Harnessing the Sustainable Potential of Aluminium Sustainability Report 2012
Welcome to Qatalum’s second annual Sustainability Report. In this report, we present our approach to sustainability and discuss the 2012 progress made on our most material sustainability issues. This report has been certified by the Global Reporting Initiative (GRI) G3.1 framework as a level B report.
Our 2012 Sustainability Report Overview Chairman’s Message CEO’s Message About Qatalum Company Profile Excellence in Governance Board of Directors and Committees Board of Directors Board Committees Management Organizational Structure Our National Mandate Our Mission Our Principles Our Values The Qatalum Integrated Management System International Management Systems
1 3 4 5 5 5 5 5 5 6 6 6 6 7 8 9 9
Harnessing Aluminium’s Developmental Potential 10 Aluminium’s Impact Qatalum’s Impact Governance of Sustainability at Qatalum Committed to Sustainability Reporting and the Energy and Industry SDIR Programme Sustainability Performance Snapshot
10 10 10
A Sustainable Metal for Developing Qatar
13
Uses in Society Aluminium’s Green Credentials Qatalum Aluminium and a Greener Qatar A Sustainable Metal for Developing Qatar Supporting Qatar Economic Diversification Creating Socio-economic Impact through Downstream Development Promoting Qatar and its Aluminium Industry
13 13 13 15 15
Production Excellence and Economic Return
18
Qatalum Production System Quality Product Qatalum Quality Policy Qatalum Production System Our Supply Chain Total Production Supply Chain Responsibility Economic Impact
11 11
15 16
18 18 19 19 19 19 19 20
Managing Our Environmental Impact
22
Environmental Protection Expenditures Climate Change and Energy Total Energy Consumed Greenhouse Gas Emissions Other Air Emissions Water Management Fresh Water Management Blowdown Water Seawater Management Waste and Byproduct Management Non-hazardous Waste Hazardous Waste Sustainable Solutions for Byproduct Management Biodiversity
22 22 22 23 23 24 24 24 24 25 25 25 25 25
Workforce and Qatarization
27
Workforce Profile Diversity Workforce Profile Turnover Qatarization Qatarization Activities Training, Development, and Engagement Engagement
27 27 27 28 28 29 29
Ensuring Safety, Promoting Wellness
32
HSE Policy Process Safety HSE Performance Employee Safety Contractor HSE Occupational Health & Wellness Health in the Community Activities
32 32 33 33 33 33 34 34
Appendices
35
Appendix A: Map of Stakeholders Appendix B: Report Parameters Appendix C: GRI Index G3.1 DMA Description
35 37 37 37
Contact
37
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Sustainability Report 2012
Chairman’s Message It gives me great pleasure to share with you Qatalum’s second annual Sustainability Report, which highlights our progress and achievements in 2012. This report addresses the call from His Excellency Dr. Mohammed bin Saleh Al Sada, Qatar’s Minister of Energy and Industry, for the sector to report on its sustainability performance as part of the Sustainable Development Industry Reporting (SDIR) Programme. Taking inspiration from this call, Qatalum has committed not only to submitting its sustainability performance as part of the SDIR Programme, but also to the public release of our performance in the form of this sustainability report. Looking back on our first complete year of operating at full production, we have already come a long way toward achieving our mission of operational excellence. Our commitment to this mission is central to our work; for Qatalum, this means ensuring that our staff is well trained, healthy, and safe, that the efficiency of our production process is constantly improving, and that the quality of our product continues to be exceptional. Qatalum continues to integrate sustainability into its core strategies, corporate culture, and DNA. As a reflection of our emphasis on sustainability, in 2012 the Board of Directors approved creation of a full-time Sustainability Manager position to help ensure that sustainability is embedded into everything we do. Also in 2012, we began planning for a facility that aims to develop aluminium cladding that will reduce buildings’ carbon emissions in Qatar. As we progress into the future, Qatalum will continue to be a leader in mitigating the environmental impact of production and will work to make our end product even more sustainable. In an effort to continue to improve and grow our sustainability efforts, we offer in this report an honest and transparent presentation of our company’s 2012 performance. We also hope this report will serve as a tool for stimulating further stakeholder engagement and participation. I would therefore like to extend a warm welcome to Qatalum’s 2012 Sustainability Report.
Abdul Rahman Ahmad Al-Shaibi Chairman of the Board of Directors
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Sustainability Report 2012
CEO’s Message I am happy to welcome you to Qatalum’s second sustainability report, entitled “Harnessing Aluminium’s Developmental Potential.” This report clearly captures our commitment to advancing the Qatar National Vision 2030, presenting the steps we have taken to realize this vision as well as our performance to date. The report also reflects our 2012 focus on the developmental value of our industry and product as we continue to catalyze the evolution of a sustainable aluminium industry in Qatar. At Qatalum, we work constantly to improve our processes while continuing to produce a high-quality product. We call this the Qatalum Production System: both a culture and a system of guidelines that shape every aspect of our business, from management to production. I am proud to confirm that as a result of this system we continue to exceed industry standards in numerous areas and we continue to improve our performance. 2012 was our first complete year of operating at full production capacity, and Qatalum was able during this year to have a greater impact on Qatar’s economic diversification, social progression, and environmental sustainability as it emerges into a new age. Our impact included organizing and hosting the 2012 Arabal satisfaction, which is the leading aluminium trade event in the Middle East. Additionally, we have established our first agreement with a local downstream customer. Through our annual sustainability reporting process, we continue to increase our company’s transparency and accountability to all of our stakeholders while also satisfying the requirements of the industry’s reporting programme. We look forward to your thoughts and feedback on our report and on our continuing drive toward the sustainable development of the company, industry, and the state of Qatar.
Tom Petter Johansen CEO
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About Qatalum Qatalum (Qatar Aluminium Limited) is a joint venture between two well-established industry leaders, Hydro Aluminium and Qatar Petroleum (QP). The basis for Qatalum was established in 2004, when Qatar Petroleum and Hydro signed a head-of-terms agreement for the Qatalum Project. The Joint Venture Agreement was signed in 2007, and construction on the project commenced in the same year. Formal operations began in 2009, and the smelter’s full production capacity was achieved 2 years later in 2011. Despite the company’s youth and the newness of the industry to Qatar, Qatalum has quickly become internationally known for our contributions to development of the aluminium industry. Going forward, we continue to strive for operational excellence and sustainable business practices. Qatalum has the ability to produce over 625,000 tonnes of high-quality primary aluminium products per annum from twin 1.2-kilometer potlines. Our complex facilities include a carbon plant, port and storage facilities, and a captive power plant. Qatalum is ISO 9001 certified and is a listed brand on the London Metal exchange (LME,) and our state-of-theart casthouse has been ISO/TS 16949 certified. The casthouse produces customer-specified value-added products such as extrusion ingots and foundry alloys that meet the stringent quality standards of Qatalum’s global customer base. Marketed by Hydro Aluminium’ extensive global network, the aluminium products manufactured by Qatalum are used in a variety of industries including automotive, construction, and engineering. Qatalum’s aluminium thus reaches the entire global community. Qatalum has a dynamic and diversified work force representing over 34 nationalities, and we are pursuing industrial diversity for Qatar and its people by actively creating a future of environmental sustainability and economic opportunities.
Company Profile Company Name: Qatar Aluminium Limited Location: Mesaieed Industrial City Product: Primary Aluminium Shareholders: Qatar Petroleum (50%) and Hydro Aluminium (50%)
Excellence in Governance Excellence in corporate governance is a central aspect of Qatalum’s mission and values. Our highest governance authority is the Board of Directors, which has established several committees to assist with advisory and support functions. Qatalum has a robust Internal Audit group which reports directly to the Board/Board Audit Committee, and Qatalum’s management also reports directly to the Board.
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Sustainability Report 2012
Board of Directors and Committees Board of Directors Qatalum’s Board of Directors consists of eight individuals. Qatalum places a high priority on accountability, integrity, and risk mitigation, and all Board directors are non-executive members of the company. Each of the company’s shareholders has the right to appoint four directors.
