ArcelorMittal South Africa

Climate Impact & Sustainability Data (2006, 2013)

Reporting Period: 2006

Environmental Metrics

Waste Generated:5 million tonnes/year (by-products)

ESG Focus Areas

Environmental Impact
Black Economic Empowerment (BEE)
Education
Corporate Social Investment (CSI)
Risk Management
Supply Chain Transformation
Employee Well-being
Safety

Environmental Achievements

Achieved zero-effluent discharge status at Vanderbijlpark plant (46% reduction in water abstraction)
Saldanha plant has been zero-effluent discharge since inception
R222 million Main Water Treatment Plant commissioned at Vanderbijlpark
Similar project underway at Newcastle plant
Improved disabling injury frequency rate (DIFR) by 18%

Social Achievements

R733 million procurement spend to BEE suppliers
Established Mittal Steel Science Centre (R8.5 million investment)
Implemented numerous training and internship interventions
Extended two-year no forced retrenchment agreement to 2007
Extended long-term wage agreement to June 2008
Launched employee re-engagement initiative
Collect-A-Can recycling project with 67% recycling rate

Governance Achievements

Approved Enterprise-Wide Risk Management Policy
Established risk committee
Implemented uniform assessment, monitoring, and reporting standards for risk management

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Improve energy efficiency by 15% by 2014
Reduce CO2 emissions per tonne of crude steel by 7% by 2014
Achieve and maintain ambient PM10 dust levels of 40μg/m3
Reduce water abstraction per tonne of crude steel by 40% by 2010
Achieve material efficiency rate of 95% by 2010

Short-term Goals:

Achieve zero-effluent discharge status at Newcastle plant
Implement revised air emission reduction strategy
Complete contractor safety management intervention
Roll-out employee wellness strategy

Environmental Challenges

Legacy environmental issues
Air and water pollution
Technical skills shortage
High international standards for suppliers
Difficulty of emerging suppliers meeting standards
HIV/AIDS pandemic
Unemployment in surrounding communities
Competitiveness of steel prices
Alleged anti-competitive pricing behaviour
Transnet logistical problems
Large asset insurance deductibles
Tax deductibility of business assistance agreement disallowed

Mitigation Strategies

Investing capital, research, time, and resources in environmental and sustainability projects
Environmental Master Plans to reduce pollution
Preferential procurement from BEE suppliers
Information sessions for suppliers
Establishment of Procurement and Logistics Centre of Excellence
Partnership with tertiary education institutions
HIV/AIDS support programme
New pricing model benchmarking against international prices
Investigation of transport alternatives, increased stockpiling, and alternative blast furnace fuels
Programme of self-insurance
Technical skills retention and training programme, sponsorship and bursary programmes, and Science Centre
Potential mitigating strategies depending on Alternative Dispute Resolution meeting outcome

Supply Chain Management

Responsible Procurement

Preferential procurement from BEE suppliers
Information sessions for suppliers
Establishment of Procurement and Logistics Centre of Excellence
Partnership with tertiary education institutions

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Certifications: OHSAS 18001 (health and safety management system)

Sustainable Products & Innovation

Lightweight steel frame structures for affordable housing

Reporting Period: 2013

Environmental Metrics

Total Carbon Emissions:15.2 million tonnes CO2e (Scope 1 and 2)

Scope 1 Emissions:11.54 million tonnes CO2e

Scope 2 Emissions:3.66 million tonnes CO2e

Total Energy Consumption:125 PJ

Water Consumption:17.5 million kL

Waste Generated:1.65 million tonnes