AliGroup has outlined its decarbonisation initiatives and emissions reduction targets, focusing on improving energy efficiency and reducing emissions intensity across its operations. The company’s primary ESG development involves investing in capital expenditure to support decarbonisation projects that are expected to achieve emissions reductions and are critical for meeting regulatory licensing requirements.
Material actions and disclosures
AliGroup’s Worsley Alumina operation includes assumptions related to future decarbonisation initiatives in its life of operation plans (LoOPs). These initiatives, such as boiler conversion projects, have been incorporated into the Worsley Alumina LoOP. Similarly, Hillside Aluminium’s LoOP is currently limited to 2031, in line with the expiry of its existing electricity supply agreement with Eskom.
AliGroup’s valuations include the cost and benefit of identified initiatives necessary to meet its Ultimate Parent’s target to halve its net operational emissions by FY35 from FY21 levels. This target reflects the company’s commitment to decarbonisation and its efforts to align with regulatory requirements.
Forward commitments
AliGroup aims to continue investing in decarbonisation initiatives to improve energy efficiency and reduce emissions intensity. The company plans to incorporate future decarbonisation costs into its LoOPs, ensuring that these initiatives are financially viable and aligned with long-term strategic goals.
The company also announced its intention to develop a low-carbon long-term energy solution for Hillside, which aligns with South Africa’s broader decarbonisation objectives. This initiative is part of a joint working group established with Eskom to secure low-carbon electricity supply beyond the current supply contract, which expires in 2031.
AliGroup’s approach to decarbonisation is based on the company’s expectations and assessments at the date of the report, and actual results may differ due to changes in government policies, market developments, and the physical impacts of climate change.
Attributed to the AliGroup’s announcement on the company’s website.