Starting with ESG in the corporate operation and development as well as the risks and opportunities in sustainable development, on the basis of support to the United Nations Sustainable Development Goals (SDGs), taking the building of a “world-class mining group” as the long-term objective, by reference to the international mainstream ESG management experience, the Company defines climate change, natural resources, human capital, business ethics, transparency, and other elements as the strategic direction, in order to guide the continuous improvement of the corporate ESG management capability. 

In 2022, the Company published the “Five-Year (2022-2027) Strategic Plan for Development of Zangge Mining” (Hereinafter referred to as the “Five-Year Development Strategy”). According to the “Five-Year Development Strategy”, the Company will complete the building of ESG system initially in the first phase (2022-2024); in the second phase (2025-2027), the Company’s ESG system will reach the top-ranking level in the world.  

Under this framework, we started officially to build ESG management system in 2022. At work, we find that just like the planting of a big tree, it is necessary to build ESG management system in an orderly way from simple to complex and combining theory with practice. Therefore, we compare the building of ESG management system with the planting of tree, and propose to take the “Tree Planting Theory” for building of ESG system as the thinking of our ESG strategic plan. 

In conjunction with the Company’s Five-Year Development Strategy, we divide the Company’s ESG strategic plan into four stages:

• According to the objectives and directions of the “Five-Year (2022-2027) Strategic Plan for Development of Zangge Mining”, the Company establishes the “Environmental, Social and Corporate Governance Management System”, specifying that the Board of Directors shall be taken as the highest leading body, the ESG and Sustainable Development Management Group as the discussion and decision-making body, and the ESG and Sustainability Execution Group as the management structure of the executive body, which is responsible for driving the daily work of the enterprise environmental, social and corporate governance.

• In order to better implement various work, the Company is actively building ESG management index system, and is expected to complete the initial building of the index system by the end of 2023.