Outlook

on Sustainability
2010

Alcoa Canada
Global Primary Products
02 President’s
message

04 Governance

06 Environment

10 Social: Health and safety

Social: Our people
Social: Community

18 Economic
development
 Alcoa Canada
Global Primary Products 01

Head Office
Alcoa Canada
Global Primary Products
Montréal

Alcoa Canada
Global Primary Products
This sustainability report provides a summary of the achieve-
ments of Alcoa Canada Global Primary Products in 2010. Addi-
tional information can be found in the Sustainability section of
the Alcoa Canada website at www.alcoa.com/canada.

Alcoa Canada Global Primary Products operates four facilities in

Québec: the Baie-Comeau, Bécancour* and Deschambault smel-
ters, as well as the Bécancour Rod Plant. All four plants are certified
ISO 9001:2000 and ISO 14001:2004, and have an annual production 1 2

capacity of roughly one million metric tons of ingots, castings, billets

and aluminum rods. Alcoa Canada Global Primary Products employs
nearly 3,200 people, and its activities generate economic spin-offs of
more than $1.2 billion** annually in Québec.

Our activities are rooted in the three pillars of sustainability, by

continually seeking to improve our environmental performance,
by playing an active role in the development of our employees and
the communities where they live and work, and by contributing to the
Québec economy, notably in outlying regions. 3 4

At a glance
1) 2) 3) 4) Alcoa Canada
Baie-Comeau Bécancour Deschambault Bécancour Alcoa Alcoa Canada Global Primary
Smelter Smelter Smelter Rod Plant Products

Start-up 1957 1986 1992 1992 Number of employees 59,000 3,900 3,200

Construction costs 1.65 1.65 1.00 $49 million Revenues (billions $)** 21.0 2.4 2.3
(billions $)
Other statistics Present 12 facilities and 5 facilities and
in 31 countries plants plants
Production T-ingots T-ingots T-ingots Rod
Rolling ingots Rolling ingots
Billets Billets
Rod

Production capacity 400,000 400,000 253,000 90,000

(metric tons/year)

Total spin-offs in 459 435 296 26 * The Bécancour Smelter Inc. (ABI) is 74.95% held by Alcoa and 25.05% by
Québec in wages, Rio Tinto Alcan.
taxes and purchases
(millions $) ** All of the numbers in this document are expressed as at December 31, 2010.
When required, U.S. dollar amounts were converted into Canadian dollars at
Including local spin-offs 227 158 101 12 the average exchange rate for 2010 (US$1 = CA$1.0307).
(millions $)
 Alcoa Canada
02 Global Primary Products
President’s message

Sustainable actions
In 2010, Alcoa Canada Global Primary Products (GPP Canada) reached new milestones in its dedicated and determined progres-
sion toward sustainability. We believe that the actions we take today will have a positive, long-term impact on our operations, on
our relationships with the people in the communities where we live and work, and on the environment.

That said, we do not presume to have reached the pinnacle of sustainability, since it is more of a journey than a destination. Our
people understand this and refuse to rest on past laurels. The 3,200 women and men who make up our company in Québec are
driven by the conviction that we can go further and do better when it comes to sustainability. Here are some of our 2010 achieve-
ments, which we plan to further advance and improve upon going forward.

Our place in the environment

Resources are only available in limited quantities, and each can be put to countless uses by an infinite number of consumers. This
is why we strive to eliminate waste, foster the optimal use of everything we consume, and diligently seek to reduce our environmen-
tal footprint. More than just words, our sustainability approach is generating concrete results such as the energy efficiency gains
of more than 600 GWh achieved over the last four years, including 91 GWh in 2010 alone; the recycling of used pot lining, which
went from 33% in 2009 to more than 85% last year; and the ongoing reduction in our GHG emissions, which surpasses the target
set in our voluntary agreement with the government.

A little known fact is that our Baie-Comeau Smelter is located in the heart of the Manicouagan-Uapishka UNESCO World Bio-
sphere Reserve (WBR). The close and fruitful collaboration between the managers of this reserve and our people in Baie-Comeau
has become an example for other WBR managers around the world who share their lands with an industrial operation.

Our place in society

On the social front, our commitment focuses on our employees and home communities so that we can help build a healthy
environment where the risks of injury are eliminated or controlled. With a recordable injury rate of 0.47 in 2010–the lowest in GPP
Canada history–it is apparent that our team’s efforts to implement a health and safety culture are generating inspiring results.

Beyond this statistic, however, lies the death of two of our people in January 2010. Our entire organization remains deeply affected.
In a working environment like ours, all risks must be identified and managed to the highest degree, and this vigilance is a shared
responsibility. Because health goes beyond the simple absence of illness, we plan to implement several initiatives in 2011 aimed at
improving the well-being of our people, with a special focus on ergonomics.

The commitment of our employees toward our communities grows every year, as evidenced by their record 57% participation
in activities surrounding the 5th annual Worldwide Month of Service in 2010. GPP Canada is, in fact, among the leaders in
employee involvement among all the countries where Alcoa operates–proof of the indelible spirit of our people. These results
rest as much on the individual enthusiasm of our employees as on solid and efficient programs deeply ingrained within our
communities.

