Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• People
• Community
• Environment
• Customers
• Innovation

Environmental Achievements

• Increased consumption of charcoal to around 350,000t annually in Brazilian plant after Blast Furnace #2 conversion to 100% charcoal.
• Energy-saving initiatives saved 2.4m GJ.
• Coke-to-charcoal fuel switch saved 1.3m GJ in Brazil.
• Switched from LPG to piped-in natural gas at Brazilian site.
• New water treatment unit at Imphy reduced water use by 35%.

Social Achievements

• Declared 2011 a year of socially responsible dialogue.
• Invested €7m (US$9.1m) in employee training.
• 94% of managers completed the GEDP leadership programme.
• Over 800 Brazilian colleagues gave 400 hours of their time to local charities.
• Established a Social Dialogue Programme in the Steel Valley (Brazil).

Governance Achievements

• Sustainability, Performance and Strategy Committee met six times in 2011.
• Joined the United Nations Global Compact in 2012.
• Monitors US, European Union and Luxembourg corporate governance requirements.

Climate Goals & Targets

Environmental Challenges

• Two tragic fatalities at Timóteo plant.
• Water consumption varies greatly across regions.
• Challenging conversations with trade unions regarding early retirement plans and voluntary separation.
• Managing the effects of air emissions on local communities.
• Dust emissions containing fine particles of nickel and chromium at Genk site.

Mitigation Strategies

• CEO immediately flew to Brazil to assess causes and work on response.
• Action plan proposed within one month for Timóteo plant.
• Adoption of local water management strategies.
• Tightened discipline in site equipment usage, added new monitoring arrangements at Genk, and received strong cooperation by contractors.
• Worked with residents and government departments at Genk, offered ‘open days’, published a residents’ magazine and ran daily briefings on site.

Supply Chain Management

Responsible Procurement

• General purchasing conditions cover safety and environmental requirements; will be expanded to cover human rights in future.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1, UN Global Compact

Certifications: ISO 14001 (main plants)

Sustainable Products & Innovation

• SolarStyl
• Kara range of stainless steel grades
• Electrical steels
• Grade K45 ferritic steel
• New duplex grade
• Magnetic materials for cooking utensils

Awards & Recognition

• 2012 Sustainability Award from ISSF for SolarStyl®
• Listed in the Sustainability Guide 2012 as one of the top 21 most sustainable organisations in Brazil

Environmental Metrics

ESG Focus Areas

• Safety
• Economic Value Generation
• Environmental Performance
• Employee Engagement
• Community Relations

Environmental Achievements

• 100% charcoal-powered furnaces in Brazil (reducing carbon intensity)
• 6.7% reduction in total water use compared to 2011
• 18% reduction in CO2 equivalent emissions from 2011
• Significant energy savings at Gueugnon plant with new production line (45% less gas, 27% less electricity)

Social Achievements

• Implementation of (we+do) concept to improve employee engagement and collaboration
• Completion of commitments relating to training and succession plans
• Aperam South America listed among top 21 most sustainable organizations in Brazil
• Aperam South America selected as a top 150 Best Place to Work for the third year running

Governance Achievements

• 10% of CEO and Management Committee performance bonus linked to safety performance
• Compliance with Luxembourg Stock Exchange Ten Corporate Governance Principles
• Implementation of Fair Play Policy

Climate Goals & Targets

Environmental Challenges

• Three fatalities in 2012
• Major fire at Gueugnon plant
• Challenging economic conditions in Europe
• Raw material price volatility
• European stainless steel overcapacity

Mitigation Strategies

• Redoubled efforts to achieve zero accidents
• Investment in new production line at Gueugnon for energy efficiency and safety improvements
• Reorganization of sourcing and commercial functions for greater customer benefits
• Implementation of risk management processes
• Focus on cost savings and effective pricing for customers

Supply Chain Management

Responsible Procurement

• Favoring local suppliers
• Requiring suppliers to respect quality, environmental, safety, and labor practice regulations

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO9001, OHSAS18001, ISO/TS16949

Third-party Assurance: Deloitte Audit

Sustainable Products & Innovation

• SolarStyl®
• K33X ferritic grade for automotive SCR systems
• Lean Duplex products (e.g., DX2202)
• UGINOX Cleantouch®

Awards & Recognition

• ISSF 2012 Sustainability Award for SolarStyl®
• Indesit’s ‘strategic supplier’ for the fifth consecutive year

Environmental Metrics

ESG Focus Areas

• Safety
• Employee Engagement
• Environmental Impact (Energy, Waste, Water)
• Stakeholder Engagement
• Supply Chain Management
• Community Engagement

Environmental Achievements

• Reduced CO2 intensity by 41.1% compared to 2007 baseline (achieved 2020 target early).
• Reduced energy intensity by 4.7% compared to 2013.
• Recycled or reused 88.6% of waste.
• Reduced water consumption by 7% compared to 2013.
• Reduced guided air emissions by 72% compared to 2006.

