SUSTAINABILITY REPORT Cont’d Climate Change Roadmap and Adaptation Action Plans To provide momentum and a more strategic approach, Climate Change Roadmap was developed into short- and long-term action plans as shown below. We have identified critical milestones within our Climate Roadmap such as technological advancement, greening our operations, and storing our carbon footprints to meet our climate change goals. Pillar 1: Strengthening Business Resiliency Over Climate Risk Pillar 2: Reducing Operational Carbon Footprint Pillar 3: Low Carbon Product Pillar 4: Reducing Carbon Footprint Across Value Chain Short-term strategy • Support and align to TCFD Framework • Conduct Climate Scenario Analysis and Climate Modelling • Review GHG related targets & metrics (aligning with TCFD) • Introduce block chain technology for traceability • Identify the reduction opportunities (from LCA hotspot analysis) • Map GHG along the value chain (Scope 3) Long-term strategy • Efforts to mitigate and adapt to climate impacts • Identify GHG Abatement and Offset Programme • Identify strategic partnership • Integrate circular economy into strategy • Develop circular product design and production • Identify hotspots, risks and opportunities along value chain Outlook The International Aluminium Institute (“IAI”) has projected that by 2050, the aluminium sector would need to reduce its total emissions to 250 Mt CO2e, from a 1.1 Gt CO2e 2018 baseline and a projected 2050 Business As Usual scenario of 1.6 Gt CO2e. The IAI has proposed three (3) broad pathways for GHG emissions reduction: electricity decarbonisation, direct GHG emissions reduction, and recycling and resource efficiency, with specific focus areas for each pathway. Press Metal has been exploring its own pathway to be consistent with 1.5-degree Celsius warming scenario as part of its overarching climate change strategy with reference to the IAI, while taking into account several factors such as the localised context, unique energy endowments, raw material and scrap availability, government policies, investment options, and the availability, speed, and cost of technology development and implementation. However, achieving large-scale GHG emissions reduction while meeting the growing demand for aluminium will require sector-wide and inter-sectoral partnerships. Investment will be a key enabler in achieving a low-carbon aluminium sector by 2050, with the cost of decarbonisation running into trillions of dollars. We are mindful that climate management is an ongoing effort which evolves over time, taking into account our business risks and opportunities as well as our stakeholders’ priorities. For 2023, we have allocated a Climate Change Budget of RM14 million to identify opportunities for reducing GHG emissions and implementing energy-saving initiatives. PRESS METAL ALUMINIUM HOLDINGS BERHAD 121
RkJQdWJsaXNoZXIy NDgzMzc=