Key Processes and Systems
Requirements for services provided onsite at Alcoa
- Health and Safety Policy
- Safety qualification process
- Contractor Management System
We Aim to Source Responsibly
We co-operate closely with our suppliers with the goal that responsible sourcing is practiced systematically throughout our entire supply chain. Alcoa’s Responsible Sourcing Program provides the framework for our supply chain due diligence and sustainability measures.
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.
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.Read more about TRAC.
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.
- Energy consumption and greenhouse gases
- 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
- Anticompetitive practices
- Responsible information management
- 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.
Regional Supplier Information
General Terms and Conditions for all European Locations except Hungary
Revision Date: 03/02/2020
General Terms and Conditions of Purchase for Suppliers of Alcoa locations in Hungary
Revision Date: 03/20/2020
Terms for Locations in the United States
Revision Date 08/22
Our Supplier Sustainability Program supports and monitors suppliers' performance.
We’ve designed an approach that ensures our values are incorporated into our supply chain. It also provides due diligence of, and insight into, the ESG performance of key suppliers and a framework to work with them to advance sustainably.
The program consists of three components: assess, audit and advance.
Using the EcoVadis IQ platform, we assess our supply chain and supply chain source materials for ESG risk with consideration of industry, countries of operation (including CAHRAs) and criticality of supply. Further due diligence of a supplier is conducted through a Denied Parties Screening (DPS) process via MK Denial. This ensures we are not doing business with suppliers that are listed on denied parties lists and/or have sanctions against them.
Based on results, we may ask some suppliers to complete a TRAC profile through Trace International. A TRAC profile comprises a due diligence assessment addressing bribery and corruption, bankruptcy, criminal history, trade compliance, ethics and conflict minerals. Suppliers are continuously monitored using 360 Watch. 360 Watch is part of the EcoVadis platform and monitors positive and adverse media, and human rights controversies from over 100,000 sources. Findings identified through the 360 Watch process are reviewed by EcoVadis with a materiality assessment given and, if applicable, can result in a change to a supplier’s EcoVadis Rating.
Based on our ESG Risk Decision Tree, we ask suppliers to further describe their sustainability journey by completing the EcoVadis Ratings audit (Stage Two Due Diligence). This digital, evidence-based audit is specific to the ESG risks associated with a supplier’s industry and countries of operations. It covers policies, procedures, endorsements, measures, certifications, maturity, KPIs and reporting across 21 criteria.
Our onsite human rights audit framework, referred to as our Supplier Site Collaboration Program identifies suppliers that may present higher human rights risks due to their industries, countries of operation, ESG maturity, EcoVadis 360 Watch findings and other factors based on the results from the Stage 2 (Audit) due diligence. The program uses the Response & Remedy Framework developed by the Human Rights Resources and Energy Collaborative in partnership with Walk Free.
Working with our suppliers to advance sustainably is core to Alcoa’s values. Through our integrated approach to responsible sourcing and our Supplier Sustainability Program, we help our suppliers implement both general and specific improvement plans, set key performance objectives and develop strategic partnerships to manage risk and create long-term value.
We specifically engage and partner with suppliers that score below 25 on the 100-point EcoVadis Ratings audit (Stage 2 (Audit) Due Diligence) to develop and implement an improvement plan that is supported by the EcoVadis Academy; a online, on-demand learning portal.