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ASI News - October 2018 

Responsible Sourcing and ASI

ASI's mission focuses on the responsible production, sourcing and stewardship of aluminium.  In this month's newsletter, we take a look at some of the key components of current responsible sourcing discussions.

'Conflict minerals'
One of the key developments over the last decade in minerals and metals supply chains has been the emergence of due diligence approaches around 'conflict minerals'.  Originally focused on tin, tungsten, tantalum and gold ('3TG'), international frameworks such as that of the OECD Due Diligence Guidance for the Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and the CCCMC Chinese Due Diligence Guidelines for Responsible Minerals Supply Chains have an expanded focus on all minerals.

This month, the London Metal Exchange (LME) published a position paper outlining new proposals for responsible sourcing of metal for their listed brands.  LME are seeking feedback on their proposals, which include a requirement that all brands undertake an OECD “red-flag” assessment to determine “higher” or “lower” focus classification for further audit processes under an industry-specific program like ASI.  Under the proposal, standards programs like ASI would also be required to undertake an 'alignment assessment' against the OECD Guidance.  ASI is working on its feedback to LME on these proposals and welcomes comments from members and stakeholders in the next few weeks.

Human rights due diligence
Another important area of supply chain due diligence relates to human rights more broadly. Increasingly we are seeing legislation in areas such as modern slavery, human trafficking, and a 'duty of vigilance' regarding potential human rights impacts in global supply chains, particularly for larger or multi-national companies. There is also a strong focus on human rights regarding impacts on Indigenous Peoples.

The ASI Performance Standard refers specifically to the UN Guiding Principles on Business and Human Rights, and the need for companies seeking ASI Certification to implement a human rights due diligence process. Additionally, for new projects and major changes to existing facilities, the Standard requires environmental, social and human rights impact assessments.  ASI's Human Rights Working Group is currently developing more detailed guidance for members and auditors on good practice in this area.

ASI Chain of Custody Standard and due diligence
The ASI Chain of Custody (CoC) Standard cross-references some of these important requirements contained within the ASI Performance Standard by requiring due diligence for all Non-CoC and Recyclable Scrap Material inputs on these issues:
  • Anti-corruption
  • Responsible Sourcing
  • Human Rights Due Diligence
  • Conflict Affected and High Risk Areas
These are all requirements in the ASI Performance Standard that already have a supply chain related dimension.  We are seeing a lot of interest in the ASI CoC Standard and how it can roll out through complex global value chains.  The ASI Secretariat continues to work on new communication and training resources to support learning and new practices.

Growing expectations
Stakeholder expectations for due diligence will continue to grow.  Issues like biodiversity, GHG emissions, and other environmental impacts and management systems in metals supply chains are also likely to become wrapped into formal due diligence processes in future, and not just through a human rights lens.  For example, the Responsible Minerals Initiative (RMI) and Drive Sustainability have collaborated on a study of responsible sourcing of materials in the automotive and electronics sectors.  The study assesses the importance of 37 materials to automotive and electronic industries and evaluates environmental, social and governance risks for those materials at industry levels.

ASI's Certification program has created a platform to introduce a 'due diligence culture' in aluminium value chains through its mission on responsible sourcing.  This is an area that will continue to have a lot of focus in the coming years for all stakeholders, covering a broad range of issues and challenges.
Links to more information:
LME Responsible Sourcing Position Paper  •  ASI Standards overview  • ASI Chain of Custody Standard  

ASI certifies first companies in the downstream automotive and packaging sectors


In October, Audi and SIG became the first two 'Industrial User' companies to be certified against the Material Stewardship requirements of the ASI Performance Standard.  SIG was also certified against the ASI Chain of Custody Standard as part of a combined audit process. Read the ASI media releases for Audi and for SIG on our website!

educationAl gets a content boost in October

We have been busy! In October, we added three fundamentAl webinars, one inspirationAl webinar and one new conversationAl interview: Consult our educationAl page for all our webinars and interview videos.

ASI MEMBERSHIP NEWS

ASI currently has 71 members working together towards responsible aluminium, and will be announcing more new members next month. For more information about ASI membership, please visit the Join ASI page on our website! 

UPCOMING EVENTS

Last few spots available for ASI training in Gulf


DUBAI, UAE: Auditor training [November 14]. ASI Members and interested stakeholders are also warmly invited to join this Auditor training session.
Training Venue: JW Marriot Marquis.

To register, or for more information on 2019 training plans, email Krista West, ASI Director of Learning.

What is the ASI Secretariat up to?

[30 October - 1 November] The ASI Secretariat will be holding their first annual planning and review retreat in Melbourne over 3 days.  The focus will be on ASI's plans and objectives for the coming year, including in the areas of elementAl development, communications, regional outreach, member and auditor training, oversight procedures, monitoring and evaluation, and internal management systems. 

[11-13 November] ASI will present at the ARABAL 2018 Conference in Kuwait as part of a panel discussion on 'Environment and Sustainability'. More information

[12-13 November] ASI will participate in a Roundtable being convened in London by the International Council on Mining and Metals (ICMM) and the Responsible Minerals Initiative (RMI) on ‘Enabling responsible value chains through collaboration’.  

[15 November] ASI will present at the European Commission's Raw Materials Week in Brussels as part of a conference on 'How to reconcile the needs of the extractive industries with the protection of ecosystems and biodiversity'. More information

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