1. Sustainability in the Aluminum Industry in North America Presentation for NAM Marshall Jinlong Wang July 2013

2. Contents Aluminum Association and Aluminum Products Approach to Sustainability Actions to Sustainability Future Opportunities

3. The Aluminum Association  98 Member Companies: 51 aluminum producers and semi-fabricators and 47 technology and service providers  Representing the majority of aluminum product’s value chain including resource extraction, material production and product fabrication  Membership highly diversified with multinational companies, regional players and local small businesses  Goal is to promote the production and use of aluminum as the sustainable material of choice

4. Characteristics of Aluminum and Products  Strong and light weight  Versatile - Can be made into any shapes, sizes, and gauges to serve any designated functions  Rust & corrosion resistance  Great thermal and electrical conductor  Infinitely recyclable  Serving hundreds of millions of people in their daily life from food and accommodation to mobility and entertainment

5. Life Cycle of Aluminum

6. Approach to Sustainability Triple-Bottom-Line Life-Cycle-Thinking

7. Sustainability – Step I Research and Support  Analyzing the industry – quantitative approach  Identify trends, challenges and opportunities  Lay foundations for benchmarking and future goal setting  Analysis included product analysis and industry analysis  Extensive data survey and information compiling:  life cycle assessment survey,  industry sustainability management survey,  product use phase survey,  recycling survey, etc. – a very slow and painful process

8. Sustainability – Step II Benchmark and Continuous Improvement  Set long-term goals and sustainability pathways – voluntary programs  Reduce GHG Emissions and other environmental footprints  Document and Improve Use Phase Benefits  Increase Material Recovery  Promote and monitor progress  Keep the material for future generations

9. Step I Findings  Tremendous progress has been achieved during the past two decades in increasing efficiency and reducing environmental footprints during the production stage.  from 1990 to 2010, primary energy demand associated with primary aluminum production has been reduced 26%. Primary energy demand for aluminum recycling has been reduced 52%  Aluminum applications help society save energy and reduce environmental footprints.  Our research found that the energy savings of our products help achieved during the use phase offset the energy demand during the production phase, making aluminum an energy neutral industry  Aluminum recycling not only help save critical natural resources but also significantly save energy and reduce environmental footprints.  Recycling aluminum can save up to 95% of energy demanded for producing aluminum from bauxite ore.  End-of-life aluminum recycling in North America helps save at least 406 trillion Btu of energy each year

10. Step I Findings – Continued  Industry voluntary sustainability programs have had significant contributions to the society in reducing the environmental footprint.  from 1990, the North American aluminum industry has voluntarily reduced its PFC (a greenhouse gas) emission intensity of primary aluminum production by 85%.  This is the equivalent of a total of 200 million tons of CO2e elimination over two decades  Leader in using renewable energy among material industries: the share of renewable energy use for aluminum products is the highest among most other common materials –  more than 30% in terms of accumulative primary energy demand  75% during the aluminum smelting process

11. Future Opportunities  Recycling – limited understanding and consistent metal loss during the end-of-life of some products – estimated at least one million tons of metal loss each year  Product use phase – very limited understanding in terms of what’s exactly happening during the use time due to the extremely diversified applications as well as the very long life time in use  How can we do better – Constant efficiency improvement versus law of physics – Limited influence for small businesses on their supply chain – Technological breakthrough process takes time

12. Appendix: Footprints of the Industry

13. Appendix: Current Voluntary Programs

14. For more information, please visit: www.aluminum.org/SustainabilityReport www.aluminum.org/SustainabilityReport

15. Questions? Thank You!