SUSTAINABILITY REPORT Cont’d MATERIAL STEWARDSHIP GRI 3-3, GRI 301-2, GRI 301-3 Why is this important? The growth of the global population and economy has led to an increase in demand for finite natural resources such as metals and minerals. However, this large-scale consumption has resulted in adverse consequences such as increased GHG emissions from material processing, mineral resource scarcity, limitations in the supply chain, and price volatility. Press Metal is committed to the principles of material stewardship, including material recovery and reuse, as well as preventing wastage through the implementation of the 5S lean manufacturing method. We aim to maximise output efficiency from the raw materials required as primary input materials (i.e. alumina and carbon anode) in the aluminium production process. Our Approach At Press Metal, we have implemented operational policies and procedures that align with the principles, i.e. to improve resource efficiency and energy consumption through operational optimisation, with the aim of minimising our environmental footprint. To improve material resource efficiency, we focus on streamlining the manufacturing process which enables products to be recovered or reused. We have also integrated circular principles into our operations, guided by the European Aluminium’s Circular Aluminium Action Plan. This involves reducing waste generation at source and maximising materials recycling. As part of our efforts to extend the lifecycle of aluminium, we collect, reuse, and recycle products as input materials for production. The recycled aluminium used in our manufacturing processes includes defected products and aluminium scraps that are recovered internally or sourced from external providers. Press Metal aims to establish a sustainable supply chain by venturing into upstream business investments that enable us to secure the supply of raw materials as well as to promote sustainable sourcing principles among the stakeholders in the upstream value chain in the long run to preserve the limited resources for future generations. Read more on our circular economy approach under Pillar #3 of the Climate Change Strategy section of this Report Read more on our waste approach in the Our Approach (Waste) section of this Report Our Initiatives Pre- and post-consumer aluminium scraps are typically recycled as manufacturing input materials. Such aluminium comprises post-consumer aluminium scrap and aluminium by-products including recovered aluminium from dross, aluminium butt-end, and scraps generated from the production line. Aluminium scraps are sourced from two (2) of our key efforts, namely the aluminium scrap buyback programme and remelting of defective aluminium goods. Press Metal has initiated aluminium scrap buyback programme where we acquire post-consumer aluminium scrap from the open market, clients, and business partners to be reintroduced, as much as feasible, into our manufacturing process. This is aligned with our strategy to adopt the circular economy concept. Where aluminium products are classified as defective due to unforeseen factors, they would be considered as waste if they are not treated. As such, Press Metal re-collects, sorts and subsequently, remelts the defective aluminium products at our manufacturing facilities to produce a new batch of aluminium products. Increased interest in use of sustainable materials for electronic products has driven Press Metal to obtain certifications for our recycled aluminium products. In FY2022, two (2) of our extrusion products have been certified with SCS Global Recycled Content for a minimum of 80% Pre-Consumer Recycled Aluminium Alloy Content and 100% Pre-Consumer Recycled Aluminium Alloy Content, respectively. Read more on our waste initiatives in the Our Initiatives (Waste) section of this Report PRESS METAL ALUMINIUM HOLDINGS BERHAD 137
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