41 slides from En+ Group Ipjsc Ord Shs's sustainability presentation, October 2021
Slide 1: Pathway to Net Zero
Pathway to Net Zero October 2021
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT AND ITS CONTENTS ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This presentation may contain “f
Slide 3: Presentation Plan
Presentation Plan 4 15 20 27 35 Net zero Our approach Actions in Actions in Driving our overview to net zero Metals segment Power segment commitment • Production chain • En+ Climate Change • High degree of vertical • Value chain of Power • Partnerships and Taskforce integration in the aluminium segm
Slide 4: Net zero overview
4 15 20 27 35 Net zero Our approach Actions in Actions in Driving our overview to net zero Metals segment Power segment commitment 4
Slide 5: En+: Best Positioned to Enable the Transition to Low-Carbon Aluminium
En+: Best Positioned to Enable the Transition to Low-Carbon Aluminium Industry leader in low-carbon aluminium Russia Sweden Lowest-cost aluminium producer Ireland Krasnoyarsk Strong long-term fundamentals for aluminium Moscow Boguchany HPP market Ust-Ilimsk HPP Irkutsk Krasnoyarsk AS Boguchany
Slide 6: The power of our integrated business – production chain
The power of our integrated business – production chain How we generate power How we produce aluminium En+ Group benefits from its unique assets that results in a fully integrated and highly self-sufficient business Hydropower is used to refine raw materials and produce aluminium in Siberia Mo
Slide 7: Aluminium industry outlook (1/2)
Aluminium industry outlook (1/2) Growing demand in the aluminium industry Total 2020 ROW 2020 China 2020 En+ Group’s Metals segment, RUSAL, is the world leader for the production of low-carbon aluminium, recognised in the market through its 2020 2020 2020 ALLOW brand 88Mt 40Mt 48Mt By the end of 2
Slide 8: Aluminium industry outlook (2/2)
Aluminium industry outlook (2/2) Low-carbon aluminium demand across sectors and geographies INDUSTRY WINNERS SMART MOBILITY GREEN BUILDING RECYCLABLE MATERIALS RENEWABLE ENERGY EV penetration accelerates Improve energy-efficiency of Can revolution 2.0: Tripling Renewables across all segments old and
Slide 9: Energy industry outlook
Energy industry outlook Capacity outlook in UES Russia to 2040, GW1 Capacity outlook in Russia By 2040 the share of fossil-fuelled power plants in the capacity mix will slip eight percentage points from 67% to around 59%, with nuclear and hydropower remaining around 12% and 20% respectively The
Slide 10: Climate change challenges and the opportunities for Metals segment
Climate change challenges and the opportunities for Metals segment Aluminium production is currently one of the world’s most energy-intensive industries From challenges To opportunities 10 Global average carbon footprint by primary aluminium sector Aluminium as a critical element of sustainability/
Slide 11: Climate change challenges and the opportunities for Power segment
Climate change challenges and the opportunities for Power segment Energy mix transitioning from fossil fuels to renewables From challenges To opportunities 11 Energy consumption by source1 , TWh 600,000 • Increase in demand for renewables 500,000 • Hydropower-clean power 400,000 300,000 • Energy mix
Slide 12: Pathway to net zero
Pathway to net zero In January 2021, En+ Group announced its mid-and long-term GHG reduction targets. The Group believes that these stretching targets represent the most ambitious climate change targets in the global aluminium industry 2015 - RUSAL set five GHG reduction goals for the period until 2
Slide 13: Green Aluminium Vision
Green Aluminium Vision In July 2020, En+ Group launched its Green Aluminium Vision. It set out nine principles to lead the industry into the low-carbon economy by developing a new asset class of green aluminium 1. 1. Determination Determination to to reduce emissions reduce acrossacross emissions th
Slide 14: En+ Group and the Victoria & Albert Museum
En+ Group and the Victoria & Albert Museum The Victoria & Albert Museum in London in front of 'Between Forests and Skies', the art installation sponsored by EN+ and made from one of the first batches of our aluminium created using our groundbreaking inert anode technology. The pavilion is currently
Slide 15: Our approach to net zero
