May 13, 2011

Alcoa Beats Carbon Reduction Target

Alcoa has released its 2010 Sustainability Report showing a significant reduction in the company’s carbon footprint, exceeding its 2020 carbon reduction goal. The report examines the global business’ progress on the sustainability of its products, resources and operations.

“At Alcoa, we take a long-term approach to sustainability,” said Kevin Anton, Alcoa’s Chief Sustainability Officer.

“In 2010, we took our efforts to a new level with the creation of the chief sustainability officer position and a renewed focus on the development of a comprehensive sustainability strategy. We implemented a new set of strategic sustainability targets to drive progress in our businesses to 2020 and beyond, and developed a scorecard to align our sustainability targets across each of our businesses.”

Significant achievements in 2010 include:

Climate Change: A reduction in the greenhouse gas footprint of Alcoa’s global operations. The Global Primary Products group (of which Alcoa of Australia is a part) lowered its CO2 intensity by 7% over 2009 levels and achieved a 22% reduction over 2005 levels, exceeding the company’s 2020 goal of a 20% reduction. These reductions are the result of strategic efforts including quickly sharing best practices to reduce process emissions and driving energy efficiency at every location.

Products: In 2010, Alcoa received silver-level Cradle to Cradle® Certification for primary aluminium. Alcoa is the first aluminium company to receive such independent certification from McDonough Braungart Design Chemistry (MBDC), assuring customers that the company is continuing to improve the sustainability of its metal, from initial production, through use, and then recycling. The certification was earned through process improvements, including reducing energy use, deploying efficient water management systems, and recycling.

Safety: Alcoa ended 2010 with 82% of locations reporting zero lost workdays and 48% with no recordable injuries—a significant improvement over 2009 performance.

Cash Sustainability: Alcoa exceeded every one of the Company’s seven Cash Sustainability Program targets, ending the year with more than US $1.5 billion in cash on hand. In addition, its debt-to-capital dropped to 34.9%—380 basis points lower than 2009.

Community & Stakeholder Engagement: Alcoa locations are engaged in community programs that are characterised by regular dialogue with a broad group of stakeholders to understand their issues and work together on appropriate resolutions. In addition, Alcoa and Alcoa Foundation contributed more than US $36.8 million to the communities where the Company operates around the world.

Employee Engagement: Employee engagement scores, as measured in our Global Voices survey, improved worldwide for the third consecutive year. In addition, 49% of Alcoa employees participated in community service projects during our Worldwide Month of Service in October 2010.

Ethics: Alcoa was again recognised globally as among the most ethical companies, placing first in the Basic Resources category in the Covalence Ethical Rankings. Alcoa has been rated number one in this category since the ranking began in 2005. Across all industries and companies, the Company placed 15th out of the 581 companies tracked for the 2010 ranking, which was released in early 2011.

“In 2010, we were encouraged by the significant progress that we made. In 2011, we will continue to work on better coordinating the different aspects of sustainability that already exist across the Company and with stakeholders,” said Mr Anton.

The full report is available online at www.alcoa.com/sustainability.

- ENDS -

Read the Alcoa of Australia specific section within the global report here.

Since 1990, Alcoa’s Australian smelters in Victoria (Point Henry and Portland) have achieved a direct greenhouse gas emissions reduction of 66% per metric tonne of aluminium produced. In the same time period, the Western Australian alumina refineries (Kwinana, Pinjarrra and Wagerup) achieved a reduction of more than 23% per metric tonne of alumina produced, while the rolled products plants (Point Henry and Yennora in NSW) realised a reduction of 14% per metric tonne of processed aluminium.

Media contact: Sarah Tempest 0404 800 417 sarah.tempest@alcoa.com.au