Alcoa -- Shared Value Creation

Shared Value Creation

Creating sustainable value for the communities where we operate is one of the three pillars of our sustainability strategy.

Our long-term goal for sustainable value creation is to implement a social management system at all locations by 2022, including the definition of performance metrics and long-term goals to be accomplished by 2025 and 2030. We advanced this goal in 2020 through the following initiatives:

We engaged external consultants with expertise in social management systems and Indigenous Peoples to help us benchmark the industry in these fields and support our efforts to develop our existing tools into a comprehensive system.
We conducted a gap analysis of our existing practices to the best-in-class social management systems and have defined a program to close identified gaps by the end of 2022. The gaps are mostly related to developing a more structured approach to social risk management and formalizing existing practices into standards.
We published an Indigenous Peoples Policy, committing to develop a formal engagement approach aligned with the ICMM Position Statement on Indigenous Peoples and Mining.
We performed human rights due diligence at two additional sites in Brazil—Juruti and Poços de Caldas—and human rights risks assessments in Iceland, Norway and Spain. We also provided training to the members of the Alcoa Human Rights Council on the international standards related to human rights and the specific risks in the mining and metals industry.

Shared Value Creation

Creating sustainable value for the communities where we operate is one of the three pillars of our sustainability strategy.

We engaged external consultants with expertise in social management systems and Indigenous Peoples to help us benchmark the industry in these fields and support our efforts to develop our existing tools into a comprehensive system.
We conducted a gap analysis of our existing practices to the best-in-class social management systems and have defined a program to close identified gaps by the end of 2022. The gaps are mostly related to developing a more structured approach to social risk management and formalizing existing practices into standards.
We published an Indigenous Peoples Policy, committing to develop a formal engagement approach aligned with the ICMM Position Statement on Indigenous Peoples and Mining.
We performed human rights due diligence at two additional sites in Brazil—Juruti and Poços de Caldas—and human rights risks assessments in Iceland, Norway and Spain. We also provided training to the members of the Alcoa Human Rights Council on the international standards related to human rights and the specific risks in the mining and metals industry.

The work we are doing to implement a social management system will define metrics and then measure progress in a range of socio-economic indicators relevant to our interactions with host communities.

2020 Alcoa Economic Value

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2020 Alcoa Economic Value

Labor costs include compensation and benefits for employee services rendered plus employee expenses for external training, transfer and relocation, expatriate costs, workers’ compensation, travel, recognition and rewards, medical expenses, meals, recruitment, transportation, education, work clothes and other employee-related expenses. Income tax amounts are net of income tax refunds received and exclude various other taxes.
	Australia	Europe	North America	South America	Total
Labor Costs (US$ billions)	0.5	0.2	0.7	0.1	1.5
Procurement Spend (US$ billions)	1.8	1.8	3.6	1.0	8.2
Income Taxes (US$ millions)	149.5	14.3	(6.8)	12.4	169.4

2020 Alcoa Foundation Investments

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2020 Alcoa Foundation Investments

Alcoa Foundation does not make in-kind contributions. Management overhead in 2020 was US$568,738. Decline in volunteer hours was due to the pandemic.
	Cash (Millions of U.S. dollars)	Employee Volunteer Hours
Australia	1.2	-
Europe and Africa	0.9	-
North America	2.4	320
South America	1.0	1,700
Global Outreach	0.1	-
Total	5.6	2,020

Learn more in the full 2020 Alcoa Sustainability Report.

Case Studies

Alcoa + Scitech = Improved Math Performance

In Western Australia (WA), the award-winning Alcoa Maths Enrichment Program is not only improving students’ achievements in mathematics, it is also expanding their career prospects.

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Facility Transformation Saves Jobs, Tax Revenues

Our concerted effort to expand the capabilities of our former Gum Springs waste treatment facility in the United States improved the location and kept it viable through its sale to a new owner, ensuring it continues contributing to the rural Arkansas region’s tax base.

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Training Program Closes Skill Gaps in Guinea

Funded by Alcoa Foundation, a unique training program in Guinea is helping graduates of vocational training centers close skill gaps in English and computer science to better integrate into the job market.

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Shared Value Creation

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Shared Value Creation

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2020 Alcoa Economic Value

2020 Alcoa Economic Value

2020 Alcoa Foundation Investments

2020 Alcoa Foundation Investments

Case Studies

Alcoa + Scitech = Improved Math Performance

Facility Transformation Saves Jobs, Tax Revenues

Training Program Closes Skill Gaps in Guinea