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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
7
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
8
The ASI Standard
9
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
10
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.
13
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
14
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
15
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
18
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
19
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?
20
aluminiumaluminiumstewardship stewardship initiativeinitiative
Giulia CarboneDeputy Director
Business and Biodiversity ProgrammeIUCN
[email protected]/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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