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ASI News - May 2023

Using forest mulch to improve mine rehabilitation outcomes in Australia's first Indigenous-owned bauxite mine. Read the article below for more details. Photo credit: Gulkula
In this edition:

Holistic action needed to address broader sustainability challenges in the aluminium sector

The aluminium industry must act urgently to curb rising emissions and achieve climate plus broader sustainability-related goals. A holistic approach with tangible steps are crucial, as noted during the CRU World Aluminium Conference 2023, co-hosted by ASI and IAI.
 
The global aluminium industry faces a significant challenge in achieving the 1.5°C climate goal, as its total emissions continue to rise despite decreasing emissions intensity. With projections indicating an 80% growth in aluminium demand by 2050, the sector's annual emissions of nearly 1.2 billion tonnes highlight the urgent need for action.  However climate change should not be seen as the single dimension of the industry's sustainability challenges.
 
In a panel hosted by ASI CEO, Dr Fiona Solomon, speakers from across the aluminium value chain and civil society representatives discussed that to effectively address sustainability concerns, it is crucial to approach them holistically.  The audience were urged to consider the interplay between climate resilience, circularity, human rights, and nature positive goals. This aligns with the priorities outlined in the ASI Strategy, emphasizing the need for comprehensive efforts throughout the industry.
 
In particular, the path to circularity in the aluminium industry requires collaboration among all stakeholders. Achieving this goal is not solely the responsibility of individual companies; it must be integrated from product design through production, use, and recycling, adhering to principles of material stewardship.  It must consider all material flows currently treated as wastes and consider product lifecycles beyond just recycling.
 
Recognizing that 2030 is fast approaching, pragmatic steps are necessary to meet global targets for climate and nature. Embracing digitization can play a vital role in enabling progress, but it is important to note that data availability alone is insufficient. Action is key, and while the availability of harmonized and comparable data serves as a foundation for measuring progress, the ultimate outcome lies in taking tangible steps towards reducing impacts.
 
As the aluminium industry grapples with the escalating sustainability challenges, rapid progress and action is essential. Collaboration, innovative solutions, and a commitment to sustainability goals will be instrumental in taking the sector down a more sustainable path.

Sustainability-linked financing for the aluminium sector 

The Mission Possible Partnership (MPP) published a report discussing the need for approximately $1 trillion investment in power supply and smelters to achieve a net-zero aluminium sector or align with a 1.5-degree pathway. The report includes scenarios for retrofitting smelters, highlights the importance of financial incentives such as premiums for low-carbon aluminium and carbon pricing, and introduces an Aluminium Sector Transition Strategy Model for customised decarbonisation pathways. These issues were also discussed during two sessions relevant to financing issues. 

The conference featured a panel discussion, moderated by Andrew Wood, ASI Director of Sustainable Investment and Legal, on sustainability-linked financing for the aluminium sector. The panel addressed the benefits of new financing mechanisms, such as sustainability-linked and green bonds, and discussed potential obstacles to their wider adoption in the aluminium industry. They also highlighted the importance of robust GHG methodologies and frameworks for measuring emissions, setting targets, and using them as a basis for sustainability-linked loans. The discussion touched on Norsk Hydro's experience with green bonds, the inclusion of scope 3 targets in bond frameworks, and the potential incorporation of key ESG data in the LMEpassport. 

On the final day of the conference, a workshop on GHG accounting methodologies discussed the need for a robust and transparent methodology to facilitate comparisons between emissions-reducing projects in the aluminium sector. The session emphasised the importance of transparency, accuracy, and comparability of GHG emissions data for building trust among stakeholders and quantifying financed emissions. Other topics included the desirability of funding research and development in new technology areas, challenges in obtaining finance for decarbonisation in certain regions, and the balance between lower carbon investments and deeper emission cuts. The workshop also touched on the expectations of stakeholders regarding the integration of GHG reductions with other key ESG factors. 