Board of Directors Abdul Rahman Ahmad Al-Shaibi – Chairman
Hilde Merete Aasheim – Vice Chairman
Ibrahim Al-Kuwari
Odd Ivar Biller
Hamad Mubarak Al- Muhannadi
Zafer Nahawi
Ahmed Abdulla Khaja
Tom Rotjer
Board Committees The Board Audit Committee, which includes four Board members, assists the Board in overseeing the effectiveness of internal controls, risk management, and governance processes. It also oversees compliance and regulatory issues and any other issues related to enforcement of Qatalum’s Code of Conduct. Other sub-committees reporting to the Board include the Finance and Commercial Committee and the Insurance Advisory Committee. The Finance and Commercial Committee advises the Company and the Board on tender committee matters, financial performance, and commercial issues, while the Insurance Advisory Committee assists the Company with matters pertaining to insurance and insurance claims management.
9
Management Qatalum has a progressive management structure featuring top-level management, mid-level management, and first-level management. Although the CEO is the management head, management reporting lines are shared between the CEO (primarily for operations issues) and the Deputy CEO (primarily for support functions) in order to reduce administrative burden and bottlenecks.
CEO
Executive Secretary
Internal Audit Manager
DECO Executive Secretary Department Manager Communications
CFO Finance
Chief Administrative Officer HR & Administration
Department Manager Procurement
Chief Supply Chain Officer Supply Chain
Chief Quality & HSE Officer
General Counsel & Company Secretary
HSEQ
Legal
Chief Power w Officer Power Group
Chief Operations Officer
Chief Technical & Project Officer
Operations
Technical& Project
Sustainability Manager
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Sustainability Report 2012
Our National Mandate Qatalum’s creation was a direct outcome of the QNV 2030’s goal of diversifying the industrial base of Qatar and emphasizing knowledge-based industries. Although our primary mandate relates to the aluminium industry, Qatalum’s contributions to the QNV are multifaceted, and have grown to include greater aspects of Qatar’s development.
Our Mission
Our Principles Principle 1
Standardized work processes:
- Defined critical processes - Content of the standards - Following up the standards - Development of the standards
Defined customer and supplier relationships:
- Defined customer/supplier agreements - Content of the agreement - Meeting and decision structure - Direct communication
Principle 3
Optimized flow:
- Priorities and planning - Flow of products, services and information - Work-process flow - Non-defective goods
Principle 4
Dedicated teams:
- Team organization - Roles, responsibilities and competence development - Joint visible targets - Systematic improvement work
Principle 5
Visible leadership:
- Clear and visible - Involves and delegates - Support and coach Gives feedback and recognition
Principle 2
11
Our Values
Enthusiastic
Trustworthy
Respect
Proactive
12
Attitude Motivation, Seeing the big picture
We have a positive attitude toward our jobs and each other.
Ability Competence, Reliability
We always keep our word and ensure the job gets done right
Ethics Relationships, Teamwork, Communication
We work in an open and cooperatve way.
Drive EfďŹ ciency, Innovation
We are driven to meet optimum standar while always seeking improvement.
Sustainability Report 2012
The Qatalum Integrated Management System The Qatalum Integrated Management System reflects our mission and principles and guarantees that these priorities are reflected in our production process. Qatalum’s system upholds our health, safety, and environment standards, while allowing us to work efficiently to produce a high-quality product. Also embedded in this system are all of the international standards for which Qatalum has been certified
15 Elements 1
15 Review & Continual Improvement
ACT
13
14
Incident & CAPA Management
Management of Change
PLAN Qatalum Way
Document & Records Management
Policy Development
12
4
5
Internal Control
Qatalum Organisation
Value - Based Management
CHECK
67
11
8
Systematic Maintenance
Critical Process Management
10
DO
Business Continuity, Risk Management & Hazard Analysis
People Management
Communication & HSE Consultation
9 Customer Supplier Relation Management
International Management Systems • ISO 9001: Quality Management System • ISO/TS 16949: Automotive Industry Specific Quality Management System
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Harnessing Aluminium’s Developmental Potential Sustainability at Qatalum is encapsulated in our continuing drive to harness the developmental potential of aluminium in a way that contributes directly to the four pillars of the Qatar National Vision 2030. Our sustainability framework, pictured below, aims to capture the sustainability impact of aluminium as a material and as an industry, and to reflect how we work and perform as a company.
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Sustainability Report 2012
Aluminium’s Impact Aluminium is a remarkable metal that impacts the world’s population on a daily basis, largely unbeknownst to most people. Aluminium is able to reduce environmental impact and improve quality of life through its uses in buildings, transport, and packaging. Through our production of aluminium, Qatalum directly contributes to Qatar’s economic diversification and socio-economic development via employment and the growth of the downstream aluminium industry.
Qatalum’s Impact Qatalum has a significant direct impact on all four pillars of Qatar’s National Vision. Our production and economic return create great value and employment for Qatar; our incorporation of some of the most advanced technology available helps to mitigate environmental impact; our ongoing investment in employees and in particular local national employees supports the development of people; and we strive to ensure that our operations are conducted in a safe and socially responsible manner.
Governance of Sustainability at Qatalum The implementation and monitoring of sustainability is ingrained throughout Qatalum, and is the responsibility of everyone in the organization. To further strengthen the governance and ongoing propagation of sustainability, in 2012 Qatalum management hired a sustainability manager and charged him with raising awareness, conducting training, continuing to report on sustainability performance, and in general further embedding sustainability into our organizational strategy. This new position was presented to the Board of Directors and was ratified unanimously.
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Committed to Sustainability Reporting and the Energy and Industry SDIR Programme Under the wise guidance of the Minister for Energy and Industry, the Sustainable Development Industry Reporting (SDIR) programme has continued to grow in strength. In 2012, Qatalum voluntarily participated in the programme together with 33 other companies, leading to the release of our first public sustainability report covering our 2011 performance. For this we received recognition and a certificate of appreciation from the Minister. In 2013, the SDIR programme has become a mandatory requirement, and all companies must submit a sustainability report to the Qatar Petroleum QP HSE Regulations and Enforcement Directorate (HSE DG). Qatalum continues exceed that requirement by releasing a public sustainability report utilizing the Global Reporting Initiative (GRI) G3.1 guidelines and submitting it for review by the GRI; this year’s report has been awarded a level B application level. Sustainability Performance Snapshot Strategic Focus
Proposed KPIs
A Sustainable Metal for Developing Qatar
Number of Qatar customers
Production Excellence and Economic Return
Total production (tonnes)
Managing Our Environmental Impact
2010
468,789
627,971
Total sales revenue (in USD millions)
335
1,135
1,558
Total spending on wages and benefits (in USD millions)
123
126
137
Spending on locally based suppliers, service providers, and contractors (USD millions)
163
229
238
Total energy use – direct and indirect (GJ)
66,132,177
75,648,467
Natural gas consumed in the power plant (GJ)
65,752,927
71,616,006
240,703
1,120,128
0.10
0.13
Total fluoride emissions [kg/mt Al) CO2 equivalent for PFC (tonnes) Total GHG Emissions (total CO2 equivalent) in tonnes Total fresh water withdrawal (m3)
16
2012 1
Electricity from the national grid, Kahramaa (GJ)
Workforce and Qatarization
2011
Total workforce
1,167
Percentage of Qatarization
154, 574
63,396
4,627,675
5,766,591
550,815
434,903
1,224
1,249
2.7%
4.3%
Percentage of female employees
6.0%
4.7%
4.4%
Total turnover rate
6.2%
5.3%
5.7%
Average hours of training per employee
80.0
65.0
10.7
Average cost of training per employee (USD)
3,570
2,856
1,326
Sustainability Report 2012
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A Sustainable Metal for Developing Qatar
Section Topics • A Sustainable Metal • Developing Qatar
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Sustainability Report 2012
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A Sustainable Metal for Developing Qatar Aluminium ore (bauxite) is the most common metallic element, and the third most common element, in the earth’s crust. It makes up roughly 8% of the earth’s solid surface by weight. As a metal, aluminium is remarkable in its ability to resist corrosion and conduct electricity and heat, and in its flexibility and strength. It is easy to shape, making it ideal for a wide range of applications. Best of all, aluminium has unlimited recyclability.
