Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic empowerment
• Climate change
• Resource efficiency
• Safety
• Skills development
• Employment equity
• Broad-Based Black Economic Empowerment (B-BBEE)

Environmental Achievements

• Reduced lost time injuries from eight in 2017 to two in 2018
• Improved total recordable injury frequency rate from 0.61 in 2017 to 0.24 in 2018
• Reduction of Green House Gas Emissions (GHG Emissions) for the 2018 production year, despite increasing production by 6.3%
• Significant reductions in water consumption at the Pietermaritzburg site
• Increased volumes of purchased pre- and post-consumer scrap aluminium processed at its recycling furnace (27% increase on 2017)
• 55% reduction of effluent discharged over the last four years

Social Achievements

• Developed a specific enterprise and supplier development (ESD) policy
• Increased preferential procurement metrics in 2018
• Increased spend with ≥51% black-owned enterprises by 53% in 2018
• Increased spend with ≥30% black women-owned enterprises by 42% in 2018
• Spend with EMEs and QSEs nearly doubled in 2018 over 2017
• 98.2% black representation in 166 external management recruitments
• Launched flagship and employee volunteerism programmes
• Successful enterprise and supplier development initiatives with ZCN Business Enterprise, Yami Mine Solutions, and Omalume Manufacturing and Projects

Governance Achievements

• Developed a new enterprise and supplier development (ESD) policy
• Successful surveillance audit conducted in June 2018 in line with OHSAS 18001

Climate Goals & Targets

Environmental Challenges

• Approximately 70% of procurement spend relates to incoming aluminium metal from suppliers with low B-BBEE ratings
• Challenges in aggregating indicators from multi-site operations (Hulamin Extrusions, Isizinda Aluminium)
• Complexity in determining feasible environmental targets due to diverse product mix and market demands
• Three melter failures at Rolled Products leading to increased LPG consumption

Mitigation Strategies

• Significant efforts to increase procurement from black-owned EMEs and QSEs in the remaining 30% of spend
• Implementation of a new ESD policy to drive consistent and fair implementation of ESD processes
• Development of business intelligence system to include all data required for reporting waste, energy, water and carbon
• Formalized business model to manage and reduce environmental footprint using RECP methodology
• Installation of new control methodology for regenerative beds at Melter 3 to reduce LPG and electricity consumption
• Improved efficiency of liquid metal transfer from recycling furnace

Supply Chain Management

Responsible Procurement

• Preference given to competitive B-BBEE-compliant suppliers
• Ring-fencing of RFQs for black-owned enterprises
• Encouragement of suppliers to improve B-BBEE recognition levels
• Support for joint ventures and subcontracting arrangements

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Economic Empowerment
• Resource Efficiency
• Community Development

Environmental Achievements

• Reduced overall waste by 17% compared to the previous year.
• Reduced overall energy consumption by 2%.
• Achieved a 10% decrease in water withdrawal relative to the 2018 baseline year.
• Increased scrap processed through the recycling furnace by 10% compared to 2022.
• Reduced absolute Scope 1 and 2 greenhouse gas emissions by 7% relative to the 2018 baseline year.

Social Achievements

• Reduced Lost Time Injuries (LTIs) from six in 2022 to four in 2023.
• Reduced Total Recordable Injuries (TRIs) from 12 to eight.
• Improved Total Recordable Case Frequency Rate (TRFCR) per 200,000 work hours from 0.42 to 0.28.
• Spent R3,504,740 on Corporate Social Investment (CSI), with 83% allocated to education.
• Spent R410.1 million on Qualifying Small Enterprises (QSEs) and R385.8 million on Exempted Micro-Enterprises (EMEs) on procurement of goods and services.
• Spent a total of R1.73 billion with enterprises that are at least 51% Black-owned, and R1.1 billion on enterprises where Black women ownership is more than 30%.

Governance Achievements

• Attained ISO 45001:2018 certification for occupational health and safety.
• Undertook a Task Force Climate-related Financial Disclosure (TCFD) scenario analysis.
• Reached a multi-year agreement with employees, ensuring stability and productivity.

Climate Goals & Targets

Environmental Challenges

• Industrial action resulting in lost production time.
• Climate-related transition risks and opportunities.
• Supply chain disruptions due to extreme weather events.
• Eskom blackouts and electricity supply shortages.
• Meeting emission reduction expectations from stakeholders.

Mitigation Strategies

• Collaborative negotiations resulting in a multi-year agreement with employees.
• Undertaking a TCFD scenario analysis to inform resilience and innovation strategies.
• Developing alternative sourcing strategies to address supply chain disruptions.
• Implementing energy-efficiency programs and pursuing renewable energy sources.
• Developing a decarbonisation plan to reduce emissions and meet science-based targets.

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers
• Preference for B-BBEE compliant suppliers
• Support for EMEs and QSEs

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, cyclones)
• Extreme heat
• Supply chain disruptions

Transition Risks

• Increased stakeholder concern
• Increased pricing of GHG emissions
• Increased compliance requirements
• Increased investment in technologies
• Increased pricing of GHG emissions for suppliers

Opportunities

• Renewable energy sourcing
• Energy efficiency improvements
• Increased use of recycled aluminium

Reporting Standards

Frameworks Used: GRI, TCFD, CDP, SBTi, B-BBEE

Certifications: ISO 14001:2015, ISO 45001:2018

Third-party Assurance: BDO

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

Hulamin's initiatives contribute to these goals through job creation, sustainable production practices, resource efficiency, and GHG emission reduction.