Sustainability Report 2008 ArcelorMittal Brasil transforming tomorrow

Transcription

Sustainability Report 2008 ArcelorMittal Brasil transforming tomorrow
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
TRANSPARENT GOVERNANCE
I INVESTING IN OUR PEOPLE
I MAKING STEEL MORE SUSTAINABLE I ENRICHING OUR COMMUNITIES
MANAGEMENT FOR LEADERSHIP I A WORD FROM THE CEO I ORGANIZATIONAL PROFILE I REPORT PROFILE
Sustainability Report 2008
ArcelorMittal Brasil
transforming
tomorrow
Contents
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
MANAGEMENT FOR LEADERSHIP Strategic Vision
1
2
A WORD FROM THE CEO 3
ORGANIZATIONAL PROFILE Markets served Sector challenges 4
5
6
TRANSPARENT GOVERNANCE Values
In Brazil and the World
7
8
8
INVESTING IN OUR PEOPLE
Employee profile
People management
Professional development
Health and Safety
10
11
12
14
16
MAKING STEEL MORE SUSTAINABLE
Water Energy Transport Materials
Emissions Waste Biodiversity Sanctions Environmental Education 18
20
22
24
24
25
26
29
33
33
ENRICHING OUR COMMUNITIES
Value Generation Suppliers Communities Culture
Social Promotion
Santa Catarina floods Human Rights 35
36
37
39
41
42
44
45
REPORT PROFILE
GRI Contents Glossary
Awards and Recognitions
Credits
46
47
51
52
52
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
1
STRATEGIC VISION
A WORD FROM THE CEO
ArcelorMittal Brasil keeps the best practices
in people and environmental management,
guided by sustainability principles. A constant
quest for efficient processes, focusing on
management gains and, consequently, better
business opportunities.
Management
for Leadership
Management for Leadership
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
STRATEGIC VISION
2
Under the responsibility of
“transforming tomorrow”, the
ArcelorMittal’s sustainability
strategy is:
To invest in our people
Making all and every
person working for us feel
appreciated
To make steel more
sustainable
Using our steel expertise
to develop more ecological
processes
To enrich our
communities
Having a leading role in all
communities where we operate
All these are sustained by
Transparent
Governance
Our position as the world number
one steel company, with the capacity
to produce 130 million tons of steel
per year and present in more than 60
countries, implies huge economic, social
and environmental responsibilities. A
leader in the four market segments
of long, flat and stainless steel –
automotive, construction, house hold
appliances and packaging industries
–, ArcelorMittal was created in 2007
with the merger of leading global
players (Arcelor and Mittal Steel), and
endeavours to continue as a global actor
in terms of sustainability.
To ensure such a condition,
ArcelorMittal is committed to
professional excellence and life
quality of more than 300 thousand
employees and families around the
world, encouraging the economic
development of the communities where
it operates and the responsibility for
the environment, with permanent focus
on technological innovation and the
application of transparent corporate
governance.
The ArcelorMittal’s commitment to
“Transforming Tomorrow” is based on this
Corporate Responsibility strategy.
ArcelorMittal Brasil
An important company of the Global
group, ArcelorMittal Brasil follows the
strategic vision of the parent company.
Consequently, it is also distinguished in
its sustainability actions, and, likewise,
Steel Coils at ArcelorMittal Vega
is a benchmark for the steel industry.
With activities in four countries –
Brazil, Argentina, Costa Rica and
Trinidad & Tobago – and consisting
of the assets of ArcelorMittal Aços
Longos, ArcelorMittal Tubarão and
ArcelorMittal Vega, ArcelorMittal Brasil
is proud of its good practice indicators.
It was the first Brazilian steelmaker
listed in the Bovespa Corporate
Sustainability Index, and remained
there until going private. It has
repeatedly received distinctions in local
and international rankings of corporate
sustainability – among them, the Top
Ten in the list of 150 Best Companies
to Work for, by Guia Você S/A – Revista
Exame – and endeavours to perfect
both its productive processes and its
relationship with society.
Commitment
With 15.3 thousand employees,
distributed in 27 industrial units with rated
capacity for 15 million tons of long carbon
steel and flat carbon steel, ArcelorMittal
Brasil – which in 2008 presented
consolidated results with net revenues of
R$ 19.8 billion (against R$ 15.3 billion in
2007) and net profit of R$ 1.4 billion –
honours its commitment to an integrated
management model, notwithstanding its
business diversification.
Highlights are activities in the
environmental area that go beyond
compliance with the law: the company
invests in processes to eliminate or
reduce environmental impact. In the
social scope, priority goes to education
and programs for generating income in
neighbouring communities.
Management for Leadership
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
A WORD FROM THE CEO
3
In 2008, as any other company in the
steel industry, ArcelorMittal Brasil
experienced antagonistic moments.
The first three quarters were
extremely positive for all segments of
our business in Brazil, with expressive
results for the Company.
And this makes us proud.
Stimulated by Brazilian economic
growth, we maintained our outstanding
position in the long carbon steel and
flat carbon steel markets. Our units’
performance indicators compared
to the best in our Group, especially
concerning production costs, and
operating and management efficiency.
Service sharing, through the
development of the ArcelorMittal Brazil
Corporate Centre, ensured increasingly
higher synergetic gains.
As from September, however, the
dramatic global economic change
significantly impacted our results and
altered the scenario for the following
months. In spite of still satisfactory
figures, the situation demanded
caution and required adaptations at the
Company.
Carlo Panunzi
The ArcelorMittal’s reaction when
facing the new business reality was
decisive and quick. The Group started
focusing its action on a short- and
mid-term strategy emphasizing the
so-called “3 Cs”: Cost, Customer and
Cash. Among the adopted decisions,
investment plans were reviewed aiming
at cutting expenses in upcoming
quarters. Regarding working capital,
we managed to improve cash flow,
both with reduction in raw material and
finished product inventories, and with
closer monitoring of accounts payable
and receivable.
In line with the Group’s guidelines,
ArcelorMittal Brasil managed to adapt
to the new reality in timely fashion. We
relied on the engagement of all areas of
the Company to meet the new demands
of the international scenario by carrying
forward budget reviews, and reducing
administrative overhead and operational
process costs.
These measures, taken as a response
to face the new economic situation,
however, have not made us deviate
from our commitment to Quality,
Leadership and Sustainability, the
cornerstones of our actions.
As the actions defined in 2008 make
sure ArcelorMittal Group is well
positioned for the future, we feel
confident to achieve our objective to
contribute to the economic, social and
cultural development of the country.
In this report we disclose the main
activities related to our sustainable
operation in 2008. We are sure that
many of the projects described here will
not only be continued, but diversified
and expanded.
We reaffirm our commitment to
initiatives in favour of sustainability,
especially the principles of human
rights, labour standards, environmental
protection and anti-corruption as
established in the UN Global Compact,
of which we are a signatory.
With the same entrepreneurial spirit
that makes the Company the world
leader in steelmaking, we intend to
keep our support to the communities
in which we are inserted, intensify
transparent, profitable relations with
employees, suppliers, consumers
and other stakeholders, and further
progress in the sustainability of our
businesses.
Carlo Panunzi
CEO ArcelorMittal Brasil
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
4
MARKETS SERVED
SECTOR CHALLENGES
One of the major steel companies in Latin
America, ArcelorMittal Brasil has a remarkable
position in the long and flat carbon steel
sectors. Constituted in December 2005,
it gathers the three most competitive
steel companies in Brazil – ArcelorMittal
Aços Longos, ArcelorMittal Tubarão and
ArcelorMittal Vega.
Organizational
Profile
Organizational Profile
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
MARKETS SERVED
5
Markets Served
ArcelorMittal Brasil
locations
Brazil
1. Bahia
2. Espírito Santo
3. Minas Gerais
4. Santa Catarina
5. São Paulo
1
3
2
5
Argentina
Costa Rica
ArcelorMittal Brasil
in figures:
Industrial units:
27
Employees:
15,306
Net equity:
R$ 15.700 billion
Total Sales:
R$ 24.730 billion
Net Operating Revenues:
R$ 19.800 billion
EBITDA:
R$ 6.349 billion
4
Long steel – ArcelorMittal Aços Longos
has production capacity of 5.6 million
tons of steel and 1.55 million tons of
drawing steel per year. We are the South
American leader in wire for industrial
and agribusiness applications, and one
of the top three global producers of
wire rod for steel-cord – steel used in
radial-ply tires. The company relies on an
extensive nationwide product distribution
network, including the Belgo Pronto
system, which delivers cut and moulded
material for civil construction use. The
company has units in seven cities in three
states: Itaúna, Joao Monlevade, Juiz de
Fora and Sabará (MG); Cariacica (ES);
and Sao Paulo and Piracicaba (SP).
Since 1997, ArcelorMittal Aços Longos
has also been a part of the joint venture
controlling Belgo Bekaert Arames, with
a production capacity of 900 thousand
tons of drawing steel per year, therefore
enjoying the position of largest
wire manufacturer in the Americas
and leader in the domestic market,
with products for a large number
of segments such as agribusiness,
consumer goods, civil construction,
petroleum exploration, the automobile
industry and household utensils.
Flat Steel – ArcelorMittal Tubarão,
located in the Greater Vitória area (ES),
has a steel production capacity of 7.5
million tons per year; and ArcelorMittal
Vega, located in Sao Francisco do Sul
(SC), has a steel production capacity
of 1 million tons of cold rolled coil and
galvanized per year.
ArcelorMittal Tubarão is leader in the
international market of slabs and supplies
hot rolled products to the domestic
market. ArcelorMittal Vega is a steeltransformation specialized unit and it
works with coils supplied by ArcelorMittal
Tubarão, cabotage-transported to the
industrial unit. Its specialization is the
production of thin cold coils and galvanized
coils. About 70% of its total production
goes to the automotive market, especially
for the auto body production.
Organizational Profile
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
SECTOR CHALLENGES
6
Sector Challenges
The steel industry lived two different
moments in 2008. Until September,
the companies enjoyed the same
growth rhythm as in 2007. Stimulated
by expanded consumption, especially
in developed countries, figures
promised expressive revenues at the
end of the period.
In the last quarter, however, the global
financial crisis dramatically changed
the scenario, altering all perspectives
for 2009. According to the Brazilian
Steel Institute (IBS), steel sales in the
domestic market, in 2008, dropped
25.8% in November and 33.9% in
December against October. In the
foreign market, product sales also
dropped: in November the reduction
was 23%, and in December 9%.
The alert level was raised in January
2009, when the domestic market
recorded a decrease of 48% in steel
sales and of 52% in steel production. In
a scenario of excessive product offer in
international markets, with consequent
price reductions, ArcelorMittal Brasil, as
well as its controlling group, would not
be safe. However, in the crisis scenario,
ArcelorMittal Brasil proved its strategic
importance for the group, by showing
results that supported the sustainability
of businesses in Latin America.
Nevertheless, these times call for
prudence. Consistent with its controller,
the company has adopted strategies
aimed at enduring difficulties with
minimum impact on performance.
The focus on 3 Cs – Cost, Customer
and Cash – remains our strategic basis
for 2009, which will not be an easy
year. On the other hand, compared
to previous crises, the steel industry
is in a stronger position, reflecting
improvement in fundamentals,
associated with an increasingly stricter
commitment to sustainability, quality
and leadership, which guide the
company’s management in the task of
overcoming barriers to growth.
Investments
In March 2008 before the first signs of
the international crisis, ArcelorMittal
announced an investment plan for
Brazil: US$ 5 billion in five years
intended for maintenance projects
in existing industrial plants and the
increase in production capacity.
The first portion of these resources –
US$ 1.2 billion – are intended to double
the production capacity of ArcelorMittal
Monlevade, located in Joao Monlevade
(MG), with the construction of a new
blast furnace, with capacity for 1.5
million tons/year of pig iron, a new
sinter plant (raising capacity from 1.7
million to 5.7 million tons a year), a steel
mill with capacity for 2.4 million billets
per year (twice as much) and a new
roller, increasing nominal capacity to 2
million tons per year. In July 2008, the
company announced another R$ 1.6
billion investment, aimed at increasing long
steel production by 65%, equivalent to 2.6
million tons per year, with the construction
of two new blast furnaces, with total
capacity of 400 thousand tons; an electric
furnace with capacity for 1.2 million
tons; a ladle furnace for two continuous
castings; a rebar roller with capacity for
520 thousand tons; and a rolling mill with
a 500 thousand tons capacity. With an
investment of about R$ 300 million, the
expansion of ArcelorMittal Vega increases
the productive capacity of hot rolled
galvanized material. The other units in the
process will be expanded accordingly to
reflect the production increment.
Due to shrinking steel markets, as of the
last quarter 2008, the company had to
review the timeframes originally established
for some of the investments. In Joao
Monlevade, conclusion of duplication
work is forecast at 40 months, up from
27, but the project has not been called
off. Regarding the other programs, the
company is waiting for possible changes in
the behaviour of domestic and international
markets before setting new schedules.
Restraint
Due to global financial turmoil,
ArcelorMittal announced a 35%
reduction in its global production in
2009. This reduction, resulting from
the dramatic plunges of prices, aims at
balancing accounts until the scenario
becomes more favourable. In addition,
measures also had to be taken regarding
ArcelorMittal Aços Planos has productive
capacity for 7.5 million tons a year
personnel, but always trying to
mitigate the impacts of the crisis on
employees as much as possible.
In January 2009, Belgo Bekaert Arames,
controlled by ArcelorMittal Aços Longos,
entered into an agreement with workers in
the unit in Contagem, in the Belo Horizonte
Metropolitan Area, for the temporary
suspension of labour contracts with up to
1.3 thousand people.
The procedure implies cancellation of
contracts for up to one year. During this
period the employees receive 55% of
their monthly salary plus R$765 as an
unemployment insurance granted by FAT
(Worker’s Support Fund). Besides that,
during this period the employees may take
part in qualification programs at no cost.
The success of the bargaining, endorsed by
the assembly of Belgo Bekaert employees,
may turn the measure into a model to be
applied, if necessary, to other units of the
company in the country.
Another strategy to face the crisis was
the implementation of the voluntary
resignation and voluntary early retirement
programs. The company has not yet
assessed adherence to the program but
the action is essential to balance the steel
offer/demand mismatch in the market at
the minimum expense to employees.
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
7
VALUES
IN BRAZIL AND THE WORLD
The ArcelorMittal Brasil corporate governance
adopts the necessary good practices to ensure
the Company’s organizational success, in
addition to establishing strategic guidelines
and following business development. The
practices are aligned with the ArcelorMittal
global principles, guided by three values:
sustainability, quality and leadership.
Transparent
Governance
Transparent Governance
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
In Brazil and the world
8
Aé
In Brazil
and the world
Paulo Geraldo de Sousa receives the
Minas Gerais Award on Environmental Management
from State Governor Aécio Neves
Values
The ArcelorMittal operation
is underpinned by three main
values:
• Sustainability – We are committed
to the world around us beyond the basic
aspects to include the people in whom we
invest, the communities we support and
the world in which we operate. This longterm approach is central to our business
philosophy.
• Quality – We look beyond today to
envision the steel of tomorrow. Because
quality outcomes depend on quality
people, we seek to attract and foster the
development of our talents to deliver
superior solutions to our customers.
• Leadership – We are visionary
thinkers creating opportunities every day.
This entrepreneurial spirit brought us to
the forefront of the steel industry. Now,
we are moving beyond what the world
expects of the steel industry.
The ArcelorMittal global corporate
governance model goes beyond
the formal requisites internationally
established for sustainable corporate
management. In the relationship with
stakeholders, in the scope of the board
of directors, in internal and external
policy making and execution, and in the
strict behaviour standards required of
employees at all levels, the company
has ethics, transparency and quality as
premises.
At the top of the managerial structure
of the group worldwide is the Board
of Directors, responsible for overall
decision-making. Below it is the GMB
(Group Management Board), led by
Lakshmi N. Mittal – who is also CEO for
the group, consisting of eight executive
officers responsible for leading the
businesses and determining the global
strategies of the parent company
as well as defining and supervising
administrative activities in the countries
where the company operates.
Brazil
ArcelorMittal Brasil has a corporate
governance structure based on the
same principles of ethics, transparency
and quality as those of the controller.
The Company’s Board of Directors,
consisting of eight members elected at
the General Shareholders’ Meeting for
two-year mandates, establishes the
strategic guidelines and supervises the
businesses. The board members also
choose directors, appoint or dismiss
independent auditors, and supervise
the company’s management.
The company also has a Fiscal Council,
an ad-hoc committee, which when
convened is comprised of three to
five members elected at the General
Shareholder’s Meeting and the
Management Board with two to nine
members also chosen by the Board
of Directors. The Management Board
is responsible for running the group’s
businesses in Brazil, discussing any
subject that is not under the exclusive
competence of the General Shareholders’
Meeting or the Board of Directors.
Corporate responsibility principles
extend beyond the boundaries of the
Company, in investor relations and in
the active participation in associations
and other organizations, in Brazil and
abroad, in an ongoing search for courses
of action for the business sector and
particularly the steel industry. The
basic guideline is to develop strategies
to supply markets with quality
steel, encourage the socioeconomic
development of the regions where
the organization operates, and cause
the minimum possible environmental
impact with its activities, and whenever
possible, eliminate them in all steps in
the productive process.
Global Compact
As one of the first signatories of
the United Nations Global Compact,
ArcelorMittal Brasil demonstrates
strong commitments to the promotion
of a more sustainable and inclusive
economy, shaped by ethical principles
and socially and environmentally
responsible management.
The Company’s activities are in line
with the ten principles of the Global
Compact, derived from the Universal
Declaration of Human Rights, with the
International Labour Organization’s
Declaration on Fundamental Principles
and Rights at Work, with the Rio
Declaration on Environment and
Development, and with the United
Nations Convention against Corruption.
Communication on the progress of the
ArcelorMittal activities related to the
Global Compact is identified throughout
this report by icons representing the
ten principles.
Millennium Development Goals
In addition to the consistency with
the principles of the Global Compact,
ArcelorMittal – while conducting its
businesses and in the involvement with
employees, their families and society –
seeks to observe the Eight Millennium
Development Goals – or Eight Ways to
Change the World. The body of goals
established by the United Nations in
2000 to add humanization, solidarity
and sustainability to the planet,
whilst not neglecting the economic
development, calls for voluntary work
and comprehensive involvement of the
private enterprise through actions of
corporate citizenship.
In order to attain transforming, longtime results, the entity’s activities
include the transfer of methodologies
to the municipalities assisted. The
development of citizenship programs
is shared with the communities, the
government and the third-sector
partners, respecting local needs and
regional identities.
For the development of social
programs, the ArcelorMittal Brasil units
receive funds from ArcelorMittal and
invest in partnerships allowing for the
development of projects eligible for tax
incentives. GOVERNANCE >>
Transparent Governance
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
IN BRAZIL AND THE WORLD
9
The Global Compact Principles
HUMAN RIGHTS
Business should
support and respect
the protection
of internationally
proclaimed human
rights; and
Make sure they are
not complicit in human
rights abuses.