Al
Use in Society Aluminium is a versatile material that makes up an important part of our everyday life. Finished aluminium products are found in everything from cars and planes to packaging and buildings, and countless other objects we come into contact with every day. As a packaging material, aluminium is highly effective in preserving food quality and can be developed to enhance flexibility and hold the right structure for each item. Aluminium is very hygienic and can thus be used in medicine; for instance, as a container for creams, it retains its shape once squeezed and does not expand and draw in air. Its use in planes and cars can lower the overall financial costs and environmental impacts associated with transportation, and when used in buildings, aluminium and its alloys can be both decorative and stronger than steel.
Aluminium’s Green Credentials Aluminium is infinitely recyclable because the metal loses none of its qualities or properties when recycled. Due to this remarkable fact, nearly 75% of aluminium ever created remains in use today1. Additionally, recycled aluminium requires approximately 5% of the energy needed for primary production. Aluminium has been shown to be a superior material for a number of products. For instance, in a vehicle, one kilogram of aluminium can supplement two kilograms of heavier materials like steel or iron. This allows for lighter cars that use less fuel and produce an average of 20 kg less emission. Aluminium is also a preferred packaging material because of its lightness, which results in less post-consumer waste.
1
20
International Aluminium Association http://recycling.world-aluminium.org/review/sustainability.html
Sustainability Report 2012
Qatalum Aluminium and a Greener Qatar The aluminium produced by Qatalum is high-quality premium grade material and is exported all around the world, in addition to coming into ever greater use in Qatar. Qatalum continues to promote the benefits and uniqueness of aluminium in helping to achieve the Qatar National Vision 2030, especially its potential to support the environmental pillar of the QNV. Qatalum is currently working to find more sustainable applications of finished aluminium. When used as a building material, aluminium significantly reduces a building’s carbon emissions and, in certain applications, contributes to a carbon-neutral building. In an effort to apply this technology in the Middle East, Qatalum and Hydro recently opened a research lab that will focus on developing aluminium solutions to create energy- and emissions-neutral buildings in the region. Qatalum also continues to promote responsible use and the recycling of aluminium in Qatar through our Eco-Step Programme, which accomplishes 100% recycling of our local customers’ aluminium.
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Sustainability Report 2012
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A Sustainable Metal for Developing Qatar Global consumption of primary aluminium has been increasing, with a compound annual growth rate (CAGR) of around 5% over the last decade, driven by developing markets such as China and India. The same is true of Qatar, where demand for aluminium is growing at a substantial rate. The 2004 creation of Qatalum was the result of Qatar’s strategic decision to invest in the upstream aluminium industry via creation of a primary aluminium smelter, serving the demand from booming Asian economies and the significant planned investment in infrastructure within Qatar. This decision has had a significant development impact by increasing Qatar’s economic diversification and socio-economic value through downstream sector development, and by helping to put Qatar and its aluminium industry on the regional and international map.
Supporting Qatar Economic Diversification The economic pillar of the QNV 2030 places a major focus on diversifying the country’s economy through the expansion of industries with competitive advantages derived from hydrocarbons. With Qatar’s abundant, competitive, and reliable supply of natural gas, the creation of large-scale industries helps to turn hydrocarbons into high-quality products to be used locally and exported globally.
Creating Socio-economic Impact through Downstream Development The aluminium sector in Qatar is growing as demand increases for large-scale infrastructure projects. Downstream industries, such as rolling, extruding, forging, and finishing, have a limited presence in Qatar; in the past, they have all relied on importing primary aluminium from abroad. Qatalum brings a key part of the upstream industry into Qatar by producing primary aluminium that is smelted locally and then converted into countless products used by people everywhere in the world. Qatalum is dedicated to growing the downstream aluminium industry in Qatar, thereby satisfying a growing demand in construction and infrastructure development. By selling our product directly to local customers, Qatalum is able to save cost in delivery, reduce our environmental impact, and further contribute to economic diversification and socio-economic impact through job creation and GDP contribution. It is for this reason that local customers in Qatar receive our highest priority.
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Sustainability Report 2012
In mid 2012, Qatalum began trial delivery to its first local customer, testing the product at their facilities. The success of this trial has successfully led to the signing of two agreements in early 2013 with Alunoor and Qatar Aluminium Extrusion Company for the delivery of 10,000 tonnes of aluminium per year. Although small in comparison to Qatalum’s production capacity, these initial contracts represent the start of an ongoing commitment by Qatalum to take an active role in developing industry in Qatar. Qatar Customers
2012
2013 Target
Number of customers
1
2
Tonnes of Products
-
10,000
Qatalum continues to share greater knowledge and understanding of aluminium in Qatar, promoting its properties and uses as a strong, versatile, and greener metal that will be central to Qatar’s development. Examples of such promotion include: Acting as a strategic partner in the 2012 Qatar Projects Conference. Partnering in 2012 with the Chamber of Commerce as the gold sponsor of the “Made in Qatar” exhibition to be held in 2013 to stimulate investment in industry Participating in the 2013 Aluminium Symposium, entitled “Aluminium – The Sustainable Metal for the Future of Qatar”, to be held at the Qatar Science and Technology Park.
Qatalum is the first and only company in Qatar to achieve ISO/TS 16949 certification. This allows Qatalum to supply the global automotive industry, and also allows local businesses to tap into high-quality resources in order to build value-added components for export, furthering downstream development and increasing employment.
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Promoting Qatar and its Aluminium Industry Qatalum takes an active role in promoting Qatar and Qatar’s aluminium sector, building a diverse range of international partnerships, business relationships, and investments. In 2012, Qatalum had the great privilege of organizing ARABAL, the region’s annual aluminium conference. Conference 2012 ARABAL International Aluminium Conference
Aluminium Brazil 2012
10th International Aluminium Extrusion Technology Seminar & Exposition
Aluminium 2012
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Description
Qatalum organized and hosted the 2012 ARABAL conference, in Doha. The focus of the conference was to highlight the key role energy plays in the industry and to present a knowledge-based perspective for the future of the industry in regards to geopolitics, society, technology, and markets. Qatalum participated in Aluminium Brazil 2012, part of EXPOALUMĂ?NIO, the International Aluminium Trade Show. Through this event Qatalum was able to introduce itself and its product to the sector on an international scale. The conference also offered ample opportunities to forge new business relationships. Qatalum used this event to explore collaborations with other industry leaders, share common challenges and innovative solutions, and explore new methods for improving operations. Aluminium 2012 is an annual gathering of aluminium producers, processors, technology suppliers, and consumers along the entire value chain. With over 25,000 visitors from the industry present at the trade fair, this was an excellent opportunity for Qatalum to network with potential new business contacts and to garner greater exposure for Qatar as a leader in high-quality aluminium production.
Sustainability Report 2012
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Production Excellence and Economic Return
Section Topics • Qatalum Production System • Quality Product • Supply Chain • Economic Impact
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Sustainability Report 2012
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Production Excellence and Economic Return Qatalum Production System The Qatalum Production System combines best practice principles, methodologies, and tools to achieve continual operational improvement. Qatalum’s production process utilizes new technologies that help to lower emissions and use approximately 25% less energy than production cells in 1990.
Mission Values Strategies Governing documents
Qatalum Principles
Best practice principles, methodologies and tools that guide continuous improvement within Qatalum.
Value based management
- Qatalum principles and focus areas
- Tools
- Procedures (SOP, OPL, C/S - relations)
- Operational control
The performance is improved by continuous improvement of:
Work processes, roles and relations
30
Qatalum Production System
- Cost, Quality, Volume and HES
The Qatalum production system is valid for the entire Qatalum organization including operating units, support functions and management.
