Fair Pay & Worker Respect
20
As a large-scale industrial mining and chemical processing company, Tianqi Lithium operates in a sector with significant labor risks, but its core business model does not inherently advance or harm fair pay and worker respect practices, which are determined by corporate policy and operational management. Tianqi Lithium (9696.HKEX) demonstrates high performance across several labor-related KPIs based on its 2023-2025 sustainability reporting. Regarding labor structure and rights, the company reports a 100% labor contract signing rate and 100% union membership/collective contract coverage for its domestic operations
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. This supports the highest tiers for collective bargaining and contract security. In terms of safety, the company reported zero work-related fatalities over the past three years and an accident rate per million man-hours of 0.54 in 2024
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. This converts to a TRIR of approximately 0.108 per 200,000 hours, placing it in the highest safety tier (TRIR < 0.5). Employee retention and satisfaction are stable, with a voluntary turnover rate of 12.37% in 2025
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and a total turnover of 10.82% in 2024
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, aligning with the 12% industry stability benchmark. The company's first large-scale employee satisfaction survey in 2024 yielded a score of 79.8/100 with high participation (88.78%), corresponding to a tier of 20
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. Worker protections are robust, with 100% coverage for social insurance and housing funds in China, supplemented by commercial medical insurance (accidental, inpatient, and outpatient) for employees and their families
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. The company also reported zero substantiated incidents of child labor, forced labor, or workplace discrimination across multiple reporting periods
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. While the company commits to paying at or above local minimum wages and meeting living needs, specific quantitative living wage coverage percentages against NGO benchmarks were not provided, leading to the omission of that KPI.
Fair Trade & Ethical Sourcing
0
As a major extractor and processor of lithium, the company operates in a sector with high risks of human rights abuses in the supply chain, requiring rigorous due diligence; however, its core business is not inherently exploitative or fair-trade by definition, making its impact dependent on its specific sourcing and labor practices. Tianqi Lithium demonstrates a structured approach to ethical sourcing, though some performance metrics vary across its global operations. **Ethical Clauses & Risk Management:** The company achieves a high score in ethical clause coverage and materials risk. Evidence from 2024 and 2025 reports confirms that 100% of suppliers have signed the 'Transparent Procurement Agreement' and the 'Code of Conduct for Responsible Mineral Suppliers.'
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The company utilizes five authoritative resources (e.g., Heidelberg Conflict Barometer, UN Sanctions List) to assess Conflict-Affected and High-Risk Areas (CAHRAs), reporting 0% spend on high-risk minerals without mitigation.
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**Labour & Traceability:** Tianqi reports zero substantiated incidents of child or forced labour across its domestic operations and Australian joint venture (TLEA) over the last three years.
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While general lithium production in China and Zimbabwe is flagged by the U.S. Department of State for forced/child labour risks, no specific violations were linked to Tianqi in the provided evidence.
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Traceability coverage is strong, with a full-process system mapping raw materials to origin, including real-time dashboards.
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**Audits & Remediation:** Audit frequency is tiered; while the company conducts annual audits for the mineral supply chain, on-site audits for Tier 1 strategic suppliers are conducted at least once every two to five years depending on the subsidiary.
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Remediation speed is tiered, as the company's protocol allows for a six-month (approx. 180 days) window to evaluate the effectiveness of risk management plans before suspending non-compliant suppliers.
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Although domestic bases reported 100% 'timely' rectification, the formal policy window for supply chain corrective actions aligns with the 180-day tier.
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Honest & Fair Business
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As a large-scale industrial chemical manufacturer, the company's core business does not inherently advance or harm honest business practices; its score is dependent on its specific regulatory record, transparency, and governance behavior rather than the nature of lithium production itself. Tianqi Lithium demonstrates a strong commitment to business ethics and transparency, supported by detailed disclosures in its 2023 and 2024 Sustainability Reports.
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Regulatory & Financial Integrity: The company reported zero ethics-related regulatory fines, zero corruption-related lawsuits, and zero financial restatements over the reporting periods.
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It maintains a clean record with auditors (KPMG) and has received external recognition for integrity promotion.
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Governance & Audit: Audit coverage is exemplary, with 100% of operational locations covered by both internal and third-party business ethics audits.
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However, the board independence stands at 50% (4 out of 8 directors are independent non-executive directors), which, while compliant with many listing rules, places it in a lower tier for conflict-free board composition due to the high ratio of non-independent members.
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Policies & Verification: The company has a robust anti-corruption framework ('1+2+N' matrix) and a whistleblower policy with multiple reporting channels (hotline, WeChat, email).
