The Sustainable Development Committee of Metlen is responsible for overseeing and integrating sustainability parameters into the company's processes and decisions. The Committee meets at least three times a year and on an extraordinary basis, in special cases, to discuss sustainability strategies, evaluate progress, and approve non-financial reports. It also supervises ESG assessments, validates new policies, and approves sustainability initiatives, as well as proposes improvement measures to the Board of Directors. The Committee is regularly informed about the company's progress on CO2 emission reduction initiatives and alignment with international trends and standards such as the EU TAXONOMY, CDP Climate Change, and TCFD recommendations.
Regarding the role of internal management in assessing and managing risks and opportunities related to climate change, the General Directorate of Corporate Governance and Sustainable Development collaborates with all business units to set strategic priorities and support the Sustainable Development Committee. Additionally, the company has established the "Metlen Green Bond Framework" to finance projects that support its climate goals. It has also incorporated climate data into supplier assessments and links executive compensation to the achievement of CO2 emission reduction targets. Sustainability Leaders and Environmental Category Owners in each sector monitor the implementation of emission reduction initiatives and integrate climate-related risks into the central Enterprise Risk Management System.
Climate change is a key element of Metlen's Sustainable Development strategy, linking it with the Global Sustainable Development Goals 7 and 13 for clean energy and climate action. Through its recent structural transformation, the company has strategically positioned itself as a leader in the energy transition and "green" metallurgy, significantly contributing to the global effort to reduce carbon before the end of the 21st century. Metlen's approach includes ambitious commitments and targets to address climate change, the adoption of TCFD recommendations, aligning administrative functions with climate change, and leveraging business opportunities within the energy transition framework.
Metlen is committed to reducing its carbon footprint by 2030 and achieving net-zero emissions by 2050. It has developed a new central Environmental Policy focusing on climate change and the use of energy and natural resources to promote its commitments and manage the climate-related risks and opportunities. Additionally, Metlen voluntarily participates in the global CDP - Climate Change initiative, certifying through annual assessments that it takes coordinated actions to manage climate issues and the potential risks and opportunities that affect its operations.
Metlen analyzes and prioritizes the risks and opportunities associated with climate change to adapt and capitalize on them. The analysis focuses on industrial units and projects in Greece, with time horizons divided into short-term (1-3 years), medium-term (3-10 years), and long-term (10-30 years). The risks include transitional and physical ones, such as compliance with new regulatory requirements and addressing extreme weather events that affect the operation of industrial units.
Metlen's opportunities focus on leveraging energy megatrends and the development of Renewable Energy Sources, with investments in hydrogen production and carbon capture. The company also aims to incorporate secondary aluminum into its product mix and increase the demand for electricity. These opportunities can boost revenue from the sale of low-carbon products and the provision of energy services.
Metlen evaluates the impact of climate risks and opportunities through the analysis of three scenarios: weak policies, current policies, and strong policies (Net-Zero). These scenarios are based on IPCC models and examine different versions of climate changes and their impacts. The company uses the findings to enhance its strategic resilience and adjust its business decisions.
Additionally, it has adopted specific initiatives to reduce CO2 emissions and adapt to climate change, including investments in renewable energy and electrifying the Metallurgy Sector with RES. Its strategy includes managing climate risks, integrating sustainable development, and promoting innovation, ensuring strong economic performance and flexibility in the face of climate change challenges.
Metlen has set a target to reduce its carbon footprint by 30% till 2030, using 2019 as the base year, with the ultimate aim of achieving net-zero emissions by 2050. To accomplish this, the company has developed specialized action plans for each business sector, focusing on innovation and technology. In the Metallurgy Sector, Metlen aims to reduce total CO2 emissions by 65% and specific CO2 emissions per ton of aluminum by 75% till 2030, using renewable energy and increasing the production of secondary aluminum.
In the Energy Sector, the company targets a 50% reduction in specific CO2 emissions per MWh produced by 2030. Metlen recognizes the importance of natural gas as a transitional fuel and invests in energy production with lower carbon emissions. Simultaneously, the company is expanding its renewable energy portfolio, completing and constructing large-scale photovoltaic projects both in Greece and internationally.
To achieve net-zero emissions by 2050, Metlen is exploring the application of new technologies such as the use of low-carbon hydrogen, zero-emission fuels, and carbon capture and storage technologies. The company also plans to increase the production of secondary aluminum, electrify mining operations, and offset residual emissions, thereby contributing to the “battle” against climate change.
