Climate Change Data

Usinas Siderúrgicas de Minas Gerais S.A. – Usiminas

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:5.4 million tCO2e (Steelmaking) + 0.15 million tCO2e (Mining)
Scope 1 Emissions:4.74 million tCO2e (Steelmaking) + 0.0423 million tCO2e (Mining)
Scope 2 Emissions:0.05 million tCO2e (Steelmaking) + 0.0086 million tCO2e (Mining)
Scope 3 Emissions:0.61 million tCO2e (Steelmaking) + 0.1056 million tCO2e (Mining)
Total Energy Consumption:79,519,134 GJ (Steelmaking) + 62,619.22 GJ (Soluções Usiminas) + 1,340,540 GJ (Mining)
Water Consumption:55,770.71 ML (Steelmaking) + 44.28 ML (Soluções Usiminas) + 4,051.65 ML (Mining)
Waste Generated:60,316 tons (Steelmaking) + 25,513.33 tons (Soluções Usiminas) + 8 tons (Mining)
Carbon Intensity:2.32 tCO2/tcs (Steelmaking)

ESG Focus Areas

  • Governance
  • Social
  • Environmental
  • Economic and Financial Performance

Environmental Achievements

  • Completion of Blast Furnace No. 3 refurbishment, resulting in significant reduction in greenhouse gas (GHG) emissions and sedimentable particles.
  • Achieved 94.5% water recirculation rate in processes.
  • Achieved 98% material efficiency.
  • Repurposed over 2.7 million tons of waste at the Ipatinga plant, reducing stored liabilities by more than 430,000 tons.

Social Achievements

  • Launched the “+ Atitude” health promotion program.
  • Increased female representation in leadership positions by 3.2% to 17.67%.
  • Generated over 9,000 temporary jobs during Blast Furnace No. 3 refurbishment, with 60% going to Vale do Aço residents.
  • 100% of employees covered by collective bargaining agreements.
  • Invested R$19.8 million in cultural, sports, social, and health initiatives.

Governance Achievements

  • 98.6% of employees underwent training on the Code of Ethics and Conduct.
  • 70% compliance with the Brazilian Securities and Exchange Commission (CVM) Governance Code Report (ICBGC).
  • Implemented a comprehensive integration program for newly appointed senior management members and Supervisory Board members.

Climate Goals & Targets

Medium-term Goals:
  • Reduce emissions intensity by 15% by 2030 (Scope 1 and 2)

Environmental Challenges

  • Increased volume of steel imports under unfavorable competitive conditions for domestic producers.
  • Potential risks from adverse weather conditions impacting operations and financial performance (extreme weather, droughts, floods).
  • Transition risks associated with evolving regulatory frameworks and carbon pricing mechanisms.
Mitigation Strategies
  • Development of a Decarbonization Plan with targets for 2030.
  • Refurbishment of Blast Furnace No. 3 to improve efficiency and reduce emissions.
  • Enhanced utilization of steelmaking gases as alternative fuels.
  • Optimization of raw material blends and increased use of scrap metal.
  • Integration of biomass and renewable energy sources.
  • Regular evaluation of potential impact of forthcoming regulatory mandates.

Supply Chain Management

Supplier Audits: 100% of strategic suppliers assessed for sustainability risks and opportunities; 131 new companies accredited for security.

Responsible Procurement
  • Code of Ethics and Conduct
  • General Corporate Administrative Standard for Supplies
  • General Conditions for Service Execution and Supplies policy
  • Safe Supplier Program

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Droughts
  • Floods
  • Rising sea levels
Transition Risks
  • Regulatory changes
  • Carbon pricing mechanisms
Opportunities
  • Development of energy-efficient products
  • Expansion into renewable energy

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB Iron & Steel Producers e Metal & Mining, TCFD

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

Third-party Assurance: LRQA

UN Sustainable Development Goals

  • Goal 3
  • Goal 5
  • Goal 7
  • Goal 8
  • Goal 12
  • Goal 13
  • Goal 17

The report mentions alignment with several SDGs throughout the document.

Sustainable Products & Innovation

  • Advanced High-Strength Steel (AHSS)
  • High-strength steels for wind towers and solar panels
  • High-performance electrical steels

Awards & Recognition

  • Partner-Level Supplier Award – John Deere
  • Excellence Award for the Brazilian Mining-Metallurgy Industry
  • Toyota Award
  • Brasa/Toyota Award
  • Moto Honda Award
  • RAIZ Award
  • Achieving Excellence Award Recognition – John Deere
  • AB2L Legal Department Certificate 4.0
  • Industrial Award
  • Ranking 100 Open Corp
  • Maxion Supplier Award
  • 25th Minas Business Performance Award