ALRO Group
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:174,468 tCO2e (Scope 1) + 141,965 tCO2 (Scope 2) (ALRO, ALUM, VE)
Scope 1 Emissions:174,468 tCO2e (ALRO, ALUM, VE)
Scope 2 Emissions:141,965 tCO2 (ALRO, ALUM, VE)
Total Energy Consumption:5,022,279 GJ (ALRO, ALUM, VE)
ESG Focus Areas
- Decarbonization
- Environmental Protection
- Workplace Safety
- Green Factory, Factory of the Future, Innovative and Sustainable
- Energy Efficiency
- Green Energy
- Circular Economy
- Supply Chain Improvement
- Anti-Corruption Practices and Business Ethics
- Employee Development
- Community Relations
- Cybersecurity
- Human Rights
- Diversity & Inclusion
Environmental Achievements
- Increased waste recycling up to 95%
- Commissioned 30 electrolysis pots with AP12LE (low energy) technology
- Implemented wastewater recirculation programs aiming for 80% reuse
- Increased aluminium scrap recycling capacity to 100,000 tons per year
Social Achievements
- Invested approximately 2 million dollars in programs for education, health, community welfare, youth development, and the environment
- Granted scholarships and partnered with high schools and universities
- Organized specialized courses for employees
- Maintained Top Employer status
Governance Achievements
- Established Sustainability Department
- Implemented Integrity Whistleblowing Policy and Procedure at VE
- Obtained ASI Performance Standard V3 Certification for Slatina operations
- Obtained ASI Performance Standard V2 Certification for VE
Climate Goals & Targets
Long-term Goals:
- Green Factory, Factory of the Future, Innovative and Sustainable
Medium-term Goals:
- In-house electricity production from renewable sources (solar) by 2030
- Construction of a 470 MW CCGT plant by 2027
- Increase aluminium recycling capacity by 60,000 tons per year by 2024
Short-term Goals:
- Align with EAA targets of 10% reduction in energy consumption per ton of aluminium by 2025
- Increase renewable energy share
- Increase recycling rate to over 80%
- Zero biodiversity incidents by 2024
Environmental Challenges
- Low demand for aluminium in Europe due to economic uncertainty
- Reduction in aluminium quotations
- Waste management challenges
- Shortage of skilled labor
Mitigation Strategies
- Focused on essential and strategic investments in energy efficiency and emission reduction
- Partnered with Oltenia Energy Complex for electricity production
- Continued construction of a photovoltaic park
- Prioritized practical skills and motivation in recruitment
Supply Chain Management
Supplier Audits: 79% of ALRO suppliers completed ASI Performance Standard v3 questionnaire; 75% adhered to ALRO Supplier Code of Conduct
Responsible Procurement
- ALRO Supplier Code of Conduct
- ASI questionnaire for supplier assessment
- Reputational risk assessment
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI 2021, SASB, EU Taxonomy Regulation 852/2020, TCFD
Certifications: ASI Performance Standard V3 (ALRO Slatina), ASI Performance Standard V2 (VE), ISO 9001, EN 9100, IATF 16949, ISO 14001, ISO 45001, ISO 50001, NADCAP
Third-party Assurance: Forvis Mazars Romania (limited assurance)
Sustainable Products & Innovation
- Low carbon aluminium products (ALRO Essential, ALRO VitAL, ALRO VitAL Max)
- 2xxx, 7xxx, and 5xxx series plates
Awards & Recognition
- Sustainability Reporting & Communications prize (The Diplomat Bucharest)
- Third place for Best Sustainability Report (ARIR)
- EcoVadis Bronze rating (ALRO)
- EcoVadis Silver rating (ALUM)