Kevin McKnight

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

 

Chief Sustainability Officer Statement

 

Our sustainability story in 2015 was one of significant achievement overshadowed by our failure to send five people home safely.

 

Four employees and one contractor were fatality injured during the year, the most since 2008. We know we can operate fatality-free, as we demonstrated between 2012 and 2014 when we had zero fatalities for 811 consecutive days.

 

As Alcoa prepares to launch two strong companies in the second half of 2016, the safety of our employees and contractors remains a top priority. We are committed to maintaining a fatality-free workplace moving forward.

 

Protecting the environment is another area of significant importance to Alcoa. In 2015, we progressed against our goal of a lower carbon future by:

  • Achieving our 2020 greenhouse gas intensity target five years ahead of plan by reducing our absolute greenhouse gas emissions by 5.5 million metric tons in 2015 and improving our greenhouse gas emission intensity by 31.3% from our 2005 baseline.
  • Obtaining, for the first time, limited assurance on our Scope 3 greenhouse gas emissions. This led to Alcoa being named to the Standard and Poor’s 500 Climate Disclosure Leadership Index.
  • Quantifying the carbon avoidance achieved through the use of more than 85% of our products.
  • Signing the American Business Act on Climate Pledge, one of the first companies to do so.
  • As part of that pledge, committing to reduce our absolute U.S. greenhouse gas emissions by 50% versus a 2005 baseline and also demonstrate a net reduction of greenhouse gas emissions from the use of our products equal to three times the emissions created by their production—all by 2025.
     

We will meet the latter goal through our inherently sustainable products, which offer lighter weight, save energy, and, subsequently, reduce greenhouse gas emissions. In 2015, for example, we introduced a lightweight, all-aluminum commercial truck frame still under development that will reduce truck weight by more than 40% compared to steel frames for increased fuel efficiency.

 

As the pages of this report show, we advanced against many of our sustainability targets during the year and expanded others related to our products’ contribution to decarbonizing the world.

 

During 2015, we improved our bauxite residue storage efficiency and rehabilitation rate. We finalized biodiversity action plans for three of our locations, and we minimized our global mining footprint. We further embedded sustainability into our supply chain, and we increased diversity in our professional and executive ranks. All of these achievements led to Alcoa being included in the Dow Jones Sustainability North America Index for the 14th consecutive time and again named the aluminum industry leader on the Dow Jones World Index.

 

When Alcoa launches two new companies in the second half of 2016, both will continue using our innovation, creativity, and passion to deliver net-positive benefits to the environment, communities where we operate, our employees, and our shareholders.

 

 

Kevin McKnight

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