CBA ESG

Managing impacts from our value chain is central to taking sustainability beyond our company walls. Large organizations have real opportunities to influence change at different links in the value chain. This can have a multiplying effect, creating benefits for the business, society and the planet in a virtuous cycle of collaboration for sustainability.

Sustainable Procurement

Engaging with our suppliers around ESG helps to reduce exposure to business risks and is an important way to drive sustainability beyond the fence line. We believe a sustainable supply chain is one where all players address their own future needs while also expanding their focus across broader economic, social, ethical and environmental aspects.

Veja

This program is active in the following SDGs (Sustainable Development Goals)

Our 2030 Goals

100% of suppliers compliant with CBA’s Sustainable Procurement Policy.
Increase local sourcing from SMEs by 10%.

What we’re doing

Programa Suprimentos Sustentável

Being among the best-performing companies for sustainable procurement makes CBA more competitive and helps to drive positive impact from the business.

Our Sustainable Procurement Program, developed in collaboration with the Votorantim Institute, aims to engage CBA’s entire value chain—from mining to downstream production—around goals that extend well beyond price, quality and lead times. By embedding social, environmental and governance considerations in supplier assessments, the program can generate significant impacts on the environment and local communities, influence climate change, and provide insight into the level of ethics and transparency that suppliers demonstrate in doing business.

What we’re doing

Sustainable Procurement Policy

As part of our aspiration to be an industry leader for sustainability, we have recently completed a reformulation of our Sustainable Procurement Policy to reflect our ESG commitments. The Policy outlines guidelines on procurement processes and requirements on social, environmental and governance aspects. It describes how supplier practices are monitored and what steps employees should take if they become aware of any conduct in violation of the new Policy.

Sustainable Solutions for Customers

Societal and market expectations around product sustainability are becoming increasingly demanding. Aluminum offers uniquely vast possibilities in key industries—from automotive through building and construction to packaging and energy. Meanwhile, innovation and industry 4.0 are helping to connect B2B segments to companies’ increasingly agile and digital operations. This is creating new patterns of interaction among companies and their business partners. At CBA, our Market Development and Innovation department drives new market and product development through short-, medium- and long-term projects that support customers’ sustainability aspirations.

Veja

This program is active in the following SDGs (Sustainable Development Goals)

Our 2030 Goals

100% of billets produced at Metalex with greenhouse gas emissions lower than 1.4 tCO2/t.
Higher revenues from sustainable solutions for downstream customers*.

*At the Alumínio and Itapissuma plants.

What we’re doing

Metalex

Metalex, a CBA operation specializing in recycling, will soon have a new scrap treatment line that will allow it to process a wider range of scrap materials in the production process. Maximizing scrap content in the feedstock mix will help to reduce the carbon footprint from billets produced at the facility, offering our clients a product with further enhanced sustainability attributes.

What we’re doing

ReAl Project

An innovative physical and chemical process developed at CBA—dubbed ReAl—will enable us to recycle multilayer packaging materials (cartons and flexible packaging) produced by our customers. CBA’s ReAl technology will support the shift to a circular economy and offer a sustainable solution to customers that often struggle to recycle their products.

What we’re doing

Co-creation with Customers

CBA is always ready to help customers find new pathways, and our close engagement with customers creates opportunities to develop innovative applications for aluminum that leverage its many sustainability attributes.

A case in point was the development of a world-first technology that allowed one of our partners to use aluminum instead of fiberglass to produce bus roofs. The new roof model delivered significant benefits, including:

Weight reduction: a 40% lighter roof improves fuel savings for conventional buses and extends the range of electric vehicles.
Recyclability: unlike fiberglass, aluminum is infinitely recyclable, helping our customer to meet its responsibility for compliantly disposing of end-of-life vehicles.
Strength: aluminum improves vehicle safety by reducing the likelihood of rollover accidents.

Ethics and transparency are at the heart of good corporate governance, and that is why at CBA we adhere to the highest standards of conduct in our interactions with stakeholders. Good governance and compliance practices help to minimize ESG risks in our operations, generate positive stakeholder perceptions, create a favorable business environment, and influence the broader value chain.

Ethics and Transparency

The combination of ethics, respect, human rights and compliance helps to ensure the sustainability of our operations and the profitability of the business. Learn about the key tools we use at CBA to identify, monitor and prevent exposure to risks.

Veja

This program is active in the following SDGs (Sustainable Development Goals)

Compliance Program

Our Compliance Program guides us in our interactions with each other and with customers, suppliers, competitors, creditors, the media, communities and the general public. The Program scope covers laws and regulations, contracts and agreements, antitrust, prevention of losses and fraud, and anti-corruption. Our Compliance Program is managed by the Compliance & Governance function, which reports to the Audit Committee and the Board of Directors, both of which have independent members that can evaluate matters impartially and recommend continuous improvements.

Anti-corruption Policy

Our Anti-corruption Policy establishes guidelines on the conduct expected of employees, management and third parties in dealing with national and international government organizations on behalf of CBA. The Policy covers topics such as gifts, hiring third parties, and facilitation payments.

