China Northern Rare Earth (Group) High-Tech Co., Ltd. Stock code﹕600111
Environmental, Social and
Governance Report
China Northern Rare Earth (Group) High-Tech Co., Ltd.
中国北方稀土
Address: 83 Huanghe Rd, Baotou Rare Earth High-Tech Industrial
Development Zone, Baotou, Inner Mongolia Autonomous Region
Tel: 0086-0472-2207799
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
About this Report
Introduction This Report is the third environmental, social and governance report (this “Report”) released by China
Northern Rare Earth (Group) High-Tech Co., Ltd. to disclose and exhibit Company’s performance in
Data All information and data presented in this Report are from publicly available materials provided by
governmental agencies, as well as the Company’s formal documents, public disclosures and internal
environmental, social and governance aspects to the stakeholders. This Report has been reviewed by Source statistics. Financial data referenced herein is sourced from the audited financial statements in the
the Company, which will be responsible for the authenticity and validity of the information contained 2024 Annual Report. Unless stated otherwise, all monetary amounts are denominated in Chinese
herein. yuan.
Reporting The reporting period is from January 1, 2024, to December 31, 2024, unless stated otherwise. To
ensure the Report’s completeness, some information extends beyond this specified period.
Basis of Guidelines No.14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—
Period
Sustainability Report (Trial)
Preparation Reference of ESG Indicators System for ESG Reports of Listed Companies Controlled by Central
State-owned Enterprises published by the State-owned Assets Supervision and Administration
Commission of the State Council
IFRS Sustainability Disclosure Standards S1 — General Requirements for Disclosure of
Reporting Unless stated otherwise, this Report is about the China Northern Rare Earth (Group) High-Tech Co.,
Ltd., covering its headquarters, branches and subsidiaries, with the scope of data disclosure that is Sustainability-related Financial Information and IFRS Sustainability Disclosure Standards S2 —
Scope identical to the scope of the consolidated financial statements. Any deviation from the scope will be Climate-related Disclosures issued by the International Sustainability Standards Board（ISSB）
specified in the Report. Sustainability Reporting Standards published by Global Reporting Initiative (GRI)
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Abbreviations and Glossary
Unless otherwise indicated in the context, the terms used shall have the following meanings in this report:
Definitions of frequently used terms Definitions of frequently used terms
Northern Rare Earth, the Company, Ningbo Zhaobao refers to Ningbo Zhaobao Magnet Co., Ltd.
refers to China Northern Rare Earth (Group) High-Tech Co., Ltd.
We
Suzhou Torin refers to Suzhou Torin Drive Equipment Co., Ltd.
Baogang, Baogang Group refers to Baotou Iron and Steel (Group) Co., Ltd.
Souwest Magnetech refers to Ningbo Souwest Magnetech Development Co., Ltd.
Smelting Branch refers to Smelting Branch of Northern Rare Earth
Northern Rare Earth Recycling Resources (Darhan-
Recycling Resources refers to
Huamei refers to Baotou Huamei Rare-Earth High-Tech Co., Ltd. Muminggan Joint Banner) Co., Ltd.
Inner Mongolia Northern Rare Earth Magnetic Materials Company Law refers to The Company Law of the People’s Republic of China
Northern Magnetic Materials refers to
Co., Ltd.
Securities Law refers to The Securities Law of the People’s Republic of China
Huaxing Rare Earth refers to Baotou Huaxing Rare Earth Technology Co., Ltd.
SSE refers to Shanghai Stock Exchange
Hefa refers to Baogang Steel Hefa Rare Earth Co., Ltd.
The largest base for rare earth new materials in China
Zibo Lingzhi refers to Zibo Baogang Lingzhi Rare Earth Hi-tech Co., Ltd. Two Rare Earth Bases refers to and a leading base for rare earth applications across the
world
Gansu Rare Earth refers to Gansu Rare Earth New Materials Co., Ltd.
RMB 1 yuan, RMB 10,000 yuan, RMB 100 million yuan,
Yuan, 10,000 yuan, 100 million yuan refers to
Energy Conservation & Environmental Baogang Group Energy Conservation & Environmental the legal currency of China
refers to
Protection Protection Technology Industry Co., Ltd.
Reporting Period refers to From January 1, 2024 to December 31, 2024
BRIRE refers to Baotou Research Institute of Rare Earths
ESG refers to Environmental, Social and Governance
Xi'aoke refers to Inner Mongolia Xi’aoke Hydrogen Storage Alloy Co, Ltd.
Inner Mongolia Baotou Rare Earth International Trading
International Trading refers to
Co., Ltd.
Board This report has received thorough review and approval during the second session of the ninth Board
of Directors Northern Rare Earth. The Board and Directors affirm that the information contained
Tianjiao Seimi refers to Baotou Tianjiao Seimi Rare Earth Polishing Powder Co., Ltd. Statement in this report accurately reflects Northern Rare Earth’s status, containing no false information,
misleading statements, or significant omissions, and assume legal responsibility for the authenticity,
Ruixin refers to Baotou Ruixin Rare Earth Metal Materials Co., Ltd.
accuracy, and completeness of the information presented herein.
Jingrui refers to Baotou Jingrui Advanced Materials Co., Ltd.
Report This Report is released in the form of electronic version and can be obtained from the website of the
Xinfeng Xinli refers to Xinfeng County Baogang Xinli Rare Earths Co., Ltd.
Release Shanghai Stock Exchange (www.sse.com.cn) and the official website of the Company (www.reht.com).
Jinmeng refers to Baotou Jinmeng Rare Earth Co., Ltd.
ZXAT refers to ZXAT New Materials (Inner Mongolia) Co., Ltd.
Readers To continuously improve the Company's ESG management, enhance the quality of ESG information
disclosure and drive the Company to effectively implement the ESG development strategy, we would
Northern Jiaxuan refers to Inner Mongolia Northern Jiaxuan Technology Co., Ltd. Feedback like to solicit opinions from readers for this Report (as detailed in Appendix II “Reader Feedback
Form”). We welcome your opinions and comments submitted to the following email address:
Northern Zhaobao Magnetic Industry (Inner Mongolia)
Northern Zhaobao refers to cnrezqb@126.com.
Co., Ltd.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Message from the Chairman
In 2024, the People’s Republic of China celebrated its 75th anniversary, marking a pivotal year for
Northern Rare Earth. During this time, we effectively implemented the directives of General Secretary Xi
Jinping during his inspection of Inner Mongolia by assuming primary responsibility for the development
of the Two Rare Earth Bases. This year was also critical for executing our 14th Five-Year Plan.
Throughout the past year, Northern Rare Earth has steadfastly pursued its founding mission, diligently
embracing the new development concept by complete and accurate application. We have accelerated
the establishment of a new development framework, prioritizing innovation-led growth while committing
Liu Peixun
to environmentally sustainable practices. Furthermore, we have enhanced our corporate governance
and deepened internal reform as a state-owned enterprise, ensuring a robust framework for social Secretary of the Party Committee
responsibility. Notably, we have achieved further advancements in our ESG management performance, and Chairman of the Board
heading steadily high-quality and sustainable development. Our concerted efforts have laid a strong
foundation for future success and resilience in a rapidly evolving economic landscape.
Over the past year, we have made new achievements in leading the low-carbon and green development. Underpinned by sustainable Over the past year, we have made progress in lawful, compliant, and honest operations. We remained committed to advancing our State-
principles, we have completed and operationalized the first phase of our next-generation green mining, beneficiation, and smelting upgrade project Owned Enterprise (SOE) reform. We have optimized our corporate governance and enhanced standardized practices, thereby modernizing our
for rare earths. As a frontrunner in the industry, we conducted the first comprehensive self-examination for greenhouse gas emissions of industrial- management efficiency. By prioritizing efficiency, profitability, and compliance, we have successfully implemented institutional reforms through
chain, and built the inaugural carbon accounting platform in the rare earth sector. This initiative has enhanced our precise carbon management management innovation, lean practices, and comprehensive performance evaluations. By means of the refinement of our governance structures
capabilities. Additionally, we released four Environmental Product Declaration (EPD) reports for rare earth products. In a further demonstration of and institutional mechanisms, we have significantly heightened the effectiveness and performance of all governing entities. In our commitment to
leadership, we played a pivotal role in formulating the industry standard, titled Green Factory Evaluation Requirements for Rare Earth Polishing compliance management, we have proactively aligned with high-standard international frameworks. Notably, Northern Rare Earth and its affiliates—
Powder. Advancing our digital-intelligent transformation, we have established a high-standard green manufacturing system, with subsidiaries such including the Smelting Branch and International Trading—attained dual certifications for ISO 37301:2021 and GB/T 35770-2022, marking it as
as Hefa, Huaxing Rare Earth, and Xi'aoke receiving Green Factory certification in the Inner Mongolia Autonomous Region. We have strengthened the first SOE in Inner Mongolia with such achievement and underscoring our unwavering dedication to compliance operations. Furthermore, we
environmental protection infrastructure development, significantly enhancing pollution reduction and treatment capabilities and resource recycling enhanced our environmental, social, and governance (ESG) practices and market capitalization management by establishing robust ESG frameworks
efficiency. and promoting awareness. More ESG information reporting helped Company’s governance and recognition of improved ratings as well as multiple
accolades in the capital markets. By strategically integrating market capitalization initiatives with long-term planning, we executed a series of
Over the past year, we have seen new advancements in shared development of a harmonious enterprise. We unequivocally demonstrated mergers and acquisitions, strengthened our disclosures and investor relations, optimized cash dividends, and efficiently managed our capital
our commitment to national priorities while fulfilling our foundational mission. Operating under the guiding principles of innovation-driven growth, operations. As a result of these focused efforts, we have solidified our standing as the highest-valued listed company in the rare earth permanent
collaborative engagement, and people-centered development, we have made substantial progress across supply and industrial chains while magnet industry.
proactively addressing our social responsibilities. In strict accordance with national rare earth industry strategies, we have rigorously implemented
state-mandated production quotas. This approach has ensured a stable supply of high-quality products and services, thereby reinforcing market Where the heart desires, one can indeed advance. By pursuing our ambitions with unwavering resolve, we are poised to transform our aspirations
price stability and operational reliability. Through strategic mergers, including the acquisition of ZXAT and the establishment of a joint venture, into reality. Looking ahead, we will steadfastly adhere to the principles of Xi Jinping Thought on Socialism with Chinese Characteristics for a New
Northern Zhaobao, we have significantly enhanced and diversified our industrial frameworks. These initiatives have facilitated upstream and Era. We will ground our initiatives in a comprehensive understanding of the broader socio-economic landscape while systematically planning the
downstream synergies, and optimized value creation. As a pivotal national force in rare earth science, Northern Rare Earth has undertaken a evolution of our industry. Our strategic focus entails accelerating the development of new quality productive forces while continuously enhancing
multitude of state-level research and development projects, achieving significant breakthroughs. We have created China’s inaugural National our performance in ESG management and fulfilment of duties. We shoulder critical responsibility for the establishment of the Two Rare Earth Bases,
Technical Standard Innovation Base for rare earth elements. We have also spearheaded the formulation of the first international standard for the and we are committed to expediting our progress toward becoming a world-class leader in the rare earth sector. Collaborating closely with all
global rare earth industry to facilitate technological advancement. In addition to our business endeavors, we have taken social welfare initiatives stakeholders, we will embody our corporate responsibilities as we embark on this new journey. Together, we will contribute to the comprehensive
that promote energy-saving and low-carbon technologies, and provided support for rural revitalization. Central to our mission is a steadfast focus advancement of a modern socialist country and co-author a transformative chapter in building the nation with robust rare earth industry.
on employee wellbeing. By initiating multiple types of staff care, cultivating family-friendly workplaces, and fostering inclusive cultures, we have
significantly enhanced staff satisfaction.
Contents
About this Report 01
Governance Quality Leadership for Social Responsibility
Message from the Chairman 05
Optimization for Solid Operational in Common
About Northern Rare Earth 09
Foundation Excellence Prosperity
ESG Management 21
Governance Effectiveness 35 Product Quality 81 Rural Revitalization Support 125
Compliant Operations 37 Safety Bottom Line 85 Public Welfare 126
Development Empowered by Digital and 42
Responsibility for Customers 93
Intelligent Forces
Rights and Interests of Shareholders 50 Green Procurement Practices 95
Technological Innovation 97
Topic
The Innovation and Intelligence Engine
is steering the development of the Two
Rare Earth Bases and poised to outline a
transformative blueprint for the green
industry
Strategic Navigation: New Chapter in 28 Green Transition People Centered Outlook 130
High-Quality Development
toward Harmonious Growth in Love Appendix I: Index of Indicators 131
Innovation-Driven: New Engine for Industrial
Advancement Coexistence Rights and Interests of Employees 109
Appendix II: Reader Feedback Form 143
Green Technologies: New Benchmarks for 30
Ecological Transition Ecological Environment Management 55 Employee Development 112
Climate Change 59 Occupational Health 117
Resource Efficiency 64 Employee Life 119
Pollution Prevention and Control 71
Green Living 76
中国北方稀土
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
About Northern Rare Earth
Currently, the Company possesses nine state-level scientific and technological innovation platforms, including the State Key
Company Profile Laboratory for Research and Comprehensive Utilization of Baiyun Obo Rare Earth Resources, the National Innovation Center for
Rare Earth Functional Materials, the National Technical Standard Innovation Base (Rare Earth), and the Rare Earth New Material
China Northern Rare Earth (Group) High-Tech Co., Ltd. was established in 1961 and Testing and Evaluation Platform (Rare Earth Industry Center). Notably, the Rare Earth New Material Testing and Evaluation
operates as a subsidiary of Baogang (Group) Co., Ltd. Notably, in 1997, it was listed on Key Performance Platform is the sole platform sanctioned by the Ministry of Industry and Information Technology in the rare earth sector,
the Shanghai Stock Exchange (SSE), recognized as China’s Premier Rare Earth Stock. underscoring its unique significance. In addition to these platforms, the Company is home to two national-level enterprise
In 2015, Northern Rare Earth took the lead in establising the nation's first rare earth technology centers: the Technology Center of China Northern Rare Earth (Group) High-Tech Co., Ltd. and the Technology Center
Number of Branches
group, successfully instituting centralized and unified management of light rare earth of Gansu Rare Earth New Materials Co., Ltd. Furthermore, it operates two national-level post-doctoral research workstations—the
and Subsidiaries Post-doctoral Workstation of Baotou Research Institute of Rare Earths and the Post-doctoral Workstation of China Northern Rare
resources in northern China. Today, Northern Rare Earth has a robust infrastructure
comprising 42 affiliates including branches and subsidiaries, employing more than Earth. The Company also has an impressive array of 16 provincial (autonomous region-level) technological innovation platforms,
the country. As a globally recognized leader in the rare earth industry, the Company the Inner Mongolia Autonomous Region Key Laboratory of Rare Earth Functional Materials, and the Technology Innovation Center
Employees over
for Rare Earth New Materials.
has achieved remarkable cross-regional, cross-ownership, and multi-sector synergy,
positioning itself as the largest, highest-output, and most profitable integrated
rare earth enterprise in the world. Its excellence spans production, research and
development, and trade, affirming its dominant role in the global rare earth market. Distribution
National-Level Post-
State-Level Scientific
Doctoral Research
and Technological Provincial (autonomous
Utilizing the distinct resource advantages inherent to the Baiyun Obo Mine, Northern Workstations
Innovation Platforms region-level)
Rare Earth has successfully established the world’s largest production base for raw Technological Innovation
Provinces (municipalities and Platforms
materials and rare earth functional materials. The Company possesses the capacity
autonomous regions)
to manufacture 11 major categories of rare earth products, encompassing over 100 National-Level
Enterprise Technology
varieties and nearly 1,000 specifications. With an annual smelting and separation
Centers
capacity of over 200,000 tons and a rare earth metal production capacity of 42,000
tons, Northern Rare Earth ranks as the world’s top supplier of rare earth raw materials.
In the realm of rare earth functional materials, it achieved an annual production
capacity of 100,000 tons in magnetic alloys, making it the largest producer in the
world; the polishing materials of 36,000 tons per year, claiming over 50 percent of
the domestic market share; and the hydrogen storage alloys of 8,300 tons per year. It
also produces catalysts, generating 20,000 units each year. Furthermore, the Company
produces 1,270 rare earth permanent magnet motors annually.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Corporate Culture Overview of Products
Category and Name Applications
Used in manufacturing special alloys, precision optical glass, high-refractive-
Lanthanum oxide
Northern Rare Earth Northern Rare Earth index optical fiber panels, ceramic capacitors and others.
Used in producing among others, special alloys, rare earth catalytic materials,
Cerium oxide
Vision Mission rare earth colorants, and rare earth thermal stabilizers.
Rare earth polishing materials, agricultural fertilizers, and water treatment
Becoming A World-class To Develop and Expand Lanthanum-cerium carbonate
China’s Rare Earth systems.
Leader in the Rare Earth Raw
Industrial Chain and Build
Sector materials Praseodymium-neodymium
A High-Quality Ecological Rare earth metals, electronic industry and others.
Framework for Rare Earth
Sector Praseodymium-neodymium Magnetic materials
metal
Neodymium Metal Magnetic materials
Lanthanum-Cerium Metal Hydrogen storage materials, flint (for lighters) and others.
Northern Rare Earth Northern Rare Earth
Lanthanum metal Hydrogen storage materials, fuel cells, and rare earth alloys.
Cerium metal Hydrogen storage materials, magnetic materials, fuel cells, and rare earth alloys.
Core Values Spirit
Improve Ourselves, Relentless Resilience, Drive motors, servo motors, micro/special motors.
Empower the Society Beyond Competency Magnetic materials Among these, samarium-cobalt (SmCo) permanent magnets serve as
critical materials for China’s Shenzhou spacecraft series.
Nickel-Metal Hydride (Ni-MH) batteries, and hydrogen storage &
Hydrogen storage materials
transportation.
Materials
LCD/hard disk glass substrates, smartphone cover glass, crystal
Polishing materials rhinestone jewelry, conventional & precision optical components,
semiconductor photomasks and integrated circuits.
Catalytic materials Automotive exhaust purification, and industrial waste gas treatment.
Corporate Mascot Rare earth alloys Steel production, construction materials, and automotive manufacturing.
Bao Xiaoxi is a winged divine horse, symbolically portrayed as a white
Mongolian steed. The choice of white represents rarity, hope, and Wind power, new energy vehicles, electronic communication, and high-
Products Permanent magnet motors
end healthcare.
unwavering determination. The horse’s wings are depicted in a technology-
inspired blue. Encircling its neck is a collar embellished with the 17 rare earth
elements, which signifies the strategic importance of the resource industry.
Samarium oxide Magnetic materials, ceramics, glass, electronic components and others.
Collectively, these elements illustrate how technological advancement and
Europium oxide Phosphors, optical materials, etc.
the development of new quality productive forces empower Northern Rare
Earth to ascend to new heights. In this context, rare earth materials and Gadolinium oxide Electronic components, medical and healthcare, etc.
other emerging industries can be viewed as the wings of progress. Medium- Terbium oxide Alloys, magnetic materials, phosphors, etc.
heavy rare
earths Dysprosium oxide Alloys, magnetic materials, phosphors, etc.
Holmium oxide Optical communication devices, medical and healthcare, etc.
Erbium oxide Ceramics, optical materials, laser applications, etc.
Lutetium oxide Optical materials, laser applications, semiconductors, and so on.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Awards and Honors Benchmark Enterprise in the SASAC’s
The End-to-End Rare Earth Digital-Intelligent
Management Smart Factory, recognized as a 2024
Sci-Tech Reform Initiative Excellence-Level Smart Factory (First Batch)
State-owned Assets Supervision and Ministry of Industry and Information Technology
Administration Commission of the State Council
Top 100 Companies at the Second
Included in 2024 China Corporate ESG 100 Index Guoxin Cup ESG Golden Bull Award
People’s Daily China Securities Journal Baotou Rare Earth Products Exchange was recognized
Flagship Enterprise under the National as a 2024 Outstanding Case of Real-Digital Integration
Quality Empowerment Strategy in China’s Commodity Sector
State Administration for Market Regulation Commodity Trading Market Circulation Branch,
China Federation of Logistics & Purchasing (CFLP)
Golden Quality ESG Award Top 100 A-share Listed Companies
Shanghai Securities News Securities Times Gansu Rare Earth’s 11,000-ton per year solvent extraction Ningbo Baogang Zhanhao’s 10,000-ton per
production line, recognized as a Digital Workshop in Smart year strip recognized as a 2023 Ningbo Digital
Manufacturing System Construction by Gansu Province Workshop in Ningbo
Department of Industry and Information Technology of Ningbo, Zhejiang
Gansu Province
Top 100 A-share Listed Companies Outstanding ESG Practice Award
Phoenix Television Hong Kong ESG Reporting Awards
Development Benchmark Enterprise Recognized Brands
Department of Agriculture and Animal Husbandry, Department of Agriculture and Animal Husbandry,
Development and Reform Commission, and Development and Reform Commission, and
Department of Industry and Information, Federation Department of Industry and Information,
Best Listed Companies 2024 Capital Market Value Awards - of Industry and Commerce, and Brand Promotion Federation of Industry and Commerce, and Brand Promotion
Enterprise of the Year (Impact Category) Association in Inner Mongolia Autonomous Region Association in Inner Mongolia Autonomous Region
New Fortune magazine
Yi Cai Media Group
Northern Rare Earth, Northern Magnetic Materials
Champion” Enterprise Manufacturing “Single Champion” Enterprises
A-Rating (Outstanding) Department of Industry and Information Department of Industry and Information Technology
Award for Listed Companies
Technology of Inner Mongolia Autonomous Region of Inner Mongolia Autonomous Region, Department of
Shanghai Stock Exchange China Securities Journal Industry and Information Technology of Jiangxi Province
ZXAT and Xinfeng Xinli, recognized as SRDI Tianjiao Qingmei, Huaxing Rare Earth, Jinmeng, ZXAT,
Huamei Tunnel Kiln Automation Project in smelting (specialized, refinement, differential, innovation) and Xinfeng Xinli, recognized as Innovative Small/
sector, recognized as the 2024 Best Practices of
Development by Listed Companies
Digital Transformation in China’s Listed Companies Department of Industry and Information Technology Department of Industry and Information Technology
China Association for Public Companies of Inner Mongolia Autonomous Region, Department of of Inner Mongolia Autonomous Region, Department of
China Association for Public Companies
Industry and Information Technology of Jiangxi Province Industry and Information Technology of Jiangxi Province
Best Cases for 2023 Earnings 2024 Outstanding Board Office Practice 2023-2024 National Outstanding Ideological and Gansu Rare Earth received the Fifth Government
Briefing Case among Listed Companies Political Work Unit in Metallurgical Industry Quality Award of Baiyin City
China Association for Public Companies China Association for Public Companies
The Metallurgical Enterprises Political Work Baiyin Municipal People’s Government
Association of China
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Technology Awards Awards for Standards
Award Technology Issuing institution Award Technology Issuing institution
Key Technology for Metallurgical
Quality Control in High-Performance The Chinese Society of Rare Earths 1st Prize for Outstanding
Science and Technology for Sintered Rare Earth Permanent Magnet SAC/TC229
Rare Earth-Containing Magnesium Association of China Rare Earth Industry Technical Standards
Awards Assemblies
Alloys and its Applications
The Nonferrous Metals Society of China SAC/TC229
and Technology Awards of of Critical International Rare Earth Technical Standards Storage Alloys for Solid-State Hydrogen Storage
China Non-Ferrous Metals Industry
Chinese Non-ferrous Metal Standards-Rare Earth Terminology
Association
Industry Series
SAC/TC229
Research and Development, and Technical Standards Metal Targets
The Chinese Society of Rare Earths
Science and Technology for the Reduction of Precious Metals National Standard - Chemical Analysis of Non-
Association of China Rare Earth Industry
Awards and the Enhancement of Stability in Rare Earth Impurities in Rare Earth Metals and
Rare Earth-Based Catalysts 3rd Prize for Outstanding
Their Oxides - Part 21: Determination of Sulfate SAC/TC229
Technical Standards
Research on Key Technologies Content in Rare Earth Oxides - Barium Sulfate
The Chinese Society of Rare Earths
Science and Technology Dispersed Nano-Ceria via Spray
Association of China Rare Earth Industry
Awards Pyrolysis of Rare Earth Extraction 3rd Prize for Outstanding Industry Standard - Rare Earth Polishing Powder
SAC/TC229
Separation Liquors Technical Standards for LCD Glass Substrates
The Chinese Society of Rare Earths
Science and Technology Process for High-Salinity Wastewater
Association of China Rare Earth Industry
Awards in Rare Earth Industry
The Chinese Society of Rare Earths
Science and Technology Detection Technologies in Ultra-High
Association of China Rare Earth Industry
Awards Purity Rare Earth Analysis
China Iron & Steel Association
Science and Technology Technologies for High-Quality Rare
The Chinese Society for Metals
Awards Earth Master Alloy Production
China Iron & Steel Association
Science and Technology Earth Permanent Magnet Drive Motor
The Chinese Society for Metals
Awards Systems
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
A new heavy rare earth mineral, Baiyun Yttrium-Barium Ningbo Baogang Zhanhao’s 10,000-ton per year strip casting The innovation base established by Northern Rare Earth received formal approval, Northern Rare Earth was recognized as a
Ore, was discovered in Baiyun Obo. flakes production facility was recognized as a 2023 Ningbo signifying the establishment of the only national technical standard innovation base high-skilled talent training base at the Inner
Digital Workshop in Ningbo. in China’s rare earth sector at Northern Rare Earth. Mongolia Autonomous Region level, marking
The Rare Earth Heat Insulation Coating and Rare Earth
a significant achievement as it became the
Coated Glass, developed by the BRIRE Tianjin Branch, For the first time, Northern Rare Earth developed and published the Vocational
first enterprise in the region’s rare earth
was included in the 2023 Recommended Catalogue Skill Standard of Northern Rare Earths in effectively addressing a critical gap in
industry to receive this esteemed honor.
of Technologies and Products for Ecological and vocational skill standards within the country’s rare earth industry.
Environmental Governance under the Belt and Road
Initiative.
Jan Mar Apr
Feb
Northern Rare Earth entered into a tripartite agreement with Fudan University and Inner
Mongolia University to establish the Northern Rare Earth - Fudan University - Inner Mongolia Northern Rare Earth was positioned
The Rare-Earth Infrared-Reflective
University Rare Earth Materials Research Joint Laboratory. This collaboration is poised to among the top ten entities in China’s
Hollow Insulating Polyamide Fiber
significantly advance research and development in several key areas, including precision brand value within the metallurgy and
jointly developed by BRIRE Tianjin The international standard titled Praseodymium-Neodymium Metal developed
polishing technologies, lanthanum-cerium material applications, novel materials for energy nonferrous metals sector.
Branch and Tianjin Branch of by the BRIRE was officially registered with the International Organization for
conversion and storage, and biomedical applications. China Textile Academy earned the Standardization (ISO). This milestone marks it as the first international standard
distinction of being recognized as the for rare earth products to be approved and initiated by ISO/TC298.
The group standard titled Technical Requirements for Low-Pressure Solid-State Hydrogen
Top Ten Scientific and Technological
Storage, developed under the main leadership of the BRIRE, was officially released on 中
国
Achievements in 2024 by GENERTEC 北
China’s National Group Standards Information Platform. This standard establishes essential 方
稀
China Textile Academy. 土
technical specifications that will play a pivotal role in advancing the commercialization of
low-pressure solid-state hydrogen storage solutions.
