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Transforming Our Communities

In 2014, Alcoa Foundation’s Board of Directors and staff thought a lot about how we must adapt and transform to help meet the needs of Alcoa’s communities in a changing world and industry. The evolution of the Foundation’s corporate social responsibility priorities are aligned with Alcoa’s strategic transformation as an innovative, multi-material leader in high growth markets.

Like the corporation, the Foundation’s transforma-tion is guided by Alcoa’s Values: respect for the individual; an ethical approach to everything we do; care for the natural environment; and a sustained investment in educating youth and training workers worldwide. For a transformation to succeed and have true impact, we must continue to do the right things and do them the right way.

Achieving real impact requires that we move toward a deeper engagement with our communities and non-profit partners. Our employees are compounding Alcoa’s local impact by dedicating thousands of volunteer hours in communities around the world. Many of them participate in skills-based volunteerism —lending their talents and know-how in ways that reflect both their career passions and their deep desire to make a difference in peoples’ lives. Still others are serving on local boards and community groups in towns all over the world, offering project management, finance, and leadership support. The era of checkbook philanthropy has surely ended; just take a look at any of the Alcoa Foundation- funded programs, and you will find Alcoans who are “all in.”

As the philanthropic arm of a major manufacturing company with global reach, Alcoa Foundation has deepened our commitment to advancing STEM education and training for advanced manufacturing workers. At the same time, we are helping to change the perception of manufacturing for students, teachers and parents. Sustained economic growth in every country fundamentally depends on a positive regard for careers in manufacturing. So, together with our non-profit partners, we are giving students an unprecedented view of the spectrum of STEM careers available to them. In the environmental area, the Foundation reinforces Alcoa’s commitment to reduce its absolute greenhouse gas emissions by 50 percent in the U.S. by 2025, and to deploy its innovative technologies to sustain a low carbon future.

Responding to Alcoa Chairman and CEO Klaus Kleinfeld’s caution that “to stand still is to slide backwards,” Alcoa is tapping the ingenuity of every Alcoan as it drives its strategic transformation. We at Alcoa Foundation are applying the same spirit of reinvention and emphasis on impact to enhance our communities and achieve society’s most important goals.

Sincerely,

Esra Ozer PRESIDENT, ALCOA FOUNDATION

A Letter From Our President

Alcoa Foundation invests in hundreds of communities around the world—where Alcoa has a presence—to address local needs in a rapidly changing world.

All of our funding and engagement priorities are guided by two key themes:

n Environment Bring about measurable and systemic improve-ments in environmental sustainability through best practices in environmental management and pioneering solutions.

n Education Support STEM education and manufacturing workforce training as a path to sustained economic vitality around the world.

One-half of Alcoa Foundation’s budget is earmarked for our global signature partnerships. The balance is allocated to Alcoa operating locations that develop hands-on, localized strategies to address specific community needs and interests.

Our Global Mission

900,000 service hours

Engage our employees

$11.1 million to educational causes

Prepare tomorrow’s leaders

$6.7 million to environmental causes

Promote environmental stewardship

Environmental sustainability is an essential aspect of responsible and successful business. For multinational companies to effectively measure and report their sustainability practices and achievements, there needs to be reliable and agreed-upon environment standards. That is why Alcoa Foundation works with global non-profits to develop life cycle assessment and measurement tools, water management indexes and other methodologies to analyze environmental footprints in a holistic manner.

Environmental sustainability extends beyond wildlife protection, nature conservation and recycling, and is closely tied to the products we use and the places we live. Starting in 2010, Alcoa Foundation initiated a portfolio of partnerships focused on the role and impact of building design and transportation on the environment.

WORLD RESOURCES INSTITUTE Alcoa Foundation formed a strategic relationship with World Resources Institute (WRI) in 2006 to support the development of innovative solutions that address climate change and encourage sustainable economic development. We supported WRI’s work in China where researchers in low carbon energy laboratories worked on technology transfer issues and carbon capture and storage methods. AF also supported WRI’s Utilities of the Future project, which aims to create unique collaborations between utilities and their commercial / industrial customers to incorporate renewable energy in the grid, reduce transaction costs and deliver more value for ratepayers and shareholders.

CARBON DISCLOSURE PROJECT Alcoa Foundation partnered with the Carbon Disclosure Project to develop a Water Management Leadership Index, which ranks publicly traded companies on their water stewardship and management of water-related risks. The index will help corporations understand the supply chain exposure to water issues that could substantially affect business operations, revenue or expenditure. The Carbon Disclosure’s ranking will also elevate the importance of water as a core element of corporate governance and responsibility.

