Impact and dependencies assessment
While Metalurgica Gerdau has 91,000 hectares of forest set aside for the conservation of biodiversity, no evidence that the company assesses its impacts on nature, including biodiversity, within its own operations could be found in the public domain. The company also has an opportunity to disclose an assessment of its impacts on nature in its supply chain. Furthremore,it does not disclose any assessment of its dependencies on nature within its own operations or of its upstream business relationships.
Key areas and species
Metalurgica Gerdau has an opportunity to disclose the locations that are in or adjacent to areas important for biodiversity within its own operations And its supply chain. While the company states Gerdau’s forest massif is home to thousands of animal species, no evidence that the company discloses species existing in or adjacent to its own locations or to the locations of its suppliers could be found in the public domain. The company also does not disclose the status according to national and international conservation lists of species identified in its own locations.
Ecosystem conversion and restoration
Metalurgica Gerdau does not have a commitment to ensure zero conversion nor a commitment to minimise ecosystem conversion. It also has an opportunity to disclose activities to minimise ecosystem conversion. Furthermore, the company is not committed to restoring ecosystems and does not disclose details and outcomes of ecosystem restoration projects in areas affected by its own operations or by its suppliers.
Resource exploitation and circularity
The company does not report quantitatively on its group-wide circularity performance. While the company discloses activities to improve soil health, it has an opportunity to set a target to improve soil health.
Water
Metalurgica Gedau has a target for water intensity of 5.9 m³/ton of steel produced to be reached in 2021 and reports progress against it. However, the company has a strong opportunity to set a target for absolute withdrawal reduction. While the company reports how much water is withdrawn for its own operations in water-stressed areas, it does not engage with suppliers to reduce water withdrawal. The company reports a decrease in water pollution but does not disclose its processes for managing and monitoring discharge water quality. Furthermore, Metalugirca Gerdau has a strong opportunity to regularly report on water pollution as well as to disclose targets to reduce water pollution. The company also does not disclose a commitment to respect the right to water nor its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.
Solid and air pollution
While Metalurgica Gerdau is reducing the production of hazardous waste, it does not disclose a target to reduce hazardous waste. The company also reports regularly on air quality parameters of emissions of harmful air pollutants but does not report time-bound targets to reduce air pollutants across the most material parts of its value chain.
GHG emissions
While the company has an intensity target to go from 0.93 t CO2e to 0.83 t CO2e, it is unclear if it implies specific scope 1 and 2 emission reductions. Furthermore, no sufficient information could be found beyond the claim of becoming carbon neutral by 2050. Metalurgica Gerdau has a strong opportunity to set a scope 1 and 2 emissions target aligned with a 1.5-degree trajectory and report against it. The companyalso has an opportunity todisclose a time-bound target to reduce its scope 3 emissions aligned with a 1.5-degree trajectory and report against it.
Invasive species
The company has not identified any activities that could lead to the introduction of invasive alien species in its own operations.
