SUSTAINABILITY REPORT Cont’d TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES cont’d Pillar Recommended Disclosure Press Metal’s Approach Reference Metrics and Targets Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process At Press Metal, we track and annually report climate-related performance using the following metrics: Absolute measurement of Scope 1, 2 and 3 GHG emissions GHG emissions intensity Air emissions Energy consumption Energy intensity Waste generated Waste diverted from disposal Waste diverted to disposal Internal dross recovery rate Total buyback aluminium scrap Recycled aluminium intensity Water withdrawal Water withdrawal intensity Water consumption Water discharge In response to the growing need for reducing carbon emissions, Press Metal has decided to implement an internal carbon pricing mechanism starting next year. 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 Climate Change, pg. 116-126 Air Emissions, pg. 127-128 Energy, pg. 129-131 Waste, pg. 132-136 Material Stewardship, pg. 137-138 Water and Effluents, pg. 139-142 Describe Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks This year, Press Metal’s GHG emissions were calculated using the ‘operational control’ approach, which accounts for 100% of GHG emissions from all of Press Metal’s manufacturing operations; generated from the on-site manufacturing processes in the midstream and downstream operations. Our Scope 1 and Scope 2 emissions were primarily generated from midstream and downstream operations and were calculated using the WBCSD/ WRI GHG Protocol and the IAI Aluminium Sector Addendum to the GHG Protocol. Our total emissions for the year amounted to 2,162.0 ktCO2-eq in Scope 1 and 1,065.5 ktCO2-eq in Scope 2, representing a 6.7% increase in total GHG emissions from the previous year. Scope 3 GHG emissions calculation is based on the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard and The Technical Guidance for Calculating Scope 3 Emissions (Version 1.0). We have revised the calculation methodologies by replacing the spend-based method with the average-data method and distance-based method to represent a higher level of maturity and accuracy in the Scope 3 GHG emissions reporting. Climate Change, pg. 116-126 ANNUAL REPORT 2022 182
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