Northern Rare Earth was named a National Pioneering Enterprise in Rare Earth New Materials.
Aug Jul Jun May
Northern Rare Earth initiated the Safety Specification for Rare Earth
Smelting project, marking the establishment of the first safety standard The Northern Rare Earth High-End Magnetic Materials
for rare earth smelting in China. Academician Workstation, collaboratively established with
Hefa, Huaxing Rare Earth, and Xi'aoke received Northern Rare Earth and its affiliates— including the Smelting Branch and
Academician Jiang Chengbao from the Chinese Academy
Green Factory certification in the Inner Mongolia Two industry standards have been officially implemented: the Technical International Trading—achieved dual certifications for ISO 37301:2021 and
of Sciences, received official registration from the following
Autonomous Region. Specification for the Evaluation of Green Design Products - Rare Earth GB/T 35770-2022, marking it as the first SOE with the accomplishment in
entities: the Inner Mongolia Department of Science and
Polishing Powder (XB/T808-2023) and the Evaluation Requirements for Inner Mongolia.
Technology, the Organization Department of the Party
The Smelting Branch attained Level 3 (Integrated) Green Factories of Rare Earth Polishing Powder (XB/T812-2023), both led
The first automatic batching line system in China’s neodymium-iron-boron Committee, and the Inner Mongolia Association for Science
Certification in the Smart Manufacturing Capability by Tianjiao Qingmei.
strip-casting alloy industry, jointly developed by Magnetic Materials, has and Technology.
Maturity Assessment, positioning itself as the first rare
earth enterprise in China to achieve this distinction in Gansu Rare Earth’s extraction and separation production line, with an been in full production.
The End-to-End Rare Earth Digital-Intelligent Management
the production processes of rare earth carbonate and annual capacity of 11,000 tons, has been recognized as one of the
Baotou Rare Earth Products Exchange was recognized as a 2024 Smart Factory from Northern Rare Earth was recognized
oxide. Digital Workshops in the latest cohort of Gansu Province’s intelligent
Outstanding Case of Real-Digital Integration in China’s Commodity Sector. as a Ministry of Industry and Information Technology 2024
manufacturing system initiative.
Excellence-Level Smart Factory (First Batch) in China’s
The first phase of the green smelting upgrading and transformation national evaluation.
project at Northern Rare Earth has been put into operation.
Sept Oct Nov Dec
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Environmental
Operation
Performance
performance Special environmental protection Percentage of the Company and
Net assets attributable to the parent Revenue
Total assets
expenditure its affiliates with environmental
company
management certification
billion yuan
billion yuan billion yuan
billion yuan
Environmental protection training Comprehensive energy
Total profit Net income attributable to the parent
sessions consumption per unit of output
company
billion yuan 1.004 billion yuan
kgce/tREO
Governance
Performance Social
Party Committee meetings General meetings Board meetings Performance
revenue ratio
Supervisory Committee Management meetings at Meetings of special 100 million yuan 5.11%
meetings General Manager level committees
Special meetings of Percentage of independent Distribution of cash
independent directors directors dividends in 2023
Total training expenditure Occupational health Employee care and
examination coverage assistance
% billion yuan
million yua
% million yuan
Rural revitalization Public welfare Volunteering duration
expenditure expenditure
Hours
million yuan million yuan
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
ESG Management Board of Directors
ESG Management System Evaluate and approve the Company’s ESG strategic planning, objectives, framework,
and policies;
The Company is committed to the continuous enhancement of its corporate governance and the elevation of its ESG
Assess the relevant ESG-related risks and their materiality to the Company;
management practices. It has established a robust ESG management framework, which comprises three integral levels:
Review and endorse the disclosure of pertinent information, including the Company’s
the Board of Directors, the Strategy and ESG Committee, and the ESG Working Groups. This structure provides a solid
ESG report;
organizational foundation for advancing the Company’s ESG governance, thereby facilitating the effective implementation of
Examine any major negative ESG events that may arise; and
ESG considerations across all levels of the Company.
Oversee the effective implementation of the Company’s ESG management operations.
The Company has established comprehensive Guidelines on Environmental, Social, and Governance (ESG) Management that
integrate ESG considerations into its strategic and operational frameworks. By incorporating ESG factors into its business
development and operational management processes, the Company effectively fulfills its ESG responsibilities and meets the
Strategy and ESG Committee
diverse expectations of its stakeholders.
The Company enhances its ESG management system by establishing a comprehensive ESG indicator management Formulate and propose updates to the corporate ESG policies, encompassing key
framework. It strengthens the integration and mutual reinforcement between conceptual implementation and operational areas such as climate change, health and safety, environmental stewardship, human
management. Furthermore, the Company compiles and discloses high-quality annual reports on its ESG performance, rights, and anti-corruption. It is imperative to ensure that the Company’s position
effectively presenting its performances. As a result, the Company has improved its ESG ratings and was recognized as an and performance on global ESG issues align with the times and international
Outstanding Practice Cases of Listed Companies in 2024 by China Association for Public Companies. Additionally, it has standards;
received several prestigious awards in the capital market, including the Top 100 of the Second Guoxin Cup ESG Golden Advise on climate change response initiatives, greenhouse gas (GHG) reduction
Bull Award and the Golden Quality ESG Award, thereby providing robust ESG management support for its high-quality targets, green product development, clean energy technology adoption, and
development. operational safety and stability protocols;
Conduct studies, analysis, and risk assessments on ESG matters, and propose ESG
strategies, targets, and policy enhancements;
Coordinate and monitor ESG policy implementation, management performance, and
goal attainment progress, and provide corrective action recommendations;
Review and submit ESG reports to the Board of Directors;
Evaluate material ESG-related matters requiring board-level attention; and
Board of Directors Exercise other ESG-related authorization granted by the Board of Directors.
ESG Working Group
Research and formulate ESG policies and action plans aligned with the Company’s
Strategy and ESG Committee
strategy and ESG objectives;
Oversee day-to-day ESG-related risks and matters, which include compliance
monitoring and incident response protocols;
Liaise with relevant functions, subsidiaries and branches to ensure effective ESG
implementation and resolve any execution bottlenecks;
Collect, consolidate, and draft ESG disclosure documents for ESG information
ESG Working Group disclosure; and
Other ESG tasks.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Communication with Stakeholders
The Company has set regular and efficient communication channels with stakeholders given the industry’s characteristics
and operational dynamics. We identify stakeholder expectations and address their needs to enhance our ESG performance.
Stakeholders Stakeholder expectations Our actions and responses Stakeholders Stakeholder expectations Our actions and responses
Developing strategies and management Taking part in industrial activities
•Industry contribution
framework Developing relevant standards
•Green transformation
•Strategic response Holding formal meetings in accordance Enhancing technology research and
•Digital transformation
•Modern corporate governance with laws Industry associations development
Board of Directors
•Risk and compliance management Improving risk control and internal
Supervisory Committee
•Brand and image management control framework
Management Level
Obtaining compliance certifications Optimizing supplier management
Monitoring the public opinion procedures
•Supply chain management
Enhancing technology research and
•Green transformation
development
•Technological innovation
Improving staff management system Partners Performing Industry-University-Research
•Equal opportunities in employment
Organizing comprehensive safety Institute (IUR) cooperation
•Protection of interests and rights
inspections
•Occupational health and safety
Hosting cultural and sports activities
Employees •Development and promotion
Improving promotion mechanism Taking part in industrial activities
•Industry contribution
Hosting environmental protection
•Ecological governance
Media awareness campaigns
•Product quality and safety Enhancing after-sale management
•Communication mechanisms and procedure
•channels Creating complaint channels
Customers •Strategic response Respond to national strategies.
•Modern corporate governance Improving management system
Governmental bodies
•Business ethics Building the compliance system
and regulators
Holding general meetings
Improving risk control and internal
•Modern corporate governance control framework
•Investor relations management Obtaining compliance certifications Engaging with communities around our
•Community relationship
External investors •Risk and compliance management Coordinating investor visits and research project sites
•Rural revitalization
Shareholders •Performance growth Holding earnings briefings Contributing to rural revitalization
NGOs •Activities for the public interests
Attending brokerage investment Communities Organizing public welfare activities
conferences
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Double Materiality Analysis Matrix of Material Issues
The Company applied the Double Materiality principle (impact materiality and financial materiality) to conduct an online
questionnaire distributed to senior management and stakeholders. This approach enables a comprehensive analysis of
stakeholder perspectives and expectations and facilitates the establishment of the 2024 Double Materiality Matrix, which
represents priority of ESG issues. Innovation-Driven
Development
Employee Training and Development
Occupational Health & Safety
Determination of Double Materiality Issues Equal Employment and Labor
Practices
Climate Change
Mitigation
Emissions Product Safety
Energy Efficiency
Management & Quality
& Utilization
Investor Rights Protection
Customer Service and Communication
Supply Chain
Security Digital Transformation
By referencing core indicators from domestic and international ESG reporting Corporate Governance
Water Resource Management
guidelines, such as the Guidelines No. 14 of Shanghai Stock Exchange for Self- Information Disclosure
Data Security and Customer Privacy
Regulation of Listed Companies—Sustainability Report (Trial), and the Global Impact
Anti-Corruption and Risk and Compliance
Reporting Initiative (GRI) Sustainability Reporting Standards, and aligning with Materiality Business Ethics
Circular Economy National Strategic Alignment
Identify national policies and industry characteristics, the Company has systematically Practices
Green Operations Intellectual Property Management
identified and organized key ESG issues.
Environmental Compliance ESG Structure
Rural Party Building Leadership
Revitalization
Initiatives
Social Contribution Programs
Ecosystem and Biodiversity Protection Environmental
Conducting stakeholder issue surveys through online questionnaires, we analyzed
the results in a quantitative manner to prioritize issues based on their level of Socia
concern. This approach helped determine the impact materiality and financial
Governance
Assess materiality of each issue.
Financial Materiality
Highly Material
Innovation-Driven Development, Product Safety & Quality, Occupational Health & Safety, Climate Change Responses,
and Energy Efficiency & Utilization
Moderately Material
Employee Training and Development, Equal Employment and Labor Management, Emissions Management, Customer
Service and Communication, Supply Chain Security, Investor Rights Protection, Digital Transformation, Corporate
Governance, Water Resource Management, Information Disclosure, Data Security and Customer Privacy, Risk and
Compliance, Anti-Corruption and Business Conduct, Circular Economy, National Strategic Alignment, IPR Management,
ESG Governance Structure, and Party Building Leadership
Material
Environmental Compliance, Rural Revitalization, Social Contribution Programs, Green Operations, and Ecosystem
and Biodiversity Protection
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Topic Strategic Navigation: New Chapter in
High-Quality Development
The Innovation and Intelligence Engine is
The Company is steadfastly committed to a new trajectory of high-quality development
steering the development of the Two Rare Earth characterized by ecological priority and green development principles. It aims to position itself as
a high-tech enterprise at the forefront of the global green and low-carbon transformation, and
Bases and poised to outline a transformative provide comprehensive services tailored to the rare earth industry ecosystem.
blueprint for the green industry
The Company is strategically advancing towards a transformation characterized by high-
end, intelligent, and environmentally sustainable development. It is scaling up the production
of premium products, including high-purity rare earth oxides, compounds, metals, and target
materials. In addition, the Company is actively engaged in research and development of advanced
permanent magnetic materials, polishing materials, and hydrogen storage solutions, targeting
critical sectors such as national defense, military applications, and precision equipment. This
strategic focus positions the Company to accelerate its evolution into a world-class leader within
the rare earth industry. By effectively harmonizing resource utilization with innovation-driven
General Secretary Xi Jinping, during his inspection of Inner Mongolia, underscored the necessity of leveraging
development, the Company is demonstrating its commitment to high-quality growth.
the region’s strategic resources. He advocated for the protective development, high-quality utilization,
and standardized management of these resources, emphasizing the importance of enhancing local deep
The Company proactively aligns with national strategies and has pioneered the formulation of
processing of energy resources to advance the strategic resource industry effectively. In alignment with
the first international standard in the rare earth industry. By enhancing the global presence of
this vision, the State Council’s Opinions on Promoting the High-quality Development of Inner Mongolia and its products, brands, and standards across the entire industrial chain, the Company significantly
Striving to Write a New Chapter in Chinese-style Modernization delineates a clear objective: Baotou is to be bolsters the influence and competitiveness of China’s rare earth sector on the world stage.
developed into China’s largest base for rare earth new materials and a globally leading hub for rare earth
applications. The Company is committed to fully embodying the principles established at the 20th National
Congress of the Communist Party of China, as well as the directives and important addresses delivered by Innovation-Driven: New Engine for
General Secretary Xi Jinping during the Second and Third Plenary Sessions of the 20th Central Committee
that pertain to Inner Mongolia and the development of the rare earth industry. By aligning with these Industrial Advancement
strategic frameworks, the Company effectively navigates the new phase of development and implements
the new development concepts in a manner that is thorough, precise, and comprehensive. The Company Rare earths are China’s advantageous strategic resources and play an important role in promoting the
acknowledges its pivotal role in fulfilling the national strategic mission and commits to advancing the development of global strategic emerging industries such as new energy, new materials, advanced
manufacturing, and electronic information. The Company is committed to technological innovation
healthy and stable development of the rare earth industry as a core responsibility. It actively engages in
by integrating scientific and technological innovation resources to accelerate the development of
the foundational work of establishing the Two Rare Earth Bases, leveraging its capabilities as a key player
new quality productive forces, construct a new development pattern, and promote the high-quality
in this initiative. By prioritizing new-quality productivity, the Company is dedicated to achieving significant
development of China’s rare earth industry.
advancements in high-end transformation, intelligent upgrading, and green development. The Company
is poised to accelerate its efforts in becoming a world-class leader in the rare earth sector, contributing
meaningfully to the resilience and security of China’s rare earth industry chain and supply chain. Through Intelligent Manufacturing Upgrade
these strategic initiatives, it aims to reinforce the construction of the Two Rare Earth Bases, ensuring that it
not only meets but exceeds national expectations in this critical industry. The Company is strategically advancing its industrial upgrade featuring high-end, intelligent and green transformation
through several key initiatives. We promote the layout and achievements transformation of major projects such as large-
scale molten salt electrolyzers, continuous intelligent production equipment for NdFeB alloys, as well as rare earth
permanent magnet motors. Our robust infrastructure includes a dedicated hydrometallurgy pilot base and specialized
In 2024, the Company successfully completed the merger and restructuring of Baotou ZXAT Magnetic Materials Co., Ltd., pilot lines for the development of rare earth flame retardants and modified PLA products. Additionally, we have started
effectively addressing a critical gap in its production capabilities for lanthanum and cerium metal products. The Company
constructing the incubation bases for high-purity rare earth metals and specialty alloys. These efforts help bridge the “last
has collaborated with Ningbo Zhaobao, Suzhou Torin, and Souwest Magnetech to jointly establish Northern Zhaobao. This
mile” of tech commercialization to ensure R&D breakthroughs reach industrial scale.
partnership aims to develop a state-of-the-art production line for high-performance neodymium-iron-boron magnetic
materials, with an ambitious annual output target of 3,000 tons. This initiative further extends the Company’s magnetic
materials industry chain.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Case Reconstruction and Expansion Project of Tianjiao Qingmei’s Case
Study Study The Permanent Magnet Motor Project of Northern Jiaxuan
The Commission of the main equipment in the newly constructed The flexible production line for permanent magnet motors,
production workshop for the Tianjiao Qingmei project has been along with a comprehensive motor testing platform and an
successfully completed. The new production line establishes a
open laboratory at Northern Jiaxuan is completed. This project
benchmark within the industry for both environmental sustainability
uniquely addresses the need for permanent magnet motor
and technological intelligence. Upon commencing production, Tianjiao
Qingmei will be positioned to manufacture polishing powder products products with voltage ratings of 3.15 megawatts and below,
across five distinct series, encompassing over 40 specifications and effectively filling a critical gap in the Inner Mongolia Autonomous
models. This comprehensive product range will effectively address Region’s permanent magnet motor sector. By eliminating
various market segments, including low, medium, and high-end rare traditional components such as speed reducers and couplings,
earth polishing materials, significantly bolstering the company’s core
and by optimizing system design, the permanent magnet drum
competitiveness. Moreover, this development signifies that Tianjiao
motor substantially enhances system reliability and transmission
Qingmei’s production capacity is on the verge of reaching the 10,000-
ton threshold, heralding a new era of growth and innovation for the efficiency, thereby achieving notable energy savings.
company.
Green Technologies: New Benchmarks for
Ecological Transition
Case Second-Phase Expansion Project of Huaxing Rare Earth’s Facility
Study
with an Annual Capacity of 8,000 Tons of Rare Earth Metals
In alignment with China’s vision of ecological civilization, green development has become essential to achieving high-quality
The second-phase expansion project at Huaxing Rare Earth is a pivotal
economic growth in the contemporary era. The emergence of new quality productive forces signifies an inherent shift
initiative aimed at significantly enhancing production capacity and
towards sustainable industrial transformation. The Company is at the forefront of this green transformation through several
achieving high-quality development within the sector. This project
incorporates the 18KA electrolytic cell, recognized as the largest single- strategic initiatives.
unit production capacity available in China, while leveraging advanced
domestic processing technologies and state-of-the-art environmental The Company consistently aligns itself with the latest advancements in the industry, leveraging its substantial advantages
protection systems. Notably, the innovative approach of electrolyzing in rare earth resources to strengthen its resource utilization and maintain its leading position. It is committed to rigorous
rare earth oxides within a fluoride system ensures 100% utilization research, development, and application of energy-saving and low-carbon technologies within rare earth production,
of rare earth elements alongside the recycling of fluorine resources.
continuously exploring innovative solutions. Furthermore, the Company actively promotes the implementation of established
This process not only yields superior quality rare earth metals but also
process technologies and products, such as solid-state hydrogen storage devices and rare earth permanent magnet
reduces production costs.
motors. By guiding the industry towards specialization and sustainability, the Company is determined to establish itself as a
benchmark for green and low-carbon practices in the rare earth sector.
Efficiency Enhanced by Permanent Magnet Motors
The Company is dedicated to advancing the application of permanent magnet motors and intelligent production lines,
thereby facilitating the rapid evolution of equipment. By seamlessly integrating the industrial supply chain of rare earth
magnetic materials with rare earth permanent magnet motors, the Company is driving the end-use of rare earth resources
and the progression of permanent magnet motor technology. It is committed to establishing a leading R&D center and
production facility for permanent magnet drive systems in northern China. This initiative will significantly contribute to the
expedited development of the Two Rare Earth Bases.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Case
Study Green Smelting Upgrading and Transformation Project
The Company is firmly committed to a pathway of high-quality development that prioritizes ecological sustainability and
green practices. It plays a pivotal role in advancing the Rare Earth Environmental Product Declaration (EPD) platform . This
The first phase of the green smelting upgrading and transformation
initiative significantly contributes to the promotion of green product design, as well as the establishment of environmentally
project at the Company has been put into operation. This project
friendly factories and sustainable supply chains within the rare earth industry. The Company has successfully integrated
represents the largest and most comprehensive rare earth
smelting and separation initiative globally. It replaces the previous a life cycle assessment (LCA) for rare earth products across its operational framework. In response to the unique
production line and exemplifies a significant advancement in new characteristics of the rare earth industry, it has refined the calculation model for resource depletion potential and
quality productive forces. The innovative process technology, significantly enhanced the background database utilized for LCA evaluations. Furthermore, the Company actively engages
state-of-the-art equipment, and robust environmental protection in the development of product category rules (PCR) and group standards within the rare earth EPD platform, thereby
measures not only set industry standards but also maximize the
reinforcing its commitment to the platform’s high-quality operation and advancing sustainability in the sector.
supply of various raw material products to meet the diverse
needs of downstream enterprises effectively. This project marks a
groundbreaking advancement in the rare earth industry, achieving
continuous automated production across multiple stages for the first time. By integrating a suite of cutting-edge
Case The First Release of EPD Reports
equipment, it ensures that the control rates of key processes and the digitalization of production equipment are Study
among the highest in the industry.
In April 2024, the Rare Earth Environmental Product Declaration (EPD) Platform was officially launched in
The transformation and extraction workshop C serves as the cornerstone of the first phase of the project. The
Beijing, a collaborative initiative spearheaded by the Chinese Society of Rare Earths, Association of China Rare
state-of-art magnesium bicarbonate process for smelting and separating Baiyun Obo rare earth ore alongside the
Earth Industry, the China Quality Certification Center, and various other key stakeholders in the rare earth
hyperlinks solvent extraction and transformation technology for rare earth sulphate are employed. This innovative
sector, including authoritative certification bodies and both upstream and downstream enterprises. The EPD
approach effectively integrates transformation and separation processes, streamlining the overall technological
serves as a scientifically grounded, comparable, and internationally recognized mechanism for disclosing the
workflow. As a result, it significantly reduces costs associated with raw and auxiliary materials and decreases the
environmental impact of products and services throughout their entire life cycle—from raw material extraction
unit consumption of acid and alkali by over 30%. Additionally, it facilitates the recycling of resources, including
to final disposal. It undergoes rigorous third-party verification and is rooted in life cycle assessment (LCA),
magnesium, carbon dioxide, and water.
thus providing a credible “green identity card” that enhances transparency and accountability in the rare earth
industry. The Company has taken the lead in releasing four EPD reports for rare earth products on the EPD
platform. This initiative positions the rare earth EPD platform as a pivotal resource for Chinese enterprises
within the rare earth industrial chain, facilitating their proactive engagement in green international trade. The
Case Development and Application of the Process for Efficient Decomposition of platform aims to establish international recognition of the environmental performance of Chinese rare earth
Study products, significantly enhancing their green competitiveness. Moreover, it contributes to the value creation
Rare Earth Compounds in the Rotary Kiln undertaken by Gansu Rare Earth
for sustainable low-carbon development and promotes the green transformation and upgrading of China’s rare
earth industry.
Gansu Rare Earth is committed to enhancing its scientific
and technological innovation capabilities and expediting
the research and development of effective methodologies.
This initiative has not only generated valuable insights
into the calcination of rare earth carbonates but has also
significantly improved the level of automation within
the production processes. The fully automated rotary
kiln boasts several advantages, including low energy
consumption, substantial production capacity, and a high
level of automation. This advanced system effectively
recycles high-temperature waste heat, enhances production
capacity and product quality, improves the production
environment, and reduces labor intensity. Furthermore,
the production line has successfully conducted trial runs
for praseodymium-neodymium carbonate, achieving
stable product quality and a notable decrease in the unit
consumption of natural gas.
Governance Optimization
for Solid Foundation
The Company is committed to fostering robust Party leadership while advancing the standardization and modernization of its
governance framework. By prioritizing compliant operations and enhancing risk prevention and control measures, the Company
safeguards the rights and interests of its investors. Furthermore, it has improved its information disclosure mechanisms and accel-
erated its digital transformation efforts. These initiatives establish a strong defense for information security, thereby laying a solid
foundation for high-quality development and ensuring the achievement of long-term objectives.
Performance Highlights in 2024
Party Committee meetings Board meetings Supervisory Committee meetings
General meetings Contribution to UN SDGs
General Manager Meetings of special- Special meetings of Percentage of indepen- Distribution of 2023 annual
Office meetings ized committees independent directors dent directors cash dividends
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Governance Effectiveness Three Bodies
By prioritizing the enhancement of governance through the Three Bodies, i.e., the Board, the Supervisory Committee and
The Company rigorously adheres to the Company Law, the Corporate Governance Guidelines for Listed Companies, and other
the general meeting. The Company has significantly refined the delineation of responsibilities and operational mechanisms
relevant laws and regulations. We are committed to establishing a governance system that is standardized, transparent, and efficient.
for the three bodies. This strategic approach fully leverages the capabilities of the Board of Directors, the various specialized
This commitment is achieved through a continuous enhancement of governance effectiveness, a clear delineation of rights and
committees, independent directors’ meetings, and the Supervisory Committee. As a result, the Company has markedly improved
responsibilities among all governance entities, and the strengthening of foundational governance structures. By prioritizing these
the standardization of its decision-making processes, reinforcing its commitment to effective corporate governance.
principles, we ensure a robust framework that supports our operational integrity and promotes stakeholder trust.
Governance Structure General Meeting of Shareholders
General Meeting Performance
In alignment with the objectives of establishing a modern state-owned enterprise system with Chinese characteristics, the The Company strictly adheres to the Rules of Procedure for General
Company is committed to the ongoing modernization of its corporate governance framework and capabilities. This commitment Meetings in executing convening procedures, proposal mechanisms, Proposals approved
General meetings
involves the systematic development of a governance structure characterized by clearly defined roles and responsibilities. Each and voting processes to safeguard shareholder rights, with particular at general meetings
department is empowered to fulfill its specific tasks effectively, fostering operational efficiency and informed decision-making, attention to minority shareholder protections, and guaranteed exercise of
thereby significantly enhancing overall governance effectiveness. fundamental rights including the right of information, participation right,
right to raise inquiries, and voting right.
Management Structure of Northern Rare Earth
General Meeting Board of Directors
Board Performance
The Board of Directors plays a pivotal role in formulating strategies,
Party Committee Supervisory making informed decisions, and mitigating risks. It effectively leverages
Committee Board meetings Proposals approved
the capabilities of its four specialized committees: the Strategy and ESG
by the Board
Committee, the Nomination Committee, the Audit Committee, and the
Board of Special Committees
under Board Remuneration and Review Committee. This structure enables the Board
Directors
to enhance the quality and efficiency of its decision-making processes
Strategy and ESG continuously. In 2024, the Board engaged in critical discussions regarding
Committee the Company’s ESG report.
Nomination Committee Meetings of specialized Special meetings
Audit Committee of independent
Management Level Comprising 14 members, with independent directors representing 35.71% committees
Remuneration and Review
Committee and female directors also accounting for 35.71%, the Board benefits from directors
a diverse array of professional expertise in rare earths, finance, and law.
This diverse composition not only enriches the board’s structure but also 5
establishes a robust foundation for informed and scientific decision-making
within the Company.
Party Committee Work Dept
(Environmental Protection
Safety Management Dept
Group Management Dept
(HR Dept, Trade Union)
Plan and Finance Dept
Discipline Inspection
(Legal Affairs Dept)
Development Dept.
Technology Center
Engineering Dept
Technology Dept
General Office
Marketing Dept
Securities Dept
Production and
Equipment and
Planning and
Supervisory Committee
Commission
Audit Dept
Dept)
Supervisory Committee Performance
The Supervisory Committee diligently fulfills its oversight responsibilities by
regularly assessing the Company’s financial status, discussing key issues, Supervisory Proposals approved
and monitoring the performance of both directors and senior management. Committee meetings by the Supervisory
Comprising seven members, the Supervisory Committee includes three Committee
employee representative supervisors. Non-employee supervisors are elected
during the general meeting of shareholders, while employee representatives
are democratically selected by the employee representative congress and
other relevant bodies. This structure ensures comprehensive oversight and
demonstrates a commitment to accountability and transparency within the
Company.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Compliant Operations Overview of Business Ethics Management
Ethical Business
The Company adheres rigorously to applicable laws and regulations while continuously enhancing its internal control and audit Improper Conduct Types Response
Conduct
systems. By ensuring legal compliance in its financial and operational practices, it effectively mitigates legal and tax risks.
