LBA Luminium Berhad

Climate Impact & Sustainability Data (2023-05 to 2024-04, 2024)

Reporting Period: 2023-05 to 2024-04

Environmental Metrics

Total Carbon Emissions:39355.62 tCO2e/year

Scope 1 Emissions:7,699.75 tCO2e/year

Scope 2 Emissions:31,655.55 tCO2e/year

Scope 3 Emissions:726.37 tCO2e/year

Renewable Energy Share:6%

Total Energy Consumption:78,500.84 MWh/year

Water Consumption:434,656 m3/year

Waste Generated:2,043.55 tons/year

Carbon Intensity:1.15 kg CO2e per kg of aluminium extrusion produced

ESG Focus Areas

Climate Change
Resources Management
Waste Management
Energy Management
Safety and Health
Employee Wellness and Labour Practices
Training and Development
Customer Satisfaction
Business Ethics and Code of Conduct
Regulatory Compliance
Risk Management
Community and Social Investment
Supply Chain Management
Human Rights

Environmental Achievements

Reduced GHG emissions intensity (Scope 1 and Scope 2) recorded at 1.15 kg CO2e per kg of aluminium extrusion produced
Waste diversion rate was recorded at 49.25%, with 50.75% waste sent to landfill
Water withdrawal intensity was recorded at 0.00911 m3/kg of aluminium extrusion produced
13.45% of electricity was generated from solar panels

Social Achievements

Zero confirmed incidence of discrimination, harassment, violence, forced labour and child labour in the workplace
Zero workplace fatalities
Total Hours of Training: 4,670 hours
Overall Customer Satisfaction Survey Results: 88%

Governance Achievements

Zero confirmed incidences of bribery and corruption
Full compliance with all environmental regulations, resulting in zero environmental penalties

Climate Goals & Targets

Long-term Goals:

Achieve Carbon Neutrality by 2050

Medium-term Goals:

Reduce GHG emissions intensity (Scope 1 and Scope 2) by 30% by 2030
Achieve waste diversion rate of 70% by 2030
Reduce overall water intensity from municipal potable water supply by 10% by 2030
At least 25% of electricity from renewable energy sources by 2030

Short-term Goals:

Reduce GHG emissions intensity (Scope 1 and Scope 2) by 15% by 2027
Reduce overall water intensity from municipal potable water supply by 5% by 2027
Reduce LTIR to 1.5 by 2027

Environmental Challenges

Higher operational costs in several key areas, including labour and energy
Volatility in global aluminium prices and persistently weak MYR vis-à-vis the USD
Market competition
Fluctuations in global aluminium prices
Volatility in currency exchange rates
Political and economic instability
Execution risk for property development projects
Recovery pace of the domestic property market
Climate-related risks (transition and physical risks)

Mitigation Strategies

Increase automation in production lines
Expand solar photovoltaic system capacity
Closely monitor operational efficiency and effectiveness to reduce production costs
Adjust selling prices to safeguard margins
Monitor sales collections regularly
Maintain a healthy cash flow and strong liquidity position
Work closely with business partners to manage property development projects
Closely monitor local political and economic developments
Implement strategies to enhance business and financial resilience
Establish a governance structure specifically for climate change
Conduct scenario analysis to assess resilience against climate-related probabilities

Supply Chain Management

Supplier Audits: Biannual evaluations of selected key suppliers

Responsible Procurement

Suppliers must acknowledge and adhere to LBA's ABC Policy, Human Rights Policy, and Sustainability Policy
Prioritise local products and services

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather events (flooding, drought)
Changes in precipitation, weather patterns, and rising temperature

Transition Risks

Policy and legal risks
Technology risk
Market risk
Reputational risk

Opportunities

Resource efficiency opportunities
Energy sources from renewable energy
Access to new markets

Reporting Standards

Frameworks Used: Bursa Malaysia Securities Sustainability Reporting Guide, 3rd Edition, Malaysian Code on Corporate Governance (MCCG) 2021, Task Force on Climate-related Financial Disclosures (TCFD), United Nations Sustainable Development Goals (SDGs), Global Reporting Initiative (GRI) Standards 2021, FTSE4Good ESG Indicators

Certifications: ISO 9001:2015, MS2289:2010, UKAS Accreditation, CIDB Certificate, ABS (American Bureau of Shipping) Certificate

Third-party Assurance: Outsourced consultant

UN Sustainable Development Goals

SDG 9
SDG 11
SDG 17
SDG 12
SDG 13
SDG 15
SDG 3
SDG 5
SDG 8
SDG 10
SDG 16

The Group's material matters align closely with the SDGs, focusing on economic growth, environmental protection, social well-being, and good governance.

Reporting Period: 2024