Kevin McKnight

Chief Sustainability Officer and Vice President of Environment, Health, and Safety

 

Chief Sustainability Officer Statement


Sustainability is a core Value at Alcoa. No decision is made or action taken without a careful consideration of the economic, environmental, and social impacts that may result.

 

Sustainability is integrated into our core business strategy and guided by a set of short- and long-term targets against which we measure, and publicly report upon, our performance. These targets address our most critical sustainability challenges and provide all employees with a clear vision of what sustainability looks like for Alcoa.

 

Our sustainability is impacted not only by what we do as a company, but also by the world around us. Internationally recognized standards—International Labour Organization conventions, United Nations Global Compact, Extractive Industry Transparency Initiative Standard, and more—have significant influence on our sustainability strategy and efforts. Increased government, non-governmental organization, and consumer influence in areas like energy use and greenhouse gas (GHG) emissions are creating new opportunities for aluminum in many markets, including transportation and building and construction. Conversely, our operations are under increased scrutiny or regulation for our own energy use, emissions, waste, and more. All of these external factors, as well as input from our key stakeholders, influence our material sustainability issues.

 

In 2013, we made significant progress in some of our material sustainability issues but fell short in others:

  • We reduced our absolute GHG emissions by 3.1 million metric tons, or 7%, from 2012. We also improved our GHG efficiency per ton of aluminum produced by 25.5% against our 2005 baseline, putting us well on our way to achieving our 2020 target of a 30% reduction. go
  • We achieved the following improvements in the energy intensity of our three business groups against their respective baselines—15.0% for Global Rolled Products (2005), 10.3% for Engineered Products and Solutions (2010), and 3.1% for Global Primary Products (2005). go   
  • We had zero employee and contractor fatalities, and we achieved year-over-year declines in all of our major safety rates, including a 30% decrease in the days away, restricted, and transfer (DART) rate. go 
  • Our economic performance continued to be impacted by falling aluminum prices globally, but we made progress against our financial objectives. Our Engineered Products and Solutions business group realized an increase in revenue of US$208 million and generated US$356 million in productivity gains, while our Global Rolled Products (GRP) business group generated US$268 million in productivity gains. Our Global Primary Products business group continued to focus on the cost curves, moving down three percentage points on the alumina curve to the 27th percentile, and four percentage points on the aluminum curve to the 43rd percentile.  go 
  • We had mixed results in reducing our environmental footprint. Many of our non-GHG emissions, such as mercury and sulfur dioxide, declined, but we achieved limited progress against our aggressive targets to reuse bauxite residue and reduce our landfilled waste.  go 
  • Around the world, 97% of our locations used the Alcoa Community Framework to engage with their stakeholders. We also continued building stronger and more valuable collaborations with all stakeholders. go
  • Three key locations drafted biodiversity action plans that will serve as examples for our other locations. go   

 

We will continue to advance against our sustainability targets in 2014. Our employees have proved over the past two decades that they are capable of doing great things in the area of sustainability, and I have every confidence they will rise to the challenge.

 

Kevin McKnight

Chief Sustainability Officer and Vice President of Environment, Health, and Safety