Read more details on the key takeaways in the full article on the ASI website

Driving ESG Transparency: Meeting Stakeholder Demands for Disclosure in the Aluminium Sector


ASI Director of Standards, Chris Bayliss, moderated a session on Disclosure and Data Transparency, featuring panellists from the London Metal Exchange (LME), Fauna & Flora International, CRU, International Aluminium Institute, Palantir Technologies and RMI. 

The session highlighted the increasing demand for public disclosure of ESG information from stakeholders. This demand is reflected in the i
ncreased number of disclosure-related criteria of the ASI Performance Standard v3, emphasising the need for harmonised standards and rules for data flow across various levels.

While greenhouse gas accounting and climate change criteria dominate data transparency efforts, stakeholders expect transparency beyond climate change, encompassing nature, biodiversity, and social impacts. Nature-related disclosures were also discussed, with the Task Force for Nature Related Financial Disclosures (TNFD) developing tools to meet these demands.

The session emphasised the need for harmonised standards and rules for data flow along supply chains, the importance of integrating broader ESG factors, fostering trust, and driving positive change in the aluminium sector and beyond.

Read more details on the key takeaways in the full article on the ASI website

Public consultation for RMI's Aluminum Emissions Reporting Guidance now open

On behalf of RMI, we invite you to participate in a public consultation for their newly developed Aluminum Emissions Reporting Guidance that quantifies the material greenhouse gas (GHG) emissions impact of aluminium. They are accepting feedback through July 28, 2023.

ASI has been working closely with RMI as we develop methods for Entity level greenhouse gas emissions pathways to ensure alignment and harmonised approaches. We are also delighted to welcome RMI as a civil society member and active participants in the Climate Change Working Group. 

The Aluminum Emissions Reporting Guidance seeks to enable greenhouse gas emissions reporting that increases the transparency and comparability of aluminium products. Using RMI’s guidance, aluminium producers can demonstrate emissions reductions and purchasers can make informed purchasing decisions for low emissions products to accelerate the decarbonization of this critical sector. The accompanying data format for steel and aluminium enables seamless transmission of emissions data along the aluminium supply chain.

To stay informed about RMI’s work on emissions transparency and decarbonizing aluminium, you can sign up for their mailing list. Please feel free to reach out to Wenjuan Liu and Mackenzie Cool if you have any questions. 

Using forest mulch to improve mine rehabilitation outcomes in Australia's first Indigenous-owned bauxite mine

A demonstration project in northern Australia, led by Gulkula Mining (with technical support from the Sustainable Minerals Institute of the University of Queensland), with project support from ASI and financial support from ASI Member, Nespresso, concludes that mulching with forest residues in bauxite mine rehabilitation has a positive effect on soil health and plant growth. The addition of mulch improved soil quality and reduced weeds. Forest residues should be used as mulch to increase mine rehabilitation success instead of being burnt as waste.

Bauxite mining in Australia's tropical regions often involves clearing and burning forests, stripping topsoils, and transporting them to other areas to begin the rehabilitation process. However, a new Indigenous-owned and -operated bauxite mine, the Gulkula Mine, located in East Arnhem Land, is salvaging timber products from the forest before mining, while mulching the remaining forest vegetation and adding this to the soil to support better mine rehabilitation.

A recent study compared soils with and without mulch to a reference native forest to assess the impact of mulching on soil quality indicators. The findings revealed that mulching improved soil chemical and physical properties such as electrical conductivity, total carbon, total nitrogen, organic carbon, water-soluble organic carbon, cation exchange capacity, and bulk density. The study suggests that using mulch amendments can significantly improve mine rehabilitation soils and promote better rehabilitation outcomes.

Read the full article here. 

Register now for the next 45 Minutes on... webinar


Circularity Assessment: Enhancing Efficiency in the Circular Economy


Dive into the heart of the Circular Economy (CE) with us and discover how circularity metrics can boost its efficiency. This webinar will shed light on strategies to mitigate raw material losses throughout product lifecycles and promote a comprehensive approach to resource management. We'll journey through a passenger mobility case study to illustrate how the application of low-carbon and circularity strategies can elevate sustainability.

Join Dr Gabriel Carmona Aparicio, ASI Circularity Research Manager and Chris Bayliss, ASI Director of Standards for an engaging session designed to stimulate innovative thought and encourage proactive steps towards a more sustainable future.

