BUILDING SUSTAINABLE BUSINESSES FIT FOR A SUSTAINABLE WORLD 58 // DRIVING INNOVATION As part of our future-proofing activity we scan for areas of opportunity. We watch for potentially disruptive technologies or approaches emerging in the fringes of the economy and use the scenarios to explore the impacts of these going to scale. Developing our analytical capabilities and knowledge of what is happening outside the boundaries of our operations allows us to drive innovations in a much smarter way. This is not just about risk mitigation but also about putting our businesses in the position to recognise the opportunities that are available to them. We want to go beyond what we have already imagined and look for opportunities that will transform our world for the better. Novelis for instance has set out to use its position as a leader in aluminium rolling to catalyse major growth in recycling. It has developed the industry’s first independently certified, high-recycled content aluminium specifically designed for the beverage industry. The Novelis evercan™ uses a minimum of 90% recycled aluminium for beverage cans delivering drinks in a low-carbon consumer package. Such innovations showcase the Group’s capabilities to understand the changing external landscape and shape the future of the market ahead of competitors. Key areas where we are adapting for the future There is much to be done to make us sustainable business leaders and we are taking on the challenge. We are not only working with our existing businesses but we are also considering what being a sustainable business leader means for the industries we enter in the future and the resilience of the acquisitions we choose to make. Planning for a Circular Economy Resource volatility, energy depletion and waste management are all issues that are affecting our businesses. How we look to the future and seek out the opportunities from the challenges they present is a differentiator for our businesses and the Group. Circularity in and of itself is not a new idea. It makes good business sense for our operations to manage their resources effectively, to find ways within our R&D to reuse and repurpose our resources to drive both operational and cost efficiencies. Our businesses are already exploring opportunities in areas such as water, energy and material flows to develop closed-loop systems where possible. What is new is the exploration of the opportunity that circularity can have on the development of our products and services. For instance, could our acrylic fibre business develop a product that avoids shedding microplastics into the ocean? By viewing these within the lens of business opportunities for growth in the future, we can further embed practices that will result in us becoming sustainable business leaders. Leading by what we do as well as how we do it. Since 2011, Novelis has embarked on a journey to adapt its business model, transforming its operations to cater for a changing market and a changing world. It is now the global leading producer of recycled aluminium having recognised that the market potential is substantial and the benefits to the environment is significant. The business’ leadership team has driven Novelis to proactively become the largest recycler of aluminium in the world, with 55% of its raw material coming from more than 50 billion used beverage cans that are recycled annually. Novelis has invested heavily in new recycling technology and new capacity in Germany, Brazil and Korea. The move aims to support the transformation to a circular economy whereby previously extracted material is used over and over again. In 2015, the business launched Novelis evercycle™, the industry’s first certified, high-recycled- content aluminium product portfolio for speciality applications. By the end of 2015, the business had achieved a run rate of 55% recycled content with clear intentions to develop this further. We see this not only as an example of efficient waste reduction strategies but a showcase of how the business is transforming itself to become a leader in a sustainable world. Novelis’ strategic partnership with Jaguar Land Rover on closing the loop on automotive manufacturing processes and end of life vehicles, as well as developing a new alloy that can withstand a greater proportion of recycled content is a great example of where sustainable business can be both financially and environmentally rewarding. Future Proofing