Alumina Limited (Alumina) accepts the Intergovernmental Panel on Climate Change (IPCC) assessment of climate change science that warming of the climate is occurring, with clear human influence and unavoidable physical impacts. Alumina acknowledges the physical impact of climate change such as decreased rainfall water scarcity and rising seal levels; with economic and regulatory risks to business due to the transition to a low carbon economy.
Alcoa World Alumina and Chemicals (AWAC) is a global bauxite and alumina business that is a joint venture between Alumina Limited, non-operator (40% owned) and Alcoa Corporation, manager/operator (60% owned). AWAC is committed to reducing the amount of energy it consumes through operations efficiency and technological advances, all of which lowers its energy costs and reduces its green house gas (GHG) emissions.
Alumina expects to see growth in demand for aluminium for uses such as more energy-efficient buildings; fuel-efficient vehicles; and sustainable food and beverage packaging.
To further support AWAC, Alumina will:
- Work with the AWAC joint venture, and strive for AWAC to reduce its direct and indirect emissions (Scope 1 and 2) by 45% by 2030 (from a 2010 baseline), and to net zero by 2050.
- Work with AWAC to identify and assess climate change risks, adapt to changing climate risk and seize opportunities across AWAC to produce shareholder value. Due to the energy and carbon intensive nature of our operations, securing low-cost, low- environmental-impact and long-term energy is a focal point of our energy strategy, with the aim to minimise impacts and maximise value.
- Work towards aligning disclosures to the recommendations of the TCFD, to aid in providing information to investors and other stakeholders.
- Explore how an internal carbon price could be used in our investment projects and strategic decision-making processes – to help to prepare our business for regulatory changes.
- Work on developing climate change scenario analysis to assess our future risks in the face of uncertainty. This would include stress testing scenarios such as ‘2 degrees’ and ‘beyond 2 degrees,’ to help us understand the risks to our assets, operations and supply chains.