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Sustainability in Brazil
By living our values and building partnerships with various sectors of the community, we are working to bring economic and social development to underprivileged areas in Brazil while preserving the environment for the benefit of all stakeholders.
This is particularly challenging in Brazil, where we are involved in all aspects of the aluminum industry—hydroelectric power, mining, refining, smelting, and fabrication. In addition, we are in the midst of investing a record US$1.6 billion in growth projects in the country, including bauxite mining in the Amazonian region of Juruti.
Our commitment to sustainability in Brazil is materialized in a plethora of norms, individual and team actions, and local, national, and global policies. Our Brazilian operations have achieved reductions in environmental incident rates, water consumption, gaseous emissions, and energy consumption. At the same time, they have increased their wastewater reuse, aluminum recycling, and socioeconomic benefits to their local communities.
In December 2007, the board of directors and regional president of our Brazilian operations established the Brazilian Sustainability Steering Committee. The committee's main objectives are to improve sustainability governance with the involvement and visibility of top management; increase accountability of business units and locations; create opportunities for leaders to share best practices while increasing their knowledge on sustainability; and accelerate the process of integrating sustainability into the organization.
In Juruti, we have been instrumental in the formation of the Council for Sustainable Juruti. The council, which was launched in early 2008, includes other corporations, government agencies, and non-governmental organizations. Its efforts, which include funding and monitoring, will be focused on the following eight areas: environment; health; education; security; infrastructure; culture and tourism; economy and jobs; and rural development.
In January 2008, researchers from Getúlio Vargas Foundation began mapping Juruti's sustainability indicators to help monitor the short- and long-term effects of the bauxite mining project.
We have also joined a group of Brazilian companies that work with the Global Leadership Network methodology to identify the challenges of sustainability. Using this research and working with our employees, customers, suppliers, government representatives, and non-governmental organizations, we have identified the following key sustainability issues for our Brazilian operations to address:
- Access to and efficient use of energy;
- Local and regional development;
- Work relations;
- People management;
- Environmental management of waste and effluents; and
- Preservation of natural resources and biodiversity.
The importance of these issues and the future steps we have identified to address each may evolve depending on market situations and our strategies.
Access to and Efficient Use of Energy
Energy, together with bauxite, is the most important input for the production of aluminum. In the near future, the Brazilian energy sector may have higher energy demand than supply. Our challenge is to secure sources of energy while simultaneously reducing our effects on the environment and society.
For example, there is a need to reduce the use of fossil fuels due to global climate change. However, hydroelectric power, which is considered a clean source of energy, impacts the environment and community in other ways.
Currently, we are a partner in two hydroelectric plants under development: Estreito, positioned between the states of Tocantins and Maranhão; and Serra do Falcão, located between the states of Goiás and Minas Gerais. Within the consortium for the Estreito plant, we have established a social agreement with stakeholders and government authorities at three levels to promote the sustainable development of the 12 municipalities affected by the project.
Other actions currently being undertaken to reduce our energy footprint include using, on an experimental basis, renewable fuel sources like biodiesel in our fleet of industrial vehicles and in some supplier vehicles at our plants. We have also invested in research and development efforts for new materials and processes that require less energy consumption.
Looking to the future, our Brazilian operations will:
- Contribute to the achievement of Alcoa's global target of reducing by 10% the consumption of energy per ton of aluminum produced by 2010 from base year 2000;
- Increase by 70% our rate of self-generated power—currently at a 40% level—by 2011-2012;
- Proceed with experiences and partnerships aimed at promoting local sustainable development; and
- Incorporate more renewable power alternatives into our power matrix.
Local and Regional Development
The implementation of projects and operations tends to generate expectations in the local communities, and these need to be identified and addressed, especially in those regions with a low human development index.
In the case of our mining project in Juruti, several national and global non-governmental organizations are overseeing our extensive sustainability initiatives as we seek to develop the best mining project in the world.
