Safe Sustainable Steel
2010 Corporate Responsibility Report
ArcelorMittal Mexico
About Us
ArcelorMittal is the world’s
leading steel and mining
company with a presence in
more than 60 countries.
We are the leader in all major
global steel markets, including
automotive, construction,
household appliances and
packaging, with leading Research
and Development (R&D) and
technology, as well as sizeable
captive supplies of raw materials
and far-reaching distribution
networks. Through our core values
of Sustainability, Quality and
Leadership, ArcelorMittal commits
to operating in a responsible way
with respect to the health, safety
and well-being of its employees,
contractors and the communities
in which we operate. We take a
leading role in the industry’s
efforts to develop breakthrough
steelmaking technologies and we
are actively researching steelbased technologies and solutions
that contribute to combating
climate change.
In 2010, ArcelorMittal had global
revenues of $78.0 billion and crude
steel production of 90.6 million
tons, representing approximately
six percent of world steel output.
Mexico Locations
Sonora
Monterrey
Volcano Mine
ArcelorMittal Celaya
Celaya Gto.
Peña Colorada Mine
Adminitrative Offices
Mines
Flat Carbon
Long Carbon
ArcelorMittal Tultitlán
México City
ArcelorMittal Córdoba
Lazaro
Cardenas, Mich.
Aquila Mine
Miriam Faraon Mine
Las Truchas Mine
ArcelorMittal Lázaro Cárdenas
ArcelorMittal Las Truchas
ArcelorMittal is transforming tomorrow by...
Investing in our people
Making steel more
sustainable
Investing in our
communities
...all this is underpinned by Transparent governance
ArcelorMittal Mexico
ArcelorMittal Mexico is the largest
steel producer and slab exporter of
the country. With industrial
presence in four states, in 2010
ArcelorMittal Mexico produced 3.8
million of tons of steel and 3.95
million of tons of iron ore. In
Mexico, ArcelorMittal employs
more than 6,000 men and women
across four integrated steel
producing and mining facilities.
About Us | 2010 ArcelorMittal Mexico Corporate Responsibility Report
Letter from Mexico Leadership
A year of certifications and
continuous improvement
2010 was a year of big challenges as we
began to move out of the economic crisis, but
it was also a year of important achievements
for ArcelorMittal Mexico. Though our
production remained below the 2008 levels,
this did not prevent us from keeping focused
on the four pillars of Corporate Responsibility
(CR): investing in our people, making steel
more sustainable, enriching our communities
and transparent governance.
Our business is closely tied to our CR
strategy. Given this connection, I am pleased
to report that ArcelorMittal Mexico
accomplished solid production results in
2010, both in our steel plants and mines,
demonstrating how we’ve adapted in the
post-crisis world.
The safety of our people comes first. We
work vigilantly to ensure our people are
aware of safety risks and prepared to handle
their jobs in a safe manner. At our largest
production operations, we obtained the
important safety management certification,
OHSAS 18001, underlining our commitment
to Health and Safety. We continue to
progress toward the Journey to Zero and
building a culture of safety that will allow us
to accomplish zero incidents. There is work to
do, but I am confident through partnership
with the union and employee engagement we
can continue to improve.
production sites. Having these certifications
demonstrates we continue to increase the
sustainability of our operations.
Within the framework of the ArcelorMittal
Corporate Responsibility strategy, we focus
our social investment projects on the
communities around our industrial units.
Through the priority areas of activity:
Education, Health and Safety, and Social
Promotion, we invested nearly half million US
dollars in 2010 (approximately 5.6 million
pesos). These projects and programs ensure
the wellbeing of these communities.
We recognize that being transparent in our
operations and governance is essential for
acting responsibly. ArcelorMittal Mexico
formalized a CR governance committee to
guarantee to our stakeholders that we are
working in the most responsible way and that
all our procedures are completely transparent.
Table of Contents
2
Investing in our people
4
Making steel more sustainable
6
Enriching our communities
8
Transparent governance
In 2010, we have advanced our efforts to
secure a more responsible operation. We also
further instilled our brand values of
Sustainability, Quality and Leadership in our
people, based on a strong focus on Corporate
Responsibility.
Transforming tomorrow is an ambitious but
achievable goal. To be successful in this we
have to keep working together, both with our
employees and with our communities, and
with one clear view: our Company is only as
good as its people and the communities in
which we operate.
