icmm maximizing value - summary

8/8/2019 ICMM Maximizing Value - Summary

1/6

Maximizing ValueGuidance on implementing materialsstewardship in the minerals andmetals value chain

This leaflet has been produced as a supplement to the ICMMpublication entitled Maximizing Value: Guidance on implementingmaterials stewardship in the minerals and metals value chain .It provides a summary of the detailed guidance document and isintended to familiarize the reader with the concept of materials

stewardship and the associated business value that it can create.


2/6

The ICMM Sustainable DevelopmentFramework represents an ambitious, broadand complex challenge for the industry. A keycomponent of this challenge is to work withother stakeholders in the value chain ofminerals and metals to ensure the use ofthese materials is optimized; theenvironmental, health and safety risks areminimized; and, wherever possible the valueof the material is captured and re-circulated

through the economy. Maximizing Value supports ICMM members in their commitmentto a number of the Principles within theSustainable Development Framework. It isparticularly relevant to Principle 8, to facilitateand encourage responsible product design,use, re-use recycling and disposal; Principle6, to continually seek ways to improve ourenvironmental performance, and Principle 5,to seek continual improvement of our health

and safety performance.

The guidance document outlines a range ofactivities that can be undertaken to ensurethe minerals and metals industry works inconjunction with other actors in the valuechain to achieve optimal and appropriate useof metals in society. This means responsiblyproviding materials and working to ensurethat material flows create maximum societalvalue and minimum impact on humans andthe environment.

In practice, materials stewardship is about: Understanding the social, environmental

and economic impacts of your material as itmoves through its life cycle from mining touse and through to the end of its life.

Developing relationships with other actorsalong the life cycle who can promotebeneficial and appropriate use of yourmaterial or who can minimize risks tohuman health and the environment.

Taking action on appropriatestewardship activities for the part of the

Introduction

Demand for metals may have reachedunprecedented levels of late but if themining and metals sector is tocontribute successfully to sustainabledevelopment we must adopt principlesand practices which address the entirelife cycle of the materials we produce.Progress must be founded on a sense ofshared responsibility for the resourceswe utilize and the materials we create.It is this integrated approach which liesat the heart of materials stewardship.

Maximizing Value is a key element inICMMs sustainable developmentagenda. It provides guidance to assistmembers in understanding andimplementing effective materialsstewardship strategies while creating

additional business value throughidentifying new opportunities in anincreasingly competitive global marketplace.

ICMMs Principlesand Vision


3/6

life cycle you directly control. And for theareas where you are not in direct control,but have influence, you work with andencourage other actors in the life cycle toplay their part.

In reality, our capacity to act as stewards ofthe materials we produce changes betweenthose parts of the materials life cycle overwhich we have direct control and those parts

which we cannot manage directly. In thoseparts of the materials life cycle where we donot have direct control our stewardship maybe exercised through partnerships, provisionof information and other routes of influenceand support. These two aspects of materialsstewardship capacity can be referred to asprocess stewardship (direct control) andproduct stewardship (influence and support).At the business level, the capacity or

requirement for process and productstewardship within a particular material cyclewill differ between companies dependent on

the nature of their business. For example,a company that mines and refines bauxite,casts aluminium ingots, rolls cansheet andproduces drink cans, will have a broader rolein process stewardship than a company whichonly produces aluminium ingots. Beyond itsparticular scope of process stewardship,a company seeking to fully adopt a materialsstewardship policy will be engaged inproduct stewardship with respect to the

fabrication, use and ultimate recycling ofaluminium cans.

While the nature and extent of a companysmaterials stewardship activity will dependon the extent of their business throughoutthe materials life cycle, there is generalagreement that the concept of materialstewardship is still evolving and will beshaped by different parties along the mining

and metals supply chain. This flexible,life cycle approach goes to the heart of theguidance contained in Maximizing Value .

Return toenvironment

Societal demand for minerals and metals

Exploration

Mining

Concentration

Smelting and refining

ProcessStewardship

ProductStewardship

Recycling

Re-manufacture

Re-use

Disposal

Fabrication

Design and manufacture

Use

Figure 1: The scope of materials stewardship encompasses process and product stewardship


4/6

At the heart of Maximizing Value is practicalguidance on implementing materialsstewardship which is centered on four keythemes. While not prescriptive, the themesand associated activities recommended inMaximizing Value provide a comprehensiveset of actions that will help initiate or expandcurrent materials stewardship programs inan organization. Improving the understanding,awareness and implementation of materials

stewardship will help an organization improveits performance by managing risks andcreating relationships that may lead to newbusiness and market opportunities.

Theme 1Taking a Systems PerspectiveThe systems approach is about integratinglife cycle thinking into existing managementsystems and therefore into business decision

making. It outlines steps for looking up anddownstream along the supply chain forexample focusing on a particular applicationfor the material in order to better understandpotential impacts and sustainable benefits.The message for ICMM members is that itpays to participate in this type of initiative.