We have also developed a regional development plan in Barra Grande, where Alcoa is a stakeholder in a hydroelectric plant between the states of Santa Catarina and Rio Grande do Sul. The plan was formed in partnership with Ibens (Brazilian Institute for the Education toward Sustainable Business) as well as public agencies, business entities, and social and community institutions.
We have intensified conversations regarding public interest in those communities in which we operate. We have prioritized hiring local labor for the Juruti project (37% from Juruti and 82% from the state of Pará) and the expansion of the Alumar alumina refinery in São Luís (21% from surrounding communities and 91% from the state of Maranhão). We also have developed a program to prioritize and foster local purchasing and use of local suppliers.
We have begun the modernization of the Poços de Caldas aluminum plant, improving its environmental performance so we can maintain operations in the region for a few more decades. And, we have invested more than US$5.3 million in support of communities in Brazil.
Our future steps in local and regional development include the following:
- Strengthen the implementation of a strategy to engage stakeholders in all the regions in Brazil in which we operate;
- Complete the development of new and expansion projects, generating more opportunities and wealth in the regions;
- Focus social investments on the largest local needs, identifying their impact upon improvement of the human development index or support of the United Nations' Millennium Development Goals—among other relevant initiatives identified in the engagement process;
- Support the creation of a sustainable development fund and a community council in Juruti; and
- Foster the education and qualification of Brazilian talent, supporting, whenever possible, academic institutions.
Work Relations Strategy
We believe the work environment should promote quality of life and greater inclusion, and it should also foster the implementation of Alcoa's values.
Some of our efforts in this area include the launching of an even more competitive strategy for total compensation and an improvement in our benefits package. We have implemented programs addressing quality of life, established specific communication channels with our employees—some of which assure their anonymity—and conducted annual employee satisfaction surveys. In addition, we launched the Rede do Bem Alcoa website to give visibility to the volunteer actions of our employees and promote an interchange of information among them.
For our expansion projects, we have implemented an alcohol and drug prevention program in addition to our stringent safety programs. At both our Alumar refinery expansion project and the Juruti project, we have exceeded 10 million man hours worked without a lost workday incident.
We will continue our improvement efforts in this area .We will also continue our investments to identify and control risks within our operations.
People Management
We believe that the people management and development model must always be in line with the company's strategy of seeking to tap the human capital potential. This model should promote continuous improvement in the work environment to allow employees to work at peak performance, increased qualification of employees, and effectiveness in company leadership.
We have implemented the HRenovation Project, which has given employees greater autonomy and self-management capability through the implementation of an intranet site, a service center, and electronic kiosks in all of our Brazilian locations. We also initiated new programs focused specifically on the attraction, development, and retention of talent, and we continued to implement leadership development programs.
Our next steps in people management are continuing to consolidate implementation of the HRenovation Project and assuring the concept of sustainability is part of all Alcoa training sessions, especially for leadership positions.
Environmental Management of Waste and Effluents
An efficient and effective system of environmental management is of instrumental importance for the environment. Such a system also has influence on the health and safety of our employees and the communities that surround our operations. In addition, our waste, effluent, and emissions management capability is an important component of our operating license from both a legal and social standpoint.
We are currently striving toward a 7% reduction in the consumption of water in our operations from the base year 2005, as well as a reduction in the total volume of effluents through a zero discharge project. We are identifying opportunities to reduce greenhouse gases, and we are forming local and international partnerships to strengthen policies and reduction plans to control the emission of these gases.
In the area of solid waste, we are researching ways to extend the useful life of refractory linings in partnership with Universidade Federal de São Carlos.
Our future efforts will focus on the following:
- Maintain the current level of waste and emissions in a competitive manner, even as our production expands;
- Obtain greater reuse by other industries of the co-products generated in our operations;
- Contribute to the achievement of the global targets established in Alcoa's 2020 Strategic Framework for Sustainability;
- Implement the modernization of the aluminum plant in Poços de Caldas;
- Obtain carbon credits from projects for the reduction of emissions; and
- Achieve zero discharge of effluents.