Producing Safe Sustainable Steel is
fundamental for ArcelorMittal Mexico, and
this is why we implemented several programs
and actions to reduce our environmental
impact, while improving the sustainability of
our products. Last year we invested $6
million (approximately 75.8 million pesos) in
capital environmental projects to further
improve the environmental systems and
emission reduction technology at our
operations.
During 2010, we made progress on
environmental certifications, receiving ISO
14001 certification at three facilities for
responsibly managing environmental impact
and ensuring a proper system was in place.
We also received re-certifications in Health
and Safety and Quality at our major
Bill Chisholm
CEO, ArcelorMittal Mexico
2010 ArcelorMittal Mexico Corporate Responsibility Report | Letter from Mexico Leadership | 1
Investing in our people
At ArcelorMittal Mexico, we
recognize that our people are
our most valuable resource, and
their contributions to all facets
of our business are what
sustains and drives our company
forward. For this reason, we
prioritize their health and safety
and constantly seek ways to
improve their development
opportunities.
Journey to Zero
It is the goal of ArcelorMittal worldwide to
have no workplace accidents, and
ArcelorMittal Mexico takes this goal seriously.
More than a statement, Journey to Zero is a
company-wide initiative to create a culture of
zero accidents. We regularly conduct shop
floor audits and evaluations to monitor and
track safety practices within our facilities. We
also hold training sessions to teach plant
personnel how to effectively detect and
correct risky behavior.
In 2010, ArcelorMittal Mexico experienced an
18.7 percent increase in Lost Time Injuries
(LTI). Even thought we saw an increase from
2009 to 2010 for LTI, it is important to note
this change was partially affected by a
revision in the criterion used to qualify injuries.
The new standards are more stringent and to
continue progress against these new
standards, specific actions to improve safety
were taken in several areas, including:
•A
dded 40 hours of special training for all
front-line supervisors
• F ormalized Fatality Prevention Standards
and corresponding Fatality Prevention
Audits were implemented
• Identified employees to serve as safety
stewards during major planned shutdowns
to further increase vigilance and ensure
safety leadership during times when risks
can increase
These actions will help ensure we make
progress on our Journey to Zero.
Training our People
117,188
training hours completed in 2010.
OHSAS certification
In 2010, ArcelorMittal Lázaro Cardenas,
Truchas mine, and Celaya facility obtained
OHSAS 18001 safety certification. This
monitoring system provides the framework
to improve health and safety practices and
performance within the workplace. The
implementation of OHSAS certification is vital
to advancing our health and safety programs.
Safety training and equipment
Essential to improving our safety
performance is thoroughly training our
employees to work vigilantly and carefully. All
employees, unionized, salaried, and
contractors must undergo safety training. In
2010, this included a total of 56,574 health
and safety-specific training hours for all
employees and 60,614 total training hours
for contractors. Our unionized employees
receive extensive training in maintenance and
operation, which includes safety and
environmental training. Our non-unionized
employees receive similar training, and must
additionally attend behavioral and quality
instruction.
Maintaining
proper safety
equipment is
equally important
to reaching our
safety goals. In
2010, we
purchased 50
new selfcontained
breathing
apparatuses, 45
fall protection
rescue kits, and 50 confined space rescue
kits. Updating our safety apparatuses
prepares us for emergency situations, even as
we work towards ensuring that these
situations do not occur.
2 | Investing in our people | 2010 ArcelorMittal Mexico Corporate Responsibility Report
Improving the Health of Our
People
Necessary to achieving the best working
environment for our people is to offer
employees the opportunity to monitor their
health and keep a healthy life-style.
Medical services and programs
We offer annual voluntary and confidential,
medical screenings to all unionized and
salaried employees to help prevent health
problems. In 2010, more than 2,800
employees underwent a periodic medical
exam.
Screening for Prevention
2,881
Health Screenings provided to employees
in 2010.
We recognize that our female employees may
have different medical needs than our male
workers, and protecting their health is equally
important. Through the Women’s Health
Prevention Program, 100 female employees
received gender-specific medical check-ups
in 2010.
We have a variety of medical laboratory
special services available for
employees as needed,
including blood tests, urine
tests, hepatic profiles, and
specific prostate antigen
tests.
