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Implementing Sustainability at Alcan Primary Metal - British Columbia

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Implementing Sustainability at Alcan Primary Metal - British Columbia IMPLEMENTING SUSTAINABILITY AT ALCAN PRIMARY METAL - BRITISH COLUMBIA Sheldon Shawn Zettler B.Sc., University of Winnipeg, 1990 B.Sc. Environmental Engineering, University of Guelph, 1995 Graduate Diploma, Business Administration, Simon Fraser University, 2003 PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In the Faculty of Business Administration Executive MBA O Shawn Zettler 2005 SIMON FRASER UNIVERSITY Fall 2005 All rights reserved. This work may not be reproduced in whole or in part, by photocopy or other means, without permission of the author. APPROVAL Name: Sheldon Shawn Zettler Degree: Master of Business Administration Title of Project: Implementing Sustainability at Alcan Primary Metal - British Columbia Supervisory Committee: Dr. Mark Selman, Senior Supervisor Executive Director, Learning Strategies Group, Faculty of Business Administration Dr. Mark Moore, Second Reader Lecturer, Faculty of Business Administration Date Approved: SIMON~~~~~mlibrary FRASER DECLARATION OF PARTIAL COPYRIGHT LICENCE The author, whose copyright is declared on the title page of this work, has granted to Simon Fraser University the right to lend this thesis, project or extended essay to users of the Simon Fraser University Library, and to make partial or single copies only for such users or in response to a request from the library of any other university, or other educational institution, on its own behalf or for one of its users. The author has further granted permission to Simon Fraser University to keep or make a digital copy for use in its circulating collection, and, without changing the content, to translate the thesislproject or extended essays, if technically possible, to any medium or format for the purpose of preservation of the digital work. The author has further agreed that permission for multiple copying of this work for scholarly purposes may be granted by either the author or the Dean of Graduate Studies. It is understood that copying or publication of this work for financial gain shall not be allowed without the author's written permission. Permission for public performance, or limited permission for private scholarly use, of any multimedia materials forming part of this work, may have been granted by the author. This information may be found on the separately catalogued multimedia material and in the signed Partial Copyright Licence. The original Partial Copyright Licence attesting to these terms, and signed by this author, may be found in the original bound copy of this work, retained in the Simon Fraser University Archive. Simon Fraser University Library Burnaby, BC, Canada SIMON FRASER UNIVERSITY~ Ibra ry STATEMENT OF ETHICS APPROVAL The author, whose name appears on the title page of this work, has obtained, for the research described in this work, either: (a) Human research ethics approval from the Simon Fraser University Oftice of Research Ethics, (b) Advance approval of the animal care protocol from the University Animal Care Committee of Simon Fraser University; or has conducted the research (c) as a co-investigator, in a research project approved in advance, (d) as a member of a course approved in advance for minimal risk human research, by the Oftice of Research Ethics. A copy of the approval letter has been filed at the Theses Office of the University Library at the time of submission of this thesis or project. The original application for approval and letter of approval are filed with the relevant offices. Inquiries may be directed to those authorities. Simon Fraser University Library Burnaby, BC, Canada ABSTRACT This project is a strategic analysis of the environmentally driven pressures affecting Alcan Primary Metal - British Columbia (APM-BC), and its ability to be a sustainability driven company. The objective is to develop a set of recommended strategies that will bring both social and economic balance and create value by acting on the identified issues. Using a stakeholder analysis and a modified PESTLE analysis, seven key components of APM-BC's value chain were analyzed to identie eighty-one key environmental issues. These issues were mapped according to business and environmental risk. Using a SWOT analysis, seventy-five strategies for managing the environmental issues while building value through incorporating stakeholder participation and creating economic opportunities for communities within APM-BC's sphere of influence were developed. The set of recommendations provides an opportunity for further implementing sustainability into the company's business plan. This can be accomplished through eco-efficient strategies to improve operating margins, risk management strategies that create environmental awareness and strategies to build capacity with APM-BC's stakeholders. DEDICATION This paper is dedicated to my family (Karen, Tim, and Ann) for supporting me throughout the MBA program, and most of all, during the writing of this paper. I could not have completed this paper without your sacrifices. To my colleagues at work both your support and patience during the writing of this paper is deeply appreciated. ACKNOWLEDGEMENTS I gratefully knowledge and thank everyone who has supported and inspired me in the research and writing of this paper. In particular, I would like to thank the following people: Daniel Bouillon who has supported me with information, critical input, and time; Guy Bouchard, for agreeing to be the Alcan sponsor, and providing valuable resources, information, and critical input on the direction of the paper; Don Timlick, for showing the sustainable opportunities that could exist with our stakeholders and business; Mark Selman and Mark Moore, for their review, advice, and mentoring to complete the paper; Cindy Lister for her help and support in finalizing this paper. Thank you to all that have provided support, time, thought, and comments on this paper. TABLE OF CONTENTS .. Approval ..........................................................................................................................................11 ... Abstract .....................................................................................................................................nl Dedication ......................................................................................................................................iv Acknowledgements......................................................................................................................... v Table of Contents ..........................................................................................................................vi List of Figures ................................................................................................................................ix List of Tables ................................................................................................................................... ... Glossary .......................................................................................................................................XIII Introduction .............................................................................................................................1 1.1 Alcan Inc . and the Alcan Primary Metal Group ..............................................................2 1.2 Alcan Primary Metal - British Columbia ........................................................................5 1.2.1 APM-BC Operations Description .............................................................................. 5 1.2.2 Reduction Process Technology at Kitimat Works .....................................................8 1.2.3 Key Raw materials and Consumption ........................................................................9 1.2.4 Environmental Setting of APM-BC ......................................................................... 10 Business Case For Sustainabilty ...........................................................................................15 2.1 Definition of Sustainability ........................................................................................... 15 2.2 Value Drivers ................................................................................................................ 17 2.3 Sustainability, Financial Performance and lnvestment .................................................17 2.4 Market Valuation of Sustainability Strategies............................................................... 19 2.5 Promoting Investment ................................................................................................... 20 2.6 Competitive Advantages ...............................................................................................21 2.7 Aluminum Industry Wide Shift Towards Sustainability ............................................... 21 The Global Aluminum Industry and Sustainability ...........................................................23 3.1 Industry Definition ........................................................................................................23 3.2 Aluminum Industry Associations and Key Sustainability Challenges .......................... 24 3.2.1 Greenhouse Gases and Global Warming ................................................................. 25 3.2.2 Energy Consumption ................................................................................................ 26 3.2.3 Water Consumption .................................................................................................27
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