CENTER FOR AUTOMOTIVE RESEARCH Alcoa Foundation supports the Center for Automotive Research

(CAR) in its research on vehicle lightweighting technologies.

Our partnership is advancing CAR’s efforts in cost benefit

analysis of solutions that incorporate lightweight materials

in the design phase. In 2014 they trained 400 automotive

professionals in vehicle lightweighting.

Promote Environmental Stewardship

Standards Leadership

Sustainable Design

“Gaining a thorough understanding of what it takes to produce lighter weight vehicles will help advance lightweighting technologies.”

— Dr. Jay Baron CAR PRESIDENT AND CEO

4 | 2014 ALCOA FOUNDATION ANNUAL REPORT

Alcoa Foundation recognizes the need for environmental awareness and community ambassadors to tackle the growing concern around the loss of biodiversity and other sustainability issues. To address this, three program partners comprise what Alcoa Foundation calls its Environmental Literacy Triple-Play. Keystone Science School trains teachers; NatureBridge inspires students from Alcoa communities; and Earthwatch Institute engages Alcoa employees. In 2014, 30 local teachers, 25 students, and 25 global employees participated in these programs, and became passionate stewards for environmental science as they returned to their schools, classrooms, work places, and neighborhoods.


Sustainable Design (CONT.)

Environmental Literacy

Our partners at Keystone Science School, NatureBridge, and Earthwatch Institute inspire and educate our com-munities’ teachers, students and our employees to become environmental ambassadors.

CRADLE TO CRADLE The Cradle to Cradle Products Innovation Institute developed

a new web-based education program for product designers

with support from Alcoa Foundation. The free course—

which provides strategies, tools and examples of the five

quality categories of the Cradle to Cradle Certified Products

Program—challenges participants to explore and apply

design strategies to ensure that the materials that go into

each product can return safely to industry or nature at a

product’s end of life.

PILLARS OF SUSTAINABLE EDUCATION Pillars of Sustainable Education is a cross-sector collaboration

that was launched to bring to life community-based projects

that incorporate innovative design, materials and building

systems. Together, Alcoa, Alcoa Foundation, and seven univer-

sities in five countries are working to educate the next gen-

eration of architects, engineers and material designers while

supporting real-world design-build projects that positively

impact both the environment and the local community.

At Tsinghua University’s school of Architecture in Beijing, a project team will research, design and build an experimental apartment that will lessen the cooling and heating loads using high performance materials and low-carbon technology.


Across the globe, Alcoa Foundation is partnering with leading organizations to promote biodiversity, conservation, reforestation and responsible land and water use.

GLOBAL RELEAFAlcoa Foundation and American Forests have joined together

for the Global ReLeaf Partnership for Trees Program, a multi-

year initiative to plant hundreds of thousands of native tree

species on damaged and degraded sites around the world,

and to engage local communities in the restoration of forest

ecosystems. This initiative, which commenced in 2011, builds

toward Alcoa’s goal of planting 10 million trees by 2020 and

supports American Forests’ mission to protect and restore

forests. For a project to qualify for this program, Alcoa sites

and employees work with qualified local non-profit groups

and agencies to develop forest restoration proposals and then

participate in the tree planting.

THE RECYCLING PARTNERSHIPThe Recycling Partnership, previously called Curbside Value

Partnership, focuses on improving residential recycling.

Curbside recycling is the easiest way for Americans to recycle,

yet there is still so much opportunity for improvement.

The Recycling Partnership bridges the gaps between the

communities and the industries that benefit from recycling

by creating campaigns that power local recycling programs.

They help solve and energize curbside recycling programs.

NATIONAL FISH AND WILDLIFE FOUNDATIONAlcoa Foundation’s biodiversity partnership with National

Fish and Wildlife Foundation (NFWF) provides support to

six conservation projects across the United States. The

six grants announced in 2014 will restore wildlife habitats,

revitalize waterways, establish and enhance native forests

and engage thousands of volunteers in environmental

stewardship projects.


Natural Capital

Since the beginning of the Ten Million Trees program, almost 70,000 trees have been planted in Hungary alone. Alcoa volunteers and their families planted trees in Budapest last October as part of an anniversary event.


Prepare Tomorrow’s Leaders

Alcoa Foundation partners with leading education providers to deliver innovative STEM educational materials and expose our youth to exciting STEM career opportunities. Together with our partners, Alcoa Foundation is educating the next generation of makers, innovators, and leaders.

JUNIOR ACHIEVEMENT

Alcoa Foundation’s support has made it possible for Junior

Achievement (JA) to develop a STEM career curriculum that

gives educators and volunteers the tools and materials to

promote STEM capable professions and encourage young

people to pursue those careers. Translating this information

into multiple languages and sharing it with local JA chapters

worldwide has multiplied the value of the work and positively

changed the views of countless students.