Essential to caring for the
well-being of our
employees is ensuring that
their families have access to
proper medical attention as
well. All members of an
employee’s immediate family
are able to access the plant’s medical
services, both basic procedures and special
tests, at no charge.
Wellness initiatives
Training
Exercise is key to well-being, and recent
studies have shown that Mexico faces the
rising challenge of childhood obesity. To
encourage exercise both within our
workforce and for their families, our Lazaro
Cardenas and Celaya facilities organized
Health Walks in early 2010. The Lazaro
Cardenas Health Walk kicked off their Health
and Safety Week, while Celaya organized a
walk as a separate event.
We realize the importance of advancing our
employees’ skills and career opportunities.
ArcelorMittal Mexico offers a variety of
educational programs to employees to enrich
their knowledge and skills, and support a
rewarding work experience. Specific
examples include:
Our Cordoba facility decided to build on the
success of the first two health walks in our
Mexico operations, organizing their own
Health Walk later in the year. Around 150
employees and their families participated in
the inaugural Cordoba ArcelorMittal health
walk. Due to the overwhelming success of
the first walk in Cordoba, a second one is
already in the works. These types of events
demonstrate our commitment to the
wellness of our employees and their families.
Diversity and Career Development
Recruitment efforts
As a large employer, we recognize our
responsibility to support local communities.
We recruit the majority of our unionized
workforce locally in partnership with the
union, and we give preference to local
candidates when hiring for non-unionized
positions.
• Core Leadership and Managerial Skills
Training, Talent Pipeline Programs and
Executive Education Programs
• On-the-job training, in the form of
internships, for students from local
technical and professional school programs
Mexico has an annual scholarship program for
employees’ children. In 2010, we gave out
375 scholarships – 100 for primary school,
100 for secondary school, 100 for high
school, and 75 for bachelor’s degree seeking
students.
“At ArcelorMittal, we want to develop
and retain the best talent of the
region and, with this scholarship
program, we are advancing in the
right direction.”
– Cynthia Arrendondo, Human Resources,
Director, ArcelorMittal Mexico
Providing summertime learning
Hands-on training
Summer camps are offered at Lázaro
Cardenas, Tultitlan, and Cordoba. In 2010, a
total of 600 children, including employees’
children and those from the local orphanages,
participated in the educational camps.
139
Interns received hands-on training
in 2010.
Supporting the education of
­employees’ families
As we are able to develop skills and abilities
locally, the sustainability of our communities
is greatly enhanced. Therefore, ArcelorMittal
Local
children
enjoy
learning at
summer
camp
offered at
ArcelorMittal Lazaro Cardenas.
Age of Employees
Years with ArcelorMittal Mexico
Shown as percentage of Mexico workforce (hourly and salaried)
Shown as percentage of Mexico workforce (hourly and salaried)
35.1
26
31.5
21
14.9
17.5
14.6
.14
<20
1.2
20-29
30-39
40-49
50-59
60-69
12.8
14.2
5.6
.02
>70
0-5
6-10
11-15
15-20
21-25
26-30
5.3
31-35
0.3
36-40
2010 ArcelorMittal Mexico Corporate Responsibility Report | Investing in our people | 3
Making steel more sustainable
Reducing our environmental
footprint is essential to
achieving ArcelorMittal’s goal of
producing Safe Sustainable
Steel. ArcelorMittal Mexico has
implemented a variety of
programs and projects to
reduce our environmental
impact while improving the
sustainability of our product. In
2010, we invested $6 million on
environmental projects at our
operations.
Environmental Policy
ArcelorMittal Mexico subscribes to our global
environmental policy, which aims to reduce
our company’s footprint and increase the
sustainability of our operations and product.
As a global, diverse company, ArcelorMittal
has the advantage of being able to find and
enact best practices from operations
throughout the world.
Our Environmental Policy has several tenets,
all aimed at reducing our impact by improving
our materials usage, operational efficiency,
product sustainability, compliance, and
monitoring. This includes increasing
employee, supplier and contractor
commitment to enhancing environmental
performance.
Environmental sustainability is a complex,
continuously evolving process. ArcelorMittal
Mexico is committed to doing our part in
achieving our corporation’s overall objective
of producing safe sustainable steel.
