Alba 2016 Sustainability Report - Aluminium Bahrain

1 Alba 2016 Sustainability ReportMoving towards a more sustainable future His Royal Highness Prince Khalifa bin Salman Al Khalifa The Prime Minister of the Kingdom of BahrainHis Majesty King Hamad bin Isa Al Khalifa The King of the Kingdom of BahrainHis Royal Highness Prince Salman bin Hamad Al Khalifa The Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister of the Kingdom of BahrainDISclAIMeRForward-looking statements speak only as at the date of this Report and Aluminium Bahrain expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this Report .

2 No statement in this Report is intended to be a profit forecast. As a result, you are cautioned not to place any undue reliance on such forward-looking statements. You should not base any behaviour in relation to financial instruments related to the Company s securities or any other securities and investments on such information until after it is made publicly available by the Company or any of their respective advisers. Some of the information is still in draft form and has not been legally verified. The Company, its advisers and each of their respective members, directors, officers and employees are under no obligation to update or keep current information contained in this Report , to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein except where they would be required to do so under applicable law, and any opinions expressed in them are subject to change without notice.

3 No representation or warranty, express or implied, is given by the Company, its undertakings or affiliates or directors, officers or any other person as to the fairness, accuracy or completeness of the information or opinions contained in this Report and no liability whatsoever for any loss howsoever arising from any use of this Report or its contents otherwise arising in connection therewith is accepted by any such person in relation to such information. All photography and imagery presented in this Report is supplied and owned by Alba, unless otherwise stated. Front cover imagery supplied by Shutterstock under 2016 Sustainability ReportMoving towards a more sustainable future Alba aiming for a better this Report 42016 HIgHlIgHtS 7ouR oPeRAtIonS 10goveRnAnce 18 FInAncIAl PeRFoRMAnce 26ouR PeoPle 30 EMPlOYMENT 30 EMPlOYEE BENEFITS 30 SAFETY 31 OCCuPATIONAl hEAlTh 34 DIvERSITY AND INCluSION 37 TRAININg AND DEvElOPMENT 37envIRonMent 42 ENERgY

4 42 AIR EMISSIONS 45 WATER 47 WASTE AND RECYClINg 47 ENvIRONMENTAl COMPlIANCE 48ouR StAKeHolDeRS 52 OuR lOCAl COMMuNITY 52 ExTERNAl STAKEhOlDERS AND ENgAgEMENT 52 COMMuNITY SuPPORT AND INvESTMENT 54ouR SuPPly cHAIn 56 PRIoRItIeS FoR 2017 59gRI content InDex 60 2 MeSSAge FRoM tHe ceoOur employees remain our driving force and are ultimately responsible for achieving the Company s goals. Our investment in the education and professional development of our people has continued during 2016 and I am particularly proud that we have again exceeded the industry benchmark of 5% training hours (as a percentage of total employee hours).

5 We are also wholly committed to our wide range of stakeholders, with three key groups being Alba employees, our local community and Alba shareholders, including the government of has a strong relationship with the Bahraini community. In 2016 we continued to directly fund and support a range of community services, infrastructure projects in the local area as well as provide regular sponsorships and financial support for local and regional football teams. We understand the need to engage effectively with our local community on an ongoing basis and as such, we will be improving our stakeholder engagement processes and have commenced this process by preparing a Stakeholder Engagement Plan for the existing operation and the line 6 Expansion Project.

6 Our commitment to our shareholders can be demonstrated by the Corporate governance Framework that we have developed. Risk management is an integral part of our business operations. We have a formalised programme to identify potential risks and develop appropriate controls to either eliminate them and/or reduce them to a manageable level. We will continue to act with integrity and as a global corporate citizen; this 2016 Sustainability Report is just one example. Alba is investing in its future, with the line 6 Expansion Project well underway wherein the First hot Metal is scheduled for early 2019. Despite the challenging world market for Aluminium , we have sustained our financial performance with a full year net income of uSD 129 million resulting from a record-breaking production total of 971,420 metric tonnes.

7 this generated total sales of uSD billion for 2016. Dear stakeholders, I am very pleased to present our inaugural Sustainability Report . Whilst this is our first Report , it does not mean that we have not previously been proactive in progressing our Sustainability goals. We adopted a new approach in our safety culture in 2012 with a main emphasis on the personal ownership of safety, working safely as a condition of employment and that all work related injuries and illnesses are preventable. These have progressed over the years to encompass environmental and social goals so that we have now reached a level of maturity to Report on our Sustainability performance in 2016.

8 Despite the economic challenges we have experienced in recent years, we have continued progress on our Sustainability objectives. Safety continues to be a cornerstone of Alba s success. During 2016, we commenced a number of health and safety initiatives as well as programmes which included celebrating World Day for Safety and health at Work with an emphasis on workplace stress, marking International labour Day with a Family Day event, our Safety Convoy initiative and held special awareness sessions on site throughout the year with a primary focus on areas and activities which are considered to have a potential significant risk.

9 We conducted a hydration survey and continue to educate our employees on the importance of staying hydrated and the risks associated with heat stress. These programmes focussed on our overarching safety goal of achieving a zero accident workplace. During 2016, we saw a three-fold increase in the amount of training hours and most importantly, a reduction in both our lost Time Injury (lTI) and lost Time Injury Frequency Rate (lITFR).Our environmental performance during 2016 saw a reduction in both our energy and greenhouse gas emission intensities as well as a further decrease of our total fluoride emissions. We had no significant spills or significant environmental incidents, whilst our open green space known as the her Royal highness Princess Sabeeka Oasis continues to provide our employees much enjoyment.

10 Alba 2016 Sustainability Report | Message from the CEO | 3 Safety continues to be a cornerstone of Alba s success. During 2016, we commenced a number of health and safety initiatives and held special awareness sessions on site with a primary focus on areas and activities which are considered to have a potential significant risk. I am very optimistic going forward into 2017, although I acknowledge that we still need to progress along our road to achieving our Sustainability goals. We will continue to set stretch targets for ourselves along our continuous improvement path. I therefore share our 2016 Sustainability Report , our first Report , with you and welcome your Regards,Tim Murray Chief Executive Officer Aluminium Bahrain this RePoRtThis is the first public Sustainability Report for Aluminium Bahrain (referred to in this Report as Alba ) and includes all our operations and activities located in the Kingdom of Bahrain for the period 1 January 2016 to 31 December 2016, unless otherwise noted.