Transcript Alcoa`s response to climate change

Alcoa’s Response to Climate Change
Lee Califf
Director, Government Affairs
Alcoa at a glance
Leading aluminum products company
 Primary aluminum and alumina
 Flat-rolled aluminum and hard-alloy extrusions
Active in all major segments of the industry:
 Technology
▪ Smelting
 Mining
▪ Fabricating
 Refining
▪ Recycling
Products serving the aerospace, automotive, commercial
transportation, packaging, building and construction, and industrial
markets.
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Financial performance - 2008
Total Revenue: $26.9 Billion
2008 3rd Party Revenue by Segment
2008 ATOI by Segment
Packaging &
1% Consumer
Engineered
Solutions
Flat Rolled
36%
23%
Alumina
33%
Flat Rolled
Engineered
Solutions
1%
21%
Primary Metals
30%
Primary Metals
2%
Alumina
11%
Packaging &
Consumer
42%
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Global organization
Other
Americas,
6%
2008 sales
by region
Pacific, 15%
United
States, 53%
34 Countries
87,000 Employees
Europe, 26%
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Background for Alcoa’s Response
A values-driven company
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Integrity
Environment, Health and Safety
Customer
Excellence
People
Profitability
Accountability
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Sustainability goals
From base year 2000:
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60% reduction sulfur dioxide by 2010
60% reduction volatile organic compounds by 2010
50% reduction nitrogen oxides by 2010
90% reduction mercury emissions by 2010
75% reduction landfill waste by 2010
Reduce energy intensity 10% by 2010
60% reduction in process water use and discharge by 2009
From base year 1990:
 25% reduction in greenhouse gas emissions by 2010 (33%
reduction achieved to date)
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United States Climate Action Partnership
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Alcoa a founding member
US Corporations and NGOs
Slow, stop and reverse climate change
Blueprint for Action: reduce GHG by 80% over 2005 levels
by 2050
 Founding principles
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Account for the global dimensions of climate change
Recognize the importance of technology
Be environmentally effective
Create economic opportunity and advantage
Be fair to sectors disproportionately impacted
Recognize and encourage early action
 “I am convinced that we can build a global plan of action
on climate change in ways that create more economic
opportunities than risks.”
Alain Belda
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Strategies for Reducing GHG Emissions
Sustainable aluminum production
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Sustainable energy production
Energy conservation
Emissions management
Sustainable repowering
Sustainable capacity growth
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Leader in sustainable energy
 More than a century of hydropower expertise
 new technology improving yield of existing projects
– LIHI certification
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Cogeneration at Wagerup and Pinjarra
Sustainable biofuels for plant equipment
Green Power – renewable energy contracts
Geothermal
Calderwood dam, Tennessee
 Under consideration for proposed second smelter
in Iceland
Pinjarra cogeneration plant
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Grow US recycling to 75%
 Alcoa recycled 14 billion
cans in 2007
 50% capacity expansion
announced 12/07 at
Tennessee
 $22 million investment in
new crusher and
delacquering technology
 Expected completion 2009
 Alcoa goal: raise US
recycling rate from 52% to
75% by 2015
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Carbon capture
 Waste CO2 from neighboring
facility used to reduce
alkalinity of bauxite residue
 Captures 70,000 tonnes/year
of CO2
 Potential 300,000 tonnes/year
in Australia
 Researching technology for
extracting CO2 from Alcoa’s
flue gases
Carbon capture plant, Kwinana, Western Australia
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Results
Progress - greenhouse gas reductions
0%
10%
Alcoa primary aluminum
production capacity more than
doubled from 1.9 mmt/y to 4.2
mmt/y during this period.
15%
20%
25%
30%
35%
2008
2007
2006
2005
2004
2003
2002
2001
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1990
40%
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Recognition
Sustainability
 Most Sustainable Corporation / World Economic Forum in Davos
 Dow Jones Sustainability Index
Climate Change
 Founding Reporter of the Climate Registry
 Top Green Company – BusinessWeek and the Climate Group
 Low Carbon Pioneer – CNBC European Business
 Best in Class – Carbon Disclosure Project
 Leader in climate change and governance – CERES
 Carbon Disclosure Leadership Index
2008
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Alcoa can’t wait for tomorrow!