2017 was a special year for AMAG. We not only achieved the highest operating result in the company’s history, but also reached an important milestone for the successful future of AMAG with the
commissioning of the new plants in connection with the site expansion project.
Economically sustainable business means generating sustainable, profitable growth through production that efficiently handles goods and resources, while also making viable socio-economic contributions.
Risk aware corporate management reflecting moral and ethical principles secures the company's continued existence and value.
Aluminium is not only distinguished by its lightweight properties, but also by the fact that it can be infinitely recycled – and without loss of quality. Aluminium scrap can be reintroduced repeatedly into the value creation cycle – an advantage both ecologically and economically, as aluminium scrap recycling requires just 5 % of the energy that would be needed for primary metal production, while aluminium scrap also contains valuable alloy elements. The processing and recycling of aluminium scrap, which we have expanded as part of our site expansion project, is essential in this context.
Aluminium scrap represents the most important input material at the Ranshofen site in volume terms. The scrap utilisation rate in the production of foundry alloys and rolling slabs averages 75 to 80 %. The main reasons for this extraordinarily high recycling share on a sector comparison include the employees’ many years of recycling expertise, ongoing investments in advanced, leading edge sorting, processing and smelter technologies, and the high alloy diversity at the integrated location in Ranshofen. Consequently, it is possible to utilise aluminium scrap with highly differing characteristics and chemical composition for high-quality products.
Together with our customers, we are working on closing materials cycles in industrial production, referred to as the closed-loop concept. The aim is to retain aluminium within a cycle that maintains the metal's value.
AMAG owns a 20 % interest in Canada’s Alouette smelter, the largest smelter in North and South America. Harnessing hydroelectric power and thanks to high energy efficiency levels, together with partners around 600,000 tonnes of primary aluminium are produced per year. The 20 % interest secures access to primary aluminium for the Austrian site.
Our objective with regard to our social orientation is to perform our corporate activities in a socially balanced manner, improve our employees' occupational health and safety, and promote their qualifications and further training. We regard ourselves as a part of society, and assume social responsibility. We put this claim and ambition into practice by deploying financial resources, donations of materials and other tangible assets, as well as personal commitment. As a consequence, commitment to people in the region, the positive structuring of our environment, and fostering enthusiasm for technology are matters that go without saying for us.
Since the reporting year 2017, AMAG reports about its substantial economic, environmental and social aspects in an Integrated Annual Report.
Key figures at a glance.
Find out about the current measures of AMAG’s sustainability programme. In this context measures comprise the topics of “Compliance”, “Customer satisfaction”, “Innovation”, “Occupational health and safety”, “Training and education”, “Raw materials”, “Recycling”, “Energy” and “Emissions”.
The GRI Content Index forms the underlying structure for the non-financial statement in the annual report 2017. It lists - according to the requirements of the Global Reporting Initiative (“Core Option”) - all topics regarded as significant for AMAG. The management approaches to the main topics are presented in the respective chapters. An independent third party audited the disclosures published in this statement.
Name of the organisation
AMAG Austria Metall AG
Activities, brands, products, and services
AMAG Austria Metall AG, as the Group holding company, manages business through its four operating divisions – Metal, Casting, Rolling and Service.
Location of headquarters
The headquarters of AMAG are located in Ranshofen, Upper Austria, where the Group produces high-quality recycling foundry alloys and aluminium rolled products.
Location of operations
AMAG also holds a 20 % interest in Canada's Alouette smelter, the largest smelter in North and South America.
Ownership and legal form
AMAG Austria Metall AG has been listed on the Vienna Stock Exchange since April 8, 2011 (stock market symbol: AMAG).
AMAG products are shipped worldwide. The share of Group sales revenue generated abroad amounts to 86 %. Sales activities are handled by the company's headquarters in Ranshofen, supported by sales operations in China, Germany, France, the United Kingdom, the Netherlands, Spain, South Korea, Taiwan, the Czech Republic, Turkey and the USA. Together with additional commercial agencies, the AMAG Group is represented overall in more than 20 countries on four continents.
Scale of the organisation
Financial details see annual report 2017.
