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Sustainability strategy

AMAG’s business model illustrates how innovation and sustainability go hand in hand. Through investment and innovation, AMAG has become the most modern aluminium rolling mill in the western world. Digitalisation and the circular economy are innovation drivers for profitable development and growth. Tailored product solutions are used to help customers further improve their products’ carbon footprint. The innovation topic is also emphasised in all process steps and in site management. For example, with the construction of the Smart Factory in the “Center for Material Innovation – CMI” technology centre, sample production and testing will be fully automated and completed in the first half of 2022.

AMAG has set itself ambitious sustainability targets. In the course of updating the sustainability program, sustainability was further anchored within the core business, with strong and measurable targets and clear responsibilities and processes being defined for the six spheres of action: environmental protection, employee relations, corporate management, customer relationships, social commitment and the value chain. With a decarbonisation roadmap developed in 2021, AMAG is actively committed to climate protection and has set itself the ambitious goal of achieving CO2 neutrality by 2040. Austria is thereby aiming for climate neutrality ten years earlier than envisaged by the European Green Deal. The AMAG approach to decarbonisation consists of the three stages of recycling, energy efficiency and substitution of fossil fuels with renewable forms of energy. This will expand recycling activities accordingly, and make a valuable contribution to the implementation of the EU’s Green Deal, which focuses on the circular economy. Furthermore, starting from an already very advanced level, additional energy-saving measures will be implemented in the future and fossil energy sources will be replaced by renewable energies.

However, extensive preparations and numerous research projects will be required over the coming years before implementation and investment in facilities and infrastructure in Ranshofen can commence. Nonetheless, the issue of sustainability also plays an important role for AMAG beyond its own factory gates. With recertification according to the ASI Performance and ASI Chain of Custody Standard (CoC) in 2021, the entire product portfolio can be offered as ASI-certified material, including the entire supply chain – from bauxite mining and recycling, and all the way through to the finished AMAG semi-finished product. Sustainable management is also playing an increasingly important role for investors. To this end, ESG criteria were anchored within the Sustainability Compass. The first place AMAG achieved in the “Effective Sustainability Communicator Award 2021” of the Cercle Investor Relations Austria (CIRA) is a further sign of confidence from the financial markets, and underpins the company’s transparent and open sustainability communication. The COVID-19 pandemic continued to present constraints and challenges during the 2021 reporting year. AMAG responded quickly and decisively to this crisis. For example, work continued to focus on securing competitiveness, safeguarding jobs and protecting employee health. Taking responsibility also means drawing on the lessons learned from the COVID-19 pandemic. This applies to employees, for example, insofar as digitalisation has been advanced in the area of training and education. The crisis team successfully coordinated the measures defined in the prevention concept and ensured employee health protection. Through consistent implementation of the occupational health and safety program, a TRIFR (Total Recordable Injury Frequency Rate) of 0.8 was achieved, well below the target of < 1.5. High demand from various industries was successfully met, while at the same time, planned plant modernisations were implemented according to schedule.

External accreditation

  • “EFFECTIVE SUSTAINABILITY COMMUNICATOR AUSTRIA 2021” AWARD: Due to the increasing importance of sustainability aspects for investors and capital market participants, this year for the first time the “Effective Sustainability Communicator Austria Award 2021” was presented at the CIRA (Circle Investor Relations Austria) annual conference. AMAG ranked first among all participating ATX companies and was acknowledged as “Effective Sustainability Communicator 2021” for its holistic and transparent sustainability reporting.
  • MEMBER OF THE “VÖNIX SUSTAINABILITY INDEX”: The “VÖNIX” is the benchmark sustainability index of the Austrian stock market. This index includes those Austrian companies listed on the Vienna Stock Exchange that are leaders in terms of ecological and social action and performance. The “VÖNIX” is reconstituted in mid-June of each year, and this composition is then valid for one year. AMAG has been consistently included in the “VÖNIX” since the 2014/2015 rating.
  • "SUSTAINALYTICS RATING"  SUCCESSFULLY COMPLETED: AMAG’s sustainability activities are regularly evaluated by external organisations. An ESG risk rating was performed by Sustainalytics for the first time in July 2021. This rating relates to factors that are identified as the significant ESG issues for a sector, such as environmental performance, resource conservation, human rights compliance and supply chain management. With a score of 22.6, AMAG ranks among the best companies in the aluminium industry.

Environmental and social certifications

 As a global company, we are committed to the highest environmental and social standards:

 

  • OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT: The new ISO 45001 aims to integrate occupational health and safety effectively into corporate practice. This globally applicable standard defines requirements for occupational health and safety management systems
  • ENERGY MANAGEMENT: The aim of an energy management system per ISO 50001 is continuous improvement of a company’s use of energy. The standard describes the requirements for a company to introduce, operate, and continuously optimize an energy management system.
  • ENVIRONMENTAL MANAGEMENT: ISO 14001 has served as a globally recognized basis for environmental management systems since 1996, and covers all aspects of continuous improvement of environmental performance. It specifies the processes of establishing, implementing, maintaining, and continuously improving an environmental management system.

Contribution to achieving Sustainable Development Goals (SDGs)

AMAG supports the achievement of targets for sustainable development adopted by member states of the United Nations in 2015. The 17 targets represent a milestone on the global path to a more sustainable future, offering companies a universally applicable framework in order to make a positive contribution to the growth of the economy and development of society. AMAG commits to implementing this agenda with innovative, sustainable products, dedicated environmental management and a responsible value chain.

 

SDG 4: Comprehensive, targeted training and development programs to attract skilled and young talent for the future

SDG 7: Procurement of electricity from renewable energy sources, use of heat recovery, improvement of the energy content of scrap for the melting process, use of waste heat and optimisation of input materials as part of R&D projects, installation of a rooftop photovoltaic system, decarbonisation project

SDG 8: Employee development, continuous learning, code of conduct, ensuring employee rights and cooperation with trade unions and employee representatives, responsible procurement management, investments in the Ranshofen site, R&D and customer orientation, Continuous Improvement Process (CIP)

SDG 9: Investments in the Ranshofen site (including expansion of recycling expertise), product development, innovation in production (including digitalisation)

SDG 12: Ramp up the circular economy, retain a 75 – 80 % scrap utilisation rate, promote the use of aluminium products to achieve CO2 savings (especially lightweight construction in the transport sector), responsible procurement management

SDG 13: Retain a 75 – 80 % scrap utilisation rate, utilise renewable energy sources, energy efficiency, energy savings through innovative technologies, decarbonisation roadmap