Alcoa Partners with RMI to Accelerate Aluminum Decarbonization

Partnership and collaboration are at the heart of industrial decarbonization efforts. They can help to overcome some of the challenges associated with greenhouse gas (GHG) emissions reductions, such as the need for significant capital investments and breakthrough technologies. This is why Alcoa seeks to capitalize on convergence by collaborating with institutions like the Rocky Mountain Institute (RMI), a non-profit organization that works to accelerate the clean energy transition and global economic decarbonization.

In Q3 2022, Alcoa joined RMI Horizon Zero’s working group, which developed product-specific carbon accounting guidance for high-emitting industry sectors, allowing organizations to close the climate ambition-action gap by making informed decisions about the products they buy and sell. A transparent GHG accounting method is also crucial to allow customers to track improvements in a product’s carbon footprint and assess the potential impact of various decarbonization technologies.

As part of its commitment to this initiative, Alcoa contributes technical inputs and participates in the sectoral pilots for RMI’s Aluminum Emissions Reporting Guidance to confirm its representativeness. Being able to define sector-specific climate metrics for products like aluminum allows producers to demonstrate their decarbonization efforts and allows corporate buyers to create a clear demand signal for low carbon. The official launch of this valuable resource is anticipated by the conclusion of 2023.

"We are grateful for Alcoa's contribution to our work on aluminum product emission transparency,” said Josh Henretig, Managing Director at RMI. “Their organizational commitment to sustainability and decarbonization has been instrumental in advancing our efforts. Together, we are forging a path towards a greener and more sustainable future for the aluminum industry."

Another RMI initiative that Alcoa is actively participating in is the development of an Aluminum Climate-Aligned Finance Framework. RMI’s Center for Climate-Aligned Finance, alongside leading global financial institutions and in consultation with industry and civil society, is creating a framework that will help lenders measure and disclose their lending-related portfolio emissions for the aluminum sector. The framework aims to catalyze more effective collaboration between lenders and their clients on their transition to a low-carbon future. It will launch in December 2023, at the 28th Conference of the Parties to the UN Framework Convention on Climate Change.

“We believe that a consistent approach to emissions accounting is an important key to accelerate industrial decarbonization efforts,” said Molly Beerman, Executive Vice President and Chief Financial Officer. “We appreciate the work that RMI is doing to facilitate collaboration between lenders and clients as they work to address challenges on the path to a low-carbon future.”