ACADEMY OF MODEL AERONAUTICS The Academy of Model Aeronautics, through its partnership

with Alcoa Foundation, designed and produced “Flight Research

Kits” to drive student interest in STEM. The kits are free

for teachers or other group leaders and contain everything

needed for an engaging educational lesson in the basics of

aerodynamics. The easy-to-build gliders have been built by

thousands of students and continue to be a source of fun and

experiential learning.

STEM Education

“Alcoa Foundation’s partnership made it possible for us to inform young people all over the globe of the exciting career opportunities in STEM fields, furthering Junior Achievement’s mission of inspiring and preparing young people to succeed in a global economy.”

— Asheesh Advani PRESIDENT & CEO, JA WORLDWIDE

“The innovative ‘STEM Takes Flight’ program with Alcoa Foundation uses easy-to-build model gliders to engage young students in engineering and design. Teachers have leveraged this fun activity to teach their students these concepts and inspire children to consider STEM careers.”

— Dr. Gordon Schimmel EDUCATION PROGRAM DEVELOPMENT,

ACADEMY OF MODEL AERONAUTICS



Alcoa Foundation works to challenge misperceptions of the manufacturing and engineering industry; attracts young people to these promising fields by educating teachers and families; and helps youth to experience the challenge and excitement of manufacturing and engineering careers.

Alcoa Foundation works with partners to devise pioneering and employer-driven methods to develop the advanced manufacturing workforce of the future.

DISCOVERY EDUCATION

Alcoa Foundation and Discovery Education, the leading

provider of digital content and professional development

for K-12 classrooms, launched “Manufacture Your Future,”

a new online destination designed to inspire thousands

of students in grades 6–12 to take the first step towards

exploring and pursuing today’s manufacturing careers.

In addition to the free curriculum, Manufacture Your Future

launched its first virtual field trip on National Manufacturing

Day, October 3, 2014. Students got an inside look at careers

in advanced manufacturing through an interactive event

hosted live from an Alcoa facility. More than 150,000

students from 4,300 schools across the US participated.

Raising the Profile of Manufacturing

Workforce Development

“With a high need to fill manufacturing jobs across the country, our two companies came together to build a program that is centered on edu-cating today’s young people about how these roles are critical in today’s global economy. We worked hand- in-hand to create a robust program with engaging resources that builds excitement around post-secondary manufacturing career opportunities.”

— Mary Rollins SENIOR VICE PRESIDENT OF PARTNERSHIPS,

DISCOVERY EDUCATION

INSTITUTE OF INTERNATIONAL EDUCATION Alcoa Foundation and the Institute of International Education

(IIE) have worked with local non-profit partners and manufac-

turers to identify or create meaningful internship opportunities

for underserved youth. In communities across the world, the

Alcoa Global Internship program matched students with local

manufacturers to develop their skills and employability while

revealing another source of talent to employers.

“The Alcoa Foundation Global Internship program has provided real-world working experience to underserved youth in Alcoa communities worldwide. Through our partnership, we have provided an invaluable opportunity for many young people to see what 21st century advanced manufacturing looks like and to learn the skills needed to have a successful and rewarding career.”

— Emil Levy IIE SENIOR PROGRAM OFFICER

The “Manufacture Your Future” homepage


Rob Woodall, Plant Manager at Alcoa Davenport Works and Iowa Governor Terry Branstad at a Hiring Our Heroes event in Davenport, Iowa.


Alcoa Foundation continues its strong commitment to U.S. veterans—supporting their transi-tion into the civilian workforce, as well as working with partners to provide assistance for their families. The Foundation’s main focus is on workforce readiness and expanding veterans’ access to long-term employment opportunities.

Veterans Highlights

“A strong manufacturing industry is central to the long-term health and success of our economy. Our partner-ship with Alcoa Foundation gives us an opportunity to help our veterans, who bring with them extraordinary leadership capabilities, which enable them to better compete for good paying jobs with a long-term future.”

— Eric Eversole VICE PRESIDENT,

US CHAMBER OF COMMERCE

HIRING OUR HEROES Hiring Our Heroes is a nationwide initiative of state and local

chambers of commerce to help veterans, transitioning service

members, and military spouses find meaningful employment.

The initiative hosts hiring fairs in all 50 states, and five each

year are sponsored by Alcoa Foundation. Alcoa Foundation also

partners with the National Chamber Foundation to develop online

tools to complement the fairs.


