The case against short-termism

AluReport spoke with CEO Dr. Helmut Kaufmann on the occasion of the 50^th issue of AluReport to discuss the magazine’s origins, AMAG then and now, and how AluReport can help to counter short-termism.

AluReport: Dr. Kaufmann, AluReport is your baby. Tell us how it all began.

HK: In 2007, my colleagues and I were appointed to the Management Board: Gerhard Falch as CEO, Gerald Mayer as CFO and myself as COO. At that time, AMAG was still part of the Constantia Group. We conducted a strategic process and determined that we wanted to position AMAG as a premium supplier of flat aluminium products and recycled cast alloys, with specialty products accounting for a significant proportion of our portfolio. We also had a very clear vision of how we hoped to develop AMAG through strategic investments. I thought it was a sensible idea to offer our customers regular updates on our progress through an AMAG magazine.

AluReport: Was the immediate response to the idea enthusiastic or was there resistance?

HK: Some people took some persuading - especially our Head of Communications at the time, funnily enough. I can still remember exactly what he said to me: “OK, but once we’ve completed the first issue, we won’t have any material left for another one.” I won him over in the end and today we’re celebrating the 50th issue of AluReport. We’ve never been short of topics. On the contrary, we started with 16 pages per issue and now we’re often forced to set a 40-page limit. After all, it’s a magazine, not a book.

AluReport: What exactly does it involve?

HK: I’m not exactly sure how things work at a newspaper or a magazine but there could be similarities. Immediately after one issue is published, we hold an editorial meeting for the next issue. At this meeting, a select group of AMAG team members determine which articles will appear in the upcoming issue and how much space to devote to them. I have the role of editor-in-chief, if you like. It’s actually a lot of work. We work on AluReport almost all year round.

AluReport: How would you assess the magazine’s development to date?

HK: In all honesty, I’m proud of how it’s developed. The first issue was really more of a brochure. We used it to introduce AMAG and the new management team. Looking back, that was a good thing because it provided a starting point for development.After that, AluReport gradually became what it should be: a source of information for customers and employees with high standards of technical expertise. I never wanted to write fluff pieces. As a highly innovative premium supplier, AMAG demonstrates its capabilities through its activities - and AluReport showcases the full breadth of these activities three times per year. We know that AluReport is read by our customers and employees as well as students, trainees and, of course, our competitors. AluReport should be an educational read for anyone with an interest in aluminium.

AluReport: Is there a need for this kind of educational offering?

HK: Yes, there is. An urgent need, in fact. In the context of current efforts to decarbonize, increase our use of recycled materials and develop carbon-optimized products, there’s a clear need for expert insights and explanations. Not all product developments that seem tempting from a commercial point of view are even remotely sensible from a metallurgical perspective!We want to play our part in educating our customers on these issues. And, as AluReport is also read by politicians, we obviously hope to throw light on issues for them, too.

AluReport: Where do you think there is particular need for education and explanation?

HK: When it comes to decarbonization, I often feel there’s a perception that industry doesn’t want to change. Often, however, these changes simply aren’t technically possible - or not until the necessary infrastructural measures are taken by public authorities, at least. Industry needs to speak up a little more on these issues.

AluReport: What has been the most significant technical change in the industry over the last 15 years?

HK: I think it’s the focus on sustainability, which we’ve already touched on. Producing sustainable products through high recycling rates, determining carbon emissions through mass balance calculations and translating them to individual products and into our reporting are things we weren’t doing on this scale 15 years ago. We need to combat climate change, of course, but the bureaucracy associated with it in Europe and in Austria is really crazy. We’ve just determined how many people were involved in producing the non-financial statement in our annual report: we paid 74 people for their work and the costs ran into several hundred thousand euros. If smaller companies are now going to have to report in line with the Corporate Sustainability Reporting Directive (CSRD), I’m not sure how that can possibly work.

AluReport: Aren’t there consultants for that?

HK: Sure, there are consultants for everything. But do you really think that a consultant firm, even a large one, can replace 74 internal specialists? This reporting requires in-depth knowledge of all processes and procedures. It extends far beyond administrative aspects: it’s about making production data measurable, collecting and analyzing this data, and having the writing skills to prepare the reports themselves. In general, we think carefully about what we need a consultant for. Instead, we tackle these challenges by consolidating and expanding our internal expertise. I mentioned the importance of knowledge-based action in the last issue of AluReport. It’s reflected in our development work, in our production activities, in our reporting and in the quality of the articles in AluReport. The whole thing is an expression of an actively practiced management philosophy: we strive to build the best possible team and retain expertise within our company so that we’re not dependent on consultants and are less vulnerable in general.

Let me return, however, to the excessive reporting requirements. I find it intolerable that European industry is constantly forced to justify the fact that it’s still producing things. How short-sighted is that?! Society must come to understand that we cannot maintain our current standard of living without creating genuine value through production. And let’s not forget that the time and money we’re investing in these sprawling reports is taken away from other priorities.

AluReport: What does the future hold for AluReport?

HK: Well, the next step in its development starts with this issue and improvements to our online offering. Whether there’ll be a 100th issue of AluReport, only time will tell. In any event, we certainly won’t run out of topics to cover!