22 DEC 2023

East Capital Best Corporate Governance Award for MYTILINEOS

MYTILINEOS is the 2023 recipient for the East Capital Best Corporate Governance Award. This achievement reflects the Company’s commitment in upholding the highest standards of transparency, accountability, adoption of best practices in corporate governance. In support of that commitment MYTILINEOS,  has voluntarily adopted and implemented the UK Corporate Governance Code since 2019 and for 2023 the compliance level exceeds 80%.

This award also reinforces MYTILINEOS’ commitment to continue setting ambitious goals in corporate governance, with integrity, resilience, and a steadfast commitment to excellence. It also confirms and rewards its choice to consult with stewardship teams of key institutional shareholders at the annual Corporate Governance Roadshow.

For the year 2023, a key milestone was the launch of MYTILINEOS new Responsible Supply Chain Policy, showcasing dedication to ethical and sustainable practices in sourcing and production. Another achievement was the high rate of Social Return on Investment (SROI) of social programs, which achieved an impressive average ratio of 5:1. Furthermore, the overall company's ESG performance was independently assessed from a range of raters and found to be outstanding for another year and this continues improvement is the testament to its dedication to sustainable development and responsible business practices.

As East Capital stated about the Best Corporate Governance Award, over the last few years, MYTILINEOS has transformed into an energy transition powerhouse, decommissioning all coal power plants and investing heavily in renewable energy, with a growing EBITDA at 25% CAGR from 2016-2022. The result is a diversified, robust business with high earnings visibility and strong capital returns, with Return on Invested Capital (ROIC) improving from mid-single digits to mid-teens in the last five years. The company also has a transparent and appropriate policy for returning capital to shareholders, with all-in yield including buybacks at around 6% for 2023, at the current share price.. Finally, the company has been making clear efforts to improve the diversity of its leadership team, recently appointing female as Chief Finance Officer (CFO) and achieving 25% gender diversity at the board of director level (a number we hope will improve further). Robust corporate governance is driving MYTILINEOS energy transition journey, with ambitious emissions reduction targets and a 15% fall in absolute Scope 1 and 2 emissions since 2019, all with a rapidly growing EBITDA. These factors have contributed to an exceptional stock performance, with the stock returning 64% year-to-date and 264% in the last three years.  

MYTILINEOS strives to be proactive and prepared to respond to new European and national legislative initiatives. So over the next year the board will work towards compliance with the highly demanding CS3D (Corporate Sustainability Due Diligence Directive). This work includes drafting a policy on due diligence for MYTILEOS and its value chain as well as training of the directors and the workforce.

For more than two decades, East Capital has been working for positive change, spotlighting outstanding companies within their investment portfolio through the esteemed East Capital Awards. The Best Corporate Governance award goes to companies  which possess a very high standard of corporate governance.

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