Alumina Limited’s Board is ultimately responsible for the overall management of the company and for formulating and establishing its strategic goals, with the aim of creating and delivering shareholder value through maximising the performance of Alumina's interest in the Alcoa World Alumina and Chemicals (AWAC) business.
In regards to sustainability governance for AWAC, Alumina Limited’s principal interest is the integration of sound environmental, social and governance practices alongside sustainable financial performance.
This is achieved through:
- discussing AWAC’s long term strategies and objectives with managing partner Alcoa
- supporting the policies and practices that are implemented in AWAC companies to ensure sustainable operations
- reviewing reports of non-compliances including for environmental and labour matters.
In regards to Alumina Limited’s oversight of sustainability, in December 2019 the Board decided to bolster its oversight by the formation of a dedicated Sustainability Committee. The Sustainability Committee will operate effective from 1 January 2020. The role of the Sustainability Committee is to assist and advise the Board of Alumina Limited in exercising its authority in relation to matters such as climate change, health and safety, environment and social and community matters as described in its Charter.
Alumina Limited assesses potential sustainability risks and opportunities through a Risk Management Framework. The Risk Management Framework describes the risks identified by Alumina Limited as potentially significant for the current operations and profitability and/or the long-term value of the Company. The Risk Management Framework also indicates the current assessment of Probability and Impact, mitigated by the strategies and risk mitigation actions currently in place and Action Plan.
The Board, supported by the Audit and Risk Management Committee, regularly review and challenge the risk assessment and action plans.
In late 2018, Alumina Limited conducted its most recent materiality assessment to identify sustainability topics that reflect an organisation’s most significant environmental, social and economic impacts and that are most important to its stakeholders.
The following topics were determined to be most material to Alumina Limited:
- Climate change
- Energy and emissions
- Waste (including dam management)
- Safety and health
- Community engagement and investment
- Business integrity
The materiality assessment has identified key topics to inform Company reporting and strategy. These topics will be investigated in greater detail in the forthcoming 2018 Sustainability Report.