Climate change

Tackling climate change is a key pillar of METLEN's broader Sustainable Development strategy and is directly linked to the Global Sustainable Development Goals. The Company is strategically positioned at the forefront of the energy transition as a leading and integrated "green" utility, internationally, and as a benchmark for competitive "green" metallurgy at European level, thus contributing substantially to the effort to rid the global According to scientists, it must be achieved well before the end of the 21st century and in the European Union by 2050. According to the 2024 Double Essentiality Assessment, significant impacts related to the above challenge are:

• Release of CO₂ emissions from energy-intensive activities
• Activities focused on accelerating energy transition
• Delivering on climate targets and commitments

In this context, the Company's approach is characterized by:

• The exploitation of the new business opportunities that emerge in the context of the energy transition.
• The implementation of an Environmental policy with emphasis on the responsible use of energy and resources, and the management of the effects of climate change.
• The establishment of commitments and targets for the reduction of the carbon footprint, integrated into the overall business strategy.
• The adoption of the TCFD guidelines and the strengthening of the resilience of production units against climate risks.
• The integration of the climate dimension into the basic administrative functions.
• Participation in the CDP - Climate Change initiative, with transparent assessment and actions for the management of climate risks and opportunities.

See more in the Company's Annual Report 2024.

METLEN has developed a clear and multi-layered governance system for managing climate change-related issues, which runs horizontally across its business activities and vertically across decision-making levels. The Sustainable Development Committee of the Board of Directors is the main supervisory body, ensuring the strategic integration of climate parameters in the corporate operation, through regular meetings, monitoring of objectives and evaluation of initiatives.

The Directorate-General for Corporate Governance and Sustainable Development has a crucial coordinating role, as it works closely with Sector administrations and sustainability teams to promote CO₂ emission reduction actions, monitor progress, provide technical guidance and link actions with the broader energy transition strategy.

In addition, METLEN strengthens climate governance through:

• the integration of CO₂ emission indicators into the remuneration of top management;
• the adoption of green financial instruments,
• the assessment of suppliers based on climate criteria,
• participation in initiatives such as the CDP and alignment with the TCFD;
• the continuous updating of the Board of Directors on the progress of the climate targets and the Company's exposure to relevant risks.

Through this institutional and operational framework, METLEN ensures that climate change challenges are effectively addressed and integrated into its business strategy.

See more in the Company's Annual Report 2024.

In order to ensure and assess its resilience to the risks it faces, METLEN has adopted a scenario analysis approach that includes different time horizons. In particular, the analysis covers the short-term, medium-term, and long-term.

With regard to climate change-related opportunities, METLEN is strategically positioned to capitalize on energy megatrends, mainly through the development and operation of renewable energy sources, network upgrade projects internationally, and by tapping into the growing markets of hydrogen production (H2) and carbon capture (CCUS). At the same time, benefits for the Company's business strategy arise both from the different ways of utilizing natural gas, in the context of the energy transition, and from the increasing incorporation of recycled aluminum into its product mix, aiming at greener outputs.

METLEN, in the context of its environmental policy, has developed and implements key actions aimed at reducing CO2 emissions in the key Sectors of its Business Activity. These actions affect various groups of the Company's Social Partners, such as financial institutions, local communities that benefit from emission reductions, as well as the investment community by providing reports on CO2 reduction actions and results. Indicatively, the following are mentioned:

• Application of cutting-edge technologies and the utilization of digital industrial methods in the aluminum production stages.
• Electrification of the production of virgin aluminium from RES.
• Increase the production of secondary aluminum.
• Industrial electrification initiatives.
• Study of the application of new technologies (pilot use of hydrogen, etc.).
• Continuous development of the RES portfolio.
• Replacement of all corporate vehicles with electric ones.

See more in the Company's Annual Report 2024.

Over the past three years, METLEN has experienced dynamic growth, implementing key transformations and pursuing an acquisition strategy. These activities, while crucial for long-term growth and competitiveness, have led to increased carbon emissions due to the integration of new subsidiaries and activities not included in the initial climate target setting process in 2020. METLEN remains committed to net zero emissions by 2050 and is reviewing its 2030 interim climate targets and carbon reduction initiatives, taking into account recent acquisitions and strategic business choices. This review aims to revise future CO2 emission estimates for key assets and to ensure that climate targets remain realistic and aligned with the broader corporate development strategy. The review is expected to be completed by the second half of 2025, with the results published in the report for that year.

• The ESG Scorecard as well as the Integrated Value Creation Scorecard present the relevant hybrid and climate indicators that reflect the Company's performance and progress.

See more in the Company's Annual Report 2024.