Climate Change

Climate change was identified as a material issue for our business and our stakeholders

We recognise that due to our interest in AWAC, an energy and emissions-intensive business, we have a role to play in seeking to reduce emissions and build resilience to climate change impacts. Alumina is committed to providing meaningful and relevant disclosures of climate-related risks and opportunities for AWAC.

Our Sustainability Update is informed by GRI Standards and we also disclose in the Carbon Disclosure Project (CDP). Our 2021 Sustainability Update incorporates a complete set of TCFD disclosures which complements our “net zero by 2050” statement and accompanying decarbonisation strategy.

View Alumina Limited’s Climate Change Position Statement and Net Zero Statement below.

  • Alumina Limited Climate Change Position Statement
  • Alumina Limited Net Zero Statement

Climate Change Position Statement

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.

Net Zero Statement

Alumina Limited will, through working with the AWAC joint venture, 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.

AWAC’s ability to reach net zero is contingent on certain factors, including:

  • Advancements in technologies to commercial viability, such as Mechanical Vapour Recompression (MVR) which AWAC is evaluating
  • The ability of AWAC’s aluminium smelter to use inert anode technology, such as ELYSIS which our joint venture partner Alcoa is developing with its partners
  • The availability of cost competitive renewable energy generation, which will be required to power new technologies and displace fossil fuels; and
  • Government policy settings that support investment in decarbonisation and options to offset remaining emissions.