LABOR STANDARDS
Business should
uphold the
freedom of
association and
the effective
recognition of the
right to collective
bargaining;
Uphold the
elimination of all
forms of forced and
compulsory labor;
For additional information on the Global Compact on the site www.unglobalcompact.org
Millennium Development Goals
For additional information on the Millennium Goals, visit http://www.un.org/millenniumgoals
Uphold the effective
abolition of child
labour; and
ENVIRONMENT
Uphold the elimination
of discrimination
in respect of
employment and
occupation.
Business should
support a
precautionary
approach to
environmental
challenges;
Undertake initiatives
to promote greater
environmental
responsibility; and
ANTI-CORRUPTION
Encourage the
development
and diffusion of
environmentally
friendly
technologies.
Business should
work against
corruption in all its
forms, including
extortion and
bribery.
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
10
EMPLOYEE PROFILE
PEOPLE MANAGEMENT
PROFESSIONAL DEVELOPMENT
HEALTH AND SAFETY
The appreciation of people, satisfaction, professional
and human development, and fair compensation to
employees are the main principles guiding the Human
Resources policy at ArcelorMittal Brasil. With 15
thousand employees, the company is an employer
of reference, capable to attract and retain talents, as
well as to develop a strong entrepreneurial guidance
towards performance and results.
Investing in
our people
Investing in Our People
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
EMPLOYEE PROFILE
11
Performance
The satisfaction of our employees is
a major requisite for corporate success and
for business sustainability
Thus, ArcelorMittal Brasil invests in
policies and programs for professional
qualification, as well as in a salary
policy that is a reference in the country,
endeavouring to keep an excellent work
environment and making everyone
committed to the culture and objectives
of the Company.
The good indices attained in work
environment quality and satisfaction
resulted in recognition as one of the
10 best companies to work for in Brazil
according to Guia Você S/A – Revista
Exame 2008 – The Best Companies to
Work for.
For ArcelorMittal Brasil, the result was
a reward for the efforts in undertaking
increasingly more modern and efficient
Human Relations practices, as well as
for the search to align the organization’s
cultural identity.
The publication highlighted as positive
aspects the scholarship grant and
investment in personnel qualification –
with an average of 100 hours p.a. per
employee of operational level training – as
well as the differentiated benefit policy.
As an improvement opportunity, the
equalization of benefits was mentioned
– especially profit sharing – which varies
from unit to unit.
Total employees
Year
2005
Employee category
Full time
Part time
Full time
Part time
Full time
Part time
Full time
Part time
Directors
22
0
19
0
15
0
13
0
Management
386
0
379
0
247
0
382
0
Supervisors
258
0
260
0
352
0
647
0
Administrative
2,319
3
2,343
3
2,417
3
3,293
3
Operational
7,475
20
7,150
20
6,722
20
10,895
20
Interns
691
52
648
52
363
0
0
764
Apprentices
-
-
-
-
-
-
0
276
Contractors/temporary
6,694
6
5,817
6
5,634
0
1,263
0
TOTAL PER SHIFT
17,845
81
16,616
81
15,750
23
16,493
1,063
GRAND TOTAL
2006
17,926
2007
16,697
2008
15,773
Note: due to a new counting of operational employees, there has been a change from the Sustainability Report 2007 (5,893).
17,556
ArcelorMittal Brasil is one of
the best companies in people
management
One of the main challenges at ArcelorMittal Brasil
Human Resources is the valorisation of cultural
identity as a way to leverage performance. Taking
seventh place in the ranking of Best Companies to
Work For is a result of this effort.
The organization was compared to 550 competitors
from different sectors. From the total, 220 qualified
for the last stage, in which the finalists emerged. “The
150 best ranked are companies that are perfecting
their management according to their business
strategy, regional reality and internal public”, says
the magazine, which relied on the partnership of
Fundação Instituto de Administração, Sao Paulo, to
choose the winners.
ArcelorMittal Brasil was also graded above the steel
industry average in the satisfaction survey (“Talk,
ArcelorMittal”), according to ranking by Hay Group in
Brazil. The survey interviewed 12,314 ArcelorMittal
Brasil employees, equivalent to participation of 97%.
The company was also highlighted in the survey “The
Best in People Management”, jointly promoted by
Valor Econômico newspaper and Hewitt Associates
people management consultancy, finishing third in
the category “4,000-10,000 employees”. The result
shows evolution, as ArcelorMittal had been fourth in
this category in 2007.
Investing in Our People
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
PEOPLE MANAGEMENT
12
People
management
A child receives attention at the
Dental Prevention Program
Benefits
The benefit package offered to
ArcelorMittal Brasil employees
includes:
• Meals
• Health care (hospital, dental,
ophthalmologic and psychological)
• Sick leave complement
• In-company doctor’s offices
• Financing and loans*
• School kit for children of
employees in elementary and
secondary school*
• Free basic medicines*
• Private Pension Plan
• Day-care grant
• Group life insurance
• Grants for professional
specialization; language courses
and school education (Primary,
Secondary and College)
• Transportation
• Uniform
* Benefits not offered in all units
Galvanization, Unit of Sao Francisco do Sul (SC)
Over the years, labour practices have
been consolidated at ArcelorMittal
Brasil as a competitive advantage in
the attraction and retention of skilled
workers for the Company. Salaries
above the market average, benefits
and encouragement of continuing
professional development foster
professionals’ identification with the
company and, consequently, they are
more committed.
within the organization. Employment
opportunities are also offered in all
countries where ArcelorMittal operates,
translating as impulse for professional
development. Education and professional
qualification programs include agreements
with language schools and mechanics
and metallurgy courses, and employees
attend frequent programs in prevention
of accidents and diseases related or not
to work.
Regarding compensation, a number of
programs evidence the Company’s concern
about satisfaction and, consequently, best
performance of employees. For instance:
the lower salary paid by ArcelorMittal
Brasil companies in December 2008 was
R$ 741.40, an amount 79% higher than
the country’s minimum wage in the same
period, R$ 415.
The Company has also identified
improvement opportunities in feedback
and coaching. The evaluations “The Best
Companies to Work for”, “The Best in People
Management” and “Talk, ArcelorMittal”
identified this point as a reason for employee
dissatisfaction.
Career Plan
ArcelorMittal Brasil and ArcelorMittal
Aços Longos offer employees two
complementary pension plans, managed
by Bradesco Vida e Previdência. Both
seek to contribute to improve life quality
of employees, even after they leave the
Company.
OUR PEOPLE >>
In the scope of career plan, a succession
program is developed for all management
positions, from the production line
to the management board, therefore
ensuring concrete promotion possibilities
Performance management (GEDP)
Pension Plans
Ratio of average salary (men/women)
Long and Wire
Directors 1
Management
Administrative
Production
Trainees
Apprentices
Interns
1. There are no female directors
2. Includes only ArcelorMittal Tubarão
Flat 2
0
1.48
1.26
1.18
0
0
0.10
Directors 1
Management
Administrative
Production
Trainees
Apprentices
Interns
0
–
1.03
1.29
1.00
1.00
1.00
The cornerstone of the Human Resources strategy – basis for
continuous improvement and the group’s business strategy – is
the Global Executive Development Program (GEDP), a program for
people development and alignment of leadership competencies.
GEDP assesses performance and potential aimed at:
• Identifying talents for leadership positions
• Elevating the organization’s competence level
• Planning career and succession
• Developing future and present leaders for the organization
It is a space to discuss every aspect of people management and
their careers.
Investing in Our People
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
PEOPLE MANAGEMENT
13
In 2008, ArcelorMittal Tubarão promoted the program for the Qualification
of People with Special Needs living in the local community. HR coordinated
preparation for training and professional qualification. Over the year, ten of
these professionals were taken on.
Upon retirement,
an employee may
receive up to 70%
of their current
salary in addition
to the Social
Security pension
ArcelorMittal Aços Planos uses the
Funssest Closed Complementary Pension
Plan, offering four plans: three with
defined benefits – not open to new
participants – and one with defined
contribution – open to new participants.
The Free Benefit Generating Plan (PGBL)
considers monthly contributions varying
from 1% to 9.5% of salary, according to
the employee’s salary. The Company and
the employees contribute with the same
amount. Upon retirement, the employee
may receive up to 70% of the current salary
added to the Social Security payment. The
benefit is variable because it is based on the
total contributed by both parties throughout
the contribution period.
The Defined Benefit Plan (PBD) determines
the monthly amount to be paid to the
employee when he leaves the Company,
with a ceiling of 70% of the current salary
added to Social Security contribution, with
monthly contributions limited to 10% of
their remuneration.
Both in PGBL and PBD, the resources to
be contributed by the Company come
from the cash flow, and not from a
specific provision. In 2008, ArcelorMittal
contributed R$ 8,529,808.69 to
complement PGBL and R$ 5,859,302.77
to PBD.
Without the participation of a
management fund, the contribution
varies from 1% to 9.5% depending on the
remuneration.
The employee and the Company
contribute with the same percentage.
At the end of 2008, the estimated total of
obligations was R$ 24 million, kept by the
Company’s cash flow.
Leisure
ArcelorMittal Brasil employees enjoy
clubs and associations focused on
sports and leisure. In Minas Gerais,
Clube do Ipê, founded in 1959,
became a meeting point for the group’s
employees.
At the place, club members (including
retirees and interns) enjoy a number of
sports activities, including gymnastics and
team sports. There is infrastructure for
events, a party parlor, an informal, casual
bar, and a kiosk for barbecue parties.
In Espírito Santo, Aest, founded in
1978, has approximately 3 thousand
club members. The association provides
members with a wealth of leisure and
entertainment options, and enjoys an
excellent position in the ranking of all
sports clubs in the State.
Members may be current or retired
employees with ArcelorMittal Tubarão
and FUNSSEST plan participants. Their
direct dependents are also eligible to
enjoy the club facilities.
Employees – per age group
Category
Up to 30 years
30-50
Above 50 years
Directors
0
1
10
Managers
3
227
98
Superior
532
1,226
279
Administrative
383
363
78
Supervisors
96
370
84
Operational
3,163
4,653
667
Total
4,177
6,840
1,216
Employees – per ethnic group
Declared ethnic origin
Indigenous
White
Black
Yellow
Mulatto
Not attributed
Directors
0
9
0
0
2
0
Managers
1
242
1
1
83
0
Superior
1
1,442
21
9
554
10
Administrative
0
380
27
2
268
0
Supervisors
0
232
19
1
297
1
Operational
1
3,390
751
6
4,475
5
Employees – per gender
Category
Male
Female
Directors
11
0
Managers
304
24
1,544
493
Administrative
392
285
Supervisors
535
15
Operational
8,099
531
Superior
Total employees with special needs
Category
Hearing
Physical
Mental
Visual
Total
Managers
0
1
0
0
1
Administrative
3
10
3
3
19
Operational
4
16
0
1
21
Others
1
24
2
0
27
Note: Figures do not include Belgo Bekaert Artefatos de Arames
Investing in Our People
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
PROFESSIONAL DEVELOPMENT
14
ArcelorMittal
Competences
KEY COMPETENCES
• Change Management
• Decision-Making
• Results-Orientation
• Strategic Thinking
• Teamwork
COMPETENCES THAT WILL HELP
BUILD THE CORPORATE CULTURE
OF THE NEW ORGANIZATION
• Stakeholder-Orientation
• Effective Communication
• Learning and Development
Management challenges
•H
ow to attract, retain and
develop talents
• How to think and plan
strategically
• How to keep a high
performance atmosphere
• How to improve customer
satisfaction
• How to manage time and stress
• How to remain ahead of the
competition
• How to align strategic vision
and commitment
• How to keep the balance of
work and personal life
• How to improve internal
processes
• How to encourage innovation
Professional
Development
ArcelorMittal Brasil endeavours to
continually improve its practices
for assessment, recognition and
development of the internal public.
Through surveys on the workplace
environment, the Company identifies
opportunities for improvement and
works to ensure conditions that
will provide more quality of life and
satisfaction to the entire body of
employees. As an example is the
Organizational Climate Survey – Talk,
ArcelorMittal –, held in May 2008.
It was the first time the survey
was standardized throughout all
ArcelorMittal Brasil. Previously, the
survey had been conducted in separate
ways for different units. The general
favourability index was 70%, indicating
that the Company is on the right
track in its quest for excellence in its
organizational climate.
This favourability index is 11% higher
than the Hay do Brasil market composite
index and 7% higher than the steel
industry composite. With this result,
ArcelorMittal Brasil is placed in the socalled third quartile, that is, the results
are among the best in the database of
Hay Group, a global consulting firm in the
business management area.
The survey pointed out the effectiveness
of actions related to safety and health,
as well as of policies aimed at reinforcing
the identification of employees with the
company and the relationship with the
external public.
On the other hand, the results indicated
the need to advance in some aspects of
people management, such as careerenhancing and effort-recognition
policies. Below expectations were the
indexes of Managerial Style, involving
aspects such as “Performance Planning
& Development” and “Recognition &
Reward”, with general average of 62%
– indicating the need to perfect the
programs for leadership formation and
qualification.
Existing qualification programs such as
GEDP and Transform Now encompass
such topics. There are other training
programs with the same focus.
The identified problem is that, in spite of
qualification, there is little internalization
of concepts. On these lines, ArcelorMittal
Brasil developed the project Culture
of Effective Feedback, as part of its
HR strategic business plan, aiming at
promoting management qualification in the
task of giving feedback to team members.
Two initial steps were taken in the
meetings to plan training: defining and
differentiating communication, feedback
and coaching; and analysing the market’s
best practices.
In its production units, ArcelorMittal Brasil
also offers employees technical-functional
formation, focusing on improving and
developing specific skills and competencies
for the execution of their activities.
Another important tool is the On Line
Training Center, a distance-learning
gateway offering over 3 thousand courses
in its grid – in 2008, nearly 2 thousand
employees participated in such training,
in areas ranging from steelmaking and
finances to language courses.
DEVELOPMENT>>
Talk, ArcelorMittal Survey – indicators of favourable perception
87%
Labour
Safety
79%
79%
Credibility
Principles
and Values
77%
77%
Clarity and
Strategy
Alignment
External
Relationship
Note: The survey was answered by 97% of the personnel and followed a Hay Group methodology that assures
total confidentiality to participants.
Investing in Our People
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
PROFESSIONAL DEVELOPMENT
15
Internal auditor course at ArcelorMittal Vega
Transform Program
The actions to form leaderships more
aligned with the Company’s culture
and strategic orientation started
to be embodied in 2008, with the
implementation of the Transform
Program. The initiative consists of
a series of internal procedures with
the objective of developing people
and producing sustainable results, by
offering support to the continuous
improvement and update of managers.
Employees participate in workplace exercises in Piracicaba
The idea is to prepare managers not
only to overcome the challenges of
movement within the group, such as
retirement and creation of new leadership
positions, but also to put into practice
plans for development and growth of the
Competence axes
Technical-Functional
Behavioural
organization, employees and business
units. Developed based on organizational
competences and major management
challenges, as defined by ArcelorMittal,
the Program is intended for people holding
or to hold leadership positions.
To attain its objectives, the Program was
structured to comprehend four axes of
competence distributed in development
topics, leading to the construction of a
curricular grid connected with time and
management scopes. The development
plan is individual and established for
each manager, according to their current
position and estimated future position.
In view of this, the qualification need
emerges from the results of the
performance management compared
to what is required for the current
position, from the succession perspective
compared to what is required for the
future position, and from the result of the
performance and potential assessment,
that is, the projections of potential for
future positions.
In 2008, the Transform Program
executed its actions using the most
advanced learning methodologies, such
as the coaching program, encouraging
networking, and training in the
classrooms of renowned institutions such
as Fundação Dom Cabral and Hay Group.
In total, 3 thousand hours of training
were provided to 750 participants with
total investments of R$ 1,418,775.67.
The Program is also supported by the
Corporate ArcelorMittal University,
with courses for growing the future
leaders of the Group. In the period
2007-2008, eighteen leaders from
Brazil and South America attended such
training and, in addition to improvement
in management knowledge, they
had the opportunity for networking
with ArcelorMittal professionals from
different units across the world
Transform Program - statistics
Management Conceptual
Instrumental
Total
Total employees trained
Total hours delivered
Total classes
Actual 2007
341
2,038
24
Planned 2008
770
3,588
52
Accomplished 2008
753
3,130
45
Investing in Our People
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
HEALTH AND SAFETY
16
Investing in Our
People
Health and Safety Day
Employees undergoing periodic health exams
Health and Safety in Figures
• Rate of injuries: 2.63 (includes minor
injuries with basic first aid)
• Rate of occupational diseases: zero
• Rate of lost days: 15.33
Evolution of absenteeism
1.10
0.89
0.94
0.69
2005
2006
2007
2008
Health and Safety are priorities for
ArcelorMittal around the world and are
strengths of ArcelorMittal Brasil. In all units
– industrial and administrative – proactive
policies are applied to value the physical
and mental integrity of direct and indirect
employees, as well as to supervise their
activities so as to identify and prevent
problems and to correct procedures.
The schedule of routine activities
includes attention tests before starting
work for machine operators in all
units. Constant individual performance
evaluation of workers is performed,
regarding accident prevention and safety
workshops, in all units.
Specific management systems, with
certification based on Occupational Health
and Safety Assessment Series (OHSAS)
criteria, focusing on occupational health
and safety, make use of communication
tools, training, and diversified strategies for
employee involvement to ensure low levels
of occurrences and significant reduction of
accident risks.
The Internal Committees for Accident
Prevention (Cipas) are present in all
companies in the group, representing
100% of the employees, who are also
formally represented in the health and
safety committees.
The two main objectives of the Health
and Safety Day carried out annually in all
units throughout the world are to involve
and commit ArcelorMittal professionals
at all levels to health and safety principles
and to demonstrate the company’s
commitment to all employees.
In 2008, the theme was “Together a step
forward towards safety”, aiming at equal
involvement by all professionals, regardless
of their positions, with the best safety
practices in the workplace.
The idea is to share experiences and
practices among people, areas and units,
emphasizing the sensitization of the
leaders on the importance of leading by
example.
Brazilian employees from all units
could watch videos with a speech by
ArcelorMittal CEO, Lakshmi Mittal, and
by Brazilian leaders in the long and flat
segments.
Employees visited the Health Circuit
for blood pressure tests and measuring
weight, height and BMI; and glucose and
cholesterol tests. In some units, they
received massages to potentialize their
well-being and relieve stress, in addition
to enjoying auricular therapy and foot spa,
among other activities.
The event also focused on activities and
discussions on fatality-causing agents,
developed from activities held at the
units such as work at height, in high
temperatures and with electricity, among
others.
ArcelorMittal.
Safety Committee
Assessment of individual safety
performance
The ArcelorMittal Brasil Safety
Committee is responsible for developing
the respective topics at the Operational
Units. The objective is to contribute to
the target of having zero accidents and
injuries by setting up projects, campaigns,
audits and standardizations in compliance
with the guidelines of the ArcelorMittal
Global Safety Committee. On these lines,
the Committee seeks to identify, assess
and reduce operational risks.
