Working with Alcoa as a Supplier

The program provides the framework for engaging with the suppliers in our supply base to complete due diligence and advance our long-term sustainability goals.

The program is applicable to any individual, company or business that performs work and/or transacts with us. It includes suppliers of raw materials, direct materials, indirect materials, transportation and logistics, on-site services, off-site services and labor-hire as well as traders, importers, non-governmental organizations and sub-contractors.

Advancing Sustainably is one of our strategic priorities. This is how we do business, and it extends to with whom we do business. Our Supplier Sustainability Program builds partnerships with like-minded businesses. It is structured to meet Aluminium Stewardship Initiative (ASI), London Metal Exchange (LME) and International Council on Mining and Metals (ICMM) performance expectations. It is in line with global modern slavery and supply chain transparency legislation.

If you are asked to complete a TRAC profile, the cost is approximately US$399. More information is available here.

Costs for EcoVadis vary upon subscription level, size of business, industry and country of operation. Additional information is available here.

Costs for different elements of our Supplier Sustainability Program are shared between us and the supplier. We ask suppliers to pay for TRAC and EcoVadis assessments, as these can be shared with other customers. For EcoVadis, suppliers can access education and training to advance their sustainability journey.

TRAC provides comprehensive screenings against thousands of sanctions, denied parties, politically exposed persons (PEP) and government watchlists. It also identifies ownership, business information and supply chain risks.

EcoVadis is a leading third-party corporate sustainability ratings provider. It provides independent assessment and monitoring of supply chains across the environmental, social and governance (ESG) spectrum, taking into account industry, countries of operation and specific supplier performance. Through the EcoVadis Academy module, suppliers can access on-demand training and development that supports the improvement guidance provided after each assessment. Learn more about Ecovadis.

All suppliers are encouraged to undertake the EcoVadis Ratings Audit. We consider a supplier’s rating as part of our tender evaluation and supplier selection process.

During the tender process, shortlisted suppliers will be notified of any TRAC or EcoVadis assessment requirements should they not already have them. During a contract term, suppliers will be asked to renew or undergo TRAC or EcoVadis subject to industry, country and supplier-specific monitoring, which forms part of our Responsible Sourcing and Supplier Sustainability Program.

TealBook is third-party software that provides verification of a supplier’s ownership in relation to diversity. Inclusion and diversity are important to us, and we seek to increase the diversity within the suppliers that we contract with. Suppliers are encouraged to create a free TealBook profile and share their own inclusion and diversity progress (ownership structure and employment) with us.

Environment:

• Energy consumption and greenhouse gases
• Water
• Biodiversity
• Local and accidental pollution
• Materials, chemicals and waste
• Product use
• Product end-of-life
• Customer health and safety
• Environmental services and advocacy

Labor and Human Rights:

• Employee health and safety
• Working conditions
• Social dialogue
• Career management and training
• Child labor, forced labor and human trafficking
• Diversity, discrimination, and harassment
• External stakeholder human rights

Ethics:

• Corruption
• Anticompetitive practices
• Responsible information management

Sustainable Procurement:

• Supplier environmental practices
• Supplier social practices

ESG Intelligence provided through EcoVadis and the Supplier Sustainability Program identifies supplier’s operating in water intensive industries and facilitates the inclusion of further tender questions and performance KPIs. For the suppliers who complete the EcoVadis Ratings Audit, Alcoa’s reporting and analytics suite enable the benchmarking and tracking of suppliers with or without key actions around water.

Human Rights, and in particular Modern Slavery, is a critical part of the Supplier Sustainability Program. Suppliers who operate in industries and countries of particular risk to modern slavery are identified and advanced through the risk-based due diligence stages accordingly. ESG Intelligence, provided through the Supplier Sustainability Program, facilitates the inclusion of further tender questions and performance KPIs in relation to understanding a supplier’s maturity and approach to addressing Modern Slavery. Insights from audits connect to supplier management and development programs supporting the advancement of our supplier’s approach to identify, manage, and remediate modern slavery in their supply chain. The sanctions screening and media monitoring tool ensure potential controversies are identified swiftly and can be investigated with our suppliers.

Alcoa already publicly discloses its approach, actions, and discoveries in relation to Modern Slavery in its Supply Chain for its Australian operations. Read the report here.

Alcoa is currently developing its Supplier Site Collaboration element of the Supplier Sustainability Program. A structured in person site audit collaboration focused on Human Rights.

Biodiversity impact is currently addressed under the Environment criteria of the Supplier Sustainability Program. Alcoa recognizes the importance of biodiversity impacts in our supply chain and is working to understand this in more detail. Through the EcoVadis Ratings Audit, industries presenting the biggest impact to biodiversity are assessed against additional criteria. Indirectly, Alcoa works to protect biodiversity through assessing climate, water and waste impacts and introducing performance KPIs into contracts to incentivise advancement.

Supplier Site Collaborations are part of how Alcoa works with our suppliers to Advance Sustainably. Focusing on Human Rights, these collaboration audits are a means of better understanding and working together to improve a suppliers social and ethical performance in a practice.

Supplier Site Collaborations typically review how a supplier addresses forced labor, bonded labor, child labor, working conditions, pay practices, equality and non-discrimination, and worker’s voice.

Alcoa strives to address Modern Slavery within its supply chain. By working with our suppliers, we can build awareness, identify, and work to remedy together any issues or practices of concern.