Strategic Sustainability Targets

Initially developed in 2000 by an internal worldwide team that analyzed environmental and social trends since 1990 and looked 20 years into the future, Alcoa’s 2020 Strategic Framework for Sustainability has since evolved into a set of strategic targets for our businesses and locations to integrate all aspects of sustainability into their day-to-day operations.

The initial short- and long-term targets were agreed upon with the business leaders and technical experts throughout the company. The targets were very aggressive and designed to stretch the organization to think differently to drive optimum performance, as opposed to conservative objectives that we would be fairly certain we would meet.

We met or exceeded several of these very aggressive targets, but we also realized that we would fall short of others, especially those regarding resource efficiency. As such, our Global Sustainability Steering Team reviewed the existing environment, health, and safety (EHS) targets in 2009 and developed a new set to drive progress in our businesses to 2020 and, for some areas, to 2030. These new EHS targets were approved by our executive and business-unit leadership in early 2010.

Resources	Targets	Progress Achieved Through Year-End 2010
	Achieve a five-year average mine land disturbance/mine rehabilitation ratio of 0.75:1.0 by 2020; 1:1 by 2030.	1.15:1 go
	From a 2005 baseline, 20% reduction in bauxite residue land requirements per million metric tons of alumina produced by 2020; 40% by 2030.	3% go
	Rehabilitate 30% of total residue storage area by 2020; 40% by 2030.	18% go
	Recycle or reuse 15% of residue generated by 2020; 30% by 2030.	0% go
	Develop biodiversity plans for key locations by 2015.	Two pilot plans initiated go

Operations	Targets	Progress Achieved Through Year-End 2010
	From a 2005 baseline, 20% reduction in total (direct and indirect) carbon dioxide equivalent (CO2e) intensity in Global Primary Products (refining and smelting) by 2020; 30% by 2030.	22% go
	From a 2005 baseline, 10% reduction in the energy intensity of Global Primary Products by 2020; 15% by 2030.	3% go
	From a 2005 baseline, 20% reduction in the energy intensity of all other businesses by 2020; 30% by 2030.	6% go
	From a 2005 baseline, 10% reduction in average freshwater-use intensity in each business by 2020; 25% by 2030.	19% go
	Increase the used beverage can recycling rate in the United States to 75% by 2015 and the global rate to 90% by 2030.	United States: 57% Global: 69% (based on 2009 data) go
	From a 2005 baseline, recycle or reuse 75% of landfilled waste by 2020 and 100% by 2030.	29% go
	From a 2005 baseline, 80% reduction in mercury emission intensity by 2020; 90% by 2030.	Negative 16% go
	Zero fatalities.	Four fatalities in 2010 go
	Zero lost workday rate.	0.12 lost workday incident rate go
	A total recordable injury rate of 0.68 by 2020 and 0.19 by 2030.	1.35 total recordable incident rate go
	By 2020, achieve a sustained Alcoa Self Assessment Tool rating of 100% Good or better in the following: Fatality Prevention Confined Space Entry Mobile Equipment Safety Fall Prevention Lock/Tag/Verify Molten Metal Safety Combustible Dust/Particulate Safety Electrical Safety Contractor Safety Machine Safeguarding Combustion Safety	Fatality Prevention: 91% Confined Space Entry: 91% Mobile Equipment Safety: 94% Fall Prevention: 91% Lock/Tag/Verify: 94% Molten Metal Safety: 69% Combustible Dust/Particulate Safety: 79% Electrical Safety: 73% Contractor Safety: 88% Machine Safeguarding: 53% Combustion Safety: 88%
	Increase the closure rate for targeted fatality risks to 99% by 2020 and 100% by 2030.	93.8% go
	Institutionalize the use of human performance tools and processes across the business units/regions to reduce the deviation potential to equal to or less than 2% (98% compliance rate) by 2020 and equal to or less than 1% (99% compliance rate) by 2030.	Baseline for the metric is under development.
	From a 2010 baseline, 50% reduction in the proportion of employees required to use respiratory protection by 2020.	Baseline data and a targeted business unit strategy were initiated in 2010 and will be finalized in 2011. go
	From a 2011 baseline, 20% reduction in the proportion of employees required to use hearing protection by 2020.	Baseline data and a targeted business unit strategy were initiated in 2011.
	From a 2010 baseline, each location will have achieved a total average annual rate of new hearing shifts of less than 1% by 2020.	Locations initiated assessment and deployment of data-generation tools in 2010 to determine baseline data. go
	All significant ergonomic risks will have been identified, and at least 50% controlled, by 2020; significant risks not controlled will have action plans with costs and timelines for control.	Risk identification was initiated in 2010 and will be completed in 2011. go
	By 2020, each location will have an active and informed process to address questions about health issues arising from the community and other external stakeholders.	An ideal-state framework and metrics were initiated in 2010 and will be finalized in 2011. go
	By 2020, achieve a 100% favorable response rate to the following statements on Alcoa’s annual employee survey: I work in an environment that promotes safety. A culture of health exists within Alcoa We do not compromise EHS values for the sake of production or profit.	I work in an environment that promotes safety: 82% A culture of health exists within Alcoa: Statement to be added to the survey in 2011. We do not compromise EHS values for the sake of production or profit: 64%
	By 2010, achieve the following representation at Alcoa’s management level: Global women: 18% U.S. minority: 15%	Global women: 17% U.S. minority: 13% go
	100% of salaried employees receive annual performance feedback.	90% go
	By 2020, 100% of manufacturing locations will have implemented the Alcoa Community Framework.	95% go
	40% of employees within a business unit or region volunteer in the community through ACTION, Bravo!, or Month of Service.	ACTION: 16% Bravo!: 14% Month of Service: 49% go
	Debt-to-total capitalization consistently between 30% and 35%.	34.9% go
	No material weaknesses in the design or operation of internal controls over financial reporting, which are reasonably likely to adversely affect Alcoa’s ability to record, process, summarize, and report financial information.	Alcoa continued to meet the goal of no material weaknesses in the design or operation of internal controls over financial reporting. go
	At least 15% of Compliance Line closed calls result in a minimum of one process improvement.	22% go

In 2010, we revised a number of goals. We adjusted the 2020 goal for the bauxite storage rehabilitation rate upward to 30% from the original 20%. We clarified that the carbon dioxide equivalent goal was for our Global Primary Products business. We specified our used beverage can recycling rate goal to be the United States. We revised our waste goal to focus on landfilled waste. Finally, we changed the ending year for all of the categories in the safety Alcoa Self Assessment Tool ratings to be 2020 rather than 2030 for some. In late 2011, we rephrased the chemical exposure goal to simplify its meaning (particularly to non-technical stakeholders) and added a parallel noise exposure goal.