ArcelorMittal

No leading practices were identified for this company.

ArcelorMittal assesses the impacts of the low-carbon transition and physical risks to its operations for different climate, policy and technological scenarios, including a 1.5°C scenario, following the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).

No leading practices were identified for this company.

No leading practices were identified for this company.

ArcelorMittal has set a target to reduce its scope 1 and 2 emissions by 25% by 2030 globally, and by 35% for its operations in Europe, compared to 2018. While the company has committed to achieving net-zero emissions globally by 2050, its net-zero target could not be assessed as it plans to use an unknown percentage of carbon offsets.

ArcelorMittal has a low-carbon transition plan that applies to all its business units and operations but not to its supply chain, which is a missed opportunity. Furthermore, while the company commits to reviewing its transition plan, it has not specified a timeline to do so. The company can demonstrate leadership by consistently reporting the proportion of its total activities that are aligned with the EU Taxonomy.

ArcelorMittal invested USD 286 million in research and development (R&D) in 2022. The company discloses investments in the development of several low-carbon products; however, it does not disclose what proportion of its R&D expenditure has been invested in these technologies. R&D expenditure on low-carbon technologies will be essential for ArcelorMittal to be successful in a low-carbon economy.

Although ArcelorMittal has implemented a supplier engagement strategy, this does not specifically include emissions reduction or other low-carbon requirements. The company should create quantified emissions targets providing clear direction to its entire supply chain. Further, the company reports that it integrates emissions reduction targets into its client engagement strategy but does not quantify its requirements.

ArcelorMittal has committed to reducing its carbon emissions intensity by 25% globally, and by 35% in Europe, by 2030 compared to a 2018 baseline. These targets cover its scope 1 and 2 emissions.

ArcelorMittal aims to achieve 10% of its EAF steelmaking capacity through scrap recycling by 2030, compared to 3% in 2022. The company will realise this goal by establishing new and improved sourcing and processing facilities.

In 2022, ArcerlorMittal was the second-largest crude steel producer globally, with about 83% of its production capacity running on blast furnaces that use coke as fuel.

ArcelorMittal spent USD 286 million on R&D in 2022 but did not disclose how much was dedicated to low-carbon technologies. The company has announced its new low-carbon product brand, XCarb™, focused on carbon-neutral steel. Nevertheless, ArcelorMittal’s current business model relies heavily on carbon-intensive fuels.

ArcelorMittal has announced a net-zero roadmap as part of its decarbonisation strategy. This plan applies to all its business units and operations and it’s informed by climate scenario analysis that has considered the implications of a 1.5°C scenario.

The company commits to engaging in social dialogue with workers and unions. It also discloses the categories of stakeholders it engages with on a just transition, including trade unions, governments, suppliers, customers and employees. Furthermore, the company demonstrates ongoing social dialogue and meaningful engagement with affected stakeholders. However, no evidence was found that it engages in ongoing social dialogue and meaningful engagement on the aspects of a just transition.
The company incorporates social dialogue and stakeholder engagement in its just transition planning. Furthermore, the company shows evidence of a time-bound, measurable indicator, stating it plans to create 100 direct job opportunities by 2024. However, no evidence was found that the company has a set of time-bound, measurable indicators to mitigate the social impacts of the low-carbon transition on affected stakeholders and its business relationships.

The company has a public commitment stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. However, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups.
No relevant disclosure was found of the company’s assessment of employment dislocation risks. Further, no public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies the impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to their social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does not have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment from its business relationships. However, no evidence was found of the company having a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of its required working hours. There is no evidence that the company discloses indicators of workforce diversity. Nevertheless, the company commits to promoting gender equality and women’s empowerment.

The company commits to protecting personal data, but no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax it pays in each relevant jurisdiction. The company has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. However, it does not have a lobbying and political engagement policy, and it does not specify that it does not make political contributions. Additionally, no relevant disclosure was found of the company’s expenditure on lobbying activities.