Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced freshwater use by 9% from 2016
• Reduced landfilled waste by 27% from 2016
• Global Rolled Products segment reduced carbon emissions intensity by 30% between 2005 and 2017
• Aligned EHS management system to ISO 14001 and ISO 45001 standards

Social Achievements

• Zero employee and contractor fatalities in 2017
• DART rate 9% lower than 2016 and 74% below the U.S. aerospace manufacturing sector average
• Earned a perfect score of 100 on the Corporate Equality Index 2018
• Implemented Arconic Global Wellness Initiative

Governance Achievements

• Redesigning the Integrity Champion Network to better align with current business risks
• Completed investigations on more than 450 Integrity Line calls
• Conducted an anti-corruption audit in China
• Updated anti-corruption self-assessment
• Implemented a procedure for charitable contributions
• Deployed four online ethics and compliance courses
• Delivered live anti-corruption training to 3,474 employees

Climate Goals & Targets

Environmental Challenges

• Higher production levels leading to increased greenhouse gas emissions and energy consumption
• Managing risks from chemicals under REACH regulation
• Supply chain disruptions
• Higher attrition rates impacting diversity targets

Mitigation Strategies

• Strategic energy-reduction goals and initiatives
• Internal global team working to ensure adherence to REACH requirements and actively seeking substitutions for chemicals
• Third-party supplier due-diligence program
• Increased focus on minority hiring and partnering with key organizations

Supply Chain Management

Supplier Audits: Almost 40 percent of targeted suppliers were registered in a third-party due-diligence program at the end of 2017

Responsible Procurement

• Supplier Standards
• Global Supplier Sustainability Program

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced direct and indirect greenhouse gas emissions by 13.8%
• Reduced energy consumption by 11.9%
• Reduced freshwater withdrawal by 8.0%
• Reduced landfilled waste by 6.5%
• Four locations certified to ASI’s Performance Standard

Social Achievements

• Zero fatalities for the fifth consecutive year
• Launched Grow Together Inclusion and Diversity campaign, resulting in over 2,000 employee actions
• Arconic Foundation granted US$7.1 million to nonprofit and community organizations
• Achieved a perfect score of 100 on the Corporate Equality Index 2021

Governance Achievements

• Comprehensive review of governance policies and practices
• Enhanced Human Rights Policy
• Confirmed meeting or exceeding local living wages in all operating countries

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting production levels and operations
• Reduced production volumes affecting emissions and waste reduction targets

Mitigation Strategies

• Implemented comprehensive COVID-19 response plan
• Implemented cost-saving measures including workforce restructuring
• Maximized use of secondary aluminum to reduce Scope 3 emissions

Supply Chain Management

Supplier Audits: Key suppliers (representing 51% of total spend) assessed through Global Supplier Sustainability Program

Responsible Procurement

• Supplier Standards outlining expectations for responsible business conduct
• Conflict Minerals Policy
• Screening against denied/restricted party list

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB Metals & Mining Standard, ASI Standards

Certifications: ISO 14001, ISO 45001, ISO 50001 (five certifications)

Third-party Assurance: DNV (assurance readiness assessment completed; assurance on Scope 1, 2, and 3 GHG emissions and energy consumption data planned for 2022)

UN Sustainable Development Goals

• Not disclosed

Recently became a member of the UN Global Compact

Sustainable Products & Innovation

• Lightweight aluminum alloys for automotive and aerospace applications
• Arconic 951™ bonding technology
• Recyclable aluminum packaging

Awards & Recognition

• R&D 100 award (Arconic 951™)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity and Inclusion
• Supply Chain Resilience
• Product Sustainability
• Ethical and Transparent Business Conduct

Environmental Achievements

• Scope 1 greenhouse gas emissions intensity decreased by 5.5% compared to 2020
• Scope 2 greenhouse gas emissions intensity decreased by 21.5% compared to 2020

Social Achievements

• Total Recordable Incident Rate decreased by 7% compared to 2020
• Days Away, Restricted and Transfer Rate decreased by 24% compared to 2020
• 40% of global executives are female
• 21.9% of U.S. employees and 30% of U.S. executives are ethnically diverse
• $8.2 million granted to 132 nonprofit and community organizations in eight countries by Arconic Foundation in 2021
• Perfect score of 100 in the Human Rights Campaign Foundation’s Corporate Equality Index
• More than 4,300 actions recorded by Arconic employees in support of inclusion, diversity, and social equity

Governance Achievements

• Completed first Materiality Assessment to identify priority ESG topics through stakeholder engagement

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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: CDP, GRI, SASB Metals and Mining Standard, UNGC

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Supply chain sustainability
• Human capital dynamics
• Diversity, Equity and Inclusion (DEI)
• Safety

Environmental Achievements

• Received a Multi-Site Performance Standard Certificate under the Aluminium Stewardship Initiative (ASI) for sites in Pittsburgh, Pennsylvania; Kofem, Hungary; and Bohai, China.

