How does ArcelorMittal create value for society?
How companies report on their profits and losses has been established in standards for financial reporting over many decades. But how they should report on the other forms of value they create or erode? Whilst no accounting guideline has been established, in our 2015 annual review, we present our first attempt to do this at a corporate level in our own adaptation of the international integrated reporting framework.
In 2015, for example, we emitted 205 million tonnes of carbon dioxide (CO2) across our steel and mining operations. At the same time, for every family hatchback (Opel Astra) produced using our high strength steels, we estimate that 1 tonne CO2 will be saved in fuel efficiency over its life. What’s more, we avoided 37 million tonnes of CO2 due to our recycling of scrap, and saved a further six million tonnes through the reuse of blast furnace slag in the cement industry.
In this way, our Creating value for society infographic lays out both the positive and negative contributions we made in 2015 in terms of natural capital, social capital, human capital and our products. The figures are necessarily a selection of the many ways we create or erode ‘value’ in the economies and communities where we operate. At a local level we have reported on these in more detail – for example in our Factor report in South Africa.
The infographic also emphasises the investments we committed to create long term value: for example US$176m in environmental projects, US$227m in R&D and US$54m in developing and training our people.
Impact measurement is one of ArcelorMittal’s 10 sustainable development outcomes, and the Creating Value infographic marks the first step towards ensuring that our value creation is measured, shared and valued.