Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Decarbonization
• Talent Development
• Occupational Safety
• Community Support
• Good Governance
• Equality and Diversity
• Human Rights
• Supplier Sustainability

Environmental Achievements

• Started analysis and negotiation to extend renewable energy supply agreement (PPA) to more business units.
• Agreement for non-fossil fuel supply in American plants.
• Project to improve use of recycled material with a 14% reduction in materials with higher environmental footprint.
• Start-up of a solution for the recovery of 100% of the slag from the steel mill, recycling 17000t/year and avoiding over 3000t of CO2 emissions.

Social Achievements

• Continued support for Colabora Birmania NGO, focusing on education for Burmese child refugees in Thailand.
• All main production business units certified to ISO 45001 (health and safety).
• TTI & ACERALAVA certified to ISO 45001 in 2021.
• Foundation promoted labor integration, training, and community support programs.

Governance Achievements

• Established a Sustainability and Good Governance Committee.
• Approved Regulations for the Audit and Compliance Committee.
• Approved new Regulation for the Appointments and Remunerations Committee.
• Renamed the Strategy and Investments Committee to Strategy and Follow-up Committee.

Climate Goals & Targets

Environmental Challenges

• Low backlog at the start of the year due to the impact of COVID-19.
• Eight-month strike at Spanish plants.
• Inflationary environment impacting energy costs and the value chain.
• Logistics problems and disruptions in maritime transport.
• Economic reassessment of projects in the planning, design, or trading phase due to rising raw material prices.

Mitigation Strategies

• Implemented an emergency action plan against COVID-19, resulting in annual savings of over €30 million.
• Global restructuring plan to improve competitiveness and prepare for the energy transition.
• New strategic plan (2022-2025) focusing on decarbonization, low-emission energies, and new business development.
• Financial restructuring in 2020 to ensure liquidity and solvency.
• Collective agreement signed in October 2021 to regulate labor relations until 2025.

Supply Chain Management

Supplier Audits: 700 suppliers assessed through a pilot risk management tool.

Responsible Procurement

• ESG aspects incorporated into corporate purchasing policy.

Climate-Related Risks & Opportunities

Physical Risks

• Acute physical risks
• Chronic physical risks

Transition Risks

• Market transition risks
• Reputational transition risks
• Technical transition risks
• Policy & Legal transition risks

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 45001

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 13

The report mentions alignment with the UN's Sustainable Development Goals (SDGs) throughout its sustainability initiatives.

Sustainable Products & Innovation

• Tubacoat (ceramic coatings)

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Social
• Human Rights
• Anti-bribery and corruption
• Governance

Environmental Achievements

• Obtained a leadership score of (A-) in corporate transparency and climate change performance from CDP.
• 81.3% of waste recycled (goal is 95% by 2030)
• 33.3% renewable energy (goal is 40% by 2030)

Social Achievements

• Reduced Lost Time Injury Frequency Rate (LTIFR) by 57.6% compared to 2019.
• Improved Severity rate by 50% compared to 2019.
• 33,722 hours of training given (up 43% on 2021)

Governance Achievements

• Established a Sustainability and Good Governance Committee in 2021.
• Established an Audit and Compliance Committee.
• No claims made through the ethics channel in 2022.

Climate Goals & Targets

Environmental Challenges

• Climate change (physical and transition risks)
• Supply chain disruptions
• Raw material price increases
• Talent management and recruitment
• Diversity, equity, and inclusion
• Human rights
• Management of labor culture

Mitigation Strategies

• Joined the Science Based Targets (SBTi) initiative.
• Implemented a sustainability strategy with specific targets for emissions reduction, renewable energy, waste recycling, and supplier assessment.
• Developed alternative sourcing strategies.
• Implemented a supplier risk management tool.
• Implemented measures to attract and retain talent.
• Developed and disseminated corporate policies.
• Implemented a remuneration scheme linked to ESG.
• Developed a sustainable financing framework.
• Applied due diligence processes in all corporate operations.

Supply Chain Management

Supplier Audits: 801 suppliers assessed in ESG

Responsible Procurement

• Purchasing Policy
• Supplier Quality Manual
• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Chronic risks (rising sea levels, increased average temperatures)

Transition Risks

• Market risks
• Technology risks
• Regulatory and legal risks
• Reputational risks

Opportunities

• Development of energy-efficient products
• New technologies for new energy sources

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Ernst & Young, S.L.

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 13
• Goal 16

Initiatives contribute to these goals through various actions related to energy transition, sustainable management of resources, decent work, and responsible governance.

Sustainable Products & Innovation

• 100% recyclable products

Awards & Recognition

• CDP 'A-' score for environmental disclosure, awareness, management and leadership

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Energy Transition
• People
• Human Rights
• Ethics and Integrity
• Transparency
• Supply Chain Sustainability
• Community Development

Environmental Achievements

• Reduced energy intensity by 21% (from 2.85 MWh/VAB in 2019 to 1.40 MWh/VAB in 2023)
• Increased renewable energy share to 33.7% in 2023
• Increased waste recycled to 82.26% in 2023
• Avoided sending around 15,000 tons of slag to landfill per year through revalorization

Social Achievements

• Improved accident frequency rate by 63.3% and severity rate by 23.4% compared to 2019
• Achieved an EFQM score of 559/1000 in 2023
• Employee experience survey rating of 3.65 out of 5 in 2023
• Launched a new Occupational Health and Safety policy and a Human Rights policy in 2023
• Implemented equality plans at Basque Country plants

Governance Achievements

• Established a Sustainability and Good Governance Committee in 2021
• Updated General Risk Control and Management Policy in 2023
• Obtained AENOR certification for Risk Management System in accordance with UNE-ISO 31000:2018

Climate Goals & Targets

Environmental Challenges

• Climate change related physical risks (extreme weather events, chronic risks from long-term changes in weather patterns)
• Climate change related transition risks (policies and regulations, technology, market shifts, reputational risks)
• Supply chain disruptions
• Talent management and recruitment
• Maintaining competitiveness

Mitigation Strategies

• Developed a decarbonization plan to achieve emission reduction objectives
• Implemented measures for more sustainable waste management
• Extended ESG assessment process to the supply chain (829 suppliers assessed)
• Developed innovative solutions for the energy transition (hydrogen, CCS)
• Implemented Lean Manufacturing and TxPS system for operational efficiency
• Focus on long-term relationships with key customers
• Diversification strategy to reduce dependence on Oil & Gas

Supply Chain Management

Supplier Audits: 829 suppliers assessed in ESG through a pilot risk management tool (2023)

Responsible Procurement

• Purchasing Policy
• Supplier Code of Conduct (85.5% of purchasing volume signed in 2023)
• Supplier Quality Manual
• General Purchasing Terms and Conditions

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Chronic risks (rising sea levels, increased temperatures, rainfall patterns, droughts, heat waves, wildfires, storms, cyclones, flooding)

Transition Risks

• Policies and regulations
• Technology
• Market shifts
• Reputational risks

Opportunities

• Resource efficiency improvements
• Shift to low-emission energy sources
• Development of low-emission products and services
• New market opportunities

Reporting Standards

Frameworks Used: GRI, EFRAG, ESMA, CNMV, SASB, TCFD, UNGC, SBTi

Certifications: ISO 14001, ISO 45001, ISO 50001 (Indian plant)

Third-party Assurance: Ernst & Young, S.L.

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 4 (Quality Education)
• Goal 17 (Partnerships for the Goals)

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Materials and alloys for hydrogen applications
• Solutions for carbon capture and storage

Awards & Recognition

• Not disclosed