To develop and inform our own existing internal reporting systems and disclosure we have begun using and referencing the Global Reporting Initiative (GRI) sustainability reporting guidelines including the mining and metals sector supplement (see www.globalreporting.org)
To assist certain readers in the navigability of the corporate responsibility report and other ArcelorMittal publications we have included a table of the GRI G3 guideline parameters on which we currently report as well as the UN Global Compact principles (see www.unglobalcompact.org).
| Key | ||
|---|---|---|
| Annual Report 2008 | ArcelorMittal Form 20F 2008 | Fact Book 2008 - Safe Sustainable Steel |
| Global Reporting Index Indicator | Description of Indicator | Pages of 2008 CR report | Comment and Additional Sources | Repor- ting level |
UN Global Compact Principles |
|---|---|---|---|---|---|
| 1.0 Strategy and analysis | |||||
| 1.1 | Statement from the most senior decision-maker of the organisation about the relevance of sustainability to the organisation and its strategy (CEO Statement) | 2,3 | Corporate Responsibility involves getting the right processes in place to deliver our long-term strategy" | ||
| 1.2 | Description of key impacts, risks, and opportunities |
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| 2.0 Organisational profile | |||||
| 2.1 | Name of the organisation | Inside Front Cover | ArcelorMittal SA | ||
| 2.2 | Primary brands, products, and/or services | See 20F, page 17 | |||
| 2.3 | Operational structure of the organisation | See 20F, page 46 | |||
| 2.4 | Location of the organisation's headquarters | Back Cover | 19, Avenue de la Liberté, L-2930, Luxembourg | ||
| 2.5 | Number of countries where the organisation operates and names of countries |
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| 2.6 | Nature of ownership and legal form | See 20F, page 17 | |||
| 2.7 | Markets served, including geographical breakdown, sectors served, and types of customers/ beneficiaries | See 2008 Fact Book, page 7 | |||
| 2.8 | Scale of the reporting organisation |
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| 2.9 | Significant changes during the reporting period | See 20F, pages 28-30 | |||
| 2.10 | Awards received in the reporting period | 33, 34 | A number of environmental, safety and community awards throughout the year including energy and environmental mangement awards | ||
| 3.0 Report parameters | |||||
| 3.1 | Reporting period | 46 | This report includes information and activities undertaken by ArcelorMittal over the reporting period January 2008 to March 2009 | ||
| 3.2 | Date of most recent previous report | 7 | In July 2008, we published Corporate Responsibility Report 2007: Taking responsibility for transforming tomorrow | ||
| 3.3 | Reporting cycle | Presently annual | |||
| 3.4 | Contact point for questions regarding the report or its contents | Inside back cover | crteam@arcelormittal.com or sri@arcelormittal.com or +44 (0)203 214 2854 | ||
| 3.5 | Process for defining report content | 11-12 | Canvassing stakeholder opinions and materiality exercise | ||
| 3.6 | Boundary of the report | 1 | This report covers all operations over which we exercise management control and addresses key issues relating to some of our greenfield projects. | ||
| 3.7 | State any specific limitations on the scope or boundary of the report | 1 | Owing to the history of the Group pre-merger there are a number of different data collection systems in place. We are making efforts to align these systems | ||
| 3.8 | Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities | Not currently reported | |||
| 3.9 | Data measurement techniques and the bases for calculations | 34 |
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| 3.10 | Explanation of the effect of any re-statements of information provided in earlier reports, and reasons for such re-statement | Not applicable | |||
| 3.11 | Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report | Not applicable | |||
| 3.12 | Table indentifying the location of the Standard Disclosures in the report | Global Reporting Initiative summary table | |||
| 3.13 | Policy and current practices with regard to seeking external assurance for the report | 46-47 | "We have engaged an external assurance provider to develop our assurance roadmap" | ||
| 4.0 Governance, commitments, and engagement | |||||
| 4.1 | Governance structure of the organisation | See 20F, pages 113-116 | |||
| 4.2 | Indicate whether the Chair of the highest governance body is also an executive officer | The GMB is headed by Lakshmi Mittal as Chief Executive Officer. Mr. Mittal combines the roles of both Chairman and CEO | |||
| 4.3 | State the number of members of the highest governance body that are independent and/or non-executive members | 18 | 12 of the Board's 16 members are independent. For latest corporate governance developments see Fact Book, pages 36-39 |
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| 4.4 | Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body | 17 | Broad an active communications policy including road shows, meetings, conference call, and shareholder events | ||
