SUSTAINABILITY

As a pivotal player in the aluminium sector in Southeastern Europe, Aluminij Industries is steadfast in its commitment to sustainability. Through our strategic sustainability framework, we recognize the potential to make a difference by advancing the following United Nations Sustainable Development Goals:

Electricity is the main resource required while operating the electrolysis plant. The plant uses 2 Mil MWh per year, in a full production mode. In order to further expand the scope of the project and the cooperation, Aluminij Industries d.o.o. intend to invest in renewable energy power plants, thus ensuring a stable and affordable power supply which will accommodate the factory's needs while staying true to the Group's commitment of promoting sustainability and environmental awareness and responsibility.

Data on solar radiation in the Balkans, especially the Herzegovina area, indicates significant solar energy resources with an extremely favorable seasonal schedule, which provides an opportunity for its efficient and long-term use.

Given the average number of hours of sunshine per year (2291) in Mostar, with more than 280 sunny days and the availability of large open areas, the use of solar energy farms for electricity and heat production should be pursued and realized. The use of solar energy would lead to energy savings as well as reduce emissions from the need for fossil fuels and the environmental pollution caused by their combustion. The average annual irradiance of the horizontal surface for the Mostar area ranges from 1550 kWh / m2 in the south to 1300 kWh / m2 in the northern part of the area.

Since renewable energy resources are environmentally friendly and safe, both solar and wind solutions are considered. The renewable energy supply would have to be combined with traditional electric grid sources to ensure energy supply at night time, however, the low production cost of the renewable energy will result in total average electricity cost which will allow a viable financial operation of the electrolysis plant.

Together with our strategic partner, China Machinery Engineering Corporation (CMEC), we aim to introduce solar and wind energy solutions. This mega-project, will require a significant investment, but will secure Aluminij's energy supply for years to come and will result in expanding the factory's operation to its full capacity, with hundreds of additional jobs and dramatic effect on related businesses and Bosnia and Herzegovina's economy.

Aluminij is a member of the European Aluminium organisation, which was founded in 1981 and now represents the entire range of Europe’s aluminium industry, from primary production all the way through to recycling. They are based in Brussels where they represent the interests of the members across all relevant European institutions and related stakeholder groups.

European Aluminium is registered in the transparency register of the EU commission and Parliament. European Aluminium is the voice of the aluminium industry in Europe. They are actively engage with decision makers and the wider stakeholder community to promote the outstanding properties of aluminium, secure growth and optimize our metal’s contribution to meeting Europe’s sustainability challenges.

Aluminij has created a sustainability report guided by the requirements of the ASI Performance Standard V3 (2022) 1, which is adopted by the Aluminum Stewardship Initiative (ASI).

With the first sustainability report, Aluminij aims to present a summary of the economic, social and environmental impact and understanding of sustainability for all our stakeholders.

Aluminij has been a member of ASI since December 2020, and the current focus is obtaining the first certification according to ASI Performance Standard V3.

The data provided in this report refers to the year 2022, but in some cases, Aluminij has also referred to data relating to the key aspects of its business in 2021 in order to show trends.

The focus is on ASI’s four sustainability priorities, where we want to minimize unwanted consequences and increase positive impact.

In most cases, this is a reference measurement for further development and improvements that we will evaluate in reports in the coming years.

This report has been prepared guided by the Global Reporting Initiative (GRI).