Alumina Limited

Supply Chain

Supply Chain Management

Alcoa use their Global Supplier Sustainability Program to assess and help improve sustainability of AWAC's key suppliers that present the biggest sustainability risk to the business. 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.
  • Labour practices
  • Health and safety programs
  • Business ethics policies
  • Community commitment programs
  • Risk management
  • Financial management
  • Security of supply
  • Publicly disclosed policies and procedures
  • Cascade principles and policies to supply base
Suppliers integrate sustainability into their business strategy and support it through their values and culture.
  • Value systems
  • Participation in sustainability indexes or reporting frameworks
  • Incorporation of sustainability into market strategy
  • Life cycle advantages/disadvantages of key products
Suppliers measure performance and establish quantifiable environmental goals; progress on environmental goals publicly disclosed.
  • Environmental goals and metrics
  • Recycling programs
  • Measurement systems
  • Public disclosure/third-party assurance

 

In 2017, Alcoa continued implementing a third-party supplier due diligence program with the supplier base 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.