Date: June 20, 2023
Time: 12PM Lisbon • 1PM Bonn • 9PM Melbourne

Register now! 

Watch now: 45 minutes on... webinar recordings

ASI's 45 minutes on... webinars covering a broad range of key issues related to our work program, often held in partnership with ASI members and top experts from leading organisations in their fields. If you missed one, you can watch the recording.

  • Aluminium Supply Chain Traceability with RMI (March 2023)
  • Human Rights Due Diligence and Responsible Sourcing: ASI Requirements and Beyond (January 2023) 
  • Climate change adaptation: Community health risk, resilience and responses (January 2023)
  • ASI's Working Groups: An overview for Members (November 2022)
  • Critical Ecosystem Areas: Better biodiversity metrics for business with WCS (November 2022)
  • Grievance mechanisms: training for practitioners with BSR, RMI, The Copper Mark (October 2022)
Watch all the previous '45 minutes on...' webinars

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ASI CERTIFICATION NEWS

In May, ASI Members achieved seven new certifications, with several more in the announcement pipeline. 

  1. Aluminij Industries d.o.o. has achieved ASI Performance Standard V3 (2022) Certification for the production of foundry aluminium alloys in the form of billets, slabs and small ingots at its foundry in Mostar, Bosnia. Consult the media release.
     
  2. Jiangsu Goka Light Alloy Co., Ltd. has achieved ASI Performance Standard V2 (2017) Certification for the production of aluminium extrusion profiles at its facility in Xiangshui County Industrial Park, Yancheng City, Jiangsu Province, China. Consult the media release.
     
  3. Grupa Kęty S.A. has achieved ASI Performance Standard V2 (2017) Certification for its foundry and extrusion plant for the production of billets and manufacturing of aluminium profiles and components at its production facilities in Kęty, Poland. Consult the media release.
     
  4. Aluminium Bahrain (Alba) has achieved ASI Chain of Custody (CoC) Standard V2 (2022) Certification at the Alba Calciner and Alba Smelter in Bahrain. This is the first certification for an Entity in the Middle East against the updated CoC Standard V2, which was launched in May 2022 following a multi-year revision process. Consult the media release.
     
  5. Novelis Inc. has been successfully certified against the ASI CoC Standard V2 (2022) for the production of rolled aluminium products including high-strength structural plate products for aerospace and commercial plate applications. Consult the media release.
     
  6. TRIMET Aluminium SE has achieved ASI Performance Standard V2 (2017) Certification at its smelter and foundry at Essen, Germany. Consult the media release.

  7. Alcoa has achieved ASI Performance Standard V2 (2017) Certification at its joint-venture smelter in Portland, Victoria, Australia. Consult the media release.
Consult our certified members page for a full overview of certified members, or the certification map to see where certified facilities are located. 

ASI MEMBERSHIP NEWS 

In May, ASI welcomed seven new Production & Transformation members, one new Civil Society member, one new Industrial User member and one new General Supporter member, bringing the total number of ASI members to 298.  

Read more about our new members below, and for more information about ASI membership, please visit the Join ASI page on our website! 

Befesa Aluminio, S.L.U.

Befesa Aluminio S.L.U. is a subsidiary of Befesa S.A., a leading player in the circular economy, providing environmental, regulated services to the steel and aluminium industries with facilities located in Germany, Spain, Sweden, France, as well as in Turkey, South Korea, China, and the US... Read more.

By joining ASI, Befesa reaffirms the role it has been playing in the circular economy for more than three decades by reducing the environmental impact of industrial waste, recovering valuable materials, and reintroducing them into the production process.

– Javier Molina, Chairman

Find more information on Befesa Aluminio, S.L.U. on their ASI Member page in the Production & Transformation Class.

Baotou Aluminum Co. , Ltd.

Baotou Aluminum Co. , Ltd., formerly known as Baotou Aluminum Factory, was founded in 1958. It was an electrolytic aluminium enterprise built during the Second Five-Year Plan period of China and the first electrolytic aluminium enterprise designed and built by itself after the founding of New China. After more than 60 years of development, the company has been built into the electrolytic aluminium base of Chinalco in northern China... Read more.

