Charting the Pathway Towards Excellence Charting the Pathway Towards Excellence Press Metal Aluminium Holdings Berhad 30 31 Integrated Annual Report 2023 Material Matters at Our Core M2 Business Ethics and Corporate Governance Economic Performance M3 Regulatory Compliance M5 Product Quality and Customer Satisfaction M4 Responsible Sourcing M6 Sustainable Manufacturing M7 Risk Management M8 Customer Data Privacy & Information Technology M9 Climate Change M10 Waste M11 Material Stewardship M12 Water and Effluents M13 Biodiversity M14 Occupational Health and Safety M15 Human Rights M17 Talent and Labour Management M16 Diversity and Inclusivity M18 Community Management HIGH PRIORITY MEDIUM PRIORITY LOW PRIORITY M1 MATERIALITY MATRIX Our Materiality Matrix for FYE2023 reflects the following changes to the importance of specific material matters in comparison to FYE2022: • Climate Change remained as our top material matter. This was due to the accelerating global climate action movement, which heavily influences the evaluations of stakeholders, and the increasing importance of climate-related risks, which may pose significant challenges to our business operations, such as in the sourcing of raw materials and products, as well as to the long-term growth, prosperity and economic success of nations. • Sustainable Manufacturing has been included within our top ten (10) material matters. The reason for this is the increasing focus on digitalisation and automation in the manufacturing process, with technological evolution now an imperative to meet industry requirements. • Talent and Labour Management has increased in priority. To this end, we will continue to channel efforts towards minimising the risk of high turnover rates while focusing on enhancing the well-being and welfare of our employees. The Board and Senior Management will continue to exercise oversight to address all of our material matters. Our approach here includes assessing the risks or potential impacts arising from such topics to value creation and, subsequently, developing effective strategies to minimise these risks and maximise positive impact. Significance of Press Metal’s Impact Low High Importance to Stakeholder Low High M2 M3 M5 M4 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M17 M16 M18 M1 Upholding Good Governance and Economic Resilience Caring for the Planet Empowering Our People and Enriching Our Communities MANAGING OUR RISKS AND OPPORTUNITIES EFFECTIVELY Press Metal is cognisant of the importance in implementing a robust and effective ERM framework and undertaking continuous monitoring of identified risks. Through effective risk mitigation measures and vigilant monitoring, we keep our potential threats under supervision and position ourselves to capitalise on value creation opportunities. This proactive approach fortifies our resilience and creates position for us to seize opportunities that arise, advancing sustainability for Press Metal and our stakeholders. Climate Change and Sustainability Risks Climate change presents environmental and business risks including weather pattern shifts, increased occurrences of flood, biodiversity loss, and supply chain disruptions. At Press Metal, sustainability is a priority, and we diligently evaluate these risks. As climate-related risks intensify, stakeholders emphasise the importance of reducing our carbon footprint to safeguard ecosystems and communities. The introduction of regulations like the National Energy Transition Roadmap brings added uncertainty to ESG standards and societal dynamics. ENVIRONMENT Opportunities • Exploring and leveraging on innovative products, services and business models that may aid businesses, communities and ecosystems in adapting to the effects of climate change, improving our operational efficiency and driving cost savings. • Fostering collaboration in multi-stakeholder initiatives with regulators, industry peers and non-governmental organisations with the intention of promoting effective action on climate change adaptation. • Enhancing our reputation through environmentally-conscious measures. Link to Capitals IC FC HC SRC Link to Material Matter M9 M10 M11 M12 M13 MC GOVERNANCE/ REPUTATIONAL Corporate Governance and Ethical Practices Risks Businesses are subject to various legal and compliance risks including bribery, corruption and violations of human rights or employment laws. Failure to adhere to applicable legal requirements or regulatory standards, often due to inadequate monitoring or ineffective contract management, can lead to fines or license revocation. Therefore, Press Metal emphasises on the implementation of sound governance practices and continued compliance to regulatory requirements or standard such as Section 17A of the Malaysian Anti-Corruption Commission (“MACC”) Act 2009, MCCG 2021 and Bursa Malaysia’s MMLR. It is imperative to have robust board oversight, implement effective internal controls and foster a culture of transparency and accountability throughout the organisation. Opportunities • Cultivating integrity, accountability and transparency by cascading comprehensive corporate governance practices across our organisation. • Safeguarding our credibility and reputation by maintaining robust and sound management systems. Link to Capitals FC HC SRC Link to Material Matter M2 M3 M4 M7
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