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ASI News - November 2022

ASI Performance Standard now implemented by more than 100 companies in 55 countries

ASI Certifications data to November 2022 shows that the ASI Performance Standard (PS) has been implemented by 106 ASI member entities through the aluminium value chain. The total of 164 PS Certifications are across 55 countries globally, as illustrated in the heat map above.

The top 5 countries by Certification incidence are Germany, China, USA, Italy and Brazil. France, Austria, Spain and the UK round out spots 6-9, with Canada, Norway, Switzerland, Sweden coming in equally at # 10.

The ongoing growth in ASI uptake geographically and by supply chain activity demonstrates ASI's progress in building a critical mass for sustainability-driven transformations in the aluminium sector.

The larger the pool of ASI participation and engagement, coupled with a continued focus on rigour and integrity, the more we can align a critical mass of stakeholder effort towards positive global change.

Congratulations to all the ASI members who are making ASI part of their individual sustainability journeys.

ASI commitment to 1.5 degree-aligned GHG emissions reduction pathway

Even as the "implementation COP" ends with little in the way of progress on delivery against governments' COP26 commitments and an increasingly shaky belief in achievement of a 1.5 degree warming limit, ASI's Performance Standard commits Entities to develop and to follow 1.5 degree aligned emission pathways, backed up by detailed plans.

As mentioned in the October ASI Newsletter, ASI is engaged in discussions in a range of fora to deliver a common method for Entities to develop 1.5 degree-aligned targets. Having said that, the sectoral path is clear: absolute emissions reduction of the order of over 5% per annum to 2030 (and higher the more that action is delayed) and over 25% per annum thereafter for primary aluminium; 3% and up to 10% for recycling and downstream Aluminium (for details, see: Mission Possible Partnership). ASI expects to have a draft method for discussion in Q2 2023, with a decision on endorsement by the end of the year; a common and standardised implementation tool for all players along the value chain.

Meanwhile ASI has also been accepted to the Informal Expert Group on Analytical Methods for the Monitoring, Reporting, Quantification and Verification of Embedded Emissions in Goods under the Scope of CBAM. The 
objective here is also the harmonisation of approach and data for the aluminium sector, as well as between Entities' compliance responsibilities and their ASI conformance requirements (in addition to the linkage between product-based (Chain of Custody related) and corporate (Performance Standard) accounting methods).

Allocation of emissions to scrap, scope 2 electricity accounting methods, common approaches to recycled content measurement and disclosure, scope 3 emissions data availability - these are ongoing questions for the aluminium industry (and other hard to abate sectors) and ones which decades of science-based discussions have not resolved to the satisfaction of all stakeholders. But answers are being demanded and quickly. They are needed now to enable a system-wider shift that will deliver lower emissions.

ASI's unique place across the full value chain means we have an important role in helping to deliver the needed answers, but we should be clear that they will not suit everyone. Nonetheless, they are coming, and soon.

Financiers and investors to drive stronger ESG performance – ASI’s role

Trillions of dollars in capital need to be mobilised to transform the world’s supply chains to mitigate environmental, social and governance (ESG) risks, including climate change. This makes the finance and investment sector an increasingly important driver of ESG performance in the aluminium value chain. Third-party assessment and certification, including through ASI, is expected to facilitate market transparency and credibility. To support this, ASI is engaging with the finance and investment sector to grow linkages into the ASI Certification program.

Financial institutions and investors are increasingly motivated and measured by high ESG standards. Funding is expected to incentivise strong ESG performers more and more, including by offering lower interest rates for meeting ESG hurdles and other favourable funding terms. For companies in the aluminium value chain, attractive financing is a key enabler of improved ESG performance, particularly where expected returns on ESG capital expenditure are difficult to quantify, in the absence of a widespread common carbon price or product premiums for excellence in ESG performance. Conversely, companies in the aluminium chain that are not improving their ESG performance are likely to experience greater difficulty in obtaining funding.

It is unlikely that all current participants in the aluminium value chain will be able to transition to a high level of ESG performance, due to various factors such as cost, age, output and physical location of existing facilities. Common value chain ESG targets, which can be audited and verified by third parties, will be important differentiators for potential funders evaluating competing funding requests.

Whilst there are well-developed general principles for green bonds, social bonds and sustainability-linked bonds as models for incorporating sustainability into capital markets, aluminium-specific standards and key performance indicators are needed to support market developments. Clear and high product standards, transitional benchmarking and common technical evaluation and terminology for the aluminium value chain will be important reference points for the finance and investment sector. Third-party assessment and certification, including through ASI, is expected to facilitate market transparency and credibility. To support this, ASI is engaging with the finance and investment sector to grow linkages into the ASI Certification program. As an example, ASI is a member of the Sustainability-Linked Bonds, Climate Transition Finance and Impact Reporting working groups of the International Capital Market Association.

