Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Recycling
• Diversity
• Health and safety
• NOx and SOx emissions

Environmental Achievements

• Total emissions fell for a second consecutive year, marking a 22% reduction from our baseline year of 2018. Scope 1, 2 and 3 emissions (raw materials) fell by 9% over the previous year.
• Use of secondary raw materials increased to 5.0% in 2020, compared with 4.6% in 2019.
• 30% reduction in NOx and SOx achieved in China; work now focuses on US operations

Social Achievements

• Female representation at leadership level increased to 25%, which is over double the figure in 2018.
• LTIF reached 0.13 in 2020, representing a 56% improvement compared to 2019. We also continued to reduce accidents, with a 40% reduction in total recordable injury frequency.
• Global engagement score 79%

Governance Achievements

• Implemented a new digital compliance portal to strengthen compliance processes.
• Merged Internal Audit, Risk Management and Compliance functions into a single department.
• Strengthened validation and challenge of the activities performed by each sales agent.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted demand and operations.
• Lower raw material prices reduced sales margin.
• Increased volatility of exchange rates.
• Increased energy price pressure.
• Inability to fully implement all planned energy efficiency projects due to COVID-19.
• Supply chain disruptions due to COVID-19.
• Material reductions in demand and changes in working capital as a result of heavy global lockdowns due to COVID-19 in 2021.

Mitigation Strategies

• Implemented strict safety protocols, remote working, and cost-saving measures to address COVID-19.
• Developed a more agile business with lower fixed cost base and integrated business planning.
• Implemented product price management and optimized "make or buy" decision-making.
• Active balance sheet and exposure management.
• Improvement of energy efficiency to reduce consumption.
• A strategic approach to energy contract management to minimize energy costs.
• Geographical diversification of the production network.
• Implementation of an optimized production footprint to meet planned requirements.
• Establishment of a best-in-class integrated supply chain.
• Operational risk management and maintenance policies.
• Risk-based investment policy.
• Global insurance coverage.
• Focus on the minimization of sole-source materials.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Droughts

Transition Risks

• Regulatory changes
• Price of carbon
• Viability and customer acceptance of emerging technologies
• Ability to set and meet Paris-aligned targets

Opportunities

• Development of low-carbon products and services
• Carbon capture and usage technologies

Reporting Standards

Frameworks Used: GRI Standards (Core option), UN Global Compact, CDP, TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ANKRAL low-carbon bricks
• APO (Automated Process Optimisation)
• QCK (Quick Check)

Awards & Recognition

• Microsoft Intelligent Manufacturing Award

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Climate change mitigation
• Increased use of secondary raw materials
• R&D investment
• Partnering with customers to reduce emissions
• Building market share in sustainable segments
• Sustainable procurement
• Diversity
• Minimising environmental impacts
• Stakeholder relationships

Environmental Achievements

• Recycling rate of 10.5% in 2022 (2018: 3.8%)
• 8% reduction in carbon intensity compared to 2018
• 18 kt annualised CO2 emission savings at Ponte Alta, Brazil (fuel switch)
• 65% of purchased electricity from low-carbon or renewable sources by end of 2022

Social Achievements

• 33% female representation on the Board of Directors (2018: 7%)
• 21% female representation in EMT and direct reports (2018: 12%)
• LTIF maintained at <0.5 (goal: zero accidents)

Governance Achievements

• Enhanced compliance policies and procedures with training initiatives
• Adoption of a Human Rights Policy
• Implementation of a global Anti-Discrimination and Anti-Harassment Policy
• Launch of a new Diversity Charter and online training

Climate Goals & Targets

Environmental Challenges

• Disruption in the market for natural gas affecting fuel switching plans
• Slight increase in LTIF due to high plant loads and reduced staffing

Mitigation Strategies

• Installation of multi-fuel burners in European plants to use alternative fuels
• Strengthened regional Health & Safety coordination and communication
• Urgent investigation and guideline changes following a workplace accident

Supply Chain Management

Supplier Audits: 31% of spending covered by EcoVadis assessments in 2022; 9 on-site assessments conducted