The topics discussed by the Committee
aim at guaranteeing the continuous
improvement of People’s Quality of Life, by
promoting safety. No corporate decision
is made without being discussed at
Committee meetings.
The meetings follow an agenda with
representatives from all business
segments and focus especially on
evaluating annual planning, as well as
the identification and sharing of good
practices, follow-up of safety tours to
operational units, and consolidation of
safety campaigns and dissemination
of the safety standards of Global
There is also a health committee
gathering professionals from the entire
ArcelorMittal Brasil, working under the
same model as the safety committee.
All units with ArcelorMittal Aços
Longos conduct individual safety
performance evaluation of employees.
Indicators such as previous accident
records, time in the company,
absenteeism, and suggestions for
improvements of risk conditions are
taken into consideration.
Based on the review, employees are
classified in one out of four categories:
ideal situation, motivation for reporting
unsafe conditions, alteration of position,
and critical situation.
After being classified, the professional
undergoes a specific process, aiming
at ensuring the safety of activities. For
instance: if the employee is classified
in “motivation for reporting unsafe
conditions”, the process endeavours to
create in that employee the culture of
communicating any situation deemed
inadequate in terms of safety.
HEALTH AND SAFETY>>
Investing in Our People
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
HEALTH AND SAFETY
17
Employees go through the rebar production in Piracicaba (SP)
Employees, Unit of Cariacica (ES)
Safety Workshops
and Meetings
In addition to safety reviews,
ArcelorMittal promotes periodic
meetings of managers and
operators from production
areas. At these meetings, safety
indicators of units are presented
and critical situations in each area
are discussed.
This is another opportunity
to record reports of nearaccidents or anomalies, and
for the development of ideas
for improvement. Based on
the reports of these meetings,
specific actions are programmed
for each sector. These actions
are the result of a process
characterized by the interaction/
proximity between managers and
operators.
Systematic investment, continuous
improvement and a great result: eight
years with no lost time incidents
Zero accident
Ongoing measures, such as individual
performance reviews, safety
workshops and meetings, in addition
to seminars and competitions
dedicated to the topic ensure
excellent figures to ArcelorMittal.
Belgo Bekaert Arames, in Itaúna,
MG, is a major Health and Safety
highlight in the group. The unit, with
130 employees, has no report of a
single lost time incident since 2000.
The indicator is the outcome of a
work started 11 years ago, when
the company started to hold periodic
seminars on safety and to develop
plans for risk reduction, based
on information on the individual
performance of employees.
In the same unit, a project to reduce
noise level has been attaining
significant results since 2006.
Through constant monitoring of
the volume of decibels emitted
by machinery, specific and global
measures were and are still being
adopted to reduce these indices, with
layout changes in the industrial plant
and the acquisition of new equipment,
thus making the workplace healthier.
In June 2008, another ArcelorMittal
Brasil unit celebrated the milestone
of seven years (or 2,557 days) with
no reports of lost time incidents: the
Seedling Production Unit (UPM) in
Ponte Alta, ArcelorMittal Forests, in
Dionísio, MG. To celebrate and value
the importance, a party was held with
a theatrical performance and music
composed by employees.
Activities in UPMs are quite different
from other units in the Company.
Employees are exposed to risk due to
factors such as electricity, contact
with poisonous animals, handling
dangerous equipment and bad
weather conditions. However, the
measures adopted by management in
partnership with employees increased
the commitment of all to safety, and
there were no further occurrences. In
the case of ArcelorMittal Vega, there
are no records of lost time incidents
after November 2007.
Safety as a value of the company
To encourage change in behaviour of
employees, making health and safety
fundamental and intrinsic values to
the organization. These are the main
purposes of the Health and Safety as a
Value campaign, set up by ArcelorMittal
Brasil in its units. The project consists
of a number of coordinated actions
aiming at diagnosing the situation of
each unit and their level of maturity
on the subject, preparing and carrying
out specific behavioural action plans
for direct and indirect employees, thus
significantly reducing work-related
accidents.
In 2008 the three-staged campaign
was started in some units such as
Cariacica (ES). At the first stage,
Sensitization, lectures are delivered
to managers with ArcelorMittal or
contractors on work methods and
objectives. At the second stage,
Diagnosis, the same managers are
asked to fill out questionnaires on
health and safety in their areas,
and employees who have already
had accidents are interviewed. All
operational employees also answer
questionnaires.
The next steps are investigations of all
accidents which occurred at the unit/
sector over the last four years and
the follow up of high-risk activities.
Next, the information gathered by
the survey is analyzed and a report
is produced to determine the degree
of maturity of the Unit regarding
risks and accidents. The last stage,
Guidance, consists of the submission
of final reports – one for each area
–, of a qualification program on
“Risk perception” for managers, the
formation of homogeneous risk groups
and the preparation of action plans.
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
18
WATER
ENERGY
TRANSPORT / MATERIALS
EMISSIONS
WASTE
BIODIVERSITY
SANCTIONS / ENVIRONMENTAL EDUCATION
ArcelorMittal produces a complete spectrum
of flat, long and stainless steel products to
meet the current needs of all main consumer
markets. Steel is the material of choice for
environmental protection, not only for being
environmentally sound, but also for having a
performance superior to other products as it
is immediately recyclable.
Making
steel more
sustainable
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
PROCESS IMPROVEMENT
19
Steel Cycle
COAL AND ORE
LD STEELWORKS
ELECTRIC
STEELWORKS
SCRAP
PROCESSING
ArcelorMittal Brasil environmental management
monitors biodiversity around operational units
Sustainability as a
Differentiating Factor
In analyzing possible strategies to
face the current economic scenario,
ArcelorMittal reinforces its vision
that sustainability remains an
important differentiating factor for
business success. On these lines,
the Brazilian subsidiary – which
maintained award-winning ecoefficient programs in 2008 for
carbon credit trading, water reuse
in industrial units, industrial waste
management and rational control
of natural resources by suppliers
– foresees the continuity of such
actions.
To ensure the balance between
industrial activities and the rational
use of natural resources, the company
develops processes aiming at the
lowest possible impact on biodiversity
in the vicinity of its units, the constant
search for updating its facilities,
the recirculation of almost all used
water, and the recycling of the waste
generated in steel production, in
addition to promoting ongoing projects
for the environmental education of
internal and external publics.
In order to reduce and even eliminate
the environmental impact of its
ArcelorMittal Brasil
Environmetal investments
R$ 38.058.746,00
Total
R$ 59,719,075.58
R$ 21.629.733,00
R$ 30.596,58
Prevention and
environmental
management
Mitigation of
impacts
Environmental
Protection
industrial activities, ArcelorMittal Brasil
makes use of a series of management
and operational tools, based on the
principles defined by its controlling
group. In addition to complying with all
environmental laws and regulations, the
company has environmental management
systems such as ISO 14001 certification.
In 2008, the excellence of ArcelorMittal
environmental practices was recognized
by important awards. The Juiz de
Fora unit, for instance, received the
Minas Gerais Award on Environmental
Management, awarded by the Brazilian
Quality Union (UBQ) to distinguished
companies for the management of the
impacts of their activities.
ArcelorMittal Brasil strives for
continuous improvement of its
environmental performance,
systematically monitoring its activities
aiming at preventing pollution. It
also develops, perfects and applies
methods for low environmental impact
by making use of locally available raw
materials, favouring the production
of environmentally correct products,
focusing on their use and subsequent
recycling and, wherever technically and
economically feasible, promoting the
management and reduction of CO2
emission sources.
FLAT AND LONG PRODUCTS
SCRAP
PROCESSING
STEEL SCRAP
CONSUMPTION OF GOODS
Source: Brazilian Steel Institute (IBS)
Process improvement
Steel is a 100% reusable product
being indefinitely recycled without
losing quality, and keeping unchanged
characteristics of strength and
hardness. According to the American
Society of Civil Engineers (ASCE),
steel scrap recycling reduces by 90%
the generation of mineral waste; by
90% the consumption of natural raw
materials, and by 70% the energy
required to produce new steel. By
2007, steel recycling represented
40% of the entire industry of ferrous
materials.
Always acting to ensure customer
safety, ArcelorMittal Brasil provides
information on its products in a
transparent, objective manner.
Products are shipped to customers with
a Quality Inspection Certificate, which
contains information on chemical
composition, mechanical properties,
size and weight of products, and nonradioactivity certificate.
Product packaging is made of
recyclable steel bands that may be
reused by our customers. Products are
identified with labels containing legal
information and allowing for their total
traceability.
In 2008, there was a single case of
non-compliance. Inmetro imposed
five sanctions on ArcelorMittal Brasil
for understanding that some nail
packages presented lower weight than
stated on the label. An action plan was
implemented, with the installation of
an automatic control system to weigh
nail bags, and the deficiency was fully
corrected.
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
Water
20
Aerial view, Port, ArcelorMittal Tubarão
Water
For ArcelorMittal, the efficient use of
water is high priority in its productive
processes. With programs to reduce
effluent discharge, the company
improved the rationalization of water
resources to the point of reusing
practically all of the water used
in industrial processes – average
recirculation reached 98.12% (taking
into account the Industrial Units of
Cariacica, Juiz de Fora, Monlevade,
Piracicaba, Tubarão and Vega).
The attained results help establish a
benchmark for other industries and
contribute significantly to reduce costs at
the company. Finally, the funds previously
spent on treatment of effluents are
now directed to new projects, therefore
increasing the company’s investment
capacity.
In 2008, the units of ArcelorMittal
Cariacica (ES), Juiz de Fora and João
Monlevade (MG) and Piracicaba (SP)
presented effluent discharge lower than
0.06 m³/t of raw steel. The Monlevade
Unit is distinguished for reducing collection
at the Piracicaba River from 5.2 thousand
m³/h to 287 m³/h between 2005 and
2008, after the recirculation process was
started, reaching a 99.1% rate.
Belgo Bekaert Arames, in Contagem
(MG), collects rainwater from roofs
for the cooling system. The procedure
reduced the consumption of safe water
supplied by the local public utility by
approximately 5 million litres/year,
enough to supply a 40-apartment
building for about six months.
At ArcelorMittal Tubarão, the Reuse
Project aims at reducing the acquisition
of water from the local Espírito Santo
public utility (Cesan), even with
production capacity increasing from 5
million to 7.5 million tons of steel per
year. With capacity to collect and store
720 m³/h of rainwater, the system is also
prepared for the treatment of industrial
effluents and rainwater. In 2008, the
average reuse rate was 229.3 m³/h of
water from the drainage channel, which
was formerly discharged into the sea.
Another eco-efficient measure is water
recirculation in the washing system
of the truck and machine repair &
lubrication shop. The system not only
reuses 100% of the water required in the
process but saves R$ 64 thousand per
month – including costs with discharge
and acquisition of detergents and
degreasers. The investment is expected
to be returned in 30 months.
The water recirculation system at
ArcelorMittal Vega allows for a reuse
rate of 98.5%, a benchmark for other
companies in the same industrial
segment. In 2008, the company attained
the milestone of only 0.41 m³ of newly
input water per ton produced, 40%
lower than in 2004. The practice – a
benchmark for the industry – is to be
extended to other units to reduce costs,
reduce the acquisition of water, and
extend the life cycle of bodies of water.
Efficient use
ArcelorMittal Tubarão uses
approximately 5% of fresh water
from the Santa Maria da Vitória River
(2,461 m³/h), whose collection and
delivery is made by the state public
utility (Cesan). The other 95% comes
from the sea, collected by an own
pumping system. Even with increased
production, the company has been
maintaining the required volume, thus
not impacting the source that supplies
the Greater Vitória area (ES).
In the case of ArcelorMittal Vega,
water management was subject to
a study jointly conducted with the
local utility Casan – responsible for
collection and delivery. It was defined
that the source should be different
from the water springs that already
supplied the local cities. The selected
source was Baden Meyer brook, a
tributary to Saí-Mirinzinho River, in the
continental part of São Francisco do
Sul. The studies developed by Casan
determined the maximum volume to be
collected in order not to compromise
the Baden Meyer brook flow. Currently,
the volumes collected by the company
(39.6 m³/h) are significantly lower than
the authorized by the environmental
agencies in the operation licensing
(79.2 m³/h).
Research is still underway at
ArcelorMittal Aços Longos to report on
the impact of its collection on water
bodies more precisely. However, it
is worth highlighting the project for
volume reduction in surface water
Total water consumption (m3/year)
collection at the Piracicaba Unit. With a
technological investment of about US$
20 million, the company replaced the
water storage tanks used for cooling
steel, eliminating water waste due to
overflowing.
With this action, water consumption
remained unaltered even with production
doubling to 1 million tons of rebars per
year. Specific consumption is 1.26 m³/t,
lower than the global steel industry
average of between 1.8 m³/t and 2.5
m³/ t of steel. It accounts for savings of
over 471 million litres of water, a volume
enough to supply the entire unit working
at full capacity for four and half months.
WATER >>
Surface water
Underground water
Collected and stored
rainwater
Public utility supply
Total
(sea water + fresh water)
421,673,376
802,713
5,020
801,345
423,282,454
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
WATER
21
Ecotoxicological
monitoring of effluents
Effluents
ArcelorMittal Brasil endeavours to
minimize the impact of water discharge
with ongoing investment in proper
effluent discharge systems.
At ArcelorMittal Vega, effluents are
treated at a station furnished with
equipment for chemical-physical and
biological analyses and tests, in addition
to a disinfection process using ultraviolet
rays. Living organisms undergo an ecotoxicity verification process (more in
the box). After treatment, effluents are
discharged into the sea through a pipeline
approximately 13 km long, with 600 m
underwater, in the sea. In 2008, 187,134
m3 of effluents were discharged through
this system.
At ArcelorMittal Tubarão, effluents that
are not directed to internal recirculation
(approximately 2%) are treated before
discharge through the drainage channel.
In 2008, the average volume discharged
by the unit was 871 m³/h, taking
into account the 229.3 m³/h average
recirculation rate of the Reused Water
Treatment Station operating over 12
months.
Sea water, which is also used by the
company, is collected by its own pumping
system and is returned by a long canal
allowing for heat exchange with the
atmosphere, thus keeping temperature
within the legal limits for discharge.
The drainage channels are connected to
a retention dam, keeping effluents for
approximately three hours in a stabilization
pond before discharge. Excess rainwater
from the water collection system is also
directed to the channel system.
The ArcelorMittal Aços Longos
steelworks are now considered a
ArcelorMittal Tubarão
Analysis of
final effluents
pH
Oils and greases
BBA Contagem
8.3
< 5.0 mg/L
0.01mg/L
Suspended solids
22.8 mg/L
Temperature
0.007 mg/L
31.1 °C
The wire drawing units are innovating
water resources management with
increased indices of water recirculation
and use of rainwater as make-up water.
A highlight is the Cariacica steel mill:
the reuse of sewage and rain water
eliminated the discharge of effluents
into the environment, and saved 30%
due to lower purchasing of water.
With an investment of R$ 11,635.00
a physical barrier was built for
retention and decantation of the final
effluent at the unit. After the process,
the effluent is conveyed through a
siphon system for filtering before
reaching the main tank. Next, the
water is stored at the cooling system
pH
Total cyanide
Oils and greases
7.52
13.0 mg/L
Total phenol
< 0.001 mg/L
Suspended solids
Not monitored
0.008 mg/L
Total zinc
0.16 mg/L
0.021 mg/l
Temperature
Total iron
0.65 mg/L
Total zinc
0.36 mg/L
Total lead
Total manganese
At Belgo Bekaert Arames, in Contagem
(MG), the water recirculation rate
reached 98%. The company also reuses
15% of the treated effluent. In the year,
the company discharged 262,356 m³.
It is worth stressing that ArcelorMittal
Brasil does not receive liquid effluents
from other organizations.
ArcelorMittal Vega, in São Francisco
do Sul (SC) – supported by the
Applied Microbiology Laboratory,
Vale do Itajaí University (Univali), and
with the consent of Santa Catarina
Foundation for the Environment
(Fatma) – developed an innovative
project to monitor the eco-toxicity of
the effluents generated by its industrial
production.
Analyses of two microorganisms
determined by the environmental
legislation for use in the monitoring
process – micro-crustacean Daphnia
magna and bacteria Vibrio fischeri
– indicated that the former was
inadequate in the control of effluents
discharged into the sea, as it is less
sensitive to detect toxic elements.
After laboratory tests with ten species,
during a year, marine micro-alga
Skeletonema costatum proved to be
more sensitive in the eco-toxicity
analysis and replaced Daphnia in the
effluent monitoring process. In 2007,
Fatma issued a technical opinion
authorizing the replacement. The
toxicity standards for monitoring were
also defined, although the results were
already in compliance with established
international standards.
< 0.01 mg/L
0.66 mg/L
0.05 mg/L
52.63 mg/L
The mass of discharged liquid
effluents consists especially of
rainwater and sewage water, which
otherwise would be discharged into
the public sewage system.
Total ammonia nitrogen
Total lead
COD
tank of the steel mill equipment, before
being reused.
ArcelorMittal Vega
Total phenol
Total zinc
benchmark for water resources
management within ArcelorMittal.
24.79 °C
Due to the positive results and the high
sensitivity detected, there is a study to
include Skeletonema in the existing law,
thus creating compatible parameters
for all companies discharging effluents
into the sea.
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
ENERGY
22
Efficiency generates R$ 20
thousand in cost reduction
Energy
ArcelorMittal Brasil has been successful
in its initiatives to improve energy
efficiency in its industrial processes.
For the second year running, the
company managed to report reduced
energy consumption while increasing
production. More than that, the
company used the opportunity to
market excess energy equivalent to
9,149,148 GJ (including electric
energy, oxygen, nitrogen and argon).
Evolution - direct energy
consumption (in gigajoules)
ArcelorMittal Juiz de Fora managed to
reduce charcoal consumption in blast
furnace tops by using a charcoal fines
injection system. With this system, total
energy savings reached the 353,722 GJ
mark. ArcelorMittal Florestas, in turn,
has a research under development to
use the methane released during wood
burning for energy generation.
At ArcelorMittal Tubarão, the reuse
of effluents in the mill produced total
energy savings of 3,756 GJ, equivalent
Gasoline
195,622,470
169,261,487
119,583
Natural gas
4,395,999
Electricity
19,543,591
The unit – specialized in IT resources
management – held an internal campaign
to eliminate unnecessary uses, mobilizing
the unit in November. Studies were also
carried out on energy consumption at
ArcelorMittal Sistemas, in partnership
with Cemig technicians.
The result was an energy bill for R$ 48.1
thousand, against R$ 68.3 thousand for
November 2008, with about 1.5% more
in active energy.
