Sustainability Report 1
2011
CONTENTS 1
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Sustainability Vision
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On the Report
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Message of the Board
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Investing in Our Staff
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Case: Always Alert
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Mission, Vision, Values
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Our identity and performance
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Corporate Governance
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People management
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Profile of the organization in Brazil
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Map of stakeholders
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Professional development
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Commitments and relationships
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Wage policy 32
Case: A New Model of Corporate Education
Health and Safety
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Transparent Governance
Making Steel More Sustainable 39 Case: A pioneer in ensuring a lower environmental impact Environmental management
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Enriching Our Communities
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Case: The Family goes to school
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Social responsibility 70
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Relationships with communities
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Materials 43
Art and culture 81
Emissions 46
Community development 82
Water resources 49
Volunteering 83
Effluents 50
Value creation 84
Waste 51
Transparency 86
Energy management
Report Profile 87
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Biodiversity 56 Environmental education
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Responsibility for our product
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GRI Summary 87 Awards and acknowledgments
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Glossary 112 Corporative Informations
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Credits 117
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Sustainability Vision
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Sustainability Vision Transparent Governance Investing in Our Staff Making Steel More Sustainable
1 – Sustainability Vision
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Summary
On the report ArcelorMittal Brasil’s Sustainability Report shows to society the way the Company works guided by its belief that economic development must walk hand in hand with a socially and environmentally responsible behavior. This translates into the results and actions relating to transparency in the Company’s governance, its investment in its employees, the sustainability of its business and the way it cares for the communities it relates with.
The Report was prepared based on the Global Reporting Initiative (GRI) guidelines, version G3.1. These guidelines are the first global choice for drafting sustainability reports. They allow us to measure and disclose the economic, environmental, social and governance performance of the Company – the four core areas for sustainability. This is the seventh consecutive year that ArcelorMittal Brasil chooses that methodology to report its results, in a continuous effort that reflects the learning curve and the level of maturity achieved by the Company’s areas and units in Brazil.
Scope The 2011 Sustainability Report delivers the results of the economic, environmental and social dimensions from flat and long carbon steel segment units in Brazil. It also includes a detailing of the corporate governance practices, strategic vision, commitments and relationship actions developed around its stakeholders.
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Each chapter opens with a successful case considered by the Company as a highlight in the period covered. They are projects, achievements and results that reflect ArcelorMittal Brasil’s values and its efforts in the search for sustainability. In their turn, the pictures display the daily life of the business units’ employees. The information was provided by the managers of the several areas, who seek to use the GRI indicators in monitoring their activities, thus making that methodology into a management tool.
Sustainability Vision Climate Survey was performed in 2010, and a new one will be done in 2012.
Transparent Governance Investing in Our Staff Making Steel More Sustainable
Distribution Tuned to its view towards sustainability and awareness-raising in its stakeholders as to the rational use of available resources, ArcelorMittal Brasil chooses to produce only the electronic version of the report. The publication is available to all stakeholders in the Company’s website: www.arcelormittal.com/br. This practice, which has been adopted since 2006, also extends the scope and access to information, allowing the report to be shared and used as a benchmark throughout the world.
Assessment The Company carries out various actions, such as meetings, events, lectures and workshops, and arranges employee training sessions in order to increasingly widen its ways of collecting and consolidating information. Together with the reports and other Company data survey formal mechanisms, such information is used to make up the Sustainability Report. The Corporate Climate Survey, which is conducted every two years, is also a tool used to gage management aspects. The data raised show how employees - one of the Company’s major stakeholders - see their work environment. These data are transformed into strategies and action plans intended primarily to ensure a stimulating and creative environment where they can carry out their duties. The last
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Enriching Our Communities
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Sustainability Vision Transparent Governance Investing in Our Staff Making Steel More Sustainable Enriching Our Communities
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Board Message Consumption of steel has a great impact on the Gross Domestic Product (GDP) and the economic growth of countries. In addition to the effects visible at once, the steelmaking sector performance as producer, input consumer and generator of household consumption causes its production chain to play a significant role in the way the country’s industry and economy behave. A member of the largest steelmaker in the world, ArcelorMittal Brasil is aware of its responsibility in generating value and maintaining its position as a benchmark in the search for sustainable ways of working. The year 2011 was a time of challenges. At the same time, it also provided opportunities for all our employees to show their creativity and commitment to the goals set. The international economic situation caused adversities, such as the extension of
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the global scenario of surplus capacity and economic crises. Domestically, the efforts were guided by the values that make our organization stand out: the strong internal leadership, the quality in all management and sustainability areas in their multiple aspects, including the priority given to the health and safety of employees, with an emphasis on our zero fatality rate. These add to our environmental controls, and the development of people and communities. Throughout the year we had the chance to show our strengths. We seek continuous improvement in all processes, working especially towards decreasing and controlling fixed costs. We invest in innovation and productivity; coordinate integrated synergy efforts between the long and flat carbon steel segments; and we ensure performance in a profitable and sustainable way. We have maintained domestic competitiveness, preserving our market share, and we are increasingly closer to customers, which is the
essential basis of our business model. One of the initiatives focused on synergy gains in 2011 was the creation of ArcelorMittal Comercializadora de Energia Ltda. (AMCEL), to ensure the maximum internal use of the selfproduced electricity at ArcelorMittal Tubarão. AMCEL has an outlook both of the Company’s power consumption profile and the amounts generated and those purchased in the market. Any energy surplus obtained in the flat or long carbon steel segments is distributed within the Group, which results in lower costs through the elimination of transmission and distribution costs. Any contract surpluses are made available for sale to the market. Among the achievements in the environmental area the sale of the second ArcelorMittal Tubarão carbon credit batch and the awarding of the ABNT (Brazilian Association of Technical Standards) Eco-label to ArcelorMittal
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Sustainability Vision Aços Longos stand out. In the first instance the Company received the approval of the United Nations Framework Convention on Climate Change (UNFCCC) for the sale of carbon credits relating to the second assessment of the project for electricity cogeneration through the reuse of steel mill flue gas. The European bank Kreditanstalf fuer Wiederaufbau (KfW) acquired credits from about 140 thousand tons of CO2 from the reduction in greenhouse gas (GHG) emissions in the period from 2007 to 2009, amounting to $ 3.34 million BRL. The ABNT Eco-Label is a pioneering environmental quality certificate granted to steel for civil construction produced in the ArcelorMittal Juiz de Fora, ArcelorMittal Piracicaba, ArcelorMittal Cariacica, ArcelorMittal Itaúna and ArcelorMittal São Paulo mills. The certificate confirms the importance of investments in these units to ensure respect for the environment throughout all production stages. In order to bring employees into this process and make it easier to access information on the whole Group, we have launched our Intranet in 2011. The platform, which brings together over 80 webpages from the several Arcelor Group companies in Brazil, aims at creating effective and seamless communication among the various units. The results in the Health and Safety area also deserve mention. In 2011 Serra Azul Mine in Itatiaiuçu (MG) was awarded four starts in the IRCA (International Register of Certificated Auditors) audit, thus becoming a global benchmark in Health and Safety procedures. Located near the town of Bela Vista de Minas, Andrade Mine celebrated 19 years without lost time accidents. We have maintained the Company’s soundness and kept our leading position in the Latin American steel industry. However, the downturn in the global economy during 2011 caused ArcelorMittal Brasil to temporarily
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suspend the expansion works for ArcelorMittal Monlevade and the project for a hot dip galvanizing third line at ArcelorMittal Vega. We are keeping an eye on the market behavior in order provide quick answers to future client demands. We believe business should move ahead over the next few years. We have a diverse product mix, a performance model focused on the domestic market and on segments that should stay heated, especially the automotive and the household appliance industries, the primary sector and the construction industry. After the forced drop in activity level in 2011 mainly to control inflation the GDP may start to grow again, thanks to the decrease in interest rates in Brazil. Economic forecasting from major financial institutions point to a stable behavior for Brazilian economy. The year 2011 can also be seen as one more chapter in story of ongoing good practices and endeavors. We have renewed confidence in the Company’s sustainable growth, and we are grateful for the help from our shareholders and employees, who are firmly committed to our objectives and business targets. Finally, we renew our commitment to the Global Compact, which we are signatories of since 2001. The Board.
Transparent Governance Investing in Our Staff Making Steel More Sustainable Enriching Our Communities
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Sustainability Vision Transparent Governance
Our identity and operations 1 Canada 2 USA
10 Brazil
Investing in Our Staff
19 The Netherlands 28 Austria
37 Greece
46 Vietnam
55 Spain
Making Steel More Sustainable
20 Belgium
29 Switzerland
38 Turkey
47 India
56 Portugal
12 Argentina 3 Mexico 4 Costa Rica 13 Finland 14 Norway 5 Trinidad 6 Venezuela 15 Sweden
21 Luxembourg
30 France
39 Azerbaijan
48 Pakistan
57 Liberia
22 Germany
31 Italy
40 Kazakhstan
49 United Arab
58 Nigeria
23 Poland
32 Bosnia
41 Russia
50 Emirates
59 Malaysia
24 Czech Republic
33 Serbia
42 China
51 Lebanon
60 Singapore
7 Colombia
16 Estonia
25 Slovakia
34 Romania
43 Korea
52 Egypt
61 Indonesia
8 Ecuador
17 Denmark
26 Ukraine
35 Bulgaria
44 Japan
53 Algeria
62 South Africa
9 Peru
18 United
27 Hungary
36 Macedonia
45 Taiwan
54 Morocco
11 Chile
Kingdom
14 15 18
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17 19
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21 29
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56 55
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28 33 35 36 37 52
27 34 38
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43 42 47
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Sustainability Vision
ArcelorMittal worldwide
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• A world leader in steel production, operating in over countries..
Investing in Our Staff Making Steel More Sustainable Enriching Our Communities
• One of the major companies in the Group, ArcelorMittal Brasil includes plants for the production and/or processing of steel.
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ArcelorMittal Brasil
12 thousand*
• Has about
employees.
• Works in the segments of long and flat carbon steel, wire drawing, reforestation and production of renewable solid bio-reducer (charcoal), energy generation and services, besides having its own organizations in the fields of information technology and social responsibility.
• Presence in
four
Latin American countries (Brazil, Argentina, Costa Rica and Venezuela)
innovation knowledge, quality and technology to find solutions matching the challenges of sustainability .
• It occupies a prominent position in the market it trades in, and is guided by a commitment to invest in
,
. *Does not include the wire, trainee and apprentice segment.
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Sustainability Vision Transparent Governance Investing in Our Staff Making Steel More Sustainable Enriching Our Communities
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Summary
Our History Today ArcelorMittal Brasil is the largest steelmaker in Latin America, with an installed capacity of 13 million tons a year. The raw material is intended for the most diverse applications: automobiles, home appliances, packaging, construction and farming are just a few examples. The Company includes assets from ArcelorMittal Long carbon steel and ArcelorMittal Flat carbon steel. Long carbon steel • Composition: steel mills and wireworks in Minas Gerais, São Paulo and Espírito Santo; Acindar in Argentina; and ArcelorMittal Costa Rica. • Start of activities: it began operating in Brazil in 1921.
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• Products: wire rod for industrial applications and general use, rolled products for construction and wire products, such as wire rods, screens, nails, lattices, bars and shapes. It is one of the three largest producers of wire rods for steel cord, a product used to reinforce tires. It leads South American production of wires for industrial applications and agribusiness. • Capacity utilization: 6.5 million tons a year of rolled products and 1.55 million tons of wire products. Flat carbon steel • Composition: ArcelorMittal Tubarão in Espírito Santo, ArcelorMittal Vega in Santa Catarina and Unki in Venezuela.
• Start of activities: 1983 (ArcelorMittal Tubarão) and 2003 (ArcelorMittal Vega) • Products: hot-rolled plates and coils (Tubarão) and coldrolled and galvanized coils for the automotive, home appliance, construction, pipe and section, distribution and packaging industries, among others (Vega). • Capacity utilization: ArcelorMittal Tubarão can produce 7.5 million tons a year. For shipping its products it has a port complex including the Praia Mole Steel Products Terminal eight kilometers from the plant, which is a barge terminal for shipping rolled products, and a well-equipped railway network. Now, ArcelorMittal Vega has the capacity to produce 1.4 million tons of products a year.
In 2011, ArcelorMittal Brasil exported to: South Africa, Germany, Belgium, Bolivia, Canada, Chile, China, Colombia, South Korea, Costa Rica, Ecuador, United States, Indonesia, Luxembourg, Malaysia, Paraguay, Peru, Turkey, Uruguay and Venezuela.
Sustainability Vision Transparent Governance Investing in Our Staff Making Steel More Sustainable Enriching Our Communities
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Industry Performance The year 2011 posed an ongoing challenge to the steel industry. According to data from the World Steel Association, the world steel demand has been growing in quite different intensities throughout the several regions of the globe, thus causing significant changes in the international trade flow of steel products. Consumption in 2011 grew by 5.6 %, reaching 1.37 billion tons despite the natural disasters in Japan and Thailand and the economic deterioration in Europe. But the world capacity surplus - over 470 million tons - caused significant trade biases in the global steel market, which adversely affected steel makers’ prices and profits. Despite Brazil having adequately faced the international economic crisis effects the Gross Domestic Product (GDP) in the year was 2.7%, well below the growth recorded in the previous year, which was 7.5 %. Accrued Brazilian steel production totaled 35.2 million tons of crude steel and 25.1 million tons of rolled products, which amounts to a 6.8% increase and 1.1% drop, respectively, when compared to the same period in 2010. Throughout the year the cost of raw materials and foreign exchange changed widely and 12 Brazilian states kept a policy of granting tax incentives for the direct and indirect import of steel products. Apparent steel consumption in Brazil reached 25 million tons, 4.2% less than the amount recorded in 2010.
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Direct imports of steel also declined, mainly due to Brazilian industry having grown little, high levels of steel inventories in the supply chain at the end of 2010, and mainly to the efforts of the industry to maintain price competitiveness. The contribution of direct imports to apparent steel consumption decreased in 2011, but stayed at 14.4%, well above its historical level. Despite the dynamism of some economic segments, Brazil suffered a process of deindustrialization in the metal-mechanics chain. Imports of products from this important industrial segment reached historical record-breaking levels, amounting to indirect imports of over 5 million tons of steel products. In this challenging situation ArcelorMittal Brasil has managed to provide quick and effective responses. As a result, the Company’s consolidated net revenues reached $17.28 billion BRL in 2011 from the sale of 10.3 million tons of products - a 2% increase against the revenue from the previous year. The operating result (Ebtida) was $ 2.4 billion BRL (14% margin), a 35% decrease compared to 2010. The Company recorded a consolidated net loss of $ 173 million BRL mainly due to the reporting of deferred income tax on the effects of the US Dollar functional currency amounting to $ 409 million BRL, against the 11% appreciation of the US Dollar against the Real in 2011.
Summary sumário
According to data from Instituto Aço Brasil (IABr), whereas in European countries the average per capita consumption is over 400 kg, in Brazil this figure has stayed around 100 kg for the last 30 years, which shows a possibility for growth of the domestic steel market, to help in the economic development of the country. Despite new challenges being expected for 2012 due to the excess capacity of steel worldwide, the Brazilian market shows signs of recovery. This optimistic scenario is based, among other factors, in infrastructure works and programs to raise and foster steel consumption, which are already scheduled by the government, especially investments related to the Growth Acceleration Program (PAC), the 2014 World Cup and the 2016 Olympic Games in Rio de Janeiro. In the case of the 2014 cup, over half of all the steel used in the works is being supplied by ArcelorMittal Brasil. This is a result of the work and joint efforts of all the Group’s Brazilian units.
Sustainability Vision Transparent Governance Investing in Our Staff Making Steel More Sustainable
Customer Satisfaction ArcelorMittal Brasil has strategies and practices designed to gage how happy its clients are with our products, commercial service, logistics, client support and marketing. The goal is to keep track of the feelings and desires of our customers and compare the Company’s performance against that of our competitors. Such practices include surveys and questionnaires, whose results will provide support to business decisions and procedure reviews. ArcelorMittal Aços Longos (Long carbon steel) conducts customer satisfaction surveys every two years. Data are collected by means of telephone interviews conducted by a survey institute hired for the job. Strategic customers and active clients that ran at least three purchases in the previous six months are contacted. The questions cover areas such as products, trading conditions, commercial service, logistics, marketing, and client support. Held since 1995 this survey served as the basis for several significant changes over the years, as for example a change in nail packaging in order to improve their resistance and make it easier to identify them. At the same time ArcelorMittal Aços Planos (Flat carbon steel) develops its own methodology to measure client satisfaction. Questionnaires are delivered to customers during scheduled visits
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or sent by e-mail, asking them to rate product and service quality on a scale of 1 to 10. Also, they include a qualitative evaluation in order to see how they compare with products and services provided by the competition. In 2011 the cumulative survey result for all products and services supplied reached the targets, which means they were deemed satisfactory. The units also disclose a Client Complaint Index, which includes information on non-conformities on their products. In 2011 the flat carbon steel segment registered 0.12% complaints, a rate obtained from the ratio of the amount of products with complaints divided by the amount of products shipped.
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Transparent Governance
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Sustainability Vision Transparent Governance Investing in Our Staff
2 – Transparent Governance
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Always Alert Every day ArcelorMittal renews its commitment to corporate ethics in business by sharing instructions and guidelines with its employees in order to prevent, detect and treat any deviations or non-conformities. These guidelines are part of the Compliance Program, which includes six policies. In 2011 one of the program subjects, the fight against fraud, was given special attention. The Company is ruled by zero tolerance regarding the practice and concealment of fraudulent or illegal acts, and believes that all its employees have a duty to report any suspicions in that regard. To remind them of the importance of being always alert to signs of fraud the Company had the Awareness Against Fraud Week in 2011. The event schedule included training for employees, surveys to assess awareness levels in the Company and the broadcasting of articles on the Intranet. Arranged by the Company’s Comprehensive Forensic Services together with the Brazil Legal Department the Week was a call to action for all employees and tried to show that vigilance is important that the operations of the Company are carried out according to good work practices.
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The campaign aimed at having employees remain alert to signs of fraud. “It is important that should people be vigilant and, on noticing some irregularity, talk to the related area or use the complaint function”, says Marcio Ferreira, responsible for ArcelorMittal’s Forensic Services in South America. According to the ArcelorMittal’s Anti-Fraud and and Whistleblower Policies reports on possibly irregular situations can be made to one’s immediate superior, to the Chief Executive Officer or other member of Management, the internal audit Investigation and Forensic Service department, the Legal Department chief executive or to the complaint channel over the phone or the Internet. The Anti-Fraud Policy, which is tuned to the Company’s Code of Conduct, applies to all employees, shareholders, consultants, suppliers, service providers, external offices that do business with employees and/or any other party that holds a business relationship with ArcelorMittal.
Fraud is defined as an intentional act of deception, misappropriation of resources or data manipulation that results in advantage or disadvantage to a person or entity, including any act of corruption.
Sustainability Vision Transparent Governance Investing in Our Staff Making Steel More Sustainable Enriching Our Communities
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Policies that make up ArcelorMittal Brasil’s Compliance Program
Summary
• Code of Conduct: Clarifies ethical and legal obligations to be met when carrying out Company business. It applies to all the Group’s directors, officers and employees. • Competition Protection Laws (Antitrust): They prevent any conduct that should or might violate the fundamental principles of competition and antitrust laws of the countries the Company operates in. • Policy on ArcelorMittal Insider Information: It lays down rules of conduct that prevent the misuse of privileged information and the market abuse, in addition to enforcing the duty of notification. • Anti-corruption Policy: It lays down specific rules and guidelines to prevent and combat corruption within the Company. • Human Right Policies: They complement and bring together aspects of other policies and guidelines to create a work environment where all human rights are fully respected. • Economic Sanctions: These set down rules and provide guidelines to ensure that no one within the Group should participate in economic sanction violations.
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A study conducted by the Association of Certified Fraud Examiners (ACFE) estimates that companies annually lose about 5% of their revenues because of frauds.
