Responsible Aluminium Framework
Introduction ERG and aluminium assets Eurasian Resources Group (ERG) is a leading diversified natural resources group with integrated mining, processing, energy, logistics and marketing operations. Our Kazakhstan Aluminium Smelter JSC (KAS) is the first and only producer of high-grade primary aluminium in Kazakhstan. It ranks in the top ten of the world's 200 largest aluminium enterprises. We mine and process bauxite ore at Aluminium of Kazakhstan (AoK), that supplies alumina to KAS. Both assets, AoK and KAS, belong to ERG and are integrated into ERG-wide management practices. We are committed to the responsible production of metals and have developed the ERG Responsible Aluminium Framework which will focus on metal production at AoK and KAS. Our goal is to ensure that our aluminium is produced responsibly and to address risks associated with the supply chain. ERG’s framework aims to provide overview of the approach to our own supply chain and supporting the supply chain due diligence of our customers in their sourcing. Aluminium value chain Aluminium is expected to play an important role in the global energy transition – helping reduce the weight of road vehicles and supporting wind generation, solar power and the development of lithium-ion batteries. It is also supporting urbanization and, given its recyclability, the development of a more circular economy. There is also an increasing public awareness and consumer demand for assurances as to the provenance of resources and materials. Potential risks in the aluminium value chain include but are not limited to potential human and labor rights abuses, and environmental damage. Additionally, aluminium production is very electricity-intensive, thus, requiring carbon footprint disclosure and reduction across the value chain. Given this global context and the growing role of aluminium, it becomes critical for aluminium supply chain players to ensure alignment with the internationally accepted responsible sourcing requirements, including LME responsible sourcing requirements. As ERG, we have the full overview and control over origin of the ore in the aluminium supply chain. We do not purchase alumina from external sources, which reduces the risks to our supply chain. Introduction Our three element approach to responsible sourcing Our Responsible Aluminium Framework considers production, sourcing of metals and minerals and procuring goods and services. It commits to zero tolerance to human rights abuses, pursuits an enhanced environment and sustainability leadership across the value chain. Three major elements of the approach are depicted on the Diagram 1 below and described throughout the document. We establish an overarching risk management system and ensure risks of the supply chain are effectively managed in line with the defined risk appetite. We follow internationally accepted standards on business ethics, environment and health and safety in our operational assets (see page 6). We require our suppliers to go through a stringent due diligence process prior to engagement and expect them to follow our Supplier Code of Conduct. We work collaboratively with our suppliers, experts, industry consortia, peers and customers to enhance practices in aluminium value chain. Our supply chain procedures are aligned with OECD Due Diligence Guidance for Responsible Sourcing from Conflict-Affected and High-Risk Areas (OECD Guidelines), as well as with LME Responsible sourcing requirements. We will obtain third party assurance on the red flags assessment in our supply chain and commit to continual improvement as we implement and learn, starting from aluminium supply chain and then extending to other minerals. Diagram 1. ERG three element approach to responsible sourcing
Slaidy.com
