Alcoa's Climate Change Response

1. Alcoa’s Response to Climate Change Lee Califf Director, Government Affairs

2. Alcoa at a glance • Leading aluminum products company • Primary aluminum and alumina • Flat-rolled aluminum and hard-alloy extrusions • Active in all major segments of the industry: • Technology ▪Smelting • Mining ▪ Fabricating • Refining ▪ Recycling • Products serving the aerospace, automotive, commercial transportation, packaging, building and construction, and industrial markets.

3. Financial performance - 2008 Total Revenue: $26.9 Billion 2008 ATOI by Segment 2008 3rd Party Revenue by Segment Packaging & Consumer Engineered Solutions Flat Rolled Alumina Flat Rolled Engineered Solutions Primary Metals Primary Metals Packaging & Consumer Alumina

4. 34 Countries 87,000 Employees Global organization 2008 sales by region

5. Background for Alcoa’s Response

6. A values-driven company • Integrity • Environment, Health and Safety • Customer • Excellence • People • Profitability • Accountability

7. Sustainability goals • From base year 2000: • 60% reduction sulfur dioxide by 2010 • 60% reduction volatile organic compounds by 2010 • 50% reduction nitrogen oxides by 2010 • 90% reduction mercury emissions by 2010 • 75% reduction landfill waste by 2010 • Reduce energy intensity 10% by 2010 • 60% reduction in process water use and discharge by 2009 From base year 1990: • 25% reduction in greenhouse gas emissions by 2010 (33% reduction achieved to date)

8. United States Climate Action Partnership • Alcoa a founding member • US Corporations and NGOs • Slow, stop and reverse climate change • Blueprint for Action: reduce GHG by 80% over 2005 levels by 2050 • Founding principles • Account for the global dimensions of climate change • Recognize the importance of technology • Be environmentally effective • Create economic opportunity and advantage • Be fair to sectors disproportionately impacted • Recognize and encourage early action • “I am convinced that we can build a global plan of action on climate change in ways that create more economic opportunities than risks.” Alain Belda

9. Strategies for Reducing GHG Emissions

10. Sustainable aluminum production • Sustainable energy production • Energy conservation • Emissions management • Sustainable repowering • Sustainable capacity growth

11. Leader in sustainable energy • More than a century of hydropower expertise • new technology improving yield of existing projects – LIHI certification • Cogeneration at Wagerup and Pinjarra • Sustainable biofuels for plant equipment • Green Power – renewable energy contracts • Geothermal • Under consideration for proposed second smelter in Iceland Calderwood dam, Tennessee Pinjarra cogeneration plant

12. Grow US recycling to 75% • Alcoa recycled 14 billion cans in 2007 • 50% capacity expansion announced 12/07 at Tennessee • $22 million investment in new crusher and delacquering technology • Expected completion 2009 • Alcoa goal: raise US recycling rate from 52% to 75% by 2015

13. Carbon capture • Waste CO2 from neighboring facility used to reduce alkalinity of bauxite residue • Captures 70,000 tonnes/year of CO2 • Potential 300,000 tonnes/year in Australia • Researching technology for extracting CO2 from Alcoa’s flue gases Carbon capture plant, Kwinana, Western Australia

14. Results

15. 0% 10% 15% 20% 25% 30% 35% 40% 2008 2005 2001 2002 2003 2004 1990 2000 2007 2006 Progress - greenhouse gas reductions Alcoa primary aluminum production capacity more than doubled from 1.9 mmt/y to 4.2 mmt/y during this period.

16. 2008 Recognition • Sustainability • Most Sustainable Corporation / World Economic Forum in Davos • Dow Jones Sustainability Index • Climate Change • Founding Reporter of the Climate Registry • Top Green Company – BusinessWeek and the Climate Group • Low Carbon Pioneer – CNBC European Business • Best in Class – Carbon Disclosure Project • Leader in climate change and governance – CERES • Carbon Disclosure Leadership Index

17. Alcoa can’t wait for tomorrow!