Sustainable Development Report 2019

MYTILINEOS owns coastal industrial facilities and operates, through the EPC & Infrastructure Projects sector, in countries where the effects of climate change are more intense. Through its mining activity related to natural resources, the Company may also face a range of challenges and problems caused by the changes in the climate. The key challenge for the Company is to assess the vulnerability of its business activities to climate change, considering existing and expected climate events and the impacts expected to occur. Major risks [GRI 102-15] Risk Management / Control Practices [GRI 103-2a] In the context of the above challenges and depending on the results of the evaluation, in the coming years the Company may have to take action in order to ensure its adaptation to climate changes which are considered important for the operation of its industrial plants. Such action will ensure that the means will be in place to address events including, among others, the destruction of infrastructure due to extreme weather conditions, the reduc- tion of available water resources due to lower rainfall, the loss of working days due to extreme temperatures, as well as the need to integrate climate change into the planning, monitoring and operation of mining activities, and to reinforce the measures and actions for environmental protection and restoration, for all of which the Company will have to incur with direct financial and economic impacts. Given that MYTILINEOS' future investments will be largely determined by its climate change strategy, the Company has already incorporated in its strategic priorities the implementa- tion of a study to identify the risks and opportunities of climate change on its activity. By 2022, the Company plans to adapt to the climate-related financial risk disclosures framework, by following the recommendations of the Task Force on Climate- Related Financial Disclosures (TCFD) regarding the analysis of the risks and impacts of climate change, as well as to join the CDP – Climate Change international initiative in 2021. Adaptation to climate change Materiality assessment process results. Scale: [0—4] where 0 “Not significant” and 4 “Very significant” Impact on Sustainable Development 3,00 Significance for Stakeholders 3,52 Management Approach [GRI 102-11] [GRI 103-2c] This purpose of this disclosure is to inform Social Partners about the steps to be taken by the Company in connection with its adaptation to climate change or, in other words, with the reduction of its vulnerability to the climate change phenomenon, by focusing on the following three main areas of work: (a) examining future climate forecasts at local level, to identify potential risks and the possibility of integrating the issue of climate change adaptation into its business decision-making, (b) avoiding or minimizing climate-change-related damage and, where possible, taking advantage of opportunities to adapt to changing circumstances, and (c) implementing measures to respond to existing or projected impacts. [GRI 103-2b] Results [GRI 103-3a-ii] The main activities which have already been initiated and seek to ensure the adaptation of the Company's activities to climate change are the following: • In the Electric Power & Gas Trading sector, the major risks have been assessed and no apparent need to adopt specific targeted measures has been identified. In what concerns the Company's thermal plants, Emergency Response Plans have been developed to address the occurrence of extreme natural phe- nomena (heatwave, frost, storm, flood etc.), while special flood studies have also been carried out where streams are located in the vicinity of the Company's power plants. With regard to the operation of RES plants, wind turbines are fitted with safety systems which in the event of very strong winds switch the turbines off and move their blades to a secure position, while solar collector panels have hail resistant by manufacture. • In the EPC & Infrastructure Projects sector, appropriate protec- tion measures against extreme weather events are adopted and implemented within the boundaries of the Company's installations and work sites, to ensure that all conditions result- ing in deviations from the sector's smooth operation are dealt with effectively. • In the Metallurgy sector, particularly in the context of mining activities, no particular impacts have been identified so far in the Company's underground sites requiring the implementa- tion of specific adaptation measures. Concerning the efforts to tackle climate change, the Company is: • expanding the development and utilization of Renewable Energy Sources. • systematically investing in the optimization of the production processes of the Metallurgy sector with new technological equipment, while the target it has set for 2030 is to secure electrification exclusively from renewable sources, reducing its industrial environmental footprint to zero. • promoting the expansion of the use of Natural Gas, as a stage of mild transition to the “green energy” era, in all its industrial plants as well as in its new business investments in the Electric Power sector, such as the new gas-fired combined cycle (CCGT) power plant, whose construction began in 2019 and which will be ready in late 2021. The plant will employ cutting-edge technology which will make it the most powerful and ener- gy-efficient power plant in Greece and one of the largest power plants in Europe. Boundaries of the Material Issue [GRI 102-46] [GRI 103-1b] Issue of increased significance to: Where the impacts occur: The impacts of climate change may occur on industrial units, RES plants, mines and construction sites of Business Sectors and its subsidiaries of MYTILINEOS, as well as on the boundaries of their operation. The management of the topic by MYTILINEOS contributes to the Sustainable Development: • Local communities • Shareholders / Investors • Customers • NGOs • Sustainable Development Organizations • Regulatory bodies • Academic community • Media representatives in the context of their cooperation with MYTILINEOS. • To strengthen the resilience and adaptability of its production process to natural disasters and the risks posed by climate change. • To promote mechanisms to increase the ability to organize and manage climate change in the most sensitive areas of local communities. By whomare the impacts caused: The Company's Business Sectors and its subsidiaries are directly involved in these effects, while its supply chain may also have indirect participation. Key Challenges / Impacts [GRI 103-1a] [GRI 102-15] 71 70

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