A multi stakeholder approach to responsible sourcing

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1 Aluminium Stewardship Initiative A multi stakeholder approach to responsible sourcing Dr Fiona Solomon, ASI Executive Director International Raw Materials Conference, Berlin 11 November 2015

2 Thealuminium value chain Images Rio Tinto, Hydro, Novelis and Rexam Bauxite mining Alumina production Primary aluminium production Scrap collection Refining and remelting of scrap Semifabrication Product use Product manufacture

3 ASI a brief history 2009 Multi stakeholder group on responsible aluminium 2010 Report from Track Record recommending third party certification system 2011 Agreement to develop ASI work program 2012 IUCN appointed as co ordinator for initial ASI standards setting process 2014 ASI Performance Standard launched 2015 ASIE Executive Director appointed and ASIi incorporated Work underway to develop a functioning independent third party certification program Rio Tinto

4 ASI members and participants Producers Aleris Constellium Hydro Novelis Rio Tinto Alcan Packaging Ball Corporation Coca Cola Enterprises Constantia Flexibles Nestlé Nespresso SA Rexam Tetra Pak Automotive Audi BMW Group Jaguar Land Rover Construction Council for Aluminium in Building Schüco Civil Society and Others IUCN IGORA Cooperative for Aluminium Recycling Regain Materials Stakeholders in Standards Setting Group: Civil Society As You Sow Fauna Flora International Forest Peoples Programme International Alliance of Indigenous and Tribal Peoples of the Tropical Forests / Foundation of Indigenous Knowledge Promotion, Panama IndustriALL Global Union IUCN Transformando Conflictos Partners El Salvador Transparency International WWF Other experts: CII Godrej Green Business Centre, India Cleaner Production Centre South Africa Ecofys EMPA Materials Science and Technology IGORA Cooperative for Aluminium Recycling

5 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 i and dross Semi fabrication Product manufacture and use Material stewardship Recycling Images Rio Tinto and Novelis

6 ISEAL Alliance and assurance an evolving vision Patrick Mallet, ISEAL Technical Director, February 2015: [In future] certification is less about the audit and more about pulling together data from multiple sources to better understand the risks to sustainable practice at an enterprise level, then using that information to focus capacity building g f f p y g interventions and compliance assessments in the areas that matter most.

7 Assurance model design approach 1. Costs of certification need to be minimised to ensure ASI is accessible through the value chain. 2. Third party assurance is central, with company self assessment as a foundation for this framework. 3. A risk based or materiality approach to auditing and sampling evidence is essential for efficiency and can tie to desired impacts. 4. Harmonisation and cross recognition of parallel standards and systems of controls will reduce unnecessary duplication in ASI assessments. 5. Online management of assessment data will reduce direct and indirect costs of the assurance process and can enable a tailored materiality approach.

8 ASI Membership classes full andassociate associate Production and Transformation Full members Civil Society Industrial Users Associate members Associations Downstream Supporters General Supporters

9 Proposed ASI governance model Transition Advisory Group Exec Director Report and consult Appoint Report ASI Members: 6 classes (3 full, 3 associate) Board Elect and dismiss Report and consult Elect and dismiss Standards Committee Indigenous Peoples Advisory Forum ASI Secretariat Legal Finance Governance GHG Recycling Other Board Committees Working Groups

10 Key milestones to ASI certification platform 2015 General frameworks Develop governance and business model Develop proposed assurance model Further work on CoC standard Stakeholder outreach 2016 Implementation model Develop online assessment platform Develop monitoring and evaluation framework Broad stakeholder consultation on CoC standard Implement auditor accreditation i process Pilot testing of standards and assurance model Enhanced China engagement 2017 Operation Finalisation of all normative documents Mid late 2017: ASI Certification begins operation

11 Benefits of participating in ASI Norsk Hydro Be part of a constructive ti multi stakeholder tkhld dialogue about maximising the contribution of aluminium to a sustainable society Contribute to the development of a credible third party certification program for thealuminium value chain Shape the development of practical tools and resources thatsupport implementation Support ASI s mission to recognise and collaboratively responsible production, sourcing and stewardship of aluminium

12 More information Dr Fiona Solomon ASI Executive Director stewardship.org org Norsk Hydro Website: stewardship.org Join the ASI mailing list: Join the ASI mailing list: stewardship.org/mailing list/

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