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Mission, Vision, Values ArcelorMittal Brasil’s Mission, Vision and Values are the same as the ArcelorMittal Group. They were set down in 2007 during the process of integrating Arcelor and Mittal Steel, and resulted from employees’ contributions, consolidated by the Group’s top executives. The employees are made aware of these guidelines through training and awareness programs.
Transparent Governance Investing in Our Staff Making Steel More Sustainable
Mission “To be the unquestionable leading supplier in the steel industry.”
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Vision “To be the most admired steel producer worldwide - the global benchmark in the sector.”
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Values Sustainability: Our commitment to the world around us goes beyond the basics and takes into consideration the needs of people we invest in and the communities that we support and where we operate. This long-term approach is the central axis of our business philosophy. Quality: Our vision goes beyond the limits of the present toward a glimpse of steel production in the future. The quality of our products depends on the quality of our people. Therefore, our goal is to attract and foster the development of the best talents to provide superior quality solutions to our customers. Leadership: Our clear vision of the future allows us to constantly create new opportunities. This enterprising spirit has led us to the forefront of the steel industry. Now, we are moving beyond what the world expects of the steel industry.
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Sustainability Vision
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Sustainability Vision
Corporate Governance
Transparent Governance Investing in Our Staff
ArcelorMittal Group
ArcelorMittal Brasil
Making Steel More Sustainable
Brazilian units’ corporate governance guideline include developing strategies to supply the market with quality steel, foster the social and economic progress of regions they operate in and developing their surrounding communities, in addition to reducing environmental impacts throughout their supply chain. The Brazil structure follows the same basis of the Group worldwide.
Board of Directors Responsible for the final word in the decision-making processes.
Group Management Board (GMB) • It includes eight officers under the leadership of our CEO, Mr. Lakshmi Mittal. • It leads the business and decides on the overall strategies, in addition to setting down and monitoring administrative actions in countries where the Company operates.
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Board of Directors • It includes at least three and at most nine members. Currently, there are five members appointed at the general meeting of shareholders for a two-year term, with an option for renewal. • The Board lays down the strategic guidelines, follows up on the business, elects officers, chooses or removes independent auditors, sets the general direction of the business, oversees the Company management and decides on the allocation of the year’s income. • Currently 40% of the Board of Directors’ members are independent or non-executive members.
Executive Board • It includes at least two and at most twelve officers. There are currently 10 members appointed by the Board of Directors for a two-year term, with an option for renewal. • It manages the Group’s business in the country, deciding on any matter not subject to the sole jurisdiction of the general assembly of shareholders or the Board of Directors.
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Audit Committee • Mentioned in the Company’s Bylaws, it operates on a non-permanent basis and can be installed at the shareholders’ request. • It includes three to five members, chosen by the general assembly of shareholders.
Sustainability Vision
Map of Stakeholders
CAPTION
In conducting its business, ArcelorMittal Brasil relates to different stakeholders, which are described on the map below. The Company has a Community Engagement Guide that sets down relationship standards and criteria for all kinds of stakeholders directly or indirectly affected by its business units. The company invests in a set of actions, such as meetings, training for employees, organizing and attending events, lectures and workshops that aim at expanding to the maximum the ways of gathering information. Together with the reports and other Company data survey formal mechanisms, such endeavors help to make up the Sustainability Report. The goal for 2012 is to have formal mechanisms for managing and mapping relationships with stakeholders.
Clients
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Employees
Government and Regulatory Agencies
Investors and lenders
Local communities
Transparent Governance Investing in Our Staff
Key-issues for our stakeholders Ways of engaging our stakeholders Why are our stakeholders so important to us? Why are we so important to our stakeholders?
Media
Multilateral and business organizations
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Suppliers
• Product quality and safety • Supply chain management • Renewable technologies, environmentally correct products
• Labor health and safety • Wages and bonuses/ awards • Work conditions - Job security • Career progression – Operational excellence
• Social and economic development • Job opportunities • Attraction of investments
• Corporate governance - Health and Safety - Climate changes - Corporate responsibility management
• Community engagement/ mobilization process • Environment • Social investment • Job opportunities
• Industry challenges and progresses • Health and Safety • Environmental Concerns
• Long-term challenges to the industry (climate changes) • Human Rights • Water consumption • Health and Safety • Responsible Supply
• Environmental protection • Social and economic development • Work conditions • Health and safety
• Code for responsible procurement • Product quality • Operational excellence Ethical business practices
• On site visits • Publications and events geared to clients • Partnerships: engineering teams at client units/plants
• Intranet • Information newsletters and publications • Training programs • Relations with unions
• Reserved formal discussions • Engagement conferences and lectures • Ruling bodies native to each country
• Roadshows • Investor day • Regular private meetings and conference calls • On site visits
• Local engagement workshops • Dissemination of information - local and regional level • Private meetings
• On site visits • Drafting of press releases • Interviews
• Getting actively involved in organizations, including WBCSD, CSR Europe, World Steel Association, EITI and the Global Compact (UNO)
• Formal meetings • Correspondence and events
• Discussions based on account management lists • Regular engagement with our local managers at each unit
• Create innovative partnerships with a view toward sustainable growth
• Vital for the success of our business by showing productivity, quality and leadership • Provide a safe and enriching work environment
• An essential factor to ensure fair and competitive trade conditions
• Increase our share capital and strengthen our financial performance
• Raise confidence in local communities
• Foster and safeguard the reputation of our products and operations and spread knowledge about them
• Enable our Company, and also understand and promote similar company practices
• Provide an understanding of society and the environment requirements
• Ensure delivery of quality and valuable products and services
• Provide quality products at completive prices
• Ensure an engaging and enriching work experience
• Generate economic growth through revenue, taxes and product innovation
• Generate sustainable growth and profits to shareholders
• Support local e economic development
• Provide Company performance data, together with social, environmental and economic information
• Widen industry knowledge among the community and foster responsible practices
• Monitor our performance in complying with our stakeholders requirements, and those of vulnerable groups in society as a whole
• Ensure equal access to business opportunities and appropriate payment conditions
In addition to tools such as meetings and events, ArcelorMittal Tubarão annually holds an Image Survey involving neighboring communities, in order to see how they perceive its presence and activities. It is a quantitative survey on a face to face basis, and it gathers information through a structured questionnaire. In 2011 it was held in the municipalities of Vitória, Vila Velha, Cariacica and Serra. Managers and experts aged from 26 and 55 who have worked for the Company for at least three years were also heard. According to the interviewees the overall Company performance in 2011 was awarded a score of 7.8 out of 10, the same as in 2010. From the three major companies that the interviewees knew, ArcelorMittal was mentioned as the best by 53.8 % (against 44.5 % in 2010). An action plan was drawn up and the goal is to work over the course of 2012 in getting employees involved in social actions, stimulating Company officers to come before the media and increasing the institutional dialog in order to gain in reputation and engagement.
Commitments and Relationships ArcelorMittal Brasil is always searching for sustainable ways to develop its business. That is why it actively participates in business and civil organizations in Brazil and abroad. Since 2001 the Company is a signatory of the Global Compact, a United Nations Organization initiative intended at mobilizing the business community in order to help spreading fundamental values related to human development. The Global Compact believes that businesses have an important role in social development and should act responsibly towards its stakeholders. The agency has set down 10 universal principles, ranging from human rights to fight against corruption. As a signatory, ArcelorMittal Brasil develops a series of actions that help create a more just and sustainable society.
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Global Compact Principles: Human Right Principles 1. Respect and support internationally acknowledged human rights in its performance area 2. Ensure non-participation of the company in human right violations Labor Right Principles 3. Support freedom of association and acknowledge the right to collective bargaining 4. Eliminate all forms of forced or compulsory work 5. Effectively eradicate all forms of child labor from its productive chain 6. Foster practices that should eliminate all kinds of job discriminations Environmental Protection Principles 7. Take a preventive, responsible and proactive approach to environmental challenges 8. Develop initiatives and practices to foster and disseminate social and environmental responsibility 9. Stimulate the development and dissemination of environmentally responsible technologies Principle against Corruption 10. Fight corruption in all its forms, including extortion and bribery
In addition to the Global Compact, since 2009 the Company is also a signatory of the National Pact for the Eradication of Slave Labor, an initiative of the Ethos Institute for Business and Social Responsibility, together with the International Labor Organization (ILO) and the Repórter Brasil NGO. The goal is to create more dignified and respectful working relationships along the productive chains through the use of tools to prevent the business sector and society from selling products or working with suppliers that use slave labor. Within the boundaries of their influence the Compact signatories undertake, among others things, to legalize working relations by fulfilling labor and social security obligations and to define trade restrictions against those companies or people that employ degrading labor conditions associated with practices that can be perceived as slavery. This attitude is extended to business partners and communities. ELIMINATE One of the Company commitments is to fight against corruption. In this sense, it was one of the first companies to sign the Corporate Compact for Integrity and Against Corruption, an initiative of the Ethos all forms of forced or Institute and the United Nations Development Programme (UNDP), together with other agencies. The compulsory objective of the Compact is to ensure an ethical relationship with the government. In order to achieve labor that, they have set down guidelines to direct the actions of the agencies. All Company units are assessed as to the risk of corruption and the business strategy is focused on preventive actions. ArcelorMittal Brasil has an channel for anonymous complaints that gives any employee a chance to actively participate in the fight against corruption or fraud. Until 2011 97% of the long carbon steel segment employees and 93% of the flat carbon steel segment employees had been trained in the organization’s anti-corruption policies and procedures. The goal for 2012 is to reach 100%.
ArcelorMittal Brasil ensures to all employees the right to freedom of association and collective bargaining, and none of its operations challenges that freedom. The Collective Bargaining Agreement and the Work Shift Agreement are approved in a general assembly freely open to all employees, and the employees’ negotiation committee permanently monitors them.
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Fight
corruption in all its forms, including extortion and bribery
Support
freedom of association and acknowledge the right to collective bargaining
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Human Rights ArcelorMittal’s Human Rights Policy applies to all Group companies and is complemented by the following documents: Code of Conduct, Anti-Corruption Policy and Environment, Health and Safety Policy. In addition, all third parties who provide services to the group must comply with the policy provisions. Launched in 2010, it expresses our respect for all human rights and focuses in the areas detected as priorities for the sector the Company operates in. By December 2011 6,751 employees had been trained in the policy.
In 2011 the Company did not receive any discrimination complaint. 21
Focus Areas of ArcelorMittal’s Human Rights Policy • Health and Safety • Freedom of association • Eliminate forced or slave labor • Abolish child labor • Eliminate discrimination in the workplace • Eliminate harassment and violence • Provide competitive wages • Maintain employment conditions • Avoid involuntary resettlement • Respect native people’s rights • Adopt safety measures • Develop land and water usage practices
In order to disseminate these principles the Company began training all employees in 2011. The initiative is a part of the Compliance Program, which seeks to ensure conformity of ArcelorMittal actions with the both external and internal laws and regulations, and it includes corporate policies adopted throughout the world. The “Human Right Policy” has become a part of the Program, together with the “Guidelines on Economic Sanctions”, which contain instructions to prevent violations of specific trade rules of the countries the ArcelorMittal Group does business in. The professionals of companies operating in Brazil were trained in this latter policy according to their jobs and on how familiar they are with the issues. Those who keep a closer relationship with the international market were subject to a more extensive training session detailing on these new corporate guidelines. A summarized version was passed through to other employees. All corporate policies adopted by the Group are available for consultation at the website www.arcelormittal.com/br.
Respect
and support internationally acknowledged human rights in its performance area
Ensure
non-participation of the company in human right violations
Sustainability Vision Transparent Governance Investing in Our Staff Making Steel More Sustainable Enriching Our Communities
World Cup Project There’s still some time before the balls start rolling around in the stadiums, but ArcelorMittal Brasil has already started preparations for the World Cup. In 2011 the Company launched a hotsite (www.arcelormittal2014.com.br) that brings together all the products provided by the Group’s Brazilian units for the championship infrastructure. The website works as a shared database to standardize work practices and provide all communication pieces so the units can advertise them among their stakeholders. The hotsite is the fruit of the work of a group made up of representatives of ArcelorMittal’s Brazilian units that work in the construction sector. Its main goal is to detect commercial opportunities and present solutions in steel developed for the 2014 World Cup and the 2016 Olympics to the market. In addition to advertising e-mail marketing campaigns, billboards and bulleting boards, the World Cup Project also included the release of a solution catalog. It is available at the website and describes the applications of about 100 steel products. The effort of the Group companies to organize integrated solutions is already yielding results: over half of all the steel used in the 2014 World Cup works (road, tourism and transportation infrastructure, and hotel and stadium projects, among others) is being manufactured by ArcelorMittal Brasil.
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Sustainability Vision Transparent Governance Investing in Our Staff
3 – Investing in Our Staff
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A New Model of Corporate Education In 2011 ArcelorMittal Brasil launched the Corporate Education model. In line with the Group’s values, policies and principles and geared at increasing and improving business results, the program consists of development tracks: the Leadership Academy, the Business Academy, the Essential Track, the Integration Program and the Internship Program. Through these employees have the opportunity to plan their own professional development together with the Company, with broad access to available training tools. This will allow them to have a more comprehensive view of what they need to move ahead in their careers. The Leadership Academy is a full skill development program for leaders put together so as to help the development of all managers in the organization, as well as to prepare new leaders. The Business College provides learning opportunities for all employees from several areas, with a focus on strategic thinking and in-depth knowledge of the business. In the Essential Track the training provided is the foundation for the employee’s growth within the organization. The actions are geared at improving the skills demanded by the Company, in addition to complementing the technical and functional development. The Integration Program main objective is to facilitate new employees and trainees to adapt to ArcelorMittal’s environment. The Internship Program, in its turn, provides upper education
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students with the opportunity to learn and develop skills essential to their performance. In 2011 the focus was on the training of new managers, considering the great challenges to be faced by professionals who started their careers as managers. “It is a program similar to the one we ran during the 1990s for developing leaders. One of this program edges is the use of internal talent to conduct the training modules. The Company is currently renewing its staff.“ ”The new managers are very critical, have a technological profile and short-term expectations, but little experience in people management,” says Ricardo Garcia, ArcelorMittal Brasil’s Vice President of Human Resources and Institutional Relations. At the end of 2011 77 new managers of various ArcelorMittal Brasil units took the first Academy module, which focused on professionals with short time in management positions. In addition to providing information related to management tools and practices, the Leadership Academy develops behavioral aspects to make People Management easier. “The leader acts as an orchestra conductor, a team facilitator: he or she has the role of highlighting values such as justice, team work and confidence,” says Ricardo Garcia. Corporate Education contributes to the assimilation of Company culture, values and skills. The proposal is to develop leaders’ strategic thinking with a broad approach to topics such as innovation and technology, ArcelorMittal’s strategic plan, and the role and challenges of the leader within the organization.
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People Management ArcelorMittal Brasil has one of the most advanced policies for Human Resources management. It offers programs to bring in, retain and develop talents, keeps remuneration and benefits on a competitive level, and makes all efforts to build healthy and motivating work environments. ArcelorMittal’s human resource principles reflect the Group’s core values - Sustainability, Quality and Leadership - and acknowledge that the Human Resources Policy must not only help develop our employees by boosting business results, but also promote the Group integration as a single global company.
Employee subgroup
TOTAL PERMANENT WORKFORCE*
Director
15
General Manager
54
General
161
Area Manager
167
Upper echelons Supervisor
2,097 483
The Company ended the year 2011 with a total of 11,848 employees in units of the flat and long carbon steel segments. In addition, it kept in its staff 754 trainees and 468 apprentices.
Medium level technician
2,315
Operator paid monthly
3,690
.
Operator paid by the hour
2,866
Total
*Source: Brazilian General Employed and Unemployed Worker Registry (CAGED), except for disability retirees.
11,848
Does not include trainees and apprentices Does not include the Wire segment
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ArcelorMittal aims at attracting, recruiting, retaining and motivating people.
In order to create a transparent and dynamic work environment, ArcelorMittal Brasil prioritizes opportunities for internal transfer of staff, personal development and mobility. Before any external recruitment is done, applications from internal staff place that meet the position requirements are given priority over external applicants. ArcelorMittal Brasil is committed to ensuring that each applicant will be treated with fairness and dignity. We support diversity, do not tolerate any profiling based on race, color, gender, age, religion, ethnic or national origin, efficiency or any other non-legal basis. All open positions are advertised on the Job Market On-line, including Director-level ones, and are given visibility through the internal communication vehicles. This is a tool for internal recruitment that displays all upper level open positions throughout the Group on an electronic media, with the exception of those whose people to fill them out have already been found. The aim is to ensure the right people are chosen by means of an objective and fair process based on their performance potential and skills.
Yellow
Director General Manager
SUBGROUP
26
Dark-skinned
Black
15 2
Manager Total
White
2
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Structure of the managerial group by age range / 2011 AVERAGE AGE
Director
54
General Manager
50
Manager
45
Structure of the managerial group by race / 2011 SUBGROUP
Sustainability Vision
Structure of the managerial group by gender / 2011 Total
SUBGROUP
15
Director
54
General Manager
Females
Males
Total
15
15
3
51
54
36
16
114
45
2
161
Manager
18
143
161
165
61
2
230
Total
21
209
230
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Inclusion ArcelorMittal Brasil’s Diversity and Inclusion Policy values the creation of an environment where each person has the opportunity to fully participate in creating success for our business, and where all employees are valued for their different skills, experiences and outlooks. For instance, the Somar Project is being carried out at ArcelorMittal Tubarão (ES) and ArcelorMittal Vega (SC). This project object is helping people with disabilities getting access to the labor market. The project includes several actions, such as a job survey and the accessibility profile of the Company; lectures on awareness directed to employees; hiring process for people with disabilities with a focus on their potential, not their limitations. In Santa Catarina, ArcelorMittal Vega, in a partnership with the Industrial Learning National Service (Senai SC), offered two courses intended for persons with disabilities in 2011: electromechanical technician and multifunctional operator. In all 40 students have enrolled, and of these nine are trainees in the Company. Since the creation of the project at ArcelorMittal Tubarão in 2007. 108 positions on courses offered along with Senai ES have already been offered, and 33 students were hired by the Company.
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Single Platform In December 2011 ArcelorMittal officially launched Intranet Brazil, a new tool to be adopted at all Brazilian units. With that employees now have access to all global and local information and all applications related to the Group in a single place. It is expected that bringing together all Intranet webpages will result in process streamlining, since the information is available to all employees in a standardized way. The effort is part of the Intranet project, which involves the integration of over 80 current internal webpages of the Group at the corporate level by segment, country and plant. The aim is to ensure an effective platform to establish uniform communications among all Company units. Besides being an information tool, the Intranet is a mechanism to help professionals by providing important services for their work routine. Company policies are part of the content, together with every day materials, documents and stationery. A major advertising campaign using posters, an introductory newsletter and totems in areas of large traffic of people was carried out in order to instruct employees in registering and using the new tool.
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Sustainability Vision
Professional Development The stimulus to professional development is a constant at ArcelorMittal Brasil. It aims at improving quality of life and strengthening professionals’ identification and commitment with Company’s activities. Each manager is responsible for developing, training and inspiring their employees by means of structured programs to help them set goals, lead feedback and coaching sessions and provide career opportunities together. In order to prepare their employees to perform their tasks and stimulate them to move ahead professionally ArcelorMittal Brasil provides courses and training sessions that address both technical and behavioral issues. An example of that is the Employee Performance Management Program (GEDP), intended for employees at higher level positions. GEDP is broken down into four main processes: performance management, talent identification, development planning
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and succession management. Among other things, the program helps people align their individual goals with the business strategy. In 2011 3,207 ArcelorMittal Brasil employees participated in the program. At ArcelorMittal Tubarão middle level employees are also assessed at least once a year according to the skills (both technical and behavioral) the Company expects from them, such as standard compliance, anomaly reporting, security policy compliance, focus on results and team work. After the preliminary grades are assigned, career committees are arranged among the direct and indirect managers to get each one’s view on the person being assessed. After the cycle closes each person assessed is given a feedback, together with their action plans. A new feature introduced in 2011 was the preparation effort for collective and shift bargaining, a behavioral effort was carried out with ArcelorMittal Tubarão’s officers,
managers and supervisors. The objectives included preparing the new managers for the proper development of interpersonal relations with their employees by using Entrepreneurial Leadership principles and minimizing labor conflicts; also, it involved helping managers develop skills to deal with conflict and discontent situations by eliminating behaviors that have a negative effect on the organizational climate. There was a total of 366 participants, including five officers, 110 managers and 251 supervisors. ArcelorMittal Brasil’s business units also provide qualification programs for their employees. Technical training courses, foreign language courses and university or specialization courses scholarships are some of the opportunities provided. In addition to that, all employees get regular performance and career development reviews.
