Alcoa Archives - SustainCase - Sustainability Magazine Insights on how you can protect the environment, maintain and increase the value of your company, through a structured CSR/Sustainability process with the use of the GRI Standards. Learn how Today's Best-Run Companies are achieving Economic, Social, and Environmental Success - and How You Can Too... Mon, 06 Mar 2023 14:28:21 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.4 Case study: How Alcoa creates economic value for its stakeholders https://sustaincase.com/case-study-how-alcoa-creates-economic-value-for-its-stakeholders/ Fri, 09 Dec 2022 07:09:55 +0000 https://ccprowebs.com/new-sustaincase.com/?p=14514 Alcoa is a global industry leader in bauxite, alumina and aluminium products, built on a foundation of strong values and operating excellence. This case study is based on the 2020 Sustainability Report by Alcoa, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing. Abstract Alcoa seeks to generate value for its stakeholders, stimulating economic activity at the local […]

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]]> Alcoa is a global industry leader in bauxite, alumina and aluminium products, built on a foundation of strong values and operating excellence. Creating sustainable value for all its stakeholders and the communities where it operates, is one of the three pillars of Alcoa’s sustainability strategy.  Tweet This!

This case study is based on the 2020 Sustainability Report by Alcoa, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Abstract

Alcoa seeks to generate value for its stakeholders, stimulating economic activity at the local and regional levels, by providing stable, fair-paying jobs, procuring goods and services from local suppliers when possible, paying income and other taxes, and investing in community infrastructure and initiatives. In order to create economic value for its stakeholders Alcoa took action to:

  • create economic value for employees
  • create economic value for suppliers
  • create economic value for governments

What are the material issues the company has identified?  

In its 2020 Sustainability Report Alcoa identified a range of material issues, such as occupational health and safety, ethics, transparency and good governance, regulatory compliance, human rights. Among these, creating economic value for its stakeholders stands out as a key material issue for Alcoa.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Alcoa engages with:

Stakeholder Group
Stockholders
Employees
Customers
Suppliers
Government representatives and regulators
Non-governmental organisations
Local communities
Media

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Alcoa conducted a survey of external stakeholders, including those representing customers, communities in which it operates, government, non-governmental organisations and industry associations.

What actions were taken by Alcoa to create economic value for its stakeholders?

In its 2020 Sustainability Report Alcoa reports that it took the following actions for creating economic value for its stakeholders:

  • Creating economic value for employees
  • In 2020, Alcoa spent US$ 1.5 billion in labour costs. These include compensation and benefits for employee services rendered plus employee expenses for external training, transfer and relocation, expatriate costs, workers’ compensation, travel, recognition and rewards, medical expenses, meals, recruitment, transportation, education, work clothes and other employee-related expenses.
  • Creating economic value for suppliers
  • In 2020, Alcoa spent US$ 8.2 billion for procurement.
  • Creating economic value for governments
  • In addition to the economic activity it stimulates at the local and regional levels, Alcoa also contributes to the communities in which it operates through a variety of tax payments. Accordingly, in 2020, Alcoa paid US$ 169.4 million in income taxes.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed

Disclosure 201-1 Direct economic value generated and distributed corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
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References:

This case study is based on published information by Alcoa, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.alcoa.com/sustainability/en/pdf/2020-Sustainability-Report.pdf

Note to Alcoa: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

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