Baotou Aluminum Co., Ltd. (hereinafter: Baalu) always adheres to the “one”, “two wings”, “three engines” development strategy, to wind, light new energy and coal resources development. To strengthen energy and electricity, consolidate cost advantages, to high purification alloying, terminal collaborative development, fine alloy processing, constantly extending the value chain and expanding profit space. Baalu always adheres to the mission of “making better alloy renewal for a lighter and greener world”. Baalu is committed to becoming a responsible partner for aluminium production, procurement and management through first-class management, first-class site, first-class products, first-class benefits, first-class team and first-class culture. Baalu is committed to creating a business model of inclusiveness, sharing and benefitting all sides to look forward to the blue sky of a green aluminium industry.

– Zhang Ruizhong, Vice General Manager

Find more information on Baotou Aluminum Co. , Ltd. on their ASI Member page in the Production & Transformation Class.

JUPITER METALS TRADING L.L.C

JUPITER METALS TRADING L.L.C (JMT) is a distinguished and dedicated Metal and scrap trading company specialized in Non-Ferrous Metals / Ferrous Metals and Scrap, Primary / Secondary Alloys, Plastic scrap, to name a few, promoted and managed by Mir Mujtaba and his professional team based in Dubai United Arab Emirates for over 3 decades. JUPITER METALS TRADING LLC (JMT) has established an outstanding worldwide name with the suppliers & buyers on procurement... Read more.

With the increase in sustainability policies, Jupiter Metals as an organisation thrives to be within the constructs of the Global ESG Standards which is being actively promoted and followed as per the ASI Mission, Values and Objectives.

– MR Mir Mujtaba Hussain, Managing Director

Find more information on JUPITER METALS TRADING L.L.C on their ASI Member page in the General Supporter Class.

Hindalco Industries Ltd. Belur Unit

Hindalco Industries Limited, an Indian aluminium and copper manufacturing company, is a subsidiary of the Aditya Birla Group. Its headquarters are at Mumbai, Maharashtra, India. The company has annual sales of US$15 billion and employs around 20,000 people HINDALCO Belur is an operating unit of HINDALCO INDUSTRIES LIMITED, which has a domestic market share of 15% in the rolled products (FRP). Taloja unit produces about 17% of the total rolled products of HINDALCO... Read more.

Hindalco’s vision is to be a sustainable company and in line with this vision, our unit has planned to go ahead with ASI Certification.

– Mr. Debashis Das, HOD – Quality

Find more information on Hindalco Industries Ltd. Belur Unit on their ASI Member page in the Production & Transformation Class.

Asiaway Automotive Components Mexico

Asiaway Automotive Components Mexico is a company dedicated to die casting and machining of aluminium parts. it is our goal to make our supply chain as sustainable as possible. AWM is a subsidiary company of Asiaway Group (located in China, headquarters: Ningbo Asiaway Automotive Components)... Read more.

As a growing company, Asiaway realises the importance of the key environmental and social impacts of our work and aims to improve its supply chain to the highest standard possible, particularly all aluminium related.

– Manuel Madrigal, GM

Find more information on Asiaway Automotive Components Mexico on their ASI Member page in the Production & Transformation Class.

Oman Aluminium Rolling Company SPC (OARC)

Oman Aluminium Rolling Company (OARC) is a state-of-the-art company in the production and sale of aluminium flat rolled products. OARC was established in 2011 as a green field aluminium rolling mill plant at the Sohar Industrial Estate in Oman. OARC has developed into an adding-value and growing company with a strong international customer base. OARC employs around 300 people and has an annual capacity to produce 140,000 metric tonnes of high-quality multi-purpose aluminium rolled products... Read more.

Joining ASI emphasizes Oman & OARC’s strong commitment to responsible operations and to work together with the other members in this community to contribute to sustainability and transparency throughout the aluminium value chain.

– Peter Rijkoort, CEO OARC

Find more information on Oman Aluminium Rolling Company SPC (OARC) on their ASI Member page in the Production & Transformation Class.

