Chairman and Chief Executive Officer
Chairman & CEO Statement
In 2014, Alcoa accelerated our transformation to build our multi-material value-add businesses and create a globally competitive commodity business. Besides driving profitable growth, the transformation is advancing sustainability for Alcoa and our customers. Alcoa’s businesses are delivering innovative products and solutions that create a more energy-efficient world and meet ever-increasing demands for lightweighting in automotive and aerospace.
We put aluminum-intensive vehicles on the fast track as the first high-volume model replaced its steel body with military-grade aluminum. Ford’s new F-150 truck, which at 700 pounds lighter than its predecessor, offers customers significant fuel economy, greater payload, improved handling, and greater ruggedness. To meet future demand for auto sheet, Alcoa recently unveiled our revolutionary MicromillTM technology. Automotive parts made with Micromill material will be twice as formable and at least 30% lighter than parts made from high-strength steel, allowing the industry to push the boundaries of new, innovative vehicle designs for lighter, safer, and more stylish cars.
In the aerospace market, Alcoa continued delivering game-changing solutions as we have done since the first flight at Kitty Hawk. Today, our innovations provide sustainable solutions to our aerospace customers, playing a vital role in improving the fuel efficiency of new aircraft fleets by 20% and reducing engine fuel burn by 15%. Our agreement with Pratt & Whitney for state-of-the-art jet engine components combines Alcoa’s proprietary alloys and unique manufacturing processes with Pratt & Whitney’s technology. Together, we’ve cracked the code on forging an aluminum fan blade that is lighter and enables better fuel efficiency. To meet growing demand for hotter-running and more fuel-efficient engines, in 2014 we acquired Firth Rixson, building out our leading position in jet engine innovation.
While we continue to bring enormous value to our customers and society through lightweighting, we are equally determined to continue reducing the impact on the environment of our own operations. We took decisive action in 2014 to improve the profitability of our commodity business and move down the aluminum and alumina cost curves. The results also go beyond Alcoa’s bottom line. Through energy-efficiency improvements, as well as closures and curtailments of less-efficient facilities, we reduced our absolute emissions by 3 million metric tons in 2014. Over the last two years, we’ve achieved a 13% reduction in absolute emissions. For every metric ton of aluminum we make, we emit 25.9% less greenhouse gases than we did in 2005.
While doing our part to protect the environment, we also continue to invest in the safety, health, and well-being of our employees and their families. Our world-class safety culture consistently delivers safety performance in the top tier of the mining and manufacturing industries. While our 59,000 Alcoans and the contractors who supported us worked fatality-free for 811 consecutive days, tragically, a contractor was fatally injured in 2014 while working on a project at our Point Comfort operations in Texas. We used that stark reminder to reemphasize to our employees that fatal and serious injury prevention must remain a daily focus. With respect to other outcome-based safety indicators, we improved our days away, restricted, and transfer (DART) rate 8.6% from 2013.
Because of our pursuit of innovative, sustainable solutions and the measurable improvement in the environmental impacts of our operations, Alcoa was named to the most highly recognized and longest-standing global sustainability indexes, the Dow Jones Sustainability Indexes (DJSI). Once again, the DJSI recognized our Company as the Aluminum Industry Leader on the Dow Jones World Index.
We intend to continue that record for many years to come. Thanks to the acceleration of our transformation, Alcoa innovation is not only driving profitable growth, but also helping solve more and more of our world’s biggest sustainability challenges. Our innovations in lightweight metals are increasingly being used by our customers and their consumers to create a more sustainable global society. Our vision is “Advancing each generation,” and this report represents our commitment to continue advancing a sustainable world for generations to come.
I invite you to carefully review our report and provide your feedback via email or a brief survey.
Chairman and Chief Executive Officer