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It demonstrates effectiveness through 100% employee and supplier commitment signatures and 100% training participation.
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While it reports a 100% handling rate for the 5 customer complaints received in 2024, specific median resolution times in days were not provided to score that KPI.
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Third-Party Assurance: The company’s sustainability reports undergo independent third-party verification by TÜV SÜD and Beijing Zhongcai Green Index in accordance with ISAE 3000, covering a comprehensive range of ethical and ESG claims.
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Kind to Animals
-10
As a large-scale mining and chemical processing company, Tianqi Lithium's operations involve significant land use and habitat disruption, which inherently poses risks to local wildlife and biodiversity. Tianqi Lithium’s operations primarily involve lithium mining and chemical processing, which do not utilize animal-derived ingredients or involve animal husbandry, resulting in several N/A (0) scores.
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Regarding animal testing, the company produces industrial raw materials rather than consumer goods.
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While it lacks a formal 'cruelty-free' certification, it reports no in-house or contracted animal testing operations, and its R&D is focused strictly on mineral and chemical engineering (e.g., lithium extraction and battery recycling).
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A tier of 10 is assigned for animal testing policy as the company operates under a de facto no-testing model due to its industrial scope, though it lacks a specific global ban policy.
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For wildlife conservation, the company receives a score of -40.
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Evidence from the Greenbushes Lithium Mine expansion (Talison) indicates the project involves the clearing of up to 350 hectares of native vegetation, which serves as habitat for several conservation-significant and endangered species, including the Carnaby’s Black Cockatoo, Western Ringtail Possum, and Numbat.
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The project involves the removal of approximately 30 nesting hollows and 2,100 potential breeding trees.
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While the company has documented mitigation measures—such as fauna monitoring, noise/light pollution controls, and a commitment to a 1,570-hectare offset area—the direct loss of critical habitat for multiple endangered species is a significant negative impact.
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The company also participates in biodiversity initiatives like the 'Life Plan' and the Kunming-Montreal Global Biodiversity Framework proposal, demonstrating strategic engagement alongside its operational impacts.
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No War, No Weapons
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As a producer of lithium for batteries, the company's core business is focused on the energy transition and consumer electronics, which is neutral regarding the arms industry and military conflict. Tianqi Lithium demonstrates a strong commitment to avoiding conflict-related activities, primarily through its rigorous management of the lithium supply chain.
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The company explicitly prohibits the mining, trading, or processing of minerals from Conflict-Affected and High-Risk Areas (CAHRAs).
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In 2024, it reported 0% procurement from such zones and 100% certification of its supply chain as conflict-free, supported by annual risk identification using the Heidelberg Conflict Barometer and UN Human Development Index.
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Governance is robust, with the Board's ESG and Sustainable Development Committee overseeing these policies.
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The company has codified ethical 'red lines' that prohibit support for non-state armed groups, war crimes, and crimes against humanity.
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It maintains a 'Supplier Blacklist' and a divestment policy that mandates the suspension or termination of cooperation within six months if conflict-related risk management is ineffective.
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While the company reports zero revenue from arms contracts, its products are noted as having dual-use potential.
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Specifically, the company acknowledges that lithium is a raw material for the nuclear industry and that tantalum (a byproduct) can be used in military production.
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While it uses AI for industrial safety, no specific military safeguards for AI were mentioned.
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On peacebuilding, the company invests in community welfare (approx. $465,000 USD in 2024), though these are general social investments rather than dedicated disarmament initiatives.
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It is a member of the UN Global Compact, aligning its operations with international human rights standards.
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Automated export controls and a 100% signing rate for its Transparent Procurement Agreement further mitigate risks of diversion to sanctioned regimes.
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Planet-Friendly Business
0
As a primary producer of lithium, the company provides the essential raw materials required for the global transition to electric vehicles and renewable energy storage, which is a core component of climate action. Tianqi Lithium demonstrates a structured approach to environmental stewardship, characterized by comprehensive reporting and specific reduction targets. The company has committed to net-zero emissions by 2050
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and has established interim 2030 targets to reduce Scope 1, 2, and 3 emissions by 50% compared to a 2021 baseline.
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In 2024, it systematically conducted its first Scope 3 inventory across seven categories.
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While the company has set aggressive internal targets, there is no evidence of SBTi-validated science-based targets.
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Operationally, Tianqi has achieved significant milestones in resource management. It reported a water recycling rate of 97.55% in 2024
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and achieved zero process wastewater discharge at several production bases.
