Stakeholder Local Environmental Group †MyAssignmenthelp.com

Question: Discuss about the Stakeholder Local Environmental Group. Answer: Introduction The reported below used 2016 Annual Report with particular focus on the sustainability to help the Local Environmental Group understand how best Alumina Limited engages in practices and operations that might harm the environment and the mechanism that the company is undertaking both proactive and reactive ones to mitigate the effects to the environment. The report basically examines Alumina Limiteds commitment to report on the non-financial performance highlighted on its sustainability policy and its commitment to high-levels of transparent disclosure. The report will make the Local Community Group where Alcoa World Alumina and Chemicals (AWAC) undertakes its operations that may greatly affect the environment if unchecked. The report will mainly covers AWAC operations where the highest sustainability impact depends. The report will help provide an easy access to the consolidated information regarding the sustainability performance of AWAC and culminate in greater understanding of quality and value of such assets. Interpretation Alumina Limited Profile The Company is a leading Australian firm listed on the ASX and trades in the United States on OTCQX market. Alumina invest globally in bauxite mining, chosen aluminium smelting operations and alumina refining via its forty percent ownership of AWAC. The Alcoa is Aluminas partner Alcoa Corporation which owns the remaining sixty percent of AWAC and Alcoa Corporation is the manager. Alumina Limited is a typical representation of a distinct opportunity for the AWAC pure investment, one of global biggest producers of bauxite and alumina. Alumina has a clear understanding of the fundamental association between AWACs long-run profitability and sustainability of AWACs operating performance. The decisions made today by Alumina is clearly understood by Alumina Limited to have direct influence on future economic, environmental as well as social outcomes. The Alumina Limited acknowledges that sustainable development alongside growth remains fundamental to AWAC and hence recognize Alcoa Corporati on as the global leader in the corporate sustainable development. Sustainability: Overview Alumina Limited and Alcoa Corporation share a common belief that the impacts of its business stretch past its corporate borders thereby affecting social, economic and environmental elements of the stakeholders. Alumina Limited recognizes stakeholders to range from individuals affected directly by business; workers, suppliers, customers, shareholders, and the public in localities AWAC operates to those individuals impacted indirectly like uses of end product. Such a recognition is important to the Local Community Group (chosen stakeholder) to which report is intended since their objective is to protect all these mentioned stakeholders. Alumina Limited holds that to operate sustainably, the company has to acknowledge the responsibilities to such several interested parties and subsequently act accordingly (Kurup, Altham and Van 2005). AWAC has harnessed the resourcefulness, competency, capability as well as strength of the workforce thereby developing business responsibly and establishing a positive legacy for its several stakeholders that this local group seeks to protect (Deegan and Islam 2012). The sustainable operations of AWAC are driven by the belief that sustainability regards working more efficiently and effectively to enhance environmental outcomes as well restrain the environmental impact, enhance quality of life (QoL) of individual impacted by the operations of AWAC including AWAC employees safety and health thereby driving business performance and long-run value to its stakeholders. Alumina Limited is effective since it believe that sustainability goals must be integrated into business strategy as well as processes instead of a subordinate attempt that risks dilution. Despite being non-operating partner in AWAC, Alumina turn to, and support, Alcoa (global leader of best-practice sustainability), operating manager of AWAC, it its programs that drive sustainability (Fergusson 2014). Sustainability Material Risk and Long-run Objectives The Energy Usage Alumina Limited has effective availed information that helps check on the potential impact on sustainability of AWAC and long-run global objectives have been established by Alcoa to mitigate impacts. The company recognizes that energy is an important element in production of alumina and Aluminium. The firm has presented measures taken to ensure energy is used in an efficient manner as energy efficiency remains a key factor in sustainable environment performance. The report outlines that Almina Limited uses a 2005 as baseline where it has set a target to ensure ten percent reduction in energy intensity of the AWACs global operations by 2020 and this is expected to be 15% by 2030. Water Management and Security Alumina Limited report has clearly outlined the measures that are undertaken to ensue effective management of water and security. The company recognizes in its report that water is essential raw material utilized at