Title page 1

Contents 5

Acknowledgements 2

Executive Summary 3

1.0. Introduction: China's pivotal role for more sustainable mineral supply chains 8

1.1. Study Objectives 9

1.2. Scope of Study and Definitions 9

1.3. Methodology 10

2.0. Trends in ESG Management in Transnational Mineral Supply Chains 12

3.0. China's ESG Framework for Mineral Chains 14

3.1. Development of China's Domestic ESG Framework 14

3.2. National and Industry Standards: Environment ahead of social 17

3.3. Financial Regulatory and Disclosure Rules: From voluntary to mandatory, with gradually refined requirements 19

4.0. Chinese Overseas Mining and Processing Operators: Between voluntary guidelines and international standards 22

4.1. Guidelines for Social Responsibility in Outbound Mining Investments 23

4.1.1. Scope of Application 24

4.1.2. Implementation Progress 24

4.2. Chinese Due Diligence Guidelines for Mineral Supply Chain 24

4.2.1. Scope of Application 25

4.2.2/4.2.1. Implementation Progress 26

4.3. Other Policies and Standards Applicable to Chinese Overseas Mining and Processing Operations 27

4.3.1. ESG Disclosure Guidelines for Non-Ferrous Metal Enterprises 27

4.3.2. Guidelines for Overseas Environmental Protection 28

5.0. The Adoption of International and Chinese Sustainability Standards in Chinese Companies: A comparative analysis 30

5.1. Objective and Methodology of the Comparative Analysis 30

5.2. Selected International Standards: IRMA 2.0 and RRA 3.0 31

5.2.1. IRMA's Standard for Responsible Mining and Mineral Processing 2.0 31

5.2.2. The Copper Mark's Risk Readiness Assessment Criteria Guide 3.0 32

5.3. Results of the Comparative Analysis 32

5.3.1. Benchmark Result for IRMA 2.0 and the GSRM and the GDDM 32

5.3.2. Benchmark Result for RRA 3.0 and the GSRM and the GDDM 36

5.3.3. Overall Findings of Benchmark Exercise 38

6.0. Chinese Nickel Processors in Indonesia 39

6.1. The ESG Regulatory Environment in Indonesia 39

6.2. Progress and Gaps in ESG Practices: Chinese nickel processors operating in Indonesia 42

7.0. Findings on Overseas Chinese Companies' ESG Management Practices 45

7.1. Characteristics and Gaps in ESG Management of Overseas Chinese Enterprises 45

7.2. Challenges in ESG Management Practices of Chinese Nickel Processors in China and Indonesia 45

8.0. Conclusion and Recommendations 47

References 50

Appendix A. List of Interviews 58

Appendix B. National and Sector Standards Related to ESG in Mineral Value Chains 60

Appendix C. Overview of the Initiative for Responsible Mining Assurance Draft Standard for Responsible Mining and Mineral Processing 2.0 66

Appendix D. Overview of the Responsible Minerals Initiative and The Copper Mark's Risk Readiness Assessment Criteria Guide v3.0 68

Appendix E. Benchmark Analysis With Main Gaps in Chinese ESG Standards Compared to IRMA 2.0 70

Table 1. Overview of Chinese VSSs applicable to overseas companies 28

Table 2. Summary of the benchmark exercise for IRMA 2.0 33

Table 3. Main gaps in the GSRM and GDDM compared with IRMA 2.0 34

Table 4. Summary of benchmark exercise for IRMA 2.0 36

Table 5. Main gaps in the GSRM and GDDM compared with RRA 3.0 36

Figure 1. Overview of China's ESG framework 21