SUSTAINABILITY REPORT Cont’d TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES Last year, Press Metal embarked on climate-related disclosures to enhance transparency and provide insight into our actions to address climate change. We have adopted the TCFD Recommendations issued by the Financial Stability Board Recommendation (“FSB”). This includes disclosure on governance, strategy, risk management, as well as performance metrics and targets implemented to address the impacts of climate change. Pillar Recommended Disclosure Press Metal’s Approach Reference Governance Describe the board’s oversight of climate-related risks and opportunities The Board takes on a crucial role in overseeing Press Metal’s efforts to manage the effects of climate change, including developing and guiding the Group’s climate strategies and priorities, and setting performance objectives. The RMC provides support to the Board in managing the enterprise risk framework, which is being progressively updated to incorporate risks associated with climate change. Currently, the ESG metrics are tied to the incentive component of the compensation structure for assigned Management personnel (covering C-Suite members and Heads of Divisions/ Departments) of the Group. Moving forward, this remuneration mechanism will be cascaded to employee groups, taking into consideration the variability of their compensation and level of accountability. Sustainability Governance, pg. 100-101 Corporate Governance Overview Statement, pg. 41-43, 46-48 Climate Change Governance pg. 117 Describe the management’s role in assessing and managing climate-related risks and opportunities The Sustainability Committee (SC) is chaired by the Group CEO, leading and driving sustainability initiatives including advising, discussing, reviewing and monitoring the progress of sustainability projects. The committee’s main responsibilities include developing climate strategies and policies, reviewing performance, and ensuring adequate resource allocation for the implementation of Press Metal’s climate initiatives. The committee is supported by the CSD Team and plant-level SWGs, which are responsible for the execution, monitoring, and reporting of approved sustainability initiatives at the operational level. Additionally, the Head of Group Sustainability is tasked with the assessment and identification of sustainability matters, determination of action plans, and reporting on the progress to the Group CEO. Sustainability meetings are scheduled monthly with the management, comprising Division Heads, Head of R&D, and Head of Group Sustainability to ensure continuous progress of the Group’s sustainability targets. In the event of any underperformance across operations, action plans are promptly developed to address and rectify the issue. These plans are discussed during the monthly meetings and will be elevated to the SC and RMC for further deliberation at the Board level, if required. Sustainability Governance, pg. 100-101 Statement on Risk Management and Internal Controls, pg. 72-75 Strategy Describe the climate-related risks and opportunities the organisation has identified over the short-, medium-, and long-term In FY2022, we conducted a comprehensive climate change scenario analysis with the help of an external consultant. This analysis revealed a variety of potential transition risks, such as updated regulations, market changes, and technological advancements, which may affect our ability to sustain profitability and growth. Additionally, the analysis highlighted the potential impact of physical risks, such as extreme weather conditions, on our operations and assets. Kindly refer to Table X for identified climate-related risks and opportunities. Climate Change, pg. 116-126, 183-184 PRESS METAL ALUMINIUM HOLDINGS BERHAD 179
RkJQdWJsaXNoZXIy NDgzMzc=