Delivering Sustainable Value For Our Stakeholders Delivering Sustainable Value For Our Stakeholders Press Metal Aluminium Holdings Berhad 122 123 Integrated Annual Report 2023 Caring for the Planet Setting Emissions Reduction Targets Underscoring our commitment to addressing climate change, we have set the following GHG emissions reduction targets: • Reducing our GHG emissions intensity (Scope 1 and Scope 2) by 15% by 2025, measured against our 2020 baseline • Reducing our GHG emissions intensity (Scope 1 and Scope 2) by 30% by 2030, measured against our 2020 baseline • Achieving carbon neutrality by 2050 Our targets have been depicted in the Greenhouse Gas Reduction Targets and the Carbon Neutral Policy. For more information on the policies, please visit our corporate website at https://www.pressmetal.com/investor-relations/corporate-governance.php. Additionally, our Baseline Recalculation Policy ensures the alignment of our GHG emissions reduction targets with the latest climate science and best practices. This policy mandates the updates of our baseline emissions when significant changes occur, including structural changes (e.g., mergers, acquisitions and divestments), changes or improvements in methodology of emission factors or discoveries of significant error and changes in organisational and/ or operational boundaries. Charting GHG Reduction Pathway In our aim to reduce our GHG emissions, we are charting a pathway that aligns with the 1.5-degree Celsius warming scenario as part of our overarching climate change strategy. The pathway is also being developed with reference to the International Aluminium Institute’s ("IAI") Aluminium Sector Greenhouse Gas Pathways to 2050 document and considers various factors including our localised context, energy resources, raw material availability, government policies, investment opportunities and the pace and cost of technology development and implementation. It is designed to guide the achievement of our GHG emissions reduction targets while safeguarding our ability to meet the growing demand for aluminium. Supporting this, we are actively exploring a number of approaches to reduce the GHG emissions footprint including the adoption of renewable energy sources, the promotion of circular economy and the enhancement of operational efficiencies through the deployment of advanced technologies, digitalisation and automation. As we move forward on our GHG reduction efforts, we are also cognisant of the various risks that climate change may pose to our business. As such, we have expressed commitment to support the TCFD by formally endorsing and implementing the principles outlined. We became the supporter of TCFD and aligned our climate disclosures to the four (4) recommendations outlined by the TCFD – Governance, Strategy, Risk Management, and Metrics and Targets – which elaborates our governance practices and current climate-related initiatives. Ensuring Robust Climate Governance Our Board plays a critical role in our climate action journey by overseeing the development of climate-related policies and strategies spearheaded by SC and SWGs. In line with its remit to steer our risk management strategies and ensure the creation of long-term value, the Board actively oversees the approach to manage climate-related risks and opportunities relevant to our business operations, and their associated impacts. Mr. Lim Hun Soon @ David Lim, one of our Independent Non-Executive Directors, has been entrusted with supervising the climate-related matters. The Board receives quarterly updates for sustainability matters, including climaterelated issues, while the RMC advises on climate-related risks. At the management level, the SC, chaired by our Group CEO, takes the lead on sustainability related matters including climate change. The SC’s key responsibilities including developing climate strategies and policies, conducting performance reviews and allocating resources for climate-related initiatives. In 2023, our Board assessed our financial exposure to climate-related risks and opportunities and aligned our disclosures to the TCFD recommendations. This alignment will empower improved risk management and strategic planning pertaining to climate change in the future. Read more of our sustainability governance at Our Approach to Sustainability section of this SR 2023. Caring for the Planet Short-Term Strategy • Align our climate action approach with the TCFD Framework. • Complete climate scenario analysis and climate modelling. Pillar 1: Strengthening Business Resiliency Over Climate Risk Progress • Adopted the “outside-in” approach as prescribed by TCFD, entailing the identification of climate change impacts on our business model. • Undertook climate risk assessments and evaluated the business impact of our climate risks through scenario analysis. • Integrated climate change adaptation actions into our climate strategy and incorporated climate risks into our business decision-making process. • Integrating climate risk assessment and adaptation planning into our risk management and business continuity planning. Long-Term Strategy • Mitigate and adapt to climate impacts. Short-Term Strategy • Review and align our GHG-related targets and metrics with reference to TCFD Framework. • Complete Scope 1 and 2 GHG emissions inventory. Pillar 2: Reducing Operational Carbon Footprint Progress • Purchased renewable energy certificates to increase our deployment of low-carbon energy, thus reducing overall GHG emissions. • Expanded our renewable energy capacity by investing RM2.6 million to install a 1,104.3kW rooftop solar panels and 162.3kW car park rooftop solar panels in PMI, bringing our total solar energy sourcing capacity to 13.5MW. • Purchased two (2) units of electric cars and converted 27 units of diesel forklifts to electric forklifts. • Identified operational efficiency improvement opportunities while consistently tracking our performance and initiatives against our KPIs. Long-Term Strategy • Implement a GHG abatement and offset programme. Integrating Climate Performance in Remuneration With the aim of driving positive climate action, Press Metal has incorporated GHG emissions intensity performance as one of the key metrics within our ESG Remuneration Framework. In particular, this entails directly linking the incentive component of compensation for our Group CEO, selected Key Senior Management, Key Operating Management personnel and Head of Group Sustainability to our climate action performance. Looking ahead, we plan to extend this mechanism to other employee groups, taking into consideration the variability of their compensation and level of accountability. OUR VALUE CREATION Integrating Our Climate Change Strategy and Roadmap In our effort to drive climate change actions, we have instituted the Climate Change Strategy and Roadmap which prioritise few key areas in building business resiliency and reducing our environmental impacts. Our Climate Change Strategy is built on four (4) key pillars, with short- and long-term strategies identified under each, as detailed below.
RkJQdWJsaXNoZXIy NDgzMzc=