Delivering Sustainable Value For Our Stakeholders Delivering Sustainable Value For Our Stakeholders Press Metal Aluminium Holdings Berhad 98 99 Integrated Annual Report 2023 SUSTAINABILITY TARGETS VS PERFORMANCE Targets Target Year Maintain zero (0) workplace fatalities. Ongoing Reduce our LTIFR to below 2.5. 2024 Performance in 2023 • Recorded zero (0) workplace fatalities. • 17.4% decrease in LTIFR compared to FYE2022, reaching 2.7. Strategic Plan • Drive the digitalisation of our EHS processes. • Implement a three (3)-goal strategic plan for Sarawak operations (i.e., Go Safe, Go Green and Go Clean). Occupational Health and Safety Strategic Plan • Revise and expand social indicators beyond gender diversity by including employee turnover rate, employee training hours, contributions to local communities and employee satisfaction rate. Targets Target Year Increase participation of women in managerial roles to 30%. Ongoing Increase total female workforce to 20%. Ongoing Performance in 2023 • Recorded a 3.8% point increase of women in managerial roles from FYE2022, reaching 30.5%. • Women comprise 13.3% of our total workforce. Diversity and Inclusion Strategic Plan • Actively monitor our water withdrawal and consumption. • Enhance our rainwater harvesting systems at PMBtu, PMS and PMAR. Targets Target Year Reduce our water withdrawal intensity by 5% from the 2016 baseline. 2023 Reduce our water withdrawal intensity by 10% from the 2016 baseline. 2030 Performance in 2023 • Successfully met our 2030 target, reducing our water withdrawal intensity by 29.7%. compared to the 2016 baseline, reaching 2.2 m3/tonne of aluminium. Water Targets Target Year Achieve a 95% waste diversion rate. 2026 Achieve zero (0) landfill waste. 2030 Performance in 2023 • Increased our waste diversion rate by 3.0% point from FYE2022, reaching 93.2%. Strategic Plan • Embark on circular economy strategy planning. • Study alternative methods for SPL management. Waste Targets Target Year Reduction of GHG emissions intensity (Scope 1 and Scope 2) by 15% from the 2020 baseline. 2025 Reduction of GHG emissions intensity (Scope 1 and Scope 2) by 30% from the 2020 baseline. 2030 Achieve carbon neutrality. 2050 Performance in 2023 • Reduced our Scope 1 and Scope 2 GHG emissions intensity by 12.2% from our 2020 baseline, reaching 3.3 tCO2e/tAl. Strategic Plan • Transition to renewable energy at our smelters. • Enhance operational efficiency through technological advancements. • Promote circular economy principles. • Promote Supplier Management Programme to drive responsible practices across our supply chain. • Invest in our project and internal capacity enhancement initiatives. Climate Change UPHOLDING GOOD GOVERNANCE AND ECONOMIC RESILIENCE OUR APPROACH Our approach to economic performance centres on maintaining our financial strength while committing to sustainability and responsible growth. To this end, we vigilantly monitor market dynamics, supply and demand trends, pricing shifts and technological advancements to anticipate and adapt to these external influences. We practice prudent financial management to maintain our robust balance sheet and healthy cash flow, thereby enabling long-term financial resilience. Operational efficiency is another fundamental aspect of our approach, achieved through streamlined manufacturing, efficient supply chain management and judicious financial decision-making. Our Board meticulously deliberates on our economic performance quarterly, and through this rigorous monitoring framework, our economic goals are aligned with our strategic priorities, promoting accountability throughout the organisation. Continuous improvement is also integral to our operations as we strive to enhance efficiency and cost-effectiveness while evaluating investments that align with our strategic objectives. Ensuring Ethical Tax Governance In FYE2022, we established a comprehensive Tax Policy, outlining clear guidelines for our tax practices to ensure accurate and compliant reporting in accordance with relevant laws and regulations. Oversight from the Board with support from the AC ensures strict adherence to this policy, reflecting our commitment to ethical and transparent tax governance. Recognising the importance of tax contributions to public finances and national development programmes across our jurisdictions, we conduct our tax affairs with integrity and refrain from engaging in tax structures lacking commercial substance or utilising offshore secrecy jurisdictions for tax avoidance purposes. Additionally, all our tax payments are aligned with revenue generated within the respective jurisdictions, in compliance with applicable laws. Meanwhile, risks associated with tax matters are managed diligently, with professional advice sought from competent local third-party advisors when necessary to address uncertainties in tax law interpretation. ECONOMIC PERFORMANCE GRI 3-3, GRI 201-1, GRI 201-2, GRI 201-4, GRI 207-1, GRI 207-2 M1 WHY IT MATTERS Economic performance is not merely a measure of financial success; it reflects business resilience, adaptability and sustainability in the face of evolving challenges. Malaysia’s gross domestic product grew by around 4% in 2023, driven by strong domestic consumption, inbound tourism recovery and sustained wage and employment growth. However, elevated trade tensions and other macroeconomic factors posed challenges to economic growth. Understanding this nexus, set against the backdrop of a dynamic global economy where factors like domestic consumption, inflation trends and industry outlooks interplay with climate-related risks and regulatory developments, is paramount. By ensuring that our strategic priorities and risk mitigation plans are geared towards securing long-term financial resilience and sustainability, we equip ourselves to withstand external challenges and uncertainties while also preserving investor confidence. UN SDGs Capitals FC
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