AliGroup has outlined its decarbonisation initiatives and announced plans to halve its net operational emissions by FY35 from FY21 levels. The company is investing in projects to improve energy efficiency and reduce emissions intensity at its operations, with full costs and benefits included in valuations when there is a high degree of confidence that the project will achieve an emissions reduction.
Material actions and disclosures
Worsley Alumina’s life of operation plans (LoOP) include assumptions related to future decarbonisation of the alumina refinery. Cost assumptions associated with future decarbonisation initiatives, including boiler conversion projects, have been incorporated into the Worsley Alumina LoOP. Hillside Aluminium’s electricity is supplied by Eskom under a contract expiring in 2031, and its LoOP is currently limited to 2031, in line with the expiry of the existing electricity supply agreement.
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.
Forward commitments
AliGroup has established a joint working group with Eskom to develop a low-carbon long-term energy solution for Hillside, targeting commencement in 2031. This aligns with South Africa’s broader decarbonization objectives.
AliGroup’s operations are subject to various federal, state, and local laws, including environmental protection and emissions regulations in Australia, South Africa, and Brazil.
AliGroup’s management acknowledges that actual results may differ from expectations, and government policies and market developments continue to drive uncertainty in commodity, carbon, and energy price outlooks, which may impact the company’s approach to climate change and assumptions and judgments.
AliGroup’s key estimates, assumptions, and judgements with respect to transition risks and opportunities are based on the company’s expectations and assessments at the date of the report.
AliGroup’s financial statements reflect the company’s approach to climate-related risks and opportunities, including the useful lives of assets and the timing and cost of closure and rehabilitation activities.