SUSTAINABILITY REPORT Cont’d TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES cont’d Pillar Recommended Disclosure Press Metal’s Approach Reference Strategy Cont’d Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning We recognise climate change as a major business risk within our ERM framework and are committed to mitigating risk exposure through the implementation of effective risk management strategies and internal controls, including the use of appropriate performance indicators. We acknowledge that our susceptibility to the impacts of climate change extends beyond just the physical effects. The potential disruptions to our customers and markets, which could have a material impact on our value chain, have been taken into consideration in our climate change scenario analysis. The key focus of our Climate Change Strategy is to enhance our resilience to climate risk, decrease our carbon impact throughout our operations and value chain, and introduce innovative lowcarbon products. We have set ambitious group-wide targets for reducing GHG emissions. We are dedicated to ongoing evaluation and monitoring of financial risks and opportunities related to climate change and will implement measures to mitigate them. Our supply chain interdependencies, including the availability of raw alumina, variations in transportation costs, and fluctuations in renewable and non-renewable energy markets, will also be carefully monitored to assess their impact on our business operations. Climate Change, pg. 116-126, 183-184 Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario Press Metal remains dedicated to strengthening the climate resiliency of our business by setting targets towards carbon mitigation and environmental protection. The scenario analysis conducted this year allowed us to gain better insight into climaterelated risks and their potential impact on our business under 2oC and 4oC warming scenarios. Please refer to Scenario analysis: two (2) plausibles scenarios in 2050 for potential business impacts. With the adoption of sustainable practices across our production processes, we are in a promising position as there is increasing demand from consumers for low-carbon aluminium products. Our products are comparatively lower in carbon footprint, thus making us a preferred choice for aluminium supply. Furthermore, we have implemented thorough measures to address both physical and transition risks, which include conducting a flood impact assessment and allocating budgets for R&D to enable investments in the latest low-carbon technologies. We will also continue to develop strategies and explore solutions that will enable us to better mitigate the climate-related risks and capitalise on the opportunities as identified through our scenario analysis. Kindly refer to Table Y for a comprehensive list of both physical and transition risks identified along with their potential implications on our business operations under the two warming scenarios. Climate Change, pg. 116-126, 185-187 ANNUAL REPORT 2022 180
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