Climate Change Data

Alumex PLC

Climate Impact & Sustainability Data (2016-04 to 2017-03, 2023/24)

Reporting Period: 2016-04 to 2017-03

Environmental Metrics

Total Carbon Emissions:7,120 tCO2e/year
Scope 1 Emissions:3,658 tCO2e/year
Scope 2 Emissions:2,983 tCO2e/year
Scope 3 Emissions:478 tCO2e/year
Total Energy Consumption:74,447,137 MJ/year
Water Consumption:126,623 m3/year
Waste Generated:1,000 tons/year
Carbon Intensity:1.0 tCO2e/MT in 2016/17

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Introduced an environment-friendly chromium-free chemical process to the powder coating plant, reducing water usage by over 40%
  • Upgraded melting furnace pollution control system
  • Installed a new rectifier and chiller in the anodizing plant to enhance its capacity

Social Achievements

  • Provided meals, dry rations, and household items to employees and their families affected by floods
  • Donated 2,850 white canes to organizations for the blind
  • Provided fabricator training at various institutions
  • Partnered with Puritas to set up a CKD prevention water purification project

Governance Achievements

  • Improved corporate governance practices in line with the Code of Best Practices on Corporate Governance and Colombo Stock Exchange Listing Rules
  • Established an Audit Committee and a Remuneration Committee

Climate Goals & Targets

Long-term Goals:
  • Establish Alumex as a premier international aluminum manufacturer
Medium-term Goals:
  • Target new export markets and demographic segments
  • Develop a complete Alumex proprietary system
  • Implement backward integration for aluminum extrusion profile manufacturing
Short-term Goals:
  • Increase capacity by at least 100% to meet demand until 2020
  • Continue opening new dealerships and regional warehouses
  • Complete construction of a centralized warehousing system
  • Complete capacity improvement project

Environmental Challenges

  • Supply chain disruptions due to floods
  • Increased interest rates affecting customer projects
  • Depreciation of the Rupee against the US dollar increasing import costs
  • Uncertainty in government policies
  • Limited supply of scrap aluminum from the local market
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Effective management of working capital
  • Maintained a proper combination of fixed and floating rates
  • Implemented a medium-term strategy to transform and grow the business
  • Increased capacity utilization

Supply Chain Management

Supplier Audits: Annual review and relationship visits to main raw material supplier. Yearly assessment of manpower suppliers’ compliance with legal provisions.

Responsible Procurement
  • Supplier site visits
  • Discussions on ease of transaction and procurement policies
  • Agreements of long-term partnerships

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding

Reporting Standards

Frameworks Used: Integrated Reporting Framework (IIRC), Global Reporting Initiative G4 ‘In accordance’ – Core

Certifications: ISO 9001:2008

Third-party Assurance: Ernst & Young

Sustainable Products & Innovation

  • Heat-resistant roofing tile made from solid waste

Awards & Recognition

  • Gold Award - Manufacturing Sector - Annual Report Award Ceremony 2016
  • Winner - Manufacturing (Engineering) Sector - National Business Excellence Awards 2016
  • Merit Award - Manufacturing Sector - SAFA Best Presented Annual Report Awards 2015
  • 1ST RUNNER - UP - Large Business Category - National Business Excellence Awards 2016
  • Gold for its third Annual Report in the Manufacturing sector at the Annual Reports Award ceremony organized by the CA Sri Lanka
  • Merit award for our 2014/15 financial statements from the South Asian Federation of Accountants

Reporting Period: 2023/24

Environmental Metrics

Total Carbon Emissions:9,809 tCO2e/year
Renewable Energy Share:1.2 MW (Target 10% by 2030)
Water Consumption:60,612 m3/year
Carbon Intensity:1.64 tCO2e/MT (Target 1.23 tCO2e/MT by 2030)

ESG Focus Areas

  • Climate Action
  • Water Management
  • Biodiversity
  • Resource Efficiency
  • Circularity
  • Employee Retention
  • Employee Satisfaction
  • Workplace Injuries
  • Training & Development
  • Diversity & Equal Opportunity
  • Responsible Sourcing
  • Community Engagement
  • Customer Relationships
  • Human Rights
  • Risk Management
  • Governance

Environmental Achievements

  • 9,809 tCO2e GHG emissions
  • 60,612 m3 Water withdrawal
  • 100% Waste water treated

Social Achievements

  • 774 Employees on payroll
  • >7,500 Training hours
  • 88% Retention rate
  • 77 Lumin certified fabricators
  • Rs.10.72 bn payments to suppliers
  • 57% Spending on local suppliers

Governance Achievements

  • Established an ESG Steering Committee at the Executive Leadership level, with Board representation

Climate Goals & Targets

Long-term Goals:
  • 25% reduction in emission intensity
  • 16% reduction in Scope 1 emission intensity
  • 40% reduction in Scope 2 emission intensity
Medium-term Goals:
  • Reduce energy intensity by 15%
  • Achieve 10% renewable energy consumption
  • Reduce water intensity by 30%
  • Achieve 25% sustainable water sourcing
  • Decrease ash quantity by up to 7%
  • Decrease ETP sludge generation by 35%
  • Improve utilisation of powder consumption by 28%
  • Increase scrap collection up to 300MT per month
  • Sustain the percentage of local billet consumption by utilising maximum plant capacity
  • Achieve overall employee retention rate up to 90%
  • Achieve overall employee satisfaction rate up to 75%
  • Achieve 90% social and environmental screening of suppliers
  • Increase overall customer satisfaction score to 85%
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • High energy use in manufacturing operations
  • Resultant generation of GHG emissions
  • Water usage
  • Potential biodiversity impacts
  • Supply chain disruptions
  • ESG-related risks and opportunities
Mitigation Strategies
  • Reducing emissions within operations and across the supply chain
  • Increasing reliance on renewable energy
  • Improving energy efficiency
  • Implementing energy management systems
  • Increasing the efficiency of water usage
  • Reducing water withdrawal
  • Relying more on sustainable water sources
  • Investing in reforestation
  • Monitoring potential impacts on biodiversity
  • Conducting social and environmental screening of suppliers
  • Implementing long-term supplier development programs
  • Strengthening governance structures, policy frameworks, and monitoring mechanisms

Supply Chain Management

Responsible Procurement
  • Responsible sourcing
  • Social and environmental screening of suppliers
  • Supplier development programs

Climate-Related Risks & Opportunities

Physical Risks
  • Climate change impacts
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: SLFRS S1 and S2 Sustainability Reporting Standards, Integrated Reporting Framework, GRI Standards, SASB Guidelines, TCFD Recommendations

Certifications: ISO 14001: 2015, ISO 14064-1 (2018), ISO 45001: 2018, ISO 9001: 2015, QUALANOD, QUALICOAT, SLS

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 6 (Clean Water and Sanitation)
  • Goal 13 (Climate Action)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 5 (Gender Equality)
  • Goal 4 (Quality Education)
  • Goal 15 (Life on Land)
  • Goal 10 (Reduced Inequalities)

The 'Elevate' initiative is aligned to the UN SDGs through various initiatives related to climate action, water management, biodiversity, resource efficiency, human capital development, responsible sourcing, and community engagement.