Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health & Safety
• Environment
• Innovation and the Value Chain
• Human Resources
• Community Relations
• Governance, Risk and Compliance

Environmental Achievements

• 10% reduction in tn CO2 / tn steel in 4 steelmaking facilities vs 2019
• 98.9% material efficiency at steelmaking sites
• 82% recycling content in steel
• Reduction in CO2 emissions intensity from steelmaking sites by almost 10% compared to 2019

Social Achievements

• 54% reduction in Lost Time Injury Frequency Rate compared with 2017
• Implemented a targeted program to support community medical systems and infrastructure in response to the COVID-19 pandemic
• ProPymes Program benefited 4,824 people in 2020

Governance Achievements

• Board member designated to oversee implementation and development of strategy for climate change and quarterly board discussions scheduled on this subject
• Updated ten compliance and ethics related internal norms, and trained 530 employees in person or virtually worldwide in 2020

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on global oil demand, leading to a collapse in prices and a drop in investments in drilling activity
• Supply chain disruptions due to the COVID-19 pandemic
• Declining demand for products and services due to the pandemic and the collapse in oil prices

Mitigation Strategies

• Implemented a worldwide program to reduce fixed cost structure, including salary reductions
• Adjusted variable costs to reduce production levels and deployed furlough schemes
• Decreased capital expenditure, R&D expenses, and working capital
• Mobilized resources to support communities with a USD 6.2 million fund
• Accelerated the introduction of digital initiatives to strengthen supply chain integration

Supply Chain Management

Supplier Audits: Around 75% of active service suppliers classified as high HSE risk suppliers audited and certified as of December 2020

Responsible Procurement

• Rigorous selection process to ensure suppliers meet QHSE policy and Code of Conduct standards
• Require all business partners to observe high standards governing ethical behavior, legal compliance, and HSE responsibilities
• Conduct supplier HSE audits and work with them to manage long-term risks

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Transition Risks

• Regulatory changes associated with the energy transition affecting demand for products

Opportunities

• Development of products and services for low-carbon energy applications (hydrogen transportation and storage, carbon capture and storage, geothermal installations)

Reporting Standards

Frameworks Used: GRI-Core option, SASB, TCFD, UN Global Compact

Certifications: ISO 14001, ISO 45001, ISO 9001

Sustainable Products & Innovation

• Products for low-carbon energy applications
• Dopeless® connections

Awards & Recognition

• AmCham Business Citizenship Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health & Safety
• Environment
• Innovation and the Value Chain
• Human Capital
• Community Relations
• Governance, Risk and Compliance

Environmental Achievements

• Reduced average carbon emissions intensity of tubular operations to 1.2 tons of CO2 per ton of steel processed (compared to 1.4 tons in 2018 and 1.3 tons in 2020)
• Achieved 78% recycling content in steel (slightly lower than 2020 due to scrap availability)
• Reached 99.0% material efficiency at steelmaking sites
• Reduced CO2 emissions intensity by 14% vs. 2018 baseline

Social Achievements

• 58% reduction in Lost Time Injury Frequency Rate compared with 2017
• No fatal accidents in the last three years
• USD 18 million invested in health and safety in 2021
• 93% participation of professionals in the last Employee Opinion Survey (November 2021)
• Implemented a comprehensive Health Care plan: annual medical check-ups and gathering statistical health data
• Launched a widespread vaccination awareness campaign for employees and their families

Governance Achievements

• CEO variable compensation linked to financial and non-financial indicators
• Updated sixteen compliance and ethics-related internal norms
• Offered thirty-four in-person or online business conduct training sessions to 742 employees
• Implemented a digital platform to systematize due diligence procedures on high-risk third parties

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions and volatility due to geopolitical turmoil and the war in Ukraine
• Increased raw materials and energy costs
• Scrap availability impacting recycling content
• Pandemic-related challenges impacting operations and workforce
• Employee turnover

Mitigation Strategies

• Adapting supply chain and industrial/commercial strategy to volatility
• Improved industrial performance and higher absorption of fixed costs
• Investments in energy efficiency and renewable energy (USD 190 million wind farm project in Argentina)
• Development of alternative sourcing strategies for raw materials
• Internal carbon price of USD 80/ton for evaluating investments
• Comprehensive health and safety plan to manage the coronavirus outbreak
• New Way of Working strategy embracing flexibility for hybrid work and learning
• Recruitment drive to meet rise in demand and production
• Strengthened Contractor Management Process

Supply Chain Management

Supplier Audits: 80% of active service suppliers classified as high HSE risk audited and certified in 2021 (479 new audits performed)

Responsible Procurement

• Code of Conduct
• Compliance with local laws and regulations
• HSE audits
• ProPymes program to support SMEs

Climate-Related Risks & Opportunities

Transition Risks

• Decreased demand for oil and gas applications as the energy transition advances

Opportunities

• Increased demand for products and services for low-carbon energy applications (geothermal, hydrogen, carbon capture and storage)

Reporting Standards

Frameworks Used: GRI-Core option, SASB, TCFD, UN Global Compact, worldsteel Sustainable Development Charter

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: PwC Société coopérative (limited assurance on selected KPIs)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Tenaris's initiatives contribute to these goals through investments in renewable energy, development of low-carbon products, circular economy practices, and reduction of environmental footprint.

