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Biodiversity Policy

Biodiversity Assessment

Biodiversity Exposure & Assessment

	Numbers of sites	Areas (Unit: Hectare)
Operational sites except for offices	2^Note	560.87
Scope of assessment	2	560.87
Proximity to critical biodiversity areas	0	0
Coverage of management plans	0	0

The sites include CSC's Hsiao Kang Plant and No.3 Cold Rolling Mill

To fulfill our commitment to biodiversity, we periodically conduct biodiversity assessments and commissioned the Department of Biological Sciences, National Sun Yat-sen University to help plan ecological investigation for plant areas and establish the baseline for species. The period is 2 years (November 2022 to October 2024), during which an investigation is conducted every quarter. Investigations are conducted on a monthly basis when migrant birds pass through, and the contents include land animals (mammals, birds, amphibians, reptiles, and butterflies) and plants.

As of September 2024, eight seasons of ecological investigations have been completed. In addition, data from bird investigations conducted by CSC Birdwatching Club from 1987 to 2019 and plant species recorded have also been compiled.

A total of 416 species of plants and animals were recorded in this assessment, consisting of 147 different families. Among them, there are 9 endemic species (White-eared Sibia, Taiwan Barbet, Kawakami Excoecaria, Long-branch Bambusa, Taiwan Incense Cedar, Taiwan Golden-rain Tree, Tainwan Cinnamon, Cinnamomum Kotoense, and Tashio's Hawthorn). 6 critically endangered species (Ring-necked Pheasant, Water Spangles, Cinnamomum Kotoense, Lanyu Podocarp, Sago Palm, and Aphrodite Moth Orchid), 5 endangered species (Fairy Pitta, looking glass tree, Nagai Podocarpus, Kusamaki, and Common Garcinia), 12 vulnerable species (Blinding Tree, Euphorbia sparrmannii, Kawakami Excoecaria, Narrow-leaved Dracaena, Indian Barringtonia, Small-leaved Barringtonia, Cagayan Nutmeg, Philippine Drypetes, Taiwan Incense Cedar, Ivorywood, Fan Palm, and Maki Podocarpus), and 6 near-threatened species (Slaty-breasted Rail, Oriental Honey-buzzard, Chinese Elm, Taiwan Ebony, Japanese Serissa, and Largeleaf Markingnut) are found. The aforementioned endemic species, critically endangered, endangered, and near-threatened species are primarily birds and plants. The bird species are migrant and transit birds observed and recorded by the CSC Bird Watching Club since 1987, while the plants were cultivated by CSC after the establishment of the plant for landscape greening purposes and are non-native species.

The summarized results are presented in the table below:

Classification	Families	Species	Endemic	Endemic Subspecies	Conservation ^{Note I}			Red List ^{Note II}
Classification	Families	Species	Endemic	Endemic Subspecies	I	II	III	CR	EN	VU	NT
Mammals	4	8	0	1	0	0	0	0	0	0	0
Birds	39	75	2	8	0	9	2	1	1	0	2
Reptiles	2	4	0	0	0	0	0	0	0	0	0
Amphibians	3	3	0	0	0	0	0	0	0	0	0
Butterflies	5	22	0	0	0	0	0	0	0	0	0
Plants	94	304	7	0	0	0	0	5	4	12	4
Total	147	416	9	9	0	9	2	6	5	12	6

Conservation levels based on the Council of Agriculture's Announcement No. 1071702243A issued on January 9, 2019: I - Endangered Species, II - Rare and Valuable Species, III - Other Conservation-deserving Wildlife.
Rarity categories based on the Red List of Terrestrial Mammals of Taiwan (2017): CR - Critically Endangered, EN - Endangered, VU - Vulnerable, NT - Near Threatened

The complete survey results from the aforementioned project will be used to establish a baseline dataset of ecological species in the plant area. This baseline data will serve as a reference to identify indicator species and be utilized by the research team to provide subsequent ecological assessment items and guidance for the implementation of environmentally-friendly measures. The aim is to maintain ecological balance and achieve the goal of no net loss (NNL) on biodiversity.

Biodiversity Risk Assessment

CSC conducted a biodiversity risk assessment using the methodology provided by the WWF Biodiversity Risk Filter. Incorporating the location-specific approach, CSC assessed the dependency- and impact-related biodiversity risks of it’s operational activities. Subsequently, biodiversity mitigating actions would be implemented to address the identified risks.

The scope of the assessment covered the Head Office, China Steel Building, Hualien Stone Handling Site, CSC Steel Sdn. Bhd., China Steel and Nippon Steel Vietnam Joint Stock Company, and Kaohsiung Park, which is adjacent to CSC’s operations.

Biodiversity Risk Filter Scape Risk Results

Scope	Site Name	Biodiversity Risk Filter Scape Risk Results	Land or Seascape
Scope	Site Name	Biodiversity Risk Filter Scape Risk Results	Scape Physical Risk	Scape Reputational Risk
CSC’s operational sites	China Steel Corporation (Head Office)	Taiwan	3.81	3.77
CSC’s operational sites	China Steel Building	Taiwan	2.5	2.89
Upstream activities	Hualien Stone Handling Site	Taiwan	3.56	3.89
Downstream activities	CSC Steel Sdn. Bhd.	Malay Peninsula	3	3.44
Downstream activities	China Steel and Nippon Steel Vietnam Joint Stock Company	South China Sea	3.38	3.77
Adjacent areas to CSC’s operations	Kaohsiung Park	Taiwan	3.05	3.2

Reference： WWF Risk Filter Suite

Biodiversity Mitigating Actions

To reduce the dependency on and impacts to biodiversity, the following mitigating measures and action plans have been taken:

Mitigating Measures	CSC Actions
Avoid	1. Avoiding development activities near World Heritage Sites and IUCN I-IV protected areas. 2. Since 2021, CSC has fully ceased the use of coal-fired boilers in its power plants to reduce air pollution emissions.
Reduce	Shore power systems have been installed at docks to allow ships to switch to electric power upon docking, reducing air pollution from fuel combustion. CSC has proactively scheduled process reduction and equipment maintenance during autumn and winter to improve air quality. CSC has implemented a diversified water resource policy by introducing the urban sewage reclaimed water and promoting wastewater recycling to reduce reliance on a single water source CSC has promoted circular economy to minimize environmental impacts from generation of process waste (For more details: Circular Economy)
Regenerate	CSC has established "Environmental Greening Management Operation Standards" to regulate the application process for new tree planting or transplantation in the surrounding areas when conducting various engineering projects within the mill. After the approval is granted by the Vice President of the supervising division, professional contractors are commissioned to carry out tree transplantation to ensure the survival rates of trees. Habitats contributing to biodiversity have been created by planting vegetation that attracts butterflies and birds.
Restore	CSC has adopted and maintained plantings in Kaohsiung parks. The CSC Group has organized irregular beach cleaning activities to protect marine environments.
Transform	The "Green Life Proposal" competition was held to encourage the creation of low-carbon and green lifestyles within the Group. Green procurement and green consumption have been promoted. CSC has participated in the government-led Water Environment Patrol Team to safeguard water resources. Various activities related to ecological conservation and environmental issues, e.g., summer ecology camps, environmental classrooms, have been organized by the Public Affairs Department and the CSC Group Education Foundation to raise public awareness of ecological conservation. (For more details: CSC Group Education Foundation)