4 15 20 27 35 Net zero Our approach Actions in Actions in Driving our overview to net zero Metals segment Power segment commitment 15
Slide 16: En+ Climate Change Taskforce
En+ Climate Change Taskforce To manage our pathway to net zero, we have created the En+ Climate Change Taskforce to drive our transformation. Initial setup January 2021 – Climate targets approved by Board of Directors February 2021 – Taskforce setup and working group created to develop a plan an
Slide 17: Strategic approach to net zero
Strategic approach to net zero Adoption of science-based targets (SBTs) are an important component of our decarbonisation strategy in alignment with the 1.5-degree future. SCIENCE-BASED APPROACH The Metals segment will introduce SBTs for Scope 1 & 2 in line with the aluminium sector GHG Pathways
Slide 18: Our roadmap to achieve net zero
Our roadmap to achieve net zero EN+ decarbonisation pathway Mln tCO2e 2018 2020 2023 2025 2030 2040 2050 64.86 64.32 70 60.92 59.07 60 25.19 23.24 41.39 23.16 31.23 50 23.14 17.00 40 16.06 39.66 38.20 41.53 41.53 30 36.49 (0.14) 20 32.17 15.63 10 0 9.73 0.00 (12.10) (10) (0.44) (0.44) (5.60) (17.00)
Slide 19: Business strategy
Business strategy Green development strategy MARKET SHARE 20% RUSAL share in global low- carbon aluminium En+ is an industry leader in low-carbon aluminium production1 Use unique sources of hydropower energy STRONG Comes with average carbon footprint of 2.4 t CO2eq/tAl2 produced (Scope to achieve ve
Slide 20: Actions in Metals segment
4 15 20 27 35 Net zero Our approach Actions in Actions in Driving our overview to net zero Metals segment Power segment commitment 20
Slide 21: High degree of vertical integration in the aluminium production process
High degree of vertical integration in the aluminium production process Bauxite and Nepheline Alumina Aluminium 5 6 1 2 Production process 3 4 •3 Alumina, or aluminium oxide, is extracted from the bauxite through 1• Aluminium production starts with the raw material bauxite, a 5• Alumina is used to p
Slide 22: Metal segment's modernisation program (1/3)
Metal segment’s modernisation program (1/3) Upgrade in aluminium production technologies Eco-Søderberg Pre-baked Anode Inert Anode (Ra-400; RA-550) Energy sources Clean power Clean power Clean power Low-emissions technology pathways AE frequency, AE/day 0.4 <0.04 0 Carbon anode consumption, t/t Al 0
Slide 23: Metal segment's modernisation program (2/3)
Metal segment’s modernisation program (2/3) In June 2021 Rusal announced its intention to implement a modernization project to create new production facilities on the sites of its existing workshops of aluminium smelters The intention is to significantly improve the production technology and env
Slide 24: Metal segment's modernisation program (3/3)
Metal segment’s modernisation program (3/3) Conversion to inert anode technology 0.9T O2 released per 1 T Al produced. The equivalent of around 70 hectares of forest Present by 2030 by 2050 Completion of confirmation tests Switching to the Inert Intensive R&D Getting ready for industrial scale Anode
Slide 25: Other initiatives in Metals segment
Other initiatives in Metals segment RECYCLING SHIPPING CO2 emissions absorption Energy efficiency control on The focus is on energy efficient regular basis by caustic soda Increasing the use of aluminium bulk carriers emitting fewer Introducing the scrap is one priority of the Implementing mor
Slide 26: Metals segment. Taishet construction
Metals segment. Taishet construction Taishet construction site and key facilities Taishet Aluminium smelter Location Irkutsk region 1. Storage facilities 2. Anode assembly department 3. Casthouse 1st stage – 428.5 ktpa, 352 potcells RA-400, amperage 440 kA Capacity/ technology1 2nd stage – 536
Slide 27: Actions in Power segment
4 15 20 27 35 Net zero Our approach Actions in Actions in Driving our overview to net zero Metals segment Power segment commitment 27
Slide 28: Value chain of Power segment
Value chain of Power segment Substantial degree of vertical integration provides En+ Group with significant advantages and additional sources of growth Value creation End users The presence of both HPPs and CHPs in centre the asset portfolio allows En + Group to HPP generation optimally distribute t
Slide 29: New energy modernisation programme
