Sustainable Development Report 2019

Key Challenges / Impacts [GRI 103-1a] [GRI 102-15] The Company's electric power generation and aluminium produc- tion activities are the primary sources of its energy consumption and carbon dioxide (CO2) emissions, with significant operating costs. CO2 emissions contribute to the greenhouse effect and reinforce the phenomenon of climate change, with impacts on the natural and man-made environment. Control, stabilization and commitment to reduce the aforementioned gas emissions are among the most important environmental challenges of the Company. Major risks [GRI 102-15] Risk Management / Control Practices [GRI 103-2a] • Any deviations from the legislation in force on industrial emissions or from amendments thereto, may cause additional atmospheric pollution and result in penalties affecting the Company's financial results by forcing it to purchase more greenhouse gas emissions allowances, as well as its capacity to retain existing or to attract new employees, customers, inves- tors or other business partners. • A further increase in the price of CO2 emission allowances (€/t), as this may be shaped by the future EU policies on energy and climate, is likely to affect future compliance costs, either directly or indirectly through the consumption of electricity. MYTILINEOS is committed to stabilizing and reducing emissions, so as to minimize the impact on air quality in the areas where it operates. In this respect, the Company: • Is closely following the relevant developments in the legislation and takes preventive measures in order to minimize any poten- tial adverse effects. • Invests in renewable energy sources and in the use of digital industrial methods in the production stages, with the aim of saving energy, reducing dependence on fossil fuels and reducing emissions of gaseous pollutants. Specifically, in 2020 the prospect is to increase the installed capacity of Renewable Energy Sources having in full operation, throughout the year, the three new Wind Farms with a total capacity of 34.5 MW and putting into operation 1 additional Wind Farm with a capacity of 11 MW. • By expanding its activity in recycling aluminium scrap from end-of-life products and by acquiring the relevant know-how, it greatly strengthens its efforts to substantially reduce the use of raw materials (bauxite) and save energy. • By systematically applying Best Available Techniques (BATs) in its production processes and by using more environ- ment-friendly fossil fuels such as natural gas in nearly all its industrial units, it aims to improve its energy efficiency and reduce dust emissions. • Ensures the proper maintenance and the best possible oper- ation of the machinery in its industrial plants, while investing Energy & Air emissions Materiality assessment process results. Scale: [0—4] where 0 “Not significant” and 4 “Very significant” Impact on Sustainable Development 3,90 Significance for Stakeholders 3,54 Management Approach [GRI 102-11] [GRI 103-2c] The purpose of this disclosure is to provide information and data to MYTILINEOS' Stakeholder groups, so that they can understand how the Company is managing the unavoidable impact of its business activity on air quality. [GRI 103-2b] in their modernization with new technological installations, where feasible. • Monitors on a monthly basis its emissions of CO2, Fluorine and PFCs (Perfluorocarbons) and implements timely corrective actions and appropriate technical interventions to ensure that the respective annual emissions are below its statutory require- ments and are maintained at the lowest possible level. In key production units, such as for example in the Combined Heat and Power (CHP) plant, an online parameter monitoring system has been installed, which automatically activates alarms if the maximum limits set are exceeded. • Carries out checks of other pollutant emissions (NOx, SOx and particles) by means of continuous and periodic sampling mea- surements. In the Aluminium production plant, equipment has been installed to monitor and record dust emissions and take relevant measurements, in accordance with the environmental legislation and the Company's standards. Measures to suppress diffuse dust are also taken, such as maceration of roads and raw materials, as well as tree-planting. • In all its existing industrial plants, it has obtained all statutory greenhouse gas emission licenses. Moreover, appropriate emission monitoring and reporting infrastructure has been deployed and is in operation. • In the production of electricity, due to the nature of the activity, the Company focuses on maintaining the operation of thermal power plants at the highest efficiency levels in Greece, making the best use of natural gas as a primary fuel. MYTILINEOS thermal power plants use natural gas to generate electricity. It is a fossil fuel with a lower carbon content than other fossil fuels, with no release of SO2 and particles, with lower NOx emissions (mainly NO2) compared to the limits allowed by applicable law and low CO2 emissions (70%) compared to lignite plants. • Participates, through the Metallurgy and Electric Power sectors, in the EU Emissions Trading Scheme (EU ETS), according to which from 2013 onwards all procedures for calculating and verifying air emissions comply with the EU ETS Phase III (2013-2020) regulations, under which compliance costs are higher due to the allocation of fewer allowances relative to the actual emissions. The Company might be obliged to undertake significant invest- ments in the future, as a result of the requirement for compliance with the new, amended legislation and the new regulations. Boundaries of the Material Issue [GRI 102-46] [GRI 103-1b] Issue of increased significance to: Where the impacts occur: In the areas where the aluminum and alumina production plants as well as the company's thermal power plants operate. The management of the topic by MYTILINEOS contributes to the Sustainable Development: • Regulatory bodies • Local communities • Sustainable Development Organizations • Academic community • Shareholders • Media representatives in the context of their cooperation with MYTILINEOS. • To increase the percentage of renewable energy sources in the energy mix nationally. • Improving energy efficiency and promoting investment in energy infrastructure and cleaner energy technology. By whomare the impacts caused: The impacts are caused by Business Sector of Metallurgy and Electric Power of MYTILINEOS and its subsidiary KORINTHOS Power, while indirect participation may have key suppliers of the Company. 67 66