Social Achievements

• Reduced lost time injury frequency rate (LTIFR) from 1.3 in 2013 to 1.1 in 2014.
• Reduced absenteeism from 2.1% in 2013 to 2.03% in 2014.
• Implemented a Fair Play Policy for improved safety.
• Provided 9,000 hours of training through the ‘Instituto do Inox’ in Brazil.
• Successfully managed the closure of the Firminy plant, finding suitable solutions for 90% of employees.

Governance Achievements

• Established an Environment Working Group.
• Developed and launched a corporate governance and compliance programme.
• Established six working groups covering key strategic areas for sustainability improvement (2015-2020).

Climate Goals & Targets

Environmental Challenges

• Challenging market conditions.
• Contractor safety (LTIFR of 2.3 in 2013).
• Dust emissions.
• Water extraction allowance reduction risk.
• Waste for disposal (110.3k tonnes in 2014).

Mitigation Strategies

• Improved contractor safety procedures and launched a working group dedicated to improving contractor safety management.
• Implemented an extensive action plan to reduce dust emissions (increased monitoring, lower intervention thresholds, encapsulation).
• Developed a strategy to decrease water intake through reduced consumption, leakage reduction, and increased recycling.
• Investment in clean technology and performance improvements to reduce CO2 emissions and energy consumption.
• Action plan to reach the 2020 goal of zero residue (for disposal).

Supply Chain Management

Supplier Audits: 61 raw material suppliers assessed for socio-economic impacts.

Responsible Procurement

• Code of Business Conduct
• General Purchase Conditions
• Environmental policies
• Sustainable Sourcing charter
• Subcontractor Safety Charter

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 core level, UN Global Compact

Certifications: ISO 14001, OHSAS 18001, ISO 9001 (at 90% of sites), FSC (at 50% of sites), ISO 50001 (at one site)

Third-party Assurance: Deloitte Audit Société à Responsabilité (ISAE 3000 limited level assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Martensitic stainless steel MaX (lightweighting for automotive sector).
• Stainless steel fuel tank for hybrid cars.
• PHYTHERM® soft magnetic alloy for induction cookware.

Awards & Recognition

• Aperam South America selected as one of the best companies to work for by Guia Você S/A.
• Aperam South America listed as one of the most sustainable companies in Brazil by Exame magazine.

Environmental Metrics

ESG Focus Areas

• Environment
• Safety
• Governance

Environmental Achievements

• Cut by 35% CO2 intensity by 2020 vs. 2007
• Reduce by 5% Energy intensity by 2020 vs. 2012
• Significant CO2 reduction with -28% in 2015
• Reduce water intake by 5% by 2020 v 2015
• 88.8% of our waste was recycled or reused

Social Achievements

• LITFR improvement to 1.0 compared to 1.1 in 2014
• In top-3 of best Brazilian companies to work for in the steel sector
• Customer satisfaction up by 4% in Europe

Governance Achievements

• Executive remuneration linked to CSR indicators
• H&S metrics considered for Annual Bonuses
• Full Compliance plan with 100% employees trained
• New Compliance program preparing for 2016 European Data Privacy law update
• Strong Compliance and Corporate Governance framework including whistleblowing policy

Climate Goals & Targets

Environmental Challenges

• Asian stainless steel overcapacity
• Slowdown in Brazil impacting South American stainless steel apparent demand
• Low nickel price
• Unfair market behavior from Chinese imports in Brazil and Europe

Mitigation Strategies

• European restructuring completed
• Tariff measures in Brazil and Europe against unfair market behavior
• Portfolio management, development of new grades, preferred supplier plan, performant logistics in South America
• Leadership Journey initiatives for cost reduction and performance improvement

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Aperam South America was selected as one of the best companies to work for by Guia Você S/A

