Aluminium Stewardship Initiative
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1 Aluminium Stewardship Initiative ALUMINUM USA, Nashville Dr Fiona Solomon, CEO 26 October 2017
2 Antitrust Compliance Policy Attendees are kindly reminded that ASI is committed to complying with all relevant antitrust and competition laws and regulations and, to that end, has adopted a Competition Policy, compliance with which is a condition of continued ASI participation. Failure to abide by these laws can have extremely serious consequences for ASI and its participants, including heavy fines and, in some jurisdictions, imprisonment for individuals. You are therefore asked to have due regard to this Policy today and in respect of all other ASI activities.
3 Who is ASI in a nutshell? We are still pretty new: Incorporated in 2015, after many years of building participation and activities to that point. We are a multi-stakeholder program: Involving upstream, downstream and civil society organisations, and associations. We are growing fast: Nearly 60 members, after starting with an initial 13 only a few years ago.
4 What is ASI aiming to do? Vision: to maximise the contribution of aluminium to a sustainable society. The big picture here is a sustainable society, ASI wants to be part of the mix to help make that happen. Mission: to recognise and collaboratively foster responsible production, sourcing and stewardship of aluminium. The tool we are using is an independent third party certification program which covers the whole aluminium value chain. Sustainability standards in other sectors: forestry, fisheries, palm oil, cotton etc. ASI aims to be the first such program for industrial metals.
5 What is ASI aiming to do? Data and innovation: Key themes for programs like ASI. Developing an online assurance platform for companies and auditors that aims to centralise data and workflows. Part of our theory of change : to help create impacts. See sustainability and human rights principles increasingly embedded in aluminium production, use and recycling. Have companies increasingly invest in and reward improved practices and responsible sourcing for aluminium.
6 ASI members (56) at Sept 2017
7 The aluminium value chain Bauxite mining Alumina refining Aluminium smelting Scrap collection Refining and re-melting of scrap Semifabrication Product use Product manufacture
8 Aluminium Stewardship Initiative (ASI) ASI is working with stakeholders to develop an independent third party certification program for the aluminium value chain. Responsible production Responsible sourcing Material stewardship
9 ASI a brief history 2009 Multi-stakeholder group on responsible aluminium 2010 Report recommending third-party certification system 2011 Agreement to develop ASI work program 2012 IUCN appointed as coordinator for multi-stakeholder standards-setting process 2014 ASI Performance Standard published 2015 ASI incorporated and governance models developed 2016 First AGM, Constitution adopted, certification model in development 2017 Finalisation of program for year-end launch
10 ASI Membership Full members Civil Society (8) Production and Transformation (17) Industrial Users (9) Production and Transformation and Industrial Users can nominate for Board and Standards Committee, must seek certification Associate members Associations (17) General Supporters (2) Downstream Supporters (2) Downstream Supporters cannot nominate for Board and Standards Committee, no certification requirement
11 ASI governance working in partnership
12 Priority issues for ASI standards Bauxite mining Alumina production Aluminium production Biodiversity management Indigenous Peoples rights Greenhouse gas emissions for refining and smelting Bauxite residue, spent pot lining and dross Semi-fabrication Product manufacture and use Material stewardship Recycling Images Rio Tinto and Novelis
13 Assurance and Claims Performance Standard Chain of Custody Standard ASI normative documents
14 Performance Standard Overview Governance Environment Social 1. Business Integrity 5. Greenhouse Gas Emissions 9. Human Rights 2. Policy and Management 6. Emissions, Effluents and Waste 10. Labour Rights 3. Transparency 7. Water 11. Occupational Health and Safety 4. Material Stewardship 8. Biodiversity
15 ASI Chain of Custody Standard Mine to Casthouse Primary Aluminium Aluminium Casthouses Semi-fabrication and manufacturing to final product Post- Casthouse Recycled Aluminium Scrap to Casthouse
16 Chain of Custody Standard Overview General CoC Management 1. Management System and Responsibilities 2. Outsourcing Contractors Confirming Eligible Input 3. Primary Aluminium 4. Recycled Aluminium 5. Casthouses 6. Post-Casthouse 7. Due Diligence CoC Accounting, Documentation and Claims 8. Mass Balance Percentage System 9. Issuing CoC Documents 10. Receiving CoC Documents 11. Market Credits System 12. Claims and Communications
17 The purpose of each of the standards Uncertified Facility may not make any ASI claims Performance Standard Facility Certified to the ASI Performance Standard may make claims about the facility having met ASI Standard CoC Standard Facility Certified to both the ASI Performance Standard & CoC Standard May make claims about the facility having met ASI Standards & may sell ASI certified material
18 Step 1: Self Assessment Step 2: Certification Audit Step 3: Audit Report Step 4: Certification Issued Step 5: Periodic Reviews Steps to certification Preparation stage for the Certification Audit Conducted by the Member in accordance with their defined Certification Scope See section 7 for more details Conducted by an ASI Accredited Auditor who is an independent third party Risk-based assessment of conformance See section 8 for more details Auditor prepares Audit Report for ASI and Member Member implements corrective action plan/s where required Where Certification achieved, Step 4 commences See section 8.17 and 8.18 for more details ASI reviews Audit Report for clarity and completeness ASI issues Certification and updates ASI website See section 9 for more details Surveillance and Re- Certification Audits are conducted during / at end of Certification Period These verify continued conformance and / or may assess other identified risks See section 8 for more details
19 Approaches to certification scope Approach Certification Scope Examples Suitable for Business Level A whole Member company, a subsidiary of a Member or a business unit of a Member. GreenAl Ltd, which runs a smelter and 2 rolling mills. The packaging division of a diversified Member. Members that are interested in a business-wide certification. If the desired Certification Scope does not cover all relevant parts of the nominated Business, then a Facility Level or Product/Program Level Facility Level Products/P rograms Level A single Facility or group of Facilities which are a subset of a Member s total facilities. A single identifiable Product/Program or group of Products/Programs. A single mine. Five packaging manufacturing facilities out of a total of 50 operated by a Member. Low carbon aluminium. A car platform. A type of packaging. Material stewardship activities. approach must be taken instead. Members that are interested in certification for only a selection of their Facilities. A minimum of one Facility is required under this type of Certification Scope Members (usually Industrial Users) for whom a Product/ Program focus is more relevant than a Facility focus. A minimum of one Product/ Program as defined by the Member is required under this type of Certification Scope.
20 ASI Assurance Platform - elemental
21 2017 Timeline to operational certification system May-June Public consultation for: Performance Standard V.2 revision & Guidance CoC Standard V.1 draft 4 & Guidance Claims Guide V.1 draft 3 Assurance Manual V.1 draft 5 July-September ASI Pilot Program September-October Committee review of all feedback November-December Adoption of final Standards
22 2018 anticipated activities Members Working towards first certifications -2 year timeframe Mapping supply chains for chain of custody Customer/supplier outreach ASI Secretariat Member capacity building and support Monitoring and evaluation program evaluating impact ASI AGM week Perth (Mandurah), Australia May 22-24, 2018
23 Benefits of standards like ASI Multi-stakeholder engagement customers, suppliers, associations, NGOs. Better understanding of supply chains. Agree what better production looks like in a concrete and practical way. Incentives to improve sustainability practices through improved market access. A broader movement toward greater sustainability in the sector. Adapted from ISEAL, SDGs mean Business, 2017
24 Dr Fiona Solomon ASI Chief Executive Officer ASI Website Join the ASI mailing list
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