Transforming Our Communities

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1 Transforming Our Communities

2 A Letter From Our President 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, multimaterial leader in high growth markets. Like the corporation, the Foundation s transformation 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 Foundationfunded 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

3 Our Global Mission 900,000 service hours Promote environmental stewardship $6.7 million to environmental causes Prepare tomorrow s leaders $11.1 million to educational causes Engage our employees 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 improvements 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.

4 Promote Environmental Stewardship Standards Leadership 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. 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. Sustainable Design 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. 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. 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 ALCOA FOUNDATION ANNUAL REPORT

5 Promote Environmental Stewardship Sustainable Design (CONT.) 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 universities in five countries are working to educate the next generation 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. Environmental Literacy 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. Our partners at Keystone Science School, NatureBridge, and Earthwatch Institute inspire and educate our communities teachers, students and our employees to become environmental ambassadors ALCOA FOUNDATION ANNUAL REPORT

6 Promote Environmental Stewardship Natural Capital Across the globe, Alcoa Foundation is partnering with leading organizations to promote biodiversity, conservation, reforestation and responsible land and water use. GLOBAL RELEAF Alcoa Foundation and American Forests have joined together for the Global ReLeaf Partnership for Trees Program, a multiyear 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 PARTNERSHIP The 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 FOUNDATION Alcoa 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. 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 ALCOA FOUNDATION ANNUAL REPORT

7 Prepare Tomorrow s Leaders STEM Education 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. 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 ANNUAL REPORT

8 Prepare Tomorrow s Leaders Raising the Profile of Manufacturing 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. The Manufacture Your Future homepage 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, 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. With a high need to fill manufacturing jobs across the country, our two companies came together to build a program that is centered on educating today s young people about how these roles are critical in today s global economy. We worked handin-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 Workforce Development Alcoa Foundation works with partners to devise pioneering and employer-driven methods to develop the advanced manufacturing workforce of the future. INSTITUTE OF INTERNATIONAL EDUCATION Alcoa Foundation and the Institute of International Education (IIE) have worked with local non-profit partners and manufacturers 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 ALCOA FOUNDATION ANNUAL REPORT

9 Prepare Tomorrow s Leaders Veterans Highlights Alcoa Foundation continues its strong commitment to U.S. veterans supporting their transition 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. 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. A strong manufacturing industry is central to the long-term health and success of our economy. Our partnership 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 Rob Woodall, Plant Manager at Alcoa Davenport Works and Iowa Governor Terry Branstad at a Hiring Our Heroes event in Davenport, Iowa ALCOA FOUNDATION ANNUAL REPORT

10 Engage Our Employees Month of Service 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. In 2014, Alcoa achieved 58% employee participation globally. Alcoa employees partnered with nonprofit 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. Beautifying an underserved school in the South Bronx, New York, and planting a garden for Morrissey Homestead community center in Western Australia. Skills-Based Volunteering 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 connection to the communities where Alcoa operates. Mentoring students from Step Up s Young Women s Leadership Academy ALCOA FOUNDATION ANNUAL REPORT

11 Engage Our Employees Dollars for Doers Programs Recognizing the power of teamwork and collaboration, 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 In an effort to blend wellness 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 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 contributed 160,000 hours of service through Bravo!, raising more than $2.1 million for selected non-profits 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 ALCOA FOUNDATION ANNUAL REPORT

12 Impact Promote environmental stewardship Prepare tomorrow s leaders Engage our employees Contributed $6.7 million to environmental causes 387,418 tons of CO 2 reductions 719,668 gallons of water saved 467,359 kwh of energy reduced 2,988 tons of material recycled 581,048 trees planted 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 ALCOA FOUNDATION ANNUAL REPORT

13 Impact Disaster Relief 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. Awards 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 leadership in their careers and who represent all levels of the manufacturing industry, from the factory-floor to the C-suite ALCOA FOUNDATION ANNUAL REPORT

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