Risk management

The company’s assets and employees may be exposed to a number of unpredictable events caused by progressive climate change, including floods, long-term heat waves, droughts, tornadoes, etc.).

Possible impact

• loss of property, increase in operating costs
• periodic production stoppages

Tools used to reduce the risk

• transfer of part of the risk to the insurer
• diversification of the location of production plants

The activities of the Group companies are associated with a significant demand for electricity as well as for energy-consuming products. The need to change the energy source used in the process of aluminum melting and heat treatment (natural gas) may result in an increase in purchase costs due to the use of mainly purchased thermal energy from the combustion of fossil fuels.

Possible impact

• inclusion in the European emissions trading system, which will result in costs of adapting the installation or purchasing CO₂ emission allowances from the market (lowering the profitability of production)
• administrative decisions limiting the scope of production
• reputational risk

Tools used to reduce the risk

• emission control and optimization of natural gas combustion processes
• formal procedures for overseeing aspects related to GHG emissions have been implemented
• supervision and monitoring of the emission sources of the Capital Group
• periodic air emission tests

Hazardous substances and mixtures are used in the production process of the group’s companies, which generates the risk of uncontrolled leakage.

Possible impact

• administrative penalties
• order to suspend the production process
• reputational risk

Tools used to reduce the risk

• supervision over legal requirements in the field of accident prevention and management of hazardous substances
• training in the field of environmental protection
• health and safety and fire protection in accordance with the schedule, supervision over infrastructure, especially in the field of maintaining the efficiency of installations: utilities, including air conditioning; machines and installations using hazardous substances

Lack of actions or insufficient actions to adapt the companies of the Capital Group to the standards and regulations aimed at transition to a zero-emission economy.

Possible impact

• loss of some sales
• the need to incur additional investment outlays
• higher production costs

Tools used to reduce the risk

• implementation of a system for monitoring direct and indirect greenhouse gas emissions and carbon footprint
• actions aimed at reducing GHG emissions and reducing the carbon footprint of products
• analysis of the possibility of offsetting part of own issues
• monitoring changes in legal regulations and analysis of the effects of their introduction

The success of an organization depends on its employees. Therefore, the ability to retain qualified staff in key positions in all areas of the company is important for current operations and development prospects.

Possible impact

• increase in costs resulting from lower work efficiency of new people
• additional costs of acquiring and training new employees

Tools used to reduce the risk

• periodic assessment and evaluation of individual positions and a remuneration policy adapted to it, personnel policy, including: resource planning
• development and training policy, competency management system, incentive system

Acceptance of personal or property benefits by an employee or group of employees. Offering personal or property benefits in return for a decision or action beneficial to the company.

Possible impact

• criminal sanctions, including financial penalties
• higher purchase costs
• loss of customers or suppliers

Tools used to reduce the risk

• internal procedures, including anti-corruption policy and purchasing procedures
• internal controls and audits
• launching channels for reporting potential events

Violation of human rights in the organization or in the supply chain.

Possible impact

• criminal sanctions, including financial penalties
• loss of customers or suppliers

Tools used to reduce the risk

• internal procedures, including a code of ethics, a policy of respect for dignity in the workplace
• internal controls and audits
• launching channels for reporting potential events
• introducing regulations in the supply chain to allow auditing of suppliers’ practices in relation to human rights