alcan’s integrated supply chains and strategic partnerships with industrial customers corporate...
TRANSCRIPT
Alcan’s integrated supply chains and strategic partnerships with industrial customers
Corporate social responsibility by optimizing supply chains
World Environment Center - International ForumLondon, 22 October 2003Jürg Gerber, Alcan
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WEC CSR Alcan supply chain London 22 Oct 03
1 Alcan activities, presence and the global picture
2 Alcan management system elements
3 Alcan EHS product stewardship and EU Directives
4 Alcan supply chain example: automotive
Structure
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WEC CSR Alcan supply chain London 22 Oct 03
Rolled Products
Engineered Products
Packaging
Bauxite mining
Alumina refining
Aluminium smelting
Alcan - a global leader in aluminium, packaging and recycling
2002 revenues: US $ 12.5 billion
54‘000 employees
Active in 42 countries
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WEC CSR Alcan supply chain London 22 Oct 03
Alcan’s Presence
Bauxite, Alumina and Specialty Chemicals Primary Metal Rolled Products Europe Rolled Products Americas and Asia Engineered Products Packaging Corporate/Other Offices
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WEC CSR Alcan supply chain London 22 Oct 03
Aluminium life cycle - basis for sustainability
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WEC CSR Alcan supply chain London 22 Oct 03
The Alcan System allows to optimize material flows and maximize eco-efficiency as basis for sustainable development
Aluminium a global life cycle
Primary Metal - 26 mio tpy
Alumina Production - 50 mio tpy
Bauxite Mining -100 mio tpy (for metal production)
Main Producers- Australia- Guinea- Jamaica- Brazil- India- China- Venezuela- Russia- others
20022002
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WEC CSR Alcan supply chain London 22 Oct 03
77% of Hydropower for Primary Metal production is owned by Alcan
2002 Electricity Consumption for Primary Metal production
114.9 Mio GJ (31.93 Billion kWh)
• Alcan operates 16 aluminium smelters in 7 countries with a total capacity of 2.4 Mt per year
• Products: sheet ingot, extrusion billet, wire bar, rod, foundry and remelt ingots, ca 2.8Mio tons of products and parts
Alcan primary aluminium production - Energy source
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WEC CSR Alcan supply chain London 22 Oct 03
26%
32%
14%
19%
9%
Building
Transport
Engineering
Packaging
Others
Aluminium growth depends largely on the dynamics of growth of the different market sectors with different life times
Source EAA 2002Source EAA 2002
TOTAL 10.3 Mio t (Rolled, Extruded, Castings) - West and central Europe (excl CIS)
Aluminium use end markets Europe
Primary Metal4.6 Mio t
Recycled Metal3.6 Mio t
Net Imports2.1 Mio t
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WEC CSR Alcan supply chain London 22 Oct 03
1 Alcan activities, presence and the global picture
2 Alcan management system elements
3 Alcan EHS product stewardship and EU Directives
4 Alcan supply chain example: automotive
Structure
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WEC CSR Alcan supply chain London 22 Oct 03
• Shareholder Experience / Expectations• Stakeholder Expectations / Engagement• Regulatory Requirements• Environment, Health & Safety Standards• Product Standards• Corporate Reporting Requirements• Awards e.g DJSI
All play a role in determining corporate performance and “license to operate”. There has been a tendency to address demands in a silo fashion 10
• Environmental disasters• Corporate governance crisis• Increasingly well-organized NGOs• Increased public awareness • Government activism• Globalization of markets• Information technology
Demands on companies have intensified over recent years due to rapid economic, social, political, and environmental changes:
Demands and expectations on companies
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WEC CSR Alcan supply chain London 22 Oct 03
A sustainable approach to business needs to be supported by integrated business systems that enhance the credibility of the enterprise through both and its performance and its products.
Alcan has implemented EHS FIRST, as an integrated EHS management system that is part of Alcan’s overall integrated business model to achieve our governing objective of maximizing value.
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Sustainability and integrated business model
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WEC CSR Alcan supply chain London 22 Oct 03
Improving PerformanceStakeholder expectationsCommitment
Alcan’s sustainability framework integrates all activities
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WEC CSR Alcan supply chain London 22 Oct 03
Without such a strategy at the community level our long-term license to operate will be in jeopardy - risking long-term corporate value.
