Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, Inclusion, and Belonging (DEIB)
• Governance
• Safety
• Supply Chain Responsibility
• Human Rights

Environmental Achievements

• Reduced overall energy consumption by 14% from 2019.
• Reduced Scope 1 and 2 GHG emissions by 14% from 2019 and 15% from 2010.
• Reduced Scope 1 and 2 GHG emissions intensity by 21% from 2010.
• Reduced water withdrawal by 20% from 2019.
• Trentwood facility reduced water use by approximately 30% and discharges by approximately 40% per packed pound of aluminum produced from 2010 to 2020.
• Zero environmental non-compliance incidents resulting in significant fines (> $25,000).

Social Achievements

• Achieved record safety performance with zero fatalities and significant reductions in TCIR and LTIR.
• Formalized DEIB policy.
• Continued expansion of recruiting strategies to increase diversity.
• Implemented various talent development programs (Kaiser Leadership Program, Front Line Leader Development Program, etc.).
• Formalized Human Rights Policy.

Governance Achievements

• Expanded the duties of the Talent Development Committee (renamed ESG Committee) to include oversight of ESG activities.
• Maintained a highly independent board (85% independent directors).
• Continued proactive shareholder engagement (>50% annually).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on production levels and efficiency.
• Accuracy of Scope 3 emissions data.
• Dependence on primary aluminum with varying carbon footprints.
• Need for new technologies to reduce Scope 1 emissions.
• Securing reliable and affordable clean energy sources.

Mitigation Strategies

• Implementing long-term goals to reduce Scope 1, 2, and 3 emissions intensity by 2030.
• Investing in capital projects to improve efficiency and clean energy use (Warrick facility transition).
• Increasing use of recycled aluminum scrap.
• Working with suppliers to secure lower-carbon primary aluminum.
• Developing processes to utilize a wider range of scrap materials.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Business Conduct and Ethics
• Human Rights Policy
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Increased use of recycled aluminum
• Development of lower-carbon primary aluminum

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: ISO 14001 (at each facility)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Kaiser Select® products (tighter specifications for increased efficiency).

Awards & Recognition

• Warrick facility achieved Aluminium Stewardship Initiative Performance Standard certification.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Talent Development
• Safety Culture
• Diversity, Equity, Inclusion, and Belonging (DEIB)

Environmental Achievements

• Reduced combined Scope 1 and 2 GHG emissions by 2% compared to 2021
• Launched inaugural Task Force for Climate-Related Financial Disclosure Report

Social Achievements

• Launched inaugural Women’s Leadership Program
• Increased ethnic minority representation across salaried positions by 3%
• Reduced Total Case Incident Rate (TCIR) by 24% compared to 2019

Governance Achievements

• Separate roles for CEO and Board Chairman
• 18% of Board comprised of female Directors
• 82% of Board comprised of Independent Directors
• 27% of Board comprised of racially and ethnically diverse Directors

Climate Goals & Targets

Environmental Challenges

• Unprecedented supply chain disruptions
• Inflationary cost pressures
• Historically high labor turnover
• Current reliance on natural gas for aluminum production

Mitigation Strategies

• Climate risk assessment to understand material impacts of climate change
• Investing in capital projects to improve energy efficiency and reduce GHG emissions
• Transitioning to lower-carbon primary aluminum sources
• Increasing utilization of recycled scrap
• Exploring opportunities to increase use of renewable energy

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes (carbon pricing)
• Market shifts towards renewable energy

Opportunities

• Increased demand for sustainable aluminum products
• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: SASB, TCFD, UN SDGs

Certifications: ISO 9001:2015, ISO 14001:2015 (five facilities), ASI Performance Standard (Warrick facility)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Kaiser's initiatives contribute to these goals through various programs and strategies outlined in the report.

Sustainable Products & Innovation

• KaiserSelect® products (energy efficient, less waste)
• High recycled content alloys

Awards & Recognition

• thyssenkrupp Materials, NA Copper and Brass Sales Division Supplier of the Year Award (Trentwood)