Global Aluminium Sustainable Development Initiative

A Successful Worldwide Voluntary Industry Approach to Mitigation

Global Aluminium Sustainable Development Initiative

A Successful Worldwide Voluntary Industry Approach to MitigationJerry Marks

International Aluminium Institute

Pre-sessional Consultations on the TARMilan

28 November 2003

Jerry MarksInternational Aluminium Institute

Pre-sessional Consultations on the TARMilan

28 November 2003

International Aluminium Institute www.world-aluminium.org

• Twenty-five member companies around the world• Representation through CEOs and Presidents of member

companies• Administrative headquarters in London, UK• Represents 75% of world primary aluminium production• Cooperate with 20+ local and national aluminium

associations• Facilitates exchange of views among company executives

on matters of common interest• Projects carried out through working committees

composed of professional staff of member companies

GHGs From Primary Aluminium Production

Global average about 11 t CO2 eq/t Al

Cathode Block

Molten Aluminium

Feeder

GasesAnode

Electrolyte

Anode Carbon

1.7 t CO2eq/t Al

Electricity Input

15.6 MWh/t Al

4.8 t CO2eq/t Al

PFC Emissions

1.2 t CO2eq/t Al

CF4 and C2F6

CO2

CO2

Anode fabrication

0.3 t CO2eq/t Al

CO2

Alumina mining & refining

CO2

2 t CO2eq/t Al

Global Primary Aluminium Production Facilities

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Asia NorthAmerica

Russia &E. Europe

Europe Oceania LatinAmerica

AfricaMill

ion

s to

nn

es

pri

ma

ry a

lum

iniu

m 5.75.3

4.13.8

2.1 2.0 1.5

24.5 million tonnes primary produced in 2001

Recent Achievements

• Recorded 70% reduction in specific PFC emissions through 2001 from the 1990 baseline

• Partnered with WRI/WBCSD to develop worldwide consensus standards for inventory of GHG gases for primary aluminium production

• Partnered with USEPA to• Develop good practice measurement method for PFCs• Develop recommended updated Tier 1 and Tier 2 coefficients

for calculation of PFC emissions from primary aluminium production

The International Aluminium Institute, representing the majority of the world’s aluminium smelting Industry, has launched the Global Aluminium Sustainable Development Initiative

The 25 IAI Member Companies have committed themselves to eight voluntary objectives, with company achievement monitored and measured annually against a set of 22 key performance indicators.

What’s NEW?

The global socio-economic contribution of the Aluminium Industry

Transportation - Minimizing Energy Consumed

• High strength to mass ratio of aluminum products critical to minimizing fuel consumption in ground transportation and aerospace applications

Packaging - Preserving & Protecting Food Supply

• Impervious to oxygen & light aluminum packaging & foil preserves and protects the integrity of our food

• Effective packaging saves about 30% of the world’s food from wastage.

Sustainable aluminum products

Aluminium Industry Voluntary SDI Objectives

1. An 80% reduction in Perfluorocarbon (PFC) greenhouse gas emissions per tonne of aluminium produced for the Industry as a whole by 2010 vs 1990;

2. A minimum of a 33% reduction in fluoride emissions for the Industry as a whole per tonne of aluminium produced by 2010 vs 1990. This target figure to be reviewed after 3 years;

3. A 10% reduction in smelting energy usage for the Industry as a whole per tonne of aluminium produced by 2010 vs 1990;

4. A 50% reduction in the Lost Time Accident Rate and Recordable Accident Rate by 2010 vs 2000 for the Industry as a whole, with a review of the 50% target in 2006;

5. Implementation of Management Systems for Environment (including ISO 14000 or equivalent certification) and for Health and Safety in 95% of Member plants by 2010;

6. Implementation of an Employee Exposure Assessment and Medical Surveillance Programme in 95% of Member plants by 2010;

7. The Industry to monitor its recycling performance globally and to use the data to establish a voluntary target. The Industry will develop a global action programme in support of the voluntary targets, thereby encouraging a significant increase in the volume of aluminium metal from old (post consumer) scrap;

8. The Industry will monitor annually aluminium shipments for use in transport in order to track aluminium's contribution through light-weighting to reducing greenhouse gas (GHG) emissions from road, rail and sea transport.

