Sustainable Development Report 2019

ESG Performance 2019 The purpose of this statement is to provide MYTILINEOS' Stakeholders with up-to-date information on matters pertaining to the Environment, Society and Corporate Governance (ESG) which are of interest to them2. It summarizes the Company's distinctions and performance in 2019, as well as the commitments for the next 3 years, reflecting its ability to create long term value. Commitments 2019 In 2019, MYTILINEOS undertook three key commitments regarding its business viability. • To join, in 2021, the CDP Climate Change International Sustainable Development Initiative. • To obtain, in 2022, the ASI Performance Standard certification for its Metallurgy Sector from the Aluminum Stewardship Initiative (ASI) international organization. This certification relates to the development, application and maintenance of responsible environmental, social and gover- nance standards to ensure responsible production and rational use of aluminium. • To incorporate in its financial disclosures (financial year 2022) the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) initiative, analyzing related risks and opportunities in the climate change domain. 1. The acronym “ESG” refers to issues related to the environment, society and governance. 2. According to the results of the Materiality process 2019 (p. 39) ESG1 Performance Statement Distinctions 2019 2019 was yet another year in which the Company garnered a number of major awards and distinctions. • FTSE4Good: MYTILINEOS was included for the first time in the FTSE4Good index , after its independent evaluation by the FTSE International Organization, in recognition of its long-standing commitment to Sustainable Development. • Ecovadis: Ecovadis, the leading European Corporate Social Responsibility rating agency, awarded MYTILINEOS a silver medal for its Corporate Business Responsibility practices. • True Leaders: The market's true leaders, the top companies out of 31,000 companies and busi- ness groups assessed in 2018, were nominated and awarded by ICAP, as part of its prestigious True Leaders institution. MYTILINEOS was one of the leaders awarded, having satisfied all objective and measurable criteria. • Most Admired Companies in Greece (Fortune): MYTILINEOS was included in the annual list of “Most Admired Companies in Greece”, compiled by Fortune magazine and KPMG. The list of most admired companies in 2019, published last October, was again of great significance – as is the case every year – given that the distinctions gained come from the market executives themselves, who reward the companies' continuity, consistency and persistence in their vision and values. • Hellenic Responsible Business Awards: GOLD Award , which the Company wins back-to-back for the 2 nd year, for the redesigned “Integrated Value Creation Scorecard” informative application. • Hellenic Responsible Business Awards: SILVER Award & BRAVO Governance Award for the implementation of the Company's annual institution of Consultation with its Social Partners, whose theme for its 2019 edition was: “Developing a Responsible Supply Chain”. • Hellenic Responsible Business Awards: BRONZE Award , presented to the Company for the 2 nd consecutive year, for capturing the overall social value of the innovative pilot social program “I'm in” to tackle school dropout, using the international Social Return on Investment (SROI) methodology. • HR Excellence Awards: Bronze Award in the “Best Change Management Strategy / Initiative” category, for the implementation of an experiential training program designed by executives of the Company's Metallurgy Sector. • Partnership Awards: Gold Award in the “Best Utilities Project” and Silver Award in the “Best Financial Structure” category, with the Company outperforming its industry's largest global competitors. The use of basic raw materials (Bauxite and Natural Gas) from non-re- newable sources, the emission of air pollutants and the generation of waste, in the context of our activity, limited the stock of value of our Natural Capital. In order to reduce our environmental footprint, we implement an ISO 14001-2015 certified environmental management system and we also promote the systematic application of Best Available Techniques in all our Business Activity Sectors. As an example, 25 thousand tons of recycled aluminiumwere produced in the Metallurgy Sector for the first time in 2019 (accounting for 12% of total production) by expanding our activity to aluminium scrap recycling, a technique that greatly contributes to reducing energy consumption and air emissions. The implementation of Best Techniques requires financial resources (our environmental expenditures in 2019 amounted to €61 million) , the allocation of which reduces the value of our Financial Capital in the short term. At the same time, these resources are used to comply with the approved environmental terms of our plants' operation and, by extension, for the protection of the environment. This ensures the social acceptance of our activity and thus strengthens the value of our Social Capital. In 2019 there were no incidents of pollution of the natural environ- ment from our production