Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Safety
• Ethics and Compliance

Environmental Achievements

• Reduced absolute greenhouse gas emissions by 6 million metric tons
• Reduced energy intensity by 1 percent
• Reduced landfilled waste by 86,500 metric tons
• Reduced water consumption by 19 million cubic meters

Social Achievements

• Alcoa employees trained future business leaders in Brazil through a 15-week program with Junior Achievement and Instituto Alcoa
• 26 percent reduction in the DART rate (Days Away, Restricted duty and job Transfer per 100 full-time employees)

Governance Achievements

• Enhanced compliance program by adopting standalone conflicts of interest and anti-retaliation procedures
• Updated Code of Conduct and key compliance policies and procedures
• Strengthened anti-corruption program by launching a series of executive-level reviews for all active high and medium-risk intermediaries
• All Alcoa employees received Code of Conduct training

Climate Goals & Targets

Environmental Challenges

• Significant market pressures, including multi-year lows in alumina prices and weak aluminum prices
• Need to reduce complexity and drive returns for stockholders
• Need to strengthen the balance sheet
• Global operations expose us to risks that could adversely affect our business, financial condition, operating results or cash flows
• Substantial changes to fiscal, tax and trade policies and legislation could affect our business, financial condition, and results of operations

Mitigation Strategies

• Delivered approximately $290 million in after-tax, net performance improvements in 2016
• Permanently closed Warrick Operations smelter in Indiana and curtailed Point Comfort, Texas refinery
• Permanently closed the Suralco refinery and bauxite mines in Suriname
• Grew third-party exports to 6 million bone dry metric tons (bdmt) of bauxite shipped
• Secured first major export contract out of Western Australia
• Increased cost efficiencies and improved positions on the alumina and aluminum global cost curves
• Simplifying processes and structure to make Alcoa more agile and lower-cost
• Investing modest capital in high growth projects with strong returns
• Increased cash position by $198 million

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• SUSTANA™ line of aluminum products
• ECOLUM™ products
• ECODURA™ billet

Awards & Recognition

• Duty of Care Award from the International SOS Foundation

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Water Stewardship
• Waste Management
• Safety and Health
• Human Rights
• Community Engagement
• Diversity and Inclusion
• Governance, Ethics and Compliance

Environmental Achievements

• 9.1% decrease in carbon dioxide equivalent emissions
• 15.4% decrease in landfilled waste
• 0.8% decrease in freshwater use intensity
• Approximately 81% of electricity consumed by our smelters was from renewable sources

Social Achievements

• Launched a comprehensive social management system called SP360
• US$95 million in Alcoa Foundation community investments
• 5,700 employee volunteer hours in the community
• Increased percentage of women in our global employee population from 15.6 percent to 17.17 percent

Governance Achievements

• Established anti-corruption training for all employees
• Implemented an annual review process for each corporate policy and procedure
• A percentage of our annual Incentive Compensation program is linked to balancing our gender equality and diversity.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 pandemic
• Water scarcity in Western Australia refineries
• Managing bauxite residue
• Stakeholder expectations for the extractives sector are evolving

Mitigation Strategies

• Developed a Pandemic Preparedness and Response Plan
• Implemented residue filtration technology
• Exploring new technologies to decarbonize alumina refining and smelting (ELYSIS, ASTRAEA)
• Engaging with stakeholders through the Alcoa Stakeholder Engagement Framework

Supply Chain Management

Supplier Audits: More than 800 suppliers completed EcoVadis Ratings Assessment (39% of supply spend)

Responsible Procurement

• Supplier Standards
• ESG requirements integrated into procurement practices
• EcoVadis IQ platform for ESG risk screening
• EcoVadis Ratings Assessment for high-risk suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Water stress
• Wildfire
• Hurricane risk

Transition Risks

• Policy risk
• Market risk
• Technology risk

Opportunities

• Development of energy-efficient products
• Process efficiencies
• Innovative solutions

Reporting Standards

Frameworks Used: GRI Standards (2021 version), ICMM 10 Principles and eight Position Statements, SASB Metals & Mining Sustainability Accounting Standard

Certifications: ISO 14001:2015 (68% of operating plants), ISO 45001 (16% of operating plants), Aluminium Stewardship Initiative (ASI) Performance Standard (15 operating facilities), ASI Chain of Custody Standard (14 operating locations)

Third-party Assurance: ERM Certification and Verification Services Inc. (ERM CVS)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Explanation of SDG alignment found throughout the report.

