China Steel Corp

CSC values the rights and opinions of its stakeholders and sets proper communication channels to promptly understand and address stakeholder expectations and demands. To appropriately respond to the relevant concerned issues of stakeholders, each department of the company divides the work to take responsibility for stakeholder communication. CSC's "Corporate Governance and Sustainability Committee" reported the results of annual stakeholder engagement to the Board of Directors in August 2022. CSC directly communicates with its stakeholders via a variety of channels, such as labor-management meetings, investor conferences, collaborative work safety meeting, production and sales meetings, and visiting each other, in order to collect suggestions and consider incorporating them into relevant goals. Questionnaire surveys are conducted anonymously to protect stakeholders' privacy and reflect their expectations of CSC in the most realistic manner. [...] CSC established the Corporate Governance and Sustainability Committee in November 2019 . The committee is primarily charged with assisting the Board of Directors in overseeing the promotion, implementation, and execution of various sustainability-related matters, such as corporate governance, ethical corporate management, sustainable development policies, risk management, energy conservation & carbon reduction and carbon neutrality, and digital transformation. The Corporate Governance and Sustainability Committee is composed of 5 directors, and 3 of them are independent directors who excel in mechanical engineering, material science, and finance and accounting. The other 2 directors are an employee director who values labor welfare and a manager with hands-on practices in management. The Committee meets the skills needed for corporate governance and sustainable development. 3 meetings were held in 2022. Organizational Structure of the Corporate Governance and Sustainability Committee [...] Task Force on Digital Transformation Corporate Governance and Ethical Corporate Management Team Sustainable Environment Development Team Employee Care and Social Engagement Team Risk Management Team Task Force on Energy Saving & Carbon Reduction and Carbon Neutrality The heads of the four execution teams, Corporate Governance and Ethical Corporate Management Team, Sustainable Environmental Development Team, Employee Care and Social Engagement Team, and Risk Management Team, are served by the vice presidents of the relevant divisions, while the Corporate Governance Officer serve as the convener. Task force on energy saving & carbon reduction and carbon neutrality is headed by the chairman of the board. Each execution team is responsible for reporting implementation plans and results to the Corporate Governance and Sustainability Committee and the Board of Directors on a regular basis. In addition, the Corporate Governance and Sustainability Committee periodically reports important information regarding the annual stakeholder communication outcomes and investor expectations to the Board of Directors, facilitating the Board's understanding of external expectations for the company's sustainable development.

