New Material'' and stock code ''600361''. By leveraging the capital
and No. 1 nationally in (Aluminum-Magnesium- market, we have achieved continuous optimization of our capital structure and sustained
enhancement of our development momentum.
profiles market share
About Sustainable Pursuing Green Green-driven Practicing Sound Unite Efforts and
Innovation New Material 2023 Environmental, Social and Governance Report Innovation Development Cycle to Innovation and Management to Join Hands to
New Material Management Promote Green Product-led Promote Responsibility- Forge Development
Development Development Driven Development Together
Company Culture Honors & Awards
Innovation New Material has always practiced the sustainable development strategy and is recognized by government
and institutions in various aspects. In 2023, the Company and its subsidiaries received a number of honors & awards,
including but not limited to:
Enterprise
Philosophy
A beautiful future Date Name of Honors & Awards
through innovation
In December
Innovation New Material joined the Aluminum Stewardship Initiative (ASI).
Enterprise
In December
Ethos 2023
Innovation New Material was nominated for the Shandong Provincial Governor Quality Award.
Pioneering and
innovating through Yunnan Innovation Alloy Co., Ltd.
a truthful and
pragmatic
Enterprise was shortlisted as No. 29th in the ''2023 Top 100 Yunnan Enterprises'' list, rising by 34 positions from the
Mission
•
performance previous year;
In December
Propelling industry was ranked 15th in the ''2023 Top 100 Yunnan Manufacturing Enterprises'' list, rising by 18 positions from
progress through
•
the previous year;
scientific and
technological • was shortlisted 8th in the ''2023 Top 100 Yunnan Private Enterprises'' list, rising by 23 positions from the
advancements previous year.
Enterprise
The Code for Control of Wastewater , Waste Gas and Scrap Waste from Aluminum and Aluminum Alloy
Objective Melting and Casting led and prepared by Innovation Metal and Suzhou Chuangtai Alloy Materials Co., Ltd.
Aspiring to industry won the first prize of the Excellence Award for Technical Standards awarded by the National Nonferrous
leadership and In November Metals Standardization Technical Committee.
building a century- 2023
old enterprise Innovation Metal participated in preparing the Aluminum Alloy Ingots for Aviation Products, which won the
second prize of the Excellence Award for Technical Standards awarded by the National Nonferrous Metals
Standardization Technical Committee.
Business
Philosophy
Customer
In November
satisfaction is the 2023
Innovation Metal was awarded the title of ''National Green Factory''.
key driving force for
a wider presence
In October Innovation Metal was funded by 2023 Shandong Provincial Key Research and Development Programme
Innovation Metal
ranked 149th in the List of Top 500 Chinese Private Enterprises for 2023, rising by 23 positions compared
In September
•
to the previous year.
• ranked 98th in the ''List of Top 500 Chinese Private Manufacturing Enterprises in 2023'', rising by 7
positions compared to the previous year.
In September
Innovation Metal was successfully selected into the ''Provincial Quality Benchmarking''.
About Sustainable Pursuing Green Green-driven Practicing Sound Unite Efforts and
Innovation New Material 2023 Environmental, Social and Governance Report Innovation Development Cycle to Innovation and Management to Join Hands to
New Material Management Promote Green Product-led Promote Responsibility- Forge Development
Development Development Driven Development Together
Honors & Awards
Date Name of Honors & Awards
Innovation Precision's project - ''lightweight alloy material application in rail transit with an annual output of
In September
Projects.
In September Yunnan Innovation Alloy Co., Ltd. was ranked as the 19th of the Top 100 Non-Public Enterprises in Yunnan
In August
our Company ranked 23rd in the List of China's top 50 nonferrous firms in 2022, advancing by two positions.
In August Innovation Metal was shortlisted in the ''Top 100 Shandong Private Enterprises'' list for the 11th consecutive
In August Innovation Precision and Yuanwang Electric Power were awarded the Shandong provincial-level ''Green
In August the national standard GB/T 13586-2021 secondary aluminum prepared by the Company was approved as
In June Innovation Metal and Innovation Precision were selected into the ''Cultivation List of Shandong New Material
In June Innovation Precision was accredited in the cultivation list of first batch of ''Morning Star Factories'' for the
In June Innovation Metal was awarded as the ''Outstanding Unit for Blood Donation Organisation'' in Shandong
In June Innovation Precision was certified as Shandong ''One Enterprise, One Technology'' R&D Centre, and Binzhou
In February Innovation Metal was awarded the title of ''National Advanced Private Enterprise in Employment and Social
The ''Shandong Engineering Research Centre for New Aluminum Alloy Materials with Ultra-strength and High
In February
Toughness'' was approved the optimization and integration by the Shandong Development and Reform
Commission.
In January
Innovation Metal was honored as ''The Most Innovative Enterprise in 2022''.
About Sustainable Pursuing Green Green-driven Practicing Sound Unite Efforts and
Innovation New Material 2023 Environmental, Social and Governance Report Innovation Development Cycle to Innovation and Management to Join Hands to
New Material Management Promote Green Product-led Promote Responsibility- Forge Development
Development Development Driven Development Together
Sustainable
Development
Management
About Sustainable Pursuing Green Green-driven Practicing Sound Unite Efforts and
Innovation New Material 2023 Environmental, Social and Governance Report Innovation Development Cycle to Innovation and Management to Join Hands to
New Material Management Promote Green Product-led Promote Responsibility- Forge Development
Development Development Driven Development Together
Innovation Pioneering the Green ESG governance
Aluminum Journey
Innovation New Material values ESG governance highly. With the goal of realizing high-quality sustainable
development of the Company, we comprehensively integrate ESG concepts into the daily management system of the
enterprise, respond to the concerns of customers, employees, investors and other stakeholders about the ESG
performance of the enterprise, and continuously create value for all stakeholders.
As global climate change becomes increasingly prominent and the national ''Carbon Peaking and Carbon Neutrality''
ESG governance structure
goals make steady progress, the aluminum industry is facing unprecedented challenges in green transformation for its
massive energy consumption and high carbon emissions. This transformation serves as an inevitable trend for industry
development as well as a profound response to environmental protection and sustainable development. Enterprises
in the industry are being driven by the era with an urgent need to accelerate technological innovation to promote
industrial upgrading and facilitate profound transformation. In order to better promote ESG governance, Innovation New Material has established an ESG management system with
In this transformation, secondary aluminum, as a representative of green and circular economy, is receiving increasing the Board of Directors as the supreme governing authority, the Strategy and ESG Committee under the Board of
attention. The comprehensive energy consumption of secondary aluminum is only 5% of that of primary aluminum. Directors as the specialized committee, the ESG Working Group as the coordinating authority for organizing the ESG
Besides, the carbon footprint of primary aluminum is 8.6 tons of CO2 per ton of aluminum, with that of secondary work of its subsidiaries, and its subsidiaries as the main executing agencies, thus laying the foundation for the
aluminum being only 0.5, which represents a mere 5.8% of the greenhouse gas emissions of primary aluminum. This management of ESG related matters of the Company.
means that for every additional ton of secondary aluminum utilized, one ton of primary aluminum production can be
avoided, thereby reducing 94.2% of carbon emissions and yielding significant social benefits. The tremendous
potential and advantages of the secondary aluminum industry in energy conservation and environmental protection
are crucial for the healthy, stable, and long-term development of the aluminum market.
As a leading enterprise in the aluminum alloy sector, Innovation New Material has always adhered to the philosophy of
green development. The Company is fully committed to building a green lifecycle for its products and leading the
industry in embarking on a green aluminum journey through developing high-end flagship green products, boosting
As the highest decision-making authority for ESG work, it is responsible for the
investment in carbon reduction, and establishing close industry-wide cooperation.
•
The Company's ESG strategy and reporting. It regularly listens to and reviews reports
from the Strategy and ESG Committee on the ESG work progress, and provides
Board of guidance on the ESG work guidelines.
Developing high-end flagship green products is the essential core of green development. Innovation Directors
New Material perceives innovation as the key to green transformation. The Company engages in deep ''industry- • Serves as a specialized committee on ESG management under the
academia-research'' cooperation, initiating collaborative efforts to tackle technical challenges in the industry Board of Directors, and reports regularly to the Board of Directors on
with renowned universities and research institutions both domestically and internationally. As a result, the major ESG matters;
Company has successfully developed a series of high-performance aluminum alloy products with low energy • Researches and proposes ESG strategies, policies and work planning,
consumption and emissions. These products have not only met the market demand for high-quality aluminum and considers ESG-related major risk response programs, ESG reports
alloys but also effectively reduced the energy consumption and carbon emissions during production. The Strategy and ESG and other public disclosure of significant ESG information;
launch of these high-end flagship green products have enhanced the Company's market competitiveness while Committee • Oversees the Company's commitment and performance to address key
providing strong support for the industry's transformation. issues such as climate change and other ESG related matters.
Boosting investment in carbon reduction is an important means to achieve green development. The • Researches and drafts ESG strategies, action plans and
management systems, and organizes the preparation of
Company has entered the secondary aluminum market and made proactive investments leveraging upstream
ESG reports and other ESG disclosures;
high-quality and green raw materials to expedite the entry of various downstream casting and extrusion
aluminum alloy products into the fields of green and clean energy, thereby building a green lifecycle for its • Focuses on ESG related risks and issues in daily
management, responsible for liaison and communication
products. On this basis, the Company continues to expand its investment and construction in secondary
with consulting and rating agencies and ESG management
aluminum alloy projects, sparing no effort to promote the green development of the aluminum industry chain.
ESG Working Group training;
• Coordinates and promotes the implementation of ESG
related matters, submits the information required for
Establishing close industry-wide cooperation is a crucial approach to drive green development. The decision-making, and fully fulfils the daily ESG
Company leverages its advantages to establish close partnerships with upstream and downstream enterprises. management duties.
Through deep cooperation with upstream suppliers, the Company ensures the stable supply of high-quality,
green raw materials, providing powerful assurances for green production. The Company also actively
collaborates with downstream customers to jointly develop and promote new products that meet the market's
demand for green aluminum materials. Simultaneously, the Company engages in vigorous exchanges and
cooperation with peer enterprises to jointly promote the green transformation and industrial upgrading of the
aluminum industry.
About Sustainable Pursuing Green Green-driven Practicing Sound Unite Efforts and
Innovation New Material 2023 Environmental, Social and Governance Report Innovation Development Cycle to Innovation and Management to Join Hands to
New Material Management Promote Green Product-led Promote Responsibility- Forge Development
Development Development Driven Development Together
Communications with Stakeholders
Communication
Expectations and demands
Stakeholders
channels
Innovation New Material actively carries out stakeholder communications and responds to the expectations of Staff council,
different stakeholders. Considering the characteristics of the Company's daily operations and business scope, we have
Symposium,
fully identified stakeholders and established a variety of communication mechanisms to respond to the expectations Employee rights and diversity,
and demands of stakeholders, to jointly build a good cooperative relationship, and to strive to achieve win-win Employee feedback mailbox,
Professional health and safety,
cooperation and maximize value. Employees Internal office software,
Talent training and development,
Employee satisfaction survey,
Communication Compensation and benefits
Stakeholders Expectations and demands
channels Training,
Internal publication
Shareholders' meeting,
R&D & Innovation,
Annual/Interim reports,
Product management,
Corporate
Shareholder and investors announcements/Press Customer service,
Product management,
releases,
Responding to climate change,
Business communication, Customer service,
Field trips,
Carbon emission management
Client feedback, Circular economy and waste management,
Research and questionnaire
Clients
Client satisfaction survey, Carbon emissions management,
Social media Responding to climate change,
Energy management
Regular meetings of regulatory
authorities, Business ethics and compliance,
Seminars, Water resource management,
Government and regulators Regular information reporting, Occupational health and safety, Bidding and procurement,
Site visits, Sustainable supply chain,
Public interest initiatives, Access and evaluation,
High-level meetings, Partners Product management,
Biodiversity conservation Field trips,
Policy advisory Occupational health and safety manufacturing
Seminars and forums
ESG governance,
Reporting,
Product management, Public welfare activities,
High-level meeting, Actions for the public good,
R&D & Innovation, Community activities,
The Board of Directors and R&D & Innovation,
Site visit,
Corporate Management Business ethics & compliance, Community and the public Press releases,
The Board of Directors, Responding to climate change,
Sustainable supply chain, Social media,
Regular questioning Carbon emissions management
Energy management Seminars
About Sustainable Pursuing Green Green-driven Practicing Sound Unite Efforts and
Innovation New Material 2023 Environmental, Social and Governance Report Innovation Development Cycle to Innovation and Management to Join Hands to
New Material Management Promote Green Product-led Promote Responsibility- Forge Development
Development Development Driven Development Together
Materiality issue analysis Innovation New Material in Figures
During the year, Innovation New Material analyzed the Company's internal and external sustainable development
Green Development
background based on the Company's core business and future development plans, combined with factors such as
industry ESG related policies and standards, and capital market focus. Based on the results of the analysis, the
Company identified a total of 18 material ESG issues.
Low Carbon Materials Use
In order to fully understand the feedback from internal and external stakeholders on the materiality of the Company's The total amount of electrolytic liquid aluminum purchased by the Company reached 3.42 million
ESG issues, Innovation New Material conducted a survey on the materiality of the issues to each stakeholder using a
?
combination of online questionnaires and offline interviews. In response to the feedback from each stakeholder, the
tons, accounting for 76% of the total raw electrolytic aluminum materials.
Company conducted in-depth analyses and formed the following matrix of materiality issue, in order to better respond The Company purchased 1.4406 million tons of green-power aluminum and secondary aluminum,
to the needs of the stakeholders.
?
accounting for 32% of the total raw electrolytic aluminum materials, with 426,700 tons of green-
power aluminum purchased.
Innovation New Material 2023 Matrix of Materiality Issues
Secondary Aluminum Use and Development
? Product management
The Company comprehensively recycled 1.0139 million tons of secondary aluminum, consisting
? Sustainable supply
?
? Business ethics & chain of 698,900 tons recovered from external sources and 315,000 tons reused from the Company's
? Customer service compliance own production lines.
? R&D & Innovation
? The Company launched 7 projects for secondary aluminum, with plans to increase the annual production
capacity of secondary aluminum to 2.05 million tons.
Impact on external stakeholders
? Climate change response
? Water resources management
? The Company has achieved 100% maintenance of quality level for the use of secondary aluminum.
? Professional health and safety
? Circular economy and waste ? The Company has participated in the formulation of 5 national and industry standards for secondary
management aluminum.
? Employee rights and diversity
? Resource / Energy
management
? Exhaust emission Carbon Footprint and Environmental System Certification
? Talent training & development ? Carbon emissions
management
management The Company has obtained carbon footprint certifications for 19 products.
? ESG governance
?
? 2 subsidiaries have obtained national-level green factory certification, with another 2 obtaining provincial-
level green factory certification. On the municipal level, there are 2 subsidiaries with green factory
? Public welfare actions ? Compensation certification. Besides, 1 subsidiary has obtained municipal-level green supply chain enterprise certification.
& Benefits
? The proportion of the Company's subsidiaries having obtained ISO 14001 environmental management
? Biodiversity system certification reaches 100%.
conservation
? 9 subsidiaries have obtained ISO 14064 greenhouse gas emissions accounting certification.
Impact on Innovation New Material
?
? 4 subsidiaries have obtained ISO 50001 energy management system certification.
