ALCOA & RIO TINTO
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1
INDUSTRY OVERVIEW
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2
Outlook for Aluminium Industry
Aluminium represents the second largest metals market in the world
Growing demand for the lightweight metal is largely fueled by the booming Chinese economy
Stricter CO2 emission requirements will be introduced
Rising prices for substitute metals such as Zinc and Copper
Due to large consumer demand and wealthy consumers, the
Aluminium industry is highly profitable
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3
Resource Map
Europe
Middle
East
North
America
Asia
Africa
Pacific
South
America
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4
Resource Map
Central China
South Asia Australia
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5
Resource Map
Central Ural Mountains
Mediterranean
West & Central Africa
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6
Resource Map
Caribbean
South America
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7
The BIG-TEN
4500
4153
3965
3454
3600
2700
2034
1800
1576
1349
872
900
0
US RUSAL
US RUSAL
BHP Billiton
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Alcoa
Alcan
Alcoa
Dubal
Chalco
Hydro Aluminium BHP Billiton
Alcan
Rio Tinto
864
860
Dubal
Rio Tinto
Alba
Chalco
Alba
741
Century Aluminium
Hydro Aluminium
Century Aluminium
8
Companies Brief Introduction
Alcoa is one of the world’s leading manufacturers of primary aluminium, aluminium products and alumina.
The company is involved in aerospace, automotive, packing and construction industries, as well as in the field of commercial transportation and engineering solutions. Alcoa has 129,000 employees in 44 countries across the globe.
Rio Tinto Group is a diversified mining company among the top ten aluminium producers in the world. In 1997 after a series of takeovers and mergers, Rio Tinto was restructured. Aluminium production is one of the group’s seven lines of business. Rio Tinto Aluminium mines bauxites, produces alumina and primary aluminium, accounting for 26% of all aluminium manufactured in
Australia.
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9
CSR ANALYSIS
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Evaluation Approach
Environmental
Social
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Economic
11
Social
110000
107000
CO2
87000
82500
59000
59000
60647
Safety
55000
27500
0
Diversity
2007
2008
2009
2010
107000
2011
0
0.026
60647
Planned
Number of employees
0.105
Achieved
Variable Compensation Plan
41.25
0.125
0.13
0.12
0.11
0.079
55
0.13
0.115
0.053
0.12
0.12
2007
2008
27.5
0.12
2009
0.12
2010
2011
Incident Rate
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49.4
50.6
34.6
13.75
0
2007
2008
36.8
38
2009
2010
2011
Alcoa and Alcoa Foundation Combined Community Giving
12
Environmental
Refining
Smelting
Total
2005 Baseline
0.63
9.20
10.40
2010
0.59
6.80
7.95
2011
0.57
6.90
400
8.00
2020 Goal
8.30
2030 Goal
7.30
Goal: 20% Reduction
300
397
200
100
292
322
99
0
2005 Baseline
Progress: As of Dec. 2011 23.1%
2010
Goal: 75% Reduction
Global Primary GHG Emission Intensity (Metric tons of CO2)
2011
2020 Goal
0
2030 Goal
Progress: As of Dec. 2011 19%
Landfilled Waste (Thousands of metric tons)
18
6
13.5
4.5
9
18
17.5
16.5
14.4
4.5
0
3
12.6
5.3
4.4
4.2
2010
2011
1.5
2005 Baseline
2010
Goal: 20% Reduction
2011
2020 Goal
2030 Goal
Progress: As of Dec. 2011 8%
Energy Intensity - Global Rolled Products
(Gigajoules per metric ton of aluminum produced)
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0
2005 Baseline
Goal: 10% Reduction
4.8
2020 Goal
4
2030 Goal
Progress: As of Dec. 2011 21%
Freshwater-Use Intensity (Cubic meters