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Atmosphere accumulated alarmingly high level of harmful chemical like CO2, CFCs & pesticides Presence of chemicals in natural resources ( tree, soil, water bodies) led to Biotoxins and Organchlorines reaching human body.

Depletion of irrecoverable natural resources and increasing pollution level are price paid for Industrial & Economic development

Instances when companies profiteering by blatantly misusing natural resources, environmental protectionists protest

Main factors behind rising concern about SD are: Global population boom Environmental impact of Social, Economic & Industrial activities

In 1972: Concept behind SD 1st mentioned in book The Limits to growth by Denis Meadows.

Term formally coined by United Nations Conference on Human Environment in Sweden.

Since then SD has been discussed in global forums like UNCED & also in civic meetings of small cities. IISD in association with Deloitte and Touche provided definition of SD to corporate context : For the business enterprise, SD means adopting business strategies and activities that meet the needs of enterprise and its stakeholders today, while protecting, sustaining & enhancing the human & natural resources that will be needed in future. During 1972 and late 1980s-One of the 1st serious effort towards SD in corporate sector; undertaken by petroleum companies in US.

In 1987: WCED gave most widely used definition of SD : SD seeks to meet the needs & aspiration of present without compromising the ability to meet those of future. WCED identified 8 key issues to ensure that development was sustainable Population & human resources; Energy, Food security, Urban challenge, Species & ecosystem, Industry & conflict, Managing the commons and Environmental degradation Three areas to be focused : Economy Tackle problem of poverty & underdevelopment Social Enhancing literacy, eliminating poverty, hunger & drought, providing for good health care & education Environment Reducing wastage, Hazardous gas emission & chemical discharges

Alcoa focused on all three; emerged as global level SD champion.

ALCOA - background
2020 2000 1980 1960 1940 1920 1900 1880 1860 1886 1888 1893
Attracted manufacturers- due to PITTSBURG REDUCTION versatility of COMPANY.low cost Aluminum and availability. Onset as on internal Company focusedWorld War II - Increased Alcoa emerged of Worlds largest Al demand, benefited More then 2000 growth, world producing primaryAlcoa, Al company; wide partnership, Adopted name ALCOA ( production Alumina; acquisition commercialized used of new in Europe & US Al, Fabricated Al &doubled, set up Aluminum Company of Company established Bauxite and cost reduced to manufacturing plants aluminum active in industry -mining, America They managedin Arkansas; AlAl ) mines to reduce the3 20 cents/pound Hall in association with refining, smelting, fabricating etc, price of aluminum & Canada; Al smelters in NY to 78 Arthur Viningcents/pound which is $ Davis- 1st time Charles Martin Hall; refinery in Illnosis production of aluminum for 1888 4.96/pound in discovered high volume, low commercial use cost smelting process producing Aluminum 1945

2000 1990





1820 1 2 3 4 5



Comprehensive global expansion exercise 1990s
-Led an four fold increase of ALCOA -Employee base doubled Shortcomings in Global SD Initiatives -Unstructured and un- coordinated -Lack of ALCOA ethics and compliance program among its employees. To overcome the shortcomings and initiate a smooth SD functioning across the globe ALCOA - Launch Ethics & Compliance Program - ABS (Taking SD to more strategic level)


ABS was design to manage all the operational level activities carried out at ALCOA worldwide.

A set of integrated tools and principle aiming to achieve 3 main objectives:

1) Make to use : Single- Piece Production . 2) Eliminate Waste : Expose and Solve problems of waste. 3) People Linchpin the system : Make to inventory to Make to use Result : All these initiatives ALCOA was honored with several environmental and health safety awards . Also the only company with a very effective and innovative environmental strategy by HARC & NRCBSD.


15 locations of ALCOA were certified with ISO 14001 standard and in the same year itself the company formulated a 2020 strategic framework. In 1999 ALCOA conducted an indepth review of its environmental management systems

ALCOA donated $583,000 to support worldwide environmental,safety and health projects.

ALCOA implemented a tool referred as Life Cycle Analysis.


In 2001 ALCOA came out with an innovative technique to recycle and reduce the hazardous impacts of bauxite residue.

ALCOA produced lead free wiring for automobiles which was not harmful to the environment.

Modern techniques with the knowledge of the local inhibitants were undertaken by ALCOA as a part of it mine reclamation initiative.

In this year ALCOA discovered a breakthrough process in the field of aluminium metallurgy with respect to automobiles. ALCOAS Warrick power plant in INDIANA successfully constructed a catalytic reduction system.

In 2002 ALCOA developed a web based EHS deployment plan and scoreboard system.

Its Australian plant launched a comprehensive environmental awareness and training programmer for its employees and contractors.

Sustainabily developing in the coming future.

ALCOA took a giant leap towards sustainability by announcing that its new plant in Eastern Iceland would eliminate health and safety hazards.

In 2003 ALCOA completed its program of planting 1 million trees and set itself a new target of planting 10 million trees by 2020.

Concept of Sustainable Development

Concept of SD 1st mentioned in the 1972 book The Limits to Growth Paul Hawkens book The Ecology of Commerce defines SD as an Economic State IISD defined SD which could be applied to the Corporate Context WCED had 3 Broad Objectives Re-examine critical environmental & developmental issues Propose new forms of International Co-operation Raise Levels of Understanding & Commitment to Action WCED identified 8 Key issues: Population & HR, Energy, Food Security, Urban Challenge, Species & Ecosystems, Managing the Commons, Industry & Conflict, Environmental Degradation

Concept of Sustainable Development

Natural Resources & Importance in SD

Conserving Irreplaceable Resources & Environmental Maintenance an Integral part of SD People depend on Natural Resources for their Survival Diversity of Natural Resource provides enormous Economic & Community benefits Managing Natural Resources base in sustainable & integrated manner essential for SD

Principles of Agenda 21
Humankind is at the centre of SD As long as other countries Environment is not disturbed, countries free to use resources according to politics Environmental Protection Complementary part of Development Process Countries have common but different levels of Responsibility in Environmental Protection the one who pollutes pays it principle should be used to make Environmental costs international

Critically examine the various sustainable development initiatives taken up by Alcoa over the decade. What were the different areas that the company addressed while executing these initiatives? discuss how the company benefited from its SD focus.

Sustainable Development
Health and Quality of life Community consultative committee Local and regional community development programs

Sustainable consumption Sustainable production Integration of environmental concerns in decision making

Reduction of gas emission Biodiversity Energy efficiency Pollution Conservation of natural resources Waste management Development of clean technology