Alumina Limited

About this report

Boundary

Welcome to Alumina Limited’s 2017 Sustainability Update.  This report is designed to provide the reader with a description of the economic, social and environmental performance of Alumina Limited and its investment in AWAC (Alcoa World Alumina and Chemicals), our global joint venture with Alcoa.

This update supports Alumina Limited’s commitment to report on non-financial performance as outlined in our sustainability policyand our commitment to high-levels of transparent disclosure. It is specifically designed for the investment community including institutional and retail shareholders who are interested in the long-term sustainability of Alumina Limited, though it may also be of interest to representatives from government and local communities where AWAC operates.

Welcome to Alumina Limited’s 2017 Sustainability Update.  This report is prepared to provide the reader with a description of the economic, social and environmental performance of Alumina Limited’s joint venture investment in AWAC (Alcoa World Alumina and Chemicals), our global joint venture with Alcoa, the manager/operator of the AWAC operations.  

This update supports Alumina Limited’s commitment to report on non-financial performance as outlined in our sustainability policy and our commitment to high-levels of transparent disclosure. It is designed for review by all stakeholders in Alumina Limited though more especially for the investment community including institutional and retail shareholders who are interested in the long-term sustainability of Alumina Limited.

The report concentrates on the sustainability impacts of the AWAC business. The aim of the report is to give easy access to consolidated information about AWAC’s sustainability performance and lead to greater understanding about the quality and value of these assets.

Report's Scope

Welcome to Alumina Limited’s 2017 Sustainability Update.  This report is prepared to provide the reader with a description of the economic, social and environmental performance of Alumina Limited’s joint venture investment in AWAC (Alcoa World Alumina and Chemicals), our global joint venture with Alcoa, the manager/operator of the AWAC operations.  

This update supports Alumina Limited’s commitment to report on non-financial performance as outlined in our sustainability policy and our commitment to high-levels of transparent disclosure. It is designed for review by all stakeholders in Alumina Limited though more especially for the investment community including institutional and retail shareholders who are interested in the long-term sustainability of Alumina Limited.

 

The report concentrates on the sustainability impacts of the AWAC business. The aim of the report is to give easy access to consolidated information about AWAC’s sustainability performance and lead to greater understanding about the quality and value of these assets.

awac_pie_chart.jpg

Guide to entity references

Guide to entity references

Three main entities are mentioned throughout this sustainability report - Alumina Limited, AWAC and Alcoa Corporation. To aid the reader’s understanding, we have described each entity’s role below as well as the rationale for when these entities are referred to in the report.

Alumina Limited is the non-operating partner in the AWAC joint venture of which it owns 40 per cent. As this is an Alumina Limited’s sustainability report to stakeholders, the organisation is sometimes referred to in the first person (we, ours).

 

AWAC (Alcoa World Alumina and Chemicals) is the joint venture enterprise owned jointly by Alumina Limited (40 per cent) and Alcoa Corporation (60 per cent). This enterprise includes global bauxite, alumina and selected aluminium assets. AWAC references are used to describe:

  • the physical assets, interests and operations that form the basis of the joint venture (e.g. AWAC’s Huntly bauxite mine)
  • the outcomes and performance levels from the operation of these assets (e.g. AWAC’s production levels, AWAC’s revenue, emissions, resource usage, market position)
  • the governance procedures and frameworks that determine the strategic directions, investments and acquisitions of the enterprise (e.g. the AWAC Strategic Council).
  • Legally the joint venture is conceived as an unincorporated joint venture based on Agreements between Alumina Limited and Alcoa Corporation. Alumina Limited holds direct ownership in some operating entities of the AWAC enterprise

AWAC produces and sells alumina, bauxite and aluminium into the global market. Refer to the operations map.

Alcoa Corporation (Alcoa) owns 60 per cent of the AWAC joint venture and is the operating manager of the enterprise. Based on this role, references to Alcoa are used in relation to joint venture partner undertakings as well as actual on-site management of AWAC facilities, including:

  • the management team and employees who carry out day-to-day activities
  • policies, procedures and processes that are applied to everyday activities at AWAC operations.

 

Measurement techniques

Alumina Limited as a non-operating joint venture partner relies on the data measurement techniques and bases of calculations employed by AWAC's manager/operator, Alcoa. Alcoa uses a variety of internal standards and data collection systems, as well as a rigorous internal and external audit process. Alcoa conform to external data reporting standards, such as the Carbon Disclosure Project, and comply with government statutes like the US Sarbanes-Oxley Act. 

Alcoa as manager/operator of the AWAC enterprise, are responsible for the data management, data collection and calculation of sustainability metrics such as CO2 emissions. Alcoa engaged First Environment Limited to provide limited assurance on their consolidated Scope 1, and Scope 2 greenhouse gas (CO2, CH4, N2O, FPC’s and SF6) emissions data (that includes AWAC operations) under ISO 14064, Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions. Limited assurance was also provided for Scope 3 emissions in relation to purchased goods and services; fuels and energy related activities and processing of intermediate products sold to customers.  In 2018, Alumina Limited submitted an Investor CDP (Climate Change) report and also a CDP Water Information report in respect of Alumina Limited’s equity interest in AWAC for the 2017 operation year. It is Alcoa's intent to provide future water data assurance.

External assurance

Alcoa as manager/operator of the AWAC enterprise, are responsible for the data management, data collection and calculation of sustainability metrics such as CO2 emissions. Alcoa engaged First Environment Inc. to provide limited assurance on their consolidated Scope 1 and Scope 2 greenhouse gas (CO2, CH4, N2O, FPC’s and SF6) emissions data (that includes AWAC operations) un the ISO 14064, Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions.

In 2018, Alumina Limited submitted an Investor CDP (Climate Change) report and also a CDP Water Information report in respect of Alumina Limited’s equity interest in AWAC for the 2016 operation year. It is Alcoa's intent to provide future water data assurance.

Feedback

 Your comments on Alumina Limited’s sustainability reporting are welcome, including feedback on areas for improvement such as:

  • Information quality, quantity and relevance
  • Visual representation  
  • Report format and
  • Report accessibility.

 

You can provide your comments via email or through contacting:  

Colin Hendry 
Assistant Company Secretary 
Alumina Limited
GPO Box 5411, Melbourne
Victoria 3001
Australia

Alumina Limited