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Sustainable Ecosystems and Social Stewardship Waterloo, Canada 16 June 2007

Alcan - Aluminium Climate Change and Product Stewardship Paola Kistler Director Environment, EHS FIRST. Sustainable Ecosystems and Social Stewardship Waterloo, Canada 16 June 2007. A World Leader in Aluminum and Packaging. BAUXITE AND ALUMINA. PRIMARY METAL. ENGINEERED PRODUCTS.

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Sustainable Ecosystems and Social Stewardship Waterloo, Canada 16 June 2007

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  1. Alcan - Aluminium Climate Change and Product Stewardship Paola Kistler Director Environment, EHS FIRST Sustainable Ecosystems and Social Stewardship Waterloo, Canada 16 June 2007

  2. A World Leader in Aluminum and Packaging BAUXITE AND ALUMINA PRIMARY METAL ENGINEERED PRODUCTS PACKAGING Alcan Inc. 2006 Revenues: US$20 billion Employees: 65,000 Facilities: 470 Countries: 61

  3. A Strategic Approach to Climate Change • Alcan’s proactive and progressive approach to the reduction of GHG emissions has been driven by a “win-win” philosophy – driven by a sustainability approach. • Alcan’s strategy includes: • Continued reduction in process-related GHG emissions • Development of new technologies • Promoting the use of aluminium as a contributor to reduce GHG emissions through product lifecycle • Engagement in the development of a global policy framework

  4. Alcan recognized early the need to tackle GHG emissions • Already in 2000 Alcan launched its first TARGET program, a company-wide greenhouse gas management program • TARGET includes reduction objectives • Smelter emissions - Worldwide comparison 1990 to 2006: • Total smelter emissions (direct + indirect) reduced by 25% • Production increased by 35% • Intensity decreased by 45% • 2006-2010 objective to further reduce direct GHG intensity by 10%

  5. Natural Nuclear Gas 7% 18% Petroleum Renewable 11% 41% Coal 23% Continuous improvements in energy efficiency in Alcan’s smelters to reduce GHG from electricity production Alcan’s energy mix

  6. Alcan Smelting Technology Sales: Delivering GHG reductions linked with cost efficiency • Alcan-Pechiney leading smelting technology is used by many companies • Alcan has made an R&D commitment to develop a 20 percent more energy efficient and environmentally friendly cell

  7. End of Life (disposal) Use by Alcan’s customer Raw materials/suppliers AlcanProduction Final use(consumer) Distribution Product Stewardship = Sustainability aspects + life cycle thinking Raw material, production and distribution phases: • Alcan greenhouse gas emissions total 32 million tonnes of CO2eq (10 t /t Al) • PFC 3 (1.0 t / t Al) • Anode consumption 5 (1.7 t /t Al) • Smelter Electricity 15 (5.0 t/t Al) • Casting, Boiler 6 (2.0 t/t Al) • Other 3 (0.5 t/t Al) Use phase and end of life phase: • Alcan’s products can deliver reductions of Millions of tonnes of GHG to our customers • Automotive 100 kt for light weighting: Reduction of 3 Mill tonnes of CO2eq • 100 planes with new alloys: Reduction of 30 Mill tonnes of CO2eq • 5000 t for solar cooker: Reduction of 30 Mill tonnes of CO2eq Life cycle assements are the key tools in the assessment of a product‘s footprint

  8. Aluminium and Climate Change Opportunities • Recyclability • Opportunity: high recycling rates (90%) decrease substantially product footprint, better than competitive materials • Light weight • Opportunity: replacing heavier materials in transport applications • Electrical properties • Opportunity: Increase size of cable to improve energy efficiency • Barrier function • Opportunity: More packaging of food to decrease food spoilage • Brightness, reflectivity • Opportunity: new product for renewable energy generation

  9. Serving our Customers in a Carbon-constrained World 1 Tonneof aluminium 1 Tonneof aluminium 48-80 Tonnesof C02eEmissions 20 Tonnesof C02eEmissions Cars for today and tomorrow Sustainable Trains • 15 • Tonnes due to new aluminum alloys & techniques 300,000 Tonnes of CO2e emissions Cooperation with customers in aerosapce

  10. The Solar Cooker a win-win Product • Poverty alleviation by reducing costs of fuel and by generating income. • Avoidance of deforestation and its environmental consequences • Avoidance of respiratory diseases and eye diseases caused by cooking with firewood inside the house • Avoidance of infectious diseases by providing the possibility to sterilize water at no cost with Solar Cookers. 1 Tonneof aluminium 2000 - 3000 Tonnesof C02eEmissions

  11. Committed to Mitigating Global Warming • Energy efficiency • Technology advancements • Product design and development • A common goal

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