Alcoa -- Shared Value Creation

Shared Value Creation

One of the three pillars of our sustainability strategy is to create sustainable value for the communities where we operate.

A key component of this pillar is stimulating economic activity at the local and regional levels to enable improved quality of life for our employees and neighbors. We do this by providing stable, fair-paying jobs, procuring goods and services from local suppliers when possible, paying income and other taxes, and investing in community infrastructure and initiatives.

Our long-term goal for sustainable value creation is to reassess the implementation of key stakeholder engagement tools by 2020 and define shared value creation opportunities to be implemented by 2025 and 2030. We advanced this goal in 2019 through the following initiatives:

After deploying the enhanced Alcoa Stakeholder Engagement Framework in 2018, we decided to further our understanding of changing community expectations in our operations in Western Australia through a stakeholder perception survey.

I thank God for the opportunities that I and the Cabral Miranda community have always had with Alumar. The agriculture project contributed significantly to the families who live here. Alumar’s support of the Partnership Project, which generates employment and income, was a wonderful project for which the community is very grateful. We are eternally thankful for the doors that have been opened for us. Thank you, Alumar, for contributing to, and making a difference in, our communities!”

Antonio José da Rocha Paulo

We fully deployed a new Global Supplier Sustainability Program with a more robust due diligence process to reduce our supply chain risk. We also joined forces with other companies in Brazil to develop a supplier base to increase local procurement activities and contribute to economic development.
We published a new Human Rights Policy aligned with the United Nations Principles for Business and Human Rights and the International Labor Organization Core Conventions. We also performed human rights due diligence in Australia and Brazil and human rights risks assessments in Canada, Spain and Norway.

Sharing the value created by our presence helps communities thrive and earns us access to the resources we require to manufacture our products.

To continue creating shared value, we have reviewed our long-term goal for this area and have committed to implementing a comprehensive social management system across our locations by 2022. This will allow us to define metrics and measure progress in a range of socio-economic indicators that are relevant to interactions with our hosting communities.

Shared Value Creation

One of the three pillars of our sustainability strategy is to create sustainable value for the communities where we operate.

After deploying the enhanced Alcoa Stakeholder Engagement Framework in 2018, we decided to further our understanding of changing community expectations in our operations in Western Australia through a stakeholder perception survey.
We fully deployed a new Global Supplier Sustainability Program with a more robust due diligence process to reduce our supply chain risk. We also joined forces with other companies in Brazil to develop a supplier base to increase local procurement activities and contribute to economic development.
We published a new Human Rights Policy aligned with the United Nations Principles for Business and Human Rights and the International Labor Organization Core Conventions. We also performed human rights due diligence in Australia and Brazil and human rights risks assessments in Canada, Spain and Norway.

Sharing the value created by our presence helps communities thrive and earns us access to the resources we require to manufacture our products.

I thank God for the opportunities that I and the Cabral Miranda community have always had with Alumar. The agriculture project contributed significantly to the families who live here. Alumar’s support of the Partnership Project, which generates employment and income, was a wonderful project for which the community is very grateful. We are eternally thankful for the doors that have been opened for us. Thank you, Alumar, for contributing to, and making a difference in, our communities!”

Antonio José da Rocha Paulo

2019 Alcoa Economic Value

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2019 Alcoa Economic Value

	Australia	Europe	North America	South America	Total
Labor Costs (US$ billions)	0.5	0.3	0.7	0.1	1.6
Procurement Spend (US$ billions)	1.8	2.1	3.7	1.2	8.8
Income Taxes (US$ millions)	683.0	40.0	(8.1)	17.2	732.1

2019 Alcoa Foundation Investments

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2019 Alcoa Foundation Investments
Millions of U.S. dollars

	Cash (Millions of U.S. dollars)	Employee Volunteer Hours
Australia	1.2	2,539
Europe	1.0	1,176
North America	1.3	2,448
South America	0.6	3,836
Global Outreach	1.9	n/a
Total	6.0	9,999

Europe includes Africa.

Mineral Revenues

As a signatory to the Extractive Industries Transparency Initiative (EITI), we support enhancing the transparency of mineral revenues. We believe that engaging with and supporting governments that implement EITI’s principles helps to ensure mining revenues are used appropriately to address a host country’s and host community’s social needs.

During 2019, we had four active bauxite mining areas in Australia and Brazil and one active coal mine in the United States, which was fully curtailed in April 2019. We also have minority interests in bauxite mining activities in Brazil, Guinea and Saudi Arabia, but those non-controlled joint ventures are not included in this report. Learn more on the Alcoa section of the EITI website.

2019 Mining Royalties Paid
Millions of U.S. dollars

Country	Royalties
Australia	65.3
Brazil	9.9
United States	0

Learn more in the full 2019 Alcoa Sustainability Report.

Case Studies

People’s Market Connects Rural Producers with Customers

Every other Wednesday, a unique social partnership occurs at our Alumar operations in Brazil. Small, rural producers seeking a broader customer base connect with our employees, who want a more convenient way to shop for fresh food and other items.

Read more >

Portrait of a Good Neighbor

Whenever Kevin Carter can use his skills as an attorney to help people, he does not hesitate.

Read more >

Shared Value Creation

Shared Value Creation

2019 Alcoa Economic Value

2019 Alcoa Economic Value

2019 Alcoa Foundation Investments

2019 Alcoa Foundation Investments Millions of U.S. dollars

2019 Mining Royalties Paid Millions of U.S. dollars

Case Studies

People’s Market Connects Rural Producers with Customers

Portrait of a Good Neighbor

2019 Alcoa Foundation Investments
Millions of U.S. dollars

2019 Mining Royalties Paid
Millions of U.S. dollars