SUSTAINABILITY REPORT Cont’d TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES cont’d Table X. Identified climate-related risks and opportunities for Press Metal cont’d Type of Risk Risks Opportunities Market Shift in Customer Preference • Increased pressure for Press Metal to refine products and/ or changes in production to cater for higher demand of low-carbon products in the market • Potential loss of revenue in the event that specification of customer’s demand for lower carbon products that are not met • Development of business opportunities leveraging on the customer preferences for sustainability products to increase sales Market cont’d Overall Changes in the Market • Increased expenditure to implement emissions reduction technology in the production to suit the climate change regulations and requirements • Increase in demand of recycled aluminium for producing carbon free aluminium in the market affects the supply of recycled aluminium • Additional revenue streams from exploring sector specific initiatives and climate related initiative • Development of new products with potentially higher revenue Technological Low-Carbon Technologies • Increased cost of investment and research in emerging decarbonisation technologies • Increased disruptions in existing work processes when implementing new technologies • Exploring new methods of aluminium production such as inertanodes to reduce emissions in the production process • Reduced risk of non-compliance and fines from emerging climate regulations Product changes and effects • Potential loss of market share due to increasing competition between industry players to be forerunner in developing the low carbon products • Increased capabilities in lowcarbon products by researching and investing in technologies. • Increased revenue and market share when customers expectation is met Reputation Litigations, fines and noncompliance • Increased delays or risks of refusals for projects that do not comply with environmental regulations • Increased costs to settle litigation cases and fines arising from noncompliance with environmental regulations • Better readiness of Press Metal’s business operations for compliance with climate-related regulations and expectations Negative investors and public perception • Potential reputational damage in the event of lacking transparency and action on climate issues • Delayed permit approvals on any expansion plans due to negative perception by investors and the public • Reposition branding and company image in a positive manner by leveraging on Press Metal’s efforts to significantly contribute towards climate change Social Talent retention and attraction • Increased costs associated with recruitment and branding efforts to reposition as a contributor towards climate action • Expectations of future workforces on companies to meet sustainable operations • Elevate climate-related awareness among employees as engagement in knowledge sharing sessions with employees increases Social changes arising from climate change • Risk of disruptions to operations arising from shortages of human resources cause by climate changes, leading to loss of revenue and delays in fulfilling customer contracts • Shifts in low carbon lifestyle create indirect pressure for companies to adapt • Greater employee contribution and participation by increasing awareness among employees on climate change ANNUAL REPORT 2022 184
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