the corporate business case for recycling 17 may, 2012 1
TRANSCRIPT
The Corporate Business Case for Recycling
17 May, 2012
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A Word About Alcoa in Ohio!
Approximately 1700 employees, most in Alcoa’s EPS Group AFE Cleveland Works APP’s Howmet Tempcraft (Cleveland) AWTP: Cleveland, Barberton and Chillicothe Independence Business Unit HQ office
Cleveland works celebrated 55th operational anniversary
Major recycling investment announced at Barberton
Investment in community recycling initiatives
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Alcoa invested in public space recycling bins at Cleveland-Hopkins Intl.
Key Global Megatrends Are Shaping The Future
Population GrowthPopulation Growth UrbanizationUrbanization EnvironmentEnvironment
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Energy consumption rising Increase of 54% by 2025 Driven by developing countries
Personal transport rising Increase of 40% by 2030
Greenhouse gas regulation
Global population rising
2006: 6.6 billion 2025: 7.9 billion 2050: 9.1 billion
Population in cities
2006: > 50% 2030: > 60%
Miracle Metal - Unique Value For Diverse Applications
Lightweight
Recyclable
Non corrosive
Fuel efficient
Durable
High strength
Highlyconductive
Malleable
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Recycling is a core strategic imperative
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Alcoa Wheels
Alcoa Consumer Electronics
Alcoa Aluminum Packaging
Increase payload by 3%
Save per year:
$1.3M in maintenance
$120K in fuel costs
$100K in tire costs
Capture $5.3M in residual value
Product InnovationProduct Innovation
Continuing To Reinvent The Wheel
Wheel Torque Solutions
Dura-Flange®
Dura-Bright®
Calculighter™
LvL ONE™
Dura-Bright® XBR
2002
2010
2009
2008
2006
2004
On a fleet of 3,000 trucks, aluminum wheels would:On a fleet of 3,000 trucks, aluminum wheels would:
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Our Latest Reinvention – Wheel Recycling in Ohio!
$21mm Barberton Green Expansion adds advanced recycling and casting to reduce energy consumption and GHG
30 new full-time jobs and supports 350 existing positions
First of its kind in NA; uses innovative new technology to produce billet for new wheels from re-melted scrap aluminum
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Infinite Recyclability
Surface Finish
Attributes
High Strength
Formability
Thermal Management
Light Weight
The Alcoa Aluminum Proposition
Aluminum: Making Consumer Electronics “Cool” and Recyclable
“The MacBook Pro starts life as a single piece of aluminum… the breakthrough aluminum unibody”
“Sony’s Kindle Competition--The Daily Edition--Boasts Attractive Aluminum Body”
“Tablet sales on the rise, led by Apple’s aluminum-backed iPad”
“Scary good looks for Nokia N8 thanks to aluminum”
“Amazon uses aluminum in newest Kindle making it thinnest, lightest, most affordable”
“HP ProBook 4520s gives business professionals aluminum good looks, durability”
Leveraging Aluminum’s Recyclability in a Growing Market
New EcoWiseTM product offers high recycled content without sacrificing surface finish or strength demands of competitive industry
Addresses growing concerns about E-Waste issue by closing the loop
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Alcoa’s Investment in ERI
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• ERI has largest E-Waste shredding and recycling system in the world.• R2, E-Steward certified; BAN Founder • 10% Alcoa stake in the company – investment in CE product responsibility
ERI’s Expanding National E-Waste Recycling Network
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Aluminum Packaging - Sustainability Driven by Recycling
Beverage Can Light Weighting
(ounces per can)
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Less material means less weight, less fuel, less waste…
creating less impact.
Aluminum cans have the highest recycled content and
recycling rateAluminum: True Green
Infinitely recyclable – back on store shelf in only 60 days
Today’s aluminum can is 40% lower GHG 30% less energy 15% lighter-than in 1993
Alcoa certified Cradle to Cradle
Background: Global Recycling Rates
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ChinaBrazil
Germany FinlandBenelux
JapanNorway / Iceland
ArgentinaSweden
SwitzerlandDenmark
NetherlandsAustriaTurkeyCyprus
Quebec (Canada)PolandEstonia
SpainUSAItaly
United KingdomFrance
SloveniaIreland
HungaryPortugalLithuania
Greece Romania + Bulgaria
LatviaMalta
0% 20% 40% 60% 80% 100% 120%Source: IAI
So - What is the Problem?
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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U.S.: 97 billion
ROW: 99 billion
56.2
40.7
Cans Recycled Cans Trashed
Half the world’s cans are consumed in the U.S., yet 42% of them are still going into the trash
We have the largest market for these cans, but one of the lowest recycling rates among developed countries.
The result? About 1.3 billion lbs or 575 KMT of metal with a strong market is being buried in U.S. landfills
Equivalent of 2 smelters are buried in U.S. landfills
Equivalent of >27,000 Airbus A320s…
In Ohio – 4.2 billion cans used 88mm lbs - Almost 3
billion trashed Equivalent to 1875 Airbus
A320s $48-50mm
Total Market – 196 billion
41 billion trashed
~70% recycled
Meanwhile, the nearby aluminum industry is short of cans!
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Recycling = Jobs!
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ExportExport
Source: Container Recycling Institute
FLOW CHART: DOMESTIC LABOR (USA) DIRECTLYRELATED TO COLLECTION OF BEVERAGE CONTAINERS FOR RECYCLING AND DISPOSAL
Recycling = Jobs!
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0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Collection in CDR System
Manual Collection Automated Collection
FTEs
per
100
0 to
ns
Collection Jobs per 1000 tons of Beverage Containers
CDR and Curbside Systems (Automated and Manual)
CRI’s recent study supports a view that up to 7 FTE in collection jobs are created per 1000 mt of beverage container material alone.
Aluminum Association estimates recycling jobs would increase to > 100 if 75% rate achieved.
Tellus Institute Report – 2.3mm jobs created at a 75% recycling rate.
Source: Container Recycling Institute
Industry Collaboration
Outreach and Education Social shift campaign - KAB CVP - http://www.cvpconnect.org SERDC Alcoa Foundation Grants
Policy – Policy – Policy Must drive change to provide necessary incentive
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“…unprecedented industry event.
Nothing like this has been organized
before.”
“I am impressed with how much you have accomplished
in such a short period.”
What can be done to create step change improvement?
What can be done?
Policy support is imperative Disposal bans Mandated or incentivized recycling/enhanced incentives PAYT EPR? Not clear what EPR for packaging means
FY05-06 FY06-07 FY07-08 FY08-09 FY09-10 FY 10-110%
5%
10%
15%
20%
25%
30%
NC Plastic Bottle Recovery Rate
NC Plastic Recovery Rate – since passage of disposal ban…
NC Division of Environmental Assistance & Outreach
PAYT Effects
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Demonstrated in 7100+ cities DOUBLES recycling Diverts 1/5-1/6 from landfill! Most effective strategy
• 3x more effective than dozens of other program options assessed)
Strong job creation (13:1)
0%
25%
50%
75%
100%
Yardwaste Recycling Source Red'n
YW
Recy
Source Red’n (SR)
3 PAYT effects
Source for graphs and figures: Skumatz Economic Research Associates, © all rights reserved; jobs data computed using ILSR data.
www.AlcoaRecycling.com22
Let’s make aluminum recycling as automatic as fastening a seatbelt!