Charting the Pathway Towards Excellence Charting the Pathway Towards Excellence Press Metal Aluminium Holdings Berhad 38 39 Integrated Annual Report 2023 OUR VALUE CREATION MODEL OUR INPUTS OUR MANAGEMENT APPROACH M14 M15 M16 M17 M18 Empowering Our People and Enriching Our Communities Upholding Good Governance and Economic Resilience M1 M2 M3 M4 M5 M6 M7 M8 Caring for the Planet M11 M9 M10 M12 M13 MATERIAL MATTERS OUR BUSINESS ACTIVITIES Read more of our sustainability approach to Material Matters in our SR 2023. UPSTREAM MIDSTREAM TRADING AND DISTRIBUTION DOWNSTREAM • Total asset value: RM15.4 billion • RM6.9 billion in shareholders’ fund Financial Capital FC • Six (6) Manufacturing plants Production Capacity (per annum) • Smelting capacity – 1.08 million MT • Extrusion capacity – 230,000 MT Manufactured Capital MC • RM50.6 million invested in sustainability efforts • 11 strategic improvement projects executed Intellectual Capital IC • Over 7,300 strong workforce • Approximately RM1.1 million investments in training and development Human Capital HC • 55.6 million GJ of energy consumed • Over 2.4 million m3 of water consumed • Approximately 16,400 GJ of solar energy generated • Approximately 21,800 tonnes of aluminium scraps buyback Natural Capital NC • Over RM6.3 million invested in community activities • Over 1,000 volunteers and 7,770 hours contributed to community programmes Social and Relationship Capital SRC • Climate Change and Sustainability Risks • Corporate Governance and Ethical Practices Risks • Talent Acquisition and Retention Capabilities Risks • Health and Safety at the Workplace Risks • Modern Slavery Risks • Information Security Risks • Supply Chain Security Risks • Economic and Financial Risks • Product Quality and Manufacturing Efficiency Risks • Operational GHG Emissions Efficiency • Supply Chain Continuity • Business Resiliency • Strategic Partnership • Human Capital Enhancement • Positive Societal Impact KEY RISKS STRATEGIC PRIORITY AREAS OUR VISION OUR MISSION Our Value Creation Model OUR OUTPUTS VALUE CREATED TRADE-OFFS AND INTERDEPENDENCIES Main aluminium products • High-grade primary aluminium ingots (P1020) • Value-added aluminium products (i.e., billets, alloy billets, alloy ingots and EC-grade aluminium wire rods) • Extrusion products • Produced high-quality aluminium ingots conforming to the High-Grade Primary Aluminium Contract by LME • Produced aluminium wire rods conforming to the specifications for Aluminium Electrical Conductor Grade Rods • Continued production of low-carbon products through the utilisation of renewable power sources • Attainment of Integrated Management System Certification (ISO 9001, ISO 45001 and ISO 14001) for our operational sites MC Our Manufactured Capital, including tools, machines, plants, infrastructure, and buildings, drives our production output. We utilise Financial Capital and Human Capital to enhance development, improving operational efficiency, production capacity, product quality, and cost reduction. * SOIP is a platform for our employees to contribute solutions, categorised into SiPro (long-term initiatives) and iPro (smaller, standalone solutions), aimed at improving our manufacturing processes • 11 SiPros implemented under our Sarawak Operations’ Improvement Programme (“SOIP”)* • 3 extrusion products obtained SCS Global Recycled Content certifications, demonstrating a minimum of 80% and 98% pre-consumer recycled aluminium alloy content • 38 patents • Zero (0) data breaches • Developing the Smelter Operation MES of the digital transformation project, focusing on increasing data interconnectivity and smart automation • Enhancement of manufacturing processes and production efficiencies • PMI selected as one of the Guangdong Provincial Engineering Technology R&D Centre, recognising PMI’s commitment to embracing digitalisation and intelligent transformation • Pursuit of various collaborations and strategic partnerships to improve R&D efforts IC Investing in our Intellectual Capital drives sustained innovation, boosts R&D capabilities, and enables adaptation to market changes. This enhances production efficiency, strengthens our Manufactured Capital, and reduces environmental impact through innovative technologies, preserving our Natural Capital. • 46.8 training hours per employee on average • 88.6% local senior management hired • 30.5% female managerial representation Group-wide • 17.4% reduction in LTIFR • 46 career/ executive programme graduates • Zero (0) human rights violations • Zero (0) workplace fatalities • Enhancement of workforce skills through training and development programmes • Provision of a conducive working environment • Continued to promote an inclusive employee culture that values diversity and equal opportunities HC Investing in our Human Capital to create an inclusive, productive, and sustainable workplace is crucial. Balancing investments in learning, development, and wellbeing enhances skills and productivity, leading to improved operational efficiencies. • 3.3 tCO2e/tonne of aluminium produced recorded for GHG emissions intensity 17.8% less than FYE2022 • 2.2 m3/tonne of aluminium produced recorded for water withdrawal intensity, 7.1% less than FYE2022 • Over 5,400 tCO2e in Scope 2 GHG emissions avoided due to solar energy usage • Over 203,000 tonnes of waste diverted from landfills • 8.1% recycled aluminium intensity • Efficient resource use across business activities, leveraging strategic partnerships to reduce product footprint • Promotion of circular economy practices through comprehensive life cycle assessments and post-consumer scrap recycling • Carbon footprint reduction through the adoption of environmental friendly technologies NC Promoting sustainable practices in our supply chain is essential for our decarbonisation journey. We invest in eco-friendly materials, energy-efficient technologies, and renewables to minimise our carbon footprint and preserve Natural Capital. • Community activities benefitting approximately 860,000 beneficiaries • 84.3% and 92.4% customer service scores received at our midstream and downstream operations • 141 volunteer activities participated by our employees • 42.3% of total suppliers’ expenditure spent on local suppliers • 5 suppliers benefited from ESG capacitybuilding training • Increased job opportunities for local communities through youth development programmes and collaboration with local universities • Establishment of a Supplier Management Programme to fortify supply chain resilience • Organised community-oriented programmes aimed at creating positive and sustained impacts on the well-being of surrounding communities SRC Building stakeholder relationships and investing in Social and Relationship Capital drive our corporate responsibility and sustainability. Through community programmes, leveraging Human and Financial Capital, we create direct and indirect economic value to the stakeholders in areas where we operate in. • RM13.8 billion in revenue • RM2.6 billion in EBITDA • Generated Profit after Tax: RM1.5 billion • Total Dividend Payout: RM576.8 million • 18.1% return on equity FC Financial capital is crucial to our business ecosystem, generating value for stakeholders. We strategically invest in Manufactured, Intellectual, and Human Capital to enhance financial performance and ensure sustained value creation for the Group and our stakeholders. OUR CORPORATE VALUES
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