Cleveland-Cliffs Inc.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:Not disclosed

Scope 1 Emissions:Not disclosed

Scope 2 Emissions:Not disclosed

Scope 3 Emissions:Not disclosed

Renewable Energy Share:Not disclosed

Total Energy Consumption:Not disclosed

Water Consumption:Not disclosed

Waste Generated:Not disclosed

Carbon Intensity:Not disclosed

ESG Focus Areas

Reducing Carbon Footprint
Diversity, Equity and Inclusion
Safety

Environmental Achievements

Scope 1 and 2 GHG emissions were below the 25% reduction goal ahead of the 2030 target year.
Reduced company-wide and integrated average Scope 1 and 2 GHG emissions intensity from 2021.

Social Achievements

Successfully negotiated new 4-year labor contracts with USW partners, covering more than half of the employee base.
No strikes or lockouts in 2022.
Continued to foster a culture of diversity, equity and inclusion.
Total Reportable Incident Rate (including contractors) was 1.36 per 200,000 hours worked.

Governance Achievements

Not disclosed

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Reduce GHG emissions 25% from 2017 levels by 2030.

Short-term Goals:

Not disclosed

Environmental Challenges

Climate change and GHG regulations.
Changes to National Ambient Air Quality Standards for particulate matter.
Changes to ozone transport regulations.
Selenium discharge regulation.
Minnesota's sulfate wild rice water quality standard.
Minnesota's mercury TMDL and mercury reduction rules.
Risk and technology reviews for taconite and integrated iron and steel categories.
Volatility of commodity prices (steel, iron ore, scrap metal).
Fluctuations or changes in the automotive market.
Global steelmaking overcapacity, steel imports and oversupply of iron ore.
Severe financial hardship or bankruptcy of major customers or key vendors.
COVID-19 pandemic and resulting economic volatility.
U.S. government actions on trade agreements and treaties.
Extensive governmental regulation.
Potential significant costs and liabilities.
Inability to obtain, maintain, renew or comply with permits and licenses.
Existing and future indebtedness.
Actual operating results may differ significantly from guidance.
Various lawsuits, claims, arbitrations or governmental proceedings.
Increased prices of raw materials, electrical power, fuel, or other energy sources.
Disruption of transportation services.
Cost or time to implement capital projects.
Natural or human-caused disasters.
Disruption of IT systems, including cybersecurity threats.
Closure of an operating facility or mine.
Inadequate insurance coverage.
Increased financial, regulatory, legal and reputational risks related to decarbonization.
Maintaining social license to operate.
Estimates of recoverable mineral reserves.
Defects in title or loss of access rights to mining properties.
Loss of senior management and other key employees.
Unsatisfactory labor relations.
Higher than predicted expenditures for pension and OPEB obligations.

Mitigation Strategies

Optimizing asset footprint and raw material mix (HBI in blast furnaces).
Upgrades to existing onsite energy recovery and addition of renewable energy.
Research and development of decarbonization technologies.
Partnership with DOE's Better Climate Challenge.
Active engagement with experts and trade associations on proposed regulations.
Implementation of compliance plans to manage selenium.
Development of cost-effective and sustainable selenium treatment technologies.
Fixed price contracts to reduce exposure to price volatility.
Vertically integrated business model to reduce reliance on volatile global sourcing.
Investment in HBI plant to reduce reliance on imported pig iron.
Optimizing steelmaking footprint (idling Indiana Harbor #4 blast furnace).
Significant resources to upgrade facilities and equipment.
Widespread vaccination efforts.
Hedging programs for energy and raw materials.
Investigating investments in renewable and clean energy initiatives.
Intensive employee training on safety and health issues.
Rigorous environmental protocols and management systems.
Risk management policies, practices and procedures.
Debt reduction activities.
Share repurchase program.
Negotiating lower healthcare premiums.
Negotiating progressive labor agreements.
Transferring responsibility for healthcare benefits to VEBAs.
Offering voluntary lump-sum settlements to pension plan participants.
Lowering retiree benefit costs for salaried employees.
Actively seeking opportunities to reduce pension and healthcare benefits costs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

Adverse or extreme weather events

Transition Risks

Climate change and GHG regulations
Mandatory carbon pricing obligations
Carbon emissions limitations
Carbon taxes or carbon trading mechanisms

Opportunities

Development of energy-efficient products
Clean hydrogen solutions
Renewable energy projects

Reporting Standards

Frameworks Used: CDP, EcoVadis

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

MOTOR-MAX™ product line of NOES

Awards & Recognition

Not disclosed

Reporting Period: 2023