The global industrial and economic environment has alternated between gray rhino and black swan events since 2019. The U.S.-China trade war, COVID-19 pandemic, restructuring of industry chains, impact of low carbon, Russo-Ukrainian War, U.S. and global inflation, lockdowns in China, and energy crisis have caused a rise in operational risks and uncertainty for companies. Climate change is a massive gray rhino that will have a long-lasting and extensive negative impact on global industries, economies, and environment, and every global citizen, organization, and government must work together to respond to the challenges brought by climate change.
The Company periodically oversees progress and evaluates effectiveness to actively respond to climate change and carbon reduction issues. We actively implement controls for energy conservation, carbon reduction, and greenhouse gas (GHG) emissions to mitigate the impact of our operations on the climate and environment, taking action to fulfill our commitment to carbon reduction. Short-term carbon reduction mainly focuses on improving energy efficiency and increasing the use of renewable energy. Mid-term and long-term is divided into two stages: "first low carbon, then zero carbon," and we will dedicate efforts to the development and improvement of low carbon smelting technology. In the long-term, we will develop carbon capture and storage and hydrogen energy smelting processes.
In recent years, the Company has focused on the development of premium steel products with low carbon emissions and high scrap ratio, the galvanized steel product SGCC RC20 obtained UL2809 Environmental Claim Validation Procedure (ECVP) for Recycled Content in 2022, setting the best example for implementing circular economy. With regard to R&D for air pollution control, CSC engages in industry-academia collaboration with local universities and implemented the "AIR HoPE Industry-academia R&D Center" project, developing PM2.5 control technology, taking action to implement environmental protection and air pollution reduction work. For precious water resources, CSC has formulated a variety of water resource policies over the years and implements the 4R water conservation strategy: reduce, reuse, recycle, and replace. The strategy not only lowers the risk of water shortage, but also retains precious water resources for household use, creating a harmonious and mutually beneficial industrial development environment.
To lead further development on the foundation of CSC's core values and abilities, the Company's management team revised the vision for the next decade in 2022, and focused on three elements, namely smart innovation, green energy and carbon reduction, and value co-creation with stakeholders (customers, shareholders, employees, general public, and environment). The dual strategies of becoming a steel mill that provides high value premium products and services and developing the green energy industry in 2021 were incorporated to lay out the vision of " We aspire to be a sustainable growth enterprise that distinguishes itself through a firm commitment to smart innovation, green energy, carbon reduction, and value co-creation." CSC's new vision aims to become an excellent enterprise from a broader perspective based on the concepts of sustainability and ESG. Under the guidance of the new vision, CSC formulated the first 10-year (2023-2032) operation and development strategies, and examined major challenges that the Company will face by preparing a future events table. We formulated four strategic goals (financial indicators, high-end/premium steel products, green energy and environmental protection, and smart manufacturing) for the next decade starting from now, as well as 10 strategies and various action plans. In the future, CSC's goal will not be to produce more steel, but rather to create greater value through steel.
Employees are an important foundation for company growth. With more and more youth joining CSC, the Company has dedicated its efforts to creating a work environment with harmony between labor and management, and sorted through the corporate culture at the end of 2021 for the Company facing generational shift to retain its high quality corporate culture, and also incorporate cultural elements aligned with current trends. We have found the excellent DNA of CSC members and established common values, so that three generations of employees will be able to jointly make progress based on the corporate culture, and move forward side by side with a positive attitude when facing challenges and changes.
With the vision, strategies, personnel, and corporate culture all ready, we will exert every effort to continue improving the development, production, and marketing of premium steel products and create a premium on our steel products. We will implement AI in smart manufacturing, carry out digital transformation, develop low carbon energy applications and carbon capture technologies, and also invest in green energy and energy storage businesses. These efforts will transform the challenge of low carbon transformation into momentum for sustainable growth. With AI innovation as the foundation, we will continue to enhance the resilience of CSC, lead the domestic steel industry chain in enhancing its international competitiveness, and jointly create value and share results with all stakeholders.