Charting the Pathway Towards Excellence Charting the Pathway Towards Excellence Press Metal Aluminium Holdings Berhad 34 35 Integrated Annual Report 2023 Managing Our Risks and Opportunities Effectively Product Quality and Manufacturing Efficiency Risks Product quality deficiencies resulting from inadequate quality control or planning failures can lead to defects, delivery delays, and customer dissatisfaction. Additionally, system and technology malfunctions may hinder production, reduce productivity and operational efficiency, potentially impact financial performance and stakeholder trust. Opportunities • Accelerating digital transformation and innovation, and optimising our supply chain, by investing in advanced technologies. Link to Capitals MC HC IC SRC Link to Material Matter M5 M6 OPERATIONAL Economic and Financial Risks The economic and financial risks may create potential uncertainties surrounding the financial performance, profitability, and overall financial stability. These risks including liquidity risk, could result in increased borrowing expenses. In addition, investment risks may occur during the pursuit of acquisitions or ventures, wherein inadequate valuation or insufficient due diligence on economic, environmental, social, and governance factors may pose adverse operational and financial outcomes. FINANCIAL Opportunities • Preserving our strong financial position and maintaining a positive credit rating by adopting strategic cost management and prudent financial management practices. • Capitalising on new investment opportunities and markets through diversification of investments and financial. Link to Material Matter M1 M3 M7 Link to Capitals FC MC FUELLING GROWTH THROUGH OUR STRATEGIC PRIORITY AREAS At Press Metal, our strategic priorities serve as the cornerstone of our organisational strategy, guiding our efforts and fostering alignment across all levels. These strategic priorities reinforce our commitment to excellence and provides clear framework for performance measurement, via our short, medium and long term targets. By collectively advancing along this pathway, we aim to strengthen our organisation’s confidence and trust, positioning us for sustained success in an ever-evolving business landscape. Prioritising structural measures to reduce our operational GHG emissions, thereby mitigating climate change and minimising our environmental impact. Aims • Reducing our GHG emissions intensity (for Scope 1 and Scope 2) to achieve our emissions reduction targets. • Monitoring and reducing our Scope 3 GHG emissions through tracking and mitigating GHG emissions from raw materials, transportation, manufacturing and other relevant activities. Impacted Capitals FC IC NC MC HC Going Forward • Promoting circular economy. • Investing in energy-efficient technologies and renewable energy sources. • Adopting process improvements to reduce energy consumption. • Exploring CCU projects. • Collaborating with suppliers and partners for capacity building and GHG emissions data collection. OPERATIONAL GHG EMISSION EFFICIENCY Strengthening our suppliers with ESG awareness, helps us build a resilient supply chain. Aims • Implementing long-term agreements to secure access to key raw materials. • Sustaining relationships with suppliers who consistently received good ratings evaluated based on factors including on-time delivery, quality, packaging, services and pricing. • Maintaining a pool of suppliers that adhere to good sustainability practices, using a scoring system to assess factors related to ESG aspects. Impacted Capitals FC NC Going Forward • Periodically assessing our suppliers’ capabilities and investing in capacity building initiatives. • Conducting supply chain risk assessments to identify potential threats and implement mitigation measures to prevent disruptions. SRC SUPPLY CHAIN CONTINUITY
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