Document b5dRvEEqvkojMLnDzxy3yOQno

1992 ALCOA ENVIRONMENTAL AUDIT REPORT Prepared for the Audit Committee of Alcoa's Board of Directors by the Alcoa Environmental Audit Group January 11, 1993 C60712 0049 1992 ALCOA ENVIRONMENTAL AUDIT REPORT INDEX Alcoa Environmental Audit System 1992 Overview - Objectives, Scope and Coverage - System Changes - Organizational Changes / Human Resources - Protocol Books 1992 Pilot Scoring System Results Education and Training 1993 Environmental Audit System Improvement Plans PAGE# 1 3 4 4 Appendices: A. Pilot Audit Schedule (4th Qtr., 1992) B. Alcoa Environmental Audit Schedule (1993) C. Alcoa Environmental Audit Schedule (1994) D. Alcoa Environmental Audit Schedule (1995) Index C60712 0050 1992 ALCOA ENVIRONMENTAL AUDIT REPORT To the members of the Audit Committee: Alcoa Environmental Audit System 1992 Overview: Aluminum Company of America broadened the objectives, scope, and location coverage of its Environmental Audit System in 1992. System changes, which included the development of an audit scoring process, a formal reporting process, and self certification procedures, were implemented to support the revised audit objectives. A full-time audit staff was one of the organizational changes made to address the expanded audit schedule and enhance the consistency and independence of audits. Audit protocol books were revised to provide an increased focus on environmental management systems. During 1992, 12 domestic and five international locations were audited. Eight of the 12 domestic and all of the international audited locations participated . in a pilot evaluation of the revised protocol books and new scoring system during the fourth quarter. A list of these locations is shown in Appendix A. Although "unofficial" audit scores were assigned to these locations, the principal intent of piloting the scoring system was to identify process improvement opportunities. The new scoring system will be instituted in January 1993. This will coincide with the full-time audit staff being available to lead and review all audits. As in the past, all locations audited in 1992 were required to develop corrective action plans for significant audit findings. Progress against plans for those locations which participated in the pilot scoring system will be monitored in 1993 via the Business Unit self-certification process. Objectives. Scope and Coverage- The objectives of Alcoa's Environmental Audit System were updated in 1992 to reflect the needs of Alcoa management. The objectives of the audit system are threefold: to provide an independent assessment of the environmental management systems and major environmental problems of Alcoa locations worldwide by verifying compliance with Corporate and government requirements; to improve the environmental programs within Alcoa through system analysis, technology transfer, and the sharing of information; and to identify situations that have the potential to develop into future environmental problems. The scope of Alcoa's Environmental Audit System was expanded and now includes the following environmental disciplines: air, water, solid and hazardous wastes, toxic substances such as PCBs and asbestos, waste minimization, land management, and the prevention/control of chemical releases. Under the new audit system, the management systems associated with each of these disciplines are examined during the course of an audit. Verification techniques such as inspections, interviews, and document reviews are then employed to determine whether the management systems are adequate to ensure compliance with all applicable laws and regulations as well as Corporate, Business Unit, and location policies, standards, guidelines, and best practices. Locations covered under the Environmental Audit System now include all active and inactive operating, warehouse, and transportation facilities, worldwide, in which Alcoa has majority ownership and/or operating control. Initially, all such facilities will be audited a minimum of once every three years. A longer frequency (e.g., five 1 C60712 0051 1992 ALCOA ENVIRONMENTAL AUDIT REPORT years) may be recommended by the audit manager for facilities which have been audited and are assessed to be low risk facilities. Facilities receiving an unsatisfactory audit score or those which