Alcoa 2006 Annual Report Download - page 4

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Continuing to Live Our Values
We exist to provide a desired product, a service or a
solution to our customers.
In order to do it well and continuously, we have
to do it with the interest and support of all stakehold-
ers in our Company. We have to do it day in and day
out. This is where our Values of Customer, People,
Integrity, Accountability and Excellence come in.
That we have existed for 118 years means we have
done well in living our Values.
It is also where our forward-looking Environment,
Health and Safety (EHS) Value comes in. This past
year we continued to make
progress in our EHS Value. For
example, we posted dramatic
improvement trends in both
Lost Workdays (LWD) and Total
Recordables (TRR), which led to
our 20th consecutive year of
improved safety performance.
In 2006, our LWD rate was .072 – a 96 percent
improvement since 1987. More than 80 percent of
our locations worldwide did not have a single lost
workday case. Our TRR for 2006 was 1.13. This is
an 88 percent improvement since 1987. Approximately
45 percent of our locations did not have a recordable
injury. This is a remarkable achievement and shows
that even though we have made great strides in
safety, we can continue to improve. We must
improve in fatality prevention. The six fatalities we
had in 2006 are unacceptable. No fatality is. So
we will take whatever steps are necessary to improve
this vital area.
We have demonstrated over the years our
commitment to sustainability. We have gained credi-
bility from our long track record of working with
communities around the world, and that credibility
is a distinct competitive advantage.
When we look for new sites, new business
opportunities, or form new partnerships, we can
invite government authorities, community leaders,
and partners to see our locations. When those people
see how we operate, confer with their counterparts
around the world and review our track record, we
become the development partner of choice around
the world.
We continued to build on that reputation in
2006. We were once again named as part of the
Dow Jones Sustainability Index and one of the most
sustainable companies in the world at the World
Economic Forum in
Davos. CERES ranked
the Company second
overall in its study of
how companies man-
age climate change
and governance. And
we launched the
Alcoa Foundation Conservation and Sustainability
Fellowship program (see back cover). These are excel-
lent examples of how the outside world views Alcoa
and the way we live our Values every day.
For years, we have been recognized as leaders in
addressing climate change issues. In fact, we have
reduced GHG emissions more than 25 percent from
1990. But we know more needs to be done. Alcoa
recently helped form the United States Climate Action
Partnership (USCAP). USCAP is a new alliance
of major businesses and leading climate and environ-
mental groups that have come together to call on
the U.S. federal government to enact legislation
requiring significant reductions of GHG emissions.
The coalition also wants to help foster innovative
new technologies in energy production and efficiency.
The changes that are needed can’t be incremental;
we need major breakthroughs to get to our common
goal of protecting our world for future generations.
At the core of our Excellence Value is the Alcoa
Business System (ABS), the operating philosophy of the
Company. This year we celebrated the 10th anniver-
sary of ABS. To ensure we further embed this philoso-
phy into the way we operate, we opened the North
American Rolling and Extrusion Center of Excellence
to train all levels of management. Additional Centers
of Excellence are being planned in other regions for
2007. These centers standardize learning processes
across Alcoa by offering hands-on opportunities to
understand and apply all of the tools of ABS.
Innovation and technology are part of Alcoa’s
DNA and are a large part of our Customer Value.
This stems from our foundation when our Company
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939495969798
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Lost Workdays
Total Recordables
Safety: Zero Incident Locations
Rates by Years
“In 2006 our top and
bottom-line performance
was the best in
your Company’s history.”