Ternium

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified.

No leading practices were identified for this company.

Ternium discloses a medium-term goal to achieve a 20% reduction in scope 1 and 2 emissions intensity at its steelmaking sites by 2030 compared to 2018 levels. However, its climate actions are detailed only up to 2030. In addition, Ternium has not publicly disclosed emissions intensity data of purchased steel for its operations over the past 3-5 years.

Ternium aims to cut emissions intensity by 20% at its steelmaking sites by 2030, using 2018 as a baseline, and has set up key performance indicators to monitor progress. Oversight of the company’s climate strategy rests with its vice-chairman. Further, the company has conducted climate scenario analyses to inform its approach. The company has performed climate scenario analysis to shape its strategy and has invested in decarbonisation, but it lacks detailed financial projections or viability assessments. The company’s vice-chairman is responsible for overseeing the climate strategy. Regardless, the strategy lacks a well-defined timescale or stakeholder feedback process. Also, the company provides no information on the executive incentives related to achieving its climate goals. All of this indicates a need for more thorough planning and reporting of its climate approach.

Ternium has not publicly disclosed its R&D expenditure for the past three years. Additionally, there is a lack of quantitative data regarding the company’s investment in low-carbon technologies, in particular a breakdown of its investments in mature- and non-mature climate technologies. No company activity has been observed related to patenting of low-carbon technologies.

Ternium’s sustainable sourcing policy requires its suppliers to proactively address climate change, yet its procurement templates lack specific low-carbon requirements. Further, there’s no evident strategy through which the company encourages clients or customers to reduce their emissions. Nor is there evidence of the company having a policy to engage with trade or industry associations on climate matters. These are all potential areas where the company can expand its environmental strategy.

Ternium has committed to a medium-term goal of achieving a 20% reduction in scope 1 and 2 emissions intensity at its steelmaking sites by 2030 compared to 2018. However, it lacks long-term commitments towards carbon neutrality by 2050.

Ternium has constructed a wind farm to replace a significant portion of its purchased electricity, aligning with renewable energy goals to meet the Paris Agreement. However, the lack of evidence regarding the creation or expansion of other low-carbon business models, or comprehensive actions to decarbonise its existing activities, raises concerns about the company’s overall commitment to broader sustainability initiatives beyond energy sourcing.

Ternium has supplied some of the data needed for emissions intensity calculations, but the information is insufficient to indicate a consistent downward trend in emissions over time.

Ternium discloses that its construction of a wind farm will replace approximately 65% of the electricity currently purchased from third parties. However, there is no evidence that the company creates or expands other low-carbon business models or implements actions to decarbonise activities within its existing business models.

Ternium aims to reduce emissions intensity at its steelmaking sites by 20% by 2030, with established key performance indicators and oversight by the vice-chairman. However, it only outlines its climate actions until 2030 and lacks a long-term strategy. While climate scenario analysis shapes its approach and it undertakes investments focusing on decarbonisation, it lacks detailed financial projections and stakeholder feedback processes. This highlights a need for Ternium to enhance comprehensive planning and reporting for its climate strategy.

The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. Furthermore, no evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.  The company discloses the actions it takes to provide re- and up-skilling and training opportunities for workers and affected stakeholders. For instance, it has an online university platform that enables employees to track their educational progress and choose from a wide range of in-house and external courses, with 98% of employees recieving training and upskilling. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to re- or up-skill.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to 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, however, 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 of its business relationships. However, no evidence was found of 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 the company’s required working hours. The company discloses some indicators of workforce diversity, including gender. However, no relevant disclosure was found of additional indicators of workforce diversity. Nevertheless, the company commits to gender equality and women’s empowerment.

The company shows evidence of a publically available policy statement prohibiting bribery and corruption and includes clauses in its contracts with its business relationships. However, no policies or commitments of the company related to key ethical business topics – personal data protection, tax, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.