fail to implement corrective action plans from a previous audit will be audited within one year. Audit schedules for 1993,1994, and 1995 are shown in Appendices B, C, and D respectively. System Changes: An environmental audit scoring system was developed to provide an objective assessment of a location's environmental management systems. The scoring system, which links directly to the revised protocol books, addresses 44 specific topics dealing with regulatory requirements, corporate policies/standards, and good environmental practices. Audit teams are required to evaluate the management systems associated with each topic area to determine whether the associated system is capable of ensuring compliance with applicable governmental laws/regulations as well as Corporate, Business Unit, and location policies, standards, guidelines, and best practices. Each topic area and associated management system is assigned one of four scores: "exceeds requirements," "meets requirements," "generally meets requirements," or "requires substantial improvement." Scores are then tabulated to determine an overall "satisfactory" or "unsatisfactory" location audit score. A satisfactory location audit requires that less than 10% of the management systems associated with the audit topics be in the "Requires Substantial Improvement" category and that the combined categories of "Exceeds Requirements" and "Meets Requirements" are greater than 30% for a location's first audit. This 30% minimum score will increase to 60% for the location's second audit. Beginning in 1993, written quarterly reports and semi-annual presentations will be provided to the Audit Committee of the Board of Directors by Alcoa's Senior Vice President of Environment, Health, and Safety. Business Unit Presidents may be asked to present to the Audit Committee for one of three purposes: to provide an overview of the environmental management systems and associated results for locations with exemplary audit performance; to review the circumstances associated with a location which receives two successive unsatisfactory audits; or to explain the circumstances associated with a location which fails to implement corrective action plans for significant audit findings from a previous audit. A self-certification process designed to facilitate implementation of a location's corrective action plans was also developed. In this process, Business Unit Presidents or their designated representatives are asked twice a year to document the status of corrective action plans for the significant environmental audit findings. All locations audited during the fourth quarter of 1992 will participate in this process. Organisational Changes / Human Resources: The audit schedule has been expanded from an average of 11 audits/year in recent years to nearly 40/year, as reflected in the 1993-1995 audit schedules. Also, Alcoa businesses have requested enhancements of the independence and consistency of audits. These needs were addressed, in part, through the creation of a new environmental audit organization. The new organization, which reports directly to Alcoa's Senior Vice President of Environment, Health, and Safety, consists of four full-time positions: one audit manager and three audit specialists. The audit manager and two of the three audit 2 C60712 0052 1992 ALCOA ENVIRONMENTAL AUDIT REPORT specialist positions were filled in the fourth quarter of 1992. Each of the incumbents, who will begin their new assignments in January 1993, are experienced Alcoa environmental professionals. A candidate has been offered the third audit specialist position. The Environmental Audit Organization is shown in the following chart: ALCOA ENVIRONMENTAL AUDIT ORGANIZATION In the past, environmental professionals from the central environmental resource unit and plant locations were assigned to lead individual audits. The three audit specialists will assume the team leadership role for all audits beginning in 1993. Audit team members will continue to be selected primarily from the central environmental resource unit and plant location environmental staffs for individual audits. External environmental audit consultants will also be utilized as team members in the new audit process. Several practices associated with team membership, training, and team leader roles