We regard integrity and reputation as key assets that must be preserved at all times, and aim to comply fully with our obligations as a listed company. Demonstrating responsibility and respect for our colleagues and all stakeholders, and actively listening and responding to their concerns, is central to our business. Our code of business conduct sets out the standards of behaviour we expect from our directors, officers, and employees, and anyone who acts on our behalf.

Compliance is becoming more demanding, and the voluntary codes driven by stakeholders or regulated by law are broadening the scope of what governance covers. For example, disclosure of how we implement human rights and environmental standards, and how we plan to align with the Paris agreement on climate change, are all now part of good corporate governance.  

So, while compliance with regulations is a core responsibility, this alone is not enough. Organisations today must strive to create a positive culture in which everyone wants and knows how to do the right thing. 

Sustainable development governance

We understand that fully integrating sustainable development (SD) into the business is essential to creating long-term value for our shareholders and other stakeholders, while maintaining a profitable market share.

Our  progress on the ground in our business units, at individual sites and on specific projects is overseen by management and the Board. 

The Board of Directors is ultimately accountable for our sustainable development performance and strategic direction.

Nominated senior leaders report to the Appointments, Remuneration, Corporate Governance and Sustainability Committee (ARCGS) of the Board on evolving sustainability issues, performance and progress against plans and targets, under five management themes: safety, social, environment, climate change and customer reassurance (see Our Sustainability Approach); and a quarterly summary is sent to the full Board of Directors. The company’s response to climate change is coordinated and progressed at senior management level by the Group Climate Change and Environment Committee, chaired by one of the five executive officers of the group. Updates on segment plans are provided by the Group CO2 Technology Committee, and on stakeholder expectations and engagement by the group communications, corporate responsibility, strategy, and government affairs teams.

 

SD is integrated into each business segment’s plan, in accordance with its own material SD issues, and quarterly dashboards and key performance indicators (KPIs); reports summarising the state of SD in the business are also discussed by the ARCGS each quarter.

The Board has nominated senior officers to take responsibility for each of the five themes, and these executives are supported by corporate functions covering strategy, technology, R&D, government affairs, corporate responsibility and communications. On the subject of carbon, all these functions are brought together on a regular basis by an executive vice-president, who works closely with the CEO and CFO on these issues. The Company also convenes a number of working groups on particular topics, tracks stakeholder expectations as well as long-term trends and considers their implications for the business.

  • Materiality

    ArcelorMittal’s approach to materiality is based on an ongoing analysis of global stakeholder concerns, commercial challenges and business disruptors.

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  • Stakeholder dialogue

    Meaningful and trustful relationships with our stakeholders are crucial to our business and long-term success.

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Sustainable development risk management

We take into account risks that can affect our business and our stakeholders, including those arising from not achieving our environmental, social and ethical objectives. Short-term risks are assessed through a bottom-up process from site management, that is reported on a quarterly basis to the board, whilst longer-term social, environmental, technological, regulatory and stakeholder trends are assessed on a continuous basis by the corporate strategy, corporate responsibility, government affairs and R&D functions, and this analysis is used to inform our strategic outlook, led by the CEO Office.

Sustainable development reporting and disclosure

We articulate our forward-looking approach to sustainability, how it links to our financial objectives as well as our progress each year through our Integrated Annual Review. Key issues are addressed in our quarterly Sustainable development leadership review. In addition, we publish annual updates on a comprehensive list of sustainability metrics in our Factbook. Recently we have produced a standalone report, the Climate Action report, given the particular importance of this topic to our ability to create value.