Responsible value chain

We seek to apply responsible business practices throughout our value chain by sourcing responsibly and enhancing product stewardship. Our aim is to build strong, mutually beneficial relationships with stakeholders and to work with suppliers and customers whose values and conduct align with ours.

Responsible sourcing

We source a variety of non-traded goods and services from our suppliers to keep our operations running, ranging from heavy mining equipment to small electrical componentry. Our expectations of suppliers are outlined in our Code of Business Conduct (Code) and Sustainability and Business Conduct – Minimum Supplier Requirements.

We aim to work with suppliers with strong values and standards of conduct and that share our commitment to safe and lawful business practices.

Suppliers of services are inducted through our contractor management process, which was set up to strengthen safety and performance of our contracting partners. The process outlines clear supervision, accountability, and performance requirements and provides the basis for operational audits through our stewardship program against our internal contractor management standard.

Read about our approach to mitigating risks in our supply chain in our 2024 Sustainable Development Report.

Responsible sourcing in the shipping supply chain

While we do not own any ships or employ any seafarers, we depend on maritime transport for delivery of supplies to our operations and our commodities to customers.

Our enhanced due diligence program which aims to improve the identification and management of modern slavery risks across our maritime supply chain. The program includes vetting, audits and physical inspections conducted by South32, to identify potential red flags for non-compliance to the Maritime Labour Convention, with a specific focus on crew welfare.

We also participate in maritime-focused human rights initiatives and industry groups, including the Mission to Seafarers which operates the Seafarers Happiness

Index, a quarterly survey that measures the satisfaction levels of seafarers across various aspects of their life and work at sea. 

In August 2024 we joined the Sea Cargo Charter, a global initiative that provides a framework promoting the disclosure of fuel use data, greenhouse gas emissions and climate alignment by charterers.

Responsible marketing and product stewardship

Our approach to the stewardship of our commodities focuses on accepted best practices for their handling, transportation and use.

We are guided by principles and standards set by industry bodies and commodity associations relevant to our products. These include:

• ICMM,
• The International Manganese, Lead and Zinc Institutes,
• The Aluminium Stewardship Initiative (ASI),
• The Australian Aluminium Council, and
• The National Alliance for Advanced Transportation Batteries.

We maintain safety data sheets for our products, based on the latest available criteria and testing, which are provided to customers for their reference when shipping, storing, handling or using products sold by our Marketing function.

We also conduct internal and external audits to assess the adequacy of product stewardship controls and the effectiveness on their application.

Sustainability standards and certifications

Customers expect transparency in their supply chains to better understand the origins and the sustainability-related characteristics of the products they purchase. We gather insights on customers' sustainability priorities and requirements, including through proactive engagement with our customers, systematised data collection, and monitoring and understanding new and emerging policies and regulations that may impact product demand and placement.

Sustainability credentials from independent associations can reinforce responsible environmental and social practices and build stakeholder confidence.

In September 2024, Worsley Alumina obtained ASI Performance Standard Certification, providing assurance that their production practices are consistent with ASI’s environmental, social and governance principles and criteria. Worsley Alumina’s certification has added to the ASI Performance Standard Certification attained by Mozal Aluminium in 2023.

Mineração Rio do Norte bauxite mine, in which we hold an interest, obtained ASI Chain of Custody (CoC) Certification in 2023 against the ASI CoC Standard, allowing our share of Brazil Alumina product to be ASI CoC certified.

Hillside Aluminium and Mozal Aluminium are LME-listed brands.