Delivering Sustainable Value For Our Stakeholders Delivering Sustainable Value For Our Stakeholders Press Metal Aluminium Holdings Berhad 130 131 Integrated Annual Report 2023 Caring for the Planet Scope 1 GHG Emissions by Category (Kilotonnes CO2e) 2021 2022 2023 CO2 1,560.9 1,644.0 1,674.2 CH4 0.1 0.2 0.2 N2O 1.0 1.4 1.2 PFCs 585.0 575.1 496.0 Total Scope 1 2,147.1 2,220.6 2,171.6 Notes: 1. Aggregated data from our midstream facilities (PMBtu, PMS, PMAR) and downstream facilities (PMI, PMIT, PMBA). 2. Scope 1 includes direct GHG emissions from facilities owned or controlled, and includes fuel use, anode and reductant use, and process GHG emissions. Category Emissions in Midstreams’ Value Chain1 (Kilotonnes CO2e) 20212 20222 2023 Upstream Scope 3 GHG Emissions Category 1: Purchased goods and services 3,902.4 3,767.9 3,502.4 Category 2: Capital goods 1.9 1.8 1.3 Category 3: Fuel- and energy-related activities 2,153.0 2,483.4 2,491.4 Category 4: Upstream transportation and distribution 290.1 304.5 186.8 Category 5: Waste generated in operations 41.5 53.2 60.9 Category 6: Business travel 0.01 0.1 2.7 Category 7: Employee commuting 5.4 8.9 19.2 Category 8: Upstream leased assets 0.3 0.4 0.6 Others: Contractors’ and suppliers’ commuting (air travel) 0.2 0.1 1.9 Downstream Scope 3 GHG Emissions Category 9: Downstream transportation and distribution3 NA3 NA3 NA3 Category 10: Processing of sold products 596.3 787.1 774.9 Category 11: Use of sold products3 NA3 NA3 NA3 Category 12: End-of-life treatment of sold products 3.3 4.4 4.3 Category 13: Downstream leased assets4 NR4 NR4 NR4 Category 14: Franchise4 NR4 NR4 NR4 Category 15: Investments 301.9 426.9 467.2 Notes: 1. Scope 3 GHG emissions are calculated for the midstream facilities at PMBtu, PMS and PMAR only. 2. Data disclosed differed from SR 2022 as enhanced disclosure methodology has been adopted for this reporting period. 3. Data unavailable. 4. Not relevant since Press Metal does not lease any downstream assets or have any franchised operations. GOING FORWARD The urgency of climate change calls for a concerted and collaborative approach spanning business, governments, communities and individuals. As a responsible and sustainable organisation, we are proactively stepping up to play a key role in driving this process forward. In striving to achieve carbon neutrality by 2050 in line with Malaysia’s net zero commitment, we will continue to be guided by our comprehensive Climate Change Strategy, which directs our efforts towards renewable energy adoption, energy efficiency technologies, the promotion of circular economy principles and the adoption of sustainable solutions to foster resilience against changing climate patterns and extreme weather events. At the same time, we will remain responsive to climate-related risks and attuned to the opportunities that the evolving climate change landscape presents for our business. By driving awareness and action on climate change across our workforce and working closely with partners across the private and public sectors, we will work to forge a powerful shared vision on climate action and introduce bold and inclusive strategies to drive positive change. Through this, we can help pave the way for a resilient, lower-carbon future that benefits both current and future generations. Caring for the Planet OUR APPROACH Driving Sustainable Energy Management Across the Business Our Energy Management Policy (“EnMP”), launched in FYE2023, provides a framework for the adoption of sustainable energy practices across our business. The EnMP encourages the exploration and implementation of new technologies and designs that minimise energy wastage, supports the integration of feasible and cost-effective renewable energy sources and prioritises the procurement of energy-efficient products and services. We have set clear objectives and regularly identify areas where our performance may be improved. In parallel, we strive to inculcate energy conservation awareness practices across our workforce. The EnMP is transparently communicated to all stakeholders of the Group. For more information on the policy, please visit our corporate website at https://www.pressmetal.com/investor-relations/corporate-governance.php. Utilising Renewable Energy Sources While aluminium smelting is energy-intensive, we maintain a lower carbon footprint compared to other smelters that rely on fossil fuel-based sources, such as coal or diesel-fired power plants, as our smelting facilities predominantly harness hydroelectricity. Meanwhile, our PMI and PMAR manufacturing facilities partially incorporate solar energy to further minimise their GHG emissions footprint. Improving Operational Efficiency In addition to continually identifying opportunities for the introduction of renewable energy sources, our strategic focus extends to enhancing the energy efficiency of our operations. To this end, we regularly undertake process improvement, equipment conversion and retrofitting initiatives while also carrying out regular operational adjustments across our operations. Our entities have set energy efficiency targets aligned with our EnMP requirements. PMI, for instance, aims to reduce energy consumption by 2% annually from 2021 to 2025. Additionally, our production departments at our smelting facilities have established individual energy performance indicators, benchmarked against our FYE2018 baseline. PMAR, meanwhile, has set to decrease its consumption of natural gas in the casting process to below 3.9 MMBtu per tonne of aluminium produced. OUR VALUE CREATION Recognising our pivotal role as a responsible producer, we have implemented comprehensive strategies to optimise efficiency, minimise consumption and transition towards renewable sources. In alignment with these initiatives, we actively engage in R&D projects focused on refining our operational processes to decrease GHG emissions and advance energy-saving efforts. ENERGY MANAGEMENT GRI 3-3, GRI 302-1, GRI 302-3, GRI 302-4 WHY IT MATTERS At Press Metal, we recognise the crucial role that energy plays in powering our operations. The production of aluminium is an inherently energy-intensive process that relies significantly on electricity, and it is therefore vital that we enhance our operational efficiency through energy conservation efforts whenever feasible. Doing so ensures alignment with our commitment to reduce our operational GHG emissions, enabling us to contribute to the global transition towards decarbonisation, and Malaysia’s target of achieving net-zero GHG emissions by 2050. UN SDGs Capitals MC IC NC Read more about our energy reduction and R&D endeavours in Climate Change and Sustainable Manufacturing sections of SR 2023.
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