Press Metal | Climate Action Pledge Report
Goals and Objectives
As an integrated aluminium corporation and the largest aluminium producer in Southeast Asia, we are committed to proactively addressing climate change and minimising our environmental footprint through all feasible means.
Our climate-related goals are set based on short- and long-term targets, rather than annual ones, as outlined in our Greenhouse Gas Reduction Targets and Carbon Neutral Policy. Our Climate related goals are summarised as below:
Climate Change
- Reducing GHG emissions intensity (Scope 1 and Scope 2) by 15% by 2025, measured against our 2020^ baseline
- Reducing GHG emissions intensity (Scope 1 and Scope 2) by 30% by 2030, measured against our 2020^ baseline
- Achieving carbon neutrality by 2050
^ From the 2020 baseline of 3.8 tonnes CO₂-eq/ tonne of aluminium
In 2023, our GHG emissions intensity (Scope 1+2) decreased by 17.8% compared to 2022 to 3.3 tCO2-eq/t AL due to operational efficiency. Furthermore, we avoided over 5,400 tCO2e in Scope 2 GHG emissions due to solar energy usage and expanded our renewable energy capacity by investing RM2.6 million to install a 162.3kW car park rooftop and 1,104.3kW rooftop solar panel in Press Metal International.
Actions Taken
1. Climate Change Strategy & Roadmap
To achieve our climate change goals, we have developed a Climate Change Strategy and Roadmap. This strategy serves as a guiding framework built on four key pillars, with both short- and long-term strategies identified under each pillar. A summary of our Climate Change Strategy & Roadmap, along with our progress as of FY2023, is depicted in the figure below:
2. Climate Change Enablers
The four pillars of our Climate Change Strategy are supported by four Climate Change Enablers, which equip us to achieve our GHG reduction targets and, ultimately, carbon neutrality by 2050. A summary of the activities undertaken in 2023 under each enabler is provided below.
3. Integrating Climate Performance in Remuneration
Press Metal has incorporated GHG emissions intensity performance as a key metric within our ESG Remuneration Framework. This directly links the incentive component of compensation for our Group CEO, selected Key Senior Management, Key Operating Management personnel, and Head of Group Sustainability to our climate action performance. The key metrics measured in our ESG Remuneration Framework is as below:
- GHG emissions performance
- Zero (0) workplace fatalities
- Workplace injuries
- Water security
- Participation of women in managerial roles
- Total women in the workforce
- Waste diversion rate
4. Operational process enhancement for GHG reduction
Continuous efforts to enhance sustainability and operational efficiency across our operating facilities which aims to conducted to reduce GHG emissions and enhance energy efficiency.
5. Collaborative Efforts in Addressing Climate Change
We partner with external parties to minimise our internal GHG emissions and support their efforts in addressing climate change. Some of these initiatives are outlined below:
- MOU with Xi’an Jiaotong University on Carbon Capture and Utilisation (“CCU”) research.
- Participated as one of the bidders in the nation’s inaugural carbon credit auction which facilitated price discovery for carbon credits
- Participated as a working group member in a supplier-buyer initiative for the Voluntary Carbon Market (“VCM”) led by Bursa Malaysia
Challenges Faced & Learned
After 8 years of being on this sustainability journey, we successfully embedded a strong culture of sustainability within our team and the next hurdle was extending this commitment across our broader supply chain. In response, we took a further step by introducing our Responsible Sourcing Standards in 2023, aligning our procurement practices with our sustainability goals. These standards now serve as a framework for engaging with suppliers, contractors, service providers, and consultants, prioritising partnerships with those committed to improving their manufacturing processes and upholding strong ESG practices.
Our Responsible Sourcing Policy outlines key commitments, including compliance with legal and ethical business practices, human rights protections, and environmental responsibility. It sets the expectations for all suppliers to support and respect labour and human rights—such as freedom of association, fair treatment, and the elimination of forced or child labour—while ensuring safe and healthy working conditions. This journey is ongoing, and we remain fully committed to driving continuous improvements for the long term.
Achievements
1. Progress Against Climate Change Target
In 2023, our Scope 1 and Scope 2 GHG emissions intensity reduced by 12.2% from our 2020 baseline, reaching 3.3 tCO2e/tA
2. Recognition of our sustainable aluminium manufacturing
In recognition of our sustainable aluminium manufacturing practices, our smelting facilities in Sarawak, Press Metal Bintulu Sdn. Bhd. (“PMBtu”) and Press Metal Sarawak Sdn. Bhd. (“PMS”), and our extrusion facility in China, Press Metal International Limited (“PMI”), have received the Performance Standard certifications from ASI.
Source: Page 6 Annual Report 2023
3. Other ESG Recognitions
- FTSE4Good Bursa Malaysia Index. Ranked Top 25% by ESG Ratings amongst listed companies in FBM EMAS
- MSCI ESG Ratings. Upgraded to “A” from “BBB” and ranked within Top 10 Constituents in the MSCI Malaysia ESG Leaders Index
- Global ESG Monitor. Ranked as the regional No.1 for ESG transparency
4. ESG AWARDS
We received various awards in recognition of our ESG efforts. A summary of the ESG-related awards received in 2023 is provided here.
5. Biodiversity Preservation Initiatives
In FYE2023, we planted a total of 4,880 trees, in which 850 trees were planted externally and 4,030 trees were planted within the 1 premises of PMBtu.
6. Circular Economy Strategy
Our aluminium scrap buyback programme, we acquire both pre- and post-consumer aluminium scrap from the open market, our client and business partners. This approach extends the lifecycle of aluminium, aligning with our commitment to circular economy practices. In FYE2023, we purchased approximately 21.8 kilotonnes of aluminium scrap, 20% more than FYE2022.
Future Commitments
Through our Climate Change Strategy and Roadmap, we have identified key climate-related strategic plans and will continue to identify additional actions to help us achieve our GHG reduction and carbon neutrality targets. Some of these strategic plans are outlined below:
- Transition to renewable energy at our smelters.
- Enhance operational efficiency through technological advancements.
- Promote circular economy principles.
- Promote Supplier Management Programme to drive responsible practices across our supply chain.
- Invest in our project and internal capacity enhancement initiatives.
- Pursue CCU projects to capture CO2 from aluminium pots & explore the potential utilisation of the captured carbon
- Support ASI CHAIN OF CUSTODY. A system that can be used to support traceability of materials and associated claims through a supply chain