Environmental Metrics

ESG Focus Areas

• People and their safety
• Environment
• Governance

Environmental Achievements

• Reduced CO2 footprint by 35.2% from 2007
• Reduced dust emissions by 65% over 2015
• 94.3% recycling ratio

Social Achievements

• Launched company-wide SAFE training program
• Implemented Health and Safety Expectations Framework
• Improved Total Injury Rate from 24 in 2018 to 20.5 in 2019
• Increased female representation in workforce

Governance Achievements

• Joined ResponsibleSteel™ initiative
• Implemented an internal price for CO2 emissions since 2016
• Updated Code of Business Conduct

Climate Goals & Targets

Environmental Challenges

• Increased Lost Time Injury Frequency rate in 2019
• Stagnating water recycling ratio and increased water intake intensity
• Aggressive imports due to inefficient safeguard measures and severe pricing pressure

Mitigation Strategies

• Implementing actions to address H&S culture, standards and organization
• Developing multi-year roadmaps for water consumption reduction
• Focusing on cost competitiveness and delivering high-quality products

Supply Chain Management

Supplier Audits: 271 companies assessed in 2019

Responsible Procurement

• Code for Sustainable Sourcing and Purchasing
• Supplier commitment programmes
• Supply chain risk assessment

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts
• Extreme temperatures
• Fires

Transition Risks

• Regulatory changes
• Market shifts
• Rising costs of compliance

Opportunities

• Development of energy-efficient products
• Increased demand for sustainable products

Reporting Standards

Frameworks Used: GRI Standards (Core level), UNGC

Certifications: FSCⓇ (BioEnergia), ISO 45001 (1 site), SA8000 (1 site), ISO 26000 (2 sites), ISO 14001, ISO 50001, IATF 16949

Third-party Assurance: Deloitte Audit Société à responsabilité limitée

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)

Initiatives contribute to these goals through energy efficiency, waste reduction, renewable energy use, and carbon emission reduction

Sustainable Products & Innovation

• ENDUR ultra-high strength stainless steel
• Ultralight stainless steel concrete mixer
• MaX Advanced High Strength Stainless Steel for automotive applications

Awards & Recognition

• ISSF Health & Safety Silver Award
• National Labour Inspectorate H&S Competition (Poland)
• Good Environmental Practices award (BioEnergia)
• Second place in Governor's Award for Corporate Social Responsibility (Ústí)

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Environment
• Governance, Ethics & Compliance

Environmental Achievements

• Maintained best-in-class CO2 footprint among stainless steel producers (0.39 tCO2/tcs, -30% vs 2015)
• Recycling rates of over 94% for residues and water consumption
• Reduced energy consumption by 5.4% vs 2015 (12.2 GJ/tcs)

Social Achievements

• Improved lost-time injury frequency rate from 1.7 in 2019 to 1.5 in 2020
• Launched a new ‘Just Culture’ programme
• Improved employee satisfaction (86% in 2020)

Governance Achievements

• Joined ResponsibleSteel™ initiative
• Strengthened Sustainability, Ethics & Compliance approach
• Enhanced Board and executive oversight of ESG

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on production and stakeholder engagement
• Maintaining best-in-class CO2 footprint amidst production fluctuations
• Supply chain disruptions due to the pandemic

Mitigation Strategies

• Implemented strict protocols to prevent COVID-19 spread
• Aligned production with lower demand
• Reduced non-essential capital expenditure
• Developed alternative sourcing strategies

Supply Chain Management

Supplier Audits: 86 raw material suppliers assessed in 2019-2020; 128 transport suppliers assessed in 2020

Responsible Procurement

• Responsible Purchasing Policy, Code of Conduct, supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, UNGC, ResponsibleSteel™

Certifications: ISO 14001, ISO 45001, FSC®

Third-party Assurance: Deloitte Audit Société à Responsabilité limitée

UN Sustainable Development Goals

• Goal 3
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15

Initiatives contribute to these goals through various environmental, social, and governance programs

Sustainable Products & Innovation

• Stainless steel drums, conveyor chains, cyclone systems, train wagons

Awards & Recognition

• EcoVadis Gold label
• Best Employer in France
• Employer of the Year in Ústí Region (Czech Republic)

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Stakeholder Engagement
• Diversity & Inclusion
• Circular Economy
• Climate Change
• ResponsibleSteel™

Environmental Achievements

• Maintained best-in-class CO2 footprint (scope 1+2) among peers.
• Earned a Management level label from the Carbon Disclosure Project (CDP).
• Refined greenhouse gas reduction roadmap to align with the Science Based Targets initiative (SBTi).
• Calculated CO2 sequestration of forestry (externally verified based on ISO 14064).
• Launched first systematic biodiversity assessment.
• Consumed less water and more renewable energy.
• Implemented pioneering acid regenerator units in Genk (reducing waste and improving water quality).