Information on employees and other workers
At the Ranshofen site, the number of employees in the 2017 reporting year increased by 6.8 % and amounted to 1,796 (December 31 reporting date/individuals). In terms of geographic distribution, most of the workforce is based in Austria. Around 82 % of the employees at the Ranshofen location are resident in Austria, and 18 % in Germany. A total of 1,780 employees were permanently employed and 16 employees
The activities of AMAG include the production of primary aluminium, recycling foundry alloys and rolled products – each of which have clear strengths in terms of sustainability. The value chain of AMAG starts
Significant changes to the organisation and its supply chain
The new cold rolling mill (including finishing and upgrading plants) in Ranshofen was opened in June 2017. The rolling slab casthouse was also expanded again. The plant expansion extends the aluminium
Precautionary principle or approach
In order to avoid burdens for man and the environment as best as possible, hazards for human beings and the environment are handled at an early stage, and on a forward-looking basis. In this context, AMAG operates certified management systems focused on occupational health & safety, quality, the environment, and energy efficiency, as well as an extensive risk management system and an internal controlling system. Active risk management counters risks entailed in operating activities, including operative, personnel, business, ecological and social risks. Based on the risk strategy approved by the Management Board, the current risk situation is evaluated annually and a catalogue of risk-minimising measures and supervisory tasks is defined. The risk and opportunity report contained in the management report presents more details on this topic.
AMAG is committed to the principles of the Austrian Corporate Governance Code, and consequently to responsible corporate governance and control systems designed to deliver sustainable value creation.
Membership of associations
AMAG was a member of the following associations and lobby groups in 2017:
Statement from senior decision-maker
We are our customers' reliable partner for sustainably produced premium- quality aluminium. Our strategy of profitable growth is accompanied by social and environmentally compatible development. In this context, we endeavour to balance the interests of our business partners and shareholders with those of our employees and the environment. A growing market and a broad positioning with regard to our products' final applications form the foundation of our growth strategy. The numerous positive properties of aluminium provide the basis for this, especially given its increasing importance for applications where weight, technological characteristics, reliability and above all sustainability are vital. Our growth takes place in a specialised market with stringent quality requirements that demand innovation and environmentally compatible, resource-efficient downstream aluminium processing. We attach great importance to operating to the highest moral, legal and ethical standards and to expanding profitably in line with the principles of fair competition. Megatrends such as globalisation, mobility, climate change, digitalisation, resource availability and demographic shifts are presenting companies with new challenges, and also driving development. We are preparing ourselves for this future, based on the principle of "adding value through appreciation", which we consistently pursue. For us, sustainable business means establishing harmony among the three dimensions of economy, ecology and social aspects. Economically, sustainable business means generating sustainable, profitable growth through production that efficiently handles goods and resources, while also making an economic contribution. Risk aware corporate management reflecting moral and ethical principles secures the company's continued existence and value. Ecologically, we aim to efficiently utilise resources, construct production facilities that operate in an environmentally compatible manner and supply our customers with environmentally compatible products. The processing and recycling of aluminium scrap, which we have expanded as part of our site expansion project, is essential in this context. Together with our customers, we are working on closing materials cycles in industrial production, referred to as the closed-loop concept. The aim is to retain aluminium within a cycle that maintains the metal's value. Our objective with regard to our social orientation is to perform our corporate activities in a socially balanced manner, improve our employees' occupational health and safety, and promote their qualification and further training. Expanding production capacities in Ranshofen secures employment in the region medium-term, thereby making an important contribution to regional value creation. With a look to demographic developments, we have launched personnel policy measures such as knowledge and experience transfer through our in-house Alu-Academy in order to retain the expertise accumulated within the company. We cultivate communication with our internal and external contacts to identify significant opportunities and risks for our company. Through active membership in sector associations and R&D networks, intensive collaboration with our customers and the involvement of our employees, augmented by certification according to international norms and standards, we are constantly engaged with the significant topics of our industry and their effects on our environment.
Values, principles, standards, and norms of behaviour
Clear rules of behaviour binding on all employees are included in the AMAG Code of Conduct issued by the plenary Management Board. It was revised in 2017 and issued as part of the guideline system to all employees with the requirement that they take note of its content. The Code of Conduct can be found on the company website together with the compliance rules for suppliers.
Responsibility for sustainability is anchored at Management Board level, being transferred with clearly defined areas of responsibility to a management structure based on proven functions. Annual target agreements with management generate incentives to boost performance, making target attainment measurable. The AMAG Executive Management Team (the Management Board and the management teams of the individual companies) cover sustainability-related topics based on reports and submissions from the functional areas. The corporate governance report presents general information about the company's
List of stakeholder groups
As part of preparing the 2017 annual report, the completeness of the stakeholder groups was analysed and summarised in the five following groups:
Collective bargaining agreements
The proportion of employees to which collective bargaining wage agreements apply amounts to 99 % (excluding respective managing directors and the plenary Management Board).