Managing our Impact
The ISO 14001 environmental management
system is an internationally accepted standard
for responsibly managing environmental
impact, and it has detailed requirements for
processes, community engagement, and
monitoring. In September 2010, we obtained
ISO 14001 certification for our largest
facility- Lazaro Cardenas, as well as the
Truchas mine and the Celaya facility.
Capital Environmental Projects
$6 million
USD
(approximately 75.8 million pesos)
spent on projects in 2010.
Improving our processes
Reducing our footprint requires proactive
innovation to make our facilities and
processes more efficient. In 2010, we spent
more than $6 million USD (approximately
75.8 million pesos) on capital environmental
projects. These projects included the
installation of dust collectors systems in
Direct Reduced Iron (DRI) handling area,
additive loading system in Electric Arc
Furnaces (EAF), Basic Oxygen Furnace (BOF)
process and Port Facilities. We also have
started installation of a secondary emission
collection system at the EAFs to control
fugitive emissions from scrap loading,
constructed a warehouse to control byproducts form the production process and
installation of new dust control systems
throughout our operations.
Reducing our energy use
By reducing our energy use, we are able to
lessen our environmental impact, increasing
the sustainability of our operations. In 2010,
we reduced energy use by 2.2 percent, and
we seek to continue this positive trend.
Reducing Energy Use
2.2%
reduction in energy use at ArcelorMittal
Mexico operations.
As part of our energy use reduction program,
we recycle as much blast furnace gas as
possible which is then used to generate
4 | Making steel more sustainable | 2010 ArcelorMittal Mexico Corporate Responsibility Report
electricity for use in operations. This process
not only decreases our consumption of
energy from external sources, it also reduces
emissions, thus decreasing our overall
environmental footprint. Blast furnace gas
recycling has been conducted in many areas
of the plant since the beginning of operations
at Lazaro Cardenas. This process was rolled
out for the first time in 2010 at the rebar and
wire rod rolling mills.
In 2010, 84.2 percent of the total blast
furnace gas produced was recycled for use in
internal electricity generation.
Blast Furnace Gas Recycling
84%
of blast furnace gas was recycled to
produce electricity used internally at
ArcelorMittal Mexico operations.
Reducing emissions
ArcelorMittal has committed to reducing our
global CO2 emissions by 8 percent globally by
2020. ArcelorMittal Mexico is making strides
towards contributing positively to the
achievement of this goal by implementing
energy efficiency and emissions reduction
programs. In 2010, ArcelorMittal Mexico
created 1.81 tons of emissions per ton of
steel produced. From 2009 to 2010, we
reduced total emissions by more than 7,800
tons, primarily by implementing natural gas
alternatives at our rolling mill in Lazaro
Cardenas.
Recyclability of steel
With infinite recycling capability, steel is the
world’s most recyclable material. More steel
is recycled worldwide than all other materials
combined. As part of our production process,
we re-use scrap steel to form new steel. In
2010, we recycled nearly 270,000 total tons
of scrap steel at ArcelorMittal Mexico.
Building Mutually Beneficial
Water Partnerships
ArcelorMittal commits to managing our
water footprint by identifying ways to
reuse, recycle and properly manage water
resources. We view water as a local issue
and at our Lazaro Cardenas facility we
worked with the city of Lazaro Cardenas
to support its water treatment facilities.
In 2007, the municipal government of
Lazaro Cardenas rehabilitated three water
treatment facilities to help reduce water
pollution within the region. To help
support this initiative, ArcelorMittal
Mexico signed an agreement with the
government in 2009 to buy the treated
water from one of the city’s plants and
re-route to our operations. Our payment
of more than $650,000 annually to the
municipality for our cooling water helps
ensure the continued operation of the
water treatment plants and also supports
the cooling system in our steel operations.
The local water treatment plants play a
critical role in reducing water
contamination and pollution along with
the associated public health and
environmental impacts.
Environmental Education
Essential to improving our environmental
performance is educating our employees
about sustainability. On June 5, we
participated in 2010 World Environment Day,
themed “Year of Biodiversity.” Employees
participated in workshops about the flora and
fauna within the Lazaro Cardenas campus as
a way to educate themselves about the
animals and plants they see on a daily basis.
