Best practices in sustainability - How to create value? The case of the Aluminium industry - Jerome Lucaes - Rio Tinto Alcan - Director ...
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27th February 2013 PE Symposium – Stuttgart Best practices in sustainability - How to create value? The case of the Aluminium industry. Jerome Lucaes – Rio Tinto Alcan – Director, Aluminium stewardship
2 Objectives & Agenda 1. Rio Tinto Alcan is committed in leadership practices in managing all environmental & social aspects as well as business ethics 2. Rio Tinto Alcan’s performance is based on a strong sustainability framework 3. Collaborative work with all stakeholders is increasingly important. • The example of the Aluminium Stewardship Initiative (ASi)
About Rio Tinto
• 68,000 people in more than 40
countries
• Finding, mining and
processing mineral resources.
• Major products are aluminium,
copper, diamonds, coal, gold,
industrial minerals, iron ore
and uranium
• Main operations in Australia
and North America. Also in
Europe, South Africa, South
America and Asia.
The Environmental & Social context affects our business
Key Business Drivers
Threats & opportunities
License Performance under
Scrutiny by
to grow stakehloders
Regulation is increasing
License to sell
Competitive pressure
(within peers or
substitution)
License to operate
Products’ Environmental
Criteria
Business Performance
5
Industry is under increased scrutiny
From communities located around industry
• Local communities
• Environmental authorities
• NGOs,
From stakeholders involved with
the value-chain :
• Consumers, thus retailers
• Big brands who influence the entire supply-chain
• Product designers, architects, Material specifiers
Both contituencies require increased
transparency
Aluminium contributes to solving some of the world’s most
challenging issues
Lower GHG emissions through
lighter vehicles and buildings and
through its recyclability
Bringing electricity and energy efficiency
to users whilst powering the world
Preserving food and medicines
through its unique barrier
properties
Potential impediments to growth Aluminium long term growth will depend upon its reputation
Sustainability at Rio Tinto Alcan
Aluminium stewardship
For internal use only 8
9 We all know sustainability in principles Meeting the needs of the present without compromising the ability of future generations to meet their own needs
Introduction to Rio Tinto 2012
What this means for business and for RTA
Traditional Business approach More Advanced approach
Comply with the law
By connecting our activity to our
environment and to the rest of the
Respond to customer demand world,
Marketing opportunistic, (sometimes And,
greenwashing)
through dialogue and collaboration,
improve things in a way
Reduce cost
to contribute to a better world.
Seek of environnemental and social
performance within the perimeter of
operationsJourney to Zero Harm by Choice
Strong and comprehensive commitments, deeply anchored in the culture
15
Delivering a responsible future
At Rio Tinto Alcan, we are leaders in…
Low emissions energy: 94% of the power we
use in primary aluminium production is low-
emissions, mainly from self-generated hydro-
power
Carbon footprint: Our GHG emissions intensity
is the lowest in the industry
Best-in-class AP technology: Our smelting
technology can be configured to provide the
lowest energy and carbon footprint
10 February 201216 Delivering a responsible future At Rio Tinto Alcan, we are leaders in…(cont’d) • Biodiversity : By minimizing the impact of our mining activities on biodiversity, we strive to protect the ecosystems on which we depend. • Social commitment: We build active partnerships with our communities and other stakeholders based on mutual respect and sustainable benefit across generations.
Rio Tinto - Communities Diagnostic Workshop, Aluchemie, Rotterdam 17
Example of Framework & Assurance Architecture
(Community Relations)
The way we work
Communities Policy
Standards
•mandatory requirements
Assurance
Multi year • site managed assessment
• management • risk assessment
communities plans • monitoring and reporting • Rio Tinto site visits
• global Socio Economic Target • independent audit
• FPIC
Reporting Guidance Notes
• annual workbook • multi year communities plans • compensation
• SD report • baseline community assessments • community assistance
• SEART • trusts, funds and foundations • social risk analysis
• cultural heritage • social impact assessment
• consultation • site managed assessment
• resettlement • stakeholder engagement
Community Relations Competencies & Tools18 Delivering a responsible future At Rio Tinto Alcan, we are leaders in…(cont’d) Operational excellence We strive to continually improve with priority placed on safety and quality. − Zero harm by choice − All Rio Tinto Alcan sites are compliant with the Rio Tinto HSE QMS and are ISO 14001 certified
28 September 2009
A way forward
Rio Tinto - Communities Diagnostic Workshop, Aluchemie, Rotterdam 19Collaborative initiatives with the entire value-chain
Recent formation of the Aluminium Stewardship Initiative
Societal trends require more transparency and better
accountability on environmental and social footprints of products
22.5
Aluminium Stewardship initiative – a unique aluminium
value chain initiative that will define and deliver the
first standard for responsible aluminiumThe Aluminium Stewardship Initiative
Develop a standard…
•Credible
•Transparent
•responsible production, sourcing
•Covers the Entire value chain
•Worldwide
Encompasses
•business ethics,
•human rights, and social responsibility,
•environmental performance
•Inspire improvements in industry practicesThe Aluminium Stewardship Initiative The Approach : •Collective development with all value-chain stakeholders •Balanced power of decision making •Transparent process to ensure credibility •Open membership (with conditions) •Specific performance criteria for the value-chain •Workable and credible chain of custody
The Aluminium Stewardship Initiative
• Current members :
• BMW,
• Audi
• Nespresso,
• Tetrapak
• Amcor
• Constantia / AMAG
• REXAM
• Constellium
• Rio Tinto Alcan,
• Hydro
• Other players involved in the value-chain, pending confirmation
• IUCN : coordinator for the Standard setting process
• NGOs and governments will be proactively consulted after a complete stakeholder mapping
• Public consultationBenefits - 6 reasons for Rio Tinto to co-found ASi
1. Build credibility and confidence for 2. Defend and promote aluminium
customers
• Help improve the sustainability performance of
ASI will bring credibility to the aluminium industry
• Aluminium products that will be qualified
• RTA’s sustainability performance claims • Help to secure the Aluminium demand growth
(if we qualify!)
3. Reinforce our performance in 4. Reinforce our reputation
sustainability
• Be recognized as a proactive leader
• Establish a credible pathway for further • Get recognition for our sustainability
improvements performance
• Leverage our sustainability performance in a
credible way
5. Shape, influence, anticipate 6. Learn, network, explore
Make sure that: • Learn from NGOs, other industry’s experience
• our needs and specificities are understood and • Be part of a group of leading companies
taken into account • Better relations with customers
• The standard is relevant, applicable, • Establish legitimate links with key aluminium
meaningful, easy to implement users and improve our market insight
• We get ready when ASi comes into force • Practice stakeholder engagementConclusion For many years, Rio Tinto has been applying a leading sustainability policy to advance the overall performance of its operations, While keeping a focus on continuous operating improvement, industry-wide collaborative initiatives are also essential for a leading sustainable performance.
27th February 2013 Thank you for your attention
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