Since a significant portion of our employees will become
eligible for retirement within the next five years, we are
facing a new challenge: ensuring that the torch of so-
cial commitment, held high by our longstanding team
members, continues to burn bright in the hands of the
next generation so that we can preserve the foundations
established in the Québec regions where we operate.
Alcoa Canada
Global Primary Products 03
President’s message
Our place in the economy
We consider ourselves an economic driver both in the province
of Québec and the communities where our operations are located.
GPP Canada generated economic spin-offs totalling $1.2 billion
in Québec in 2010, in good part in outlying regions. We have been
pleased to contribute, in our own way and to the extent possible,
to the collective enrichment of Quebecers in the wake of the
recession. We are particularly proud of our enduring relationships
with more than 1,200 local suppliers with whom we not only do
business but share sustainability values. In fact, in 2010, we
launched an initiative to evaluate and assist a number of our
suppliers in their own sustainability journey, as recommended by
our Sustainability Advisory Committee.
In 2010, Alcoa Canada
Global Primary Products reached
new milestones in its dedicated
and determined progression
toward sustainability.
Our place in the future
Our product has a promising future everywhere in the world. Alu-
minum is lightweight, flexible and can be recycled almost indefini-
tely. But we are far from being the only player in our markets, and
competition is becoming increasingly fierce with the global economy.
The expertise, taste for challenge and adaptability of GPP Canada’s
people are acknowledged throughout Alcoa and globally. These
attributes will enable us to secure our future, continue to work with
our communities to better their quality of life, and help improve the
environment for current and future generations. Our commitment to
sustainable action remains resolute for 2011.
Pierre Morin
President, Alcoa Canada Global Primary Products
 Alcoa Canada
04 Global Primary Products
Governance

Governance
Alcoa
Year after year, Alcoa’s performance in governance and ethics has made it a benchmark in its sectors of activity and beyond.
One of the most respected authorities on the matter, the Covalence Ethical Ranking, has rated Alcoa number one in the Basic
Resources category since the index’s inception in 2005. Among the 581 international corporations rated by Covalence for the
index, Alcoa placed 15th in 2010.

For the ninth consecutive year, Alcoa was listed on the Dow Jones Sustainability Indexes, the most prestigious market indexes
for sustainability. This year, it was ranked in both the international and North American indexes. In March 2011, readers of Fortune
magazine confirmed Alcoa’s position as the world’s most admired company in the Metallurgy sector. For the last 28 years, Alcoa has
been highly ranked on this list of the companies most respected by the business community.

Alcoa Canada Global Primary Products

All Alcoa Canada Global Primary Products facilities are certified
ISO 9001:2000 and ISO 14001:2004. Since 2002, when Alcoa signed
a voluntary agreement with the Québec Government to reduce its
greenhouse gas (GHG) emissions, an external audit has confirmed
the validity and rigor of our annual GHG emissions inventories.

Since 2008, we have sought to encourage our suppliers to imple-

ment initiatives that will enable them to better meet our sustainability
expectations. To this end, we developed and validated a question-
naire in 2009 that was completed by more than 80 suppliers in 2010.
The results indicated that, in the medium term, the best means to
achieve our objectives is to assist our suppliers in implementing
structured improvement projects.

In 2010, the discussions with our Sustainability Advisory Committee

focused on three main issues: revising the committee’s method of
operating; establishing priorities for developing the regional sustainability strategy; and identifying the objectives to consider when
creating a sustainability culture and how to ensure its dissemination inside and outside the organization.

2010 Objectives Results Comments

Develop a regional sustainable development strategy.
Successful Sarbanes-Oxley audits at Baie-Comeau,
Bécancour and Deschambault.
Work has begun and discussions taken place with
the Sustainability Advisory Committee regarding
which priorities to consider in developing this
strategy. The latter must reflect the region’s strategic
plan, which will be further developed in 2011.
Successful audits at all three smelters.

2011 Objective
n Develop a regional sustainability strategy.
 Alcoa Canada
Global Primary Products 05
Governance

Sustainability
Approach

Alcoa’s sustainability approach

In the Sustainability section of our website, Alcoa presents information under three different but
interrelated categories: Products, Resources and Operations. The company’s goal is to optimize
the value of products, use resources in a sustainable manner, and minimize the environmental
and social footprints of its operations while maximizing their social and economic spin-offs. Alcoa
Canada’s website has also adopted this new approach. However, the majority of our information
is found in the Operations section due to the nature of our activities, which focus on primary alu-
minum production.

Products
The environmental, social and economic value of our products is critical to Alcoa’s success and
that of its clients. Approximately 75% of the aluminum produced since 1888 is still in use today.
Solid, light, durable and recyclable, it is used in a multitude of products. Alcoa is committed to
developing new or improved products to increase the quantity of aluminum used in the world and
to facilitate its recovery and recycling. Each time aluminum is recycled, 95% less energy is used
than went into making it originally.