| 4.5 | Linkage between compensation and the organisation's performance (including social and environmental performance) | 25 | We have introduced a new executive remuneration policy that links pay and benefits to our internal lost time injury frequency rate targets | ||
| 4.6 | Processes in place for the highest governance body to ensure conflicts of interest are avoided | 19 | The Code of Business Conduct covers legal compliance, competition and antitrust issues, anti-corruption measures, conflict of interest and fair dealing | ||
| 4.7 | Process for determining the qualification and expertise of Board members on economic, environmental, and social topics | 18 | In early 2009, we introduced new self-assessment procedures for our Board of Directors, which aim to make the Board more effective in its responsibilities. | ||
| 4.8 | Internally developed statements of mission or values, code of conduct and principles | 16 |
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1, 2, 6 | |
| 4.9 | Procedures for overseeing the identification and management of economic, environmental, and social performance | 7 | Our Board of Directors over see corporate responsibilty across the Company. The GMB representative for corporate responsibilty is Gonzalo Urquijo, and he reports to the GMB at least every quarter, and to the full Board of Directors at least twice a year. The corporate responsibility Coordination Group acts as an adviser to the corporate team and constitutes senior management from other corporate areas. | ||
| 4.10 | Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance | 18 | In early 2009, we introduced new self-assessment procedures for our Board of Directors, which aim to make the Board more effective in its responsibilities. | ||
| 4.11 | Explanation of whether and how the precautionary approach or principle is addressed by the organisation | See Annual Report and 20F for overall approach to risk management | 7 | ||
| 4.12 | Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organisation subscribes to or endorses | 10 | See stakeholder map | ||
| 4.13 | Memberships in associations and/or national/international advocacy organisations | 10 | See stakeholder map | ||
| 4.14 | List of stakeholder groups engaged by the organisation | 10 | See stakeholder map | ||
| 4.15 | Basis for identification and selection of stakeholders with whom to engage | 10-13 | See stakeholder map | ||
| 4.16 | Approaches to stakeholder engagement including frequency of engagement by type and by stakeholder group | 10-13 | We deliberately restrict the number of external bodies we engage in, because meaningful involvement takes a lot of time and resources, and we need to be sure we are focusing our efforts where they will make the most difference. | ||
| 4.17 | Key topics and concerns raised through stakeholder engagement, and how the organisation has responded | 10-13 | See 'Engagement' section for examples of stakeholder dialogue | ||
| Economic indicators | |||||
| EC1 | Direct economic value generated and distributed | 38 | Also working with World Steel Association to develop industry's 'economic value distributed' approach | ||
| EC2 | Financial implications and other risks and opportunities for the organisation's activities due to climate change | 30 | See 20F, page 38 | ||
| EC3 | Coverage of the organisation's defined benefit plan obligation | See 20F, page 86 | |||
| EC4 | Significant financial assistance received from government | See 20F, page F-40 | |||
| EC5 Additional | Range of ratios of standard entry level wage compared to local minimum wage at significant locations | Not currently reported | |||
| EC6 | Policy, practices, and proportion of spending on locally-based suppliers at significant locations | 19 | |||
| EC7 | Procedures for local hiring and proportion of senior management hired from local community | 38 | The number of jobs created directly in our steel or mining activities has a substantial positive impact on local employment | ||
| EC8 | Development and impact of infrastructure investments and services provided primarily for public benefit | 38 | In a number of developing countries, such as Kazakhstan, Liberia, Bosnia, and Senegal, we are the largest foreign investor. We have been, or continue to be, responsible for major infrastructure investments such as roads, transportation systems, ports and hospitals. | ||
| EC9 Additional | Understanding and describing significant indirect economic impacts, including the extent of impacts | 38 | In some countries we have contractual obligations including environmental, asset retirement and investment commitments. These oblige significant spend on socio-economic development in a country during the lifetime of the investment. | ||
| MM1 | Identification of sites where the local economic contribution and development impact is of particular significance | 38 | In a number of developing countries, such as Kazakhstan, Liberia, Bosnia, and Senegal, we are the largest foreign investor. We have been, or continue to be, responsible for major infrastructure investments such as roads, transportation systems, ports and hospitals. | ||
