SUSTAINABILITY REPORT Cont’d TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES cont’d Pillar Recommended Disclosure Press Metal’s Approach Reference Metrics and Targets Cont’d Describe the targets used to manage climaterelated risks and opportunities and performance against targets Press Metal has set climate-related targets such as those related to GHG emissions, water usage, and waste generation, in line with regulatory and voluntary requirements are disclosed in our annual Sustainability Report: Reduce GHG emissions intensity (Scope 1 and Scope 2) by 15% from the 2020 baseline by 2025 Reduce GHG emissions intensity (Scope 1 and Scope 2) by 30% from the 2020 baseline by 2030 Achieve carbon neutrality by 2050 Achieve 95% waste diversion rate by 2026 Zero landfill waste by 2030 Reduce water withdrawal intensity by 5% from the 2016 baseline by 2023 Reduce water withdrawal intensity by 10% from the 2016 baseline by 2030 Sustainability Targets, pg. 93 Climate Change, pg. 115-126 Air Emissions, pg. 127-128 Energy, pg. 129-131 Waste, pg. 132-136 Material Stewardship, pg. 137-138 Water and Effluents, pg. 139-142 Table X. Identified climate-related risks and opportunities for Press Metal Type of Risk Risks Opportunities Physical Risk Extreme weather events (Acute) Physical damage to assets and higher worker absenteeism Increased disruption to value chain which may incur cost, operation disruption and delivery delay • Improved business resiliency and adaptability by incorporating the unpredictable climate change events into Business Continuity Plan Changes in climate patterns (Chronic) • Increased maintenance costs, manpower, and resources to implement mitigation plans • Climate-related disease occur more frequently posing threat to employees’ health • Circular economy strategy – Reduce dependency on primary raw material sources by diversifying into high quality secondary aluminium Regulatory Environmental Regulations • Greater regulatory scrutiny and reporting on operations affects ease of business • Incidences of non-compliance could lead to suspension of operations, fines and penalties • Shift towards renewable energy sources • Better adaptability of the business to manage climate change impact and compliance with environmental regulations Carbon Pricing • Direct/ indirect exposure to carbon pricing regulations influence the prices of energy and materials hence lower EBITDA margins • Business strategy affected by carbon pricing/ carbon taxes • Internal carbon pricing (ICP) mechanism will help Press Metal to be in a better position to manage the impact of carbon taxes PRESS METAL ALUMINIUM HOLDINGS BERHAD 183
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