28 April 2016 - ArcelorMittal, the world’s leading steel and mining company, today publishes its 2015 online annual review, ‘Structural resilience’. The online review is the company’s first step towards integrated reporting, combining ArcelorMittal’s sustainability developments and progress with operational and financial performance highlights in a single report.
The online annual review – http://annualreview2015.arcelormittal.com – includes a number of videos from ArcelorMittal’s senior management team, commenting on areas including: 2015 operational and financial performance; recent actions taken to strengthen the company’s balance sheet; health and safety performance; Action 2020, the company’s recently launched five-year strategic plan; progress made in the year against the company’s 10 sustainable development outcomes; the pricing environment in global steel and iron ore markets, and steps the company’s mining division has taken to mitigate the low iron ore price environment.
Commenting, Mr, Lakshmi N. Mittal, ArcelorMittal Chairman and CEO, said:
“This year we have attempted to take a first step towards integrated reporting, explaining the company’s ability to create not just financial value but also social, human and environmental value.
“In 2015, we faced a low pricing environment for both raw material and steel prices, with increasing levels of imports impacting pricing, and ArcelorMittal’s financial performance. We were, however, successful in reducing the cash requirements of the business and reducing net debt to the lowest level since the ArcelorMittal merger – a considerable achievement in such difficult operating conditions.
“It is clear that we are facing a structural change, not simply a prolonged down-cycle. For ArcelorMittal, there are two clear imperatives which we believe are the foundations of long-term success. The first is to have an efficient asset base producing quality products, which is capable of delivering enhanced levels of returns; and the second is to have a strong balance sheet. We announced earlier this year a roadmap to achieving this via a US$3bn capital raise and a new five-year strategic plan, Action 2020.
Commenting on the review’s sustainability content, Mr Mittal added:
“It is also important to have strong safety and sustainability credentials. We can see the increasing importance our customers and other stakeholders are putting on sustainability issues, and it is important that we can convincingly demonstrate that these issues matter for us as well and are integrated into the way we do business.”
Key highlights of ArcelorMittal’s sustainable development progress in 2015 include:
- US$63,316bn directly contributed to the economies in which ArcelorMittal operates and sources from - US$47bn in our supply chain alone, US$11bn in salaries, wages and pensions, and a further US$936m in taxes.
- 17 products aimed at a more fuel efficient automotive industry were launched during the year, with 100 more are in the pipeline.
- The completion of a number of circular economy construction projects including: a 57-storey building in Changsa, China; the prototype ‘b-home’, a modular housing system made of steel, in Avilés, Spain, and the development of a lease-use-refurbish model for sheet piles.
- ArcelorMittal joining the executive boards of two international certification schemes to drive the development of global social and environmental standards for the steel and the mining industries.
- A 4.5% reduction in CO2 per tonne of steel produced by the group, to 2.14 tonnes. Our target is to reach an 8% reduction by 2020.
- 30% of our steel was made from scrap (the ‘recycled input rate’), avoiding the emission of 37 million tonnes of CO2.
- 13 environmental investment projects completed at Ostrava plant in the Czech Republic, applying state-of-the-art de-dusting technology to every part of the steelmaking process and reducing its dust emissions to 0.3kg per tonne of steel (ts). Across the group we have recorded a 22% reduction in dust/ts since 2010, down to 0.65kg/ts in 2015.
ArcelorMittal’s annual review will be complemented in May with the publication of a quarterly review of sustainability progress, written by the company’s leadership, as well as ongoing narrative reporting on the company’s new sustainability webpages.
Together, this reporting suite is aligned with the Global Reporting Initiative’s G4 Sustainability Reporting Guidelines.
The online review also includes ArcelorMittal’s annual Fact book for analysts and investors, which incorporates a range of financial, production and sustainability data.
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ArcelorMittal unveils new approach to sustainability reporting