Why care about ESG?

This has been our conviction from the start.

Aperam has long been an industry leader in embracing sustainable development and the Environmental-Social-Governance principles. In fact, these factors are at the very heart of the company’s strategy, as can be seen in the following examples:

Our particularly strong emphasis on the Health and Safety of our people, promoting diversity, supporting the communities we work in, and upholding a zero-tolerance policy on ethical issues.
Aperam is unique in that it produces charcoal from its own FSC®-certified forestry in Brazil (BioEnergia), which is used in the steel-making process as a natural and renewable substitute for fossil fuels (coke).
In 2012, Aperam created the entity Recyco, which recovers EAF (electric arc furnace) dust and transform it into FeAlloys.
Aperam is also making moves to increase its use of renewable energy. Including installing windmills and photovoltaic panels at several of its sites.
Since 2016, Aperam is using an internal price for CO2. All of Aperam’s investment assessments include the financial impact of its carbon footprint, either as a bonus or as a penalty.
In 2021, Aperam acquired ELG, a world leader in the recycling of stainless steel and alloys. In 2022, we established our Aperam Recycling & Renewables division to further optimize our use of scrap and develop other renewable sources of materials. This was followed by the launch of Botanickel, a new joint venture that seeks to become a world leader in the responsible and sustainable production of biosourced nickel for the stainless steel industry.
In 2023, Aperam became the first stainless producer to be certified by ResponsibleSteel in both Europe and the Americas.

This is our responsibility.

Achieving the world’s climate objectives requires the participation and support of everyone, which is why Aperam is committed to supporting the communities we work in. In this respect, Aperam signed on to the Science Based Targets initiative to have shortly its decarbonization roadmap validated as in accordance with the Paris Agreements. But being committed to ESG also means ensuring that Aperam remains a sustainable company, which is why we continue to invest in our future.

It becomes a business requirement

Investors and Insuraners prefer companies with good a proven ESG performance, it reduces the risks for everyone
Customers need to prove they monitor their Supply Chain, with rising regulations and reputational risks
Local and National governments want reliable companies paying their taxes and preserving employment in return of subsedies and efficient infrastructures
Neighbours want safe and clean plants and proper remediation in case of accidental pollutions
Consumers want sustainable goods and services
ESG criteria are becoming an increasingly important part of public procurement procedures and lending requirements
Good governance and social practices make companies stronger, more innovative and productive and more attractive to candidates

This is a key differentiator.

In order to maximize our revenues, ESG may be used as a means of differentiating Aperam from the competition:

We protect our environment: By producing stainless using up to 90% scrap, we are able to limit our CO2 emissions to 2t/t (scope 1+2+3a). In comparison, the average worldwide stainless performance is 5t/t, with the worst producer at 12t/t.
We promote circularity: Because our product is “scrap-sourced”, it supports the European objective of developing a circular economy, preserving mineral resources and protecting biodiversity.
Our people are working in a safe and respectful environment: Health & safety is a key pillar of Aperam, social exchanges are stimulated and diversity and equality is highly promoted.
Aperam is recognized for applying best practices in corporate governance, as is reflected in our board composition (majority of independent directors), our risk management approach and our extensive compliance plan.
Inspired by international references, Aperam applies very strong ethical guidelines with zero tolerance for non-compliant behavior.
Through its foundation in Brazil, Aperam maintains a close relationship with local stakeholders. We concentrate our actions on education, culture, the environment and a range of social issues.

Aperam’s ESG performance will support global competitiveness and the development of its customers.

Aperam’s excellence may contribute to decreasing a customer’s Scope 3 emissions. If not yet mandatory in all segments, the monitoring of the full scope of CO2 emissions will soon be required, either via regulations (e.g. Ecodesign in Europe) or consumers themselves. We already see a large group of companies promoting specific product lines at a premium price based on their low CO2 footprint or high recyclability rate.
Aperam, with ELG, is also unique in that we can build a circular business with our main customers, contributing to increase their material re-use rate.
> For high Alloys
> For Stainless
Aperam believes that stainless is an ideal material for existing and new applications. Within a complete life cycle of an application, the use of Aperam stainless may minimize its CO2 footprint. Stainless is also ideal for manufacturers’ re-use strategy for goods. Many opportunities for substitution with other materials exist! For this reason (combined with its mechanical, biologic neutrality, and corrosion resistance properties), stainless may also be a material of choice for new applications like e-mobility, hydrogen and renewable energies.

In Europe:

Our European customers are increasingly subject to ESG ratings and regulations and have a social responsibility to ensure that their suppliers are fully aligned with their ESG principles. In this respect, Aperam is the supplier of choice. Our excellence on ESG bolsters our customer’s own ESG performance and helps open the door for them to increase their business in Europe.