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SuStainable SteelPolicy and indicators 2014

About the World Steel Association

The World Steel Association (worldsteel) is one of the largest and most dynamic industry associations in the world. worldsteel represents approximately 170 steel producers (including 9 of the world’s 10 largest steel companies), national and regional steel industry associations, and steel research institutes. worldsteel members represent around 85% of world steel production. worldsteel’s mission is to act as the focal point for the steel industry, providing global leadership on all major strategic issues affecting the industry, particularly focusing on economic, environmental and social sustainability.

Sustainable Steel Policy and Indicators 2014

© World Steel Association 2014

ISBN 978-2-930069-75-3

Cover image: Webb Bridge, Australia designed by Denton Corker Marshall, in collaboration with artist Robert Owen

Design by double-id.com

Foreword 3

Policyandcommitments 4

Steel’sendlesslifecycle 5

Environmentalperformance 6

Socialperformance 8

Economicperformance 10

Industrysustainabilityinitiatives 12

Sustainabilityindicatorssummarytable 14

Contributingorganisationsandassociations 15

TABLE OF CONTENTS

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Whether in lighter, more efficient vehicles or renewable energy generation, steel is essential to the modern world, and its use is critical in enabling man to move towards a sustainable future. Steel is also necessary for new, highly efficient power stations and the construction of smart electrical grids, transport infrastructure development, energy-efficient residential housing and commercial buildings.

More than 1.6 billion tonnes of steel are produced every year. Currently, 47% of steel is produced and used in mainland China. There will be continuing growth in the volume of steel produced, particularly in developing areas such as Latin America, Asia, Africa and the Indian sub-continent, where steel will be vital in raising the welfare of developing societies. In these regions, worldsteel estimates that 60% of steel consumption will be used to create new infrastructure.

Industry commitment - a decade of sustainability reporting

Sustainability reporting at a global level is one of the major efforts that the steel industry undertakes to manage its performance, demonstrate its commitment to sustainability and to enhance transparency. We are one of the few industries that report at the global level and have done so since 2004 when the first sustainability report was published.

This annual brochure is dedicated to our stakeholders. It is the result of a joint effort between our members as well as non-member steel companies and associations. Our aim is to inform the public about the environmental, social and economic performance of the steel industry measured by a set of 8 sustainability indicators.1 This issue compiles data from 2003 to 2013 to demonstrate trends over the past decade.

1 The selected indicators were developed by worldsteel members in consultation with external organisations in 2003. They are applicable to steel companies worldwide. The methodology for some indicators has been further developed since then. Current calculation methodology for all indicators is available at worldsteel.org.

Verification and coverage

Every year our aim is to increase global tonnage coverage and the number of companies reporting to improve representativeness. The reported data are reviewed and verified by worldsteel staff to ensure the accuracy and consistency of figures. The scope of the sustainability report is steel plant sites, including R&D facilities, for the environmental and social indicators and consolidated financial data for the economic indicators.

The coverage over the years reflects the steel industry’s commitment and dedication to sustainability reporting. Reporting is voluntary. In 2004, 42 steel companies participated with a rise to 149 companies (96 directly and an additional 53 via 6 associations) in 2014. 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.

The increase in participation is not equal across all indicators but companies are nevertheless encouraged to continue their participation, or to start contributing even with fewer than 8 indicators, as it allows them to monitor and improve their performance for those that they are able to report. We continue to encourage full reporting.

We recognise that continued engagement and collaboration with our stakeholders are essential as we strive to become a fully sustainable industry in a sustainable world. We welcome your feedback and ideas.

Edwin Basson Director General World Steel Association

FOrEwOrd

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POLICy ANd COmmITmENTS

The steel industry believes that sustainable development must meet the needs of the present without compromising the ability of future generations to meet their own needs. Members of worldsteel are committed to a vision in which steel is recognised as a key element of a sustainable world. This is achieved by a financially sound industry that takes leadership in environmental, social and economic sustainability. Figure 1 below shows the steel industry sustainable

development policy, which was adopted in 2002 and built on a set of principles established in 1972, and a statement of principles issued in 1992. The policy encompasses seven commitments which have been translated into an industry-wide Sustainable Development Charter. In 2012, 66 members of worldsteel signed the Charter which commits them to improving the social, economic and environmental performance of their companies.

