Alcoa Foundation, a corporate foundation of aluminum giant Alcoa Inc. (AA - Analyst Report), and U.S.-based non-profit organization “Keep America Beautiful” have teamed up to augment the recycling rate in the U.S. The partnership announced the launch of “Action to Accelerate Recycling” program at the Clinton Globe Initiative (CGI) Annual Meeting to create awareness and also provide recycling infrastructure to increase recycling of aluminum, plastic, glass and paper in the U.S.
The “Action to Accelerate Recycling” initiative will include recycling programs to educate and activate people of all ages, and help in expanding the infrastructure for recycling. It includes various incentives by Alcoa and Alcoa Foundation. Some of them are:
Pass the Can – Under this initiative, Alcoa introduced a new application (app) by Facebook Inc. (FB) that educates people about aluminum recycling in a fun way and encourages them to act and spread the awareness among friends through the social network. For every virtual can passed through this Facebook app, Alcoa Foundation will donate $1 (up to $75,000) to “Keep America Beautiful”. International Union for Conservation of Nature (IUCN) and Planet Ark are also involved in this to fund recycling programs around the world.
The Alcoa foundation has plans to reach 50 college campuses around the world. The foundation has also tied up with DoSomething.org, which is the largest youth-led aluminum recycling drive in the U.S. It is also working with the Ohio State University, University of Tennessee, Purdue University and Clemson University to develop innovative recycling programs that encourage fans to recycle in parking lots during football season.
Pennsylvania Resources Council - The program will educate consumers about the recyclability of pet food cans and create a model for collecting cans that can be easily replicated.
On the other hand, “Keep America Beautiful” has taken a pledge to increase the recycling of aluminum, paper, plastic and glass in the workplace by 10% through a variety of programs. The organization aims to reach 200 million people via multi media campaigns. It is seeking to provide access to recycling and develop best practices in 4-6 underserved public venues with funding from Alcoa.
Alcoa and Alcoa Foundation have committed to fund the project and have already spent $2 million to engage millions of Americans and increase the current U.S. recycling rate by 10 percentage points. Alcoa primarily intends to increase the recycling rate of aluminum beverage cans in the U.S. to 75% by 2015 and help create sustainable and prosperous communities across the country.
Alcoa is a leading producer of primary and fabricated aluminum as well as the world’s largest miner of bauxite and refiner of alumina. The company competes with Aluminum Corporation of China Limited and RioTinto plc. (RIO - Analyst Report). The stock maintains a Zacks #4 Rank, which translates into a short-term (1 to 3 months) Sell rating. Currently, we have a long-term Neutral recommendation on Alcoa’s shares.