Sustainability at North Star

In 2025, North Star took an important step in its corporate development by preparing its first sustainability report. Five key topics now guide our sustainability management: Climate Change, Environmental Impact, Labour & Human Rights, Business Ethics and Sustainable Procurement. These topics align operational priorities with stakeholder expectations.

As this is our first sustainability report, ESG management and data systems are still developing. Nonetheless, this report demonstrates our willingness to assess performance honestly, strengthen internal systems and establish a clear path for improvement.

We hope this report helps stakeholders understand our progress and commitment to responsible development.
On behalf of the company, I thank all employees, customers, suppliers and partners for their continued support. We look forward to working together to promote responsible manufacturing and a sustainable future.

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Michael Lyu

General Manager

Three Management Objectives

Strengthening Governance

The company aims to improve internal ESG governance through clearer policies, responsibilities and management processes, strengthening accountability across environmental management, procurement, human resources, operations and business administration.

Improving Operational Performance

The company seeks to improve sustainability performance through practical action, including energy-efficiency measures, green electricity use, cleaner production practices, employee training, safety management and process optimization.

Supporting Long-Term Sustainable Development

The company aims to gradually improve ESG data management, supplier engagement and target setting. The company views 2025 as a foundation year for establishing future direction and performance improvement.

Five Key Sustainable Development Issues

Climate Change

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Environmental Impact

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Labour & Human Rights

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Business & Ethics

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Sustainable Procurement

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Future Sustainability Goals

North Star acknowledges that ESG management is still developing and will continue to improve data collection, target-setting and disclosure practices. Building on the foundations established in 2025, the company intends to continue improving its sustainability

Environmental Performance

  • Increase the use of green and renewable electricity
  • Improve energy efficiency in production and equipment
  • Strengthen waste management and pollution-control practices
  • Improve water-saving and resource-efficiency measures
  • Enhance environmental monitoring and internal management

Climate and Energy Management

  • Use2024 GHG inventory as a baseline and continue to improve GHG data collection
  • Increase the share of renewable electricity in total electricity consumption
  • Identify further opportunities to reduce Scope 1 and Scope 2 emissions
  • Support lower-carbon sourcing to reduce upstream Scope 3 impact
Business Ethics and Governance
  • Reinforce ethics awareness and policy implementation
  • Strengthen anti-corruption, compliance and accountability mechanisms
  • Improve data and information security awareness and controls
  • Enhance internal reporting and response mechanisms for potential violations

Sustainable Procurement

  • Expand supplier acceptance of the Supplier Code of Conduct
  • Improve supplier ESG communication, disclosure and oversight
  • Strengthen compliance review of key suppliers
  • Increase the use of lower-carbon / green materials where technically feasible
  • Improve supply-chain transparency and traceability

 

Labour and Employee Development
  • Maintain structured onboarding and role-based training systems
  • Strengthen competence development and training effectiveness evaluation
  • Continue to enforce child-labour prevention controls and identity-verification requirements
  • Improve employee awareness of company policies and management-system requirements

ESG Reporting and Data

  • Improve the completeness and consistency of ESG indicators
  • Expand sustainability-related internal training and awareness
  • Strengthen the link between policies, targets and performance monitoring
  • Continue publishing sustainability information on a regular basis

 

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North Star will continue to improve the completeness, consistency and accuracy of ESG information in future reporting periods

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Pollution Prevention and Resource Efficiency
North Star minimises environmental impact through cleaner production, process management and routine environmental controls covering waste handling, emissions control, water saving and energy  conservation.

Green office practices were also promoted during the year, including reduced paper use through digital systems.

Raw Materials and Supply Chain
As noted in the GHG inventory results, raw materials represent a major part of the company’s environmental footprint.

In 2025, while total steel procurement volume remained broadly stable compared with 2024, the share of lower-carbon / green steel procurement increased by approximately 50%.

Going forward, we plan to increase renewable electricity use, improve energy efficiency, strengthen waste management and pollution control, increase lower-carbon raw material sourcing, and improve environmental data collection and monitoring.

North Star recognizes that sustainability extends into its supply chain. In 2025, the company issued its first Sustainable Procurement Policy and Supplier Code of Conduct, establishing clearer expectations for suppliers and business partners and providing a stronger
basis for responsible sourcing, lower-carbon material selection and supply-chain transparency.

Supplier Standards and Expectations

The Sustainable Procurement Policy and Supplier Code of Conduct apply to suppliers, subcontractors and relevant business partners, addressing：

  • Legal compliance
  • Labour and human rights
  • Occupational health and safety
  • Environmental protection
  • Climate change
  • Anti-corruption and fair competition
  • Information security and confidentiality
  • Responsible business conduct

Indicators Under Development

As ESG management matures, North Star intends to improve data collection and disclosure for additional indicators, which may include:

  • Workplace safety performance metrics
  • Broader energy consumption data
  • Water consumption data
  • Waste management and recycling data
  • Supplier ESG implementation data
  • Business ethics and governance-related training data 

Data and Information Security
The Data and Information Security Policy, issued in September 2025, applies to all employees and establishes requirements relating to:

  • Legal compliance in data and information management
  • Confidentiality and controlled handling of sensitive information
  • Protection of technical documents, customer information and business records
  • Restrictions on unauthorized disclosure or transmission of company information
  • Responsible third-party access controls
  • Record accuracy and protection against data falsification
  • Reporting and investigation of security risks or violations

Reporting Channels
North Star encourages employees and relevant third parties to report suspected violations of business ethics, compliance rules or information-security requirements, and seeks to ensure such reports are handled confidentially and investigated promptly. The Management Center plays a key role in policy interpretation, support and oversight. Future priorities include enhancing training, reinforcing internal reporting mechanisms and further integrating ethical
expectations into supplier and partner management.