Environmental Issues Social Issues Governance
Issues
About Sustainable Pursuing Green Green-driven Practicing Sound Unite Efforts and
Innovation New Material 2023 Environmental, Social and Governance Report Innovation Development Cycle to Innovation and Management to Join Hands to
New Material Management Promote Green Product-led Promote Responsibility- Forge Development
Development Development Driven Development Together
Innovation New Material in Figures
Green Development People-centered Philosophy
Environmental Technology Transformation Employment
? The Company has invested 58.9298 million yuan in environmental protection. ? The total number of employees is 10,724, the proportion of female employees accounts for 31.4%.
? Through waste heat recovery technology, the Company has generated 35.64 million kWh of electricity, ? The employee satisfaction survey covers 92% of employees, with a satisfaction rate of 90%.
saving 10,800 tons of standard coal annually, equivalent to reducing carbon dioxide emissions by Employee Safety
approximately 28,000 tons per year.
? 8 of the Company's subsidiaries have obtained ISO 45001 Occupational Health and Safety
Through clean technology upgrades, the Company can save 1.73 million cubic meters of natural gas Management System certification, with the number of employees holding certified safety engineer
qualifications exceeding 40.
?
annually, reducing carbon emissions by approximately 3,700 tons.
? The participation rate for employee safety training is 100%, with 100% of participants completing the
Low Emission of Waste Gases safety education and training. Besides, the completion rate for emergency drills is 100%.
? The emissions of particulate matter, sulfur dioxide, and nitrogen oxides at the Company's operation sites ? There have been no cases of work-related fatal accidents, severe injuries, or occurrences of occupational
in Binzhou are far below the Shandong provincial standards and national standards. The emission diseases.
concentration of particulate matter and sulfur dioxide are both lower than the 10% of the national
Employee Development and Care
standard, while nitrogen oxide emissions are 50% lower than the national standard.
In 2023, the Company organized more than 50 employee activities and 40 employee skill competitions.
The effective collection rate of waste gas reaches 99.5%,
?
In 2023, 98 vehicles were issued to ''loyal teams''.
?
Dust removal efficiency exceeded 99.7%,
?
At present, the Company has a total of 2,598 dormitories in various parks, of which 344 dormitories
Purification efficiency of oil mist and flue gas exceeds 95%.
?
will be newly built and put into use in 2023.
Product Quality Responsible Operations
? The Company has obtained 445 patents, including 44 invention patents and 401 utility model patents. There was no incident of violation against laws and regulations in 2023.
?
In 2023, the Company obtained
In 2023, the Company conducted 18 sessions of training in laws and regulations, with a total of 1,454
?
and 92 are utility model patents.
?
attendances.
The customer satisfaction rate exceeded 90%.
?
certification. ?
? 8 of the Company's subsidiaries have obtained the IATF 16949 Automotive Industry Quality
In 2023, the Company held 3 supplier symposiums, inviting a total of 35 suppliers.
Management System certification.
?
About Sustainable Pursuing Green Green-driven Practicing Sound Unite Efforts and
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Pursuing Green
Cycle to
Promote Green
Development
As one of the largest global aluminum alloy material suppliers,
Innovation New Material is well aware that we bear a greater
responsibility in the current era of global climate change and
sustainable development. Practically implementing the green
development philosophy, the Company is committed to building
an industry-leading green aluminum industry chain. We
vigorously develop green-power aluminum, liquid aluminum and
secondary aluminum industries from the raw material side. We
also make full and efficient use of hydroelectric, wind,
photovoltaic power and other clean energy sources during
production. By doing so, we continuously provide lightweight,
low-carbon and environment-friendly aluminum alloy products to
domestic and overseas sectors such as photovoltaics, 3C
electronics and auto manufacturing, thus contributing to the
sustainable development of the aluminum industry and a low-
carbon society.
This chapter responds to the UN SDGs
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Aluminum Industry Chain Building the full-process ''green aluminum industry chain'' for ''Carbon Peaking and Carbon
Case
Neutrality'' goals
While strictly adhering to the green development philosophy, Suzhou Chuangtai Alloy Materials Co., Ltd.
(''Suzhou Chuangtai'') puts efforts in high-quality and green development and upholds the philosophy of green,
low-carbon and circular development throughout the product life cycle. In 2023, Suzhou Chuangtai took several
Procurement of Casting Aluminum alloy Application measures for energy conservation and emission reduction, advancing the rational allocation and
raw materials production products areas comprehensive utilisation of energy and resources in the plant. The Company intends to build the ''green
aluminum'' industry chain throughout the processes covering aluminum recycling, casting, extruding and CNC
finishing to facilitate the national ''Carbon Peaking and Carbon Neutrality'' strategies. This year, Suzhou
Chuangtai was successfully admitted to the national green manufacturing list.
Use of clean
energy
Cast rolling Building and
Green Bar
Electrolytic structure
power aluminum
Hot rolling PV
aluminum liquid
Electronics
Profile and power
Cold rolling 3C
Non-green electronics
Aluminum Aluminu Structural Consumer
power Forging durables National ''green factory'' for Suzhou Chuangtai
ingot m alloy component
aluminum
Machinery
Designing Green and Low-carbon
Foil rolling
Sheet and and
foil equipment
Secondary Extruding
Products
aluminum Aluminum
Lightweight
rod and Transportation
Smelting,etc. automobile
cable
Efficient use of Packaging
energy container
Innovation New Material is committed to the green and low-carbon
Others
development philosophy, and strives to develop a systematic
aluminum alloy industry that centers on circular economy, enabling
the green and circular development of the whole industry chain.
Based on the actual processes, the Company actively seeks and has
realized the large-scale use of green aluminum materials, the low-
carbon and clean production and the systematic recycling of
aluminum alloy products, driving the development of the secondary We have obtained carbon footprint
aluminum industry.
Innovation New Material makes concrete efforts to promote the certification for
accounting and certification of product carbon footprint,
cylindrical ingots of secondary aluminum.
continuously promoting the ''cradle-to-gate'' carbon footprint
certification, in an effort to track the carbon footprint in the whole
product life cycle. By the end of 2023, the Company has obtained the
obtained the carbon emissions certificate issued by the China Quality Certification Centre (CQC). We have obtained
carbon footprint certification for 19 products, including 2 cylindrical ingots of secondary aluminum.
By adopting advanced production technology and energy-saving and consumption reduction control measures,
combining the high-quality green power aluminum provided by the upstream of the supply chain and the innovative
industrial cooperation model, as well as strict carbon emission management, the Company effectively reduces the
carbon footprint of its products and provides more low-carbon products for the industrial chain.
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Meanwhile, to further promote and reduce product carbon footprints, the Company leverages renewable energy to
Innovation Metal —— Cylindrical aluminum alloy ingot launch high-end flagship green products. Innovation Yunnan has capitalized on the ample local hydropower aluminum
resources and set carbon footprint objectives for cylindrical aluminum alloy ingots:
CO2 equivalent CO2 equivalent
carbon footprint Since 2021 By the end of 2025 By the end of 2030
reduced by
We have achieved an The carbon footprint for The carbon footprint for
yearly carbon footprint every kilogram of every kilogram of
reduction of 0.05 cylindrical aluminum cylindrical aluminum
kilograms of CO2 alloy ingots will have alloy ingots will have
High-content
Traditional process Substituted with secondary aluminum equivalent per kilogram dropped to 5.64 dropped to 5.39
of cylindrical aluminum kilograms of CO2 kilograms of CO2
alloy ingots. equivalent. equivalent.
Suzhou Chuangtai —— Cylindrical aluminum alloy ingot
Optimization of raw materials structure
CO2 equivalent CO2 equivalent
reduced by
The main upstream raw materials of Innovation New Material's products are electrolytic liquid aluminum, aluminum
Substituted with aluminum encouraging the use of secondary aluminum, and increasing the proportions of green power aluminum and secondary
aluminum
aluminum in raw materials, the Company has avoided the increase in carbon footprint within the product life cycle
while raw materials increase, and provided more low-carbon products to downstream customers to boost the
transformation of the industry chain. This year, the Company used 1.4406 million tons of green-power aluminum and
secondary aluminum, comprising 32% of the total raw electrolytic aluminum materials.
Innovation Precision —— Profile for 3C electronics
The Company used
CO2 equivalent
CO2 equivalent
carbon footprint 1.4406 million tons Comprising of
reduced by
aluminum Substituted with aluminum
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Developing green-power aluminum presence ''Innovation Model'': An example diagram of upstream
and downstream collaboration
Innovation New Material has made preliminary efforts in areas such as Inner Mongolia and Yunnan to make full use of
local hydroelectric, wind and photovoltaic power for aluminum production. In addition, the Company has established
in-depth cooperation with electrolytic aluminum suppliers using clean energy to jointly reduce the carbon emissions
throughout the product life cycle. By utilizing the high-quality green-power aluminum resources of Shandong
Innovation Group Co., Ltd. (hereinafter referred to as ''Innovation Group'') in Inner Mongolia, the Company
continuously increases the proportion of green-power aluminum in its raw materials, which will reach 50% by the end
of 2026. The Company also leverages hydropower aluminum resources to actively develop the hydropower aluminum Aluminum Aluminum Secondary Value High-end
industry and set relevant production capacity goals. Innovation Yunnan plans to boost the production capacity of liquid ingot aluminum technologies alloy
cylindrical aluminum alloy bars using hydropower aluminum to 600,000 tons and 900,000 tons by the end of 2025 and
Intending it to reach 50% by the end of 2026. Short-term transportation Deep processing
Innovation Yunnan plans to boost the production capacity of cylindrical aluminum alloy
bars using hydropower aluminum to 600,000 tons and 900,000 tons
by the end of 2025 and 2030 respectively.
This year, the Company purchased 425.2 thousand tons of green-power aluminum. Shorten the
production chain
Optimizing the industrial cooperation model Aluminum Aluminum Aluminum Ordinary
liquid ingot liquid ingot
Innovation New Material actively promotes the green transformation and takes full advantage of the aluminum
industry cluster, establishing an ''Innovation Model'' based on short-distance transportation and deep processing in
virtue of co-location with electrolytic aluminum enterprises. Additionally, with aluminum ingots having been replaced
with electrolytic liquid aluminum during production, the coagulation and casting process of electrolytic liquid
aluminum is avoided, reducing carbon emissions in raw material selection. Meanwhile, the short-distance
transportation has substantially cut the carbon emissions from the transport of electrolytic aluminum and reduced the Ingot Transportation Remelting Casting processing
carbon footprint of the products. This year, the Company purchased 3.42 million tons of electrolytic liquid aluminum in
total, accounting for 76% of the total electrolytic aluminum.
Innovation New Material also develops the aluminum industry in Yunnan and maintains the cooperation with
Shandong Weiqiao Pioneering Group Co., Ltd. By giving full play to advantages of upstream and downstream industry
clusters, the Company has expanded production capacity and reduced the carbon emissions in production and
operation to drive green development of the industry.
million tons of
electrolytic liquid aluminum
of the in total
total electrolytic
aluminum
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Expanding the application of secondary aluminum Recycling market waste
The Company has ample sources of market waste and actively promotes its recycling to efficiently use
As a leader in secondary aluminum, Innovation New
The Company comprehensively recycled 1.0139 limited natural resources. We seek to recycle market waste from downstream customers and other third
Material recovers secondary aluminum through industrial
million tons of secondary aluminum , with the rest of: parties to replace electrolytic aluminum as raw materials for casting. In addition, we constantly increase our
leftover materials from downstream customers and waste
recycling efforts.
from external markets. The Company has maintained and
advanced the quality level of the secondary aluminum
using advanced industrial production technologies and
its own production lines recycling channels by accelerating the layout and building of domestic recycling stations. We have formed a
equipment. In addition, through the persistent R&D and
recycling team for secondary aluminum, implementing a point-to-point recycling model in major raw
application of technologies, we have been able to
material bases such as Shanghai, Suzhou, Guangdong and Chongqing, in an effort to enable the accurate
manufacture rods, profiles and structural components in
processes such as casting, extruding and finishing with
recovered secondary aluminum, enabling the wide use of tons were
secondary aluminum in 3C electronics, lightweight recovered
automobiles, new energy industry, etc. to accelerate the from
circulation of secondary aluminum and boost its economic external
value. This year, the Company comprehensively recycled
sources
the rest of 315,000 tons reused from its own production
lines. Additionally, secondary aluminum accounted for To promote sustainable development, Suzhou Chuangtai actively purchased waste aluminum profiles and
customers, while specifying that the proportion of secondary aluminum used in some product types must be
By the end of 2023, Innovation New Material has also obtained the SCS Global Services and Underwriters Laboratories 100%. In the meantime, the Company plans to make recycled materials account for 70% of raw materials across
(UL) Certification for some product types. all lines by 2025, with the percentage being 100% for secondary aluminum lines.
Reusing aluminum from the Company's production lines
Innovation New Materials continues to promote circular economy and actively carry out the recycling of
waste aluminum from its own products. For waste materials such as rod heads, rod tails, scraps, and
trimmed edges generated during the production process, the Company has established a scientific and
efficient recycling process. Through continuous technological innovation and process optimization, the
Company ensures that they are reused to the maximum extent, mitigating environmental pollution. This year,
the Company reused 315,000 tons of aluminum from its own production lines.
Recycling industrial leftover materials
As the upstream enterprise of the value chain, Innovation New Material has signed strategic cooperation
agreements with downstream customers to define the roles of the parties involved in aluminum product
recovery and promote resource recycling. This year, in the procurement contract with downstream
customers, Inner Mongolia Lightweight specified the proportion of secondary aluminum used in the raw
materials as well as the requirements for the recycling of industrial leftover materials, in an effort to jointly
create and expand secondary aluminum channels.
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Carbon reduction throughout production Promoting the production of high-quality secondary aluminum for circular development of
processes
Case the value chain
This year, Shandong Chuang Yuan Renewable Resources Co., Ltd. successfully put its first product line of the
Innovation New Material promotes the green and low-carbon transformation through various measures. Resource 500,000-ton high-quality secondary aluminum project into operation. Relying on imported production
equipment with high efficiency and low energy consumption as well as other advanced energy-saving
efficiency has been enhanced by actively developing secondary aluminum alloy lines, continuously improving the
technologies, the project can realise the minimum consumption of energy and lowest carbon emissions during
energy management system, increasing the proportion of clean energy and vigorously upgrading energy-conserving
production. The production process of cylindrical aluminum alloy ingots is further optimized to maximize
technologies. This year, 9 subsidiaries obtained the ISO 14064 greenhouse gas accounting certification. resource utilization and production efficiency. Advanced imported equipment such as paint removing furnaces
run automatically and enable ultra-low or even zero emissions. Waste gas generated during operation can be
used for waste heat recovery and reused for power generation. Every effort is made to minimize resource waste
and environmental pollution. The success of the project has advanced the green development of the aluminum
alloy industry chain, promoting sustainable development of the whole industry chain and boosting the
development of the ''hub of global high-end aluminum bases''.
certification and ISO 14067 carbon footprint of products certification.
Secondary aluminum alloy projects
Innovation New Material vigorously develops the secondary aluminum industry and continues to promote the green Secondary aluminum alloy production line
development of the aluminum industry chain with a strong sense of social responsibility. The Company has launched 7
secondary aluminum projects in total and plans to boost the annual secondary aluminum production capacity to 2.05 Quality level maintenance of secondary aluminum
million tons. At present, we have put 2 high-quality secondary aluminum alloy projects into operation with annual
production reaching 600,000 tons. The Company focuses on maintaining the quality level of secondary aluminum and works with downstream
customers to ensure the stability and reliability of the feedstock. In addition, we convert the secondary
aluminum containing various impurities into the alloyed product with composition and performance within
specifications through strict control processes. By introducing state-of-the-art production equipment and
processes to the production line, the Company actively makes proactive efforts to recover secondary
The Company has launched 7 secondary aluminum projects in total and plans to boost aluminum and achieve 100% maintenance of quality level for reuse. With our superior expertise in front-end
processes as well as core technologies to purify high-quality aluminum melt and remove impurities in
the annual secondary aluminum production capacity to 2.05 million tons.
secondary aluminum, the Company can upgrade the quality of secondary aluminum by effectively
controlling its chemical composition.
