Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum, and alumina, and is active in all major aspects of the industry. The company, which employs 131,000 people in 43 countries, serves the aerospace, automotive, packaging, building and construction, commercial transportation, and industrial markets.
Alcoa’s vision is to be the best company in the world, through the eyes of its customers, shareholders, communities and people. To achieve its vision, Alcoa has taken an innovative approach to the environment and societies in which it operates. By developing technologies and solutions twenty years in advance, Alcoa can operate ahead of the curve. Alcoa has created a commitment to sustainability through its vision for 2020.
Innovation
By looking forward 20 years and creating goals for measuring progress towards achieving the 2020 strategic plan for cleaner air, better use of land and water, and the protection of human rights rather than reacting to legislative environmental compliance Alcoa has a roadmap to achieving EHS [what is EHS?] sustainability. In addition, allowing their businesses to develop technologies and solutions over 20 years rather than responding to shorter-term negative economic conditions allows Alcoa to create wealth and social benefits profitably for the communities in which it operates globally.
Alcoa defines sustainability on its website as “…using our Values to build financial success, environmental excellence, and social responsibility through partnerships in order to deliver net long-term benefits to our shareowners, employees, customers, suppliers, and the communities in which we operate.” The company has set both short- and long-term goals to ensure meeting the 2020 targets and routinely measures against these goals.
Alcoa approaches the environment as an opportunity for a legacy that reflects its duty as a concerned corporate citizen, not merely as “checkmark” to legislative compliance. By using this approach the company establishes goals and metrics well in advance of environmental requirements. Historically Alcoa was considered a U.S. company that used natural resources globally to produce a product. This mindset changed when a CEO was appointed from the Alcoa operations in Brazil. The change in leadership brought a new perspective and highlighted Alcoa as a global company that has an accountability to provide wealth to all societies in which it operates.
By operating ahead of the curve, Alcoa is able to seek new business growth opportunities in developing societies which, in turn, helps create new jobs. Additional benefits to the developing locations include the following:
• Alcoa Foundation money is provided for community needs
• Alcoa’s environmental, health and safety culture is instilled
• Tools such as the Alcoa Business System are introduced, helping the location to reach operational excellence
• Investments are attracted from other businesses
The result of this cycle is the generation of cash to reinvest in both the United States and international locations. By operating ahead of the curve, Alcoa allows businesses to grow, prosper and create wealth for all communities.
After being named as one of the top three most sustainable corporations in the world, Alcoa’s Chairman and CEO, Alain Belda, remarked at the Davos World Economic Forum in January 2005: "It's an honor to see the work of Alcoans recognized globally.… Sustainability is not new to us, although we may not have always used the term. For years we have been using our Values as a guide while striving for excellence with a focus on better understanding and managing our economic, social and environmental impacts with our communities."
"Our Values require us to think and act not only on the present challenges, but also with the legacy in mind that we leave for those who will come after us... as well as the commitments made by those that came before us," said Belda. "We think of it in terms of a relay race, where each one of us adds value today and long-term for all shareholders, Alcoans, and the communities in which we operate. We appreciate the recognition of this work and our ability to combine financial performance with social and environmental stewardship."
Impact
To support their environmental vision Alcoa has established a 2020 strategic plan for cleaner air and better use of land and water. By 2006 Alcoa is expected to achieve annual environmental and energy cost savings of $100 million through elimination of wastes and designs for sustainability.
One example of the positive sustainability impact on the environment and society in which it operates is the Alcoa Cleveland Works location in Ohio. This business began working towards the goals Alcoa identified for achieving the 2020 strategic plan for cleaner air, better use of land and water, and the protection of human health. By focusing on the 2020 strategic plan and the goals, Alcoa is significantly reducing air, waste and water discharge.
The 2020 strategic framework calls for a 50 percent reduction in volatile organic compounds by 2008. Cleveland began using water-based lubricants and implementing process changes, including the method in which lubricants are applied. These changes have resulted in a 10 percent reduction in VOC emissions while saving $2 million annually. Cleveland is also aggressively working towards 60 percent reduction in process water use and discharge by 2008 and a 50 percent reduction in land filled waste by 2007 as both specified in the 2020 strategic framework.
Operating ahead of the curve, the Cleveland Works business also expanded operations first in Hungary and then Mexico. This was not an attempt to replace U.S. jobs with operations in low labor cost countries. Instead it was an opportunity to grow a profitable business globally. In addition to creating jobs and wealth for people in the Hungarian and Mexican locations, Alcoa also provided Alcoa Foundation money for the communities. The Alcoa Foundation is a global resource that actively invests in the quality of life in Alcoa communities worldwide. With more than $388 million invested since its inception in 1952, Alcoa Foundation is a source of positive community change and enhancement, with a set of strengths and competencies that reflect community aspirations and needs around the world.
The locations in Hungary and Mexico quickly adapted the EHS culture and ABS tools to achieve operation excellence. Both locations were recognized at the Alcoa Global Leadership awards. Hungary was recognized for winning the 2004 National Quality / Excellence Award and Mexico for 100 delivery performance to Alcoa customers without defects.
Inspiration
As explained on Alcoa’s website sustainability is defined as “Using our Values to build financial success, environmental excellence, and social responsibility through partnerships in order to deliver net long-term benefits to our shareowners, employees, customers, suppliers, and the communities in which we operate.”
The World Inquiry editorial team edited this profile from the original submission of the interviewer or other source. The views expressed do not necessarily represent Case Western Reserve University, the Weatherhead School of Management or the Center for Business as an Agent of World Benefit. More >>
