Aperam S.A. · EURONEXT:APAM
Aperam — ESG Presentation (April 2021)
26 slides from Aperam's sustainability presentation, April 2021
Slide 1: The global producer of green stainless steel
The global producer of green stainless steel
Slide 2: ESG: Introduction
ESG: Introduction Aperam is a global stainless, electrical & specialty steel producer. #2 in Europe and the only producer in S. America €4.2bn Revenue by industry Sales 5% 12% 24% 16% 9,600 22% Employee 21% s Building & Construction Catering & Appliances General Industry Automotive Energy & Chemical
Slide 3: Why look at Aperam from an ESG perspective?
ESG: Introduction Why look at Aperam from an ESG perspective? Our mission is to produce reliable, 100% recyclable, green stainless steel Products Non toxic, long lifespan and 100% infinitely recyclable without loss of quality Process We have ambitious ESG targets and a convincing track record Sustai
Slide 4: Aperam produces a superior product in a sustainable and responsible way
ESG: Introduction Aperam produces a superior product in a sustainable and responsible way Renewable energy and recycling are key inputs in our production process Superior product Very long useful life 100% recyclable Non toxic Abrasion resistant Corrosion resistant Withstands fire & acid Mechanicall
Slide 5: Aperam is at the heart of the European circular economy
ESG: Introduction Aperam is at the heart of the European circular economy Scrap is a closed loop in Europe and our primary input in our European operations Automotive Construction Other transport • Aperam uses >85% scrap in 14 years 50 years 30 years its austenitic grades Life cycle Customers 85%
Slide 6: Aperam supports the UN Sustainable Development Goals
ESG: Introduction Aperam supports the United Nations’ Sustainable Development goals, in particular: Social Environment Governance 6
Slide 7: ESG is core at Aperam and starts at the top
ESG: Introduction ESG is core at Aperam and starts at the top Governance & Stakeholders Social • Our high ethical standards are reflected in our • Our people are colleagues with whom we share robust corporate governance and compliance values and a common future program² with a zero tolerance policy
Slide 8: Sustainability performance as a key to Aperam's strategy: Social
Sustainability performance as a key to Aperam’s strategy Social “Our People are our greatest asset. Their Safety is our priority, their development is the key to our success”. ˃ LTIFR : 1.7 (vs. 1.4 in 2018) - target to become a zero-accident company. ˃ Absenteeism: 3.10 - target at 2 ˃ 2019 Perform
Slide 9: Our Values
ESG: Social Our Values Leadership Agility Ingenuity We seek to be bold and courageous We recognize the need to move Our people are skillful, imaginative in our approach, while remaining quickly, adapt to changing market and innovative in their work, and relevant to the marketplace, and to conditions
Slide 10: Health & Safety
ESG: Social Health & Safety The safety of our people is non- negotiable and always our top priority. 2019 highlights When we protect each other, we build team spirit and promote proximity and 1.72 Life-Time performance at the same time frequency rate “The people who work for and with Aperam represen
Slide 11: Our people are our asset
ESG: Social Our people are our asset Industry benchmark Criteria 2020 Target Aperam 2019 status 2017 Lost-time injury frequency rate <1 1.7 ! 2.93* 12% of staff Gender Diversity Increase 20% of exempts +20% among White Collars 35.5 training hours/FTE Training Increase 8,950 people having been traine
Slide 12: Environment: On track for -41% by 2030
Environment “We provide the lowest CO2-footprint stainless steel and constantly reduce our production costs and impacts.” ➔ On track for -41% by 2030 ˃ CO2 intensity[2] reduction 35% vs. vs. 2008, leveraging further 2008 to 0.48/t due to maximal usage of own energy savings and maximum charcoal. scra
Slide 13: A best in class environmental footprint & clear improvement targets
ESG: Environment A best in class environmental footprint & clear improvement targets2 Criteria 2030 Target Aperam 2019 status Industry benchmark Energy intensity* 12.1 GJ/t -5% vs 2015 13.3 GJ/t due to low production CO2 intensity** 0.45 t/t -15% vs 2015 0.48 t/t better than 2018 ✓ 2017: 0.95 t/t² W
Slide 14: Charcoal & scrap usage give Aperam a best in class climate change footprint
