Climate Change Data

Befesa S.A.

Climate Impact & Sustainability Data (2020, 2021, 2021-01 to 2021-06, 2022, 2023, 2023-01 to 2023-03)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:650 kt CO2e
Scope 1 Emissions:558 kt CO2e
Scope 2 Emissions:92 kt CO2e
Renewable Energy Share:13%
Total Energy Consumption:3094 GJ
Water Consumption:1873 m3
Waste Generated:1477 thousand tonnes

ESG Focus Areas

  • Climate Change
  • Health and Safety
  • Corporate Behaviour
  • Circular Economy

Environmental Achievements

  • Recycled volumes increased by 3.2% to 686,981 tonnes of steel dust (2019: 665,824 tonnes).
  • Produced 8.8% more new materials in 2020 compared to 2019 (1.2 million tonnes to 1.3 million tonnes).
  • Reduced direct CO2 emissions by 3%.

Social Achievements

  • Reduced Lost Time Injury Rate (LTIR) by 37% compared to 2019 (from 2.0 to 1.26).
  • Updated and improved equality, diversity and inclusion policy; included diversity in internal training.
  • Implemented a wide-ranging online diversity training for all HR employees.

Governance Achievements

  • Implemented a criminal compliance program (Criminal Risks Management System).
  • Befesa Medio Ambiente S.L.U. achieved UNE 19601 certification for criminal compliance.
  • Became part of the Global Challenges Index (GCX) in September 2020.

Climate Goals & Targets

Medium-term Goals:
  • Increase hazardous waste recycling volume to more than 2 million tonnes by 2025.
  • Increase valuable materials recovered to more than 1.5 million tonnes by 2025.
  • Complete certification of all plants to ISO 50001 by 2023.
Short-term Goals:
  • Reduce LTIR by at least 50% by 2024 compared to 2019.

Environmental Challenges

  • COVID-19 pandemic impacted operations and training.
  • Decrease in the share of renewable energy in electricity consumption (from 19% to 13%) due to changes in the Scandinavian electricity pool.
Mitigation Strategies
  • Adopted measures to avoid COVID-19 infections and maintain operations.
  • Implemented online training to mitigate the impact of restrictions on face-to-face training.
  • Maintained stable renewable energy share in electricity consumption (27%) within the core business.

Supply Chain Management

Responsible Procurement
  • Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001, ISO 14064, UNE 19601

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Circular Economy
  • CO2 reduction

Environmental Achievements

  • Increased recycling of hazardous waste year on year
  • Production of around 1.5 million tonnes of new materials, reducing consumption of natural resources

Social Achievements

  • Not disclosed

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2021-01 to 2021-06

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Circular Economy
  • Environmental Sustainability
  • Resource Management

Environmental Achievements

  • Recycles around 1.5 million tonnes of residues annually, with a production of around 1.3 million tonnes of new materials, reducing the consumption of natural resources.

Social Achievements

  • Not disclosed

Governance Achievements

  • Improved credit ratings from Moody’s and S&P, reflecting strong financial management.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1,412 kt CO2e
Scope 1 Emissions:882 kt CO2e
Scope 2 Emissions:155 kt CO2e
Scope 3 Emissions:375 kt CO2e
Total Energy Consumption:10,853 thousand GJ
Water Consumption:3,085 thousand m3
Waste Generated:1,845 kt
Carbon Intensity:0.56 CO2e/ton (2022)

ESG Focus Areas

  • Climate Change
  • Circular Economy
  • Biodiversity
  • Health & Safety
  • Compliance
  • Diversity & Inclusion
  • Human Rights

Environmental Achievements

  • Recycled volumes increased
  • New material production on new record level
  • Scope 3 emissions calculated for the first time
  • Production of the first and only “green zinc” in the world
  • Completed certification of all plants (excluding Chinese, US, and Freiberg) to the ISO 50001 energy management system

Social Achievements

  • Maintained zero fatalities
  • Strong improvement in LTIR (Lost Time Injury Rate)
  • US full integration into HR Policies and Procedures
  • Successful onboarding process for new employees
  • Implementation of HR procedures and values in the acquired subsidiaries in the United States

Governance Achievements

  • Sustainability Committee established
  • % of women in the board significantly increased
  • IT structures and procedures introduced in the United States and China
  • Improvements in ESG ratings: Global Compact Score increased

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero by 2050
Medium-term Goals:
  • Reduce CO₂ emissions by 20% by 2030
Short-term Goals:
  • Increase the volume of waste managed and recycled to more than 2.4 million tonnes by 2025
  • Increase volume of valuable materials recovered from waste and residues to more than 1.8 million tonnes by 2025
  • Reduce LTIR by at least 50% by 2024 compared with 2019

Environmental Challenges

  • High inflation, high energy prices, weak economic environment, difficult COVID-19 situation in China
  • Limited influence on most Scope 3 emissions
Mitigation Strategies
  • Initiating projects to reduce emissions and increase the share of renewable energy
  • Exploring multiple options to greenify electricity consumption
  • Implementing projects across plants to diversify energy mix in the long run (solar, biocoke, or hydrogen)
  • Implementing operational efficiencies to reduce coke consumption
  • Using PPAs for European regions to increase renewable energy share

Supply Chain Management

Responsible Procurement
  • Befesa Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities
  • Providing key metals for energy transition
  • Enabling Electric Arc Furnace (EAF) steel production

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001, ISO 14064, ISO 45001, EMAS

UN Sustainable Development Goals

  • Goal 15

Befesa is committed to Goal 15 (Life on Land) through various biodiversity initiatives.

