Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and safety
• Climate change
• Environment
• Customer reassurance
• Social

Environmental Achievements

• Implemented 27 energy projects with energy savings of more than $19.8 million, equivalent to powering 14,400 homes for a year.
• 32% of each ton of steel produced in the U.S. was from recycled scrap steel.
• 100% of steelmaking facilities maintained ISO 14001 certification.
• Four U.S. sites received Wildlife Habitat Council Conservation Certification.

Social Achievements

• Invested $6.5 million in local communities, 35% dedicated to environmental conservation and restoration.
• Employees donated more than 4,400 hours to local nonprofits.
• Invested $350,000 in the long-term sustainability of 15 nonprofits through the Building Resilience program.

Governance Achievements

• Established a robust stakeholder engagement process.
• Implemented a new online learning system for environmental compliance training.
• Maintained a comprehensive human rights policy based on UN standards.
• All salaried employees completed online training on the Code of Business Conduct and Human Rights Policy.

Climate Goals & Targets

Environmental Challenges

• Decline in year-over-year employee safety performance.
• Water permit exceedances due to pump station failure at Burns Harbor facility.
• Challenging financial year due to disconnect between economy and steel demand, decreased steel consumption, and sub-optimal pricing.
• Global overcapacity in the steel industry and unfairly traded imports.
• Aging infrastructure and the need for continued investment in energy efficiency and sustainability.

Mitigation Strategies

• Implemented corrective actions to address safety performance decline and water permit exceedances.
• Implemented cost control measures and improved delivery performance.
• Supported Section 232 trade measures to reduce steel imports.
• Invested in energy efficiency projects and partnered with the DOE Better Plants Program.
• Invested in R&D for innovative steel products and solutions.
• Engaged in stakeholder dialogue and transparency regarding challenges.

Supply Chain Management

Responsible Procurement

• Code for Responsible Sourcing
• Adherence to global sourcing rules and regulations
• Supplier diversity program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001, ResponsibleSteel™ (pre-audit)

Sustainable Products & Innovation

• Advanced high-strength steels (AHSS)
• Ultra high-strength steels (UHSS)
• Tailored blanks
• Duracorr® corrosion-resistant steel

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Health
• Diversity & Inclusion
• Circular Economy
• Community Engagement

Environmental Achievements

• Major relining of blast furnace B, increasing volume and energy efficiency; equipped to use more circular waste streams.
• Installation of a waste gas recirculation system at the sinter plants, reducing guided dust emissions by 75%.
• Construction of noise walls to reduce noise pollution.
• Construction of the Steelanol plant to convert waste gases into bioethanol (80 million liters/year).
• Construction of the Torero plant to convert wood waste into biocoal.
• Installation of over 2,000 solar panels in Ghent (10,000 MWh/year) and over 10,000 in Liège (4,000 MWh/year).
• Achieved ResponsibleSteel™ certification.

Social Achievements

• Launched INCOS initiative for sustainable employability, maximizing employee flexibility.
• Implemented a “Raise the Bar” safety action plan, reducing the frequency rate of accidents.
• Implemented various initiatives to promote diversity and inclusion, winning two awards.
• Offered soft landing jobs for employees aged 58 and older.
• Implemented a hybrid working environment, providing support for remote work.
• Increased training hours from 3.23% to 4.2% of hours worked.

Governance Achievements

• Signed a letter of intent with Belgian and Flemish governments for a €1.1 billion project to build a DRI plant and electric furnaces, reducing CO2 emissions by 3 million tonnes/year by 2030.
• Signed the energy policy agreement (EBO) with the Flemish government and the 'Accord de Branche' in Liège.
• Obtained ISO 14001 and ISO 50001 certifications.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic and economic crisis.
• High frequency rate of safety incidents in 2020.
• Shortage of free CO2 emission rights under the European Emissions Trading System (ETS).
• Noise pollution complaints from local residents.

Mitigation Strategies

• Implemented cost-cutting measures.
• Launched the “Raise the Bar” safety action plan.
• Developed alternative sourcing strategies.
• Constructed noise walls and implemented “whisper loading”.
• Advocated for a carbon border adjustment to level the playing field with non-European steel companies.

Supply Chain Management

Responsible Procurement

• Checks on external scrap deliveries for non-conform scrap and non-ferro materials.

Climate-Related Risks & Opportunities

Transition Risks

• Shortage of free CO2 emission rights.

Opportunities

• Development of energy-efficient products and processes; Steelanol and Torero projects.

Reporting Standards

Frameworks Used: GRI, ResponsibleSteel™

Certifications: ISO 14001, ISO 50001, ResponsibleSteel™

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through renewable energy generation, sustainable product development, circular economy practices, and CO2 emission reduction.

