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Elkem : TCFD Report 2021.pdf

12/09/2021 | 08:22am EDT

TCFD Report 2021

Content

1.0

Elkem: Part of the solution

3

2.0

About Elkem

4

3.0

The TCFD recommendations and index

4

3.1

Recommendations

4

3.2

TCFD content index

5

3.3

CDP Climate and TCFD reporting

5

4.0

TCFD disclosure summary

6

5.0

Governance

7

5.1

Board-level oversight

7

5.2

Executive management team oversight

8

6.0

Strategy

9

6.1

Climate-related risks and opportunities

10

6.2

Climate-related R&O's influencing our strategy

12

6.3

Climate-related scenario analysis and resilience strategy

13

7.0

Risk management

15

8.0

Metrics and targets

18

8.1

Emission metrics

18

8.2

Elkem's energy metrics

18

8.3

Climate roadmap

19

8.4

Emission targets

20

8.5

Biocarbon share targets

20

8.6

Supplying the green transition metrics

21

TCFD Report 2021

2

1.0 Elkem: Part of the solution

Combating climate change is one of today's greatest challenges, and Elkem aims to be part of the solution. Therefore, it gives me great pleasure to introduce Elkem's first report that is aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Elkem provides advanced materials with a low carbon footprint, and we expect sustainability to drive an increased demand in the years to come. These products are essential for greener solutions like electric vehicles, renewable energy, and better buildings. To be able to reach our strategic goal of providing solutions for the green transition, we need to develop an increased understanding of how risks linked to climate change affects Elkem. That is why Elkem decided to implement the TCFD framework in 2020.

As a global industry company, we know that it is important to measure what matters. We are proud to say that we achieved an A- in the 2021 CDP Climate reporting, and will continue our efforts to again be granted a place on the A-list. Reporting according to the TCFD recommendations can build both internal and external understanding and capabilities that support the green transition, promote transparency, and contribute to climate action. The implementation of the TCFD framework is part of the process to critically evaluate our sustainability strategy and ESG KPIs.

We have spent most of 2021 discussing risks and opportunities connected to short-, medium- and long-term conditions for the company. At the same time, we have developed our new and ambitious climate roadmap towards 2031 and 2050. Elkem's climate roadmap is a way to show our response to the climate change landscape we have identified for Elkem - in 2021 and going forward.

Elkem endorses the aim of the Paris agreement of limiting global warming to well-below two degrees, and we will reduce our emissions accordingly. The 2021 climate roadmap highlights three pillars:

1. Reducing our emissions

Achieving fully climate neutral production throughout our value chain.

2. Supplying to the transition

Providing the advanced material solutions required to enable the green transition.

3. Enabling circular economies

Enabling more circular activities in our operations, products and markets.

We acknowledge that our climate work is a continuous process. That is why Elkem strives to mature our practices. In 2022 we will further integrate the climate risk management procedure alongside determining financial impact and investing our time on the climate roadmap and targets towards 2030. Elkem has good starting position, and we will use our competence in innovation, technology development and continuous improvement to enhance the operations, invest in climate solutions and work together with our stakeholders to limit global warming.

From

CEO Helge Aasen

TCFD Report 2021

3

2.0 About Elkem

Elkem is one of the world's leading providers of advanced material solutions shaping a better and more sustainable future. The company develops silicones, silicon products and carbon solutions by combining natural raw materials, renewable energy and human ingenuity. Elkem helps its customers create and improve essential innovations like electric mobility, digital communications, health and personal care as well as smarter and more sustainable cities. With a strong track record since 1904, its global team of more than 6,800 people has a joint commitment to stakeholders: Delivering your potential. In 2020, Elkem was rated among the world's top 5% on climate and achieved an operating income of NOK 24.7 billion. Elkem is listed on the Oslo Stock Exchange (ticker: ELK). www.elkem.com

  1. The TCFD recommendations and index
  2. Recommendations

There is a growing demand for climate-related information, and creditors and investors are increasingly demanding access to risk information that is consistent, comparable, and clear. The Task Force on Climate-related Financial Disclosure (TCFD) developed the TCFD disclosure recommendations to promote market transparency and stability. Additionally, TCFD encourages the standardised reporting structure for financially material climate-related risks and opportunities to give investors, lenders, and insurers enhanced comparability when assessing and pricing companies.

The TCFD recommendations are structured around four thematic areas that represent core elements of how organisations operate: governance, strategy, risk management, and metrics and targets. Moreover, the framework separates into three main categories: risks related to the transition to a lower-carbon economy, risks related to the physical impacts of climate change, and climate-related opportunities. The TCFD has also incorporated financial impact as an integral part of its disclosure recommendations.

Core elements of Recommended Climate-Related Financial Disclosures

Governance

Strategy

Risk

management

Metrics

and targets

Governance

The organisation´s governance around climate-related risk and opportunities.

Strategy

The actual and potential impacts of climate- related risk and opportunities on the organisation´s buisnesses, strategy , and financial planning.

Risk management

The process used by the oranization to identify, asess and manage climate-related risks.

Metrics and targets

The matrics and targets used to assess and manage relevant climate related risk and opputunities.

TCFD Report 2021

4

3.2 TCFD content index

The recommended disclosures in the TCFD framework is as follows:

Governance

Strategy

Risk management

Metrics and targets

Disclose the organisation's

Disclose the actual and

Disclose how the organisation

Disclose the metrics and

governance around climate-

potential impacts of climate-

identifies, assesses, and

targets used to assess and

related risks and opportunities.

related risks and opportunities

manages climate-related risks.

manage relevant climate-

on the organisation's

related risks and opportunities

business, strategy, and

where such information is

financial planning where such

material.

information is material.

Recommended disclosures

Recommended disclosures

Recommended disclosures

Recommended disclosures

a) Describe the board's

a) Describe the climate-related

a) Describe the organisation's

a) Disclose the metrics used

oversight of climate-related

risks and opportunities the

processes for identifying and

by the organisation to assess

risks and opportunities.

organisation has identified

assessing climate-related

climate-related risks and

over the short, medium, and

risks.

opportunities in line with its

b) Describe management's

long term.

strategy and risk management

role in assessing and

b) Describe the organisation's

process.

managing climate-related risks

b) Describe the impact

processes for managing

and opportunities.

of climate-related risks

climate-related risks.

b) Disclose Scope 1, Scope

and opportunities on the

2, and, if appropriate, Scope

organisation's businesses,

c) Describe how processes

3 greenhouse gas (GHG)

strategy, and financial

for identifying, assessing, and

emissions, and the related

planning.

managing climate-related

risks.

risks are integrated into the

c) Describe the resilience of

organisation's overall risk

c) Describe the targets

the organisation's strategy,

management.

used by the organisation

taking into consideration

to manage climate-related

different climate-related

risks and opportunities and

scenarios, including a 2°C or

performance against targets.

lower scenario.

3.3 CDP Climate and TCFD reporting

Elkem has reported to the Carbon Disclosure Project (CDP) Climate questionnaire since 2020. Reporting to CDP represents an important step for us to better identify and manage the climate- related impact of our business activities globally. This year, 2021, will be the first report aligned with the TCFD framework. The TCFD's focus and guidance on climate-related financial impact and scenario analysis will be an important process, both to ensure transparency, but also to improve our understanding of how climate-related issues can affect us, and how we will mitigate the expected changes.

TCFD Report 2021

5

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Disclaimer

Elkem ASA published this content on 09 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 December 2021 13:21:00 UTC.


© Publicnow 2021
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