How to Achieve Sustainable Development and Enhance Corporate Competitiveness Through ASI Certification [SMM Aluminum Industry Conference]

On April 16, at the AICE 2025 SMM (20th) Aluminum Industry Conference and Aluminum Industry Expo—Alumina and Aluminum Raw Materials Forum, hosted by SMM Information & Technology Co., Ltd., SMM Metal Trading Center, and Shandong Aisi Information Technology Co., Ltd., and co-organized by Zhongyifeng Jinyi (Suzhou) Technology Co., Ltd. and Lezhi County Qianrun Investment Service Co., Ltd., Zhou Chu, Senior Technical Manager of the Green and Low-Carbon Development Center of Zhongbiao Hexin (Beijing) Certification Co., Ltd., shared insights on how to achieve sustainable development and enhance corporate competitiveness through ASI certification. Current Global ASI Certification Development Status: - A total of 220 ASI audits were completed in 2024 (an 8% increase from 2023), covering 61 countries. - ASI issued 73 certification certificates, including 51 Performance Standards (PS) and 22 Chain of Custody Standards (CoC). - 62 re-certification certificates were issued, including 40 PS re-certifications and 22 CoC re-certifications. - As of January 10, 2025, a total of 181 ASI Performance certificates have been issued globally, with 69 in China. Additionally, 73 CoC certificates have been issued, with 37 in China. 01 Industry Status: 1.1 Current Status of Aluminum Reserves and Production: By the end of 2023, global bauxite reserves were estimated to exceed 30 billion mt, most of which remain untapped. 1.2 Current Global Market Demand for Aluminum: ► Factors Influencing Global Aluminum Market Demand Over the Past Decade: 2015: Rising demand from China's infrastructure and automotive lightweighting; 2016: Declining demand in China due to stricter property market regulations; 2017: Aluminum prices rebounded in China due to environmental protection and capacity reduction policies; 2018: US-China trade friction and tariff increases hindered Chinese exports, but demand from infrastructure and NEVs remained stable; 2019: Global economic slowdown and manufacturing downturn led to peak demand in China; 2020: Demand in the new energy sector surged against the trend; 2021: Global monetary easing and EV demand explosion; 2022: European energy crisis suppressed demand, and China's real estate market declined; 2023: Global PV and NEV boom, and China's old community renovations boosted demand; 2024: Increased PV installations and NEV penetration, and upgrades to aging power grids. In summary, the shift from "building houses and cars" to "manufacturing solar panels and EVs" has made environmental protection policies and energy transition the core drivers, with Chinese demand remaining a barometer for the global aluminum market. ► Divergence in Global Aluminum Market Demand: The demand share from China, Europe, the US, Southeast Asia, and India was discussed. ► Changes in Demand Structure: Emerging Sectors Rise, Traditional Sectors Transform: The rise of emerging sectors: In 2023, PV accounted for 11.4% of global aluminum usage, becoming the fastest-growing sector. EVs use 30%-50% more aluminum per vehicle than traditional cars, and global EV penetration reached 18% in 2024, driving growth in transportation aluminum. Traditional sectors are actively transforming: China's building renovation and renewal supported aluminum market growth, with construction aluminum accounting for 25% of usage in 2023. Additionally, the recovery in aluminum can demand in the packaging industry saw global aluminum can usage return to growth in 2024. ► Future Trends and Challenges: Growth drivers: By 2030, PV, EVs, and grid upgrades are expected to add over 7 million mt of aluminum demand (source: Rusal forecast report). China's "North Aluminum Southward Shift" and capacity expansion in Indonesia will reshape the global supply chain. Risk factors: Energy cost volatility (e.g., European natural gas prices), trade friction (e.g., Rusal sanctions affecting global circulation), and the rise in secondary aluminum production (14 million mt globally in 2023), though primary aluminum still dominates. On March 11, 2025, the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission (NDRC), and the Ministry of Natural Resources jointly issued the "High-Quality Development Implementation Plan for the Aluminum Industry (2025-2027)," which aims to promote high-quality development in the aluminum industry. Many measures align with ASI certification principles, providing strong support for companies pursuing ASI certification. ASI certification focuses on the sustainability of responsible aluminum production, procurement, and management, emphasizing best practices in environmental, social, and governance (ESG) aspects. 02 Why ASI Certification Matters: 2.1 What is ASI Certification? The Aluminium Stewardship Initiative (ASI): A global, multi-stakeholder, non-profit organization that creates and promotes sustainability standards for responsible aluminum production, procurement, and management. ASI certification is a third-party independent verification process that ensures the entire aluminum value chain—from mining to end products—complies with best practices in environmental, social, and governance (ESG). 2.2 ASI Certification Standards: ► ASI certification offers two voluntary standards for applicants: ASI Performance Standard (PS) and ASI Chain of Custody Standard (CoC). Performance Standard: Aims to ensure sustainability in environmental, social, and governance (ESG) aspects throughout the aluminum production and supply chain, covering bauxite mining, alumina refining, aluminum production, semi-finished product manufacturing, and aluminum product recycling. Chain of Custody Standard: Ensures traceability of aluminum materials from production to end products, guaranteeing that consumer products originate from responsible production processes compliant with ASI Performance Standards. It is a voluntary certification for ASI members, with responsible procurement policies, anti-corruption, human rights due diligence, and conflict-affected and high-risk areas aligned with the Performance Standard. 2.3 Why Companies Need ASI Certification: Relevant cases were cited, and it was noted that companies not implementing ASI certification and failing to adopt sustainable development measures may face the following adverse effects: - High probability of affecting international market participation: Major global clients (e.g., automotive, aviation, construction) often require suppliers to have ASI certification, and uncertified companies may be excluded from these markets. - Increased compliance risks: Stricter environmental regulations and trade barriers may lead to high fines, lawsuits, and supply chain disruptions for uncertified companies. - Negative impact on brand reputation: Public and consumer focus on corporate environmental responsibility may lead to a trust crisis and damage brand image for uncertified companies. 03 How to Apply for ASI Certification: 3.1 ASI Membership Types: Becoming an ASI member is the first step to pursuing ASI certification! 3.2 ASI Certification Process: 3.3 Key Factors for Successful Certification: ► Management support: Management's support plays a central role in the certification process, requiring strategic integration of ASI certification into corporate planning. ► System construction: Establishing an ESG system compliant with ASI standards is critical. Only a comprehensive and compliant ESG system can meet certification requirements. ► Data management: Accurate and compliant data management is essential for certification. Comprehensive energy and carbon monitoring, data collection, analysis, and records effectively demonstrate a company's efforts and achievements in sustainability during audits. ► Supply chain collaboration: Sustainable raw material extraction and transportation upstream, and sustainable product use and recycling downstream, jointly setting and executing sustainability goals, sharing experiences and resources, and enhancing corporate competitiveness and overall supply chain sustainability. Additionally, an overview and qualifications of Zhongbiao Hexin (Beijing) Certification Co., Ltd. were introduced, along with how it supports companies. Summary and Call to Action: ASI Certification = Corporate Sustainability + Competitiveness Enhancement Act early to seize market opportunities! Click to view the AICE 2025 SMM (20th) Aluminum Industry Conference and Aluminum Industry Expo special report.