Klaus Kleinfeld

Chairman and Chief Executive Officer

 

Chairman and CEO Statement

 

At Alcoa, we are committed to living our values regardless of the challenges we face. By staying true to that commitment, we made significant strides toward our strategic sustainability targets in 2012 despite significant global economic volatility.

The reduction of emissions in our processes remains a top priority, and we continued to make progress in this area in 2012. We achieved another 1% improvement in the intensity of our greenhouse gas emissions and a reduction of more than 900,000 metric tons in our absolute emissions. For every metric ton of aluminum we now make, we emit 23% less greenhouse gases than we did in 2005.

Another important aspect of sustainability is the safety and wellness of our employees. Since starting to deploy human performance training throughout our company in 2011, we have seen workplace injuries decline. We also reduced our days away, restricted, and transferred (DART) rate by 36% and our total recordable incident rate (TRIR) by 14% compared to 2011.

Alcoa continues to be an industry leader in workplace safety. Our DART and TRIR rates were, respectively, 79% and 76% lower than the most recent U.S. manufacturing average.

Despite our progress, we suffered two tragic employee fatalities in 2012. In the wake of those incidents, we bolstered our ongoing efforts to eliminate all workplace fatalities. These efforts included continuing our focus on employee education and training to identify error traps and unsafe situations. Our fatality prevention efforts will remain a major focus for us in 2013.

Our approach to safety extends to all of our facilities worldwide. The tapping of first metal at the Ma’aden-Alcoa joint venture included more than 60 million hours worked in 2012 without a workplace fatality. This fully integrated aluminum complex in Saudi Arabia will be the world’s lowest-cost producer of primary aluminum, alumina, and aluminum products, such as can and automotive sheet. Being responsible for the construction of this complex means that, together with our partners, we are 100% vested in the safety of everyone who works on this project.

We had a special focus on improving the health and well-being of our employees in 2012 through our new Global Wellness Initiative. This program created the tools and support infrastructure to help our U.S. employees address their most important issues—physical activity, nutrition, tobacco usage, and well-being. Our U.S. facilities hosted more than 500 wellness programs, and one-third of the employees participated. Thanks to a tobacco-cessation campaign late in the year, 395 employees committed to kick a tobacco habit. We are working to build on this early success as we expand the program globally in 2013.


In recognition of our efforts to be transparent in our actions and to make measurable improvement, we were again named to the Dow Jones Sustainability Indexes and recognized as the global aluminum industry sector leader in sustainability. We also topped the Basic Materials category and placed second overall in the ranking of 360 U.S. companies in the Maplecroft Climate Innovation Leaders Indexes. In early 2013, we were named the most admired metals company in the world for the second year in a row in Fortune magazine’s annual ranking on corporate reputation. Alcoa has been a member of the “Most Admired” list since the magazine began its annual ranking 30 years ago.

Although 2012 was a year of significant achievements, we also fell short. Employee fatalities were the most troubling, of course. We also failed to reduce the amount of waste we send to landfills, and we are still devising reuse or recycle options for bauxite residue—a significant waste stream from our alumina refinery operations.

The truest validation of our sustainability as a company comes from our stakeholders and society at large. Our miracle metal, aluminum, is an essential material for a sustainable global system that many societies and businesses are striving toward. We continue to show that the value of aluminum—its light weight, non-corrosive nature, and infinite recyclability, to name a few traits—significantly outweighs the impacts of its production.  Alcoans are working hard every day to eliminate and mitigate those impacts.

Alcoa’s sustainability report demonstrates our commitment to the full transparency of our sustainability goals. I invite you to carefully review our report and to provide your feedback via email or a brief survey.

Klaus Kleinfed

 

Klaus Kleinfeld 
Chairman and Chief Executive Officer