Rocky Mountain Institute (RMI)

RMI is an independent, non-partisan, nonprofit organization of experts across disciplines working to accelerate the clean energy transition and improve lives. RMI decarbonizes energy systems through rapid, market-based change in the world’s most critical geographies to align with a 1.5°C future and address the climate crisis. We work with businesses, policymakers, communities and other organizations to identify and scale energy system interventions that will cut greenhouse gas emissions at least 50% by 2030... Read more.

RMI is helping to transform the aluminium industry by developing best-in-class metrics and other solutions that enable finance to support the sector’s transition and by supporting the creation of climate differentiated products with industry and buyers. Working alongside the Aluminum Stewardship Initiative is critical to meeting the sector’s climate goals.

– Estefania Marchan, Principal RMI

Find more information on Rocky Mountain Institute (RMI) on their ASI Member page in the Civil Society Class.

AS METAL COM SRL

The activity of our company takes place on an industrial site of about 34000sqm. AS METAL COM is a supplier of secondary raw materials for the automotive, steel, telecommunications and household appliances industries, serving the national and regional markets. AS METAL COM is actively concerned with the changes in the industry for the effective implementation of sustainability and circular economy concepts.... Read more.

We believe that the Aluminium Stewardship Initiative can successfully promote this new industrial paradigm, in which the aluminium industry plays an important role. We want to join this prestigious initiative, which will certainly contribute to a much faster path of reforms needed to implement sustainability and circular economy standards.

– Constantin Apostol, CEO

Find more information on AS METAL COM SRL on their ASI Member page in the Production and Transformation Class.

Ye Chiu Metal Smelting Sdn. Bhd.

Ye Chiu, a modern group enterprise with its presence covering Asia and America is always committed to realising its objective of industry globalization. Since the establishment of Ye Chiu Metal Smelting Berhad in Malaysia in 1984, it always insists on the business philosophies of Commitment to Excellence, Innovation, and Sustainability, with a global outlook.... Read more.

Cherish resources and protect the environment " sums up how YE CHIU has approached conserving the environment. With resources depleting in today’s society, YE CHIU Group recycles aluminium resources and saves various natural resources. We are bent on providing the community with safe and environmentally friendly green products. YE CHIU Group has established a comprehensive safety control system, a safe production responsibility system and a complete set of safety management systems along with Standard Operating Procedures (SOPs). We have established a complete production site and equipment maintenance safety procedure to manage the formulated safety models. We have been conducting various safety inspections evaluating safety measures in all departments and workshops and have implemented preventive control, improving all measures as well as our safety management on a regular basis.

– Mr. Ng Weng Hui, Manager

Find more information on Ye Chiu Metal Smelting Sdn. Bhd. on their ASI Member page in the Production and Transformation Class.

Magna International Inc.

We are a leading global automotive supplier with 343 manufacturing facilities and 88 product development, engineering and sales centres in 29 countries. We have over 168,000 employees focused on delivering superior value to our customers through innovative processes and World Class Manufacturing... Read more.

As we continue to move forward in our efforts to protect and preserve the planet, we see the certification according to ASI as one of our milestones in our sustainability strategy toward responsible production, sourcing and stewardship of critical raw materials throughout the supply chain. The membership was made for Magna Powertrain and first locations were already certified in 2021. Now Magna is excited to extend its membership to Magna's global operations.

– Ahmed ElGanzouri, Director Sustainability, MAGNA International Inc.

Find more information on Magna International Inc. on their ASI Member page in the Industrial Users Class.

UPCOMING EVENTS 

Upcoming ASI Secretariat event participation

ASI Secretariat members regularly participate at events with in-person or virtual presentations. Additional details on dates, times, content and how to join the sessions are published on our events page as soon as they are available. 

  • The Responsible Sourcing and Traceability Symposium: A Life-Cycle Approach for Batteries, 23 June 2023, Sydney - Dr Fiona Solomon, CEO
  • World Mining Congress, 29 June 2023, Brisbane - Dr Fiona Solomon, CEO
 

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