Traceability and responsible sourcing A case study from the reinforcing steels sector

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1 Traceability and responsible sourcing A case study from the reinforcing steels sector 8th Annual APRES Conference 1 st November 2018 Dave Knight Sustainability Advisor to CARES

2 Traceability The ability to discover information about where and how a product was made and through its full life cycle

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4 Raw materials Mined ores: Predominantly Iron Ore 20+ other metallic elements Other inputs: Coke Limestone Other non-metallic elements Energy Raw material sources Large scale mining Artisanal mining Chemical Industry Energy Industry Steel supply chain Scrap Steel: Traceable in certain regions, e.g. UK Commodity product with limited traceability globally Other inputs: Mined Ores Coke Limestone Other non-metallic elements Energy Sources: Adapted from CIRIA report C767 - Responsible sourcing. A handbook for the construction industry With additional stages added. Steelfacts from Worldsteel.org. (Global Averages)

5 CARES Traceability system All CARES steels are 100% traceable at a batch and product level to the original steel producer. Traceability starts with a unique cast number. Molten steel is cast, rolled, and then delivered to the fabricator. During cutting or bending the cast number is accompanied by a bar schedule reference and bar mark before delivery and use. Batches of product will carry the labels shown.

6 Relevant scheme criteria The organization shall complete an initial review/due diligence by assessing and documenting its adverse impacts (risks) and beneficial impacts (opportunities). It shall consider these using a life cycle perspective, the degree of influence or control it has over the impacts and periodically update them should it identify a change

7 Relevant scheme criteria The organization shall ensure traceability throughout the full life cycle and made the extent of traceability publicly available The organization should map sustainability issues to purchase categories and to relevant suppliers The organization shall publish a Responsible Sourcing Policy/an Ethical Supply Chain Practices Policy/ a Sustainable Procurement Policy or equivalent reflecting management's commitment to promote Responsible Sourcing. Its scope shall be aligned to the environmental and social impacts as listed in CARES SCS Applicable Appendix's Section 3. (vi)

8 Environmental and social impacts in CARES SCS Applicable Appendix's Section 3. (vi) 2.1. Global Warming Potential (GWP) and Greenhouse Gas Emissions (GHG) 2.2. Transport Impacts 2.3. Primary Material Use and Materials Efficiency 2.4. Energy and Water Use 2.5. Biodiversity and Eco-toxicity 2.6. Waste and By-Product Management, Recyclability and Recycled Content 2.7. Land Remediation 2.8. Reporting Environmental Performance to Stakeholders 2.9. Environmental Management and ISO Human Rights, Slave Labour, Child Labour, Workers Conditions, Fair Labour Conditions (Fair Treatment, Fair Wages, Employment Equality, Equality in respect of Gender, Ethnicity, Religion, Political Persuasion, Sexuality, Disability), Working Hours, Overtime, Holidays, Freedom to join Trade Unions (Freedom of Association) 3.2. Safe and Healthy Working Conditions 3.3. Stakeholder Complaints and Prosecutions 3.4. Skills and Training (Development of Employees) 3.5. Community Relations and Community Initiatives 3.6. Reporting Social Performance to Stakeholders 3.7. Social Accountability Management System and SA 8000

9 Relevant scheme criteria The supplier selection and evaluation system should include consideration of the environmental and social impacts listed in CARES SCS Applicable Appendix's Section 3. (vi) The organization shall complete the "KPI" within this workbook for "Suppliers' Management System Approvals" (ISO 9001, ISO 14001, OHSAS 18001/ISO 45001) /6/7 The organization should assess extent of suppliers [ ] management system approvals Sustainability training should be offered and provided to suppliers

10 Responsible sourcing opportunities Global, principles led, approaches with local implementation Wider adoption of standards Better regulation and enforcement across all of value chain Collaboration at all stages of the value chain Increased transparency from traders and commodity markets Improved monitoring, greater transparency and adoption of higher standards further up the supply chain for all inputs Improved systems, data sharing and reporting