Code of Conduct

Our Code of Conduct outlines guiding principles on business conduct and the conduct expected of employees and business partners. It provides a source of guidance on ensuring that our formal and informal business interests are reconciled with the legitimate interests of stakeholders, as part of our commitment to creating value for both our Company and broader society. The Code also describes the channels available for communicating or reporting any misconduct in confidence.

Ethics Hotline

Via our toll-free number (0800 892 0791) or online channel

CBA takes a zero-tolerance approach to unethical, illegal or otherwise dubious behavior. We have an Ethics Hotline to report any suspected violations of our Code of Conduct, Anti-corruption Policy or good practices. Employees and external stakeholders can report concerns and request information by telephone or online. Reports are kept confidential, anonymous and addressed impartially. All reports are handled and investigated by an independent, specialized firm in accordance with CBA’s internal policies and applicable laws and regulations.

Our 2030 Goal

Achieve an average rating of 4 for our third-party-audited Compliance Program * .

*Currently based on KMPG methodology.

What we’re doing

CBA believes that, in order to achieve this goal, we must build on our ongoing internal efforts by implementing action plans recommended in audits. Externally, we have expanded the mechanisms in place to identify risks in the value chain, and have helped our suppliers to further develop their corporate governance practices.

ESG Ownership

At CBA we believe that broad stakeholder engagement is an essential part of a successful ESG strategy. In addition, the role our leadership team plays in championing our aspirations helps to infuse our culture across the organization. CBA recognizes that alignment with ESG practices supports greater profitability, access to better markets, a stronger reputation, and the ability to attract, retain and develop talents.

Veja

This program is active in the following SDGs (Sustainable Development Goals)

ASI – Aluminium Stewardship Initiative

One of the greatest testaments to our commitment to sustainability is our ASI certification, which we first obtained in 2019 and renewed in 2020. This certification attests that CBA’s production operations and aluminum conform to internationally recognized ESG standards across the aluminum lifecycle. CBA was the first aluminum producer in the Americas to receive certification to ASI’s Performance Standard and Chain of Custody Standard, covering our mines, two plants, our corporate offices, and all product types.

ASI’s Performance Standard establishes requirements for the aluminum value chain on social, environmental and governance performance.
The Chain of Custody Standard complements the Performance Standard and outlines requirements for the creation of a Chain of Custody for green aluminum.

ASI – Aluminium Stewardship Initiative

Certified operations and products

Three bauxite mining operations in Minas Gerais—Poços de Caldas, Itamarati de Minas and Miraí
Processes at the Alumínio plant (SP): Refinery, Smelters, Casthouses and Downstream (flat rolling and extrusion)
Processes at the Itapissuma mill (PE): Casthouse and Downstream (flat rolling)
Corporate Office in São Paulo (SP)
CBA’s product portfolio: from billets and ingots to sheet, rolled products and anodized and coated extruded profiles.

Variable compensation

All managers (corporate and operations) at CBA have ESG targets for variable compensation.

Using sustainability criteria in prioritizing investments

Since 2020, all assessments to prioritize CAPEX and OPEX investment have also taken sustainability factors into account. With an assessment weight of 30%, these factors include GHG emissions, waste, water consumption and community impacts.

Our 2030 Goals

100% of operations certified to the ASI Performance and Chain of Custody standards.
100% of employees with assigned ESG targets.
Embed ESG considerations in all pillars of CBA’s culture and business practices.

What we’re doing

Extending ASI certification

In addition to CBA’s current ASI-certified operations, our Metalex facility is preparing to undergo certification audits in 2021. The Itapissuma operation also plans to obtain certification against the Chain of Custody Standard for its products within the year.

What we’re doing

ESG learning pathway

ESG practices have become increasingly present in companies’ business and growth strategies over the years. Sharing knowledge about these practices has thus become a growing focus in an organization’s relationships with its different stakeholders. Among other initiatives, CBA has recently launched a new ESG Pathway—a training program designed to share information about this topic with employees and managers. The program uses a casual, fast-paced yet highly instructional approach in addressing the global ESG context and CBA’s 2030 strategy. It also stresses the importance of each of our development levers and the relevant programs of action, and describes the related SDGs, challenges and trivia.

ESG Communications

Society is increasingly demanding transparency. In a business context, transparency has become all the more important for organizations that are publicly dedicated to ESG. Enhancing internal and external visibility and ensuring reliable information is available about good practices, results, challenges and long-term goals has become essential for companies seeking to embrace sustainable practices. At CBA, ESG communications provide more than just reputational benefits—they are strategic in our ambition to influence people and lead in sustainability.

Veja

This program is active in the following SDGs (Sustainable Development Goals)

Our 2030 Goal

Achieve a RepTrak® Score greater than 80*

*In reputation surveys.

What we’re doing

CBA’s biggest communication challenge over the coming years will be to share information with stakeholders about the different ESG projects that will help us to achieve our goal of leading in sustainability. We want our stakeholders to recognize their role in meeting this ambition. CBA has identified dozens of initiatives that we will implement through 2025 to engage the organization around the CBA 4.0 journey, with each level of the organization playing a role in this digital network. We also want to create additional avenues for communication with external stakeholders. We will implement new digital channels for stakeholder engagement, with more intimate, transparent and inspiring messaging.