•Avoid entering into any agreements with competitors that may
The Company prioritizes robust legal and tax management, fosters a strong ethical business culture, and elevates compliance
•be deemed monopolistic;
awareness among all employees. Furthermore, it has established a comprehensive risk management framework that serves as a
•Implement comprehensive training programs focused on anti-
formidable defense against potential threats, thereby ensuring the enterprise’s sustainable and high-quality development. •Monopoly agreement •monopoly compliance for all employees;
Anti-monopoly •Abuse of market dominance •Monitor the activities of trade associations, ensuring that
In 2024, the Company enhanced its management framework by introducing 25 new management policies and revising 37 existing •Suspected monopolistic conduct •our involvement does not lead to participation in any form of
ones. This initiative effectively strengthened, enriched, and refined the overall management structure, thereby establishing a •monopolistic behavior;
robust institutional foundation for standardized operations. •Promptly report any suspected monopolistic conduct;
•File concentration of undertakings declarations.
In November 2024, the Company, along with its affiliates—the Smelting Branch and the International Trading—successfully
•False advertising
completed the certification review for both international and domestic standards, specifically ISO 37301:2021 and GB/T 35770- •Build brand equity and protect intellectual property rights;
•Misleading commercial practices
•Commercial defamation
to obtain dual certification of its compliance management system, setting a new industry benchmark for compliant operations. •Strict enforcement of bidding and tender laws.
•Bid rigging
•Promote a culture of integrity and strictly enforce laws and
•Give bribes to transaction •regulations;
•counterparts; •Maintain accurate accounting records for all business activities;
Anti-commercial
•Establish specialized management protocols, and implement
bribery •Accept bribes from transaction •robust anti-bribery safeguards;
•counterparts. •Conduct regular system evaluations, and keep immediate
•reporting of bribery incidents.
•Implement a comprehensive framework that categorizes
•commercial secrets to facilitate tailored protection measures
•for each type of sensitive information;
•Obtain trade secrets through •Oversee individuals with access to classified information by
Business •enforcing stringent access controls and requiring the signing
•improper means;
secrets •of confidentiality agreements to ensure accountability;
•Disclose, use or permit others to •Establish uniform protocols for the handling, storage, and
protection
•use trade secrets. •transmission of sensitive information across all platforms and
•locations to bolster information security;
Compliance Management System Certificates of the Company •Develop robust emergency response strategies to address
•potential leaks and infringements promptly.
Business Ethics
Whistleblowing Channels
The Company unequivocally upholds the highest standards of business ethics, prioritizing integrity and fair competition as
The Company has established efficient channels for reporting incidents via letters and visits, utilizing various methods such as
foundational principles in its corporate development. To this end, we have established the Northern Rare Earth Compliance
mail, telephone, email, and in-person submissions. It rigorously follows established acceptance procedures to ensure that all
Management Guidelines, encompassing 18 essential areas, including anti-monopoly regulations, anti-unfair competition, anti-
reporting activities are conducted in a standardized and orderly manner, thereby safeguarding the rights and interests of all
bribery compliance, and trade secret protection. These guidelines are meticulously compiled into a comprehensive Compliance parties involved.
Handbook, which serves as the operational standard across all critical business functions, ensuring effective compliance
Furthermore, the Company is committed to adhering to national laws and regulations regarding whistleblower protection.
management.
We have enhanced our internal confidentiality mechanisms and strengthened protective measures for whistleblowers. The
Company prioritizes the protection of anonymous reporting by explicitly prohibiting the unauthorized verification of details
The Company rigorously adheres to the Anti-Monopoly Law of the People’s Republic of China, actively fostering fair market
such as handwriting, network IP addresses, and other identifying information of anonymous whistleblowers. In instances where
competition, safeguarding small and medium enterprises, and promoting a robust competitive ecosystem. In 2024, we tracing the identity of a whistleblower is deemed necessary, particularly in cases involving potential disciplinary violations or
successfully completed the Northern Zhaobao concentration of undertakings filing. false accusations, a stringent approval protocol must be adhered to. Furthermore, any deliberate disclosure of whistleblower
information or retaliatory actions against whistleblowers will be met with rigorous consequences upon verification.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Bottom Line of Compliance Case
Study
Special Training on the Updated Company Law of the
The Company effectively integrates compliance management into every facet of its operations, ensuring that adherence to People’s Republic of China
legal and regulatory requirements is not merely an obligation, but a foundational principle guiding our business practices. Key In January 2024, the Company implemented a specialized training program entitled the Impact of Revised Company
measures taken to strengthen this commitment include the formulation of essential regulatory documents, such as the Northern Law on Listed Companies and Corresponding Strategies. This session provided participants with a comprehensive
Rare Earth Compliance Management Measures and the Working Rules of the Northern Rare Earth Compliance Management understanding of the amended provisions and their implications, thereby significantly enhancing the Company’s
Committee. These documents serve as critical frameworks for compliance adherence. In addition, we have significantly compliance management capabilities. As a result of this training, the Company has established clear response
strengthened our legal and compliance frameworks, which are designed to navigate the complex regulatory landscape with strategies to effectively address the legislative revisions, thereby ensuring robust support for lawful operations and
confidence and clarity. Our refined tax management system focuses on mitigating tax risks, ensuring that we remain compliant promoting high-quality development in alignment with the updated legal framework.
while optimizing our financial strategies. Furthermore, we have made substantial strides in optimizing our internal control
mechanisms and enhancing our internal audit processes. These efforts ensure all business activities adhere to legal and
regulatory requirements.
Tax Payment Management
Case
Study Specialized Compliance Training within the Company
The Company strictly adheres to tax policies and regulations in all jurisdictions where
In August 2024, the Company conducted a specialized training it operates. To standardize tax management practices, Northern Rare Earth Tax Tax Payment Performance
session focused on compliance management. Esteemed experts Management Measures have been established, ensuring accurate tax calculation and
were invited to interpret the standards of the compliance accounting, timely tax refund and payment, and effective tax risk prevention.
Total tax payments
management system and elucidate the practical aspects of
enterprise compliance management. Through case analyses, In 2024, the Company conducted comprehensive training programs covering
discussions, and interactive communication, participants corporate income tax final settlement, digital electronic invoice operations, tax risk
significantly enhanced their compliance awareness and
billion yuan
management, year-end financial and tax reconciliation. These programs aimed
capabilities. This training not only established a robust foundation to enhance the professional capabilities of finance teams, guarantee compliant
for the Company’s legal and compliance framework but also operations, mitigate tax-related risks, and optimize financial management processes.
played a pivotal role in advancing the development of the Two
Rare Earth Bases, reinforcing our commitment to becoming a
world-class leader in the rare earth industry.
Case Training on Operations for Corporate Income Tax Final Settlement
Study
Legal Compliance
The Company has devised, revised, and implemented key policy documents, including the Contract Management Measures of In March 2024, the Company successfully implemented
Northern Rare Earth and the Legal Dispute Management Measures of Northern Rare Earth. These initiatives clearly delineate the a specialized training program titled Practical Corporate
responsibilities and authorities associated with contract management, standardize legal service processes and standards, and I n c o m e Ta x S e t t l e m e n t a n d H i g h - F re q u e n c y Ta x
enhance mechanisms for the prevention and resolution of legal disputes. Consequently, we have significantly elevated the overall Risk Prevention in the Era of Big Data. This session
management standards of our legal services. comprehensively addressed essential topics, including
recent tax policy updates, risks associated with tax
accounting discrepancies, optimization of tax incentives,
Legal Training Performance and applications for R&D expense super-deductions.
As a result of this targeted training, the finance team
significantly enhanced its tax compliance capabilities,
Law awareness training Law awareness training Law awareness training thereby strengthening the Company’s ability to mitigate
sessions duration participation tax-related risks and capitalize on available tax benefits.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Case The Company Held a Special Training on Tax-related Compliance and
Study
Application Cases of Various Tax Types
Risk Control and Management Training Performance
In June 2024, the Company conducted a specialized training
session titled Tax-Related Compliance and Application Cases of
Risk control and compliance Risk control and compliance Risk control and compliance
Various Tax Types for Enterprises Under the Precise Supervision
of Golden Tax Phase IV. This comprehensive training addressed training sessions training duration training participation
critical compliance policies and risk management strategies
associated with key tax categories, including value-added tax, 9 32 Hours 750
corporate income tax, individual income tax, and stamp duty.
Through in-depth case analyses and the interpretation of relevant
policies, participants effectively grasped essential elements of Risk Control Measures
tax compliance and developed strategic approaches to enhance
both the accuracy of the Company’s financial data and the overall
compliance of tax-related processes. Reducing Risk Identification
Mitigating Project
Construction Project & Control
Investment Risks
Risks Optimization
Internal Audit The Company requires relevant The Company has implemented The Company conducted
management departments a comprehensive legal risk an annual risk assessment
The Company is committed to enhancing its internal audit reform by establishing a comprehensive and standardized auditing
to systematically review risk management training program for to review risk events from
system. This initiative includes the creation of an independent audit department, which significantly strengthens the internal
prevention measures, closely all subsidiaries and branches. This the past year, refine the risk
audit and oversight functions. To facilitate this process, several key policies have been developed, including the Internal Audit
monitor implementation initiative emphasizes the strict control checklist, and enhance
Management Measures of Northern Rare Earth and the Economic Responsibility Audit Management Measures for the Main
effectiveness, and mitigate standardization of construction risk detection and response
Leading Personnel of Northern Rare Earth. By positioning itself as a leader in economic supervision, the Company prioritizes its
potential investment risks. project management, aims to mechanisms.
critical objectives and high-risk areas while ensuring a thorough and extensive coverage of audits, thereby elevating the rigor
enhance compliance with safety and
of its audit supervision. The Company has enhanced the professional competence and practical capabilities of its audit team
regulatory protocols, and promotes
through participation in targeted audit training and other developmental initiatives. It systematically addresses issues identified
the proactive identification of
in audits by regularly monitoring the progress of corrective actions and ensuring accountability for these rectifications. This
contractual and operational risks.
proactive approach effectively mitigates operational risks, thereby providing a solid foundation for informed decision-making in
the corporate-wide operations and management.
In 2024, the Company successfully executed 29 audit projects, encompassing operational audits, specialized audits, and post-
project evaluations, with a strategic focus on annual priorities, significant subsidiaries, and critical risk areas. Development Empowered by
Internal Controls
Digital and Intelligent Forces
The Company enhances its internal control processes by developing comprehensive frameworks, including the Internal Control The Company recognizes digital and intelligent technologies as the primary catalyst for its transformation and modernization.
Management Measures of Northern Rare Earth and the Standards for Identifying Internal Control Deficiencies. By conducting Its progression toward digital and intelligent capabilities has evolved from a state of local optimization to one of comprehensive
integration. By establishing a secure network and data operational environment and enhancing the construction and application
thorough internal control evaluations aligned with applicable laws and regulations, it effectively prepares detailed evaluation
of its informatization control systems at the corporate level, the Company has improved the intelligent manufacturing capabilities
reports, identifies areas for improvement, and diligently implements corrective actions, thereby standardizing and reinforcing a
of its individual units. Furthermore, the dissemination of exemplary cases and implementation experiences fosters an environment
robust internal control system. that supports the high-quality development of the entire industrial supply chain.
Comprehensive Risk Management
In 2024, the Company implemented the Outline Plan for the Digital Transformation of Northern Rare Earth through the
introduction of new standards and detailed assessment rules. This includes the Data Coding Design Specification for the
The Company has developed the Measures for Identifying and Evaluating Compliance Risks (Trial) to systematically identify, Application System of Northern Rare Earth, the Data Exchange Specification for Northern Rare Earth and Its Subsidiaries/
Branches, the Specification for the Manufacturing Execution System (MES) of Northern Rare Earth, and the Detailed Rules
assess, and provide early warnings for compliance risks. This initiative integrates compliance reviews into core business
for Professional Management Assessment. By adhering to the 2024 Digital and Intelligent Work Plan of Northern Rare Earth,
processes, clearly delineating responsibilities among key stakeholders. By preventing and controlling compliance risks, the
along with the Revised Measures for the Management of Digital and Intelligent Projects and the Guiding Opinions on the
Company ensures the legality of its operations while establishing a solid foundation for achieving its long-term strategic Implementation of Intelligent Manufacturing, the Company confidently advanced its annual agenda for digital and intelligent
objectives. development.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Digital and Intelligent Infrastructure Information Security Management Measures
The Company is committed to robust network and cybersecurity infrastructure development, establishing essential systems
such as a private cloud platform, video conferencing capabilities, and centralized control centers. This strategic investment
has enhanced our operational support capabilities, fostering a secure and stable environment for equipment operations. Such
We establish an inventory of critical information systems with designated responsible personnel; implement
Data Security
measures are instrumental in laying a strong foundation for efficient operations and advanced intelligent management. data confidentiality and anti-tampering protocols, eliminating weak passwords; and conduct regular data
Protection
backups and monitor security logs to ensure stable system operations.
In alignment with these efforts, the Company has enacted comprehensive policies, including the Computer Confidentiality and
Security Management Measures of Northern Rare Earth and the Network Emergency Plan of Northern Rare Earth. We adopt a
rigorous network security responsibility system that emphasizes the protection of network boundaries and effective terminal
security management. Our approach incorporates advanced detection and audit systems, intrusion prevention measures,
Network Isolation and Zoned Protection: Critical information networks and business systems are physically
situational awareness platforms, and terminal anti-virus solutions, thereby creating a multi-layered and extensive network security
isolated from the internet; Internal networks are segmented by functional zones, with security devices and
architecture. Furthermore, the Company conducts regular network security training and emergency response drills to enhance access policies deployed to ensure zone security.
information security awareness among employees. This comprehensive approach ensures the secure and stable operation of our
Internal Network Architecture and IP Planning: The internal network employs a robust three-layer, two-
information systems, thereby providing a robust foundation for successful digital transformation initiatives.
tier architecture, ensuring optimal performance and scalability through the configuration of core devices in
hot standby redundancy. IP address allocation is aligned with business requirements. The external network
Cybersecurity Training Performance is structured in a flat architecture, with IP addresses being centrally managed to maintain streamlined
Technical accessibility and control.
Information security Information security training Information security training Safeguards
Internet Gateway Protection: Firewalls and intrusion detection systems are deployed at network gateways to
for Network
training sessions duration participation safeguard the infrastructure. Real-time monitoring of external network traffic ensures proactive response to
Security potential threats. Furthermore, branches and subsidiaries within the Inner Mongolia adhere to standardized
Hours gateway controls, while external branches are continuously monitored for security compliance.
Detection and Audit Systems: Security auditing, threat detection, and situational awareness systems are
developed comprehensively assess security status. Continuously monitor vulnerabilities and cyberattacks,
performing regular scans and remediation.
Case
案例
Study Emergency Drill for Network Equipment Switching
Website Protection: The official website is integrated with a cloud-based security platform. All access
In June 2024, the Company executed a comprehensive emergency drill focusing on the active/standby engine requests are filtered through cloud protection software to enhance defense capabilities.
switchover of the core N18012 switch. This exercise encompassed a series of critical operational protocols, including
accessing the management console, verifying module status, restarting the primary engine module, monitoring the
standby engine switchover process, and conducting thorough network connectivity tests. The practical nature of Case
案例
Study Unified Internet Gateway Project
this drill effectively validated both the stability and reliability of our core network infrastructure during critical engine
failover scenarios. Our technical team emerged from this exercise with significantly enhanced capabilities to respond In 2024, the Company launched the Unified Internet Gateway
to unexpected network outages. The insights gained and skills developed during this training are instrumental in Project, aimed at centralizing internet access management
ensuring the high-performance operation of our network systems. across all branches and subsidiaries within Inner Mongolia
while simultaneously gathering cybersecurity threat logs from
those situated outside the region. This initiative involved
the deployment of new gigabit-level internet gateways and
advanced network security devices, seamlessly integrating
them with the existing infrastructure to create a dual-gigabit
internet gateway environment. The project successfully
achieved three significant outcomes. First, it established
centralized control over internet access for regional branches. Second, it facilitated real-time log monitoring for
external subsidiaries. Third, it optimized costs by reducing gateway infrastructure investments, thereby enhancing
security for external data access.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Intelligent Operations Development
The Company has established a comprehensive smart operations management system that operates across three essential
layers: business execution, group oversight, and strategic decision-making. This digital transformation initiative has resulted in The system oversees process control and management for projects within the annual investment
Engineering
a robust operational framework designed to support informed strategic decisions. To date, the Company has made significant plan, managing over 3,000 transactions. It establishes a standardized engineering project
Project
strides in developing and integrating intelligent management systems on a group-wide scale. These systems encompass management framework, enabling comprehensive digital oversight throughout the entire project
Management
collaborative office platforms, human resources management, financial operations, production energy safety management, lifecycle. This approach ensures precise execution and consistent compliance with established
System
asset and equipment tracking, engineering project oversight, procurement and sales systems, and product traceability solutions. engineering standards, thereby enhancing the efficiency and reliability of project implementation.
Collectively, these components establish a solid digital foundation for modernized management, enabling data-driven decision-
making and significantly enhancing operational efficiency throughout the Company.
Group-Level Intelligent Management System Purchase and Sale The primary functions of the system encompass sales operations, procurement management for
raw materials and spare parts, and inventory control. It oversees material structures, contracting
Management
manufacturing, supplier relationships, demand planning, quotation processes, procurement
System
The platform features an integrated suite of corporate portals, email communications, workgroup
execution, inventory management, and diverse reporting functions.
Synergy chats, diverse query functions, and streamlined business processes. With nearly 300 configured
Management workflows and applications facilitating over 100,000 transactions, it has markedly optimized work
Platform processes, substantially enhanced office efficiency, and effectively transitioned to paperless
operations. This system effectively manages essential lifecycle data pertaining to raw materials, products,
Product and quality analysis at pivotal stages. It generates comprehensive product inventory records and
Traceability quality inspection reports, systematically linking them to business contracts and invoices. This
System integration ensures complete product traceability and robust lifecycle management, meeting
Human It has achieved comprehensive digital management of all core HR functions, including employee regulatory reporting requirements to MIIT.
Resource records, attendance tracking, payroll processing, training certifications, labor contracts, and
Information position agreements. This integrated system enhances the standardization and accuracy of data
System analysis while improving management efficiency and effectiveness.
Intelligent Production Development
The Company has prioritized equipment automation, centralized control systems, automated material handling, and intelligent
sensor and instrumentation technologies as its core development directions. By emphasizing three pivotal performance
The system includes advanced cost accounting and capital management functionalities, facilitating indicators—namely, the increased adoption of CNC technology in critical processes, and enhanced digitalization rates of
Financial
direct bank connectivity for corporate transactions. It allows for swift cost analysis and centralized production equipment—we have emerged as leaders in automation solutions throughout various production stages. Our
Management
financial oversight throughout the Company. Additionally, it offers 22 standard report templates, industry-first automation initiatives encompass several key processes, including roasting, transformation and extraction
System
ensuring effective data consolidation and accurate financial reporting across the entire Group. operations, ammonium bicarbonate preparation, continuous precipitation, concentration procedures, and calcination processes.
Noteworthy tangible outcomes of our efforts include a significant reduction in energy consumption per unit, a marked decrease
in wastewater volume and associated treatment costs, improved raw material utilization rates, increased product yields, and a
substantial reduction in manual labor requirements. Furthermore, these advancements have led to significant enhancements in
Production The system facilitates comprehensive report generation and dynamic data analysis by capturing work environments through the automation of hazardous operations.
Management real-time production data. This capability enhances the collection, application, and scalability
Information of information across key business operations, including production, energy, environmental
System protection, and safety management. Two Indicators in Intelligent Production
CNC Adoption Rate in Critical Production Equipment
Assets and Processes Digitalization Rate
The system facilitates the standardized, efficient, and precise management of assets and
Equipment
equipment—encompassing fixed assets, diverse devices, and specialized personnel certifications.
Management
Every unit effectively employs the system to conduct daily inspection tasks.
System
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Automatic weighing,
Digital Process Control Rate 80 The transformation encompasses the integration of automated weighing and disharging devices,
discharging and
conveying upgrading
Digital Production Equipment Rate
Linear (Digital Process Control Rate)
Linear (Digital Production Equipment Rate)
Early 14FYP 2022 Year End 2023 Year End 2024 Year End Safety and efficiency in hazardous extraction environments. Its successful implementation at Gansu Rare
Enhancement Earth demonstrates significant advancements in operational effectiveness.
Linear (Digital Process Control Rate) 70 74.37 77.4 79.19
Linear (Digital Production Equipment Rate) 30 45.97 49.18 56
This project incorporates four-way shuttle vehicles, conveyors, and elevators alongside
The Company has established intelligent demonstration lines across various production scenarios, deploying smart robots in Smart Warehouse advanced warehouse management software. As a result, metal products automatic storage
highly repetitive and labor-intensive positions. This initiative earned recognition as a 2024 Excellence-Level Smart Factory System capability has increased by 30%, while labor intensity has significantly decreased at the
(First Batch) in China’s national evaluation by the Ministry of Industry and Information Technology. Building on this success, Green Smelting Upgrade Project.
we piloted intelligent transformation at our Smelting Branch (Huamei), driving smart upgrades in rare earth smelting and
separation. This made us the nation's first enterprise to achieve Smart Manufacturing Capability Maturity Level 3 for both
rare earth carbonate and oxide production processes. Leveraging our group management strengths, we've extended these
The system delivers an extensive framework for automated control systems and control nodes,
demonstration-line experiences to multiple subsidiaries, fostering resource sharing and technological collaboration across Manufacturing
effectively integrating production planning, scheduling, and process monitoring alongside
the Company. Execution
equipment, energy, and data management. This robust solution has been successfully adopted by
System (MES)
Gansu Rare Earth, Magnetic Materials, and Hefa.
Implementation and Promotion of Intelligent Demonstration Lines at the
Smelting Branch
Case
案例
Study NdFeB Strip-Casting Alloy Automated Batching Line Project by Magnetic Materials
Tunnel Kiln The Company has automated the tunnel kiln production line, encompassing all critical processes,
The automated batching line system for NdFeB strip-
Automation Project including ignition, rare earth carbonate filling and weighing, calcination, and material discharge,
casting alloy newly developed by Magnetic Materials
(Calcination through the implementation of advanced robotic and conveyor systems. This integrated solution
Process) has officially begun operations, representing a significant
has been effectively deployed at Gansu Rare Earth, Hefa and Jingrui.
milestone as the first of its kind in China. The system
features a steel-structured frame, storage silos, anti-
Automated bridging devices, automated weighing units, and
Automated Guided Vehicles (AGVs) that are equipped with advanced visual recognition and
Transfer industrial-grade computer controls. By employing
from Tunnel unmanned traffic management technologies efficiently transport high-temperature rare earth
Kiln to high-precision screw feeders and intelligent variable-
oxides from tunnel kilns to mixing and packaging stations, utilizing sophisticated intelligent
Mixing/Packaging frequency speed regulation, this system seamlessly
warehouse dispatching systems.
Process
integrates automated material feeding with precise ratio
control. The key outcomes of this advancement include
a 50% reduction in manual labor, a 200% increase in
Automated The upgraded system incorporates several advanced features, including chain-conveyor automated production efficiency, enhanced product consistency,
Concentrate feeding and an expert control system for rotary kilns, which realize the automatic mixing, weighing and a substantial decrease in the physical workload for
Feeding System and discharging of rare earth concentrate. operators.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Rights and Interests of
Case
Study The Automated and Intelligent Carbonate Production Line in Hefa
Shareholders
Hefa has successfully implemented an automated carbonate
production line that features PLC-based automation control
with specialized software, an intelligent forklift dispatch
system, and AGV smart forklift control, allowing for real- The Company demonstrates a robust commitment to investor relations management, effectively enhancing its value
time monitoring of the packaging line. As a result, the creation capabilities. By fulfilling legal obligations for information disclosure, the Company fosters transparent and effective
production line operates entirely autonomously, eliminating communication with both current and potential investors. These strategic efforts safeguard the rights of all shareholders,
the need for human intervention. The AGV carts, equipped particularly minority shareholders, while promoting consistent growth in the Company’s market value. This comprehensive
with multi-sensor arrays and obstacle-avoidance systems, approach underscores the Company’s strategic vision and dedication to stakeholder engagement.
contribute to 24/7 uninterrupted operation, enhance
transport safety and efficiency and enable adaptive
production scheduling to meet fluctuating workflow Information Disclosure
demands.
The Company adheres rigorously to information disclosure regulations, ensuring that all communications are truthful, accurate,
complete, timely, and fair. By effectively conveying corporate developments to investors, the Company enhances transparency
and bolsters investor confidence while safeguarding their legitimate rights, including the right to be informed. In 2024, the
Company issued four periodic reports and 65 interim announcements, submitting a total of 107 documents to SSE. The Shanghai
Case Rapid Analyzer Automated Inspection Line Project of Huaxing Rare Earth
Study Stock Exchange recognized the Company’s information disclosure efforts for the 2023-2024 period with an A (outstanding) rating
and awarded it the Golden Bull Award for Information Disclosure at the 26th China Securities Journal Listed Companies Awards,
Huaxing Rare Earth has implemented an automated underscoring its strong reputation among regulators and within the capital market.
rapid inspection line for rare earth metals, resulting in a
remarkable 72.22% enhancement in detection efficiency.
This innovation signifies a pivotal shift from traditional
sampling-based inspections to comprehensive 100% Information Disclosure Performance
product testing. The integrated inspection line includes
features such as automated sample coding, real-time
analytical detection, and a substantial reduction in Announcements disclosed Regular announcements released Interim announcements released
repetitive manual tasks. Key benefits include immediate
and accurate feedback on production and quality,
alongside a data-driven foundation for optimizing
processes and enhanced decision-making support.
Case
Study Gansu Rare Earth 70-meter Roller Hearth Kiln Automatic Loading & Return Line Investor Relations Management
The 70-meter roller hearth kiln utilized by Gansu Rare Earth The Company firmly embraces a commitment to protecting investor rights while pursuing high-quality development through
is equipped with a fully automated loading and unloading an investor-centric value philosophy. By prioritizing effective information disclosure and robust investor relations management,
system, alongside advanced Distributed Control System the Company actively engages in market value management, significantly enhancing both the frequency and quality of
(DCS) technology. This innovation has revolutionized communication with a diverse range of investors. The Company continually innovates its investor relations initiatives to safeguard
the rare earth calcination process, transforming it into legitimate investor rights, particularly the right to be informed, thereby improving corporate transparency and bolstering investor
a fully automated “digital and intelligent work section”. confidence.