Life cycle analysis helps evaluate the various avenues available for optimizing aluminum products
in each phase of their useful life, from design to manufacturing and use, recovery and recycling.
During a product’s life cycle, the aluminum it contains can improve energy efficiency and reduce
greenhouse gas emissions, for example by decreasing the environmental footprint of vehicles. Sustainability of
Products
In 2010, the primary aluminum produced by Alcoa achieved Cradle to Cradle® certification from
MBDC (McDonough Braungart Design Chemistry). This multi-attribute certification evaluates,
among other things, a product’s safety to humans and the environment as well as its design within
a life cycle approach.

Resources
We must use the resources on which our activities rely in a sustainable manner. From extracting
bauxite to transforming it into alumina, and making aluminum to produce final products, Alcoa aims
to minimize the impact of its operations on natural habitats and biological resources. Sustainability of
Resources
Water is an essential resource for all living organisms on this planet, which is why Alcoa carefully
manages its consumption and has established targets in this area. Energy consumption is another
key factor that is closely monitored. Our achievements in both these areas are presented in the
Operations section.

Operations
Due to the nature of its activities, essentially the production and primary transformation of alumi-
num, the sustainable development information for Alcoa Canada Global Primary Products is found
in this section. The following pages offer you an overview of our achievements in 2010 and our Sustainability of
challenges going forward. Operations
 Alcoa Canada
06 Global Primary Products
Environment

Environment
An ongoing priority
The development, identification and sharing of best practices are at
the heart of Alcoa Canada Global Primary Products’ performance.
The same is true for its environmental management. In addition to the
specialists that work in each of our plants, we have a regional team
that coordinates their efforts, works on shared initiatives and fosters
the dissemination of best practices throughout our Québec facilities.

While meeting regulations is the baseline for our operations, we set

much more stringent targets. What’s more, we are fully prepared
to formally commit to continuous improvement, as evidenced by
our 2002 voluntary five-year agreement with Québec’s Ministère du
Développement durable, de l’Environnement et des Parcs (MDDEP)
to reduce our greenhouse gas emissions, which was renewed for the
Spent pot lining
2008-2012 period. Total for Québec smelters

As part of the Baie-Comeau Smelter modernization project, we also

signed an agreement with the Québec Government in 2008 regar- 2010 86.4%

ding our environmental performance.

2009 33.1%

Material use and recycling 2008 10.7%

All four Alcoa Canada Global Primary Products plants in Québec
have achieved Level 3–Performance–certification under the ICI ON
2007 0.0%
RECYCLE program sponsored by RECYC-QUÉBEC.
0 5 10 15 20 25
We pursued our efforts to reduce landfilled waste in 2010. We suc- Thousands of metric tons/year
ceeded in decreasing landfilled waste, excluding spent pot lining and Recycled (%) Generated

casthouse dross, by 15% between 2009 and 2010, surpassing our

target of 10%. Since 2000, we have reduced the amount of this type
of waste going to landfill by 72%. The additional reduction recorded
in 2010 is mainly attributable to programs implemented at the Baie-
Comeau Smelter.

The recycling rate for spent pot lining, the most important waste pro-
duct generated by an aluminum smelter, increased exponentially in
2010 to more than 85% compared to 33% in 2009. This leap was
due to the development of avenues to valorize the carbon portion of
this by-product as a fuel source, and to use the refractory portion as
a mineralizer for cement plants. Waste that cannot be recycled or
valorized is sent to Alcoa’s plant in Gum Springs for treatment and
disposal.

Casthouse dross is the other major waste product produced by

smelters. A technical group is working to identify and disseminate
best practices to reduce the quantity of casthouse dross generated
and to increase its recycling rate.
 Alcoa Canada
Global Primary Products 07
Environment

Efficiency gain
Electrical energy (GWh)

Baie-Comeau

Energy
Since electricity is the main energy source used to manufacture Bécancour
aluminum through the process of electrolysis, we are continuously
striving to optimize our consumption. These efforts translated into
cumulative energy gains of more than 600 gigawatt hours (GWh) Deschambault

for all the projects carried out over the last four years. For 2009-2010
alone, we had aimed for gains of 115 GWh, a target we surpassed by Québec Plants

achieving 132 GWh, including 91 GWh in 2010.

0 50 100 150 200 250 300 350 400

Hydro-Québec recognized these efforts by inducting the Bécancour 2007 2008 2009 2010

and Deschambault smelters into its Écolectrique network, a group of

energy efficiency leaders. In 2010, the Bécancour Smelter became the
first company to achieve the Elite level of membership in the network
thanks to its cumulative energy efficiency gains of more than 250 GWh.

Also in 2010, the Association québécoise pour la maîtrise de l’éner-

gie (AQME) acknowledged some of the energy efficiency initiatives
undertaken by the Bécancour and Deschambault smelters by awar-
ding each of them a Prix Énergia.

Water
Water is an essential resource that we strive to preserve by carefully
managing our use and by monitoring the quality of our wastewater.
Quantitatively, 2009 was a record year for low consumption, a per-
formance that we were sadly unable to equal in 2010.

The substantial increase recorded at the Baie-Comeau Smelter is

mainly due to the need for additional water to cool a compressor
during the particularly warm summer of 2010.

