Overview

In line with our sustainable development policy objectives, CHS continuously promotes climate change mitigation and greenhouse gas (GHG) management. In 2024, we achieved a 6% reduction in GHG emissions and continue to move toward our targets of a 7% reduction by 2025, 25% by 2030, 50% by 2040, and achieving carbon neutrality by 2050. To improve energy efficiency, we completed a total of 33 energy-saving projects in 2024, yielding a total energy saving of 4,670 GJ, with an average annual electricity saving rate of 3.24%, far exceeding the statutory benchmark of 1%. In terms of water resource management, the wastewater recycling rate reached 99.52%, while the waste reuse rate achieved 99.40%, maintaining high performance in resource circularity year over year. In response to climate risks and international decarbonization trends, we continuously review annual targets and adjust medium- and long-term strategies on a rolling basis. We promote process upgrades and introduce carbon reduction equipment to meet the global net-zero emission challenge. Furthermore, by adopting the TCFD (Task Force on Climate-Related Financial Disclosures) framework, we have deepened our identification and management of climate risks and opportunities, integrating carbon management into the core of our business strategy.

Upholding a people-centric management philosophy, we continue to safeguard the safety, health, and rights of our employees. In 2024, we conducted safety inspections, safety family communication events, and training sessions to strengthen the safety culture among both internal staff and contractors. In terms of labor relations and workers’ rights, we held seven labor-management meetings throughout the year and reported zero labor grievance cases. Regarding employee welfare, we signed agreements with 35 partner stores to provide special offers. On human rights protection, we continue to enforce our gender equality and no-child-labor policies, and there were no incidents of forced labor, discrimination, or other human rights violations in 2024. In terms of community involvement, CHS deepened local connections through volunteer services and community outreach activities, achieving a cumulative 420 volunteer participations and hosting six community events in 2024. Beyond these efforts, we will continue to support education, suicide prevention, and community prosperity through concrete actions, fulfilling our corporate social responsibility.

We firmly believe that sound corporate governance is the foundation for sustainable business growth. In terms of information governance, we fully implemented and passed TIPS Class A Certification for the Trade Secrets Protection System in 2024, enhancing the protection of intellectual assets and technical data. We also passed the ISO 27001 Information Security Management System certification, established a cybersecurity war room, conducted penetration testing, and implemented monthly cybersecurity awareness campaigns. No major cybersecurity incidents occurred during the year, demonstrating strong digital risk control and resilience. In financial governance, we advanced sustainable finance practices by signing sustainability index-linked loan agreements with seven financial institutions, incorporating ESG performance into loan evaluation metrics and establishing a sustainable finance mechanism. Additionally, we revised the annual performance appraisal system for senior executives in 2024, integrating ESG performance indicators, including carbon emissions, electricity savings, labor relations, and cybersecurity, into the performance evaluations of the President and Vice Presidents, thereby realizing the principle of linking corporate governance with sustainability performance.

Looking ahead to 2025, CHS has established six major operational directives: “Promote intelligent projects and leverage digital tools,” “Expand green steel product lines and introduce carbon reduction equipment,” “Strengthen customer relationships and ensure smooth operations across production, sales, logistics, and warehousing,” “Enhance product quality and production efficiency, and ensure effective technical knowledge transfer,” “Ensure workplace safety, health, and environmental protection and energy conservation,” and “Embed corporate culture and fulfill corporate social responsibility.” These strategic directions will guide the integration of our sustainability goals with our operational strategy, advancing toward a more resilient, sustainable transformation blueprint.