Description
Bill total
value
Active
energy
Aug (R$)
63,984.18
(41.63%)
Sep (R$)
60,873.92
(39.02%)
Oct (R$)
67,976.33
(38.05%)
Nov (R$)
68,328.94
(37.93%)
Dec (R$)
48,152.02
(39.53%)
353,722
High purity oxygen
1,423,215
Low purity oxygen
53,262
Compressed air
2008
10,410
Fuel oil
Argon
2007
142,762,238
425,587
Nitrogen
Turning off lights in warehouses and
cooling water recirculation pumps
when not required for operations,
produced cost reductions of up to
R$ 6,083.00/month in the Slab
Conditioning area. In areas used by
employees, simple measures taken
to reduce undue use of equipment
produced a R$ 13,392.81 reduction
in expenses in the high voltage sector,
and R$ 1,992.67 in low voltage,
as well as better use of labour and
material resources. ENERGY >>
ArcelorMittal Sistemas
electricity bills in 2008
Diesel
Charcoal
2006
Another measure taken after a study
was to reduce hot rolling speed from
2 m/s to 1 m/s, representing a 52%
reduction in energy consumption, with
monthly savings of 160 MW/h.
Total energy consumption by
primary source (in gigajoules)
Mineral coal
169,717,465
to approximately 2,012 Dam³. Among
the initiatives in the area of energy
at ArcelorMittal Tubarão, it is also
worth mentioning the production
maximization at more efficient air
separation plants and electric energy
generation plants.
The efforts of the ArcelorMittal Sistemas
team to reduce energy consumption
resulted in savings of about R$ 20
thousand in the December 2008 electric
energy bill as compared to the previous
month.
171,916
1,964
292,936
Note: Total consumption of direct energy = Direct
primary energy acquired + Direct primary energy
produced – Direct primary energy marketed
Industrial unit, Piracicaba (SP)
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
ENERGY
23
Reduction in indirect emissions
In order to reduce its indirect emissions –
those deriving from transportation, travel
or contractors operations – ArcelorMittal
Brasil companies carry forward activities
focusing on the reduction of fuel usage for
transportation.
ArcelorMittal Vega increased the
frequency of maintenance in airconditioning systems and air filters of all
buses – from quarterly to monthly – and
tire pressure is now checked every two
days. The opacity of the fleet is now
checked every month.
Light transportation
was readjusted
to reduce the
number of vehicles,
thus reducing the
consumption of
gasoline and diesel oil
Another measure was aimed at raising
the awareness of the drivers loading
and unloading at the company of the
influence of their driving style on fuel
consumption, by means of theoretical
lectures delivered by a Senai instructor
on Recycling, and hands-on training
with a company instructor with a VCR
installed in the vehicles. In addition,
the Santa Catarina Unit includes fuel
consumption as a target of the Profit
Sharing Program (PPR).
ArcelorMittal Tubarão has contracts with
two transportation companies, Viação
Satélite (collective transportation) and
Vix Logística (light transportation).
The former, providing employee
commuting, used 77 buses in 2008,
consuming 1,387,166 litres of diesel
fuel, a reduction of 84,583 litres when
compared to the amount forecast before
the adjustment in the number of lines
and schedules.
Light transportation, provided by Vix
Logística, was also readjusted to reduce
the number of vehicles, thus reducing the
consumption of gasoline and diesel oil.
New logistics reduced freight expenses by 25% in 2008
Internal vehicles for employee
transportation are now fueled with
biodiesel, which emits less gas than
regular diesel, is biodegradable, and is
produced from a renewable source.
The ArcelorMittal Aços Longos Traffic Centre has been successful in avoiding
the so-called “void return”, i.e. trucks coming back with no cargo after customer
shipment. This not only generates environmental benefits but also reduces the
specific transportation cost per ton of steel.
For this purpose, the company uses a vehicle fleet (not older than five years)
hired in a full-time dedication regime. Therefore, it has become possible to
centralize management of demand and increase vehicle productivity through
identification of traffic flow, specification of routes, types and volumes of cargo
and analysis of time frames to complete a cycle.
Reduction in fuel
consumption (vehicles)
Fuel consumption
(vehicles)
Total = 6.19 GJ
Total = 0.57 GJ
5.20
0.35
0.22
Gasoline
With predetermined routes, it is possible to establish traceability systems, and
loading and unloading schedules, as well as rotation of drivers making possible
24-hour operations to serve customers in the best way. In addition, drivers
attend qualification sessions for the best customer services possible.
On the routes operated by the Traffic Centre, the new operation model produced
freight savings of 14% in 2006, 33% in 2007 and 25% in 2008. With these good
results, the system will be expanded to the flat steel mills and other units.
0.99
Diesel
Traffic centre generates gains in transportation
Diesel
Gasoline
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
TRANSPORT / MATERIALS
24
Materials
Barge for transportation of coils between the units of Tubarão and Vega
The four barges have capacity to carry
9.8 thousand tons of coils each. The
same amount of steel would require the
travel of 300 semi-trailer trucks. For that
reason, the system was qualified as a Clean
Development Mechanism (CDM).
In spite of the several advantages, an
incident happened on January 30, 2008:
while transporting 9,010 tons of coils,
a barge was wrecked next to the access
channel to the port of Sao Francisco do Sul.
Cleaner
transportation
The barges carrying steel coils between
the units of Tubarão (ES) and Vega
(SC), a 1,170-km sea route, not only
reduce costs in about 60% but they are
also a cleaner transportation means,
as the coastal navigation system emits
less greenhouse gases than highway
transportation.
As part of the investments made by ArcelorMittal
Brasil is the implementation of process adjustments
aiming at the efficiency and maximization in the
use of process-related raw materials.
Within its recycling policy, ArcelorMittal Brasil
consumed 2,425,583 tons of waste or
byproducts resulting from external industrial
sources, equivalent to 12.45% of recycled input
materials. Although there is no specific target for
2009, the amount is supervised in the industrial
production plan.
Materials used that are recycled input
materials in 2008 (in tons)
Materials used by weight
(in thousand tons)
Total = 6.19 GJ
The consequences were not very serious:
the pilot and 11 crew members were
rescued and received medical attention.
The barge capsized and went aground on
a sandbank. The coils remained in the hold.
A residual oil spot was observed, but there
were no spills from the tanks.
Acquired scales
Since then, ArcelorMittal Brasil has been
following up the case and supporting all
actions necessary to deal with the water.
As a result of the incident, the group is
fighting a lawsuit filed by 103 fishermen
from the municipality of Itapoá (SC), who
recently filed indemnification demands
against the carrier company that provides
the service for alleged material losses from
the oil spill.
Refractory
The service provider indemnified most
affected parties, even signing a Conduct
Adjustment Term (TAC) with the local
Public Attorney’s Office. The fishermen still
in litigation against the navigation company
are those who decided not to be included in
the referred TAC.
16,971
Acquired blast furnace slag
113,262
Acquired steel scrap (local)
1,865,583
Briquette
Steel scrap: internal recycling
17,556,763
17,718,835
2006
2007
19,493,837
2,495
425,037
2,505
2008
Raw materials connected to processing
Mineral coal
Petroleum coke
Pellets
Breeze coke
Limestone / Dolomite
Heavy oil
Iron ore
Hydrochloric acid
Sinter
Rust inhibitor
Coke
Caustic soda
Charcoal
Sodium thiosulfate
Scrap metal
Defoamer
EAF electrode
Chromic acid
Charcoal for PCI
Scale
Mineral coal for PCI
Zinc
Iron alloys and other materials
(Fe Mn AC, Fe Mn Mc, Fe Si Mn, Fe Vanadium, Fe Niobium, Nitrogen Manganese, Copper, Aluminum drop, Fluorite, etc.)
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
EMISSIONS
25
Emissions
ArcelorMittal Brasil endeavours to
reduce its CO2 emissions by analyzing
and restructuring industrial processes,
whether generating carbon credits or
not. Clean Development Mechanism
(CDM) programs are, however, included
in the Environmental Management
Policy. The programs are in line with the
Kyoto Protocol recommendations and
are related to the reduction of polluting
gases, known as Greenhouse Gases.
In early 2009, the Company concluded
the process for trading carbon credits
generated by reduced greenhouse gas
emissions, an unprecedented occurrence
within the ArcelorMittal Group. The
credits – certified by the United Nations
– were obtained with gas recovery at the
ArcelorMittal Tubarão steelworks. For 10
years the process will prevent the emission
of approximately 500 thousand tons of
CO2. Conducted by the Controller’s Office
– supported by ArcelorMittal Tubarão and
the Environmental Area –, the carbon trade,
unprecedented for ArcelorMittal worldwide,
was executed with the German bank KfW,
and is worth US$ 5 million.
At ArcelorMittal Brasil, other projects aim
at reducing CO2 emissions:
• Cogeneration of electric energy, Heat
Recovery process
• Cogeneration of electric energy,
steelworks gas recovery
• Transportation of coils by maritime
barges
• Reduction of Methane Emissions at Coal
Producing Units
• Injection of Charcoal Fines in Blast
Furnace
• Use of Blast Furnace Gas in the Billet
Reheating Furnace
• Use of renewable biomass in charcoal
blast furnaces
• Forest Producer Program
Ozone depleting gases
ArcelorMittal Tubarão does not emit the
gases CH4, N2O, HCFs, PCFs and SF6. In
1999 the company eliminated all sources
of CFC11 emissions. At ArcelorMittal Vega
there are no CFC11 emissions either.
During 2008, Belgo-Mineira Bekaert
Artefatos de Arames used in its processes
13 kg of FREON R-22, a liquefied gas used
for cooling. The gas has been gradually
replaced by ISCEON 29, with no ozonedepleting potential.
CO2 emissions by source
(tons)
INDIRECT EMISSIONS
2007
2008
Power generation
194,798
292,205
Physical-chemical
processing
13,401,398
9,058,798
NOx, SOx and other significant air emissions
(t/year)
Emissions
2008
NOx
6,235
SOx
17,356
Persistent organic pollutants (POP)
0.269 (g/year)
Volatile organic compounds (VOC)
33.58
Hazardous air pollutants (HAP)
42.06
Smokestack emissions
1,600
Fugitive emissions
According to the survey, the
activities in the Espírito Santo unit
indirectly emitted 5,780,348 tons
of CO2 in 2008.
562
Particulate material (PM)
3,225
ArcelorMittal Brasil – emissões de CO2
(em toneladas)
14.230.684
13.956.196
2006
2007
14.768.826
2008
Note: Calculations made with ArcelorMittal Group
methodology, following precepts by WISI Balance Site
Employee at the Piracicaba Unit (SP)
ArcelorMittal Tubarão calculated
indirect greenhouse gas emissions
related only to employee
commuting and business travel.
Other indirect emissions account
for less than 5% of total emissions
and have not been considered, and
have no reduction targets.
At ArcelorMittal Tubarão, monitoring
identified low indexes of indirect emissions
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
WASTE
26
Waste
The ArcelorMittal Brasil guidelines for
management of waste and byproducts
are based on a preventive approach,
continuous improvement and on
principles to minimize generation;
maximize internal reuse, recycling and
sales; and properly dispose of waste
in compliance with all applicable laws.
The company invests in research and
development of new uses for waste
generated in the processes, seeking
excellence and sustainability in steel
production. All these activities are
based on a strict system of industrial
standards to ensure control and efficient
management.
Results in 2008
At ArcelorMittal Tubarão, the waste
reutilization rate in 2008 was 99.66%, a
benchmark for the sector, with 33.16%
recycled or reused, 64.19% marketed,
and the remaining 2.11% treated and
stored at the processing plants for
possible recycling/reuse or sale.
Total revenues with the sales of
byproducts reached R$ 86,017,399.67,
with the evolution of waste sales to
cement and chemical industries, ceramic
producers and railways.
ArcelorMittal Vega does not have a
system for final disposal of waste within
own premises, with the waste being sent
to specialized contractors. Solid residues
are properly packaged in retainers at the
production lines and temporarily stored in
a warehouse, and finally sent to their final
destination after screening.
The final waste disposal method was jointly
determined with CLE Brasil (a company
with Grupo Veolia, directly responsible for
the operation), aimed at the maximum
reuse and recycling, according to
screening, available technology and cost.
The ArcelorMittal Aços Longos steel
producing units reached an average
of 86% waste and byproduct reuse in
2008. Over the year, sales of byproducts
accounted for net revenues of
R$ 22,111,000.00.
At the company, the waste destination
method is determined by the
environmental area of the Industrial Units,
together with the corporate environmental
area and the top management.
From slag to opportunity
Steelmaking slag, an inherent residue
of steel production, has been used as
a tool for social promotion and fight
against environmental degradation by the
ArcelorMittal Brasil business units.
In 2008, ArcelorMittal Tubarão obtained
technical and environmental licenses to
use steelmaking slag as an aggregate for
concrete artefacts and floors. As a result,
the waste has been used for the benefit
of society, to pave roads or to produce
artefacts for civil construction, or even for
more complex tasks such as soil acidity
reduction and filtering in sewage treatment.
for use as asphalt layer base and
sub-base, with the Department of
Highways in Minas Gerais.
There is an ongoing study to use waste
as a foundation for artificial reefs, to
foster the use of marine biodiversity in
sustainable economic exploration and the
preservation of areas as an element in
underwater landscaping. Shellfish farming
may well become another source of
income for local fishermen.
For 2009, the target is to
implement the SAP module for
Waste and Byproduct Management,
unprecedented in Brazilian steelworks,
at ArcelorMittal Juiz de Fora. The
system aims at monitoring the entire
waste and byproduct chain generated
by the company, mapping the entire
waste life cycle. WASTE>>
ArcelorMittal Aços Longos endeavours to
develop new projects to add value to its
waste. Below are some examples:
• Agreement with Institute for Highway
Research (IPR), National Department of
Transportation Infrastructure (DNIT) for
tests with slag as asphalt layer base and
sub-base.
• Project for recycling the dust from the
de-dusting system of the ArcelorMittal
Piracicaba electric steelworks, for
production of pre-melted agglomerate
for the electric furnace, therefore
preventing its disposal in landfills and
reducing raw material consumption.
• An agreement with the Federal
University of Minas Gerais (UFMG), for
recycling alternatives for LD steelmaking
sludge from ArcelorMittal Monlevade.
The waste has significant iron content,
and is potentially recyclable for sintering
plants, reducing iron ore consumption and
generating income from the zinc.
• Tests with electric steelmaking slag
Waste at the yard of ArcelorMittal Tubarão
Reuse of steelmaking
slag in figures
• Pavement (paved road base
and sub-base) – 400,000 t since
2005
• Primary coating of rural and
neighbouring roads (REVSOL)
– 700,000 t since 2001 and
230 km of roads with primary
coating since 2006 (New Ways
Programme)
• Railway ballast – 530,000 t
since 2001
• Agriculture (soil correction) –
10% gains in production
• Cement industry – 200,000 t
since 2001
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
WASTE
27
Employee uses PPE at ArcelorMittal Vega
ArcelorMittal Tubarão1 - Solid waste
Destination
Hazardous
Non-hazardous
Reuse ²
Tar sludge: 2,198 t
Secondary steel mill de-dusting powder: 21,012 t
Reused industrial waste (sintering): 583,232 t
Steelmaking slag reused in internal investment works: 209,090 t
Recycling ³
External recycling of batteries: 3.3 t
Light bulbs: 57,000 units
Vegetal oil: 13.44 t
Steelmaking coarse sludge: 63,953 t briquetting
Steelmaking thin sludge (sintering + briquetting): 75,751 t
Steel slag (sintering): 22,066 t
Recovery
Reuse at coal piles:
Grease: 60 t
Lubricant oil: 8 t
Reuse of lime fine at Sintering Plant: 26,501 t
Reuse of KR slag at Sintering Plant: 22,066 t
Final disposition in controlled landfill
Oil contaminated with diverse solids: 29.1 t
Clinical waste: 4.96 t
On-board waste (port): 35,610 t
Water contaminated with oil (port): 464,020 t
Organic (restaurant): 1,109.35 t
Local storage
Zero
Plant processing (steelmaking slag, pig-iron making slag, R-BIT industrial waste): 435,000 t
CASP – Steelmaking sludge, blast furnace sludge, EP powder: 430,846 t
ArcelorMittal Vega1- Solid wastes
Destination
Hazardous
Non-hazardous
Reuse ²
0
0
Recycling ³
Lubricant oil, hydraulic oil, emulsions, hardening fluids: 1,142.79 t
Ink cartridges and toner: 0 t
Grinder sludge: 64.93 t
Contaminated empty packaging: 6.30 t
Scrap metal: 55,790 t
Iron oxide: 4,134 t
Zinc slag: 802 t
Plastic, paper and cardboard: 78.05 t
Hazardous Waste
In 2008, ArcelorMittal Brasil
transported 107,266.4 tons
of hazardous waste under of
terms of the Basel Convention.
Mercury lamps 0.72 t
Recovery
Chromium bath: 23.06 t
Electronic material: 6.66 t
Used edible oil: 0.00 m3
Incineration (or use as fuel)
0
Wood: 121.40 t
Clinical waste: 1.08 t
Contaminating waste, oil and grease: 21.63 t
Organic waste: 159.06 t
Rubbish: 45.27 t
Iron oxide: 1.121 t
ETS biological sludge: 65.10 t
ETS chemical sludge: 484.05 t
Contaminating waste, oil and grease: 47.18 t
Degreasing sludge: 3.90 t
Recovered oil: 23.02 t
0
Sanitary landfill (industrial)
Others (co-processing)
ArcelorMittal Aços Longos1- Solid waste
Destination
Hazardous
Non-hazardous
9,158
1,523,553 t
Incineration (or use as fuel)
1,1 t
0
Sanitary landfill (industrial)
0
746 t
Local storage
40,816 t
2,471 t
Industrial landfill
17,272 t
22,388 t
Reuse ²
Recycling ³
1. The company does not perform underground injection of waste. 2. Reuse: a process that does not modify the properties for use in another process. 3. Recycling: a process that modifies the properties and use as byproduct
WASTE>>
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
WASTE
28
Destination of hazardous waste
ArcelorMittal Vega
Destination
Waste
Co-processing in cement kilns
Filter cake; degreasing sludge; used grease; Qwerl sludge; bearing washing; waste contaminated with oil and
grease; chemical sludge from Effluent Treatment Station; contaminated empty packaging
Re-processing
Chromatization waste; residual acid
Recycling
Ink cartridges and toner; electronic material, contaminated empty packaging,
mercury lamps (with mercury recovery)
Treatment and recycling of oily emulsion waste
Recovered oil
Lubricant oil refining/ re-industrialization
Lubricant oil, hydraulic oil, emulsions, hardening fluids
Industrial landfill
Contaminated waste chemical product/ paint/ Qwerl/ biocide;
Clinical waste (after autoclave sterilization and grinding)
Processing
Grinder sludge
Re-processing and final disposal
Chromium bath
Spills
In 2008 there were no
significant leakages or
spills at ArcelorMittal Brasil
operational units. The target
for 2009 is zero leakage
of any hazardous products
handled either by the
Company or on its behalf.
