November 07, 2013
Alcoa is one of the model companies in EXAME’s Sustainability Guide 2013 for the seventh time
The company is the winner in the segment in which it operates and in the category, ‘Relationship with Suppliers’
São Paulo, November 7, 2013 - Alcoa, the world’s leading producer of primary and transformed aluminum, was considered the most sustainable company in the sector in which it operates and in the category, ‘Relationship with Suppliers’ by Exame’s Sustainability Guide 2013, an annual publication from Editora Abril. Considered to be one of the most relevant surveys of its type in Brazil, the Guide highlights the sustainable actions of companies. The announcement was made during a ceremony held yesterday, November 6, in the Maria Luisa and Oscar Americano Foundation in São Paulo (SP).
“We’re very proud to have won first place in our sector and particularly to be part of such a select group of companies for the seventh time. This result proves that even with the enormous challenges the aluminum industry has faced we keep on persevering and treading our competitive path in a sustainable way”, was the assessment of Franklin L. Feder, CEO of Alcoa Latin America & the Caribbean.
Alcoa’s “Sustainable Procurement” program, winner in the ‘Relationship with Suppliers’ category, seeks to identify the sustainability practices of suppliers by way of questionnaires, measures and visits. Alcoa is committed to its value chain and considers social and environmental criteria when assessing, qualifying and hiring its trading partners. In 2012, 76 suppliers were checked and 28 of them were visited personally by the company and audited, including also companies that provide services for suppliers, which are often located in the interior of states in the north and northeast of Brazil.
To avoid hiring companies where there is a risk of human rights violations, the company consults the Labor Ministry list beforehand, applies specific questionnaires on the topic and checks documents that provide evidence of a company’s observance of human rights. Alcoa is also a signatory to the “Right Direction” program that seeks to assess whether suppliers have initiatives that provide guidance for truckers regarding sexual exploitation. Violating contractual clauses may lead to the need for adjustment (with deadlines and guidance coming from Alcoa) or in the company being disqualified as a supplier. In 2012, no suppliers were recorded as not complying with human rights; the company has 6000 active suppliers and approximately 1100 contracts with significant suppliers, which have human rights clauses.
For João Batista Menezes, assistant director of Health, Safety, Environment & Sustainability (HSE&S) for Latin America and the Caribbean, in addition to Alcoa strengthening the relationship with its suppliers, it also helps them operate in a more sustainable way. “We develop initiatives for helping our local suppliers improve in some locations, like the Supplier Development Program in Maranhão and Pará, in partnership with the Industry Federations, and the Links Program in Pernambuco".
In the 2009, 2010 and 2011 editions, Alcoa’s recognition in the Exame Sustainability Guide was motivated by its innovation in the form of dialogue with the community in Juruti, in the west of Pará, where the company has been mining bauxite for three years. In 2010 Alcoa was named the “Sustainable Company of the Year”, the highlight in this year being the setting up of its bauxite mining project in Juruti (PA). Last year, the magazine defined the central theme as being climate change, with a particular emphasis on the reduction in greenhouse gases. Alcoa presented the case study involving the substitution of fuel oil by natural gas at its unit in Poços de Caldas (MG).
Exame’s special supplement is coordinated by the Center for Sustainability Studies of the Fundação Getúlio Vargas, which assesses the strategies and practices of companies in the areas of corporate, economic, financial and social governance. As from 2013, the performance of participating companies is being analyzed relative to their peers in the same economic sector. Their performance in sustainability governance, human rights, relationship with the community, relationship with suppliers, water management, biodiversity management and waste management is also being emphasized.
The classification also covers business practices, transparency and corporate governance. After checking the questionnaires and the reports of recent initiatives relating to the sustainability strategies of the companies, a decision-making council, chosen by Exame magazine, selected the group of companies with the best performance in the questionnaire’s four dimensions and also in general.
For further information about Exame’s Sustainability Guide, visit http://exame.abril.com.br/revista-exame/guia-de-sustentabilidade/inscricoes/2013/
Alcoa Alumínio S.A. is a subsidiary of Alcoa Inc. which is the world’s leading producer of primary aluminum and fabricated aluminum, as well as the world’s largest miner of bauxite and refiner of alumina. The company employs approximately 61,000 people in 31 countries and for the twelfth consecutive year the company is a member of the Dow Jones Sustainability Index. Alcoa is present in Latin America and the Caribbean where it has operations in Brazil, Jamaica and Suriname and about 7,000 employees. This year, the company completes 125 years of operations in the world.
In Brazil the company operates in the whole of the aluminum production chain, from bauxite mining to the production of transformed products. Alcoa has six production units and three offices in the states of Maranhão, Minas Gerais, Pará, Pernambuco, Santa Catarina, São Paulo and the Federal District. The company also has shareholdings in four hydroelectric power stations: Machadinho and Barra Grande on the border of the states of Santa Catarina and Rio Grande do Sul; Serra do Facão in Goiás; and Estreito, between Maranhão and Tocantins. In 2012, Alcoa recorded revenues of R$ 2,6 billion in Brazil. In 2013 it was considered the most sustainable company in its industry and in the category of Relationship with Suppliers of the Guia EXAME de Sustentabilidade [EXAME Magazine’s Sustainability Guide]. In the same year, it was recognized for the twelfth time as one of the Best Companies to Work and for the second consecutive year the Best Company for Women to Work in Brazil, by the Great Place to Work Institute. Further information can be found at www.alcoa.com.br and follow @Alcoa on Twitter at twitter.com/AlcoaBrasil and follow Alcoa on Facebook at facebook.com/AlcoaBrasil.