Theme 2Building new and strengthening existing

relationshipsThe second theme is about buildingrelationships up and down the supply chain.This can encompass a range of stakeholders,from fellow employees to governmentofficials, customers and consumers.The growing number of eco-consciousarchitects working in the constructionindustry is put forward as one example.This group will look at such issues as therecycled content of construction materialsand their durability as part of selectioncriteria.

Theme 3Optimizing the production and application ofminerals and metalsThe third theme of material optimizationrequires a company to understand theintrinsic value of a material alongside thepotential environmental risks throughout itslife cycle. The Guidance notes that there areincentives for, improving process andproduction efficiencies, extending product

life, enhancing recycling, and/or improvingdesign innovation regarding materials use atdifferent stages of the value chain.

Theme 4Contributing to a robust, accessible base ofinformation to support decision makingThe fourth theme covers life cycleinformation which can be shared to supportcollaborations to ensure that all concernedare better informed, better protected andultimately more able to make their owncontribution to the stewardship process.The more information that is made available,the more likely we are to achieve decisionmaking that favours sustainability.

Guidance


5/6

The benefits of pursuing materialstewardship are becoming increasinglyclear and as pressure on the sector toperform increases, the business value ofundertaking materials stewardship will alsorise. Maximizing Value does not prescribeactivities a company must undertake.Rather the themes and activities outlinedcan be seen as a menu of possible actionsto select from that will help protect and

grow the market. For the minerals andmetals industry, the business drivers formaterials stewardship can include:

Competition and market accessIncreasingly, individual sectors includingelectronics, automotive, heavymanufacturing and building and constructionare evaluating the sustainability attributesof materials as part of the product selection

process. In the future this evaluation islikely to take into consideration the sourceof materials and the stewardship policiesbeing employed along the supply chain.The sustainable development agenda is notgoing to go away and a product that satisfiesstakeholders, not to mention regulators indifferent parts of the world, can be moresaleable.

ReputationA companys reputation is highlighted asanother important factor. In fact, in a globaleconomy this can have a significant impacton a companys licence to operate, forexample, when it is trying to open a newoperation and obtain community, regulatoryand financial support. Reputation can beenhanced by the ability of companies andindustry sectors to demonstrate a positiveapproach to an issue like materialsstewardship.

Regulatory ComplianceRegulations such as REACH (Registration,Evaluation and Authorisation of Chemicals)and those relating to such developments asproducer responsibility, waste and recycling,are another driver for implementingmaterials stewardship. All these regulationsare tending to take a broader view of thematerials being evaluated. For example, theEUs REACH directive will incorporate

information on downstream use into riskassessment and chemical prioritization and its rules will have a global impact onthe industry.

Cost SavingsThere are a growing number of examplesto support the fact that materialsstewardship can be an important facet ofgood governance for a company. It can, forexample, help to make resources moreproductive, increase mine efficiency,contribute to risk management and improveeco-efficiency. The result in each case canbe significant cost savings and direct impacton the bottom line.

Market developmentFinally, there is little doubt that futuremarkets will favour materials with superiorsustainability performance. While countrieslike India and China continue to drivedemand for minerals and metals, there isincreasing global pressure to minimizethe life cycle impacts of products.The harvesting, extraction, production,use and potential recovery of materials areall factors likely to influence stakeholders,including customers and end consumers.

Maximizing Value provides various examplesof companies that are, as a result of effectivematerial stewardship policies, enjoying thebusiness benefits listed here.

Added Business Value


6/6

The penultimate section of Maximizing Value tackles the challenging issue of how tointegrate material stewardship into decisionmaking. As with any new initiative, positioningmaterials stewardship within an organizationsstrategy and business objectives is critical tosuccessful implementation. Developing astrategy to move forward may become cleareronce priority issues or achievable businessopportunities are identified. Possible examples

are process efficiency improvements or theimpact of emerging material evaluationprotocols. Key implementation success factorsinclude involving senior management,identifying clearly the business case,developing inspiring case studies, and trainingkey personnel who can influence materialsstewardship performance. It is also importantto develop the right decision support tools andmonitor progress which, in turn, should be

documented and communicated to internaland external audiences.

It is imperative that the minerals and metalsindustry take action today to demonstrate itsunderstanding and commitment to materialsstewardship. However it is equally importantto understand and communicate that puttingmaterials stewardship into practice willrequire the input and cooperation of a rangeof stakeholders across the value chains ofmineral and metals from the users, productdesigners and engineers to regulators, therecycling industry and non-governmentalorganizations. Maximizing Value will helpstimulate ideas to promote such cooperation.Through the combined and individual effortsof many actors in the value chain of mineralsand metals, materials stewardship willcontinue to grow as an important conceptand set of actions for improving thesustainability performance of our materialsand our industry.

The International Council on Mining andMetals (ICMM) is a CEO-led organizationcomprising many of the worlds leadingmining and metals companies as well asregional, national and commodityassociations, all of which are committed toimproving their sustainable developmentperformance and to the responsibleproduction of the mineral and metalresources society needs.

ICMM, 19 Stratford Place, London W1C 1BQTelephone: +44 (0) 20 7290 4920Email: info @ icmm.com

Integrating MaterialsStewardship

icmm maximizing value - summary

Documents