Sustainable Products & Innovation

• THera™ materials technology for hydrogen applications
• Dopeless® connections
• Products for low-carbon energy applications (hydrogen storage and transportation, carbon capture, use and storage, geothermal energy)

Awards & Recognition

• worldsteel Sustainability Champion (for four years)
• American Chamber of Commerce in Argentina award for contribution to quality education

Environmental Metrics

ESG Focus Areas

• Climate Change
• Stakeholder Engagement
• Health & Safety
• Environment
• Innovation and the Value Chain
• Human Capital
• Community Relations
• Governance, Risk and Compliance

Environmental Achievements

• Reduced carbon emissions intensity of tubular operations to 1.17 tons of CO2 equivalent per ton of steel processed (compared to 1.43 tons in 2018)
• Increased recycling content of steel to 77-78%
• Invested USD 110 million in projects to reduce carbon intensity and improve environmental performance in 2022

Social Achievements

• Decreased lost time injury frequency rate by 10% to 0.9 per million man-hours worked
• Hired 6,500 new employees
• Launched a comprehensive health care plan including annual medical check-ups

Governance Achievements

• CEO variable compensation linked to financial and non-financial indicators
• Prompt disciplinary actions taken in response to breaches of Code of Conduct
• Board oversees implementation and development of strategy for climate change through quarterly board discussions

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to global uncertainty and inflation
• Increased Scope 3 emissions intensity due to higher proportion of welded steel pipes
• Competition for scrap supplies

Mitigation Strategies

• Investing in strengthening supplier relationships
• Adopting a Sustainable Sourcing Policy
• Developing alternative sourcing strategies for raw materials
• Investing in renewable energy projects and improving energy efficiency
• Exploring alternative materials to replace coal use

Supply Chain Management

Supplier Audits: 90% of high-HSE risk active service suppliers audited and certified in 2022; 469 new audits conducted

Responsible Procurement

• Code of Conduct
• Sustainable Sourcing Policy
• HSE audits

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions and shifts in weather patterns

Transition Risks

• Government regulations
• Market shifts

Opportunities

• Development of low-carbon products and services for hydrogen, CCS, and geothermal energy

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, worldsteel

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: PwC Société cooperative (limited assurance)

Sustainable Products & Innovation

• Products and services for hydrogen, CCS, and geothermal energy

Awards & Recognition

• American Chamber of Commerce in Argentina award for contribution to quality education

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circularity and Material Efficiency
• Environmental Care
• Health & Safety
• Our People
• Local Communities
• Sustainable Value Chain
• Ethical & Transparent Operations
• Innovation & Prosperity

Environmental Achievements

• 17% reduction in CO2-eq/tn steel processed vs 2018 baseline
• First wind farm in full operation and another one in development
• 79% scrap recycling content in steel
• 12% of the electricity mix sourced from renewables
• Investment in improving fume systems emissions control
• New steel and heat treatment furnaces

Social Achievements

• Launched the Health Care Project (well-being)
• Contractor Safety Management
• Talent retention and development
• Global education programs
• Volunteer activities
• Arts & culture activities
• 50% target for female intake in graduate trainees program

Governance Achievements

• Board oversight of sustainability topics
• Code of Ethics
• Critical Risk Committee
• Business Conduct Compliance Program
• Compliance Line
• Modern Slavery Statement

Climate Goals & Targets

Environmental Challenges

• Three fatalities in operations after four years with none.
• Limited availability of local scrap in Argentina.
• Increase in Scope 3 emissions related to purchased steel offsetting reductions in Scope 1 and 2 emissions.
• Supply chain disruptions

Mitigation Strategies

• Reinforcing preventive actions with a particular focus on the activities of contractors working in our system.
• Investing in projects to improve scrap market sourcing ability, as well as scrap-handling and storage capabilities.
• Increasing the use of recycled steel scrap, implementing energy efficiency measures, introducing renewable energy.
• Strengthening supplier relationships, reducing transaction costs, enhancing flexibility and fostering greater adaptability for more efficient problem-solving.
• Adopting a Sustainable Sourcing Policy

Supply Chain Management

Supplier Audits: 510 new audits in 2023. 92% of high-HSE risk active service suppliers audited and certified.

Responsible Procurement

• Code of Conduct for suppliers
• New suppliers evaluation tool
• ProPymes Program
• Sustainable Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Wind
• Heat waves and extreme temperature
• Extreme precipitation
• Drought
• Wildfire

Transition Risks

• Regulatory changes
• Market shifts
• Changes in oil and gas demand

Opportunities

• Development of energy-efficient products
• New sales avenues in low-carbon energy applications (geothermal, hydrogen, CCS)

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: PwC Société cooperative

Sustainable Products & Innovation

• Dopeless® technology
• Products for hydrogen storage and transportation, CCS, geothermal energy

Awards & Recognition

• LEED certification for Bay City mill
• worldsteel Sustainability Champion for six years
• Campana ETRR shortlisted for World’s Best School Prize in Innovation