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Average training hours / job category / gender ArcelorMittal Brasil Males Executive Board
212.00
0,00
Managerial
15,689.86
1,520.72
Upper echelons
78,728.94
21,866.34
Supervisor
37,240.36
317.00
Medium level technician
206,847.93
18,485.59
Operational
237,149.40
10,560.05
Total
575,868.49
52,749.70
Grand Total
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Females
628,618.19
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Sustainability Vision
Talents in Training In order to train future workers, ArcelorMittal Brasil maintains apprentices and trainee programs. More than attracting and retaining the best professionals, the Company seeks to train new talents by taking actions that create an ideal employee high-performance, development- and improvement-oriented environment. This orientation is reinforced by the Corporate Trainee Program, which selects candidates based on a requirement profile matching Company challenges. In addition to fostering an understanding on the meaning of ArcelorMittal capabilities, the initiative qualifies young people and provides experience on situations and concepts specific to everyday work. The company recruits undergraduates and technical course students with differentiated skills and helps to development their individual and professional potential. By means of a scheduled training the trainees become able to meet future staffing requirements. The best professionals are trained and kept in the organization. Applicant enrollment always starts between September and October, and they can enter their resumes on the website www.arcelormittal.com/br. The hiring process involves sorting the registered curricula, a psychological evaluation, interviews, dynamics and medical examinations, while the hiring takes place during January and February, according to the schedule of each ArcelorMittal unit in Brazil. In 2011, 527 trainees went through the long carbon steel segment and 227 through the flat carbon steel one. The differentiated hiring process and the monitoring of participants along the internship period are vital for the identification and development of talents. For instance, at ArcelorMittal Tubarão 25% of the current staff is made up former trainees. In 2011 alone, 24.7% of the trainees there were hired. In its turn, the Apprentice Program is geared toward young people from 16 to 18 and it also aims at providing practical experience. In 2011, a total of 468 apprentices worked at the Company, 271 of them in long carbon steel and 197 in flat carbon steel. .
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Sustainability Vision Transparent Governance Investing in Our Staff ArcelorMittal Tubarão maintains the Adolescent Apprentice Social and Educational Qualification Program (Procap). The objective is to assist in the professional training of adolescents from 15 to 18, as required by a specific legislation, by providing them with courses at Senac and Senai, and practical classes at the Company. To participate, the adolescents must be enrolled in the public school network and have a family income of up to two minimum wages. In 2011 Procap was submitted to an assessment. The school report and questionnaires filled out by 140 adolescents were evaluated. As a result, it was found that the program has been able to have a positive impact on its direct beneficiaries both as to grades and school attendance and behavior.
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Union Shop Following the Group’s global policy, ArcelorMittal Brasil acknowledges unions as entities that have a helpful role for the organization. It also respects the principle of freedom of association of its employees. All ArcelorMittal Brasil’s employees have protected by Collective Bargaining Agreements negotiated with unions that represent the different professions. The relationship with the unions is strengthened through regular meetings, and any significant operational changes are notified and discussed. Based on these meetings, action plans are set down to mitigate issues identified, if necessary.
Procap Results The survey carried out in 2011 involving 353 graduates from the Program (2005, 2006, 2007 and 2008 classes) showed that: • 56.4% were in school • Of those who were not, 44% were in the labor market • Half of them had already obtained some professional experience after the program
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Sustainability Vision Transparent Governance Investing in Our Staff Making Steel More Sustainable Enriching Our Communities
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Summary
Benefits to Employees Wage Policy ArcelorMittal Brasil’s labor practices are edges in terms of competitiveness, attraction and retention of talents for the Company. They reinforce the commitment with employees’ satisfaction and performance. The company offers a number of benefits to employees and their families, including medical assistance, basic medicines at discount prices or for free, and a pension plan, among others. ArcelorMittal Brasil’s program also includes a group life insurance for all employees.
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• Health Plan The commitment to its employees goes beyond economic and financial results to include respect of and appreciation for people, involving attitudes that put quality of life to the front. The company invests in actions preventing occupational diseases, thus ensuring the human growth, safety and wellbeing of its employees and their dependents. Medical care is done preferably by ArcelorMittal Abeb, which has its own network of doctors and healthcare experts in several areas, together with agreements with outside health providers and also with accredited hospitals. In places where ArcelorMittal Abeb does not operate, healthcare is provided by private health care plans. • Pension Plan ArcelorMittal Brasil offers pension plans to its employees, which ensure a benefit that can be collected as monthly income or as a single payment. It operates through a system of shared participation where the Company pays
a percentage of the capital invested by the employee and the bank can also reinvest the amount in mixed variable income funds consisting of fixed income and investment funds and the stock exchange (if the employee should choose this option). • Group Life Insurance The Company offers to its employees a group life insurance coverage in order to ensure they feel safe when performing their jobs and also security for the families. The insurance includes a broad coverage at low cost, and it is in tune to the Company Health and Safety Policy requirements. • Medication Program Employees can also enjoy access to safe medications through the Medication Benefit Program. The system provides progressive discounts on brand name and quality generic medications, online pharmaceutical assistance and agreements with the best pharmaceutical laboratories. Thanks to this endeavor, the Company offers savings and safety to its employees and their dependents.
Sustainability Vision The remuneration policy is structured around the Total Remuneration concept, which considers the fixed wages, variable remunerations and benefits. To assign wages the Company adopts a competitive policy aligned to its reference market, aiming at attracting and retaining talents. The Profit and Result Sharing Plan (PLR) model is among the most modern and competitive in the market, because it is based on business goals and individual employees’ goals, and its average target is the payment of 3.5 wages per year. Other benefits are also offered employees and their dependents, such as food and medical care.
In 2011 the lowest salary in the Company amounted to 1.9 minimum wages.
Transparent Governance
ENCOURAGE
practices that eliminate any kind of discrimination at the work place
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% distribution of total expenditures with basic compensation between the male and female public BASIC SALARY ANALYSIS
Total
Female %
Basic compensation % of the female versus male category
91
9
100
100
0
100
Managerial
96
4
100
-2
Upper echelons
81
19
100
-11
Technical level
96
4
100
-26
Medium
69
31
100
17
100
0
100
-33
97
3
100
-10
Executive Board
Supervision Operator
33
Male %
Total expenditures with basic compensation
8 There are no women working and Directors
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Health and Safety Health and Safety are fundamental and intrinsic ArcelorMittal values. For this reason, the Company has facilities that guarantee the physical and mental integrity of employees, encouraging them to think and take attitudes that prevent accidents and health hazards. The priority is to maintain the health of employees by getting them involved in the goal of zero accidents and injuries.
That goal gave rise to the Journey to Zero project, which seeks to involve and engage employees form all units of the Company. It includes projects and actions developed throughout the year that seek to involve employees and draw their attention to the importance of safe attitudes in the workplace. Other initiatives related to this theme are the Global Health and Safety Day celebrated by the Group units since 2007. This celebration brings together employees from all hierarchical levels to get them involved with and committed to health and safety; and the Health Week, which includes several initiatives around that issue.
In 2011 ArcelorMittal Brasil did not record a single fatality. We had a total of 34 lost time accidents in the whole group (including the units located in Argentina and Costa Rica). It is worth noting that the Company has an action plan to deal with events such as these, which includes from a brief statement in the first few hours after the event down to a detailed analysis sent to the Group Management Board (GMB), the major ArcelorMittal Group decision-making body.
Occupational Health and Safety Indicators for 2011 (per segment)
No fatality was recorded in 2011.
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Indicator
FLAT Carbon
LONG Carbon
Injury rate (TL)*
0.02
0.21
Lost day rate (TDP)**
5.56
9.92
Absenteeism rate (TA)***
2.13
3.99
*TL = Total injuries x 200,000 /Total worked hours *TDP = Total lost days x 200,000 /Total worked hours ***TA = hours lost/possible work hours x 100 (the wire segment is not included in the absenteeism calculation)
Sustainability Vision The company meets the Occupational Health and Safety Assessment Series (OHSAS) criteria, a certification that deals with occupational health and safety. All ArcelorMittal Brasil units are certified and have management systems that monitor the metrics related to that topic. Activities are systematically carried out in order to strengthen the prevention culture. These include training sessions, workshops, daily safety talks and monthly meetings of the Internal Committee for the Prevention of Accidents (Cipa). Cipas, which represent 100% of the employees, are important allies in the dissemination of safety standards, in early risk awareness and in suggesting corrective measures. The plants also have Health and Safety (H&S) Committees that seek to increase workers’ involvement in improving their working environment and stimulating management to take action on critical issues, thus reducing the number of accidents and incidents. The H&S Committee includes representatives of workers and management, and at least 50% of its members are workers. The meetings are held on monthly basis and the decisions and results are made available to all employees. Formal agreements with unions cover topics such as personal and collective protection equipment, training and education, right of refusal for jobs involving a high risk of accident or injury, joint health and safety committees made up of managers and workers, periodical inspections and participation of workers’ representatives at health and safety inspections, and auditing and investigation of accidents. In addition, there is an international agreement between the ArcelorMittal Group and the major trade unions of the world to ensure the existence of a committee involving employees and the Company and fight for the interests of both sides (employees and employers). In the case of Brazil, Cipa represents this committee.
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The units also develop programs of their own, with the aim of making their employees aware of the importance of adopting safe behaviors and attitudes. At ArcelorMittal Tubarão, for example, the Situational Risk Training encourages this thinking by having employees experience risk situations through scenarios and dynamics. By means of the coming back home safely game developed by the global health and safety corporate department with the support of the ArcelorMittal University, the employees identify risks and put these safe behaviors into practice. In 2011, 1,325 employees (111 classes) were trained, including supervisors, technicians, operators, administrative assistants, secretaries and specialists from ArcelorMittal Tubarão and contractors. The training will continued in 2012.
World Benchmark in Health and Safety In 2011 Serra Azul Mine in Itatiaiuçu (MG) managed a unique achievement in the Group: it was awarded four stars in an IRCA (International Register of Certificated Auditors) audit, the agency responsible for safety standard certification for Group companies. Thanks to that, it became a world benchmark in Health and Safety procedures. This achievement is the result of a continuous effort. When it was absorbed by ArcelorMittal in 2008, the unit reformatted its health and safety management procedures, and since then there were no accidents recorded in its facilities. The procedures introduced in the work routine include training in the OHSAS 18001 standards, weekly and monthly meetings and consolidation of processes. Andrade Mine, located in the municipality of Bela Vista de Minas, in the Vale do Aço region, also achieved good results. In addition to raising its score from 1 for 3 in the IRCA audits, it celebrated in 2011 19 years without any lost time accidents. This milestone shows the effectiveness of the awareness-raising work carried out among local employees, which puts the culture of safety forward as a priority.
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Sustainability Vision Transparent Governance
Decrease in Accidents
Investing in Our Staff
After a trend towards growth in the number of accidents among its contractors was detected in 2010, ArcelorMittal Tubarão decided to reassess its Health and Safety Management System. It was noticed that the health and safety management principles and tools were already well defined, but they were not applied in their entirety and full efficacy. On that basis, they mapped out an action plan based on three principles: Leadership, Education and Audits. Specific activities were planned and implemented in 2011 for each principle. This resulted in a decrease in accidents/fatalities among contractors.
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Leadership
Education
Audits
Supervisors’ competence reassessment; the presence of the manager in the field (contractors’ RDS, safety approaches and inspections); weekly management meetings together with contractors’ supervisors and managers; effective deployment of actions resulting from audits.
Dissemination of the golden rules; training on situational risks; induction program for new employees based on risk awareness and control practices provided by an expert company; safety awareness video for visitors; dissemination of lessons learned from accidents on the Intranet; implementation of Sipat with interactive games and simulations.
Safety inspections and approaches with the participation of the CEO, COO, managers, supervisors, and employees’ representatives; safety audit on the field with checklists; workshop inspection; review of work environment hazards and risks involving experienced former employees; audit of the application of the health and safety tools at contractors.
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Health Promotion ArcelorMittal Brasil offers its employees programs for education, counseling, disease prevention, risk control and treatment of severe illnesses, and these are directed also to retirees. It also carries out actions focused around issues that affect the health of its employees, such as vaccination campaigns. In 2011 3,453 employees from ArcelorMittal Tubarão were immunized against H1N1 and 445 against diphtheria and tetanus. This way, 95% of the unit permanent workers are up to date with their vaccination schedule. ArcelorMittal Tubarão also carries out an effort to help preventing dengue fever, in a partnership with the Serra Health Department health surveillance team. The goal is to fight possible outbreaks of the Aedes aegypti mosquito, the vector of the disease, within Company premises. This is done through early detection and laboratory analysis of infested areas, and establishing measures to clean infested areas found and preventing new ones from appearing, in addition to awareness-raising activities. The result is that in 2011 no infestations of the mosquito were detected at the Tubarão unit. The flat and long carbon steel segments also carried out a survey to map up the employee’s health profile through metrics monitoring (for instance, glucose levels, blood pressure, weight gain and smoking) and drafting
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of action plans for correcting, preventing or eliminating the risks. In 2011, for example, the result of Tubarão’s general health metric showed 85.9% of the employees at zero risk level. For 2012 the goal is to reach 89% of employees in this situation. As a way to ensure the well-being, health and safety of its employees and contractors, ArcelorMittal Tubarão also carries out an effort based on a holistic view of health, i.e. an integral understanding of the aspects that can affect the health of employees. So as to care for the body, mind, family and work, it provides varied services, such as a permanent environmental and ergonomic risk control; control of personal risks connected with quality of life together with an assessment and continuous improvement of each employee’s Health Profile. The unit also provides Quality of Life Programs; differentiated healthcare to family members, retirees and pensioners; and other benefits. A continuous search for improving all these factors allows the Company to achieve an increasingly healthy work environment. This has a direct impact in improving the quality of life of the employees. All business units of the Company participate in the Zero Tobacco program, which invests in continuous actions for the gradual elimination of smoking among employees and contractors. ArcelorMittal Tubarão is a benchmark in this area: since 2010 the Company is considered Zero Tobacco, that is, no one can smoke in its premises. This success culminated in the nomination of the case to the
2011 Performance Excellence Awards (PEA) given by the ArcelorMittal Group, where it was one of four global finalists. In the long carbon steel segment ArcelorMittal Piracicaba and ArcelorMittal Cariacica also achieved this goal. Some campaigns arranged by the Company also involve the community. In Espírito Santo State a partnership between ArcelorMittal Tubarão and the State Center for Hemotherapy and Hematology (Hemoes) seeks to encourage Espírito Santos people to participate in the National Registry of Bone Marrow Donors for Transplants, the largest registry in Brazil, which is managed by the National Cancer Institute (Inca). In October 2011 the annual campaign to bring in blood donors from the Company was held. 89 new candidates to bone marrow donation were found, together with 91 blood donations.
There are several global health, safety and occupational hygiene corporate standards, together with health and safety management corporate guidelines and good practices, among others, from units from several countries available at ArcelorMittal’s Intranet. The health and safety efforts intend at having a proactive effect in the identification of risks and hazards and at organizing actions for managing and monitoring these scenarios.
Sustainability Vision Transparent Governance
Body in Harmony Quality of life, both inside and outside the Company. This is the proposal of the Harmony Program - an initiative developed at ArcelorMittal Juiz de Fora. With activities focused on employees and their families, the Program comprises a series of actions around physical, social and environmental aspects. It was created in 1984, gained impetus in 2005, and today shows positive results. Among the actions endeavored we can mention individual monitoring and counseling based on lifestyles and the results of periodic exams. The figures produce a quality of life index (IQV) and, based on that, employees are counseled on how to improve their health. The program also includes antismoking activities, counseling on the misuse of alcohol and other drugs, dietary re-education and among other actions. Family members are not left out. Teenager children of employees, for example, may participate in lectures and activities whose topics vary according to age. For 2012 the goal is to launch the Zero Smoke campaign to reduce the number of smokers at the plant, which, in 2011, amounted to 7% of the employees. The expectation is that, by 2013, the Juiz de Fora unit will be free of tobacco.
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Health Fostering Program
Summary
PROGRAMS
FACTORS
Antismoking
Tobacco
Ergonomics
Ergonomic risk
STD (Sexually Transmitted Diseases) and AIDS
Multiple factors
Substance dependence
Drugs
Metabolic risk
Improper nourishment
Health profile
Multiple factors
GPH - Hypertension Prevention Group
Multiple factors
Lifelong education
Multiple factors
Sedentary lifestyle
Lack of activity
Over thirty*
Lifestyle
Stress
Attitude
Biophysical control program - managers*
Sedentary lifestyle
Dishes**
Dietary re-education
Health management for leaders
Lifestyle
Special medical follow up group (game)
Multiple factors
7 risk game
Multiple factors
Quality of life course
Improper nourishment
Follow up of people on sick leave
Multiple factors
Awareness
Lifestyle
Nourishment, movement and attitude
Lifestyle
Full Support to Adolescent Program (Paia)
Multiple factors
Getting Ready for Retirement Preparing employees for this stage in their professional life is among the Company concerns. That is why it encourages and invests in programs such as the one developed at ArcelorMittal Tubarão and ArcelorMittal Piracicaba, which seek to provide information on legislation, health and aging, thus minimizing possible negative reactions. For 2012 the forecast is that the whole group will have a program such as this one, intended to professionals that should retire within the next years. It will include seven modules: Transition process; Time and Knowledge Management; Health / Quality of Life Management; Finance Management; Family and Social Relationships; SelfKnowledge: Interests, Skills; and PostRetirement Life Strategic Planning. Scheduled duration is two years.
* Only in the flat carbon steel segment ** Only in the long carbon steel segment
Making Steel
More Sustainable
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Sustainability Vision Transparent Governance Investing in Our Staff
4 – Making Steel More Sustainable
Making Steel More Sustainable Enriching Our Communities
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Pioneering and Guarantee of a Lower Environmental Impact In 2011, ArcelorMittal Aços Longos (Long carbon steel) became the first steel producer in Brazil to be awarded the Brazilian Association of Technical Standards (ABNT) Eco-label. The certification, granted by an independent and impartial agency, is a testimony to the environmental performance of our products. It is also an important mechanism for the implementation of environmental policies directed to consumers, helping them choose environmentally correct products that meet civil construction requirements. The ABNT’s Eco-label is an assurance that the ArcelorMittal’s products and services have a lower environmental impact than non-certified similar products. “It is a voluntary commitment to continuous improvement of products and processes, which points out our environmental performance and our commitment to conserve resources and reduce waste to the market,” explains José Otávio Andrade Franco, ArcelorMittal Aços Longos (Long carbon steel) Environment Manager. The process to obtain the ecolabel began with the Board’s decision on the way to manage the certification by creating
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a general coordination and assigning responsibilities for each industrial unit involved. Then they run an analysis of the organization registration documentation and environmental permits. Later on, some teams made technical visits to the units and their suppliers to map up evidences of product compliance, life cycle analysis and environmental impacts throughout all production stages. Any non-conformities were followed up with action plans.