Working with a renowned technology company on the quality level maintenance of 3C
Case electronics for recycling
The Company has been working with a renowned technology
company since 2017 to recover and reuse the secondary aluminum in
a closed loop, leading the maintenance and upgrade of the quality
level of secondary aluminum. The Company has formed a mature
technology system in terms of secondary aluminum screening,
decontamination, impurity removal and purification, and alloying,
which has been applied to all products. This system can maintain and Currently, the Company has
even upgrade the quality of secondary aluminum by keeping
consistent product performance, maximizing alloy properties,
achieved
effectively removing impurities and ensuring the purity and
uniformity among secondary aluminum products. Currently, the maintenance of secondary
Company has achieved 100% quality level maintenance of secondary aluminum for use. 32
aluminum for use and become a domestic leader in manufacturing
and utilizing secondary aluminum.
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Green energy transformation Optimising the energy structure
The Company continues to optimize its energy structure to promote the construction of new energy projects
Innovation New Material contributes to the national ''Carbon Peaking and Carbon Neutrality'' strategies by vigorously
and practice the ''dual carbon'' philosophy. The Company vigorously develops photovoltaic power projects
promoting the green transformation and striding towards green and high-quality development. We strive to reduce the
to save energy and reduce emissions. Consequently, we have reduced production costs and boosted the use
consumption of traditional energy in production and operation on all fronts to gradually increase the usage of clean
of green energy, achieving economic, ecological, and social benefits. This year, the Company has completed
energy and further enhance our production and operation efficiency.
the installation and grid-connected power generation of 22.58 MW of photovoltaic equipment in Shandong
Province, which is expected to reduce approximately 13,521 tons of carbon dioxide emissions annually.
Energy management system
To carry out energy management systematically and efficiently, the Company has comprehensively planned,
This year, the Company has completed the installation and grid-connected power
implemented, inspected and improved energy management. The Company scientifically monitors the whole
process of energy management to effectively control energy consumption and improve energy utilization
generation of
which is expected to reduce approximately 13,521 tons of carbon dioxide
efficiency. According to laws and standards such as the Energy Conservation Law of the People's Republic of
China, ISO 50001 Energy Management System and RB/T 117-2014 Energy Management Systems Certification
Requirements for Nonferrous Industry, the Company has taken into account the actual daily operation of the
Company to establish a three-level management system including the Company, departments and teams. emissions annually.
An energy management leadership group and office have been established, with the Innovation First Industrial Park's distributed photovoltaic power generation project has been
deputy general manager as the team leader. They are responsible for formulating energy successfully connected to the grid.
policies and operating guidelines to clearly define and communicate the scope of
The Company has signed a cooperation agreement
At the responsibility and authority related to energy management within the Company.
with a third party for the rooftop distributed
Company Meanwhile, they will develop guidelines and methods to ensure effective control and
photovoltaic power station project and successfully
level operation of the energy management system and regularly report the work progress to
connected the photovoltaic power station to the grid
the top management.
in 2023. All the electricity generated by the project will
be supplied to the Company for energy conservation
and emission reduction.
An energy management team has been established with members from numerous
departments to carry out energy management policies. The team is also asked to
establish, implement, maintain, and continuously improve the energy management Innovation Metal's distributed photovoltaic power generation project has been successfully
system in accordance with standards and requirements to plan effective energy connected to the grid.
At the
departmental management activities. In addition, the team is in charge of monitoring energy This year, the Fourth Park of Innovation Metal, the
level performance and evaluating compliance issues to help all employees enhance their First Park of Innovation Board Material, the Park of
awareness of energy policies and goals and regularly report to the Company level; Chuanghui New Material, and the Park of Yuanwang
Electrotechnics have been integrated into the grid,
with a total installed capacity of 22.58 MW.
Energy management specialists are responsible for daily energy management and the
At the continuous, effective implementation of energy management within the enterprise.
team level
Suzhou Chuangtai's photovoltaic power generation project has been successfully connected
to the grid.
Suzhou Chuangtai plans to use the 120,000-square-
metre roof in the factory to construct a 12 MW
photovoltaic power generation facility with an anuual
This year， 4 subsidiaries of the Company have obtained the ISO 50001 capacity of 12 million kWh, which can supply about
Energy Management System certification.
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Carrying out the construction of the photovoltaic factory to create a low-carbon
Case supplier image Case Using regenerative heating combustion furnaces to reduce natural gas consumption
In order to effectively promote the Company's low-carbon development, Inner Mongolia Lightweight has added In order to improve the efficiency of clean energy use, Innovation Metal has carried out successive upgrades of
rooftop photovoltaic power generation to the new factory's design and invested heavily in the construction of combustion furnaces, replacing conventional melting equipment with regenerative heating combustion
waste aluminum recycling production lines. While improving its green and low-carbon development, it also furnaces to accelerate the internal heating and improve the recovery and utilization rate of waste heat.
contributes to the green transformation of the value chain. Compared with traditional furnaces, natural gas consumption has been reduced by about 42%, with the energy
efficiency of equipment improved. By the end of 2023, the Company has saved 1.73 million m3 of natural gas
annually through clean technology upgrades, reducing carbon emissions by about 3,700 tons.
Natural gas consumption has been reduced by about 42%， saved 1.73
million m of natural gas ， reducing carbon emissions by about 3,700 tons.
Photovoltaic factory
Energy Efficiency Upgrading
The Company continues to make energy-conserving technological improvements and upgrade the technology
of existing production equipment. We are also reducing energy consumption to improve energy efficiency by
adopting waste heat recovery technology. After the upgrade is completed, the Company will be able to
generate 35.64 million kWh of electricity by recovering and utilizing the heat of flue gas and steam, saving
emissions annually.
Saving 10,800 tons of standard coal annually, which is equivalent to reducing
approximately 28,000 tons of CO emissions annually.
Regenerative heating combustion furnace
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Case Recovering waste heat to generate electricity and reduce energy consumption
Deepening green application domains
Innovation New Material provides high-performance aluminum alloy products for downstream industries and actively
Innovation Metal channels the flue gas generated in the production process into the waste heat recovery boiler for steam
production. After stabilizing the pressure and the fluid, the flue gas is fed into a turbine generator for high-quality power supports low-carbon development in the industrial chain. With the advantages of aluminum alloy being light-weight
output, enabling the cascade utilization of energy. The project fully utilizes the medium and low-level waste heat resources and high-quality, the Company's products are widely used in high-end domains such as photovoltaics, light-weight
and the heat of high-temperature flue gas discharged from the original production line. With a total installed capacity of 5 MW, automobiles and 3C electronics. To a great extent, the Company has met the environmental and low-carbon
the annual power generation reaches 35.64 million kWh, saving up 10,781 tons of standard coal annually. requirements of downstream customers for green products and a green industry. Meanwhile, the Company is working
closely with customers in the downstream supply chain to explore possibilities of carbon reduction. We are committed
to cooperating with customers to carry out green and low-carbon production throughout the entire industrial chain to
continuously strengthen the green attributes of the industry.
Reaches 35.64 million kWh, saving up 10,781 tons of Photovoltaics
standard coal annually.
The Company's aluminum alloy products are used in key parts such as solar panel frames, photovoltaic
modules, and photovoltaic pillars due to their high durability, light weight, corrosion resistance and
recyclability. Aluminum alloy is capable of improving the overall performance and reliability of photovoltaic
equipment and enhancing its ability to withstand wind and snow loads. Meanwhile, it effectively reduces the
risks of load bearing, thereby expanding the application scenarios of rooftop distributed photovoltaics while
increasing the installed capacity of photovoltaics. In addition, aluminum alloy can significantly reduce carbon
emissions during the product lifecycle compared to steel during transportation. The excellent corrosion
resistance of aluminum alloy can extend the service life of photovoltaic equipment. Moreover, due to the
convenience of recycling, the recovery rate of aluminum alloy in photovoltaic equipment remains high after
years of use, with the energy consumption for recycling being only a small portion of that of steel. These
advantages of aluminum alloy have promised a vast array of its potential applications in the photovoltaics
industry.
Lightweight automobiles
The aluminum alloy materials produced by the Company are widely used in automotive trim parts, sunroof
guide rails, automobile seats, battery trays, etc. Their strength and other indicators meet the requirements for
automotive rigidity and performance. Additionally, the use of aluminum alloy has replaced that of steel to
reduce the weight of automobiles.
The aluminum alloy products produced by the Company are mainly used for decorative parts, support parts,
shell cases, frame materials, and structural components for various categories of electronic products such as
laptops, tablets, mobile phones, and wearable devices. They have been supplied to many well-known 3C
Waste heat turbine generator electronic brands. The light-weight and high-strength aluminum alloy is highly compatible with the trend of
portability and thinness in the development of 3C electronics. The application of secondary aluminum alloy also
helps to reduce carbon emissions in the life cycle of consumer products. Currently, the Company has gained
recognition from global leading customers in 3C electronics for its advanced manufacturing technology and 40
excellent performance of green and low-carbon aluminum products.
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Actively Responding to Climate Risks and potential impacts Coping strategies
Change
Physical risks
Climate change has led to an increase in the
frequency of extreme weather events such as
floods and typhoons, which may result in power
outages, water supply interruptions , and damage
This year, in order to systematically analyze the impact and opportunities of climate change on the Company's Acute to logistical routes, potentially disrupting the The Company will develop contingency plans related to
operations, the Company referred to the Recommendations of the Task Force on Climate-related Financial Disclosures Company's normal operations and causing supply chain protection to respond to unexpected
financial losses. natural weather events and meet the transportation
(TCFD) to proactively identify the risks of climate change and analyze the ability of our measures to cope with the risks.
needs.
Climate change is causing a sustained rise in
global temperatures, which may lead to chronic Besides, the Company will carry out equipment
risks such as the melting of sea ice, rising sea levels, replacement to improve resilience against natural
Risks and potential impacts Coping strategies and changes in water resource distribution. It may disasters.
Chronic also affect the Company's operating costs through
Transition risks increasing the frequency of equipment
maintenance and refrigerating equipment
purchases.
China has launched a national carbon market, with
the requirements for controlling carbon emissions
Climate change as an opportunity
becoming increasingly strict, which may create an
impact on the Company's operations, e.g., higher
operating costs due to the need to invest more in The Company will actively respond to national policies
technology improvement. and industry development trends by accelerating the Innovation New Material is actively responding to the demand for green development in the value chain. By reducing
Policy and green transformation and increasing the use of clean
Legal
Internationally, barriers to carbon-related trade, our operational carbon emissions and increasing the use of green energy in production and operations, we are driving
such as the EU Carbon Border Adjustment energy and green aluminum to reduce carbon emissions.
the green and low-carbon development of the entire value chain. Referring to the TCFD framework, the main climate
Mechanism (CBAM), continue to increase. This will
not only impact the Company's future exports to opportunities we have identified include:
overseas markets, but also affect the cross-border
Opportunity
transactions in the downstream value chain. Opportunities and potential financial impacts
type
The Company will continue to optimise energy Innovation New Material is committed to helping the value chain achieve green and low-carbon development.
With China's ''carbon peaking by 2030 and carbon conservation and emission reduction management, We actively promote the use of green and clean energy while upgrading production processes to create low-
neutrality by 2060'' goals, the country's carbon promoting the research and application of aluminum carbon products. In addition, we vigorously promote the application of the philosophy of circular economy by
emission policies will be gradually tightened, recycling technology. Products and signing strategic cooperation agreements on aluminum recycling with downstream customers to enable the
putting pressure on the Company to reduce carbon The Company will continue to conduct research in clean services production of greener and lighter aluminum alloy products and provide solutions that better meet low-carbon
Technology emissions. In the short and medium term, the technologies and vigorously optimise the energy needs. Meanwhile, we contribute to the high-quality development of the new energy industry by providing
Company may have to resort to clean technologies structure, such as increasing the usage of clean energy, high-quality aluminum alloys for industries such as wind power and photovoltaics, to boost the joint creation
due to carbon reduction needs, resulting in including photovoltaic and wind energy. Moreover, the of economic and social value along the value chain.
increased operating costs. Company will accelerate the energy structure To achieve low-carbon development goals, countries and regions worldwide have rendered strong support to
adjustment of its subsidiaries . green development in various industries to reduce the consumption of traditional energy. Therefore, the
Markets
Company vigorously promotes low-carbon transformation by responding to market demands for green
The Company's downstream enterprises are placing aluminum alloys and seizing new market opportunities to create new growth drivers for income.
greater emphasis on the low-carbon attributes of The Company already has a production line for
their products and services, thus elevating the low- secondary aluminum alloy. In the future, the Company The Company has carried out gradual energy-conserving technological upgrades to improve the energy
carbon requirements for upstream aluminum alloy will gradually increase the use of secondary aluminum in Resource efficiency of production, reduce the use of resources, and scaling dowin energy consumption. In the meantime,
manufacturers. The shift in market demand is other production lines as well to enhance the green efficiency benefiting from the increase in production capacity, the Company can produce more finished goods within the
Market
accompanied by the emergence of new attributes of products and expand the market share of same time frame to generate more profits.
opportunities, while products not compliant with the Company's green products.
The Company is constructing green energy facilities such as photovoltaic and wind power stations in multiple
the green attributes face the risk of obsolescence.
operating locations, planning to gradually replace traditional energy uses in production activities. While
Energy source reducing our carbon emissions, we also have also mitigated the compliance risks arising from stricter emission
policies in the future. In addition, the Company continues to increase the usage of clean energy such as
hydropower in Yunnan Province.
The Company will establish special communication
Inconsistency between the Company's business The Company actively lays out the low-carbon development of the whole process of products, gives full play to
channels with stakeholders. When problems arise, the
behaviour and its green and low-carbon philosophy the advantages of industrial cooperation, cooperates with upstream enterprises with a higher proportion of
Company will quickly develop and implement remedial
Reputation may affect its reputation and image, jeopardizing its clean energy use, expands the proportion of green power aluminum raw materials at source, expands the
solutions while providing timely feedback to
market performance. channels of secondary aluminum, increases the proportion of secondary aluminum raw materials, and realizes
stakeholders.
Resilience the reduction of carbon at source; and continues to increase the investment in and construction of secondary
aluminum alloy projects, expands the proportion of secondary aluminum alloy products, and produces more
low-carbon products, so as to enhance the ability of the Company to grasp the new opportunities of low-
carbon markets such as green aluminum alloys and other new opportunities in the low-carbon market, and
enhance the Company's resilience to cope with the impact of climate change.
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Practicing Environmental Environmental risk management
Protection
To prevent and control sudden environmental incidents and risks, the Company has formulated the Contingency Plan
for Sudden Environmental Incidents and filed it in accordance with legal requirements such as the Management
Measures for the Filing of Contingency Plans for Sudden Environmental Incidents in Enterprises and Institutions (Trial).