ArcelorMittal Aços Longos
Destination
Waste
Recycling ¹
Depleted hydrochloric acid; lead soil; used containers; used car batteries; empty 200-liter drums; used alkaline
batteries; used fluorescent lamps
Incineration ¹
Clinical waste; expired reagent/ chemical product/ others; imported wooden boxes without phytosanitary certificate of origin; used sleeve filter ²
Re-refining ¹
Used oil
Returned to supplier
Empty agrochemical packaging 3; industrial towel 4
Co-processing
Material contaminated by oil and grease (in clinker kilns in cement industries) 5
Industrial landfills (on-site or external/ temporary storage)
Used sleeve filter ²; electric arc furnace de-dusting powder 6
1. In environmentally proper place. 2. Destination depends on industrial units. 3. Supplier ships to environmentally licensed location 4. Supplier performs specific treatment and returns for reuse 5. In environmentally licensed location
6. There is on-site temporary storage..
ArcelorMittal Tubarão
Used oil
Naphthalene absorption oil
Tar
Recycling or external recovery or
disposal in industrial landfill
Tar sludge
Grease
On-board waste (port)
Clinical waste
The waste reuse rate at
ArcelorMittal Tubarão is
99.66%
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
BIODIVERSITY
29
Biodiversity
A major challenge in the steel industry
activity is to mitigate the impacts of
this kind of operation. ArcelorMittal
Brasil invests in the identification
and monitoring of areas with high
biodiversity value within or near its
units. From the studies, information
on environmental impacts is updated,
including the identification of risk
scenarios, determination of remedial
actions and assessment of the
effectiveness of such actions.
Some of the main studies at
ArcelorMittal Brasil is biodiversity
monitoring aimed at identifying species
of local fauna and flora, including a
survey of endangered species in progress
in all units.
In 2008, ArcelorMittal Aços Longos
concluded the avifauna (birds) monitoring
started in 2007. The inventories of fish
fauna and herpetofauna (reptiles and
amphibians) are still in progress to be
concluded in 2009.
In Aços Planos (Flat Steel), ArcelorMittal
Vega analyzed the mammalian fauna,
avifauna (birds) and flora, at the Private
Natural Heritage Reserve (RPPN), a
760-thousand-sqm area surrounding
the company. The study recorded 14
mammal species, 152 wild birds, and
261 vegetable species including trees
and other plants. Among the species
preserved at the place, there are
specimens of Guanandi, the first Brazilian
hardwood, and Ocotea catarinenses, an
endangered species. The second stage –
in progress – is surveying the fish fauna,
entomofauna (insects) and herpetofauna
(reptiles and insects).
ArcelorMittal Tubarão, operating within the
Atlantic Forest – one of the planet’s biome
with the highest biodiversity value – keeps
a Wild Fauna Management Program,
developed to improve the protection of
species in part of its green areas. The
studies include the reintroduction of
animals in existing habitats.
Impact management
Aligned with global guidelines,
ArcelorMittal Aços Longos has legal
reserve areas, Private Natural Heritage
Reserves (RPPNs) and Permanent
Protection Areas (APP). The forest
management areas are monitored by
private security teams and fire brigades.
There is also an agreement with the Forest
Police for their action in case of incidents.
If necessary, the program for recovery
of degraded areas and the emergency
action plan are put in action to recover
Girl observes biodiversity
in Piracicaba (SP)
the original status of areas possibly
affected by industrial operations.
At the Guilman Amorim Hydroelectric
Plant, the Plan for Conservation
of fish species in the area is under
implementation, to be concluded in
2009. In addition, the local RPPN, located
in an Atlantic Forest section with high
recovery interest (Doce River Basin), is
undergoing a systemic management –
including periodical assessment of the
vegetable coverage and fauna diagnosis
–, implemented to accelerate the
recovery of native species.
With annual investments of R$ 79.2
thousand, between 2009 and 2012
ArcelorMittal Florestas will survey
and monitor vegetation remnants and
vulnerable or endangered plant species.
The target is to stabilize reforested areas
– environmentally and biologically. The
project’s first stage started in April 2009
and will be concluded in March 2010,
will analyze maps and aerial photos to
identify locations for research.
A major study
in progress at
ArcelorMittal Brasil
is biodiversity
monitoring
In 2008, ArcelorMittal Tubarão performed
maintenance services in the Green Belt,
including tree pruning, fertilization and
planting 10 thousand seedlings of several
species, produced at the company’s own
nursery, located in a 1,152-sqm area
next to the company’s Environmental
Education Centre.
BIODIVERSITY>>
Tornar o Aço mais Sustentável
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
BIODIVERSITY
30
Aiming at reducing the impact of
winds, eucalyptus and acacia trees
were planted to create a green barrier
around the new Slag and Coal Yard next
to the Sol Coking Plant and the North
Gate of the unit.
Another particularity of the Espírito
Santo unit is the basin formed by eight
lakes and a creek. A system of small
streams interconnects the central lake
to another five. Since 2004, hydrological
monitoring of the lakes has been performed
to assess physical, chemical and biological
parameters. The results show different
levels of pollution in the water of the two
lagoons, impacting not only the others, but
also external bodies receiving the water.
Although ArcelorMittal Tubarão seem to
be the origin of contamination, studies
indicate that it actually comes from
sanitary effluents from neighbouring
districts through bodies of water located
in the districts of Novo Horizonte and
Habitar Brasil. In 2009, the target
is to contact the Serra Municipal
Administration, Cesan and Iema to
report the flow of external effluents into
the unit. Measures have already been
taken by the agencies to correct the
problems identified.
At ArcelorMittal Vega, surveys show
that the number of species and animal
specimens has been increasing in recent
years when compared to other local
Habitats protected or restored
Unit
ArcelorMittal Tubarão
ArcelorMittal Vega
Size
Type
Situation*
Partnership to protect
or restore
102 ha
Permanent Preservation Area
Preservation area consisting of sandbank and mangrove with vegetation
undergoing regeneration. The target for 2009 is to keep the same area
None
35 ha
Environmental Education Centre
Reforestation with growth, native, fruit and riparian vegetation species
undergoing regeneration. The target for 2009 is to keep the same area
None
27 ha
Mill Green Belt
Ponds and creeks with vegetation. The target for 2009 is to keep the same area
None
76 ha
RPPN São Francisco do Sul
Awaiting approval by IBAMA
None
ArcelorMittal Aços Longos – 253.50 ha
UHE Guilman Amorim
182.6 ha
RPPN Antônio Dias (MG)
Permanent protection area, with private security, fire brigade
Environmental Police
Antônio Dias and Nova Era (MG) Legal Reserve
Permanent protection area, with private security, fire brigade
Environmental Police
518 ha
Private Natural Heritage Reserve (RPPN) in Joao
Monlevade
Preserved
Local Fire Dept.
382 ha
Permanent Preservation Area in Juiz de Fora
Preserved
None
400 ha
Legal Reserve Area in Juiz de Fora
Preserved
None
ArcelorMittal Cariacica
59.81 ha
Permanent Preservation Area
Preserved
None
ArcelorMittal Florestas –
Região Bahia
1,846 ha
Permanent Preservation Area in the region of Teixeira de
Freitas, Alcobaça, Caravelas and Prado (BA)
Preserved
None
ArcelorMittal Florestas –
Região Rio Doce
2,059 ha
Permanent Preservation Area in the region of Coronel
Fabriciano, Dionísio, Joao Monlevade, São José do Goiabal,
Marliéria and São Pedro dos Ferros (MG)
Preserved
None
ArcelorMittal Florestas –
Centre-West Region
485 ha
Permanent Preservation Area in the Centre-West Region –
Abaeté, Bom Despacho, Dores do Indaiá, Martinho Campos Preserved
and Quartel Geral (MG)
None
1,358 ha
Permanent Preservation Area in the North Region –
Carbonita, Diamantina and Senador Modestino Gonçalves
ArcelorMittal Monlevade
ArcelorMittal Juiz de Fora
ArcelorMittal Florestas –
Região Norte
* At the end of 2008
Preserved
None
ecosystems. In addition, 40 thousand
sqm of areas used as debris storage
during the construction works were
reforested with native trees, and the
remaining areas not used by the mill
facilities are covered with vegetation.
The largest impact on biodiversity
identified by ArcelorMittal Brasil
in consequence of its activities
happened in marine habitats, in aquatic
microbiological communities, and in fish
communities in the mid-Piracicaba River.
The directly affected section extends for
20 km along the river where there are a
lentic environment (slow moving water)
and a lotic environment, with altered
running flow. The impact was deemed as
irreversible.
Total of endangered species*
by risk of extinction level
Critically endangered
3
Endangered
3
Vulnerable
5
Near threatened
0
Low risk
3
* All from aquatic habitats
BIODIVERSITY>>
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
BIODIVERSITY
31
Protected or high biodiversity value areas
ArcelorMittal Vega
ArcelorMittal Cariacica
Location:
São Francisco do Sul (ES)
Location:
Vitória (ES)
Total area of the company:
2.2 sq km
Total area of the company:
Own area managed by the company
Position regarding the protected area:
A 0.76 sq km RPPN area within the company’s borders, and a 0.75 sq km sandbank
preservation area at the treated liquid effluent outfall (non-contiguous)
Position regarding the protected area:
Within the company’s premises and/or in surrounding areas
Type of operation:
Administrative offices and production area
Type of operation:
Administrative offices and production area
Size of the unit:
Size of the unit:
0.1 sq km
113 ha total area, with 0.78 ha built area, and 59.81 ha Permanent
Preservation Area
Biodiversity value:
The RPPN features several biomes and a diversity of avifauna and flora. At the
RPPN office, there is an Atlantic Forest native species nursery, including seasonings,
vegetables and flowers, with average annual production of 500 thousand
seedlings. The sandbank area is part of the Acaraí State Park and is considered the
last untouched area in this biome
Biodiversity value:
Land ecosystem with 25 ha
ArcelorMittal Tubarão
ArcelorMittal Florestas – Região Bahia
Location:
Southern Bahia (municipalities of Alcobaça, Caravelas and Prado)
Total area of the company:
Land leased or managed by the company
Position regarding the protected area:
Within the company’s premises and/or in surrounding areas
Type of operation:
Forestry, charcoal production and administrative offices
Size of the unit:
16,084.37 ha total area, with 8,843.52 ha built area, 1,946.37 ha APP and
1,946.37 ha Legal Reserve Area
46% of the unit area consists of Atlantic Forest native vegetation
Location:
Serra (ES)
Total area of the company:
1,338 ha
Biodiversity value:
Position regarding the protected area:
Permanent Preservation Area (APP) within the company’s premises, totalling
122 ha
ArcelorMittal Florestas - Região Centro-Oeste
Type of operation:
Administrative offices and production area
Location:
Size of the unit:
13.38 sq km
Region of Abaeté, Bom Despacho, Dores do Indaiá, Martinho Campos and
Quartel General (municipalities located in the Center-West Region of Minas
Gerais)
Biodiversity value:
There are eight lakes within the area. Six of them are interconnected, forming
the Praia Mole creek
Total area of the company:
Land leased or managed by the company
Position regarding the protected area:
Within the company’s premises and/or in surrounding areas
Type of operation:
Forestry, charcoal production and administrative offices
Size of the unit:
27,881.73 ha total area, with 24,221.32 ha built area, 485.57 ha APP and
485.57 ha Legal Reserve Area
Biodiversity value:
20% of the area consisting of Cerrado (Brazilian savannah) native vegetation
ArcelorMittal Juiz de Fora
Location:
Juiz de Fora (MG)
Total area of the company:
The entire own area managed by the company
Position regarding the protected area:
Within the company’s premises
ArcelorMittal Florestas - Região Norte
Type of operation:
Administrative offices and production area
Location:
Size of the unit:
2,000 ha, with 13.5 ha built area, 382 ha Permanent Preservation Area, and
400 ha Legal Reserve Area
Region of Carbonita, Diamantina and Senador Modestino Gonçalves
(municipalities in Central Minas Gerais)
Total area of the company:
Land leased or managed by the company
Land ecosystem with 471.15 ha
Position regarding the protected area:
Within the company’s premises and in surrounding areas
Type of operation:
Forestry, charcoal production and administrative offices
Size of the unit:
37,353.19 ha total area, with 26,436.80 ha built area, 1,357.80 ha APP and
1,357.80 ha Legal Reserve Area. It also has a 6,000 ha RPPN
Biodiversity value:
33% of the area consisting of Cerrado (Brazilian savannah) native vegetation.
It features fauna and flora diversity rates compatible with the Conservation
Units in the same region
Biodiversity value:
ArcelorMittal Monlevade
Location:
João Monlevade (MG)
Total area of the company:
The entire own area managed by the company
Position regarding the protected area:
Within the company’s premises and in surrounding areas
Type of operation:
Administrative offices and production area
Size of the unit:
578.20 ha, with 60.20 ha built area and 518 ha RPPN
Biodiversity value:
Activities to be performed in response to indicator
ArcelorMittal Florestas - Centre-West Region
Location:
Region of Abaeté, Bom Despacho, Dores do Indaiá, Martinho Campos and Quartel
General (municipalities located in the Centre-West Region of Minas Gerais)
BIODIVERSITY>>
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
BIODIVERSITY
32
Other initiatives to mitigate impacts
ArcelorMittal Tubarão
ArcelorMittal Florestas
Scope
Initiative
Result/target
Scope
Initiative
Result/target
Noise pollution
To reduce noise from vehicles
Installation of 23 booths (for assessment of Individual Daily
Duty) with acoustic lining; time reduction of engines working
during loading; Measured average noise reduction: 5 dB
Water usage
To reduce specific water consumption at the
forest and in seedling production
Reduction of 11% at the forest and 30% in seedling production
Effluents
To recirculate 100% of the effluents in the
Seedling Production Units
In the Centre-West Region, recirculation volume reached
4,487 m³ of water
Noise pollution
To measure operational noise in Dionísio (MG)
In 2008:
Noise during daytime: 48 dB
Noise during the night: 42 dB
Scope
Initiative
Result/target
Use of materials
To reduce the specific consumption of natural
gas
Average 2008: 17.73 m³/t
Target (July 2009): 17.20 m³/t
Emissions
Description
Quantitative results
Effluents
To reduce the specific consumption of
hydrochloric acid
Average 2007: 16.89 kg/t
Average 2008: 18.73 kg/t
Target 2009: 16.00 kg/t
ArcelorMittal Vega
Scope
Initiative
Result/target
Noise pollution
To monitor noise in external areas
Measurements indicate that the noise produced by the industrial
process is within the limits established by law, with no discomfort
for neighbouring community
ArcelorMittal São Paulo
Scope
Waste
Initiative
To recycle plastic, paper and cardboard
Result/target
17.16 t sent for recycling
BBA Hortolândia
ArcelorMittal Itaúna
Scope
Water usage
BBA Contagem
Initiative
Result/target
To collect rainwater
5,000 m³
To reduce water consumption
From 1,708 m3 to 646 m3
To reduce industrial water consumption
From 4.312 m3 to 2.752 m3
Scope
Initiative
Result/target
Use of materials
To recover packaging material: reels and pallets
26,010 units
Emissions
To use natural gas boiler
30% reduction in emissions of particulate material
(128.33 mg/Nm³)
Effluents
To reuse the acid water from the gas washer to dilute
pickling bath
Approximately 1,036.8 m3/year
Waste
To reduce solid residues at the ETS
208.3 t/year
Scope
Initiative
Result/target
Use of materials
To reduce lead consumption
Reduction from 2.69 kg/t to 2.42 kg/t
Effluents
To treat industrial effluents at the ETS
100% of effluents treated in compliance with the law
ArcelorMittal Juiz de Fora
Scope
Initiative
Result/target
Noise pollution
To measure operational noise in Dionísio (MG)
In 2008:
Noise during the day: 51.10 db
Noise during the night: 52.90 db
ArcelorMittal Sabará
BBA Osasco
Guilman Amorim Hydroelectric Plant
Scope
Initiative
Result/target
Scope
Initiative
Result/target
Waste
To reuse 100% of the industrial waste (scales
+ granulated metal powder) at Monlevade
steelworks
Increase in total reused waste (scales + granulated metal powder)
from 118,960 t/year to 776,380 t/year
Effluents
To increase the efficiency of the Sanitary ETS, based
on legal parameters and Enzilimp use
Improvement 95% BOD (2007-2008) and 70% COD
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
SANCTIONS / ENVIRONMENTAL EDUCATION
33
Themes for the ArcelorMittal
Brasil Award
2009 – Healthy Food: a delicious lesson
Environmental
education
We are currently awaiting the Sao Paulo
State Government’s arrangement for the
purchase of the area.
As part of the same agreement, the
Company agreed to implement, together
with the municipality of Piracicaba, the
Santa Terezinha Natural Municipal Park in
an area of approximately 40 ha. The park
has already been inaugurated.
Olhos d’Água Project complies with TAC with revegetation and replanting trees
Environmental
sanctions
In 2008 ArcelorMittal Brasil
operational units did not receive any
significant fines or non-monetary
sanctions for noncompliance with
environmental laws and regulations.
The company is now complying with
the Agreement for Environmental
Compensation (TCCA) and the Conduct
Adjustment Agreement (TAC).
The Agreement for Environmental
Compensation resulted from the
expansion of ArcelorMittal Piracicaba,
in 2004, and its value was arbitrated
in 0.5% of the total costs for the
project implementation to be used
in environmental compensation
projects. ArcelorMittal Brasil aims to
use the funds, which have already
been deposited in a bank account, in
the protection of muriquis, or woolly
spider monkeys, a critically endangered
species. It is the largest monkey in
Latin American that lives only in the
remaining Atlantic Forest of southeastern Brazil.
The agreement involves the creation of
an Integral Protection Conservation Unit,
in a piece of land known as Barreiro Rico,
in the municipality of Anhembi, in Sao
Paulo. ArcelorMittal Brasil has already
executed work on area demarcation
and georeferencing on its own account.
The Conduct Adjustment Agreement was
also signed in 2004. In August of that
year, part of the area of the Olhos D’Água
Distribution Centre, in Minas Gerais, was
invaded by 75 families that occupied the
area in a disorderly manner and caused
environmental damage. ArcelorMittal Brasil
removed all the families and indemnified
them for the evacuation..
In March 2006, still in fulfilment of the
TAC, the Company submitted to the
Environmental Public Prosecutor’s Office
the Plan for Recovery of Degraded
Area (PRAD) referring to planting and
revegetation in the area degraded by the
squatters, a Permanent Preservation Area
on the banks of Bonsucesso Creek.
Currently, 70% of the area is already
planted. The Company also provided
chemical grubbing and removal of rubbish
left at the place, in accordance with what
was established by the Plan for Recovery
of Degraded Area.
It is the company’s duty to spread
knowledge about environmental
preservation. ArcelorMittal Brasil
develops environmental education
programs in almost all its units. Some of
the operational units have environmental
education centres aimed at raising critical
awareness and changing environmental
behaviour. For this purpose, they are
toured by students and people from the
communities, so as to involve them. Some
of the group’s units maintain Private
Natural Heritage Reserves (RPPNs) where
fauna and flora are researched.