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Summary
Pioneirismo e Garantia de Menor Impacto Ambiental Em 2011, a ArcelorMittal Aços Longos tornou-se a primeira empresa produtora de aço do Brasil a conquistar o Rótulo Ecológico da Associação Brasileira de Normas Técnicas (ABNT). A certificação, concedida por uma entidade independente e imparcial, atesta o desempenho ambiental dos produtos. É também um importante mecanismo de implantação de políticas ambientais dirigido aos consumidores, auxiliando-os na escolha de produtos most widely used are of the Leadership in Energy ABNT’s Eco-label was awarded after audits and ambientalmente corretos e que atendam and Environmental Design (LEED) type, which guide technical analysis at the Juiz de Fora, Piracicaba, às necessidades da construção civil. the construction of a building and testify to its Cariacica, Itaúna, Monlevade and São Paulo units. Ecológicowith ABNT uma garantia de que os produtos e compliance theé principles of sustainability for The products were assessed based on their technicalO Rótulo daconstruction, ArcelorMittalbefore, possuem menor ambiental civil during andimpacto after the works. do performance, suitability to relevant standards and serviços similarEco-label não certificado. “É um in compromisso ABNT’s is considered the process voluntário of legislation, ISO 9001 and 14001 certifications and que seu de melhoria contínua dos produtos e processos, que destaca obtaining the LEED certificate. risk-prevention programs adopted. With annual audits scheduled to confirm compliance to the set criteria, para the o mercado nosso desempenho ambiental e o nosso The awarding of the ecolabel the em preservar recursosdemonstrates e reduzir desperdícios”, certificate covers wire rods, welded screens, lattices,compromisso spirit of theFranco, Company and increases José Otávio Andrade Gerente de Meio Ambiente nails, wires for mooring, light shapes, and rolled barsexplica for pioneering its brand credibility. In addition to demonstrating da ArcelorMittal Aços Longos. civil construction. responsibility toward its products, it proves the A obtenção da rotulagem teve início and comconsumers a decisão reliability demandedecológica by both the market The use of materials having an environmental da Diretoria sobre a forma de gerenciamento da certificação, increasingly aware of their responsibility for the future certificate is vital in green building projects, which criandoofuma coordenação geral e atribuindo responsabilidades are distinguished by high ecoefficiency and low the planet. para cada unidade industrial envolvida. Em seguida, foi feita environmental impact. Currently, the certifications
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uma análise da documentação cadastral da organização e das licenças ambientais. Posteriormente, equipes efetuaram visitas técnicas às unidades e aos fornecedores para mapear as evidências das conformidades do produto, da análise de ciclo de vida e os impactos ambientais em todas as etapas produtivas. As eventuais não-conformidades foram acompanhadas por meio de planos The first step to environmental efficiency is de ação. industrial efficiency. That is why ArcelorMittal in solutions focused on a após singleauditorias e O Rótuloinvests Ecológico ABNT foi concedido and integrated management that it análises técnicas nas unidades de Juiz demakes Fora, Piracicaba, easier to control and reduce environmental Cariacica, Itaúna e São Paulo. Os produtos foram avaliados impacts correcting potential or com base em seubydesempenho técnico,risk adequação às imbalance situations and helping in preventing normas e às legislações pertinentes. Com previsão de unnecessary of o inputs during aos critérios auditorias anuais paraspending confirmar atendimento production. Currently the Company uses twotelas estabelecidos, o certificado contempla vergalhões, tools: SAP EC (Environmental Compliance) soldadas, treliças, pregos, arames para amarração, perfis and eSAP EH&S - Environment (Waste and leves e fios barras laminadas para uso Coproducts Management). Its adoption na construção civil. improved environmental management and increased synergy among the several business areas. Among environmental gains standardization of management practices and the minimizing of environmental risks in productive units stand out.
Environmental Management ArcelorMittal considers sustainability to be a strategic value, which should be disseminated along the several business and operational levels. The Company’s commitment goes beyond meeting economic and financial requirements and takes into account the needs of the people it invests in and the communities it operates in. So, all its strategic planning includes a search for balance between the economic, social and environmental spheres when conducting its business.
Sustainability Vision
In 2011, ArcelorMittal Brasil industrial units’ environmental investment reached $ 82.2 million BRL, which shows a constant caring for the area, despite the challenging scenario for the sector. In ArcelorMittal Tubarão, $37.26 million BRL were alloted to the environmental area, and about $ 18.4 million BRL were invested in the adoption of cleaner technologies. The values adopted in environmental management (training, awareness, certifications, environmental programs, research and development) increased 34% against 2010.
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Summary
Evolution of Environmental investments (in million US$) 81.5 63.7
Environmental investments by kind in 2011 KIND
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Amount (in milion BRL)
Waste management Treatment and disposal of waste, treatment of emissions, cost of purchasing and using emission certificates
40.1
Environmental prevention and management Extra expenses to install cleaner technologies (e.g.: additional cost beyond that of standard technologies)
36.5
Environmental protection Education and training, external environmental management services, external management system certification, staff for general environmental management activities, research and development + Expenditures with external Environmental Programs and Projects
5.6
Total
82.2
82.2
2009
2010
2011
One of year highlights was the restructuring of the ArcelorMittal Brasil’s forestry sector, which is responsible for the production of solid renewable bio-reducer (charcoal), which until then had supplied the long and stainless steel plants in the country. ArcelorMittal BioEnergia was broken down into two companies: one linked to the long carbon steel sector, called ArcelorMittal BioFlorestas; and the other connected to Aperam South America (former ArcelorMittal Inox Brasil), which was called Aperam BioEnergia. In 2011, their production reached 1.4 million cubic meters of charcoal, and they are expected to reach 1.5 million in 2012.
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Summary
According to ArcelorMittal’s Environmental Policy, excellence, embedded into all its activities, is fostered based on the following principles: 1) The deployment of the environmental management systems, including the ISO 14001 certification in all production units. 2) Compliance with all relevant environmental laws and regulations and other environmental requirements adopted by the Company. 3) Continuous improvement in environmental performance, making use of systematic monitoring and aiming at preventing pollution. 4) Development, improvement and implementation of methods for low environmental impact production, making use of locally-available raw materials. 5) Development and manufacture of environmentally correct products. 6) Efficient use of natural resources, energy and the soil. 7) Management and reduction of CO2 emissions at the plants, wherever it is technically and economically feasible.
Materials
8) Commitment and responsibility of employees to environmental performance.
ArcelorMittal Brasil has a commitment to streamline consumption of materials in its production processes and maximizing recycling, internal reuse and marketing. In 2011 the Company consumed a total of 23.17 million tons of materials, including coal, ores, pellets and flux, as details in the following table.
9) Making suppliers and contractors aware of the plants’ environmental policy. 10) Encourage communication and open dialog with all stakeholders. 43
Sustainability Vision
Consumption of materials by type (t)
Transparent Governance
Total volume
Investing in Our Staff
Coal
2,031,820
Making Steel More Sustainable
Pellets
3,859,643
Enriching Our Communities
Coke (including external supply + small coke purchased)
2,720,843
Anthracite
2,394,941
Major raw materials and inputs
Ferroalloy and other materials (Aluminum, Iron-chromium (Fe,Cr), Ferromanganese (Fe, Mn, C), Ferrosilicon (Fe, Si)) Limestone (CaCO3) / Dolomite (CaCO .MgCO , gross) / Dolomite (CaO.MgO , ash) Limestone (calcitic + dolomitic)
375,914
Metal scrap (external)
1,942,369
Metal scrap (internal)
447,107
Coal for PCI
763,709
Scale
65,514
Hydrochloric acid
32,716
2,404
Antifoaming
3
Lead Copper
166,423 59,167 520 43
EAF electrode
3,051
Coque breeze
25,218
Corrosion inhibitor
12
Heavy oil
617
Soap
802
Caustic soda
509
Zinc Grand Total
Evolution in Material Consumption (in million tons) 23.1 18.2
20.2
13
Sulfuric acid
Charcoal for PCI
Summary
1,500,022
6,706,247
Charcoal
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62,645
Iron ore
Chromic acid
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2011
21,095 23,178,823
2009
2010
2011
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Summary
In keeping with its environmental policy, the Company seeks to continuously reuse and recycle materials. In 2011 a total of 2.2 million tons of materials used by
the Group units came from recycling. In ArcelorMittal Tubarão alone about 74 billion tons of co-products from external industrial sources were consumed, which
amounts to 0.4% of total materials used in 2011.
Total recycled materials used by ArcelorMittal Long carbon steel and ArcelorMittal Tubarão* :
Materials used from recycling (t)
Purchased scrap steel (domestic or imported)
Evolution in the Consumption of Recycled Materials (in million tons)
2.6
Scale (purchased) Steel scrap: internal recycling Total
* ArcelorMittal Vega does not use recycled materials in its production process.
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2.2
Total** 1,942,369 2009
Blast furnace dust (purchased)
2.7
145,425 24,531 132,292 2,244,617 9.7%
** of the total materials used.
2010
2011
Sustainability Vision
Emissions ArcelorMittal Brasil’s Environmental Policy includes management and reduction of of CO2 emissions where technically and economically feasible. The Company carries out Clean Development Mechanism (CDM) programs aligned with the Kyoto Protocol recommendations. An example if that is the sale of carbon credits. In 2011 ArcelorMittal Tubarão received the approval of the United Nations Framework Convention on Climate Change (UNFCCC) for the sale of carbon credits relating to the second lot of the project for electricity cogeneration through the reuse of steel mill flue gas. The European bank Kreditanstalf fuer Wiederaufbau (KfW) acquired credits from about 140 thousand tons of CO2 from the reduction in greenhouse gas (GHG) emissions in the period from 2007 to 2009, amounting to $ 3.34 million BRL.
NOx, SOx and other air emissions (tons)
NOx
Transparent Governance All units controlled and monitored stationary source atmospheric emissions through periodic measurements carried out by expert companies. In addition, levels of dust (total airborne particles), nitrogen oxide and sulfur oxide are assessed to ensure air quality. ArcelorMittal Brasil units also monitor CFC (chlorine-fluorine-carbon) emissions, considered one of the major threats to the ozone layer. ArcelorMittal Tubarão recorded 954.16 tons of CFC-11 equivalent. There are no emissions of CFC-11 at ArcelorMittal Long carbon steel and ArcelorMittal Vega.
Total
Direct emissions of greenhouse gases (tons)
Physical-chemical processin
Volatile organic compounds (VOC)
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Summary
Total 12,634,352 85,038 621,281
230.00
Total emissions (direct and indirect) 17.43
Hazardous air pollutants (PAH)
0.66
Persistent organic pollutants (POPS)
0.00
Particulate material (PM)
Enriching Our Communities
13,737.61
Indirect emissions Fugitive emissions
Making Steel More Sustainable
4,895.03
Generation of electricity, heat or steam SOx
Investing in Our Staff
2,476.62
13,340,671
Sustainability Vision Transparent Governance Investing in Our Staff
The Company has several projects and initiatives to reduce emissions of greenhouse gases. The Group Companies are involved, for example, in the ULCOS (Ultra Low CO2 Steelmaking) Project - a research conducted by the World Steel Association (WSA) to develop new technologies for producing steel with low greenhouse gas emissions. Actions that stood out in 2011 include:
Making Steel More Sustainable Enriching Our Communities
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• Renewable Bio-reducer Production Unit.
ArcelorMittal Aços Longos (Long carbon steel)
• Charcoal Fines Injection in the Coke Blast Furnace.
• Deployment of specific plans to develop possible projects for CO2 reduction in the Pig Iron and Steel areas.
• Use of Blast Furnace Gas in the Dowel Reheating Furnace.
• Project for implementing the use of natural gas in the Blast Furnace areas (ongoing).
• Use of Renewable Bio-reducer in Juiz de Fora Blast Furnaces.
• Deployment of programs and the use of more energy-efficient technologies in the production processes and cogeneration of energy.
• Forestry Producer Program: rational use of nitrogen fertilizers, appropriate use of machinery and equipment for soil preparation and research/ development of more dense species. Energy cogeneration projects. • Replacement of the oil boiler by gas boilers. • Use of natural gas in the pig iron production process, use of lubricating vegetable oil for pig iron production, injection of charcoal fines in the blast furnace in place of coal fines.
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ArcelorMittal Aços Planos (Flat carbon steel)
• Increase in the sustainable use of fuels from renewable sources. • Streamlining of natural resource consumption through recirculation and reuse of water in the process. • Use of co-products as inputs for other industries. • Maximization of internal steel recycling.
Sustainability Vision Transparent Governance Investing in Our Staff Making Steel More Sustainable Enriching Our Communities In 2011 ArcelorMittal Aços Longos (Long carbon steel) began an effort of Environmental Audit of Environmental Monitoring and Control Systems (air emissions) involving multidisciplinary teams (engineering, environment, supplies, utilities, internal audit). The objectives of this audit included an assessment of the environmental monitoring and control process at the plants; providing a technical diagnosis of legal compliance and environmental performance; and
identifying environmental issues and their potential polluters and risks; fostering the use of clean technologies and raw materials less aggressive to the environment; checking the qualification of those responsible for operating and maintaining the systems, routines, equipment and facilities involving environmental interaction and risks in order to prevent, protect and restore the environment.
In 2011 ArcelorMittal launched the S-in motion for its main clients from the automotive sector. This innovative concept, the result of two years of research in automobile development centers in the US, Canada and France, creates a new category of steel products applied to car bodies, allowing for a 19% decrease in vehicle structural components. This can amount to a 15% drop in emissions during vehicle manufacture and 13.5% more when it is running. This means a 6.2 g/km decrease in emissions. Expectations are that these lighter, safer and more environmentally sustainable vehicles should be presented to the Brazilian automotive industry in 2012. The initiative was deployed at ArcelorMittal Tubarão.
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ENCOURAGE
the development and issemination of environmently responsible technologies
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Sustainability Vision Transparent Governance Investing in Our Staff Making Steel More Sustainable
Water Resources Water management at the Company is a strategic priority and the goal is to minimize the volume of water collection. In order to do that the Group units have invested in projects for treatment of sanitary sewers so these effluents can be reused in the industrial process; rainwater collection to use in machinery and equipment cooling systems; and campaigns on the rational use of water for their employees and service providers.
Enriching Our Communities
An example of this commitment is the high recirculation rate of fresh water displayed by ArcelorMittal Tubarão: in 2011, it reached 97.5%. For 2012 the unit has set as an environmental target a specific consumption of fresh water in 4.5 m³/tonne of crude steel, pending a favorable global economic scenario without drops in steel production. The strategy to achieve that is to maximize internal use and recirculation.
Total water consumption by source
Sea water Fresh water Ground water
TOTAL (in thousand m3)
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Evolution in Water Consumption (in million m3) 442.6
396,942.00
428.1
29,044.00
419.9
940 2009
Municipal water supply or supply from other supply companies Total
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1,251.00 428,177.00
2010
2011
All the water consumed at ArcelorMittal Vega is supplied by the Municipal Water and Sewage System of São Francisco do Sul (Casan), collected from a tributary of the Saí Mirinzinho river, located on the continental side of the municipality of São Francisco do Sul (SC). This water source was selected by Casan to supply ArcelorMittal Vega
Recycled and reused water (in thousand m3)
Total of recycled/re-used water Loss replacement
because it is not being used for public consumption by any municipality in the region. ArcelorMittal Tubarão, in its turn, does not use groundwater in its operational units, neither does it receive liquid effluents from other organizations. As for seawater, the input amount is almost equal to the output.
Total
Units: Cariacica, João Monlevade, Juiz de For a, Piracicaba, Vega and Tubarão There are no water sources significantly affected by ArcelorMittal Brasil’s production activities. It must be pointed out that
all grants are based on the water body support capacity (streams or ground water).
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Summary
Effluents All industrial and sanitary effluents from ArcelorMittal Brasil’s activities are treated according to their characteristics. The treatment plants (that can be on the unit itself or in specialized companies) ensure the quality of water that will be returned to the rivers and streams. The concern with the appropriate treatment and the decrease in discarded amounts are among ArcelorMittal Brasil’s targets. All units carry out a close monitoring of the quality parameters and, in case of deviations, corrective measures are implemented at once. In the period under discussion the discharged effluent quality parameters at all units were within the legallyallowed thresholds (according to Conama 430 resolution) and the reports were periodically forwarded to the competent State body. Currently ArcelorMittal long carbon steel production units are considered a benchmark in the management of water resources. There, the mass of
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Transparent Governance
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495,414.00 29,878.00
Sustainability Vision
liquid effluents discarded is connected mainly to rainwater and the water from sanitary usage, which is normally intended for the utility companies of the towns these units are located in. Wireworks still register disposal of liquid effluents, but they are being renovated through the increase in their recirculation rate - at BBA Contagem, this rate reached 98% - for instance, through new ways of collecting water, like rain water, which is collected to refill the system. ArcelorMittal Vega’s industrial process generates liquid effluents that require treatment before being sent back to the sea. The Company has a modern treatment station to do that. The effluents generated in the industrial process, as well as sanitary sewage, receive specific care, depending on their characteristics. They undergo a physical-chemical and biological treatment process, as well as disinfection by ultraviolet light. Everything is monitored so as to ensure that the effluents fully meet the current environmental legislation.
Sustainability Vision
Waste At ArcelorMittal Cariacica the water consumption is one of the major control items. In 2011, an improvement project was developed in order to identify opportunities for reducing industrial water consumption. Effluents from the plant were collected and submitted to a physical-chemical analysis in order to check the possibility of reusing them, and, if so, in which of the steelwork processes. The results indicated the need for physical treatment (decanting and filtering) so these effluents could be used in industrial water systems. Therefore, a mini treatment station was built in the steelworks, including sedimentation bays, pumping and filtration. The next step is replicating the project for the Rolling sector. After it is completed and fully operational, the expectation is that the project will generate a decrease in water consumption of about 156 billion m³ per year.
ArcelorMittal Brasil is a benchmark in the steel sector for its waste and co-product management, which is characterized by continuous improvement and investment in research. The annual production, amounting to 10 million tons of steel, generates 3.7 million tons of waste and co-products. The reuse of this waste is over 95%, well above the 80% industry average. In 2011 this reuse generated $ 142.37 million BRL in total revenue.
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Waste generation in ArcelorMittal Brasil (tons)
NOT HAZARDOUS WASTE Reuse (does not change the properties for use in another process)
HAZARDOUS WASTE
868,365.35
23,428.24
3,551,062.29
61,462.60
Coprocessing
2,930.05
771.19
Incineration (or use as fuel)
1,933.84
197.55
Sanitary landfill
5,491.38
45.57
Storage on site
40,894.39
18,297.00
Industrial landfill
14,779.46
27,448.05
4,485,456.75
131,650.20
Recycling (changes the properties and its use as a product)
Total
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ArcelorMittal Long carbon steel obtained $ 32.9 million net revenue with the sale of co-products. The industrial units in the long carbon steel sector averaged 89% in waste and co-product utilization. ArcelorMittal Tubarão, in its turn, had revenues of $ 109.47 million BRL from the sale of gas, electricity and co-products. Of this total $ 61.2 million BRL correspond to the sale of 2.47 million tons of co-products. ArcelorMittal Tubarão averaged 99.2% in waste and co-product recovery.
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At ArcelorMittal Vega, all waste is treated by specialized companies. The disposal methods are chosen according to the classification of the waste, the technology employed and the cost. The Company conducts periodic on site inspections on the providers of these services to check compliance with legislation and the environmental permit restrictions. It should be pointed out that the Company is working to significantly reduce the shipment of waste to landfills. Scrap metal, for example, a major waste generated in production, is fully recycled. The same occurs with zinc mud from the galvanizing process, which is sent back to the zinc ingot supplier. The iron oxide produced in the Acid Regeneration Plant is marketed as a raw material for the magnet industry. ArcelorMittal Vega averaged 99.5% in waste and co-product recovery. ArcelorMittal Tubarão is an ArcelorMittal Group benchmark in waste and co-product management worldwide. In 2011 the reuse rate was 99.2%. Of this total, 18.45% went to recycling/reuse and 77% were sold. Other 3.8% were processed and stored
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in processing plants and made available for recycling/reuse or sale. For the correct application of its co-products, the Company invests in improving its processes, in research and projects in universities, industries and agencies such as ABNT and DNIT. Currently, it has been carrying out an effort together with the Federal University of Ouro Preto (UFOP/ MG) to develop researches focused on LD (Linz-Donawitz) slag. Through the UFOP partnership they carry out researches on several solutions: treatment and reuse of track ballast waste; normalization for application as base and sub-base course in asphalt roadways; paving of local roads with a mixture of clay and slag, which helps improving rolling stock performance. Ways to reuse KR slag (ladle desulphurizing, Kambara Reactor) from the desulphurizing of pig iron on a larger scale also studied.
In 2011 the material reuse rate at ArcelorMittal Tubarão was 99.2%.
