SEAISI Environment & Safty & Health Country Report

SEAISIEnvironment & Safty & Health Country Report Hsin-Jung Chen Office of Energy and Environment China Steel Corporation Taiwan, R.O.C December 2012

Contents Environmental Protection • Climate Change • Air Pollution • Wastewater • Soil & Groundwater • Waste & Byproduct Labor Safety and Health • Management of change • Education and training • Safety culture • Partnership with contractors • Physical examination and care • Disaster prevention plan • Lost Time injuries

Environmental Protection

Taiwan's Environmental Performance Ranked 29th Among 132 Nations The World Economic Forum announced the results of the worldwide ranking of the Environmental Performance Index, or EPI, in its latest forum held in January. Of the 132 nations ranked, Taiwan came in 29th, ahead of Canada (37th), South Korea (43rd), Australia (48th), the US (49th), Singapore (52nd) and China (116th).

1. Climate Change (1/5) • Taiwan Takes Action to Reduce Greenhouse Gases Taiwan has put into effect numerous policies and schemes designed to save energy and reduce carbon emissions. In accordance with the trends and conclusions of the UNFCCC COPs, Taiwan is conducting a full inventory of its greenhouse gas (GHG) emissions and is formulating responses to global warming in order to have appropriate GHG mitigation actions in place. Planning out appropriate actions will start with establishing a legal framework. Concrete measures will include reducing emissions within government departments, taking full advantage of market mechanisms, strengthening public education and promotion, and seeking international cooperation. This multilateral approach will also include efforts to combine resources and manpower from government, industry, and academia to work on emissions reduction and adaptation policies and measures.

1. Climate Change (2/5) • GHG Management Acts and Regulations • May 9, 2012─ Taiwan EPA announced GHGs as air pollutants under control by Air Pollution Control Act (APCA). • The GHG Reduction Act: • Pending for approval in the Legislative Yuan • Authorizes EPA: GHG reporting schemes, intensity standard, cap and trade system, and auction of allowances • No provisions of maintaining competitiveness and carbon leakage prevention

1. Climate Change (3/5) • Carbon Tax / Fees • Local Adaptation Fee • Local Government strives to pass a carbon-based Adaptation Fee Local Act, with tax rate 0.5 USD/tCO2. • Disputes in both legal and constitutional level: Currently carbon tax is not allowed in the local level in Taiwan. • EPA ruled that collecting air pollution fee in the local level is against the Air Pollution Control Act. • Currently postponed by City Council until legality proved. • Energy Tax • Currently under evaluation in Taiwan • Coking coal and coke may be taxed Huge impact on the steel industry • The Ministry of Finance has promised to consider competitiveness as well as environmental protection when setting the rates and complementary measures.

1. Climate Change (4/5) • Voluntary GHG Emission Intensity Target(CSC case) • 2020 target: 1.97 tCO2/tcs • Estimated investment: > 1 billion euro before 2020.

1. Climate Change (5/5) • District Energy Integration • CSC supplies surplus energy to nearby companies so that they can shut down low-efficiency or high-emission facilities. • 2011 external CO2 reduction: 542,000 tons

2. Air Pollution (1/3) • PM2.5 Regulation The EPA set air quality standards for PM 2.5 and more stringent emission standards for relevant precursors of PM 2.5 such as SO2 and NOx. • Fugitive Emissions from Stockpile • The EPA and local EPB request installation of in-house storage. • Only in-house storage are allowed for new installations.

2. Air Pollution (2/3) • Major sources of atmospheric PM 2.5 in Southern Kaohsiung Gasoline Vehicles (43%) > Secondary Nitrates (26%) > Diesel Vehicle (17%) > Secondary Sulfates (10%) > Iron & Steel (4%) • Action plans

2. Air Pollution (3/3) • Action plans

3. Wastewater • Continuous Monitoring of Wastewater Effluent • >10,000 CMD; pH, EC, Temp., COD, and SS • Real-time linked to EPA. • Stricter Effluent Standard NH3-N and dioxin to be included. • Storm Run-off Management • New standard: all regular items except SS • Coal yard: risk of exceeding regulation • Rain Water Recovery 2011: 290,000 m3 • Industrial Wastewater Purification Plant 13,500CMD

4. Soil & Groundwater(1/2) • Remediation Fee • The EPA started collecting “Remediation Fee” from the industry since 2001, and from steel industry since July 2011. • The Fee: NT$ 6/ ton Billet

4. Soil & Groundwater(2/2) • Cross-ministerial Cooperation to Control Soil and Groundwater Quality in Industrial Zones • EPA began conducting overall inspections of the nation's 151 industrial zones since 2010 • The EPA has devised a system of colored "lights" – red, orange, yellow, and green – to signal different levels of intensity in terms of management work in the 151 zones. • ten industrial zones had soil or groundwater pollution that exceeded the control limitation • The EPA will continue to rigorously inspect all red- and orange-light industrial zones for soil and groundwater pollution, and expects to complete its inspections of the 40 zones that have high pollution risk by 2015.

