May 11, 2011
Alcoa Beats Carbon Reduction Target
Results Released in 2010 Sustainability Report
NEW YORK--(BUSINESS WIRE)--Alcoa (NYSE:AA) announced today that it has significantly reduced its carbon footprint, exceeding its 2020 goal, and was the first company to receive silver-level Cradle to Cradle® Certification for primary aluminum. The results were released with the publication of Alcoa’s 2010 Sustainability Report, which examines the Company’s 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,” Anton said.
Significant achievements in the report include:
- Climate Change: Alcoa reduced the greenhouse gas footprint of the Company’s operations. Alcoa Global Primary Products lowered its CO2 intensity by 7 percent over 2009 levels and achieved a 22 percent reduction over 2005 levels, exceeding our 2020 goal of a 20 percent reduction. These reductions are the result of strategic efforts to reposition operations to take advantage of clean hydroelectric power; quickly share best practices to reduce process emissions; and drive energy efficiency at every location.
- Products: In 2010, Alcoa received silver-level Cradle to Cradle® Certification for primary aluminum. Alcoa is the first aluminum 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 percent of locations reporting zero lost workdays and 48 percent 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, our 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 characterized 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.
- Employee Engagement: Employee engagement scores as measured in our Global Voices survey improved worldwide for the third consecutive year. In addition, 49 percent of Alcoa employees participated in community service projects during our Worldwide Month of Service in October 2010.
- Ethics: Alcoa was again recognized globally as among the most ethical companies, placing first in the Basic Resources category in the Covalence Ethical Rankings. We have been rated number one in this category since the ranking began in 2005. Across all industries and companies, we 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 Anton.
The full report is available online at www.alcoa.com/sustainability.
Alcoa is the world’s leading producer of primary and fabricated aluminum, as well as the world’s largest miner of bauxite and refiner of alumina. In addition to inventing the modern-day aluminum industry, Alcoa innovation has been behind major milestones in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets over the past 120 years. Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as well as Alcoa® wheels, fastening systems, precision and investment castings, and building systems in addition to its expertise in other light metals such as titanium and nickel-based super alloys. Sustainability is an integral part of Alcoa’s operating practices and the product design and engineering it provides to customers. Alcoa has been a member of the Dow Jones Sustainability Index for nine consecutive years and approximately 75 percent of all of the aluminum ever produced since 1888 is still in active use today. Alcoa employs approximately 59,000 people in 31 countries across the world. More information can be found at www.alcoa.com.