Despite the completion of the blow-off automation project, which will

reduce both water consumption and wastewater production at the Water consumption for Québec plants
Bécancour Rod Plant, we were unable to benefit fully from the new
Baie-Comeau
system due to incidents that occurred during the year. In addition, we
are still looking at the factors responsible for the increase in indus-
Bécancour
trial and potable water consumption through 2010 at the Bécancour
Smelter.
Deschambault

All parameters measured for wastewater quality at all four plants Usine de Tige
remained stable or improved compared to previous years. A non-
compliance was recorded at the Bécancour Rod Plant following the Québec Plants
use of a new water treatment product, a problem that was swiftly
resolved. An overflow of sanitary wastewater also resulted in a non- 0 250 500 750 1,000 1,250 1,500
1,000 m3/year
compliance at the Baie-Comeau Smelter. Potable water
2007 2008 2009 2010
Industrial water
 Alcoa Canada
08 Global Primary Products
Environment

10 Million Trees program

Number of trees and shrubs distributed
60

50
Biodiversity
Following a brief interruption in 2009 due to the difficult economic 40

Thousands
conditions prevailing in the aluminum sector, Alcoa’s 10 Million Trees
initiative resumed in 2010. We distributed more than 4,400 trees to 30

employees and in our communities. Two local tree planting projects

20
were among the fruits of this initiative.
10
In addition, our partnership with the Manicouagan-Uapishka World
Biosphere Reserve (MUWBR), within which the Baie-Comeau Smel- 0

ter is located, continued in 2010. The mutual benefits of this part- 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

nership make it particularly interesting. In fact, a representative from

the MUWBR sits on the smelter’s Community Advisory Committee
and on the Exchange and Information Committee created as part
of the smelter’s modernization project, and is offering a technical
contribution to a study of ecosystem services we did for the project. Direct greenhouse gas emissions
Meanwhile, Alcoa sits on the MUWBR’s issue table and ensures,
3.0
through financial and technical support, that the organization is able
to fulfill its mission. 2.5
Mt eq. CO2/year

2.0

1.5

A regional team coordinates the 1.0

efforts of specialists in each plant

0.5

and fosters the adoption

0.0
2001* 2007** 2008 2009 2010

of best practices. * Baseline, 2002-2007 agreement

** New baseline, 2008-2012 agreement

Air emissions PAH emissions

Alcoa Canada Global Primary Products continued to decrease its total Baie-Comeau Smelter, Söderberg plant,
greenhouse gas (GHG) emissions across the organization in 2010, Electrolysis
with a reduction of 9% compared to 2009. Since 2001, the baseline 0.35
year for the first agreement with the MDDEP, we have reduced our
0.30
total GHG emissions by more than 31%.
0.25

In 2010, the 41% reduction in perfluorocarbon (PFC) emissions at the

kg/t Al

0.20
Baie-Comeau Smelter’s Söderberg plant had a major impact on our
0.15
strong performance overall. This substantial decrease is linked to our
improved method for feeding alumina into the electrolytic pots. The 0.10

success of our GHG emission reduction program is attributable to 0.05

the work performed by the technical teams at each plant, which have
0.00
been focusing for years on reducing PFC emissions generated at the 2007 2008 2009 2010

electrolytic pots. Vents Scrubbers Target

 Alcoa Canada
Global Primary Products 09
Environment

SO2 emission is related to the percentage of sulfur found in the pitch and coke used to manufacture the anodes. Our emissions
meet the 2010 target set in our agreement with the MDDEP. Unfortunately, it is increasingly difficult to obtain coke with low sulfur
content. We invested approximately $3 million in engineering studies to evaluate the possibility of installing a pilot scrubber at the
Deschambault Smelter. But, due to the prohibitive cost of this venture, we had to abandon the idea in 2010.

Fluoride emissions increased significantly at the Bécancour Smelter following operational problems in the potrooms. There were also
issues at the Baie-Comeau Smelter’s Söderberg plant regarding polyciclic aromatic hydrocarbon (PAH) emissions. As a result, we
did not achieve the new 0.2 kg/t Al target agreed upon with the Québec Government. Several fundamental causes contributed to the
increase in emissions in 2010, and they are already under close study.

2010 Objectives Result Comments

Zero non-compliances with environmental laws Most issues were administrative in nature and identi-
and regulations. fied by Alcoa. Action plans have been put in place in
each case.
Meet the requirements of the environmental
performance agreement with the MDDEP
(read the detailed results).
Meet the requirements of the voluntary agreement The agreement was not renewed in 2010 since this
with Environment Canada to reduce PAH parameter is now included in the MDDEP agreement.
emissions at Baie-Comeau.
Achieve perfluorocarbon (PFC) emissions The Baie-Comeau Smelter’s Söderberg plant recorded
of 0.37 t CO2 eq./t Al. 0.35 a particularly strong performance and reduced its PFC
emissions by 41% compared to 2009.
Complete energy efficiency projects totalling
132
115 GWh in 2009-2010.
Reduce waste landfilled by 10% compared
-15%
to 2000.

2011 Objectives
n Zero non-compliances with environmental laws and regulations.
n Meet the requirements of the environmental performance agreement with the MDDEP.
n Achieve GHG (perfluorocarbon) emissions of 0.34 t CO eq./t Al associated with anodic effects.
2
n Complete energy efficiency projects totalling 120 GWh* in 2011-2012.

n Reduce waste landfilled, excluding spent pot lining and casthouse dross, by 5% compared to 2010.

n Recycle at least 93% of spent pot lining in 2011.