Sustainable Products & Innovation

• Fortiform®, Magnelis®, Optigal®, Granite® DXtreme, Amstrong® high strength steels
• Bioethanol from Steelanol
• Biocoal from Torero

Awards & Recognition

• Voka Charter for Sustainable Business (2020, 2021)
• Most commendable resident of East-Flanders (2020)
• Two awards for diversity and inclusion initiatives (2021)

Environmental Metrics

ESG Focus Areas

• Safe, healthy, quality working lives for our people
• Efficient use of resources and high recycling rates
• Trusted user of air, land and water
• Responsible energy user that helps create a lower carbon future
• Supply chains that our customers trust
• Active and welcomed member of the community
• Pipeline of talented scientists and engineers for tomorrow
• Our contribution to society measured, shared and valued
• Transparent good governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, World Steel Association (worldsteel)

Certifications: ISO 14001, ISO 45001, OHSAS 18001

Third-party Assurance: DNV

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Safety
• Strategic Growth
• Decarbonization and Sustainability Leadership
• World-class Operations
• Climate
• Nature
• Products
• Customer Reassurance
• Work and Life
• Gender Diversity
• Community
• Just Transition

Environmental Achievements

• Inauguration of Europe’s first carbon capture and utilisation facility at ArcelorMittal Ghent.
• Groundbreaking on a transformational DRI plant at ArcelorMittal Dofasco in Canada.
• Acquisition of a state-of-the-art HBI plant in Texas to secure high-quality metallics for low-carbon steelmaking.
• Acquisition of four scrap metal recycling businesses across Europe.
• 25% reduction in CO2e emissions intensity (steel and mining) by 2030 (target)
• 35% reduction in carbon emissions intensity (steel) in Europe by 2030 (target)
• Reduction of 4.3% in CO2e intensity of steel since 2018 (1.98tCO2e/tcs in 2022)
• 1.8% improvement in CO2e intensity of steel operations in Europe in 2022 (1.67tCO2e/tcs)

Social Achievements

• Launched a new People strategy based on three pillars: Leadership that inspires excellence; Talent to thrive for the future; Diversity and inclusion that engages everyone.
• Increased participation in leadership programmes (800+ in 2022 vs 329 in 2021).
• Increased participation in Speak Up+ employee surveys (88% in 2022 vs 72% in 2021).
• Increased community investment spend ($22.5m in 2022 vs $10.2m in 2021).
• Increased spending on STEM projects ($4.3m in 2022 vs $3.5m in 2021).
• Improved gender diversity in leadership positions (16% in 2022 vs 14% in 2021).

Governance Achievements

• Strengthened Board and management oversight on environmental compliance.
• Revised group environmental policy launched in February 2023.
• Preparation for EU CSRD reporting.
• Upgrading of the company’s environmental data management system.
• Progress with five-year environmental improvement plans.
• Increased expertise in EIA, LCA, and EPD.
• Continued progress in ResponsibleSteel™ certification (32 sites by Q1 2023).

Climate Goals & Targets

Environmental Challenges

• Safety performance (22 fatalities in 2022).
• Unequal pace of regional decarbonization.
• Securing sufficient and timely funding for decarbonisation projects.
• Lack of scrap availability affecting decarbonisation rate.
• Inability to secure the skills needed for the transition.
• Stakeholder opposition to decarbonisation projects.
• Customers unwilling to pay a price premium for low-carbon steel.
• Insufficient availability and affordability of raw material feedstocks, clean electricity, green hydrogen, OEM equipment, or contractors.
• Implementing sustainability due diligence across a complex global value chain.
• Attracting and retaining talented people in a competitive job market.
• Addressing the risks and opportunities of the energy transition.
• Preparing for new CSRD and CS3D legislation.

Mitigation Strategies

• Implementation of an intensive programme of risk assessment, mitigation, and training across all sites, with a particular focus on the CIS region.
• Updated health and safety strategy with emphasis on creating an effective safety culture.
• Transition to a ‘predict and prevent’ safety culture.
• Development of tailored risk control and mitigation strategies.
• Enhanced training and coaching programmes.
• Increased shop floor presence.
• Investment in decarbonisation projects ($10bn estimated cost).
• Engagement with policymakers and stakeholders.
• Driving demand for low-carbon emission steel.
• Acquisition of scrap metal recycling businesses.
• Investment in renewable energy projects.
• Development of a Just Transition strategy.
• Implementation of a new Employee Value Proposition.
• Roll-out of a detailed D&I roadmap.
• Strengthening of existing compliance and procurement processes for supply chains.
• Development of a central community-related reporting tool.

Supply Chain Management

Responsible Procurement

• Code for Responsible Sourcing.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Wildfires
• Storms
• Extreme heat and cold
• Water stress and drought

Transition Risks

• Unequal pace of regional decarbonization
• Insufficient funding
• Lack of scrap availability
• Skills gap
• Stakeholder opposition
• Customers unwilling to pay premium for low-carbon steel

Opportunities

• Increased demand for low-carbon steel
• Development of energy-efficient products
• Opportunities for lower cost of capital for low-carbon steel projects

Reporting Standards

Frameworks Used: CSRD, TCFD, UN SDGs

Certifications: ResponsibleSteel™, ISO 14001

Third-party Assurance: DNV

Sustainable Products & Innovation

• XCarb™ Green Steel Certificates
• XCarb™ Recycled and Renewable Produced (RRP) products
• Steligence®
• Magnelis®
• Hyper®