| MM2 | Value added disaggregated to country level | Total value in 2008 not currently disaggregated | |||
| Environmental indicators | |||||
| EN1 | Materials used by weight or volume | See 2008 Fact Book, page 59 | |||
| EN2 | Percentage of materials used that are recycled input materials | 31 | Every year more than 25 million tonnes of our products our recovered and recycled | 8 | |
| EN3 | Direct energy consumption by primary source | In 2007, our total energy consumption was approximately 2,565 Peta Joules, or 22.3 Giga Joules per tonne of liquid steel. Not currently reported for 2008 | 8 | ||
| EN4 | Indirect energy consumption by primary source | Not currently reported | 8 | ||
| EN5 Additional | Energy saved due to conservation and efficiency improvements | 34 | Expect to be able to report energy savings upon implementation of energy efficiency programme in 2008 | 8,9 | |
| EN6 Additional | Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements | 40 | "Between 2008 and 2012 we will spend more than US$ 500 million on energy efficiency and optimisation programmes" | 8 | |
| EN7 Additional | Initiatives to reduce indirect energy consumption and reductions achieved | 8 | |||
| EN8 | Total water withdrawal by source | 34 | Amounts to approximately 2.9 billion m3 | 8 | |
| EN9 Additional | Water sources significantly affected by withdrawal of water | 34 | Some of our operations are in sites prone to water shortages and these are our highest priority for improvement. | 8 | |
| EN10 Additional | Percentage and total volume of water recycled and reused | 34 | Eight sites, however, in Brazil, Spain and South Africa currently operate with zero effluent | 8 | |
| EN11 | Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas | 35 | We undertake biodiversity studies at our large sites and do what we can to rehabilitate land. | 8 | |
| EN12 | Description of significant impacts of activities on biodiversity in protected areas and areas of high biodiversity value | 35 | We undertake biodiversity studies at our large sites and do what we can to rehabilitate land. | 8 | |
| EN13 Additional | Habitats protected or restored | 35 | We have a number of reforestation projects near our operations including in Brazil, Spain, Romania, Ukraine and Kazakhstan | 8 | |
| EN14 Additional | Strategies, current actions, and future plans for managing impacts on biodiversity | 42 | We undertake biodiversity studies at our large sites and do what we can to rehabilitate land. | 8 | |
| EN15 Additional | Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk | Not currently reported | 8 | ||
| EN16 | Total direct and indirect greenhouse gas emissions by weight | 30 | "Owing to the size of our asset portfolio our steel-making operations emitted approximately 223 million tonnes of CO2 in 2008" | 8 | |
| EN17 | Other relevant indirect greenhouse gas emissions by weight | Not currently reported | 8 | ||
| EN18 Additional | Initiatives to reduce greenhouse gas emissions and reductions achieved | 30-31 | To reflect the importance of climate change to all aspects of the business, a multi-disciplinary climate change committee has been established | 8 | |
| EN19 | Emissions of ozone-depleting substances by weight | Not currently reported | 8 | ||
| EN20 | NO, SO, and other significant air emissions by type and weight | 35 | Details to be made available in future reporting | 8 | |
| EN21 | Total water discharge by quality and destination | Not currently reported | 8 | ||
| EN22 | Total weight of waste by type and disposal method | 43 | "Our operations have undertaken intensive efforts over recent years to reduce the volumes of final residues disposed of by landfill or incineration" | 8,9 | |
| EN23 | Total number and volume of significant spills | Not currently reported | 8 | ||
| EN24 Additional | Weight of transported, imported, exported, or treated hazardous waste | Not currently reported | 8 | ||
| EN25 Additional | Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by discharges of water and runoff | Not currently reported | 8 | ||
| EN26 | Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation | 32-33 | In 2008, we invested US$ 295 million in Research and Development. A significant part of that was aimed at reducing the environmental impact of our production processes | 8 | |
| EN27 | Percentage of products sold and their packaging materials that are reclaimed by category | Not applicable | 8 | ||
| EN28 | Value and number of significant fines and non-monetary sanctions for non-compliance with environmental laws and regulations | See 20F, page 122 | |||
| EN29 Additional | Significant environmental impacts of transporting products and other goods and materials | Not currently reported | 8 | ||
| EN30 Additional | Total environmental protection expenditures and investments by type | 35 | Total environmental capital expenditure in 2008 was US$ 228 million | 8 | |
| MM EN23 | Total amount of land owned, leased, and managed for production activities or extractive use; total land distributed, total land rehabilitated | Not currently reported | (8,9) | ||