Month of Service is the centerpiece of Alcoa’s volunteer programs. Each October, thousands of Alcoa employees around the world contribute their time, energy, and expertise to make a positive difference in the communities where they live and work.

Alcoa Foundation’s Non-profit Board Service Program connects Alcoa employees with non-profit organizations that combine their social passion with the Foundation’s focus on the Environment and Education. Matching Alcoa employees with a non-profit board leverages Alcoa Foundation’s community investment, offers leadership development opportunities and promotes a deeper connec-tion to the communities where Alcoa operates.

In 2014, Alcoa achieved 58% employee participation globally.

Alcoa employees partnered with non- profit organizations across the globe to host 1,000 events, contributing more than 100,000 volunteer hours.

Activities included the planting of 45,000 trees in support of Alcoa’s Ten Million Trees program; helping 12,000 children through education and recreation programs; and providing more than 2,000 meals to the underserved.

Engage Our Employees

Month of Service

Skills-Based Volunteering

Beautifying an underserved school in the South Bronx, New York, and planting a garden for Morrissey Homestead community center in Western Australia.


Mentoring students from Step Up’s Young Women’s Leadership Academy.

Engage Our Employees

Dollars for Doers Programs

Supporting important causes through Alcoans in Motion; Alcoa Women’s Network partners with Habitat for Humanity; and children of Alcoa employees visit the Arrastão project in Brazil.

Individual Alcoa employees who volunteer at least 50 hours with their non-profit organization of choice can earn a $500 Bravo! grant for that eligible organization.

In 2014, Alcoa employees contrib-uted 160,000 hours of service through Bravo!, raising more than $2.1 million for selected non-profits

In an effort to blend well-ness with philanthropy, Alcoans in Motion (AIM) grants valued at $2,500 award teams of five or more Alcoa employees for participating in walkathons, marathons or other group physical activities.

In 2014, nearly 5,000 Alcoa employees participated in the AIM program

Recognizing the power of teamwork and collabora-tion, ACTION (Alcoans Coming Together in Our Neighborhoods) grants support teams of Alcoa employees who volunteer together. Based on the number of participants and hours contributed, eligible non-profits receive a $1,500 or $3,000 grant.

In 2014, Alcoa awarded 1,000 ACTION grants worldwide


Impact

Engage our employees

Prepare tomorrow’s leaders

Contributed $6.7 million to environmental causes

387,418 tons of CO2 reductions

719,668 gallons of water saved

467,359 kWh of energy reduced

2,988 tons of material recycled

581,048 trees planted

Promote environmental stewardship

Contributed $11.1 million to education causes

8,178 STEM teachers trained

158,243 students gained transferable STEM skills or continued their education in pursuit of a STEM career

8,528 individuals acquired technical certification; gained employment or improved their employment status in a manufacturing field

60,347 individuals improved their general employment status

900,000 service hours volunteered

58% employee participation in Alcoa’s annual Month of Service

$4.1 million raised for non-profits by Alcoa employees through participation in dollars for doers programs


• Profiles in Diversity Journal named Alcoa one of the Top Ten International Innovations in Diversity award winners in recognition of its innovative solutions to drive workforce diversity and inclusion.

• Bloomberg LP and Points of light recognized Alcoa as one of America’s most community-minded companies in The Civic 50, an annual initiative that identifies and recognizes companies for their commitment to improve the quality of life in communities where they do business.

• American Red Cross recognized Alcoa for its exceptional leadership during the annual Heroes Luncheon in Los Angeles.

• The Manufacturing Institute awarded Diana Perreiah, President of Alcoa Building and Construction Systems, with the Women in Manufacturing STEP (Science, Technology, Engineering and Production) Award. The STEP Awards recognize women who have demonstrated excellence and leader-ship in their careers and who represent all levels of the manufacturing industry, from the factory-floor to the C-suite.

Alcoa Foundation disaster relief grants support relief and recovery in communities where Alcoa operates. Alcoa and Alcoa Foundation work together to anticipate local needs and establish contact with non-profits and disaster relief agencies in the event of a disaster.

March 2014

Alcoa Foundation made a grant to the American Red Cross in support of disaster relief for victims of a mudslide in Oso, Washington. These funds helped the Red Cross to distribute 29,000 meals, hand out 8,000 comfort and relief items, and provide 142 overnight stays to victims.

August 2014

Alcoa Foundation awarded a grant to the CDC Foundation to support healthcare efforts in Guinea. The funds supported a portion of the CDC’s response to the Ebola outbreak in Guinea, and were used to enhance outbreak response capabilities to reduce transmission of the Ebola disease.

Disaster Relief

Awards


Impact

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