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Sustainability Vision The Company also monitors disposal of its hazardous waste: material contaminated with oil and grease, fluorescent lamps, batteries, oils and fluids, among others. This waste is disposed of in environmentally licensed sites in Brazil, considering that ArcelorMittal does not import or export solid hazardous and non hazardous waste.
Transparent Governance Investing in Our Staff Making Steel More Sustainable Enriching Our Communities
Total weight of hazardous waste transported Total weight of hazardous waste shipped out of the organization
ArcelorMittal Aços Longos (Long carbon steel) in thousand tons
ArcelorMittal Tubarão in thousand tons
9.9
75.8
9.9
ArcelorMittal Vega in thousand tons
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Summary
37.3
2.3
2.3
As a part of the Waste and Co-product Management model ArcelorMittal Tubarão develops techniques for the application and re-use for packaging from the processes of manufacture and shipping of its products to ArcelorMittal Vega. Among them, 100% use of metal belts and seals as scrap at ArcelorMittal Piracicaba and ArcelorMittal Tubarão stand out (2.4 thousand spools of belts and 1.9 thousand spools of seals in 2011). As for wood, pallets are sold for reuse and wedges and boards are sold as fuel for boilers (27.2 thousand units and 17 m³ in 2011, respectively).
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The reuse of waste as raw material for other activities is the basis of the Novos Caminhos (New Paths) program, an initiative deployed in 2005 by ArcelorMittal Tubarão in a partnership with the government. In 2011 tests on steelmill aggregate generated by ArcelorMittal Monlevade were carried out in order to assess the BIOMON coating behavior. After assessments based on the National Department of Transport Infrastructure (DNIT) standards, it was found that in addition to being environmentally correct, BIOMON is a suitable option for coating unpaved urban or rural roads, since it provides good resistance to traffic and decreases dust levels. It was also noticed that this is an economically feasible option due to the coating durability and low cost over time, as it does not require constant maintenance.
Sustainability Vision Transparent Governance
In order to raise common sense and encourage sustainable practices, ArcelorMittal Piracicaba has built a Permanent Co-product Exhibit Area on its land. Everything on the site is made from concrete using steelmill aggregate (electric furnace slag after processing). The sun power lamps, with estimated life of over 10 years, have their own generator (solar panel), which accumulates energy in batteries during the day for use at night – thus eliminating any electrical energy expenditures. The space, approximately 870 m2 in area, also has wire rod benches and sculptures of endangered animals built from ferrous scrap. Exhibit Area is part of the external visit circuit of the Company, and it is an example of how to reuse co-products from steelworks activities.
Spillouts During the assessed period, there were no product leaks or spillouts in any ArcelorMittal Brasil activity. But, in the case of emergencies such as these, the Company is ready to act and keeps in touch with a specialized supplier that operates in unforeseen circumstances involving loads of products, whether rated as hazardous or not, inside or outside its facilities throughout Brazil. As a way of preserving and passing its values down to the supply chain, in all agreements with suppliers of hazardous products and customers of waste or co-products, whether untransferable hazardous products or not, the Company demands that they have immediate ways of responding to emergency situations, if they are responsible for shipment and handling of these materials, or that they have agreements with companies that provide this kind of service.
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An example of a practical action to prevent incidents of this nature was the improvement in the lubrication system of the ship loader trolley carried out at ArcelorMittal Tubarão. The objective was to eliminate grease leakage points, which, in addition to minimizing the risk of environmental impacts, reduced consumption of lubricant and waste production. Take
a preventive, responsible and proactive approach to environmental challenges
Energy Management The efficient management of energy is a commitment from all ArcelorMittal Brasil units, and is aligned to the concept of sustainability adopted by the whole Group. The Company aims at optimizing the use of energy resources and take advantage of the energy generation capacity available. A highlight in 2011 was the creation of ArcelorMittal Comercializadora de Energia Ltda. (AMCEL). The new company is located at the Belo Horizonte Headquarters and its goal is streamlining the use and sale of electrical power to ArcelorMittal Group, at first in Brazil. That is, the new company buys and sells the electricity needed and/or available in the Group according to each plant requirements.
The creation of ArcelorMittal Comercializadora de Energia was approved at a meeting of the ArcelorMittal Brasil Board in September 2011. In the same year it was registered at the Board of Trade and approved by the Brazilian Electricity Regulatory Agency (Aneel) and the Brazilian Power Commercialization Chamber (CCEE). The company has an Administrative Committee, which includes one representative of the long carbon steel segment and another from the flat one. Therefore, it has an overview of electrical energy in the Group, both what is generated and purchased in the market, as well as the Group’s needs. Any energy surplus obtained in the flat or long carbon steel segments is distributed within the Group, which results in lower costs through the elimination of transmission and distribution costs. Any contract surpluses are made available for sale to the market. For 2012 it is expected that operations should stabilize, the target being an $ 18 million BRL gain.
ArcelorMittal Tubarão is electricity self-sufficient and sells power to the market. 662,372 GJ of electric energy were sold in the free market in 2011. Total energy production was around 330 MW, against an average consumption of 314 MW, or 105.3% of electric energy self-generation.
Sustainability Vision
ArcelorMittal Comercializadora de Energia intends to streamline the use and sale of electric energy.
Transparent Governance Investing in Our Staff Making Steel More Sustainable Enriching Our Communities
Direct energy consumption* (GJ)
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2011 Coal
0
Gasoline
17,517
Diesel Fuel oil
35,829 3,017,553
Electricity
15,398,250
Charcoal Ethanol Hydrogen
Evolution in Direct Energy Consumption (in million GJ) 216.7
0 374,150
127.0
0
116.2
24,378
High-purity oxygen
124,073
Low-purity oxygen
45,299
Nitrogen
-40,762
Argon
-29,013
Compressed Air
182,504
Total 55
253,594
Natural gas Biofuel (biodiesel)
Summary
96,876,753
Crude oil
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116,280,125.00
2009
2010
2011
(*) Total consumption of direct energy (=) Direct primary energy purchased (+) Direct primary energy produced (-) Direct primary energy sold
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In 2011 energy consumed in employees commuting (diesel + petrol + biodiesel) totaled 6.1 GJ. The largest indirect energy consumption in vehicles is biodiesel, a fuel produced from renewable sources used in ArcelorMittal Tubarão
buses since 2009. Consumption has remained steady around 4.7 GJ a year. The use of petrol and diesel increased slightly due to the increase in commuting distances in 2011.
Indirect energy consumption - ArcelorMittal Tubarão * Electricity acquired (GJ)
Surplus sold in the market Self-production
2011 -662372 105.3
* The energy spent by the concessionaire to generate the energy supplied to ArcelorMittal Aços Longos (Long carbon steel) and ArcelorMittal Vega was not provided; therefore, it is not possible to quantify it.
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GJ %
ArcelorMittal Brasil units develop projects to improve energy expenditure, especially relating to non-renewable resources, and thus save energy. Actions undertaken in 2011 go from a better use of coke oven gas by decreasing its use in boilers and providing a greater amount for consumption in plant processes, to the replacement of fluorescent for incandescent bulbs and the use of natural lighting, whenever possible. All this has yielded savings of 278,985.8 GJ in the period.
Biodiversity A large part of ArcelorMittal Brasil business units have protected areas with a high biodiversity rate inside them or in neighboring places. In order to preserve ecosystems and minimize possible impacts from its activities, the Company invests in monitoring flora and fauna of the surrounding regions. The surveys carried out include the identification of risk scenarios, determining corrective and preventive actions and assessment of the effectiveness of those actions.
Protected areas and high biodiversity rate per unit
ArcelorMittal BioFlorestas (Region of Bahia)
ArcelorMittal BioFlorestas (Rio Doce Region)
ArcelorMittal BioFlorestas (Northern Region of Minas Gerais)
ArcelorMittal BioFlorestas (Midwest Region of Minas Gerais)
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• Location: South of Bahia (Prado, Caravelas and Alcobaça) • Company grounds • Region protected by Ordinance 750/93 • Activities: Forestry and charcoal production (Bioreducerl) • Total area: 63,614 km² • Unit located in the Atlantic Rainforest Biome, having 46% of its area covered in native vegetation • Location: Vale do Rio Doce Region in Minas Gerais (Dionísio, São José do Goiabal, Marliéria and São Pedro dos Ferros) • Company grounds • Region protected by Ordinance 750/93, where the third largest lake complex of Latin America is located. The areas of this region are adjacent to Rio Doce State Park - PERD, forming a part of its “buffer zone” • Activities: Forestry and bioreducer production • Total area: 84,922 km² • Unit located in the Atlantic Rainforest Biome, having 27% of its area covered in native vegetation Monitoring of fauna and flora in some native reserves show species wealth rate compatible with PERD • Location: Northern Region of Minas Gerais (Carbonita, Senador Modestino • Gonçalves and Diamantina) • Company grounds • 6,700 Hectares of Private Reserves of Natural Heritage within this region • Activities: Forestry and bioreducer production • Total area: 134,800 km² • Unit located in the Cerrado Biome, having 33% of its area covered in native vegetation Monitoring of fauna and flora in some native reserves show species wealth rate compatible with that of conservation units in the same region
• Location: Midwest Region of Minas Gerais (Abaeté, Bom Despacho, Dores do Indaiá, Martinho Campos and Quartel Geral) • Company grounds • Activities: Planting of saplings, forestry and bioreducer production • Total area: 70,000 km² • Unit located in the Cerrado Biome, having 20% of its area covered in native vegetation
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Áreas protegidas e de alto índice de biodiversidade por unidade
Guilman-Amorim
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• Localização geográfica: Médio curso do Rio Piracicaba, Municípios de Nova Era e Antônio Dias (MG) • Reserva Particular do Patrimônio Natural (RPPN) dentro da área de propriedade da Usina • Atividades: Geração e transmissão de energia • Área total: 1640 km2 • Riqueza da biodiversidade: Reserva Particular do Patrimônio Natural (RPPN), Reserva Legal, Área de Preservação Permanente (APP) enquadramento do rio Piracicaba Classe 2 (Legislação MG),bioma da Mata Atlântica. • Cenários de fragilidade ambiental atual da bacia do rio Piracicaba: Ecossistemas aquáticos (média); e ecossistema terrestre (média à alta) segundo MME/EPE (2007)
ArcelorMittal Juiz de Fora
• Localização: Juiz de Fora - MG • Área própria administrada pela organização • Atividades: Escritórios administrativos e área de produção • Área total: 2000 hectares, sendo 13,5 hectares de área construída, 382 hectares Área de Preservação Permanente e 400 hectares de Área de Reserva Legal • Riqueza da biodiversidade: Ecossistema terrestre: 471,15 hectares Condições de Compensação Ambiental
ArcelorMittal Monlevade
• Localização: João Monlevade - MG • Área própria administrada pela organização • Atividades: Escritórios administrativos e área de produção • Área total: 578,20 hectares, sendo 60,20 hectares de área construída e 518 hectares de Reserva Particular do Patrimônio Natural (RPPN)
ArcelorMittal Cariacica
• Localização: Cariacica - ES • Área própria administrada pela Empresa • Atividades: Fabricação de tarugos e laminados de aço (perfis e vergalhão) • Área total: 113 hectares, sendo 0,78 hectares de área construída e 59,81 hectares de área verde protegida • Riqueza da biodiversidade: Possui fragmentos de cobertura vegetal em estágio inicial, médio e avançado
ArcelorMittal Sabará
• Localização: Sabará - MG • Área própria administrada pela Empresa • Atividades: Escritórios administrativos e áreas de produção • Área da unidade operacional: 105,6 hectares, sendo 77,2 hectares de área verde (22,11 hectares de reserva legal, 9 hectares de área de preservação permanente e 46,12 hectares de reserva nativa)
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Protected areas and high biodiversity rate per unit
ArcelorMittal Tubarão
• Location: Serra – ES • Total area belonging to the Company: 1,338 hectares • Permanent Preservation Areas (APP) within the Company’s site: 122 hectares • Activities: Offices and industrial production within 13.38 km2 • Wealth of biodiversity: The company has in its site 8 lakes, 6 of them connected to each other to form the Praia Mole brook
ArcelorMittal Vega
• Location: São Francisco do Sul – SC • Total area belonging to the Company: 2.2 km2 • Private Reserve of Natural Heritage (RPPN) area within the Company’s site: 0.76 Km2; restinga (sandbanks) preservation area near the outfall: 0.75 km2 • Activities: Manufacturing/production • Operational unit size: 0.1 km2 • Wealth of biodiversity: The ground includes a Private Reserve of Natural Heritage (RPPN) covered by an Atlantic Rainforest. It includes also another 0.75 km2 area not neighboring the plant and qualified as restinga. It is within Acaraí State Park, and is considered the last intact restinga area in Santa Catarina
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Number of Endangered Species by Risk Level To allow for greater effectiveness and reliability of these actions, the surveys follow different internationally
CRITICALLY ENDANGERED Guiman-Amorim - 2 BioFlorestas – 1 Vega - 13
ENDANGERED Guilman-Amorim – 1 BioFlorestas -6 Vega - 16
ArcelorMittal Aços Longos (Long carbon steel) is now carrying out an update of the mammals, reptiles and fish surveys. The ArcelorMittal Vega biodiversity monitoring program seeks to identify major species of local fauna and flora, including whether there are endangered species.
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proven methodology patterns, such as the International Union for Conservation of Nature (IUCN) rating on endangered fauna and flora species. In Brazil, this rating is used to prepare the Red List of Endangered Fauna Species and
the Red List of Endangered Flora Species . These lists, in turn, are consultation sources to companies, environmental NGOs, the government and regulatory agencies to support biodiversity management.
VULNERABLE Guilman-Amorim - 2 BioFlorestas -11 Vega - 35
The work, developed by a team of biologists and experts showed that the Company operations have not affected any species. On the contrary, the number of species and individuals has increased with the creation and maintenance of the RPPN. For this effort ArcelorMittal Vega received
NEARLY ENDANGERED Guilman-Amorim – 1 BioFlorestas – 5
the Ecology Exponent Award in the Wild Life Conservation category, the greatest environmental award in the Southern Region of Brazil. Also, since 2007 ArcelorMittal Vega keeps a nursery with Atlantic Rainforest species, located in a 1,152 km² area. Production will help a
NOT ENDANGERED Guilman-Amorim – 4 BioFlorestas – 50 Vega - 310
revegetation program of the new operational unit areas. It will be used to enrich the woods already existing in the region and also distributed to the neighboring communities.
The number of species and individuals has increased in the ArcelorMittal Vega RPPN.
Sustainability Vision Transparent Governance Investing in Our Staff Among the tools used by ArcelorMittal Tubarão for the prevention of impacts to biodiversity are two internal normative documents that set down standards to be followed. The first is the “Environmental Control in New Ventures and Modifications” standard, whose main objective is to set down guidelines and procedures for prior assessment in order to establish and deploy environmental control measures. It is used in the deployment of new ventures or in modifications in Company equipment, processes and facilities. The second is the “Development of ArcelorMittal Tubarão Strategic Investment Studies” Engineering standard, that aims at establishing criteria, responsibilities and minimal documentation for the development, analysis and delivery of studies for investments in ArcelorMittal Tubarão’s strategic projects. The Company’s Environmental area responsibilities assesses compliance of the new project with legislation applicable to Environmental Licensing; provides possible project location restrictions in relation to Permanent Preservation Areas (APPs), water resources and legal reserve areas; helps setting down requirements for Environmental Engineering (environmental impact mitigation and minimization technologies); advises as to the proper final destination of waste and/or co-products to be generated by the project; and recommends alternatives that allow for the best social environment results. Among the goals and targets for 2012 and the coming years, ArcelorMittal Tubarão is planting new vegetation species in order to increase the effectiveness of the Green Belt and plant barriers around its yards. Among other Green Belt maintenance services, it has intensified fertilizing and planting of new vegetation in order to enrich the existing forest by increasing its vegetation diversity, sustainability and effectiveness in placing a barrier to the winds that sweep raw material stockpiles, thus reducing suspension of particulate material.
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Habitats protected or restored AREA / PROJECT Permanent Preservation Area ArcelorMittal Tubarão
SIZE (hectares)
STATUS
102
Preservation Area including restinga, vegetation under regeneration
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PARTNERSHIPS
Investing in Our Staff Making Steel More Sustainable
There are no partnerships
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Reforestation using growth, native and fruit species, riparian vegetation and vegetation under regeneration
There are no partnerships
Lakes and brooks with vegetation.
There are no partnerships
34.2
Concluded
Rio Doce State Park – IEF Minas Gerais
Bahia Region
2
Concluded
There are no partnerships
Degraded Area Recovery Program (PRAD) Itaúna - MG
10
Concluded
There are no partnerships
RPPN - Antônio Dias - MG
253,5
Concluded
There are no partnerships
Legal Reserve - Nova Era / Antônio Dias - MG
182,6
Concluded
There are no partnerships
PRAD - Nova Era / Antônio Dias - MG
131,3
Concluded
There are no partnerships
Under assessment by Ibama
There are no partnerships
Plant Green Belt ArcelorMittal Tubarão
Rio Doce Region
RPPN - Vega
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35
27
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Summary
ArcelorMittal Aços Longos (Long carbon steel) keeps its own safety brigade, fire brigade and arrangements with the environmental police to prevent and, where appropriate, combat situations that might put the preservation areas at risk. For areas that might require renovation or which have been modified due to industrial operations, there is a recovery program and an action plan. There were no changes or significant alterations that should impact biodiversity during the year at ArcelorMittal Tubarão. The goal for 2012 is to move on with the biological monitoring of the seawaters adjacent to the Company site and the river source inside it, which is formed by eight
Sustainability Vision Transparent Governance Investing in Our Staff
Description of Impacts
Making Steel More Sustainable Enriching Our Communities
ArcelorMittal Brasil’s units continuously monitor any possible impacts its operations may cause on the environment. Action plans are prepared for each risk factor detected. These seek to minimize the damage and, where possible, restore the affected areas.
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SIGNIFICANT IMPACTS
NATURE OF IMPACTS • Reduction of species.
Guilman-Amorim
• Changes in ecological processes beyond the natural variation level (e.g., salinity, changes on ground water level).
• Reduction of species.
ArcelorMittal BioFlorestas
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• Changes in ecological processes beyond the natural • ArcelorMittal variation level (e.g., BioFlorestas salinity, changes on ground water level).
DESCRIPTION OF IMPACTS • Major species affected are aquatic microbiological and fish communities from the mid Piracicaba river • Affects a 20 km stretch along the river bed, whose natural outflow was altered. • Impacts, which are irreversible, last for the whole Plant life.
• Affected species: endangered, endemic, locally rate and migratory species and specialized forest dependent ones. • Impacts detected on the fauna hit the native reserve areas neighboring the site under forestry management, water environments and riparian forests being the most sensitive ones; also on old trellises where there is where there is the development of a native subwood colonized by fauna. • Duration of the impact depends on its size, extent and duration in the region, but it usually recedes after the root-cause activity ceases. • All impacts on the fauna detected so far are reversible, since their scope does not pose any imminent risk of extinction to any species.
For managing impacts on biodiversity ArcelorMittal Brasil’s units carry out miscellaneous actions, such as biodiversity surveys, environmental education programs for the internal public and the surrounding communities, and environmental impact surveys.