Awards & Recognition

• LexisNexis® Top 100 Innovators

Environmental Metrics

ESG Focus Areas

• Decarbonization of the steel industry
• Safety
• Sustainability
• Human Rights
• Community Engagement
• Responsible Value Chains

Environmental Achievements

• Commenced ethanol production from CCU project at Ghent, Belgium, reducing carbon emissions by 125,000 tonnes annually.
• Commissioned Torero plant in Belgium, converting waste wood into bio-coal, reducing annual carbon emissions by 112,500 tonnes.
• Reduced CO2 emissions intensity by 4.3% since 2018 (steel only).
• Reduced adjusted absolute emissions (Scope 1 and 2, steel and mining) by 22.2% compared with 2018.

Social Achievements

• Launched Group-wide safety perception survey, covering 220,000 personnel and contractors.
• Implemented intensive training and coaching programs to improve safety performance.
• Invested in local communities through education, culture, sport, and corporate philanthropy (various examples provided for Brazil, Liberia, Spain, and Turkey).
• Developed a Just Transition management approach.
• Strengthened Human Rights policy and conducted a corporate-level saliency assessment.

Governance Achievements

• Strengthened Board and management oversight and compliance for environmental and safety performance.
• Linked executive remuneration to the achievement of 2030 carbon emissions reduction objective.
• Implemented a robust risk management and control system.
• Completed several financing and liability management transactions (details in the report).

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown and volatile steel and iron ore prices.
• Energy supply and cost issues in Europe.
• Fragility of the Chinese economy.
• Excess capacity and oversupply in the steel industry.
• Unfair trade practices and import tariffs.
• Labor disputes.
• Disruptions to manufacturing processes and mining operations.
• Severe weather conditions and natural disasters.
• Volatility in raw material, energy, and transportation costs.
• Climate change and decarbonization challenges.
• Cybersecurity risks.
• Difficulties in managing external growth and integrating acquired companies.
• Risks associated with investments in joint ventures and associates.
• Potential impairment losses.
• Indebtedness and credit rating downgrades.
• Underfunding of pension and other post-retirement benefit plans.
• Fluctuations in foreign exchange rates.
• Strict environmental, health, and safety laws and regulations.
• GHG emissions regulations and carbon costs.
• Potential for increased shareholder activism and litigation related to sustainability.
• Difficulties enforcing civil liabilities against ArcelorMittal and its management.
• Breaches of laws, regulations, or internal policies.
• Data breaches and data theft.

Mitigation Strategies

• Adapted footprint to new demand realities and redoubled efforts to control costs.
• Implemented a three-year value plan focused on commercial and operational initiatives.
• Developed a broad range of low-emissions steelmaking technologies.
• Investing in decarbonization infrastructure and low-carbon technologies.
• Seeking public funding support for decarbonization projects.
• Implementing a comprehensive independent audit of safety policies and practices.
• Intensified coaching and training programs to improve safety performance.
• Strengthened governance and scrutiny of safety performance.
• Developed a multi-faceted approach to decarbonization (Innovative-DRI, Smart Carbon, direct electrolysis).
• Investing in clean electricity and renewable energy projects.
• Increasing the proportion of scrap used in steelmaking.
• Offsetting residual emissions.
• Strengthening Human Rights policy and due diligence processes.
• Encouraging key raw material suppliers to certify to industry-leading ESG standards.
• Responding to sustainability due diligence legislation.
• Developing a Just Transition management approach.
• Improving stakeholder engagement and grievance management.
• Preparing for increased levels of mandatory community and human rights disclosures.
• Implementing a robust risk management and internal control system.
• Maintaining insurance policies to cover various risks.
• Implementing cybersecurity risk management and strategy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Responsible Sourcing
• Encouraging suppliers to certify to industry-leading ESG standards
• Implementing ESG risk-based assessment process across value chains

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Landslides
• Wildfires
• Storms
• Extreme weather events
• Water stress and drought

Transition Risks

• Carbon regulations not being equally applied to all market participants.
• Restrictions on clean energy scalability.
• Inability to meet stakeholder expectations.
• Decrease of steel demand due to material efficiency and longer product lifetime.

Opportunities

• Policy support to reduce the cost of green energy.
• Higher sales volumes or increased revenue due to increased demand for low-carbon steel.
• Demand for steel products supporting the decarbonization of other sectors.

Reporting Standards

Frameworks Used: TCFD, CDP, GRI, UNGC, ResponsibleSteel™, IRMA, TSM, EU Taxonomy, CSRD, ESRS

Certifications: ISO 14001

Third-party Assurance: Third-party assurance providers mentioned throughout the report, including DSS+ for safety audit and independent auditors for carbon savings verification.

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• XCarb® green steel certificates
• XCarb® recycled and renewably produced products
• Steel powders for additive manufacturing

Awards & Recognition

• Sustainable Development certificate for steel solutions in packaging (Aerosol & Dispensing Forum, Paris 2023).