Climate Change Data

Worthington Steel, Inc.

Climate Impact & Sustainability Data (2023, 2024)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:308,699 tCO2e/year (Scope 1 & 2 location-based)
Scope 1 Emissions:144,873 tCO2e/year
Scope 2 Emissions:163,826 tCO2e/year (location-based)
Renewable Energy Share:2.18% of total energy use
Total Energy Consumption:4,097,076 GJ/year
Water Consumption:2,100,000 m3/year
Waste Generated:457,565 tons/year

ESG Focus Areas

  • Human Capital Management
  • Diversity, Equity and Inclusion
  • Occupational Health and Safety
  • Philanthropy and Volunteerism
  • Board Governance and Oversight
  • Ethics and Integrity
  • Risk Management
  • Responsible Supply Chain
  • Environmental Management System
  • GHG and Non-GHG Emissions
  • Waste and Water Management
  • Product Safety and Innovation

Environmental Achievements

  • Reduced propane usage by 12% in Austria plant, lowering energy use by 1,057 MWh and annual carbon emissions by approximately 225 tons of CO2e.
  • Reduced hydrogen consumption by over 19,000,000 CF in Columbus Steel Processing facility.
  • 97% diversion rate of total waste diverted from landfills.
  • Over 99% of spent pickle liquor is either regenerated or reused.

Social Achievements

  • Established four new Employee Resource Groups.
  • 53% of salaried new hires were diverse and 39% of internal promotions were diverse employees.
  • Employee Engagement Survey participation rate increased to 76% from 70% in the prior year.
  • Total Case Incident Rate (TCIR) of 2.29 compared to 4.1 industry average.

Governance Achievements

  • Expanded reporting to include the Task Force on Climate-related Disclosure (TCFD) framework.
  • Majority of independent directors (10 out of 12).

Climate Goals & Targets

Long-term Goals:
  • Set greenhouse gas (GHG) emissions reduction targets aligned with limiting global warming to 1.5 degrees Celsius above pre-industrial levels.

Environmental Challenges

  • Climate-related physical risks to facilities from extreme weather events.
  • Transition risks from changing environmental regulations and market shifts.
  • Managing supply chain risks such as sole sourcing or critical materials sourcing.
Mitigation Strategies
  • Investing in systems and technology to improve energy efficiency, reduce waste, and conserve water.
  • Developing strategies to bolster preparedness for regulatory changes and market shifts.
  • Implementing robust supplier risk assessment process and developing risk mitigation plans.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct
  • Corporate Social Responsibility self-assessment
  • Supplier risk assessment process

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme precipitation, wind, temperature, drought, and sea level rise
Transition Risks
  • Changing environmental regulations, new technologies, and shifts in consumer preference
Opportunities
  • Improving energy efficiency and reducing GHG emissions

Reporting Standards

Frameworks Used: GRI Standards, SASB Iron & Steel Producers Standard, SASB Industrial Machinery & Goods Standard, SASB Building Products & Furnishings Standards, TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 6
  • SDG 7
  • SDG 8
  • SDG 11
  • SDG 12
  • SDG 13
  • SDG 14
  • SDG 15
  • SDG 16

The report maps progress on material topics aligned with the UN Sustainable Development Goals.

Sustainable Products & Innovation

  • Lightweight aluminum helium cylinder
  • Lighter-weight high pressure steel cylinders
  • PowerCore™ cylinder for water-based adhesives
  • Propane home heating systems
  • SmartLid® product for remote propane level monitoring

Awards & Recognition

  • Newsweek America’s Most Responsible Companies 2023
  • Investor’s Business Daily 100 Best ESG Companies 2022
  • Columbus CEO Top Workplaces (11 consecutive years)
  • IDG’s Computerworld 100 Best Places to Work in IT (6 consecutive years)
  • Military Friendly Employer® (8 consecutive years)

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:192,050 MT CO2e
Scope 1 Emissions:95,764 tCO2e
Scope 2 Emissions:96,286 tCO2e
Renewable Energy Share:1.3%
Total Energy Consumption:2,602,551 GJ
Water Consumption:619,000 m3
Waste Generated:406,471 tons
Carbon Intensity:0.02 MT CO2e per ton processed

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Savings of 725 metric tons of carbon dioxide equivalent (MT CO2e) in greenhouse gas (GHG) emissions
  • 98% waste diverted from landfills
  • Renewable electricity purchases reduced emissions by more than 4,600 MT CO2e

Social Achievements

  • Safety record 1.9x better than industry average
  • 59,462 hours of EHS training completed (more than 10 hours per production employee)
  • $3 million contributed to 73 non-profit organizations

Governance Achievements

  • Updated Supplier Code of Conduct
  • Investigated five reports received through the Ethics Line
  • 7 out of 10 directors were independent

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Supply chain engagement is imperative, given the bulk of GHG emissions inventory lies outside of our operations.
  • Climate-related risks including operational and business continuity risks tied to climate change, increased weather event severity, flood risks, and water scarcity.
Mitigation Strategies
  • Collaborate up and down the supply chain to continuously refine Scope 3 GHG emissions methodology.
  • Enterprise Risk Management System to regularly evaluate, manage and mitigate climate-related risks.
  • Investments in expansions of electrical motor laminations and tailor welded blanks businesses and light-gauge galvanized steel processing for solar racking systems.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Increased weather event severity
  • Flood risks
  • Water scarcity
Transition Risks
  • Regulatory changes
  • Technological advancements
  • Market shifts
Opportunities
  • Decarbonization of transportation
  • Energy transition
  • Upgrade of aging U.S. infrastructure

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001, ISO 50001 (one facility), IATF 16949:2016 (28 facilities), ISO 9001 (one facility)

Sustainable Products & Innovation

  • Highly engineered traction motor laminate cores for electric vehicles
  • Transformer cores for electric grid infrastructure
  • Light-gauge galvanized steel for solar panel racking

Awards & Recognition

  • Columbus CEO – Top Workplaces (12th consecutive year)
  • Military Friendly® Employer (9th consecutive year)
  • Newsweek – America’s Greatest Workplaces for Diversity
  • Newsweek – America’s Most Responsible Companies
  • Newsweek – America’s Most Trustworthy Companies
  • John Deere – Partner-level Supplier (12th consecutive year)
  • GM – Supplier of the Year
  • MAHLE – Zero PPM Award