By eliminating the previously labor-intensive practices
To facilitate meaningful engagement, the Company has established a range of communication mechanisms that leverage various
of manual crucible handling and material collection, the
channels, including its official website, social media platforms, and the SSE E-Interaction platform (https://sns.sseinfo.com/).
operation of this automated calcination production line
It employs diverse formats, such as general meetings, earnings briefings, and on-site investor research sessions, to effectively
has remarkably enhanced single-kiln output, significantly
convey its development progress and investment potential. These concerted efforts not only deepen investors’ understanding
reduced production costs, and substantially improved
and recognition of the Company but also cultivate and sustain a positive image within the capital market. In acknowledgment of
overall production efficiency.
its exemplary practices, the Company was recently awarded the 2023 Best Cases Award for Annual Performance Briefings held
by China Association for Public Companies.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Investor Communication Performance Shareholder Returns
The Company rigorously upholds the legal rights of its
Performance briefings Investor relations activity records Responses at http://sns.sseinfo.com/
shareholders to receive asset returns and other entitlements,
released
embodying an investor-centric approach that aligns with our
operational philosophy of rewarding investors with strong
performance. We have established and implemented a
comprehensive shareholder return plan, which encompasses
measures such as cash dividends to ensure reasonable returns
for our investors. In 2024, the Company completed the profit
distribution for 2023, disbursing a total of 253 million yuan
in cash dividends. Since our initial public offering, we have
allocated a cumulative total of 5.419 billion yuan to shareholders
through cash dividends and share repurchases, which have
been subsequently canceled. This significant return positions
the Company as a leader among listed rare earth enterprises in
cash dividend distribution, further illustrating our commitment
to sharing our developmental achievements with investors and
enhancing their overall sense of value.
Case Investor Themed Reception Day of Northern Rare Earth
Study
In August 2024, in conjunction with the 16th China
Baotou Rare Earth Industry Forum, the Company hosted
an investor-themed reception day titled A Date with
the Grasslands: Explore the Rare Earth Resources in
Northern China. This event attracted a diverse group
of attendees, including representatives from the Inner
Mongolia Listed Companies Association, institutional and
individual investors, securities firms, and financial media.
Throughout the day, investor delegates participated in
key activities, including the Rare Earth Industry Forum,
where they attended expert presentations and toured significant sites such as the Baiyun Obo rare earth mineral
processing production line, the Mining Memory Museum, and the Baotou Rare Earth Museum. These experiences
provided attendees with comprehensive insights into the status and prospects of the rare earth industry. Furthermore,
direct discussions were performed with the Company’s management team. Overall, this event successfully enhanced
investors’ recognition of both the rare earth industry and the Company, thereby bolstering investor confidence and
strengthening the Company’s positive image in the capital market.
Green Transition toward
Harmonious Coexistence 02
The Company is firmly committed to the national strategic goals of carbon peaking and carbon neutrality. We steadfastly embrace
the development philosophy that prioritizes environmental sustainability as a vital asset. By adhering to the principle of establish-
ing new systems prior to phasing out outdated ones, we meticulously plan the steps necessary for energy conservation and carbon
reduction. Furthermore, we are actively exploring and implementing diverse pathways for green and low-carbon transformation,
positioning ourselves as a pioneer in sustainable development practices.
Performance Highlights in 2024
Special environmental protection expenditure Percentage of the Company and its affiliates with Contribution to UN SDGs
environmental management certification
Training sessions Comprehensive energy consumption per unit of output
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Ecological Environment Environment Management Objectives
Management Progress of the 2024 Environmental Protection Management Targets
The Company has robustly integrated environmental protection into its corporate strategy and governance processes, thus Environmental protection facilities at all production units maintained a 100% synchronous operation rate. Entities within Inner
establishing a solid foundation for high-quality, sustainable development. We systematically enhance our ecological and Mongolia achieved “zero discharge” of industrial wastewater, while those outside Inner Mongolia ensured all pollutants meet
environmental management systems, delineate clear environmental protection objectives, and fortify the accountability of our emission standards.
environmental responsibilities. Additionally, we actively improve our risk prevention capabilities and management practices
Under the Greening, Beautification, Illumination, and Sanitation initiative, six projects have been successfully completed.
concerning ecological conservation. In 2024, we allocated 648 million yuan in dedicated funds to further advance our
environmental protection initiatives.
Furthermore, fourteen facilities have fulfilled their obligations by submitting industrial noise emission declarations as mandated
by pollution discharge permits.
Environment Management System Three facilities have received recognition as regional-level green factories by the autonomous region.
Management Structure
The Company maintains strict compliance with environmental protection laws and regulations, including the Environmental Environmental Compliance Management
Protection Law of the People’s Republic of China, alongside national and local environmental standards. A well-defined three-
tiered environmental management structure has been established, providing a robust framework for oversight. At the apex of this The Company systematically conducts thorough reviews of environmental compliance risk
structure is the Environmental Protection Committee, which serves as the highest decision-making body responsible for guiding inventories and implements robust environmental supervision and inspection programs.
our overall environmental strategy. The Environmental Management Department functions as a dedicated unit that supervises, Additionally, we carry out initiatives for identifying environmental risk hazards. To further
inspects, and directs the daily environmental activities of subsidiaries and branches. Each subsidiary/branch is accountable for its enhance our environmental management practices, we ensure that all production units update
own environmental management, ensuring comprehensive implementation of all prescribed environmental protection measures. their emergency response plans for unforeseen environmental incidents. Simultaneously,
we promote environmental protection awareness through comprehensive educational
campaigns. These coordinated efforts significantly bolster employees’ understanding of
Responsibility Fulfillment their environmental responsibilities, thus ensuring effective implementation and continuous
improvement in our environmental management practices.
The Company has significantly advanced its environmental management system
framework by enhancing coordination mechanisms and establishing a clear and
collaborative structure for environmental protection with defined responsibilities. This
Environmental Supervision and Inspection
strategic approach ensures the effective and efficient implementation of environmental The Company has undertaken a comprehensive revision of the Solid Waste Pollution Prevention and Control Management
initiatives, thereby promoting sustainable and stable progress in our environmental Measures of Northern Rare Earth, aimed at enhancing environmental supervision, management, and performance evaluation, and
management practices. As of the end of 2024, both the Company and its 22 affiliates promoting standardized environmental protection practices across all operational levels. All affiliates are required to rigorously
have successfully achieved ISO 14001 Environmental Management System certification. adhere to the principle of “dual responsibility of Party and business leadership, and dual accountability for each position” in
their environmental protection efforts. Compliance with environmental laws and regulations is non-negotiable; therefore, each
Certificate of ISO 14001 Environment
Management System of the Company subsidiary/branch must sign the Environmental Governance Target Responsibility Agreement, thereby reinforcing their primary
responsibility for environmental stewardship. Furthermore, in 2024, the Company executed 12 specialized inspection campaigns,
Environment Management System Certifications among the Company and its Affiliates including New Year and Spring Festival inspections, environmental protection audits in its subordinate companies, and self-
inspections in preparation for regulatory reviews. All identified issues have been thoroughly addressed and rectified.
Environment Management System Certifications among the Company and its Affiliates
Quantity of the Company and its affiliates Percentage of the Company and its affiliates
that have successfully acquired environmental that have successfully acquired environmental
management certification management certification
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Environmental Risk Assessment and Prevention Environmental Protection Awareness
The Company has released the Environmental Factor Identification, Assessment, and Control Measures of Northern Rare Earth, The Company consistently holds training programs focused on ecological and environmental protection laws, regulations, and
establishing a robust tiered management system for environmental factors. This system meticulously evaluates the probability technical skills. In 2024, it successfully conducted five corporate-level environmental training sessions that addressed key areas,
of sudden environmental incidents, their potential impact severity, detectability, preventability, regulatory compliance, existing including pollution discharge permit management, solid waste management, environmental management system expertise,
monitoring measures, and historical incident records. By conducting comprehensive analyses, the Company effectively and the management of associated radioactive solid waste. These initiatives effectively bridged existing gaps in environmental
assesses both the likelihood and consequences of environmental risks, enabling precise identification, classification, and the management across affiliates and significantly enhanced the professional competencies of the environmental personnel.
implementation of preventive measures to mitigate potential environmental emergencies.
To further enhance environmental hazard screening and remediation, the Company prioritizes soil and groundwater pollution
Environmental Protection Training Performance
prevention and control. Through effective collaboration with relevant authorities, it ensures timely detection and prompt
rectification of environmental risks, substantially reducing the likelihood of sudden incidents. In alignment with the Guidelines
for Soil Pollution Risk Screening of Key Regulated Units (Trial), affiliates including Hefa, Huaxing Rare Earth, and Jingrui have
Training sessions Training duration Training participation
successfully conducted comprehensive soil pollution risk assessments. This initiative has notably fortified the standards of
environmental management across the Company.
Hours
Environmental Emergency Management
The Company has significantly enhanced its emergency response system by establishing an Emergency Management Leadership
Group, which operates under the direct oversight of the General Manager. This group is tasked with centralized decision-making
and command coordination. Additionally, subsidiaries and branches have developed comprehensive emergency and specialized Case Specialized Training on Environmental Protection Management
Study
contingency plans, customized to their unique operational contexts. Through ongoing emergency training and drills, the Company
systematically fortifies its emergency management capabilities and improves its incident response effectiveness. In May 2024, the Company conducted a thematic training
session focused on environmental management using a
hybrid format that combined both online and in-person
Case Acid-Alkali Leak Emergency Drill
Study engagement. This session was led by responsible personnel
from the Environmental Management Department, who
In June 2024, the Company successfully conducted an emergency response drill focused on acid-alkali leakage provided comprehensive guidance on standardized reporting
incidents. This exercise significantly enhanced employees’ comprehension of safety protocols and their proficiency procedures for crucial modules within the production control
in utilizing rescue equipment properly. Moreover, participants developed a clear understanding of how to respond system. Key areas covered included supervision and task
effectively to unexpected emergencies, meeting the objective of achieving a “proper, safe, orderly, and rapid” tracking, wastewater data management, industrial solid waste
response to acid-alkali leaks. The drill also improved coordination among employees in workshops handling acid- reporting, and routine inspection protocols. The training
alkali materials during critical incidents, thereby strengthening the command and response capabilities across effectively integrated specific legal requirements and critical
compliance considerations with relevant corporate case
all departments. Overall, the exercise yielded the anticipated training outcomes, demonstrating the Company’s
studies, which facilitated a deeper understanding among trainees of essential management strategies for environmental
commitment to robust emergency preparedness.
protection. Notably, the session enhanced awareness of environmental law compliance among operational staff at
all levels, reinforced the principle of primary responsibility for environmental stewardship, and significantly improved
technical competencies and management skills within environmental operations.
In 2024, the Company made significant strides in the development of its One Enterprise, One Policy environmental management
inventories, successfully implementing customized inventory frameworks for eight smelting and separation enterprises. A
proactive approach led to the organization of specialized training sessions across seven affiliates, including Tianjiao Qingmei
and Ruixin. Key components of these sessions included a comprehensive interpretation of core inventory requirements, cross-
enterprise exchanges to share best practices, and strengthened oversight mechanisms to ensure effective execution. As a result,
this initiative has enabled precise environmental management and markedly improved operational efficiency across all facilities.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Climate Change
Furthermore, the Company has instituted a long-term carbon management strategy that encompasses multiple dimensions,
including energy structure optimization, production process advancements, and resource recycling initiatives. Complementing
these efforts, the Company has implemented an advanced carbon emission monitoring system alongside a carbon asset
management platform. These initiatives not only accelerate progress toward the Dual Carbon goals but also position the
The Company is resolutely committed to addressing China’s Dual Carbon goals—achieving carbon peaking and carbon
Company as a leader in green and low-carbon transformation, driving decarbonization across the entire industrial chain.
neutrality—by capitalizing on its unique strengths and adhering to global agreements, including the United Nations Framework
Convention on Climate Change (UNFCCC) and the Paris Agreement. In alignment with the International Sustainability Standards Long-term Strategic Planning for Carbon Management within the Company
Board (ISSB)’s climate-related disclosure standards (IFRS S2), the Company has systematically identified climate-related risks
and opportunities, conducted comprehensive research on carbon peaking pathways, and implemented effective measures to
continually enhance its climate governance performance.
Climate-related Governance
Define key quantitative indicators to guide carbon reduction initiatives and develop
The Company has developed a robust climate change governance framework to effectively manage the impacts of climate- actionable plans tailored for specific sectors and business lines.
related issues on its operations. This framework enables comprehensive risk governance for climate-related challenges, facilitates
strategic development aligned with low-carbon transitions, and ensures compliance with international disclosure standards. By
implementing this structured approach, the Company confidently addresses both climate risks and opportunities. Implement an internal mechanism that directly links carbon management efforts to
economic benefits.
The Board serves as the highest decision-making authority regarding climate-related issues.
Its responsibilities include approving the Company’s climate change management strategy, Conduct in-depth research on carbon reduction strategies in critical process
establishing medium-term to long-term plans and annual action plans, setting climate risk
technologies.
Board of control targets, and discussing milestones for the carbon neutrality strategy during regular
meetings.
Directors
The group functions as the authoritative body for managing climate change Strengthen corporate governance structures to ensure effective execution of the
risks within the Company. It convenes regularly to facilitate cross-functional carbon neutrality strategy.
Carbon Neutrality collaboration among internal departments on carbon emissions and carbon
Strategy Leadership neutrality. This approach guarantees comprehensive oversight and informed
Group decision-making across all levels of the Company.
Build a collaborative carbon reduction system within the industrial chain, engaging
downstream application enterprises for collective impact.
They effectively enforce the Company’s climate change resolutions,
Functions/Branches/ ensuring strict management of carbon emission targets and actively
pursuing energy conservation and emission reduction objectives.
Subsidiaries
Climate-related Strategies Management of Climate-related Impacts, Risks,
To advance the Dual Carbon goals, the Company has developed the comprehensive Technology Roadmap for 14th Five-Year Plan and Opportunities
Carbon Peaking and Carbon Neutrality across the Entire Industry Chain of Northern Rare Earth. This roadmap entails a thorough
The Company acknowledges the significant impact of climate change on its operations and proactively assesses associated risks.
analysis of the Company’s current carbon emissions, applying standardized calculation methods to assess emissions throughout
By implementing efficient pollution control and resource recycling systems, it effectively mitigates climate-related challenges.
the industry chain. By forecasting peak emissions, it establishes detailed technological pathways toward carbon reduction and
This proactive approach not only addresses risks but also seizes emerging opportunities, ensuring sustainable business growth
neutrality, effectively providing a strategic action plan to meet these ambitious targets.
and a competitive edge.
The Company employs a rigorous analysis to evaluate the impacts of various capacity expansion strategies and the integration of
Capitalizing on green opportunities emerging from new energy development, the Company transforms its resource advantages
green electricity on overall carbon emissions. This approach generates grounded projections for peak emissions and associated
into product excellence. We are committed to providing optimal materials for carbon reduction in new energy vehicles, wind
pathways, thereby informing more effective emission reduction strategies.
power, and other eco-friendly applications, actively contributing to global decarbonization efforts
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
List of Climate-related Risks List of Climate-related Opportunities
Impact Opportunity
Risk type Potential impact Response Opportunity impact Response
time-frame type
Physical risk
The rapid expansion of China’s wind and solar power capacity has
significantly enhanced the price competitiveness of green electricity, leading
Extreme heat and cold waves pose significant to a gradual decrease in corporate procurement costs and offering more
risks to employee health, resulting in We establish comprehensive work stoppage protocols, sustainable energy alternatives. Concurrently, regulatory frameworks—such We will develop complementary photovoltaic
Short increased operational costs. Specifically, these ensure the availability of emergency supplies, and as mandatory green certificate consumption quotas for energy-intensive power stations to enhance the coverage of
Acute risk enterprises—are accelerating the transition toward low-carbon operations. green electricity.
term temperature fluctuations elevate expenses develop early warning systems in collaboration with
related to temperature control in smelting meteorological agencies. Energy
processes. sourcing Furthermore, the emergence of the hydrogen energy sector presents We will increase development efforts in
transformative opportunities. Specifically, green hydrogen smelting technology clean and low-carbon technologies to
has the potential to replace fossil fuels, drastically reducing emissions accelerate the transition to a sustainable
Intensified drought conditions in northern China in metal production. Inner Mongolia, with its abundant wind and solar future.
have resulted in significant water scarcity in resources, provides an optimal environment for cost-effective green hydrogen
To enhance water resource management, we implement
essential mining regions, particularly Inner production, enabling corporations to develop robust green hydrogen value
advanced water-saving technologies and develop
Mongolia. This shortage adversely affects chains and optimize their energy mix for effective decarbonization.
Chronic Middle to comprehensive water recycling systems.
critical processes such as rare earth mining, ore
risk long term dressing, and smelting operations. We establish real-time monitoring of mining area stability
and employ reinforcement techniques in permafrost We enhance energy efficiency through
Thawing permafrost undermines geological
regions. strategic upgrades to environmental
stability in these areas, dramatically heightening
Utilization The low-carbon transition strategy effectively enhances resource and energy
the risk of landslides. protection equipment, along with the
efficiency efficiency, leading to three significant advantages — reducing operational costs gradual retirement of high-energy-
through efficiency improvements, strengthening long-term competitive positioning in consuming machinery.
of the market, and aligning with growth opportunities in the burgeoning global green
Transition risk We optimize water management by using
resources economy, ultimately creating sustainable value.
advanced recycling systems to enable
We strategically reshape our energy portfolio by closed-loop water utilization.
substantially enhancing the utilization of natural gas
The transition to a low-carbon economy is
and green hydrogen. We also implement pilot projects
likely to result in tighter carbon emission
Medium for carbon capture, utilization, and storage (CCUS)
quotas, the implementation of carbon taxes, The sustained growth of green industries, particularly in new energy vehicles We rigorously investigate the carbon
Policy risk technologies. Furthermore, all subsidiaries and branches
term and the establishment of stricter environmental (NEVs), wind power, and photovoltaics, is significantly driving the demand for reduction potential of rare earth products
are mandated to perform thorough carbon emission Products
standards. Collectively, these may increase low-carbon products and advanced materials, such as rare earth permanent across critical application fields while
inventories and verification processes, thereby establishing
production costs significantly. and magnets. This trend enhances corporate competitiveness. simultaneously intensifying our research
a solid foundation for advanced energy conservation and
decarbonization initiatives. Hydrogen energy has emerged as a promising sector, functioning both as and development initiatives focused on
services low-carbon technologies and sustainable
a clean energy carrier for decarbonization and as a foundational industrial
We enhance the applications of rare earth elements feedstock with distinct competitive advantages. product innovation.
Demand fluctuations in the new energy sector are
in emerging sectors such as energy storage and
Short likely to diminish the need for rare earth permanent
hydrogen technologies, and establish closed-loop
term magnets, while advances in circular economy
supply chains and refine recycling innovations. We conduct comprehensive carbon
technologies may lessen dependency on primary
rare earth materials. We a c c e l e ra te a t ra n s fo r m a t i ve s h i f t towa rd a accounting throughout the rare earth
Market risk Medium
green, low-carbon industry by implementing industrial chain to establish a robust
term Increasing consumer preference for low-carbon The swift evolution of green trade is propelling companies toward low-carbon carbon footprint database for rare earth
reductions in source-level emissions, increasing the
products and services is driving stringent Market transitions, where early adopters will secure competitive advantages and products.
adoption of renewable electricity, promoting the
Long term requirements for emission reductions during effectively navigate international green trade challenges.
use of permanent magnet motors, and significantly We accelerate strategic initiatives
production phases.
reducing the carbon footprints of products. in the new energy sector, driving a
transformative energy mix.
Public and investor scrutiny regarding high
We effectively integrate green and low-carbon principles
carbon emissions and water-intensive production
into our strategic development and operational
practices poses a significant threat to brand value
Climate-related Indicators and Objectives
management. By implementing energy-saving and
and customer loyalty.
Reputation Medium emission-reduction initiatives, we directly address
Climate risk mitigation strategies are now under stakeholder concerns.
risk term
rigorous examination by regulators, investors, ESG
rating agencies, and the public. Failure to adopt
meaningful measures risk may cause skepticism
We prioritize collaboration with external partners to
strategically explore pathways for achieving the Dual Low-Carbon Objectives
Carbon goals in the rare earth industry.
and damage the reputation of the Company.
The Company is firmly aligned with the national development
To advance our sustainability initiatives, we will establish strategy, actively driving the transition toward green and low-carbon
We are firmly aligned with China’s Dual supporting photovoltaic power stations, secure long-term practices. It has established a comprehensive system for carbon
Carbon objectives, which necessitates ongoing agreements for green electricity procurement, and actively
Short emission statistical accounting, alongside a robust product carbon Carbon emission intensity of 7 key entities ≤2.956 tCO2/
enhancements in energy-saving and emission- pursue renewable energy subsidies.
Technology term
reduction technologies, the broader adoption
labeling certification system and an effective product carbon footprint tREO
We will enhance energy efficiency through process
risk of renewable energy sources, and increased management framework. Additionally, the Company enhances
Medium upgrades in high-consumption sectors. Carbon emission intensity of the smelting and separation
investments in research, development, and the carbon market trading system and the voluntary greenhouse
term infrastructure. These commitments may elevate We will invest in the development of young STEM talent segment ≤2.63t CO2/tREO, carbon emission intensity of
operational costs.
gas emission reduction trading mechanism, all while confidently
to strengthen our innovation capabilities and expedite metal facilities ≤6.98 tCO2/t
breakthroughs in essential technologies. advancing towards achieving the ambitious goals of carbon peaking
and carbon neutrality.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Greenhouse Gas Emissions Case
Our Carbon Emission Accounting Platform Certified by Chinese Society of Rare Earths
Study
In 2024, the Chinese Society of Rare Earths convened a scientific
Greenhouse Gas Emissions1
and technological achievement appraisal meeting in Beijing.
At this meeting, a significant milestone was reached with
the appraisal of the Carbon Emission Accounting Platform of
Direct carbon emissions (Scope 1) Indirect carbon emissions (Scope 2)
Northern Rare Earth, which aligns with the Technology Roadmap
for 14th Five-Year Plan Carbon Peaking and Carbon Neutrality
tCO2e tCO2e
across the Entire Industry Chain of Northern Rare Earth.
Experts in attendance unanimously recognized this platform
as the world’s first dedicated carbon emission accounting
Others indirect carbon emissions (Scope 3) Total carbon dioxide emissions system for the rare earth industry. With capabilities for online
analysis, intelligent evaluation, and precise calculation, this
tCO2e tCO2e platform has achieved international advanced standards and has
successfully passed the appraisal for scientific and technological
achievements.
The Company employs the operational control approach for greenhouse gas emissions accounting, ensuring comprehensive quantification of emissions from all facilities
under its management, thereby achieving 100% accuracy in its reporting.
Greenhouse Emissions Reduction Practices Resource Efficiency
As a leader in the industry, the Company has taken significant strides in implementing rare earth carbon emission verification The Company effectively integrates the principles of circular economy and resource conservation throughout its production
and securing product carbon footprint certification. Notably, we have developed eco-friendly processes and embraced renewable and operational processes. By harnessing digital construction and advancing energy-saving, it significantly enhances resource
energy solutions. These initiatives not only bolster the green competitiveness of our products but also reflect our commitment to utilization efficiency. The Company is dedicated to the responsible management of resources, thereby promoting sustainable
sustainability. development and solidifying its reputation as an environmentally conscious enterprise committed to conservation.
A key achievement is the successful connection of our 5.93 MW distributed photovoltaic power plant at the Smelting Branch to
the grid. This project generates an impressive 7 million kWh annually, providing substantial environmental benefits. Specifically,
it saves 860 tons of standard coal each year and reduces CO₂ emissions by 4,000 tons. In addition, we have constructed a 5,000 m?
Energy Management
solar carport, providing 96 parking spaces and six complimentary electric vehicle charging stations for our employees.
Energy-related Governance
The Company fully adheres to the Energy Conservation Law of the People’s
Republic of China and actively revises internal policies, including the Energy
Management Measures of Northern Rare Earth, to enhance energy management
accountability. A dedicated energy management leadership group has been
established to rigorously implement national energy conservation policies and
regulations. The Company formulates and executes comprehensive energy
conservation management rules, objectives, plans, and technical transformation
initiatives, thereby strengthening the energy management framework to ensure
optimal operational efficiency. As a testament to its commitment, by the end of
ISO 50001 energy management system certification. System Certificate
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Energy-related Strategies Energy-related Indicators
The Company has successfully launched and implemented the Guidelines for Green and Low-Carbon Management of Northern and Objectives
Rare Earth, which effectively standardizes and normalizes its energy conservation and carbon reduction initiatives. By establishing
The Company strategically develops annual energy 2025 Energy Saving Targets
a robust energy management platform, pursuing energy-saving technological transformations, and integrating renewable energy
sources, the Company systematically enhances the management and performance of energy conservation and carbon reduction management plans that incorporate well-defined
across its branches and subsidiaries. These comprehensive measures ensure the quality achievement of its green and low-carbon measurement targets. It enhances energy consumption
development objectives, establish a reputable and sustainable rare earth brand, and significantly bolster its competitiveness in monitoring and performance evaluation processes, ≤285,200 tons of standard coal equivalent (tce)
the market. thereby ensuring the successful attainment of its yearly Energy consumption intensity of 7 key entities lower by 6% YoY
objectives.
Energy Saving Technologies
Renovations for saving energy
Energy Consumption Performance
The waste heat recovery project for air compressors significantly reduces the Company’s reliance on external heating
sources while indirectly lowering greenhouse gas emissions (e.g., CO₂). This initiative has led to a substantial improvement
Indicator Unit 2022 value 2023 value 2024 value
in comprehensive energy utilization efficiency.
Comprehensive
The adopt of high-efficiency mixing approach for rare earth hydrometallurgy smelting process has achieved about 40% energy consumption kgce/tREO 1,175 997 919
reduction in electricity consumption, and can generate annual cost savings of 1.3 million yuan. per unit of output
The newly introduced rare earth concentrate drying system has reduced natural gas consumption per rotary kiln by over Indirect energy consumption
Purchased
MWh 643,017 739,771 819,687
electricity
Green power usage
Purchased steam Tons 79,318 119,186 41,225
The Company actively leverages Inner Mongolia’s competitive electricity supply advantages to secure green power quotas.
Direct energy consumption
Natural gas m3 95,983,976 73,386,298 69,759,526
Energy-related Risk Management
Petroleum Tons 50 58 44
The Company identifies several energy-related risks that could impact its
operations, including water resource shortages in key production areas, delays
in the development of new energy projects, and the pressing need to enhance Diesel Tons 944 1,065 931
equipment energy efficiency. To address these challenges, the Company has
implemented proactive strategies to secure water rights, ensuring a reliable Coke oven gas m3 27,951,160 22,052,458 20,456,292
water supply essential for uninterrupted production. Furthermore, it has advanced
the construction of distributed photovoltaic projects and developing hydrogen
Power Coal Tons 91,856 102,459 90,899
energy technologies, thereby optimizing its energy structure and progressively
increasing the share of renewable energy sources. The Company has also initiated
the Guidelines for Green and Low-Carbon Management of Northern Rare Earth, New energy/ renewable energy sources
which serves as a comprehensive framework for energy management. This
initiative includes the establishment of dedicated energy management roles, the New energy/
formulation of energy-saving target indicators, and the enhancement of equipment renewable energy MWh / / 93,750
data tracking systems. Additionally, specialized training programs on energy consumption
management are conducted to elevate the skillset of employees. By systematically
Percentage of new
promoting the standardization and practical implementation of energy conservation
and carbon reduction efforts, the Company has enhanced the management and energy/ renewable % / / 4
performance levels across its branches and subsidiaries, thereby ensuring efficient energy consumption
and compliant energy management.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Case
Study Energy Management Platform Case
Study
Project for Solid-State Hydrogen Storage Device with Hydrogen
Recycling Supply
In 2024, the Company successfully completed the second phase of its energy management platform deployment. This By integrating rare earth hydrogen storage materials with solid-state systems, this project pioneers a novel
phase builds upon the initial functionalities, achieving seamless integration of energy consumption data collection, approach to thermal management within hydrogen storage. The outcomes include versatile applications that fulfill
statistics, and analysis. The platform now facilitates real-time monitoring and analysis of energy usage, significantly hydrogen storage requirements across various scenarios, showcasing its adaptability. Furthermore, the project
enhancing operational efficiency. Eight key energy-consuming units within the Company have established their IT- introduces proprietary solid-state thermal regulation technology, which enhances the efficiency of the system.
based energy platforms, enabling comprehensive capabilities for energy monitoring, early warning, and analysis. Most notably, it significantly improves heat exchange rates during hydrogen absorption and desorption processes,
These advancements collectively contribute to a marked improvement in energy use efficiency across the enterprise. achieving performance metrics that meet and exceed both domestic and international standards. This technological
achievement has been robustly recognized and selected for inclusion in the 2023 China Excellent Technologies
Project Database (Category C) by the China Association of Productivity Promotion Centers, as publicly announced.