Read the full article on the ASI website.

IPAF Bauxite Exploration & Mining Workshops – Cape York Peninsula & Elcho Island, October & November 2022

During 2021-2023, ASI is carrying out a series of workshops with Indigenous communities in Australia on bauxite exploration and mining. The aim of the workshops is to share information which can be used to help prepare Indigenous peoples and clan leaders to participate in discussions with other stakeholders about developments on their traditional lands (Country).

The ASI workshops address the need for Indigenous communities to better understand bauxite mining and exploration, new ideas that incorporate Indigenous perspectives about mining, and ways for Indigenous people to get support and information to make informed decisions for their Country and families.  The workshops are also creating new connections to broader work with the Indigenous Peoples Advisory Forum (IPAF).

The key dimensions of workshops’ discussions include:

  • Pressure on Indigenous people for the natural resources on their traditional lands
  • Sharing information and knowledge, to support Free Prior and Informed Consent
  • Information sharing regarding the aluminium supply chain
  • Understanding bauxite exploration and bauxite mining
  • Mine Closure and sustainability considerations after mining
  • Economic opportunities that may be available before during and after bauxite mining
  • Community Engagement Approaches across communities.


Successive workshops have enabled ASI and the Indigenous facilitators we work with to develop improved ways to present information and support engagement. Participation and facilitator inputs have led to the development and refinement of information posters that provide a pictorial representation of each step in the bauxite exploration and bauxite mining process. 

Read the full article on the IPAF workshop outcomes on the ASI website.

Register for the upcoming 45 Minutes on... webinar:


Climate Change Adaptation: Community Health Risk, Resilience, and Responses

The public health and safety impacts of climate change – severe weather events, air pollution, changing vector ecologies, proliferation of allergens, water and food security, civil unrest and increasing conflict, environmental degradation and extreme heat – are increasingly likely to impact (differentially) the aluminium sector’s industrial sites, local communities, and its workforce.

In this 45 minutes on webinar Dr Jim Wesdock (Global Health Director, Alcoa) and Dr Greg Paoli (Principal Risk Scientist, Risk Sciences International) will explore an ongoing International Aluminium Institute-led and ASI-supported project to develop tools for evaluating and managing climate change-related health, safety and well-being risks, all of which endeavours to favourably impact on asset operational resilience and the communities in which these assets reside.

The utility of such work to practitioners and communities across the globe is highly dependent on local community engagement and the support of operations – an Alcoa Foundation project to facilitate this engagement - through enhanced health literacy – will also be addressed as well as what the ASI and its Members can do to improve adaptation to climate change and the resilience of affected populations.

Date: January 10,  2023
Time: 9AM New York • 2PM London • 3PM Berlin
Register now!

Watch now: 45 minutes on Critical Ecosystem Areas

ASI Standards Committee member and Wildlife Conservation Society (WCS) Senior Advisor, Dr. Hugo Rainey joins the ASI Secretariat to explore the new tools and metrics available to policymakers and industry to enable impactful decision-making against a backdrop of complex and diverse ecosystems and communities.

This discussion comes as governments from around the world prepare to meet in December to agree to a new set of goals for nature for the coming decade. Despite a proliferation of standards and guidance for business on biodiversity and ecosystem services, including within ASI’s Performance Standard, there is often a gap between the adoption of principles and high quality outcomes for biodiversity following implementation. It is important to address this gap, as biodiversity loss is increasing globally. Countries are recognising a need to address biodiversity loss through the Global Biodiversity Framework (GBF) currently under development. The Conservation, Mitigation and Biodiversity Offsets (COMBO) Program is working with countries to encourage policy which supports biodiversity targets of No Net Loss or a Net Gain following development. Application of such policy by developers requires accessible biodiversity data to identify the required actions.


>> Watch the recorded session

Watch all the previous '45 minutes on...' webinars

ASI CERTIFICATION NEWS

In November, ASI Members achieved 4 new certifications, with several more in the announcement pipeline. 

  1. MYTILINEOS S.A. has achieved ASI Chain of Custody (CoC) Standard V1 (2017) Certification for its corporate headquarters and upstream activities undertaken by the company’s Metallurgy Business Unit in Greece, including bauxite mining, alumina refining, aluminium smelting and casting. Consult the media release.
     
  2. Stemin S.p.A. has achieved ASI Performance Standard V2 (2017) Certification at its recycling and remelting operations in the Bergamo province of Italy. Consult the media release.
     
  3. Ardagh Metal Packaging has achieved ASI Performance Standard V2 (2017) Certification with a focus on Material Stewardship at its regional central organization in Bonn, Germany and its beverage can body production plant in La Ciotat Cedex, France. Consult the media release.
     
