Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced drinking water consumption by 5%
• Reduced water from own wells by 4%
• Reduced urban wastewater consumption by 5%
• Reduced industrial wastewater consumption by 7%
• Reduced wastewater from cooling systems by 8%
• Recycled 98% of all waste (1% more than in 2022)
• Reduced natural gas consumption by 5.7% compared to 2022
• Reduced electricity consumption by 0.52% despite a 3.65% increase in production
• Improved specific electricity consumption by 4.51% to 1.174kWh/kg of input material

Social Achievements

• Relauched Health Group, implementing Workplace Health Promotion Programme
• Reduced occupational injuries by 2 (43 in 2023 vs 45 in 2022)
• Reduced total sickness absence to 7.9% (from 8.9% in 2022)
• Maintained 1,614 jobs (1.2% more than the previous year)
• Increased average monthly gross salary per employee to EUR 2,226 (11.4% increase compared to 2022)
• Provided 9.11 hours of training per employee
• Spent EUR 252,425.79 on sponsorships and donations (including EUR 59,914.34 for flood recovery)

Governance Achievements

• Adopted revised Corporate Governance Policy
• Adopted amended Dividend Policy
• Appointed a Corporate Integrity and Fraud Officer
• Appointed a Compliance Officer
• Implemented Whistleblower Protection Policy

Climate Goals & Targets

Environmental Challenges

• High inflation and interest rates reducing purchasing power
• Increased financing costs (EURIBOR rates at highest levels in 15 years)
• Increased cost of services and labor costs
• Buyer expectations for price cuts
• Complexity of recruiting employees, especially in forging and tourism
• Significant drop in orders from bicycle segment
• Increased costs, especially financing, impacting profitability

Mitigation Strategies

• Seven-year refinancing to repay loans and secure liquidity
• Divestment sale procedure for non-core activities (tourism, machine tools, steelmaking)
• Activities to control operating costs
• Adjusting production volumes and redeploying employees
• Appropriate pricing and inventory optimization
• Investments in automation and robotics
• Increased share of forgings finishing
• Introduction of modularly designed "Uniflex" and "Aluflex" machines

Supply Chain Management

Responsible Procurement

• 70% of input materials from local Slovenian suppliers
• ESG questionnaire for major suppliers
• Development of a procurement portal

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Flooding
• Reduced Dravinja River flow

Transition Risks

• Shift towards electric vehicles
• Changes in market conditions
• EU directives restricting business with Russia and Belarus

Opportunities

• Development of energy-efficient products
• Production of aluminium forgings
• Low-carbon production technologies

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 9001, IATF 16949, ISO 14001, ISO 45001, ISO 50001, TISAX

Third-party Assurance: Bureau Veritas d.o.o. (2021); Self-calculated (2022, 2023)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Initiatives contribute to these goals through renewable energy investments, job creation, innovation, waste reduction, and emission reduction targets.

Sustainable Products & Innovation

• Aluminium forgings
• Energy-efficient machines
• Hand tools for sustainable transport

Awards & Recognition

• Family Friendly Company certificate