* This target might be revised based on the outcome of Hydro-Québec’s energy efficiency grant program and agreements currently under negotiation
with service suppliers.
 Alcoa Canada
10 Global Primary Products
Social: Health and safety

Number of lost-time accidents

2007-2010
5

Health and safety 4

Number of accidents
Prevent fatal accidents 3

Health and safety is a fundamental value at Alcoa Canada Global Pri-

2
mary Products. Considerable efforts are expended daily to foster an
increasingly safe workplace and to strengthen our collective capacity 1
to prevent accidents.
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0

Unfortunately, an accident on January 30, 2010 resulted in the death Baie-Comeau Bécancour Deschambault Rod
Plant
Québec
Plants
of two of our employees at the port facilities of our Baie-Comeau 2007 2008 2009 2010

Smelter. This tragic event is a reminder that, regardless of the health

and safety results achieved, we must continue to build our health and
safety culture, optimize our programs and ensure they remain strong.

In 2010, our activities included an in-depth review of our fatality pre-

vention program: mapping of fatality risks in each plant and sector;
training all employees to identify major risks; and implementing a new
daily auditing system for high-risk tasks.

Health and safety is a

fundamental value at Alcoa
Canada Global Primary
Products.

Our focus on the most serious risks resulted in an action plan targe-
ting improvements in our health and safety culture. Activities will be Frequency of reportable injuries
held throughout 2011. 2007-2010
2.5

We recorded reductions of approximately 10% in recordable inju-

ries and 20% in first aids compared to 2009. In fact, the frequency 2.0
Frequency / 200,000 h worked

of recordable injuries in 2010, at 0.47, was the lowest ever achie-

ved by Alcoa Canada Global Primary Products’ Québec facilities. 1.5

The severity of the injuries, however, was greater. The performance

1.0
of the Deschambault Smelter and Bécancour Rod Plant, both of
which ended the year without a recordable injury, is particularly 0.5
noteworthy.
0 0 0 0
0.0
Baie-Comeau Bécancour Deschambault Rod Québec
Plant Plants
2007 2008 2009 2010
 Alcoa Canada
Global Primary Products 11
Social: Health and safety

Control of targeted tasks in industrial hygiene

Our facilities made considerable progress in the control of tar-
geted tasks during the 2009-2011 cycle in the areas of noise
reduction and exposure to chemical contaminants, as well as
in ergonomic improvement. In regards to the latter, it is impor-
tant to mention that we chose a new quantitative tool in 2010
to analyze the ergonomic risks present at our plants so that we
can standardize the evaluation of these issues and ensure better
prioritization.

2010 Objectives Results Comments

Review the fatality prevention program. All targeted activities for 2010 were implemented.

Create an action plan to further cultivate the health The plan entails the roll out of three strategies
and safety culture within our facilities. over two years.

Reduce by 20% the number of injuries

requiring first aid. -21%

By the end of 2011, control 100% of the targeted Underway since 2009, measures are currently in
tasks to reduce exposure to noise and chemical place to ensure we achieve our objective on schedule.
contaminants and ergonomic risks. Control of 63% of targeted tasks for noise, 81% for
chemical contaminants and 70% for ergonomics.

2011 Objectives
n Implement an approach to raise awareness of what can affect human performance in health and safety and environment.
n Disseminate the health and safety component of best practices to contribute to supervisor leadership development.
n Invite contractors to participate in “high-risk tasks” audits, which involve daily structured reviews of potential high severity risks.

n Control 100% of targeted risks for the 2009-2011 cycle related to noise reduction, exposure to chemical contaminants and

ergonomic risks.
n Identify the significant ergonomic risks at each of our facilities using the new analysis tool chosen in 2010.

n Launch the Alcoans in Motion program to promote physical activity at our Québec plants.
 Alcoa Canada
12 Global Primary Products
Social: Our people

Our people
A year of renewal
2010 was marked by a slow return to profitability following the global
economic downturn of 2008-2009. Employees of the Alcoa Canada
Global Primary Products plants in Québec successfully maintained
the measures put in place in response to this exceptional situation.
As a result, we were able to continue increasing our productivity and
bolster our competitiveness. Thanks to reduced work hours, we also
succeeded in preserving as many jobs as possible during one of the
worst economic crises in recent decades.

Employee engagement index

2008-2010
Our people drive our success:
their quality and commitment are
Alcoa annual survey positive responses (%)

80

its foundation. Together we will continue 60

to increase our productivity to maintain

40
our competitiveness.
20

Baie-Comeau Bécancour Deschambault Rod Kenexa

Plant Index for
A steadfast commitment 2008 2009 2010 Manufacturing
Sector
Alcoa’s 4th annual global employee survey, Global Voices, revealed
that our facilities remain among those with the highest rate of em-
ployee engagement. The Bécancour Rod Plant distinguished itself
by recording an increase in this rate, while our other facilities lost
ground, mainly due to the measures necessary to ride out the econo-
mic crisis. This decline was most notable at the Bécancour Smelter.
As indicated in the table to the right, Alcoa Canada Global Primary
Products facilities nonetheless recorded a level of engagement rate
above the Kenexa benchmark index for the manufacturing sector.

