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

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

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

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

Results

15 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. 0% 10% 15% 20% 25% 30% 35% % 2008

16 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 2008

Alcoa can’t wait for tomorrow!