Resource use and circular economy

Resource management and the integration of circular economy principles are key pillars of METLEN's sustainable development strategy. With the aim of rationalising the use of natural resources and minimising its environmental footprint, emphasis is placed on the production of recycled aluminium, which is at the heart of the circular economy. At the same time, METLEN participates in research projects for the exploitation of bauxite residues for the extraction of rare earths.  further strengthening its resource-efficient initiatives. In addition, the Company's waste management is based on best practices, promoting the recycling and reuse of materials, with the ultimate goal of gradually transitioning to a circular production model that contributes to sustainable development. According to the 2024 Double Essentiality Assessment, significant impacts related to the above challenge are:

• Use of scrap aluminium scrap as raw material
• Utilization of Bauxite residues

See more in the Company's Annual Report 2024.

METLEN has established a comprehensive governance framework for the management of sustainability issues, which is integrated into the Company's core decision-making and oversight processes. The role of the Management is clearly defined and ensures continuous supervision and strategic guidance on sustainability issues.

In particular, the Sustainable Development Committee, as a committee of the Board of Directors, is responsible for monitoring the implementation of the sustainable development strategy, approving relevant policies and monitoring the Company's ESG performance. The Committee meets regularly and cooperates with the Directorate-General for Corporate Governance and Sustainable Development, which plays a crucial role in coordinating all sustainability issues within the Company. The governance of sustainability issues is supported by specially defined organisational structures, which include teams and sustainability officers in each Business Sector and a key subsidiary. ESG thematic pillar managers work with central and local management teams, ensuring coordination, monitoring progress and providing technical guidance, with the aim of systematically integrating the principles of sustainable development across the Company's range of activities.

At the same time, METLEN applies a systematic due diligence approach to manage actual and potential significant sustainability impacts, risks and opportunities. This approach is based on the international guidelines for responsible business conduct and includes: identification and impact assessment processes, setting targets, action plans, monitoring mechanisms, taking corrective actions, consulting stakeholders and promoting value chain partnerships.

Through these mechanisms, METLEN ensures that sustainability issues are integrated into its business strategy and day-to-day operation, enhancing long-term value creation for all stakeholders.

METLEN's industrial activity is particularly resource-intensive, mainly from non-renewable sources. The proper management of the Company's physical capital is a key element of its business model, ensuring the long-term sustainability of its activities and the production of sustainable products and services, as described in the Business Model section of this report. In addition to the production of products, the Company's outputs related to the use of natural resources, raw materials and other materials also include waste (including air emissions). METLEN records, monitors and publishes the waste generated by its activities over time, classifying it according to how it is managed, while it is committed to the proper management of all its solid and liquid waste.

METLEN, through its Metals and Energy Sectors, systematically invests in Research and Development, promoting innovation, sustainability and enhancing its competitiveness. Through its participation in European and national programs, the Company develops technologies for circular economy, recovery of rare metals, reduction of pollutants and electrification of production processes.

Indicatively, within 2024, METLEN's main actions and initiatives concerned:

• Funding of more than €11 million (2017-2027) in research programmes supporting both Business Sectors.
• Participation in the implementation of 14 active research programs, with emphasis on sustainable metallurgy, rare metal recovery and green technologies.
• Operation and expansion of pilot units 'HYDRO' and 'PYRO' with new equipment (€470,000 investment) for testing of new metallurgical and energy processes.
• Optimization of scandium production and design of a new production unit in Agios Nikolaos (Scale UP Program).
• Pilot production of gallium from alumina by-products, with the aim of exploiting rare metals (Valore Programme).
• Development of technologies for the conversion of bauxite residues into cement additives and the production of cast iron, contributing to the circular economy (Reactive Programme).
• Pilot application of a hydrogen burner in the foundry for CO2 emission reduction and electrification of production processes (HyinHeat Program).
• Development of alumina generation electrification technologies with microwave ovens and hybrid systems, which promote energy efficiency (Elithe and Metawave Projects).

See more in the Company's Annual Report 2024.

METLEN places particular emphasis on promoting the circular economy through increasing the production of secondary aluminum. The corporate goals that have been set focus on environmentally responsible management of raw materials, energy efficiency and the long-term enhancement of the Company's competitiveness through green investments. The Company has set a goal for 2030 of the production of 100,000 tons of recycled aluminum, which requires the recycling of between 90,00 and 105,000 tons of scrap aluminum. In this context, the Metals Sector sets annual targets, with the interim goal for 2025 amounting to the production of 55,000 tons of recycled aluminum, through the utilization of more than 50,000 tons of scrap aluminum.

Indicatively, within 2024 the main results of the approach adopted for responsible resource management include:

• Production of recycled (secondary) aluminium from scrap, quantity of 55,875.04t, marking a slight change compared to the previous year (2023: 56,365t).
• Utilization of approximately 2.1 million tonnes of raw materials for the production of alumina, primary and secondary aluminium products, an amount increased by 8.1% compared to the previous year (2023: 1,947,977.6t). It is noted that of the total amount of inputs, 2,048,654.86 tons were bauxite, corresponding to 74.8%, while the remaining 26.2% related to the use of other raw materials, secondary raw materials, packaging materials, etc.
• Increase in the utilization of recycled materials in absolute prices by 3.7% from 55,302t in 2023, to 57,338.2t in 2024.
• Recovery of a total quantity of non-hazardous waste of 277,248.8 t.
• Recovery of a total amount of hazardous waste of 5,252.3 t.
• Utilization of basic waste streams (ash), mainly from the Metals Sector as the main waste of the production of recycled aluminum, entirely from the cement industry as an alternative raw material.

See more in the Company's Annual Report 2024.