Delivering Sustainable Value For Our Stakeholders Delivering Sustainable Value For Our Stakeholders Press Metal Aluminium Holdings Berhad 116 117 Integrated Annual Report 2023 Upholding Good Governance and Economic Resilience GOING FORWARD We will continue to embrace innovative solutions to drive continuous improvement and sustainability across our operations. Specifically, we plan to delve deeper into the automation of our processes, aiming to bolster operational efficiency and diminishing the need for routine manual labour, with several potential applications of automation set to be explored in near future. OUR APPROACH Establishing Board Oversight for Group-Wide Alignment We diligently oversee a broad spectrum of risks and potential impacts, including those associated with legislative or regulatory compliance, financial risks linked to investments or strategic initiatives, cybersecurity, data privacy threats and human resource concerns. At the Board level, this responsibility is entrusted to the RMC, which oversees the Group’s risk management framework, policies and implementation process. The RMC is assisted by the RMT in implementing and monitoring risk management initiatives across the Group, providing quarterly updates. The RMC also supervises the SC, focusing on information concerning sustainability matters and the Group’s ESG risks. Working closely with the SC, under the leadership of the Group CEO, the RMC plays a vital role in supervising our ESG and climate risks, ensuring a focused, disciplined approach while maintaining clarity in actions and accountability. Implementing an ERM Framework and Risk Management Policy In alignment with recognised risk management standards and best practices, our Enterprise Risk Management (“ERM”) Framework has been established, referencing the ISO 31000:2018 Risk management - Guidelines. Encompassing ESG, corporate, financial and operational risks, the framework assigns responsibility to designated risk owners who provide subsequent updates on the likelihood and impact of risks within their control areas through quarterly operational risk assessment. The Risk Management Policy provides guidance for the systematic identification, evaluation and treating risks, with a focus on enhancing risk management processes through continuous review and monitoring of activities. Mitigating Risks in Potential Mergers and Acquisitions Extending our risk management to mergers and acquisitions, we have incorporated an ESG Risk Assessment and Rating checklist into our evaluation process for potential strategic investments or acquisitions. As part of the due diligence process, we assess negative impacts related to environmental, health and safety, community, regulatory, financial, legal and other factors associated with our potential investments. This approach considers specific risks including those related to industry dynamics, regional and country-specific factors, funding sources, investors and the impact of climate change. By adopting this approach, we aim to ensure effective risk management throughout the evaluation of potential investments and acquisitions. Upholding Good Governance and Economic Resilience Read more about our approach in the Business Ethics and Corporate Governance section of this SR 2023. RISK MANAGEMENT GRI 3-3 M7 WHY IT MATTERS Having a robust and sound risk management system is crucial to address potential threats and uncertainties that could harm our financial resources, reputation, regulatory compliance and governance standards. Integrating effective enterprise risk management into business functions, projects and procedures enhances our ability to make well-informed decisions and comprehensively tackle risks across our operations. This approach aids us in mitigating potential pitfalls and positions us to seize emerging opportunities, thus enabling us to perpetuate the delivery of sustained, long-term value. UN SDGs Capitals FC Automated Clearing of Solidified Alumina Automating the process for clearing solidified alumina to improve consistency and quality. Potline Emergency Busbar System Enhancing electrolysis support system by adopting ancillary electrical connection for uninterrupted potline operation. Asymmetrical Anode for Anode Current Density Reduction Reducing anode current density to decrease energy intensity. Automated Weighbridge System Automating the weighing of molten aluminium crucibles to replace manual labour. Systems Deployed Purpose of Improvement Meanwhile, our SiPros focused on digitalisation, which aim to improve our manufacturing processes, including: E-Training System (Cast House Training Apps) Improving training traceability and efficiency by enhancing attendance recording, tracking trainers’ preparation time and centralising training materials. Interplant Digitalisation Project for Aluminium Purity Analysis (Data Conversion System) Enhancing aluminium purity analysis process through real-time data access, thus fostering better decision-making and collaboration. Digitalisation of Recruitment Process Expediting interview turnaround times, resulting in enhanced productivity and improved stakeholder satisfaction. Digitalisation and Monitoring System for 8D Reporting Driving increased organisational agility and enhanced cross-functional collaboration through the integration of digital solutions. Project Objectives
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