Sustainability Report 2012
Quality Product Our process is designed to create a high-quality aluminium product that meets the best of international standards. Qatalum has recently achieved ISO/TS 16949 certification, which reflects our implementation of standards that aim to prevent defects, reduce variation and waste, and contribute to the continual improvement of the supply chain. Qatalum Quality Policy
We will achieve this by ...
- Ensure safety in all work operations as a main tool to Quality. - Delivering products according to our customers requirements and expectation. - Searching Quality in all processes, external and internal, though our systematic use of Qatalum Production System.
Qatalum Production System In accordance with the Periodic Audit requirement of ISO/TS 16949 certification, Qatalum solicited Hydro for feedback on their level of satisfaction with Qatalum’s aluminium. Hydro reported that the quality of the product was “very good.” This feedback process will be repeated annually and will be adopted for all new customers.
Our Supply Chain Qatalum sources its raw production materials from all around the world. At the present time, 8.1% of our spending on raw material is in the Middle East. Although the primary raw materials are not available in Qatar, our energy resources are 100% from local sources. Qatalum continues to be committed to increasing sourcing from local or regional suppliers, and one of our top priorities in the coming years is locating local vendors of appropriate quality and availability.
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Total Production In our first year of full production we exceeded our full production capacity of 585,000 tonnes/year by nearly 43,000 tonnes. This was a result of our exceptional production and efficient management systems. Total Production Tonnes
2011
2012
468,789
627,971
Spending on Raw Material (USD Millions)
2010
2011
2012
Middle East
13.6
51.9
44
Europe
9.7
27.7
32
Africa
0
0.5
0
North America
18.9
65.1
28
South America
40.6
14.5
92
Australia
121.7
303.5
249
Asia (excluding the Middle East)
51.1
97.0
98
255.6
560.2
543
Total
Supply Chain Responsibility Driven by our ambition to create a sustainable aluminium industry, we extend our sustainability and HSE commitments to our entire supply chain. To this end, each of our suppliers (Koppers for Tar Pitch and Rain CII – India for Coke) was audited in 2012 according to specific criteria that meet the ISO/TS requirements. The audit evaluated the companies’ HSE and CSR policies in addition to their quality and operational systems. All suppliers met the criteria and passed the audit. Our responsibility for our supply chain also extends to our local suppliers. Qatalum contractors’ HSE manual and policies establish clear accountabilities to ensure contractors’ active engagement, and provide consistent guidelines to eliminate HSE incidents among our contractors.
Economic Impact 2012 marked our first year of operating at full capacity. This is reflected in our earnings: in 2012, our products were sold around the world, resulting in over USD 1,558 million in revenue.
Total sales revenue (millions USD)
32
2010
2011
2012
335
1,135
1,558
Sustainability Report 2012
Currently, Qatalum directly provides over 1,200 job opportunities within Qatar. In 2012, our spending on employee salaries and benefits increased to USD 137 million.
Number of employees Total spending on wages and benefits (in USD millions)
2010
2011
2012
1,160
1,217
1,249
123
126
137
Qatalum continues to uphold its policy of increasing local spending, even though Qatar lacks the raw materials needed to produce aluminium. Local suppliers, contractors, and service providers are given priority over those located internationally. 2011
2012
Spending on locally based suppliers, service providers, and contractors (USD millions)
229
238
% of total expenditures on suppliers, service providers, and contractors
30%
25.8%
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Managing Our Environmental Impact
Section Topics • Energy • Emissions • Water Management • Waste and Byproduct Management • Biodiversity
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Sustainability Report 2012
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Managing Our Environmental Impact At Qatalum we try in every step of our production process to reduce and minimize our impact on the environment. We are keenly aware of the importance and value of our planet and its environment, and we refuse to compromise on its health and long-term sustainability. To this end, the Qatalum Production System has core principles that help us to better protect our environment. Our operations emphasize efficiency, which allows us to reduce our energy consumption and GHG emissions per unit of production. Environmental ProtectionExpenditures Type
Amount USD
Waste disposal
$595,944
Emission treatment
$8,416,195
Wastewater treatment
$1,013,084
Remediation costs, prevention costs, environmental monitoring and management costs.
$1,075,466
Total
$11,100,689
Climate Change and Energy
Our energy used per tonne of aluminium produced was reduced from 141.1 GJ/tonne in 2011 to 120.5 GJ/tonne in 2012.
The health of the environment is also supported by our HSE department. We abide by our Environmental Management Manual, which details sources of environmental impact and Qatalum’s approach to tackling each major area of focus, including climate change, water consumption, and waste management. A major focus of our climate change management is air quality and emissions from our facilities. Management of this includes monitoring and tracking our GHG emissions and utilizing technologies that remove much of the environmentally harmful matter from our emissions before they are released into the atmosphere. Total Energy Consumed Primary aluminium production is an inherently energy-intensive process. To meet Qatalum’s high energy demands, we maintain an on-site power plant designed to produce enough energy to meet all of Qatalum’s needs. In 2012, the capacity was reduced for part of the year due to a fire that significantly damaged the plant’s cooling tower. Following the fire, Qatalum’s emergency response program was able to rehabilitate the cooling tower in record time, minimizing the extra energy that had to be purchased from Kahramaa, the national electricity provider, to cover energy demands during this time. Now fully functional once again, the cooling tower allows Qatalum to generate more energy from the same amount of natural gas.
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Sustainability Report 2012
An additional source of energy consumption comes from vehicle use. Qatalum uses vehicles to transfer raw materials to the site and spent pot liners from the site. Direct Energy Consumption
2011
2012
Natural gas consumed in the power plant (GJ)
65,752,927
68,052,937
Diesel vehicle consumption (in liters) Diesel vehicle consumption (in GJ)
3,800,0002 138,547
3,432,629 130,440
Total direct energy consumption
65,891,474
71,616,006
2011
2012
Electricity from the national grid, Kahramaa (MWh)
66,862
1,120,128
(GJ)
240,703
4,032,461
2011
2012
66,123,177
75,648,467
Indirect Energy Consumption
Total Energy Consumption Direct and Indirect
2
Detailed totals of diesel consumption in 2011 were not recorded. This number is an estimate based on data of diesel procured in the second half of 2011, as well as on detailed records of diesel procured and consumed in the first half of 2012.
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Greenhouse Gas Emissions GHG emissions from the power plant represent the majority of our emissions, but some emissions result directly from our operations. Due to our plant having reached full-capacity production, our emissions for 2012 were higher than in 2011. Efficiency remains an important aspect of our operations, and we strive to generate ever-higher rates of output for fuel consumed. Total GHG Emissions (Total CO2 Equivalent) in tonnes
2011
2012
3,771,989
3,822,828
Power plant emissions – natural gas CO2
Reduction plant emissions – PFC equivalent
154, 574
63,396
Reduction plant – anode consumption CO2
676,213
874,075
Anode baking – pitch CO2
76,946
49,687
Anode baking – packing coke CO2
34,478
45,451
Diesel emissions
10,371
9,000
4,569,997
4,801,041
57,677
965,550
4,627,675
5,766,591
Total direct GHG emissions Total indirect GHG emissions Total GHG emissions
Other Air Emissions Other non-GHG emissions come from the power plant and reduction plant as detailed below. These include fluorides and PFC components emitted from our reduction plant. All captured fluoride is also recycled. Other Air Emissions from the Reduction Plant
Limit
2011
2012
Total fluorides (kg/mt Al)
0.30
0.10
0.13
PFC (both potlines) (kg/mt Al)
0.30
0.126
0.11
Additional emissions from our power plant include nitrogen oxides (NOx) and sulfur oxides (SOx). Qatalum uses catalyst reduction technology in the power plant to minimize NOx emissions; additionally, we have in place wet-scrubbing technology that permits the use of seawater to reduce sulfur dioxide emissions.