Social Achievements

• Renewed Employee Climate Survey (77% response rate), showing high employee satisfaction and belief in Aperam's products.
• Extended Gender Equality program to cover all dimensions of inclusion and diversity.
• Organized ‘Black Consciousness’ and ‘Gay Pride’ months in Brazil.
• Defined three new numeric targets to reflect social ambitions (employee engagement, gender balance, digital learning).

Governance Achievements

• Four main European operations gained the stainless steel sector’s first site-level ResponsibleSteel™ certification.
• Preparation for certification of Brazilian operations.
• Incorporated sustainability objectives into individual objectives of all exempt employees.
• Prepared a sustainability-linked loan aligning loan terms to H&S performance and CO2 improvements.

Climate Goals & Targets

Environmental Challenges

• 2.2 lost-time injury frequency (up from 1.5 in 2020).
• Impact of the pandemic on safety performance and employee well-being.
• Increased nickel prices.
• Supply chain disruptions.
• Water scarcity in Brazil.
• Dust emissions in European meltshops.

Mitigation Strategies

• Strengthened Health & Safety organization with dedicated functions on Health & Well-being and H&S Technical Expertise.
• Launched a new Just Culture concept.
• Developed a new Health and Safety Roadmap (2022-2026).
• Implemented COVID-19 prevention measures (testing, vaccination, etc.).
• Implemented water-saving projects in Timóteo and Gueugnon.
• Developed action plans to reduce dust emissions, including improved maintenance protocols and increased ducting capacity.

Supply Chain Management

Supplier Audits: 106 raw material suppliers assessed bi-annually (moving to annual assessments); 239 non-raw material suppliers assessed.

Responsible Procurement

• Responsible Purchasing Policy
• Code of Business Conduct
• Supplier self-assessments
• Aperam internal assessments
• Training for sourcing buyers on conflict minerals and human rights.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts
• Carbon pricing

Opportunities

• Development of energy-efficient products
• Growth in renewable energy markets
• Expansion of circular economy initiatives.

Reporting Standards

Frameworks Used: GRI 2016 updated 2018 (Core option), ResponsibleSteel™, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, FSC®

Third-party Assurance: PricewaterhouseCoopers (PwC)

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)

Aperam's initiatives contribute to these goals through renewable energy use, efficient resource management, waste reduction, and CO2 emissions reduction.

Sustainable Products & Innovation

• ENDUR high-strength stainless steels
• Lean Duplex DX2202 stainless steel
• DEKOR ferritic stainless steel tubes
• Solutions for hydrogen applications
• Sustainable packaging alternatives.

Awards & Recognition

• ISSF Silver Award for pandemic response
• Awards for workplace safety in Poland and Germany
• Incredible Places to Work awards in Brazil
• Semad Recommend Seal in Brazil

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Environment (CO2 emissions, energy consumption, water usage, waste reduction)
• Governance (Ethics, Compliance, Stakeholder Engagement)

Environmental Achievements

• Reduced GHG emissions (net) to 0.32 tCO2e/tcs (Scopes 1+2), significantly below the industry average.
• Achieved a B rating from CDP on Water Security at the first attempt.
• Reduced dust emission intensity by 70% vs. 2015.
• Achieved ResponsibleSteel™ certification in both Europe and the Americas (Timoteo unit).

Social Achievements

• Integrated former ELG colleagues into the Aperam family.
• Achieved a 77% response rate in the annual Employee Climate Survey.
• Launched a global training program on Just Culture.
• Implemented initiatives to improve employee wellbeing and mental health.

Governance Achievements

• Strengthened Ethics & Compliance due diligence.
• Successfully completed ResponsibleSteel™ audits.

Climate Goals & Targets

Environmental Challenges

• Fatality involving a subcontractor in Brazil.
• Low demand in Europe during the second half of the year.
• Closure of the Uruguay Tube unit.
• Energy crisis in Europe.
• Raw material volatility.