Sustainable Products & Innovation

  • Green zinc
  • Lower-carbon recycled aluminium

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1.5m tonnes in 2023 (Scope 1, 2 and 3)
Scope 1 Emissions:879 Thousand tonnes of CO₂ equivalent
Scope 2 Emissions:249 Thousand tonnes of CO₂ equivalent
Scope 3 Emissions:421 Thousand tonnes of CO₂ equivalent
Renewable Energy Share:11.1% of total electricity use
Total Energy Consumption:11,701 Thousand Gigajoules (GJ)
Water Consumption:3,925 Thousand cubic metres (m³)
Waste Generated:73.21 tonnes (hazardous waste disposal); 162,017 tonnes (hazardous waste reused/recovered/recycled); 42,350 tonnes (non-hazardous waste disposal)
Carbon Intensity:0.55 tonnes CO₂e/tonne (Scope 1 and 2, pro-forma basis)

ESG Focus Areas

  • Climate change mitigation
  • Circular economy
  • Health and safety
  • Diversity, Equity and Inclusion
  • Compliance

Environmental Achievements

  • Recycled 1.9 million tonnes of residues, recovering 1.7 million tonnes of new materials (a 2.4% increase in recycled volumes and a 4.6% increase in new materials recovered compared to 2022)
  • Scope 1 intensity decreased by 10% compared to the prior year
  • 5% CO₂ intensity reduction compared to 2022 and 2% vs the baseline of 2021

Social Achievements

  • Achieved a Lost Time Injury Rate (LTIR) of 0.45, an 18% reduction compared to 2022 and a 77% reduction compared to 2019.
  • Maintained zero fatalities.
  • Launched several initiatives to support employee well-being, professional development, and diversity, equity, and inclusion (DEI), including comprehensive health and wellness programs, expanded training and development offerings, and policies to ensure equal opportunities.

Governance Achievements

  • Established a Sustainability Committee.
  • Increased the percentage of women on the Board of Directors from 22.2% in 2022 to 37.5% in 2023.
  • Implemented cybersecurity training for all users with computer access.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions by 2050
Medium-term Goals:
  • Reduce CO₂ emissions intensity by 20% by 2030 (Scope 1 and 2 emissions)
Short-term Goals:
  • Increase the volume of waste managed and recycled to more than 2.4 million tonnes by 2025
  • Increase volume of valuable materials recovered from waste and residues to more than 1.8 million tonnes by 2025
  • Reduce LTIR by at least 50% by 2024 compared with 2019

Environmental Challenges

  • Adverse external factors on the commodity side of the business and a difficult situation in China.
  • Slowdown in the Chinese economy and restructuring to improve long-term efficiency at Befesa’s zinc refining operation in the US.
  • Earthquake in Turkey affecting operations in Iskenderun.
Mitigation Strategies
  • Financial support and employee donation channel for employees affected by the earthquake in Turkey.
  • Restarting operations in Iskenderun one month after the earthquake.
  • Integrating Befesa Zinc US and Befesa China into Befesa’s systems.

Supply Chain Management

Supplier Audits: 26 audits carried out in 2023

Responsible Procurement
  • Befesa Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Earthquake
Transition Risks
  • Changes in regulations and incentives supporting industrial waste recycling
Opportunities
  • Development of energy-efficient products and processes, use of hydrogen and biocoke

Reporting Standards

Frameworks Used: GRI, EU CSRD, EU Taxonomy

Certifications: ISO 14001, ISO 50001, ISO 14064, ISO 45001, EMAS

Third-party Assurance: Limited assurance by external auditor (for 2024 report)

Reporting Period: 2023-01 to 2023-03

Environmental Metrics

Waste Generated:1.8 million tonnes of residues recycled annually

ESG Focus Areas

  • Circular Economy
  • Sustainable Global Growth Plan (SGGP)

Environmental Achievements

  • Increased secondary aluminium output by 13% QoQ and by 3% yoy to 44 kt
  • Manages and recycles around 1.8 million tonnes of residues annually, with a production of above 1.5 million tonnes of new materials

Social Achievements

  • Providing support to its more than 90 employees in Turkey after the earthquake
  • All employees in Turkey were safe and unharmed

Governance Achievements

  • Board is proposing a stable €50m dividend (€1.25 per share) for 2023

Climate Goals & Targets

Short-term Goals:
  • US Palmerton plant refurbishment (2023 and 2024)

Environmental Challenges

  • Lower zinc LME market prices (13% decrease yoy)
  • Unfavourable higher zinc treatment charges (TC), up 19% yoy
  • Continued record high coke prices (up 6% QoQ and 41% yoy)
  • Lower volumes and capacity utilization levels yoy
  • Earthquake in Turkey impacting steel dust operations
Mitigation Strategies
  • Rigorously executing expansion projects
  • Closely monitoring the development of energy and base metal prices
  • US Palmerton plant refurbishment (2023 and 2024)
  • Successfully restarted operations in Turkey in March

Supply Chain Management

Climate-Related Risks & Opportunities