Threats and opportunities with regard to climate change
Threats and opportunities analysis with regard to climate change and climate change prevention
The business model of the Capital Group is adjusted to the current market situation and, in the opinion of the Company, climate change is not going to have a major impact on the model and operations of the Capital Group in the period of the current Strategy.
This results from the following factors:
- the Capital Group companies have already taken actions in areas which support the climate protection and circular economy efforts;
- the production activities of Grupa KĘTY S.A. as well as the other Capital Group companies are carried out in areas not directly exposed to flooding as a result of rising water levels in the seas and oceans caused by climatic changes;
- the production activities of Grupa KĘTY S.A. as well as of the other Capital Group companies are carried out in moderate climate zone, in areas that are not exposed to changes in climatic factors (temperature, precipitation, wind) that would make it impossible to conduct the current activities;
- the production activities of Grupa KĘTY S.A. as well as the other Capital Group companies are carried out in areas exposed to short-lasting weather events (intense rainfall, strong wind, whirlwind), the frequency of which may increase with climatic changes, however, their impact (possible value of assets exposed to the risk of losses) and frequency of occurrence do not threaten the continuity of the Capital Group operations;
- the Capital Group companies are not subject to the EU Emissions Trading System (ETS);
- according to experts, aluminium is a desired raw material on our way to climate neutrality, perfectly suited to the circular economy concept, which is going to play a crucial role in the leading sectors of economy.
It has, thus, been assumed that the issues related to the impact of climate change on Grupa KĘTY S.A. and the Capital Group would not have any significant impact on the business model and the financial statements in the perspective of the 2021-2025 Strategy. At the same time, it was acknowledged that Grupa KĘTY S.A. and the Capital Group have a real influence on counteracting climate change by reducing greenhouse gas emissions, which will not affect the business model.