Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Safety
• Community Engagement
• Governance

Environmental Achievements

• Reduced steel mill Scope 1 and 2 GHG emissions intensity by 15% from 2018 to 2021
• Increased use of renewable electrical energy to 11% in steel mill operations (achieving 2025 goal)
• Recycled and reused 100% of water withdrawn in 2021 at steel mills
• Redirected over 99% of EAF dust for recycling in 2021
• Steel mills' Scope 1 and 2 combined GHG emissions intensity is the lowest among all global steel companies tracked by the Transition Pathway Initiative.

Social Achievements

• Achieved a total recordable injury rate of 1.8 (meaningfully better than industry benchmarks)
• 81% overall employee retention rate in 2021 (86% for US-based teams, 91% for steel teams)
• $388 million of profits shared with eligible team members in 2021
• Significant community investment through donations and the Steel Dynamics Foundation
• 11% of colleagues are female and 29% are ethnically diverse in 2021

Governance Achievements

• 73% of directors are independent; all committee members are independent
• Strong corporate governance policies and practices, including a Code of Business Conduct and Ethics and an Ethics Line
• Regular engagement with major institutional investors on ESG matters

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 1 GHG emissions
• Increasing renewable energy usage
• Maintaining safety performance
• Managing supply chain risks

Mitigation Strategies

• Investment in SDI Biocarbon Solutions with Aymium to reduce Scope 1 emissions by up to 35%
• Continued focus on energy efficiency and renewable energy sourcing
• Implementation of the 'Take Control of Safety' initiative
• Vertically integrated business model to secure raw material supply
• Diversification of raw material sources

Supply Chain Management

Responsible Procurement

• Supplier Code of Business Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Emerging regulation (increased costs and supply chain disruptions)
• Carbon pricing mechanisms (increased operating costs)

Opportunities

• Development and expansion of lower-carbon emission products
• Increased competitiveness due to carbon pricing mechanisms

Reporting Standards

Frameworks Used: GRI, SASB Iron & Steel Producers Standards, TCFD

Certifications: ISO 14001 (Butler and Columbus Flat Roll divisions)

Third-party Assurance: Third-party verification of 2021 steel mills' Scope 1, 2, and 3 emissions data in accordance with ISO 14064-3:2019

Sustainable Products & Innovation

• Lower-carbon steel produced through EAF technology
• Planned lower-carbon aluminum flat rolled products

Awards & Recognition

• Lennox Diamond International Supplier Excellence Award
• Wabash Platinum Supplier Award
• Hyundai Recognition Excellence Award
• Steel Joist Institute Design Award
• Forbes One of the World’s Best Employers
• Fastmarkets Steel Producer of the Year North America
• Fortune One of the World’s Most Admired Companies
• Investor’s Business Daily One of the 100 Best ESG Companies
• American Technical Education Association’s Silver Star of Excellence Award

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• 17% reduction in steel mills’ Scope 1 & 2 GHG emissions intensity since 2018
• 14% renewable electricity use in steel mills in 2022 (meeting 2025 goal)
• 100% of mill scale recycled
• 98% of hazardous waste recycled
• 99+% of EAF dust recycled
• Steel mills’ energy intensity 25% of the world average

Social Achievements

• Total Recordable Injury Rate of 1.8 (meaningfully better than industry benchmarks)
• 33% of colleagues considered ethnically diverse in 2022
• 11% of colleagues female in 2022
• $7.6M combined companywide and foundation charitable donations
• $3.2M of scholarships earned by children of team members

Governance Achievements

• 40% of board members are ethnically diverse or female
• Performance-based incentive compensation aligning team members with shareholders

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 1 GHG emissions
• Further increasing renewable energy usage

Mitigation Strategies

• SDI Biocarbon Solutions joint venture to reduce Scope 1 emissions by up to 35%
• Continued investment in EAF technology development and new technologies in metals recycling
• Research and implementation of innovative technologies to reduce emissions and improve energy efficiency
• Increased use of renewable energy

Supply Chain Management

Responsible Procurement

• Strong long-term relationships with suppliers, ensuring quality service and supplies

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB Iron & Steel Producers Standards

Third-party Assurance: Third-party verification of 2021 and 2022 Scope 1 and 2 emissions data in accordance with ISO 14064-3:2019

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• 20% reduction in steel mills’ Scope 1 & 2 GHG emissions intensity since 2018
• 10% use of renewable electricity at steel mills
• 100% of steel mill production utilizes Electric Arc Furnace (EAF) technology
• 13.4M tons of ferrous scrap reintroduced into the manufacturing life cycle
• 1.1B pounds of nonferrous scrap reintroduced into the manufacturing life cycle

Social Achievements

• Record low total recordable injury rate (1.4)
• $6.2M combined companywide and SDI Foundation charitable donations
• $3.4M of scholarships earned by children of team members
• 50% of Board members are ethnically diverse or female

Governance Achievements

• Performance-based incentive programs aligning with long-term growth, customer, community, and shareholder interests

Climate Goals & Targets

Environmental Challenges

• Reducing GHG emissions further to achieve carbon neutrality by 2050
• Increasing renewable energy usage

Mitigation Strategies

• Construction of a biocarbon production facility to reduce Scope 1 GHG emissions
• Signing the largest renewable product purchase agreement in the North American steel industry

Supply Chain Management

Responsible Procurement

• Expecting all service providers to operate with the same high-performance level of safety, service, and social practices

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI, SASB Iron & Steel Producers Standards