Considering the Company's characteristics, the Company has identified factors relevant to environmental impact
The Company always adheres to the environmental protection philosophy of ''Lucid waters and lush mountains are
before screening risks to rectify hidden dangers. We require personnel responsible for environmental protection to
invaluable assets'' through continuous improvement of environmental protection management and persistent efforts
regularly inspect the operations in workshops and conduct investigations into hidden dangers such as hazardous
to reduce the environmental impacts of production and operation, including formulating strict standards, adopting
materials, fires, atmospheric impacts, soil environment, etc. For the exposed environmental risks, the Company has
advanced emission reduction technologies, and cultivating employees' awareness of environment protection. In doing
established strict control procedures for rectification of environmental issues, specifying deadlines for solutions while
so, we have practiced the philosophy of green and sustainable development. This year, 2 subsidiaries have obtained
requiring all issues to be submitted to the Company's Safety and Environment Supervision Department in the form of
national-level green factory certification, with another 2 obtaining provincial-level green factory certification. On the
rectification reports for review.
municipal level, there are 2 subsidiaries with green factory certification. 1 subsidiary has also obtained municipal-level
green supply chain enterprise certification.
This year, 2 subsidiaries have obtained national-level green factory certification, with another
On the municipal level, there are 2 subsidiaries with green factory certification.
Besides, 1 subsidiary has obtained municipal-level green supply chain enterprise certification.
Strengthening environmental management
The Company strictly complies with laws and regulations including the Environmental Protection Law of the People's
Republic of China, Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution, Law
of the People's Republic of China on the Prevention and Control of Water Pollution, and the Law of the People's
Republic of China on Prevention and Control of Environmental Pollution by Solid Waste. In addition, the Company has
formulated environmental management policies such as the Environmental Protection Management Policy and the
Management Policy for Legal Disclosure of Environmental Information.
In order to carry out refined environmental management, the Company has established the Safety and Environment
Supervision Department that is responsible for the overall environmental supervision, inspection and management,
the handling of environmental protection procedures for construction projects, and the implementation of the ''three
simultaneities''1 . Meanwhile, we dispatch full-time personnel to supervise and inspect the management progress of
waste gas, wastewater and solid waste at each subsidiary according to the Company's environmental policies and
management requirements to screen and rectify potential environmental risks. By the end of 2023, all subsidiaries of
the Company have obtained the ISO 14001 environmental management system certification, and Suzhou Chuangtai is
applying for the certification of ASI PS performance standard management system.
All subsidiaries of the Company have obtained the ISO 14001
environmental management system certification
Suzhou Chuangtai is applying for the certification of ASI PS
performance standard management system.
The facilities for pollution prevention and control in construction projects should be designed, constructed, and put into operation simultaneously with
the main project.
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Implementing environmental protection
measures
Case Adopting the full-oil reclamation and purification system to make full use of waste gas
The Company persistently uses environmental protection equipment with higher efficiency and optimizes policies and Innovation Board Material uses a full-oil reclamation and purification system to purify oil mist in waste gas for
management measures to continuously reduce pollutant emissions for scientific and effective waste disposal as well utilization. This system purifies the oily flue gas in the purification tower, which uses the purified oil as fuel. In
as reasonable use of water resources, in an effort to maintain ecological balance and protect the natural environment. this way, the emission concentration of oily flue gas is reduced, with the resources recycled. With this system,
Waste gas treatment
around 540 tons of rolling oil can be reclaimed every year, which promotes the Company's energy conservation
and emission reduction as well as the sustainable development of circular economy.
The Company strictly implements the Integrated Emission Standard for Air Pollutants, the Emission Standard for Air
Pollutants from Industrial Kiln and Furnace, and local emission standards for air pollutants. The Company has
established a management system for waste gas treatment facilities and requires that emissions from all subsidiaries
shall not exceed relevant national or local emission indicators. In 2023, all pollutant emissions from the Company's
manufacturing bases met the national and local emission standards for air pollutants. At the Company's operational
site in Binzhou, the emissions of particulate matter, sulfur dioxide, and nitrogen oxides were significantly lower than
both the provincial standards of Shandong and the national standards. Specifically, the emissions of particulate matter
and sulfur dioxide were both lower than 10% of the national standard, while nitrogen oxide emissions were lower than
The emissions of particulate matter and sulfur dioxide were both lower than 10% of the national
standard , while nitrogen oxide emissions were lower than 50% of the national standard.
This year, the Company has invested 58.9298 million yuan in environmental protection.
Full-oil reclamation and purification system
The Company also continues to upgrade and renovate environmental protection facilities to improve the operating
efficiency of environmental protection equipment. This year, the Company has invested 58.9298 million yuan in
environmental project renovation. Our main measures include:
Installing and renovating
equipment for waste gas
Conducting fuel
replacement and
Optimizing processes of Wastewater governance
end-stage treatment
treatment collecting waste gas The Company strictly complies with the Law of the People's Republic of China on Water Pollution Prevention and
Control and other laws and regulations as well as local discharge standards of wastewater. According to the features of
production processes, the Company has taken various measures for compliant treatment and recycling of wastewater
The Company has introduced a The Company opted for natural gas For waste gas treatment, high-
to discharge less wastewater and promote circular economy.
regenerative low-nitrogen burner as the only fuel in the smelting efficiency cyclone dust collector and
system to reduce nitrogen oxide process to generate less waste gas. bag filters are used for dust removal,
For aluminum profile For wastewater in
generation by adjusting the air The efficiency of fugitive waste gas with the treatment efficiency In dyeing process In machining process
combustion ratio, which can reduce collection has been improved to exceeding 99.7%. The new full-oil surface treatment daily operations
nitrogen oxide emissions by about 99.5% by using larger gas hood on recovery and purification system is
upgraded 32 smelting furnaces with diameter of the main flue and achieving an over 95% purification of its nickel-containing the wastewater wastewater reaches 80% treated by the septic
regenerative low-nitrogen burners, increasing the air volume of the fan. efficiency of oil mist and smoke. wastewater after nickel generated in this after treatment, with the tank in the factory and
reducing the concentration of recovery for zero process and from other remaining 20% of then discharged into the
nitrogen oxide emissions by about discharge during sources to high-salt concentrated wastewater sewage network of the
before recycling, types will be discharged in
achieving a 90% the sewage network of the
recycling rate. Park after compliance with
treatment standards.
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Waste management
Case Optimising the alkaline washing process to reduce wastewater discharge
The Company strictly complies with the Law of the People's Republic of China on the Prevention and Control of
Environmental Pollution by Solid Waste, the Standard for Pollution Control on Hazardous Waste Storage and other
To improve wastewater utilization, Innovation Precision uses advanced alkali recovery technology to recycle laws, regulations as well as national standards, and reduces the amount of waste generated at source and at the end
alkali in the wastewater generated from mold cleaning. By adopting multi-process chemical and physical through the improvement of the production equipment and processes, and the resourcefulness and minimization
processes, Innovation Precision recycles 90% of alkali-containing wastewater from the cleaning process. These management of the solid waste generated.
processes also reduce the use of approximately 200 tons of alkali tablets and 90% of sodium hydroxide, thereby
achieving the reuse and conservation of water and other resources. For hazardous waste, we strictly abide by the Standard for Pollution Control on Hazardous Waste Storage to build
standardized storage warehouses for hazardous waste. Besides, we have made detailed plans and established a
standardized system as well as ledger for hazardous waste management, regulating the overall management of
hazardous waste. Striving to achieve ''zero landfill'' of waste, we have legally entrusted external qualified third parties
for hazardous waste disposal, adhering to the principle of ''organizations capable of comprehensive utilization and
disposal come first''.
Leftover materials in production are also recycled in a comprehensive way. The Company adopts advanced
technologies to screen and recycle aluminum ash. After the screening process, the up-to-standard aluminum ash is
processed again, with the remaining scrap waste recycled by qualified third parties for the production of high-value-
added products, in an effort to promote the development of circular economy along the value chain. Meanwhile, we
continue to upgrade equipment to reduce hazardous waste generation. The replacement of aluminum ash separators
has reduced the aluminum content in the secondary aluminum ash to below 5%, reducing the generation of both
secondary aluminum ash and hazardous waste.
Case Accelerating technology upgrades to improve recycling efficiency
Innovation Board Material uses aluminum ash separators before using ball milling screeners for aluminum
ash extraction, improving the recycling efficiency of aluminum ash. This year, Innovation Board Material
recycled more than 8,000 tons of aluminum blocks (including granular), reducing the generation of solid
waste while promoting waste recycling.
Alkaline washing device and process
The Company collects the general solid waste and domestic waste at fixed sites as required. Waste with recovery value
will undergo the comprehensive recycling process, with the rest handed over to a qualified third party for regular
Water resource management
disposal. In 2023, Innovation Board Material recycled around 3,000 waste wooden pallets throughout the year.
Strictly abiding by the Water Law of the People's Republic of China, the Law of the People's Republic of China on Water
Pollution Prevention and Control and other laws and regulations, the Company continues to practice refined
management of water resources. The water used by the Company mainly comes from the municipal tap water network,
of which the main purposes are designated for office operations, canteen's catering and production. The Company
attaches great importance to the rational use of water and pays close attention to the management of water
conservation. To enhance employees' awareness of water conservation, the Company has posted signs such as
''Please save water'' near water-consuming facilities to emphasize the importance, calling for joint efforts to protect
the environment.
The Company takes sustained actions to manage water resources. For example, all recirculated cooling water used in
producing aluminum alloy materials is reused rather than discharged, with fresh water regularly replenished.
Innovation Precision has recollected the water used in anodising production for toilet flushing, saving about 1,100 tons
of water annually.
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Green-driven
Innovation and
Product-led
Development
In today's ever-changing and challenging era, Innovation
New Material adheres to the spirit of ingenuity, and stays
committed to development driven by both technological
innovation and quality management. We spare no efforts
to accelerate the construction of R&D platforms, overcome
difficulties in process technologies, and actively participate
in the formulation of industry standards, to shape a
healthier and more sustainable industry ecosystem.
Besides cultivating technical elites and promoting smart
transition of production to enhance our own technical
strengths, we also contribute to the sustainable
development of the entire industry. Furthermore, due to
strict control of product quality and constant optimization
of customer service, we have won the trust of our
customers, and laid a solid foundation for common
development of the industry.
This chapter responds to the UN SDGs
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Diving Deep into Technological
In 2023, the Company had 110 newly authorized patents, including 18 invention patents, and 92 utility model patents.
By the end of 2023, we had obtained 445 patents in total, including 44 invention patents, and 401 utility model patents.
Innovation
Innovation Metal's invention patent - ''a process for producing electronic aluminum alloys by using secondary
aluminum'' won the first prize of 2023 Binzhou Patent Award. Innovation Precision's invention patent - ''a method for
testing coarse crystal layer of aluminum alloy'' won the second prize of 2023 Binzhou Patent Award.
Pursuing the mission of ''innovation makes the future'', the Company has formulated supporting policies and built
innovation platforms to boost independent innovation development. We also promote patent R&D, participate in the
standard formulation, and foster innovative talents, to enhance our abilities to innovate production technologies and
transform results, which strongly bolsters the development of the Company and the industrial chain. The Company has
and 92 utility model patents. We have obtained 445 patents in total, including
Key aspects of Innovation New Material's technology R&D 44 invention patents, and 401 utility model patents.
Accelerating the construction of R&D
platforms
The Company recognizes the importance of building a solid scientific research foundation. In this regard, the Company
strives to promote close ''industry-university-research'' cooperation by constructing research institutes, studios,
Accelerating the
construction of
practice bases, etc., so as to enhance the R&D strengths of the Company and the industry. By the end of 2023, we had
R&D platforms established various platforms such as the ''Innovation Alloy Research Institute'', the ''Academician Workstation of
Shandong Province'', New-type R&D Institution of Shandong Province, the ''Postdoctoral Research Practice Base of
Shandong Province'', the ''Enterprise Technology Centre of Shandong Province'', the ''Shandong Engineering Research
Centre for New Aluminum Alloy Materials with Ultra Strength and High Toughness'' and the ''Model Worker Innovation
Promoting smart Focusing on Studio''. In doing so, we exert ourselves in R&D, to promote the transformation of R&D achievements.
transition of key R&D
production projects
Promoting industry-university-research cooperation to tackle difficulties of the industry
Case
technologies
Participating in This year, the ''Shandong Engineering Research Centre for New
Fostering Aluminum Alloy Materials with Ultra Strength and High Toughness''
industry
industry jointly built and operated by the Company and Central South
standards University was approved by the Shandong Development and
technical
formulation Reform Commission. Focusing on the major strategic needs of the
talents
country, the Research Centre is devoted to overcoming the common
technical problems that need to be addressed in the aluminum
processing industry, considering the technological development of
the industry. These problems include producing high-end
aluminum alloy products with secondary aluminum, removing
damaging elements in the melt, controlling impurity elements,
casting with homogenized structure, and the heat treatment
technology with multi-scale and microstructure coordinated control
of comprehensive performance. By tackling these difficulties, the Shandong Engineering Research Centre for New
Centre aims to boost green and circular economy in recycling Aluminum Alloy Materials with Ultra Strength and
aluminum. High Toughness
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Focusing on key R&D projects Participating in industry standards
The Company constantly works on the high-end technology R&D, and participates in the research of local and national
formulation
The Company plays an active role in the formulation of industry
key science and technology projects, receiving high recognition from the industry peers. In 2023, Innovation Metal and
technical standards, tapping into the standardized development in
Innovation Precision were selected into the ''Cultivation List of Shandong New Material Leading Enterprises''. To be
key and hot areas, such as high-end alloy manufacturing, secondary
specific, Innovation Metal was honored as ''The Most Innovative Enterprise in 2022'' by All-China Federation of Industry
aluminum manufacturing, and green manufacturing. So, we actively
and Commerce, and its ''R&D and application management team of the key technology in high-end aluminum'' won
participate in the formulation and revision of a number of national,
the honor of ''2023 Binzhou Most Beautiful Science and Technology Innovation Team''. Innovation Precision was
industry and group standards, to promote the high-quality
certified as Shandong ''One Enterprise, One Technology'' R&D Centre, and Binzhou Industrial Design Centre. Its project
development of industry technologies. In 2023, the Company
- ''lightweight alloy material application in rail transit with an annual output of 100 thousand tons'' was selected as the
participated in the formulation and revision of standards related to
Shandong New Material Innovation and Application Demonstration Project.
secondary aluminum, aluminum scrap, environmental indicators and The Company participated in
energy consumption indicators for the aluminum industry, quality
measurement and other aspects. The Company participated in the the revision of 2national
revision of 2 national standards, namely, the Recycling Material for standards,
Case Supporting the R&D of key projects to foster industry leader Cast Aluminum Alloys and the Aluminum and Aluminum Alloy Terms
We also participated in the
and Definitions—Part 4: Aluminum Scrap, the latter of which was
approved as Shandong Original Technical Standard Project. We also
In 2023, Innovation Metal led academic institutions and third-party professional companies in carrying out the project revision of
''R&D of complete set of technology for manufacturing high-quality secondary aluminum alloy''. The project was funded by participated in the revision of 3 group standards; the standard that the
Project). To effectively help the industry to achieve the goal of carbon peak and carbon neutrality, the project focuses on Award for Technical Standards awarded by the National Nonferrous
solving key needs in the development and engineering application of the secondary aluminum industry. The project covers Metals Standardization Technical Committee, and the standard that
the efficient separation of secondary aluminum, impurity removal, melt treatment, refinement and toughening of anti- the Company participated in the compilation won the second prize of
poisoning seed, smelting and casting, intelligent production and typical application demonstration. Meanwhile, based on the Excellence Award for Technical Standards.
the ''industry-university-research'' cooperation model, the project is committed to building a sound development and
industrial application system of complete set of technology for high-quality secondary aluminum alloy manufacturing.
