Emirates Global Aluminium

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

EGA aims to reach net-zero emissions by 2050; however, the company has not established specific targets for reducing its scope 1, 2 and 3 emissions. The company should establish intermediate targets at intervals of no more than five years to incentivise near-term action towards its long-term goal. Additionally, it should clearly report its base year emissions and any offsets it intends to use, allowing for a comprehensive analysis of its targets and progress against them.

EGA’s board is tasked with approving its ESG and sustainability strategies and the CEO is responsible for their execution. However, no evidence was found of the EGA board having climate-related expertise or experience, or of incentives for managing the low-carbon transition. The company lacks a transition plan or climate strategy with financial estimations and associated costs. Furthermore, the company does not disclose its revenues from low-carbon products, and there is no evidence to suggest it is creating or expanding low-carbon business models or implementing actions to decarbonise activities within its existing business models. The company is recommended to establish emissions reduction targets and short- and long-term action plans, as well as to develop and report its low-carbon business models.

No evidence was found showing the company’s consumption of low-carbon electricity. Additionally, no evidence was found that the company has commitments to reduce scrap in its operations. The company should develop a comprehensive plan for scrap reduction with quantitative targets and a timeline. It should also detail its method for implementing this plan. Moreover, the plan should be regularly monitored and its responsibility should lie with high-level employees in the company. The company can enhance its transparency by disclosing its research and development (R&D) expenditure over the last three years and providing quantitative data on its investment in low-carbon technologies.

EGA states that it engages with suppliers to complete an ESG questionnaire and that it disengages from activities when suppliers do not behave in accordance with their commitment. Additionally, EGA builds close relationships with customers and provides low-carbon products. However, the company lacks both supplier and client engagement strategies to promote emissions reduction and the low-carbon transition. Moreover, the company lacks a policy for engaging with trade associations on climate change. As one of the largest primary aluminium producers in the world, EGA should encourage emissions reduction by shifting demand towards low-carbon alternatives and implementing action plans. Further, it should consider publicly committing to the Paris Agreement as well as actively participating in initiatives for emissions reduction.

EGA publicly discloses its emissions data and has a net-zero emissions target for 2050. However, the company does not disclose the base year emissions used for its target. It also does not have specific targets for any of its scope 1, 2 or 3 emissions originating from its operations or its supply chain. The company has not developed a vision of what its business will look like in a low-carbon future aligned with the Paris Agreement.

EGA states in its Sustainability Report that it aims to further decarbonise its aluminium production. Furthermore, the company states it is the first in the world to produce aluminium commercially using solar power, starting in 2021. However, the company needs to provide further details on its decarbonisation pathway. For instance, it should disclose its climate strategy towards a low-carbon transition, including financial estimations and associated costs, as well as short- and long-term action plans. EGA also lacks a comprehensive stakeholder engagement strategy on climate change or emissions reduction.

EGA has reduced their emissions intensity by 5% between 2017 and 2022, but this falls behind the industry expectations. The company has been disclosing its scope 3 emissions but only after 2022; therefore, it is difficult to assess the future trends in its downstream scope 3 emissions. The company should disclose its emissions intensity or absolute emissions data to allow for an analysis of its performance to date. Moreover, EGA states that aluminium production comes with the challenge of energy-intensive production processes and high waste volumes, without mentioning what it is doing to tackle these challenges. Additionally, there is no evidence that the company has a strategy to engage its clients and suppliers to reduce emissions.

EGA does not provide information regarding its low-carbon capital expenditure and low-carbon mitigation R&D. The company also does not disclose whether it is creating or expanding low-carbon business models or implementing actions to decarbonise activities within its existing business models.

EGA does not have a transition plan and there is no evidence it intends to develop one in the near future. Given its impact, it is crucial for the company to set out a transition plan to achieve a low-carbon transition within the industry.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.
No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

The company discloses the actions it takes to create jobs through its automotive training center which enables graduates to start their own vehicle repair businesses and avail employment opportunities. Furthermore, it discloses that it has signed up for the National In-Country Value Program of the UAE government, which has created 2,000 jobs for national talent over the past years. However, no public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. No relevant disclosure was found of the company’s assessment of employment dislocation risks.
The company discloses the actions it takes to provide training and education opportunities for workers and affected stakeholders. For instance, the company is actively engaged in community development and skills training initiatives, such as providing vocational training to over 600 individuals in Guinea and establishing an advanced automotive training center in 2021 to support Guineans seeking careers in mechanics. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

No relevant disclosure was found to show if the company identifies the impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to their social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work. However, no evidence was found to show that it expects its business relationships to respect the ILO fundamental rights at work. No evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and in its supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers. However, there is no evidence to show that it expects the same commitment of its business relationships. Furthermore, no evidence was found of the company having a time-bound target for paying all workers a living wage. There is no evidence that the company discloses the proportion of its direct workforce covered by collective bargaining agreements. No relevant disclosure was found of the company’s required working hours or additional indicators of workforce diversity. The company does, however, disclose one or more time-bound targets on gender equality and women’s empowerment.

The company commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. There is no evidence to show that the company discloses its global tax strategy, nor is there relevant disclosure of the corporate income tax it pays in each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. However, it does not have a lobbying and political engagement policy, and it does not specify that it does not make political contributions. No relevant disclosure was found of the company’s expenditure on lobbying activities.