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 <\/p>\n

Press Release<\/b><\/span><\/p>\n

Implementing Sustainable Practices and Aligning with International Regulations<\/b><\/span><\/p>\n

China Steel Company Must Address Human Rights and Environmental Issues in Formosa Ha Tinh Steel Corporation<\/b><\/span><\/p>\n

Representatives from the Monitor Formosa Alliance attended the annual shareholder meeting of China Steel Corporation (CSC) today, urging the company to address the human rights and environmental violations caused by its joint venture, Formosa Ha Tinh Steel Corporation, in Vietnam. The alliance called on CSC to adhere to its own sustainability guidelines and the Ministry of Economic Affairs’ Corporate and Human Rights Action Plan by implementing appropriate human rights and environmental protection measures and openly communicating with stakeholders.<\/span><\/p>\n

Lin Jing-Hau, a researcher from the Environmental Rights Foundation and representative of the Monitor Formosa Alliance, pointed out that CSC, through its investment in Formosa. Ha Tinh (Cayman) Limited, holds a 20% stake in Formosa Ha Tinh Steel Corporation, making it the largest single shareholder and an influential entity on the company’s board.<\/span><\/p>\n

Lin highlighted that in April 2016, Formosa Ha Tinh Steel was responsible for Vietnam’s most severe marine pollution incident, resulting in the mass poisoning and death of fish in nearby waters, the death of a diver exposed to wastewater, and severe health impacts on local residents, affecting over 200,000 people. Despite these impacts, Formosa Ha Tinh Steel has yet to provide adequate compensation to the victims, who are currently pursuing litigation in Taiwan and receiving significant international attention.<\/span><\/p>\n

Lin emphasized that serious pollution and workplace accidents at Formosa Ha Tinh Steel are ongoing issues. Reports from local and international media indicate that in October 2022, the company released thick yellow smoke detectable up to 10 kilometers away, polluting rainwater and severely affecting the health and daily lives of local residents. Additionally, frequent workplace accidents have occurred, including an incident in August 2021 that resulted in the deaths of at least three workers, and another in October 2022 that caused one death and two injuries.<\/span><\/p>\n

Lin asserted that the operations of Formosa Ha Tinh Steel fall under the scope of CSC’s own “Sustainable Development Practice Guidelines.” Therefore, CSC should implement suitable human rights and environmental protection measures, disclose monitoring data and specific actions to address pollution and workplace safety, and actively engage with stakeholders to safeguard the basic livelihood and environmental rights of affected Vietnamese residents.<\/span><\/p>\n

Lin revealed that the alliance had sent a communication to CSC last month but has yet to receive a response. The alliance hopes CSC will honor its sustainability guidelines and engage in dialogue with society and stakeholders to resolve these issues collaboratively.<\/span><\/p>\n

Lin also noted the global trend towards sustainable supply chain reforms, where companies that sacrifice the environment and human rights will be gradually phased out. With the European Union recently passing the Corporate Sustainability Due Diligence Directive (CSDDD), unresolved human rights and environmental issues at Formosa Ha Tinh Steel could result in substantial fines and lawsuits for CSC, posing significant future risks for investors.<\/span><\/p>\n

Lin pointed out that similar legislation is not only emerging in the EU but also in the US, Asia, and Taiwan itself, with the Ministry of Economic Affairs implementing the Corporate and Human Rights Action Plan for several years. CSC should promptly establish a due diligence system to address human rights and environmental risks in its operations and develop a concrete action plan and timeline to resolve the issues at Formosa Ha Tinh Steel, aligning with domestic and international legislative trends.<\/span><\/p>\n

In response to Acting Chairman of China Steel Corporation (CSC), Wang Shyi-Chin’s claim that Formosa Ha Tinh Steel Corporation (FHS) is led by Formosa Plastics Group (FPG) and thus CSC is not suitable to intervene, he mentioned that, to his knowledge, after the 2016 marine pollution incident, the Vietnamese government did not impose any penalties on FHS for environmental protection and that FHS has already compensated the Vietnamese government. Lin Jing-Hao stated that according to CSC’s “Sustainability Guidelines,” the company should actively communicate with stakeholders regarding the operational activities of joint ventures and use its influence to actively push FPG towards sustainable development, rather than shirking responsibility. The continuous pollution by FHS has already been exposed by the media and local residents. If it is believed that FHS is not polluting, CSC, as the largest shareholder, could actively demand that FHS proactively publish monitoring data for public scrutiny.<\/span><\/p>\n

Finally, it must be clarified that the compensation paid by FHS to the Vietnamese government has not been adequately used for the livelihood compensation and improvement of local residents. Many residents have yet to receive any compensation and continue to face significant difficulties. This is why the victims initiated a lawsuit in Taiwan and why many international non-governmental organizations and even U.S. Congress members support the victims’ lawsuit. It is hoped that CSC can consider human rights and the value of social sustainability, engage in dialogue with the victims, and understand the situation in Vietnam.<\/span><\/p>\n

 <\/p>\n

Monitor Formosa Alliance urges CSC to provide public explanations and disclose relevant information on the following issues:<\/span><\/p>\n

    \n
  1. What impact does Formosa Ha Tinh Steel have on the local air, water, and soil environment? Please disclose monitoring data and a list of pollutants emitted during production.<\/span><\/li>\n
  2. What is the impact of Formosa Ha Tinh Steel on the health of local residents?<\/span><\/li>\n
  3. What is the impact of Formosa Ha Tinh Steel on local biodiversity?<\/span><\/li>\n
  4. What is the carbon emission volume of Formosa Ha Tinh Steel’s steel production and power generation processes?<\/span><\/li>\n
  5. How many workplace accidents have occurred at Formosa Ha Tinh Steel since its operation began? How many workers have died or been injured? What are the specific occupational safety and health protection measures in place?<\/span><\/li>\n
  6. Does CSC have a due diligence process for significant sustainability issues related to Formosa Ha Tinh Steel’s environmental, human rights, and climate impacts? If so, what is the process?<\/span><\/li>\n<\/ol>\n

    Members of Monitor Formosa Alliance:, Environmental Rights Foundation\u3001 Environmental Jurists Association\u3001Vietnamese Migrant Workers and Immigrants Office\u3001Justice for Formosa Victim\u3001Taiwan Association of Human Rights\u3001Covenants Watch<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>","protected":false},"excerpt":{"rendered":"

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