Arconic

Arconic has decreased its emissions intensity from finished aluminium products by 5% annually between 2018 and 2022. This reduction rate is aligned with a 1.5°C pathway.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

Arconic commits to reducing all its emissions by 30% but provides no specific horizon for this target. It has also specified a target to reduce its emissions by 10% by 2030 compared to 2018. However, it has not set any intermediate or long-term targets that will ensure the achievement of its decarbonisation goals. Arconic has still not committed to fully decarbonise by 2050.

Arconic does not have a low-carbon transition plan that is aligned with a 1.5°C pathway. However, the company does disclose some elements of transition planning, such as incentivising low-carbon performance through executive compensation and assessing climate-related risks and opportunities. There is no evidence that the company reports its revenue from low-carbon products or that it has developed or is developing low-carbon activities outside of its core business.

Although Arconic reports that 21% of its purchased grid electricity was generated from renewable sources, there is no evidence that the company has clear plans to promote the self-generation of low-carbon electricity. The company has not reported low-carbon research and development (R&D) expenditure in the last three years, nor has it provided quantitative data on its investment in low-carbon technologies. Furthermore, the company does not provide evidence of decarbonisation interventions related to purchased products. This is relevant given that most of the company’s emissions come from metal purchased by the company.

Arconic states that it engages with suppliers representing 89% of the company’s scope 3 emissions and involves them on sustainability topics such as decarbonisation. However, the company needs to clarify whether this engagement includes quantified emissions reduction requirements for suppliers. Additionally, the company could provide more evidence regarding its selection and renewal of suppliers’ contracts and whether it requires suppliers to set emissions reduction targets. Arconic does not publicly disclose a client engagement policy. Furthermore, there is no evidence that the company has recent and current activities in client engagement, and there is no disclosure available on the impact of such activities.

Arconic commits to reducing all its emissions by 30% without mentioning a timeline, and to reducing its emissions by 10% by 2030 compared to the base year 2018. However, the company does not have a long-term net-zero commitment.

Arconic consistently reports emissions intensity data and keeps track of progress towards its commitments. However, the company does not outline its expected changes and investments in its innovation strategies for the next decade. Given that the company operates downstream of primary aluminium producers, it should have a stronger engagement strategy with suppliers. Arconic can enhance its supplier strategy by incorporating emissions reduction targets into procurement templates. It should also develop a client engagement strategy focused on emissions reduction.

The company reports a reduction in its scope 1 and 2 emissions intensity of 5% annually for the period 2018-2022.

Arconic 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.

The company outlines its short-term actions to reduce emissions. It is actively pursuing decarbonisation across its supply chain, manufacturing operations and transport operations to meet these goals. However, it still fails to commit to a net-zero target.

The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

The company discloses the measures it takes to ensure that it creates jobs that embed equality of opportunity for women and vulnerable groups. In particular, it strengthens its diversity recruiting initiatives through partnerships with minority and women-focused organisations. 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 training opportunities for workers and affected stakeholders. For instance, it offers its employees leadership training programmes in partnership with Cornell University. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders 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 the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found that it commits to respecting human rights. Moreover, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its operations and supply chain, or 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. It also states that it meets and, in most instances, exceeds local living wages in all the countries where it operates. However, no evidence was found that the company discloses the proportion of its direct workforce covered by collective bargaining agreements or its required working hours. The company discloses some indicators of workforce diversity, such as the age and gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. The company commits to promoting gender equality and women’s empowerment.

While the company commits to protecting personal data, no evidence was found of the company having 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. While the company has a policy prohibiting bribery and corruption, no evidence was found that it includes corresponding clauses in its business relationship contracts. No relevant disclosure was found of the company’s expenditure on lobbying activities.