Mitigation Strategies

• Full audit and review of processes for external work to prevent future fatalities.
• Economic unemployment at some plants.
• Sound integration of Aperam Recycling Division.
• Accelerated programs to reduce energy consumption and CO2 emissions.
• Developed alternative sourcing strategies.

Supply Chain Management

Supplier Audits: 97 suppliers assessed in 2022

Responsible Procurement

• Responsible Purchasing Policy (2020)
• Code of Business Conduct
• Supplier sustainability requirements
• ESG criteria in supplier selection

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding, water scarcity

Transition Risks

• Regulatory changes, market shifts, energy price volatility

Opportunities

• Development of energy-efficient products and solutions; growth in renewable energy markets.

Reporting Standards

Frameworks Used: GRI Standards (GRI Standards 2021)

Certifications: ISO 14001, ISO 45001, ResponsibleSteel™, FSC® (BioEnergia)

Third-party Assurance: PricewaterhouseCoopers (PwC)

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)

Aperam's initiatives contribute to these goals through its focus on renewable energy, sustainable production practices, waste reduction, and CO2 emission reduction.

Sustainable Products & Innovation

• Botanickel partnership for sustainable nickel production; returnable stainless trays for food packaging.

Awards & Recognition

• ISSF Gold Safety Award for Just Culture program; Incredible Places to Work awards (Brazil); ranked among best employers in Heavy Industry and Materials (Europe).

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Health & Safety
• Diversity & Inclusion
• ResponsibleSteel™

Environmental Achievements

• Received an ‘A-’ rating on climate change from the 2023 Carbon Disclosure Project (CDP) assessment.
• Achieved a net carbon intensity (scope 1+2, market based, all tons processed) of 0.32 tons of CO2e by ton of crude steel (vs 0.34 the year before).
• Aperam South America became the first special flat steel manufacturer in Latin America to receive ResponsibleSteel™ certification.
• Over 90% recycling/reuse rate overall
• More than 80% of scrap used in European operations.

Social Achievements

• Lost Time Injury Frequency Rate (LTIFR) decreased from 2.45 in 2022 to 2.29 in 2023.
• TRIR (Total Recordable Injury Rate) decreased from 7.1 in 2022 to 5.95 in 2023.
• 79% of staff would recommend Aperam as being a good place to work.
• Launched Aperam’s first Inclusion & Diversity month (in March), and the release of our new Inclusion & Diversity Policy (December).
• 7.7% salary gap (favouring men), down from 7.9% in 2022

Governance Achievements

• Compliance with the 10 Principles of Corporate Governance of the Luxembourg Stock Exchange.
• Received Ecovadis Platinum rating.
• Established a Global Assurance function reporting directly to the Audit and Risk Management Committee.

Climate Goals & Targets

Environmental Challenges

• Significant economic pressures, especially in Europe with continued margin pressure and historically low volumes.
• Lower shipments and lower average selling prices.
• Diminished volumes, reduced prices, and a noteworthy inventory valuation charge, exacerbated by an unfavourable price/cost development.
• High energy prices kept production in energy-intensive upstream manufacturing sectors below past years.
• Global structural overcapacity in stainless steel.

Mitigation Strategies

• Successful implementation of Phase 4 of the Leadership Journey®, exceeding the €150 million target with cumulative gains of €186 million.
• Strategic integration into raw materials, proving pivotal in turbulent times.
• Proactive strategy to bolster business robustness through self-help measures.
• Initiation of Phase 5 of our Leadership Journey®, Efficiency, with targeted gains of €200 million over 2024 to 2026, including a cost cutting plan in Europe of €50 million.

Supply Chain Management

Supplier Audits: Annual survey and regular reviews for main suppliers

Responsible Procurement

• Code of Responsible sourcing
• Code of business conduct
• Sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts
• Increased manufacturing costs due to emission-reduction legislation

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, EU Taxonomy, ResponsibleSteel™

Certifications: ResponsibleSteel™

Third-party Assurance: PwC (limited assurance for carbon sequestration)

UN Sustainable Development Goals

• Goal 5 (Gender Equality)
• Goal 11 (Sustainable Cities and Communities)
• Goal 16 (Peace, Justice and Strong Institutions)
• Goal 3, 5, 6, 7, 9, 11, 12, 13 and 16

Our products are used in a number of energy efficient applications, thereby contributing to the United Nations’ Sustainable Development Goals 3, 5, 6, 7, 9, 11, 12, 13 and 16, which relate to Health & Safety; Gender Equality; Clean Water and Sanitation; Affordable and Clean Energy; Industry; Innovation and Infrastructure; Sustainable Cities and Communities; Responsible Consumption and Production; Climate Action; and Peace, Justice and Strong Institutions.