Sustainable Products & Innovation

• EcoSource™ alumina
• EcoLum™ low-carbon primary aluminum
• EcoDura™ aluminum

Awards & Recognition

• Numerous awards listed in Awards and Recognitions section

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity and Inclusion
• Safety and Health
• Human Rights
• Community Engagement
• Supply Chain Management
• Impoundment Management
• Biodiversity
• Water Stewardship
• Waste Management
• Governance

Environmental Achievements

• 86% decrease in CO2e emissions from 2015 baseline
• Zero decrease in landfilled waste
• 18.4% reduction in bauxite residue land requirements per metric ton of alumina produced from 2015 baseline
• 86% of electricity powering our smelters came from renewable sources
• 31.5% of spent pot lining generated was diverted for recovery

Social Achievements

• 17% decrease in our FSI-P rate
• 17% increase in new hires from underrepresented groups
• $7M invested in communities through Alcoa Foundation grants and corporate giving programs
• Achieved equal pay at each job level
• Increased overall share of female employees

Governance Achievements

• 17 operating locations certified to ASI’s Performance Standard
• 90 score on the Human Rights Campaign Foundation’s Corporate Equality Index
• Implementation of SP360 social performance management system across all sites

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change impacts on operating assets
• Scope 3 GHG emissions
• Water scarcity in Western Australia
• Dust impacting communities near Pinjarra refinery
• Koala health concerns near Portland smelter
• Legal disputes related to divested facilities
• Exorbitant energy prices in Spain
• Community concerns regarding bauxite residue impoundments in Texas
• Concerns about the Øyfjellet Wind Farm's impact on Sami reindeer herding practices

Mitigation Strategies

• Developed alternative sourcing strategies
• Global study to understand long-term impacts of climate change
• Collaborative work with customers and business partners on Scope 3 emissions
• Water recycling and reuse programs
• Dust suppression measures and community engagement
• Koala health assessments and habitat restoration
• Negotiated settlements with employees and stakeholders
• Securing long-term PPAs for San Ciprián smelter
• Remedial program and community engagement at Copano site
• Ongoing dialogue with Sami people and project developer

Supply Chain Management

Supplier Audits: More than 9700 suppliers assessed in 2022; 1000+ EcoVadis Ratings audits completed

Responsible Procurement

• Responsible Sourcing Program
• Supplier Standards
• Supplier Sustainability Framework
• EcoVadis 360 Watch
• Human Rights Resources and Energy Collaborative
• TealBook partnership

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Heat waves
• Droughts
• Rising sea levels

Transition Risks

• Regulatory changes
• Market shifts
• Carbon pricing

Opportunities

• Development of energy-efficient products
• Expansion of renewable energy use
• Decarbonization technologies (ELYSIS™, Refinery of the Future™)

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB Metals & Mining Standard, ICMM Principles

Certifications: Aluminium Stewardship Initiative (ASI) Performance Standard

Third-party Assurance: ERM Certification and Verification Services Inc. (ERM CVS)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 6 (Clean Water and Sanitation)
• Goal 15 (Life on Land)

Alcoa's initiatives contribute to these goals through various programs and actions detailed in the report

Sustainable Products & Innovation

• EcoSource™ alumina
• EcoLum™ primary aluminum
• EcoDura™ aluminum

Awards & Recognition

• Bloomberg Gender-Equality Index
• Human Rights Campaign Foundation’s Corporate Equality Index
• EcoVadis Platinum Member
• S&P Global Sustainability Yearbook
• Other awards listed in Appendix F

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity and Mine Rehabilitation
• Local Commitment with Communities
• Impoundment Management
• Human Rights
• Inclusion, Diversity and Equity
• Supply Chain Management
• Health and Safety
• Ethics and Good Governance

Environmental Achievements

• 2.2% decrease in CO2e emissions year-over-year
• 15.5% reduction since 2015 of bauxite residue land requirements per metric ton of alumina produced
• 87% of electricity powering our smelters came from renewable sources
• 9.7% increase in spent pot lining diverted for recovery

Social Achievements

• Zero worker fatalities
• Listed as one of America’s Greatest Workplaces in 2023 by Newsweek magazine
• 32.7% of total workforce is diverse employees
• 19.1% female workforce
• US$4.1M invested in skills development programs benefitting local communities
• US$5.9M invested in communities through Alcoa Foundation grants and corporate giving programs

Governance Achievements

• Issued first global Modern Slavery Statement
• Top 5% of companies within the manufacture of basic precious and other non-ferrous metals industry according to EcoVadis
• 18 locations certified to Aluminium Stewardship Initiative (ASI) Performance Standard
• Implemented a new Supplier Site Collaboration program
• Conducted a portfolio-wide assessment of physical and transition risks of climate change across Alcoa's operations
• Reported against ICMM’s Social and Economic Reporting Framework for the first time