Every year, the results of this survey lead to the development and
implementation of action plans that respond to employee concerns
and support–or even increase–their level of engagement.
 Alcoa Canada
Global Primary Products 13
Social: Our people

2010 Objectives Results Comments

Deploy AlcoaLearn and review the content of our
regional training programs for all areas of expertise.
Our new training organization structure was
implemented in 2010 and work began to standardize
training content. Roll-out of the AlcoaLearn program
has been slower than anticipated due to the difficult
economy.

Consolidate our new performance management The “4E and 1P” performance management system is
and personal development plan model. now well integrated into our business processes.

Deploy the best practices of all our plants for The Regional Workforce Committee began analyzing
succession management planning throughout future needs to ensure that competencies and
the region. knowledge transfer are included in succession
management plans.

Create a pilot working committee to look at We began compiling the list of mechanisms and
measures for fostering work/life balance; define practices that foster work/life balance. However,
a plan to implement these measures. the implementation plan is still in development.

Establish a five-year plan for workforce productivity The five-year workforce plan has been finalized
starting 2010. and is being implemented according to schedule.

2011 Objectives
n Maintain operational stability while improving productivity.
n Pursue the implementation of the Relève 2015 action plan.
n Improve the employee engagement rate as gauged by the Global Voices survey.

n Identify gaps and requirements to comply with the Entreprise en santé standard.

n Prepare for the 2012 introduction of a new integrated human resources system that will optimize our HR processes, including

talent management, succession planning and compensation management.

 Alcoa Canada
14 Global Primary Products
Social: Community

Community
From Montréal to Baie-Comeau, Bécancour and Deschambault,
the people of Alcoa Canada Global Primary Products team up with
Alcoa Foundation to be a powerful economic and social driver in the
communities where we operate.

Although the economic recovery was gradual and sometimes uncer-

tain in 2010, our facilities, Alcoa Foundation and our employees
maintained and even increased their contribution and commitment
to dozens of organizations and initiatives in the areas of education,
culture, health and sustainability.

Alcoa Foundation Total Alcoa Foundation grants in 2010

Alcoa Foundation, which manages the company’s grants worldwide for Alcoa Canada Global Primary Products
and distributes them together with local entities, has chosen to focus by area of excellence
on four main areas of interest in addition to lending its support to the (excluding ACTION and Bravo! Programs)
volunteer efforts of employees.

In 2010, Alcoa Foundation was able to increase its support to orga- 22%
US$714,688
nizations active in its four areas of interest, bringing its contribution Sustainable
environment
to nearly US$715,000. This compares to the US$362,000 given in 8% 51% Community
health & safety
2009, a particularly difficult year for the aluminum sector. All of these
Building tomorrow’s
grants help improve the quality of life in the communities in which we 19% workforce & leaders

operate and are active in Québec. Community

capacity & resilience

Earthwatch expeditions
To help nurture tomorrow’s sustainability leaders, Alcoa Foundation
enabled some of our partners from communities around the world
to participate in Earthwatch expeditions in 2010. Among them were
Pierre Lussier, General Manager of Earth Day Québec, who volun-
teered to accompany a team of researchers into the forests of Puerto
Rico, and Claude Poudrier, a teacher and director of the Programme
Éducation Environnement et Citoyenneté (PEEC) program, who took
part in an expedition to study mountain water in the Czech Republic.
 Alcoa Canada
Global Primary Products 15
Social: Community

ACTION programs
Alcoa Canada Global Primary Products

2010 31

ACTION
ACTION–for Alcoans Coming Together In Our Neighborhoods– 2009 28

programs are initiatives that allow groups of Alcoa employees to

Year
help their favorite non-profit organization by spending time com- 2008 25

pleting an essential project. In addition to the time and enthusiasm

donated by our people, Alcoa Foundation gives the organization
2007 20
an amount equivalent to US$1,500 or US$3,000 depending on
the number of employees participating in the project. In 2010, 0 5 10 15 20 25 30 35
Alcoa Canada Global Primary Products employees completed a Number of ACTION programs

record 31 ACTION projects for a total of 1,364 volunteer hours

and US$93,000.

In five years, 150 volunteer ACTION

programs and 2,000 Bravo! initiatives
have assisted 200 organizations through
200,000 hours of volunteer time... and
more than US$1 million. Alcoa Canada
Global Primary Products employees also
generously gave time and money to several
organizations, including United Way,
Opération Enfant Soleil and Operation
Red Nose.

Bravo! programs
Bravo! Alcoa Canada Global Primary Products
The Bravo! program encourages individual commitment among
Alcoa employees by donating the equivalent of US$250 to any non- 2010 451

profit organization to which an employee devotes at least 50 hours

of volunteer time a year. The greater the number of Alcoa volun-
2009 458
teers, the more Bravo! contributions the organization receives. In
Year

2010, no fewer than 451 Alcoa Canada Global Primary Products

employees took part in this program, resulting in a donation of more 2008 477

than 37,000 hours of volunteer time and US$112,750 from Alcoa

Foundation. 2007 441

0 100 200 300 400 500

Number of participating employees
 Alcoa Canada
16 Global Primary Products
Social: Community

Worldwide Month of Service

In October, Alcoa Foundation took the opportunity to acknowledge
the commitment of Alcoa and its people to their communities du-
ring the fifth annual Worldwide Month of Service. The success of
October 2010 was rooted in the participation of employees in a
variety of community activities. The results for 2010: 29 community
activities completed in 31 days, including a blood drive, food drives,
United Way campaigns, the announcement of new partnerships, etc.

