| Item | Material Issue 1 | Material Issue 2 | Material Issue 3 |
|---|---|---|---|
| Material Risk or Opportunity | Occupational Safety and Health | Energy Efficiency | Research Innovation |
| Business Case |
Occupational safety and health is one of the important components of corporate sustainability. Paying attention to the work safety and health of workers is the responsibility of the company, and it can also get the recognition of employees.
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In order to achieve energy conservation and carbon reduction and respond to mandatory greenhouse gas reductions in advance, CSC started the "Energy Saving Action Plan" in 2005. To date, four phases of the five-year plan have been completed, with each phase successfully achieving its total targets. During the fourth phase (2021-2025), CSC completed 1,308 energy-conservation projects, reaching 295% of the phase's total target. The fifth phase (2026-2030) of the plan will continue to be promoted. Furthermore, the 2025 annual achieved electricity saving rate reached 2.77%, exceeding the requirement of the Energy Administration, MOEA, that "energy users shall achieve an annual and average annual electricity saving rate of at least 1.5% for the period 2025-2028." In 2025, CSC completed 204 energy-saving projects, which saved a total of 949,000 GJ, and saved energy cost by 861 million TWD. These initiatives help mitigate rising energy costs, improve operational efficiency. |
CSC implements "hot metal charging technology" in EAF processes to optimize thermal efficiency. By overcoming key technologies—"thermal compensation" and "rapid melting"—CSC surpasses the conventional 30% scrap utilization limit, enabling the development of high-recycled-content low-carbon steel products certified under UL 2809. Based on the benchmark that recycling 1 ton of steel scrap reduces 1.5 tons of CO2 emissions, CSC translates R&D excellence into low-carbon competitiveness, helping customers reduce product carbon footprints and strengthen competitiveness in green supply chains. In addition, the steel-chemical co-production pilot facility has a carbon capture capacity of 4,900 tons per year. Although currently is a R&D platform, if the scale reaches 100,000 tons in the future, it will capture approximately 125,000 tons of CO2e, reducing carbon costs and production costs. |
| Types of business Impact | Risk | Cost | Opportunity |
| Business strategies |
We have followed the three main purposes of work safety, strengthen personnel hazard identification capabilities, deepen inspection levels, implement improvement measures.
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CSC mainly implements energy management through the Energy Conservation Committee and control of the energy management system (ISO 50001) to achieve the goals of energy conservation, carbon reduction and continual improvement. The Committee was formed and chaired by VP of Production Division. The Committee has three teams be responsible for energy saving and emission reduction in CSC's plants. The Committee also regularly holds meetings to review the achievement of current targets, share information on energy conservation projects, communicate relevant important topics, bring up appeals or consultations, propose interim motions, and publicize the records of the meeting. |
"Increasing scrap use" is one of the key strategies in CSC's carbon reduction pathway. To implement this strategy, CSC focuses on developing high recycled content steel products and advancing circular resource utilization technologies. In addition, CSC is developing a steel-chemical co-production pilot facility to capture and purify CO and CO2 from by-product gases in steel plants, supplying it to downstream petrochemical industries as raw materials for chemical synthesis. |
| Target |
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The actual energy intensity in 2025 is 5421 Mcal/tCS (22.70 GJ/tCS ). |
CSC plans to achieve a 25.3% carbon reduction target, compared to the base year of 2018 through key initiatives, including increasing steel scrap utilization, implementing steel-chemical co-production, and deploying hydrogen injection in blast furnaces. To reduce process carbon emissions and lower the capital expenditure required for decarbonization initiatives, CSC has been advancing the "Co-production of Steel and Chemicals" project since 2020. By 2030, CSC expects to expand its supply of carbon monoxide and carbon dioxide products to 125,000 tons CO2e /year. CSC plans to invest in building another flue gas capture plant with an annual carbon capture capacity of over 500,000 tons, gradually expanding the carbon capture scale in 2035. |
| Target Year | 2026 | 2026 | 2030 |
| Progress |
China Steel Corporation, in collaboration with the Occupational Safety and Health Administration of the Ministry of Labor, plans to build an XR training classroom in Somatosensory Training Building. The classroom will include VR training programs covering accident simulations, confined space operations, forklift operation, and rooftop work. It will also include simulations of electric shocks, mechanical impacts, and chemical splashes using physical equipment and MR glasses, creating a virtual-real overlay experience. Installation and operation are expected to begin gradually from 2026. This technological training approach aims to enhance employees' awareness of hazards and reduce the likelihood of accidents.
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The actual energy intensity in 2025 is 5,421 Mcal/tCS (22.70 GJ/tCS ). |
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| Executive compensation | The KPIs for executive committee members' performance evaluation include the accomplishment of occupational safety and health. The fixed and variable salaries given out in accordance with the findings of executive committee members' performance appraisal. | The KPIs for executive committee members' performance evaluation include the accomplishment of electricity savings rate. The fixed and variable salaries given out in accordance with the findings of executive committee members' performance appraisal. | The KPIs for executive committee members' performance evaluation include the accomplishment of greenhouse gas management. The fixed and variable salaries given out in accordance with the findings of executive committee members' performance appraisal. |