The Company is also concerned about
entering into partnership agreements
with public agencies aiming at
developing projects to protect natural
resources. Among a series of initiatives
in environmental education, highlight
goes to the Program for Environmental
Communication, a partnership of
ArcelorMittal Tubarão with public and
private schools to provide teachers
and students with reflections on
environmental awareness. Only in 2008,
125 schools were involved and, since
its beginning, the project has already
benefited over 100 thousand students
In 2008, a highlight in the Program
for Environmental Communication was
the 11th Meeting on Environmental
Education, in June, promoting reflection
on the importance of developing socioEDUCATION>>
2008 – Enter the climate! A reflection
on global warming
2007 – Keeping an eye to the city
2006 – Ethics and environment
2005 – Conscious consumption for a
better world
2004 – The best of me for the best of
worlds. What I have done and how I can
continue
2003 – The best of me for the best of
worlds
2002 – What are the main ecosystems
in your community?
2001 – All living beings are important
2000 – Rediscovering our waters
1999 – Ecological citizenship starts at
home
1998 – Planet Earth: what can I do for
it?
1997 – Wise consumption privileges life
quality
1996 – Water: use wisely for
continuous supply
1995 – Wastefulness: use wisely and
you will lack nothing
1994 – Garbage, how to solve this
problem?
1993 – River: source of life
1992 – The Company and the
Environment
Making Steel more Sustainable
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
SANCTIONS / ENVIRONMENTAL EDUCATION
34
The ArcelorMittal
Brasil Environment
Award was created
in 1992 and since
then it has enjoyed
the participation
of over 4 million
students
environmental projects. The activities
were intended for educators, students,
parents and councils of partner-schools,
municipal secretariats of education and
environment of Vitória, Vila Velha, Serra
and Cariacica, and the Espírito Santo
State secretariat of education, in addition
to company partners and employees.
Around 500 people attended the meeting,
held at the Environmental Education Centre
(Ceam). With the theme “Environmental
Education: we are part of a whole”, the
program included playful activities focusing
on environmental knowledge.
The ArcelorMittal Vega Environmental
Education Program has managed to reach
a variety of publics (students, teachers,
employees’ children, fishermen’s children,
and the community), making people
aware of environmental issues and raising
their interest for protecting nature.
Parts of the program:
• School Contest – an activity involving
8 thousand students from Sao Francisco
do Sul schools, raising their awareness on
environmental preservation
• Environmental Qualification for
Teachers – environmental program for
teachers of schools in São Francisco do Sul
and region
• Colours and Flavours – distribution
of seedlings of flowers, fruit trees,
seasoning, teas and vegetables among
the community of Sao Francisco do Sul
and employees of Condomínio Vega,
an incentive for the creation of gardens
at home
The Award was created in 1992 and
since then, it relied on the participation
of 4,131,710 students. In the last
ten years, 6,984 schools from 40
municipalities were involved.
• Green with Life – alternative
environmental education program for
students at Sao Francisco do Sul
schools and the ArcelorMittal Vega
employees’ children.
• Agreement with Casa Familiar do
Mar – offering internship programs
for students from the institution
for complementary environmental
education
The program includes incentives for
the creation of flower and vegetable
gardens at home – with distribution
of seedlings – and internship at the
Private Natural Heritage Reserve of
ArcelorMittal Vega.
Another important initiative is the
ArcelorMittal Brasil Environment
Award, a writing and drawing contest
developed in schools in the states of
Bahia, Espírito Santo, Minas Gerais and
Sao Paulo, aimed at promoting debate
on environmental and sustainability
issues. Over the school year, students
develop activities on the proposed
theme for the annual edition,
incorporating reflection on citizenship
and ethics. The theme for 2008 was
Global Warming.
Students read a publication about the ArcelorMittal Vega School Contest
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
35
VALUE GENERATION
SUPPLIERS
COMMUNITIES
CULTURE
SOCIAL PROMOTION
SANTA CATARINA FLOODS
HUMAN RIGHTS
The companies forming ArcelorMittal Brasil
have a long track record of action in the
communities where they are present, through
activities to promote or sponsor a wide
range of projects intended to improve the
population’s quality of life. The projects aim
especially at education, social promotion,
culture, health, environment and urban
infrastructure.
Enriching
our
communities
Enriching our communities
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
VALUE GENERATION
36
Value Added Statements (in R$ million)
PARENT COMPANY
In 2008, the company’s value added was
R$ 6.86 billion, 15.4% higher than in 2007
Following the Company’s global guidelines,
ArcelorMittal Brasil develops corporate
policies and internal and external
programs to ensure that its economicfinancial performance would benefit
the communities where it is inserted. In
addition, when establishing its business
strategy, the Company is based on
the diversification and quality of its
products, services and markets and on the
permanent search for competitive costs.
The Company works so that a
considerable amount of the value
generated by its productive chain will
benefit society at large, especially
focusing on three aspects: education,
health & safety, and social promotion.
2008
2007
2008
2007
13,409,044
7,559,198
24,733,031
19,335,154
Rebates, losses and recoveries of contingencies
(24,801)
(31,402)
(55,472)
(44,131)
Revenues from own assets
592,569
142,133
1,122,188
1,443,517
Other operating revenues
125,994
29,280
272,404
93,010
14,102,806
7,699,209
6,072,150
20,827,550
Raw materials consumed
(6,675,260)
(3,745,051)
(8,447,033)
(7,869,205)
Cost of goods and services
(2,869,383)
(1,225,176)
(5,977,262)
(4,079,971)
(351,904)
(301,808)
(2,504,808)
(1,023,026)
-
150
(14,830)
(5,272,035)
(16,928,954)
(12,987,032)
(2,326,104)
(844,709)
(3,233,949)
(1,738,605)
1,880,155
1,582,465
5,909,248
6,101,913
1,613,902
1,096,382
7,047
(388,997)
24,770
17,048
24,770
17,048
8,798
7,934
8,900
8,048
REVENUES
Sales of products and services
THIRD-PARTY INPUT
Energy, services and other operating expenses
Recovery (loss) in the realization of assets
(9,896,547)
Financial assistance received from
government
In 2008, ArcelorMittal Brasil received
tax incentives in the amount of R$
17,110,000.00 and subventions for
investment, research and development in
the amount of R$ 410 thousand.
CONSOLIDATED
Depreciation, amortization and depletion
Net value added produced by the entity
Value added received from transfer
Result on investment in affiliates
Dividends, interest of investment evaluated at cost
Other financial income and rent
Financial revenues and monetary variance
TOTAL VALUE ADDED
1,600,072
65,335
908,397
205,662
3,247,542
1,186,699
949,115
(158,239)
5,127,697
2,769,164
6,858,363
5,943,674
529,854
267,357
1,232,475
1,021,631
9,318
9,557
17,464
22,484
106,128
48,018
234,053
195,814
EMPLOYEES
Payroll and payroll taxes
Management remuneration (note 24)
Profit sharing with employees
Pension plan
Statements of resources
generated in 2008
24%
19,396
7,466
35,840
29,239
664,697
332,398
1,519,832
1,269,168
Federal
627,932
447,948
1,881,991
2,046,132
State
138,034
145,666
388,720
356,124
8,524
3,961
23,185
6,994
-
(272)
(70,375)
(183,198)
774,490
597,303
2,223,522
2,226,052
973,227
(434,030)
1,318,620
(870,878)
10,716
-
10,716
-
TAXES
22%
Municipal
(-) Tax incentives
FINANCERS
Interests and monetary variance
22%
32%
Capitalized financial charges
Leases and rents
133,326
67,491
155,226
72,434
1,117,269
(366,539)
1,484,562
(798,444)
2,523,043
2,266,743
2,737,603
1,958,480
48,198
(60,741)
(1,107,156)
1,288,418
2,571,241
2,206,002
1,630,447
3,246,898
5,127,697
2,769,164
6,858,363
5,943,674
SHAREHOLDERS
Shareholders
Taxes
Employees
Financers
Interest on shareholders’ equity and dividends
Retained earnings
Enriching our communities
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
SUPPLIERS
37
Suppliers
Service contracts
include clauses
aimed at reducing
possible risks in
the provision of
services
During the year, approximately 28%
of the ArcelorMittal Brasil acquisitions
of raw materials and others occurred
in the regional or local sphere, thus
ensuring job generation, tax collection
and improvement of socio-economic
conditions of the communities.
This is offset by requirements included
in supply contracts aiming at ensuring
excellence not only in aspects such as
quality and reliability, but also in socioenvironmental performance and the
product impact.
The document General Conditions for
the Hiring of Services – available on
the ArcelorMittal Brasil homepage –
contains all the conditions which must
be met by the suppliers before a service
is hired. Among others, the potential
provider’s management must assure
good work conditions for employees, and
preservation of the environment.
The terms have also to comply with
the Global Compact, therefore the
service provider must internally adopt all
necessary measures to support the UN
framework, under the penalty of having
the contract terminated or not even
entered into.
At the same time, suppliers and
providers are supported by ArcelorMittal
Brasil for their programs for training,
qualification and development. With
this assistance, they become more
prosperous and competitive, and capable
of meeting requirements based on socioenvironmental criteria.
Contracts
Due to the characteristics of the steel
industry, consisting of long and complex
productive chains, the large companies –
major links in the industrial chain – have to
extend to their suppliers the same care they
internally dedicate to issues such as safety,
health, human rights and environment.
Requirements in contracts with suppliers
ensure quality products
Service contracts include clauses aimed
at reducing potential risks in the provision
of services. These clauses are drafted and
controlled by ArcelorMittal Brasil’s Legal
Area, which is also required to provide
legal support to areas involved in the
negotiation of mandatory clauses (labour,
environmental, safety, fiscal), depending
on the nature of different contracts.
At the local level, units monitor the
fulfilment of supply clauses, based on
established criteria and governed by set
standards which suppliers are well aware
of, with monthly evaluation of deadlines
and quantities, as well as certification of
quality, environment, health and safety
on the part of suppliers.
Each plant establishes their own
baselines for the companies and
proposes corrective and/or preventive
actions in case they fail to comply with
their targets. In case of suppliers of
critical raw materials for ArcelorMittal
Monlevade (MG), there is also the
statistical control of the process, as
well as initiatives referring to the social
responsibility of the contractor.
SUPPLIERS>>
Enriching our communities
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
SUPPLIERS
38
Prodfor
The Program for Vendor
Development and Qualification
(Prodfor) is highlighted at the
units of Tubarão and Cariacica
(ES)
developed or implemented internal
processes to reduce the environmental
impact of their activities, 60% articulated
dialogues with their stakeholders to
enhance internal management processes,
and 53% developed products/ services
with socio-environmental aspects
and criteria.
Participants attend group dynamics
during a Tear Project meeting
‘Tear’ Project
ArcelorMittal Brasil was one of the nine
companies in strategic economic sectors
selected to support the ‘Tear’ Program
– Weaving Sustainable Networks (‘tear’
means loom in Portuguese), an Ethos
Institute initiative in partnership with the
Multilateral Investment Fund (Fumin) of
the Inter-American Development Bank
(IADB). And it achieved the best results
among all participants.
Held in the period 2006-2008, the
program promoted the adoption of
corporate social responsibility actions
by small and mid-size businesses acting
in the value chain of the sectors of
sugar & alcohol, civil construction,
electric energy, mining, oil & gas, steel
& iron, and retail. In every segment, a
large company was identified as having
advanced experience in corporate social
responsibility to serve as anchor for
the program.
ArcelorMittal Brasil, the anchor in the
steel sector, worked with 15 small
and mid-size businesses, fostering
the incorporation or expansion of
socially responsible management.
Progress was assessed by means of the
Ethos Indicators of Corporate Social
Responsibility, and filled out the Brazilian
Matrix of Evidence of Sustainability,
which was jointly developed by
SustainAbility, International Finance
Corporation (IFC) and Ethos Institute.
One half of the companies in the chain
anchored by ArcelorMittal acquired new
customers and prepared their Vision,
Mission and Values to guide their actions.
In addition, 100% of the companies
prepared and implemented their Codes
of Ethics, 73% created programs to
reduce consumption of energy, water
and paper, and implemented a selective
waste collection.
The results still evidenced that 67%
In addition, 67% developed programs for
employee qualification in sustainabilityand corporate responsibility-related
topics, 93% of them stated that the
implemented socio-environmental
responsibility measures helped them
improve their business relations with
large companies, 87% declared to
have improved business relations in
their value chains, 87% perfected the
dialogue and reduced conflicts with the
anchor-company, and 100% improved
productive or management processes.
‘Tear’ was awarded the Make a Difference
Award 2008, by O Globo newspaper,
in the category of Social Purpose. This
award recognizes outstanding companies
or projects for their social responsibility
actions in the country. The ArcelorMittal
Brasil case was published in the website of
the World Business Council for Sustainable
Development (WBCSD), a global
association of 200 businesses working
on matters of sustainable development,
highlighting the ‘Tear’ Program as a
reference in sustainability and social
responsibility practice.
The focus is to assist suppliers in the
implementation of a quality management
system, qualifying them to advance in preestablished contractual conditions of large
companies, thus favouring their relationship.
Prodfor consolidated and developed
over time, now including certifications
in environmental management systems,
occupational health and safety, as well as
an unprecedented certification in financial,
fiscal and labour management.
In 2008, the program evaluated and
qualified other two suppliers: Acimex
Transporte e Comércio (trade and
transportation), including an award as
highlight in the implementation of its
Environmental Management System,
and Hilub Produtos de Lubrificação e
Abastecimento (lubrication and fuels). For
2009, other five companies were appointed.
ArcelorMittal Tubarão
Enriching our communities
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
COMMUNITIES
39
Communities
The operation of companies of the
size of ArcelorMittal Brasil’s industrial
units requires ongoing work on
the relationship with neighbouring
communities. The engagement is carried
out through the promotion of economic,
cultural and socio-environmental
development of the areas.
The community involvement really
matters for the success of the
ArcelorMittal Brasil undertakings. For
that reason, the transparent dialogue
with those populations guides the
Company’s activities, searching for the
joint development of programs to attain
equally common objectives.
The engagement processes include public
audiences with local residents. As from
2008, the policy was emphasized with
training focused on the improvement of
relations with community associations,
government agencies and other entities.
Sispart
Breakdown of investments in
external social responsibility
SECTOR
Health and Science
Education
697,116.00
4,579,731.98
Arts and Culture
825,006.83
Sports
813,709.75
Social Promotion
Environment
Total
2,078,379.29
499,342.20
9,493,286.05
Sispart
One of the dialogue tools is the System of
Interested Parties (Sispart), developed by
ArcelorMittal Tubarão, aimed at providing
timely and effective responses to
demands, for instance, from associations
of residents and non-governmental
organizations. The good practice was
adopted by the ArcelorMittal Foundation
and is under implementation in all units of
the ArcelorMittal Group, under the name
Foundation Global Social Management
(FGSM).
Sispart uses a software resource that
allows for the effective recording of all
social responsibility-related requests that
reach the company, reducing the time
needed for assessment and approval of
projects and enhancing control over funds.
Following the data recorded and
monitored by Sispart in 2008, the
company determined the breakdown of an
investment to the tune of R$ 10 million
in external social responsibility initiatives,
in in-house social programs, in support to
specific initiatives – such as infrastructure
works and promotion of technical and
cultural events – and in systematic
support to social projects proposed and
developed by local NGOs.
Dialogues in São Francisco do Sul
An example of a successful action
by ArcelorMittal Brasil to involve the
communities in projects and ensure the
sustainability of its undertakings was the
installation of a unit for transformation
of flat steel in São Francisco do Sul (SC),
in 2002. The mere announcement of
the ArcelorMittal Vega implementation
generated a series of questions on
the part of the population of the small
coastal municipality – selected for its
strategic location in regard to Mercosur
countries, for the port infrastructure,
and for its equidistant position from
large automotive industries.
The community was afraid of a large
environmental and economic impact in
the city, as São Francisco do Sul, close
to celebrating 500 years, lived basically
on the port, tourism and fishing, with
absolute no industrial tradition. The
questions focused on possible impacts to
nature, and possible damages to tourism
and fishing activities with the installation
of a steelmaking facility.
To clear up their doubts, ArcelorMittal
Vega constituted set up an Advisory
Council, with the presence of economic
and community leaderships of Sao
Francisco do Sul, which followed all
stages of the unit implementation. It also
created the Association São Francisco
of the Future, in partnership with local
entrepreneurs.
The entity mapped necessities
and improvement opportunities in
environmental, social and economic
IT class at ‘Casa Escola’ Project, ArcelorMittal Vega
aspects. The work resulted in the
local Agenda 21, a document with
an inventory of ideas from the
entire community on the sustainable
development of São Francisco do Sul, to
meet the needs of the municipality.
Image auditing
Another tool used at ArcelorMittal
Brasil to monitor the impact of its
activities on society is Image Auditing,
whose results exceeded the target
established in 2008. The survey
was based on the Index for Quality
of Exposure in the Media (IQEM), a
comprehensive work to identify, qualify
and assess news involving the company
published in means of communication.
The survey measures aspects such
as reading criteria, based on the
assessment of opinion makers carried
out by CDN Estudos & Pesquisas, and
editorial importance, based on the
assessment of journalists.
The average monthly IQEM stayed at
8.5 – against the set target of 7.5.
The company also had the lowest
negative visibility among the large
steel industries in the country (2,895
occurrences, against 7,691 of the
runner-up).
In addition, an image survey is
periodically conducted nationwide
to verify the opinions of priority
stakeholders – employees,
communities, customers and entities –
on the performance of ArcelorMittal.
COMMUNITIES>>
Enriching our communities
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
COMMUNITIES
40
Transforming
action
In 2008, the ArcelorMittal Brasil
Foundation celebrated its 20th
anniversary. It is a non-profit
organization intended especially for
the formalization and development
of the Group’s social responsibility,
emphasizing works with communities
living near the business units.
Through partnership agreements with
other entities, such as NGOs, public
agencies and community leadership,
the Foundation has strengthened its
role as an integration network and
increased the effect of its activities,
endeavouring to identify and add value
to local capacities and potential –
which is key for the construction of a
better world.
The activities of the ArcelorMittal
Brasil Foundation follow the same
principles, for the current benefit of
about 800 thousand people per year.
Its major focus is the education of
children and adolescents to become
more conscious, productive and
participative citizens, with programs
comprehending education, culture and
social promotion. Specific projects in
the areas of health and environmental
education complete its action and
also contribute to improve the quality
of life of the community. In order to
attain effectively transforming, longterm results, the Foundation’s activities
include transfer of methodologies to
municipalities served.
In 2008, the ArcelorMittal Brasil
Foundation invested US$ 619,522.00
in education, a priority focus of the
group’s social action. The resources
were applied in the programs Quality
Education (PEQ), Affective and
Sexual Education (PEAS), Juvenile
Entrepreneurship and Digital
Citizenship, in addition to other
initiatives intended for the health of
children and youths such as Seeing is
Living, Always Smiling, and Listening
Well to Live Better.
Youths and citizenship
Two educational programs developed by
ArcelorMittal Brasil, in partnership with
public agencies and teaching institutions,
share the same objective: to offer
more opportunities for destitute young
people to become citizens and perform
their roles in the socio-economic
development of their communities.
