Ternium

No leading practices were identified for the company in the governance and strategy area.

No leading practices were identified for the company in the ecosystems and biodiversity area.

No leading practices were identified for the company in the social inclusion and community impact area.

Sustainability strategy and accountability
Ternium discloses its process for identifying and prioritising its most relevant sustainability impacts as well as the outcome of this process, in relation to its sustainability strategy. While the company discloses some sustainability targets on decarbonization and reports against the targets, no evidence that the company has group wide targets on key sustainability topics for the most material parts of its value chain based on the SBTN Sectoral Materiality Tool could be found in the public domain.
Although Ternium discloses its CEO’s responsibility for climate change governance, no evidence that the company has assigned responsibility for the social aspect of sustainability policy. Although the company discloses its Board of Directors’ oversight responsibility for climate change governance, no evidence that the company has assigned oversight responsibility for the social aspect of sustainability policy. No evidence was found that the company links performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. The company does not disclose whether its highest governance body has expertise regarding nature-related topics.

Stakeholder engagement
Ternium does not disclose how it engages with stakeholders, nor the issues it raises during such activities.

Lobbying
Ternium does not report on its lobbying and advocacy practices on nature-related issues, nor whether these activities align with its sustainability strategy.

Impact and dependencies assessment
Ternium has not holistically assessed its impacts or how it depends on nature, including biodiversity. It has an opportunity to start such an assessment across its value chains, focused on quantification of its impacts or dependencies.

Key areas and species
Although Ternium mentions several areas important for biodiversity, it is unclear whether the company identifies all such areas, the company does not disclose key species or all areas important for biodiversity affected by its operations or suppliers. It has an opportunity to increase its transparency.

Ecosystem conversion and restoration
Ternium does not disclose a commitment to ensure zero conversion. The company does not disclose activities and time-bound targets to achieve conversion-free supply chains. The company does not disclose a commitment or activities to minimise ecosystem conversion.
Ternium does not disclose a commitment to restore ecosystems. The company discloses details and outcomes of ecosystem restoration projects in areas affected by its own operations or by its suppliers. The company discloses its practice of restoration with 400,000 trees planted in former mining operations.

Resource exploitation and circularity
No evidence was found regarding Ternium’s efforts to work towards a circular economy or which organisms it exploits. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets. The company does not disclose efforts to improve soil health.

Water
Ternium demonstrates it is reducing water withdrawal in its own operations. The company does not disclose a time-bound target to reduce water withdrawal across its own operations. The company discloses that 11% of water withdrawal is in water-stressed areas. The company does not engage with suppliers to reduce water withdrawal. The company discloses its practice of reducing water quality pressures by upgrading the water treatment plant to separate particulate matters. While the company discloses its monitoring of water discharge quality, it is unclear with the detailed process of such management and monitoring. The company does not regularly report on water pollution. The company does not disclose targets to reduce water pollution.
Ternium does not disclose a commitment to respect the right to water. The company does not disclose 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
Ternium is reducing the production of hazardous waste. No evidence that the company reduces plastic use and waste in its own operations was found. The company does not report on the amount of plastic waste generated and proportions directed from or to disposal. The company reports regularly on air quality parameters of emissions of harmful air pollutants, disclosing its amount of particular matter and nitrogen oxides as its air quality parameters. The company does not report time-bound targets to reduce air pollutants across the most material parts of its value chain.

GHG emissions
No evidence that Ternium reduces its scope 1, 2 and 3 greenhouse gas emissions compared to the previous year. Although the company sets a target of reducing scope 1 and 2 emission intensity, no evidence that this will lead to absolute emission reduction. The company also does not set a target of reducing scope 3 emissions.

Invasive species
Ternium has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Safe, clean, healthy and sustainable environment
Ternium does not disclose a commitment to respecting local communities’ right to a safe, clean, healthy and sustainable environment or to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Indigenous peoples’ and land rights
Ternium does not disclose a commitment to respecting Indigenous Peoples’ rights or land rights of local communities.

While Ternium conducts a materiality assessment to identify the main risks to the busines, it has an opportunity to specify that it conducts human rights due diligence that includes a process for identifying human rights risks and impacts through its business relationships. The company has an opportunity to describe a process for assessing the human rights risks it has identified and to disclose what it considers to be its salient human rights issues. A description of this process would include how relevant factors are considered, such as geographical, economic and social factors. No evidence was found that the company has a global system to act on its salient human rights issues.
While Ternium discloses the categories of stakeholders it engages with generally on sustainability issues, it is not clear if these stakeholders are those whose human rights have been or may be affected by its activities. No evidence that the company provides examples of its engagement with stakeholders whose human rights have been or may be affected by its activities was found.

Ternium has a publicly available policy statement which shows it is committed to respecting the health and safety of workers and that it expects its suppliers to commit so as well. The company has an opportunity to disclose a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage. The company has an opportunity to describe how it determines a living wage for the regions where it operates.
Ternium discloses the proportion of its total direct operations workforce covered by collective bargaining agreements. While the company states that it encourages its suppliers to respect employees’ right to freedom of association and the right to collective bargaining, it has an opportunity to describe how it works to support the practices of its suppliers in relation to those.

Ternium has an opportunity to publish a global tax strategy and should assign responsibility for this strategy to an executive-level individual or body.  The company takes steps to identify and address bribery and corruption. No evidence that the company includes anti-bribery and anti-corruption clauses in its contracts with business relationships was found. The company outlines its approach to lobbying and political engagement but does not formalise this approach in a public policy document. No evidence that the company has a publicly available policy statement that specifies that it does not make political contributions was found.