Delivering Sustainable Value For Our Stakeholders Delivering Sustainable Value For Our Stakeholders Press Metal Aluminium Holdings Berhad 128 129 Integrated Annual Report 2023 Type of Transition Risk Category Potential Risks Potential Opportunities Reputation Litigations, fines and noncompliance • Increased delays and risk of project refusals due to non-compliance with environmental regulations. • Heightened expenses incurred in settling litigation cases and fines. • Enhancing the preparedness of business operations to meet climaterelated regulations and expectations. Negative investors and public perception • Potential reputational damage • Delayed regulatory approvals on expansion plans. • Branding the Group in a positive manner by leveraging our climate change efforts. Social Talent retention and attraction • Increased costs associated with recruitment and branding efforts to pivot our brand as a contributor towards climate action. • Heightened expectation to meet sustainability standards by potential and existing talents. • Elevating climate-related awareness and conducting knowledge-sharing sessions to drive collective effort on climate change across our workforce. Social changes arising from climate change • Risk of disruptions to operations in the event of local disputes and conflicts, leading to loss of revenue and delays. • Shift towards low-carbon lifestyles amongst consumers, creating indirect pressure for companies to adapt. • Encouraging greater employee contribution and participation by increasing awareness on climate change. Physical Risk Physical risks refer to the direct and tangible impacts of climate change on organisations. Type of Physical Risk Potential Risks Potential Opportunities Acute (such as the increased severity of extreme weather events like cyclones and floods) • Delays and disruptions to logistics and materials sourcing. • Increased cost of raw materials. • Physical asset damage. • Increased disruptions leading to higher costs, operational interruptions and delivery delays. • Improving business resiliency and adaptability through the implementation of the Business Continuity Plan (“BCP”). Chronic (including rising temperatures and sea levels, changes in precipitation patterns and extreme variability in weather patterns) • Higher insurance premiums or limited availability of insurance plans. • Heightened maintenance costs and increased manpower and resources required to implement mitigation plans. • Increased risk to employees’ health. • Reducing dependency on primary raw material sources by diversifying into highquality secondary aluminium. Caring for the Planet Caring for the Planet HOW WE PERFORMED IN 2023 Our GHG emissions Scope 1, 2 and 3 are calculated using the IAI’s Aluminium Sector GHG Protocol, with our methodologies adhering to the IPCC Guidelines for National GHG Inventories. Accordingly, we convert all GHG emissions to CO2e using prescribed factors from the GHG Protocol and the IPCC Sixth Assessment Report (“AR6”). For Scope 3 emissions, we have implemented a comprehensive approach encompassing the average-data, spend-based, distance-based and supplier-specific methods. This multifaceted approach is designed to enhance the accuracy of our reporting efforts. Press Metal has adopted the “operational control” approach for its GHG emissions calculation, which accounts for 100% of GHG emissions from all Press Metal’s manufacturing operations over which have operational control; generated from on-site manufacturing processes in midstream (PMBtu, PMS, PMAR) and downstream (PMBA, PMI, PMIT) entities. Notes: 1. Whenever feasible, the Group adopts a supplier-specific emission factor for Scope 2 emissions to ensure the consistency of the calculation methodology for our suppliers to allow us to take credit for green electricity purchases in reducing Scope 2 emissions. Otherwise, location-based approach will be used. 2. The Group reports and discloses its Scope 3 emissions based on the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard and the Technical Guidance for Calculating Scope 3 Emissions. Eleven (11) out of fifteen (15) categories covering upstream and downstream are included in the calculation. 3. The figures for Scope 3 GHG emissions are estimated based on the abovementioned method and have not yet undergone independent assurance. GHG Emissions Data 2021 2022 2023 Total direct and indirect GHG emissions (Scope 1, 2 and 3) (kilotonnes CO2e) 12,094.5 13,037.7 11,806.7 Total direct GHG emissions (Scope 1) (kilotonnes CO2e) 2,147.0 2,220.5 2,171.5 Total indirect GHG emissions (Scope 2) (kilotonnes CO2e) 2,651.1 2,978.4 2,121.7 Other indirect GHG emissions (Scope 3) (kilotonnes CO2e) 7,296.2 7,838.5 7,513.4 Notes: 1. Values have been restated for FYE2202 and FYE2021 to reflect the GHG calculation methodology enhancement in accordance with the update of Global Warming Potential (“GWP”) of GHG Protocol based on IPCC AR6. 2. Scope 1 and 2 GHG emissions are aggregated data from our midstream (PMBtu, PMS, PMAR) and downstream (PMBA, PMI, PMIT) facilities while Scope 3 GHG emissions covers only our midstream (PMBtu, PMS, PMAR) facilities. 3. Scope 1 includes direct GHG emissions from facilities owned or controlled, and includes fuel use, anode and reductant use, and process GHG emissions. 4. Scope 2 includes indirect GHG emissions from purchased or acquired electricity from the grid. 5. PMBtu and PMS Emission Factors: Based on the Residual Mix Emission Factor published by Sarawak Energy Berhad Annual Report 2021. 6. PMAR and PMBA Emssion Factors: Based on the Grid Emission Factor published by Tenaga Nasional Berhad Annual Report 2022. 7. PMI and PMIT Emission Factors: Based on the national factor of China in FYE2022. In 2023, our GHG emissions intensity (Scope 1 and Scope 2) was recorded at 3.3 tCO2e/ tonne of aluminium produced, a decrease of 17.8% compared to FYE2022, mainly due to the expansion in renewable energy sourcing and generation as well as operational efficiency improvements and enhancements. GHG Emissions Intensity Data* 2021 2022 2023 Total direct and indirect GHG emissions intensity (Scope 1 & 2) (tCO2e/ tonne of aluminium)** 4.2 4.1 3.3 Total direct GHG emissions intensity (Scope 1) (tCO2e/ tonne of aluminium) 1.9 1.7 1.7 Total indirect GHG emissions intensity (Scope 2) (tCO2e/ tonne of aluminium)** 2.3 2.3 1.6 Notes: 1. Aggregated data from our midstream (PMBtu, PMS, PMAR) and downstream (PMBA, PMI, PMIT) facilities. 2. Scope 1 includes direct GHG emissions from facilities owned or controlled, and includes fuel use, anode and reductant use, and process GHG emissions. 3. Scope 2 includes indirect GHG emissions from purchased or acquired electricity from the grid. * Values have been restated for FYE2021 and FYE2022 to reflect the GHG calculation methodology enhancement in accordance with the update of GWP of GHG Protocol based on IPCC AR6. ** Values have been restated for FYE2022 and FYE2021 to reflect the latest update of Scope 2 emissions factor. Whenever feasible, the Group adopts a supplierspecific emission factor to ensure the consistency of the calculation methodology for our suppliers. Otherwise, location-based approach will be used.
RkJQdWJsaXNoZXIy NDgzMzc=