| MM3 | The number/percentage of sites identified as requiring biodiversity management plans, and with plans in place | Not currently reported | (8) | ||
| MM4 | Percentage of product(s) derived from secondary materials | Not currently reported | (8) | ||
| MM5 | Policies for assessing the eco-efficiency and sustainability attributes of products | 32 | We have a dedicated Environment, Life-cycle and Materials team | 8 | |
| MM6 | Approach to management of overburden, rock, tailings, and sludges/residues | Not currently reported | (8,9) | ||
| Human Rights | |||||
| HR1 | Percentage and total number of significant investment agreements that include human rights clauses or human rights screening | 42 | We support the United Nations Universal Declaration of Human rights, the Core Conventions of the International Labour Organisation (ILO) and the United Nations Global Compact | 1,2 | |
| HR2 | Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken | 42 | We support the core conventions of the International Labour Organisation (ILO) | 1,2 | |
| HR3 Additional | Employee training on policies and procedures concerning aspects of human rights | 42 | Presently our internal human rights efforts are focused on awareness-raising. Relevant individuals from across the business are using a compliance assessment tool. | 1 | |
| HR4 | Total number of incidents of discrimination and actions taken | Not currently reported | 6 | ||
| HR5 | Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk | 16 | Our Code of Conduct has been designed to ensure our clients, suppliers and all others with whom we have dealings can trust us to be fair, reliable and transparent. It is also there to make sure our employees work in a safe environment. We will not enter locations where we cannot fulfil these commitments | 3 | |
| HR6 | Operations identified as having significant risk for incidents of child labour | 42 | We are a signatory to the United Nations Global Compact. Principle 5 states that "Businesses should support the effective abolition of child labour" | 5 | |
| HR7 | Operations identified as having significant risk for incidents of forced or compulsory labour | 42 | We are a signatory to the United Nations Global Compact. Principle 4 states that "Businesses should support the elimination of all forms of forced and compulsory labour" | 4 | |
| HR8 Additional | Percentage of security personnel trained in policies or procedures concerning human rights | Not currently reported | 2 | ||
| HR9 Additional | Total number of incidents of violations involving rights of indigenous people and actions taken | Not currently reported | 2 | ||
| MM11 | Process for identifying local communities' land and customary rights, including those of indigenous peoples, and grievance mechanisms used to resolve any disputes | 63 | "Our overall action plan includes: systematically engage dialogue with local stakeholders according to Group guidelines and practices" | ||
| Labour practices and decent work | |||||
| LA1 | Total workforce by employment type, employment contract, and region | See 2007 Fact Book, page 62 | |||
| LA2 | Total number and rate of employees turnover by age group, gender and region | Not currently reported | |||
| LA3 Additional | Benefits provided to full-time employees that are not provided to temporary or part-time employees | Not currently reported | |||
| LA4 | Percentage of employees covered by collective bargaining agreements | 22 |
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3 | |
| LA5 | Minimum notice period(s) regarding operational changes | Not currently reported | 3 | ||
| LA6 Additional | Percentage of total workforce represented in formal joint management-worker health and safety committees | 24 | In June 2008, we signed a Global Health and Safety Agreement with all of our trade unions which will establish Joint Health and Safety Committees in every plant | ||
| LA7 | Rates of injury, occupational diseases, lost days and absenteeism, and number of work-related fatalities by region | 24 | In 2008, overall injury rates for our own employees within our steel-making operations reduced on the previous year | ||
| LA8 | Education, training, counseling, prevention, and risk-control programmes in place regarding serious diseases | 25 | We are focusing on health management. We have many examples of excellent practice across the Group, and we are now working hard to share these ideas and processes as widely possible. | ||
| LA9 | Health and safety topics covered in formal agreements with trade unions | 22,24 | In June 2008, we signed a Global Health and Safety Agreement with all of our trade unions | ||
| LA10 | Average hours of training per year per employee per employee category | 26 | Investment, courses and training hours through ArcelorMittal university disclosed | ||
| LA11 Additional | Programmes for skills management and lifelong learning | 26 | "Launched in 2007, our Corporate University is the focus of internal training and development" | ||
| LA12 Additional | Percentage of employees receiving regular performance and career development reviews | Not currently reported | |||