Participating in preparing technical standards to lead the high-end development of the
Case industry
In 2023, the Code for Control of Wastewater , Waste Gas and Scrap Waste from Aluminum and Aluminum Alloy Melting and
Case Demonstration projects for common development of the industry Casting led and prepared by Innovation Metal and Suzhou Chuangtai Alloy Materials Co., Ltd. won the first prize of the
Excellence Award for Technical Standards awarded by the National Nonferrous Metals Standardization Technical
Committee. Innovation Metal participated in preparing the Aluminum Alloy Ingots for Aviation Products, which won the
This year, Innovation Precision's project - ''lightweight alloy material application in rail transit with an annual output of 100 second prize of the Excellence Award for Technical Standards awarded by the National Nonferrous Metals Standardization
thousand tons'' was shortlisted for Shandong New Material Innovation and Application Demonstration Projects. As a Technical Committee. The awards not only demonstrate the Company's crucial contributions to the national nonferrous
''Shandong New Material Leading Enterprise'', Innovation Precision will take the opportunity of being shortlisted for metal standardization, but also show full recognition of the Company's efforts in promoting high-quality development of
Shandong New Material Innovation and Application Demonstration Projects to further replace old growth drivers with new the industry.
ones. By deepening ''industry-university-research'' cooperation, Innovation Precision enhances the R&D strength, and
makes greater contributions to the new material industry of Shandong Province.
lightweight alloy material application in rail transit The first and second prize of the Excellence Award for Technical Standards awarded by the National Nonferrous Metals
Standardisation Technical Committee
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Fostering industry technical talents Promoting smart transition of production
Pursuing ''a beautiful future through innovation'', the Company puts emphasis on cultivating technological innovation To create a first-class ''excellent operation + intelligent manufacturing'' benchmark factory, the Company is committed
talents that can contribute to the progress of the Company and the industry. To further strengthen the training of to integrating science and technology application into production and operation, to improve the production and
innovative talents, the Company has formulated the Enterprise Administrative Policy for All Staff Innovation. We also operation efficiency, and lay the foundation for rapid and high-quality development. In 2023, we carried out digital
carry out multi-dimensional talent training programs, and hold labor competition for excellence, to stimulate reform of production processes. Specifically, we have launched the real-time tracking system of secondary aluminum
employees to bring out their innovation abilities. Additionally, diversified innovation activities are organized to and the QR code management system to ensure the traceability of products, which realized the visualization,
advocate innovation culture among all employees. standardization and datafication in production. In addition, we developed a production management system with a
third-party developer, the Manufacturing Operation Management (MOM) platform. We also introduced an online
energy consumption data collection system, to apply the digital concept into the entire process of our production and
Holding a recognition meeting for ''outstanding workers'' to mobilise innovation operation.
Case enthusiasm
In 2023, thanks to the potential of industrial data resources and the new data-driven manufacturing model, Innovation
In July 2023, Shandong Chuanghui New Material Precision was accredited in the first batch of ''Morning Star Factories'' for the digital economy in Shandong Province.
Technology Co., Ltd. held a recognition meeting for Meanwhile, Innovation Precision was included in the second batch of pilot enterprises certificated by Data
''outstanding workers'' in cable workshop, at which 6 Management Capability Maturity Assessment Model (DCMM) in Shandong Province in 2023. This honor provides a
awards were presented by the general manager. In this reference for Innovation Precision to enhance its data management capabilities in terms of data standards, data
activity, the Company's Cable Department learnt from governance and data quality, thereby promoting its digital, networking and intelligent transformation and upgrading.
benchmarking enterprises, and adopted a series of
reform measures such as ''fixed staff, fixed post, and fixed
value'' for the wire drawing equipment of the workshop,
which greatly improved the workshop capacity. From the
study activity, employees were inspired to fully
implement the production concept of ''reducing cost and
increasing efficiency with outstanding quality'', to Recognition meeting for ''outstanding workers'' Case The MOM system was adopted for a refined operation management
promote innovation and make breakthroughs.
This year, Innovation Precision introduced the MOM system to realize standardized operational processes, transparent
management and real-time data analytics. The system contains five modules, namely, planning and scheduling,
production management, intelligent equipment, intelligent energy management and intelligent carbon management. By
linking and combining the information, the system enables each management unit to identify and solve problems in a
timely manner on the same platform and in the same dimension, effectively improving the efficiency of problem solving.
Case Collecting ''innovation and breakthrough'' proposals to foster an innovation atmosphere The adoption of the MOM system will steadily promote Innovation Precision's digital transformation and upgrading,
realizing paperless and automated office, as well as real-time monitoring and refined management of production and
operations, and effectively supports its scale development.
This year, to encourage all employees to innovate,
Innovation Precision held the ''Innovation and
Breakthrough'' improvement proposal collection activity,
with 1,325 participants, and 698 proposals obtained. At
the recognition meeting, 812 employees of 425 cases
were rewarded with RMB 61.1 thousand of incentive
money in total. Besides, the management of Innovation
Case Automated casting systems were introduced to create a refined production process
Precision encouraged employees to actively participate
in the ''innovation and breakthrough'' activity, and put
the improvement suggestions and programs into To ensure continuous quality improvement, the Company introduced the world-leading automated casting system.
practice to improve work efficiency. In addition, the Additionally, the most advanced hardware was equipped to optimize the special software used in direct chill casting,
general manager of Innovation Precision called on creating a ''one-stop'' solution for intelligent manufacturing. This system provided necessary tools and historical data for
employees to ''review'' the proposed improvement cases, the production and manufacture of some products, and helped to improve product quality. Moreover, the Company
so as to achieve persistence, continuous promotion and Recognition meeting for the ''innovation and introduced a new electromagnetic multi-layer filtration system to filter the liquid aluminum by electromagnetic force,
maximum benefit. Employees were also encouraged to breakthrough'' proposal collection activity performs real-time summary and analysis of measurement data through automated sample loading and automated
continue to put forward more excellent improvement sample measurement, to achieve comprehensive monitoring and precise control of product quality.
suggestions.
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Striving for Excellent Quality Full-process quality control
The Company focuses on the whole process of quality management, from raw materials procurement to supplier
classification management, from product quality planning to the quality control of the manufacturing process , from
The Company firmly believes that quality products are the key factor to win customers' trust and competitiveness in the quality inspection and delivery and the post-delivery service quality, each stage of the process is fully integrated
the market. Adhering to the quality management concept of ''customer orientation, full participation, and continuous with the concept of the PDCA2 quality management cycle to achieve a comprehensive process of fine quality control.
improvement'', we adopt the quality approach of putting quality first, seeking continuous improvement, complying In order to promote standardized management, we have formulated a series of operation standards, including
with the law and serving customers. In this way, we aim to optimize the quality management system on a continuous incoming inspection operation standards, process inspection operation standards and shipping inspection operation
basis. In addition, we have formulated strict product quality requirements that are integrated into the entire standards, aiming to ensure that there are clear quality control standards and operation norms for each stage of the
production process to provide high-quality products. In 2023, the Company won the Shandong Provincial Quality process from raw material warehousing to product shipment, avoiding the generation and outflow of substandard
Benchmarking Award and was nominated for the Shandong Provincial Governor Quality Award. products, and improving the stability and reliability of product quality.
Quality management system
To continuously strengthen quality management, the Company has formulated internal procedures for quality
management and established a two-tier management structure with a Quality Management Centre and Quality Incoming quality inspection In-process quality inspection Out-going quality inspection
Management Department of subsidiaries to effectively report and present quality management requirements.
Meanwhile, the Company has clarified the quality management requirements for each position, to implement quality Clarify the requirements for Emphasize the continuous Clarify the items, inspection
management measures. quality measurement tools, quality control in the and operation methods and
inspection equipment, production process, including judgement standards
inspection standards and the inspection requirements according to product
• Coordinates the Company's quality management, formulates quality management policy, and inspection methods, for the first batch of finished standards, customer
Quality supervises the quality management performance of business units. standardize the procedures for products and the sampling requirements, quality plans
Management dealing with anomalies, and requirements for each and other information; clarify
Centre emphasize the responsibilities production process; the response process for
of relevant inspection emphasize whether the abnormalities found in the
personnel, so as to improve inspection of the appearance out-going quality inspection,
the accuracy, standardization and performance of finished including the identification,
Quality Communicate and implement quality management in all aspects, including quality control,
and consistency of inspection. products meets customer isolation, disposal and
•
Management quality improvement and quality assurance.
requirements; clarify the reporting of nonconforming
Department of inspection tools and products, to avoid potential
Subsidiaries equipment, and the manner in nonconforming products from
which the results are recorded entering the market.
• Include four stages: quality control, quality engineering, document control centre and quality and reported. Detailed
assurance; ensure the implementation of quality management measures at all stages; instructions are also provided
Quality implement the quality planning developed by the Company; participate in quality performance for dealing with
Management assessment and training; accomplish quality management objectives. nonconforming products.
Positions
In order to deepen the lean management of quality, we continue to introduce advanced quality management methods,
By the end of 2023, the Company and its subsidiaries have obtained the ISO 9001 Quality Management System including the creation of a ''lean'' quality culture, the establishment of a technical research group, the development of
Certification. Specifically, 8 subsidiaries have obtained the IATF 16949 Automotive Industry Quality Management quality control team activities, digital system analysis, etc., to continuously improve the quality management process,
System Certification. and provide customers with high-quality products.
In addition, we have established a highly efficient quality issue handling process to ensure a quick response and
effectively prevent recurrence of similar issues. Once we receive a quality complaint, we immediately identify the cause
ISO 9001
and specify the responsible department to deal with the customer's problem in a timely manner. Subsequently,
The Company and its subsidiaries had each obtained Quality through the establishment of a quality feedback communication group and the release of monthly quality reports, we
Management System Certification. 8 of the Company's subsidiaries have obtained the work with all departments to improve and prevent the recurrence of problems, so as to realize a virtuous cycle of
IATF 16949 Automotive Industry Quality Management System certification.
quality management.
The PDCA cycle is a four-step model for quality management, namely Plan, Do, Check and Act.
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Hazardous substance control Providing Quality Services
To provide high quality products, we continuously assess potential health and safety risks during production and use
of our products in accordance with legal and regulatory requirements as well as the requirements of our customers.
The scope of assessment covers raw material inspection, in-process quality inspection, finished product inspection, Adhering to the business philosophy that ''customer satisfaction is the key driving force for a wider presence'', the
and by-product inspection during the production. 5 subsidiaries of the Company have passed the QC080000 Company continuously improves the service quality and actively responds to customer needs, thereby continuously
Hazardous Substance Process Management System Certification. increasing customer satisfaction. We have developed a customer relationship management framework in modules
according to business characteristics and processes, covering four areas of sales assistant, field sales assistant, on-site
Manufacturing process operations and secondary aluminum recovery, to provide comprehensive quality services. Meanwhile, the Company
Raw material testing Finished product inspection
monitoring provides customers with a variety of feedback and complaint channels, including e-mail, WeChat, fax, telephone and
on-site meetings. These channels enable the Company to listen to customers' demands and provide excellent services
to customers.
To ensure that the content of
hazardous substances in raw
To minimise safety hazards during
the manufacturing process, we
To ensure the safety of finished
products, we carry out
Customer complaint management process
materials is lower than the monitor key parameters to ensure comprehensive quality tests at the
standard amount, we invite a reliable and stable production inspection stage to ensure that The Company has formulated Customer Feedback Process Control Procedures to standardise the customer complaint
professional third parties to process; the products meet the standards. management process. The procedures provide detailed rules on the process and timeframe for handling customer
conduct RoHS testing on relevant complaints to ensure a timely and proper resolution of each customer complaint.
suppliers., among which the
qualified ones can be enrolled;
The Marketing Department The Quality Management The responsible departments
receives and responds to the Department organises a quality implement the above measures as
complaint within 24 hours after it review meeting within 48 hours planned within 72 hours. The
happened, and forwards the and analyses the cause with the Quality Management Department
complaint to the Quality relevant responsible departments, responds to customers by issuing
Management Department and who formulate corrective and the 8D report (i.e., a problem
relevant responsible departments. preventive measures in solving method commonly used
accordance with the Process by engineers or other
Control Procedures for professionals) or by sending
Improvement, Corrective and contact letters, and monitors the
Preventive Actions, the Process abnormal closure of customer
Quality culture construction
Control Procedures for complaints.
Nonconforming Products and
other documents.
The Company continues to strengthen the construction of quality culture, and organises a variety of activities to raise Customer Satisfaction Survey
employees' quality awareness. In 2023, we actively carried out activities such as ''Quality Month'' and ''Quality
Champion Competition'' to enhance employees' understanding of quality management throughout the product life Meanwhile, the Company listens to the customers. At least once a
cycle. year, the Company conducts satisfaction surveys for all
customers through online questionnaires and offline visits. These
surveys cover four aspects of product quality, service, delivery
and hazardous material control, as well as product appearance,
Case Strengthening quality improvement and promoting technological innovation service attitude, packaging and labelling. The Company then
collects, collates and analyses the feedback data to produce
The Company holds monthly or quarterly quality analysis meetings to summarise the quality performance and optimise product and service improvement suggestions and results
the quality and cost structure, and formulates quality targets and improvement plans. Specifically, the Company had set reports, which are presented to management as a basis for The Company conducted several customer
up a technical research group dedicated to solving technical problems in production, inspection and internal and external management improvement. In 2023, the Company conducted satisfaction surveys, and received a
defects. In addition, the Company encourages the QC group to make technical innovations in procedures, energy several customer satisfaction surveys, and received a satisfaction
consumption and process, and actively calls for all employees to put forward valuable suggestions to improve design rate of more than 90%. satisfaction rate of more than
quality. With these measures, we not only significantly improved the quality of our products, but also effectively reduced
production costs.
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Development Development Driven Development Together
Practicing Sound
Management to
Promote
Responsibility-
Driven
Development
Faced with an increasingly complex business environment,
Innovation New Material continues to strengthen its risk
prevention and control capabilities to ensure sound business
operations. Meanwhile, the Company abides by business ethics,
strengthens patent and brand protection and enhances
information security and privacy management, to build a
responsible corporate image in a continuous manner. The
Company also makes sustained efforts to promote the common
development of the industry. By strengthening supplier
management, the Company strives to create a sustainable
ecosystem with suppliers.
This chapter responds to the UN SDGs
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Development Development Driven Development Together
Improving Risk Prevention and
Control Capabilities
Email address（sdcxjt@sdcxjt.com）
Hotline（0543-6981801、0543-6981777）
The Company actively strengthens risk management, and keeps strict compliance with relevant laws and regulations.
In addition, we have formulated internal risk management policies to prevent and control potential risks and
safeguard the sound operation of the Company. To this end, the Company has established three lines of defence:
Meanwhile, the Company has established strict requirements to protect the whistleblower privacy and manage the
reporting information to ensure that whistleblowers can effectively exercise their legitimate rights. To strengthen the
integrity construction of suppliers, the Company attaches the Integrity Agreement to the commercial contracts signed
The first line of defense The second line of defense The third line of defense with suppliers and conducts integrity related audits on suppliers, to increase transparency and credibility in the supply
chain.
Frontline employees serve as The finance department, legal The internal audit department The Company is actively involved in the development of business ethics and organizes regular training on laws and
the first line of defense, department and archive office acts as the third line of regulations to continuously raise employees' awareness of legal compliance. This year, the Company carried out 18
responsible for daily internal act as the second line of defense, responsible for the training sessions on laws and regulations, which were attended by 1,454 middle and senior management personnel,
control, assess risks and take defense, monitor and inspect internal audit and risk project managers and related personnel. The training covered legal awareness, typical cases, and general knowledge.
control matters, and report to the execution situation of the management review, ensuring In addition, we conduct special legal and regulatory training for key departments. The training includes explanation of
the management when first line, ensuring the the rigor of the Company's laws, regulations or rules, analysis of company cases and summary of lessons learned, to raise the legal awareness of
necessary. complete control of risks. internal risk controls. manager personnel and relevant employees.
