Sustainability strategy

The company’s successful development and growth over recent years shows that commercial success and sustainability go hand in hand. AMAG pursues a growth strategy within an expanding market with its increasing specialisation based on a sustainable supply of input materials, relying on long-term customer relations, a stable ownership structure and qualified employees. The new rolling mill in Ranshofen is the most modern in the Western world. Over the past ten years, around one billion euros has been invested in AMAG’s corporate development and growth track.

 

In 2019, the “Al4future” strategy process was launched in order to identify upcoming challenges in time and in order to derive appropriate measures, taking into consideration the growth course the company has adopted. The strategy process has shown that AMAG is on the right track. AMAG thereby remains true to its basic orientation, concentrating on its strengths in the casting, rolling, heat Treatment and recycling of aluminium. The aim is to continue to grow, together with its customers, as a reliable premium supplier of special products. Enhancing the vertical depth of manufacture and internationalisation comprise the strategic action areas for minimising the risks arising from global trade policy developments.

 

According to current forecasts, demand for aluminium rolled products and primary aluminium will ilncrease continuously in the coming years. The automotive and aviation industries represent special growth drivers in this context. Demand for lightweight construction solutions to reduce energy consumptionand CO2 emissions is the main growth driver in the automotive sector. The aviation industry also relies on aluminium and expects a significant increase in passenger numbers over the next twenty years.

Aluminium offers material properties such as corrosion resistance and high strength at low weight – benefits that are in demand in this sector. Areas of relevance for AMAG such as food and pharmaceutical packaging, buildings (façades, lighting), electronics as well as sports and leisure equipment are also to be highlighted. Furthermore, growth in mechanical and plant engineering as well as in cooling and air-conditioning equipment is indirectly connected to such areas.

 

In addition to the focus on specialty products, the expansion of recycling expertise will continue to shape AMAG’s successful course in the future and will gain further significance for the company and its stakeholders. AMAG has been very well positioned in this area for many years. With a scrap utilisation rate of 75-80 %, AMAG is the largest aluminium recycler at a European location. The Expansion of the recycling centre as well as research & development work in the recycling area (key concept: “science of dirty alloys”) are essential factors in maintaining the high scrap utilisation rate.

Digitalisation and expertise building are important elements for meeting future challenges. In order to make targeted progress in this area, the main action areas were defined and summarised in Digitalisation Compass. AMAG is currently working through these action areas step by step.

 

In 2018, AMAG underwent a comprehensive review in accordance with the ASI Performance Standard (ASI = Aluminium Stewardship Initiative). AMAG was the first integrated recycling, foundry alloy and rolling mill site worldwide to confirm the highest sustainability standards at its Ranshofen site. For 2020, AMAG has set itself the goal of certification in accordance with the ASI Chain of Custody Standard (CoC). This certification forms the basis for the sale of so-called “ASI Aluminium”.

Aluminium which may be sold as ASI Aluminium guarantees environmentally compatible and socially acceptable production and processing throughout the entire process chain, from extraction of the raw material to the high-quality end product.

 

AMAG’s efforts in the energy sector earned the company a public award in 2019. With its “optimal energy use through heat recovery” project, AMAG won the Energy Globe 2019 award in the “Air” category. With 187 participating countries, the Energy Globe is the world’s most important environmental award.

 

The fact that sustainability is a continuous process is illustrated by the sustainability program, which links strategic goals with specific measures to continuously improve corporate performance.

 

 

 

Contribution to achieving Sustainable Development Goals (SDGs)

In September 2015, the United Nations General Assembly adopted Agenda 2030 for sustainable development as well as 17 global targets.

With these goals, the international community aims to promote global economic progress and social justice while respecting our planet’s ecological needs. The goals provide a general framework for companies to make a positive contribution to economic and social development. Each target has specific sub-goals to be achieved by 2030. Governments, business and civil society have a role to play in meeting development challenges.

AMAG is aware of its responsibility to minimise the negative effects of corporate activities and maximise the positive effects on the environment. The aluminium industry is expressly committed to pursuing SDGs. European Aluminium (EA), of which AMAG is a member, has, in the course of preparing the Sustainability Roadmap 2025, identified key SDGs and thematic areas where the aluminium sector either has a significant economic, ecological and social impact or exerts a crucial influence on its stakeholders’ assessments and decisions.

As part of the further development of its sustainability management, AMAG focusses on those SDGs that can be significantly influenced by corporate activities. The strategy of profitable and sustainable growth forms the foundation.

Sustainability management

Sustainability forms part of AMAG's business model and corporate strategy. Responsibility for this lies at Management Board level and is transferred to the management structure with clearly defined areas of responsibility. As the uppermost supervisory body, the Supervisory Board performs ist duties in relation to the company's economic, ecological and social responsibility. The AMAG Executive Management Team (Management Board and the managing directors of the individual companies) cover sustainability-related topics based on reports and submissions from the specialist departments. The Management Systems specialist area coordinates sustainability management with the areas of Occupational Safety, Quality Management, Energy, Environmental & Risk Management, Continuous Improvement Process and Sustainability. The head of this area reports to the Management Board. The heads of the specialist areas are responsible for implementing the sustainability goals.

Sustainability management at AMAG is based on the following principles:

  • Prevention: In order to avoid burdens for human beings and the environment as best as possible, related hazards are dealt with at an early stage, and on a forward-looking basis. In this context, AMAG operates certified management systems focussed on occupational health & safety, the environment, and energy efficiency, as well as an extensive risk management system and an internal controlling system.
  • Efficiency: When developing plants, processes and products, AMAG factors in resource and energy efficiency, as well as the minimisation of environmental impacts. AMAG thereby orients itself to the guiding sustainability principle of “adding value through appreciation”.
  • Balance: The broad positioning by sector and products, as well as in terms of the geographic

    markets AMAG supplies, ensures a high degree of balance and stability. Comprehensive sustainability activities in the various corporate divisions ensure that sustainability management functions systematically and is continuously improved.

  • Materiality: AMAG focusses on its operating activities’ significant economic, environmental and social effects, and maintains constant dialogue with its stakeholders in order to ascertain important topics.

  • Completeness: The principles of transparency, up-to-date status and completeness enjoy top priority in internal and external corporate communication. AMAG communicates promptly and comprehensively with relevant stakeholder groups about key topics relating to its Business activities.

  • Flexibility: AMAG perceives changes to its economic and social environment, as well as new

    challenges posed by customers and markets, as an opportunity, and meets them with great flexibility.

  • Innovative spirit: Researching technologically challenging questions, the development of marketable applications, and continuous process and product improvement are an expression of AMAG’s innovative spirit.

Since the 2017 reporting year, we have published a summarized non-financial statement in our management report, thereby fulfilling our reporting obligation in accordance with the Sustainability and Diversity Improvement Act (NaDiVeG). It summarizes the essential information for AMAG on the five required aspects of environmental issues, employee issues, social issues, respect for human rights, anti-corruption and bribery.

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