Alcoa

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

Alcoa has set targets to align its scope 1 and 2 emissions intensity with the 2°C decarbonisation pathway. The company aims to reduce the emissions intensity by 30% by 2025 and by 50% by 2030, measured against a 2015 baseline. However, Alcoa has not disclosed specific targets for its scope 3 emissions. Alcoa should develop a long-term target that aligns with a 1.5°C pathway and covers its scope 1, 2 and 3 emissions. Additionally, the company should clearly report its base year emissions and any offsetting it intends to use to allow for a complete analysis of its targets and progress against them.

Alcoa’s board is tasked with direct responsibility for its climate change strategy. While several members of the committee have experience in sustainability and environmental, social and governance (ESG) matters, no evidence was found of the depth and detail of their expertise. Moreover, while Alcoa sets targets for increasing renewable energy consumption, no evidence was found that the company’s transition plan covers financial viability and cost estimates, specific short- and long-term actions, and a defined scope across business units. The company considers potential carbon pricing in its internal long-term planning processes. While the company undertakes some assessment of the materiality of climate-related risks/opportunities, no evidence was found that it offers incentives or benefits linked to climate change achievements, nor does it have climate change scenario analysis in place.

Alcoa’s research and development (R&D) project aims to convert millions of tonnes of scrap waste into high-purity aluminium. However, there is no evidence that the company has well-defined commitments with a specific timescale or a robust method of quantification and verification for implementing this initiative. Next to setting up these details, the company should ensure the plan is regularly monitored and its responsibility lies with high-level employees. The company has not disclosed its R&D expenditure over the last three years, nor has it provided quantitative data on its investments in low-carbon technologies.

Alcoa lacks a supplier engagement strategy to promote emissions reduction and the low-carbon transition. While the company discloses its goal of enhancing inventory accuracy and supporting target-setting opportunities in relation to its clients, there are no details regarding the scope of its client engagement strategy. The company supports climate policies and the Paris Agreement; however, no evidence was found that Alcoa has a formal monitoring and review process to ensure its policy positions align with the Paris Agreement.

Alcoa commits to reducing the emissions intensity for its scope 1 and 2 emissions by 30% by 2025 and 50% by 2030, measured against a 2015 baseline. However, the company lacks specific targets for its scope 3 emissions. Moreover, the company does not have a long-term net-zero commitment.

Alcoa has a technology roadmap to reinvent the aluminium industry for a sustainable future, but the company does not report details on how the roadmap aligns with a low-carbon transition. The company should strengthen its engagement strategy with suppliers and develop a client engagement strategy focused on emissions reduction. While Alcoa mentions R&D in decarbonisation solutions, there is no disclosed evidence of its R&D expenditure on low-carbon technologies. To enhance transparency, the company could disclose more low-carbon-related data, including its capital expenditure and R&D investments.

The company consistently reports emissions intensity data for its electrolysis and refining processes. In 2019-2022, the company saw a 7% reduction annually in the emissions intensity for both processes.

Alcoa does not provide information regarding its low-carbon capital expenditure and low-carbon mitigation R&D. The company also does not disclose whether it is creating or expanding low-carbon business models or implementing actions to decarbonise activities within its existing business models.

Although Alcoa discloses some details of its transition plan, the company can strengthen it by 2050 by including financial cost and viability estimates related to its planned low-carbon technologies and specific short- and long-term actions. Furthermore, it can provide a breakdown of the expected emissions reduction for each of its activities to make the plan more credible.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

The company discloses its actions to enhance recruitment efforts in the community. It also discloses the measures it takes to ensure that these jobs embed equality of opportunity for women and vulnerable groups. It does this through targeted equity programmes for different genders and people with disabilities. However, no public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition.

No relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses its actions to provide transformative leadership development opportunities to workers and affected stakeholders. Furthermore, it discloses the measures it takes to embed equality of opportunity for women and vulnerable groups. For example, it has vocational training programme in Guinea to support women in the region. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition or a public commitment to help workers displaced by the transition to reskill or upskill.

No relevant disclosure was found to show if the company identifies the impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to their social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. No evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment from its business relationships. While the company commits to paying employees a living wage, it is unclear how it determines a living wage for the regions where it operates. The company discloses the proportion of its direct workforce covered by collective bargaining agreements, but no relevant disclosure was found of its required working hours. The company discloses some indicators of workforce diversity, such as the gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. The company commits to gender equality and women’s empowerment.

The company commits to protecting personal data, but no evidence was found that it has a privacy statement regarding the collection, sharing and access to personal data. No relevant disclosure was found of the company’s global tax strategy and the corporate income tax it pays in each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. However, no evidence was found that the company has a lobbying and political engagement policy, or that it specifies that it does not make political contributions.