Water Resource Management
Water Resource Management Framework
The Company adheres rigorously to all relevant laws and regulations, including the Water Law of the People’s Republic of China,
the Regulations on the Administration of Groundwater, and the Regulations concerning Water Intake Permits and the Collection of
Water Resources Fees. Additionally, it follows the Policy on the Administration of Water Resources Demonstration of Construction
Projects and the Guidelines for Water Intake Permits. In alignment with its operational realities, the Company has developed the Water
Resources Management Policy of Northern Rare Earth. This policy prioritizes water conservation, imposes stringent constraints on
water resource usage, enhances water resource management practices, and advocates for the efficient and intensive use of water
resources.
All subsidiaries and branches diligently implement these water resource management protocols, ensuring compliance with these
stringent standards and contributing to sustainable water resource stewardship.
Water Saving Targets
Operations in Inner Mongolia consistently exceed the advanced benchmarks set by the Industrial Water Quota and
Standards of Inner Mongolia Autonomous Region (DB15/T385-2022).
Smelting Branch (Huamei) uses 2.06 million tons of purified water from Yellow River.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Water Saving Measures Development of Material Processes
The Company has effectively enhanced its source water intake control and optimized its water usage strategies, demonstrating
a robust commitment to conservation. By integrating state-of-the-art water-saving processes and technologies, the Company The upgraded process from the Green Smelting Upgrade Project significantly reduces chemical material consumption in actual
has successfully replaced a significant amount of freshwater usage with unconventional resources. It actively promotes rainwater production, achieving green, efficient, and clean manufacturing.
recycling, improves wastewater reuse, and continuously increases the efficiency of water resource utilization.
Tianjiao Qingmei’s “Packaging Optimization Project” has successfully reduced material costs by 104,000 yuan through
improved packaging techniques and minimized auxiliary material usage.
Water Management Performance Gansu Rare Earth effectively replaces traditional ammonium chloride packaging with recycled magnesium oxide woven bags,
thereby enhancing resource utilization efficiency.
Indicator Unit 2022 value 2023 value 2024 value
Fresh water consumption
per unit in rare earth m?/tREO 15.71 13.99 13.47
Circular Economy
smelting and separation
The Company rigorously implements the principles of the circular economy by seamlessly
Recycled water integrating them into all facets of its production and operational processes. In alignment with
ML 6,106 6,039 8,030
consumption its actual production needs, the Company significantly enhances its investment in technological
transformation. It actively promotes the upgrade of green process technologies, emphasizing
energy conservation, emission reduction, resource recycling, and clean production methods.
This comprehensive approach ensures the maximized utilization of resources, reflecting the
Case
Study Hybrid (Dry/Wet) Cooling Tower Company’s unwavering commitment to advancing a circular economy that harmonizes economic
and social benefits.
In compliance with the National Catalog of Encouraged
Industrial Water-Saving Technologies, Equipment, and In 2024, the Company proudly achieved the SGS Recycled Content Certification. Furthermore,
Processes (2023), the Company has implemented innovative it effectively organized its branches and subsidiaries, including Ruixin, Huaxing Rare Earth, and
upgrades to its hybrid cooling towers. Specifically, it has Gansu Rare Earth, to process 15 tons of recycled praseodymium-neodymium metal monthly.
installed top-mounted horizontal dampers and vertical damper This initiative underscores the Company’s proactive efforts in enhancing resource efficiency and SGS Recycled Content Certification
baffles to resolve air distribution challenges between dry and advancing the principles of the circular economy.
wet sections of water-saving fog-dissipating cooling towers;
it applied detachable snap-on lightweight dust screens,
effectively preventing clogging of finned tubes by dust and 2024 Resource Circularity Performance
airborne debris. This design ensures easy cleaning and
replacement of air filtration systems, and enables a reduction
in water consumption of over 50% compared to conventional Ammonia recovered from Cooling water recovered from industrial Ammonium sulfate recovered
systems. industrial wastewater wastewater from industrial wastewater
Material Management Ammonium chloride recovered Sulfuric acid recovered from industrial Hydrofluoric acid recovered from
The Company adheres to the principles of green, low-carbon, and high-quality development by implementing strict controls from industrial wastewater wastewater industrial wastewater
across all packaging processes, including classification, specifications, labeling, surface printing, and material selection.
Committed to advancing intelligent manufacturing, the Company has independently developed innovative packaging Tons
technologies. Through digital solutions such as vacuum packaging and automated coding-inspection lines, it has reduced
material consumption, and enhanced production sustainability and efficiency.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Waste Gas Management
As a frontrunner in green and low-carbon development within the rare earth industry, the Company is steadfast in its
commitment to process optimization and facility enhancements. By implementing environmentally sustainable initiatives—
including boiler flue gas desulfurization and denitrification, VOCs treatment, and oxalic acid recovery—the Company has achieved
The Company demonstrates a steadfast commitment to environmental compliance by rigorously adhering to the Law of the
substantial upgrades to its wastewater and exhaust gas treatment systems. These advancements facilitate the categorized
People’s Republic of China on the Prevention and Control of Air Pollution. Emissions of waste gases from its branches and
recycling, disposal, and resource utilization of wastewater and emissions, substantially enhancing resource efficiency and
subsidiaries within Baotou City consistently fall below the stringent limits outlined in the Emission Standards of Pollutants
significantly advancing the Company’s transition toward a green and low-carbon operational model.
from Rare Earths Industry. To address primary air pollutants, including nitrogen oxides, sulfur dioxide, and particulate matter,
the Company employs effective source control measures and real-time monitoring systems aimed at minimizing emissions.
Case Furthermore, by advancing the adoption of clean energy solutions, the Company fundamentally reduces air pollutant emissions
案例
Study Project Oxalic Acid Recovery from Precipitation Pregnant Liquor Solution
at their source. Through process optimization and the installation of advanced equipment such as spray devices and dust
Jingrui has developed an innovative process to recover oxalic acid from wastewater and reuse it in production, removal towers, the Company significantly mitigates dust generation during production. These concerted efforts not only ensure
achieving significant results including reduced oxalic acid consumption, decreased wastewater treatment volume and compliance with environmental protection standards but also reflect a proactive approach to sustainable industrial practices.
cost savings of about 1.6 million yuan within six months of implementation. The oxalic acid precipitation pregnant
liquor solution undergoes extraction, separation and recovery processes, which effectively remove impurities from
byproducts, obtain oxalic acid and recycled acids, recover high-purity oxalic acid and reusable acids, eliminate Air Pollution Prevention and Control Objectives in 2024
impurity interference during ammonium chloride evaporation, improve byproduct quality and comprehensive resource
utilization.
The concentration of waste gas emissions will adhere to the specific limits established for air pollutants in the
Emission Standard of Pollutants from Rare Earth Industry (GB 26451-2011) and its amendments.
Case
案例
Study Project of Magnesium Bicarbonate Preparation and Recycling Production Line
This project innovatively utilizes magnesium sulfate wastewater Progress of Air Pollution Prevention and Control Objectives in 2024
generated during the smelting and separation processes of Baotou
rare earth concentrate, combined with recycled carbon dioxide, to The emission concentrations of waste gases from each pollution source consistently fell below the limits outlined
produce magnesium bicarbonate solution in a circular manner. The in the Emission Standard of Pollutants from the Rare Earth Industry and its amendments. Furthermore, the actual
emissions were significantly below the national permissible limits.
magnesium bicarbonate solution effectively replaces solid magnesium
oxide in the saponification of organic phase, extraction, transformation
In response to yellow heavy pollution weather in Baotou City, we launched the “one enterprise, one policy”
and separation of rare earths. Through this approach, we achieve approach, ensuring targeted and effective emission reductions.
significant recycling of water resources and valuable chemical
materials, including magnesium and carbon dioxide, while eliminating
the pollution associated with ammonia-nitrogen wastewater at the
source. Additionally, this methodology circumvents complications
arising from calcium sulfate scaling and impurities such as aluminum and iron, thus streamlining the extraction process. As a Waste Gas Management Performance
result, the utilization rate of rare earth resources is enhanced, leading to improvements in product quality. Furthermore, this
innovative process significantly reduces production costs, promoting an environmentally friendly, efficient, and sustainable
method for rare earth production. The project boasts an impressive annual output of 1.87 million tons of magnesium
SO2 emissions SO2 emissions intensity NOx emissions
bicarbonate, recycles 970,000 cubic meters of magnesium sulfate wastewater, and recovers approximately 11 million tons of
carbon dioxide.
Tons kg/tREO Tons
Pollution Prevention and Control NOx emissions intensity Flue gas and dust emissions Flue gas and dust emissions
intensity
The Company is firmly committed to meeting stringent ecological and environmental protection standards by continuously
kg/tREO Tons
enhancing its pollution prevention mechanisms. It adopts a comprehensive approach to the integrated management of waste gas,
kg/tREO
wastewater, solid waste, and industrial noise, strictly regulating and reducing environmental pollution. This dedication supports
the Blue Skies, Clear Waters, and Clean Lands initiative, driving forward green and sustainable development with confidence and
determination.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Case
案例 Wastewater Lime Digestion Transformation Project in Huamei
Study
Water Source Conservation
The newly constructed lime digestion project represents a significant advancement The Company rigorously complies with the Regulations of Inner Mongolia Autonomous Region on Building a Key Ecological
in operational efficiency and safety. A key enhancement involves transitioning the Security Barrier in Northern China. These regulations require that all enterprises build comprehensive wastewater treatment
mode of transportation from ton bags to tank trucks, thereby streamlining the facilities to ensure compliance with discharge standards, strengthen soil and groundwater management to prevent leakage and
logistics process. Upon arrival at the designated site, the lime is pneumatically groundwater contamination, and establish a real-time groundwater monitoring system to track water quality changes, issue
conveyed into storage silos, addressing potential safety hazards associated with the timely warnings, and safeguard against pollution risks. These measures ensure that rare earth resource development does not
intersection of the unloading area and production zone. This method effectively compromise surrounding water sources, protecting both ecological security and residential water safety.
minimizes uncontrolled dust dispersion during unloading. For the subsequent
silo discharge and digestion processes, the implementation of a quantitative
screw feeder in conjunction with a tank-type digester replaces the previous
system that relied on electric hoisting, belt conveyors, and horizontal digesters.
Waste Management
This improvement facilitates more precise measurement during digestion and
strengthens production continuity. Moreover, the new lime digestion system is integrated with a Distributed Control System (DCS), General Waste
allowing for automated interlocking control throughout the operation. This transition shifts the operational environment from a
semi-closed to a fully closed system, significantly mitigating the release of dust and steam. The dust and steam produced during The Company’s general waste composition consists predominantly of
operations is effectively captured by the newly installed bag filter and spray tower, ensuring a controlled workshop environment. desulfurization gypsum, spent dust removal ash, discarded refractory materials,
The process boasts zero leakage of waste gas and dust. calcium fluoride residue, and construction debris. In alignment with the
Solid Waste Pollution Prevention and
Solid Waste Pollution Prevention and Control Management Guidelines of
Control Objectives in 2024
Northern Rare Earth, the Company has significantly enhanced its solid waste
The compliance rate for the comprehensive
management protocols through several decisive measures: bolstering pollution
Wastewater Management
process of industrial solid waste collection,
prevention and control, establishing clear primary responsibility for solid
storage, transportation, and disposal should
waste oversight, and promoting the 3R principle—Reduce, Reuse, Recycle.
The Company’s wastewater primarily comprises ammonium chloride (NH?Cl), ammonium sulfate ((NH?)₂SO?), and magnesium sulfate reach 100%.
These initiatives aim to achieve waste minimization, resource recovery, and
(MgSO?), generated through smelting processes. In alignment with China’s stringent Water Pollution Prevention and Control Law,
environmentally sound disposal practices.
the Company is committed to continuously enhancing its wastewater treatment methods by investing in resources and leveraging
technological innovations. Through a systematic approach involving categorized collection, quality-based treatment, and recycling Progress of Solid Waste Pollution Prevention
initiatives, the Company has successfully achieved Zero Discharge of industrial wastewater across all facilities within Inner Mongolia, The Company adheres rigorously to all relevant laws, regulations, and standards
and Control Objectives in 2024
while also progressing towards Near-Zero Discharge for facilities outside Inner Mongolia. These proactive measures ensure sustainable governing solid waste pollution control. It maintains comprehensive lifecycle
water management practices. management of domestic waste, construction waste, general industrial The Company achieved 100% compliant
solid waste, and hazardous waste. This robust framework encompasses the disposal of solid waste, including the proper
Wastewater Management Performance monitoring of waste generation, storage, transportation, and disposal processes treatment of 760,000 metric tons of gypsum.
to ensure absolute compliance with regulatory requirements. To ensure
transparent and standardized management, the Company has successfully
Total wastewater discharge Industrial waste water discharge Household waste water discharge
implemented a real-time digital tracking system that interfaces directly with
China’s National Solid Waste Management Information System. This advanced
Tons Tons Tons
system meticulously records waste categories, quantities, and flow trajectories
with precision.
Case
COD discharge COD discharge intensity Ammonia nitrogen discharge 案例
Study The Renewable Resource Landfill Project of Northern Rare Earth
The Company has made a substantial investment of 300 million yuan to establish Recycling Resources, a
renewable resource subsidiary, which will lead the development of the Company’s Renewable Resource Landfill
Project. This initiative effectively addresses the landfill disposal requirements for water-leached slag produced by
the Company’s smelting and separation processes in the Baotou region. It not only enhances the utilization of the
Ammonia nitrogen discharge intensity
Company’s rare earth raw materials but also accelerates the implementation of the Two Rare Earth Bases. Upon
completion, the project is anticipated to fulfill the Company’s water-leached slag landfill needs for approximately
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Hazardous Waste
Green Living
The Company’s hazardous waste primarily comprises mineral oils and waste acids produced during smelting and processing
operations. Adhering rigorously to the Cleaner Production Promotion Law of the People’s Republic of China, the Interim Measures The Company is committed to integrating ecological and environmental protection principles into the daily practices of its employees.
for Cleaner Production Audit, and the Solid Waste Pollution Prevention and Control Management Guidelines of Northern Rare Through comprehensive awareness campaigns and hands-on initiatives, we effectively promote ecological conservation obligations
Earth, the Company has implemented comprehensive management protocols. These protocols facilitate meticulous tracking of and advocate for best practices in sustainable operations. Our programs are designed to protect ecosystems and biodiversity. We are
the hazardous waste lifecycle, ensuring that all waste transfers undergo thorough transport qualification reviews, contractual fostering a culture of environmental stewardship to drive collective Sustainability.
agreements, and manifest requirements. Storage facilities are constructed in accordance with stringent national Three
Protections standards, which ensure leak-proof, corrosion-resistant, and spill containment measures. Standardized warning signs
are displayed. Green Operation Practices
Furthermore, process optimization initiatives prioritize the use of environmentally
friendly materials, including non-toxic and low-toxicity alternatives, low-VOC or zero-
VOC raw materials, and enhanced production controls to uphold internal standards, Green Office
effectively reducing hazardous material usage.
The Company has effectively implemented a robust array of energy-saving and environmental protection measures. Key initiatives
include energy efficiency upgrades such as the installation of timers and low-flow irrigation systems to optimize resource utilization,
as well as replacing conventional lighting with LED tubes. The procurement strategy prioritizes energy-efficient, water-saving, and
renewable products, while actively phasing out high-energy-consumption office equipment. Moreover, behavioral awareness campaigns
Waste Management Performance have been instituted, featuring conservation reminders in office environments, the adoption of paperless workflows, and the promotion
of green commuting options. Stringent management of official vehicles further ensures fuel efficiency. Lastly, we advocate for waste
reduction through structured waste sorting and our Clean Plate campaigns, significantly minimizing food waste.
Flue-gas desulfurization gypsum Discharge intensity of general Mineral oil
industrial solid waste
Tons Tons Green Office Management Performance
kg/tREO
Office paper consumption Office paper savings Electronic waste discharge
Discharge intensity of hazardous Total general waste generation per million-yuan revenue
waste Tons Tons Tons
Tons
kg/tREO
Toner cartridge consumption Ink cartridge consumption Household waste generation
Noise Management 2.36 Tons 2.07 Tons 1,572.20 Tons
The Company fully complies with the Noise Pollution Prevention and Control Law of the People’s Republic of China and the Technical
Specification for Application and Issuance of Pollutant Permit——Industrial Noise. To effectively manage and mitigate noise pollution,
we have implemented several strategic measures. We prioritize the utilization of low-noise equipment and have successfully replaced
Kitchen waste generation Gasoline consumption EV charging station
have installed sound insulation shields and noise barriers to enhance noise suppression. Our commitment to noise reduction extends
Tons L
to proactive equipment management, involving technical modifications to further minimize noise impact. Regular inspections and
maintenance are conducted to ensure reliable equipment operation, while periodic noise emission monitoring guarantees compliance
with established factory boundary standards. Moreover, we have completed industrial noise pollution permit applications for 14
subsidiaries and/or branches in 2024.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Environmental Awareness Biodiversity Protection
The Company demonstrates unwavering commitment to compliance with pertinent laws and regulations, including the Environmental
The Company prioritizes enhancing environmental awareness and reinforcing eco-friendly practices through comprehensive initiatives.
Protection Law of the People’s Republic of China, the Wetland Protection Law of the People’s Republic of China, the Forest Law of the
These include conducting diverse awareness campaigns to promote sustainable principles, engaging employees in sustainability
People’s Republic of China, and the Regulations on Nature Reserves of the People’s Republic of China. To mitigate ecological impacts,
efforts, and fostering a collaborative culture dedicated to environmental protection.
the Company employs strategic measures in its operations. Site selection processes intentionally exclude ecologically protected areas
and environmentally sensitive zones. Furthermore, all subsidiaries and branches are mandated to incorporate biodiversity conservation
measures at each project stage—design, construction, and operations. Comprehensive and continuous monitoring ensures timely
The Company organized an online environmental quiz on the YouSpace platform,
assessment of ecological effects, facilitating prompt corrective actions when unintended impacts arise.
addressing key topics such as environmental laws, pollution control technologies, and
sustainability best practices. The initiative drew participation from 2,600 employees,
significantly enhancing their environmental awareness and knowledge retention while Land Resource Protection
fostering greater engagement in corporate sustainability initiatives.
The Company effectively manages and utilizes land resources through optimized allocation, robust protection, and comprehensive
ecological restoration measures. A key achievement in 2024 includes the implementation of soil and groundwater monitoring at the
The Company also initiated a best practice competition focused on environmental
tailing ponds of the Baiyun Boyu Rare Earth Beneficiation Plant and the Har Oboo Beneficiation Plant. Following rigorous verification,
management solutions, garnering 18 submissions. Entries were rigorously evaluated
the Company successfully closed and deregistered these tailings ponds, demonstrating compliance with Inner Mongolia’s Dynamic
according to techniques, environmental performance, cost efficiency, and scalability.
Environmental As a result, six exemplary cases were selected for company-wide implementation,
Adjustment Scheme for Tailings Pond Environmental Supervision List (Trial) regarding vegetation recovery and remediation outcomes.
Protection Awareness fostering cross-departmental knowledge sharing to promote continuous improvement in
Campaigns environmental practices. Case
案例
Study Green Transformation at the Baiyun Obo Mine
The Baiyun Obo Mine, recognized as the largest iron and rare earth co-existing ore in reserves in northwest region
China and home to the world’s most substantial rare earth reserves, stands as a prominent asset within Inner
Environmental Protection for Public Interest Mongolia. However, its challenging environmental conditions—characterized by strong winds, low rainfall, high
evaporation rates, and deep groundwater levels—have historically hindered effective ecological restoration. Key
The Company demonstrates its commitment to social responsibility through the corporate of environmental public welfare initiatives,
obstacles have included poor soil water retention, a deficiency of essential nutrients for plant growth, and historically
including tree-planting campaigns, and by promoting sustainable, low-carbon lifestyles. These initiatives aim to enhance employees’
low vegetation survival rates.
awareness of energy conservation and environmental stewardship while cultivating a culture of sustainability throughout its operations.
In response to these challenges and to promote green mining
practices while facilitating Inner Mongolia’s transition to low-carbon
Case
Spring Time for Tree Planting mining, the Energy Conservation & Environmental Protection has
案例
Study
implemented a series of innovative solutions. These include soil
I n M a rc h 2024 , t h e C o m p a n y revitalization techniques that achieve a reduction in the bioavailability
facilitated a spring voluntary tree- of lead and cadmium, pathogen elimination, salt-alkali decomposition
planting initiative. This initiative for enhanced soil structure, and the application of microbial
effectively demonstrated employees’ inoculants alongside drought-resistant forage grasses. The outcomes
collaborative spirit and commitment of these initiatives have been remarkable, transforming waste dumps
to environmental stewardship through into vibrant grasslands, significantly increasing biodiversity, and
active involvement. It also contributed enhancing carbon sequestration capabilities.
significantly to the establishment
of a green, modern state-owned
enterprise and reinforced China’s
northern ecological security barrier.
Quality Leadership for
Operational Excellence 03
The Company firmly establishes quality as the foundation of its corporate development, prioritizing safety management as a core
principle. Our commitment to responsible business practices allows us to continually enhance customer satisfaction through the
implementation of a sustainable, high-resilience supply chain, the promotion of technological innovation, and the facilitation of
collaborative value creation. Our ultimate objective is to emerge as a world-leading rare earth enterprise.
Performance Highlights in 2024
Product on-time delivery rate Contribution to UN SDGs
R&D expenditure R&D expenditure to revenue ratio
Safety inspections Customer satisfaction
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Product Quality
The Company prioritizes quality as its foundational pillar, which drives continuous improvement through enhanced quality management
•Internal control line
systems, innovative quality models, and cultural transformation with total staff quality awareness. We aim to provide consistent
products with premium quality. Three-Line •Enterprise standard line
•National standard line
Product Quality Performance Highlights
Rate of product/service- Product recall Product on-time delivery rate Major liability incidents related
•Total staff
related complaints to product safety and quality
Tons % Three-Total •Total processes
%
•Total dimensions
Quality
Management
Quality-related Governance Mode •Strictly verify all inputs from the preceding process
The Company embraces the quality philosophy of Customers First, Brand Uppermost by Three-Process •Meticulously manage current production process
vigorously advancing the development of its quality management system. Adhering to
pertinent legislation, including the Product Quality Law of the People’s Republic of China, •Provide flawless outputs to the subsequent process
the Company executes its quality management responsibilities in alignment with the
Management Manual of Northern Rare Earth, the Procedure Documents of Northern Rare
Earth, and the Quality Management Guidelines of Northern Rare Earth. This comprehensive Three-Line, Three-Total and Three-Process Management Mode
approach enhances the standardization, normalization, and specialization of quality
management practices.
To ensure effective implementation, the Company has established a robust three-level
Case
organizational structure featuring a Chief Quality Officer, a Quality Committee, and Quality 案例
Study Northern Rare Earth is Recognized as a Flagship Enterprise under the
Champions system. It has also formulated and finalized annual quality objectives while National Quality Empowerment Strategy
strategically coordinating efforts to achieve ISO 9001 certification. Consequently, this
framework guarantees the sustained effectiveness of the Company’s quality management ISO 9001 Quality Management In December 2024, the National
operations. System Certificate Q u a l i t y L e a d e r s h i p E xc h a n g e
Conference titled Quality-Driven
Enterprises, Co-Creating the
Quality-related Strategies Future was convened in Beijing.
During this prestigious event, the
The Company strategically emphasizes quality as a cornerstone of its development, implementing a comprehensive approach to quality
Company was distinguished as
management. By instituting management measures such as quality planning, product quality oversight, quality dispute resolution, and
a Flagship Enterprise under the
rigorous supervision and assessment, the Company continuously enhances the quality of its rare earth products. This commitment
National Quality Empowerment
significantly contributes to establishing a robust quality-driven country.
Strategy, uniquely representing the
The Company has introduced an innovative quality management mode encompassing Three-Line, Three-Total, and Three-Process. The Inner Mongolia Autonomous Region
Three-Line framework enforces stringent internal control standards, effectively creating a protective net for product quality. The Three- among the selected organizations.
Total model broadens accountability, establishing a responsible chain that underscores product quality at every level. Meanwhile, the
Three-Process framework facilitates hierarchical control, forming a robust regulatory mechanism for quality assurance. As a testament
to these efforts, the Company achieved an impressive one-time pass rate of 99.12% for rare earth products during OQC process in
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Quality-related Risk Management
Case
案例
Study Quality Month Activities
During the 2024 Quality Month campaign, the Company
The Company underscores its commitment to product quality management through the rigorous implementation of the Northern effectively unified all subsidiaries and branches to achieve
Rare Earth Procedures Documents. It has established comprehensive control systems, including Non-Conforming Product Control several key objectives. We systematically reviewed quality
Procedures and Quality Dispute Resolution Procedures. These initiatives ensure the timely and effective resolution of quality disputes, achievements, benchmarked against industry-leading
the proper handling of non-conforming products, and the protection of customer rights and interests. The Company achieved zero practices, and shared advanced quality methodologies.
major quality incidents and no product recalls in 2024. Collaborative efforts were initiated to address recurring
quality challenges and enhance critical process controls.
Furthermore, we implemented a robust training program
Quality-related Indicators and Objectives that included 66 sessions on total quality management
(TQM) and 17 Chief Engineers on Quality workshops
featuring in-depth technical discussions. These initiatives
Quality Management Objectives were complemented by tailored activities to develop
employee skills, culminating in online quizzes, knowledge
competitions, and technical skill contests
First-pass yield rates across all product lines —Separation >98%; Functional Materials >98%; Metals
Completed
Segment >93%; End-Use Applications >97%
Lean Management Initiative
Zero quality incidents at secondary-level or higher operating entities Completed The Company has developed the Detailed Rules for Lean Management Implementation to strengthen digital lean management and
optimize lean processes. We have consistently performed targeted improvements and created model lean production lines as per the
internal policy.
Customer satisfaction with products and services ≥ 98.5%. Completed
Year-over-year growth in production of high-value products — high-value raw materials ≥10%; High-
Completed
value functional materials ≥12% Lean Management Performance
The integrated management systems for Quality, Environment, Occupational Health & Safety (OHS),
Completed Lean projects Lean groups Lean production lines
and Energy continue to operate effectively and sustainably.
Quality Culture Development
The Company actively fosters a culture of quality excellence through a multifaceted approach that prioritizes the implementation of
quality responsibilities at all levels. By conducting comprehensive, tiered training and awareness initiatives, the Company cultivates an
environment that emphasizes quality as a core value. This strategic focus enhances employee engagement and instills ownership and Six Sigma Management
pride in delivering superior products.
