SUSTAINABILITY REPORT Cont’d We also conducted the cradle-to-gate Life Cycle Assessment (“LCA”) for our aluminium products manufactured in PMBtu (2021) and PMS (2022), in accordance with the ISO 14040:2006 Environmental Management - Life Cycle Assessment standard, to evaluate the life cycle environmental impacts of our products: aluminium ingots P1020A, aluminium billet, aluminium wire rod, and aluminium alloy ingots (A356.2). The product life cycle assessment covers the extraction of raw materials (cradle), transportation and manufacturing, to the point where it leaves the manufacturing facility (gate). The LCA analysis has provided us with the possibilities to identify potential solutions and improvement opportunities, as well as enabled us to take appropriate actions to address any significant impacts in our manufacturing processes. With this knowledge, we can prioritise and allocate relevant resources for impact reduction, leading to informed decision-making regarding our materials, processes, and transportation methods in our supply chain. The PMBtu’s LCA results are presented in an Environmental Product Declaration (“EPD”) that is prepared in accordance with ISO 14025:2005 and EN 15804 standards and is verified by an independent third-party consultant. The LCA or EPD facilitates transparent communication to customers by providing a quantitative basis for comparison of products and services and is available upon request. Pillar #4: Reducing Carbon Footprint Across Value Chain We are dedicated to collaborating with our suppliers and customers across the value chain to reduce GHG emissions to support the transition to a low-carbon economy. We have identified three (3) approaches to mitigate Press Metal’s carbon footprint throughout our value chain: a) Mapping the GHG emissions of our value chain Scope 3 GHG emissions measurement and management is a vital element to mitigate an organisation’s overall GHG emissions across the value chain. Since FY2021, we have identified and reported material categories of our Scope 3 GHG emissions. Mapping Scope 3 GHG emissions has enabled us to identify GHG emission reduction opportunities. These include being diligent in screening and selective in partnering with suppliers that support sustainable production of our input materials. b) Circular economy In promoting the circular economy agenda within the industry, we have been purchasing aluminium scrap from the open market and have established aluminium scrap buyback programmes in collaboration with our customers and business partners. Through this joint effort, we aim to acquire aluminium scrap and recycle it to extend the life of the aluminium product. We are able to produce aluminium products using lower energy consumption as only 5% of the total energy used in the aluminium production (cradle-to-gate) is required for remelting aluminium through this circular economy initiative. CIRCULAR ECONOMY Read more on our aluminium buyback programme in the Our Initiatives (Material Stewardship) section of this Report We have identified hotspots within our operations and plan to expand the hotspots analysis methodology to our key suppliers, where we may reduce GHG emissions through manufacturing process controls, energy efficiency initiatives, and raw materials procurement. Arising from the analysis, Press Metal has developed a GHG Emissions Reduction Plan for our smelting operations in Sarawak, which focuses on reducing anode effects and improving energy efficiency. Both PMBtu and PMS facilities are actively tracking the identified contributing factors, and the resultant GHG reductions. ANNUAL REPORT 2022 120
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