Supply Chain Management
AWAC's supply chain and procurement management is the responsibility of Alcoa as AWAC's manager/operator. Alumina Limited is confident that the processes used by Alcoa are robust and designed to require responsible and sustainable behaviour based on the highest standards of integrity and compliance with all relevant laws and regulations.
Global Supplier Sustainability Program
In 2016, the Global Supplier Sustainability Program was used to increase the sustainability of AWAC's key suppliers. These include companies that contribute the most to AWAC's carbon footprint, possess preferred status, are sole sources of supply, are located in emerging or high-risk countries, or provide regulated commodities.
The program consists of four components:
- Communicate expectations: Clearly define our sustainability expectations and communicate them through discussions and Alcoa's Supplier Standards.
- Assess supplier: formally assess the performance of key suppliers to evaluate the maturity of their sustainability programs and determine where improvements are needed.
- Develop and educate: For suppliers that fall into the emerging and lagging categories, provide education and tools to develop and improve their programs. Also require action plans and demonstrated improvements in the development of their sustainability programs.
- Monitor: reassess suppliers in the emerging and lagging categories annually. Those that do not demonstrate annual improvements face the risk of losing AWAC's business.
Supplier Assessment Criteria
|Supplier Sustainability Focus Areas||Assessment topics|
|Suppliers develop and implement a sustainability program that includes environmental, social, economic, and ethical aspects; such programs publicly published; suppliers cascade same to their supply base.||
|Suppliers integrate sustainability into their business strategy and support it through their values and culture.||
|Suppliers measure performance and establish quantifiable environmental goals; progress on environmental goals publicly disclosed.||
Alcoa continued implementing a third-party supplier due diligence program with the supplier base during 2016. This program helps Alcoa manage risk in the supply chain related to the areas of anti-bribery and corruption, trade compliance, child and slave labour, criminal history, human trafficking, and conflict minerals.