To our stakeholders:
I am pleased to confirm that China Baowu Steel Group Corporation Limited reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.
In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to sharing this information with our stakeholders using our primary channels of communication.
Sincerely yours,
Chen Derong
Party secretary and chairman of China Baowu Steel Group Corporation

China Baowu cares about the community and is committed to creating a harmonious community atmosphere through listening to the needs of community residents, improving local infrastructure and the living conditions for residents; it advocates the spread of friendship inside and outside the company, inspires the initiative of employee volunteers to use sincerity and enthusiasm to carry out a series of public welfare activities and voluntary services such as respecting the elderly and loving the young, caring for the disadvantaged groups, and promoting public health, and strive to be a pioneer in serving the city.
Women can shoulder heavy responsibilities and perform well. Female employees in the new era are an indispensable and important part of China Baowu’s reform and development.

Strictly following the requirements of the “Management Method for Donations and Sponsorships” and the “Notice on Strengthening the Management of Donations,” China Baowu has standardized the donation approval process and strengthened the tracking of donated projects.
China Baowu has mobilized a large number of volunteers to take active actions in the fight of the epidemic and social welfare and formed a large team of volunteers who can represent the image of Baowu's youth. Meanwhile, it planed to register the service hours of volunteers and booked them to effectively protect the rights and interests of volunteers.
China Baowu launched the selection and commendation activities of the “Rose Cultivation Award” and “Rose Blooming Best Practice Award” to promote the best practices of female employees.

China Baowu donated a total of RMB 279.5135 million. The headquarters and 15 subsidiary companies implemented 78 external donation projects, and each project was strictly managed and implemented within the approved budget.
In 2020, a total of 5272 volunteers of China Baowu participated in the work of epidemic prevention and control，with a total of 21,088 hours.
A total of 15 individuals and 15 collectives have won the honor of the “Rose Cultivation Award” and “Rose Blooming Best Practice Award”.

The development of an enterprise is inseparable from every employee. China Baowu fully respects and protects the basic rights and interests of every employee, implements a diversified talent development strategy, pays attention to employee’s growth, and creates a career platform for them to show their talents and creativity so that employees can work happily and live the good life which features in “wealth, leisure and fulfillment.”

China Baowu strictly abides by laws and regulations including the Labor Law of the People’s Republic of China and the Labor Contract Law of the People’s Republic of China, insists on equal employment, prioritizes localized employment, opposes forced labor, signs labor contracts with employees in accordance with the law, pays social insurance in strict accordance with regulations, protects the personal privacy of employees, and has continuously improved the basic management of the employment.
China Baowu has constantly improved the construction of a democratic management system, effectively implemented the fundamental policy of wholeheartedly relying on employees to run an enterprise, and actively ensured employee’s the right to know, participate, express, and supervise through workers’ congress, employee directors and supervisors, collective consultation, disclosure of factory affairs, and activities such as “China Baowu in the eyes of employee representatives.”

100% signing rate of labor contract, 100% coverage of social insurance.
Employees and managers had a good overall evaluation on the operation of the workers' congress, collective negotiation, and disclosure of factory affairs. The employee satisfaction rate was 82.36 percent, and the satisfaction rate of managers at all levels was 94.64 percent.

China Baowu has firmly taken Xi Jinping’s thinking on ecological civilization as the guide, stuck to the basic state policy of resource conservation and environment protection and the major national strategy of developing circular economy, adhered to the management guideline of “fulfilling the principal liability of legal person according to laws and regulations, boosting ‘Three Treatments and Four Doing’, realizing ‘Two-than and One-into’, technological innovation driving green industrial development, resource sharing powering urban ecological civilization”, and organized to carry out energy and environmental protection management.

China Baowu has vigorously promoted energy-saving technical upgrading and pressed the “fast forward button” of carbon reduction to reduce energy consumption.
The units of China Baowu have continued to increase the use of new energy.
China Baowu continuously strengthened “ultra-low exhaust gas emission, zero wastewater discharge, no solid waste leaving the factory” and “cleaning, greening, beautifying, civilizing”, and enhanced green manufacturing so as to ensure the level of treatment higher the standard, the factory environment better than that of the urban area and the enterprise development integrated into the city, actively built a leading practitioner of green transformation in the industry, and help win the battle to defend the blue sky, green water and clean land.

Baosteel can annually save about 50,000 tons of standard coal. Masteel Group can annually save about 45,000 tons of standard coal. Bayi Iron & Steel has upgraded 55 pumps in the steel mill and the rolling mill into highly efficient and energy-saving water pumps.
Masteel Group completed the construction of the fourth steel rolling plant of Maanshan Iron & Steel and the distributed photovoltaic power generation project of Special Steel Company, which are expected to generate 9.5 million kWh of electricity annually. Bayi Iron & Steel used 299 million kWh of new energy such as wind energy, light energy and electric energy.
12.5% reduction rate of sulfur dioxide emissions, 10.9% reduction rate of NOx emissions, 7.2% Reduction rate of COD emissions. The plant green coverage rate of China Baowu’s major manufacturing enterprises exceeded 30% and the plant green rate of Bayi Iron & Steel, which is dry and rainless in northwestern China, reached up to 47.74%.

China Baowu insists on compliance with laws and regulations, parity of authority and responsibility, coordinated operation and effective balances, so as to promote the high-quality development of the enterprise.
China Baowu focuses on push forward the work related to anti-corruption to guarantee the completion of various production and operation tasks.

Establish an audit and supervision system that matches with state-owned capital investment companies.
China Baowu has fully played the core role of the Board of Directors in the construction of the total risk management system and formed a reporting system where major and significant risks are identified and determined at the beginning of the year and the total risk management and control are debriefed every quarter.
China Baowu has comprehensively and further promoted sunshine procurement. Information means has been introduced to supervise the exercise of power and effectively avoid the moral hazards in the transaction.
Send holiday reminders and conduct supervision inspections.

The losses amounting to RMB 23,723,100 were recovered through internal audits.
More than 1,100 requirements of clean working during holidays, 22,000 reminding short messages and, WeChat messages, and 6,000 emails had been sent.
The Compliance and Risk Control Committee of the Board of Directors held four meetings, hearing eight audit topics and putting forward 18 special opinions to the Board of Directors mainly on the Company’s total risk control, compliance management, financial derivative review, and so forth.
The whole process of transactions of all the subsidiaries from the issuance of procurement requirements to the notification of procurement results was conducted through the e-commerce platform under the unified organization and management of Baowu.