Definitions

Advisory Group:

A group of people representing various stakeholders that have agreed to participate in the sustainability initiative.

Baseline Information:

Information used as the basis for evaluating the companies' future performance. Baseline information often provides a snapshot in time or a position of an indicator that is recorded prior to project influence. Although the position may change over time, the baseline remains unchanged and available as a reference.

Indicator:

A variable considered individually or collectively with other indicators to reflect whether the projects are performing in accordance with defined sustainability objectives.

Management Team:

Employees of Alcoa and Landsvirkjun and their consultants that are working on the initiative.

Metrics:

Measurements used to document changes in indicators. We have added: What is measured?

Projects:

The three projects under review in the sustainability initiative, i.e. the Karahnjukar dam, the Fjardaal smelter, and the transmission lines.

Sustainability Initiative:

The work of Alcoa and Landsvirkjun to identify issues and develop indicators to help monitor the performance of the projects at meeting sustainability objectives.

Sustainability Objectives:

Objectives that Alcoa and Landsvirkjun have adopted for this purposes of this initiative. These objectives are based on internationally accepted principles about sustainable development and lay the foundation for the sustainability initiative.

Sustainability process:

A process to develop indicators, establish performance targets, measure performance, and communicate outcomes within the context of the sustainability initiative.

Targets:

Specific goals that will be set for each indicator in Phase 3 of this initiative. Targets can be quantitative goals or trends and typically include timelines for meeting the targets.