Preservation of Natural Resources and Biodiversity
The global economy depends on natural resources, which have been showing signs of depletion. Companies that reduce the environmental impact of their operations, products, and services can contribute to the natural capital, improve their operating conditions, and add value to adjacent communities.
Protection of the long-term operating licenses in the regions in which we are present depends on a business strategy that preserves and recovers natural habitats and critical environmental resources.
Mining activities are considered temporary use of the land but can cause long-term effects to natural resources and biodiversity if not properly managed. The implementation of hydroelectric projects can also generate such impacts.
We have undertaken a variety of efforts to minimize these impacts. We maintain more than 1,800 hectares (4,500 acres) of land in two environmental parks, which annually receive thousands of visitors and where environmental education is carried out. We have acquired an area to create a third environmental park in Tubarão, and we have invested resources from the Alumar expansion compensation into the Itapiracó Park and Rangedor Ecological Reserve in São Luís. We also have established an agreement with Conservation International in Brazil to support the Amazon National Park (Parque Nacional da Amazonia), and we support the Center for Environmental Research and Training (CEPEMA) at the University of São Paulo in Cubatão.
Future steps in this area include the following:
- Stimulate streamlining and efficiency in the use of compensation resources by the government agencies;
- Continue to implement a strategy for the assessment of, reduction in, and compensation for biodiversity impacts that result from our operations; and
- Continue to support the conservation program being carried out in the Amazon in partnership with Conservation International in Brazil.
For detailed information about Alcoa's sustainability performance in Brazil, please read the 2006/2007 Latin America sustainability report.
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Case Studies
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Employees & Sustainability
"Sustainability is being concerned about the quality of life in society and the unconditional preservation of nature. It's making all this necessary within the possibilities we have. For example, here in Alcoa, if the company grows, all of society will benefit through its sustainability actions."
Rosana de Oliveira
Extrusion Assistant, Alcoa Alumínio—Utinga
"Staying in the market, achieving our objectives, winning new customers because we are an example of good service and quality, having a zero incident rate, and not forgetting the environment and the community. That's sustainability."
Wagner Fortunato Morais
Extrusion Operator, Alcoa Alumínio—Tubarão
"As far as I'm concerned, sustainability has become a question of survival; in other words, the survival of companies, people, and the planet. The constant search for sustainability is nothing more than providing the best for people and for the environment, both now and for the indefinite future."
Edcarlo da Conceicao
Maintenance Coordinator, Alcoa Alumínio—Tubarão
"Sustainability is promoting financial success, taking into consideration political, social, and cultural aspects while aiming to establish an equilibrium between economic development and the environment."
Luciana Bolan Frigo
Engineer, Alcoa Alumínio—Tubarão
"Sustainability is everything Alcoa does for the preservation of the environment, such as the rehabilitation of mined areas and the search for alternatives for waste and garbage. It also means contributing to the community and providing benefits for its workers."
José Ailton de Carvalho
Potroom Operator, Alcoa Alumínio—Poços de Caldas
"For the company, sustainability is preserving the environment, guaranteeing the workers' health and safety, contributing to the community, and modernizing to be more competitive in the market."
Argemiro Inácio Jr.
Vehicle Maintenance Mechanic, Alcoa Alumínio—Poços de Caldas
"Assuring sustainability is making the company grow ethically and in harmony with its workers, the environment, the community, costs, and safety."
Marcelo Nogueira Félix
Refinery Operator, Alcoa Alumínio—Poços de Caldas
"Sustainability is the company producing product in an ecologically correct way and worrying about all steps in the process, from the acquisition of raw materials to the finished product arriving at the customer's facility. All stakeholders—shareholders, employees, suppliers, the community, etc.—have to be concerned about making rational and correct use of natural resources, working in an efficient way, eliminating waste, being concerned with the management of residue, and thinking about conserving the environment, biodiversity, and the quality of people's lives."