One of them is the Socio-Educative
Training Program (Procap), offering
adolescents ages 15-18 internship
programs at ArcelorMittal Tubarão
provided they fulfill some requirements:
to be resident in Serra (ES); to study in the
public school network; and to have family
income of up to two minimum wages.
In addition to the experience of working
in a large-scale company, the youth
has access to training, assistance grant
of one minimum wage, English classes,
and professional courses provided by
institutions such as Senai and Sesi.
The opportunity can change the lives
of the adolescents, as it was the case
of the Benefit Control Technician with
the Personnel Management area,
Wesley Lima Ferreira. He joined Procap
in June 2000 and was an intern up to
September 2001. During the time, he
attended several courses and continued
his studies. Six months after leaving
the company, he was called back as
an outsourced employee. He has been
working for ArcelorMittal Tubarão for
almost four years now, and he is at the
university.
The objective of the Program for
Affective and Sexual Education (PEAS),
developed by the ArcelorMittal
Brasil Foundation, is to contribute to
the personal, social and productive
development of adolescents, focusing
on sexual and reproductive health. The
initiative benefits 78 thousand students
from public schools in the cities of
Carbonita, Contagem, João Monlevade,
Juiz de Fora, Itaúna and Vespasiano
(Minas Gerais), Cariacica (Espírito
Santo), Feira de Santana (Bahia) and
São Paulo, contributing to reduce
the number of unwanted pregnancy,
sexually transmitted diseases, drug
abuse, violence, and relationship
problems.
In the period 2000-2007, PEAS also
qualified 755 educators, including
technicians from municipal secretariats
of Education, Health, Social Action
and Justice. In 2008, PEAS qualified
67 educators, benefiting 2,106
students from nine municipalities. The
investment was US$ 99,969.00.
For 2009, plans call for the expansion
of PEAS to other two municipalities
in Minas Gerais, in addition to the
qualification of a youth committee.
PEAS is also applied as a socioeducational measure to minors in
conflict with the law, the so-called
Seeding Project. In 2008, Rio Piracicaba
(MG) and Bela Vista de Minas (MG)
followed the successful experience of
Joao Monlevade and joined the project.
The program Educating in Diversity
created in 2008 to qualify educators
aims at transforming pedagogical
practice to foster the school inclusion
of students with disabilities. Over
the year, 23 educators attended 120hour courses with both theoretical
content and practical and planning
activities focusing on specialized
educational attention.
Student attends educational activity at the ArcelorMittal Brasil Foundation
Quality Education
Program
The Quality Education Program (PEQ)
was the program receiving the greatest
share of investment in education from the
ArcelorMittal Brasil Foundation, amounting to
US$ 224,854.00.
The Quality Education Program (PEQ) is
intended to assist public schools in perfecting
their pedagogical processes and school
management, providing for a more effective and
stimulating learning process, resulting in better
performance of students and lower failure and
drop-out rates. In 2008, PEQ involved 2,730
educators and benefited 24,898 students from
58 schools.
For 2009, the program shall be expanded into
another municipality, in addition to the current
three where it is developed (Cariacica, Feira de
Santana and Senador Modestino Gonçalves).
For an idea of its effectiveness, in Feira de
Santana (Bahia), the rate of students with gains
in reading targets grew from 27% to 53% in
2008; in writing targets, it came from 13% to
40%; in communication from 39% to 59%, and
in calculation from 26% to 46%.
Enriching our communities
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
CULTURE
41
Theatre performances promoted by Cultural
Foundation of Sao Francisco do Sul (SC)
Investments made with tax incentives (in R$)
Resources from Rouanet Law (Income Tax)
Culture
The companies in the ArcelorMittal
Brasil group develop specific cultural
programs for their internal public, as
well as for the employees’ families,
retirees, pensioners, and young
apprentices.
In 2008, investment of ArcelorMittal
Foundation’s own resources in culture
amounted to R$ 917,307.48. The
highlight was the ArcelorMittal Culture
Program, putting together all the initiatives
developed by the Foundation in the area of
arts and culture. The focus is to expand the
access of communities to cultural assets
and services, and to promote projects for
the formation of managers and artists.
The program includes a free agenda of
workshops and performances in the
municipalities served by the Foundation.
Between 2007 and 2008, ArcelorMittal
Cultural supported initiatives in 28
municipalities: Belo Horizonte, Abaeté,
Bela Vista de Minas, Bom Despacho,
Contagem, Dionísio, Dores do Indaiá,
Itaúna, Itabirito, João Monlevade, Juiz de
Fora, Martinho Campos, Nova Era, Ouro
Preto, Quartel Geral, Rio Piracicaba, Sabará,
Santos Dumont and Vespasiano, (MG);
Vitória and Cariacica (ES); Salvador and
Feira de Santana (BA); São Paulo, Bauru,
Hortolândia and Piracicaba (SP) and Rio de
Janeiro (RJ).
The program is carried forward with
the support of the company’s Culture
Committee, and its management is totally
computerized through the Ctrl + Culture
Belgo Bekaert Arames
976,000.00
ArcelorMittal Tubarão
3,529,810.31
ArcelorMittal Itaúna
Resources from State Law (ICMS)
Belgo Bekaert Arames Osasco
46,000.00
152,806.10
ArcelorMittal Piracicaba
2,066,831.22
ArcelorMittal Monlevade
1,270,501.64
ArcelorMittal Juiz de Fora
1,131,700.00
ArcelorMittal Sabará
Total investments in culture
177,373.97
9,405,085.89
Total investments in culture
9,405,085.89
Resources from the Sports Law (Income Tax)
ArcelorMittal Tubarão
ArcelorMittal Itaúna
Total investments in sports
948,002.50
11,000.00
959,002.50
Total
10,364,088.39
Note: ArcelorMittal Vega made no investments from tax incentives
system, a software resource allowing for
the integration of all information related to
cultural projects, facilitating the processing
of sponsorship requests, analyses,
monitoring and evaluation of project
results, meeting the demands of both the
company and cultural promoters.
At ArcelorMittal Tubarão, a highlight
in cultural support was the Christmas
Concert, promoted at the Camburi
Beach on the evening of December 20.
It involved about 1,000 professionals
and relied on the participation of the
company’s choir and presentations by
social projects supported by the Company.
The event featured the Espírito Santo
Philharmonic Orchestra (Ofes), performing
a repertoire that included classical music,
Brazilian popular music and frevo. Other
performances included music and dance.
Talents of the Company, an itinerant
project, focuses on valorization of
art, stimulating the creativity and
artistic development of employees in
their leisure time, reducing stress and
improving the organizational climate. A
bus which has been converted into an
art gallery, visits the ten lunchrooms
of the steelworks with exhibitions of
works of art by employees, young
apprentices, retired people and
pensioners. Up to the eighth edition,
held in 2008, there were over 17
thousand participations.
Between September and October, the
company promoted the Musical Talent
Festival, with the objective of revealing
talent in the company, promoting
contact with music, encouraging
cultural production and valorizing
local art. Participants contested in
four categories: composer, singer,
instrumentalist, and “Popular Jury”,
in which the public chooses the best
among all participants.
In November, celebrating the 25 years of
the company, a Gala Evening Festival was
promoted, an event open to all employees
with free admission. In two evenings,
there were performances by Espírito
Santo musicians and by the winners of the
Musical Talent Festival held a month earlier.
At ArcelorMittal Vega, a highlight is
the National Museum of the Sea, in
Sao Francisco do Sul, which was totally
restored and modernized five years ago
with an investment of R$ 480 thousand
of Company funds. The museum
featuring Brazilian vessels, aims at valuing
the art and knowledge of those make
their living at the sea.
In partnership with the Cultural
Foundation of São Francisco do Sul and
the Association São Francisco of the
Future, the Santa Catarina unit promotes,
once a month, the São Francisco on
the Movie, an event with exhibition
of films for the community of São
Francisco do Sul. With the initiative, the
Company provides entertainment for the
community and helps destitute families
with the distribution of food donated as
admission. The action benefits about 12
thousand people from the community.
ArcelorMittal Vega supported five
cultural projects in 2008, with
investments of R$ 285 thousand. For
2009, the investment forecast for the
cultural area is R$ 160 thousand.
Enriching our communities
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
SOCIAL PROMOTION
42
V-Day
Participants in Pró-Voluntário perform
educational activity for children
Social Promotion
Among the initiatives connected with
social promotion, a highlight is the
Citizens of Tomorrow, encouraging
individuals and companies to donate part
of their due income taxes to Municipal
Funds for the Rights of Children and
Adolescents.
Over 7 thousand donors – most of
them employees with subsidiaries of
ArcelorMittal Brasil – collected R$ 2 million
in 2008, the best result ever in ten years
of the initiative. The funds, managed by
the ArcelorMittal Brasil Foundation, will be
distributed to Municipal Councils for the
Rights of Children and Adolescents from
28 cities located in five regions where
ArcelorMittal companies operate in the
country (MG, SP, ES, RS and BA), for use in
social projects at the communities.
Another distinguished initiative was the
Program for Bone Marrow Donation,
mobilizing, in the last two years,
employees and their families as well
as the entire network of suppliers and
partners of ArcelorMittal Brasil. The
objective was to increase the National
Database of Bone Marrow Donors
(Redome), of the National Cancer
Institute (Inca), and to keep donors active
and informed of the campaigns, with
updated registers, strengthening the link
among the parties. To this moment, there
are 36 thousand registers (equivalent
to 5% of the total), with estimated 300
thousand registers by June 2009. In
total, ArcelorMittal Brasil has already
invested about R$ 1 million in projects
with Inca, including the expansion of the
pediatric unit and the development of the
internal program to recruit donors.
To disseminate the practice of
volunteering among its professionals,
at least 11 units of ArcelorMittal Brasil
programmed activities on December 5
to celebrate the International Volunteer
Day, the V-Day. Further to collecting and
donating goods, the core objective was
to engage employees, stimulating the
feeling of solidarity.
The year 2008 was the first to have the
date celebrated in an integrated way
in almost all plants of ArcelorMittal in
the world, involving approximately 7.6
thousand employees in 45 units. During
the event, simple actions are promoted,
but they make all the difference,
ranging from school remodeling, house
painting and visits to orphanages. The
participating units are free to determine
the scope of their activities.
In ArcelorMittal Aços Longos, the V-Day
involved 547 employees from nine
units, benefiting 1,190 people. The
volunteers worked for about 90 hours
on tasks such as gardening, electrical
repairs, painting and health attention
for the benefit of the community,
with the best results ever achieved
when compared to previous years the
celebration was held.
SOCIAL PROMOTION>>
Young people participating in the Shadow Entrepreneur
for One Day visit ArcelorMittal Tubarão
Shadow Entrepreneur for One Day
In November 2008, seven adolescents experienced a different routine:
they observed decision-making and employee recruitment, attended
meetings and witnessed other administrative activities performed by a
Personnel Manager from ArcelorMittal Tubarão. All thanks to the Shadow
Entrepreneur for One Day program.
The objective is to offer young people a realistic view of the job market,
helping them understand how the knowledge acquired in the classroom is
applied in the career, in addition to providing values for the development of
characteristics required of professionals.
The Shadow Entrepreneur for One Day is part of a series of activities planned
by ArcelorMittal Tubarão to celebrate the International Volunteer Day
(December 5). The initiative is replicated in other companies in the State
of Santa Catarina, with the promotion of Junior Achievement, a non-profit
association founded in 1919 in the USA dedicated to educating students
about workforce readiness and entrepreneurship, especially in economics and
businesses.
The results calculated by Junior Achievement with the program Shadow
Entrepreneur for One Day go beyond simple learning. The young people
have the chance to network and, therefore, discover good opportunities for
internships and jobs.
Enriching our communities
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
SOCIAL PROMOTION
43
ArcelorMittal
Tubarão financed
the basic
infrastructure
for fishing and
gastronomic
activities at the
Juara Lake
Juara Lake
Reuse generates income
ArcelorMittal Sistemas donated eight
computers to revitalize the computer
room of Project ‘Vivo’, which gather 13
volunteer professionals from ArcelorMittal
Aços Longos Planning and Assistance
Management. The project is dedicated to
Caminhos da Paz institute, in Sabará (MG),
which supports 180 destitute children aged
6-16. The intermediary for the process was
the ArcelorMittal Brasil Foundation.
The project promotes local
development, combining environmental
preservation with job and income
generation. This is the vector of the
Sustainable Development Project
of the Juara Lake, encouraging local
tourism, handicraft and fish farming
activities through the associative work
of inhabitants in the region of the
municipality of Serra (ES).
Developed in partnership with the
Municipal Secretariat for Economic
Development of Serra (Sedec), the
priority of the Project for Sustainable
Development of the Productive Chain
of Recyclable Material Reuse is to
restructure Recuperlixo, the main
association of refuse collectors in the
municipality of Serra (ES).
At ArcelorMittal Tubarão, the solidarity
campaign started three days earlier, for the
collection of non-perishable food among
employees and contractors interested in
participating. The donations were sent to
Banco Verde Vida, a project of the Vida
Nova Vila Velha Movement (Movive) which
is supported by the Company, benefiting
families living in the Aribiri River Basin who
are helped by trading waste for Green
Currency for shopping at the Solidarity
Supermarket.
One of the achievements was the
creation of the Fishermen Association
of the Juara Lake – APLJ, a non-profit
organization aimed at generating job
and income for the local fishermen
community through sustainable
practices in the exploration of the Juara
Lake natural resources. ArcelorMittal
Tubarão supported the initiative by
financing infrastructure improvements
for fishmongers’ facilities. The company
has also invested in the construction of
a restaurant managed by the fishermen
on the banks of the lake. It contributed
to add value to the product and also to
expand leisure and tourism options in
the region.
ArcelorMittal Vega created an Enrolment
Committee to register those interested
in performing volunteer work. Enrolled
employees performed activities for
screening, set assembly, and distribution of
supporting material in the areas affected
by floods in the State of Santa Catarina at
the end of November, or for the assembly
and distribution of kits with food and toys
for the Fraternal Christmas Campaign
benefiting destitute communities in São
Francisco do Sul.
Improvements in the quality of life are
already noticeable: average monthly
income is now around R$ 1,000.00. The
project also contributed to improve the
infrastructure of the district that now has
paved streets, better urban transportation
system and landscape planning.
Fishermen activities generate income for
the community of Juara Lake
ArcelorMittal Tubarão supported the necessary
conditions for the development of the entire
reuse chain by constructing a shed for waste
screening. It increases the added value of
marketed waste and, consequently, the monthly
average income of the workers.
Enriching our communities
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
SANTA CATARINA FLOODS
44
Santa Catarina floods
ArcelorMittal Vega was very active in
its attempt to relieve the impacts of the
floods that affected Santa Catarina at
the end of 2008, leaving a large number
of victims and homeless people.
To assist affected families, the unit
contacted the Association of Volunteer
Social Work of Sao Francisco do Sul
(Volunteer Fire Brigade) to get information
about the situation of the city and the
region. In Sao Francisco do Sul, the
most affected district was Majorca. The
situation in the municipality of Itapoá was
critical too.
The immediate local need was to supply
material for the firemen to rescue the
victims, such as personal protective
equipment (PPE) and fuel.
Based on the information, ArcelorMittal
Vega started an action plan involving the
participation of the internal public and the
communities, as well as the support of the
ArcelorMittal Brasil group.
Internal campaign
This focused on the collection of clothes,
food, and cleaning material. The collected
items were sent to the Municipal
Secretariat of Housing, Social Development
and Citizenship in São Francisco do Sul, to
be donated to the community of Majorca.
The movement, occurred on November 28,
collected six boxes of clothes and nonperishable food.
Firemen provide assistance after destruction
caused by floods in Santa Catarina
External action
Itapoá
Managers contacted partners, suppliers
and customers to request their support.
In response, there was a mobilization for
a collection campaign, the development
of information material on the care and
prevention of diseases associated with
floods (cleaning water tanks, care with
drinking water and fresh food); the
donation of medicines, the assistance
through volunteer work, money deposits
in Civil Defense’s bank account, and even
a contribution to logistics with trucks to
transport donated items.
On December 11, the municipality
of Itapoá, one of the most affected
by rainfalls in the north of the state,
received the assistance of ArcelorMittal
Vega. About R$ 50 thousand were
invested in the acquisition of 2,515
items including cleaning material,
mattresses, pillows, sheets and towels,
which, according to the Civil Defense,
were the most needed items.
Fire Department
The Association of Volunteer Social
Work of Sao Francisco do Sul received
six complete sets of special fire fighting
apparel (boots, helmets, trousers, jackets,
balaclavas and gloves) and fuel to the
value of R$ 10,000.00 to assist in the
rescue of victims in the region.
São Francisco on the Movie
Held in the last weekend of the month
by ArcelorMittal Vega, the project “São
Francisco on the Movie” consists of movie
sessions for the community of São Francisco
do Sul. The admittance fee is one kilogram
of non-perishable food. In the edition of
November 2008, the collected food was
sent to the Municipal Secretariat of Housing,
Social Development and Citizenship in
Sao Francisco do Sul, to be donated to the
Majorca district residents.
Corporate action
ArcelorMittal Brasil opened a current
account on behalf of the “Fund for the
Reconstruction of Santa Catarina”, with
an initial deposit of R$ 100,000.00. In
addition, an Internal National Campaign
requested donations from employees of
units all over Brazil.
At the end, ArcelorMittal Brasil and
ArcelorMittal Vega donated together
about R$ 170 thousand. Approximately
two thirds of the amount was intended
for the acquisition of building material
for 15 new houses in the municipality
of Gaspar. The families benefiting were
selected by the Municipal Secretariat
of Social Development and the local
Rotary Club, with the approval of
ArcelorMittal Vega. The land for the
construction of the houses will be
donated by the municipal administration
and the building work will be done by
the community under the supervision of
the entities involved.
Items donated to the municipality of Itapoá
DESCRIPTION
QUANTITY
TOTAL VALUE (R$)
Single mattress
130
9,100.00
Double mattress
130
20,927.40
4-piece double sheet set
130
5,967.00
4-piece double sheet set
130
4,212.00
Towel
520
3,484.00
Bleach (5-liter container)
260
733.20
Broom
260
741.00
Squeegee
130
2,600.00
15-liter bucket
260
1,154.40
Rough cleaning cloth
260
286.00
Bar soap package
175
633.50
Cleaning cloth package
130
169.00
2,515
50,007.50
TOTAL
Enriching our communities
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
HUMAN RIGHTS
45
Respect for
human rights
ArcelorMittal Brasil maintains a policy
for protection of human rights aimed
at contributing for the development of
society through an action governed by
the best practices in social responsibility.
The group propagates these concepts and
works to align its partner’s management
with them, and expects that its
stakeholders will share the vision of a
sustainable and fair society, following the
principles of:
Conduct
The maintenance of ethical, transparent
and reliable relations between
ArcelorMittal Brasil and its stakeholders
is one of the pillars for the sustainability
of its businesses. This is one of the
reasons behind the creation and
application of the Code of Conduct,
establishing rules and procedures
required from the professional whenever
acting on behalf of the company. The
contents, approaching topics connected
with ethical issues, corruption and
human rights, is the subject of training
offered to 100% of the employees.
