Supply Chain

Our sustainability approach covers the entire life cycle of a product, so we seek suppliers that share our commitment to sustainability.

This is included in our Global Supplier Sustainability Program and Supplier Standards, which are an integral part of doing business with Alcoa.

Global Supplier Sustainability Program

As part of our approach to responsible sourcing, we identify, integrate and manage ESG requirements and risks (including human rights) into our procurement practices and supplier management. Through a suite of ESG intelligence providers and a digital library integrated in our enterprise resource planning (ERP) system, ESG becomes part of our category strategies, supplier tenders, supplier selection process, contract Key Performance Indicators (KPIs), supplier performance management and monitoring. In 2021, we expanded the program to include ESG risk screening of our entire supply base, integrating a risk-based decision criteria to determine where suppliers require further assessment, monitoring, or audit.

Our responsible sourcing approach is supported by the following KPIs:

• ESG risk screening of all of our suppliers and business partners
• Further due diligence through assessment of all high-risk suppliers
• Percentage of suppliers improving their ESG maturity rating year on year
• An average Alcoa supplier ESG maturity rating compared to the EcoVadis benchmark