Chairman and Chief Executive Officer
Chairman & CEO Statement
For more than 125 years, Alcoa has delivered the sustainable solutions the world needs, with innovations that set us apart as a true leader. We are growing in the areas the world needs most, meeting ever-increasing demands for lightweighting in automotive, commercial transportation, and aerospace, and for energy-efficient buildings.
Our founders partnered with inventors and business leaders, such as the Wright Brothers and Henry Ford, to launch the aviation and automotive industries. Since then, Alcoa has helped a wide variety of industries grow and prosper in sustainable ways:
- We’re making aerospace soar. From fasteners to alloys, jet engines to forgings, our innovations enable the aerospace industry to produce lighter, more fuel-efficient aircraft while improving safety, performance, and durability. Our new third-generation aluminum-lithium alloys lower the weight of a plane by up to 10% versus composite-intensive planes, while increasing fuel efficiency.
- Our aluminum puts the automotive industry in the fast lane. Consumer demand for fuel efficiency has led to a historic shift to aluminum-intensive vehicles. Every 10% reduction in vehicle weight results in a 7% fuel savings. The “aluminization” of the Ford F-150—which is 700 pounds lighter thanks to aluminum—is just the beginning. Aluminum in cars is expected to double by 2025, and our automotive triple-play expansions in Iowa, Tennessee, and Saudi Arabia are ready to meet the demand. While we’re reducing body mass and improving fuel and energy efficiency, aluminum is also improving safety, durability, and vehicle performance.
- We’ve reinvented the wheel. Alcoa invented the forged aluminum wheel, and we continue to innovate it. Today, it’s stronger, lighter, and more durable to increase payload and enhance fuel efficiency. The new Alcoa Ultra ONE™ wheel is 47% lighter than steel wheels of the same size, enabling fleets to carry more goods while meeting stringent federal emissions regulations.
- We’re building the future. Buildings are major consumers of energy and emitters of greenhouse gases. Alcoa’s aluminum components enhance energy efficiency, reduce carbon emission, and help achieve the growing demand for green building standards. Our Reynobond® aluminum composite material with EcoClean™ coating is the first coil-coated architectural panel that helps clean itself. OptiQ™ Ultra Thermal Windows provide enhanced thermal performance and help retain interior heat.
In addition to delivering innovations for customers in a wide range of industries, we’re reducing our environmental footprint and increasing efficiency. Alcoa has closed and curtailed less efficient facilities, reducing greenhouse gas emissions as a result. Curtailment of the smelter at Portovesme and closures at Baie Comeau and Massena East, as well as a changeover of the power grid at Mt. Holly to predominantly gas helped us achieve another 2.6% decrease in the intensity of our greenhouse gas emissions and reduce our absolute emissions by 3.1 million metric tons. For every metric ton of aluminum we make, we emit 25.5% less greenhouse gas than we did in 2005.
We continue to invest in the safety, health, and well-being of our employees and their families. In 2013, Alcoa introduced the “Stop for Safety” program, which encourages and recognizes employees for stopping work when they see a potentially unsafe situation on the job. By reinforcing that nothing is more valuable than human life, Alcoa has progressively improved its safety performance over the years. The year 2013 was our safest ever, with no employee or contractor fatalities and 30% fewer days away, restricted, and transfer (DART) incidents than the prior year’s historical low. Employee wellness improved, too. More than 20,000 Alcoans committed to a daily 10,000-step challenge and took 28 billion steps toward lasting lifestyle changes.
Alcoa is a values-based company. Our Values—Environment, Health and Safety, Innovation, Integrity, Excellence, and Respect—guide our work and help us accomplish our goals the right way. We continued to reaffirm those Values in 2013. We launched a global Integrity Champion Network of high-potential managers to further embed a culture of integrity and compliance at all levels of the company. As a result of an aggressive diversity initiative that increased the number of women in leadership roles, Alcoa was selected for the coveted 2013 Catalyst Award. Our dedication to being an employer of choice has earned the company accolades globally, including Best Company for Women in Brazil from the Great Place to Work® Institute.
Our commitment to sustainable innovation and measurable improvement once again earned Alcoa recognition by the Dow Jones Sustainability Indexes as the global aluminum industry sector sustainability leader. Alcoa’s innovations in lightweight metals, differentiated products, and solutions are essential for a sustainable global society. We are committed to continuing to build on our founders’ innovation heritage and sound business principles to achieve the Alcoa vision—“Advancing each generation”—for our shareholders, customers, employees, communities, and partners.
Alcoa’s sustainability report demonstrates our commitment to the full transparency of our sustainability efforts. I invite you to carefully review our report and provide your feedback via email or a brief survey.
Chairman and Chief Executive Officer