ArcelorMittal maintains a Policy of Reports
of improper behaviour on issues related to
accounting, auditing, finance, or involving
bribery, setting up an open channel for
employees to report irregularities to
their immediate supervisor, to the legal
department or to internal auditing, without
exposing themselves. Should the agent of
the illicit behaviour be one of these people,
the denouncement may be reported to
higher hierarchical levels anonymously.
In 2008 there were no reports of material
cases or lawsuits where ArcelorMittal Brasil
or employees acting on its behalf were
involved in cases of corruption. During the
year the company continued the work of
assessing corruption risks, scanning 100%
of the units of the group in the country,
which had started in 2006. In turn, the
group updated managerial procedures for
dealing with ethical issues and planned new
training sessions and communication plans
for related policies, focusing on managers,
to be accomplished during 2009.
However, there was one lawsuit related
to improper behaviour. A former
employee filed an action for alleged sexual
harassment. After the presentation of
evidences and witnesses, the court ruled
that her accusations were baseless and
dismissed the case. She appealed, pending
decision in second instance.
Upon learning of the case, ArcelorMittal
Brasil reinforced its preventive action
with employees, guiding them on the
consequences of conduct that might be
considered illicit.
• Refusing the use child labour
• Refusing the use of compulsory labour
• Providing a safe and healthy workplace to employees
• Respecting the right to freedom of association of its
employees’ unions and class entities, recognizing collective
bargaining as labour relations
• Not being involved in incidents of discrimination in hiring,
dismissal or promotion of employees, and not supporting its
use
• Not being involved in physical punishment or verbal abuse,
and not supporting their use
• Complying with applicable law regarding working hours
• Making sure that salary paid is sufficient for the basic needs
of employees
Relationship with
indigenous communities
Until 2008, ArcelorMittal Brasil was never
involved in lawsuits or even in complaints
to the authorities regarding conflicts
of corporate interests and the rights of
indigenous communities. In February
2009, a maintenance audit conducted
by the Forest Stewardship Council
(FSC) found that ArcelorMittal Florestas
has operations as close as 8.5 km to
indigenous areas in the Center-Western
region of Minas Gerais.
In view of this, the company, which was
not aware of the proximity, will comply
with a resolution by the National Council
for the Environment that says that
“the authorization to explore forests
and succeeding formations involving
management or suppression of the
forests and succeeding formations in
rural real estate in a range of 10 km
from delimited indigenous lands shall be
preceded by georeferenced information
to the Indian National Foundation (Funai)”.
In compliance with the FSC, ArcelorMittal
Florestas warrants the indigenous people
the right to possess and manage the
resources of their territories, giving them
the right to control the activities of forest
management in those areas, except if
they assign such control, in free and willful
manner, to other agents.
The document also clarifies that the activities
of forest management may not threaten or
reduce, directly or indirectly, the resources or
rights of possession of indigenous peoples,
and it is necessary to clearly identify and
protect the areas of cultural, ecological,
economic or religious relevance to those
peoples. It is also warranted a reward for
the application of management techniques,
which should be formally agreed upon.
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
46
GRI CONTENTS
GLOSSARY
AWARDS AND RECOGNITIONS
CREDITS
ArcelorMittal Brasil believes that
the Sustainability Report 2008
complies with the application
level A of the GRI guidelines.
Report
Profile
Report Profile
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
GRI CONTENTS
47
GRI - Table of Contents
Global Compact Principle
Page
Strategy and Analysis
1.1. Statement from the most senior
decision maker
3
1.2. Impacts, risks, and opportunities
2 and 6
Organizational Profile
About the Report
This sustainability report, prepared
according to the Global Reporting
Initiative (GRI) guidelines, presents the
ArcelorMittal Brasil’s strategies and
experiences related to the challenges
of the national and international steel
industry, the practices of corporate
governance, the investments in
personnel, the search for sustainability
in steel production, and social and
economic attention to the populations
living in the localities where its
subsidiaries operate. Its contents
have been defined through analysis
of surveys conducted in 2008 and
submitted to the transversal and
permanent working group, responsible
for the information contained in this
publication.
3.10. Explanation of the effect of any restatements
Re-statements are accompanied by
explanatory notes
3.11. Significant changes from previous
reporting periods
None
GRI Content Index
3.12. Location of standard disclosure
47
Assurance
2.1. Name of the organization
2
2.2. Primary brands, products, and/or
services
2
2.3. Operational structure
2
2.4. Location of organization’s
headquarters
2
4.1. Governance structure
2.5. Countries where the organization
operates
2
4.2. Identification of the highest executive
officers
Corporate website
2.6. Nature of ownership and legal form
2
2.7. Markets served
2
4.3. Independent and/or non-executive
members
Annual Report
2.8. Scale of the reporting organization
5
2.9. Changes during the reporting period
5
2.10. Awards received in the reporting period
52
Report Parameters
Report profile
3.13. External assurance
None
Governance, Commitments and Engagement
Governance
8
Home –
Company –
Management
4.4. Mechanisms for recommendations to
the highest governance body
4.5. Linkage between compensation /
economic and environmental performance
Bonus based on economic,
environmental, social and
management targets
4.6. Processes to ensure conflicts of interest
are avoided
8
3.1. Reporting period for information
provided
Jan 1 to Dec 31, 2008
4.7. Qualifications and expertise of the
members
8
3.2. Date of most recent previous report
Jan 1 to Dec 31, 2007
3.3. Reporting cycle
Annual
4.8. Internally developed statements of
values, codes, and principles
8
4.9. Procedures of the highest governance
body
8
4.10. Processes for evaluating the highest
governance body’s own performance
8
3.4. Contact point for questions
52
Report Scope and Boundary
3.5. Process for defining report content
Defined by the permanent internal
work group
3.6. Boundary of the report
3.7. Specific limitations on the scope
47
GRI protocols
Commitments to External Initiatives
4.11. Precautionary approach
Brazilian operations
3.8. Basis for reporting
3.9. Data measurement techniques and the
bases of calculations
47
Annual Report
47
4.12. Social charters, principles, or other
initiatives
8
47
4.13. Memberships in associations
8
GRI CONTENTS >>
Report Profile
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
GRI CONTENTS
48
Stakeholder Engagement
EN5. Energy saved
8 and 9
22
4.14. List of stakeholder groups
2
EN6. Eco-efficient products and services
8 and 9
22
4.15. Basis for identification and selection
of stakeholders
2
EN7. Initiatives to reduce indirect energy consumption
and reductions achieved
8 and 9
22 and
23
4.16. Stakeholder engagement
2
4.17. Key topics and concerns raised
through stakeholder engagement
2
Water
EN8. Total water withdrawal by source
8
20
EN9. Water sources affected
8
20
EN10. Water recycled and reused
8 and 9
20
EN11. Protected areas
8
31
EN12. Impacts on biodiversity
8
29
EN13. Habitats protected or restored
8
30
EN14. Strategies for managing impacts on biodiversity
8
30
EN15. IUCN Red List species
8
29 and
30
PERFORMANCE INDICATORS
Management Approach
Global Compact Principle
EC1. Economic value generated and distributed
EC2. Risks and opportunities due to climate change
Biodiversity
Page
36
7
25
EC3. Defined benefit plan
12
EC4. Financial assistance received from government
36
Market Presence
EC5. Standard entry level wage compared to local
minimum wage
12
EC6. Spending on locally-based suppliers
37
EN16. Direct and indirect greenhouse gas emissions
8
23 and
25
EC7. Local hiring
40
EN17. Other relevant indirect greenhouse gas emissions
8
25
EN18. Initiatives to reduce greenhouse gas emissions
7, 8 and 9
25
EN19. Emissions of ozone-depleting substances
8
25
EN20. NOx, SOx, and other air emissions
8
25
EN21. Water discharge
8
21
EN22. Total weight of waste
8
26
EN23. Significant spills
8
27
EN24. Transported waste deemed hazardous
8
27 and
28
EN25. Water bodies and related habitats affected
8
29
Indirect Economic Impacts
EC8. Development and impact of infrastructure
investments
40
ENVIRONMENTAL PERFORMANCE
Management Approach
Global Compact Principle
Page
Materials
EN1. Materials
8
24
EN2. Materials used that are recycled input materials
8 and 9
24
Energy
EN3. Direct energy consumption
8
22
EN4. Indirect energy consumption
8
22
Emissions, Effluents, and Waste
Products and Services
EN26. Initiatives to mitigate environmental impacts of
products and services
7, 8 and 9
EN27. Products and packaging materials that are
reclaimed
8 and 9
19 and
32
24
GRI CONTENTS>>
Report Profile
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
GRI CONTENTS
49
Compliance
EN28. Monetary value of significant fines
8
24 and
33
Transport
LA11. Programs for skills management and lifelong
learning
12 and
15
LA12. Performance and career development reviews
12 and
15
Diversity and Equal Opportunity
EN29. Impacts of transporting
8
23 and
24
Overall
EN30. Environmental protection expenditures
7, 8 and 9
LA13. Composition of governance bodies
1 and 6
11 and
13
LA14. Ratio of basic salary of men to women
1 and 6
12
19
SOCIAL PERFORMANCE – HUMAN RIGHTS
SOCIAL PERFORMANCE - LABOUR PRACTICES AND DECENT WORK
Management Approach
Management Approach
Global Compact Principle
Global Compact
Principle
Page
Page
Investment and Procurement Practices
Employment
LA1. Total workforce by employment type and region
LA2. Rate of employee turnover
11
6
LA3. Benefits provided to employees
11
12
1, 2, 3, 4, 5 and 6
37
HR2. Percentage of suppliers that have undergone screening
1, 2, 3, 4, 5 and 6
and actions taken
37 and
38
Non-discrimination
Labour/Management Relations
LA4. Collective bargaining agreements
1 and 3
LA5. Minimum notice period(s) regarding operational
changes
After meeting with unions
(usually in September),
significant changes are informed
and discussed
45
HR4. Incidents of discrimination
1, 2 and 6
45
1, 2 and 3
45
1, 2 and 5
37 and
45
1, 2 and 4
37 and
45
Freedom of Association and Collective Bargaining
HR5. Operations in which freedom of association and
collective bargaining may be at risk
Child Labour
Occupational Health and Safety
LA6. Workforce represented in formal health and
safety committees
1 and 3
16
LA7. Occupational diseases, lost days, and work
related fatalities
1
16
LA8. Serious diseases
1
16
6
11 and
15
Training and Education
LA10. Average hours of training
HR1. Percentage and total number of significant investment
agreements that include human rights clauses
HR6. Operations identified as having risk of child labour
Forced and Compulsory Labour
HR7. Operations identified as bearing risk of forced or
compulsory labour
Indigenous Rights
HR9. Violations involving rights of indigenous people
1 and 2
45
GRI CONTENTS >>
Report Profile
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
GRI CONTENTS
50
SOCIAL PERFORMANCE - SOCIETY
Management Approach
SECTOR INDICATORS – MINING AND METALS
Global Compact
Principle
Management Approach
Page
Global Compact Principle
Page
Revenue Capture, Management, and Distribution
Community
SO1. Management of impacts of operations on
communities
37 and
39
Corruption
MM1. Local economic contribution and development
impacts
37
MM2. Value added disaggregated
36
Biodiversity
SO2. Units analyzed for risks related to corruption
10
45
SO3. Employees trained in anti-corruption policies
10
45
EN23. Land owned, leased, or managed for production
activities
30
SO4. Actions taken in response to incidents of corruption
10
45
MM3. Biodiversity management plans
29
Public Policy
SO5. Participation in public policy development and lobbying
Materials
1 and 5
45
Compliance
SO8. Fines and non-monetary sanctions for noncompliance
with laws and regulations.
24
MM4. Percentage of products derived from secondary
materials
24
MM5. Assessing the eco-efficiency
26
MM6. Management of residues
26
Community
SOCIAL PERFORMANCE – PRODUCT RESPONSIBILITY
Management Approach
Global Compact Principle
Page
PR1. Impacts assessed
19
MM8. Artisanal and small-scale mining
No involvement in 2008
PR3. Product and service information required by procedures
19
PR4. Non-compliance
19
PR5. Practices related to customer satisfaction
19
24
Resettlement
No policies and no such
activities in 2008
Operations Closure
MM10. Operations with closure plans
Product and Service Labelling
6
Land Rights
MM11. Local communities’ land and customary rights
45
Emergency Preparedness
Marketing Communications
Website
MM12. Preparing for emergency situations
29
Health and Safety
Compliance
PR9. Fines concerning the provision and use of products
1
MM9. Resettlement policies and activities
Customer Health and Safety
PR6. Adherence to laws
MM7. Incidents affecting communities
None
MM13. New cases of occupational disease
No cases of new diseases in
2008
Report Profile
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
GLOSSARY
51
Glossary
Added Value: measures the wealth
generated by the company by analyzing
the difference between sales revenue
and the cost of resources acquired from
third parties.
Altered area: environmental area
changed by industrial use.
Blast furnace process: process for
reducing iron ore at high temperatures,
fed by a mixture composed mainly of
coke (derived from coal), whose final
product is pig iron (the raw material for
steelmaking).
CFC (chlorofluorocarbon): are synthetic
chemical substances used in sprays,
refrigerator gases, solvents and fire
extinguishers.
Corporate governance: system by which
companies are run and monitored,
including decision-making and the
relationship between shareholders,
Boards of Directors, management,
independent auditors and fiscal council.
Effluent: any type of liquid that leaves
a system, such as pipes, channels or
reservoirs. Industrial effluents are defined
as the discharge of pollutants by industrial
sources. Effluent standard is the quantity
and quality of effluents allowed to be
discharged into a body of water.
FSC: aacronym for Forest Stewardship
Council, an organization that certifies
the responsible management of
Brazilian forest using established
criteria for ecological safeguards, social
benefits and economic viability.
Global Reporting Initiative (GRI): an
international agreement with the
mission of creating and disseminating
the Guide for Preparing Sustainability
Reports, applicable globally and
voluntarily by organizations that wish to
disclose the economic, environmental
and social aspects of their activities,
products and services.
EBITDA: Earnings Before Interests,
Taxes, Depreciation and Amortization.
Demonstrates the company’s
performance by only taking into
consideration the gains generated by its
main activity.
GMB: acronym for Group Management
Board, which meets every week
to manage the ArcelorMittal
Group operations. It includes the
implementation of strategies set forth
by the Board, which closely overviews
the works, and the monitoring of the
adoption of measures determined for
each regional business units.
Ecotoxicity: quality control indicator
for effluents and impacts on aquatic
organisms.
Greenhouse effect: natural
phenomenon that keeps the Earth
warm, preventing sun rays from being
deflected from the Earth and into
space. However, due to the increase
emissions of CO2 and other gases, such
as methane and CFC, the greenhouse
effect has been on the rise, leading to
the global warming phenomenon.
Ibama: Brazilian Institute for the
Environment and Renewable Natural
Resources.
NGO: a non-governmental organization
whose non-profit activities are focused
on public actions, especially on services
considered important for social
development.
Opacity: measurement of the coefficient
of light absorption of emitted gases; the
more opaque, the higher the presence of
particulate matter. A dark smoke indicates
pollution caused by improper maintenance
of engines.
Public hearing: meeting with society
representatives for presenting and
discussing projects that impact the
environment and which is part of the
licensing process of these projects by
environmental agencies.
Rehabilitated area: environmental
area rehabilitated by remediation,
decontamination or contention/isolation
of contaminated areas, allowing new
uses without any risk to human health
and ensuring economic productivity and
social functions.
Specific consumption: measurement of
the consumption of an element (such
as energy or water) for obtaining a
specific product.
Steel slag: steelmaking byproduct
resulting from the accumulation of
various elements that should not
be present in the final product. It is
composed of various oxides, such as
CaO and MgO, and is expandable due to
their chemical reactions. Its limitations
are basically: heterogeneity, high
content of free lime and absence of
hydraulic activity.
Stakeholders: interested parties, that
is, individuals or organizations involved
directly or indirectly, or whose interests
could be positively or negatively
affected by the company’s activities.
Sustainability: according to the
document entitled Our Common Future,
also known as the Brundtland report,
of the United Nations (UN), published
in 1987, is “meeting the needs of the
present without compromising the
ability of future generations to meet
their own needs.”
UN: acronym for United Nations,
international institution formed by
sovereign states created with the
goal of promoting peace and safety in
the world, fostering cordial relations
between nations; promoting social
progress, better living standards and
human rights.
Report Profile
SUSTAINABILITY REPORT 2008 ArcelorMittal Brasil
52
Awards and Recognitions
The Best Companies to Work for (Top 10) – Guia Você S/A and Revista Exame
The Best in People Management – Valor Econômico newspaper
Época Prize on Climate Change (Leading Company category) – PriceWaterhouseCoopers and Época magazine
Environmental Benchmarking Ranking Brazil – Mais Atitude Instituto Socioambiental
Minas Gerais Award on Environmental Management – Brazilian Quality Union (UBQ)
Credits
Action for Water Award – Inter-municipal Council, Drainage Basins of Rivers Piracicaba, Capivari and Jundiaí (PCJ)
Ecology Award 2008 – Espírito Santo State Secretariat of the Environment and Water Resources and State Institute for
the Environment
ArcelorMittal Brasil
Findes Consuma Award 2008 (Social Responsibility category) – Federation of Industries, Espírito Santo
Corporate Center: Av. Carandaí, 1115
CEP 30130-915 – Belo Horizonte – MG – Brazil
Tel. + 55 31 3219-1122
Socio-Environmental Commitment Certificate – Instituto Falcão Bauer de Qualidade
IFBQ Ecological Label – Instituto Falcão Bauer da Qualidade
Green Profile Medal – partnership Prosul Consultoria Ambiental, Editora L. and Casa da Moeda do Brasil
Fritz Muller Prize (Environmental Management category) – Santa Catarina Foundation for the Environment (Fatma)
Expressão Award on Ecology (Tourism and Life Quality category) – Editora Expressão
ADBV Citizen Company Award (Environmental Preservation category) – Brazilian Association of Sales and
Marketing Managers, Santa Catarina
Ilafa Advertising Award 2008 (Web Page category) – Latin American Iron and Steel Institute (Ilafa)
Make a Difference Award (Social Purpose category) – O Globo newspaper
Health and Safety Top Management Award (Bronze category) – Brazilian Safety Agency
UN Human Settlements Programme, for practices improving living conditions of populations – United Nations
General Coordination: Office of Communication and Institutional Relations
Information and indicator: Working Group – Communication for
Sustainability
Contents, edition and design: Report Comunicação
Photos: ArcelorMittal Archives
Specific or complementary information for each subsidiary may be obtained on
the Internet at www.arcelor.com/br. For questions, comments or complaints,
please contact the Office of Communication and Institutional Relations,
ArcelorMittal Brasil, email [email protected]