38
Total Emissions from the Power Plant
2011
2012
NOx (Tonnes)
2,004
1,500
SOx (Tonnes)
303
1,300
Sustainability Report 2012
Water Management Both fresh water and seawater are used at various stages in the production process. Qatalum implements a number of techniques and guidelines that allow for more efficient water consumption; some of these practices include regular treatment and reuse of water on-site and implementation of conservation measures and technologies. Total Water Withdrawal
2012
Fresh water and Seawater withdrawal (m3)
140,594,903
Fresh Water Management We manage our fresh water through a number of conservation practices to ensure that each drop is used efficiently. Our service and administration buildings use efficient water technologies, and we treat our wastewater to enable its reuse for on-site irrigation. Fresh Water
2011
2012
Consumed from municipality (m3)
550,815
434,903
Total fresh water discharge
34,000
220,000
Sewage treatment
N/A
85,000
Chemical treatment
N/A
135,000
Blowdown Water Some of the fresh water is used for the cooling towers and released as blowdown water from the boilers. More than 96% of this water is recovered, treated, and used for on-site irrigation. Blowdown Water Amount of blowdown water (m3)
2012 70,643 m3
Percentage used for irrigation *
96.5% (assuming all the makeup water is discharged as blowdown)
Percentage transported off-site
2,440 m3 (3.5%)3
*When the wastewater treatment plant is operating correctly, 100% of blowdown is used for irrigation. The 2012 blowdown rate was lower than 100% due to a prolonged open-cycle operation period as a result of the cooling tower fire.
39
Seawater Management Seawater is used for wet scrubbing and for the cooling tower. Once used, the seawater is treated to meet the Ministry of Environment’s specifications for quality and temperature, and is then returned to the sea. Seawater
2012
Total withdrawal from the sea (million m3)
140,2
Total volume of water discharged (million m3)
117,5
Waste and Byproduct Management Qatalum maintains waste management policies and practices to process its waste stream. We have begun a number of new initiatives that have allowed us to further reduce the environmental impact and cost of managing our material waste and byproducts. Our recycling program helps to reduce the amount of material sent to the landfill. In 2012, 145 tonnes of plastics, paper, and oil, were recycled and diverted from the landfill. Non-hazardous Waste Type of Waste ( tonnes )
2011
2012
General
3,792
3,486
Recycled plastic
88
49
Food waste
183
Not recycled
Paper
37
26
Oil
29
0
Recycled waste (Total)
337
145
2011
2012
0.056
0.128
Contaminated soil
496
92
Oil filters and oily rags
144
5.8
Total Waste
2011
2012
Non-hazardous and hazardous
5,106
3,874
Hazardous Waste Type of Waste ( tonnes ) Medical waste
40
Sustainability Report 2012
Sustainable Solutions for Byproduct Management At Qatalum, we are constantly developing new sustainable solutions to reduce our overall environmental impact. Through a unique agreement initiated by Qatalum, carbon powder and grade-A scrap steel from Qatalum are now being reused by Qatar Steel. Since the latter company is also located in Mesaieed Industrial City, long-distance transportation costs for materials disposal are eliminated. Since the beginning of full production, Qatalum has been faced with the difficult challenge of proper disposal of carbon byproducts. Properly disposing of carbon powder is expensive, costing up to QAR 3,000 per tonne. Through a mutually beneficial agreement, Qatalum is now able to provide carbon to neighboring industries, saving Qatalum up to approximately QAR 15 million annually and earning about QAR 18,200 annually.
Biodiversity Qatalum has put in place environmental management practices to minimize our impact on the environment. In furtherance of this goal, in 2006 we commissioned an Environmental Impact Assessment (EIA) of Qatalum’s operations and facilities. Our management processes are designed to control potential impacts identified in this study; in particular we closely monitor and control our fluoride emissions to ensure that they are within acceptable levels and will have no negative impact on local plants and wildlife. The only known area affected by Qatalum is the sea; water discharge is thus carefully monitored and regulated by Qatalum to minimize our impact on marine biodiversity.
41
Workforce & Qatarization
Section Topics • Workforce Profile • Qatarization • Training, Development, and Engagement
42
Sustainability Report 2012
43
Workforce and Qatarization Qatalum’s workforce plays a key role in ensuring that all of our operations perform at an optimal level. We invest considerable time and resources into growing, developing, and supporting our workforce.
Workforce Profile As we are still in the early stages of full-capacity production, our focus remains upon building a competent workforce and supporting their development and training.
Diversity Workforce Profile At Qatalum we believe in the importance of workforce diversity. Accordingly, we have focused on attracting more female employees and more young employees. Women are represented in both our staff and management, as well as in our highest governance level, the Board of Directors; additionally, employees aged 30 years and younger make up almost 16% of our workforce, and we plan to grow this number in the coming years. Employees by Level
2010
2011
2012
Senior management
12
13
10
Middle management
41
37
39
Staff
1,114
1,174
1,200
Total
1,167
1,224
1,249
Employees by Nationality
2010
2011
2012
37
33
54
# of Expatriates
1,130
1,191
1,195
Employees by Gender
2010
2011
2012
70
58
55
% Female employment
6.0%
4.7%
4.4%
Male employees
1,097
1,166
1,194
Employees by Age Group
2010
2011
2012
18–30
182
179
198
31–40
542
553
528
41–50
362
386
414
51–60
74
99
105
Over 60
7
7
4
# of Qataris
Female employees
44
Sustainability Report 2012
Turnover Our turnover rate has remained low despite the increase in our workforce size. This is a testament to our employees’ high level of satisfaction. Number of Departed Employees, Total
2010
2011
2012
72
65
71
Total turnover rate
6.2%
5.3%
5.7%
Number of Departed Employees, by Level
2010
2011
2012
Senior management
2
5
4
Middle management
5
11
36
Staff
65
49
31
2010
2011
2012
Female
20
10
11
Male
52
55
60
2010
2011
2012
18–30
8
6
13
31–40
27
19
28
41–50
24
22
20
51–60
10
14
9
Over 60
3
4
1
2010
2011
2012
3.2%
2.7%
4.3%
37
33
54
Total turnover number
Number of Departed Employees, by Gender
Number of Departed Employees, by Age Group
Qatarization In alignment with the goals of the QNV 2030, Qatalum is committed to increasing the number of Qatar nationals in our workforce. This requires building the skills and knowledge of the next generation of Qatari professionals and continuing to make Qatalum an attractive place to work. We view this as a sound long-term strategy, and we anticipate a steadily increasing Qatarization rate over time. In 2012, we created 25 new jobs, 21 of which were filled by Qataris.
Percentage of Qataris at Qatalum Number of Qataris at Qatalum
45
Qatarization Activities Our Qatarization activities demonstrate our commitment to building capacity within Qatar through provision of educational and training opportunities. Numerous other programs also reflect our keen focus on increasing the percentage of Qatar nationals working at Qa-
Activity
46
Description
Graduate Development Programmes
These programmes help to encourage recent local graduates from Qatari and international universities to join the Qatalum workforce.
Professional Development Programme (PDP)
Qatalum’s PDP targets professionals with relevant academic backgrounds but little or no industrial exposure, offering them a chance to gain experience and learn from Qatalum professionals.
Blended Learning Programme
This programme expedites the induction of national operators and technicians into Qatalum.
Qatar Career Fair, 2012
Qatalum participated in the Qatar Career Fair from the 1st to the 5th of April, 2012, attracting young Qatari nationals to join our alternative industrial base and become an essential part of Qatar’s future.
Summer Internship Programme
This year, 30 Qatari university and school students participated in a month-long mentorship programme. During this time students learned directly from their Qatalum mentors about the smelting process and corporate culture.
Qatalum National Scholarship Programme
This programme offers high-performing and high-potential students the opportunity to further develop their education in related studies.
High School Outreach
Qatalum sent representatives to the Al Wakra Independent High School to encourage young Qataris to join the labor market via the industrial sector gate.
