Responding to Climate Change-ZANGGE MINING COMPANY LIMITED

Climate change is one of the major challenges of our era and represents a significant non-traditional security issue facing human society today. To address climate change and mitigate its social impacts, Zangge Mining strictly fulfills its environmental protection responsibilities in production and operations, aligns with green operation trends, and continuously promotes the virtuous interaction between ecological protection and business development. At the same time, the company actively implements climate change mitigation policies, promotes green and low-carbon development, and contributes to the national goals of carbon peaking and carbon neutrality.

Climate Change Risk and Opportunity Identification

Based on the Intergovernmental Panel on Climate Change (IPCC) Representative Concentration Pathways (RCPs), namely RCP4.5 (low-carbon scenario) and RCP8.5 (high-carbon scenario), Zangge Mining conducts scenario analyses to comprehensively identify potential physical risks in the short term (2030), medium term (2050), and long term (2080). The specific results are illustrated in the accompanying diagram.

Transition Risks and Opportunities

Against the global context of industrial green transformation and China’s “dual-carbon” strategy, changes in climate-related policies and regulations, technological innovation, market sentiment, and consumer preferences may impose compliance risks and cost pressures on enterprises. Zangge Mining evaluates these transition risks based on its business development, external policy adjustments, and industry trends, and preliminarily formulates corresponding response measures. At the same time, the company identifies emerging market and technological opportunities during the transition, allowing for precise strategic planning and timely adjustment of development strategies to ensure sustainable and stable growth.
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Zangge Mining strictly complies with the Energy Conservation Law of the People’s Republic of China and has formulated and actively implemented procedural documents such as the Energy Management System, Energy Consumption Measurement Management System, Energy-saving Incentive System, Energy Performance Parameter Control Procedure, and Energy Manual. An energy management system has been established in accordance with ISO 50001 standards. By the end of the reporting period, all production bases (Zangge Potash, Zangge Lithium) had obtained ISO 50001 energy management system certification. The company conducts internal energy audits annually and external audits every three years to ensure compliance. Energy management objectives are set annually, and diversified energy-saving measures are adopted to achieve these targets.
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To strengthen energy management, Zangge Mining has established a three-tier energy management framework to increase participation of personnel across the company. The Energy Management Leadership Team, chaired by the CEO, oversees and makes decisions regarding energy management.

Strategic Management Approach

The company adheres to the energy policy of “compliance, continuous improvement, innovation, and cost reduction,” continuously enhancing its energy management level.
Energy-saving audits are conducted across all company operations to fully identify energy-saving potential and promote cost-effective energy use. During the reporting period, Zangge Potash carried out a comprehensive energy management audit covering production workshops, mining areas, office spaces, and ancillary facilities. Based on energy audit results and energy-saving diagnostic reports, the company focuses on strengthening energy compliance, improving measurement accuracy, implementing energy-saving technological upgrades and process optimizations, and enhancing employee energy efficiency training. These measures collectively aim to comprehensively improve Zangge Mining’s energy management capability.

Indicators and Targets

In 2024, both Zangge Potash and Zangge Lithium set detailed energy management targets. In addition, Zangge Lithium signed “Energy Management Target Responsibility Agreements” with all employees involved in energy management to promote the achievement of energy saving and emission reduction tasks. Both Zangge Potash and Zangge Lithium also established energy control indicators for 2024, covering metrics such as comprehensive energy consumption per unit of product and electricity consumption, thereby strengthening energy performance management. The targets for 2024 are as follows:

Zangge Potash

By the end of 2024, reduce energy consumption per unit of product by 10% through the introduction of advanced energy-saving technologies and management measures. By the end of 2024, increase energy efficiency in production processes by 15% through equipment upgrades.

Zangge Lithium

Achieve a 98% or higher training pass rate for energy management personnel. Ensure 100% compliance of metering equipment with GB 17167 (General Rules for Energy Metering Equipment Configuration and Management of Energy-Using Units).

Whistleblowing

Reporting Hotline:+86-028-89992276

Reporting Email:jc@email.zanggekuangye.com

Mailing Address:Audit and Supervision Office, CAG Mining Co., Ltd., 19th Floor, Building 2, No. 1199 North Section of Tianfu Avenue, Chengdu High-tech Zone, China (Sichuan) Pilot Free Trade Zone, 610041

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