Identifying and selecting stakeholders
As a globally operating, forward-looking industrial company, AMAG is required to identify topics related to sustainability, to set corresponding targets, and instigate the requisite measures. Communication and dialogue with stakeholders plays a central role in identifying important topics in this context. Depending on the level of intensity, we differentiate three types of stakeholder involvement: information, dialogue and participation. Information refers to unilateral communication, such as through brochures and the company's website. Dialogue, as bilateral communication, occurs as part of ongoing contact with stakeholders. AMAG also participates in lobby groups and sustainability networks, for example. The stakeholders of AMAG include individuals or groups with legitimate interests or requirements related directly or indirectly to the company's operations. Relevant stakeholder groups were defined by an internal working group in 2015. One important criterion in this context was a direct or indirect relationship to corporate activity, and its economic, social and environmental effects
Approach to stakeholder engagement
Stakeholders are consulted continuously, applying different dialogue formats for specific groups. These include questionnaires (ongoing customer satisfaction assessments, broad-based online stakeholder survey, last conducted in 2015), annual target attainment discussions with employees, personal discussions and dialogue at local, national and international level, participation in bodies and associations, topicrelated stakeholder events at the Ranshofen plant, participation in trade fairs and conferences, and communication through social media.
Key topics and concerns raised
A stakeholder survey with representatives from the region was held as part of a dialogue event in the 2017 reporting year. Around 100 stakeholders
Entities included in the consolidated financial statements
The disclosures in the non-financial statement relate exclusively to the headquarter operations in Ranshofen, Austria, and consequently the production site for high-quality recycling foundry alloys and aluminium rolled products. Detailed information about the ecological and social aspects of the 20 % interest in the Alouette smelter held through Aluminerie Alouette Inc. is not presented. In this connection, please refer to the Sustainable Development Report published by Alouette. For reasons of materiality, the sales locations employing a total of 39 staff (see the company profile in the management report) as well as other participating interests are excluded from consideration. (GRI 102-45). The presentation of the shareholdings as of December 31, 2017 as well as the companies included in the consolidated financial statements are presented in section D, Consolidation principles.
Defining report content and topic boundaries
The contents and quality of the report reflect the principles of stakeholder inclusion, materiality, the sustainability context, and completeness. The stakeholders of AMAG were involved in selecting the report's contents. The reported information was selected based on the results of the materiality analysis in accordance with GRI guidelines. In order to determine and prioritise the report contents, AMAG conducted a detailed materiality analysis in 2015 and updated it for the 2017 reporting year. Accordingly, the report covers all those sustainability aspects that either reflect important economic, ecological or social impacts of the organisation or could exert considerable influence over stakeholders. The completeness of the non-financial statement refers to the treatment of the significant topics and how they are demarcated.
List of material topics
The main topics are:
Restatements of information
No material restatements of information.
Changes in reporting
Through an online survey of internal and external stakeholders, a list of 20 relevant topics was established for the 2015 sustainability report to form the basis to prepare this report. On this foundation, current stakeholder engagement was evaluated (customer and stakeholder surveys, dialogue and one-on-one discussions with stakeholders during the reporting period), with any need to update or make additions being reviewed. The topics were also compared with a sector-specific materiality evaluation conducted by the Global Reporting Initiative and RobecoSam and assessed for materiality. As a result, the 20-topic list was confirmed. In order to prioritise the topics, both the relevance for internal and external stakeholders as well as the significance of the effects of AMAG operating activities were gauged, with eight key topics being derived.
The non-financial statement pertains to the 2017 financial year, with the previous annual data from 2016 and 2015 being utilised for comparative purposes.
Date of most recent report
The "Non-financial statement" represents the follow- up report to the sustainability report last published in 2015 and will be published annually from the 2017 reporting year on.
The "Non-financial statement" represents the follow-up report to the sustainability report last published in 2015 and will be published annually from the 2017 reporting year on.
Contact point for questions regarding the report
In the case of questions relating to the content of this report, and dialogue concerning AMAG and its sustainability management, please contact the strategy and communication department (email: email@example.com).
Claims of reporting in accordance with the GRI Standards
This statement follows the standards of the Global Reporting Initiative (GRI) and, as in the last published sustainability report, was prepared in accordance with GRI Standards: Core Option, to ensure a high degree of transparency to shareholders, and enable comparison with other companies.
GRI content index
This GRI content index lists all topics regarded as significant for AMAG.
