![]() Date: 2025-07-02 Page is: DBtxt003.php txt00009424 | |||||||||
Company ... Novelis | |||||||||
Burgess COMMENTARY | |||||||||
Our Supply Chain Impacts and Risks Novelis’ recycled inputs target is a central focus of our sustainability strategy because our most material environmental impacts and social risks occur “upstream” in our value chain through our sourcing of primary aluminum. As a result, the most significant way that Novelis – the world’s largest purchaser of primary aluminum – can reduce its environmental and social impacts is by decreasing our reliance on primary aluminum. Primary aluminum is produced through a process of extracting alumina from the mined substance bauxite and then refining it into liquid metal. While primary aluminum producers have increased their resource efficiency substantially over time, primary aluminum production remains a relatively water- and energy-intensive process, and therefore generates significant amounts of greenhouse gas (GHG) emissions. Mining operations also have the potential to impact local biodiversity, water quality and other natural resources. In addition, because some mining operations take place in locations where laws regarding working conditions and human rights are not well-established or consistently enforced, they also have the potential to present a range of social risks. At the end of FY14, primary aluminum comprised 54% of Novelis’ aluminum inputs. Our goal is to reduce primary aluminum to 20% of our inputs by 2020, with the remaining 80% made up of recycled aluminum. Recycled aluminum requires approximately 5% of the energy needed to produce primary aluminum, so when we reach our goal we will eliminate 10 million metric tons of GHGs from our value chain and cut our absolute GHG emissions in half – even with increased production volumes. However, even when we reach 80% recycled inputs, we will continue to utilize primary raw materials. As a result, we are involved in industry associations, such as the Aluminum Stewardship Initiative, that are working to find ways to minimize the environmental impacts and social risks associated with primary aluminum production and raise the performance bar across the industry. Through initiatives such as this, we are able to engage directly with our primary aluminum suppliers – which also have their own sustainability programs in place – as well as a range of other stakeholders to continue to find ways to support reducing the impacts of primary aluminum production. Figure 3: Novelis’ Supply Chain
Bauxite Mining Biodiversity Human rights Alumina Refining Energy & GHGs Waste Water Primary* Smelting Energy & GHGs Water Human rights Biodiversity Ingot Casting Novelis Fabrication Customer Production Post-Production Scrap Take-Back Consumer Use End-of-Life Collection Novelis Recycling Operations & Processing** WasteEnergy & GHGs Primary aluminum supply chain 54% of inputs as of FY14 Recycled aluminum supply chain 46% of inputs as of FY14 Recycled aluminum supply chain target 80% of inputs by 2020 Key for primary impacts Energy & GHGs Waste Biodiversity Water Human rights * This evaluation considers the impacts of the primary aluminum industry’s current significant use of hydropower electricity during the smelting process.** Within the context of the full value chain, the energy and GHG impact of this phase is small relative to the primary aluminum production phase (5% vs. 95%). However, within Novelis’ own organizational boundary, the impact is more material. Security of Aluminum Supply Security of Aluminum Supply Sourcing Overview Re-engineering Our Supply Chain Our Supply Chain Impacts and Risks Security of Aluminum Supply Our Global Recycling Strategy Responsible Sourcing Overview Letter from Our Chief Executive Officer Performance Summary About Novelis About This Report The Global Reporting Initiative Index UNGC Communication on Progress Index Strategy Overview Pioneering a New Way of Doing Business Our Strategy and FY14 Highlights Materiality Stakeholder Engagement Sustainability Management and Governance Sourcing Overview Re-engineering Our Supply Chain Our Supply Chain Impacts and Risks Our Global Recycling Strategy Responsible Sourcing Manufacturing Overview Our Manufacturing Operations Our Environmental Performance Developing Our People Engaging with Our Communities Customers Overview Delivering Value to Our Customers Sector Focus: Automotive Sector Focus: Beverage Can Sector Focus: Specialties Consumers Overview Engaging with Consumers Product Safety and Health © 2014 Novelis Inc.Privacy PolicyTerms of useContactLocations |