Caring for the Planet Press Metal Aluminium Holdings Berhad SECTION 5 • DELIVERING SUSTAINABLE VALUE FOR OUR STAKEHOLDERS 160 MATERIAL STEWARDSHIP GRI 3-3, GRI 301-1, GRI 301-2 Capitals SDGs M N M11 Aluminium smelting involves the extraction of aluminium from alumina using the Hall-Héroult process, a highly energy-intensive method that requires substantial electrical energy to produce high-purity aluminium. During the casting process, impurities inevitably form on the molten metal. Without proper management, these by-products can lead to significant losses of valuable aluminium. Inefficient material management carries considerable consequences, including resource depletion, unprocessed material losses, increased pollution, and GHG emissions. A proactive approach is essential to optimising the extraction, utilisation, and disposal of materials throughout their lifecycle. By implementing effective resource management strategies, operational requirements can be met while upholding environmental responsibilities, ensuring a balanced and sustainable approach to aluminium production. WHY IT MATTERS ? Efficient material stewardship is embedded within our manufacturing operations through the implementation of the 6S Lean Manufacturing Principles. This approach encompasses responsible sourcing, waste reduction, recycling, material recovery, reuse, and the prevention of unnecessary wastage. Our Environmental Policy outlines our commitment to maximising operational efficiency and minimising waste generation, while our Sustainability Policy advocates for the use of renewable resources and aims to reduce reliance on non-renewable and non-recyclable materials. This starts from the beginning of the lifecycle, where Press Metal procures responsibly and in line with fair trade and environmentally conscious principles. Within production, we optimise manufacturing processes to maximise efficiency in the use of primary input materials — alumina and carbon anode — in aluminium smelting. To extend the lifecycle of aluminium, we collect and reintegrate pre- and post-consumer aluminium products, sourced both internally and externally, into our production processes, reinforcing our commitment to a circular economy. OUR APPROACH Advancing Circular Economy in Aluminium Production Press Metal launched the Aluminium Scrap Buyback Programme to procure both pre- and post-consumer aluminium scrap from the open market, clients and strategic partners. In partnership with local suppliers, the initiative was further scaled to include the sourcing and import of scrap from international markets, broadening the supply base for recycled input material. In FYE2024, Press Metal expanded the Scrap Recycling Project to PMS as part of our drive to enhance circularity and resource efficiency. The initiative involves the collection, sorting and remelting of post-consumer aluminium for re-integration into the production cycle – extending the lifecycle of aluminium while reducing reliance on primary raw materials. This approach delivered measurable sustainability outcomes, including lower greenhouse gas emissions and energy savings, as recycled aluminium requires significantly less energy than primary aluminium production. The programme supports the Group’s environmental objectives and contributes to the broader transition towards a low-carbon, circular economy. OUR VALUE CREATION
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