Sustainability Report 2012
Training, Development, and Engagement Qatalum maintains two major training systems, both of which apply to all employees: the functional and competency training system and the performance training system. The first of these systems develops a training program based on the skills and functions required by a specific job. The second system assesses an employee’s skills and competencies and develops an individual training program based on his/her skill-set and career development plan. In conjunction with these systems, we ensure that all of our employees receive regular career development and performance reviews. Training, Company-wide
2010
2011
2012
91,416
54,516
50,216
Average hours of training per employee
80
65
11
Total hours of training for female employees
865
425
1,688
Average hours of training per female employee
64
30
31
90,551
54,100
48,528
Average hours of training per male employee
100
80
41
Average Hours of Training per Employee, by Employee Category
2010
2011
2012
Average hours of training for senior management
30
26
5
Average hours of training for middle management
40
16
8
Average hours of training for staff
80
65
41
2010
2011
2012
5,022,029
3,428,006
1,724,116
3,570
2,856
1,326
Total hours of training for total workforce
Total hours of training for male employees
Training Costs Total cost of training (USD) Average cost of training per employee (USD)
47
Engagement Creating a collaborative and open culture is an ongoing process that requires free communication and clearly established channels between all of our employees, to encourage open expression of opinions and needs. In addition to these core forms of engagement, we provide programs and activities aimed at building staff participation. The Qatalum Way is integral to the creation of our workplace culture. Our mission, vision, and principles are clearly displayed and presented in our offices and facilities, and employee engagement and involvement are encouraged via tools such as the intranet and a quarterly newsletter (“AL2tO3gether”). All of our operators and technicians are subjected to a competency-based performance review, and all of our employees are invited to participate in career development planning and frequent performance reviews. Most importantly, we seek our employees’ opinions through open town-hall meetings with top management, as well as via annual satisfaction surveys. Activity
48
Description
National Sports Day
Many of Qatalum’s staff participated in the Mesaieed Industrial City National Sports Day. This event was organized to encourage staff wellness by playing sports and engaging in other activities.
Al2to3gether Magazine
Qatalum has launched our first in-house magazine. The magazine is entitled “Al2to3gether”, which is a name that symbolizes the work spirit of Qatalum. The magazine is an open forum to discuss the ideas and plans for the company.
Football and Cricket
Qatalum participated in the Dukhan cricket tournament and the Chairman’s Football Cup. Both events were hosted by Qatar Petroleum.
Sustainability Report 2012
49
Ensuring Safety, Promoting Wellness
Section Topics • HSE Policy • HSE Performance • Contractor HSE • Process Safety • Occupational Health Wellness
50
Sustainability Report 2012
51
Ensuring Safety, Promoting Wellness At Qatalum, we aim to maintain high management and operating standards that ensure the safety of our employees. Our Health, Safety, and Environment management system is designed to achieve these standards without compromising our operational goals. We recognize that operational goals and HSE goals go hand in hand, as the operational excellence we strive for relies on a healthy workforce and safe operations.
HSE Policy Qatalum adheres to an HSE policy that maintains efficient operations while creating optimal safety and health conditions. This policy includes:
• Operating under safe, healthy, and environmentally acceptable working conditions.
• Continually improving our HSE measures by setting and implementing appropriate objectives and targets.
• Complying with applicable Qatari legal requirements and other standards adopted by the company.
• Ensuring a strong HSE awareness among our employees and contractors.
Process Safety We take all measures to ensure that our daily operational procedures are carried out in a safe and secure manner so as to protect our staff and facilities. Such measures include regular checks and monitoring of processes to ensure their safe operation, in addition to emergency response measures designed to appropriately address potentially dangerous situations, should any arise. HSE Leading Indicators
52
2011
2012
HSE standards (procedures) reviewed and updated
Number Percentage of procedures reviewed
12 33%
15 41%
Trainings completed on schedule
Percentage
100%
100%
Work permit compliance
Percentage of work permits sampled Percentage of compliance
20–25% average 70–80% average
30% 75%
Critical safety equipment inspections
Percentage of inspections completed
100%
100%
Emergency response drills
Number of emergency response drills held
15
10
Loss-of-containment incidents
Percentage of drills completed as scheduled
86%
83%
Incident investigation completion
Number Percentage
5 100%
10 100%
Sustainability Report 2012
HSE Management Leading Indicators – 2012 HSE leadership tours
HSE meetings
HSE inspections
HSE actions
Planned
6,905
2,237
1,574
13,462
Completed
7,756
1,968
1,041
11,555
% Completed
112%
88%
66%
86%
HSE Performance Qatalum treats the safety of its employees with the utmost gravity, and we work actively to eliminate all occupational safety hazards. Employee Safety Our employee reportable injury rate, already low in 2011, has decreased even further in 2012. This demonstrates the success of our safety policy and trainings. Safety Indicator (Employees)
2011
2012
0
0
Lost-time injury rate
0.47
0.64
Reportable injury rate
2.37
1.28
0
0
2011
2012
0
0
Lost-time injury rate
0.28
1.18
Reportable injury rate
0.98
1.97
Fatalities
Employee occupational illness rate
The following activities were carried out to better ensure our employees’ safety:
• Occupational health hazard awareness campaign for employees • First-aid training for employees carried out throughout the year • Workplace monitoring for exposure to chemical and physical hazards in various areas of the plant
Contractor HSE Our HSE policy and attitude extend to our contractors. We work with each contractor to make sure that they are properly vetted, have clearly stated our HSE policy as part of their contract, and are regularly monitored. Additionally, each contractor must complete an HSE performance review. These steps are crucial to maintaining our HSE standards. Safety Indicator (Contractors) Fatalities
53
Occupational Health & Wellness Our health and wellness programs and activities aim to ensure that all of our employees are physically able to perform their jobs. Regular medical tests are performed and ongoing training is offered to enable our employees to remain aware of, and manage, potential health concerns. Our facility also houses an on-site clinic to provide first-aid treatment of incidents not requiring hospital care. Occupational Health Routine Examinations
2011
2012
Total fitness examinations performed
191
194
Number of employees who received annual medical examinations
685
893
Qatalum’s HSE department runs an awareness campaign that focuses upon a different issue each month. This campaign is designed to raise employees’ awareness of the targeted health concerns, and better equip them to address potential conditions. Health training and seminars are held alongside the campaigns, and are also carried out by the Occupational Health department. Health and Hygiene Training Number of hours of occupational health and hygiene training Number of employees participating in occupational health and hygiene training
2011
2012
300 (approx.)
362
2,500 (approx.)
2,806 (approx.)
Qatalum takes an active approach to ensuring the overall wellness of our employees. Below are some of the programs and activities we have offered to support our staff’s wellbeing. Wellness Focus Area Diabetes
Diabetes monitoring, management, and counseling.
Breast Cancer
A breast cancer awareness campaign was carried out for female employees.
Hypertension
High blood pressure monitoring, management, and counseling.
Obesity and Weight management Cardio health
54
Description
Qatalum offers monitoring, advice, counseling, and guidance to help all employees manage their weight. Qatalum hosted a month-long heart awareness campaign that focused on blood pressure, blood sugar, cholesterol, and weight monitoring.
Sustainability Report 2012
Health in the Community A portion of Qatalum’s community contributions goes to community health and safety programs. Investing in the health of the people of Qatar is just one of the many ways we work to improve the overall wellness of our local community. Community Investments Total Community/Social Investment (Qatar Riyal)
2011 QAR 111,210
2012 QAR 164,773
Activities Qatar National Cancer Society – Qatalum continues to work with the Qatar National Cancer Society by providing financial support to campaigns working to reduce the incidence of cancer in Qatar. Holiday Safety Awareness for Children – Qatalum staff met with children from a local school to encourage better safety awareness. The students were encouraged to learn more about general safety by participating in a poster-making competition organized by Qatalum.