have been adopted to further facilitate independent and consistent audits. Audit independence will be enhanced by limiting the number of team members from the same Business Unit as the location being audited and excluding anyone who may have worked at the audited location in recent years. In addition to having the audit specialists serve as the team leaders for all audits, two other practices will be implemented to facilitate audit consistency. First, only trained and experienced auditors will be used to conduct audits. Secondly, the significant findings, recommendations, and audit scores from each audit will be reviewed by the audit manager, the audit specialists, and the Senior Vice President of Environment, Health, and Safety before reports are issued to the audited location. Protocol Books: Audit protocol books for each of the environmental disciplines covered under the audit system (e.g., air, water, solid and hazardous waste, etc.) were modified/developed. The new protocol books were written to reflect the focus on the identification and effectiveness verification of a location's environmental management systems. Regulatory requirement summaries were added to the protocol books. 1992 Pilot Scoring System Results: During the fourth quarter of 1992, eight domestic and five international environmental audits were conducted using the newly developed audit procedures. The pilot scoring system was applied at each location to evaluate potential problem areas prior to its implementation in 1993. Twelve of the 13 facilities audited received a satisfactory rating. One domestic location exceeded the 10% limit of audittopics in the "Requires Substantial Improvement" category and did not obtain the required 30% percent in the combined categories of "Exceeds Requirements" and "Meets Requirements". The potential environmental impact associated with the audit findings from this location is minimal. The "unsatisfactory" score is due primarily to the failure of existing environmental management systems to adequately address regulatory requirements. These regulatory non-compliance items should be easily corrected in early 1993. 3 C60712 0053 1992 ALCOA ENVIRONMENTAL AUDIT REPORT The performance of the 12 facilities receiving a satisfactory audit compared to the criteria in the audit protocol books is illustrated in the following chart: OVERALL PERFORMANCE OF AREAS AUDITED 100 -r-------------------------------------------------------------------------------------- Hiqdwwtt RwiufewMrta knprevamaM Education and Training: Twenty-nine Alcoa of Australia employees participated in two separate environmental auditing skills and techniques training classes by Arthur D. Little, Inc. during the fourth quarter of 1992. This brings the total number of trained Alcoa environmental auditors to 65. The new environmental audit manager and environmental audit specialists will participate in a two-day Arthur D. Little training session entitled "Audit Team Leader Training" in the first half of 1993. 1993 Environmental Audit System Improvement Plans: Several opportunities for system improvement were identified as a result of the pilot audits conducted in 1992. The audit protocol books, although significantly improved, require additional work. The management system understanding and verification approach used in Arthur D. Little's protocol books will be integrated into Alcoa's protocol books. Summaries of Alcoa's standards, guidance, and best practices documents will also be included. This work is scheduled to be completed in the first quarter of 1993. The audit scoring system approach and the associated criteria for what constitutes a satisfactory audit have proven to be satisfactory and will be maintained. The scoring questions will be reevaluated in January 1993 to further enhance objectivity, worldwide applicability, and stronger linkage to Alcoa's audit protocol books. A formal audit feedback process will be developed. This new process, which will be implemented concurrently with the first audit conducted in 1993, will seek to gather system improvement ideas from locations and Business Units involved in the audits and from team members. Technology transfer/information sharing is a key objective of Alcoa's Environmental Audit System. To facilitate this objective, a process to communicate