Figure 1: Steel industry sustainable development policy

Environmental protection

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Optimise the eco-efficiency of our products

through the product life-cycle, including increased

resource and energy efficiency in the production

of steel and during the use of steel

products. We are committed

to the promotion of the recovery,

reuse and recycling of steel.

Foster the well-being of employees

in the steel industry and provide them

with a safe and healthy

working environment.

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by promoting values and initiatives

that show respect for the people

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Engage our stakeholders and independent third parties

in constructive dialogue to help fulfill our sustainable

development commitments.

Build on our knowledge

of sustainability

and willingly share it with others.

We will be open and active in

our comm

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steel companies and organisations

in the supply chain to implem

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sustainable practices.

Source: worldsteel

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Once steel is produced, its life cycle is potentially endless because it is easy to recover with magnets and 100% recyclable without loss of quality. This makes it a permanent resource for society – as long as it is recovered at the end of each product life cycle.

Durableandreusable

Steel’s durability is one of the key properties that make steel a sustainable material, allowing for the reuse of countless products - from paper clips to automotive components and rail tracks. A wide range of steel products, like automotive engines and wind turbines, can be remanufactured for reuse, taking advantage of the durability of the steel components. Remanufacturing restores durable used products to like-new condition. Both reuse and remanufacturing extend the overall product life and thereby save valuable resources.2

STEEL’S ENdLESS LIFE CyCLE

100% recyclable

pre-consumersteel scrap

Raw material extraction

Steel production

End-of-life and recycling

Manufacturing

Use

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100% recyclable post-consumer steel scrap

Figure 2: Steel life cycle phases and recycling Source: worldsteel

100%Recyclable

Its recyclability is another key factor contributing to steel being a sustainable material. 100% of scrap from steel production and downstream processing is collected and recycled directly into steel production. Post-consumer scrap has to be collected and prepared (for example by shredding and baling). Because of the high value of steel scrap, there are economic incentives that help to maintain high recycling levels, in addition to environmental benefits.

Steel is the most recycled material in the world, with over 650 Mt recycled annually, including pre- and post-consumer scrap.3

Recycling accounts for significant energy and raw material savings: over 1,400 kg of iron ore, 740 kg of coal, and 120 kg of limestone are saved for every tonne of steel scrap made into new steel.

3 Bureau of International Recycling (BIR), World Steel Recycling in Figures 2009-2013, 2014.

2 worldsteel, Sustainable Steel - At the core of a green economy, 2012.

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ENVIrONmENTAL PErFOrmANCE

Environmental protection

Steel manufacturing has a variety of impacts on the environment. The main impacts come from the use of energy and raw materials, which result in the emission of carbon dioxide (CO2), sulfur oxides (SOx), nitrogen oxides (NOx) and dust to air, as well as water consumption and associated emissions.

The steel industry is committed to act responsibly to minimise or prevent negative environmental impacts. Based on this commitment, our environmental indicators track our performance in greenhouse-gas emissions, energy intensity, implementing environmental management systems and using resources efficiently.

worldsteel has developed a global and regional life cycle inventory database including “cradle-to-gate” environmental inputs and outputs tracking resource use (raw materials, energy and water) and emissions to land, air and water for 15 steel products.

worldsteel also produces technical reports to help improve the environmental performance of steel plants around the globe. Most of these reports are kept up-to-date through internal online sharing and benchmarking systems. Examples of topics covered are:

• air quality• by-products• energy use• maintenance and reliability• raw materials• water management.

Indicators 1 and 2: Greenhouse-gas emissions and Energy intensity

The greenhouse gas of most relevance to the world steel industry is carbon dioxide (CO2), as it makes up approximately 93% of all steel industry greenhouse gas emissions.4 On average, 1.8 tonnes of carbon dioxide are emitted for every tonne of steel produced (see p. 14, Indicator 1).

Technological advancements over the past 25 years have enabled substantial reductions in CO2 emissions from steel production. These advancements include:

• energy efficiency in the steelmaking process• improved steel recycling rates • increased recycling and utilisation of by-products

from steelmaking• extensive process automation for precise control

of steelmaking processes.

The efficient use of energy has always been one of the steel industry’s key priorities. Cost is a key incentive for this, considering that energy purchases account for 20-40% in basic steel production.5, 6 Over the last 50 years, the steel industry has reduced its energy consumption per tonne of steel produced by 60% (see Figure 3). On average, energy intensity is currently at 20 GJ per tonne of crude steel cast (see p. 14, Indicator 2).

