ArcelorMittal Annual Report 2008

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Corporate Responsibility – Making Steel more Sustainable While technical developments have reduced relative CO2 emissions in Western European countries by nearly 50% in the last 30 years, on average every tonne of primary steel produced in a blast furnace (the ‘integrated production route’) results in one-and-a-half to two tonnes of direct CO2 emissions. As a material, however, steel is almost endlessly recyclable, with scrap steel providing the main feedstock for the alternative production method – the electric arc furnace (‘EAF’) route – where CO2 emissions are significantly lower than in the integrated route. However, EAF production remains limited by the availability of scrap and scrap substitutes. ArcelorMittal is the largest recycler of scrap steel in the world and also the biggest producer of direct reduced iron (‘DRI’) used in EAF plants. Steel is also at the forefront of the growing ‘green’ building markets and is playing a major role in the automotive market helping make vehicles more energy-efficient. In the construction market, ArcelorMittal’s new High Strength Steels (‘HSS’), such as HISTAR®, contribute to a major reduction in greenhouse gases by making it possible to use lighter structures. Substituting HISTAR® for common steels reduces the weight of steel columns by 32% and that of beams by 19%. In the automotive market, the use of Advanced High Strength Steels (‘AHSS’) and the stronger HSS steels has the potential to reduce the weight of a vehicle by up to 25%. ArcelorMittal is a leading producer of both these steels. 34 As the world’s largest steel company, ArcelorMittal recognizes that its environmental footprint is considerable. Steelmaking is highly energy-intensive. Confronting climate change The second area is energy saving. The challenge of climate change is a global issue and must be addressed through global solutions. ArcelorMittal has advocated the adoption of a sectoral approach in the search for solutions that are acceptable to developing, as well as developed countries A new Group-wide energy policy was launched in May 2008. It encompasses the procurement of energy-related commodities, the integration of energy considerations into process and equipment design, technology selection and procurement and individual employee behavior. and avoid creating competitive distortions. An energy management system is being The Group is working with the World Steel implemented throughout the Group. Association in taking this forward. The dialogue It includes the establishment and monitoring extends beyond European Union boundaries of corporate performance objectives, to include US and Canadian legislative bodies. benchmarking and best practice operations, Internally, ArcelorMittal is engaged in a multi-faceted approach that encompasses short, medium and long-term goals through the generation of technology standards and best operating practice guidelines and investment and technology upgrades. technological support, the use of market At the same time, trials are under way mechanisms and the promotion of innovation. to establish the viability of recycling coke oven Its Environmental Policy places responsibility gas into the production of DRI. Indications and environmental excellence at its core. are that this produces higher yields than ISO 14001, the internationally recognized recycling the same gas into a power plant. standard for environmental management Using the resultant DRI in blast furnace systems, is now mandatory for all production steelmaking has the potential to achieve facilities. By the end of 2008, 91% of a significant reduction in energy consumption production sites had attained certification, and therefore CO2 emissions. with all remaining facilities expected to be certified by the end of 2010. Breakthrough technologies The search for quick wins in the area of emissions reduction focuses on two prime areas. The first of these is process performance benchmarking and target-setting. While many of the Group’s European and US sites are close to their technical limits for CO2 reduction, others have further to go. ArcelorMittal has now developed an internal methodology that monitors the CO2 efficiency of steel production at each site – taking into account ArcelorMittal’s longer-term response to the emissions reduction challenge focuses on the development of breakthrough technologies. It is one of the leading companies in the EU-sponsored Ultra Low CO2 Steelmaking (‘ULCOS’) project, which seeks to achieve a reduction of more than 50% in steel industry CO2 emissions. Four potential breakthrough routes are to be evaluated on an industrial scale. all the multiple processes, differences The first stage of the project, which is planned in plant structure, power generation and to be in operation by 2015, envisages the products involved. removal of CO2 from the emitted gases, The methodology benchmarks each plant against the reference performance for the Group and can be used to determine resource allocation between sites and help share best practice. It provides the basis for modeling emissions scenarios and the setting of realistic but challenging targets. their reheating and recycling. The second stage, which is dependent on the identification and authorization of an appropriate storage site, would include the further purification and storage of the CO2, thereby achieving a reduction in carbon emissions of at least 50%. For more information, please see www.ulcos.org.
ArcelorMittal’s longer-term response to the emissions reduction challenge focuses on the development of breakthrough technologies. It is one of the leading companies in the EU-sponsored Ultra Low CO2 Steelmaking (‘ULCOS’) project. 35 Corporate Responsibility – Making Steel more Sustainable ArcelorMittal Annual Report 2008
Page 1 and 2: ArcelorMittal Annual Report 2008
Page 3 and 4: Contents Management Report 01 Our P
Page 5 and 6: Our Philosophy ArcelorMittal1 is th
Page 7 and 8: Whilst we must accept that real dem
Page 9 and 10: To this end, I must thank all our e
Page 11 and 12: Given the prime importance of Healt
Page 13 and 14: What is the outlook for the year ah
Page 15 and 16: July ArcelorMittal and AREVA sign a
Page 18 and 19: Health and Safety: The Number 1 Pri
Page 20 and 21: Health and Safety: The Number 1 Pri
Page 22 and 23: In 2008, ArcelorMittal and trade un
Page 24 and 25: Board of Directors Lakshmi N Mittal
Page 26 and 27: Board of Directors continued Vanish
Page 28 and 29: Senior Management - Group Managemen
Page 30: “ When people hear the word susta
Page 33 and 34: ArcelorMittal is the largest produc
Page 35 and 36: ArcelorMittal’s brand promise is
Page 37: International mobility Internationa
Page 41 and 42: ArcelorMittal Foundation The Arcelo
Page 43 and 44: The Casa Buna prototype was constru
Page 45 and 46: Las Truchas Vinton Guanajuato Láza
Page 47 and 48: Africa Jorf Lasfar Tiris Zemmour Ye
Page 49 and 50: Mergers and acquisitions have histo
Page 51 and 52: The following table provides a summ
Page 53 and 54: Operational Review - Operating inco
Page 55 and 56: Operating income for the year ended
Page 57 and 58: Customers and Innovation Much of th
Page 59 and 60: • In Russia, ArcelorMittal was in
Page 61 and 62: Analysts and Investors As the world
Page 64 and 65: Corporate Governance Board of Direc
Page 66 and 67: Corporate Governance continued Grou
Page 68 and 69: Corporate Governance continued Comp
Page 70 and 71: Corporate Governance continued The
Page 72 and 73: Share Capital and Voting Rights Arc
Page 74 and 75: By 2012, Spain is expected to have
Page 76 and 77: Underpinning all our operations is
Page 78 and 79: Consolidated Balance Sheets Arcelor
Page 80 and 81: Consolidated Statements of Changes
Page 82 and 83: Notes to the Consolidated Financial
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Notes to the Consolidated Financial
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Auditors’ Report on the Consolida
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Profit and Loss Account ArcelorMitt
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Notes to the Annual Accounts contin
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Auditors’ Report on the Annual Ac
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Photography: ArcelorMittal Photo Li
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ArcelorMittal Annual Report 2008

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