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.

In 2019, we implemented a new Global Supplier Sustainability Program that gives greater insight into the sustainability performance of our suppliers and improves the management of our supply chain risk.

Under the enhanced program conducted in partnership with EcoVadis, we assess select suppliers against 21 criteria in the categories of environment, labor and human rights, ethics and sustainable procurement.

More than 300 corporate groups covering nearly 600 suppliers (7 percent of our global supply base and 39 percent of our global supply chain spend) participated in the program in 2019. Of the participants, 96 percent met our minimum requirements. The average overall score was 45.6, which is 7.5 percent above the EcoVadis benchmark.

Alumar has been one of the companies that maintained the Suppliers Development Program of Maranh?o (PDF) since the beginning. Over 20 years of support and encouragement, Alumar has contributed to the creation and growth of companies and income in Maranh?o. Alumar, in partnership with PDF, presented the AlcoaBuy tool to local companies in 2019. This tool expands the opportunities for supplying the company with materials and services, enabling the generation of more business.”

Carlos Jorge Taborda Macedo
Supplier Development Program Coordinator
Federation of Industries of the State of Maranh?o

Supplier Assessment Criteria

ENVIRONMENT

  • Energy consumption and greenhouse gases
  • Water
  • Biodiversity
  • Local and accidental pollution
  • Materials, chemicals, and waste
  • Product use
  • Product end of life
  • Customer health and safety
  • Environmental services and advocacy

ETHICS

  • Corruption
  • Anticompetetive practices
  • Responsible information management

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

SUSTAINABLE PROCUREMENT

  • Supplier environmental practices
  • Supplier social practices

2019 Global Supplier Sustainability Program Results

Companies Assessed

314

corporate groups covering

580

suppliers

(7 percent of global supply chain)

Alcoa Spend with Companies Assessed

US$3.4

billion

(39 percent of global procurement spend)

Regional Supply Chain Spend Assessed

Australia

Europe

North America

South America

Percent Meeting Minimum Requirements

Average Scores

2019 Spend by Region
Billions of U.S. dollars

► Hide the table▼ Show the table

2019 Spend by Region

Region Supply Chain Spend
(Billions of U.S. dollars)
Supply Base Composition
(Percent of total supply base)
Australia 1.81 20
Europe 2.10 24
North America 3.65 42
South America 1.28 14
Total 8.84 100

In 2019, we purchased US$8.8 billion in goods and services from thousands of suppliers around the world.

To help increase our spend with suppliers near our facilities, we use 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. This localized data allows us to identify opportunities to increase our spend with local suppliers and also helps us analyze the environmental impact of transporting products from suppliers to our facilities.

Case Study

    Supporting local suppliers

    A small company located in São Luís, Brazil, AMA Armazém de Materiais e Abastecimento Ltda. is always looking for innovative ways to stay ahead of the competition. When the Alcoa Buy online marketplace launched, this distributor of kitchen supplies was quickly onboard.


    Read more >

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