Nanjing Iron & Steel: Trending Favorably on ESG Progress

4.74
35 ratings

Nanjing Iron & Steel Co., Ltd. is engaged in the smelting and processing of ferrous metal products, along with the sale of steel and other metal materials in East China and overseas markets. An analysis of the company's environmental, social, and governance policies are as follows:


Environment


From an environmental perspective, the company scores favorably, particularly outperforming on the Resource Use Score front, but underperforming on the Environmental Innovation Score front.


For instance, it has implemented a resource reduction policy, which compares to the presence of a clear policy in the prior year. The company has implemented a water efficiency policy, with an energy efficiency policy implemented as well. This compares to the presence of a similar policy in the prior year.


Environmental policy areas the company is currently lacking include Environment Management Training and Environmental Materials Sourcing. Areas the company has addressed include Environmental Supply Chain Policy, Resource Reduction Targets, Water Efficiency Targets, Energy Efficiency Targets, the setup of an Environment Management Team, and Toxic Chemicals Reduction.


The company has also not implemented renewable energy use, which compares to the lack of a clear policy in the prior year. The company has also notably not implemented green buildings as well, which compares to the lack of a defined policy in this regard in the prior year.


In terms of its carbon footprint, the company's Estimated CO2 Equivalents Emission Total stands at 20,040,423 in the latest fiscal year based on Reported CO2 numbers.


Social


From a social standpoint, the company scores favorably, particularly outperforming on the Workforce Score front, but underperforming on the Human Rights Score front.


For instance, it has implemented a health and safety policy, which compares to the presence of a clear policy in the prior year. The company has also implemented an Employee Health & Safety Policy, with a Supply Chain Health & Safety Policy not implemented as well. This compares to the lack of a similar policy in the prior year.


The company has produced a decline in Net Employment Creation. The Number of Employees from CSR reporting totals 10,161.


As of the latest fiscal year, there have not been Management Departures, while the prior year saw no departures. Meanwhile, the company experienced no strikes this year, which compares to no strikes in the prior year.


Governance


From a governance standpoint, the company scores favorably, particularly outperforming on the Management Score front, but underperforming on the CSR Strategy Score front.


The company does not have a Corporate Governance Board Committee, but has a Nomination Board Committee, has an Audit Board Committee, and a Compensation Board Committee. The company does have a Board Structure Policy and does not have a Policy for Board Independence in place. The Board has held 14 meetings in the last fiscal year. The Board size currently stands at eight members based on the latest annual/ESG report.


The Board has an average tenure of 7.3 years. Board diversity stands at 12.5% for gender diversity but lacks cultural diversity.


The company has implemented a Policy for Executive Compensation Performance but has not tied Executive Compensation to ESG Performance. The company has implemented a Policy for Executive Retention and has implemented a Succession Plan, along with an External Consultant policy.


The company has not implemented CEO-Chairman Separation and does not have its CEO as a Board member. Its chairman is not an ex-CEO. Board member term duration stands at three years. In total, senior executives' compensation has risen in the latest fiscal year. Notably, the CEO compensation is not linked to total shareholder return. Meanwhile, executive compensation is not linked to long-term objectives. Sustainability compensation incentives have not been implemented. Thus far, there have not been any executive compensation controversies.


Sources:


https://yoursri.ch/companies-dx/c9e734454803c5c47d6ff686f0d3812a


http://www.njsteel.com.cn/En/Products?ccId=e8c97f6d-5231-49d8-aa46-4ecb64113f06

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