By engaging our stakeholders, we increase our understanding of the economic, environmental and social dimensions of our business decisions, and develop strategies that create value for all those affected by our choices.
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Building Alcan’s relationships
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WEC CSR Alcan supply chain London 22 Oct 03
> ....
> Co-operate with customers to understand their needs and support their use of best EHS practices in the design and manufacture of safe and reliable products that take full advantage of our materials’ properties throughout their life cycles. Alcan is often known by its products
– Working with customers ensures safe product use
– Many products offer EHS advantages that contribute to Alcan’s prestige
> Demonstrate leadership in EHS to reflect the superior and life-enhancing characteristics of our products for the benefit of all society. Life Cycle Assessment assists Alcan to improve EHS performance and encourage use of our products with less impact on society
- Increased use of aluminium in automobiles reduces emissions of CO2
- Improved packaging technology decreases the risk of product contamination
> ....
Alcan’s EHS Policy - 2 out of our 9 principles
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WEC CSR Alcan supply chain London 22 Oct 03
• Global EHS Management System with key requirements, roles and responsibilities
• Line Management leadership• Incorporates best practices, ISO 14001 and OHSAS 18001• Critical component of our commitment to corporate sustainability• Helps safeguard our license to operate and grow• Provides one of cornerstones of value-based company• Reinforces stakeholder relations• Delivers tools for prevention, which is highest value alternative• Enables continual EHS improvement and value maximizationSpecific EHS FIRST programs have been developed in order to address the relevant EHS aspects of our production processes and products.
On the environmental side these programs require every Alcan site to maintain an inventory of all resources and all process inputs and outputs, including potential environmental releases. Under these programs, all sites must set objectives and targets for minimizing resource use and for preventing or reducing process releases. These data are also needed for our EHS product stewardship process and LCA calculations.
Alcan EHS FIRST overview
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WEC CSR Alcan supply chain London 22 Oct 03
1 Alcan activities, presence and the global picture
2 Alcan management system elements
3 Alcan EHS product stewardship and example EU Directives
4 Alcan supply chain example: automotive
Structure
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WEC CSR Alcan supply chain London 22 Oct 03
Alcan EHS Assessments
Relevant input for Alcan sites
Input for AlcanBusiness Units
Input for Public Affairs
and Associations
Input for Public Relations
Product related case studies
Input to product related issues
Product related EHS aspects
Market related EHS information
EHS product stewardship - main deliveries
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WEC CSR Alcan supply chain London 22 Oct 03
> The customers, significance of use phase and recycling> Alcan’s EHS Policy and commitment to sustainable development> Environmental Management Systems
– ISO 14001: “The organisation shall establish and maintain a procedure to identify the environmental aspects • of its activities• ...and of its products or services”
> The authorities– Upcoming IPP (Integrated Product Policy) legislation of the EU– EU Directives on recycling, e. g. ELV ( End of life vehicles) Directive
Definition. Life cycle assessment (LCA)
LCA is a scientific tool for the evaluation of all the effects (both positive and negative) on the environment of a product or a service throughout its complete life cycle’from cradle to grave’. LCA thus looks at effects in the field of raw material extraction, fabrication, transportation, use, and recycling/disposal, as well as from energy and ancillary material supplies.
EHS product stewardship - main drivers
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WEC CSR Alcan supply chain London 22 Oct 03
> We have to find out as early as possible...
– where threats and opportunities for our products resulting from ecologically motivated customer decisions exist;
– where the authorities interfere with our markets by new regulations and standards;
– where risks of product liability exist;
> We have to co-ordinate efforts to meet the challenges
> We have to identify long-term market trends from EHS information on products
EHS product stewardship - challenges
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WEC CSR Alcan supply chain London 22 Oct 03
Key factors which underline the need of the product dimension:
the overall quantity of products is increasing, the variety of products and services is increasing, innovation constantly creates new types of products, products are traded globally, products are becoming more complex, the product can be designed perfectly, but inappropriate use and disposal will cause significant environmental impacts, products now involve a greater variety of actors throughout their life-cycle.