The Company is committed to advancing its quality control processes through the rigorous application of Six Sigma methodologies.
Structured Quality Control (QC) group activities further mobilize all employees in the pursuit of quality improvements, empowering These efforts aim to enhance quality management capabilities, boost efficiency, and bolster resilience in the face of market
frontline staff to spearhead enhancements. Initiatives such as Quality Month and skills competitions encourage subsidiaries and fluctuations, thereby establishing a sustainable competitive advantage in product quality. In 2024, we successfully completed eight Six
branches to engage in ongoing training, facilitate targeted quality breakthroughs, promote a mindset of continuous improvement, and Sigma projects, implemented 51 effective Quick Win improvements, standardized 76 best practices, developed 15 comprehensive work
stimulate internal innovation. This commitment ensures that quality remains at the forefront of the Company’s operational agenda. instructions, and expanded the application of quality tools to ensure continuous improvement.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Case
案例
Study Six Sigma Project Kickoff and Champion Training Safety-related Strategies
The Company has released the 2024 Work Safety Standardization Implementation
In May 2024, the Company conducted Plan to enhance safety standardization across all operations. This initiative emphasizes
a Six Sigma Project Kickoff Meeting robust internal audits and self-assessments while improving internal review
alongside a Champion Training Session. mechanisms and tracking corrective actions. Additionally, the launch of the Safety
T h e o b j e c t i ve s i n c l u d e d o u t l i n i n g Standardization Tier-Upgrading Plan aims to bolster compliance among subsidiaries
project goals, elucidating the strategic and branches.
context for Six Sigma implementation,
defining project requirements, fostering In 2024, this commitment has yielded significant achievements, with five affiliates
o rg a n i za t i o n a l a l i g n m e n t , b u i l d i n g obtaining Tier-2 Safety Standardization Certification and eighteen achieving Tier-3
consensus on methodologies across Certification.
departments, and unifying efforts to
The Company has initiated the Development of Safety Standards for the Rare Earth
enhance the development of new quality
Industry research project, spearheading the development of the mandatory industry
productivity initiatives.
standard titled Safety Regulations for Rare Earth Smelting. This initiative confidently
aims to define safety norms and boundaries, establish clear operational guidelines,
Tier-2 Safety Standardization
standardize hazard controls, enhance industry-wide safety, promote unified safety
Certificate
management practices, and significantly reduce workplace accidents through
proactive preventive measures.
Safety Bottom Line Safety-related Risk Management
The Company rigorously upholds fundamental workplace safety principles by diligently enforcing safety production responsibilities and
continually enhancing safety management systems and operational procedures. These initiatives are designed to strengthen safety
awareness among employees, develop smart, safety-focused factories, and establish a secure operational foundation for sustainable
Safety Risk Management
business growth. For 2024, a dedicated safety investment allocation amounts to 49.537 million yuan. The Company has launched the Three-Year Action Plan for Fundamental Improvement in Work Safety (2024–2026). This plan is
designed to enhance risk management improve the quality of hazard identification and rectification, and ensure the dynamic clearance
of major accident risks. Additionally, it aims to strengthen intrinsic safety and modernize the work safety governance system, fostering
a virtuous cycle of high-quality development alongside elevated safety standards. As of 2024, 100% of identified risk points under daily
Safety-related Governance management have been effectively controlled.
Safety Management System Graded Risk Management
The Company firmly upholds the Three-Manage and Three-Must principle—encompassing The Company is committed to advancing its risk
management of business, operations, and production while prioritizing safety in alignment with management system through several strategic initiatives.
China’s Work Safety Law. To enhance safety management, the Company has implemented First, it has established detailed protocols by formulating the
several key initiatives. It has revised and strengthened the Comprehensive Work Safety Implementation Rules for the Dual-Prevention Mechanism of
Responsibility System, optimized safety responsibility lists specific to departments and positions, Risk Classification and Hidden Hazard Investigation. In addition,
introduced quantitative evaluation criteria for annual safety performance assessments. expert-led teams are organized to conduct thorough safety risk
reassessments, ensuring comprehensive risk identification. The
Also, the Company has established ten distinct safety management policies, including the Dual-Prevention Mechanism for Safety Company employs the LEC Method to classify risks by severity,
Risk Classification and Hidden Hazard Investigation of Northern Rare Earth. It has augmented safety supervision frameworks and assigning tiered ownership for effective mitigation. Finally, it
organizational structures. Moreover, a Work Safety Committee has been formed as the core decision-making body, complemented by guarantees that all identified risks are both manageable and
the establishment of a dedicated Safety Committee Office to oversee daily enforcement of safety measures. These actions reflect the preventable, reinforcing its dedication to workplace safety.
Company’s unwavering commitment to fostering a culture of safety. Four-Color Risk Identification Map
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
In 2024, the Company launched the Notice on Launching the ‘Identify Risks, Eliminate Hazards’ Special Campaign, reinforcing its
A detailed hazard inspection plan is established, explicitly defining the scope of inspections,
commitment to comprehensive safety enhancements across all operational units. As a result of this initiative, 4,562 hazards were identified 1 Plan specific checkpoints, assigned responsibilities, and risk-based inspection frequencies.
company-wide, with 22 major/high-risk hazards earmarked for priority control. Furthermore, the campaign has strengthened baseline safety
protocols and intensified risk management measures, establishing a robust framework for ongoing safety improvements.
The inspection system must ensure comprehensive coverage through integrated approaches
audits, as well as routine checks complemented by focused priority-area verifications.
Safety-related Indicators and Objectives
Upon identification, general hazards shall trigger immediate remediation procedures, while critical
hazards demand emergency containment measures.
Safety Management Targets
Post-remediation, qualified technicians must conduct thorough effectiveness evaluations to
No significant incidents recorded in production safety, equipment safety, traffic safety, or fire safety Completed The originating inspection department verifies completion through formal acceptance protocols,
ensure full accountability.
Lost-time injury frequency rate (LTIFR) per 1,000 employees ＜0.6‰ Completed
Specific Process for Safety Hazards Inspection
The implementation rate of the safety training plan, full-staff training rate, three-level safety education
Completed
rate, and certification training rate for special operations and equipment operators, all reach 100%.
In 2024, the Company successfully implemented a multi-layered safety supervision system across all subsidiaries and branches. The
Annual inspection of special equipment, along with periodic inspections and registration/certification methodologies employed included Self-Audits and Peer Reviews Comprehensive Checks and Targeted Inspections, as well as On-
Completed
processes reaches 100% completion rate. Site Inspections and Off-Site Monitoring, focusing on Key Entities and Construction Projects. These initiatives ensured the effective
implementation of the work safety responsibility system while enhancing the rigor and effectiveness of safety management practices.
All identified risk points are controlled by daily management with a 100% hazard rectification rate. Completed
Case
案例
Study Pre-Holiday Safety Inspection
Spotting Safety Hazards In September 2024, just ahead of
the National Day holiday, executives
The Company is committed to enhancing its hidden hazard identification mechanism through several strategic initiatives. These include
of the Company undertook thorough
the integration of risk classification and control outcomes to establish a comprehensive hazard investigation and rectification checklist.
safety inspections at Magnetic
Furthermore, it specifies detailed criteria for hazard identification and enhances incentive and disciplinary mechanisms for effective
Materials and Tianjiao Qingmei. The
hazard management. Additionally, the Company strengthens its information archiving systems to ensure robust documentation and
primary objectives were to verify
facilitates effective implementation. Collectively, these efforts provide a solid foundation for ensuring workplace safety.
the implementation of work safety
protocols, enhance the management
of production safety, and ensure
Safety Hazards Inspection Performance stable operations throughout the
holiday period.
Safety inspections Safety hazards corrected Correction rate of safety hazards
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Safety Emergency Management Safety Culture
Safety Emergency Drill The Company is committed to enhancing workplace safety through comprehensive training programs and initiatives that promote safety
The Company has taken significant strides in strengthening its emergency
Performance awareness among employees. By standardizing operational procedures and improving safety competencies, the Company effectively
management regulations. This includes the standardization of procedures in alignment
cultivates a culture of safety. Utilizing digital tools, it has elevated safety management standards to ensure a secure and stable working
with the Work Safety Emergency Response Plan. Notable enhancements involve the
Emergency drills
environment. In 2024, various tailored safety training sessions were implemented, specifically designed for distinct employee groups,
development of unified emergency response cards that comprehensively outline
reinforcing safety awareness and equipping all staff members with essential knowledge and skills.
hazard types, response procedures, essential precautions, evacuation routes, and
emergency contact numbers. Additionally, the Company has amplified on-site
preparedness and improved the response capabilities of its staff.
Safety Training Performance
Emergency drill participation
In 2024, the Company successfully conducted 472 emergency drills addressing various
scenarios, including fire emergencies, confined space rescues, electric shock incidents,
Safety and occupational health Safety and occupational health Safety and occupational health
and crane accidents. All part-time emergency response teams received training,
training sessions training duration training participation
strengthening the Company’s overall crisis management framework.
Hours
Case
案例
Study Fire Drill
Case
案例
Study Safety Management Skills Enhancement Training
In June 2024, Gansu Rare Earth executed a comprehensive chemical firefighting and rescue drill, simulating In November 2024, the Company
diverse levels of chemical leaks in workshop areas. The exercise effectively activated internal emergency protocols, successfully conducted six sessions of
deployed the on-site professional fire brigade, and tested multi-level response strategies. Outcomes included Safety Management Skills Enhancement
enhanced technical skills and improved coordination among emergency teams, significantly bolstering company- Training, addressing critical topics such as
wide emergency preparedness. regulatory compliance, criteria for identifying
major accident hazards, standardized
workplace safety practices, and safety
management of high-risk operations and
equipment. Additionally, the training covered
the proper use of safety measures funds
and the development of a robust safety
culture. Participants gained a deeper
understanding of workplace safety through
the interpretation of safety regulations,
analysis of real-world accident cases, and introduction to the latest safety technologies. These initiatives undeniably
strengthened employees’ safety management competencies, establishing a solid foundation for a safer and more
compliant work environment.
The Company has consistently reinforced its commitment to safety culture by organizing a comprehensive series of Workplace
The Company has released the Notice on Strengthening Emergency Duty and Safety Management During Extreme Weather and Safety Month activities under the compelling theme “Safety is Everyone’s Responsibility, Emergency Preparedness is Everyone’s Skill”.
Critical Periods, which outlines comprehensive preventive measures for addressing extreme weather challenges. Furthermore, a Through a variety of engaging formats, including pre-shift meetings, safety warning education sessions, and knowledge competitions,
strategic work deployment meeting was convened to coordinate and enhance preparedness and response initiatives specifically for the Company actively cultivates a heightened awareness of safety culture. These initiatives not only foster employees’ sense of
the upcoming flood season. belonging to the corporate safety framework but also ensure the integration of safety principles throughout all production processes.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Case
案例 Workplace Safety Month
Smart and Safe Factories
Study
In May 2024, the Company successfully The Company is resolutely enhancing its information technology capabilities while expediting the upgrade of intelligent equipment. Building
i n i t i a t e d i ts Wo r k p l a c e S a fe t y M o n t h upon the 3D transformation project, we have advanced the implementation of mechanization to replace manual operations, automation
campaign, aptly themed Safety is Everyone’s to minimize workforce exposure, and intelligent systems aimed at achieving unmanned production. Key achievements include remote
Duty, Emergency Preparedness is Everyone’s monitoring of critical hazard control parameters, development of a smart safety factory through intelligent and digital solutions, significant
Skill - Keeping Escape Routes Clear. This enhancements in intrinsic safety across all operational domains, and effective reduction of overall safety risks. These initiatives fundamentally
comprehensive initiative incorporated a range reinforce the Company’s inherent safety management system.
of online and offline activities designed to
enhance safety awareness, boost employee
engagement in safety initiatives, and support
the Company’s commitment to exceptional
corporate development through improved
safety performance.
Workplace Safety Management System
Safety-themed Artworks Safety Culture Wall
Safety Culture Corridor Safety Warning Signs Intelligent Forklift Intelligent Inspection Line
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Responsibility for Customers
The Company has developed the Northern Rare Earth Product After-Sales Quality Dispute Management Procedures, which incorporate
a robust customer complaint mechanism that ensures a comprehensive closed-loop management system. This system encompasses
the categorization of complaint types, meticulous documentation of complaint details, thorough investigation of root causes, proposal
The Company places high importance on customer service quality, continuously optimizing the customer service system and refining of effective solutions, tracking of resolution progress, and provision of feedback and evaluation to customers. Notably, in 2024, the
service standards. We are committed to protecting customer rights through ongoing initiatives, strengthening data privacy safeguards, Company didn’t receive customer complaints.
building long-term, mutually beneficial partnerships, and creating shared value and collaborative growth with our clients. By fostering
reciprocity and win-win cooperation, we achieve shared development with our customers.
Customer Satisfaction Survey
Customer Service System The Company prioritizes customer experience through the Northern Rare Earth Customer
Satisfaction Measurement Management Procedures, which encompass systematic customer
Customer Satisfaction
The Company unwaveringly follows a customer-first service philosophy and rigorously enforces the Consumer Rights Protection Law
satisfaction surveys, standardized evaluation protocols, and a robust assessment framework.
of the People’s Republic of China. To standardize customer management and elevate market service awareness, we have developed
This comprehensive approach facilitates the collection of insightful feedback on products
comprehensive internal regulations, including the Northern Rare Earth Customer Management Procedures and the Northern Rare Earth
and services, identification of improvement areas, implementation of targeted enhancements,
Marketing Service Management Procedures. These initiatives effectively strengthen brand influence, enhance market competitiveness,
and continuous elevation of quality management and service standards. Notably, in 2024, the
and maintain the highest standards of service excellence.
Company achieved a remarkable 100% customer satisfaction rate.
Customer Information
Development Management
Customer Communication
Customer Classification Customer Service
and Review Management The Company continuously enhances its marketing strategies by closely monitoring policies from national and local governments,
Management
strengthening collaborations with local authorities, maintaining ongoing dialogues with customers, and deepening partnerships with
high-quality strategic allies. Through multi-channel engagement—encompassing phone, email, and site visits—we have established a
closed-loop communication system that facilitates demand insight, service upgrade and ecosystem synergy.
Customer Admission Customer Complaint
Management
Customer Relations
Customer Privacy Protection
Maintenance
Management
Customer Management Structure
Customer Information Archive
The Company prioritizes the protection of customer rights and provides exceptional end-to-end services—encompassing pre-sales,
The Company places a significant emphasis on the management of customer information
during-sales, and after-sales—to optimize the user experience. Our commitment lies in fostering long-term, stable, and collaborative
through the implementation of a comprehensive customer data archive system. This system
partnerships with our customers.
methodically collects and preserves essential information, including credit profiles, sales
contracts, business correspondence, and legal dispute resolutions. Through centralized
Before Sale During Sale After Sale management, regular updates, and consolidated reporting, we guarantee data accuracy and
timeliness while enhancing the completeness and reliability of information. Consequently, this
Our integrated service model The sales cycle is managed To ensure continuous
robust framework supports informed decision-making and fosters more efficient, professional
delivers comprehensive information through end-to-end tracking improvement, we implement
services. The ultimate outcomes are a strengthened customer satisfaction and reinforced
support through market research, with proactive progress updates satisfaction surveys, establish
product promotion campaigns, and to clients, complemented by dedicated complaint hotlines with client trust.
structured feedback systems. We scheduled follow-ups to monitor multiple reporting channels, and
provide customized solutions via
efficient inquiry processing and
evolving needs and satisfaction
levels.
conduct periodic relationship
reviews with key accounts
Customer Privacy Protection
specialized technical evaluations for through mutually scheduled visits.
The Company upholds exemplary standards in customer privacy protection, strictly adhering to the Consumer Rights Protection Law
unique product requirements.
of the People’s Republic of China. We have implemented stringent protocols to safeguard all customer information obtained during
business operations, prohibit unauthorized access or disclosure of client data, and eliminate any potential breaches of customer
Customer Service System privacy. As a testament to our effectiveness, we achieved zero incidents of customer data breaches in 2024.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Green Procurement Practices
The Company actively enhances its supply channels to ensure a reliable procurement of essential bulk materials. By establishing
The Company is resolutely committed to establishing a secure, healthy, and stable supply chain through several strategic initiatives.
strategic partnerships with leading domestic and international suppliers, we reinforce the resilience of our supply chain. Additionally,
These include the integration of ESG principles into supply chain management, equitable treatment of all suppliers, the adoption of
we have implemented robust emergency procurement protocols that effectively maintain stability during disruptions. In 2024, we
green and transparent procurement strategies, and the enhancement of supplier management standards. Our purpose is to actively
achieved zero major supply chain incidents and sustained uninterrupted material supply.
co-create a collaborative and sustainable supply chain ecosystem, ensuring long-term viability and ethical responsibility.
Supplier Management Supply Chain Risk Management
The Company firmly employs the principles of “categorized management and dynamic maintenance”, establishing robust supplier Critical risk incidents in the Suppliers involved in critical Persons involved in critical
management systems through internal regulations, notably the Northern Rare Earth Supplier Management Procedures. We have supply chain supply chain risk incidents supply chain risk incidents
implemented standardized processes for supplier sourcing, qualification, and tiered evaluation, as well as optimal resource utilization
and quality-assured procurement mechanisms. This comprehensive framework facilitates the development of a transparent, efficient,
and sustainable procurement and supply chain management system.
Supply Chain Risk Management Synergistic Development with Suppliers
The Company is diligently enhancing its supplier ESG management by explicitly integrating ESG principles into its Supplier
The Company as well as its subsidiaries and branches uphold several core principles in supplier
Management Procedures. This integration encourages the incorporation of ESG criteria throughout the entire supplier lifecycle,
engagement that emphasize the importance of strategic partnerships and quality. Our approach
including admission, performance evaluation, and ongoing assessment. We maintain rigorous oversight of supplier practices in critical
prioritizes collaborations with manufacturing enterprises while focusing on creditworthiness
areas such as labor rights protection, environmental compliance, occupational health and safety, and business ethics. Our categorized
and service excellence. To strengthen market development, we engage in comprehensive
supplier management system ensures stringent control over admission, performance evaluation, and exit procedures, facilitating
resource research, conduct in-depth negotiations, and expand our strategic supplier network.
effective supplier risk assessment and strengthening the stability and reliability of our supply chain.
The enhanced collaboration framework employs multiple engagement channels, including phone
calls, correspondence, on-site visits, and strategic partnership forums. Our strategic objectives
are to establish long-term relationships with suppliers, deepen industrial collaboration, and
Supplier Management Mechanism
share developmental achievements, all while ensuring an efficient and interconnected industrial
ecosystem. This approach guarantees end-to-end supply chain stability, culminating in optimized
Suppliers are required to adhere to national, regional, and industry regulations, as well
Supplier supplier network structures, enhanced resilience, and sustainable value co-creation.
as the Company’s standards for quality, safety, and environmental management. For the
admission procurement of bulk raw materials and critical equipment, it is essential to implement
mandatory traceability verification and conduct on-site inspections.
Efficient Procurement Transparency
Supplier We carry out both regular and annual assessments that emphasize quality performance,
service reliability, and compliance records. Essential requirements include: zero violation The Company operates within a robust procurement governance framework that mandates strict adherence to principles of
review and
records, complete supply chain compliance, and the development of sustainable transparency, fairness, and impartiality. Our procurement practices are underpinned by a commitment to good faith and scientifically
assessment
partnerships. informed selection, ensuring regulatory compliance with essential guidelines, including Procurement Procedures for State-Owned
Enterprises and the Northern Rare Earth Procurement Management Procedures. To enhance competitiveness and efficiency, we
employ a diverse array of procurement methods, such as public tendering, price inquiries, comparative selection, and competitive
Supplier Approved suppliers are systematically categorized into three distinct classifications:
negotiations. Our strategic partnership model emphasizes the establishment of long-term agreements with reputable suppliers, striking
classification Strategic Suppliers, Key Suppliers; and General Suppliers.
a balance between supply stability, risk mitigation, and mutual value creation.
We foster an ethical procurement ecosystem by prioritizing professional development through regular competency training and anti-
The evaluation results will inform the following actions: downgrading suppliers based on corruption compliance programs. Our strict integrity safeguards and comprehensive ethical oversight create a culture of accountability,
Supplier exit
performance metrics; or removing suppliers from the approved list as necessary. underpinned by mandatory integrity agreements with suppliers and transparent practices. Through our commitment to pioneering
clean procurement standards and driving ethical industry practices, we fulfill our corporate responsibility with tangible actions.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Technological Innovation Technological Innovation Strategies
The Company has effectively developed and implemented the Collaborative
Guided by the principle that Technology Enables Development, Innovation
R&D Expenditure Sci-Tech Innovation Work Plan and the Research Funding Management
Leads the Future, the Company identifies technological innovation as Technological Innovation Principles
Guidelines, utilizing a Block Grant + Negative List mechanism. This strategic
the fundamental driver of corporate growth. We strategically integrate
R&D expenditure R&D expenditure to approach ensures the efficient integration of R&D resources, fostering a Centered on addressing industrial needs.
our innovation chain with the industrial chain, effectively transforming
revenue ratio robust environment for the transformation of research achievements. Key
technological advancements into a powerful engine for cultivating new Propelled by open collaboration among
implementation measures include the rigorous execution of the Northern
high-quality productive forces. This resolute commitment positions us as stakeholders.
billion yuan Rare Earth Sci-Tech Innovation Leadership Plan and the establishment of an
a premier rare earth enterprise and establishes us as a key contributor to Anchored in the development of robust
open, shared, and collaborative innovation ecosystem. This framework fully
the creation of the Two Rare Earth Bases. In 2024, we marked significant platforms.
leverages the leading and driving role of sci-tech innovation, positioning the
achievements in research and development, with an expenditures of 1.604
Company for sustained success in its endeavors. Invigorated by institutional reform.
billion yuan, representing an R&D dedication of 5.11% of total revenue.
Technological Innovation Governance
The Company has successfully established a comprehensive and robust research and development management system, underscored Technological Innovation Risk Management
by a series of internal regulations. These include Research and Development Project Management Procedures, Research and
Our R&D compliance framework is rigorously aligned with pertinent policies and regulations. We conduct regular compliance reviews
Development Funding Management Procedures, and R&D Achievement Transformation Procedures. Key features of this system allow
to systematically examine our research activities, identify potential risks, and provide corrective recommendations. In accordance
for end-to-end project management, optimal utilization of societal science and technology resources, enhanced incentive mechanisms
with the Northern Rare Earth R&D Project Management Procedures, we have established daily research integrity protocols and clear
for achievements, and a strengthened framework for the application and promotion of research outcomes.
accountability mechanisms. These measures have led to significant risk control outcomes, ensuring regulatory conformity, maintaining
Moreover, the Company has adopted an innovative architecture titled One Hub + Three Bases. This structured framework incorporates operational standardization, and proactively mitigating innovation risks.
the National Enterprise Technology Center as the core hub, facilitating organizational coordination, management oversight, and
resource integration across various platforms. The three-tier innovation chain encompasses an R&D Base for achievement cultivation,
a Pilot Base dedicated to product trial production, and an Incubation Base focused on commercial output.
Technological Innovation Indicators and
Objectives
Science and Technology Management
• We will develop new products, new processes and new equipment;
Committee of Northern Rare Earth
• We will undertake standardization pilot and/or demonstration projects
Innovation
Science and Technology Expert Objectives • We will complete the transformation from technological innovation to industrialization;
Committee of Northern Rare Earth
• We will build demonstration production lines.
Northern Rare Earth Technology Center
We will intensify annual R&D investment to maintain our status as a National High-
Tech Enterprise,
We will cultivate domestic-leading research teams specialized in advanced materials
and related fields.
Management We will consistently participate in national, provincial, and municipal-level research
Incubation
Objectives initiatives each year.
R&D Base Pilot Production
Base Base We will expand our portfolio of national-level technological innovation platforms and
achieve recognition as a Little Giant enterprise specializing in niche technologies.
We will strengthen postgraduate talent development programs to foster a robust
Technological Innovation Framework pipeline of master's degree and above professionals.
R&D and Innovation Management Objectives
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
R&D Platform Infrastructure Case
案例
Study
Establishment of Joint Laboratory of Rare Earth New Materials and Applications
The Company strategically leverages sophisticated science and technology platforms as essential drivers for enhancing its capabilities, During the opening ceremony of the 16th China·
thereby securing national recognition as a technology innovation demonstration enterprise and a high-tech enterprise. Its platform Baotou Rare Earth Industry Forum, the Company was
portfolio comprises nine national innovation and service platforms, two national enterprise technology centers, two national honored with the prestigious title of National Leading
postdoctoral research stations, and sixteen provincial-level (autonomous region) innovation platforms. This strategic utilization not only Enterprise in Rare Earth New Materials. This recognition
accelerates project commercialization but also effectively addresses technical bottlenecks, broadens industrial perspectives, tracks underscores the Company’s commitment to advancing
cutting-edge advancements, and supports transformative innovations. the field of rare earth materials. A key achievement in
this pursuit is the establishment of the Joint Laboratory
of Rare Earth New Materials and Applications in
Case collaboration with Xiamen Tungsten Co., Ltd. The
案例
Study Establishment of Magnetic Materials Academician Workstation with Beihang University
laboratory focuses on several research areas, including
rare earth smelting and separation, the development of
In June 2024, we entered a strategic partnership
rare earth metals and alloys, the creation of permanent
with Beihang University to establish the Magnetic
magnetic materials, rare earth hydrogen storage
Materials Academician Workstation. This collaboration
material and solid-state hydrogen storage installations,
will concentrate on the development of rare-earth
and the advancement of optical functional materials
permanent magnetic materials, magnetostrictive and permanent magnet motors.
materials, and other advanced materials and
applications. The primary objectives of this initiative
include conducting fundamental and cutting-edge
research, developing core technologies, accelerating
technology transfer and commercialization, and
creating a high-level open innovation platform. This
partnership is poised to significantly enhance our
innovation capabilities and strengthen its market
competitiveness.