Additionally, the Company gives considerable weight to the protection of trade secrets of its partners. We have a
dedicated trade secret protection office that formulates the trade secret confidentiality system and the competition
Meanwhile, to ensure effective risk management, the Company has established a risk management system agreement system for our employees to ensure proper management of customer information. This year, the Company
coordinated by the Company's head office to monitor and evaluate the risk management performance of all internal updated the Bidding and Business Integrity Agreement to further strengthen anti-corruption management at source.
organisations and subsidiaries. After the risk assessment, the Audit Department at the head office will summarize the Meanwhile, the Company adopts technical measures such as data encryption and two-factor authentication to protect
assessment results and rectification suggestions in a timely manner and report to the Audit Committee. Meanwhile, customer privacy, and sets access rights to enhance the confidentiality of customer information.
outstanding issues and corresponding actions will be followed up and implemented in a timely manner, forming a
Strengthening Patent and
closed-loop risk management system.
Strengthening Business Ethics Brand Protection
Construction We are committed to protecting our own IP rights and respecting those of others to promote the common and
harmonious progress of the industry. In strict compliance with the Patent Law of the People's Republic of China, the
The Company firmly believes that business ethics are the cornerstone of sound business operations and sustainable Trademark Law of the People's Republic of China and other laws and regulations, we have actively improved the IP
development. We strictly comply with the Company Law of the People's Republic of China, the Anti-Unfair Competition management system, set up the IP management leading group and established the internal management system for
Law of the People's Republic of China, the Anti-monopoly Law of the People's Republic of China, the Anti-Money patents, trademarks and software copyrights to protect the IP rights in an all-round way. Moreover, we include
Laundering Law of the People's Republic of China and other relevant national laws and regulations. In doing so, we restrictive clauses in business contracts with our partners to clarify the allocation of IP rights and interests and the
have formulated policies such as the Code of Business Conduct, the Management Control Procedures for Anti-Foreign information confidentiality obligations of each party, so as to avoid infringing on the legitimate rights and interests of
Bribery and Anti-Corruption, the Management Control Procedures for Prohibition of Accepting Bribes or Using Other both parties. To avoid infringing IP rights of others, during the R&D of new products, the Company's technology center
Means to Obtain Improper Advantages and the Control Procedures for the Regulation of Ethical Standards to strictly reviews and evaluates new product projects before they are launched. At the same time, the IP output and
effectively regulate the operations of the Company and the employees' code of conduct. In 2023, the Company had no protection are continuously monitored to ensure that the IP risks are controlled. Additionally, the Company has a
violations of corruption, money laundering, unfair competition, bribery, extortion, and fraud that would have a dedicated department that provides legal advice on IP-related issues involved in operations and assists other
significant impact. departments with their IP management.
The Company attaches great importance to corporate anti-corruption and integrity. We have established a The Company incorporates training on intellectual property rights management and protection into the annual
comprehensive review system for violations of laws and regulations, sets up the Economic Oversight and Inspection training for employees, organizes them to participate in intellectual property rights management training offered by
Department to take responsibilities in investigating illegal and disciplinary incidents, analyzing the results of relevant departments, and invites experts to give special lectures. The Company also carries out special training on the
investigations and proposing countermeasures to prevent risks of business ethics. To ensure fair oversight, we provide creation, application, and protection of intellectual property rights among the employees to enhance their awareness
employees, suppliers and other stakeholders with open reporting channels such as email and telephone. of intellectual property rights management and protection.
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Stepping Up Information Security Supplier management and coordinated
development
Efforts In accordance with the Supplier Control Procedures, we collect information and conduct qualification audits on
suppliers before they are admitted, and form audit reports. Upon approval, we conduct comprehensive reviews of
The Company attaches great importance to information security and privacy protection and strictly observes laws and
suppliers before formal cooperation and require them to sign the Supplier Social Responsibility Commitment, the
regulations including the Cybersecurity Law of the People's Republic of China and the Personal Information Protection
Prohibited Substance Assurance Declaration and HSF Notice and other documents that guide them to improve their
Law of the People's Republic of China. The Company has formulated the Information Security Strategy and ESG performance. During the cooperation, we establish supplier audit plans with reference to relevant policies and
Management Policy, the Information Security Education and Training Policy, the Password Management Policy and
documents, and continuously monitor suppliers' performance through on-site evaluation, supplier self-evaluation and
other regulations, in order to enhance employees' cybersecurity awareness and ability to protect information.
second-party evaluation.
The Company continue to improve information security management and operation systems to avoid the negative
impact of cybersecurity incidents on the Company's operations and customer privacy protection. The Company has an We also communicate well with our suppliers, sharing our sustainable development concept and listening patiently to
Information Security Working Team, which is headed by the General Manager, who is also the ultimate responsible their demands. This year, we communicated with our suppliers on the integrity and bidding requirements, and
person for information security. The Team consists of cybersecurity experts, application security experts, data security common procurement issues by organizing supplier assistance, industry exhibitions, in-person meetings and
experts, and compliance and legal experts to manage information security-related matters separately. In the event of a exchange seminars, etc., to help both sides maintain close and friendly long-term cooperation. By the end of 2023, the
network security incident, the Company strictly follows the Incident Response Emergency Plan to take action, shuts Company had successfully organized 3 symposiums, inviting 35 suppliers to discuss cooperation and development
down the failed line or server, remove the viruses and vulnerabilities from the attacked equipment, and makes every issues, with about 70 participants.
effort to ensure the security of the Company's information system and important data. At the same time, the Company
uses firewalls, IPS, IDS and other facilities to make information more secure, and sets up strict access permissions,
which are managed by the Information Centre. We have established a complete data backup system through the cloud
platform to strengthen data backup capabilities. In addition, the Company regularly conducts information security and
The Company successfully organized
discuss cooperation and development issues, with about 70 participants.
data security training among all employees of the Information Centre to improve employees' cybersecurity awareness
and risk prevention and mitigation capabilities. This year's training included phishing websites, email identification,
and password security protection.
Building a Sustainable Value Chain Sustainable value chain collaboration
The Company is committed to establishing good communication channels and close partnership and building a Innovation New Material actively engages with professional third parties and downstream customers in collaborative
smooth cooperation model to promote the common development of the value chain by formulating management sustainable development projects to achieve synergies in sustainable development with our customers and other
standards, carrying out business cooperation and exchanges, and promoting sustainable development projects. In this parties across the whole value chain. During the year, the Company developed a digital carbon emission calculation
regard, the Company has formulated management policies such as the Procurement Process Control Procedures, the tool with a third-party professional organization to accurately calculate and monitor the carbon footprint of products
Supplier Control Procedures, the Supplier Evaluation Management Control Procedures and the Qualified Supplier and further meet the requirements of downstream customers. At the same time, as a supplier to many industry leaders,
Evaluation Standards to clarify supplier management requirements and standardize the supply chain management the Company receives social responsibility audits from downstream customers every year, covering environmental
process. protection, resource management, human rights, etc., and strives to become a responsible supplier.
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Development Development Driven Development Together
Unite Efforts and
Join Hands to
Forge
Development
Together
Adhering to the principle of ''Integrity and Talent, Person-to-post
Matching'', Innovation New Material protects the legitimate rights
and interests of employees, empowers employees' growth in an
all-round way and shape the corporate culture of ''joint
construction, joint creation, shared prosperity, shared benefits''.
These efforts enable us to create a happy workplace and achieve
win-win results with employees. In addition, we shoulder our
social responsibilities and participate in public welfare activities
such as charitable donations, social care and environmental
protection. We also encourage employees to take part in volunteer
activities to build an image of a responsible enterprise.
This chapter responds to the UN SDGs
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Development Development Driven Development Together
Empowering Employees' Growth
Remuneration and benefits
In order to better serve employees, we practice equal pay for equal work, and advocates for a performance-
based salary incentive policy with various bonuses and allowances. This fair pay system can stimulate the
enthusiasm and creativity of employees. We continue to improve the employee benefits based on the
national statutory standards to make our compensation system more competitive.
The Company effectively protects the legitimate rights and interests of employees by providing a fair, just and open
working atmosphere as well as an inclusive and diversified workplace, and locally competitive remuneration packages.
To enhance employees' sense of belonging, we do our best to ensure that they ''work well, eat well, live well, learn well
and grow well''. We care for our employees in all aspects of work and life, creating a healthy, safe, beautiful and happy
working environment. Commercial insurance, holiday gifts,
Insurance and Housing Fund, private car allowance, free working
marriage leave, maternity leave, meals and accommodations, shuttle
Statutory et cetera. Additional buses, health check-ups, team
benefits benefits building fund, association, etc.
Safeguarding employees' rights and interests
Diversity promotion
The Company values the diversity of employees in terms of age, gender, and background, and has built a
senior management team consisting of promising young talents, experienced middle-aged talents,
Strictly abiding by the International Labor Standard, the Labor Law of the People's Republic of China and other professional managers who master management, and senior technologists who are experts in R&D. The
standards, laws and regulations at home and abroad, the Company has formulated the Employee Handbook, the workforce is a combination of innovation, experience and wisdom that can improve the operation efficiency.
Corporate Culture Handbook and other rules and regulations which clarify the code of conduct for employees, The Company cares for female employees, supporting their career development and providing support roles
emphasizing the management principle of ''policies and procedures go first''. We respect our employees' social based on the principle of equal pay for equal work. In addition, the Company has formulated a
backgrounds, nationalities, physical conditions, gender orientations, religious beliefs, etc., and treat all of our comprehensive and flexible leave policy that provides statutory maternity leave and breastfeeding leave for
employees equally in terms of compensation, recruitment, promotion, and training. By the end of 2023, some female employees and their families, and protects employee benefits during special periods.
subsidiaries were certified to the SA8000:2014 Social Accountability International standard.
We strictly enforce standard working hours and arrange holidays for our employees based on statutory holidays and Employee communication channels
business conditions. We also pay social security and housing contributions for our employees in accordance with the
relevant standards, and purchase additional commercial insurance to provide our employees with comprehensive The Company smooths communication channels for employees and convenes staff congresses regularly to
occupational and social security. communicate with employee representatives about policies, guidelines, corporate culture, rules and
regulations. To continuously collect opinions and suggestions of employees and fully listen to their voices,
In addition, we fully respect and protect employees' freedom of association, their right to collective bargaining, beliefs, the Company has set up staff suggestion boxes in the canteen, the staff activity center and production
freedom to form and join labor unions and right to peaceful assembly, based on the labor Union Management Policy workshop, as well as a direct telephone line where employees can communicate with the President. In
and other rules. addition, the Company conducts an employee satisfaction survey every year, in which employees write down
their opinions and suggestions on the questionnaires. The Enterprise Management Department summarizes
and analyses the questionnaire and submits it to the management. After discussion, the management
Recruitment and dismissal determines the improvement, preventive and corrective measures, and the counterparts ensure that the
The Company has formulated the Recruitment Management Policy, the Separation of Employment Policy relevant improvements are put into effect. In 2023, the employee satisfaction survey covered 92% of
employees, and 90% of the surveyed employees were satisfied with the Company.
and other documents that clarify the process and implementation standards for managing the entry and exit
of employees. We require recruiters to work in strict accordance with the Recruitment Management Policy.
We have set up monitoring and reporting mailboxes and a telephone line to accept the monitoring of
candidates and the community. Employee separation is handled in strict accordance with the relevant
systems and processes to protect the rights and interests of employees. In 2023, the employee satisfaction survey covered
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Improving the employee training system
Case Democratic appraisal for all to promote the participation of all employees in management The Company fosters a love of learning among all employees, and is committed to building the Company
into a more dynamic and innovative learning organization, providing employees with more opportunities for
In order to improve the ''everyone advises'' mechanism and promote employee participation in corporate growth and development. We have formulated the Training Management Policy and offer employees
development, we have conducted a democratic appraisal among all employees, inviting them to evaluate learning resources and platforms. In this way, employees are encouraged to improve themselves and adapt
the cadres on duty in an anonymous way, and to express their opinions and suggestions on the Company's themselves to the need of the Company's globalization strategy.
management, safe production, technological innovation, etc. Employees' suggestions were summarized and In order to involve all employee into the training program, we have carried out systematic training programs
analyzed by the relevant department, and then submitted to the President for review and determination of for employees in different positions and grades, including:
rectification plans. In 2023, we made adjustments based on employees' suggestions, including increasing
the frequency of shuttle buses, improving the standard of employees' meals, and improving accommodation, For middle and senior For technical
For new employees
and building high-standard employee activity center These efforts were widely praised by employees and management management personnel
motivated them to become more involved in the Company's development decisions.
We adopt a ''input and We hold seminars, We carry out the ''team
output'' training method. symposiums and team leader training'' and ''furnace
Prioritising employee development
They are required to building activities to listen to program'' training session for
participate in the their voices. We continue to reserve talents, and cultivate
''condensed EMBA'' training, update the training PPT and reserve talents in the
and transfer the learning enrich the training courses so production management
The Company ensures that employees ''learn well'' and ''grow well''. Adhering to the principle of ''learn to use and use results to the whole staff. In that new employees have an system through the
what has been learned'', we are committed to providing employees with a smooth promotion path and a sound this way, we try to promote in-depth understanding of ''independent evaluation of
consistency between the the Company. We also adopt skilled talents'' platform.
training system to improve their work skills and professionalism, stimulate their potential, and lay a solid foundation
thinking of the management an ''instructor'' approach to
for the long-term development of the Company and employees.
and that of the working level. help them integrate into the
Company more quickly after
Smooth employee development paths joining.
The Company is committed to building a fair, just and transparent promotion system. In order to ensure the
To improve the training efficiency and enrich the content, the Company has built online training platforms
fairness of the promotion process, we have introduced an all-employee democratic assessment mechanism,
such as the ''Magic School'' and ''Dechuang Business School'' to continuously explore training resources and
which combines multiple factors to make a comprehensive assessment of the employee's performance,
methods and improve employees' satisfaction. Moreover, in order to motivate our employees to learn, we
including job requirements, performance, and departmental evaluations. In addition, we fully investigate the
have set up the Academic Upgrading Incentive Policy, which standardizes study subsidies, including
employees to be promoted and have established a promotion publicity system to publicize promotion
subsidies for titles, certificates of certified safety engineers, and other skills of other corresponding
information as well as the handling of objections within the Company to ensure that the promotion process
occupational grades.
is fair and transparent.
The Company continues to improve diversified paths, including the four channels under the ''dual
sequences''3, internal recruitment and independent evaluation platform for skilled personnel, in order to
achieve person-to-post matching. To boost employee development, the Company has established an
internal recruitment method where internal recruitment information is regularly released and employees are Case A symposium on innovative reserve talents to strengthen talent team development
encouraged to apply for positions, thus providing employees with more development opportunities. The
Company has obtained Shandong Enterprise Skills Self-evaluation Qualification, which provides more
opportunities for skilled personnel to learn, evaluate and develop. By the end of 2023, more than 300 skilled This year, Innovation Sheet Material organized a
personnel had passed through independent evaluation, further promoting internal development. symposium for reserve talents to help them fully
understand the training requirements, adapt to the
new working environment as soon as possible and
develop a high-quality talent pool. At the
By the end of 2023, more than 300
skilled personnel have passed through
symposium, the General Manager emphasized the
requirements for the reserve talents in terms of
independent evaluation, further promoting internal development. working conditions, mind expansion, working
habits, etc. The leaders of each department clarified
the training objectives and habits for the reserve
talents in their departments and encouraged them
to develop with a positive and peaceful mindset,
''Four channels'' under the ''Dual sequences'': ''Dual sequences'' refer to functional sequence and production sequence. The functional sequence Symposium for reserve talents
includes professional channel and management channel while the production sequence includes skill channel and management channel.
demonstrating the Company's focus on talent.