Modern steel production processes are now very close to their theoretical minimum energy and CO2 intensity per tonne of steel output. While further medium-term improvements will be made through technology transfer and spread of best practice, to make a significant difference in energy and CO2 intensity in the long term, new low-carbon breakthrough steelmaking technology is required (see worldsteel position paper: Steel’s contribution to a low carbon future, 2014).

Figure 3: Indexed global energy consumption/tonne of crude

steel production

Energy consumption (%)

19601965

19701975

19801985

19901995

20002005

20102013

0

20

40

60

80

100

4 worldsteel LCA Methodology Report, 2011.

5 The State-of-the-Art Clean Technologies (SOACT) for Steelmaking Handbook, 2nd Edition Asia Pacific Partnership for Clean Development and Climate, 2010. 6 Saving One Barrel of Oil per Ton (SOBOT), American Iron and Steel Institute, 2005.

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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

Figure 4: Environmental management system (EMS)

Indicator 3: material efficiency

worldsteel members report that 96% of the raw materials used on-site to make crude steel are converted to products and by-products, meaning that very little waste goes to landfill (see p. 14, Indicator 3). The industry’s goal is zero waste. Material efficiency is also promoted through innovative design for reuse and the development of high-strength steels that allow for dematerialisation (see case study p. 11).

Recovered by-products can be recycled during the steelmaking process or sold for use by other industries. Use of by-products supports the sustainability of the steel industry. It prevents landfill waste, reduces CO2 emissions and helps preserve natural resources. The sale of by-products is also economically sustainable. It generates revenues for steel producers and forms the base of a lucrative worldwide industry.3

Some companies report a by-products utilisation and recycling rate as high as 99%.7

Indicator 4: Environmental management system (EmS)

An EMS helps an organisation to monitor and improve its environmental performance and to increase its operating efficiency. Water management and air quality control are key aspects of an effective EMS.

According to worldsteel’s sustainability statistics, in 2013 approximately 90% of steel industry employees and contractors worked in EMS registered production facilities (EMAS or ISO 14001 certification), up from 86% in 2003 (see p. 14, Indicator 4). A number of steel member companies achieved 100%. This increasing trend is expected to continue as new and stricter regulations are enforced in countries globally.

80

82

84

86

88

90

92

94% of employees and contractors working in registered production facilities

20032004

20052006

20072008

20092010

20112012

2013

7 Nippon Steel & Sumitomo Metal Sustainability Report 2013.

Also at worldsteel.org:

• Steel’s low carbon future – position paper • Global and regional life cycle inventory data

for 15 steel products • Local environmental issues: How steel

companies manage water and air quality• Climate Action Programme • Fact sheets on Steel and Energy, Raw

Materials, and By-products

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Employee safety and health

Safety and health is the number one priority for the steel industry. worldsteel’s policy is to help all our members achieve an accident-free workplace as there is no area, process or type of work that cannot be accident-free.

This is supported through:

• use of industry safety and health principles • sharing experience and good practice – through

seminars, workshops and development of an alert network to share serious incidents

• annual reporting on safety performance – including LTIFR (Indicator 5)

• safety and health excellence recognition programme – showcasing member initiatives and projects

• an annual global Steel Safety Day.

Indicator 5: Lost time injury frequency rate (LTIFr)

One of the most common indicators of safety is lost time injury frequency rate. A lost time injury is an incident that causes an injury that prevents the person from returning to his next scheduled shift or work period. Figure 5 shows a steady and notable decline in the number of lost time injuries, demonstrating the industry’s commitment to eliminating accidents and injuries. Reporting by member companies on this indicator has more than doubled since 2004.

In 2014, worldsteel and its members launched an annual global Steel Safety Day to continue working together with all involved in the industry to create a safer work environment in the steel industry.

Participating companies carried out a safety audit across the entire employee group from CEOs to engineers to managers, operators and service providers. The audit focused on identifying the hazards for the main causes of safety incidents within the steel industry and setting up action plans to manage the hazards and risks for each site.

More than 480,000 people from 373 sites participated in the first industry-wide safety audit on 28 April this year including 39 member companies, representing 53% of worldsteel members’ production.

