CEO Morning Brief

Press Metal Emphasises Sustainability Governance

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Publish date: Tue, 28 Nov 2023, 09:23 AM
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TheEdge CEO Morning Brief

This article first appeared in The Edge Malaysia Weekly on November 27, 2023 - December 3, 2023

We encourage stakeholders to share best practices, experiences and insights, fostering a collective approach towards ESG adoption.” - Gan

Press Metal Aluminium Holdings Bhd won gold at The Edge Malaysia ESG Awards 2023 in the industrial products and services category and in the green transition sector. This is thanks to the company’s efforts in integrating ESG principles into every aspect of its operations and ingraining these into the company’s DNA and strategy, says its head of group sustainability Ivan Gan.

He credits the company’s board of directors, who led the emphasis on governance on sustainability, with key management having an ESG-linked remuneration framework based on key performance indicators (KPIs).

“We also took a proactive approach to sustainability, including embracing technologies and transparent reporting, which have played a significant role in us gaining recognition. Engaging with our stakeholders and aligning our practices with global standards have further strengthened our ESG performance. Ultimately, our long-term vision and steadfast commitment to preserving natural ecosystems drive our ongoing pursuit of sustainability,” says Gan.

Press Metal has established smelters in Sarawak that are powered by hydropower, a renewable energy source. This has allowed the company to significantly reduce the carbon content of its aluminium production. Press Metal received the Aluminium Stewardship Initiative Performance Standard certification for its smelters in Bintulu, Sarawak, and extrusion facility in Guangdong, China.

“We conducted comprehensive regular audits and impact assessments in our journey towards these certifications. We set time-bound targets and implemented action plans with stakeholders’ consultation to reduce carbon emissions, improve resource efficiency and monitor biodiversity and ecosystem [services],” says Gan.

“In the process, we achieved tangible improvements in our sustainability road map and disclosures and intensified our tracking methodologies to enhance circular economy outcomes.”

Press Metal’s smelters in Sarawak are powered by hydropower - Photo by Press Metal

It was crucial not to view ESG performance and sustainability as a one-off effort, he adds. To overcome this, Press Metal ingrained sustainability principles into the company’s organisational structure to ensure everyone shares a common understanding and objective.

Press Metal also strives to implement best practices and adhere to global standards. It is guided by frameworks such as the Task Force on Climate-related Financial Disclosures. To continue prioritising environmental sustainability, the company invests in digitalisation, automation and innovative technologies to enhance operational efficiency, says Gan.

“Our efforts extended beyond addressing climate-related issues to encompass all facets of our business, spanning social and governance aspects. Our management, leading by example, integrated ESG metrics as KPIs,” he points out.

“We recognise that ESG principles encompass more than just emissions. Our commitment spans across the entire group, addressing critical aspects from policy development to operational health and safety, with a keen focus on the interests of all stakeholders.”

Gan hopes for greater collaboration between stakeholders, which include the government, consumers and investors, to further facilitate the adoption of ESG practices. The government and regulators must take the lead to establish dialogues and provide directives and assistance to companies in realising the nation’s carbon neutrality target.

Consumers have the power to make conscious purchasing decisions with more demand for sustainable products, observes Gan. This is seen in the growing recognition of the importance of ESG in investment decisions.

“We encourage stakeholders to share best practices, experiences and insights, fostering a collective approach towards ESG adoption. By working together, we can create a more conducive environment for ESG adoption, enabling a sustainable and responsible future for all,” he says.

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Source: TheEdge - 28 Nov 2023

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