55
Appendices Appendix A: Map of Stakeholders Shareholders
Methods of engagement
Shareholders
Representation on the Board of Directors, including regular board meetings Active membership on the senior management team Performance reporting
Environment
Material issues Financial targets
Board committees
Engaging shareholders through sustainability management
Ensuring our compliance via internal audit and ethics committees
Legal compliance
Planning of strategic objectives and reports
Ethical governance
Compliance with environmental regulations
Minimizing of GHG and fluoride emissions
Reporting on material environmental issues
Waste reduction and management
Environmental impact assessments
Energy consumption Water usage Legal compliance with environmental regulations
Qatar
Communication with regulatory agencies
Recruitment and development of local talent
Collaboration and participation through government, regulatory agencies, and industry-level campaigns and initiatives
Development of local knowledge and expertise in the aluminium smelting industry
Activities for increasing Qatarization, including conferences and training activities
Methods of response
Community contribution and outreach Promotion of further industry diversification Safety and health precautions
Publishing an annual sustainability report that meets GRI reporting standards Use of efficient technology Reliance upon environment management manual Strict management of hazardous material Reduction in water consumption Hiring a full-time Sustainability Manager to oversee all related sustainability issues Engagement with the community through events and environment fairs Contributions to charitable organizations Qatarization steering committee and strong Qatarization efforts Proactivity in recreational community–employee activities
Reduction of negative environmental impact Climate change strategy Transparency and excellence in governance
56
Sustainability Report 2012
Shareholders
Methods of engagement
Employees
Annual performance reviews
Training and development
Career development system
Career development planning
Maintenance of diverse and inclusive workplace
Training programs
Intranet
Employee satisfaction
Newsletter (3 in 2012)
Healthy working conditions
Town Hall meetings
Overall health and primary care
Annual surveys
Material issues
Safe workplace Emergency preparedness
Industry Partners
(customers, suppliers, industry association)
Conferences
Mutual aid and support
Evaluation and satisfaction forms
Sustainable procurement
Membership in the Gulf Aluminium Council and International Aluminium Institute
Methods of response
Occupational hygiene studies Health awareness campaigns Health and safety training Baseline medical examinations
Regular dialogue with customers and partners
Transparency
Membership in industry associations
Local customers
Hosting ARABAL Participation in local and international conferences and trade shows
57
Appendices Appendix B: Report Parameters The data in this report represents our economic, social, and environmental performance for the year ending December 31, 2012. It also provides comparative data for 2010 and 2011 where possible. This report follows our first sustainability report, which covered 2011.
Shareholders
Contact
Process for defining report content
Mufeed Odeh Sustainability Manager Qatar Aluminium Limited, P.O. Box 23086, Doha, Qatar Tel +974.4403.1215; Mob +974.6600.6975 Email: Mufeed.Odeh@qatalum.com Determining Our Key Priority Issues – This report was guided by the GRI Index in the context of our stakeholder map, and follows our sustainability framework, which was developed based on our commitment to national and international development and sustainability goals. Each of the report sections presents the relevant key issues and significant KPIs representative of the issues outlined in the framework. Materiality – This report covers Qatalum’s economic, social, and environmental performance as it pertains to the issues of greatest concern to our stakeholders. Stakeholder Inclusiveness – In creating this report and planning for ongoing sustainability, we have considered the priorities and concerns of all of our stakeholders. Our focus for 2012 was on continued implementation of sound sustainability measures in both our management and operations.
Boundaries
This report presents information and details of Qatalum’s operations and correlations with its customers and suppliers.
Limitations
As we are still in the developmental stage, we acknowledge that there are areas of potential improvement; however, this report marks an improvement from our previous first report. There are indicators we are working on reporting that will contribute to greater transparency in the future.
Comparability
As a young organization reporting on our first complete year of full-capacity production, we include in this report data on our progress compared against our baseline 2011 report. In an effort to provide the most accurate information, we have restated data that was found to have been erroneously reported in the past. For ease of comparison with other reporting entities, we have utilized the Global Reporting Initiatives indicators, the most commonly utilized reporting framework in the world.
Data Measurement Techniques
To the best of our knowledge, all of the information within this report is accurate and represents the best data available to Qatalum and its stakeholders. Any data estimation or calculation has been stated within the report.
Restatements
58
None.
Significant Changes
This report contains no significant changes in the scope, boundary, or measurement methods applied in the 2011 report.
Assurance
The report has not been externally audited or assured.
Sustainability Report 2012
Appendices Appendix C: GRI Index
GRI
Indicator Definition
Page / Description
1.1
Statement from the most senior decision-maker of the organization
3,4
1.2
Description of key impacts, risks, and opportunities
3,4
2.1
Name of the organization
5
2.2
Primary brands, products, and/or services
5, 14
2.3
Operational structure of the organization, including main divisions, operating companies, and subsidiaries
5,6
2.4
Location of organization’s headquarters
Mesaieed Industrial City, Qatar
2.5
Number of countries in which the organization operates, and names of countries that either contain major operations or are relevant to the specific sustainability issues
5, 20
2.6
Nature of ownership and legal form
5
2.7
Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries)
11, 14, 15, 16, 17, 20
2.8
Scale of the reporting organization
20, 21
2.9
Significant changes that occurred during the reporting period, regarding size, structure, or ownership
There were no major significant operational changes
2.10
Awards received in the reporting period
There were no significant awards during 2012
3.1
Reporting period (e.g., fiscal/calendar year) for information provided
Calendar year 2012
3.2
Date of most recent previous report (if any)
2011
3.3
Reporting cycle (annual, biennial, etc.)
Annual
3.4
Contact point for questions regarding the report or its contents
Mufeed Odeh Sustainability Manager Qatar Aluminium Limited, P.O. Box 23086, Doha, Qatar Tel +974.4403.1215; Mob +974.6600.6975 Email: Mufeed.Odeh@qatalum.com
3.5
Process for defining report content
38
3.6
Boundaries of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers)
38
3.7
Specific limitations on the scope or boundaries of the report (see completeness principle for explanation of scope)
38
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and others
38
3.9
Data-measurement techniques and the bases of calculations, including assumptions and techniques
38
3.10
Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons
38
3.11
Significant changes from previous reporting periods in the scope, boundaries, or measurement methods
38
59
Appendices Appendix C: GRI Index
GRI
Indicator Definition
Page / Description
3.12
Table identifying the location of the Standard Disclosures in the report
38
3.13
Policy and current practice with regard to seeking external assurance for the report
38
4.1
Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight
5,6
4.2
Indication of whether or not the Chair of the highest governance body is also an executive officer
The Chairman of Qatalum is not part of the executive.
4.3
For organizations that have a unitary board structure, statement of the number of members of the highest governance body that are independent and/or non-executive members
5,6
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body
Qatalum’s shareholders are directly represented on the Board, each shareholder is entitled to appoint four of the eight board members. Qatalum holds regular “town hall” meetings with employees and recommendations are passed through senior management.
4.5
Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance)
Directors only receive a modest annual stipend for their work on the Board. The quantum of Qatalum’s annual employee bonus depends on its performance against its KPIs - which include measures for environmental, social and financial performance.
4.6
Processes in place for the highest governance body to ensure avoidance of conflicts of interest
The Company has a conflict of interest policy and regular audit review. Contracts requiring Board approval go through a rigorous tender process.
4.7
Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics
The Shareholders of the Company appoint the Board members taking into account of a range of areas of expertise required for the role.
4.8
Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance, and the status of their implementation
4.9
60
Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence to or compliance with internationally agreed standards, codes of conduct, and principles
6-9 Qatalum is frequently audited by its owner organizations on economic, environmental, social performance and the findings are reported to the Board of Directors. Qatalum’s internal audit and board audit committees also conduct audits.
Sustainability Report 2012
Appendices Appendix C: GRI Index
GRI
Indicator Definition
Page / Description
4.10
Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance
The Board conducts self-assessments and is also audited by external audits, internal audit and shareholder audits.