Sustainable Products & Innovation

• Aperam Infinite™

Awards & Recognition

• Ecovadis Platinum rating
• ResponsibleSteel™ certification

Environmental Metrics

ESG Focus Areas

• Health & Safety
• CO2 Intensity
• Gender Diversity
• Water Intake
• Dust Emissions
• Biodiversity
• Circular Economy

Environmental Achievements

• Reduced CO2 intensity by 41% vs 2015 (0.32 te/tcs in 2022)
• Reduced water consumption by 40% vs 2015 (10.8 m3/tcs in 2022)
• Reduced dust intensity by 57% vs 2015 (107 g/tcs in 2022)
• 81% of 2022 revenues are EU Taxonomy aligned
• 1/3 of BioEnergia land is natural habitat (above the 20% legal requirement)

Social Achievements

• Gender diversity improved by ~1pp pa
• Employee satisfaction >80%
• 83% rate Aperam as a good employer

Governance Achievements

• Majority of Board is independent
• ESG KPIs linked to management compensation

Climate Goals & Targets

Environmental Challenges

• Low H2 production volumes impacting intensities on a per tonne basis
• Destocking continued, inventory valuation charge and strike-related disruptions in France (Europe)
• Seasonal trough quarter in South America

Mitigation Strategies

• New procedures set up centrally for water management, and site-specific action plans
• New multi-year plan started in 2016 to address dust emissions (esp. in Brazil)
• Leadership Journey® realized EUR12m gains in Q1 2023 (Σ EUR134m since Q1-21)

Supply Chain Management

Responsible Procurement

• FSC certified forest for charcoal production

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SBTi

Certifications: FSC®

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Sustainability
• Circular Economy
• Carbon Neutrality
• Biodiversity

Environmental Achievements

• Successfully passed ResponsibleSteel™ surveillance auditing process.
• BioEnergia launched a partnership to sell 15,000 metric tons of biochar carbon removal per year.
• Uses more than 80% scrap in European operations.
• Brazilian production uses charcoal from sustainably cultivated forests.

Social Achievements

• Lost Time Injury (LTI) frequency rate decreased to 1.7x compared to 2.7x in the first half of 2023.
• Implemented robust action plans to address health and safety risks.
• Expanded coverage of Learning Management module and launched a new module to handle recruitment and boost internal mobility.
• Regularly recognized as one of the best companies to work for in the Brazilian and French steel industries.

Governance Achievements

• Re-election of Mr. Sandeep Jalan as member of the Board of Directors.
• Shareholder approval to allocate up to 400,000 shares under the Leadership Team Performance Share Unit Plan (LT PSU Plan), including ESG targets.
• Cancellation of 4,852,118 treasury shares.

Climate Goals & Targets

Environmental Challenges

• Challenging economic climate and market environment, particularly in Europe and Brazil.
• Depressed demand in Europe due to low real demand and destocking.
• Import pressure on domestic prices in Brazil.
• Delayed ramp-up of hot rolling mill modernization in Brazil.
• Fluctuations in nickel prices and raw material prices.
• Global overcapacity in cold rolled steel.

Mitigation Strategies

• Implementation of Leadership Journey® Phase 4 and 5, aiming for cost reductions and productivity improvements.
• Focus on high-margin value-added niche products.
• Development of the Services & Solutions segment.
• Growth of the Alloys & Specialties segment.
• Hedging transactions to minimize currency exposure.
• Structural cost reduction plan of €50 million (Phase 5).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ResponsibleSteel™

Certifications: ResponsibleSteel™, ISO 45001, FSC®

UN Sustainable Development Goals

• 3
• 5
• 6
• 7
• 9
• 12
• 13
• 15
• 16

Products used in energy-efficient applications, contributing to various SDGs.

Sustainable Products & Innovation

• Biochar carbon removal
• Recycled scrap-based stainless steel