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1
TABLE OF CONTENTS
Foreword 3
Policy and commitments 4
Steel’s endless life cycle 5
Environmental performance 6
Social performance 8
Economic performance 10
Industry sustainability initiatives 12
Sustainability indicators summary table 14
Contributing organisations and associations 15
3
Policy and commitments
The steel industry believes that sustainable development policy, which was adopted in 2002
development must meet the needs of the present and built on a set of principles established in 1972,
without compromising the ability of future generations and a statement of principles issued in 1992. The
to meet their own needs. Members of worldsteel are policy encompasses seven commitments which have
committed to a vision in which steel is recognised as been translated into an industry-wide Sustainable
a key element of a sustainable world. This is achieved Development Charter. In 2012, 66 members of
by a financially sound industry that takes leadership worldsteel signed the Charter which commits them
in environmental, social and economic sustainability. to improving the social, economic and environmental
Figure 1 below shows the steel industry sustainable performance of their companies.
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4
Steel’s Endless Life Cycle
el p r o du c t i o n
S te
terial e x t r a c
ma tio
aw
ufacturing
Man
R
10
0%
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100% recyclable e- ecyc
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R eu s e a n d r e
2 worldsteel, Sustainable Steel - At the core of a green economy, 2012. 3 Bureau of International Recycling (BIR), World Steel Recycling in Figures
2009-2013, 2014.
5
Environmental Performance
6
Indicator 3: Material efficiency Indicator 4: Environmental management
worldsteel members report that 96% of the raw system (EMS)
materials used on-site to make crude steel are An EMS helps an organisation to monitor and
converted to products and by-products, meaning that improve its environmental performance and to
very little waste goes to landfill (see p. 14, Indicator 3). increase its operating efficiency. Water management
The industry’s goal is zero waste. Material efficiency is and air quality control are key aspects of an effective
also promoted through innovative design for reuse and EMS.
the development of high-strength steels that allow for
dematerialisation (see case study p. 11). According to worldsteel’s sustainability statistics,
in 2013 approximately 90% of steel industry
Recovered by-products can be recycled during employees and contractors worked in EMS
the steelmaking process or sold for use by other registered production facilities (EMAS or ISO 14001
industries. Use of by-products supports the certification), up from 86% in 2003 (see p. 14,
sustainability of the steel industry. It prevents landfill Indicator 4). A number of steel member companies
waste, reduces CO2 emissions and helps preserve achieved 100%. This increasing trend is expected
natural resources. The sale of by-products is also to continue as new and stricter regulations are
economically sustainable. It generates revenues for enforced in countries globally.
steel producers and forms the base of a lucrative
worldwide industry.3
86
84
82
80
03 04 05 06 07 08 09 10 11 12 13
20 20 20 20 20 20 20 20 20 20 20
Figure 4: Environmental management system (EMS) 7 Nippon Steel & Sumitomo Metal Sustainability Report 2013.
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
CO2 25 25 27 30 38 49 45 51 52 50 n/a
Energy 25 25 27 30 38 49 45 51 52 50 n/a
Mat.Eff. 25 27 27 31 25 26 36 38 41 42 44
EMS 26 34 31 35 25 27 36 42 44 43 45
Table 1: Number of reporting companies for Indicators 1 through 4
7
Social performance
5
Injuries / million hours worked
8
Indicator 6: Employee training
Also at worldsteel.org:
Employee training refers to instruction provided to
enhance the skills, capabilities and knowledge of • #lovesteel films - a series of interviews with
employees. Training may involve various types of steel industry employees working in diverse
programmes such as classroom instruction, computer- roles, sharing what they love about their jobs
based training, or on-the-job instruction. Employee • worldsteel Safety and Health Principles
training measures the total days of training per Guidance Book
employee. This indicator does not focus on safety and • worldsteel Safety and Health Excellence
health training, but may include it. For 2013, members Recognition programme brochure
of the steel industry reported 7.8 days of training per
employee (see p. 14, Indicator 6).
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
LTIFR 35 33 36 44 41 64 90 92 89 74(p)*
Training 26 33 28 31 24 26 33 38 39 38 38
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economic performance
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Investments* 31 35 34 36 31 32 38 41 42 40 34
EVD 24 25 34 37 42 42 40
Table 3: Number of reporting companies for Indicators 7 and 8 *Investment in new processes and products
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Indicator 8: Economic value distributed
(EVD) Innovative designs for reuse and
recycling
EVD includes direct and indirect contributions,
regardless of the country’s financial structure e.g. all BlueScope Steel makes products that can be
contributions are captured - whether made directly used in designs for disassembly and reuse.
from the company to the community or indirectly from These are components of a building, or entire
the company through government taxes, shareholder buildings that are designed with the intention
dividends or employee salaries, etc. of reuse rather than demolition. For example,
the MacArthur Centre for Sustainable Living in
For 2013, steel companies reported distributing Australia was designed for disassembly using
582.7 billion US$ to society or 97.3% revenue (see reusable and renewable materials.
p. 14, Indicator 8), directly and indirectly. This figure
includes: The design incorporates whole sheets of steel for
the roofing and much of the walling to maximise
• Operating costs (payments to suppliers, contractors, opportunities for those sheets to be used again
etc.) in the future. When the steel is no longer needed,
• Employee salaries and benefits it can be recycled back into new steel.
• Dividends paid to all shareholders
• Interest payments made to providers of loans
• Payments to government (gross taxes and royalties)
• Community investments (voluntary contributions
and investments of funds in the broader community,
including donations and scholarships, etc.).