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A training course on ''Lean Management Enhancement'' to strengthen management's
Case The ''Furnace Program'' reserve talent training session Case
knowledge and skills
This year, Innovation Metal successfully held the second training session of the ''Furnace Program'' for This year, Innovation Precision successfully held the third ''Lean Management Enhancement'' training, with a
reserve talents and selected 41 trainees through competitive examination and departmental total of 66 participants. The training included the Quality Management - Six Sigma System, Lean Production
recommendation. This training session is based on the vision of ''building passionate team, creating core Management Practice, Four Steps to Project Management and Lean Production Technique, which conveyed
value'' and includes a curriculum designed to help trainees pursue ''exercise, practice, breakthrough, the basic knowledge and skills of lean management to the participants in the form of work-based lectures.
innovation, value'' with the core objective of ''lower costs, higher efficiency, and more benefits''. The training This course provided knowledge and technical support for systematic lean management, and laid a solid
program aims to enable employees to benefit from what they learn, and to build a solid talent base for the foundation for lean management.
Company's scientific and technological innovation.
Opening ceremony of the second training session of the ''Furnace Programme'' for reserve talents ''Lean Management Enhancement'' training completion ceremony
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Caring for employees Play well
We provide employees with high-standard apartments as well as well-equipped recreational facilities, including
The Company always adheres to the principle of ''people-oriented'' and places great importance on the well-being of
gymnasiums, indoor basketball courts, badminton courts, billiard court, Table tennis court, audio-visual room,
employees. To this end, the Company ensures that employees ''work well, eat well, play well'', creating a better
reading room, yoga room, laundry room, etc., of which the gym is equipped with multifunctional treadmill, elliptical
working and living environment for employees.
machine, mountaineering machine, waist and back multi-functional abdominal muscle trainer, shoulder press
bench, barbell bench and other equipment, letting employees fully enjoy leisure times besides work.
Work well
We create a garden-style factory and office environment for employees and provide them with a favorable working
environment.
Garden-style factory
Eat well
We provide employees with high-standard and free working meals, so that they can eat well.
Daily meals for employees Employee Activity Center
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Development Development Driven Development Together
Case Enrolment celebration activities for employee's children to show humanistic care
We provide high-standard apartments to employees. At present, the Company has a total of 2,598 dormitories in
various parks. To continuously improve employee living conditions and meet the accommodation needs of new In 2023, a total of 108 employees and their children visited the high-strength and high-toughness aluminum
employees, the Company has built and put into use 344 dormitories this year. alloy rod production workshop in Innovation Metal, the No. 1 and No. 2 aluminum extrusion workshops in
Innovation Precision, and the cold rolling production workshop and product display zone in Innovation
Sheet Material. During the activity, representatives of employees' children delivered rousing speeches,
sharing their learning experiences, expressing their gratitude to their parents and wishing the Company a
At present, the Company has a total of
The Company has built and put into use 344 dormitories this year.
prosperous future. This activity has further strengthened the cohesion and centripetal force of the Company,
stimulated the staff's sense of identity and belongingness, and delivered the Company's humanistic care for
employees.
Enrolment celebration activity for employees' children
Holding campaigns of ''Health Education on Traditional Chinese Medicine for the
Case
International Women's Day'' to advocate right idea on health
Employee Apartments
In March 2023, the Company joined hand with Zouping Hospital of Traditional Chinese Medicine to hold two
The Company attaches great importance to employees' workplace happiness and sense of belonging, and organizes a campaigns of ''Health Education on Traditional Chinese Medicine for the International Women's Day'',
variety of cultural and sports activities, so that employees work in innovation, happiness in innovation. In 2023, we involving more than 140 female employee participants. Doctors from the hospital educated female
have carefully organized more than 50 various types of employee activities, more than 40 employee skills competitions, employees on the prevention and treatment of common female diseases and shared daily self-care
including the annual summary of the General Assembly, the Company's annual meeting, the 8th of March Women's programs to promote a healthy life for them. In addition, doctors interpreted in detail the commands and
Day activities, the May Day Workers' Sports Day, Mid-autumn Festival activities, Thanksgiving Day activities, Christmas movements of the ''Baduanjin Qigong'' to help employees cultivate good living habits to achieve physical
activities, New Year's Day Tea Party, reward activities for employees' children's advancement to higher education, and mental health and family harmony.
seminars for graduates, knowledge competition activities, etc., aiming at enriching the life of employees, promoting
the friendship of colleagues, conveying the Company culture, and further enhancing the sense of identity and
reputation of employees to the Company. This year, we also rewarded a total of 98 vehicles for the Company's loyal
team role models, recognizing their consistent hard works.
In 2023, we have carefully organized more than 50 various types of employee activities
More than 40 employee skills competitions
We also rewarded a total of 98 vehicles for the Company's loyal team role models
Campaigns of ''health education on traditional Chinese medicine for the International Women's Day''
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Protecting Work Safety Safety Committee
Safety and Environmental
Supervision Department
Each subsidiary
The head of the safety The Department of Safety and Be fully responsible for its
committee holds quarterly Environmental Supervision acts as own safety work, carries out
Attaching great importance to production safety and employee health, the Company adheres to the health and safety meetings to summarize, the office of the Safety Committee, the main safe production
deploy and coordinate the plays the role of unified deployment activities, accepts the Group's
management policy of ''safety first, prevention at the core, comprehensive management, continuous improvement,
promotion of safety of safety management, supervision on safety
people centricity, and safe development''. We adhere to the safety management concept of ''all risks can be controlled
management, formulates coordination of services, training management, and undertakes
and all accidents can be prevented'', and continuously optimize the safety risk identification and control process. annual work safety objectives and guidance, and comprehensive the safety management tasks
Besides, we implement the work safety responsibility system, improve the work safety protection and management and plans, to promote safety supervision, and performs the assigned by the headquarter.
capacity, and strengthen the monitoring of occupational health, to provide employees with a safe and healthy working management in each function of safety services. The
environment. By the end of 2023, the Company's head office and 9 subsidiaries had completed the acceptance of subsidiary; Department also continuously
safety standardization (level III) and actively submitted the application for acceptance of safety standardization (Level improves the work safety system
II) to the respective provincial departments of emergency management. Due to the existing reconstruction and and optimizes the workflow
expansion projects, the respective emergency management departments did not arrange acceptance for the rest according to the actual production
subsidiaries. However, the safety standardization system had been established, improved and effectively operated in needs;
such subsidiaries. At present, 9 of the Company's subsidiaries have obtained ISO 45001 occupational health and safety
management system certification.
By the end of 2023, the Company's headquarter and 9 subsidiaries had completed the
acceptance of safety standardization (level III).
the Company have achieved ISO 45001 Occupational
Health and Safety Management System certification.
''Double-wheel driving'' structure of production
The Company continues to improve its safety management rules and regulations and has formulated a series of
policies with respect to work safety responsibility, risk assessment and control management, special operation
management for all employees
personnel management, operation safety management, occupational health management, work safety assessment
The Company builds a ''double-wheel driving'' system for safety management, with the unified management of the
management, emergency management, and safety performance evaluation management. In order to effectively
Group and managers of subsidiaries as the active wheel, and the hierarchical management of subsidiaries and the 12
implement health and safety management, the Company has established a top-down management model with unified
elements of safety management as the passive wheel. Under the joint effect of the work safety responsibility system for
leadership and formulation of work safety objectives and plans by the Safety Committee, unified supervision and
all employees and the performance evaluation, the Company creates a progressive production safety management
management by the Safety and Environmental Supervision Department, and independent management by each
mode to effectively conduct work safety management measures.
subsidiary.
In addition, the Company emphasizes the core concept of ''whoever manages production must manage safety'' and
''whoever manages safety must understand safety'', and continuously strengthens the construction of the safety Team
management team. The Company implements the title subsidy system for Certified Safety Engineers (CSE) and Centralised
provides subsidies for examination and training costs to encourage full-time safety management personnel to take the management
by the Group
CSE examination. In recent years, a total of 57 safety management personnel and production management cadres
have participated in CSE studies, trainings and examinations, and more than 40 employees are certified safety
Five 12 elements
engineers. Two''One'' levels of of safety
control management
Management
Management by
Branch leaders
The driving wheel The driven wheel 1 The driven wheel 2
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Controlling safety risks
To efficiently implement the work safety responsibility system for all employees, the Company adheres to the positive
incentive concept of ''reward first, penalty second'', and has established a safety performance assessment system and
formulated the Measures for Safety Performance Assessment to clarify the requirements on safety responsibility, zero
tolerance of accidents, and the target reward and punishment mode, so as to drive all employees to fulfil their duties in
work safety independently. The Company organizes quarterly comprehensive inspections for safety management The Company continuously improves the identification, assessment, management and monitoring of occupational
personnel and technicians of each subsidiary and implements daily management safety performance appraisal. Based health and safety risks. We have formulated the Graded Risk Management and Control List to manage the safety risks
on indicators such as work injuries, performance of safety responsibilities, training, controlled sources of danger, and hierarchically based on the industry practices on accidents and the hazards identified. For different risk sources, we
have formulated the Records of Identification, Evaluation and Analysis on Risks, which clarifies the engineering and
rectification for hazards, the Company evaluates on-site safety management, performance of safety responsibilities,
technical measures, management measures, training and education measures, individual protection measures and
and achievement of goals. Based on the year-end comprehensive assessment, the Company rewards middle and emergency response measures for preventing each risk, to ensure the rationality and operability of the control
senior management (including general managers of subsidiaries) and grass-roots cadres in accordance with the rules measures. In addition, to continuously enhance its risk identification and management capabilities, the Company
and regulations. establishes a pool of internal safety experts, and carries out monthly inspections, regular comprehensive inspections
and special safety inspections. At the same time, the Company employs qualified external units to carry out
inspections every six months to comprehensively identify safety risks.
Key Performance Indicators for Health and Safety
For the subsidiaries, we emphasize that all levels attach great importance to the investigation and management of
health and safety hazards. And we require our subsidiaries to organize safety inspection once every month, under the
leadership of the main managers and the engagement of the heads of workshops. Workshops are required to organize
safety inspection once every month, under the leadership of the workshop directors and the engagement of the team
Evaluation indicators Control objectives leaders. By the end of 2023, the Company had achieved 100% rectification for hazards, with over 95% of hazards
rectified in first re-inspection. If an accident occurs, the Company requires all subsidiaries to seriously implement the
Qualified rate of compliance with the work safety responsibility system 100% principle of ''No Forgiveness''4. While investigating accidents and tracing work safety loopholes, we strive to further
promote safety training, preventive measures, and hazard detection and rectification, to resolutely avoid any ''gap'' in
Pass rate of safety education and training 100%
responsibility or any ''blind spot'' in management. This year, the Company had no work fatalities or serious injuries.
In response to potential safety emergencies, the Company has established comprehensive emergency rescue,
Percentage of special operation personnel licensed to work 100% mitigation and remediation measures and requires each subsidiary to formulate an Emergency Plan for Work Safety
Accidents based on their actual situation, and to set up emergency facilities, prepare emergency equipment and
Rate of controlled sources of danger 100% reserve emergency materials at the site.
Safety responsibility
system
Pass rate of one-time review of hazards (including deferred
rectification)
The Company had achieved
Completeness rate of complete devices, safety signs and emergency
facilities
Completion rate of emergency drills 100%
Intelligent safety management
Work-related fatalities 0
Occupational disease rate 0
Management of work
injuries
Serious accidents 0 Adhering to the principle of ''replacing labor with mechanization, reducing labor with automation, and realizing
unmanned operation with intelligence'', the Company continuously carries out technological transformation and
Minor injury rate per one thousand people 10% equipment upgrading. to promote intelligent and automatic equipment in part of the production process, so as to
ensure the safety by mitigating work safety risk through labor intensity reduction.
This year, the Company vigorously promoted the construction of the intelligent monitoring information platform,
integrating the safety detection alarm data and linkage data into the safety management platform to realize the daily
centralized control and management of health and safety. At the same time, we have implemented intelligent
surveillance violation detection and early warning, and used intelligent analysis technology to analyze and determine
behavioral violations in the surveillance area. We have set up electronic fences to detect violations such as off-duty,
overcrowding and lack of labor protection in real time. If relevant behaviors occur, the system will immediately send
out on-site alarms to stop and correct the violations.
Namely, no forgiveness for the following situations: the cause of the accident has not been investigated; no preventive measures have been taken; the
person responsible for the accident has not been punished; and lessons have not been learned from the accident.
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Improving safety awareness Case Organizing emergency management training to enhance safety awareness of employees
The Company attaches great importance to the cultivation of employees' health and safety awareness, and regularly
This year, Innovation Sheet Material organized offline training on emergency management for 1,300 workers
carries out a variety of occupational health and safety training for employees. We have formulated the Safety Education
in production line and those in charge of work safety. The training includes the general knowledge of
and Retraining Program for Practitioners, which includes monthly training for all employees, team activities, ''three-
emergency, emergency plans (emergency response duties, emergency response procedures and measures,
level'' safety education for new employees, as well as competence training for personnel in different positions. The
etc.), self-rescue and mutual rescue and escape techniques. It also includes the correct use of protective
Company requires subsidiaries to conduct monthly meetings on safety to share and learn the knowledge of safety
facilities such as air respirators, fire extinguishers and safety belts, as well as analyses of typical accident
management. As required by the Company, for companies involved in molten metal production, the total duration of
cases.
training for all employees shall be no less than 20 hours per year; for companies in non-high-risk industries, the total
duration of training for all employees shall be no less than 8 hours per year. During 2023, the Company's employee
safety training participation rate was 100%.
During 2023, the Company's employee safety
training participation rate was 100%.
Innovation new material's highlight health and safety training courses
Professional Technical Training for Front-line Training for New
Safety Training Employees Employees
To enhance the The Company requires The Company requires all
professional competence of team leaders of each shift new employees to receive
business personnel, the to carry out safety systematic and
Company employs education activities in the comprehensive safety
qualified external training morning meeting, management education
agencies to provide training informing about the before work. Among these,
on safety management and situation of on-site safety the duration of pre-service
safety technology review for production and problems training for employees
full-time safety in the previous shift. The involved in molten metal
management personnel, team leaders are required operations shall be no less
production management to declare the risk points, than 72 hours; and the
cadres and special key preventive measures duration of pre-service
operation personnel. and emergency response training for employees of
measures of the team, companies in non-high-risk
check the working status of industries shall be no less
the participants, and than 24 hours. New
conduct random checks on employees will be allowed
the key work of safety to start work only after
production for the team passing a training test.
members.
We require production and operation units to organize comprehensive or special emergency drill at least once every
year, as well as to organize full special drill at least once every three years. We require each production and operation
unit to establish an emergency drill record after the drill and evaluate the drill effect, so as to identify deficiencies and Emergency management training
make continuous improvements.
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Safeguarding occupational health
With regard to occupational hazards, the Company adheres to the comprehensive principles of prevention, control,
reduction and elimination to prevent occupational diseases. In order to effectively deal with the occupational hazards
of different positions, the Company regularly issues standardized occupational protective equipment to employees
and, through education, urges them to use and keep the equipment correctly. At the same time, the Company has
standardized the management of pre-service, in-service and off-service occupational health check-ups, and
established personal health file for every employee. This year, no one in the Company suffered from occupational
diseases.
