Alcoa and Environmental Sustainability - An Outstanding Opportunity - OECD
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Alcoa and Environmental Sustainability
An Outstanding Opportunity
-0-Worldwide Operating Locations
% of Revenue
61% 23%
10%
6%
• 131,000 Alcoans
• 350 Operating Locations
• 43 Countries
• $23.5 Billion in Revenue - 1 -What is Alcoa today?
Our Vision
Alcoa aspires to be the best company in the world
Our Goals
Live our Values Top-Quintile ROC Strong Balance Sheet
Who are we? Who are our customers? What are our competencies?
We are a global premium Our customers are generally • Deploying our Value &
manufacturing company large, global corporations that Business System globally
with a diversified portfolio demand the very best in • Investing for the long-term
in base metals & mining, quality, service and price. (bauxite, energy)
engineered customer • Operating large, complex
solutions, and packaging The top 100 customers assets in an integrated
generate 50% of total revenues system on a global scale
Our businesses fall in four and 60% of profits • Developing aluminum
segments product & process
• Upstream Our principal markets are technology with deep
• Aluminum conversion •Aerospace understanding of end-use
• Engineered products •Automotive applications
• Packaging •Commercial Transportation
•Packaging
-2-Environmental management within Alcoa
At Alcoa, our vision is to be the best company in the
world--in the eyes of our customers, suppliers,
shareholders, communities and people.
Corporate Vision
↘EHS Value 2020 EHS Strategy:
↘EHS Policy - Zero Emissions
↘EHS Principles - Zero Wastes
↘2020 Strategy - Zero Discharge
↘Regulatory Compliance - Zero Incidents
↘Standards & Procedures/Documentation - Zero Non-Compliance
↘Protocols - Support Growth
↘Self-Assessment (ASAT) - Sustainability-no legacies
- Enhance the Reputation
↘Audits/Verification
- Lead the Way
↘Balanced Scorecard Goals
↘Measure Results
↘Education & Training
↘Benchmark – inside and out
↘Real-time incident reporting
↘Incident Investigation
Alcoa Worldwide EHS Organization ↘Communication
↘Recognition/Consequences
Bill O’Rourke
Vice President EHS and Audit
↘Organize for Results
External
Advisory
Environment Health Safety Communication Audit Boards
Dr. Pat Atkins Bob James Rick Williams Wade Hughes Haig Sakoian OEHAC
Director Director Director Director Director
Environmental Health Safety Communication EHS Audit
ETAB
Stewardship
Dr. Mark Bob Slack Global EHS Awards Judges
K. Martchek Cullen Manager
Sustainability Med. Director
Yale
Corporate
Safety
Audit Staff
Yale University External Verification:
University Technical
Dr. J. Wesdock
The WEC Award
Corporate Support: Jorge Fontanez; Shamsa Khan; Sandy Stephens The Ron Brown Award
North America Europe Asia Latin America Australia
The Dow Jones Sustainability Index
Rob Bear Juerg Furrer Malcolm Wright Mauricio Born David Willet
The Domini Index
Global EHS Lead Team
EHS EHS EHS EHS Services & EHS IT
Innovest – Green Company Designation
Sustainability
Compliance
Tom Meek
Legal
Jeff Lettrich/Kevin Carter
Technology
Dr. John Smith
Remediation
Rob Bear
Systems
Diane Klocko
Anita Roper Named one of three most sustainable
companies in the world at Davos in 2005
Business Unit EHS Professionals
Corporate Certification to ISO14001 in 2003
-3-Living our Values
Environmental Excellence
Long-term
business success
Good Governance
Community
Framework (2001)
Social Responsibility EH&S Training WEC Gold Action and Bravo
Medal
2020 Framework
Greening
Aust. Partnership 1st and 2nd Cost challenges
UN Global
Suriname
500 Award Fortune – Best
Community Safety data Human Rights
Brazil Metals Co.
Medical Clinic Bates - 70 systems Position
1st Greenfield (over 10 yrs)
Year Mining
Plant with
Dividends to Alcoa Plan Portland Smelter Sustainability
Env. Policy sustainability
shareholders Foundation in the Park ABS Reporting
in mind Vision and
Values
1888 1939 1952 1967 1980 1988 1997 2004 2020
-4-Alcoa Sustainability Model
Environmental Governance
Excellence
ABS Values
People – • Integrity
linchpin the system
Stakeholders
• Environment Health &
Safety
Employees
• Customer
Products –
make to use • Excellence Communities
Principles
• People
• Profitability
Shareholders
Processes –
• Accountability Customers
eliminate waste
Suppliers
Economic Partners
Social Performance
…
ResponsibilitySignificant Environmental Issues
Regulatory expectations
Customer expectations
Expectations of the Public, including the communities
where we operate
Expectations of investors and other stakeholders
-6-A Few Examples
Global Climate Change
Energy constraints
The growing water crisis
The growing concerns about bio-accumulative materials
Materials Use and Recycling
Land Use concerns
Communication and reporting issues (internal and external)
Sustainability
-7-Sustainable Development is the basis for the
Alcoa Environmental Strategy . . .
