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About ASI

Strategy

ASI’s Strategy is annually updated to guide our focus and progress.



Strategy on a page

In October 2022, the ASI Board held a full day workshop to reflect on ASI’s strengths, opportunities, aspirations and desired results, and review the existing framework for change, as part of ASI’s annual strategy processes.

ASI’s new Strategy on a page, below, illustrates our ‘theory of change’ – the mechanisms through which we aim to contribute to sustainability-enhancing changes in the aluminium sector.

 

 

ASI’s four strategic foundations

Effective Governance plays an enabling foundation for ASI’s work, with a focus on multi-stakeholder decision-making at a standards and corporate governance level, as well as organisational and financial resilience.

Robust Program provides the technical foundation for delivering quality implementation of agreed standards and supporting the integrity of assurance frameworks by members and auditors.

Driving Change highlights the critical role of data and transparency to track progress, deepen insights and bring together the necessary actors to ultimately catalyse sustainability sector transformation on key sustainability topics.

Beyond Certification recognises that ASI has an opportunity to complement the Certification program through work with other stakeholders, including Indigenous Peoples and local communities, to support direct capacity building and amplify positive change in the aluminium value chain.

 

Desired short-term outcomes (2022-2025)

These strategic foundations will drive ASI towards its desired short-term outcomes (2022-2025): following on from the 2022 Standards launch, to build scale of participation, strengthen engagement with collaborative initiatives and frameworks, and invest in our digital ecosystem to innovatively manage data and stakeholder processes.

 

Medium term outcomes (2025-2030)

These in turn will position ASI for its desired medium-term outcomes (2025-2030): to further evolve its standards and certification program to meet evolving needs, enable access to relevant metrics on progress, and to reach a critical mass for sectoral change at scale (through these and other drivers).  The next Standards Revision will be in this timeframe; while the  periodic major revision cycle is mapped onto the timeframes to highlight key milestones, these will be supported by more frequent guidance and learning updates.

 

Long term goals (2030-2050)

Together, these outcomes will propel ASI’s members and stakeholders towards our long-term goals (2030-2050) on climate, circularity, nature positive and delivering social value.  As ASI’s Strategy is updated annually, it is anticipated that these goals will become increasingly concrete (and urgent) as collective progress and effort is made across a wide range of programs.

 

Horizon challenges

ASI’s Strategy is situated in an understanding of the big picture challenges facing the aluminium value chain.  These long-term, structural challenges are the landscape and wider horizon in which ASI seeks to drive and contribute to positive change and transformation.

Hover over the issues for additional insights

 

Horizon issues

Climate action and risks Circular economy Future metals demand ESG in financing Resource pressures Sharing impact and benefit Geopolitics and economic power Data and Transparency

Climate action and risks

Part of the problem and the solution.
Aluminium needs to delink growth and emissions through: decarbonisation of electricity; direct emissions reductions; recycling and resource efficiency.

Climate impacts (environmental and social) are already visible and demand for action is accelerating. Climate risks include impacts on industry itself.

Circular economy

‘Closing all loops.’
Need to reduce sourcing from virgin materials, increase recycled content and remanufacturing, and generally rethink the material economy.

Current EOL aluminium product collection rates ~70%, increase of 10% in last 10 years. Waste streams must also be addressed e.g. bauxite residue, SPL in primary production.

Future metals demand

‘Footprint from a boom.’
Aluminium demand growth projected to increase 80% by 2050.

Drivers include rapid urbanisation, EV transition, electrical grid expansion to support renewables, replacing plastics in packaging.

Expect increased scrutiny of scaling commodities and their impacts.

ESG in financing

‘From alternative to mainstream.’
ESG performance will be rewarded through access to, and cost of, capital and company valuation.

Social will increase in focus in coming years.

Novel financing and production models to limit risk, growth in JVs and service agreements.

Standardisation and clarity of ESG metrics needed.

Resource pressures

‘Nowhere without challenges.’
Increasing strains on the world’s resources including water, biodiversity and  ecosystems.

Societies will be forced to more aggressively confront resource constraints and global limits.

Access to bauxite tends to be assumed, but supply chains face growing customer and regulatory due diligence.

Sharing impact and benefit

‘New models needed.’
Many social and environmental risks and externalities of mineral and metal production.

Local opposition to mining and refining will increase if no new business models are developed that benefit affected communities, particularly Indigenous peoples.

Lack of good post-closure remediation is leaving poor legacy.

Geopolitics and economic power

‘Unilateral efforts won’t cut it.’
Rise in economic protectionism, trade disputes/wars, local content laws for mineral processing.

Dominance of China across many metals.

Increasing economic power in developing regions eg India, Africa.

Global affairs will become more pluralistic, influenced through soft power and alliances.

Data and Transparency

‘Show me.’
Growing disclosures of non-financial data are guiding decision-making, procurement and enabling market differentiation / fragmentation on ESG.

How to maximise standardisation, usefulness and impact of data.  ‘Blockchain’ type models still nascent.  Data security remains an arms race.

 

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