Social Achievements

• Increased hiring initiatives, resulting in a net increase of approximately 590 employees in 2022 (offset by a reduction of approximately 2,900 employees due to the sale of Russian operations).
• Initiated programs to upskill and train employees and improved employee benefits and wages.
• Arconic Foundation granted over $34,000 in matching contributions to organizations driving change with DEI initiatives and over $960,000 to non-profits supporting inclusivity and social equity.

Governance Achievements

• Established a cross-functional ESG Council to develop and implement sustainability strategy.
• ESG Council regularly reports to executive leadership and the Governance and Nominating Committee of the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Impacts of hyperinflationary energy prices in Europe leading to diminished demand and higher operational costs.
• Production outages in some U.S.-based plants.
• Conflict in Ukraine and the subsequent sale of Russian operations.

Mitigation Strategies

• Sold Russian operations for gross cash proceeds of $230 million.
• Implemented actions to offset inflation through increased pricing.
• Resolved operational challenges through the second half of the year.
• Continued strong foundational efforts, investing in new programs to rebuild the workforce.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters and adverse weather conditions

Transition Risks

• Changing customer preferences
• Legal and regulatory requirements

Reporting Standards

Frameworks Used: UN Women Empowerment Principles, UN Sustainable Development Goals

Certifications: Aluminium Stewardship Initiative (ASI) Performance Standard

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Energy
• Water Management
• Waste Management
• Health and Safety
• Human Rights
• Labor Relations
• Diversity, Equity, and Inclusion
• Supply Chain Management
• Corporate Governance
• Ethics and Compliance
• Community Engagement

Environmental Achievements

• Year-over-year decrease in GHG emissions intensity of 6.0%
• Global GHG emission intensity has fallen by more than 15% compared to 2021
• Reduced total landfill waste generated by 4.4% year-over-year
• Reduced total water withdrawal by 2.6% year-over-year
• Five global locations certified to the ASI Performance Standard

Social Achievements

• Facilities achieved a total recordable incident rate well below the industry average in 2023
• Arconic Foundation invested approximately $7 million in communities
• 100 score on Human Rights Campaign: Corporate Equality Index
• EcoVadis silver rating in first-ever company-wide assessment

Governance Achievements

• Established a robust global compliance program
• Zero significant environmental spills or violations resulting in significant fines
• Zero significant air non-compliance incidents
• No significant incidents of non-compliance related to water
• No significant non-compliance incidents related to waste

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions in operations and supply chain
• Supply chain disruptions
• Managing climate-related risks (physical and transition)
• Water risk in high and extremely high water stress locations

Mitigation Strategies

• Increased use of external scrap and improvements in operational efficiency
• Launched a new partnership with EcoVadis to enhance supplier assessment program
• Implementing steps to pursue emissions intensity reduction and identify additional energy efficiency opportunities
• Partnering with customers and suppliers to create innovative products
• Expanding partnerships with key industry groups
• Implementing energy conservation measures (ECMs)
• Evaluating equipment upgrades and more efficient processes
• Increasing purchasing of secondary aluminum
• Conducting water risk assessment and evaluating water efficiency opportunities

Supply Chain Management

Supplier Audits: 129 key suppliers assessed through EcoVadis (86% participation rate)

Responsible Procurement

• Supplier Standards
• Conflict Minerals Policy
• EcoVadis platform
• Supplier Code of Conduct (in development)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB Metals & Mining Standard (2023), GRI Standards, Aluminum Stewardship Initiative’s Performance Standards

Certifications: ISO 14001, ISO 50001, ISO 9001, ISO 45001, ISO 17034, ASI Performance Standard, BES 6001

Third-party Assurance: Leaders within our business functions

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• 1600 Wall System®, Cradle-to-Cradle Certified products, recycle-ready and recyclable materials, alloys with enhanced recyclability

Awards & Recognition

• USGlass Sustainability Award
• Human Rights Campaign Corporate Equality Index (100 score)
• Women MAKE Awards
• Investors in People gold level accreditation