October is also a favorite time for ACTION programs. Nine projects

were carried out by Alcoa Canada Global Primary Products’ Québec
facilities, including six in the same weekend involving 200 employees
who donated 800 hours of their time. Participation in the Worldwide Evolution of participation rate
Month of Service has grown significantly in the last two years. In fact, in volunteerism support programs
in 2010, nearly 2,000 employees took part, resulting in a record 57% 60%

participation rate. 50%

40%

30%

20%
The success of this Alcoa Worldwide
10%
Month of Service was rooted in the 0%

enthusiastic participation of employees. 2006 2007

Bravo! Program
2008 2009
ACTION Program
2010

The results for 2010: 29 community Worldwide Month of Service (October)

(including all Alcoa plants in Canada)

activities completed in 31 days.

Pedaling for good causes

For several years, Alcoa Canada Global Primary Products employees
have combined their passion for cycling and commitment to their
communities by participating in four annual competitions:
n The Randonnée Vélo Santé Alcoa, initiated by employees at the

Baie-Comeau Smelter;
n The Randonnée de l’Espoir ABI, launched by the Bécancour

Smelter;
n The Raid Extrême Bras du Nord, supported by the team from the

Deschambault Smelter; and,

n New in 2010, the UCI Para Cycling Road World Championships,

of which the Baie-Comeau Smelter and Alcoa Foundation are the

main partners.
 Alcoa Canada
Global Primary Products 17
Social: Community

In 2010, more than 150 Alcoa employees participated in or volunteered at these events. These activities share a mission to
promote healthy life choices, and two of them also help raise funds for non-profit organizations. As proof of their popularity, all
of these events are already confirmed for 2011. What’s more, Baie-Comeau will host an annual UCI paracycling competition
through to 2013.

2010 Objectives Results Comments

Implement a new Alcoa Foundation system
to measure and communicate the impact of
our community engagement, at every stage
of the projects.
Complete 20 community initiatives during
the fifth annual Worldwide Month of Service,
including a fifth “Signature event”.
Carry out 31 employee-driven ACTION programs
in Baie-Comeau, Bécancour, Deschambault
and Montréal.
Review how our Community Advisory Committees
(CAC) operate in light of our Community Support
objectives.
The system was implemented in 2010; the analysis
and study of the impact of Alcoa Foundation’s
commitments on a dozen partners will be completed
in 2011.
29 activities were completed in October, including
five volunteer projects in Québec in the same week
(Signature event).
The role of the CAC was defined.

2011 Objectives
n Analyze the impact of Alcoa Foundation’s commitments on a dozen partner organizations.
n Achieve a 15% level of employee participation in the Bravo! program.
n Launch Alcoa Foundation’s Make an Impact environmental campaign that targets employees and the communities where Alcoa

operates.
n Establish, in every community where we are present, a partnership with a non-profit organization to carry out tree plantings in

which employees can participate.

n Complete two simultaneous volunteer initiatives with the employees of Baie-Comeau, Bécancour and Deschambault in spring

and winter 2011.

n Carry out eight tangible environmental actions as part of the new Alcoa Green Works initiative, taking place between April 21

and June 21, 2011.

 Alcoa Canada
18 Global Primary Products
Economic development

Economic development
Signs of recovery
While 2009 ended on an uncertain note, 2010 will be remembered
as a year of transition. The price of aluminum recovered some of its
vigor, although it did not reach the same heights as in 2008, after
which the economic crisis battered our sector.

Fierce global competition in labour costs, the strength of the Cana-

dian dollar and the eventual increase (in 2015) of our energy costs
are some of the “headwinds” facing Alcoa Canada Global Primary
Products. The efforts of our people to distinguish themselves from
the competition, to innovate and produce aluminum more efficiently and economically, continued to generate results in 2010. This is
also how we are helping ensure that the future of aluminum in Québec remains as strong as elsewhere in the world, where demand
rose by 13% in 2010. This demand is expected to leap forward another 12% in 2011, namely due to policies aimed at increasing
vehicle energy efficiency.

The efforts of our people to distinguish themselves from the competition,

to innovate and produce aluminum more efficiently and economically continued
to generate results in 2010. This is also how we are helping ensure that the
future of aluminum in Québec is as strong as elsewhere in the world.

A Chair for greener aluminum

To further improve the environmental scorecard of aluminum pro-
duction and ensure its continued expansion in Québec, Alcoa contri-
buted to the creation of a new Chair at Laval University in Quebec
City in June 2010, in collaboration with the Natural Sciences and
Engineering Research Council of Canada (NSERC). The NSERC/
Alcoa Industrial Research Chair on Energy Efficiency and the
Advanced Modeling of Aluminum Electrolysis Cells is enabling
about 40 students to work on applications for decreasing the
quantity of electricity used to produce aluminum and reducing CO2
emissions.

