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Assurance
As part of our consultation with stakeholders, we have discussed options around independent verification of our sustainability reporting. Our finding is that no common view exists on a single credible source of verification that will satisfy every individual stakeholder group.
We remain committed to the principle of a credible and meaningful verification process and continue to explore this issue while incorporating other means of assurance into not only our sustainability reporting but also our projects and processes worldwide.
Report Review Panel
For our 2007 sustainability reporting, we convened a panel of external experts and Alcoa representatives to help us identify gaps in our reporting and take an initial step toward incorporating third-party assurance into our process. While this pilot panel did not provide assurance on our data, it did advise us on content.
Details about the panel, including the panel commentary on our 2007 report, can be found in the Sustainability Report Review Panel section.
Internal & External Processes
In addition to our comprehensive internal metrics systems, we employ a variety of processes to bring assurance that our operations are transparent, the information we report is accurate, and what we believe is reality truly is. Examples include the following:
- Internal Audit: We have a rigorous internal audit process that evaluates our locations on five areas: environmental; health & safety; operational excellence; financial & business processes; and information technology. Additional information can be found on the Internal Audit web page.
- SEC Filings: We file significant information, including our annual and sustainability reports, with the U.S. Securities and Exchange Commission (SEC) and are subject to its rules and regulations.
- Community Advisory Panels: Under the Alcoa Community Framework, each of our locations is encouraged to convene a community advisory panel to provide a forum for ongoing interaction between the plants and area residents. Additional information can be found in the Community Consultation section.
- Iceland Stakeholder Advisory Group: A 40-member stakeholder advisory group that consisted of both project proponents as well as opponents developed indicators to measure the performance of a new Alcoa smelter and related government-owned hydro facility in Iceland.
- Annual Employee Survey: This survey, translated into multiple languages, helps us identify best practices for increasing employee engagement.
- Health and Safety Committees: Each location has various task, department, ad hoc, and other committees to develop and implement health and safety programs based on the location's strategic health and safety plan. These leadership groups include a cross-section of personnel from the facility.
- Business Conduct and Conflict of Interest Survey: Each year, we send a business conduct survey to 12,000 employees asking them to certify their compliance with Alcoa's Business Conduct Policies. In 2007, the survey process earned a 5 (excellent) in an internal audit.
- Environmental Improvement Plans: Many of Alcoa's Australian operations work with the local communities to develop environmental improvement plans for each location.
- Environmental and Social Impact Assessments: Prior to constructing new facilities or expanding existing ones, we conduct an environmental and social impact assessment to determine what effects the project would have on the community.
- External Partnerships: We partner with many external organizations on a project or ongoing basis to address operational and community issues. Examples can be found in the Community section.
External Recognition
Alcoa has earned numerous awards for its work around the world. Many of these are bestowed after quite rigorous research and benchmarking processes by independent reviewers.
One example is the Dow Jones Sustainability Indexes, which provide asset managers with reliable and objective benchmarks to manage sustainability portfolios. Alcoa has been included in the index for six years.
We also have been awarded the highly-regarded Ethics Inside Certified™ seal, which is the only independent verification of a company's ethics and compliance program and practices. The certification is exclusively awarded to companies that can demonstrably prove a superior employee and leadership culture that promote ethical business practices. Such companies also must have adequate compliance systems and programs to reasonably prevent compliance failures.
A partial list of other recognitions in recent years can be found in the Awards section.
External Standards
Laws, rules, and mandated standards are essential components of civilized society. We must have reference points to help guide direction and define right from wrong. Yet, in isolation, they cannot guarantee sustainability. Practically no rule book can be capable of describing appropriate responses to every possible combination of circumstances. That is why we rely primarily on our values supported by internal policies and standards to guide our behavior.
It is not the role for companies to sign on to international laws and conventions, such as the U.N. Universal Declaration of Human Rights and the International Labor Organization conventions. That is the responsibility of governments. However, we use these to guide our internal policies and standards. In many instances, we are in alignment with them.
If an international convention is required by the government of a country in which an Alcoa facility is located, our facility will abide by that convention since our locations must follow the laws of the country in which they are located. When our internal requirements exceed those of the government, our location must abide by the more stringent standard.
A key challenge in our growth strategy is to understand and accommodate the different customs and sometimes values that we encounter during our work in various countries. In these situations, we understand that we must engage with these stakeholders to resolve any discrepancies without either renouncing our values or expecting to change local laws. We don't have a perfect answer, but we believe that, as a first and continuing step forward, dialogue will help parties understand each other's viewpoints.
As an industry leader, we do feel it is important to help develop guidelines and standards that will move the industry closer to sustainability. As such, we continue to actively participate in the development and achievement of the International Aluminium Institute's "Aluminium for Future Generations Sustainable Development Programme." This program comprises 13 voluntary objectives and 22 performance indicators that are designed to encourage continual improvement in the industry's sustainability performance.
External Principles and Initiatives
We subscribe to or endorse the following externally developed principles or initiatives:
- The Business Roundtable Principles of Corporate Governance
- International Aluminium Institute Sustainability Principles
- International Council on Mining & Metals Principles
Certifications
We continue to operate with a tiered ISO 14001 certification structure, which consists of a global certificate, business unit level certificates, and location level certificates.
All Alcoa locations and business units can seek ISO certification under the global certificate, reducing the overall cost of ISO certification. Locations that select other registrars can continue their location-specific registration if they choose. Where synergies and business value exist, business unit and location environmental management systems are to be certified through the Alcoa global certificate.
We have established a target to have all location EHS management systems consistent and linked with the corporate EHS management system. As of the end of 2007, 111 of our locations throughout the world were certified to ISO 14001.
We also had 16 locations certified to the Occupational Health and Safety Management System specification (OHSAS 18001) and three locations that were SA8000 (social accountability) certified.
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