SOCIAL PErFOrmANCE

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20032004

20052006

20072008

20092010

20112012

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Figure 5: Lost time injury frequency rate indicator results

Employee development and training

The steel industry is committed to offer employees the opportunity to further their education and develop their skills. Not only is this a way of enhancing quality of work and productivity but it also boosts employee satisfaction. worldsteel measures performance in this area with the employee training indicator. Training and knowledge management are also enhanced through the worldsteel steeluniversity initiative.

safetyDay

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steeluniversity and 8th steelChallengesteeluniversity, a worldsteel initiative, is a web-based industry university delivering education and training to current and future employees of steel companies and related businesses. steeluniversity includes courses on steel manufacturing, steel applications, ferrous metallurgy, steel business, environment and safety. steeluniversity offers more than 30 training modules via its online learning system steelLearning+ accessible from the website steeluniversity.org. Students from over 400 universities and employees from more than 100 companies have used steeluniversity to supplement their education.

steeluniversity sponsors an annual steelChallenge to test students and young industry professionals on their knowledge of steel manufacturing and use of one of the advanced simulations offered in steelLearning+. Participants compete against other teams in a two-round competition, with regional champions going on to compete in the world championship round held in Brussels, Belgium each February.

The winners in the industry category for the 8th steelChallenge 2013/4 were Kausik Tamuli and Animesh Kumar Singh of Tata Steel Ltd. in India. The winners of the student category were Ezio Agustin Casalini and Francisco Brañas of Universidad Nacional del Sur in Argentina.

The 9th steelChallenge is scheduled for November 2014 when the regional champions will be identified. The winning entrants will be invited to take part in the world championships in February 2015.

Indicator 6: Employee training

Employee training refers to instruction provided to enhance the skills, capabilities and knowledge of employees. Training may involve various types of programmes such as classroom instruction, computer-based training, or on-the-job instruction. Employee training measures the total days of training per employee. This indicator does not focus on safety and health training, but may include it. For 2013, members 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

Table 2: Number of reporting companies for Indicators 5 and 6

(p) = preliminary; data collection in progress

* In addition to 74 worldsteel member companies, 54 non-member companies reported via 4 regional associations.

Also at worldsteel.org:

• #lovesteel films - a series of interviews with steel industry employees working in diverse roles, sharing what they love about their jobs

• worldsteel Safety and Health Principles Guidance Book

• worldsteel Safety and Health Excellence Recognition programme brochure

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Table 3: Number of reporting companies for Indicators 7 and 8 *Investment in new processes and products

Investing in innovation

Innovation is at the heart of the steel industry. Over 75% of the steels in use today did not exist 20 years ago. Approximately 60% of the steel grades used to manufacture automobiles today were introduced in the last 10 years. Investing in the development of high-strength steels also allows for reuse and dematerialisation of steel products which saves resources (see case study p.11).

The steel industry must ensure the continued investment in the development of new steel products and production technologies. One of the indicators used to track this is Investement in new processes and products, Indicator 7.

Indicator 7: Investment in new processes and products

Investment in new processes and products is the sum of capital expenditure and research and development expenditure expressed as a percentage of revenue, where:

• Capital expenditure refers to money used to acquire or improve long-term assets such as property, plants, and new equipment

• Research and development expenditure refers to money used to develop new scientific or technical knowledge to develop new products, processes, and services.

Figure 6 shows a steady increase in investment in new processes and products between 2003 and 2013. Member companies reported an average value of 8.6% of revenue for investments in new processes and products for 2013 compared with 6.0% of revenue in 2003.

Contributing to society

The steel industry’s greatest value contribution is providing society with steel products that are indispensable in sustaining and improving our modern world and standard of living. There is hardly any object that we use that does not contain steel or that was not created with equipment made of steel. From common kitchen utensils to automobiles and wind turbines, steel’s durability and strength add value to society.

While it is difficult to quantify this added value, one indicator used by worldsteel aims to quantify the value distributed to society by the steel industry: Economic value distributed, Indicator 8.

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

0

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12 % of revenue

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Figure 6: Investment in new processes and products indicator results

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Indicator 8: Economic value distributed (EVd)

EVD includes direct and indirect contributions, regardless of the country’s financial structure e.g. all contributions are captured - whether made directly from the company to the community or indirectly from the company through government taxes, shareholder dividends or employee salaries, etc.

For 2013, steel companies reported distributing 582.7 billion US$ to society or 97.3% revenue (see p. 14, Indicator 8), directly and indirectly. This figure includes:

• Operating costs (payments to suppliers, contractors, etc.)

• Employee salaries and benefits• 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.).