| LA13 | Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity | 16 | Our Group Code of Business Conduct prohibits discrimination or harassment on the grounds of race, colour, sex, age, religion, ethnic or national origin, disability or any other unlawful basis | ||
| LA14 | Ratio of basic salary of men to women by employee category | Not currently reported | 6 | ||
| MM12 | Approach to identifying, preparing for, and responding to emergency situations | Not currently reported | |||
| MM13 | Number of new cases of occupational disease by type. Programmes to prevent occupational disease | 23,25 | Our health strategy focuses on a number of health issues. | ||
| Society | |||||
| SO1 | Nature, scope, and effectiveness of any programmes and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting | 38-41 | "At Group level, we maintain, and where possible exceed, minimum practice standard by developing regional action plans and toolkits. Our regional activities lead our resettlement activities on the ground in line with international best practice and government expectations" | ||
| SO2 | Percentage and total number of business units analyzed for risks related to corruption | 16 | Newly developed anti-corruption guidelines introduced in 2009 | 10 | |
| SO3 | Percentage of employees trained in organisation's anti-corruption policies and procedures | 16 | Anti-corruption guidelines were approved in early 2009, and will be rolled out across the Group, backed up by comprehensive training | 10 | |
| SO4 | Actions taken in response to incidents of corruption | 16 | As a signatory to the United Nations Global Compact, ArcelorMittal "works against corruption in all its forms including extortion and bribery" | ||
| SO5 | Public policy positions and participation in public policy development and lobbying | 40 | With regards to climate change we are engaged with the European Union as well as US and Canadian legislative bodies | ||
| SO6 Additional | Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country | Not currently reported. The Code of Business Conduct states that we will not directly or indirectly offer or give anything of value to any government official, including employees of state-owned enterprises, for the purpose of influencing any act or decision in order to assist the Company in obtaining or retaining business or to direct business to anyone. | |||
| SO7 Additional | Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes | See 20F, page 125-127 | |||
| SO8 | Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations | See 20F, page 125-127 | |||
| MM7 | Description of significant incidents affecting communities during the reporting period, and grievance mechanisms used | 40 | Community engagement standard introduced in 2008 with supporting community engagement database in development | ||
| MM8 | Description of programmes in which the reporting organisation has been involved that addressed artisanal and small-scale mining (ASM) | Not applicable | |||
| MM9 | Description of resettlement policies and activities | 42 | We work to handle the rehabilitation and resettlement policy in fair and open manner, observe the highest international standards including social and environmental impact assessments, and respect local cultural and social concerns. Our policy is to work with local groups, and invite all the people affected to get involved in planning their new community, and developing new jobs and amenities. | ||
| MM10 | Number or percentage of operations with closure plans, company policy, stakeholder engagement processes, frequency of plan review, and amount and type of financial provisions for closure | Not currently reported | |||
| Product responsibility | |||||
| PR1 | Life cycle stages in which health and safety impacts of products and services are assessed for improvement | 32 | A dedicated Environment, Life-cycle and Materials team within R&D evaluates processes, products and solutions using the life cycle assessment methodology. This analyses every stage in the life of a piece of steel | ||
| PR2 Additional | Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle | Not currently reported | |||
| PR3 | Type of product and service information required by procedures, and percentage of significant products and services, by type of outcome | Not currently reported | |||
| PR4 Additional | Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcome | Not currently reported | |||
| PR5 Additional | Practices related to customer satisfaction, including results of surveys measuring customer satisfaction | Not currently reported | |||
| PR6 | Programmes for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship | Not currently reported | |||
| PR7 Additional | Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, by type of outcomes | Not currently reported | |||
| PR8 Additional | Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data | Not currently reported | |||
| PR9 | Monetary value of significant fines for non-compliance with laws/regulations concerning the provision and use of products and services | Not currently reported | |||
