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1 Moving to Sustainable Development Pennsylvania Industries of the Future March 25, 2003.

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Presentation on theme: "1 Moving to Sustainable Development Pennsylvania Industries of the Future March 25, 2003."— Presentation transcript:

1 1 Moving to Sustainable Development Pennsylvania Industries of the Future March 25, 2003

2 2 Alcoa Lost Workday Incident Rate Injuries per 200,000 work hours

3 3 What is Sustainable Development? “Sustainable development seeks to meet the needs and aspirations of the present without compromising the ability to meet those of the future.” WCED (1987) Triple bottom line –Financial –Social –Environment

4 4 Financial “Far from requiring the cessation of economic growth, it recognizes that the problems of poverty and underdevelopment cannot be solved unless we have a new era of growth in which developing countries play a large role and reap large benefits.” WCED (1987)

5 5 Social Corporate Social Responsibility Connecting to stakeholders, not just shareholders Improving the wellness in your communities –Literacy –Hunger –Drought –Health Care –Education

6 6 Environment Reducing our environmental footprint –Zero discharge –Zero waste –Zero emissions Greening of our products –Packaging –Efficiency –Recycleability

7 7 The Business Case In the 2000 Sydney Olympics, the Olympic Committee came close to banning aluminum from the Olympics. It was viewed as a “dirty metal” Under pressure from Greenpeace, Coke agreed to switch to “clean” refrigeration units by the 2004 Olympic games in Athens Stakeholders can impact your “license to operate” Since 1997 The DJSI has out performed the DJGI

8 8 Environmental Costs of Operation Existing accounting systems do not allow easy identification of all environmental costs Most data suggests that your true environmental costs are 3X the direct costs that you can identify easily i.e. waste disposal, salary of environmental engineer, etc.





13 …you can't buy credibility… you have to be credible through actions and transparent, open communications, conveyed through media by independent advocates… Edelman

14 14 Aluminum A Sustainable Material

15 15 Specific Electricity Requirements Down 0 5 10 15 20 25 19502000 kWh/kg 20.5 13  Improved process control  Better cell design Increase electrical conversion efficiency

16 16 Aluminum - Emissions 60% reduction in Greenhouse gases between 1990 and 2000 Since 1980, fluoride emissions have been reduced nearly 80%

17 17 IAI member companies reduced specific PFC emissions by 60% from 4.0 to 1.6 t CO 2 -eq/t Al from 1990 to 2000 Worldwide specific PFC emissions reduction estimated at 50% for same period Incremental Improvements Specific Emissions of PFCs

18 18 Cathode Block Molten Aluminium Feeder Gases Anode Electrolyte  GHG from Primary Aluminium Production Two PFC (perfluorocarbon compounds - CF 4 and C 2 F 6 ) contribute about 48% of primary aluminium GHG emissions Anode Carbon 1.7 tonnes of CO 2 eq/t Al Electricity Input 14.4-15.6 MWh/t Al PFC Emissions 1.6 tonnes of CO 2 eq/t Al Greenhouse Gas Emissions “Inert Anode” - Primary Aluminium Production

19 19 Aluminum - Waste Significant technology breakthroughs in treating spent potlinings and using as aggregate materials Working hard to address re-use of bauxite residue

20 20 Aluminum - Packaging Aluminum foil and other packaging contributes to the conservation of food supply Packaging saves 10X more waste than it creates

21 21 Lightweighting Al Containers = Lower Life Cycle Can Burdens

22 22 Aluminum - Efficiency Aluminum has unique characteristic of being both lightweight and strong Every 1kg of aluminum replacing 2kg of steel in an automobile saves 20 kg of greenhouse gases over the life of the car If we save 1000 kg of greenhouse gases by using less gasoline, we also save –15800 MJ of crude oil resources –933 kg of water –1.8 kg ethylene equivalents of ozone forming hydrocarbons –2.1 kg SO2 equivalents

23 23

24 24 North American Light Vehicles Aluminum Content History and Forecast Calendar Year

25 25 Aluminum - Recycling Important to Capture the Value of Aluminium Recycling Recycling only needs 5% of the energy as primary production Recycling of aluminium saves 84 million tonnes of greenhouse gases every year Iron Magnet Fines Screen Eddy Current Nonferrous concentrate Residue ( Fluff ) Air Suction Shredder Energy

26 26 Aluminum - Recycling Approximately 2/3 of all aluminum produced since 1886, 440 million tons of 689 million tons, is still in active us Between 1992 and 2001, primary aluminum production rose 30%, but recycling grew more than 400% Alcoa has committed to making 50% of its products from recycled aluminum by 2020

27 27 Alcoa’s Approach –60% reduction in SO2 –50% reduction in VOC’s –30% reduction in NOx –80% reduction in Mercury emissions –50% reduction in landfilled waste –60% reduction in process water use –25% reduction in greenhouse gases* –Zero non-compliance incident –ISO 14001 type EMS at all locations Alcoa has set a number of strategic metrics related to environmental performance:

28 28 Challenges Water use and supply Energy efficiency Green power Zero landfilled waste Zero emissions Improved health of employees and communities Every employee is safe SUSTAINABLE BUSINESS

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