AICE Expert Insights | The Core Imbalance in ESG Transformation—Demand Growth and Resource Constraints

2 Expert Insights

Novelis' Response Strategies

1. Technological Innovation

Using low-carbon aluminum semis, promoting the use of hydropower aluminum (Hydro CIRCAL) and secondary aluminum (such as Novelis' 80% secondary aluminum products). Process optimization is carried out to improve smelting efficiency and reduce processing scrap, with the scrap aluminum recovery rate in Asian factories exceeding 90%.

2. Closed-Loop Supply Chain Construction

Collaborating with automotive customers to establish a "closed-loop recycling system," recycling aluminum semis from scrapped vehicles (such as the cooperation model with Jaguar Land Rover). Expanding secondary aluminum capacity in Asia, close to customer clusters (such as the expansion of automotive aluminum sheet capacity at the Changzhou plant in China).

3. ESG Ecosystem Collaboration

Jointly setting standards with upstream and downstream partners, promoting Aluminium Stewardship Initiative (ASI) certification, and requiring suppliers to meet environmental and human rights standards. Empowering customers by providing carbon footprint measurement tools to help automakers achieve lifecycle emission reduction goals.

Requirements for Supply Chain Partners

1. Upstream (Mining/Smelter)

Using renewable energy and disclosing carbon emission data per unit of product. Obtaining ASI certification to ensure no child labor or forced labor.

2. Midstream (Processing/Logistics)

Adopting digital systems to track material flows and reduce carbon emissions in transportation. Supporting scrap aluminum sorting and recycling technologies to improve the purity of secondary aluminum.

3. Downstream (Automakers/Consumers)

Accepting green premiums and paying reasonable costs for sustainable aluminum semis. Participating in recycling network construction to promote the "vehicle-to-aluminum" circular model.

For more in-depth analysis, stay tuned for the Aluminum Industry Chain Sustainable Development Forum, hosted by AICE Aluminum Industry Expo at the Suzhou International Expo Center on April 17, 2025!