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Annual Report 2008 - AMG Advanced Metallurgical Group NV

Annual Report 2008 - AMG Advanced Metallurgical Group NV

Sustainable Development

Sustainable Development AMG is committed to achieving the highest standards of safety and environmental conduct at all of its manufacturing facilities and producing materials that help its customers to minimize negative environmental impact. Scope and Boundaries Two aspects of sustainable development remain central to AMG’s business. The first involves servicing the green economy, acting as a key link in the supply chain for the solar, nuclear, advanced materials and recycling industries, each of which will play a vital role in addressing the ongoing challenges of climate change, waste reduction and pollution elimination. At the same time AMG is committed to measuring and minimizing the environmental footprint associated with its own manufacturing operations. This report gives an overview of the safety and environmental performance of AMG’s Advanced Materials Division with specific focus on the comparison between data collected for that Division in 2007 (AMG’s first full year of operations) and 2008. AMG continues to utilize and develop the environmental aspects of the Global Reporting Initiative (GRI) as the basis for this report. It should be noted that the inclusion this year of data for the recently acquired Fremat facilities in Freiburg, Germany means that 2007 and 2008 data are not directly comparable. The facilities included in the report are detailed in the table below. 2007 2008 Ohio Y Y Chauny Y Y Lucette Y Y Nuremberg Y Y Rotherham Y Y Brazil Y Y Minworth Y Y Anglesey Y Y Freiburg N Y For the first time this year, AMG’s majority owned subsidiaries, Timminco and GK, were required to collect and report GRI sustainable development performance indicators. These subsidiaries will report on these sustainable development indicators in coming years. At present AMG does not collect data for its Engineering Systems Division since it represents a small fraction of AMG’s environmental impact. Workforce and Safety Data GRI Indicators LA1, LA4 and LA7 The continued health and safety of all employees is a core value of AMG. The safety data reported here covers all accidents involving AMG employees at any of the Division’s facilities. Local regulations were used to categorize lost time accidents. Accidents involving contractors working on these sites are not included in this data. In 2008 the Division had a workforce of approximately 1,400, of which 77% were covered by collective bargaining agreements. There were no fatal accidents among this workforce during 2007 or 2008. Safety performance continued to improve year on year. Within the Advanced Materials Division, the lost time accident (LTA) rate fell 18% from 4.5 in 2007 to 3.7 in 2008. 1 Similarly, severity of these accidents declined from 0.64 in 2007 to 0.54 in 2008. 2 1 Lost time injury frequency rate = number of lost time injuries x 200,000/total hours worked. Lost time injury was defined using local regulations and ranged from minimum one lost day to three lost days. 2 Severity is defined as the number of worker-days lost as a result of disabling injuries per thousand worker-hours of exposure. 62 Sustainable Development

Resource efficiency and recycling GRI Indicators EN1 and EN2 Recycling metals is core to a number of the Advanced Materials Division’s units. Each manufacturing site reports on its sources of raw materials in metric tons and utilizes the GRI guidelines to identify the origin as: I. Primary raw materials that are being used for the first time. These materials will mainly be ores or primary metals, or II. Secondary raw materials that are byproducts of primary production processes, or recycled materials that have already been used once and will be recycled so they enter a further useful life. In some cases determination of the origin of a material is difficult to determine. For example, although scrap aluminum clearly falls under the recycled category, aluminum ingots from aluminum producers are often a mixture of primary and recycled materials. Similarly, paper packaging often includes post-consumer recycled materials. Wherever possible, information is obtained from the supplier to make a determination; when a determination cannot be made, materials are categorized as primary by default. Excluding the Brazil mining operations, where by definition all raw materials are primary, in 2008 the Advanced Materials Division utilized 147,000 metric tons of incoming raw materials, 18% of which were either recycled or secondary raw materials. These recycled materials were primarily scrap metals and metal containing residues from the oil refining and power generation sectors. The percentage of primary raw materials used by the different units varies significantly depending on the business sector. Of particular note is Metallurg Vanadium where almost all metal-bearing raw materials are secondary, giving an overall secondary or recycled raw material usage of 67%. Energy consumption GRI Indicators EN3 and EN4 A full, detailed understanding of energy carriers, including electricity, natural gas, and liquid fuels and the sources of these energy carriers is needed in order to identify energy savings opportunities and to understand greenhouse gas emissions. All of the Advanced Materials Division’s sites were required to report a detailed breakdown of their energy usage and identify sources of energy. Administrative offices and inactive manufacturing facilities were not required to report. The total energy usage for the Division in 2008 was 944,000 gigajoules (GJ) compared to 920,000 GJ in 2007. The increase was commensurate with an increase in total production tonnages and the inclusion of the Freiburg facility in the 2008 data. The total was split almost evenly between indirect energy usage Sustainable Development 63

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