Performance indicators - environmental

1. Global PFC emissions and average PFC emissions per tonne of aluminium produced;2. Aluminium shipment to the transportation sectors;3. Global annual total of old and new scrap recycled and the total of the resulting metal;4. Fresh water consumption (m3 per tonne of aluminium produced);5. The global percentage of plants with EMAS and/or ISO.14001 qualifications for

environment as well as the global percentage of plants that have Health and Safety management systems in place;

6. Average land used for mining and percentage of mined areas rehabilitated annually;

7. Global SO2/BaP/Particulate emissions and average emissions per tonne of aluminium produced;

8. Global fluoride emissions and average fluoride emissions per tonne of aluminium produced;9. The Global Energy Mix showing energy use, including renewable resources, for aluminium

production;10. Tonnes of bauxite residue deposited per tonne of alumina produced; tonnes of spent pot

lining deposited per tonne of aluminium produced; percentage of bauxite residue and spent pot lining processed or re-used; tonnes of salt slag deposited from dross sent for processing by Member Companies, per tonne of aluminium produced;

11. Global GHG emissions (CO2 equivalents) and average emissions per tonne of alumina and aluminium produced.

Performance indicators –economic and social

Economic• Global primary aluminium and alumina production statistics;• Use of aluminium (as consumption per head of the population);• Contribution to GDP (measured as net-added value);• Total direct employment (to include an indication of the indirect employment multiplier

effect);• Level of investment (to include new assets, maintenance, environmental protection and

research and development);• The wages ratio (average aluminium wages as compared to the national average wages).

Social• The global percentage of plants with formal mechanisms for consulting the local

community;• Percentage of plants with workforce training/education schemes and youth employment

programmes. (Training performance/hour/person/year);• Community Initiatives to improve health, education, environment and the local community;• The global percentage of plants that have employee exposure assessment and medical

surveillance programmes;• Global Recordable Accident Rate (number of recordable accidents per million working

hours) and Global Lost Time Accident Rate (lost time accidents per million working hours).

1.54

1.22

0.00.5

1.01.5

2.02.5

3.03.5

4.04.5

5.0

1989 1991 1993 1995 1997 1999 2001

Year

Spe

cific

PF

C E

mis

sion

s (T

eq

CO

2/t

Al)

Worldwide Primary Production

IAI Survey Participants

4.42

4.03

Reduction in PFC Emissions

Reduction in PFC Emissions

1.54

1.22

0.00.51.01.52.02.5

3.03.54.04.55.0

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Year

Spe

cific

PF

C E

mis

sion

s (T

eq

CO

2/t

Al) Worldwide Primary Production

IAI Survey Participants

4.42

4.03

0.88

Benchmarking - Percentile ranking for anode effect frequency by technology

0%

20%

40%

60%

80%

100%

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

Anode Effect Frequency

Cum

ulat

ive

Pro

babi

lity

PFPB

CWPB

SWPB

VSS

HSS

-10

0

10

20

30

40

50

0 2 4 6 8 10 12

Base Case

Net

CO

2 S

avin

gsN

et C

O2

Sav

ings

years

Life Cycle Modeling

1 kilogram of 1 kilogram of Aluminium Aluminium

Used Used In AutomotiveIn Automotive

1 kilogram of 1 kilogram of Aluminium Aluminium

Used Used In AutomotiveIn Automotive

Potential to EliminatePotential to Eliminate

20 kilograms of 20 kilograms of CO2 Emissions CO2 Emissions Over the Life of Over the Life of

an Average an Average VehicleVehicle

20 kilograms of 20 kilograms of CO2 Emissions CO2 Emissions Over the Life of Over the Life of

an Average an Average VehicleVehicle

Conservative

Optimistic

Aluminum products are recyclable

• Recycling only needs 5% of the energy as primary production

• Recycling of aluminium saves 84 million tonnes of greenhouse gases every year

100%

5%

0%

20%

40%

60%

80%

100%

New Aluminium Recycled Aluminium

En

ergy

• 1 kg of aluminum beverage cans is worth more to collectors than 10 kg of paper or 15 kg of plastics

• Recycling of aluminium improves the economics of recycling, minimizes litter and reduces waste to landfills.

• Aluminum is an “energy bank” – the original energy input can be recovered again and again every time the product is recycled

660 Mio tons

approx. 460 Mio

Metal loss - Destructive use ( e.g oxidation in steel industry)

- Natural oxidation (approx. 0.5 to 1 %)- Melt losses (thermal treatment of Aluminium)

- Metalworking (very small filings), Salt slag- Economic losses (recycling 'presently' not economical)

- Historic losses (e.g. metal losses during wars)

Global Metal Pool (Inventory)

- statistical totally available metal resources

Source: Günther Kirchner, 'Substitution of Primary Aluminium by Recycled Aluminium - Wishful Thinking or Reality ?'

Aluminium Products Are Sustainable

Since 1888, 660 million metric tons of aluminum produced

2/3 of Aluminium Ever Made Is Still in Productive Use

In Summary,Expectations set for: • Continuous improvement driven by the indicators; • Rigorous application of 22 performance indicators; • Annual reporting of performance against the Initiative’s

objectives and indicators; • Further voluntary objectives.

World aluminium usage and recycling 1950-2002

05

10

15202530

3540

1950 1960 1970 1980 1990 2000 2002

Mil

lion

ton

nes

Primary Production Used Scrap Recovery Total Usage

Global electric energy for electrolysis – historic development

0

10

20

30

40

50

60

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2001

kWh

per

kg A

l