4.11
Explanation of whether or not, and how, the precautionary approach or principle is addressed by the organization
Qatalum adopts best practices and uses proven technology. The precautionary approach is embedded in its philosophy.
4.12
Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses
4.13
Memberships in associations (such as industry associations), and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic
37, Gulf Aluminium Council, Qatar Green Buildings Council
4.14
List of stakeholder groups engaged by the organization
35, 36
4.15
Basis for identification and selection of stakeholders with whom to engage
35, 36
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group
16, 19, 28, 36, 37
4.17
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting
36, 37
9
LABOR INDICATORS LA1
Total workforce by employment type, employment contract, and region
28
LA2
Total number and rate of employee turnover by age group, gender, and region
28, 29
LA3
Benefits provided to full-time employees that are not provided to temporary or parttime employees, by major operations
Qatalum has no part time employees
LA4
Percentage of employees covered by collective bargaining agreements
LA5
Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements
Two months
MM4
Number of strikes and lock-outs exceeding one week’s duration, by country.
Zero
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region and by gender.
33
LA8
Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.
33
LA9
Health and safety topics covered in formal agreements with trade unions
Not applicable – trade unions do not exist and are illegal in Qatar.
LA10
Average hours of training per year per employee, by employee category
29
LA11
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings
Qatalum works with employees on individual basis to try to meet their career needs.
LA12
Percentage of employees receiving regular performance- and career-development reviews
No policy covering collective bargaining agreements exists.
29
61
Appendices Appendix C: GRI Index
GRI
Indicator Definition
Page / Description
LA13
Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity
5,6, 28
LA14
Ratio of basic salary of men to women by employee category
Qatalum is equal opportunity employer; pay is not dependent on gender or race.
Social: Product Responsability PR1
Life-cycle stages in which the health and safety impact of products and services is assessed for improvement, and percentage of significant products and services categories subject to such procedures
32, 33, 34
PR2
Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impact of products and services, by type of outcome
Qatalum is not aware of any voluntary or regulatory non-compliance issues related to products and services.
PR3
Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements
Customers’ specifications are strictly met, and a product material safety data sheet is available. This sheet recognizes environmental and social concerns, and meets standards and accepted practices.
PR4
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcome
Qatalum is not aware of any voluntary or regulatory non-compliance issues related to products and services information and labeling.
PR5
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction
19
PR6
Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship
Qatalum adheres to all Qatari laws and regulations
PR7
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcome
Zero
PR8
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data
No complaints regarding breaches of customer privacy or loss of customer data were recorded.
PR9
Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services
No fines or monetary sanctions.
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations, and other community investments, retained earnings, and payments to capital providers and governments
19, 20
Economic EC1
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Appendices Appendix C: GRI Index
GRI
Indicator Definition
Page / Description
EC3
Coverage of the organization’s defined benefit plan obligations
Qatalum provides benefits and allowances, medical and life insurances, pension funds for nationals, and end of service gratuity for expatriates.
EC4
Significant financial assistance received from government
Qatalum is a private company and did not receive any assistance from the government.
EC5
Range of ratios of standard entry-level wage compared to local minimum wage at significant locations of operation
Qatar has no minimum wages.
EC6
Policy, practices, and proportion of spending on locally based suppliers at significant locations of operation
20
EC7
Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation
28, 29
EC8
Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement
19, 20, 34–Qatalum’s facilities in Qatar are located in the Mesaieed Industrial City, and the first line of contributing to the country is through land lease and fees.
EC9
Understanding and describing significant indirect economic impacts, including the extent of impacts
13-16, 20
EN3
Direct energy consumption by primary energy source
22-25
EN4
Indirect energy consumption by primary energy source
22-23
EN6
Initiatives to provide energy-efficient or renewable energy-based products and services, and reductions in energy requirements as a result of these initiatives
22
EN8
Total water withdrawal by source
24 Kahramaa is the national water and electricity provider through which Qatalum receives all its fresh water.
EN10
Percentage and total volume of water recycled and reused
24
EN11
Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.
EN12COMM
Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.
25, Qatalum’s facility is within Mesaieed Industrial City. Environmental Impact Assessment was performed to ensure biodiversity is not affected by Qatalum’s operations. 25
Environment
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GRI
Indicator Definition
Page / Description
EN14COMM
Strategies, current actions, and future plans for managing impacts on biodiversity.
25
EN16
Total direct and indirect greenhouse gas emissions by weight
23
EN17
Other relevant indirect greenhouse gas emissions by weight
23
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved
23
EN19
Emissions of ozone-depleting substances by weight.
23
EN20
NOx, SOx, and other significant air emissions by type and weight
24
EN21
Total water discharge by quality and destination
25
EN22
Total weight of waste by type and disposal method
Zero - Qatalum’s smelting operations does not result in any rocks, tailings, and sludges.
MM3
Total amounts of overburden, rock, tailings, and sludges and their associated risks.
EN23
Total number and volume of significant spills
EN24
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally
25
Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.
24, 25
EN26
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation
22-25
EN27
Percentage of products sold and their packaging materials that are reclaimed by category
There are no significant packaging of our products as they are transported directly by ship or trucks locally with no packaging.
EN29
Significant environmental impact of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce
22, A free bus service provided for a large section of employees, thus minimizing the use of cars.
EN25
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There were no spills or leaks at Qatalum in 2012.
Sustainability Report 2012
Appendices Appendix C: GRI Index
GRI
Indicator Definition
Page / Description
Socila: Human Rights HR2
Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken
Human rights criteria are included in all of our agreements with our contractors and suppliers.
HR4
Total number of incidents of discrimination and actions taken
No incidents of discriminations were reported within Qatalum employees.
HR5
Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights
Employee associations, such as unions and collective bargaining, are not present in Qatar. Qatalum takes extensive steps to engage employees individually and collectively as outlined on page 36.
HR6
Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor
Qatalum does not have operations where there is significant risk of child labor. Furthermore, the company does not hire anyone under the legal age at Qatar (16).
HR7
Operations identified as having significant risk for incidents of forced or compulsory labor, and measures taken to contribute to the elimination of forced or compulsory labor
Qatalum adheres to all laws relating to worker rights, and follows international guidelines. Overtime is duly compensated, and employee passports are not retained. The company also takes significant steps to help ensure that there are no violations of worker rights, including forced or compulsory labor, among contractors.
MM5
Total number of operations taking place in or adjacent to Indigenous Peoples’ territories, and number and percentage of operations or sites where there are formal agreements with Indigenous Peoples’ communities.
Zero
HR9
Total number of incidents of violations involving rights of indigenous people and actions taken
Zero
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GRI
Indicator Definition
Page / Description
Social Society SO1
Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting.
10-16, 22-25
SO2
Percentage and total number of business units analyzed for risks related to corruption
13 businesses, 100%
SO4
Actions taken in response to incidents of corruption
Qatalum has no incidents of corruption
SO7
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices, and their outcomes
There have been no legal actions against Qatalum
SO8
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations
There have been no legal actions against Qatalum
SO9
Operations with significant potential or actual negative impacts on local communities
None of Qatalum operations inertly pose a significant negative impact on local communities
G3.1 DMA Description
G3.1 DMA Description
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Cross Reference Direct Answer
DMA EC Disclosure on Management Approach Economic (EC)
11-22, 29, 30, 36
DMA EN Disclosure on Management Approach Environment (EN
23-26
DMA LA Disclosure on Management Approach Labour Practices (LA)
28-31
DMA HR Disclosure on Management Approach Human Rights (HR)
16, 20, 21, 28-35
DMA SO Disclosure on Management Approach Society (SO)
6, 11-17, 20-23, 28-33
DMA PR Disclosure on Management Approach Product Responsibility (PR)
20, 26, 33-35
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Qatar’s global aluminium producer Qatar Aluminium Limited (Q.S.C.) P.O.Box 23086 Mesaieed Industrial City. Qatar Tel.: +974 4403 1111 Fax: +974 4403 0800
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Youtube
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