ESG results
Within the Strategy, we have set out 9 ESG goals
The chart below presents the results generated in 2023 in reference to the performance effectiveness indicators we had selected.
| Indicator | Unit | Indicator calculation formula | Description of the measurement method | 2025 objective | Performance 2023 |
| Environmental | |||||
| Reduction of the intensity of greenhouse gas emissions | [Mg CO2e/Mg] | [Mg CO2e/Mg] |
|
-20% | -21.7%*** |
| Share of aluminium scrap in the products extruded from low‑emission billets | [%] | (weight of aluminium scrap) / (weight of product) | 1. The scrap covers: post-consumer scrap, pre-consumer scrap, and home scrap.
2. Billets manufactured of grade 6000 alloys at the Kęty plant ‘Z’ melting and casting line. |
75% | 74.0%* |
| Increase in the number of Aluprof-systems-constructed buildings with environmentally-friendly certificates | [%] | Number of Aluprof-systems-constructed buildings in the databases of certified buildings in Poland and abroad. | The database of buildings certified by the Polish Green Building Association [Polski Związek Budownictwa Ekologicznego] (buildings classified based on buildings multi-criteria environmental assessment systems: Breeam, Leed, DGNB, HQE), plus foreign databases. | +65%**** | +50** |
| Growth of the share of the manufactured packaging films and laminates fit for recycling. | [%] | (number of metres square of films and laminates fit for recycling) / (total number of metres squares of films and laminates) | Films and laminates fit for recycling specified based on structure analysis. Total quantity of films and laminates [m2] based on sales report. |
+5% | +3,1%** |
| Social | |||||
| Improvement of occupational health and safety – Total Recordable Incident Rate (TRIR) | number | Number of injuries / time worked x 200,000 | The number of injuries per 100 workers. The constant of 200,000 is calculated as follows: 100 employees work 40 hours a day, 50 weeks a year. |
<1 | 1.05* |
| Staff turnover | [%] | Number of employees leaving the company / average headcount | The number of employees covers those employed under employment contracts. | -5% y/y | -1% y/y* |
| Performance of social initiatives within the ‘Together with the Group’ programme | project | Number of projects in the given year | Individual projects within the subsequent editions of the ‘Together with the Group’ grant programme | 150 | 143** |
| Management | |||||
| Consequent dividend policy | [%] | Value of dividend paid / value of consolidated net profit attributable to owners of the parent | 1. The value of dividend passed by the Annual General Meeting.
2. Consolidated net profit attributable to owners of the parent published in the consolidated annual financial statements for the year to which the divided refers |
60-100% | 89%* |
| Engagement of suppliers in the sustainable development of the Capital Group | [%] | Certified suppliers / list of suppliers | List of suppliers – accepted group of strategic suppliers, defined for each operating segment of the Capital Group | 100% | 90%** |
**Performance incrementing since the Strategy implementation date.
***Percentage change in GHG emissions compared with the base year.
****Change of goal from 20% to 65%.
Comments to the results
Within the Strategy of the Capital Group, there have been developed action plans responding to the market and customer needs, guided by the responsible and sustainable development objectives. We define ESG goals as the process of improving and adapting the Capital Group to the changing market environment and expectations in terms of environmental, social and governance impact. We welcome progress and analyse deviations.
In the area of our environmental impact and climate change prevention, we are satisfied to report performance compliant with the Strategy progress, and even exceeding the attainment of two strategic goals, for which we have increased the target value during the Strategy period: Aluminium Systems Segment – Increase by 20% in the number of Aluprof-systems-constructed buildings with environmentally-friendly certificates compared with the base year 2020 – in 2023 the goal was changed to 65% compared with base year. Earlier goal attainment was mainly due to the green transformation we have been seeing in the construction industry and the change in the investors’ perception of certification, which is becoming a market standard for an increasing number of investments. We see the dynamic development of sustainable construction as an opportunity in the development of our products in that area and the active participation of the Aluprof brand in the architecture of the future.
A similar situation occurred with regard to the climate impact goal. The basic goal of the Climate Policy adopted to be achieved by the year 2025, consisting in 20% reduction in the GHG emissions intensity compared with the base year 2016, was attained in 2023. The reduction as at 31 December 2023 equalled 21.7%. Therefore, in 2024, there will be adopted new, more ambitious goals in that regard. It will happen as one of the stages of the pending analysis and work on the ESG strategy for the subsequent years.
The 2023 performance and achievement of strategic goals for the other two environmental indicators (Share of aluminium scrap in the products extruded from low-emission billets, and Growth of the share of the manufactured packaging films and laminates fit for recycling) raise no concerns, as both of the processes that perfectly fit the circular economy concept are subject to continuous supervision.
We have been gradually increasing the quantity of aluminium scrap recovered in the remelting processes, whereas the Flexible Packaging Segment has been adapting its product offer to the requirements of its business partners, such that the packaging produced has the least possible impact on the natural environment.
In the social area, we have been consequently performing local projects under the ‘Together with the Group’ programme. In 2023, we carried out further 70 projects within the jubilee edition of ‘70 local projects for the 70 years of Grupa KĘTY’. This makes us believe that we have been effectively performing our commitment to the local communities.
As regards safety (TRIR – the number of accidents per 100 employees in proportion to the time worked), we achieved the result of 1.05 in 2023, which means a significant 20% decrease compared with the 2022 result. The rate improvement is an effect of intensive activity, particularly with regard to raising awareness among the employees.
A major deviation from the set-out goal (ratio reduction by 5% y/y) was recorded in 2023 for staff turnover. The goal assumed in the Strategy for the year 2023 equalled 10.26, and the performance was 12.2, which means the goal was not attained. We positively assess the hold-up of the growing trend in year over year turnover, as the 2023 value is similar to that in 2022.
In the management area, we complied with the dividend payment ratio in 2023, and implemented the Code of Conduct for Suppliers of the Capital Group of Grupa KĘTY S.A. in our relations with some more suppliers.