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Its freshwater withdrawal intensity is approximately 245 m³ per $1M revenue, placing it in a high-efficiency tier. Renewable energy usage reached 43.22% in 2024,
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though more recent 2025 data suggests a lower share of 22.47% for total electricity, leading to a balanced tier selection.
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The company also conducts annual lifecycle assessments for its core lithium products.
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In terms of governance and transparency, Tianqi aligns its disclosures with TCFD and IFRS S2 standards, integrating climate risk into its enterprise risk management.
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It performs quantitative climate scenario analysis, including financial quantification of risks (VaR).
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The company maintains an exemplary compliance record with zero major environmental violations reported across multiple years.
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Biodiversity efforts are evidenced by third-party assessments (IRMA) at its Australian operations
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and a commitment to becoming 'Net Nature Positive' by 2050.
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Supply chain transparency is high, with 100% of suppliers audited against environmental standards
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and a full Scope 3 inventory disclosed.
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Respect for Cultures & Communities
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As a major lithium extractor, the company's operations in regions like Chile (brine) and Australia (hard-rock) inherently impact local and indigenous communities, particularly regarding water rights and land usage, which frequently leads to community friction and environmental burden. Tianqi Lithium’s ethical performance is characterized by a significant gap between its corporate policies and the documented impacts of its major operations and investments, particularly through its stake in SQM and its Greenbushes joint venture (Talison). Regarding water and indigenous rights, evidence indicates severe conflicts.
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In Chile, SQM (where Tianqi holds a ~22% stake) was found by environmental courts to have over-extracted lithium-rich brine in the Atacama Desert, leading to the desiccation of wetlands and harming Lickanantay ancestral lands.
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Reports indicate SQM bypassed Free, Prior, and Informed Consent (FPIC) for major contracts and environmental procedures.
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In Australia, the Greenbushes mine expansion faced significant community opposition, with 95% of public comments demanding action due to toxic dust, noise, and habitat loss.
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Residents reported health issues and sleep disruption, leading the Western Australia EPA to mandate a full environmental review.
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While the company reports zero human rights grievances in its sustainability reports, external evidence contradicts this, showing active litigation and community complaints regarding water scarcity and health.
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On the positive side, the company has formal benefit-sharing agreements, such as SQM’s $14 million contribution to Atacameño communities in 2019 and Talison’s AUD 2.25 million infrastructure funding in Australia.
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Local employment efforts are documented, with 240 indigenous workers at SQM and youth technical training programs in Kwinana.
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Additionally, Talison has committed to an independent IRMA assessment, and the company maintains a Reconciliation Action Plan (RAP) in Australia.
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However, these proactive measures are currently overshadowed by substantiated environmental harms and ongoing disputes over resource extraction in sensitive indigenous territories.
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Zero Waste & Sustainable Products
-10
While lithium is essential for the energy transition, the extraction and chemical processing of minerals are resource-intensive and generate significant waste (tailings and chemical byproducts), placing the company in a neutral position regarding circular economy and waste minimization principles. Tianqi Lithium demonstrates a robust commitment to waste management and circular economy principles, evidenced by its 'Zero-Waste Corporate' vision and specific industrial recycling achievements.
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Key evidence includes the establishment of specialized subsidiaries like Yanting New Lithium to recycle lithium slag into high-value aluminosilicate powder, with an annual capacity of 30,000 tons.
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The company has also developed a fourth-generation battery recovery process achieving a lithium leaching rate of >97% and a recycling rate of >90%.
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In terms of wastewater, multiple production bases (Shehong, Tongliang, Anju) achieved zero process wastewater discharge, contributing to a company-wide water recycling rate of 97.55% in 2024.
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Hazardous waste management is handled through a three-level responsibility system and online monitoring, achieving 100% compliant disposal.
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The company reported zero waste disposal violations or environmental penalties over the 2023-2025 reporting periods.
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Waste audits are conducted at least annually for all facilities, with some bases utilizing real-time online monitoring for hazardous waste.
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Supplier requirements are comprehensive, with 100% of new suppliers audited against environmental standards and 210 unqualified suppliers eliminated in 2023.
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Customer and public education are facilitated through the 'Li Science Museum' and 'Lithium Classroom' programs, which specifically address recycling and the circular economy.
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While the company has ambitious company-wide targets (such as 100% compliant disposal and specific water recycling goals), it lacks a quantitative 'waste diversion rate' for all solid waste streams, as lithium slag remains a high-volume byproduct (approx. 470,000+ tons annually) currently undergoing a phased transition to full resource utilization.
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