SUSTAINABILITY REPORT Cont’d ENERGY GRI 3-3, GRI 302-1, GRI 302-2, GRI 302-3, GRI 302-4 Why is this important? Aluminium smelting process is an energy-intensive process which uses electricity in large quantities. We believe it is important to source energy in a sustainable manner by continuously identifying opportunities to shift from nonrenewable to renewable energy sources, thus contributing to operational GHG emissions reduction. In contrast, secondary production which involves recycling aluminium scrap to create new products, consumes a significantly lower amount of energy in comparison to primary production. Efficient energy management is pivotal for Press Metal not only due to its positive impact on the environment, but also in alignment with our goals to combat climate change. By prioritising clean energy, we can effectively curtail emissions and uphold our commitment towards sustainability. Our Approach Our approach to energy management is guided by our Environmental Policy and Environmental Mission Statement. Our key energy management approaches are to: • Measure the energy usage, review periodic performance, and maintain year-on-year efforts to reduce energy consumption across the organisation. • Continually improve and optimise energy performance of facilities, equipment, system and processes including improvements in technologies and approaches, modifications and R&D activities. • Transit to renewable energy source by transforming the existing energy system to a cleaner source and reduce dependence on fossil fuels. • Engage with employees and other stakeholders to cultivate energy conservation principles and practices. To further strengthen energy management at Press Metal, our plant in China, PMI, has obtained the ISO 50001:2018 EnMS certification, whereas our smelting operations (PMBtu and PMS) are making headway in attaining the ISO 50001:2018 EnMS certification. Although aluminium smelting is an energy-intensive process, Press Metal produces a lower carbon footprint when compared to smelters that rely on fossil fuel-based electricity supply (i.e. coal or diesel-fired power plants), as our smelting facilities are predominantly powered by hydroelectricity. Additionally, our PMI and PMAR manufacturing facilities partially utilise solar energy. It is crucial that we implement effective strategies and continuously strive to maximise energy efficiency, promote the use of renewable energy, and encourage energy conservation among our employees. Each entity within the Group has defined energy efficiency targets in line with the Group’s efforts to improve energy efficiency. PMI has outlined a target to reduce energy consumption by 2% annually, beginning 2021 to 2025. PMAR, moreover, has an environmental objective to reduce the consumption of natural gas to below 3.9 MMBtu/ tonne of aluminium produced. Our Initiatives In FY2022, our PMBA facility installed twin chamber melting furnaces to improve the remelting capacity while lowering energy consumption. Efficient work arrangements have been implemented to operate the furnaces by reducing the frequency of start-up and reheating as these operations tend to consume more energy. PMAR has implemented a range of environmentally conscious measures to optimise energy consumption. These initiatives include the installation of solar panels, which has the capacity to generate 1,248 kW of clean energy annually. Additionally, PMAR has taken proactive step by replacing less efficient gas burners with new models, resulting in significant energy saving. PMAR also monitors the condition of ceramic balls of the melting furnace to optimise heat efficiency. Such measures underscore PMAR’s dedication to sustainable business practices. PRESS METAL ALUMINIUM HOLDINGS BERHAD 129
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