Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Social
• Governance

Environmental Achievements

• Reduction in energy and greenhouse gas emission intensities
• Decrease of five percent in total fluoride emissions intensity
• No significant spills or environmental incidents
• Increased volume of process wastes recycled

Social Achievements

• Reduction in Lost Time Injury (LTI) and Lost Time Injury Frequency Rate (LITFR)
• Three-fold increase in training hours
• No community complaints received
• No reported incidents of discrimination based on gender
• Community investment of approximately BD 861,000

Governance Achievements

• Developed and implemented an Enterprise Risk Management (ERM) framework
• Trained 2,309 employees (88 percent of workforce) in anti-corruption policies
• No confirmed incidents of corruption
• No reported cases of human rights breaches

Climate Goals & Targets

Environmental Challenges

• Challenging world market for aluminum
• Diminishing capacity of existing landfill facility for Spent Pot Lining (SPL) disposal
• Heat stress in the workplace

Mitigation Strategies

• Cost reduction programs (Project Titan)
• Investigation into alternative disposal options for SPL (including recycling)
• Implementation of Wet Bulb Globe Temperature (WBGT) index and hydration awareness campaigns to manage heat stress

Supply Chain Management

Responsible Procurement

• Pre-qualification of vendors
• Competitive tendering process
• Formal contract supply agreements with major suppliers
• Preference for local suppliers where commercially possible
• Compliance with ethical positions (including anti-bribery and anti-corruption frameworks)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option (G4 guidelines)

Certifications: ISO 14001 (2015), OHSAS 18001, ISO 9001 (2015)

Awards & Recognition

• British Safety Council International Safety Award (2014, 2015, 2016)
• RoSPA Occupational Health & Safety Awards (Gold) (2014, 2015, 2016)
• National Safety Council awards
• Gulf Aluminium Council Health and Safety Award (First Place) (2014)

Environmental Metrics

ESG Focus Areas

• Decarbonisation
• Green Energy & Aluminium
• Circular Economy & Secondary Aluminium
• Employee Welfare
• Collaboration & Partnerships
• Transparency, Communications & Due Diligence

Environmental Achievements

• SOx intensity dropped (YoY) by 37.9%
• Reduced hazardous waste generation (YoY) by 100%
• Successfully concluded the financial closing for Block 4 of Power Station 5 (PS5), adding 680.9 MW and raising the capacity of PS5 from 1.8 GW to over 2.4 GW
• Commissioned its first ever comprehensive biodiversity study for operations in Bahrain.
• BHD 2.2 million in Environmental Conservation Projects
• 100% of Alba’s Assets are ISO 14001:2015 Certified

Social Achievements

• Alba held a Family Day at Adhari Park in December 2022 for employees and their families
• Alba’s 18 female employees completed a Leadership Development Programme
• Alba’s CEO awarded 65 employees for the completion of Industry 4.0 training courses
• Alba announced 607 employee promotions for 2021– highest ever in Alba’s history
• Alba wins ‘Volunteer Service Award’ from INJAZ Bahrain for the second consecutive year
• Alba signed a MoU with Bahrain Polytechnic to develop higher educational opportunities for Bahraini nationals
• 100% return to work from parental leave

Governance Achievements

• Alba wins Leading Corporate for Investor Relations (IR) and Best Investor Relations Professional - Bahrain at the 2022 MEIRA Conference and Awards
• Alba became the first company in Bahrain to refinance its US$1,247,475,000 existing syndicated loan with sustainability-related targets
• Alba and BAPCO formed a pioneering alliance to drive Green and Sustainable Industrial Development

Climate Goals & Targets

Environmental Challenges

• Understanding Scope 3 emissions and engaging with the supply chain to access data
• Global freight market and geopolitical situation challenges to supply chain resilience

Mitigation Strategies

• Developed a robust monitoring and recording mechanism to capture GHG emissions from across its operations for scopes 1 and 2
• Entered a Memorandum of Understanding (MoU) with Mitsubishi Heavy Industries Ltd (MHI) to explore carbon capture opportunities
• Revised its Code of Conduct to integrate ESG and provide more guidance around related issues
• Increased the number of local suppliers

Supply Chain Management

Supplier Audits: 26 new suppliers screened using labor practices criteria and 28 suppliers screened for environmental criteria in 2022