Case Occupational health management training
In September 2023, Innovation Sheet Material organized offline occupational health management training
for all workers in production line and those in charge of work safety. The training comprehensively covers
the basic knowledge of occupational disease prevention and control regulations, the rights and obligations
of workers in occupational health protection, the main occupational disease hazards and preventive
measures for jobs, as well as the use and maintenance of personal labor protective equipment. The purpose
of the training is to raise employees' awareness of occupational health and to assist them in better
understanding and fulfilling their responsibilities in occupational health.
Occupational health management training
Third-party safety management
The Company incorporates dispatched labors, third-party employees, external construction parties, and other
externally hired personnel into the unified safety management system. The selection of cooperative constructors
requires verification of their qualifications and personal injury insurance covering the construction personnel, and the
licensing of special operators, to ensure that their employees gain the health and safety protection. The Company
signs safety management agreements with external construction units and jointly formulates plans for dangerous
operations, and requires them to carry out safety notification training and assessment before entering the production
plant. In addition, the Company conducts daily and regular safety inspections for external construction units, and
carries out on-site pre-operation hazard inspections monthly to ensure the safety for third-party construction
personnel.
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New Material Management Promote Green Product-led Promote Responsibility- Forge Development
Development Development Driven Development Together
Facilitating Harmonious Social Charitable donations
Development The Company has always insisted on giving back to the society and actively engaged in charitable donations. Based on
our advantages in resources, we have set up ''Lvxingren'', a public welfare organization, to share our achievements
The Company is deeply engaged in public welfare projects, and calls on employees to actively participate in voluntary with the society.
activities to build an image of responsible corporate citizenship. This year, the Company organized and participated in
various projects covering charitable donation, social care, environmental protection and others, in a bid to fulfil its
social responsibility from all aspects and enhance its brand image and social influence.
Case ''Lvxingren'' raised fund to help patients overcome difficulties
Social care To help employee relatives suffering from cerebral
haemorrhage, ''Lvxingren'' issued a fund-raising
initiative, which was supported by the Company's
The Company always pays attention to the needs of disadvantaged groups, and delivers social care in various public cadres and employees with donations. In August 2023,
welfare activities, actively creating a fair and harmonious social atmosphere. ''Lvxingren'' handed over the raised fund to the
beneficiaries, embodying the spirit of solidarity and
fraternity.
Case Visiting homes for the elderly and warming the hearts of the seniors
Charitable donation ceremony
Caring about the seniors, the Company organized
employees to the homes for the elderly in Gaoxin
Town, Xidong Town, Jiaoqiao Town and Weiqiao
Town in Binzhou to visit seniors under centralized
Environmental protection
support and people in exceptional poverty. The
Company's consolation team went with flour, cooking
oil and consolation money, and gained in-depth
understanding of the daily life of the seniors there,
demonstrating our employees' exemplary role in The Company attaches great importance to environmental protection and encourages employees to protect the
dedicating to the society and helping the seniors. environment. We extend the concept of environmental protection to public welfare activities to promote the green and
Distribution of consolation money to the seniors
sustainable development of the society.
Case Enhancing environmental protection awareness to jointly build an innovative home
Case Holding the ''Trinity of Sponsorship'' to help poor students make dreams come true
In November 2023, ''Lvxingren'' carried out activities
Adhering to the concept of ''no poor student dropping
themed on ''Enhancing environmental protection
out of school'', the Company actively carries out the
awareness to jointly build an innovative home''. A total
''Trinity of Sponsorship'' activity to provide more
of 81 employees participated in the activities. They
opportunities for good-performance students from
picked up rubbish at designated places and cleaned
disadvantaged families in poverty-stricken areas to
up along the roads, contributing to the protection of
study, so as to promote equality in education and fulfil
urban ecology.
its social responsibility.
Ceremony of ''Trinity of Sponsorship'' Public welfare activities for environmental protection
Innovation New Material 2023 Environmental, Social and Governance Report
Key ESG Performances5
Environmental KPIs
Key Performance Indicators Unit 2023 Key Performance Indicators Unit 2023
Greenhouse Gas (GHG) Emission Water Resource Usage9
Total GHG emission Tons (CO2 equivalent) 865,967.35 Total water withdrawal Tons 2,647,465.33
• Direct GHG emission (Scope 1) Tons (CO2 equivalent) 387,053.55 Wastewater
• Indirect GHG emission (Scope 2) Tons (CO2 equivalent) 478,913.80 Total compliant industrial wastewater discharges Tons 19,499.00
GHG Emission Intensity Ammonia Nitrogen Discharge
Kg 69.05
By contents of substances in in Wastewater
• Aluminum rods Tons (CO2 equivalent)/tons 0.12 wastewater
Chemical oxygen demand Kg 1,851.89
• Aluminum rods and cables Tons (CO2 equivalent)/tons 0.13
Waste Gas
• Aluminum profiles Tons (CO2 equivalent)/tons 1.09
Sulfur oxides (SOx) emission Tons 20.72
• Aluminum sheets and foils Tons (CO2 equivalent)/tons 0.52
Nitrogen oxides (NOx) emission Tons 208.86
Tons (CO2 equivalent) /10,000
Structural components 10.47
pieces Particulate matter emission Tons 43.78
•
Energy Volatile organic compound (VOC) emission Tons 2.01
Total energy consumption Tons of standard coal 272,109.36 Waste
Total direct energy consumption6 Tons of standard coal 203,646.04 Total hazardous waste generated Tons 61,141.56
• Gasoline Tons 190.56 Total hazardous waste treated Tons 61,676.64
• Diesel Tons 698.16 Total general industrial solid waste generated Tons 637,436.18
• Natural gas Cubic meters 166,541,868.00 Total utilization of general industrial solid waste Tons 562,552.41
Total indirect energy consumption7 kWh 576,592,451.99 Secondary Aluminum Recycling11
• Solar power kWh 19,527,164.00 Total recycling of secondary recycling Tons 698,900.00
• Purchased electricity8 kWh 557,065,287.99
The coverage of the following KPIs is the same as that of the consolidated statements. In case of any discrepancies between the total number and the
sum of the data and ratios disclosed herein, it is due to rounding.
Direct energy consumption covers gasoline, diesel and natural gas. The result is calculated in accordance with the General Rules for Calculation of the
Comprehensive Energy Consumption(GB/T2589-2020).
Indirect energy consumption covers solar power and electricity consumption. The result is calculated in accordance with the General Rules for
Calculation of the Comprehensive Energy Consumption(GB/T2589-2020). 10 Hazardous waste mainly includes aluminum ash, dust removal ash, oil-containing diatomaceous earth, waste oil, waste sludge, and waste rolling oil.
Innovation New Material 2023 Environmental, Social and Governance Report
Social KPIs
Key Performance Indicators Unit 2023 Key Performance Indicators Unit 2023
Employment Employee Training
Total employees Person 10,724
Training coverage % 100
Male Person 7,361
By gender Employee training total time Hours 310,553
Female Person 3,363
Male Hours 207,967
Full-time employees Person 10,724 Total training time by gender
By employment type Female Hours 102,586
Part-time employees Person 0
Male Hours 38.76
Dispatched workers Person 212
Workers besides employees Training time per capita by gender
Dispatched workers from contractors Person 409 Female Hours 37.88
Male management level employees Person 198 Production personnel Hours 49.91
Management level employees Female management level employees Person 24 Sales personnel Hours 60.47
number and proportion by
gender Proportion of male management level employees % 89.19
R&D personnel Hours 69.99
Proportion of female management level employees % 10.81
Training time per capita by employment
Finance personnel Hours 35.95
type
Chinese mainland employees Person 10,671
By region Procurement personnel Hours 48.48
Overseas Territories employees Person 53
Management personnel Hours 71.46
Employee Health and Safety
Lost work time due to work injuries Days 5,710 Other admin and logistics personnel Hours 62.11
Employee 53 R&D Investment
Number of work injury
incidents
Contractor 0 Total R&D investment RMB 10,000 51,431.25
Number of work-related
Number of deaths 0 Total employees on R&D positions Person 814
fatalities
Innovation New Material 2023 Environmental, Social and Governance Report
GRI Standards Index
Key Performance Indicators Unit 2023
Suppliers
Total suppliers12 2,233
For the 2023 reporting period, Innovation New Material prepared report
Statement of Use
Chinese Mainland 2,221 with reference to the GRI Standards.
By region
GRI 1 Used GRI 1: Foundation 2021
Overseas Territories 12
Total level 1 suppliers13 2,233
GRI
Disclosure Chapter(s) in the Report
Total key level 1 suppliers14 91 Standards
Proportion of procurement from key level 1 GRI 2 The Organization and Its Reporting Practices
By level % 74.02
suppliers
None-level 1 key suppliers 0
Entities included in the organization's sustainability
Key suppliers (include level 1 and none-level 1) 91 2-2 About the Report
reporting
Suppliers that passed onsite evaluation 1,500 2-3 Reporting period, frequency and contact point About the Report
Number of suppliers assessed to have significant 2-4 Restatements of information /
actual/potential negative impacts
Percentage of suppliers with significant actual or
Number of suppliers
potential negative impacts that have taken % 0 GRI 2 Activities and Workers
participating in evaluation and
corrective action or improvement plans
training
About Innovation New Material, Building a Sustainable
Number of suppliers with significant 2-6 Activities, value chain and other business relationships
actual/potential negative impacts terminated
Innovation New Materials in Figures
Total number of suppliers supported in corrective 2-7 Employees
action plan implementation
By main operating region (Shandong province) of supplier, proportion of total
% 43
transaction amount GRI 2 Governance
Anti-corruption Sustainable Development Management, Innovation
New Material 2023 Annual Report
Number of corruption lawsuits filed and concluded against the Company or its
employees during the reporting period Nomination and selection
of the highest governance body
Number of discrimination or harassment lawsuits filed and concluded against the
Company or its employees during the reporting period 2-11 Chair of the highest governance body Innovation New Material 2023 Annual Report
Number of customer privacy data lawsuits filed and concluded against the Company Role of the highest governance body in overseeing the
or its employees during the reporting period. management of impacts
Number of conflict of interest lawsuits filed and disposed of against the Company or 2-13 Delegation of responsibility for managing impacts Innovation New Material 2023 Annual Report
its employees during the reporting period
Role of the highest governance body in sustainability
Number of money laundering or insider trading cases filed and concluded against 2-14 Sustainable Development Management
the Company or its employees during the reporting period
Evaluation of the performance of the highest
Innovation New Material 2023 Environmental, Social and Governance Report
GRI GRI
Disclosure Chapter(s) in the Report Disclosure Chapter(s) in the Report
Standards Standards
Proportion of senior management hired from the local
community
GRI 2 Strategy, Policies, and Practices 203-1 Infrastructure investments and services supported Facilitating Harmonious Social Development
Strengthening Business Ethics Construction,
Empowering Employees Growth
GRI 205: Anti-Corruption
Communication and training about anti-corruption
GRI 2 Stakeholder Engagement 205-3 Confirmed incidents of corruption and actions taken Strengthening Business Ethics Construction
GRI 206: Anti-Competitive Behavior
Legal actions for anti-competitive behavior, anti-trust,
GRI 3 Material Topics and monopoly practices
Communications with stakeholders, Materiality issue GRI 207: Tax
analysis
Communications with stakeholders, Materiality issue 207-1 Approach to tax /
analysis
Stakeholder engagement and management of
GRI 201: Economic Performance 207-3 /
concerns related to tax
Financial implications and other risks and
opportunities due to climate change GRI 301: Materials
Defined benefit plan obligations and other retirement Designing Green and Low-carbon products, Practicing
plans Environmental Protection
Designing Green and Low-carbon products, Practicing
Environmental Protection
GRI 202: Market Presence
Ratios of standard entry level wage by gender Designing Green and Low-carbon products, Practicing
compared to local minimum wage Environmental Protection
Innovation New Material 2023 Environmental, Social and Governance Report
GRI GRI
Disclosure Chapter(s) in the Report Disclosure Chapter(s) in the Report
Standards Standards
GRI 302: Energy GRI 306: Waste
Waste generation and significant waste-related
impacts
Reductions in energy requirements of products and 306-4 Waste diverted from disposal Key ESG Performances
services
GRI 303: Water and Effluents 306-5 Waste directed to disposal Key ESG Performances
criteria
and actions to be taken
GRI 401: Employment
GRI 304: Biodiversity
Benefits provided to full-time employees that are not
Operational sites owned, leased, managed in, or 401-2 Empowering Employees' Growth
provided to temporary or parttime employees
biodiversity value outside protected areas
GRI 402: Labor/Management Relations
Significant impacts of activities, products and services
on biodiversity Minimum notice periods regarding
operational changes
GRI 403: Occupational Health and Safety
IUCN Red List species and national conservation list
species with habitats in areas affected by operations
GRI 305: Emissions
Hazard identification, risk assessment, and incident
investigation
Worker participation, consultation, and
Innovation New Materials in Figures, Designing Green 403-5 Worker training on occupational health and safety Protecting Work Safety
and Low-carbon products
Nitrogen oxides (NOx), sulfur oxides (SOx), and other Prevention and mitigation of occupational health and
significant air emissions safety impacts directly linked by business relationships
Innovation New Material 2023 Environmental, Social and Governance Report
GRI GRI
Disclosure Chapter(s) in the Report Disclosure Chapter(s) in the Report
Standard Standard
Workers covered by an occupational health and safety GRI 411: Rights of Indigenous Peoples
management system
Incidents of violations involving rights of indigenous
GRI 404: Training and Education Operations with local community engagement, impact
assessments, and development programs
Operations with significant actual and potential
Programs for upgrading employee skills and transition negative impacts on local communities
assistance programs
GRI 414: Supplier Social Assessment
Percentage of employees receiving regular
performance and career development reviews 414-1 New suppliers that were screened using social criteria Building a Sustainable Value Chain
GRI 405: Diversity and Equal Opportunities
Negative social impacts in the supply chain and
actions taken
GRI 415: Public Policy
Ratio of basic salary and remuneration of women to
men
GRI 406: Non-discrimination
GRI 416: Customer Health and Safety
Incidents of discrimination and corrective actions
taken Assessment of the health and safety impacts of
product and service categories
GRI 407: Freedom of Association and Collective Bargaining
Incidents of non-compliance concerning the health
Operations and suppliers in which the right to freedom Empowering Employee Growth, Building a Sustainable and safety impacts of products and services
of association and collective bargaining may be at risk Value Chain
GRI 417: Marketing and Labeling
GRI 408: Child labor
Operations and suppliers at significant risk for labeling
incidents of child labor
No occurrence of such incidents
GRI 409: Forced or Compulsory Labor service information and labeling
Operations and suppliers at significant risk for Empowering Employee Growth, Building a Sustainable 417-3 Incidents of non-compliance concerning marketing No occurrence of such incidents
incidents of forced or compulsory labor Value Chain communications
GRI 410: Security Practices GRI 418: Customer Privacy
Security personnel trained in human rights policies or Substantiated complaints concerning breaches of
procedures customer privacy and losses of customer data
Innovation New Material 2023 Environmental, Social and Governance Report
Innovation New Material
Technology Co., Ltd.
Environmental,
Social and
Governance
Report
Email: zqb@innovationmetal.com
Tel: 010-66536198
Address: No. 1808, Floor 18, Excel Centre, Wudinghou Street, Xicheng District, Beijing
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