An independent third party audited the disclosures published in this statement. GRI Standards: Core Option formed the audit criteria. The corresponding audit confirmation
|GRI 103: MANAGEMENT APPROACH 2016|
Explanation of the material topic and its boundary
Described in the respective chapter
The management approach and its components
Described in the respective chapter
Evaluation of the management approach
Described in the respective chapter
Direct economic value generated and distributed
See Annual reportp. 92 f.
|GRI 202||MARKET PRESENCE|
Share of senior management hired from the local community
In terms of geographic distribution, most of the workforce is based in Austria. Around 82 % of the employees at the Ranshofen location are resident in Austria, and 18 % in Germany.
|GRI 204||PROCUREMENT PRACTICES|
Proportion of spending on local suppliers
The sourcing of raw materials, plant and equipment (buildings and machinery), operating resources, energy and services (logistics and IT) constitute an important economic driver within the region. AMAG issued significant orders worth a total of EUR 94 million in Upper Austria in the 2017 financial year, including EUR 53 million in the Innviertel region. Thanks to orders awarded locally and the prominent presence of suppliers' personnel at the site (accommodation, gastronomy, commerce), companies within the region and the Austrian federal state of Upper Austria benefit from the growth path of AMAG.
|GRI 206||ANTI-COMPETITIVE BEHAVIOUR|
Legal actions for anti-competitive behaviour, antitrust, and monopoly practices
In 2017, no proceedings due to anti-competitive behaviour or offences against anti-trust and monopoly law were reported or determined at AMAG
Recycled input materials used
In the recycling area, AMAG pursues the objective of boosting production while keeping the scrap utilisation rate in the 75-80 % range, comprising the purchasing of scrap externally and internally recycled scrap. Scrap utilisation (purchased including scrap recycled from the company's own production) was increased to 347,800 tonnes in 2017. This corresponds to a scrap utilisation rate of 80 %.
Energy consumption within the organisationThe total energy consumption of the Ranshofen site was recorded at 697,400 MWh in 2017 (2016: 625,100 MWh). This is calculated as the consumption of fuel from non-renewable sources (natural gas, diesel,
heating oil and propane) and electricity. Total energy consumption was up by 12 % year-on-year due to the increased output, a higher share of wrought alloys and changes in the product portfolio in favour of higher-strength products which require additional heat treatment. Higher energy demand also reflected the ramp-up of several new plants. The total consumption of electricity at AMAG in 2017 amounted to 223,900 MWh (2016: 195,800 MWh). Heating energy consumption of 34,200 MWh was approximately at the previous year's level (2016: 32,800 MWh). Energy in the form of renewable fuels (wood chips, biodiesel) and cooling or steam energy is not bought in. Heating is generated only partly through heat recovery plants from process waste heat, with the remaining proportion being covered by heating produced in-house from fuels. Energy consumption
Specific energy consumption in relation to production volume of 1,178 kWh/tonne in 2017 was higher than the previous year's level of 1,131 kWh/tonne. The change derives from shifts in the product mix to more energy-intensive products. The specific total energy consumption at AMAG was selected for the key indicator for energy intensity. The energy volume includes all energy products that AMAG consumes (electricity, natural gas, diesel, extra-light heating oil, propane). The annual production volume in tonnes was applied as the denominator.
Water withdrawal by source
We regard it as our task to utilise water efficiently and handle it as sparingly as possible. Most of the water is utilised for cooling in the foundry, rolling and heat treatment processes. Before any water goes into the canalisation system, contaminated effluents are drawn into water treatment plants where they are processed and purified. The effluent volume corresponds, less (evaporation) losses, to the withdrawal volume of drinking and service water. At the Ranshofen headquarters, the water supply is taken from two service water wells and one drinking water well supplied by groundwater. Volumes are calculated from measurements taken directly at the tapping point. Rainwater is discharged directly into the River Inn through the rainwater channel or seeps into the ground at AMAG, while in-house waste water is fed to the Braunau waste water treatment plant. Contaminated operating waste waters are processed and purified in water treatment plants. Before entering the canalisation system, waste water is tested for corresponding quality, and retained if a divergence has arisen. Despite higher production volumes, AMAG has kept its service water withdrawal constant by means of cycle management. Total service water withdrawal in 2017 amounted to 3,486,000 m3 (2016: 3,252,000 m m3). Specific service water withdrawal in 2017 amounted to 5.9 m³/tonne (2016: 5.9 m³/tonne).
Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas
The following nature protection areas with high priority for biodiversity conservation are located in the immediate vicinity of the operating site:
AMAG endeavours to minimise its impact on nature as far as possible and protect the habitat of animals and plants within the environment.