Responsible Procurement

• Supplier SHE Code of Conduct
• Environmental self-assessment questionnaire
• Social management policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• EU’s emerging carbon border adjustment mechanism (CBAM)

Opportunities

• Development of energy-efficient products
• Leveraging renewable energy

Reporting Standards

Frameworks Used: GRI Universal Standards (2021)

Certifications: ISO 9001, ISO 14001, ISO 27001, ISO 45001, IATF 16949:2016, ISO 22301:2012, ASI Performance Standard Certification, Ecovadis Certification

Third-party Assurance: Deloitte and Touche (ME)

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 12
• Goal 13
• Goal 15
• Goal 3
• Goal 4
• Goal 5
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 16

Alignment of material issues to UN SDG’s and targets detailed on pages 117-119

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• RoSPA Gold Medal Award
• Gulf Aluminium Council (GAC) Health & Safety Award
• Six (6) major National Safety Council (USA) awards
• Green World Award
• Green World Leader Award

Environmental Metrics

ESG Focus Areas

• Decarbonisation
• Green Energy & Aluminium
• Circular Economy & Secondary Aluminium
• Employee Welfare
• Collaboration & Partnership
• Transparency, Communications & Due Diligence

Environmental Achievements

• 82% waste recycled
• 38.5% increase in conservation projects spend
• 8.9% reduction in water withdrawal
• BHD 3.5M revenue from recycled materials
• Zero significant spills or environmental sanctions

Social Achievements

• 86% Bahraini National workforce
• 561,770 training hours delivered
• 24.9% increase in community investment
• 8.5% reduction in Total Recordable Injury Frequency Rate (contractors)
• 15.3% increase in employee wages and benefits

Governance Achievements

• 99% supplier screening against social criteria (procurement)
• 95% supplier screening against environmental criteria (procurement)
• 55% local procurement rate
• Zero substantiated customer privacy complaints
• 7.84/10 customer satisfaction rate

Climate Goals & Targets

Environmental Challenges

• Slight increase in GHG emissions between 2022 and 2023
• Oil leaking into water cooling systems
• Increased emissions to air due to increased productivity and expansion

Mitigation Strategies

• Power Station 5 Block 4 Project to reduce GHG emissions intensity
• Solar Farm Project to generate clean energy
• Replacement of hydraulic system grid guard with a mechanical operated system to reduce water contamination
• Implementation of further projects to optimise energy consumption and deploy more renewable energy technologies

Supply Chain Management

Supplier Audits: 100% of new procurement suppliers screened against environmental criteria; 41% against social criteria.

Responsible Procurement

• Alba Code of Conduct
• Environmental self-assessment questionnaire
• Social questionnaire

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather phenomena, sea-level rise, and disruptions to Alba’s supply chain

Transition Risks

• Regulatory shifts affecting emissions standards and market demand for sustainable products

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Universal Standards (2021), United Nations Sustainable Development Goals (SDGs), Kingdom of Bahrain’s Economic Vision 2030, Central Bank of Bahrain (CBB) reporting requirements, International Financial Reporting Standards (IFRS) on Sustainability Disclosure

Certifications: ISO 9001 (Quality), ISO 22301 (Business Continuity), ISO 14001 (Environmental), ISO 27001 (Information Security), ISO 45001 (Occupational Health and Safety), ISO 18788 (Security Operations), IATF 16949:2016 (Quality Control), Aluminium Stewardship Initiative (ASI) Safety Performance and Chain of Custody Standards, Ecovadis Certification

Third-party Assurance: Deloitte and Touche Middle East (DTME)

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 12
• Goal 13
• Goal 15

Alba’s initiatives align with several UN SDGs, including those related to clean water and sanitation, affordable and clean energy, responsible consumption and production, climate action, and life on land.

Sustainable Products & Innovation

• 6060.HE alloy

Awards & Recognition

• Forbes Middle East’s Sustainability Leaders
• Aluminium Stewardship Initiative (ASI)’s Performance Standard V3 recertification
• Brandon Hall Group Silver Award for Excellence in Best Development Programme for Frontline Leaders
• British Safety Council’s Occupational Health and Safety Audit (four out of five stars)
• RoSPA’s President’s Award
• ISO 18788:2015 certification