Enterprise Technology Center National Level Key Laboratory
Case
案例
Study University-Enterprise Joint Laboratory for Rare Earth Materials Research
In 2024, the Company successfully established
a joint laboratory agreement with Fudan
University and Inner Mongolia University,
resulting in the formation of the University-
Enterprise Joint Laboratory for Rare Earth
Materials Research. This initiative focuses National Engineering Research Center International Science and Rare Earth New Material Testing and Evaluation
on addressing critical technical bottlenecks, Technology Cooperation Base Platform (Rare Earth Industry Center)
streamlining technology commercialization,
and contributing to industrial upgrading The Company has enhanced its strategic partnerships with esteemed universities and research institutions, including Zhejiang
through efforts around four areas. University, Lanzhou University, and Inner Mongolia University of Science and Technology. By concentrating on critical areas such
as the development of scientific and technological innovation platforms, addressing significant research challenges, facilitating the
transformation of scientific achievements, and nurturing talent, the Company fosters a robust integration of industry, academia, and
research to generate substantial momentum for the innovative advancement of the sector. In 2024, the Company successfully forged
cooperative relationships with four additional industry-university-research institutions and allocated an expenditure of 20.59 million
yuan to support strategic collaboration projects with universities.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
R&D Training & Development National Projects undertaken in 2024
The Company organizes specialized research training programs tailored to the specific needs of the rare earth industry. These
Key Technologies and Application Demonstration for Intelligent Preparation of High-Quality
initiatives are designed to foster a sustainable innovation ecosystem, unlock the potential of science and technology talent, enhance
employees’ independent innovation capabilities, elevate research quality standards, and continually upgrade technical competencies. Ce-Pr-Nd Alloys
Project Task 4 of Integrated Demonstration of Green and Efficient Development and
Utilization of Baiyun Obo Polymetallic Resources
R&D-related Training and Knowledge-sharing Performance
R&D training and exchange Project Task 5 of Integrated Demonstration of Green and Efficient Development and
R&D training and exchange participation
sessions Utilization of Baiyun Obo Polymetallic Resources
Metallurgical Process and Flake Structure Formation Mechanism of High-Quality Rapidly
Solidified Strips
Case
案例
Study Training on Standardization Policies and Requirements for Standard Project Declaration
Preparation and Property Control of High-Stability Nano-Ceria Polishing Slurries
In December 2024, a comprehensive training course titled
Standardization Policies and Requirements for Standard
Project Declaration was conducted. This initiative significantly
enhanced participants’ understanding of standardization Technological Innovation Awards
policies and clarified the essential requirements for effective
The Company has established itself as a formidable leader in the rare earth sector, leveraging its exceptional technical expertise and
project declaration. As a result, participants experienced
innovative spirit to engage in the research and development of advanced technologies. By effectively addressing critical technical
improved capabilities in establishing and declaring standard
challenges, the Company has achieved a series of impactful research milestones that underscore its preeminent position and
projects. Furthermore, the training contributed to the
innovative capabilities within the industry. These accomplishments not only demonstrate the Company’s technical leadership but also
development of a robust standardization talent pool and
set a standard for high-quality development across the sector. In 2024, the Company garnered significant accolades, including a first
facilitated the high-quality construction of the national
prize and four second prizes of the Rare Earth Science and Technology Awards, a first prize of the Science and Technology Awards of
technical standard innovation base, reinforcing the importance
the China Nonferrous Metals Industry, and multiple awards from the National Rare Earth Standardization Technical Committee.
of standardization in advancing technical excellence.
Case We Receive the First Prize of the Science and Technology Awards of the
案例
Study
Chinese Non-ferrous Metal Industry
R&D Achievements
The Company’s leadership in the development of the First Batch of Critical
International Rare Earth Standards—Rare Earth Terminology Series has
earned it the prestigious first prize of the Science and Technology Awards
The Company has solidified its position as a leading innovator, driving collaborative advancements in key technologies and advanced
of the Chinese Non-ferrous Metal Industry. This notable achievement
research. This strategic focus has yielded original, high-quality technological achievements that reinforce our commitment to
significantly elevates China’s rare earth industry standards on the global
innovation. Through technological innovation, we are poised to industrial innovation industries and enhance our core competitiveness.
stage, providing a robust foundation for the establishment and advancement
of relevant international standards. Consequently, it fosters enhanced global
In 2024, our R&D portfolio highlights the execution of over 30 major projects, including six national-level initiatives, 25 projects aligned
collaboration and drives technological progress within the rare earth sector.
with Inner Mongolia’s Technology Breakthrough initiatives, two municipal-level projects in Baotou, and several internal priority projects
that collectively underscore our strategic vision.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Transformation of R&D Achievements
Overview of Standards
The Company accelerates the transition from laboratory innovations to industrial applications by implementing a robust mechanism
for transforming scientific research achievements. This strategic approach ensures a seamless integration of research innovation
Total standards developed in the year
with industrial development.
In 2024, the Company submitted applications for 176 patents, comprising 134 inventions and 42 utility models. Notably, the Thermal
Stabilizer of Ternary Complex of Rare Earth-Stearic Acid-8-Hydroxyquinoline and Its Preparation Method has been distinguished as
a recommended project for the Invention (Utility Model) Patent category in the 25th China Patent Award.
International standards National standards Industrial standards
Overview of Patents
Total patents authorized by the Total patents newly authorized
New patent applications in 2024 Local standards Group standards Enterprise standards
end of the year in 2024
Technological Innovation Incentives
awarding exceptional R&D teams and individuals, and enhancing the professional prestige of researchers. As a result, the
Company has achieved comprehensive technological breakthroughs across the entire industry chain, significantly accelerating the
Inventions authorized Inventions authorized Invention applications commercialization of research outcomes and laying a strong foundation for new quality productive forces. In 2024, the Company
Utility models authorized Utility models authorized Utility model applications recognized 29 qualified patents and distributed a total of 85,000 yuan in rewards.
Industrial designs authorized Industrial designs authorized
Industrial designs applications 0
IPR Protection
The Company rigorously complies with all relevant laws and regulations, including the Trademark Law and the Patent Law of
the People’s Republic of China. We have established and refined the Northern Rare Earth Patent Management Procedures to
strengthen our intellectual property (IP) management system. Our initiatives include implementing a comprehensive patent
In 2024, the Company achieved notable advancements in technological innovation, marking two core technology breakthroughs and
incentive and evaluation mechanism, conducting regular IP protection training programs, and motivating employees to innovate.
the development of eight new processes and pieces of equipment. Additionally, it successfully commercialized eight research and
We are committed to enhancing technological innovation and upholding high standards of IP protection.
development outcomes and formulated or revised 56 standards. These accomplishments underscore the Company’s commitment
to integrating technology with industry, accelerating the transformation of research into practical applications, and affirming its In 2024, we focused on developing a robust patent portfolio in smelting and separation technologies, implementing a patent
leadership role in establishing China’s Two Rare Earth Bases. early-warning system in pyrometallurgy, and significantly upgrading our IP management capabilities.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
IPR Training Performance National Technical Committee for Baotou Energy Conservation
Standardization of Rare Earth (SAC/ Industry Association
TC229) associations
IPR protection training sessions IPR protection training participation IPR protection training duration
Inner Mongolia Society Baotou Rare Earth
Hours of Rare Earths Industry Alliance
Association of Inner Mongolia Inner Mongolia Association for
Rare Earth Industry Public Companies
Case
案例
Study Training on the High-quality Development of Intellectual Property
Case
案例
Study Northern Rare Earth Showcased on 2024 China Brand Day
In April 2024, the Company, in collaboration with the BRIRE, the
Technology Innovation Center for Rare Earth New Materials, the In May 2024, the Company prominently showcased its
National Technical Standard Innovation Base (Rare Earth), and the innovations at the China Brand Day event held at the Shanghai
Inner Mongolia Autonomous Region High-value Patent Cultivation World Expo Exhibition and Convention Center. The exhibition
Center, held a training course focused on advancing the high- featured an array of high-end application products, including
quality development of intellectual property. This training course polishing solutions, solid-state hydrogen storage systems,
provided in-depth insights into essential topics, including the and rare earth permanent magnet motors, alongside notable
fundamentals of patents, strategies for patent mining, techniques scientific research advancements. Utilizing physical models,
for patent application writing, effective patent layout, and the analysis of patent navigation applications. Such graphic displays, video presentations, and comprehensive
comprehensive training significantly enhances the professional capabilities of intellectual property management brochures, the Company effectively elevated its brand image.
personnel, cultivates a strong awareness of intellectual property protection, and fosters the effective transformation This multifaceted approach successfully garnered significant
and application of intellectual property. attention and engagement from diverse sectors of society.
Industry Exchange and Cooperation Case China (Baotou) Rare Earth Permanent Magnet Motor and Rare
案例
Study
The Company is committed to advancing industry exchange and collaboration by strengthening ties with industry associations and Earth High-end Application Exhibition
external enterprises. By effectively integrating resources and expertise, it promotes technological progress and catalyzes industry In August 2024, the Company showcased its prowess at the Second China (Baotou) Rare Earth Permanent Magnet
development. Furthermore, the Company clarifies its brand value objectives, refines its brand strategy, and enhances its influence Motor and Rare Earth High-end Application Exhibition. The exhibition featured multiple designated areas, including
through strategic partnerships, all of which empower the sustainable growth of the rare earth industry. those for Northern Jiaxuan, Northern Zhongjiate, the Rare Earth Products Exchange, and the National Innovation
Center. These comprehensive displays effectively highlighted the Company’s significant advancements in rare
earth permanent magnet motors and high-end rare earth applications, thereby enhancing its brand recognition and
influence in the industry.
Chinese Association for Quality
China Non-Ferrous Metals Industry
Association of China
Association/Rare Earth Branch of China
Rare Earth Industry
Non-Ferrous Metals Industry Association
The Chinese Society of Industry China Association for
Rare Earths associations Public Companies
People Centered Growth
in Love 04
The Company is committed to integrating its business operations with a strong sense of social responsibility. Internally, it embrac-
es a human resources philosophy that emphasizes the importance of character development and talent cultivation, with the goal
of empowering individuals to achieve personal fulfillment while strengthening the enterprise and benefiting its employees. Exter-
nally, the Company adheres to a harmonious development approach that focuses on accountability, fulfilling societal obligations,
and actively giving back to the community. This strategy not only serves the industry and local area but also fosters win-win
cooperation and collective progress, thereby enhancing synergy between the enterprise, its employees, and society at large.
Performance Highlights in 2024 Contribution to UN SDGs
Total employees Total training expenditure Occupational health Employee care and assistance
examination coverage expense
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Rights and Interests of Employees 154 583
The Company prioritizes the protection of employees’ rights and interests, continuously enhancing its salary and benefits system
to ensure fair compensation for employees’ contributions. By actively implementing democratic management practices, the
Company effectively safeguards employees’ legally entitled rights while fostering a collaborative environment. This commitment
not only promotes individual well-being but also drives the sustained and stable development of the Company. Employees
Employees by by education
Legal Employment
level background
The Company demonstrates rigorous compliance with labor laws and ethical employment practices, ensuring adherence to the
Labor Law and Labor Contract Law of the People’s Republic of China. It firmly upholds core employment principles, prioritizing 7,319
equality, diversity, and inclusion in all human resources practices. Non-discrimination policies are enforced throughout the
Senior Management Three-year college or below
recruitment, employment, and promotion processes, ensuring equal rights and development opportunities for every employee.
Middle management Bachelor’s degree
The ethical compliance framework incorporates a strict zero-tolerance policy for child labor and forced labor, guarantees equal
Other employees Master’s degree or above
pay for equal work regardless of gender, and mandates employment contracts for all employees. In 2024, the Company reported
zero violations regarding child or forced labor and achieved full contract coverage for its workforce.
Mainland China New employees
Staff Composition
Employees with special needs
Total employees
Employees with disabilities
Employees turnover rate Employment contract rate Percentage of local employees Social security rate
Remuneration and Benefits
The Company is committed to establishing a comprehensive, equitable, and scientifically-designed compensation and benefits
Employees by Employees by system. This system effectively aligns rewards with corporate performance and individual contributions while allowing for
gender age group flexible adjustments to total compensation through rigorous evaluation and control. By fostering a transparent and appealing
remuneration environment, the Company ensures market-competitive pay structures, performance-linked incentive mechanisms,
and sustainable compensation governance. Ultimately, this strategic approach not only supports long-term organizational stability
but also enhances talent retention and motivation, thereby driving shared success for both employees and the Company.
Male 30 years old or below
Statutory social insurance (pension, medical, work injury, maternity, unemployment), housing
Female 30 - 50 years
provident fund, enterprise annuity, and supplementary medical insurance.
Basic Benefits
Paid leaves (national holidays, full annual leave, sick leave, maternity/paternity leave, nursing leave)
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Performance metrics are ambitious, targeting a 100% satisfaction rate in proposal responses, strengthened quality control
through enhanced worker inspections, and increased employee satisfaction through participatory management practices.
•Employee accident mutual aid insurance, and supplementary medical coverage
Additional
Benefits •Allowances (meal, transportation, winter heating), and festival/birthday gifts
Case The Third Session of the Third Workers’ Representative
案例
Study
Congress and the Fifth Session of the Third Members’ Congress
The Company successfully conducted the third session of the
third Workers’ Representative Congress and the fifth session of
Term-based performance incentives, General Manager Reward Fund, employee innovation
improvement awards, management innovation prizes and so on. the third Members’ Congress, where representatives engaged
Incentive in a thorough evaluation of the Company’s leadership and the
Monetary awards for model workers (all levels), outstanding Communist Party members, master development of the Workers’ Home. Empowered by a profound
Programs
craftsmen, advanced production workers, Top Ten Outstanding Youths, outstanding female sense of responsibility, worker representatives actively contributed
employees, and “Five-Virtue Civilized Family”
by sharing their experiences, providing suggestions, and offering
effective strategies tailored to their specific roles. This collaborative
effort reflects a commitment to advancing the collective goals of
Trade Union the Company as they embark on a promising new journey together.
The Company prioritizes employee welfare, leveraging the labor union to meticulously design and implement targeted welfare
programs. Through a range of initiatives, the Company significantly enhances employees’ sense of value and satisfaction, thereby
providing robust support for their holistic development. This commitment not only fosters a positive workplace culture but also
promotes overall success.
Employee Development
The Company effectively implements a strategy centered on strengthening the enterprise with talents, thereby aligning its
Trade Union Performance
efforts with the objectives of the 14th Five-Year Plan and the pursuit of high-quality development. By prioritizing the meticulous
introduction, cultivation, retention, and utilization of talent, the Company is committed to fostering a robust talent system and
mechanism. This approach not only enhances the Company’s operational capabilities but also ensures a strong talent backbone
Total trade union members Full-time trade union staff Number of trade union essential for establishing itself as a world-class leader within the rare earth industry. Furthermore, it positions the Company as a
key contributor to the construction of the Two Rare Earth Bases.
Talent Acquisition and Cultivation
Trade union satisfaction Rate of requests resolved by trade union
Global Inclusion, Collective Brilliance
In 2024, the Company successfully recruited a total of 42 high-level talents, comprising two
The Company is committed to enhancing its employee-centered democratic management system, with implementation primarily
facilitated through the Workers’ Congress and the Open Factory Affairs Disclosure. Key initiatives include regular operational doctoral degree holders, master’s graduates, and undergraduates. Notably, the influx
briefings, which promote transparency, and an efficient proposal handling process via the Workers’ Congress. Additionally, the
of graduates from Double First-Class universities has doubled.
establishment of multi-channel communication platforms empowers employees while safeguarding their rights to information,
participation, and oversight.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Sound Environment, Talent Blossoming The Company demonstrates a strong commitment to recognizing and promoting exceptional professionals
through various prestigious awards at multiple levels, including national, autonomous region, and municipal levels.
The Company has developed robust talent cultivation, employment, and incentive mechanisms. By fostering an environment of
genuine support and implementing practical measures, it effectively empowers a diverse range of talents, providing them with
expansive opportunities for innovation and creativity. In 2024, notable achievements in talent cultivation included the selection of one expert
for the National Master Craftsman Development Program at the national level. At the
Special Actions for Talent Cultivation
autonomous region level, accolades included one Outstanding Contribution Expert, one
Young Innovation Talent, one Western Light Visiting Scholar, and one candidate for the
Special Action for We enhance collaboration with prestigious domestic higher education institution. By jointly offering master’s Baotou Craftsman Development Initiative. Furthermore, there are pending nominations
Improving Educational degree programs in key disciplines and facilitating the pursuit of doctoral degrees for exceptional technical for four candidates for the Leading Innovation Talent Awards, two for the Young Elite
Attainment
personnel, we will continuously elevate the knowledge and educational qualifications of our workforce.
Talent Awards, three for the Government Special Allowance, and specialists within
We are committed to the principle of bringing in experts and sending out employees for learning. By
Special Action for the Key Advanced Materials Field.
Improving Innovation implementing diverse strategies, we will facilitate knowledge renewal and expand the perspectives of talent at all
Ability levels.
We develop and implement robust selection, cultivation, and training mechanisms for Baiyun Scholars, Chief Rare
Special Action
for “Head Geese Earth Scientists, Professional Scientists, and Rare Earth Craftsmen. This initiative will significantly enhance the
Navigation” development of local top-tier talent.
Case
案例
Study The Company Released the Vocational Skill Standard Filling a Gap in the Industry
Special Action for We enhance the cultivation of key talents, reinforcing the core competencies of R&D and technical professionals
Cultivating Outstanding
to establish a powerful driving effect.
Engineers
To effectively address the demands of
establishing a world-class leader in the
We implement systematic job attachments and practical training that foster strong connections between
Special Action for rare earth industry and to advance the
the Company and its branches/subsidiaries, as well as between research institutions and production teams.
Multi-dimensional development of the Two Rare Earth
Practical Training of This approach facilitates meaningful engagement between upstream and downstream technical processes.
Outstanding Talents Consequently, it enables young professionals to expand their perspectives, refine their skills, and develop Bases, the Company has developed
holistically across various domains. and published the Vocational Skill
Standard of Northern Rare Earth for
the first time. This bridges a significant
Talent Cultivation Initiatives
gap in vocational skill standards within
China’s rare earth sector, offering
essential support for the cultivation and
evaluation of skilled professionals in
rare earth enterprises.
Management Talent Technical Talent Emerging Talent
Empowerment Project Revitalization Project Pipeline Project
The Innovation-Driven Leadership We optimize the professional technical We strive to build an emerging talent
Enhancement Program is designed tack to ensure comprehensive coverage ecosystem which comprises a dynamic
to expand our talent pipeline through for all technical career paths. We reserve database tailored for young
foundational training. The Colt Program implement robust accountability professionals. It features customized Case
focuses on identifying and nurturing systems that include responsibility growth roadmaps, a technical 案例
Study The Company Has Become an Autonomous Region-level High-skilled Talent Training Base
promising young high-potential contracts, a merit-based Challenge competency mining system, and a
individuals. A robust Secondment Reserve List for assignments, and military-style talent-friendly culture that actively
In April 2024, the Department of Human Resources and Social Security, along with the Department of Finance of the
Program ensures we have a rotation- commitment pledges. Additionally, a fosters rapid advancement. These
ready talent pool. Furthermore, the Steed dual-contract compensation model is components are designed to optimize Inner Mongolia Autonomous Region, announced the List of Entities for the Construction of Autonomous Region-Level
Program aims to develop a strong core established, combining a base salary the development and success of High-Skilled Talent Training Bases and Skill Master Studios. The Company is proud to be designated as a high-skilled
of middle management, while the Stallion with performance-based incentives emerging talent.
Program cultivates expertise among and project-completion bonuses. This talent training base at the regional level. With a focus on developing the Two Rare Earth Bases, we are committed
subject-matter specialists. Together, strategic approach fosters accountability to cultivating a highly skilled workforce and enhancing our employee education and training programs to optimize
these initiatives create a comprehensive and excellence within our technical
operational effectiveness.
framework for leadership development workforce.
within our Company.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Precision Deployment, Better Growth Employee Training
The Company firmly adheres to the principles of hierarchical and needs-based training. It implements a comprehensive employee
Promotion Channels training program that encompasses diverse formats while establishing a standardized training management system, thereby
creating a distinctive training framework. It also intensifies its focus on training and certification for skilled personnel, which leads
The Company has implemented a comprehensive Employee Career Pathway System designed to optimize the potential and to a gradual increase in the overall number of high-skilled professionals. This proactive approach accelerates the knowledge
expertise of every individual. This initiative fosters an environment where all talents are effectively utilized, and specialized skills renewal process for these individuals, equipping them to meet the demands of production, operational efficiency, technological
innovation, process transformation, and industrial optimization.
are strategically aligned to enhance overall success.
To further enhance learning motivation and maximize training effectiveness, the Company employs various methods, including
the Cloud Classroom platform, partnerships with educational institutions, on-site developmental assignment, benchmarking with
Management Track (Sequential promotion levels) leading enterprises, the mentor-apprentice system, and targeted single-point lessons. These initiatives collectively foster a culture
of continuous learning and skill enhancement.
E F
A B C D
Employee training performance
Technical Track
Total training expenditure Total training sessions Total participation
Technical Assistant
Regional Technical
Specialist
Regional Technical
Supervisor
Professional
Technical
Supervisor
Senior Technical
Supervisor
Technical Expert
Chief Technical
Expert 4.8511 million yuan 336 32,988
R&D Track
Average training duration per Average training duration per Average training duration per
Distinguished Chief Researcher
Associate Lead Lead Researcher Senior Researcher employee senior manager middle manager
Researcher
Assistant Researcher Researcher
Researcher
Hours Hours Hours
Business Track
Business Senior Business Business Chief Business
Business Business Director Average training duration per
Business Associate Manager Manager Director Percentage of employees covered by training
Specialist Supervisor
average employee programs
Skilled Trades Track 79 Hours
Chief Skill
Master Senior Master Operations Skill Master
Intermediate Senior Master Case
Junior Technician
Technician Technician Technician Technician Expert 案例
Study Special Training Sessions for Improving the Competencies of Middle and Senior Management Personnel
From July to December 2024, the Company successfully conducted
of middle and senior management personnel. These sessions featured
Talent Reserve esteemed external experts and notable scholars, alongside key
personnel from various professional disciplines within the Company.
The curriculum covered a wide range of important topics, including
The Company has instituted the Reserve Talent Cultivation and Selection Management Procedures to develop a robust, multi-
policy interpretation, trends in the rare earth industry, strategic
layered talent pipeline. This initiative incorporates a comprehensive selection mechanism, comprising bottom-up nominations
planning, leadership in Party building, corporate culture, human
from business units and open merit-based competitions for specialized roles. The talent pool is structured in tiers by
resource management, managerial philosophy, lean management, risk
organizational level, complemented by specialized cohorts in various professional fields. Our cultivation methodology emphasizes
control, the integration of business and finance, digital transformation,
early-stage identification, multi-channel development through rotations and mentoring, and dynamic assessment via regular
and rare earth production processes. A total of 1,950 participants
performance reviews. The strategic outcomes of this approach include a balanced talent structure across generations and a engaged in this training, resulting in significant improvements in the management team’s capabilities. This initiative not
sustainable leadership pipeline that ensures continuity from junior to senior roles. only elevated work quality and efficiency but also broadened perspectives, thereby fostering the high-quality development
of the enterprise.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
The Company is committed to fostering professional growth among its employees by encouraging the attainment of various
professional credentials. These include vocational skill certifications, professional title qualifications, and practitioner licenses. Our
Mental and Health Wellbeing
strategic focus centers on the continuous enhancement of technical competencies and the holistic development of professionals. The Company implements a comprehensive employee health and safety program that underscores its commitment to
workplace safety and employee well-being. This program includes a robust health monitoring system featuring annual routine
health checkups for all employees and specialized occupational hazard examinations for high-risk positions, achieving a 100%
Case
案例
Study The Vocational Skill Level Assessment Examination in 2024
compliance rate in workplace hazard factor testing. To ensure safety, the Company regularly distributes certified protective
equipment and maintains on-site emergency medical resources, including CPR training manikins and essential emergency
From July to October 2024, the Company successfully hosted the
medications. Additionally, wellness initiatives such as mental health workshops and confidential counseling services provide
essential support for employees. The strategic outcomes of this program include enhanced self-rescue capabilities among
employees, comprehensive support for both physical and mental well-being, and a strengthened foundation for sustainable
distinct occupations, including roles such as rare earth extraction
operations.
workers, rare earth permanent magnet material workers, industrial
wastewater treatment specialists, and safety officers. Notably, the
overall pass rate reached an impressive 71.62%. During this period,
the Company also provided proactive support to ensure that each
unit efficiently accessed subsidies for skill level enhancement,
thereby streamlining the vocational skill level assessment process
across the Company.
Occupational Health
The Company is unwavering in its commitment to safeguarding the occupational health of its employees. It continuously
enhances its occupational health management policies and has established a comprehensive system for safety and health
management. By cultivating a safe, healthy, and comfortable working environment, the Company effectively promotes its
occupational health initiatives and ensures the physical and mental well-being of all staff members. In 2024, the Company Standards for Wearing PPEs Occupational Hazard Warning Signs
allocated a dedicated fund of 3.0621 million yuan toward advancing occupational health initiatives.
Occupational Health System
Case
案例
Study Special Training on Improving the Work-related Injury Prevention
The Company rigorously complies with pertinent laws and regulations, notably the Law of the People’s Republic of China on the In May 2024, the Company conducted two specialized
Prevention and Control of Occupational Diseases. It has developed the Implementation Rules for Safety Management (Occupational training sessions aimed at enhancing the capability of
Health) to continuously enhance and refine its occupational health and safety management system. This commitment has led to employees to prevent work-related injuries. These sessions
the establishment of a comprehensive occupational health protection framework and the formation of a dedicated committee for focused on critical aspects, including pertinent laws and
the prevention and control of occupational diseases, ensuring the effective execution of preventive measures. regulations related to workplace safety, comprehensive
u n d e rs t a n d i n g o f wo r k - re l a t e d i n j u r y p reve n t i o n ,
identification of occupational hazards, and effective
emergency response measures for handling injuries. The
training also included practical instruction on essential skills
In 2024, the Company successfully passed an external audit for its occupational such as cardiopulmonary resuscitation (CPR), the Heimlich
health and safety management system certification. Notably, the Company and its 19 maneuver, and wound care. By integrating theoretical
affiliates at a rate of 83.3% are covered by ISO 45001:2018 certification. knowledge with hands-on practice, this initiative significantly improved employees’ awareness and competence in
injury prevention. Consequently, this proactive approach effectively mitigated the occurrence of workplace accidents
at their source, thereby fortifying the “safety net” for employees and establishing a robust foundation for achieving
Certificate of Occupational Health excellence in the rare earth industry.
and Safety Management System
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Case Case
案例
Study
Stress Relief and Emotional Adjustment - Mental Health Workshop 案例
Study Sending Care during the Spring Festival
In October 2024, the Company successfully organized a mental health workshop centered on stress management and
During the Spring Festival, Company leaders actively
emotional regulation, employing interactive strategies to promote employee well-being. The workshop featured visual
engaged with various teams to convey their support to
discussion sessions with image-based activities, personalized psychological assessments to evaluate stress levels, and
numerous cadres and employees across Baotou. These
practical sharing of coping strategies for emotional adjustment. As a result, participants demonstrated improved skills
included personnel from the Xi'aoke, Ruixin, Tianjiao
in stress identification, enhanced self-regulation capabilities, and a significantly strengthened workplace culture.
Qingmei, Northern Jiaxuan, Huaxing Rare Earth, Jinmeng,
Jingrui, Hefa, the Production Dispatching Command
Center, and the International Trading. Furthermore, the
leaders extended their well-wishes to exemplary workers,
Occupational Health Performance distinguished individuals, and those facing hardships,
affirming the Company’s commitment to its staff and
offering heartfelt Spring Festival blessings.
Occupational health examination Incidence rate of occupational Work safety liability insurance
coverage rate health problems coverage rate
Case
案例
Study Combating Heat, Delivering Care, Boosting Morale
In July 2024, Company executives conducted a visit to
Hefa and Ruixin to distribute summer cooling supplies.
Employee Life This initiative not only provided essential relief but also
recognized the dedication of frontline workers who
persistently endure extreme high temperatures. The
The Company is dedicated to fostering a supportive and harmonious workplace environment. It prioritizes the well-being of
executives’ engagement underscores the Company’s
employees, particularly in safeguarding the rights and interests of female staff. Additionally, the Company regularly implements
commitment to employee well-being and operational
diverse cultural and athletic activities, significantly enhancing employees’ sense of happiness and belonging within the Company.
excellence.