each point of mining, smelting and refining operations of AWAC. The report reveals that the company is keen to ensure water sustainability as its scarcity will greatly impact AWACs production, costs, and performance financially. The report uses the 2005 baseline and projects a twenty-five reduction in average freshwater-usage intensity alongsidde30% by year 2030. Emissions The report recognizes the need to reduce emissions because production of Aluminium remains an energy-intensive operations. It recognizes how significantly carbon footing is affected by electricity energy provider. The report identifies clearly that Greenhouse gas emission (GHG) are natural corollary to the energy-intensive AWACs operations. The firm has subsequently highlighted in the report the need to set targets for reduction in both direct and indirect carbon dioxide equivalent intensity for international operations by 30% by 2020 and 35% by 2030. Land Management and Rehabilitation The report identifies bauxite mining as a contributor to most land being disturbed by operation of AWAC. The company recognizes the need to commit to minimize disturbances of original habitat. For this reason, AWAC work closely with community and regulatory stakeholders towards the restoration of such lands impacted to most productive use feasible, encompassing, where possible, re-establishing conditions for pre-operation. The report identifies the seriousness of Alumina Limited to achieve aggressive minimum environmental footprint for every mine by 2020. Waste The report clearly highlights the extent to which Alumina and Aluminum processing create waste product. It gives all information indicating that the most significant waste is bauxite residue approximated to be 1.5 tonne of residue result a tonne of produced alumina. The reports highlights that Alumina Limited prioritizes the minimization of waste via innovative process alongside alternative use for waste products to reduce environmental footprint of AWAC. The company has set to rehabilitate thirty percent of total bauxite residue storage region by 2020 which is expected to hit 40% by 2030. The company also aims at recycling or reusing fifteen percent of bauxite residue produced by 2020 and thirty percent by 2030. The company has also set to reduce bauxite residue land requirement a unit of alumina generated since 2005 by fifteen- and thirty by 2020 and 2030 in that order. Workforce Health and Safety The report highlights how strong systems and focused safety culture committed to endless enhancement are used to manage safety in the complex mining alongside manufacturing environment of AWAC. The report shows how substantial intellectual, system and financial resources investment has been done by Alcoa to ensure workforce health and safety by understanding the core drivers of safety behavior. The report indicates that Alumina Limited undertake such investment to get rid of facilities and serious injuries from operations of AWAC. The companys objective is zero fatalities and serious injuries as well as illness. Sustainability Approach Alumina Limited supports Alcoa to manage AWAC thereby achieving best practices in safety, environment, community as well as financial performance via strong, collaborative as well as informed governance. Alumina Limited together with Alcoa review AWACs long-run sustainability objectives and strategies. The report also outlines that Alumina Limited supports sustainability practices and policies implemented by Alcoa in AWAC to guarantee sustainable operations (Solutions 2016). The companys Board always assess any potential risks to environment via its own risk assessment processes. Adherence to Environmental Regulation Australian AWAC operations adheres strictly to several Commonwealth alongside state laws that govern the environment protection in water and air quality, emission of waste and disposal, assessment of environmental impact, rehabilitation of mine, access and use of ground water (Corder, Van, Lay and Van 2006). Most AWAC operation adhere to licensing requirement to conduct activities under environmental protection legislation of state of operation. AWAC also adhere to specific licences to subject site requirement. Sustainability Challenges The report has recognized some of the sustainability challenges that the Local Community Group need to acknowledge. The processes that are used by the company are highly aluminium and resource intensive which a key challenge to sustainability. Refining alumina from the bauxite calls for substantial energy in terms of steam and heat. Smelting Aluminium consumes substantial amount of electricity used in the conversion of alumina into aluminium metal through an electrolysis process (Cooling 2007). Whereas the alumina and aluminium production produce significant social and economic benefits, Alumina Limited remain mindful of need to balance such activities with responsible environmental stewardship to allow the minimization of adverse impacts on the local environment as well as the neighboring communities (Mudd 2007). Some of the key sustainability challenges that faced AWAC have been clearly identified. There was a challenge of energy sources for the energy