Delivering Sustainable Value For Our Stakeholders Delivering Sustainable Value For Our Stakeholders Press Metal Aluminium Holdings Berhad 124 125 Integrated Annual Report 2023 Caring for the Planet Short-Term Strategy • Introduce traceability technology to trace our products and their inputs. • Identify GHG reduction opportunities from life cycle assessment (“LCA”) hotspot analysis. Pillar 3: Low Carbon Product Progress • Conducted LCAs* to evaluate the environmental impacts of our aluminium products manufactured in PMBtu**, PMS and PMI, in accordance with the ISO 14040:2006 Environmental Management - Life Cycle Assessment standard, based on cradle-to-gate boundaries. • Additionally, PMAR is currently conducting LCA, which is set to be completed in 2024. • Introduced low-carbon aluminium products, with carbon footprint verified by third party. • Performed quarterly Product Carbon Footprint (“PCF”) calculations for our primary aluminium products. This performance was independently verified in accordance with ISO 14064-3:2019 and with reference to ISO 14067:2018 standards. Long-Term Strategy • Identify strategic partnerships. Short-Term Strategy • Map Scope 3 GHG emissions across our value chain. Pillar 4: Reducing Carbon Footprint Across Value Chain Progress • Calculated Scope 3 emissions for our midstream entities based on eleven (11) categories. • Established aluminium buyback programmes in collaboration with customers and business partners. • Continuous research on the feasibility of expanding our aluminium scrap remelting capacity. • Entered into a Memorandum of Understanding (“MOU”) with Xi’an Jiaotong University (“XJTU”) for CCU research. A total grant of RMB12.0 million was contributed. • Identified alumina supply as a significant emissions hotspot and undertook efforts to accurately calculate our aluminium products’ PCF. • Conducted an LCA for an alumina supplier, PT Bintan, to ascertain the embedded carbon footprint of their production processes. • Press Metal, Sumitomo and Nandina REM signed an MOU to support Nandian REMs in scaling their world’s first Aviation-to-Electric Vehicle Circular Economy Mode, which advance the use of low-carbon circular aviation materials in the automotive industry. Long-Term Strategy • Integrate circular economy principles into our strategy. • Develop circular product designs and production processes. • Identify hotspots, risks and opportunities across our value chain. Notes: * LCA is available upon request. ** PMBtu's LCA results are prepared in accordance with ISO 14025:2005 and EN 15804 standards and verified by an independent third-party consultant. The LCA facilitates transparent communication with our customers on emissions reduction strategies by providing a quantitative basis for comparing products and services. Caring for the Planet Climate Change Enablers The four (4) pillars of our Climate Change Strategy are supported by four (4) Climate Change Enablers which equip us to achieve our GHG reduction targets and, ultimately, carbon neutrality by 2050. Climate Change Enabler In FYE2023, Press Metal has spent a total of RM24.8 million on climate-related initiatives. Moving forward, we have earmarked a budget of RM17.0 million for 2024. Operational Processes Enhancement for GHG Reduction In our continuous efforts to enhance sustainability and operational efficiency across our operating facilities, several initiatives have been conducted to reduce GHG emissions and enhance energy efficiency. These include, but are not limited to: • Expanding the use of rooftop solar panels in PMI, bringing our total solar energy sourcing capacity to 13.5MW • Deployment of electric forklifts in PMBtu and PMS and electrical car in PMI • Utilising a 35-day cycle for anode replacement – decreasing voltage consumption in the process • Application of carbon anode coating to control oxidation arising from airburn • Enhancement of pot initiation procedure to reduce the duration of the anode effect during the pot startup process • Enhancement of alumina filtering process through the implementation of double filtering system • Secured alumina feeding process to prevent solidification and blockage • Monitored alumina feeding process to ensure alumina quality and prevent under or overfeeding, thus reducing the occurrence of the anode effect • Upgraded pot controller system with intelligent crust breaker to reduce errors and improve breaking and feeding mechanisms Internal Climate-Related Capacity Building • Organised 91 climate-related trainings, covering topics including “Overview of ESG and Climate Change”, “Introduction to ESG Risk Integration” and “GHG Management”, energy management, etc., to enhance our employees’ knowledge and build internal capacity. • Conducted climate-related training, amounted to a total investment of approximately RM97,000 that resulted in over 14,400 employee training hours. Internal Carbon Pricing Mechanism • Established an internal carbon price (“ICP”) based on 11 projects using shadow price, which is used to assess the climate impacts associated with a project. We intend to incorporate the shadow price in each of our investments and evaluate the risks as well as conduct strategic planning. • Utilised the ICP to assess the marginal abatement cost of each project. We opted for an initial ICP of RM34.25/tCO2e and plan to annually review and re-evaluate this pricing based on the viability of new projects. This approach aims to influence decision-making and business operations to meet our GHG targets. Integrated Climate Reporting System • Implemented a centralised climate reporting system to collect GHG emissions data from all our subsidiaries, replacing the previous manual data collection channel to ensure data integrity, enable timely data monitoring and streamline data analysis and reporting processes. • Subscribed to the PCF Analysis System to enable the traceability of product emissions. Climate Governance • Became a supporter of TCFD and committed to working towards the implementation of TCFD recommendations within our business. Activities in FYE2023
RkJQdWJsaXNoZXIy NDgzMzc=