| Climate Change as a key area of focus |
| Short or long term |
Business groups
most affected |
Stakeholders
most affected/involved |
| Increasingly important |
Bauxite and Alumina,
Primary Metal,
Engineered Products |
All |
|
 |
|
Climate change is a complex global
issue that has significant implications for governments,
industry and society alike. For Alcan, addressing
the economic, social and environmental dimensions
of climate change is directly related to the Company's
global competitiveness and preservation of its
long-term licence to operate.
|
|
|
Key Challenges and Opportunities:
| • |
Continue process-related improvements (including
energy efficiency) to reduce greenhouse gas (GHG)
emissions from operations. |
| • |
Continue to develop more efficient products, the
use and disposal of which contributes to lower GHG
emissions. |
| • |
Continue efforts with other companies, governments
and third parties to ensure that pragmatic and cost-effective
solutions are found to reduce GHG emissions. |
|
As an aluminum producer, Alcan's GHG emissions are predominantly
(about 75%) from the smelting activities in the Primary Metal
business group. To produce molten aluminum, electricity is
used to power an electrolytic reaction whereby oxygen combines
with carbon from a carbon anode, resulting in carbon dioxide
(CO2) being emitted during the process.
If fossil fuels are used to generate the electricity consumed,
additional CO2 emissions result.
Furthermore, perfluorocarbons (PFCs) are produced intermittently
in the smelting process during what is known as the "anode
effect", essentially related to the raw material feeding
philosophy, which as a result has been completely changed.
Until recently, anode effects were considered a necessary
part of the raw material feeding process. One kilogram of
CF4 (PFC) has about the same greenhouse
gas effect as 6,500 kilograms of CO2,
illustrating how PFCs are extremely potent greenhouse gases.
In absolute terms, Alcan's direct emissions of carbon dioxide
equivalent (CO2e) from fuel consumption
and operation processes in 2004 were 23.7 million
tonnes. When combined with indirect emissions from purchased
electricity and emissions from the transportation of products,
Alcan's total CO2e emissions in 2004
were 41.2 million tonnes, reflecting the addition of
all Pechiney sites.
Absolute GHG emissions
|
|
|
| in millions of tonnes of CO2 equivalent |
| |
|
|
|
| |
|
|
|
| |
|
|
| 2004 |
|
41.2 |
|
|
|
| 2003 |
|
21.8 |
|
|
|
| 2002 |
|
21.2 |
|
 |
|
Direct & process |
|
 |
|
Indirect |
|
 |
|
Transportation |
| Direct emissions are from fuel consumption and operating
processes. Other emissions include estimates related to the production of
purchased electricity and transportation of Alcan-owned raw materials and
products. |
| The increase in absolute emissions in 2004 is due to
acquisitions. In 2004, this reflects primarily the integration of all Pechiney
sites. The direct emissions increased by approximately 60%, whereas the
indirect emissions increased by approximately 300%. This is due to the fact
that the indirect emissions coming from energy sources of the acquired sites
are largely carbon based. |
| 87% of Alcan's GHG emissions are related to operations
located in Annex B countries of the Kyoto protocol. |
Absolute GHG emissions
| 2004 |
|
 |
|
| A |
|
Direct & process |
|
57.5% |
| B |
|
Indirect |
|
38.6% |
| C |
|
Transportation |
|
3.9% |
|
| 2003 |
|
 |
|
| A |
|
Direct & process |
|
69.3% |
| B |
|
Indirect |
|
24.3% |
| C |
|
Transportation |
|
6.4% |
|
| 2002 |
|
 |
|
| A |
|
Direct & process |
|
70.8% |
| B |
|
Indirect |
|
24.5% |
| C |
|
Transportation |
|
4.7% |
|
Absolute GHG emissions
by business group
| 2004 |
|
 |
|
| A |
|
Bauxite and Alumina |
|
15.4% |
| B |
|
Primary Metal |
|
74.6% |
| C |
|
Rolled Products Americas and Asia |
|
3.3% |
| D |
|
Rolled Products Europe |
|
2.2% |
| E |
|
Engineered Products |
|
1.6% |
| F |
|
Packaging |
|
2.9% |
|
Absolute GHG emissions
by region
| 2004 |
|
 |
|
| A |
|
North America |
|
30% |
| B |
|
South America |
|
3% |
| C |
|
Europe |
|
31% |
| D |
|
Asia |
|
7% |
| E |
|
Africa |
|
8% |
| F |
|
Oceania |
|
21% |
|
| North America and Europe account for about 30% of Alcan’s
total GHG emissions. More than 20% of GHG emissions are in Australia, which
now include smelting and alumina refining capacities added through the Pechiney
acquisition. Asia accounted for 7% in 2004 due to new engagement in a joint-venture
smelting operation in China. |
Overall, businesses have an important role to play in managing
GHG emissions. Alcan is driving its operations to benchmark
performance in terms of reducing its own greenhouse gas emissions,
developing products that reduce GHG emissions in their use
and disposal, as well as engaging in effective dialogue with
key stakeholders. Governments, investors, consumers and NGOs
are all monitoring industry efforts to reduce CO2e
emissions, as well as how these businesses publicly report
emissions data. Alcan knows that the future acceptability
of its operations and products will be judged, in significant
measure, by its ability to reduce the intensity of its GHG
emissions. In this regard, its ambition is to become climate
neutral by no later than 2020 through the full life cycle
assessment of its products.
|
