Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Management
• Social Responsibility
• Occupational Health and Safety
• Business Ethics
• Community Development
• Talent Management
• Product Quality and Safety
• Supply Chain Management
• Compliance
• Energy and Emissions
• Human Rights
• Waste Management
• Water and Effluents
• Land Remediation, Contamination or Degradation

Environmental Achievements

• 93% of scheduled waste was recycled in 2022 (11.8% reduction from 2021)
• Effluent discharge was within permissible limits in 2022
• Successful remediation of all hydrocarbon-contaminated areas at Bootu Creek Mine
• Collaboration with Sarawak Forestry Corporation for a rewilding project at Similajau National Park

Social Achievements

• Zero workplace fatalities in 2022
• 77 children benefited from the Back-to-School programme for the Bintulu Single Mother Association
• 21 fire extinguishers donated to Samalaju villagers
• Approximately US$17,000 donated to non-profit organisations
• 72 local employees trained to replace foreign staff at OM Sarawak

Governance Achievements

• Introduction of a new anti-corruption policy at OM Sarawak in 2022
• Over 80% of middle and senior management completed anti-bribery and corruption training
• All 32 grievance cases received in 2022 were resolved

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical tensions and the COVID-19 pandemic
• Climate change impacts such as increased temperature and rainfall in Sarawak, potential sea level rise
• Regulatory risks related to greenhouse gas emissions
• Reputation risks associated with climate change
• Market risks related to demand for low-carbon ferroalloys

Mitigation Strategies

• Implementation of a contingency plan, increasing safety stock to sustain supply chains
• Enhanced relationships with second-tier suppliers
• Climate scenario analysis to assess risks and opportunities
• Optimising production processes to minimise emissions and energy consumption
• Investing in new technologies and processes to reduce greenhouse gas emissions

Supply Chain Management

Supplier Audits: 5 suppliers audited for quality control, child or forced labour, workplace health & safety, conditions at work and dormitory; 34% of 294 eligible suppliers signed the Supplier Code of Conduct

Responsible Procurement

• Supplier Code of Conduct
• Declaration Letter of Compliance concerning sustainable practices and non-employment of child and forced labour
• Prioritization of local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Disruption of raw materials and energy sources
• Disruption of labour productivity due to heat waves
• Reduced electricity generation due to low rainfall

Transition Risks

• Increased compliance costs due to new regulations
• Increased supply chain costs
• Reputational damage
• Market shifts towards low-carbon producers

Opportunities

• Development and implementation of new technologies to reduce emissions
• Competitive advantage from producing low-carbon ferroalloys
• Improved access to capital

Reporting Standards

Frameworks Used: Bursa Malaysia Sustainability Reporting Guide (3rd Edition), GRI Universal Standard (Core Option), UN SDGs, TCFD

Third-party Assurance: BSI Services Malaysia (GHG emissions for OM Sarawak)

Awards & Recognition

• 10th Premier of Sarawak Environmental Award (PSEA) 2021/2022

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Management
• Emissions Management
• Biodiversity and Conservation
• Waste Management
• Water and Effluents Management
• Land Remediation
• Community Development
• Human Rights
• Talent Management
• Occupational Health & Safety
• Supply Chain Management
• Ethics and Compliance

Environmental Achievements

• OM Sarawak received ISO 14001 and 45001 certifications for Environmental and Occupational Safety and Health management systems.
• Upgraded one tapping deduster, increasing its capacity to reduce air emissions and pollution.
• Planted 800 trees as part of a rewilding project.
• Recycled >90% scheduled waste.

Social Achievements

• Launched training programs with 171,652 training hours recorded.
• 79% of OM Sarawak employees were locals.
• Zero workplace fatalities reported.
• Conducted OSHE Week promoting safety, health, and environmental awareness.
• Donated RM800,000 to the community.

Governance Achievements

• Established Anti-Bribery and Anti-Corruption Policy.
• Conducted climate scenario analysis.
• Implemented a comprehensive Code of Conduct.
• Established grievance mechanisms.

Climate Goals & Targets

Environmental Challenges

• Prolonged decline in ferroalloy prices.
• Subdued performance of the construction sector in China.
• Expansion of silicomanganese production capacity in India.
• Shipping crisis and unusual weather patterns.
• Start-up issues with the Ultra Fines Plant (UFP) at Bootu Creek Mine.
• Temporary suspension of hot commissioning for silicon metal furnace.

Mitigation Strategies

• Repurposing modified silicon metal furnaces to capture margins for ferrosilicon.
• Sale of 90% of smelter in China.
• Cost management initiatives and operational efficiencies.
• Rehabilitation activities at Bootu Creek Mine.
• Planned rectification works to restart the UFP in Q4 2024.
• Corrective measures implemented for silicon metal furnace, including machinery replacement.

Supply Chain Management

Supplier Audits: Supplier Self-Assessment Questionnaire (SAQ) implemented for primary suppliers. 61% of eligible suppliers signed the Supplier Code of Conduct declaration. 87% submitted the Anti-Bribery and Corruption policy.

Responsible Procurement

• Supplier Assessment Questionnaire (SAQ)
• Supplier Code of Conduct (incorporating ISO 14001 and ISO 45001 requirements)
• Declaration Letter of Compliance (confirming adherence to sustainable practices and absence of child and forced labour)
• Extension of Anti-Bribery and Corruption Policy to suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of extreme weather events
• Rising mean temperatures
• Altered precipitation patterns
• Rising sea level

Transition Risks

• Enhanced emissions-reporting obligations
• Increased pricing of GHG emissions
• Costs to transition to lower emissions technology
• Changing customer behaviour
• Increased cost of raw materials
• Reputational damage

Opportunities

• Growth in demand for low-carbon ferroalloys
• Reduced costs of low-carbon technologies and increased access to capital
• Increased availability of low-emission energy sources

Reporting Standards

Frameworks Used: Bursa Malaysia Enhanced Sustainability Reporting Guide, GRI Universal Standards (2021), UN SDGs, TCFD, TNFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: BSI Services Malaysia (GHG emissions, reasonable assurance at 10% materiality)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Exploring development of higher value-added products for the EV motor supply chain.