Aristeu Gimenes Filho
Smelting Process Technician, Alcoa Alumínio—Poços de Caldas
"For me, sustainability is a wide-ranging term and consists mainly of managing the external impact caused by our operation, allowing companies to grow harmoniously, and reinforcing their partnerships with the communities where they operate, including those with customers, suppliers, public bodies in general, the press, etc. It's not just a term that's currently in fashion and that will fall into disuse. Everybody has to have their sustainable actions and sustainable life's project, establish their action targets, and think about sustainability so it's possible to act collectively."
Juliana Pereira Dussarrat Brito
Junior Administrative Analyst, Alcoa Alumínio—Poços de Caldas
"Sustainability is when the present generation's concern with progress and development is such that it doesn't hinder the progress of future generations. For example, take my work, which is disposing of the residue produced in the smelting process. This is a very big triumph for us, because the residue is no longer dealt with as something that's sent to a landfill site. Alcoa is concerned about this issue and has invested heavily in it so that the residue generated in the sector is now being processed and sold. It has already given the company a financial return, and the waste has become a product—it's no longer being put into landfill sites. That's sustainability."
Milton Vasques Filho
Electrodes and Services Operator (Smelting), Alcoa Alumínio—Poços de Caldas
"Sustainability has three basic parts—economic, social, and environment—and these impact all the other processes. In our area, the major concern is with the environment. We work with atmospheric emission levels that are well below what is required by the Secretariat of the Environment and by Alcoa."
Luis Carlos Belém
Refinery Operator, Alumar—São Luís
Sustainability is in everything. I believe that sustainability is the responsibility we owe to the reality that's all around us, whether that's social or environmental. It must be in every area of our lives—at home, at work, and in our day-to-day activities."
Walbelice Santos
Port Operator, Alumar—São Luís
"Everything we do always causes an impact. Sustainability is promoting economic growth and development, trying to cause the least possible impact, preserving the environment, and maintaining or increasing the quality of people's lives."
José Jacinto Tavares Amorim
Smelting Maintenance Foreman, Alumar—São Luís
"Sustainability is what Alcoa does: taking care of the environment, its production, and the safety of its employees; having concern for the people who live around the plant; and taking care to preserve the mangrove swamp. I try and pass on to my children what I've learned at Alcoa, showing that everybody has responsibilities and that they can work in the company where I work today because it's a company that's worth it. It's a sustainable company."
Leandra Maria de Lima Silva
Production Assistant, Alcoa Alumínio—Itapissuma
"Sustainability is transferring to others what we learn in life. I've learned a lot in the years I've been with Alcoa, like doing my work in the best way possible, looking after the environment, exercising and carrying out my responsibilities as a citizen in the community, and taking the values I've learned from my experience here in the company into my life outside it."
André Henrique de Araújo Ferreira
Packaging Operator, Alcoa Alumínio—Itapissuma
"Sustainability is the capacity to provide the best for people and for the environment in the present. In other words, it's about satisfying the needs of a generation but in a way that guarantees it will not affect the capacity of future generations to satisfy their own needs. I entirely agree with the philosophy followed by Alcoa, which is governed by values that take into consideration the effects of its activities on the environment where it operates and on its employees."
Luiz Gonzaga de Macedo
Chemical Technician, Alcoa Alumínio—Itapissuma
"I understand that sustainability goes far beyond matters that involve the environment or the relationship with the community, which are what we're always hearing about. Sustainability is the basis for all the processes, business, and relationships, whether they are professional or in our personal lives. It's what we must bear in mind in our attitudes and the stance we take. Regarding everything with which we interact, we must ask ourselves if it's sustainable; from the simplest things to the most complex. In this way, we'll be guaranteeing not only life for future generations, but one of growth today, with quality of life both at work and outside."
