Press Metal Aluminium Holdings Berhad SECTION 5 • DELIVERING SUSTAINABLE VALUE FOR OUR STAKEHOLDERS 132 CARING FOR THE PLANET CLIMATE CHANGE GRI 2-22, GRI 2-23, GRI 2-24, GRI 2-25, GRI 3-3, GRI 302-2, GRI 305-1, GRI 305-2, GRI 305-3, GRI 305-4, GRI 305-5 Capitals SDGs M9 F M N Climate change presents one of the most pressing global challenges, with its impacts becoming increasingly severe. Rising sea levels, prolonged heatwaves, and more frequent droughts and wildfires highlighted the urgency for action. Projections1 from the World Meteorological Organisation indicated that 2025 could rank among one of the three (3) warmest years on record, further intensifying risks to communities, ecosystems, and national economies. These developments reinforced the need for adaptive and proactive measures to mitigate climate-related risks within our operational landscape. The transition towards a net-zero economy requires the aluminium industry to significantly reduce GHG emissions, from over 1 billion tonnes of CO2e to approximately 50 million tonnes by 20502. This shift drove change in consumer preferences for low-carbon aluminium products and the rising demand for energy transition solutions such as wind turbines, batteries, and solar photovoltaic technologies3, all of which require the use of aluminium. As a result, global aluminium demand is projected to grow from 86.2 million metric tonnes to 119.5 million metric tonnes (approximately 40% increase) by 20304. As SEA’s leading integrated aluminium producer, we are committed to addressing these challenges by enhancing energy efficiency and adopting lower-carbon production methods. While navigating the evolving market landscape, we continued to balance industry demands with our broader sustainability commitments. Embedding less carbon-intensive practices across our operations and expanding our portfolio of low-carbon aluminium products, helps strengthened our competitive position while ensuring the long-term stability and resilience of our business. Sources: 1. WMO (2025). WMO confirms 2024 as warmest year on record at about 1.55°C above pre-industrial level. https://wmo.int/news/media-centre/wmo-confirms-2024-warmest-year-record-about-155degc-above-pre-industrial-level 2. Aluminium Stewardship Initiative (2022). Issue Brief: Low Carbon Aluminium. https://aluminium-stewardship.org/low-carbon-aluminium 3. McKinsey & Company (2022), Capturing the green-premium value from sustainable materials. https://www.mckinsey.com/industries/metals-and-mining/our-insights/capturing-the-green-premium-value-from-sustainable-materials 4. World Economic Forum (2023), Aluminium Demand will Rise 40% by 2030. Here’s How to Make it Sustainable. https://www.weforum.org/stories/2023/11/aluminium-demand-how-to-make-it-sustainable/ WHY IT MATTERS ? A robust and structured approach is essential in managing climate-related risks and opportunities while ensuring alignment with global sustainability standards. Through Climate Change Strategy, Net-Zero Roadmap, and Adaptation Action Plans, we adopted a systematic approach to GHG emissions management, climate-related disclosures, and regulatory compliance. This framework enabled the implementation of targeted measures across short-, medium-, and long-term horizons, driving progress towards GHG emissions reduction goals. The Climate Change Policy provides the overarching framework that guides the response to climate challenges. It sets out a commitment to: • Optimising process performance to enhance operational efficiency and reduce energy consumption. • Deploying effective and low-carbon technologies within production lines. • Collaborating in research and development through strategic partnerships with external technology developers to develop and deploy advanced technologies that mitigate GHG emissions. • Promoting sustainable sourcing practices to source low-carbon raw materials. • Promoting and facilitating circular economy practices through closed-loop recycling to reduce the consumption of raw materials and energy. OUR APPROACH
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