5. Waste & Byproduct (1/2) • Steelmaking Slag Recycling • Recycling of steelmaking slag is affected by following factors: • Heavy Metal Control Standard • Total chromium > 250 mg/kg = Soil pollution • Total chromium in BOF slag ~ 1000 mg/kg potential pollution source if applied on soil. • Expansion problem • Steelmaking Slag Modification Process to improve BOF slag expansion to nearly zero, in operation test since August 2012.

Labor Safety and Health (CSC CASE)

World Steel Association Safety and Health Excellence Recognition 2012 10.10.2012New Delhi worldsteel has recognised four member companies, China Steel Corporation (CSC), Gerdau, NatSteel, and Tata Steel Limited for excellence in their safety and health programmes. China Steel Corporation launched its Safety Promotion Project in 2008. The project focuses on four areas: ‘Safety Improvement Proposals’ including a ‘To Chairman’ mailbox allowing all employees to communicate safety concerns directly to the company chairman; ‘Physical Safety Training’ providing real-life simulation of the most common industry hazards; ‘Safety Care’ to address behavioural issues, and Health Promotion Activity including annual health examinations for all employees. The programme has helped to halve the company’s Lost Time Injury Frequency Rate (LTIFR) between 2008 and 2011.

1.Management of change • accidents always happen when there are significant changesof personnel and working conditions • establish a Management System of Change to ensure that every change goes through the hazard identification and risk assessment • the result of the assessment to ensure the safety of all manufacturing processes, activities and services

2.Education and training • human errors are involved in most occupational accidents • develop working habits to reduce human errors is a key of our safety and health training • arrange many exercises to enhance the response ability of employees to emergencies

3.Safety culture • a multi-dimensioned concept which needs to be analyzed and understood from different points of view. • in CSC is classified into three dimensions • Policy: Safety policy statement, organization management, resource supply. • Management: Construct CSC’s institutional framework based on responsibility attribution, safety control, licenses and training, reward and punishment, audit, improvement and response and safety care program. • Personal: To improve personal safety culture by changing workers’ safety concept, providing education and training, enhancing personal participation, safety and health care and bilateral communication.

4.Partnership with contractors(1/2) • Contractors’ performance on CSC’s work and their safety are an important part of business management, whereas disaster prevention is of the highest priority and is the most crucial issue due to the nature of their work. • Improve working conditions: • High employee turnover and aging are common problems for contractors. • We as a partner made proposals to address the problem of high employee turnover and working conditions such as increasing the SH management expenses and the contract price to improve working conditions, lower the turnover and decrease the possibility of work-related accidents. • These measures will help us establish a long-term partnership with the contractors.

4.Partnership with contractors(2/2) • Enhance training: • General training: • All contractor employees are required to undertake general training to make them fully understand the safety and health regulations at the worksite. • The contractor’s employees should undertake three-hour retaining courses certified by the Department of Labor Safety and Health every three years. • CSC will organize additional safety and health training if needed and the contractors should assign their workers to participate in the training. • Special operation training: • The contractor's employees engaged in special operation are required to undertake proper SH training and obtain licenses. • Those who operate dangerous machines or equipment as designated by the central government are required to pass the training course and skill tests approved by the central government.

5.Physical examination and care(1/2) Employees: We have a well-equipped clinic with professional medical care staff to perform diagnoses and provide early treatment as the first defense for employees’ health. We also subsidize their medical expenses. Due to the increase of older workers in CSC, it is an important responsibility for us to emphasize health checks on everyone and the medical staff provides suggestions on health early to prevent major disease attacks. In 2011, 7,828 employees undertook physical examination and 3,275 employees undertook special checks.

5.Physical examination and care(2/2) Contractors: In addition to the internal professional medical team, we also cooperate with regional hospitals in Kaohsiung. The specialists provide services in CSC plants weekly. CSC’s contractors have the same benefits of medical service and medicine as CSC employees. Health care: The clinic in CSC reminds workers of key factors for health improvement based on employees’ physical examination yearly. We also invite professionals to study the data of employees’ physical examinations and workplace conditions in order to identify potential dangers and offer education and training programs.

6.Disaster prevention plan • implements the regulations of TOSHMS (Taiwan Occupational Safety and Health Management System) by setting workplace safety goals and plans and achieving these goals to create a zero-accident workplace via a PDCA (plan, do, check and action) loop.

7.Lost Time injuries • Minor injuries: 20 • disabled injuries: 5 • F.R.: 0.25 • minor traffic accidents: 11 • catastrophic traffic injuries: 17 • no deaths • No female workers were injured occupationally in 2011

Thank you for your Attention

SEAISI Environment & Safty & Health Country Report