Innovative designs for reuse and recycling

BlueScope Steel makes products that can be used in designs for disassembly and reuse. These are components of a building, or entire buildings that are designed with the intention of reuse rather than demolition. For example, the MacArthur Centre for Sustainable Living in Australia was designed for disassembly using reusable and renewable materials.

The design incorporates whole sheets of steel for the roofing and much of the walling to maximise opportunities for those sheets to be used again in the future. When the steel is no longer needed, it can be recycled back into new steel.

Investing in development of high-strength steels

BlueScope Steel has successfully developed high-strength steel products, so that the same 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%.

Steel framing is another example of design innovation that maintains functionality with less material use. Some house framing that used to be 1.20 mm thick is only 0.6 mm thick today – a saving of 50%.

Also at worldsteel.org:

• World Steel in Figures 2014 • Steel Solutions in the Green Economy:

Wind turbines • Steel Solutions in the Green Economy:

FutureSteelVehicle • Steel solutions in the Green Economy:

Affordable social housing

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Steelie Award: Excellence in Sustainability

Every year, worldsteel hosts an awards ceremony at its annual conference in October to recognise the contributions and achievements of companies and individuals in various categories including best website, communications, life cycle assessment, sustainability etc.

The Excellence in Sustainability award seeks to recognize a specific sustainability initiative or programme that has made a positive impact, or provided benefits in all three areas of sustainability – including economic, environmental and social performance.

A judging panel consisting of internal and external judges selects the winner based on:

• the level of the initiative’s impact or benefits (for the company and society) in each of the three areas of sustainability – economic, environmental and social

• the extent of communication and outreach – how widely the initiative is communicated to stakeholders and/or the level of community/stakeholder outreach related to the initiative.

The 2014 finalists for this award are presented here. The Excellence in Sustainability award winner will be announced at worldsteel’s 48th annual conference in Moscow on 6 October 2014.

INduSTry SuSTAINABILITy INITIATIVES

Arcelormittal Sonasid: responsible ship dismantling in morocco for steel recycling

Recycling is at the heart of the steel industry, as scrap steel is a key raw material for steelmaking. With some 70 disused ships temporarily moored at Moroccan ports - hampering trade and posing an environmental hazard – ArcelorMittal’s Sonasid site began exploring the potential benefits that a local shipbreaking industry could offer to the local economy and environment as well as for its site by ensuring the availability of scrap and simultaneously reducing the carbon intensity of its steelmaking operations.

Beginning with a pilot project in 2012 to dismantle a vessel, Sonasid was able to ensure that international social and environmental standards for the 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.

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Gerdau: Improving the sustainability of their scrap supply chainGerdau has been conducting the Base of the Pyramid (BOP) project in partnership with the public sector and non-profit organisations since 2007. The project aims to formalise the scrap recycling activities in Brazil, Chile, Peru and Uruguay, countries where scrap collectors have traditionally worked independently without any protective equipment or social security and usually under poor working conditions.

The main phases of the project were:

• to ensure training in management and technical skills of the recyclers• to strengthen cooperation and communication between the different stakeholders• to monitor progress and contribute to public policies at local and national level.

Many environmental, social and economic benefits have been observed. For example, in the cities where the project was implemented, approximately 1,630 tons/year of waste generated are now correctly disposed of; 1,200 waste collectors received 34,424 hours of training during the 27 months of the main project’s duration; suppliers’ average income registered an increase of 155% from 2011 to 2013. Supplier relations with the company have also improved.

The use of scrap as a raw material reduces the volume of waste disposed of by society in inappropriate places and reduces the consumption of energy and other natural resources during steel production, while minimising CO2 emissions.

JSw Steel: Promoting vocational education through local training centresIndia 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.

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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$:1st row; percent of revenue: 2nd row)

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

Table 4: Summary of indicator results

Notes: (p) = preliminary; data collection in progress

Indicators 1 and 2: *Prior to 2005, energy and CO2 associated with intermediate product production (e.g. conversion of coal to coke) was not included. Indicators 1 and 2 are calculated using route-specific energy and CO2 intensities for three steel production routes: basic oxygen furnace, electric arc furnace and open hearth furnace. The indicators are also weighted based on the production share of each route. Indicator 1 includes CO2 emissions only as these make up approximately 93% of all steel industry greenhouse gas emissions. Indicator 5: Lost time injury frequency rate includes fatalities and is calculated based on figures including contractors and employees. Data prior to 2004 is not available. Indicator 6: Employee training includes production and non-production facilities. Indicator 8: Data collection for Economic Value Distributed (EVD) started in 2007.