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Environmental Education ArcelorMittal Brasil believes that it is its duty to spread knowledge on environmental preservation. That is why it maintains programs in virtually all its units. At ArcelorMittal Vega, for instance, the “Verde com Vida” Environmental Education Program includes children and young people from 8 to 15 from the town of São Francisco do Sul (SC) and environs. The awareness-raising practical activities take place during visits monitored by environmental experts. They are developed based on an innovative ecopedagogical proposal focused on sequential learning and enriched by the pedagogy for inclusion, cooperative games and awarenessraising through theater. The program relies on ArcelorMittal Vega’s Private Reserve of Natural Heritage (RPPN) structure and its trail inside the Atlantic Forest. It also includes an Environmental Education Center and a nursery and medicinal vegetable gardens. These spaces function as outdoor classrooms. Since its inception in 2007 the project has received over 9 thousand students. The Company has also entered into partnerships with public bodies in order to implement projects to protect natural resources, such as the
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Prêmio ArcelorMittal Brasil de Meio Ambiente (ArcelorMittal Brasil Environment Award), managed by ArcelorMittal Brasil Foundation. In 2011, the Award celebrated its 20th anniversary. In that time, over five million children and adolescents participated in the environmental-education-focused initiative. The Award, which targets students from both public and private schools located in areas ArcelorMittal Brasil performs in employees’ children as well, seeks to encourage educators to discuss current issues related to the environment, ethics and citizenship in the classroom. The theme of the 20-year commemorative issue of the Award was “Ideas to sustain the world”. The material handed out to teachers included a booklet and a DVD with speeches from Mario Sergio Cortella, a philosophy professor and Ph.D. in Education. The second step was to train these professionals in interdisciplinarily developing the subject. The students also got primers with playful activities that combined learning and fun. At the end of the process, they were invited to participate in contests of drawing (students from the 1st to 5th year) or writing (students from the 6th to 9th year). The award is divided into three categories: School Community, Employee’s Children and School-Project.
ArcelorMittal Environment Award: numbers 1992-2011 Municipalities: 40 Participants: 5 million, including students from public and private schools located in areas ArcelorMittal Brasil performs in and employees’ children Participating educators: about 9 thousand per year Schools involved: about 800 per year
Sustainability Vision Inspired by the ArcelorMittal Brasil Environment Award theme ArcelorMittal Monlevade, in a partnership with schools from the towns of Nova Era and Bela Vista de Minas proposed to develop institutional projects focused on sustainability. The aim was to bring to the public information on sustainability in a playful way by presenting researches and papers done by the students during the school year, such as models and recycled materials. The participation of parents and the support of entities were remarkable, and yielded results not only for the schools, but for the whole community.
Responsibility for the Product ArcelorMittal Brasil always considers the precautionary principle in its risk management processes, in planning operation and in developing and launching new products. During planning risk analyzes are carried out, both for products and new units. Such analyzes consider all factors that may pose risks to the health and safety of our employees, suppliers and clients. For example, one of the mechanisms used at ArcelorMittal Brasil to assess impacts on health and safety is the monitoring of radiation in raw materials. The goal is to eliminate any hazard from radioactive products for its employees, suppliers and clients. On detecting any issues that could pose risks both for people and assets, the Company immediately acts to dispose of the product or, in specific
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Transparent Governance Investing in Our Staff
DEVELOP
iniciatives and practices to promote and disseminate social environmental responsibility
Making Steel More Sustainable Enriching Our Communities
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cases, take it out of commission. We also take specific actions, such as drafting booklets and primers with storage and handling best practices and training sessions with customers to instruct them on care related to the product and its applications. All products are labeled and can be tracked along the production chain. Specifications are backed up by tests on certified and calibrated equipment based on worldwide acknowledged domestic and international standards. Some ArcelorMittal products require mandatory certifications and compliance with government ordinances. In these cases, there are rules for submitting minimum information related to technical aspects of the material.
At ArcelorMittal Monlevade the deployment of a radioactive material scanner for steel and slag samples resulted in an increase in product reliability. The Company’s production process includes the acquisition of scrap metal to be used in the production of liquid steel. That scrap is purchased from the most varied production sources, which can result in a potential risk of it including radioactive elements. To minimize that risk the Company has four devices, also called lines of defense, used for detecting and segregating radioactive material embedded in the scrap. The deployment of the steel and slag sample scanner imparts greater reliability to the final product, realized in the issuing of a certificate stating that ArcelorMittal Monlevade’s final product contains no radioactive material.
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Fines and Notices of Violation ArcelorMittal Tubarão received a notice of violation this year with a fine of $ 112 thousand BRL. The reasons were some constructions made in a prohibited area, fires and removal of vegetation in the Praia Mole APA - environmental
preservation area - called “Área da Picanha”. The Company appealed the violation notice, which was drafted during a time when “Área da Picanha” was occupied by some families. The request for dismissal of the fine was granted in a trial court. A Public-Interest Civil Action (ACP) instituted by the Espírito
Santo Public Attorney’s Office was also recorded. The content of the ACP was analyzed and the information for the defense was raised. Three companies/ institutions were suggested to provide environmental expert evidence. The goal is to assess whether the current green belt in the Company is efficient in controlling particulate
Sustainability Vision
material dispersal. Currently, ArcelorMittal Tubarão is awaiting operational permit from the Espírito Santo State Institute for the Environment and Water Resources (IEMA) and the State Public Atorney’s Office for these companies, and also agreement on the environmental expert reports they delivered.
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Environmental Impact Management All ArcelorMittal Brasil plants are committed to drafting actions and strategies to avoid any type of environmental impact. Among them, we can mention:
Unit
ArcelorMittal BioFlorestas
ArcelorMittal Cariacica
ArcelorMittal Sabará
ArcelorMittal Itaúna
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Action
Results
• In fertilization operations, gaging equipment to avoid waste. • Implement selective garbage collection; return of agrotoxic packaging in certified units, implementation of residue management system.
• Reduction of the area applied with chemical products; reduction of specific agrotoxic products consumption in forest plantations. • Reduction of residue disposal in landfills; elimination of visual pollution and 91% of recovered residues.
• Replace the sleeve filters of the dedusting system.
• Keeping the total emissions of particulate material in the amount of 9.04mg/Nm3. • Average recovery of 16m3/h.
• Reuse of the final effluent of the steel plant and rolling mill as industrial water. Reuse of solid residues generated in the unit.
• Recovery/reuse of 74,157.69 tons of solid residue.
• Residue recycling.
• 88%, that is, 4,125.88 tons of generated residues are recycled.
• Reduce drinkable water consumption in the industrial kitchen.
• Reduction of around 22% of water consumption in the industrial kitchen and savings of more than R$ 3 thousand and 2011. • In five months reduction of maintenance costs of the heating system; reduction of 67% in GLP consumption and savings of R$ 893,21.
• Installation of solar panels in the dressing rooms and industrial kitchen.
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Unit BBN BBA Osasco
ArcelorMittal Tubarão
ArcelorMittal Vega
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Action
Results
• Enclosing of machinery and installation of gates.
• Reduction of 6 decibels (Db) of noise.
• Reduction of electric energy consumption.
• Reduction of 22% of the specific consumption of electric energy from 0.86 MW/h in 2008 to 0.67 MW/h up to Dec 2011.
• Replacement of the intake cap from the pig iron weighing in the steel plant; implementation of the new sleeve filter in the casting shop. • Implementation of the desulfurization system of ammonia vapors (Claus System) in the coke plant (investment of US$ 27 million). • Approval of the methodology of the sea barge terminal.
• Reduction of around 8% in the emission rate of particulate material related to 2010. • Decrease of SO2 emissions from 2.29 Kg/tons of crude steel (2010) to 1.95 Kg/tons of crude steel (2011). • Cost reduction with steel coils transportation of around 60%. Besides that, due to generating less greenhouse gases than in road transportation, the system was appointed as a Clean Development Mechanism (CDM). • With such improvement it was possible to avoid: burning of electric engines of the compressors; contamination of the refrigerant fluid and lubricating oil; disposal of 110 kilos of refrigerant fluid and 30 liters of oil in each compressor burning; risk of burns and electric shock when operating the sectioning switch; carbonization and fusion of contacts from the engine magnetic counters risking a short circuit in the panel; overheating of electric cables; equipment unavailable for operation and stoppage risk of the hot strip rolling mill operating unit.
• Improvement of the engine cooling system and electric circuit of the chillers of the hot strip rolling mill.
• Treatment of effluents generated in industrial and sanitation processes.
• Treated liquid effluents: 189,275 m3/y.
Enriching
Our Communities
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Sustainability Vision Transparent Governance Investing in Our Staff Making Steel More Sustainable
5 – Enriching Our Communities
Enriching Our Communities
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The Family Goes to School Encourage the involvement of families in their children’s the school life, as a way to improve their learning process and raise quality of education. That is the proposal of the MobilizAção Program, created in 2011 by ArcelorMittal Brasil Foundation. Deployed initially in the municipalities of Cariacica (ES) and João Monlevade (MG), the Program is also attempting to decrease grade repetition and dropout levels by strengthening the bonds between the students, their families, schools and communities. The project is in line with the Social Mobilization for Education Plan created by the Ministry of Education (MEC), which aims at creating an articulated network to ensure the right to education for children and adolescents and boost up education in the Brazil. With that goal, MobilizAção involves local leaders connected to education to become part of a manager committee to encourage and guide family participation in school, at the same time fostering a more welcoming environment in the school for parents and students. “Our role at first is to facilitate the articulation of the network of local education, by providing conditions to consolidate the relationship between school and family in that school community,” comments Leonardo Gloor, ArcelorMittal Brasil Foundation CEO.
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At Cariacica, ten schools participate in the program and, in João Monlevade, where actions are implemented by means of school mobilization groups (Nume), there are seven schools involved. In total the Program involves 979 educators and directly benefits over 12.5 thousand students.
MobilizAtion Municipalities – 2 Students involved – 12,536 Educators involved – 979 Schools included – 17
Sustainability Vision
Social Responsibility For ArcelorMittal Brasil, sustainability is directly related with the development of communities influenced by the Company business. This concern is expressed, for example, in the care that has been given to the assessment and management of impacts of our operations on the surrounding communities - before, during and after activities are concluded. The Company adopts the most stringent criteria for assessing and monitoring social and environmental impacts, proposing local development programs based on the needs of communities and builds action plans to minimize, mitigate or offset adverse impacts. All of this is supported by a consistent mapping of the target public that provides elements to draft engagement and participation plans.
ArcelorMittal Brasil Foundation ArcelorMittal Brasil Foundation is a non-profit organization created in 1988 to develop actions that benefit over 500 thousand people each year. Its major focus is the investment in educating children and adolescents to become more aware, productive and engaged citizens. The programs are implemented in municipalities ArcelorMittal does business in Brazil, covering the areas of education, health, community development, culture and sport.
Transparent Governance The Company also invests in projects and actions that contribute to the cultivating educated and engaged citizens. The social programs are managed by our business units or through ArcelorMittal Brasil Foundation. In this case, the entity management initiatives with the help of a team of local coordinators including professionals that work in plants and offices.
Investing in Our Staff Making Steel More Sustainable Enriching Our Communities
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Summary
Bahia Alcobaça Caravelas Feira de Santana Prado Teixeira de Freitas
Minas Gerais Abaeté, Antônio Dias, Bela Vista de Minas, Belo Horizonte, Bom Despacho, Carbonita, Contagem, Dionísio, Dores do Indaiá, Ewbank da Câmara, Itatiaiuçu, Itaúna, João Monlevade, Juiz de Fora, Marliéria, Martinho Campos, Nova Era, Quartel Geral, Rio Piracicaba, Sabará, Santos Dumont, São Domingos do Prata, São José do Goiabal, São Pedro dos Ferros, Senador Modestino Gonçalves, Taquaraçu de Minas, Vespasiano
Espírito Santo Cariacica, Serra, Vitória
Rio de Janeiro Mesquita
São Paulo Hortolândia, Iracemápolis, Osasco, Piracicaba, Rio das Pedras, São Paulo
Santa Catarina São Francisco do Sul
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Sustainability Vision Transparent Governance Investing in Our Staff In order to identify the interests and needs of communities, the Foundation is constantly engaged in discussions with the local authorities and with the ArcelorMittal unit operating in the region. Thus, the objectives and responsibilities are defined based on actual conditions of each place. The Foundation activities focus on transferring methodologies from a significant set of social and educational programs
Investments in 2011
Enriching Our Communities
The Foundation gets financial support from ArcelorMittal to implement these actions, in addition to investing in projects registered under tax incentive laws. In 2011 the Foundation allocated a total of $ 8.3 million in investments to maintain and develop projects in the several communities.
Own and incentivized resources (R$)
Art and culture / sports
5,865,513.30
Community development
1,147,137.37
Education
952,902.36
Environmental education
157,268.12
Others
220,578.00
Total
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to municipalities, thus ensuring their continuity.
8,343,399.15
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Three new programs were launched in that year: MobilizAção, Acordes (art and culture) and the Esporte Cidadão, a project for social inclusion through sports. This program was implemented in a partnership with ArcelorMittal Monlevade, Minas Gerais Tênis Clube, - which has developed the project methodology - Social Clube, also from João Monlevade. Esporte Cidadão (Sports for Citizens) provides volleyball and indoor soccer lessons for children who live near the plant. In this first year, 78 children benefited from the program. Surveys among parents and children showed a satisfaction index above 98%.
In 2011 ArcelorMittal Brasil Foundation was awarded the Sucesu 2011 - MG Award in the Social Responsibility category for the Cidadania Digital (Digital Citizenship) project. The annual award is granted by the Society Computer and Telecommunication Users of Minas Gerais (Sucesu), an institution whose major functions involve coordination, promotion, implementation and induction activities in the computing and telecommunications industry. The Award acknowledges organizations that have provided significant contributions to fostering information and communication technology in Minas Gerais.
ArcelorMittal Brasil Foundation Projects developed: 17 Performance areas: Education, Health, Community Development, Sports and Culture Municipalities included: 43 Benefited people: About 500 thousand
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Other projects developed by ArcelorMittal Brasil Foundation in 2011 Project
Objectives
Program of Quality Teaching - PEQ
To help public schools improve their pedagogical and managerial processes to provide a more efficient teaching with better school performance among students and lower rates of failure and evasion.
Municipalities: 5 Qualified educators: 76 Students involved: 3,341
To contribute to adolescents’ personal, social and productive development by discussing affection and sexuality and fostering citizenship and youth participation.
Municipalities: 8 Qualified educators: 256 Students involved: 9,679
It aims at detecting, diagnose and solve visual acuity problems, in order to improve school results.
Municipalities: 22 Total of students: 28,034 Screened students: 26,685 Appointments performed: 3,279 Correction glasses granted: 1,286
Hearing well to learn better (Ouvir bem para aprender melhor)
It aims at detecting, diagnose and solve hearing acuity problems, in order to improve school results.
Municipalities: 17 Total of students: 3,777 Screened students: 3,011 Appointments performed: 460 Prosthesis granted: 6
Always smiling (Sempre sorrindo)
It diagnoses and treats dental problems. Besides curative treatment, the initiative also includes preventive actions.
Municipalities: 1 Students serviced – preventive: 3,851 Students serviced – curative: 2,036
Program of Affective and Sexual Education - Peas
To see is to live (Ver é Viver)
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Summary Public serviced
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Project
Youth entrepreneurship
Digital citizenship
Educating in diversity
Welding cities
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Objectives
Public serviced
The objective is to develop the youngsters’ entrepreneur spirit still at school through practical and theoretical education programs aimed at primary school students.
Municipalities: 4 Schools: 5 Volunteer participation: 78 Student participants: 1,051
The program proposes the implementation of computer centers, aiming at promoting digital inclusion through information technology and fostering citizenship and entrepreneurship.
Municipalities: 4 Graduated students: 1,516
It mobilizes educators to promote the transformation of pedagogical practices in regular and special schools, in order to reach the inclusion of students with special needs.
Municipalities: 3 Qualified teachers (120 hour-course): 83 Teachers that joined the continued program: 107 Minimum teachers’ attendance: 86%
It promotes the qualification of youngsters in social risk situations to work as welders and torchers, in order to insert them into the work market.
Municipalities: 2 Students graduated in Juiz de Fora (MG): 24 Students graduated in João Monlevade (MG): 0 (first group ongoing to graduate in February 2012)
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Sustainability Vision Transparent Governance Investing in Our Staff Making Steel More Sustainable
Relationship with Communities The projects developed by ArcelorMittal Brasil units take into account each region problems and the demands, seeking to contribute effectively to transforming their actual conditions. For this reason, participation of people is essential. Thus, the communities around the Company enterprises are seen not only as target audiences, but also as partners. At ArcelorMittal Tubarão, in order to stimulate people to seek clarification and strengthen dialog with them improvements in traditional communication channels were implemented in 2011. The Talk to Us channel was redesigned to allow monitoring of the questions sent to the unit, in addition to providing speedier answers. ArcelorMittal Tubarão and ArcelorMittal Vega also launched the Applicant Portal, where applications for sponsorship and support are routed to. These tools were introduced during the event that brought together representatives of local neighbors’ associations. At that time, the Program to Support Social Institutions was launched, whose target is to meet the requests of entities and interact with the community. In total 28 social projects were included, which got up to $ 150 thousand BRL to realize the proposed actions. They directly benefited 34,761 people. One of the initiatives adopted in this context is Segunda Chance. This project, conducted through
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a partnership with the Casa da Mulher de Feu Rosa non-governmental organization and the Justice State Secretary, offers professional training courses for inmates of the women’s penitentiary of Bubu, in Cariacica (ES). During 2011, 60 women took part in the activities and it is expected that that in 2012 the courses should be extended to the inmates of Xuri Penitentiary. In addition to learning, the training allows students greater chances of reducing their time, and getting rehabilitation and insertion in the labor market after they serve their time. An increase in self-esteem and confidence is also expected.
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Other actions supported by ArcelorMittal Tubarão in communities - 2011
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Institution
City
Project
Serviço de Engajamento Comunitário (SECRI)
Vitória
Project Art and Citizenship: it contributes to the development of children, adolescents and youngsters, offering itinerary with education in arts.
Associação Comunitária e Social de Esporte, Cultura e Lazer Jardim Limoeiro
Serra
Project Athlete, Education, Culture and Community: it aims at integrating children and adolescents who are in vulnerability situations, offering access to sports practice and body culture.
Instituto Continental em Ação - ICA
Serra
Project Future Athletes in partnership with the Industry Social Service /ES (SESI/ES)
Comissão de Amparo à Criança (Casa do Menino)
Vila Velha
Project Conhecer: it deals with adolescents who are in social vulnerability situations by offering courses of professional qualification.
Associação Universidade para Todos UPT
Grande Vitória
Transcol Library for Bus Terminals: it democratizes reading based on open libraries for the public in bus terminals.
Lar Batista Albertine Meador
Serra
Bem formar para bem cuidar: it qualifies social educators with practical and theoretical knowledge referring to sheltered children and adolescents.
Associação PC NET para a Inclusão Sociodigital (Associação PC NET)
Serra
Project Planting Knowledge: it enables and fosters children and adolescents’ development based on educational and social family assistance.
Associação Capixaba Contra o Câncer Infantil (ACACCI)
Vitória
Hospital Classes for hospitalized children: it provides children and adolescents hospitalized in Hospital Infantil Nossa Senhora das Graças with ludic and pedagogical activities.
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Summary
Institution Projeto
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City
Project
Comitê para Democratização da Informática do Espírito Santo (CDI)
Vitória
Associação Beneficente Casa da Mulher
Cariacica
Second Chance for the interns at Xuri state prison unit.
Organização Consciência Ambiental - Instituto ORCA
Vila Velha
Monitoring of mammals: Research, Conservation and Handling Program of Sea Mammals of Instituto ORCA which records the sight of sea mammals along the bay.
Ação Comunitária do Espírito Santo (ACES)
Serra
Little talents: ballet classes and educational support by means of following the school performance of 300 children and adolescents.
Obra Social Nossa Senhora das Graças
Vitória
Project Ponte: it promotes the personal development of adolescents in social vulnerability situations, during complementary time besides the regular public school schedule.
Instituto João XXIII
Vitória
Grow with art: it contributes to the integral development of children and adolescents in vulnerability situations and/or social risk.
Computing for Citizenship: digital, social and economic development of youngsters, qualifying them in the areas of technology, entrepreneurship and social and personal development.
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Summary
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Institution
City
Project
Associação Lar Semente do Amor
Serra
Project Increased Journey for Children: it helps children and adolescents to develop social, cognitive, and artistic and sports abilities.
Rede AICA
Serra
Integrated Assistance for Children and Adolescents: it contributes to strengthen family bonds, social inclusion and citizenship exercising. In 2011 Rede extended its performance to the children and adolescents’ families.
Associação PM em Ação
Grande Vitória
Project Junior Band: it promotes musical education classes to youngsters from all the municipalities of Grande Vitória, given by military police officers.