Alcoa and its worldwide research fund contribute financially to the

Chair and offer services, including access to the Deschambault
photo - Marc Robitaille

Smelter and the use of its research infrastructure.

 Alcoa Canada
Global Primary Products 19
Economic development

Best practices certification ramping up

Our region’s willingness to foster the sharing and certification of best practices was strongly demonstrated in 2010. With a total of
13 best practices certified and 35 certificates obtained during the year, Alcoa Canada Global Primary Products topped all Alcoa
regions worldwide. In addition to ensuring more efficient operations, the best practices approach fosters improved environmental
performance at our facilities.

In 2011, the process will continue, thanks in part to 55 Kaïzens scheduled at our facilities throughout the region. Fifteen new best
practices should be implemented during the period.

Capital expenditures for 2010 (in thousands of US $)

Plant Growth Health and Environment Cost Operational Energy Total

safety reduction maintenance efficiency

Baie-Comeau 823 1,992 432 584 9,134 441 13,405

Bécancour 3 2,607 0 30 14,427 0 17,067

Centre of Excellence 0 0 0 0 1,666 0 1,666

Rod Plant 0 86 69 0 39 8 201

Deschambault 240 710 81 141 16,529 193 17,894

Total Canada 1,066 5,394 581 756 41,794 642 50,233

New steps in the modernization of the Baie-Comeau Smelter

The modernization project is progressing according to schedule. An important milestone was achieved in November 2010 with the
removal of the last C Series pot, the dismantlement of which had begun in 2009. In total, 184 pots will have been removed from the
site to make room for new F Series pots. On average, 50 of the smelter’s employees worked on this initiative.

The pre-feasability phase, launched in 2010, will continue with a view toward optimizing project costs. This phase should yield to
the detailed engineering phase during the course of 2011.

To adequately brief suppliers wishing to bid on products and services contracts for the project, and to foster local procurement,
the project team and the CLD de Manicouagan met with contractors from the region in September 2010. During this meeting, they
presented the modernization project, its schedule, the procurement policy, examples of the units and quantities that will be requi-
red, and how to qualify. A similar exercise will take place for suppliers from the rest of Québec. Finally, the community meetings,
which have been taking place regularly since the project was announced, will continue in 2011.
 Alcoa Canada
20 Global Primary Products
Economic development

Responsible procurement
In accordance with Alcoa’s philosophy of fostering sustainability in every aspect of its operations, we completed our pilot project
to evaluate the sustainable practices of our Québec suppliers in 2010. In light of the responses to our questionnaire by a test
group of more than 80 suppliers, we decided to focus on assisting our suppliers in improving their own practices so that, in the
medium term, we can formally establish responsible procurement criteria across the region.

At the same time, we invited 12 of our suppliers to participate in the BNQ 21000 project of the Ministère du Développement
économique, de l’Innovation et de l’Exportation. Funded in part by Alcoa, this program will enable organizational sustainability
diagnostics to be performed and provide assistance in the development and execution of action plans in this area.

In addition, we participate in the Alcoa Inc. working group seeking to establish a responsible procurement strategy for the entire
organization.

2010 Objectives Result Comments

Develop a responsible procurement approach
based on the pilot project carried out with suppliers
in 2010.
Pursue the modernization of the Baie-Comeau
Smelter.
Implement 18 best practices in Québec plants.
13
Develop a strategic plan to position ourselves
strongly in the global marketplace.
The pilot project was successfully completed with
more than 80 suppliers. We are also working with the
international team developing Alcoa’s global
approach to responsible procurement.
13 best practices were implemented and 35 certificates
obtained, the best performance within Alcoa’s global
network. All 18 best practices should be achieved
by mid-2011.
The 2011-2015 strategic plan is nearly completed and
will be rolled out in 2011.

2011 Objectives
n Roll out the strategic plan that will enable GPP Canada to address the challenges it faces between now and 2015, namely to
remain competitive globally.
n Pursue the modernization of the Baie-Comeau Smelter.

n Support the development of Québec’s aluminum “value chain” and increase the synergies between the various stakeholders:

suppliers, equipment manufacturers, primary products manufacturers and transformers.

n Align our responsible procurement project with Alcoa’s global policy, tailor objectives from the latter to the Canadian market, and

begin implementing the policy in the region.

La version française de Regard sur le développement durable 2010 est disponible
au: www.alcoa.com/canada/fr/home.asp

When required, amounts in U.S. dollars have been converted into Canadian dollars
at the average exchange rate for the year 2010 (US$1 = CA$1.0307).

Editors:
Louis-Philippe Péloquin
Communication Advisor
Alcoa Canada Global Primary Products

Lise Sylvain
Regional Manager, Sustainability
Alcoa Canada Global Primary Products

Collaborators:
Marie-Josée Alain
Michel Blais
France Fiset
Marie Hanquez
Lysane Martel
Gilles Quenneville

Creative and production:

Relations publiques Pélican

1 Place Ville Marie, Suite 2310

Montréal, Québec  H3B 3M5
(514) 904-5030
www.alcoa.com/canada