ESG: Environment Charcoal & scrap usage give Aperam a best in class climate change footprint Aperam energy mix 2019 Aperam has the smallest CO2 footprint in the industry Overseas competitors are highly CO2 pollutive* Aperam produces a clean stainless steel *Source: Aperam estimates & calculation, IS
Slide 15: CO2 footprint: industry leading, greenest stainless steel globally
ESG: Environment CO2 footprint: Aperam has an industry leading CO2 footprint and produces the greenest stainless steel globally Aperam Aperam has a convincing track record and clear has the targets improvement smallest CO set 2 footprint for 2030 in the industry Scope 1 – All Direct Emissions from t
Slide 16: CO2 emissions and Energy
ESG: Environment CO2 emissions and Energy CO2 emissions (t/t crude steel) The steel sector is one of the most energy-consuming sectors and the standard steel-making process requires carbon add-ins during the melting process. Aperam’s record CO2 footprint is driven by two factors: 1. energy consumpti
Slide 17: Water & dust emissions
ESG: Environment Water & dust emissions Water intake m3/t crude steel) Water is moving up on our priority list. Our discussions with local authorities confirm that dry seasons may foster more problems regarding water availability. We start to establish new procedures at the central level, and establ
Slide 18: Recycling
ESG: Environment Recycling Aperam actively works towards becoming a recycling champion Stainless steel is endlessly re-usable without loss of quality ● Steel is an input into our process and our end product ● Product recyclability is a unique property, that Aperam is fully committed to optimize ● In
Slide 19: Sustainability performance as a key to Aperam's strategy: Governance
Sustainability performance as a key to Aperam’s strategy Governance & stakeholders “We lead by example and maintain constant engagement with all our Stakeholders in quest for mutually beneficial solutions” ˃ Best practice in Corporate Governance reflected in our: ○ Board and Committee composition ○
Slide 20: ResponsibleSteel as part of our strategic plan
ESG: Governance & Stakeholders ResponsibleSteelTM as part of our strategic plan making corporate responsibility more widely recognised “The ResponsibleSteel™ label will play a prominent role in making the steel industry a true ally in building the sustainable and responsible society we strive to liv
Slide 21: Communities & Corporate Citizenship
ESG: Governance & Stakeholders Communities & Corporate Citizenship Aperam Ústí (Czech Republic) receives the second place in the local 2019 Maintaining a close relationship with our Corporate Social Responsibility Award. stakeholders is consistent with our values and also sound business management I
Slide 22: Ethics and Compliance
ESG: Governance & Stakeholders Ethics and Compliance ✓ Very strong ethical guidelines based on Aperam values that Aperam policies inspired go much beyond regulatory required compliance by international references: - International Labour Office ✓ Zero tolerance for non-compliant behaviour - UN Human
Slide 23: Board of Directors
ESG: Governance & Stakeholders Board of Directors ● Responsible for strategic direction and oversight of the Highest Corporate Governance Standards with a majority of business, as well as for appointing senior management independent directors ● Election subject to shareholder approval. Directors are
Slide 24: Leadership Team
ESG: Governance & Stakeholders Leadership Team ● Entrusted with day-to-day management of the Company ● Appointed and dismissed by the Board of Directors ● Experience and industry know how ● Average age: 49 / 6 nationalities ● CEO: responsible for Aperam’s sustainability performance and compliance ●
Slide 25: Shareholder structure
ESG: Governance & Stakeholders Shareholder structure Shareholder structure by region * Beneficial ownership and voting rights by each person who is known to be the beneficial owner of 5% or more of Aperam’s issued share capital at the end of Q1 2020 8% 24% 6% 8% 3% 3% 7% 41% N America France UK Bene
Slide 26: Recent Recognitions
Recent Recognitions Rated Prime by Reconfirmed as "AA" Rated "B" Listed in Excellence Rated 78/100 pts by Oekom (Leadership level) by (Management level) registers EthiFinance. MSCI by CDP Aperam named as best practice for ESG disclosure in 2018 #2 best company to Best employer #3 in Responsible Inve