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www.alcoa.com |
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| Share Price (3/15/07): | $33.88 |
| OVERVIEW: | |
| Market Value (3/15/07): | $29.5 BIL |
| Revenue 2006: | $30.4 BIL |
| Employees: | 123,000 |
| Return on Equity 2006: | 15.5% |
| HIP PRACTICES: | |
| Vision: | Zero-injury safety target set in 1990s by then CEO Paul O'Neill (former US Treasury Secretary). 25% Green House Gas (GHG) reduction targeted by 2020. |
| Metrics: | Safety and sustainability metrics are embedded in corporate-wide scorecard. |
| Financials: | Only profitable roll-outs pursued, but integrating ecoMagination vision. $750mm annual R&D for green products in 2005 doubling to $1.5B annual R&D for green product development by 2009. |
| Accountability: | Board Public Issues committee (4 of 15 Board members) meets quarterly; employee wide focus on safety, sustainability; collaborative and communicative process with managers. |
| Decision-Making: | Adherence to values, including sustainability, is "non-negotiable;" managers encouraged to seek "more than offset" goals. |
| HIP OUTCOMES: | |
| Health: |
In 2006, 44.9% of Alcoa's 372 locations worldwide had zero recordable injuries compared to 31.4% in 2005; and, 82.3% of Alcoa's 372 locations worldwide had zero lost workdays compared to 61.5% in 2005. |
| Wealth: |
Alcoa Learning Express, a self-service online learning system was made available to 62,000 employees in 2005 and expanded in 2006. Living wage and strong investment/saving programs for employees. |
| Earth: |
High revenue share (31%) from recycled materials, driving new markets for low-weight vehicle parts. Though on a progressive path, waste streams and production processes improving, but not yet irreversibly sustainable across its 44 countries and 50-plus business units. In 2005, Alcoa achieved a land-filled waste reduction of more than 50% from a 2000 baseline, exceeding the company's short-term target of a 50% reduction by 2007. Alcoa has developed ways to turn Pot lining (the carbon and refractory lining of aluminum smelting pots that have reached the end of their service life) into a raw material for other industries. At the end of 2005, 28% of the spent pot lining that Alcoa produced each year is no longer a waste but rather a raw material. In 2005, 69% of Alcoa's operating locations operated without any environmental non-compliance incidents, up from 60% in 2004. |
| Equality: |
Women comprise 14 percent of Alcoa management, 10 percent of senior management and 8 percent of executives. Supplier diversity improving, but not yet at ethnic or gender balance to the market. |
| WHAT'S NEXT: | |
| Practices: | Alcoa is a founding member of the US Climate Action Partnership, a new organization of leading corporations and NGOs dedicated to working with government to slow, stop and ultimately reverse climate change. Created the $8.6 million Conservation and Sustainability Fellowship Program, designed to advance the knowledge in the field of conservation and sustainability through fellowships to outstanding academics and practitioners from non-governmental organizations. |
| Outcomes: | Targeting GHG neutrality in one or more sectors by 2020. |
| OTHER RATINGS: | |
| KLD (+/-): Companies are rated from negative (0) to positive (6) in seven areas. | Community: 5.0 Governance: 4.0 Diversity: 4.2 Employees: 2.8 Environment: 1.9 Human Rights: 0.0 Product: 3.1 |
| Calvert Rating: Companies are rated on a scale of 1 (substantially below Calvert standards) to 5 (superior). | Environment: 1 Workplace: 2 Business Practices: 4 Human Rights: 4 Community Relations: 4 Included in Calvert funds: No |
| RESOURCES: | |
| Sustainability or CSR Report: | Sustainability & Alcoa |
| Annual Report: | Alcoa 2006 Annual Report |
--Alex C. Pasquariello and R. Paul Herman
