Consolidated ESG disclosures
|Section||Reporting element||Information and the source|
|Corporate governance disclosure with respect to climate risks and opportunities (CR&O)||Management role in assessing and managing CR&O|| The Health, Safety, Environment and Sustainable Development Committee acts to assist the Board of Directors by developing and providing recommendations on: |
|Corporate governance disclosure with respect to CR&O||Control of the Board of Directors over CR&O|| As part of the CDP, KMG has been disclosing data on direct and indirect greenhouse gas emissions, greenhouse gas management, and key risks and opportunities across all KMG's assets, including international assets in Romania and Georgia, since 2019. |
In July 2021, the KMG Climate Change 2020 Questionnaire was published. According to the report, the direct carbon dioxide emissions at KMG Group’s level totalled 8.7 mln tonnes in 2020 (9.7 mln tonnes in 2019). The CO2 equivalent data are presented using the global warming potential set out in the IPCC Fifth Assessment Report (28 for methane and 256 for nitrous oxide).
The greenhouse gas emissions data were verified by an independent accredited organisation’s report for each subsidiary or associate. Data for 2021 will be disclosed in KMG’s CDP report to be published in Q3 2022. We seek to ensure consistency and comparability when preparing our disclosures. We are committed to enhancing disclosures and increasing the scope of reporting around our Scope 3 emissions.
|Disclosures on the actual and potential impact of CR&O on the Company’s operations, strategy, and financial planning where such information is material||Short-, medium- and long-term CR&O identified by the Company||The Company has developed the 2022–2031 Low-Carbon Development Programme, which includes both existing opportunities to reduce our carbon footprint (higher energy and resource efficiency) and additional areas for decarbonisation (RES, CO2 capture, use, and storage, forest carbon projects, hydrogen production).|
|CR&O impact on the Company’s operations, strategy, and financial planning|| Several scenarios are modelled based on global economy development: |
For more details, see Global Trends and Their Impact on Strategy Implementation
|Processes used by the Company to identify, assess, and manage climate risks (CR)||Processes used by the Company to identify and assess climate risks|| In its operations, the Company faces risks related to climate change, including: |
|The way the processes of identifying, assessing, and managing climate risks are integrated into the Corporate Risk Management System||Data for 2021 will be disclosed in KMG’s CDP report to be published in Q3 2022.|
|Indicators and targets|
|Disclosure of indicators and targets used to assess and manage relevant CR&O where such information is material||Disclosure of indicators used by the Company to assess relevant CR&O in line with its strategy and risk management process||Data for 2021 will be disclosed in KMG’s CDP report to be published in Q3 2022.|
|Disclosure of Scope 1, 2, and 3 (where applicable) GHG emissions and associated risks|
|Targets used by the Company to manage CR&O; performance vs targets|| |
See Commitment to UN Global Compact principles and 17 Sustainable Development Goals