aluminiumaluminiumstewardship stewardship initiativeinitiative

Aluminium Stewardship Initiative:

A Value Chain ApproachRotterdam, 16 June 2014

KEYNOTE PRESENTATION

Aluminium Growth Story

Lower GHG emissions through lighter vehicles and through its recyclability

Bringing energy efficiency for cities and building in an energy constrained world

Preserving food and medicines through its unique barrier properties

Aluminium in Automobile Production

Aluminium in Coffee Capsules

Aluminium in Food & Beverage Packaging

Industry is under increased scrutiny

From communities located around industry Local communities

Environmental authorities

NGOs,

From stakeholders involved with the value-chain :• Consumers, thus retailers

• Big brands who influence the entire supply-chain

• Product designers, architects, Material specifiers

Both contituencies require increased transparency

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Industry is under increased scrutiny

From communities located around industry Local communities

Environmental authorities

NGOs,

From stakeholders involved with the value-chain :• Consumers, thus retailers

• Big brands who influence the entire supply-chain

• Product designers, architects, Material specifiers

Both contituencies require increased transparency

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The ASI Standard

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The Aluminium Stewardship Initiative

• It brings together leaders in the aluminium value chain committed to maximising the value that their product and activities generate while minimising their negative impacts

• Supporting companies are: Aleris, Amcor Flexibles, AMAG/Constantia Flexibles, Audi, Ball Corporation, BMW Group, Constellium, Hydro, Jaguar Land Rover, Nespresso, Novelis, Rexam, Rio Tinto Alcan, and Tetra Pak

• ASI’s first goal is the development of the Aluminium Stewardship Initiative Standard

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The ASI Standard

The aim of the ASI Standard is to foster responsible resource management of aluminium through the entire value-chain

The Standard will define principles and performance criteria in the area of governance, environmental and social practices

ASI’s Standard-setting process will be a fully multi-stakeholder one, in compliance with ISEAL’s standard-setting code (V5.0), which establishes rules for legitimate and effective standard-setting processes

It will build on the many existing good practices and standards developed within the Aluminium industry and within other relevant sectors

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Sustainability “hotspots”

Material Stewardship

Energy and greenhouse gases

Bauxite residues, SPL and dross

Biodiversity Conservation

Human Rights

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Linking the various process steps through a Chain of Custody

• Company and/or facility level.

• Only relevant to the CoC of the aluminium which enters a facility for processing or handling and passing onto the next stage of the supply chain.

• Companies may be involved in the value chain of other metals this standard is only relevant at the facilities in the Aluminium value chain.

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Linking the various process steps through a Chain of Custody

Mass balance:o Administrative systemo No physical traceabilityo All material is either ASI compliant or eligible

for mixing

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The Standard Setting process

• The Standard Setting Group is the leading body in the development of the standard

• It includes the 14 companies supporting ASI and 15 non industry representatives

• With a balanced stakeholder representation from industry and non industry groups, the Standard Setting Group will review the various drafts and comments received during the consultation

• The Standard Setting Group conduct its business during face to face meetings (3 planned in 2014) to revise the comments received and decide what changes to make

• Two public consultations are organized during which the Draft ASI Standard is available to the public for comments

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The Standard Setting Group

15 non industry representatives selected for the expertise and reputation

Together with the representatives of the 14 ASI Companies will decide on the ASI Standards

These include include : Cleaner Production Center South Africa and India Ecofys EMPA – Materials Science and Technology Fauna Flora International Forest People Programme IndustriAll Social Accountability International Transparency International WWF

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The Standard Setting Process

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First Standard Setting Group review (21-23 January 2014)

First Public

Consultation (1

February -29

March 2014)

Second Standard Setting Group

review (13-15

May and 1-2 July 2014)

Second Public

Consultation (14 July – 7

September 2014)

Third Standard Setting Group review (23-25

September 2014)

Final approval

and launch of ASI

Standard Version 1

(by 31 December

2014 - to be confirmed)

COMPLETED

COMPLETEDIN PROGRESS

ASI Standard Implementation

Different options being discussed, from Third party Certification to Public Reporting Platform

A Stakeholder Forum will be maintained

ASI will establish its self as an independent organization

Role of an Initiative vs role of the relevant Industry associations

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Key Challanges

The standard can be designed for the leaders or designed for “entry level” performance

Should the sustainability issues be addressed only by a sub section of the value chain (where these issues are more prominent) or a due diligence process should determine where the issues need to be addressed?

Voluntary standards at global level and different local requirements Building a critical mass of industry and non industry stakeholders : why

non industry don’t want to participate? Why certain industry take the leap of faith and participate.

From the commercial/consumer goods producers: they are aware that they won’t be able to source 100% ASI material – so risk of under-delivering

Implementation: Ensure that there is enough material flowing Costs of verifications seen as a barrier

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Questions

1. What sustainability issues have your customers raised in relation to your use of metals?

2. Implementing a Standard: what are the possible options (in terms of systems and verification) that would guarantee credibility to your sourcing scheme?

3. Tracing back: how important is this for you?

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aluminiumaluminiumstewardship stewardship initiativeinitiative

Giulia CarboneDeputy Director

Business and Biodiversity ProgrammeIUCN

Giulia.carbone@iucn.orgwww.iucn.org/business

www.aluminium-stewardship.org

For further information

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The Second Standard- Setting Group Meeting

15-17 May 2014 • Gland Switzerland

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