New energy modernisation programme Geographical proximity of HPPs and aluminium smelters, Siberia Key results in 2020 Expected results by 2025 2.5 TWh 2.5 mt of СО2e 1.71 TWh 1.98 mt of СО2e annual increase prevented increase in prevented of power GHG emissions power output GHG emissions generation
Slide 30: CHP modernisation programme
CHP modernisation programme State programmes for CHP modernisation State programmes for CHP modernisation The Group participated in the state programs for CHP modernisation providing Commence of Capacity, CAPEX2 guaranteed return on investment(1) Projects capacity supply MW USD mn Capacity Alloc
Slide 31: Opportunity to expand Power segment
Opportunity to expand Power segment Hydropower Solar power Segozerskaya HPP Telmamskaya HPP Nizhneboguchany HPP Pilot project in Abakan, Russia HPP Ambitions to expand solar energy generation Output 8 MW 450 MW 660 MW Expected 2022 2030 2030 completion date 31
Slide 32: Other Power segment projects
Other Power segment projects Energy efficiency improvement programme I-REC Electric vehicle charging stations in Irkutsk Period: 2021-2024 The first I-REC certificates were Goals: En+ Group has installed three pilot charging delivered in December 2020 stations for electric vehicles using CHAdeMO
Slide 33: Future projects of Power segment. Green hydrogen and ancillary services
Future projects of Power segment. Green hydrogen and ancillary services EN+ opportunity to provide ancillary services such as storage, transportation and infrastructure En+ recently outlined plans to start production of 13 ktpa of green hydrogen using additional power capacity in Siberia and Karel
Slide 34: Nature-based solutions – compensation and neutralisation
Nature-based solutions –compensation and neutralisation Around 40% of emissions cannot be eliminated by applying the current level of technology and costs – these emissions need to be compensated by using technical and nature-based solutions: FORESTRY PROJECTS Reforestation Aerial firefighting 2018
Slide 35: Driving our commitment
4 15 20 27 35 Net zero Our approach Actions in Actions in Driving our overview to net zero Metals segment Power segment commitment 35
Slide 36: Partnerships and cooperation supporting our net zero journey (1/2)
Partnerships and cooperation supporting our net zero journey (1/2) En+ Group encourages all stakeholders in the aluminium and power Selected partnerships and member organisations(1) industries to drive transparency Advocacy UN Global Compact (UNGC) World Business Council on Sustainable Developme
Slide 37: Partnerships and cooperation supporting our net zero journey (2/2)
Partnerships and cooperation supporting our net zero journey (2/2) Customers and industry associations We proactively build partnerships to deepen the decarbonisation of the value chain, to expand access to low- carbon aluminium, and to promote deployment of low-carbon solutions and technologies 202
Slide 38: Transparency is the first step towards increased climate commitments
Transparency is the first step towards increased climate commitments Traceability CO2 content disclosure We promote enhanced product traceability We advocate for transparent disclosure of CO2 content as standard industry practise The ALLOW digital passport will provide our customers with easy We
Slide 39: Task Force on Climate-related Financial Disclosures (TCFD)
Task Force on Climate-related Financial Disclosures (TCFD) TCFD recommendations project is ongoing Governance Strategy In 2020-2021, the Board and HSE Committee discussed climate-related Climate-associated risks and factors have been identified, analysed and issues in 18 out of 43 meetings. The ma
Slide 40: Our recommendations on policy
Our recommendations on policy Carbon pricing Carbon Border Adjustment Mechanism Since 2017, in order to assess climate-related risks and opportunities and European Union’s Carbon Border Adjustment Mechanism (CBAM) is still factor them into investment decisions and business operations, the Group unde
Slide 41: Conclusion
Conclusion 2015 - RUSAL set five GHG reduction goals for the period until 2025 2016 - RUSAL set two additional GHG reduction goals for the period until 2025 2017 - Launch of ALLOW, low-carbon aluminium brand 2019 - Group’s sustainability report 2018 2020 - Group’s sustainability report 2019 verified