Many open questions from our point of view e.g.:- how is IPP linked with other thematic strategies e.g. resource use, waste prevention and recycling etc- how to avoid ‘good and bad’ product lists etc, trend for product declarations- what about uniform national implementation plans- specific consequences for markets dealing with public procurement
EU - integrated product policy IPP
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WEC CSR Alcan supply chain London 22 Oct 03
1 Alcan activities, presence and the global picture
2 Alcan management system elements
3 Alcan EHS product stewardship and EU Directives
4 Alcan supply chain example: automotive
Structure
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WEC CSR Alcan supply chain London 22 Oct 03
Kingston Ontario (3) (4)
Dubuc, Quebec (2)
Detroit, Michigan (4)
Banbury, England (4)
Neuhausen, Switzerland (4)
Sierre, Switzerland (3)
Gottmadingen, Germany (1)
Rastatt, Germany (1)
Nachterstedt, Germany (3)
Dahenfeld, Germany (1)
Strojmetal, Czechia (2)
Markt Schwaben, Germany (2)
Tomos, Slovenia (2)
Singen, Germany (1) (4)
(1) Structures & Design (2) Engineered Shaped Products (3) Autobody Sheet (4) R&D and Technology
Alcan automotive locations
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WEC CSR Alcan supply chain London 22 Oct 03
Primary Ingot
Sheet Products
Engineered Shapes
Structures & Design
Market growth and Market growth and value creation in four value creation in four key marketskey markets
Alcan automotive Business Units
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WEC CSR Alcan supply chain London 22 Oct 03
Assets & Capabilities
Instrument Panel
Supports
Powertrain Components
Bumper Beams
Autobody Sheet
Crash Management Systems
Structural Elements
Supension Parts
Composite Products
Alcan automotive product portfolio
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WEC CSR Alcan supply chain London 22 Oct 03
> Environmental aspects
– Replace steel by aluminium (1 kg Al saves 20 kg CO2!)
– Contribute to improved design for weight saving and recycling
– Alternative materials (plastics, magnesium, honeycomb materials)
> Health and safety aspects
– Forgings for suspension system
– Bumpers and crash elements
> EHS issue management and legislation
– Lead restriction in casting alloys through ELV legislation
– Exemption list in ELV legislation for machining alloys
EHS product stewardship - Automotive main issues
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WEC CSR Alcan supply chain London 22 Oct 03
Jaguar XJ -- flagship vehicleFirst riv-bonded sheet monocoque
“World class - Best in class”Safety - Performance - Technology - Refinement
Example: Alcan and Jaguar
WEC CSR Alcan supply chain London 22 Oct 03
1982 1984 1986 1988 1990 1992 1994 1996
Basic Technology &
Patents
Metro
Materials, Pretreatment and Lubricant development
Performance of Adhesives (Durability Testing)
Replicas and Concept Vehicles
Structural Performance and Data
Modelling and Design
Structural Modelling
Manufacturing TechnologyKey steps in technology development
Jag X350
1998 2000 2002
Ford AIVsJag XJ220
Milestones of aluminium vehicle technology (AVT) development
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WEC CSR Alcan supply chain London 22 Oct 03
Aluminium Structure Technology
Understanding of Design Process
Materials Knowledge
Joint Design & Performance
Real Time Experience on Stamping & Die Design
A World-Class Supply Chain
Alcan’s contribution to Jaguar
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WEC CSR Alcan supply chain London 22 Oct 03
SmelterGB Canada
AluNorfHot Mill (1 or 2)
RemeltLatchford UK
SmelterElkem Norway
RemeltNorf
AluNorfCold Mill 4
(1680-2200 mm)
NachterstedtCold Mills
(<1680 mm)
NachterstedtGLA
NachterstedtCTL 3
UK Warehouse
NachterstedtShaped Blanks
C B Press-Shop
Jaguar
Assembly& Finishing
X350 aluminium sheet supply chain
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WEC CSR Alcan supply chain London 22 Oct 03
In addition to use of best environmental practices, a need for industry to work with stakeholders in addressing broader environmental concerns
Through strong product stewardship an opportunity to promote the lifecycle benefits of our products (aluminum in particular) through greater recycling and more efficient consumer products, such as light-weight vehicles
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Corporate commitment to environmental stewardship
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WEC CSR Alcan supply chain London 22 Oct 03
Aluminium is not consumed, it is used and re-used again and again
alu
Economic
SocialEn
viro
nmen
tal
Aluminium is a strong driver for sustainable development