Employee Care
The Company is unequivocally committed to ensuring the welfare of its employees by fostering an environment that prioritizes
Case Doing “Food-related” Things for Employees
their quality of life. It places significant emphasis on supporting vulnerable groups and those facing difficulties, thereby 案例
Study
enhancing employees’ sense of identity, belonging, and overall well-being. Through tangible initiatives, the Company conveys its
dedication to employee care. In October 2024, the Smelting Branch (Huamei)
undertook a comprehensive upgrade of its staff
Notably, it consistently promotes programs such as Doing Practical Things for People and You Propose, I Do. In 2024, the cafeteria, enhancing both the menu and service quality.
Company disbursed over 6 million yuan to successfully execute more than 200 “good deeds”. Furthermore, it has allocated more This initiative was driven by a commitment to address
than 1 million yuan to improve the production and living environments of its workforce. employees’ nutritional, safety, health, and culinary
preferences in accordance with seasonal demands.
Additionally, the cafeteria implemented the Two Frees
Employee Care Performance and One Subsidy policy, which includes complimentary
porridge and pickled vegetables for all employees at
breakfast. For those in need, lunch subsidy coupons
Employee care and assistance Employees covered by assistance per
were distributed, and a Convenient Kitchen was
established to support single employees and those
million yuan
working overtime, thereby reinforcing the Company’s
dedication to employee welfare and fostering a sense
of communal care.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Female Staff Protection
Case
案例
Study Mid-Autumn Festival Networking Activity
In September 2024, the Company held the Mid-
The Company prioritizes the protection of female employees’ rights and
Autumn Festival networking activity themed Full
interests by rigorously adhering to the Special Collective Contract for the
Moon Brings People Together. It built a platform
Protection of Female Employees’ Special Rights and Interests. Compliance
for young employees to showcase themselves,
with the state-mandated policy is meticulously enforced, ensuring that female
make friends and seek romantic relationships. This
employees receive essential benefits, including maternity leave, breastfeeding
activity fully demonstrated the vibrant, healthy
leave, and regular gynecological examinations, as stipulated by law.
and positive spiritual outlook of young employees
Additionally, the Company actively fosters an equitable and inclusive workplace
in the Company, enhanced the young employees’
by hosting events for female employees on International Women’s Day, thereby
sense of gain and happiness, and enabled them
reinforcing its commitment to creating a supportive and friendly environment
Theme Activities on International to contribute their youthful strength to the high-
for all.
Women’s Day quality development of the enterprise.
Employee Activities
Case
The Company systematically organizes a diverse range of cultural and sports activities aimed at enhancing enterprise cohesion 案例
Study Themed Fun Sports Meeting
and cultivating a strong sense of belonging among employees. In 2024, a total of 63 activities of varying levels and types were
successfully implemented to achieve these objectives. In November 2024, the Company organized the
themed fun sports meeting titled Gathering
H e a r t s , Fo r g i n g t h e S o u l , D e m o n s t r a t i n g
Responsibility, and Pooling Strength for the Fourth
- Quarter Push. Over 100 employees from 11
Number of Employee Activities
units enthusiastically joined in. This event served
a dual purpose. It provided employees with a
Number of sports and cultural Number of employee activities of chance to unwind physically and mentally while
activities for employees simultaneously reigniting their fighting spirit and
other types
elevating their morale. As a result, they are now
primed to fully immerse themselves in production,
operation, and construction endeavors, armed with
a more passionate work ethic and a harmonious,
stable work mindset.
Case Strengthening National Unity and Advancing Dual Rare Earth Bases - Wellness Walk
案例
Study
In June 2024, the Company successfully organized
a themed wellness walk aimed at promoting
awa re n e s s o f C h i n e s e n a t i o n a l c o m m u n i t y
consciousness and reinforcing our pivotal role as
fundamental builders of China’s Two Rare Earth
Bases. The event yielded several key outcomes:
it enhanced cross-ethnic collaboration among
employees, revitalized team morale and mental
focus, and strengthened engagement in production
operations. These results underscore our
commitment to fostering a cohesive and motivated
workforce.
Social Responsibility in
Common Prosperity 05
The Company robustly embraces core socialist values and aligns its initiatives with the rural revitalization strategy, engaging in
social welfare activities. As it advances its own growth, the Company commits to societal contributions, equitably distributing its
developmental gains, and fulfilling its social responsibilities, thereby exemplifying the ethos of a state-owned enterprise.
Performance Highlights in 2024
Contribution to UN SDGs
Rural revitalization expenditure Public welfare expenditure Volunteering duration
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Rural Revitalization Support The company has implemented a robust labor initiative, arranging for ten individuals from three
supported natural villages to gain employment in its metal workshop.
The Company is fully committed to advancing the rural revitalization strategy, focusing on infrastructure improvement, industrial
support, and the modernization of agriculture. By tailoring initiatives to local conditions, we promote rural economic revitalization In a decisive move towards consumption-based assistance, the company demonstrated its commitment
and livelihood improvement, actively supporting sustainable rural development through a range of diversified efforts. In 2024, the during the New Year’s Day and National Day holidays by purchasing over 1,435 kilograms of mutton
Company disbursed a total of 5.3941 million yuan in rural revitalization initiatives. and 12,500 kilograms of potatoes from these villages, amounting to a substantial total value of 111,000
Gansu
yuan. Additionally, the company’s employees facilitated the acquisition of agricultural and sideline
Rare Earth
products worth 38,000 yuan through the resident working teams in the villages. These efforts have
effectively enhanced sales channels for local produce, thereby increasing farmers’ incomes and
bolstering their motivation for agricultural activities.
Rural Revitalization Performance
Furthermore, the donation of 60 high-quality solar streetlamps to Zhangli Village has significantly
improved rural road lighting, contributing to a safer and more welcoming environment for elderly
Rural revitalization expenditure Number of people covered Number of people covered by assistance
residents, women, and children.
by assistance per 100-million yuan of revenue
million yuan
The Company is deeply committed to rural revitalization and enhancing farmer income through an array of strategic initiatives.
Public Welfare
Key components include continuous rural infrastructure improvement, multi-faceted poverty alleviation efforts encompassing The Company actively advances social welfare initiatives through charitable programs and volunteer services. Charitable
industrial support projects and employment assistance programs, and measures for sustainable economic stabilization. donations help people in need, and on-going volunteer services help strengthen community resilience. These measures promote
Additionally, the talent support program facilitates the annual deployment of elite cadres to villages, focusing on industrial social welfare, support community development and demonstrate the Company’s SOE leadership in social responsibility.
revitalization, environmental enhancements, and Party building initiatives that foster agricultural development.
Social Welfare Performance
Rural Revitalization Measures
Social contribution events Public contribution event Social contribution duration
participation
Hours
A new 26.3-kilometer high-voltage line (10kV) and a 5.14-kilometer low-voltage line (0.4kV) have been
Northern successfully constructed for Bayin Hala Gacha, located in Mandula Town, Darhan Muminggan Joint
Rare Earth Qi, which is situated over 20 kilometers from the national border. Additionally, 13 transformers were
Number of volunteer services Volunteer service participation Volunteer service duration
installed to adequately meet the electricity demands of 16 herdsmen households.
The company conducted a themed initiative entitled Advancing Hand in Hand to Build a New Rural
Dream: Internet-based Joint Event for Rural Revitalization. This initiative included the procurement Public welfare expenditure
Huamei of essential goods and educational materials, which were subsequently donated to local schools and
families in need. Such efforts significantly enhance the educational opportunities and daily living million yuan
conditions for rural children.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Case Case
案例
Study Delivering Warmth and Compassion 案例
Study Regular Public Welfare Service in the Paired Community
In March 2024, the Company successfully In 2024, the Company consistently engaged in public
conducted a charity visit to the Baotou Welfare welfare initiatives within its partnered community. Each
Center, where it provided essential supplies. month, over 100 volunteer employees dedicated their
Additionally, it implemented targeted support efforts to services such as community clean-up and
to address children’s specific needs and offered promoting civic awareness in the 15th Neighborhood of
emotional care programs featuring interactive Tuanjie Community, Kunqu District, Baotou City. Their
activities and companionship. The Company contributions significantly advanced the establishment
actively champions the Lei Feng spirit, effectively of a civilized city, clearly demonstrating the social
encouraging Party members and young members responsibilities inherent to a state-owned enterprise
of the Communist Youth League to develop a through tangible actions.
profound sense of social responsibility. It inspires
these individuals to translate their lofty ideals and
moral pursuits into tangible actions, positioning
them as engaged participants, advocates, and The Company has effectively promoted the volunteer service brand Turn to ‘Xiaoxi’ When in Need by establishing a robust and
disseminators of social welfare initiatives. sustainable framework for volunteer initiatives. This effort has expanded the scope and significance of volunteer services while
increasing the brand’s recognition and popularity. Currently, the Company has eight volunteer service sites, 25 dedicated teams,
and over 1,100 committed volunteers, demonstrating its strong commitment to community engagement and social responsibility.
Volunteer Service Performance
Case
案例
Study Sustaining Life and Conveying Goodness
Number of volunteer services Volunteering duration Volunteer service participation
An employee from Zibo Lingzhi has successfully donated hematopoietic stem cells to an overseas Chinese. This
selfless act exemplifies the commitment and sense of responsibility displayed by young professionals within the Hours
rare earth industry in the contemporary era. Moreover, it underscores the company’s robust support and proactive
engagement in social welfare initiatives.
Turn to ‘Xiaoxi’ When in Need - Volunteering Service Brand
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Case
案例
Study Welcoming the 70th Anniversary of the Company, Demonstrating
Responsibility through Youth Volunteer Service
Outlook
In March 2024, the Company executed a themed volunteer service initiative titled Welcoming the 70th Anniversary
of the Company, Demonstrating Responsibility through Youth Volunteer Service by Bringing Fire Safety into the
Community. This initiative involved the donation of essential fire-fighting equipment to the community, accompanied
by educational sessions that outlined usage protocols and pertinent safety information. Furthermore, practical drills
In 2025, we will align Company’s operations with Xi Jinping Thought on Socialism with Chinese Characteristics for a
on emergency self-rescue techniques were implemented. This multifaceted approach not only fostered deeper
New Era, ensuring a comprehensive implementation of national policies pertaining to the rare earth industry and other
communication and connection with the community but also significantly enhanced the Company’s corporate image. major strategic initiatives. Committed to a new trajectory of high-quality development, we will prioritize ecological
protection and green development. By taking a proactive leadership role, we will serve as a model for the green
transformation and high-quality advancement of the rare earth sector, setting a benchmark for sustainable practices.
We will capitalize on the historic opportunities offered by the “dual carbon” goals. By strategically leveraging our
competitive advantages and driving innovation through technological advancements, we will expedite the development
of high-quality productive forces. Furthermore, we are committed to advancing high-quality green technologies to
provide low carbon choices in climate change responses. We are dedicated to enhancing resource utilization, markedly
decreasing energy consumption and pollutant emissions. Through these efforts, we are guiding the rare earth industry
toward elevated, intelligent, and sustainable development. This strategic direction provides robust support for the
nation’s pursuit of its “dual carbon” objectives, reinforcing our commitment to environmental stewardship.
We remain steadfast in fulfilling our social responsibilities by emphasizing employee well-being and continually
enhancing our talent development ecosystem. We actively participate in public welfare initiatives, including rural
revitalization and community co-development. These efforts reflect our dedication as a state-owned enterprise to the
principle of serving the people. Through these initiatives, we are contributing to the establishment of a harmonious
society and demonstrating our commitment to sustainable development.
Case
案例
Study All Ethnic Groups as One Unified Family, Aspiring to be Like Pomegranate Seeds
We are committed to advancing the reform of state-owned enterprises by refining a modern corporate structure tailored
to Chinese characteristics and enhancing governance practices to uphold standardized operations and promote market
In September 2024, the Company conducted a volunteer service
value increase. We will reinforce the integration of Party leadership within corporate governance, implementing robust
activity titled All Ethnic Groups as One Unified Family, Aspiring
internal control systems that adhere to elevated standards. Furthermore, we will drive innovations in management
to be Like Pomegranate Seeds within the framework of civilized to bolster our compliance capabilities. Through these initiatives, we assure that decision-making processes are well-
practice. Volunteers engaged with passers-by, community informed and grounded, execution remains resolute and effective, and oversight is comprehensive and meticulous. This
residents, and students in a Party building-themed park by strategic approach will create more value for shareholders.
distributing posters that promoted ethnic unity. This initiative
Looking forward, we will collaborate with partner to promote technological innovation and industrial reform to pioneer
significantly strengthened the bonds among employees from a new era of sustainable development within the rare earth industry, demonstrating even greater determination and
diverse ethnic backgrounds by highlighting exemplary instances a more pragmatic approach in our endeavors. We are committed to delivering exceptional products and services that
of ethnic solidarity. Furthermore, it effectively encouraged both positively impact society, yield remarkable returns for our shareholders, and engage collaboratively with stakeholders to
employees and community members to unite and support one fully integrate ESG principles. By enhancing our management standards and performance accountability, we aspire to
achieve new milestones in our mission to build the Two Rare Earth Bases, propel our transformation into a world-leader
another, thereby enhancing their collective sense of identity
in the rare earth sector, and drive high-quality development. This endeavor represents a significant milestone and a
and pride in the Chinese nation.
transformative advancement in our journey toward excellence.
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Appendix Index of GRI Sustainability Reporting Standards issued by Global Sustainability Standards Board
(GSSB)
Index ofIndicators GRI
Disclosure Section in this Report
Standard
Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—
Sustainability Report (Trial) GRI2:General Disclosures
Dimension Number Topic Section in this Report 2-1 Organization details About Northern Rare Earth
Environment 2-6 Activities, value chain and other business relationships About Northern Rare Earth
Role of the highest governance body in overseeing the
management of impacts
Society 2-15 Conflicts of interest /
Equal treatment to small and medium-sized
enterprises
Data security and customer privacy
protection
People Centered Growth in Love 2-20 Process to determine remuneration /
Safety Bottom Line
Sustainability
related
Corruption-free Organization
governance 20 Anti-commercial bribery and anti-corruption
Business Ethics 2-24 Embedding policy commitments /
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
GRI GRI
Disclosure Section in this Report Disclosure Section in this Report
Standard Standard
Financial implications and other risks and opportunities due to
climate change
Ratios of standard entry level wage by gender compared to local
minimum wage Operational sites owned, leased, managed in, or adjacent to,
protected areas
Significant impacts of activities, products and services on
biodiversity
IUCN Red List species and national conservation list species with
Communication and training about anti-corruption policies and habitats in areas affected by operation
procedures
GRI206:Anti-competitive behaviour
Legal actions for anti-competitive behaviour, anti-trust, and
monopoly practices 305-4 Intensity of GHG emissions Climate Change
air emissions
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
GRI GRI
Disclosure Section in this Report Disclosure Section in this Report
Standard Standard
Operations and suppliers in which the right to freedom of
labour
Operations and suppliers at significant risk for incidents of forced
or compulsory labour
Negative impacts of the supply chain on the environment and
actions taken 410-1 Security personnel trained in human rights policies or procedures /
Benefits provided to full-time employees that are not provided to
temporary or part-time employees Operations with local community engagement, impact assessments,
and development programs
Operations with significant actual and potential negative impacts
on local communities
Worker participation, consultation, and communication on
occupational health and safety
Assessment of the health and safety impacts of product and
service categories
Incidents of non-compliance concerning the health and safety
Prevention and mitigation of occupational health and safety impacts of products and services
impacts directly linked by business relationships
Programs for upgrading employee skills and transition assistance Incidents of non-compliance concerning product and service
programs
Percentage of employees receiving regular performance and career 417-3 Incidents of non-compliance concerning marketing communications /
development reviews
Substantiated complaints concerning breaches of customer privacy
Governance Effectiveness 418-1 /
Rights and Interests of Employees
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Reference of ESG Indicators System for ESG Reports of Listed Companies Controlled by Tier 1 Indicator Tier 2 Indicator Tier 3 Indicator Section in this Report
Central State-owned Enterprises issued by State-owned Assets Supervision and Administration E.2.3.2Management of general industrial
Pollution Prevention and Control
Commission of the State Council solid waste
E.2Pollution
E.2.3.3General industrial solid waste
prevention and E.2.3Solid waste Pollution Prevention and Control
disposal
treatment
Tier 1 Indicator Tier 2 Indicator Tier 3 Indicator Section in this Report E.2.3.4Management of hazardous waste Pollution Prevention and Control
Environmental E.2.3.5Hazardous waste disposal Pollution Prevention and Control
E.3.1.1GHG sources and types Climate Change
E.1.1.1Fresh water consumption Resource Efficiency
E.3.1.2Management of GHG emissions Climate Change
E.1.1Water E.1.1.2Recycled water consumption Resource Efficiency
resources E.3.1.3Scope 1 emissions Climate Change
E.1.1.3 Proportion of recycled water consumption /
E.3.1GHG emissions
E.3.1.4Scope 2 emissions Climate Change
E.1.1.4Intensity of water consumption /
E.3.1.5Scope 3 emissions Climate Change
E.1.2.1Non-renewable materials consumption /
E.3.1.6Intensity of GHG emissions Climate Change
E.1.2Materials E.1.2.2Toxic and hazardous materials consumption /
E.3.2.1Reduction management of GHG
E.1.2.3Intensity of materials consumption / Climate Change
E.3Climate E.3.2Reduction
E.1Resources emissions
E.1.3.1Fossil energy consumption Resource Efficiency change management
consumption
E.3.2.2Reduction of GHG emissions /
E.1.3.2Non-fossil energy consumption Resource Efficiency
E.3.3.1Participation in the Carbon
E.1.3Energy E.1.3.3Proportion of non-fossil energy usage / /
Emissions Trading Exchange
E.1.3.4Total energy consumption / E.3.3.2Participation in usage rights ,
E.3.3Environmental
E.1.3.5Intensify of energy consumption Resource Efficiency water rights and pollution discharge /
rights trading
rights trading exchange
E.1.4.1Packaging materials usage /
E.1.4Packaging E.3.3.3Participation in green power
E.1.4.2Lightweigt and minimization of packaging /
materials / trading
materials
E.3.4Climate risks
E.2.1.1Wastewater discharge compliance Pollution Prevention and Control E.3.4.1Climate risks management Climate Change
management
E.2.1.2Wastewater management and emissions
Pollution Prevention and Control E.4.1Impacts of
reduction measures
activities, products E.4.1.1Impacts of activities, products and
E.4Biodiversity Green Living
E.2.1Wastewater E.2.1.3Wastewater discharge Pollution Prevention and Control and services on services on biodiversity
E.2.1.4Wastewater and pollutants discharge Pollution Prevention and Control biodiversity
E.2Pollution E.5.1Formulation
E.2.1.5Discharge concentration of wastewater and
prevention Pollution Prevention and Control of low-carbon E.5.1.1Formulation of low-carbon
pollutants
and development goals development goals and strategic Climate Change
treatment E.2.2.1Waster gas emissions compliance Pollution Prevention and Control
E.5System for and strategic measures
E.2.2.2Waster gas and pollutants discharge Pollution Prevention and Control resource and measures
E.2.2Waste gas
environmental
E.2.2.3Discharge concentration of waste gas and E.5.2.1Management of water usage Resource Efficiency
Pollution Prevention and Control management
pollutants
E.5.2Measures for E.5.2.2Management of materials usage Resource Efficiency
E.2.3.1Solid waste disposal compliance with laws resource management
E.2.3Solid waste Pollution Prevention and Control E.5.2.3Energy usage and energy
and regulations Resource Efficiency
conservation management
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Tier 1 Indicator Tier 2 Indicator Tier 3 Indicator Section in this Report Tier 1 Indicator Tier 2 Indicator Tier 3 Indicator Section in this Report
E.5.3Energy conservation S1.4.1Employee stimulations and promotion
Employee Development
and carbon reduction E.5.3.1Energy conservation and carbon policies
statistical monitoring and reduction monitoring, statistical reporting Resource Efficiency
S1.4Employee development
systems for assessment , and assessment system S1.4.2Employee education and training Employee Development
and training
rewards and punishments
S1.4.3Employee career development and job
S1Employee Employee Development
E.5.4.1Clean production Pollution Prevention and Control changes support
rights and
E.5.4.2Green technological transformation interests
Pollution Prevention and Control S1.5.1Employee satisfaction survey /
and recycling use
S1.5.2Labor disputes /
E.5.4Green environmental E.5.4.3Green Building Renovation / S1.5Employee satisfaction
protection actions and
E.5.4.4Green offices and operations Green Living Rights and Interests of
measures S1.5.3Employee turnover
E.5System for E.5.4.5Green procurement and green supply Employees
Green Procurement Practices
resource and chain management
S2.1.1Policies and measures for manufacture
environmental E.5.4.6Environmental protection public Product Quality
Green Living practices
management interest activities
S2.1Products safety and S2.1.2Quality management Product Quality
E.5.5.1Environmental Management System
Ecological Environment Management quality
Certification
S2.1.3Product recall and withdrawal Product Quality
E.5.5Green and low- E.5.5.2Green and low-carbon enterprise
/
carbon certification certification S2.1.4Negative events on products or services /
E.5.5.3Green and low-carbon products and
/ S2Products S2.2.1Customer satisfaction Responsibility for Customers
services certification
and services S2.2Customer services and
S2.2.2Customer complaints and handle Responsibility for Customers
E.5.6.1Emergency response plans for management benefits
Ecological Environment Management
E.5.6Environmental environmental emergencies
S2.2.3Customer information and privacy protection Responsibility for Customers
compliance with laws
and regulations E.5.6.2Violations of laws and regulations in
/ S2.3.1R&D and innovation management system Technological Innovation
environmental sector
Social S2.3.2R&D expenditure Technological Innovation
S2.3Innovation development
S1.1.1Enterprise recruitment polices and S2.3.3Innovation achievements Technological Innovation
Rights and Interests of Employees
executions
S1.1Recruitment and S2.3.4IPR protection Technological Innovation
S1.1.2Employee structure Rights and Interests of Employees
employment
S1.1.3Avoid employing child labor or S3.1.1Supplier selection and management Green Procurement Practices
Rights and Interests of Employees S3.1Supplier management
compulsory labor
S3.1.2Supplier amount and distribution /
S1.2.1Remuneration concepts and policies Rights and Interests of Employees S3Supply
S3.2.1Supply chain management policies and
S1.2Remuneration and S1.2.2Working time, rest and vocation Rights and Interests of Employees chain Green Procurement Practices
measures
benefits S1.2.3Remuneration and benefits guarantees Rights and Interests of Employees safety and
S1Employee
S3.2Supply chain
rights and management S3.2.2Supply chain safety guarantee and
S1.2.4Employee democratic management Rights and Interests of Employees management /
interests emergency response plans
S1.3.1Employee occupational health and
Occupational Health
safety management S3.2.3Major risks and impacts (supply chain) /
S1.3.2Risk prevention and control for S4.1Tax payment S4.1.1Tax paymen Bottom Line of Compliance
Safety Bottom Line
S1.3Employee health and employee safety
safety S4.2.1Policies and measures for participation
S1.3.3Safety incidents and occupational S4Social Rural Revitalization Support
Safety Bottom Line in local community construction
injury measures contributions S4.2Community co-
construction
S4.2.2Contribution and impacts for local
S1.3.4Employee caring and assistance Employee Life Rural Revitalization Support
community
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Tier 1 Indicator Tier 2 Indicator Tier 3 Indicator Section in this Report Tier 1 Indicator Tier 2 Indicator Tier 3 Indicator Section in this Report
Policies and measure for participation in G2.1.1Internal audit Compliant Operations
Public Welfare
public interest activities G2.1Internal control G2.1.2Internal control structure, mechanism
Compliant Operations
S4.3社会公益活动 S4.3.2Investment and effectiveness of and process
Public Welfare
participation in public interest activities
G2Normative G2.2.1Integrity construction criterion /
S4.3.3Barrier-free environment construction / governance G2.2Integrity
G2.2.2Effectiveness of integrity construction
construction /
S4Social S4.4.1Industrial transformation Topic measures
contributions
S4.4.2Rural revitalization and regional G2.3.1Fair competition criterion Compliant Operations
Rural Revitalization Support
coordinated development G2.3Fair competition G2.3.2Effectiveness of fair competition
S4.4Response to Compliant Operations
S4.4.3The Belt and Road and overseas measures
national strategies
/
duties performance G 3 .1 .1 I n ve s t o r re l a t i o n s m a n a g e m e n t Rights and Interests of
strategy Shareholders
S4.4.4Industrial characteristics and other
Topic
social duties performance G3.1Investor relations Rights and Interests of
G3.1.2Investor communication
management Shareholders
Governance
G3Investor G3.1.3Construction of investor relations Rights and Interests of
G1.1.1Governance strategy implementation Governance Effectiveness relations management department Shareholders
management
G1.1.2Process to supervise governance G3.2.1General meeting Governance Effectiveness
Governance Effectiveness and
strategy
G1.1Governance strategy shareholder G3.2.2Shareholder communication Governance Effectiveness
and process equity G3.2Shareholder equity
G1.1.3Process to approve and review
Governance Effectiveness G 3 . 2 . 3 I n fo r m a t i o n , p a r t i c i p a t i o n a n d
governance strategy Governance Effectiveness
determination rights of shareholders
G1.1.4Party leadership /
G3.3.1Credit information /
G3.3Creditor equity
G1.2.1Ownership duties Governance Effectiveness G3.3.2Performance in bond market /
G1Governance G1.2.2rganizational structure and functions G4.1 Information G4.1.1Financial information disclosure About Northern Rare Earth
strategy and of the Board of Directors, the Supervision Governance Effectiveness G4Information disclosure system
G1.2Structure and G4.1.2Non-financial information disclosure About Northern Rare Earth
organizational Committee and the management disclosure
function
structure transparency G4.2Information G4.2.1Regularly supervision, audit and Rights and Interests of
G1.2.3Process to appoint the Board of
disclosure quality assessment on information disclosure Shareholders
Directors, the Supervisory Committee and Governance Effectiveness
the management and its structure G5.1.1Compliance management system Compliant Operations
G5.1Compliance
G5.1.2Compliance system construction Compliant Operations
G1.3.1Remuneration plan of directors and management
/ G5Compliance
supervisors G5.1.3Compliance review process Compliant Operations
management
G1.3Remuneration G1.3.2Remuneration transparency of the and risk G5.2.1Risk identification and early-warning Compliant Operations
/
management Board of Directors management G5.2.2Risk control and trace Compliant Operations
G5.2Risk management
G1.3.3Remuneration reasonability of the
/ G5.2.3Risk reporting and management Compliant Operations
management
China Northern Rare Earth (Group) High-Tech Co., Ltd. 2024 Environmental, Social and Governance Report
Reader Feedback Form
Respected readers:
Thank you for reading this Report. We appreciate and look forward to your feedback to provide more valuable
information for you and stakeholders, and effectively advance our ESG management and practices to improve
our disclosure level on ESG.
□ Excellent □ good □ average □ bad □ very bad
□ Excellent □ good □ average □ bad □ very bad
□ Excellent □ good □ average □ bad □ very bad
□ Excellent □ good □ average □ bad □ very bad
□ Excellent □ good □ average □ bad □ very bad
□ Excellent □ good □ average □ bad □ very bad
□ Excellent □ good □ average □ bad □ very bad
首页
微信公众号
证券之星APP
