Supply Chain

Our sustainability approach covers the entire life cycle of a product, making it critically important for our suppliers and those who serve them to conduct business in a responsible, ethical and sustainable manner.

Global Supplier Sustainability Program
Our Global Supplier Sustainability Program works to ensure our Values are incorporated into our supply chain. It also provides due diligence of, and insight into, the environmental, social and governance performance of key suppliers and a framework to work with them to advance sustainability.

The program, which we conduct in partnership with EcoVadis, assesses our supply chain and supply chain source materials against 21 criteria covering environment, labor and human rights (including modern slavery), ethics and sustainable procurement.

2020 Global Supplier Sustainability Program Results

Companies Assessed

395

corporate groups covering

650

suppliers

(7.7 percent of global supply chain)

Alcoa Spend with Companies Assessed

US$3.6

billion

(43.9 percent of global procurement spend)

Percent Meeting Minimum Requirements

Average Scores
(1 to 100 scale)

Supply Chain Spend

In 2020, we purchased US$8.2 billion in goods and services from thousands of suppliers around the world.

To help increase our spend with suppliers near our facilities, we developed a procurement tool that allows us to track local spend not only by amount but also by the proximity of suppliers to the Alcoa shipping address. The latter data is categorized by number of shipments to the same city, same state (United States only), same country and non-local (outside of the country in which the Alcoa facility is located).

2020 Spend by Region

Region	Supply Chain Spend (Billions of U.S. dollars)	Supply Base Composition (Percent of total supply base)
Australia	1.8	22.0
Europe	1.8	21.9
North America	3.6	43.9
South America	1.0	12.2
Total	8.2	100

2020 Local Spend

*Outside of the country in which the Alcoa facility is located.
Same Country	Same State (United States Only)	Same City	Non-local*
51% +1 percentage point change from 2019	7% -1 percentage point change from 2019	5% No percentage point change from 2019	38% No percentage point change from 2019

Learn more in the full 2020 Alcoa Sustainability Report.