Impact with clients
ArcelorMittal Climate Action report
ERM supports a number of companies in developing programs to manage risks and opportunities associated with the low carbon economy transition.
With emissions of nearly 200 million metric tons of carbon emissions, ArcelorMittal, the world’s leading integrated steel and mining company, is among the biggest industrial emitters worldwide. As the urgency of climate change becomes clear, industrial companies are under greater pressure to report their plans for dramatically reducing their carbon footprint.
Stakeholders, including investors and policymakers, expect large greenhouse gas emitters to disclose their plans for decarbonizing as well as their resilience to changes in government policy, technology, market demands and physical climate.
To meet this demand, ArcelorMittal recognized a need to develop a Climate Action report, which would be one of the first from a major industrial company and the first among steel companies. The report would disclose the company’s plans to significantly reduce its carbon footprint in line with its commitment to the Paris Agreement. By engaging with the right external partner, ArcelorMittal could leverage its internal resources to produce a strong report that responds to the needs of its key stakeholders.
ERM's Sustainability Strategy and Disclosure team helps executives understand the stakeholder expectations and strategic relevance of managing their environmental, social and economic impacts. We help clients measure and disclose business value that is difficult to quantify and address complex sustainability challenges. Our combination of world-class climate change expertise and a deep understanding of ArcelorMittal’s business and culture made ERM the top choice for this project.
ERM worked with the internal ArcelorMittal team to draft the report, suggesting content and advising the client team on topics for inclusion. During the stakeholder engagement phase, ERM supported internal discussions that resulted in the company’s commitment for carbon neutrality by 2050 for its European operations.
ERM also brought together different functions, such as strategy, technology and corporate affairs, during the process of preparing the report and encouraging them to discuss and agree upon company positions in a way that had not been done before on this topic.
From sustainability reporter to sustainability leader
Published in May 2019, the report provides a comprehensive response to the TCFD recommendations for climate disclosures and responds to stakeholder interests in the company’s plans to significantly reduce its carbon footprint. The report has been well received by key stakeholders, including policymakers within the European Commission, investors, banks and peer companies in the steel industry and beyond. The client appreciated ERM’s ongoing counsel and professionalism throughout the project.
Ultimately, ArcelorMittal’s Climate Action report not only robustly communicates their commitments and plans to their own stakeholders, but also sets a benchmark for other industrial leaders to follow in disclosing their climate challenges and risks as well as their contributions towards a low-carbon world.