intensive business but the company has engaged the experts to assess the potential of harnessing solar energy to reduce the impacts on the environment. The company also faced a challenge of improving energy efficiency in order to conserve energy as well as reduce related emission for sustainable environment (Beers, Bossilkov, Corder and Berkel 2007). The firm further face a challenge of bauxite residue as well as storage to reduce footprints as well as move towards alternative utilization for residue but the company has since introduce new technology for filtration. The company also faced a sustainability challenge of reducing carbon emission in order to enhance emissions intensity as well as reduce the absolute emissions. There was also a problem of water management to reduce the usage of freshwater. Further, Alumina Limited faced a challenge of minimizing impacts to biodiversity and land. Environmental Improvement Plans The Alcoa has taken the front foot strategy towards addressing the climate change by working closely with local communities. Alumina Limited is also working with the local communities to reduce the greenhouse emission via energy efficiency, productivity enhancement as well as technological innovations (Andrew and Cortese 2011). This is done by preparing environmental improvement plans (EIPs) for every location. Many of Alumina Limited operations in Australia engage with local communities when developing such EIPs. These plans are public commitments to endlessly improve environment performance, decrease environmental impacts as well as developing more sustainable practices. The EIPs help deliver enhanced transparency as well as accountability (Van and Bossilkov 2004). Conclusion The Local Community Group needs to understand the policies and strategies that Alumina Limited have taken to ensure sustainable environment. From the analysis, it clear that Alumina Limiteds report presents detailed information on how it ensures limited impacts on environment despite its high amount of waste and greenhouse gas emission and intensive energy requirements. Understanding these policies, practices and strategies will make the Local Community Group (selected stakeholder) meets its needs of ensuring that all the other stakeholders of Alumina Limited are protected from the Companys operations. It will help the stakeholder to adopt such policies, practices and strategies as a teaching tool to help create awareness in the local community to conserve environment. The Group also needs to advice other companies to remain sustainable. Therefore, this report provides them the platform through which they will acquire the best practices as adopted by Alumina Limited to reduce negative impacts of their operations on the environment. The report has also availed the specific environmental regulations that Alumina Limited must adhere to, such information is of great interest to this stakeholder in creating awareness. The limitation of the report is that it does not shown in monetary terms the impacts of the AWAC operations on the environment. It would have been appropriate for the report to reveal its cost to environment or the negative externalities it creates. Such an information would have helped the Group to understand how much the operations affect the environment and come with suggestions on how Alumina Limited can pay for such costs. References Andrew, J. and Cortese, C.L., 2011. Carbon disclosures: Comparability, the carbon disclosure project and the greenhouse gas protocol. Australasian Accounting, Business andFinance Journal, 5(4), pp.5-18. Beers, D., Bossilkov, A., Corder, G. and Berkel, R., 2007. Industrial symbiosis in the Australian minerals industry: the cases of Kwinana and Gladstone. Journal of Industrial Ecology, 11(1), pp.55-72. Cooling, D.J., 2007. Improving the sustainability of residue management practices-Alcoa World Alumina Australia. Paste and Thickened Tailings: A Guide, 316. Corder, G., van Beers, D., Lay, J. and van Berkel, R., 2006, June. Benefits and success factors of regional resource synergies in Gladstone and Kwinana. In Green Processing Conference (pp. 5-6). Deegan, C. and Islam, M.A., 2012. Corporate commitment to sustainabilityIs it all hot air? An Australian review of the linkage between executive pay and sustainable performance. Australian Accounting Review, 22(4), pp.384-397. Fergusson, L., 2014. A sustainability framework for the beneficial reuse of alumina refinery residue. Journal of Multidisciplinary Engineering, Science and Technology, 1, pp.105-120.Finance Kurup, B., Altham, W. and Van Berkel, R., 2005, February. Triple bottom line accounting applied for industrial symbiosis. In 4th Australian Life Cycle assessment Conference, Sydney, Australia (pp. 23-25). Mudd, G.M., 2007. The sustainability of mining in Australia: key production trends and their environmental implications. Department of Civil Engineering, Monash University and Mineral Policy Institute, Melbourne. Solutions, R., 2016. Residue management sustainability review: Aughinish Alumina Limited. Van Berkel, R. and Bossilkov, A., 2004. Sustainable development reporting in the Australian minerals processing industry. Green Processing, 2004, pp.185-195.