ESG and sustainable development activities

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, applicable to all Capital Group companies.

Apart from the business objectives, the Capital Group has also determined a series of tasks and parameters within the ESG area, which are to be implemented and monitored in the Strategy period. These include:

20 %

reduction by 20% of the value of greenhouse gas emissions per production unit⁽¹⁾,

75 %

increase to 75% of the share of aluminium scrap in the products made of soft alloys, extruded from lowemission billets

5 %

growth of the share of the manufactured packaging films and laminates fit for recycling by 5%⁽²⁾,

20 %

increase by 20% in the number of certified energy-efficient, passive buildings constructed with Aluprof
systems⁽²⁾,

5 %

improvement of the status of an attractive employer measured by the reduced year over year staff turnover
ratio by 5%

150

performance of 150 projects for local communities within the ‘Together with the Group’ voluntary actions
and grants programme

sharing the generated profit with shareholders in accordance with the dividend policy,

covering qualified suppliers with the provisions of the Suppliers Code of Conduct⁽²⁾,

reduction of the Total Recordable Incident Rate (TRIR )⁽³⁾ to less than 1 in the area of occupational health
and safety⁽²⁾.

⁽¹⁾ Base year 2016, Scopes 1+2 (direct and indirect emission).
⁽²⁾ Base year 2020.
⁽³⁾ Total Recordable Incident Rate is defined as the number of injuries per 100 workers at a respective employer during a one-year period.

When analysing the impact of the Capital Group, we have tried 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, as well as the challenges of the 21st century and the ever changing environment, such as prevention of climate change and protection of human rights.

Below presented are the main assumptions in the particular ESG areas:

E	S	M
Greenhouse gas emissions limitation	Caring for occupational health and safety	Focus on the Company vision and values
Development of the recycling processes and effective waste management in all areas of the organisation’s operation	Creation of the image of an attractive employer and innovative sector, and attraction of talents	Sharing the generated profit with a broad group of stakeholders
Innovativeness and development of products, services and processes compliant with the climate change challenges	Support to local communities	Respect for human rights, corruption prevention and carrying out a responsible environmental policy within the broad chain of supply
	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

ESG results

Major aspects	Aspect impact		Impact significance	Method of management
Major aspects	in-house	external	Impact significance	Method of management
Environment
Greenhouse gas emissions limitation	x	x	We assume full responsibility for the influence of our actions on the environment. By way of greenhouse gas emissions we exert a real influence on climate change.	We have set out a strategic indicator, namely reduction of GHG emissions intensity. A full description of our actions as regards emissions reduction is provided in ‘Environmental reposibility’. At the same time, owing to the importance of the subject, the attainment of the non-financial indicator has been made an element of the variable remuneration of the Management Board of Grupa KĘTY S.A.
Development of recycling processes and effective waste management in all areas of the organisation’s operation	x	x	Our basic raw material is aluminium, a metal which may be repeatedly recycled without any loss of properties. By way of improving processes, we can have real influence on aluminium recycling increase. The Capital Group activities are carried out in three operating egments, where we perform many processes and use various technologies, but in each of them we are guided by the effective circular economy concept.	Our approach to aluminium recycling processes, waste management and circular economy is described in section ‘Environmental reposibility’.
Innovativeness and development of products, services and processes compliant with the climate change challenges	x	x	Know-how is a major non financial asset of the Capital Group. In developing our products we are guided by the expectations of our customers, simultaneously caring for sustainability.	A description of our operating segments as well as their research and development activities may be found in section ‘Operating activities’.
Social
Care for occupational health and safety	x		The Capital Groupemploys nearly 5,500 people, out of which 70% production workers, where there is an increased risk of accidents at work. We have a real influence on building safe working environment by way of taking actions aimed at prevention of occupational hazards and improvement of staff awareness.	We have set out a strategic indicator, i.e. Total Recordable Incident Rate. A full description of our actions as regards OHS is provided in section ‘Occupational health and safety’. At the same time, owing to the importance of the subject, the attainment of the non-financial indicator has been made an element of the variable remuneration of the Management Board of Grupa KĘTY S.A.
Employment attractiveness based on the image of an innovative sector and attraction of talents	x	x	The Capital Group is a cluster of 5,500 people. We have a real influence on their development. We have an ambition to create and develop a team of engaged and professional employees	Our approach to HR processes, including training and additional benefits, as well as transparent recruitment processes, has been described in section ‘Employees’. We measure the effects of our actions with the staff turnover ratio.
Support to local communities	x	x	The Capital Group engages in the communities of the areas where its companies are located. We have a real influence on our environment. We want to create positive change and, therefore, together with our employees who form local communities, we respond to challenges and needs and contribute to the region’s development.	We have set out a strategic indicator, namely the number of local projects. The full spectrum of our engagement and local initiatives has been described in section ‘Community engagement’. At the same time, owing to the importance of the subject, the attainment of the non-financial indicator has been made an element of the variable remuneration of the Management Board of Grupa KĘTY S.A.
Care for the people threatened with social exclusion	x	x	It is an important aspect we have identified when creating the corporate foundation and selecting the directions for the foundation’s activities. Through the corporate foundation we prevent local social problems.	The activities of the ‘Grupa Kęty for the Children of the Podbeskidzie Region’ Foundation have been described in section ‘Community engagement’.
Development of the idea of educating through sport, as a tool to extend the physical activity of children and youths and to prevent obesity – the 21st century disease	x	x	Sports means discipline, fair play, principles, and consequence – all values we care for in business. Engaging in the idea of education through sport, we have influence on improving the physical activity of children and youths and to preventing obesity.	The full spectrum of our engagement and sports activities has been presented in section ‘Community engagement’.
Governace
Responsibility within the supply chain	x	x	We have a broad perception of business. We care that the issues important to us and the values we create are respected by our suppliers and that also follow them. We want to run a cohesive and balanced business.	The activities stemming out from the Code of Conduct for Suppliers of the Capital Group of Grupa KĘTY S.A. are presented in section ‘Responsibility within the supply chain’.
Development of business and allocation of the generated profit among a broad group of stakeholders	x	x	We are guided by the idea of caring for the entrusted assets. By way of taking management decisions, we have a real influence on the value of the shares of our Company and the generated financial results.	Dividend Policy, Remunration Policy,Tax Policy, donations to the ‘Grupa Kęty for the Children of the Podbeskidzie Region’ Foundation, community engagement.

Development strategy of the particular operating segments

Sustainable development goals in the operations of the Capital Group KĘTY S.A.