activity, while the air emission levels recorded were below the statutory ones. We continued our mining activity in a responsible and sustainable manner, increasing to 82.4% the rehabilitation rate of the total area of land used in mining operations, with no new land areas ear- marked for mining activity . One of the metrics we monitor to keep track of our performance in cli- mate change are the specific CO2 emissions (direct and indirect) per ton of product produced, which in 2019 decreased further, com- pared to the base year 2017. We are consistently supporting with investments in RES the production of clean energy, which in 2019 rose to 6.4% of our total production, increased by 33% relative to the base year 2017. Total energy consumption, as well as electric power consumption, remained at base year levels, while total carbon dioxide emissions (direct and indirect) stood at 4.64 million tons of CO2 eq ( -11% compared to 2017). We maintained our position in the second-best ranking level (“MANAGEMENT LEVEL”) of the CDP Water Security rating, a result which ensures that we take concerted action to ensure proper manage- ment of water resources, having improved our performance in 6 of the 11 individual assessment areas. We have ensured, by undertaking a specialized study, that we withdraw water (ground water) from renewable sources and that our activity does not limit or threaten the adequacy of the water quantity available in the aquifer. Our environmental R&D expenditures stood at €1.5 million, repre- senting investments in the development of pilot plants in the Metallurgy Sector, where new technologies for the exploitation of bauxite residues are already being tested. We are steadily increasing the recycling, reuse and utilization of our waste in other activities. Indicative of our efforts in this area is that we have already reduced, by about 10% since 2016, the annual amount of bauxite residues disposed in the areas designated by law as disposal sites for this purpose . There have been no incidents of non-compliance with environ- mental laws and regulations, as a result of which the Company avoided direct financial risks such as related fines, as well as indirect ones involving negative impacts on its reputation. Environment Overall, we have strengthened the value of our Social Capital by maintaining our “social license to operate” and ensuring the acceptance of our CRS policy by our Social Partners . The management of social issues, both centrally and locally, has pre- vented the occurrence of risks that might have significant negative impacts on our financial results. As an industrial company, we increased significantly the percentage share of direct employment in our sector, by creating 281 new jobs , both in Greece and abroad, in order to ensure our smooth operation, while we also kept the percentage shares of part-time and fixed-term employees very low. In the field of safety at work, we recorded zero fatalities across all our activities and we observed very significant improvements in accident frequency indicators, minimizing lost time injuries involving direct employees through information campaigns on key safety issues. We continued to implement supplementary pharmaceutical and hos- pital care programs for all our employees and their family members, giving top priority, as always, to health issues. Continuing with the implementation of our social policy, we implemented new social programs and investments in local infrastructure worth a total of €3.4 million , benefiting nearly 30,000 citizens and making a significant contribution to all social aspects of the Sustainable Development Goals. We fully protected labor rights as well as other categories of Human Rights related to our activity. We do not burden our financial resources with costs arising from incidents of non-compliance with regulations regarding the impacts of our products and services on the health and safety of our customers and of consumers. We successfully pursued the social dialogue with our Social Partner groups, discussing with them topical and significant Responsible Entrepreneurship issues in order to determine our strategic priorities at the level of sustainable development for the coming years. Social Seeking to implement higher Corporate Governance standards, we have decided to voluntarily adapt, as of 1/1/2019, to the UK Corporate Governance Code – 2018, and have already aligned ourselves with 60% of the relevant requirements . Our business model describes how we utilize our resources and how these are transformed into the final products and services that we provide, generating income and profits for the Company and creating value for our Social Partners. We follow a “Zero Tolerance” approach in connection with incidents of corruption and bribery in all our activities, both domestically and internationally. There were no financial charges arising from violations of our Code of Business Conduct We have strictly complied with the legislation in force regarding our business activity; as a result, there were no incidents of non-com- pliance with the legislation nor any related environmental, social and economic impacts . Governance 7 6