Climate Goals & Targets

Environmental Challenges

• Two serious injuries in 2023
• Challenging stakeholder and operational issues within our portfolio (e.g., securing government approval of mine plans in Western Australia, addressing financial situation at San Ciprián complex in Spain)
• Concerns raised over the construction of a wastewater pipeline over the Samson Brook dam in Western Australia
• Concerns raised by stakeholders in Western Australia regarding certain aspects of our operations
• Significant increase in the number of complaints received at our Juruti operation in Brazil due to historically low water levels
• Concerns raised by stakeholders in Western Australia regarding certain aspects of our operations
• Increased DART rate in 2023 due to reclassification of work-related musculoskeletal injuries
• Series of incidents involving chemical burns at refineries in Western Australia
• Concerns raised by stakeholders in Western Australia regarding certain aspects of our operations
• Concerns raised by the group ‘Friends of the Anglesea River’ regarding possible adverse impacts to the Anglesea River
• Sierra Club filed a Notice of Intent to Sue in November 2023, citing violations of the Clean Water Act at Warrick, Indiana
• Settlement case between Øyfjellet Wind Farm and the local Jillen-Njaarke Reindeer District in Norway
• Impending draft NPDES permit from the North Carolina Department of Environmental Quality sparking concerns about undiscovered environmental challenges at Badin, North Carolina
• US EPA issued a Record of Decision (ROD) designating Point Comfort, Texas, USA a Superfund site
• Surinamese pensioners seeking adjustment to their pension due to declining value of local currency at Paranam, Surinam

Mitigation Strategies

• Continued focus on safety and improvement in key leading safety metrics
• Extensive focus and collaboration with stakeholders to secure government approvals and address operational issues
• Dismantled and replaced wastewater pipeline with a government-approved onsite water treatment plant in Western Australia
• Taking steps to improve community engagement in Western Australia (e.g., increasing opportunities for nimble community engagement, creating a new community consultation network, opening up pop-up offices, creating a new community relations advisor role)
• Promptly addressed and resolved most concerns related to complaints at Juruti, Brazil; others under evaluation or have action plans underway
• Implementing injury reduction plans utilizing safety controls, training, programs, work design and campaigns
• Revised global standard for chemical burns, improved controls, and specific PPE requirements in Western Australia; resulted in a 37 percent reduction in chemical injuries
• Increased leader engagement through Leader Time in Field program (over 105,300 CCFVs conducted)
• Working with WA government to modernize State Agreements and have all new major mining areas assessed by the WA EPA
• Seeking DWER approval to construct and operate a water treatment unit to process affected water
• Initiated a consultation process with communities affected by harbor closure and dredging at Juruti, Brazil
• Promptly addressed coke spill near Alumar site in Brazil; cleanup efforts and analysis showed no impact on ecosystems or water quality
• Invested US$65 million towards obligations under the Viability Agreement at San Ciprián, Spain; working with regional and national governments on a long-term solution
• Working with the Indiana Department of Environmental Management (IDEM) to address Clean Water Act violations at Warrick, Indiana
• Offered all pensioners receiving their pension in SRD the option to change to a USD-based pension at Paranam, Surinam
• Ongoing technical investigation at Anglesea, Victoria, Australia; meetings with ‘Friends of the Anglesea River’ and participation in ‘Anglesea River Advisory Group’ meetings
• Test treatment program initiated at Badin, North Carolina to reduce fluoride concentrations discharged

Supply Chain Management

Supplier Audits: 907 third-party audits (56% completed EcoVadis Ratings assessment)

Responsible Procurement

• Responsible Sourcing Framework (Assess-Audit-Advance)
• Supplier Sustainability Program
• EcoVadis Ratings audits
• Supplier Site Collaboration (SSC) program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Heat waves
• Droughts
• Rising sea levels

Transition Risks

• Regulatory changes
• Market shifts
• Policy changes
• Technological changes

Opportunities

• Development of energy-efficient products
• Increased use of renewable energy
• Development of new decarbonization technologies

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB Metals & Mining Standard, ICMM Principles, UN Sustainable Development Goals (SDGs)

Certifications: Aluminium Stewardship Initiative (ASI) Performance Standard

Third-party Assurance: ERM Certification and Verification Services Inc. (ERM CVS)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 15 (Life on land)
• Goal 17 (Partnerships for the goals)

Alcoa's initiatives contribute to these goals through various programs and strategies outlined in the report.

Sustainable Products & Innovation

• EcoSource™ alumina
• EcoLum™ primary aluminum
• EcoDura™ aluminum
• C611 EZCast™ alloy

Awards & Recognition

• EcoVadis Gold Rating
• Listed on Bloomberg’s Gender-Equality Index
• America’s Greatest Workplaces
• Employer of Choice for Gender Equality
• Australian Workplace Equality Index – Silver Tier Employer
• Awarded Great Place to Work in Brazil
• First Research Prize of the Epifanio Campo Chair of University of La Coruña