Delivering Sustainable Value For Our Stakeholders Delivering Sustainable Value For Our Stakeholders Press Metal Aluminium Holdings Berhad 140 141 Integrated Annual Report 2023 Caring for the Planet OUR APPROACH Setting Material Stewardship Standard Our approach to material stewardship encompasses responsible sourcing, waste reduction, recycling, material recovery, reuse and the prevention of unnecessary wastage through the implementation of the 5S Lean Manufacturing Principles. This starts at the beginning of the lifecycle, where we apply sustainable sourcing practices by procuring raw materials responsibly and in line with fair trade and environmentally conscious practices. During production, we undertake processes aimed at maximising output efficiency from our primary input materials – alumina and carbon anode – in aluminium smelting. As part of our efforts to extend the lifecycle of aluminium, we also collect pre- and post-consumer aluminium products – sourced both internally and externally – for reuse in our production processes. These responsible practices are enshrined in our Environmental Policy, which underscores a commitment to responsible resource management by maximising operational efficiency and minimising waste generation, and our Sustainability Policy, which promotes the use of renewable resources and strives to reduce the consumption of non-renewable and non-recyclable materials. OUR VALUE CREATION Repurchasing and Repurposing Aluminium Scraps Under our aluminium scrap buyback programme, we acquire both pre- and post-consumer aluminium scrap from the open market, our client and business partners. This entails collecting, sorting and subsequently remelting defective aluminium products and aluminium scraps, into our manufacturing processes. This approach extends the lifecycle of aluminium, aligning with our commitment to circular economy practices. Securing Certificates for Recycled Aluminium Products The increasing demand for sustainable materials in electronic goods has driven us to secure certifications for our products that utilise recycled aluminium as an input. In FYE2023, two (2) of our extrusion products were reassessed to extend the validity of their SCS Global Recycled Content certifications, the first guaranteeing a minimum of 80% pre-consumer recycled aluminium alloy content and the second guaranteeing 98% pre-consumer recycled aluminium alloy content. During the year, we also secured an additional SCS Recycled Content certification (for a minimum of 80% post-consumer and pre-consumer recycled material, combined) for our Aluminium Alloy Billet 6R01. Conducting Internal Dross Recovery Press Metal has set up internal dross recovery processes to reclaim aluminium content for reuse. Before being sent to external recovery facilities for further processing, the aluminium dross are processed internally through stirring process to extract aluminium for remelting. Caring for the Planet Recycled Aluminium Intensity Our recycled aluminium intensity stood at 8.1% in FYE2023, an increase of 0.6% point compared to FYE2022 which can be attributed to a rise in production output. Materials Converted to Products (Pre-, Post-Consumer Scraps and Raw Materials) In FYE2023, we converted 3,519,058.7 tonnes of materials, consisting solely of non-renewable materials, into products, reflecting a 3.0% decline compared to FYE2022. However, the year also saw a 1.8% increase in the overall volume of recycled materials utilised listed below. Category 2021 2022 2023 Renewable Materials (tonnes) NonRenewable Materials (tonnes) Renewable Materials (tonnes) NonRenewable Materials (tonnes) Renewable Materials (tonnes) NonRenewable Materials (tonnes) Total Materials Converted to Products 0.0 2,668,831.5 0.0 3,623,713.8 0.0 3,519,058.7 Total Material Input Used Category 2021 2022 2023 Total Non-Recycled Materials Used (tonnes) 2,431,583.6 3,265,232.7 3,154,246.9 Total Recycled Materials Used (tonnes) 237,248.0 358,481.1 364,811.8 Total Material Input Used (tonnes) 2,668,831.5 3,623,713.8 3,519,058.7 Recycled Material Input by Business Segment Category 2021 2022 2023 Midstream (%) 7.0 8.7 9.0 Downstream (%) 40.3 40.2 43.1 Group (%) 8.9 9.9 10.4 Recycled Aluminium Intensity (%) 10.2 7.5 8.1 2021 2022 2023 Notes: 1. Total Aluminium Scrap Buyback includes aggregated data from PMS, PMAR, PMBA and PMI. 2. Recycled Aluminium Intensity includes aggregated data from our midstream (PMBtu, PMS, PMAR) and downstream (PMBA, PMI, PMIT) facilities. 3. Data disclosed differed from SR 2022 as enhanced disclosure methodology has been adopted for this reporting period. * Value has been restated for the Total Aluminium Scrap Buybacks in FYE2022 to incorporate Q4 data. Total Aluminium Scrap Buybacks (kilotonnes)* 17.3 18.1 21.8 2021 2022 2023 Aluminium Scrap Buyback In FYE2023, we purchased approximately 21.8 kilotonnes of aluminium scrap, 20% more than FYE2022. HOW WE PERFORMED IN 2023 Aluminium Recycling MATERIAL STEWARDSHIP GRI 3-3, GRI 301-1, GRI 301-2 M11 WHY IT MATTERS Our production activities require the use of substantial amounts of raw materials, making responsible material stewardship a critical element within our overall environmental management approach. The potential impacts of inadequate material management are clear: sourcing materials responsibly and consuming them excessively cause increased pollution, resource depletion and GHG emissions. On the other hand, by comprehensively managing how materials are extracted, used and disposed of across their lifecycle, we can effectively balance the needs of our business with our duties as an environmentally responsible organisation. UN SDGs Capitals NC GOING FORWARD Moving forward, we will continue to advance sustainable material stewardship through the integration of innovative solutions including recycling technologies, efficient production processes and responsible sourcing practices across our operations. At the same time, we will continue to pursue relevant environmental certifications while maintaining continuous engagement with stakeholders on related efforts through reports and other mediums.
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