On November 25, 2025, a delegation from the China Climate Engagement Initiative (CCEI) and Climate Action 100+ visited Baosteel headquarters for an in-depth exchange on the company's climate transition. As a leading enterprise in China's steel industry, Baosteel plays a pivotal role in driving the sector's climate transition. This event was conducted within the framework of the joint engagement working group for Baosteel, established through collaboration between CCEI and Climate Action 100+. The Working Group is led by APG Asset Management (APG), with participation from over ten major domestic and international institutional investors, creating a practical platform for communication on sustainability between the company and the capital markets.

Participants in this research and exchange activity included ESG and investment teams from ChinaAMC, Fidelity International, Harvest Fund, China Construction Bank Investment Management, China Life Asset Management, Bosera Asset Management, Neuberger Berman Investment Management, Pictet Asset Management, Springs Capital, and China Industrial Securities Global Fund, alongside expert representatives from the Principles for Responsible Investment (PRI) and the CCEI Secretariat. Senior leaders from Baosteel's Operations Center, Board Secretary Office, Planning & Technology Department (Carbon Neutrality Office), and Financial Management Department attended the meeting. They engaged in comprehensive discussions with the delegation on Baosteel's low-carbon strategy, low-carbon technology pathways, carbon market compliance preparations, supply chain emission reductions, and governance system development.

The meeting was chaired by Ms. Miranda Zhao, Head of Responsible Investment, Greater China at APG Asset Management. The session began with introductions from Mr. Zhao Lijian, Joint Secretary General of CCEI, and Ms. Zhou Aiwen, Climate Action 100+ Stewardship Specialist at PRI, outlining the purpose of the visit. Subsequently, Baosteel provided a comprehensive overview of its overall operations, transition goals and strategy, low-carbon technology roadmap, and shared insights on industry transition trends.

Following this, Ms. Miranda Zhao, on behalf of the Working Group, facilitated a systematic and in-depth exchange with Baosteel on climate transition topics of high importance to the capital markets. The discussion primarily addressed the impact of domestic and international policy changes on the industry, preparations for compliance under China's national carbon market, investment and development of low-carbon technologies, market prospects for low-carbon products, and internal climate governance. Institutional investors offered constructive suggestions during the dialogue, and both sides reached a more thorough understanding and consensus regarding the company's short-, medium-, and long-term transition pathways.

After the meeting, Baosteel invited the delegation to tour the company's hot-rolling production line and its Operations Center. This provided the delegation with a more direct understanding of the company's production and operational status, particularly its level of automation and intelligent management, as well as specific energy-saving and emission-reduction measures. This visit not only deepened investors' understanding of Baosteel's transition strategy, low-carbon technology pathways, and governance system but also demonstrated the commitment of long-term capital to the company's climate transition. Such engagement helps translate the company's transition practices into long-term investment value.

In the future, both parties intend to use this exchange as a starting point to establish a long-term dialogue mechanism between investors and the company, fostering a more resilient interactive framework on key climate issues.