Also at worldsteel.org:
• World Steel in Figures 2014
• Steel Solutions in the Green Economy: Investing in development of high-
Wind turbines strength steels
• Steel Solutions in the Green Economy:
FutureSteelVehicle BlueScope Steel has successfully developed
• Steel solutions in the Green Economy: high-strength steel products, so that the same
Affordable social housing function is achieved using fewer raw materials.
This is known as dematerialisation. For example,
roofing that was once manufactured at 0.55
mm thick, is today made from high-strength
Colorbond steel 0.42 mm think – a reduction of
24%.
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Industry Sustainability Initiatives
A judging panel consisting of internal and external Recycling is at the heart of the steel industry, as
scrap steel is a key raw material for steelmaking.
judges selects the winner based on:
With some 70 disused ships temporarily moored
• the level of the initiative’s impact or benefits (for the at Moroccan ports - hampering trade and posing
company and society) in each of the three areas of an environmental hazard – ArcelorMittal’s Sonasid
site began exploring the potential benefits that a
sustainability – economic, environmental and social
local shipbreaking industry could offer to the local
• the extent of communication and outreach – how
economy and environment as well as for its site by
widely the initiative is communicated to stakeholders ensuring the availability of scrap and simultaneously
and/or the level of community/stakeholder outreach reducing the carbon intensity of its steelmaking
related to the initiative. operations.
The 2014 finalists for this award are presented here. Beginning with a pilot project in 2012 to dismantle a
The Excellence in Sustainability award winner will be vessel, Sonasid was able to ensure that international
announced at worldsteel’s 48th annual conference in social and environmental standards for the
Moscow on 6 October 2014. recycling of ships (the Hong Kong Convention) were
embedded in the development of this new local
industry from the start.
The preparatory work to develop the shipbreaking
industry in Morocco began in 2013 with plans to
commence shipbreaking activity there by 2015 with
the construction of a shipbreaking unit.
Sonasid’s use of scrap steel instead of DRI as a raw
material is expected to deliver carbon savings of 0.8 t
CO2 for every tonne of steel produced and will entail
further emission reduction of 3000t CO2/year through
limiting transportation of scrap from Europe. Existing
end-of-life ships in Morocco provide the potential
for the local scrap industry to increase by 20%. The
disappearance of disused ships from Morocco’s
ports is leading to an improvement in the country’s
coastline, a vital asset for the country’s economy.
12
JSW Steel: Promoting vocational education through local training centres
India has a goal of transforming around 500 million Indian youths into skilled technicians through vocational
education by the year 2022. In order to help achieve this target, the OP Jindal Centre at Vasind is running a
vocational programme for the youth. The Vasind site is a 100% subsidiary of JSW Steel. Most of the youth trained
at the Centre are from economically marginalised families.
So far, 1,674 students have undergone vocational training in different trades, including technical studies
(electronics, welding, IT etc.), but also tailoring, fashion design and machine embroidery to name just a few.
The JSW Foundation initiated the vocational project back in 2003 by conducting an extensive study covering 30
nearby villages to assess the need for technical education and other trades.
In 2013, the JSW Foundation conducted a survey to assess the impact of these courses in the lives of students.
So far, 81% of the students covered by the survey are
employed and 67% are using skill sets learnt to earn their
livelihood. Some 24% of the respondents are self-employed
using the skill set and 9% of them are pursuing further
studies through apprenticeships.
The response and success spawned similar efforts at other
sites including JSW Steel Vijayanagar, which set up its
vocational technical centre in 2008.
Through this initiative, JSW is strengthening their community
engagement efforts and empowering the local youth.
13
Sustainability Indicators Summary Table
In 2004 (when we first reported 2003 data), 42 steel companies participated with a rise to 149 companies (96
directly and an additional 53 via 6 associations) in 2014 (for fiscal year 2013). Crude steel produced by companies
who reported on one or more indicators for fiscal year 2013 was 640 Mt, representing 40% of global crude steel
production. Values in Table 4 may vary slightly from previous editions of this sustainability report due to updates
received from individual companies.
Environmental Performance
1 Greenhouse gas emissions (tonnes CO2/tonne crude steel cast)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1.6* 1.7* 1.7 1.7 1.8 1.8 1.8 1.8 1.7 1.8 1.8(p)
2 Energy intensity (GJ/tonne crude steel cast)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
19.0* 19.1* 20.0 20.6 20.8 20.8 20.1 20.7 19.6 20.0 20.0(p)
3 Material efficiency (% of materials converted to products and by-products)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
97.1 96.1 97.9 97.2 97.9 98.0 97.9 97.7 94.4 96.5 96.4
4 Environmental management systems (EMS) (% of employees and contractors working in EMS-registered
production facilities)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
86.4 91.9 84.0 85.5 85.1 86.6 88.9 87.6 89.9 89.5 90.2
Social Performance
5 Lost time injury frequency rate (injuries/million hours worked)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
4.8 4.1 4.6 4.4 3.1 2.5 2.3 1.9 1.5 1.6(p)
6 Employee training (training days/employee)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
8.1 9.9 12.1 10.5 11.1 8.0 8.5 6.7 7.7 7.9 7.8
Economic Performance
7 Investment in new processes and products (percent of revenue)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
6.0 6.2 6.7 7.8 7.9 8.3 10.2 8.8 8.3 10.3 8.6
8 Economic value distributed (billion US$:1 row; percent of revenue: 2 row)
st nd
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
323.8 308.3 470.7 477.0 617.9 642.8 582.7
83.0 68.2 92.3 91.7 93.1 97.4 97.3
14
Contributing organisations and associations
The 96 organisations and six associations listed below contributed data for one or more of the 2013 indicators.
The six associations provided data for an additional 53 organisations. Subsidiary companies are listed separately
from their group (or parent) company if they contributed additional data not submitted by the group.
worldsteel.org
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