Respect for our neighbors and respect for the generations that will follow
Elimination of All Waste
Products Designed for
Reputation the Environment
Environment
as a Core Value
Integration of Environment
with Manufacturing
Incident-Free Workplace
-8-Elimination of Wastes
60% REDUCTION 50% REDUCTION
SO2 TODAY 287,000 tons VOCs TODAY 10,910 tons
2010 108,700 tons 2008 5,480 tons
75% with inert anodes
30% REDUCTION 80% REDUCTION
NOx TODAY 56,300 tons MERCURY TODAY 2,990 kgs
2007 47,770 tons 2008 620 kgs
-9-Alcoa’s Greenhouse Gas Reduction Targets
25% REDUCTION
1990 48.056 M tons
TODAY 37.222 M tons
2010 (projected) 35.950 M tons
With
inert
50% REDUCTION
anode 2010 (projected) 23.191 M tons
- 10 -Plans to reduce wastes to landfills by 50% by 2007
. . . on the way to elimination of all land filled wastes by 2015
Reduction of process water use by 60% by 2008
. . . on the way to achieving zero process water discharge
and “near zero” storm water discharge by 2015
- 11 -Products Designed for the Environment
- Increased commitments for recycling
. . . aluminum, plastics, other materials
- Encourage customer and supplier interactions on
Environmental issues and product design/recycling
- Follow AFL an Alcoa business that is initiating an
Environmental Product Stewardship program
- Make increased use of Life Cycle Analysis, for Alcoa and
our customers.
- 12 -Reputation
All BUs will use Alcoa’s New Community Framework
for improved management of Environmental issues
We are improving working relationships with regulators
and partnerships with non-government organizations
By 2004, BU and Corporate Sustainability Reports
will use the Global Reporting Initiative Guidelines
- 13 -By 2006 Alcoa will achieve annual energy
and Environmental cost reductions of
$100 Million
… and much more is possible
- 14 -Alcoa Businesses Are Doing It!
Primary Metals
90% sulfur dioxide (SO2) reduction
AFL
initiating Product Stewardship
North American Extrusions programs
initiating Energy Alert programs
Alcoa Europe
95% volatile organic
Alcoa Brazil compound reduction
100% certification to
ISO 14001
AWA
10% reduction in Greenhouse
Gas emissions per tonne
- 15 -Some Current Environmental Goals
LANDFILLED WASTE
Goal: 50% reduction in landfill waste by % Reduction
2007. from 2000
Baseline:
1.0
Progress towards 2020 Vision 2001 37.0%
Metric Tonnes (millions)
0.8 2002 38.5%
% Reduction from Baseline 2003 44.7%
2004 57.0%
0.6
Water Use
80
-15.4%
70 0.4
60
50 0.2
VOC 40 Landfill Waste
30
-38.0% -57.0% 0.0
20
10
2000 2001 2002 2003 2004 2007
Baseline Target Actual
0
WATER USE
Goal: 60% reduction in process water use, and % Reduction
discharge by 2008. from 2000
SO2 Mercury 120 Baseline:
-5.8% -4.4%
100 2001 5.9%
Target 2002 4.5%
KL(millions)
80 2003 11.0%
% of Target
NOX 2004 15.4%
60
-21.9%
40
Blue represents targets for 2008-2010 for the parameters 20
Green represents the progress through 2004
0
2000 2001 2002 2003 2004 2008
Baseline Target Actual2020 Environmental Vision
CURRENT TARGETS Environmental CHALLENGE
For Alcoa on the road to
From base year 2000: Sustainability
–LONG TERM GOALS
• 60% reduction S02 by 2010 60%
–90%reduction
reductionbyby2010
2015
• 50% reduction volatile organic compounds by 2008 –95%reduction
60% reductionbtby 2015
2010
• 30% reduction nitrogen oxides by 2007 –85%reduction
50% reductionbyby2010
2015
• 80% reduction mercury emissions by 2008 –95%reduction
90% reductionbyby2010
2010
• 50% reduction landfill waste by 2007 –100%
75% reduction
reduction by by 2015
2010
• 60% reduction in process water use, and discharge, –Zero
70% water discharge
reduction by 2010 by 2015,
including storm water
by 2008
From base year 1990: 10% less material use by 2010
• 25% reduction in greenhouse gas emissions by 2010. Utilize 25% recycled aluminum
• (50% Assuming success with inert anode technology) in fabricated products by 2010
Implement effective environmental management systems, such as Reduce energy intensity by 10%
by 2010
ISO 14001, at all locations by 2005
Zero environmental non-compliance incidents by 2005
$100 million annual environmental and energy cost savings by 2006
through elimination of wastes and design for sustainability
Environmental targets and community relationship objectives
incorporated into all Alcoa businesses' annual plans.What Else Is Needed?
Engage all Alcoa employees and use their
creativity and innovation
Abandon the “business-as-usual” approach . . .
end-of-pipe solutions don’t solve problems or save money
-- in fact, they do the opposite
Use the full power of the Alcoa Business System
New and creative interaction with communities,
regulators and non-government organizations
Alcoa must be the best company in each community
before Alcoa can be the best company in the world.
- 18 -What can be learned from Alcoa?
We set difficult goals…..
and then we meet them…..
It does not happen easily…it requires training, communication,
resources, commitment, creativity and dedication.
…..and the engagement of 131,000 people
- 19 -My Policy Recommendations
Aim for transparency in all policy options
Articulate goals very clearly
Provide options for achieving the goals
Benchmark the “best” and most effective
Be very selective in what you want to accomplish (the goals
you select and the milestones that you use to monitor progress
will drive behaviors and shape attitudes, support and
acceptance)
Put metrics in place that are understood by all stakeholders
Monitor and report openly and frequently
Engage the entire community, make as many as possible feel
that they are a part of the program
Celebrate all progress
- 20 -- 21 -
You can also read