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis assessment system
• On-site supplier assessments

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Droughts
• Extreme weather events
• Forest fires
• Soil subsidence

Transition Risks

• Carbon pricing
• Regulatory frameworks
• CBAM
• Market shifts

Opportunities

• Increased demand for EAF refractories
• Increased demand for low-carbon products

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001

Third-party Assurance: Deloitte Audit Wirtschaftsprüfungs GmbH (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• 'Net Zero Brick'
• ANKERAL LC bricks
• ANKERJET XW gunning mix

Awards & Recognition

• CDP A- rating

Environmental Metrics

ESG Focus Areas

• Climate change and environmental impact mitigation
• Increased use of secondary raw materials to reduce CO2 emissions
• R&D investment to develop emissions avoidance, alternative fuels, and carbon capture, storage and utilisation technologies
• Partnering with our customers to reduce their emissions
• Sustainable procurement practices
• Upholding diversity in the workplace
• Building strong relationships with all stakeholders
• Linking debt facilities and management compensation to sustainability performance
• Health & Safety

Environmental Achievements

• CO2 intensity reduced by 12% versus the revised 2018 baseline year
• Recycling rate increased to 12.6% in 2023, with incremental avoidance of 393kt CO2
• Operational energy intensity was 8% lower than 2018

Social Achievements

• Gender diversity at Board level increased to 29% and increased to 28% at EMT + direct reports level
• LTIF reduced further to 0.16 (2022:0.20)
• Introduced a new Global Equality Policy in 2023

Governance Achievements

• Code of Conduct updated and re-launched in 2023
• Human Rights module added to the training syllabus
• 25% of the Long-Term Incentive Plan (LTIP) payout criteria is linked to the Group’s target to reduce CO2 emissions per tonne

Climate Goals & Targets

Environmental Challenges

• Harmonising diverse standards, supply chains, and operational processes poses challenges and can affect overall environmental KPIs in the short term following M&A
• Delayed progress in switching to alternative fuels due to capital expenditure constraints, infrastructure availability, changes in the market outlook for natural gas
• One fatality occurred at one of the Group’s plants in Austria in November 2023

Mitigation Strategies

• The Group seeks to align sustainability practices and implement efficient transition strategies as soon as possible following acquisition
• Reassessing strategy to convert from solid fuels to natural gas due to challenges, exploring carbon capture and sequestration
• Thorough investigation of root causes of fatality and changes to operating procedures and standards are being implemented worldwide

Supply Chain Management

Supplier Audits: 42 on-site assessments in 2023; 41% of spend covered by EcoVadis assessments

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis ESG platform

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Droughts
• Extreme weather events

Transition Risks

• Carbon pricing
• CBAM
• Regulatory changes
• Market shifts

Opportunities

• Increased demand for low-carbon products
• Increased demand for products supporting low-carbon production processes (e.g., EAF refractories)
• Recycling premium

Reporting Standards

Frameworks Used: GRI Standards, TCFD, UNGC

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001

Third-party Assurance: Deloitte Audit Wirtschaftsprüfungs GmbH

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ANKERJET X low-carbon gunning mix
• Ankral LC Series with high recycled material content

Awards & Recognition

• Sustainability Disclosure of the Year award (2022)
• Corporate Environmental Achievement Award (2023)
• 2023 Prestigious Employer Excellence Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy

Environmental Achievements

• Developed ANKRAL LC-Series products with up to 50% recycled content, lowering the carbon footprint by close to 50% compared to standard products.
• Reduced scope 1, 2, and 3 emissions by 15% by 2025 (goal)

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Reprocessing spent refractory bricks is complex due to wear mechanisms and alkali salt infiltration from alternative fuels.
• Scarcity of alternative primary raw materials for refractory production.

Mitigation Strategies

• Developed ANKRAL LC-Series products using recycled bricks from cement rotary kilns.
• Investing €50 million in new technologies to reduce CO2 emissions.
• Developing fully automated identification and separation of used materials for recycling.

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: ISO 14067

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ANKRAL LC-Series

Awards & Recognition

• Not disclosed