Direct (Scope 1) GHG emissions
Climate-relevant emissions generally correlate with energy consumption. Greenhouse gases derive especially from the gas-fired melting and heat treatment of aluminium alloys, temperature control of fluids,the generation of heating, and the diesel used for the vehicle fleet. Direct emissions ("Scope 1") relate to those CO2 emissions generated on site when burning fossil fuels. In the 2017 reporting year, direct greenhouse gas emissions (Scope 1) increased by 10 %.
Energy indirect (Scope 2) GHG emissions
Scope 2 emissions arise when generating the electricity consumed at AMAG. They are measured based on data from our electricity suppliers about the CO2 intensity of their electricity generation.
Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions
In the case of nitrogen oxides, the specific emissions were recorded at 0.18 kg NOx/tonne, with the total emission for 2017 amounting to 106 tonnes (2016: 101 tonnes). In the case of specific carbon monoxide emissions, marked reductions are evident from 0.23 kg CO/tonne in 2016 to 0.22 kg CO/tonne in 2017 thanks to ongoing plant optimisation (total emission in 2017: 129 tonnes). A decline in dust emissions has also been recorded. Compared with 2.1 tons of total dust still being emitted in 2016, 2.0 tonnes were emitted in 2017.
|GRI 306||EFFLUENTS AND WASTE|
AMAG endeavours to avoid generating waste in line with the Austrian Waste Management Act 2002, prepare waste for reuse, or put it to other uses (e.g. as an energy source). Disposal of hazardous waste (such as used oil, emulsions, workshop waste and filter dust) in line with the statutory requirements is a leading priority. Higher production volumes in the period under review and the plant expansion resulted in an increase in waste volumes to 10,877 tonnes. At the same time, the specific waste volume in relation to production volume rose to 18 kg/tonne in 2017 (2016: 16 kg/tonne).
Non-compliance with environmental laws and regulations
No significant fines or non-monetary sanctions were imposed in the 2017 reporting year due to non-compliance with environmental legislation and directives.
|GRI 308||SUPPLIER ENVIRONMENTAL ASSESSMENT |
|308-1||Environmental criteria have not been examined for new suppliers to date.|
New employee hires and employee turnover
The staff turnover rate has remained at a very low level for some years and stood at 4.6 % in 2017. This includes all staff departures (excluding individuals starting retirement and employment contracts ending due to expiry or probationary periods concluding).
|GRI 402||LABOR/MANAGEMENT RELATIONS|
Minimum notice periods regarding operational changes
With regard to the minimum disclosure periods for organisational changes, AMAG complies with all applicable Austrian laws and orders, and with the provisions of the collective agreement for the iron and metalworking industry. No significant changes occurred during the reporting period that had a material impact on the Group's employees and required disclosure.
|GRI 403||OCCUPATIONAL HEALTH AND SAFETY|
Workers representation in formal joint management– worker health and safety committees
All staff are represented by formal employer-employee committees for occupational health & safety. The efficacy of occupational health and safety is monitored by the safety steering committee under the direction of the Management Board. Its members include the managers of the operating companies, occupational health and safety managers, the occupational medical department, the personnel department and the Group Works Council. This system is supplemented by regular safety audits.
|GRI 404||TRAINING AND EDUCATION|
Average hours of training per year per employee
AMAG employees completed a total of 48,263 training hours in the 2017 reporting year. The average annual education and training per employee amounted to 9 hours in the case of industrial workers and to 16 hours in the case of salaried employees. The high number of 401 training hours in the case of apprentices is due to external training at the Braunau Training Centre.
Percentage of employees receiving regular performance and career development reviews
An important personnel development instrument is the annual appraisal, a consultation between employee and manager to discuss targets and development, which reviews the past year, sets targets for cooperation and training & further development in the coming year, and serves to assess technical and professional performance. Recognition and appreciation of good work play an important role in this context. All employees are obligated to participate in such appraisals, with the exception of apprentices, employees with reasons for absence (such as military/community service, parental leave) and employees with employment contracts shorter than six months.
|GRI 405||DIVERSITY AND EQUAL OPPORTUNITY|
Diversity of governance bodies and employees
Diversity of governance bodies see annual report p. 22 f.
Incidents of discrimination and corrective actions taken
No cases of discrimination were reported in the 2017 reporting year.
Non-compliance with laws and regulations in the social and economic area
No significant fines were paid due to noncompliance with laws and regulations in the social and economic area in 2017.
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