Caroline Miwa
Environment, Health, and Safety Superintendent, Alcoa Alumínio—Itapissuma
Stakeholders
24º Batalhão de Caçadores—Exercito Brasileiro
24th Infantry Battalion—Brazilian Army
ABAL (Brazilian Aluminum Council)
Academia Maranhense de Letras
AFEAL (Association of Aluminum Window Frame Producers)
AMAVIDA
ANVISA
Assembléia Legislativa do Estado do Maranhão
Associação Comercial do Maranhão
Associação Comunitária de Cabral Miranda
Associação comunitária de Itapera
Associação Comunitária de Muruaí
Associação Comunitária do Rios dos Cachorros
Associação Comunitária Taim
Associação de moradores da Estiva
Associação de moradores do Inhaúma
Associação dos Moradores de Coqueiro
Associação dos moradores de Tauá-mirim
Associação dos Pequenos Produtores de Mangue Seco
Associação dos Pequenos Produtores Rurais de Pedrinhas
Associação para o Desenvolvimento Estratégico de São Luis—UPAON AÇU
Associação paz e Amor de Pedrinhas
Association for the Strategic Development of São Luis
Banc of Brazil
Banco of Amazônia—Basa
Batalhão de Polícia Ambiental
Biodiversitas (Belo Horizonte)
Brazilain Institute of Geography and Statistics—Maranhão Office
Brazilian Bar Association - Maranhão Chapter
Brazilian Service of Support for Micro and Small Enterprises
Cabral Miranda Community Association
Câmara Municipal de São Luís
Capitania dos Portos
CEFET—Escola Técnica Federal do Maranhão
Ceft Bam—Centro de Estudos e Formação de Trabalhadores Rurais do Baixo Amazonas
CEMPRE (Business for Recycling)
Centro Comunitário do Rio Grande
CIPOMA—Cia Independente de Policiamento de Meio Ambiente (Independent Environment Policing Company)
Civil Construction Employers Union
CODEMA—Conselho Municipal de Defesa e Conservação do Meio Ambiente (Municipal Environmental Defense and Conservation Council)
Codema—Conselho Municipal de Desenvolvimento Ambiental—Poços de Caldas (Municipal Environmental Development Council)
Comitê da Bacia Hidrográfica do Rio Tubarão (The River Tubarão Catchment Area Committee)
Comunitary associations and movements of Juruti Region
Coqueiros Residents Association
Corpo de Bombeiros—Maranhão
CPRH—Cia Pernambucana de Recursos Hídricos (Pernambucano Water Resources Company)
CPRH—Cia Pernambucana de Recursos Hídricos (Pernambucano Water Resources Company)
CRA - Conselho Regional de Administração
CREA - Conselho Regional de Engenharia e Arquitetura
CRM - Conselho regional de Medicina
Delegacia da Receita Federal
Delegacia Regional do Trabalho—DRT
Detran
DNIT
DNPM – Departamento Nacional da Produção Mineral
DPA—Diretoria de Preservação Ambiental – Poços de Caldas (Department of Environmental Preservation)
EMAP—Empresa Maranhense de Administração Portuária
Emater—Empreendimentos de Assistência Técnica e Extensão Rural
Environmental Police Battalion
Estiva Residents Association
Ethos Institute
FAPEMA—Fundação de Amparo a Pesquisa e ao Desenvolvimento Cientifico e Tecnológico do Maranhão
FEAM—Fundação Estadual do Meio Ambiente – Minas Gerais (State Environmental Foundation)
Federação das Indústrias do Estado do Maranhão
Federal Highway Police
Federal Revenue Office
Federal University of Maranhão
FGV—Gvces (Getulio Vargas Foundation Center of Sustainability Studies)
FUNBIO (Brazilian Biodiversity Fund)
Fundação da Criança e do Adolescente (FUNAC)
Fundação Jardim Botânico de Poços de Caldas (Poços de Caldas Botanical Garden Foundation)
FUNDAÇÃO MAFRE
Fundação Municipal da Criança e Assistência Social (FUMCAS)
Fundação Sousândrade
GEIA Institute
IBAMA (Brazilian Institute of the Environment and Natural Renewable Resources)
IBGE—Instituto Brasileiro de Geografia e Estatística—Unidade Maranhão
ICE—Instituto de Cidadania Empresarial do Maranhão.
