SUSTAINABILITY REPORT Cont’d Furthermore, the SC oversees and scrutinises Press Metal’s sustainability performance and inculcates the inclusion of sustainability into the Group’s operations and procedures. SC ensures sufficient provision of resources to facilitate the efficacious implementation of Press Metal’s sustainability endeavours. The sustainability performance communicated to the stakeholders, which serves as part of the stakeholder engagement, is reviewed by the SC prior to presenting to the Board for approval. The SC reports quarterly to the Board and RMC on the sustainability progress and performance of Press Metal. The CSD Team and Sustainability Working Group (“SWG”) engages in a cooperative partnership to provide support to the SC. CSD Team acts as a subject matter specialist for the SWG, extending assistance when necessary. In addition, the CSD Team’s tasks include presenting the formulated targets by the SWGs to the SC for deliberation before advancing to the Board. Every month, CSD Team is tasked with reporting the sustainability performance of the Group to the Group CEO. The SWGs, which are formed by the respective operational managements, are responsible for implementing, monitoring, and reporting sustainability performance and progress across the various entities. The roles of the SWG include developing and proposing sustainability targets to the CSD Team for consideration in shaping the Group’s strategic objectives. Linking ESG to Remuneration ESG-linked remuneration drives catalytical change and enhances value-creation opportunities, signalling our steadfast commitment to our stakeholders towards driving sustainable development. Our ESG Remuneration Framework supplements the existing remuneration policies and procedures by aligning the current remuneration of selected senior management personnel with the sustainability targets; determined by using the balanced scorecard and modifier approaches. The ESG Remuneration Framework covers the following seven (7) ESG performance metrics as indicated below. GHG emissions performance Water security Waste diversion rate Zero workplace fatality Workplace injuries Participation of women in managerial roles Total women in the workforce The ESG Remuneration Framework links the incentive component of the compensation structure for selected Senior Management as well as Key Operating Management and the Head of Group Sustainability. The remuneration of Group CEO, one of the selected Senior Management, is tied to the ESG Remuneration Framework. Moving forward, this remuneration mechanism will be cascaded to employee groups, taking into consideration the variability of their compensation and level of accountability. PRESS METAL ALUMINIUM HOLDINGS BERHAD 101
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