Overview

2016 was a year of important progress for ArcelorMittal.

Action 2020

Action 2020 is ArcelorMittal's commitment to structurally improving profitability and cash flow generation.

Governance

Good corporate governance is about compliance, continuous stakeholder dialogue and being a good corporate citizen.

Fact book

Details of our steel and mining operations, financials, production facilities and shareholder information.

Driving sustainability standards in steel and mining

We see the increased interest in supply chain standards as an opportunity. We want to reassure our customers that our products are made according to sustainability standards they and their stakeholders expect, and to help raise standards across our supply chain and throughout our industry. In practice, this means working with a range of partners to develop a common approach across the industry.

More

BMW Group has defined sustainability criteria that all our first-tier suppliers need to meet. Moreover, we are engaging in supply chains with high sustainability exposure to set up certification systems.

Dr Alexander Nick
Head of sustainability strategy and management, BMW Group

A major focus of our work in 2016 was to lay the foundations for the development of two new multi-stakeholder standards, ResponsibleSteel™, and the Initiative for Responsible Mining Assurance (IRMA). By showing such leadership, we hope to strengthen our position as our customers' preferred supplier of steel and so support our Action 2020 goals.

Seizing the value chain opportunity

Alan Knight describes customers’ growing interest in the assurance of their supply chain for steel and raw materials, and talks about progress...

Read more

European carmakers come together to drive sustainability

Some of the biggest names in the European automotive industry have joined forces to form the European Automotive Working Group on Supply Chain Sustainability, which aims to improve the social, ethical and environmental performance of automotive supply chains.

Read more

Standards backed by due diligence

We carry out due diligence on the business ethics record of new suppliers, using a proprietary database. Further to that, our Code for Responsible Sourcing, launched in 2011, sets out the broader sustainability commitments we expect from our suppliers, and describes how we can work together to achieve them. We ask all new global suppliers to sign up to the Code, and survey all our strategic and core suppliers on their implementation of it.

More

In 2016, we evaluated 387 core and strategic suppliers of raw materials, operating and industrial products, spare parts and land logistics. Where we detected the need for improvement, we designed action plans which made specific proposals to the supplier.

We know that our customers are starting to look for more than this. We know how hard it is for our buyers and primary suppliers to be really confident of the standards in their own supply chain through the use of questionnaires alone. We need to do more. So in 2016 we continued to build on our mapping of social and environmental hotspots in our supply chain in order to prioritise more due diligence where it is most needed.

Focusing on hotspots

We know that the extraction of raw materials is where the most salient risks lie. We continued to engage with a multi-stakeholder working group on sustainable tin production in Indonesia, which we joined in 2015.

To go further in this priority part of our supply chain, in 2016 we joined the board of IRMA, an emerging third-party certification standard for mining, and we hope to pilot this standard in 2017. In addition, we also identified the need to do more work on the risks in our scrap steel supply chain, and will work with other stakeholders to pursue this in 2017.

Performance at a glance

Metric Unit 2016 2015 2014
Global procurement suppliers evaluated against our code for responsible sourcing Number 387 424 181