IEB (Brazilian International Institute of Education)
Imparcial newspaper
Industrial Social Service
Inhaúma Residents Association
Instituto GEIA
Instituto Observatório Social
ISER (Religion Studies Institute)
Itapera Community Association
Iterpa—Pará Land Institute
Jornal Imparcial
Jornal O Estado do Maranhão
Jornal Pequeno
Juruti Municipal Administration
Juruti Region Unions
Mangue Seco Small Rural Producers Association
Maranhão Academy of Arts
Maranhão Commercial Association
Maranhão Federal Technical School
Maranhão Fire Brigade
Maranhão Foundation for the Support of Research and Scientific and Technological Development
Maranhão Institute of Corporate Citizenship
Maranhão Metal Workers Union
Maranhão Nature Conservation Association
Maranhão Police Department
Maranhão Port Administration Company
Maranhão State Federation of Industry
Maranhão State Legislative Assembly
Maranhão State University
Ministério Púbico Estadual
Municipal Foundation for Children and Social Assistance
Muruaí Community Association
National Department of Mineral Production
National Department of Transport Infrastructure
National Health Surveillance Agency
O Estado do Maranhão newspaper
OAB – Seção Maranhão
Pedrinhas Peace and Love Association
Pedrinhas Small Rural Producers Association
Pequeno newspaper
Polícia Civil (Police Force of Juruti)
Polícia Militar do Maranhão
Policia Rodoviária Federal
Pontifícia Universidade Católica de Poços de Caldas—Campus de Poços de Caldas (Pontifical Catholic University)
Port Authority
Prefeitura da Cidade do Recife (Recife Municipal City Administration)
Prefeitura de Igarassu (Igarassu Municipal Administration)
Prefeitura de São Luis
Prefeitura Municipal de Itapissuma (Itapissuma Municipal Administration)
Regional Council for Administration
Regional Council for Engineering and Architecture
Regional Labor Office
Regional Medical Council
Rio dos Cachorros Community Association
Rio Grande Community Association
São Luis City Council
São Luis Municipal Administration
São Luis Rural Workers Union
Saúde & Alegria (Health and Happiness)
SEBRAE
Secretaria de Educação do Município de Tubarão (Tubarão Department of Education)
SECTMA—Secretaria de Ciência e Tecnologia e Meio Ambiente (Department of Science, Technology and the Environment)
SENAI National Industrial Learning Service
SESI—Serviço Social da Indústria
Sindicato dos Metalúrgicos do Maranhão—Sindimetal
Sindicato dos Trabalhadores Rurais de São Luís
Sinduscon—Sindicato da Construção Civil
SNE—Sociedade Nordestina de Ecologia (Northeastern Ecology Society)
Social Observatory Institute
Sociedade de Pesquisa em Vida Selvagem e Educação Ambiental—SPVS (Wildlife and Environmental Education Research Society)
Sociedade dos Amigos da Biblioteca Pública—Benedito Leite
Sociedade dos Amigos da Marinha—SOAMAR
Society of Friends of the Benedito Leite Public Library
Society of Friends of the Navy
Sousândrade Foundation
SPVS—Sociedade Protetora da Vida Selvagem—Paraná (Wildlife Protection Society)
State Attorney General’s Office
State Transportation Department
Taim Community Association
Tauá-mirim Residents Association
The Child and Adolescent Foundation
TV Broadcasting Station—‘Eco Maranhão’
TV Difusora—Eco Maranhão
Unifenas—Universidade de Alfenas (Alfenas University)
Universidade do Sul de Santa Catarina—Unisul (University of South Santa Catarina)
Universidade Estadual do Maranhão (UEMA)
Universidade Federal de Pernambuco (Federal University of Pernambuco)
Universidade Federal do Maranhão (UFMA)
USAB—União das Sociedades Amigos de Bairros—Poços de Caldas (Union of Neighborhood Friends’ Societies)
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