Sustainability Vision Transparent Governance
The actions listed were accompanied tracked through accountability, site visits and delivery of activity reports. All together, they should benefit 34.7 thousand people.
Investing in Our Staff Making Steel More Sustainable
General performance average in resource transfer accounting was 93.69%. This figure is even more significant when compared to the performance of projects supported by the Group in the previous investment cycle in 2010, which was around 92% clearing.
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Summary
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Institution
City
Project
Instituto Goia
Vitória
Restoration of the House (Casarão) located in the Historic Center of the City of Vitória performed by work force qualified by the institute itself.
Associação Ateliê de Ideias
Cariacica
Support to the Ecological Blocks Factory structure which qualifies and employs residents of some of the low-end regions of the municipality and also ex-cons of the prison system.
Movimento Vida Nova Vila Velha (MOVIVE)
Vila Velha
Instituto Carapebus Solidário
Serra
Project Carapebus Solidário: it promotes the improvement of life quality of the community residents by means of educational, environmental, recreational and cultural actions.
ACAMAVE - Ass. Catadores de Caranguejo Mato Verde
Serra
Construction of restaurant of 25 fishermen groups in partnership with Serra City Hall.
Centro Social de Nova Almeida Joaripe
Serra
Project Melody Choir.
Instituto Estadual de Meio Ambiente (IEMA)
State Public Schools
Programa de Educação em Valores Humanos
Serra Municipal Schools
A Development Net of the city of Vila Velha to strengthen productive cells in the city region 5.
Project ECOAR of environmental education: it benefits schools all over the State. Partnership with the City Hall: it aims at qualifying teachers from the municipal schools of the city of Serra and reducing violence and school dropout rates.
Sustainability Vision
Other actions supported by ArcelorMittal Vega in communities - 2011
Transparent Governance Investing in Our Staff Making Steel More Sustainable
In its turn, ArcelorMittal Vega invested a total of $ 1,674,590.00 BRL in social projects in 2011. The initiatives focused on the areas of education, culture, health and environment. An example is the support to the Family Health Strategy program in São Francisco do Sul (SC), which helps building clinics and healthcare centers. In 2011, ArcelorMittal Vega delivered the Paulas district healthcare center, which will provide assistance to 1,081 households, and began building the Rocio Grande district unit, that will benefit more than a thousand families.
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Enriching Our Communities
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Sustainability Vision Transparent Governance Investing in Our Staff
Investments in the community – ArcelorMittal Vega/2011 EDUCATION
School Contest / PAMMA* Boarding School Curumim
Enriching Our Communities
ENVIRONMENT Direct beneficiaries
Partners
Action
Making Steel More Sustainable
FAMB**, GERED*** and Secretary of Education of SFS****
1,459 students
40 children
Sesi / SC
Action Agreement Casa Familiar do Mar Program Colors and Tastes
Partners Casa Familiar do Mar City Hall of São Francisco do Sul and Casa Familiar do Mar
Direct beneficiaries 38 Youngsters and adolescents
10,000 people
CulturE Direct beneficiaries
Action
Partners
Projects Museu do Mar
Associação de Amigos do Museu do Mar
14,543 people
Cultural Foundation Ilha de São Francisco
1,333 people
Cultural Panorama
COMMUNITY DEVELOPMENT Action
Escola na Onda
Casa Abrigo Johanna S. Fischer
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Partners
Direct beneficiaries
Surf Association of SC and City Hall of São Francisco do Sul****
95 crianças e adolescentes
City Hall of São Francisco do Sul
1,333 people
HEALTH Action
Partners
Direct beneficiaries
*****EFS Construction Rocio Grande and Paulas
City Hall of São Francisco do Sul
3,308 people
Donation of a mobile ICU
City Hall of São Francisco do Sul
1,124 people/ year
UPA (health center)
City Hall of São Francisco do Sul
18,000 people/ year
*PAMMA – ArcelorMittal Brasil Environment Award **FAMB – ArcelorMittal Brasil Foundation ***GERED Education Regional Management ****SFS – São Francisco do Sul *****ESF – Family Health Strategies
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Summary
Art and Culture ArcelorMittal’s Cultural Program, from ArcelorMittal Brasil Foundation, brings together the cultural initiatives developed in the segment of long carbon steel and mining. The Program is based on ArcelorMittal Brasil’s Cultural Investment policy, which proposes to extend access of communities to cultural assets and services and provide training projects for managers, artists and the public. The resources com from tax incentives. In 2011 $ 5.8 million BRL were alloted to the Program.
Resources – ArcelorMittal Cultural 2011 Consolidated figures – Fiscal Incentive 2011 ICMS MG
R$ 3,131,797.00
R$ 782,949.25
ICMS SP
R$ 736,715.05
R$
-
IR - Income Tax ROUANET
R$ 881,577.00
R$
-
IR - Income Tax SPORT
R$ 250,119.00
R$
-
R$ 82,356.00
R$
-
ISSQN BH Total Total Geral
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Counterpart
R$ 5,082,564.05
Through its local coordinators the Foundation monitors the progress and assesses the results of projects it supports. In that year the Program counted over two thousand hours of workshops, courses, study groups, discussions and lectures. The plans for 2012 include strengthening the Artists’ Training Program in the towns ArcelorMittal BioFlorestas performs in, especially in the Midwest region of Minas Gerais.
R$ 782,949.25
R$ 5,865,513.30
ArcelorMittal Cultural - 2011 Municipalities - 24 Events - 388 People who benefited from artist training initiatives - 916 People who benefited from manager training initiatives - 713 People who benefited from public and audience training initiatives - 86,774 Duration of courses (classroom hours) - 2,400
Sustainability Vision Another novelty is Acordes, a musical education project launched by ArcelorMittal Brasil Foundation in 2011. Geared to children and young people in public schools, the project goal is to disseminate social inclusion and stimulate the teaching-learning process through classical music, recorder and violin classes. During the year 88 students participated in the project. The results include an improvement in self-esteem, relationships between the students and teachers and students’ school performance. The goal for 2012 is to
form a chamber orchestra. To achieve that, a flute class will be opened. In 2011 ArcelorMittal Tubarão investments in culture totaled $ 1.3 million BRL. $ 813 thousand BRL of that total were transferred based on the Rubem Braga Act, from the municipality of Vitória (ES), and $ 562 thousand through the Chico Prego Act, from the municipality of Serra (ES). Now, ArcelorMittal Vega maintains the Panorama Cultural program in a
partnership with Ilha de São Francisco Cultural Foundation. Its goal is to foster cultural activities in the town through shows, monthly theater plays, music and dance. In 2011 three theater plays were sponsored involving actors renowned all over Brazil, with an audience of over 1.3 thousand people.
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The unit also keeps an arrangement with Museu do Mar, and sponsors projects developed by that Museum center for education.
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Summary
“Cidadãos do Amanhã” Program – 2011 Community Development ArcelorMittal Brasil develops projects that seek to encourage cooperation between private business, the civil society and the government. These actions include the program Cidadãos do Amanhã (Citizens of Tomorrow) program, coordinated by ArcelorMittal Brasil Foundation. This program gets employees, family members, customers, suppliers and community embers involved in assigning a portion of their Income Tax to the Municipal Funds for Child and Adolescent Rights. The collected funds are transferred to community development institutions registered with the Child and Adolescent Right Municipal Councils.
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Municipalities - 6,352 Amount raised - $ 1,096,325.56 BRL Schools included - 26 Institutions that benefited from the 2010 resources - 69 Children and adolescents that benefited from the 2010 resources - 15,502
FOTO In Santa Catarina ArcelorMittal Vega supported in 2011 the construction of Casa Abrigo, a Home for vulnerable children, in a partnership with the Social Development Secretary of São Francisco do Sul. The Company is also a partner in the Escola na Onda project, a program to supplement education by means of the practice of surfing. The goal is to help youngsters have a healthier life by practicing physical exercises and a closer relation to nature, and also increase their interest in school education. Directed the public education system of the São Francisco do Sul municipality, the project includes lectures and hands of surfing and recreational activities.
The project currently benefits 140 children and adolescents from 6 and 16. The participants are selected based on social and economic criteria by child protecting councils, psychologists, physical therapists, teachers and principals. To participate in the program, the youngster must undertake to have good grades, regular attendance and good behavior at school. Escola na Onda also benefits family structure, because it works together with the municipality welfare programs in helping to pinpoint and report problems and mediate in issues involving the youngsters’ families.
Sustainability Vision Transparent Governance Investing in Our Staff Making Steel More Sustainable
Volunteering Another important initiative relates to the incentive to volunteering. ArcelorMittal Brasil employees are encouraged to get involved with the community by dedicating time to and sharing skills with it. In 2011 the units of the long carbon steel segment implemented 114 campaigns involving 4,430 voluntary contributions. Among voluntary actions of that period in ArcelorMittal Tubarão the aid to victims of the January floods, which resulted in the collection of two tons in donations, stands out. Retired employees participated in the campaign by separating, counting and storing collected products. In another initiative, dubbed Férias Solidárias (Solidarity Holiday), some employees put together and painted toys for a park of the region and offered English classes for about 30 children. 10 foreign volunteers selected by ArcelorMittal Foundation (the program manager) living in countries the Group has units in participated in this project . Also as part of Férias Solidárias, 10 Brazilian employees participated in a similar initiative in other countries of the Group.
ArcelorMittal Foundation, a non-profit organization that operates in countries and regions ArcelorMittal has operations in, maintains several initiatives focused on social and economic development of communities. One of them is the Minisubsidy Program (Programa Minissubsídio), which gives the opportunity to any Company employee of requesting financial support for an NGO project he or she already operates as a volunteer. The project must belong to one of areas of Foundation performance education, health and community development - and requested resources must not exceed $ 5 thousand BRL. In 2011 ArcelorMittal Foundation launched this program on a global level and benefited 73 NGOs. In Brazil, it helped develop 11 projects The program intends to foster voluntary work initiatives among employees and also strengthen Company image in the communities it helps.
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Pró-voluntário Program, ArcelorMittal Brasil Foundation / 2011 Municipalities - 12 Campaigns/projects - 114 Voluntary contributions - 4,430 People who benefited - 24,579
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Sustainability Vision Transparent Governance Value Generation
Investing in Our Staff Making Steel More Sustainable
In 2011 ArcelorMittal Brasil generated an added value amounting to $ 4.5 billion BRL, as shown in the table below. The funds were used to pay employees’ wages, taxes, shareholders’ and lenders’ returns and also fed a wide supply chain.
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Distribution of added value (in million R$) 2011
2010
Summary
2009
Employees
1,698
1,656
1,483
Taxes
1,626
1,793
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Financers
1,246
953
2,234
(82)
1,590
3,321
4,488
5,992
7,097
Shareholders TOTAL
Suppliers ArcelorMittal Brasil works with several kinds of suppliers, that provide support to its business and prioritizes the hiring process of professionals in the places the company has operations in
Values purchased by the long and flat carbon segments in 2011 (in million R$)
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Long Carbon steel
From local suppliers: 2,173 From other suppliers: 2,070 TOTAL: 4,243
Flat Carbon steel
From local suppliers: 2,766 From other suppliers: 2,550 TOTAL: 5,316
Securities bought by Flat and Long Carbon Steel Segments (in billions of Brazilian Reals) 9.7
9.5
7.1
2009
2010
2011
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Sustainability Vision Transparent Governance Investing in Our Staff Human rights are considered in all contracts with suppliers. To assess them in these requirements the Company has the Supplier Performance Management (SMP) system. In 2011 89 suppliers were evaluated using this system, which includes items such as the code of conduct that supports labor standards and rejects slave and child labor. As for child and slave labor, the standards for suppliers are the same as the ones followed by the Company: the use of slave labor is not acceptable; hiring of children is forbidden and the minimum school level for hiring is secondary education. These definitions are stated in the Supplier’s Guide made available to the companies ArcelorMittal Brasil keeps commercial relations with: “Do not use or support the use of child labor” and “Not get involved with or support the use of forced labor under any conditions”.
In the Espírito Santo State ArcelorMittal Cariacica and ArcelorMittal Tubarão participate in the Integrated Supplier Development and Qualification Program (Prodfor). The Program represents a joint effort of the major companies established in the State to develop and implement an integrated way for developing and qualifying their suppliers. Thus, based on the requirements of what a qualified supplier consists of, this system is designed to coordinate the process to provide guidelines to and help suppliers meet these conditions, and also set down a frequent and independent way of checking conformity of the suppliers’ organizations based on the requirements set down.
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Making Steel More Sustainable Erradicate
effectivelly all forms of child labor in its productive chain.
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The sponsoring companies appoint suppliers they are interest in to join the Program. Once the supplier is approved and accepted, it will participate in a series of activities that will result in its Supply Quality Management System (SGQF) being put in place. Today, Prodfor’s database has miscellaneous information on suppliers that allow us to know understand the supply potential and conditions of companies, thus facilitating the relationship between suppliers and sponsors. Since 2008, 481 suppliers have been certified - 28 in 2011, so far. Of this number, 241 are suppliers active in the Program, i.e. they are providing services to the sponsoring companies.
In 2011 Prodfor certified 28 suppliers.
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Transparency No lawsuits for unfair competition, trust and monopoly was recorded in 2011. The Company also did not register in the same period any significant fines or non-monetary penalties relating to any breach of laws and regulations. The Company gets governmental resources through the following mechanisms:
(Incentives at the Federal Level) - Federal Culture Incentive Act - Fund for Children and Adolescents Act - Sports Act - Program of tax incentives of the Superintendence for the Development of the Northeast Region (SUDENE)
(Incentives at the State Level) - State Acts to foster culture in Minas Gerais and São Paulo - São Paulo Sport Fostering State Act - Program for Santa Catarina Companies’ Development - Prodec (SC) - Program to Increase Employment and Improve Workers’ Quality of Life - Pró-emprego (SC) - Federal District Development Program - PRODF (DF) - Ceará Industrial Development Fund, FDI (CE) - Pernambuco Development Program - Prodepe (PE) - Bahia State Industrial Development and Economic Integration Program - Desenvolve (BA)
(Incentives at the Municipal Level) - Belo Horizonte Culture Fostering Municipal Act
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Summary
In addition to that, the Company participates actively in the development, improvement, implementation, control and assessment of public policies by means of a permanent contact with other public and private institutions.
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Sustainability Vision
Report Profile
Transparent Governance Investing in Our Staff Making Steel More Sustainable Enriching Our Communities
REPORT PROFILE In addition to the indicators themselves, which were defined by an ArcelorMittal Brasil cross-sectional group, this Report was prepared based on the sustainability reporting guidelines of the Global Reporting Initiative (GRI). The responses to the indicators cover the period from January 1 to December 31, 2011 and include the segments of flat carbon steel and long carbon steel of Company’s Brazilian units. ArcelorMittal Brasil considers it fits application level B of the GRI guidelines.
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Summary
GRI Summary Content Index
Pages
1.1 Statement from the most senior decision-maker of the organization (as president and chief executive officer, president of the board of directors or an equivalent position) on the relevance of sustainability for the organization and its strategy.
6, 7
1. Strategy and analysis
1.2 Description of key impacts, risks, and opportunities.
6, 7, 11, 12
2. Organizational Profile 2.1. Name of the organization. 2.2. Primary brands, products, and/or services.
9, 10
2.3. Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.
8-10
2.4 Location of the organization’s headquarters. 2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. 2.6 Nature of ownership and legal form.
10 8-10 10
2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).
8-12
2.8 Scale of the organization.
8-11
2.9 Significant changes during the reporting period regarding size, structure, or ownership. 2.10 Awards received in the reporting period.
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cover
There were none
106-111
Sustainability Vision Transparent Governance
Content Index
Pages
3. Report parameters
Making Steel More Sustainable
3.1 Reporting period (e.g., fiscal/calendar year) for information provided.
2011
3.2 Date of most recent previous report.
2010
3.3 Reporting cycle. 3.4 Contact point for questions regarding the report or its contents. 3.5 Process for defining report content. 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). 3.7 State any specific limitations on the scope or boundary of the report. 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.
annual 116 4, 5, 18 4, 5 There is none
4, 8-10
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement.
There were none
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
There were none
3.12 Table identifying the location of the Standard Disclosures in the report.
88-105
4. Governance, Commitments and Engagement
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Investing in Our Staff
Governance 4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.
14-17
4.2 Indicate whether the Chair of the highest governance body is also an executive officer (and, that being the case, what are his/her functions within the organization administration and the reasons for such an arrangement).
NA
4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.
17
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Sustainability Vision Transparent Governance Investing in Our Staff Making Steel More Sustainable Enriching Our Communities
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Summary
4. Governance, Commitments and Engagement 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives and the organization’s performance (including social and environmental performance). 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.
4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance to define the organization’s strategy around economic, environmental and social issues. 4.8 Statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.
89
Pages The company stimulates discussions with leaders. Employees’ recommendations are forwarded to the Board by the leaders themselves or by employees’ representatives that are a part of the several committees within the company. Since it is a strategic issue, the company cannot make that information available. Sensitive issues and any conflicts of interest are dealt with by the Executive Board or the Board of Directors.
Since it is a strategic issue, the company cannot make that information available. 16
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4. Governance, Commitments and Engagement 4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance 4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance. 4.11 Precautionary principle.
90
Pages 17 Since it is a strategic issue, the company cannot make that information available. 65
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.
19-20
4.13 Memberships in associations.
19-20
Stakeholders engagement 4.14 List of stakeholder groups engaged by the organization.
18
4.15 Basis for identification and selection of stakeholders with whom to engage.
18
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Performance Indicators Economic performance indicators Pages
indicator
EC1
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.
EC2
Financial implications and other risks and opportunities due to climate changes.
EC3
Coverage of the organization’s defined benefit plan obligations.
EC4
Significant financial assistance received from government.
indicator
91
11, 32, 33, 70-84 NR 32, 33 86
Aspect: Market Presence
EC5
Range of ratios of lowest level wage compared to local minimum wage.
33
EC6
Policy, practices, and proportion of spending on locally-based suppliers.
84
EC7
Procedures for local hiring and proportion of senior management and workforce hired from the local community at significant locations of operation.
26
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Economic performance indicators indicator
Aspect: Indirect economic impacts
Pages
EC8
Development and impact of infrastructure investments provided for public benefit .
79, 80
EC9
Description of significant indirect economic impacts.
69-85
Environmental performance indicators indicator
92
Aspect: Materials
EN1
Materials used by weight or volume.
EN2
Percentage of materials used that are recycled input materials.
Pages 43-45 45
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Environmental performance indicators Aspect: Energy
indicator
EN3
Direct energy consumption by primary energy source.
54, 55
EN4
Indirect energy consumption by primary energy source.
56
EN5
Energy saved due to conservation and efficiency improvements.
54-56
EN6
Initiatives to provide energy-efficient energy based products and services.
54-56
EN7
Initiatives to reduce indirect energy consumption and reductions achieved.
56
indicator
93
Pages
Aspect: Water 49
EN8
Total water withdrawal by source.
EN9
Water sources significantly affected by withdrawal of water.
49, 50
EN10
Percentage and total volume of water recycled and reused.
50
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Environmental performance indicators indicator
EN12
Significant impacts of activities, products, and services on biodiversity.
EN13
Habitats protected or restored.
EN14
Strategies for managing impacts on biodiversity.
EN15
Number of IUCN Red List species and other conservation lists.
indicator
94
Aspect: Biodiversity
Pages 56-63 57-59, 62 56-63 60
Aspect: Emissions, Effluents and Waste
EN16
Total direct and indirect greenhouse gas emissions.
46-48
EN17
Other relevant indirect greenhouse gas emissions.
46, 47
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved.
EN19
Emissions of ozone-depleting substances.
48 46-48
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Environmental performance indicators indicator
95
Aspect: Emissions, Effluents and Waste
Pages
EN20
NOx, SOx and other significant air emissions.
EN21
Total water discharge by quality and destination.
EN22
Total weight of waste by type and disposal method.
EN23
Total number and volume of significant spills.
54
EN24
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Convention Annex I, II, III, and VIII, and percentage of waste shipped internationally.
53
EN25
Biodiversity of water bodies and related habitats significantly affected by discharges of water and runoff.
