ESG results
| Indicator | Unit | Indicator calculation formula | Description of the measurement method | Goal 2025 | Performance 2022 |
|---|---|---|---|---|---|
| Environmental | |||||
| Reduction of the intensity of greenhouse gas emissions | [Mg CO2e/Mg] | [(GHG emissions Scope 1) plus (GHG emissions Scope 2 location based)]/Production size | 1. The indicator covers Scope 1 and Scope 2 emissions.
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. Value of emission reported in metric tons, as an equivalent of CO2e. |
-20% | -18.9%*** |
| Share of aluminium scrap in the products extruded from low-emission billets | [%] | (weight of aluminium scrap)/(weight of product) | 1. The scrap covers: post-consumer scrap, pre-consumer scrap, and home scrap
2. Billets manufactured of grade 6000 alloys at the Kęty plant ‘Z’ melting and casting line |
75% | 70.5%* |
| Increase in the number of Aluprof-systems-constructed buildings with environmentally-friendly certificates | [%] | 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% | +32%** |
| Growth of the share of the manufactured packaging films and laminates fit for recycling. | [%] | (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% | +2.8%** |
| Social | |||||
| Improvement of occupational health and safety – Total Recordable Incident Rate (TRIR) | 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 | 1.30* |
| Staff turnover | [%] | Number of employees leaving the company / average headcount | The number of employees covers those employed under employment contracts | -5% r/r | +8% r/r* |
| Performance of social initiatives within the ‘Together with the Group’ programme | project | Number of projects in the given year | Individual projects within the subsequent editions of the ‘Together with the Group’ grant programme | 150 | 73** |
| Management | |||||
| Consequent dividend policy | [%] | 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% | 85%* |
| Engagement of suppliers in the sustainable development of the Capital Group | [%] | Certified suppliers / list of suppliers | List of suppliers – accepted group of strategic suppliers, defined for each operating segment of the Capital Group | 100% | 75%** |
** Performance incrementing since the Strategy implementation date.
*** Percentage change in GHG emissions compared with the base year.
Within the Strategy of the Capital Group of Grupa KĘTY S.A., there have been developed action plans responding to the market and customer needs, guided by the responsible and sustainable development objectives. We define ESG goals as the process of improving and adapting the Capital Group to the changing market environment and expectations in terms of environmental, social and governance impact. We welcome progress and analyse deviations.
In the area of our environmental impact and climate change prevention, we are satisfied to report performance compliant with the Strategy progress, and even exceeding the attainment of two strategic goals. After the two years of the Strategy implementation, the Aluminium System Segment exceeded the 5-year goal – Increase by 20% in the number of Aluprof-systems-constructed buildings with environmentally-friendly certificates compared to the base year 2020 – reaching the level of 32%. This is mainly due to the green transformation we are seeing in the construction industry and the change in the investors’ perception of certification, which is becoming a market standard for an increasing number of investments. We see the dynamic development of sustainable construction as an opportunity in the development of our products in that area and the active participation of the Aluprof brand in the architecture of the future – in 2023, decisions will be made regarding the new target value for this indicator or a new goal will be defined.
A similar situation occurred with regard to the climate impact goal. In 2022, due to the 17% reduction in the GHG emissions intensity compared to the base year value, the target was updated from -15% to -20%. In view of the -18.9% reduction in GHG emissions intensity achieved for domestic companies after 2022, the achievement of the target appears not to be compromised.
The 2022 performance and achievement of strategic coals for the other two environmental indicators (Share of aluminium scrap in the products extruded from low-emission billets, and Growth of the share of the manufactured packaging films and laminates fit for recycling) raise no concerns, as both of the processes that perfectly fit the circular economy concept are subject to continuous supervision.
We have been gradually increasing the proportion of aluminium scrap recovered in the remelting processes, whereas the Flexible Packaging Segment has been adapting its product offer to the requirements of its business partners, such that the packaging produced has the least possible impact on the natural environment.
In the social area, we have been consequently performing local projects under the ‘Together with the Group’ programme. In the two Strategy years there were 73 such projects carried out, which proves that our commitments to local communities have been performed. As regards safety (TRIR – the number of accidents per 100 employees), we achieved the result of 1.30 in 2022, which means an 8% growth compared to 2021. We still support the strategic goal of <1 and in order to achieve it we have been planning to implement additional actions in the subsequent years.
A major deviation from the set-out goal (ratio reduction by 5% y/y) was recorded in 2022 for staff turnover. Owing to the Covid pandemic, the value of in 2020 was disturbed compared with the preceding years, therefore, 2019 was assumed as the base year. In that manner the goal for 2022 had been set as 10.8, whereas the realisation was at the level of 12.3. This forces the Capital Group to carry out a review and take additional actions. A key tool for the staff turnover ratio are the exit interviews with the employees leaving the organisation. We have been analysing their opinions regarding working conditions and company offer, and based on that we have been improving our working environment.
In the management area, we complied with the dividend payment ratio in 2022, and implemented the Code of Conduct for Suppliers of the Capital Group of Grupa KĘTY S.A. in our relations with some more suppliers. During the year, due to the discontinuation of cooperation with suppliers from Russia and Belarus as a result of the conflict in Ukraine, but also for natural reasons resulting from the current operations (change of supplier, diversification of purchases), the list of suppliers was updated in each of the operating segments. Still an unchanging element is the aim to cover as much turnover as possible with sustainability principles. In 2022, the Code standards were implemented in cooperation with a greater number of suppliers, with the total reaching 565 as at 31 December 2022.