Why is this important to us?

We know that we make vital financial and social contributions to our communities. However, it is easy to overlook these contributions without metrics demonstrating our substantial impact. As a result, it is our goal to promote our current metrics and develop better measurements moving forward to best demonstrate the value we create.    

The commercial imperative

What kind of challenges do we face?

Our stakeholder relationships are critical to the operation of our business. These relationships are strengthened by demonstrating the value our company creates for these stakeholders. However, measuring economic and social value for a company of our size and scope can be a challenge. 

What do we need to do?

Our corporate responsibility governance structure is critical to monitoring and measuring our impact. In 2015, our Sustainable Development Council (SDC) was officially formed with the charge of assigning metrics and progress around our 10 sustainable development outcomes. The SDC will continue to lead this work and refine the measurement of our impact. We will also continue to analyze our economic contribution data and highlight this impact with our stakeholders. The creation of our first integrated report is an important step towards holistically representing both our social and financial contributions.   

What is the potential to create value? 

We already know that our contributions are significant. However, our ability to fully demonstrate these contributions will strengthen our relationships with our stakeholders, thereby strengthening our overall operations.   

Our economic contribution

Corporate responsibility governance

Our economic contribution

In 2015, our U.S. operations employed approximately 20,000 individuals with a direct economic contribution of $2.3 billion through wages and benefits. Learn more in the Operating context section of this report. 

Corporate responsibility governance

A Sustainable Development Council exists at the national level to oversee both corporate responsibility and sustainable development initiatives. The governance of this important area of the business is key to our commitment to transparency across functions of the company. Councils for Stronger Communities are formed in each of our U.S. facilities and include diverse leadership from key departments within each facility as well as the local United Steelworkers (USW). These Councils meet regularly to discuss national and local sustainability initiatives, implement community investment initiatives and build partnerships with key community stakeholders both internal and external. By empowering local groups of employees to strengthen their communities, we experience an enhanced connection to the areas in which we operate. In 2015, the Sustainable Development Council as well as facility level Councils for Stronger Communities met regularly for a total of 85 formal meetings.
 
The SDC is responsible for driving measurement and metrics around the 10 sustainable development outcomes. This work is critical to demonstrating our societal contributions. For example, in 2015, we launched our first internal and external U.S. stakeholder survey. The goal of this survey was to garner feedback and measure progress on our sustainability initiatives. The survey was distributed to over 9,000 stakeholders and received an 11.5 percent internal stakeholder response rate and a 25 percent  external stakeholder response rate. The results are being used to inform our activities and to set a baseline for future measurements. Also in 2015, our U.S. leadership conducted our first nationwide self-assessment, measuring our performance against each of the 10 sustainable development outcomes. The self-assessment is being used as a management tool to measure our progress and develop metrics. It will be updated annually. The publication of our first Integrated Report for 2015 is also a major advancement towards the goal of publicly highlighting our measurements and metrics around social and financial value creation.



2015 Highlights


OUR COMMITMENTSOUR PROGRESSNEXT STEPS

Corporate responsibility governance

Establish a U.S. Sustainable Development Council (SDC) charged with leading U.S. sustainability initiatives

Established in 2015, the U.S. SDC met quarterly and began implementation of processes for driving measurement and metrics around the 10 sustainable development outcomes 



Continue to refine measurement and metrics around the 10 sustainable development outcomes

 

 

Case study: Government relations

On Capitol Hill: Communicating
ArcelorMittal’s contribution through
government relations

ArcelorMittal’s government relations department is critical to our work in outcome 10. This team communicates our societal contributions to many important stakeholder groups, most notably local, state and national government officials. Their work often involves sharing our societal contributions with these stakeholders as they consider policies that may impact our work.

Close the case study

ArcelorMittal’s government relations department is critical to our work in outcome 10. This team communicates our societal contributions to many important stakeholder groups, most notably local, state and national government officials.  Their work often involves sharing our societal contributions with these stakeholders as they consider policies that may impact our work.  Multiple important issues made 2015 an especially notable year for the department, seeing success on important trade legislation that provides enhanced tools for the US government to combat trade practices that negatively impact the company and industry.  Below is an overview of their work in ensuring that ArcelorMittal’s contributions are recognized and valued. 


How does the government relations department communicate ArcelorMittal’s impact?

Ultimately, sustainability is at the core of the government relations department’s work. They focus on the sustainability of our company and the sustainability of the steel industry as a whole. Because ArcelorMittal was created through a merger 10 years ago and our name is relatively new in the market, we must make an extra effort to communicate our brand, contributions and impact to our government stakeholders. This is both a challenge and an opportunity. Employment statistics are one of the key measurements that the government relations team uses to convey our impact, especially with legislators. This includes our employment data and economic contribution through wages, benefits and taxes. 

Who are the stakeholders the government relations department works with most often?

First and foremost, the government relations team works directly with local, state and federal government officials to convey and enhance our company’s societal impact. However, they also work closely with employees at ArcelorMittal to help them understand governmental interests and the impact of key legislation or regulations on our business. The team also collaborates with customers and suppliers on issues that jointly impact our sustainability goals.
  
How does the government relations team use ArcelorMittal’s sustainable development narrative to communicate our impact to our stakeholders?    

Our new sustainable development narrative and 10 SD outcomes are the next evolution in the work ArcelorMittal has been doing for years. ArcelorMittal is an industry leader in transparency and sustainability efforts. We believe in the circular economy and incorporating life cycle analysis into our work. We are committed to transparency and participate in voluntary programs and reporting initiatives to advance our efforts. We are actively involved in the U.S. Department of Energy’s Better Buildings, Better Plants Program and we are a partner of U.S. Environmental Protection Agency’s ENERGY STAR® program. In addition, we have a long history of sustainability reporting and transparency both through our internal reporting mechanism and the Climate Disclosure Project. Our government relations team communicates all of these actions and initiatives to our governmental stakeholders as appropriate.   

 

What were the “hot topics” for our government relations team in 2015?

Areas that are always a focus for the team include trade, infrastructure, environment, energy, defense, tax policy and employment law. Trade is a major issue in the steel industry, but due to an unprecedented influx of imports and harsh economic conditions in recent years, the issue was at the forefront of our government relations efforts. Unfairly traded imports have a dramatic impact on our ability to command a fair price for our products and operate our facilities at sustainable levels. Imports that are sold in the U.S. at dumped or government-subsidized prices are considered unfairly traded. Imports are dumped if, among other criteria, they are sold at prices below their home market prices or the producer’s cost to manufacture.

In the summer of 2015, ArcelorMittal joined other steel producers in the United States to petition the U.S. government for relief from unfairly traded imports of flat-rolled steel. The petitions charged that imports of dumped and subsidized hot-rolled, cold-rolled and corrosion-resistant steel from certain countries were injuring the U.S. industry. The petitions covered approximately eight million tons of imports that entered the United States in 2015. Under U.S. law, two agencies are charged with investigating industry allegations of unfair trade and the injury caused by that trade, the Commerce Department and the US International Trade Commission. Both agencies conduct extensive investigations and announce their findings first as preliminary decisions, followed by final determinations, taking approximately 12 months to complete. In 2015, numerous trade cases followed a similar path.  The final outcomes of these cases will have an enormous impact on ArcelorMittal, the steel industry and the country.