###### Lobbying and Initiatives\n\n- CSC position on climate change\n\nCSC has set a target to achieve carbon neutrality by 2050, aligning with the objective of the Paris Agreement. In this context, we actively collaborate with domestic and international organizations we participated in, with a particular focus on organizations taking climate action, and are committed to ensuring that all our indirect climate advocacy actions remain consistent with the Paris Agreement. We will continue to work with these organizations to further align their targets with the Paris Agreement.\n\n###### Action\n "Sustainable Evaluation and Management Guidelines of Organizations".\n\nFor organizations taking a public climate stance that is misaligned with the international or domestic sustainable development goals, the Company, in compliance with relevant laws and regulations, will take the following actions:\n1. Reiterate the Company's stance on climate change or sustainable development goals to the organization.\n2. Request the organization to adjust its climate change stance within six months of our reiteration to align with international or domestic sustainable development goals. If the organization fails to do so within the specified period, the\nCompany will terminate our cooperation with the organization.\n\n- Survey of Climate Policy Preferences\n\nIn order to understand the extent to which the of the organizations have shown concern\norganizations we participated in align with climate goals, ≥85% for climate change and carbon neutrality issues.\nCSC conducts the Survey of Climate Policy Preferences\n\nof the executive/management/board members have\n\nevery two years. the ability to understand and address climate-related\n\n###### ≥87% issues. However, currently only 50% of the\n\nResults of the latest (2022) survey of Climate Policy organizations are supervising and managing\n\nPreferences: The majority of the organizations have made\nprogress in promoting and adapting to climate policies. of the organizations have been promoting climate\nIn the future, they will actively and pragmatically promote ≥85% change adaptation and the trend towards achieving\n\nnet-zero emissions among their members.\n\ncountermeasures to climate change and carbon neutrality.\nStill, organizations will contribute more to carbon neutrality of the organizations have applied for government\n\n###### <20% assistance in low carbon transition issues or have\nactivities if their risk management and guidance measures established processes to address climate-related risks.\nto members can be strengthened.\n\n[For more details [Climate Position and Advocacy] https://www.csc.com.tw/csc/esg/env/env10.html](https://www.csc.com.tw/csc/esg/env/env10.html)\n\n|≥85%|of fo|the organizations have shown concern r climate change and carbon neutrality issues.|\n|---|---|---|\n\n|≥87%|of th iss or cli|the executive/management/board members have e ability to understand and address climate-related ues. However, currently only 50% of the ganizations are supervising and managing mate-related issues.|\n|---|---|---|\n\n|≥85%|of ch ne|the organizations have been promoting climate ange adaptation and the trend towards achieving t-zero emissions among their members.|\n|---|---|---|\n\n|<20%|of as es|the organizations have applied for government sistance in low carbon transition issues or have tablished processes to address climate-related risks.|\n|---|---|---|\n\n###### Action\n "Sustainable Evaluation and Management Guidelines of Organizations".\n\nFor organizations taking a public climate stance that is misaligned with the international or domestic sustainable develop-\nment goals, the Company, in compliance with relevant laws and regulations, will take the following actions:\n1. Reiterate the Company's stance on climate change or sustainable development goals to the organization.\n2. Request the organization to adjust its climate change stance within six months of our reiteration to align with interna-\ntional or domestic sustainable development goals. If the organization fails to do so within the specified period, the\nCompany will terminate our cooperation with the organization.

CSC directly communicates with its stakeholders via a variety of channels, such as labor management meetings, investor conferences, collaborative work safety meeting, production and sales meetings, and visiting each other, in order to collect suggestions and consider incorporating them into relevant goals. Questionnaire surveys are conducted anonymously to protect stakeholders' privacy and reflect their expectations of CSC in the most realistic manner. [...] CSC's "Corporate Governance and Sustainability Committee" reported the results of annual stakeholder engagement to the Board of Directors in August 2023. [...] CSC collects and researches international carbon fee regulations and policies, actively participates in relevant meetings of various government departments, shares and communicates with competent authorities. CSC provides suggestions on aligning with international standards while maintaining industrial competitiveness during the policy formulation process. [...] CSC and affiliated enterprises compile their GHG inventory and plan the verification schedule according to the guidance of the Financial Supervisory Commission's "Sustainable Development Guidemap for TWSE- and TPEx-Listed Companies", and regularly reports the implementation status to the Board of Directors.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]CSC aimed to reach carbon neutrality by 2050. To make sure that our engagement consistent to our overall climate strategy, we not only submit suggestions/ ideas directly to policy makers but join policy committee of trade associations to track closely with the new launching/revising acts. Organization who shares same vision of 2050 net-zero is regarded as our priority engagement object. Once the engagement is approved by the board chair, regular meeting (once for 2-3 months) will be held by the CSC Energy Conservation and the Carbon Reduction & Neutral Promotion Unit to check whether the engagement works or not. The definition of a successful engagement: we set monthly targets and review the scheduled milestone is achieved or not. The Sustainable Environmental Development Group is responsible for promoting climate change and environmentally friendly tasks. The related work shall be reported to the Board of Directors regularly after reported to the Corporate Governance and Sustainability Committee.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]CSC is a member of the Chinese National Association of Industry and Commerce. In response to the global net-zero emissions trend, the association encourages member companies to actively adopt effective carbon reduction actions. Specifically, on October 7th, 111th year of the Republic of China, at the 70th anniversary celebration conference of the association, witnessed by President Tsai Ing-wen, Vice Premier Shen, and other distinguished guests, the Chairman of the association, Wu Dongliang, along with Honorary Chairmen Huang Maoxiong, Luo Jinming, Lin Bofeng, Vice Chairmen Huang Jiaozhang, Gao Guolun, and Luo Yijun jointly launched the "1.5-Degree Climate Action Declaration.