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.

SuSTAINABILITy INdICATOrS SummAry TABLE

CONTrIBuTING OrGANISATIONS ANd ASSOCIATIONS

1 Acciai Speciali Terni S.p.A. (AST)2 Acciaierie Bertoli Safau S.p.A.3 ACERINOX S.A.4 Acroni, d.o.o. 5 Aichi Steel Corporation6 Altos Hornos de Mexico S.A.B de C.V. (AHMSA)7 Anshan Iron & Steel Group Corporation8 Aperam9 ArcelorMittal10 ArcelorMittal Industeel Benelux N.V.11 Arrium Limited12 Badische Stahlwerke GmbH13 Baoshan Iron & Steel Co. Ltd.14 Baosteel Group Corporation15 BlueScope Steel Limited16 Byelorussian Steel Works17 CELSA Group18 CELSA Steel Group19 ÇEMTAŞ AŞ20 China Steel Corporation21 Cogne Acciai Speciali Spa22 Compania Siderurgica Huachipato S.A. (CAP ACERO)23 Daido Steel Co., Ltd.24 DEACERO, S.A. de C.V.25 Deutsche Edelstahlwerke GmbH (DEW)26 Dillinger Hüttenwerke AG27 Dongbu Steel Co. Ltd.28 Emirates Steel29 Eregli Demir ve Çelik Fabrikalari TAS (Eregli Iron and Steel Works, Co.)30 Essar Steel Ltd.31 Evraz Group32 EZZ Steel33 Georgsmarienhütte Holding GmbH34 Gerdau Aços Especiais35 Gerdau S.A.36 HADEED, an Affiliate of Saudi Basic Industries Corporation (SABIC)37 Halyvourgiki Inc.38 Hüttenwerke Krupp Mannesmann GmbH (HKM)39 HYUNDAI BNG STEEL Company Ltd.40 HYUNDAI Steel Company41 JFE Steel Corporation42 Jindal Stainless Ltd43 JSW Steel Limited44 Kobe Steel, Ltd45 Magnitogorsk Iron & Steel Works (MMK)46 Metalloinvest47 Metinvest Holding LLC48 NatSteel Holdings Pte Ltd49 Nedstaal B.V.50 Nippon Kinzoku Co., Ltd.51 Nippon Steel & Sumitomo Metal Corporation52 Nippon Yakin Kogyo Co., Ltd.53 Nisshin Steel Co., Ltd.54 Novolipetsk Steel (NLMK)

55 Nucor Corporation56 Outokumpu Oyj57 Ovako AB58 Pacific Steel NZ59 POSCO60 POSCO-Thainox Public Company Limited61 Qatar Steel Company (Q.S.C.)62 Rashtriya Ispat Nigam Ltd (VIZAG Steel)63 Rautaruukki Oyj64 Saarstahl AG65 Sahaviriya Steel Industries Public Company Limited (SSI)66 Salzgitter AG Stahl und Technologie67 Schmolz + Bickenbach Group68 Severstal JSC69 Shabro Metals & Technologies Limited (SMTL)70 Shougang Group71 SSAB AB72 SSAB Americas73 SSAB EMEA74 Steel Authority of India Ltd. (SAIL)75 Tang Eng Iron Works Co. Ltd.76 Tata Steel Europe77 Tata Steel Group78 Tata Steel Limited79 Techint Group80 Tenaris81 Ternium82 Ternium Siderar83 The Timken Company84 ThyssenKrupp AG85 ThyssenKrupp Steel Europe AG86 TŘINECKÉ ŽELEZÁRNY, a.s 87 Tung-Ho Steel Enterprise Corporation88 UGITECH89 United States Steel Corporation90 Usinas Siderúrgicas de Minas Gerais S.A. (USIMINAS)91 Vallourec92 voestalpine AG93 Walsin Lihwa Corp.94 Wuhan Steel95 Yieh United Steel Corporation (YUSCO)96 Zhangjiagang Pohang Stainless Steel Co.,Ltd. (ZPSS)

Contributingassociations

1 Asociación Latinomericana del Acero (Alacero)

2 American Iron and Steel Institute (AISI)

3 International Stainless Steel Forum (ISSF)

4 The Japan Iron and Steel Federation (JISF)

5 Wirtschaftsvereinigung Stahl (Germany Steel Federation- VDEh)

6 South East Asia Iron and Steel Institute (SEAISI)

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.

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