the best practices, benchmark management processes, success stories, and common areas of concern identified through the audit process will be developed and implemented in 1993. R. B. Kelson Senior Vice President Environment, Health, and Safety 4 C60712 0054 APPENDIX A Pilot Audit Schedule (4th Qtr, 1992) Plant City ALCOA OF AUSTRALIA Hedges Gold Kwinana Pinjarra Wagerup WA. Mining Kwinana Pinjarra Wagerup EXTRUSION A TUBE SYSTEM PimaIco Vernon Chandler Vernon INDUSTRIAL CHEMICALS Arkansas Vtdalia Bauxite Vidalia NORTHWESTALLOYS NW Alloys Addy PRIMARY METALS Permatech Rockdale Wenatchee Graham Rockdale Wenatchee State AZ CA AR LA WA NC TX WA Country Australia Australia Australia Australia Australia USA USA USA USA USA USA USA USA Fourth Quarter 1992 (R. F. Slagle) November October October October October (R. A. Kocattia) December October (M. J. Schnaler) October December (E. L Sandman) November (R. C. Rawe) December December October FILENAME 4Q92AUDXLS DATE PRINTED 04-JAN-W C60712 0055 APPENDIX B Alcoa Environmental Audit Schedule (1993) Plant City State AEROSPACE- COMMERCIAL ROLLED PRODUCTS Structural Laminates Parnassus ALCOA OFAUSTRALIA PA Pt. Henry Portland Pt. Henry Portland ALCOA COMPOSITES |____________________ _____________________ Bonded Technology (Cromwell t ALCOA ELECTRONIC PACKAGING CT Alcoa Electronic Pkg. ALCOA FUJIKURA Del Rio |San Diego 11 t\ | Del Rio Houston Spartanburg (Houston (Duncan 1 ALCOA NEDERLAND Alcoa Nederland 1 (Drunen AJumet Burgerhout i jAssen Intal i Geldermalsen Intransit Allpro 1 j ____________________1____________________ BAUXITE A ALUMINA Suralco Suralco Paranam Moengo | 1 j | CLOSURE SYSTEMS INTERNATIONAL j H-C Industries | Olive Branch 1 EXTRUSION S TUBE SYSTEM CA TX TX SC MS Tifton FOIL PRODUCTS Lebanon (Tifton 11 i iLebanon i GA PA Country USA Australia Australia I | USA | USA USA USA USA Netherlands Netherlands Netherlands Netherlands Netherlands Netherlands Suriname Suriname USA USA USA 1993 (L P Hassoy) June (R. F. Slagle) October October (0. L RtWchier) July (K. IV. Blevins) September (R.H. Barton) November November December (H. A. J. Bemelmans) July April April July July July (A. C. Roemtm) March March (T. J. beveqoe) February (R. A. Kocsrtia) May (K. R. McElheny) June FILENAME 93AUOITS XLS PAGE#1 DATE PRINTED- 04-JAN-93 C60712 0056 APPENDIX B Alcoa Environmental Audit Schedule (1993) Plant City FORGINGS & CAS711sfGS Texas Eng. Products El Paso INDUSTRIAL CHEMICALS i Alcoa Kasei jNaoetsu Moralco {Iwakunl ! PACKAGING MACHINERY Ragsdale 1 (Englewood 1 PRIMARY METALS Paradise Point Specialty Metals Norfolk New Kensington RIGID PACKAGING | Alcoa Recycling | Knoxville 1 STOLLE CORPORATION ABP Stuarts ABP Denison Canadco Alcoa Vinyl Stuarts Draft Denison Rantoul Springboro WIRE, ROD AND BAR Akxtec Massena Traverse City Massena MISCELLANEOUS Railroads (4) Pittsburgh State TX CO VA PA TN VA TX IL OH Ml NY PA Country USA Japan Japan USA 1993 fn s. Hughes) | February I (M. J. Schnttor) 1 j August | August | (R. A Gtah) 1 | August 11 (R. C. Raws) USA August USA June (G. E. Bergeron) USA | 1 May (D. Snyder/J.H. HopUns) USA August USA November USA August USA April (J. S. Mock) USA September USA May _ USA July FILENAME: 93AUDTTS-XLS PAGE#2 DATE PRINTED 04-JAN-93 C60712 0057 APPENDIX C Alcoa Environmental Audit Schedule (1994) Plant City State [AEROSPACE - COMMERCIAL ROLLED PRODUCTS Davenport ML Systems Southco Aerospace Center Davenport Vahalla Atlanta Irvine ALCOA COMPOSITES IA NY GA CA Composite Structures Monrovia Rbertek Springville ALCOA FUJIKURA CA UT AFL-Acuna AFL-Acuna AFL-Acuna AFL-Acuna AFL-Acuna AFL-Acuna AFL- Acuna Acuna Acuna Acuna Acuna Acuna Acuna Acuna ALCOA NEDERLAND Extrudal SA Extruded Products Vails Swansea BAUXITE*ALUMINA Minerals of Jamaica Pt. Comfort Minerals of Jamaica Clarendon Pt Comfort Woodside CLOSURE SYSTEMS INTERNATIONAL TX Deutschland Capsutas Metalicas H-C Industries Worms am Rlein Barcelona Crawfortsville EXTRUSION & TUBESYSTEM IN Tube Specialties Charlotte Halethorpe Extrusions Baltimore FORGINGS A CASTINGS NC MD Forges de Bologne Cleveland B&C Research Bologne Cleveland Barberton i OH OH Country USA USA USA USA 1994 (L P. Hassoy) September July October February (D. L Rittlctuer) USA USA Mexico Mexico Mexico Mexico Mexico Mexico Mexico Spain Wales May August (R. H. Barton; 1 j January { January ! January January January January January !1 (H. A. J. Bemelmans) i November July I (A. C. Roemtukl) Jamaica USA Jamaica August February August (T. J. Lavequa) Germany Spain USA July November November (R. A. Kocerha) USA October USA April France USA USA (R. S. Hughes) 1 j May | December I December ____________________ 1____________________ 1 RLENAME' 94AUCWTSXLS PAGE I 1 DATE PRINTED 04-JAN-93 C60712 0058 APPENDIX C Alcoa Environmental Audit Schedule (1994) Plant city INDUSTRIAL CHEMICALS Alcoa Chemie Alcoa Chemie Dalton Mobile Alcoa Specialty Chem. Ludwigshafen Rotterdam Rocky Face Mobile Nashville LATIN AMERICA State GA AL TN Country Germany Netherlands USA USA USA 1994 (M. J. Schretor) 1 1 May j May | January | January | June 1 (A. Betda) ALUSUD ALUSUD Santiago Buenos Aires Chile Argentina January January PACKAGING MACHINERY Randolph Randolph PRIMARY METALS Badin Badin RIGID PACKAGING Alcoa Generating Alcoa Manufacturing Kobe Tennessee Warrick Newburgh Swansea Moka Alcoa Evansville STOLLE CORPORATION; : (R. A. Gtah) ! NY USA | June i (R. C. Rawo) !i | NC i USA | April 11l 11 (G.E. Bergeron) i IN USA I October Wales j July Japan i August TN USA j March IN USA j October 1 (D. Snyder / J.H. HopMns) Cel(wood Spec. Oregon Arctek Dayton Ext Prod. Drew ABP Princeville Gaffney Phoenix Gettysburg Springboro Drew Princeville MISCELLANEOUS SC USA March OR USA April OH USA September OH USA November MS USA February IL USA September Lancaster Vanexco Lancaster Vancouver PA USA June WA USA August RLENAME 94AUDITSXLS PAGE # 2 DATE PRINTED 04OAN-33 C60712 0059 APPENDIX D Alcoa Environmental Audit Schedule (1995) Plant City State Country 1995 AEROSPACE - COMMERCIAL ROLLED PRODUCTS (L P. Hassey) Kobe AKTP Davenport ALCOA OFAUSTRALIA IA USA April (R. F. Slagle) Booragoon Hedges Gold Kwlnana Pinjana Wagerup W.A. Mining Booragoon Kwinana Pinjarra Wagerup Australia Australia Australia Australia Australia Australia July July July June June June ALCOA COMPOSITES ____________________ 1____________________ Astech | Santa Ana | CA | USA Sphinx Mfg. ! Los Angeles | CA | USA 1 1! ALCOA FUJIKURA (D. L Rittichier) February February (R. H. Barton) Dixie Wire AFL-Stribel AFL-Stribe! AFL-Piedras AFL-Piedras AFL-Monterey San Antonio Nashville Frickhausen Dundalk Piedras Piedras Monterey San Antonio ALCOA NEDERLAND Kofem Scekesfehervar ALCOA SOUTH CAROLINA TN USA May Germany May Ireland May Mexico March Mexico March Mexico March TX USA 11 February (H. A J. Bemelmans) 1 | Hungary 1 May (W. F. Cochrane) Dataw Dataw SC USA March BAUXITE A ALUMINA : (A C. Roemhlkl) Tembladora Port of Spain Trinidad January CLOSURE SYSTEMS INTERNAVONAL Richmond Shibazaki 1 | Richmond j Tokyo 1 EXTRUSION A TUBE SYSTEM Lafayette Pimalco Tifton-Delhi Vernon FILENAME 9SAUOTS XLS {Lafayette {Chandler | Delhi {Vernon 1! IN ! USA { Japan ____________________ 11____________________ 1 1 IN { USA AZ { USA LA j USA | CA "| USA | (T. J. Leveque) October March (R. A Kocartia) August August November December PAGE # 1 DATE PRINTED 04-JAN-93 C60712 0060 APPENDIX D Alcoa Environmental Audit Schedule (1995) Plant City INDUSTRIAL CHEMICALS Arkansas FI Meade Vidalia Alcoa Specialty Chem. Bauxite FL Meade Vidalia Lake Charles LATIN AMERICA Aluminum Plant Cable Plant Cotia Foundry ALCONOR Packing Pinda Extrusion ALUMAR Sorocaba Extrusion Cargovan Cable Plant Pocos de Caldas Cabo-PE Colia-SP Itapissuma-PE Alphaville-SP Pindamonhangaba Sao Luis Sorocaba-SP Valinhos-SP Pocos de Caldas NORTHWEST ALLOYS NW Alloys Addy PACKAGING MACHINERY Wiebe Machinery ST8 Sidney Sidney PRIMARY METALS Permatech Rockdale Sandow Electric Wenatchee Graham Rockdale Rockdale Wenatchee STOLLE CORPORATION Stolle Pit 3 Diversified Memory Prod. Norcold Sidney Sidney Sidney Sidney MISCELLANEOUS Technical Center AlcoaCenter State AR FL LA LA WA OH OH NC TX TX WA OH OH OH OH PA Country USA USA USA USA Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil USA USA USA 1995 (M. J. Sdveiar) October October December April (A. Betda) February March March March March March April March January February (E L Sandman) August (R. A. Glah) April April (R. C. Rowe) USA November USA September USA September USA September (0. Snyder /J.H. Hopkins) USA September USA September USA November USA November USA June FILENAME 9SAUOITSXLS PAGE I 2 DATE PRINTED 04-JAN-93 C60712 0061