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Alcoa CEO pushes sustainable business
Wednesday, November 11, 2009

Klaus Kleinfeld, CEO of Alcoa Inc., looked at the audience of 200 at a daylong conference on sustainability issues and coolly informed them they should be drinking from aluminum cans instead of plastic bottles.

"Plastic is recycled and ends up in the bottom of carpet. Aluminum is infinitely recyclable," he said yesterday during Duquesne University's third annual Beard Symposium on Sustainability at the Westin Convention Center Hotel, Downtown.

It was a fitting way to plug his business, which generated $27 billion in revenues last year, mostly from aluminum. But the suggestion also helped Mr. Kleinfeld drive home his point that promoting a sustainable culture in businesses has to start at the top.

Sustainability includes social, financial, environmental and ethical practices that create long-term value for companies and organizations, said Alan Miciak, dean of Duquesne's Palumbo-Donahue School of Business.

It's become a buzzword in business as organizations try to compete globally.

"Sustainability is totally in the DNA at Alcoa, but we constantly have to reinforce it," said Mr. Kleinfeld. "I believe in walking the talk. As a leader, you can't delegate it."

Environmental health and safety is a top priority for Alcoa as well as sustaining aluminum products, he said, noting that 73 percent of all aluminum ever produced is still in usable form.

"If you recycle a can, 60 days later … it's a can. And then in 60 days, it's a can."

Alcoa is working on technology to make aluminum bottles for beer and soda more cost effective, he said.

Mr. Kleinfeld praised Steve Jobs, founder and chairman of Apple Inc., for using aluminum as a key design component for iPods and computers.

"Jobs is nuts for sustainability. In an Apple store, most of the products are aluminum because of sustainability," Mr. Kleinfeld said.

Among the challenges of implementing sustainable practices, said Morgan O'Brien, CEO of Duquesne Light Holdings, is educating consumers and businesses about how to use smart technologies and why they will realize cost savings.

He cited a utility in another state that sent out energy-efficient light bulbs to its customers -- and then billed them for the cost of the bulbs.

Mr. O'Brien didn't name the utility, but it was Akron, Ohio-based FirstEnergy that distributed the compact fluorescent bulbs because the state ordered utilities to reduce consumption. After consumers complained about paying $21 for two bulbs, the state put its program on hold.

"I don't want to do things mandated by the government if I can't educate companies or save customers money," said Mr. O'Brien.

During the conference, the Beard Institute presented its first Green to Gold award to Cisco Systems Inc., a computer networking company based in San Jose, Calif. The award recognizes a public company that demonstrates success in sustainable practices. Finalists included H.J. Heinz Co., Starbucks Corp., Intel Corp. and Nike.

Joyce Gannon can be reached at jgannon@post-gazette.com or 412-263-1580.
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First published on November 11, 2009 at 12:00 am