PL
Integrated
Report 2021
  • Our strategy
  • ESG and sustainable development in the strategy

ESG and sustainable development in the strategy

An integral part of the Capital Group Strategy are commitments related to the ESG area in the form of sustainable development goals, which comprise the impact on the environment, safety and development of the Company employees, responsibility within the supply chain and engagement in local communities among the key elements of the strategy performance. Preparing the strategy and analysing our impact, we wanted to respond to the key issues raised by the stakeholders, including but not limited to occupational health and safety, dividend policy, risk management, support to local initiatives, development of the local labour market, and activities for the environment.

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Main assumptions in the particular ESG areas

  • Greenhouse gas emissions limitation
  • Development of the recycling processes and effective waste management in all areas of the organisation’s operation
  • Innovativeness and development of products, services and processes compliant with the climate change challenges
  • Caring for occupational health and safety
  • Creation of the image of an attractive employer and innovative sector, and attraction of talents
  • Support to local communities
  • Acting for the benefit of people threatened with social exclusion
  • Development of the idea of educating through sport as a tool to encourage young people to be physically active and to prevent obesity
  • Focus on the Company vision and values
  • Sharing the generated profit with a broad group of stakeholders
  • Respect for human rights, corruption prevention and carrying out a responsible environmental policy within the broad chain of supply

Our goals

Performing the strategy in the ESG area, we plan to achieve 9 major goals. The chart below presents the results generated in 2021 in reference to the performance effectiveness indicators we had selected.

Environmental

Indicators

Unit Indicator
calculation
formula		 Description of the measurement method 2025 goal 2021 performance
(absolute value)
[Mg CO2e/Mg] [(GHG emissions Scope 1) plus (GHG emissions Scope 2)] / Production size
  1. The indicator covers the following emissions:
    • Scope 1, i.e. direct GHG emissions controlled by the Company, covering specifically fuel consumption for process purposes, heating buildings,
      combustion by vehicles, as well as fugitive emissions related to the operation of cooling systems;
    • Scope 2, i.e. indirect GHG emissions which result from the electric energy, heat or steam used to supply or heat buildings, which have been purchased from external suppliers.
  2. Base year: 2016
  3. Calculation method compliant with the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, Revised Edition.
  4. The indicator covers the domestic companies of the Capital Group. In case of a major change in the Group structure, there are possible adjustments in the calculation of the indicator pro rata to the changes.
  5. The value of emission is presented in metric tons, as an equivalent of CO2e.
 -15% -17%

Unit Indicator
calculation
formula		 Description of the measurement method 2025 goal 2021 performance
(absolute value)
[%] (aluminium scrap weight) / (weight of product)
  1. The scrap covers: post-consumer scrap, pre-consumer scrap, and home scrap
  2. LOW CARBON KETY billets manufactured at the Z melting and casting line in the Kety plant of grade 6000 alloys
 75% 68%

Unit Indicator
calculation
formula		 Description of the measurement method 2025 goal 2021 performance
(absolute value)
[%] Number of Aluprof-systems-constructed buildings in the databases of certified buildings in Poland and abroad The database of buildings certified by the Polish Green Building Association [Polski Związek Budownictwa Ekologicznego] (buildings classified based on buildings multi-criteria environmental assessment systems: Breeam, Leed, DGNB, HQE), plus foreign databases. +20% +13%

Unit Indicator
calculation
formula		 Description of the measurement method 2025 goal 2021 performance
(absolute value)
[%] (number of metres square of films and laminates fit for recycling) / (total number of metres squares of films and laminates) Films and laminates fit for recycling specified based on structure analysis.
Total quantity of films and laminates [m2] based on sales report.		 +5% +1.3%

Social

Indicators

Unit Indicator calculation formula Description of the measurement method 2025 goal 2021 performance (absolute value)
number Number of injuries / time worked x 200,000 The number of injuries per 100 workers. The constant of 200,000 is calculated as follows: 100 employees work 40 hours a day 50 weeks a year. <1 1,2

Unit Indicator calculation formula Description of the measurement method 2025 goal 2021 performance (absolute value)
[%] Number of employees leaving the company / average headcount The number of employees covers those employed on an employment contracts. -5% y/y -4% y/y

Unit Indicator calculation formula Description of the measurement method 2025 goal 2021 performance (absolute value)
project Number of projects in the given year Individual projects within the subsequent editions of the ‘Together with the Group’ grant programme 150 31

Management

Indicators

Unit Indicator calculation formula Description of the measurement method 2025 goal 2021 performance (absolute value)
[%] Value of dividend paid / value of consolidated net profit attributable to owners of the parent
  1. The value of dividend passed by the Annual General Meeting
  2. Consolidated net profit attributable to owners of the parent published in the consolidated annual financial statements for the year to which the divided refers
 60-100% 100%

Unit Indicator calculation formula Description of the measurement method 2025 goal 2021 performance (absolute value)
[%] Certified suppliers / list of suppliers List of suppliers – accepted group of strategic suppliers, defined for each business segment of the Capital Group 100% 50%

Goals achievement

Most of the main goals have been achieved, in compliance with the five-year Strategy period. Exception is the higher than expected level of staff rotation. The effects of our work within the broadly understood HR policy are measured with the staff rotation ratio (i.e. the number of employees leaving the company to the average headcount), and reducing it by 5% y/y. In 2021 the average for the Capital Group was 11.5%, which means that we have not achieved the planned result of 11.37%. This is, however, a slight, only 1% deviation from the assumptions, which does not have a significant impact on the achievement of long-term objectives in that area. In 2022 we plan activities to improve the competitiveness of the companies on local markets, which will affect the aforesaid level of staff rotation.

For some goals the progress is faster than expected – for example, in the first year of the Strategy implementation we managed to accelerate the process of engaging suppliers. It was possible thanks to intensive work in that period. Additionally, the number of environmentally certified buildings in the Aluprof brand portfolio grew. It is a clear confirmation that the building industry of which the ASS is a part, has perceived the systematic growth in the investor’s awareness as regards ecology, change of climate and the need to build in a sustainable manner, based on environmentally- and human-friendly materials. Aluprof products comply with the idea of circular economy (i.e. materials fit for recycling), where aluminium perfectly fulfils that role.

Climate

One of the objectives, particularly important from the point of view of influencing climate change, is the reduction of greenhouse gas emissions, and it has been achieved in compliance with the assumptions, which mobilises us to make internal decisions regarding the objective update.
Outlook – our green trends
Environmental responsibility