  4. Press Metal Bintulu Sdn Bhd, a subsidiary of Press Metal Aluminium Holdings Berhad (“Press Metal”) has achieved ASI Performance Standard V2 (2017) Certification for its aluminium smelting, re-melting/refining, casting and aluminium dross internal recovery activities at the Sarawak, Malaysia facility. Consult the media release.
See updated data on what we've achieved so far on our outcomes and impacts page. 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 November, ASI welcomed four Production & Transformation members and two Industrial User members bringing the total number of ASI members to 268.  

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

TALUM d.d. Kidricevo

Talum is a manufacturer that produces top-quality aluminium products and aluminium alloys and provides a wide range of services for the aluminium industry. With advanced technologies and... Read more.

“With respect for the green material aluminium, we want, as an ASI member, to further strengthen our role as ambassadors of sustainability."

– Marko Drobnic, President of the Management Board

Find more information on TALUM d.d. Kidricevo on their ASI Member page in the Production and Transformation Class.

Daiki Aluminium Industry

Daiki Aluminium, a pioneer in the Japanese secondary aluminium industry, has promoted and expanded its business in the recycling loop all over the world since its foundation in 1922.... Read more.

“Since its foundation 100 years ago, our Group has been recycling aluminium as its core business. This recycling loop is expected to expand beyond the distribution of aluminium and grow into a larger loop that also involves other issues, such as the human rights of stakeholders and the environment. We hope to make the aluminium recycling supply chain we have established together with you responsible and more sustainable through our participation in ASI."

– Shigenori Hayashi, Vice President and Representative Director and Executive Officer

Find more information on Daiki Aluminium Industry on their ASI Member page in the Production and Transformation Class.

FUSAO LIGAS COM. E IND. LTDA

Fusion Ligas Comércio e Indústria LTDA, founded in April 2003, operates in the reuse of industrial recycled products, marketing and exporting high quality raw materials to various industrial lines, steel companies, foundries and mining companies... Read more.

"Joining ASI is our initiative to consolidate our company’s commitment to ESG principles. "

– Vitoria Nagela Cota, Manager

Find more information on FUSAO LIGAS COM. E IND. LTDA on their ASI Member page in the Industrial Users Class.

Kunshan Huapin Aluminum Co.,Ltd

Kunshan Huapin Aluminum Co.,Ltd. was established on July 15, 2010. It is a professional manufacturer dedicated to the research, development, production and sales of aluminum oxide materials... Read more.

“Kunshan Huapin is honored to join ASI as a member. By joining ASI, we can learn from excellent enterprises in the industry and make contributions to the sustainable development of the aluminum industry."

– General Manager, Chen Guangliang

Find more information on Kunshan Huapin Aluminum Co.,Ltd on their ASI Member page in the Industrial User Class.

CSMET Group Co. , Ltd.

CSMET Group Co., Ltd. is a group enterprise specialising in R & D, manufacturing, sales and trade of low-carbon aluminium alloy, including aluminium alloy liquid and aluminium alloy ingot... Read more.

“CSMET Group Co. , Ltd. is a group enterprise specialized in the research and development, manufacture, sales and trade of low-carbon aluminum alloy. Our vision is to be a leader in the application of low-carbon aluminum alloys, continuing to enhance technical strength to uphold the spirit of altruism, to seek benefits for customers with “Green development” as the core of the enterprise, and to provide strength for the green low-carbon circular development of the economic system."

– Cheng Shuai, Chairman of the group

Find more information on CSMET Group Co. , Ltd. on their ASI Member page in the Production and Transformation Class.

Jiangsu Goka Light Alloy Co., Ltd.

Jiangsu Goka Light Alloy Co., Ltd. was established in 2020, located in Yancheng City, Jiangsu Province. The total construction area of the company’s factory is 44000 m2... Read more.

“Aluminum is the future metal. Green and low-carbon is the important direction and social responsibility for the sustainable development of the aluminum processing industry. By emphasizing Environmental, Social and Governance (ESG), Jiangsu Goka Light Alloy Co., Ltd. meets the interests and corporate social responsibility of all relevant parties in the aluminum processing industry chain. Goka hopes to serve customers and the market through ASI certified aluminum, which brings our customers and us a better social reputation. More environmentally friendly and more competitive products bring green and more sustainable development of aluminum profiles for the new energy vehicle industry."

– Bin Luo, General Manager

Find more information on Jiangsu Goka Light Alloy Co., Ltd. on their ASI Member page in the Production and Transformation Class.

UPCOMING EVENTS

Upcoming ASI Secretariat event participation

ASI Secretariat members are participating in several upcoming events with virtual or in-person presentations. Details on dates, times, content and info on how to join the sessions will be published on our events page when they become available. 

 

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