Slide 1: Citi roadshows
») Hydro Citi roadshows \ 2023-09-20
Slide 2: Safe and responsible operations is a top priority
Safe and responsible operations Continuing efforts to further increase transparency is a top priority • Transparent and consistent reporting approach for more than three decades Leadership in health and safety, social responsibility • Sustainability is fully integrated in Hydro’s strategy and compli
Slide 3: Driving sustainability: Future-proofing our company
Driving sustainability: Future-proofing our company Climate Environment Society • On track to meet 30 percent reduction • 1:1 reforestation on track • On track to deliver on target of in scope 1 and 2 CO2e by 2030 empowering 500,000 people with • No net-loss biodiversity ambition for • Net-zero by 2
Slide 4: Aluminium demand expected to grow significantly
Aluminium demand expected to grow significantly Semis demand (Mt Al) Tonnes CO2e/t primary aluminium 200 000 30 180 000 25 160 000 140 000 20 120 000 100 000 15 80 000 10 60 000 40 000 5 Hydro average 20 000 Reduxa 2.0 0 0 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2005 2010 2015 2020 2025 20
Slide 5: Hydro provides products with low emissions
Hydro provides products with low emissions Kilos of CO2e emissions per kilo aluminium 20.3 Primary aluminium produced on renewable energy 16.6 4-6 times lower than the world global primary average 8.6 Recycled aluminium from Hydro 6.7 More than 5.7 7 times for 75R, and 3.0 4.0 2.3 33 times for 100R
Slide 6: Climate
Climate 6
Slide 7: Carbon reduction targets growing across market segments
Carbon reduction targets growing across market segments Estimated demand based on currently stated ambitions Examples of front runners with ambitious 2030 targets Share of low-carbon1) Scope 3 reduction targets Specific aluminium commitments Europe and North America low-carbon1) and recycled GAGR al
Slide 8: Net-zero Hydro: The roadmap
Net-zero Hydro: The roadmap On track to achieve 30% carbon emissions reduction by 2030 and net-zero by 2050 or earlier GHG emissions – ownership equity Million tonnes CO2e (% of 2018 baseline emissions) 2018 2025 2030 2050 Fuel switch, Renewable power, green or earlier Electrifying coal boilers, gri
Slide 9: New target to reduce specific scope 3 emissions by 30% by 2030
New target to reduce specific scope 3 emissions by 30% by 2030 Reducing footprint of purchased raw materials Reducing footprint of external purchased metal is the main source to Upstream scope 3 GHG target reduce scope 3 emissions, in addition to external alumina, alloying pr tonne aluminium* elemen
Slide 10: Environment
Environment 10
Slide 11: Environment: Minimizing Hydro's environmental footprint
Environment: Minimizing Hydro’s environmental footprint Protect Biodiversity Eliminating waste Reducing emissions • 1:1 rehabilitation of available mined • Bauxite Tailings Dry Backfill (ongoing) • Reduce material non-GHG emissions by areas within two years (ongoing) 50%, by 2030 (2017 baseline) • L
Slide 12: Environment: Protect biodiversity and eliminate waste
Environment: Protect biodiversity and eliminate waste Today 2030 2040 2050 1:1 rehabilitation available mined areas within 2 years No net loss biodiversity in new projects Tailings dry backfill Eliminate the need for new Utilize 10% of bauxite permanent residue generated bauxite residue storage Land
Slide 13: Social
Social 13
Slide 14: Social: Improve lives and livelihoods wherever we operate
Social: Improve lives and livelihoods wherever we operate Invest in Support just Responsible education transition supply chain Equip people with essential skills for future Contribute to economic and social Ensure transparency and responsible economy development in communities where we business prac
Slide 15: Hydro Group - Just Transition framework and targets
Hydro Group - Just Transition framework and targets Objective Just Transition Contribute to a positive development Impact in the societies where we operate Hydro contributes People have human rights Local communities are resilient People have the necessary skills towards… protected and have access t
Slide 16: Current supply chain management in Hydro
Current supply chain management in Hydro Supplier due diligence process set out in Overview of human rights risk score per country for Sustainability in the Supply Chain Procedure (GP-09-01) Hydro’s direct suppliers 16
Slide 17: Hydro
Hydro Industries that matter
Slide 18: Demand for greener aluminium accelerates
Demand for greener aluminium accelerates Low-carbon and recycled aluminium to make up majority of EU and North America market by 2030 Greener demand growth is outpacing the Estimated demand from currently stated company emissions reduction rest of the market targets – demand upside as new targets ar
Slide 19: The EU Taxonomy has the best intentions
The EU Taxonomy has the best intentions But does not always hit the target – particularly outside the EU/EEA 19
Slide 20: Ambition to more than double sales of greener products to meet market demand
Ambition to more than double sales of greener products to meet market demand Hydro CIRCAL1) Sales volume, tonnes (000s) ~3X ~140 100 40 50 55 20 2020 2021 2022e 2023e 2025e Mid-term capacity ~2X Hydro REDUXA2) ~1000 Sales volume, tonnes (000s) 650 430 450 250 75 2020 2021 2022e 2023e 2025e Mid-term
Slide 21: Social Strategy in Brazil
Social Strategy in Brazil: Four key focus areas to support just transition Education and Skills Value chain Biodiversity Quality of life Positive impact in the territory: Barcarena Paragominas 80,000 • Ativa Barcarena • Embarca Amazônia • Território do Saber People direct assisted by social • Embarc
Slide 22: Product qualities and roadmap to zero make aluminium key for green transition
Product qualities and roadmap to zero make aluminium key for green transition Importance of aluminium within key green transition technologies1 PV Electric vehicles Key properties of aluminium match requirements – lightweight, conductive, corrosion resistance Wind power Electricity networks Infinite
Slide 23: Biodiversity Mitigation Hierarchy (BMH) Framework
Biodiversity Mitigation Hierarchy (BMH) Framework Addressing impacts to biodiversity through a structured, hierarchical framework • The BMH is a well established framework that defines a series of Preventative Remediative actions that should be taken to reduce a project’s overall impact to 1. Avoida
Slide 24: Greener products: From REDUXA 4.0 to 2.0
Greener products: From REDUXA 4.0 to 2.0 New energy mix in Alunorte important enabler to reach 2.0 From REDUXA 4.0 Towards REDUXA 2.0 by 2030 Primary aluminium Primary aluminium <0.6 3.4 – 4.0 kg CO2e/kg AI 1.6 0.1 Other Casting Smelting 1.4 0.1 -0.3 Casting 0.1 Smelting 2.0 kg CO2e/kg AI 0.2 PCS 1.