49, 50
46-48 49 51-53
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Páginas ENVIRONMENTAL Performance indicators indicator
EN26
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
EN27
Percentage of products sold and their packaging materials that are reclaimed by category.
indicator
96
Aspect: Products and Services
Pages 42, 43, 66, 67 ArcelorMittal Aços Longos (Long carbon steel) has no information in its data banks to back up the response to this indicator. At ArcelorMittal Vega and Tubarão there was no reclaiming of products and packages at the end of their life.
Aspect: Compliance
EN28
Monetary value of significant fines and total number of nonmonetary sanctions for non-compliance with environmental laws and regulations.
EN29
Significant environmental impacts of transporting products and members of the workforce.
66 53, 56, 67
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ENVIRONMENTAL Performance indicators indicator
EN30
Aspect: Overall Total environmental protection expenditures and investments.
Pages 42
Social performance indicators Labor practices and decent work indicator
97
Aspect: Employment
Pages
LA1
Total workforce by employment type, employment contract, and region.
25
LA2
Total number and rate of new employee hires and employee turnover by age group, gender, and region.
ND
LA3
Comparison between benefits provided to full-time employees and temporary employees.
32, 33
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Social Performance Indicators - Labor practices and decent work indicator
Pages
LA4
Percentage of employees covered by collective bargaining agreements.
LA5
Minimum notice period regarding operational changes, including whether this procedure is specified in collective bargaining agreements.
The Company meets periodically with the employees’ Union, at which time significant operations changes are notified and discussed.
LA6
Percentage of total workforce represented in formal health and safety committees.
The Committees represent 100% of the workforce.
indicator
98
Aspect: Labor/management relations
100%
Aspect: Occupational health and safety
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region.
34-38
LA8
Education, prevention, and risk-control programs.
34-38
LA9
Health and safety topics covered in formal agreements with trade unions.
31
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Social Performance Indicators - Labor practices and decent work indicator
LA10
Average hours of training per year per employee, broken down by employee category.
LA11
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
LA12
Percentage of employees receiving regular performance and career development reviews.
indicator
99
Aspect: Training and education
Pages 24, 28-31 38 28-30
Aspect: Diversity and equal opportunity
LA13
Composition of corporate governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.
LA14
Ratio of basic salary and remuneration of women to men by employee category.
17, 25-29 33
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Social Performance Indicators - Human Rights indicator
Pages
HR1
Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights..
85
HR2
Companies hired that have undergone human rights screening.
85
HR3
Total hours of employee training on policies and procedures concerning aspects of human rights.
indicator
HR4 indicator
HR5 indicator
HR6
100
Aspect: Investment and procurement practices
15, 19, 21
Aspect: Non-discrimination Total number of incidents of discrimination and corrective actions taken.
21, 85
Aspect: Freedom of association and collective bargaining Operations identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights.
20, 21, 31
Aspect: Child labor Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.
21, 85
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Social Performance Indicators - Human Rights indicator
HR7 indicator
HR8 indicator
HR9
101
Aspect: Forced and compulsory labor Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor
Pages 21, 85
Aspect: Security Practices Percentage of security personnel trained concerning human rights.
21
Aspect: Native-people’s rights Total number of incidents of violations involving rights of indigenous people and actions taken.
21 ArcelorMittal Tubarão does not operate in areas neighboring native-peoples’ areas, nor does it keep relationships with native peoples. ArcelorMittal Vega is near to an indigenous community. There was no record of indigenous people’s rights being violated in 2011.
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Social performance indicators - Society indicator
SO1
indicator
Nature, scope and efficacy of any programs and practices to assess and manage impacts of operations on communities, including input,operation and output.
Páginas Pages 70-83
Aspect: Corruption
SO2
Percentage and total number of business units analyzed for risks related to corruption.
SO3
Percentage of employees trained in the organization’s anti-corruption policies and procedures.
SO4
Actions taken in response to incidents of corruption.
indicator
102
Aspect: Communities
14, 15, 19-21 20 14, 15, 19-21
Aspect: Public policies
SO5
Public policy positions and participation in public policy development and lobbying.
86
SO6
Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
ND
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Social Performance Indicators - Society indicator
SO7 indicator
SO8
Aspect: Anti-competitive behavior Total number of legal suits for anti-competitive behavior, antitrust, and monopoly practices and their outcomes
Pages 15, 86
Aspect: Compliance Monetary amount of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.
86
Social performance indicators - Responsibility for the product indicator
103
Aspect: Customer health and safety
Pages
PR1
Life cycle stages of products and services and assessment of their health and safety impacts.
65
PR2
Non-conformity incidents related to impacts caused on health and safety during the life cycle of products and services.
ND
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Social Performance Indicators - Product Liability
indicator
104
Aspect: Product and service labeling
PR3
Type of product and service information required by labeling procedures, and percentage of products and services subject to such requirements.
PR4
Non-compliances related to product and service labeling.
PR5
Practices related to customer satisfaction, including results of surveys.
Pages
40, 41, 98 ND 12
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Social Performance Indicators - Product Liability
indicator
105
Aspect: Communications and Marketing
PR6
Programs for adherence to laws, standards, and voluntary codes related to marketing communications.
PR7
Incidents of non-compliance related to communications of products and services.
PR8
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
PR9
Fines for non-compliance concerning the provision and use of products and services.
Pages 40, 41 Besides that, it has certifications that ensure product quality and process safety (ISO 9001:2008 - Quality Management, ISO 14001:2004 - Environmental Management, OHSAS 18001-2007 Health and Safety Management, UNFCCC United Nations Framework Convention for Climate Change. ND There were none ND
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AWARDS AND RECOGNITION AWARD NAME SUCESU-MG 2011 Award (Social Responsibility Category)
Corporate Responsibility Seal
106
AWARDING ENTITY SUCESU
Cemais/IDENE/ Minas Gerais Government
UNIT ArcelorMittal Brasil Foundation
ArcelorMittal BioFlorestas Ltda.
DATE December 2011
December 2011
AWARDED PROJECT / RECOGNITION Páginas Cidadania Digital Project
The Company was recognized for: • Fostering actions that allow for an improvement of economic indicators in the Northern, Jequitinhonha, Mucuri, São Mateus and Rio Doce regions of Minas Gerais. • Define the social governance principle through integrated actions among the various sectors of society, stimulating private companies to adopt responsible attitudes matching the sustainable development pillars: economic development, social justice and environmental sustainability.
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AWARDS AND RECOGNITION AWARD NAME
Top Anamaco 2011
Anamaco 2011 Award
XIII Minas Corporate Performance Award Expression Category
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AWARDING ENTITY Anamaco – Brazilian Association of Construction Material Traders
Anamaco – Brazilian Association of Construction Material Traders
Common Market
UNIT LCSA / Marketing / Brazil / Mestre ArcelorMittal
LCSA / Marketing / Brazil / Mestre ArcelorMittal
ArcelorMittal Mineração Serra Azul
DATE
AWARDED PROJECT / RECOGNITION Páginas
October 2011
Mestre ArcelorMittal Training Program
August 2011
ArcelorMittal was awarded in three segments: “Rebar”, “Nails” and “Meshes, Trusses and Annealed wires.” Considered the “Oscars” of the industry sector and trading of construction materials, the award confirms the competitiveness of ArcelorMittal products.
October 2011
The award is intended to acknowledge business groups, companies and institutions that stood out in Minas Gerais State during the year 2010 because of their economic activities, operational performance and financial results.
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AWARDS AND RECOGNITION AWARD NAME
AWARDING ENTITY
UNIT
DATE
XIII Minas Corporate Performance Award
Categories: Minas Gerais Sectorial Leadership Metallurgical/Steelmaking Industry; Best and Largest Companies Minas Gerais Excellence
Falcão Bauer Certification (green label)
Best of the Largest 1st Place Award Steelmaking Category
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Common Market
ArcelorMittal Brasil
October 2011
Falcão Bauer Institute
ArcelorMittal Brasil
May 2011
Diário do Comércio
ArcelorMittal Brasil
November 2011
AWARDED PROJECT / RECOGNITION Páginas The award is intended to acknowledge business groups, companies and institutions that stood out in Minas Gerais State during the year 2010 because of their economic activities, operational performance and financial results .
The ecolabelling program is an environmental performance voluntary certification methodology for products manufactured in Minas Gerais plants (ArcelorMittal Juiz de Fora and ArcelorMittal Itaúna), São Paulo (ArcelorMittal Piracicaba and ArcelorMittal São Paulo) and Espírito Santo (Cariacica).
The 16 largest companies that stood out in their industries are acknowledged.
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AWARDS AND RECOGNITION Award Name
ABNT Eco-Label
Minas Gerais Environmental Management Award
Brazilian Environmental Benchmarking Award
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awarding Entity ABNT (Brazilian Technical Standard Association)
UBQ (Brazilian Union for Quality)
Case Studies Magazine
unit ArcelorMittal Juiz de Fora
ArcelorMittal Juiz de Fora
ArcelorMittal Tubarão
date
awarded project/Recognition Páginas
November 2011
ArcelorMittal received the first ABNT Eco-Label granted to a steel plant.
November 2011
The award authorized by UBQ and supported by the State of Minas Gerais Government is a part of an innovative process intended to introduce a model of environmental management in Minas Gerais organizations through the adoption of sustainable practices.
July 2011
In 2011 ArcelorMittal Tubarão became one of the Brazilian companies to receive the Environmental Benchmarking Award thanks to its paper “Biodiversity from projects and efforts to protect the fauna and flora through a richer green belt.” This was the 7th time the Company received this award, now with another paper of both domestic and international relevance.
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AWARDS AND RECOGNITION AWARD NAME
Época Green Company Award - Company with the Best Environmental Practice
110
AWARDING ENTITY
Época magazine and PwC
UNIT
ArcelorMittal Brasil
DATE
AWARDED PROJECT / RECOGNITION Páginas
September 2011
Recognized ArcelorMittal Brasil’s commitment to environmental management in its activities. The Company is among the 20 Best in Environmental Practices in Brazil, and the only steelmaker in this category.
March 2011
-
Impact Awards 2011
SAP Users Association
Evidência 2011 Trophy Environmental and Social Responsibility
S’Passo Newspaper
ArcelorMittal Itaúna
August 2011
-
5 Stars 2011 Trophy Social Highlight
Tribuna Newspaper
ArcelorMittal Itaúna
November 2011
-
ArcelorMittal Aços Longos (Long Steel)
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AWARDS AND RECOGNITION AWARD NAME
BIEC - Galvalume Certification
Educator Elpidio Barbosa Award Business-School Category
Friend of the Navy Medal
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AWARDING ENTITY
UNIT
Páginas DATE
AWARDED PROJECT / RECOGNITION Páginas
BIEC
ArcelorMittal Vega
September 2011
-
State Board of Education
ArcelorMittal Vega
October 2011
For the Professional Training Program for Persons with Disabilities, in a partnership with the Joinville Senai.
ArcelorMittal Vega
November 2011
It honors companies, institutions and persons who stand out in their relationship with the Brazilian Navy.
Port Authority Office in São Francisco do Sul and Friends of the Navy Society (Soamar/SPS)
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glossary
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Accidents without lost of time (WLT): occupational accidents that do not require the employee to take a temporary leave of absence from his/her activities. Added Value Statement (AVS): it is the accounting report that shows in a synthetic way the amounts corresponding to the wealth generated by the company in a given period and its distribution to the agents that have contributed to raising it, like employees, lenders and shareholders.
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Balanced Score Card (BSC): performance measurement system used as a strategic management methodology. It is organized around four axis: finances, customers, learning and internal processes. It seeks to set down goals and align strategic initiatives, and plan and translate the Company vision, as well as to balance the short and long term goals. Benchmark: an excellence reference. It is a part of benchmarking, a management tool that searches the industry for best practices to improve performance and achieve a superior standing over the competition. Brazilian Pact to Eradicate Slave Labor: a document signed by companies and associations, which endeavor to cease commercial relations with institutions involved in cases of slave labor. Carbon credits: or Certified Emission Reductions (CERs). Certificates issued to an organization that has reduced its greenhouse gas emissions by means of carbon credit project under the Clean Development Mechanism (CDM), governed by the Kyoto Protocol. One tonne of carbon dioxide (CO2) corresponds to one carbon credit, or CER. These credits can be traded in the international market. CEO: Chief Executive Officer; it is the person in the highest position of responsibility or authority in an organization. Clean Development Mechanism: it is one of the flexibility processes created by the Kyoto Protocol to assist the industrialized countries that signed the Kyoto Protocol in reducing greenhouse gas (GHG) emissions or carbon sequestration. Countries that do not manage to meet their reduction targets can buy carbon credits from clean technology projects - based mainly on alternative and renewable energy sources - developed in nations that did no sign the Protocol. Climate Survey: a survey that measures the satisfaction of employees with their work environment. Is based on providing information that subsidize the identification of opportunities for improvement and the development of action plans. COO: Chief Operating Officer; it is the chief executive of operations in a company. Corporate Governance: it refers to the way companies are managed and their decision-making models intended to raise the organization value and help it to continue in business. 112
glossary
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Ecolabelling: type of certification that rates products and organizations according to environmental preservation and sustainability measures. They operate as a benchmark to consumers. Effluent Treatment Plant (ETP): water recovery unit to remove effluent pollutants so it can be reused.
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Ethos Institute of Business and Social Responsibility: it is a non-profit organization created in 1988 by a group of businesspeople and executives from private companies. It is a venue for organizing knowledge, exchanging experiences and developing tools to help companies analyze their management practices and deepen their commitment to social responsibility and sustainable development. GHG Protocol Brazil: from the acronym for Greenhouse Gas; it is an international tool that has also been adopted in Brazil and that aims at understanding and quantifying greenhouse gas emissions. It has been developed by a partnership between the World Resources Institute and the World Business Council for Sustainable Development, which provide the framework to corporations, governments and environmental groups all over the world to help building a new generation of programs to combat climate changes. Global Compact: a free membership initiative proposed by the United Nations (UN) to encourage companies to adopt corporate, social responsibility and sustainability policies, directing the adoption of ten principles related to human rights, labor, environment and corruption. Global Executive Development Programme (GEDP): a corporate program to develop Company employees; among other tasks, it includes an assessment of the performance and potential, individual development plans, counseling on career prospects, identification of talent and succession plan for positions and strategic functions. Group Management Board (GMB): a committee in charge of taking major ArcelorMittal strategic and investment decisions on a global level. It is under the leadership of the Company’s CEO and includes executives who represent all segments of the organization’s business. Global Reporting Initiative (GRI): an international agreement focused on improving and standardizing a company’s accounting through corporate profile, social, environmental and economic indicators. They are applied worldwide on a voluntary basis by those organizations that wish to make their activities, products and services known. The G3 version sets down more advanced guidelines, according to a worldwide standard for the production of sustainability reports. Gross Domestic Product (GDP): a methodology used to measure the economic activity in a region. Represents the monetary sum of all final goods and services produced in a given region (countries, states, cities) during a given time period. Hay Group: a global management consulting company. It works with organization leaders, helping them change objectives established into actual results. Human Rights: these can be defined as the basic rights that allow individuals to have a dignified living. They include the right to freedom of opinion and speech, the right to a compensation matching the work performed and the right to education. 113
glossary
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Instituto Aço Brasil (IABr): an organization that brings together and represents Brazilian steel producers, working to foster their interests and development. Internal Committee for the Prevention of Accidents (Cipa): a group consisting of representatives appointed by the company and members elected by the workforce, all on an equal footing, with the purpose of helping to prevent occupational accidents and diseases.
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Summary
IS0 14001: certification of the International Organization for Standardization (ISO), which sets down guidelines for companies’ environmental management. Kyoto Protocol: international treaty involving commitments with reducing emissions of gases that increase the greenhouse effect and cause global warming. Liquefied Petroleum Gas (LPG): the popular cooking gas is a mixture of gaseous hydrocarbons used as fuel for heating. Since it is a naturally odorless product, it is mixed with a sulfur-based compound to give it its characteristic odor, to help detecting leaks. Lost time accidents (LTA): occupational accidents that require the employee to take a temporary leave of absence from his/her activities in the Company. Millennium Development Goals: a series of undertakings listed in the United Nations (UN) Millennium Statement from 2000 and adopted by the 191 member states of the UN. If the commitments are met within the time limits set for them and according to the quantitative indicators that accompany them, should improve the fate of humanity in this century. Natural Gas (NG): fossil fuel found in porous rocks in the subsoil. It has several applications as replacement to diesel, alcohol, gasoline and LPG, and may be mixed to petroleum or not. It is made up of inorganic gases and saturated hydrocarbons, predominantly methane and, in smaller quantities, propane and butane. OHSAS 18001: standard managed by the British Standard Institution (BSI), and focused on workplace health and safety. It certifies management systems in safety, health and hygiene in the workplace that seek to improve their performance according with the standard requirements, and focused on accident prevention, risk reduction and the well-being of people. Opacimeter: an instrument used to measure the amount of black smoke emitted by automobiles. Participation in Profits and Results (PPR): a managerial policy where an organization distributes a previously-assigned amount of its profits among its employees. The amount paid is calculated based on net profits.
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glossary
Transparent Governance Investing in Our Staff Making Steel More Sustainable Enriching Our Communities
Performance Excellence Awards: an award granted by ArcelorMittal as acknowledgment for the best initiatives developed worldwide by the Group in the areas of Health and Safety, Operational Excellence, Innovation, Customer Satisfaction, Profit Margin and Environment, and Corporate Responsibility.
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Summary
SAP: a management software that makes it easier to automate information generated or managed by company, covering several processes. Slag: by-product of processing iron ore into metal from the fusion of impurities, together with the addition of flux and coke ashes. Stakeholders: persons, groups or organizations that are or may be directly or indirectly affected by an organization’s actions, objectives and policies. They are also called for relationship publics or interested parties. United Nations Organization (UNO): an international organization established with the mission of facilitating global cooperation on security, legal, development, human rights and social progress issues. It was founded in 1945 to replace the League of Nations. It is composed of 192 countries and has several subsidiary organizations to carry out its missions. V Day: day dedicated to volunteering. In Brazil, it always falls on the first Saturday of December. The participants carry out solidarity actions involving non-governmental organizations, private companies and government bodies. World Steel Association: International organization that brings together around 180 steel producers throughout the world, that account for 85% of the world steel production.
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Informações Corporativas
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Conselho de Administração • José Armando de Figueiredo Campos (Presidente) • Carlo Panunzi (Vice-Presidente) • Bhikam Chand Agarwal (Conselheiro) • Andrés Rozental Gutman (Conselheiro) • Paul Sebastian Zuckerman (Conselheiro) Diretoria • Benjamin Mário Baptista Filho
Diretor-Presidente e Diretor Vice-Presidente responsável pela Área de Aços Planos
• Jefferson De Paula
Diretor Vice-Presidente Sênior
• Augusto Espeschit de Almeida
Diretor Vice-Presidente responsável pela Área de Aços Longos
• Adilson Martinelli
Diretor Vice-Presidente de Controladoria
• Ricardo Garcia da Silva Carvalho
Diretor Vice-Presidente de Recursos Humanos e Relações Institucionais
• Marcos Afonso Maia
Diretor Vice-Presidente de Finanças
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credits
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ArcelorMittal Brasil
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Corporate Office: Avenida Carandaí, 1.115/19th floor ZIP 30130-915 – Belo Horizonte – MG – Phone 55 31 3219-1122 Coordination: Gerência Geral de Relações Institucionais e Sustentabilidade Publishing: BH Press Comunicação Graphic design: Jota Campelo Comunicação Layout: Jota Campelo Comunicação Photos: ArcelorMittal Brasil Image Bank, and individual photographers: André Kopsch, Bolly Vieira, Bruno Guimarães, Eduardo Rocha, Kika Antunes, Leo Horta, Lucas Vilela, Roberto Rocha and Siri Kirtan Ballesteros. Previous report: 2010 Report publication cycle: annual
Specific or supplemental Information on each subsidiary may be obtained on the Company’s website at www.arcelormittal.com/br. If you have any questions, suggestions, criticisms or complaints, please contact the General Management of Institutional Relations and Sustainability on the e-mail
[email protected]
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