The day resulted in the creation of two
environmental campaigns to be implemented
within our facilities. The first aims to protect
Bill Chisholm,
CEO,
ArcelorMittal
Mexico, speaks
at 2010
World
Environment
Day activities
at the Lazaro Cardenas facility.
Employees
plant native
species at the
Lazaro Cardenas
facility. More
than 1,400
employees
volunteered in
sustainability projects during World
Environment Day across ArcelorMittal Mexico
facilities.
trees by requiring rigorous evaluation before
cutting down any tree. The second campaign
centers on traffic awareness, aimed towards
increasing safety for both our employees and
animals that may be crossing roads.
Within the reserve, there is a 5-acre
groundwater lake upon which many
species of wildlife and plants rely, including
crocodiles and mangroves. In 2006, this
lake was invaded by an aquatic fern species
that quickly expanded, killing many of the
native plants and animals living within the
waters. After considerable manual efforts
and consultation with biologists, a solution
was applied. Today, the lake is clear of the
invasive ferns, and the native and migratory
species are once again able to take advantage
of its clean waters.
Before ArcelorMittal
Lazaro Cardenas
undertook
conservation
work to remove
the aquatic fern
species encroaching
on the lake.
The lake fully
restored and
clear of invasive
ferns.
Protecting Our Environment
We are proud of a unique feature of our
Lázaro Cardenas campus: a 653-acre
ecological reserve. The area has been
protected since the 1980s, and its wetland
habitat has made it a favorable home to a
variety of species, including endangered iguanas, white-tailed deer, and crocodiles. These
animals have been endowed with special
protection status via an Environmental
Management Unit, given by the federal
Environmental Agency (SEMARNAT). In
support of and approved by SEMARNAT,
ArcelorMittal designed a species management plan to protect these animals and
promote education and conscientiousness
amongst our workforce. We consider
ourselves privileged to host such an array of
rare and valued species on our site, and we
have taken great strides to ensure that their
habitat remains protected for the future.
To further support the reserve’s wildlife, we
opened a veterinary center within our facility
to provide medical treatment to the native
animals. Equipped with emergency medical
equipment, a surgery table, an egg incubator,
and other necessary veterinary devices, the
center is able to provide medical attention to
the variety of animals who call the ecological
reserve home. With the support of the Lazaro
Cardenas Municipality, the center also
launched a spay and neuter program to help
reduce the population of stray dogs and cats.
Stray dogs and cats pose a threat to the
native wildlife, and present a large animal
control challenge to the municipality.
ArcelorMittal is therefore supporting the
government’s efforts while protecting the
reserve.
2010 ArcelorMittal Mexico Corporate Responsibility Report | Making steel more sustainable | 5
Enriching our communities
We recognize our duty to assist
our greater communities
through donations, resource
sharing and employee
volunteerism. We focus our
community efforts primarily in
education, social services, and
health. Through the
ArcelorMittal Foundation, we
sponsor a variety of community
enrichment activities. In 2010,
we gave $445,000 USD in the
communities where we operate.
Social Investment Projects
$445,000USD
(approximately 5.6 million pesos)
donated to non-profit
organizations in ArcelorMittal
Mexico communities
during 2010.
Transforming Tomorrow through
Education
Education is an essential tool for the
advancement of individuals and societies.
Supporting education initiatives is therefore a
priority for ArcelorMittal, and much of our
charitable work centers on developing and
promoting education throughout our
communities.
I Would Like to Be
Drug addiction, alcohol use, and violence are
constant
challenges in the
youth
community, but
we believe they
can be overcome
with proper
education and preventative measures. In
2010, ArcelorMittal Mexico launched the “I
Would Like to Be” program, an anti-drug and
alcohol education initiatives formed through
collaboration with the Argentine education
organization, Foro 21. In November, we
rolled out a pilot of the program, reaching
250 school children between 10 and 14 years
old at four different schools in Lazaro
Cardenas. The curriculum consisted of seven
workshops involving eight ArcelorMittal
employees as volunteers. The program was
very popular, and we have already received
requests to conduct more workshops. We
plan to expand “I Would Like to Be” to schools
near our other business units throughout the
country in 2011.
Protecting the Environment
A healthy environment is a necessary
component of maintaining our communities
and our business. We therefore focus some of
our philanthropic efforts on environmental
restoration and protection. Along with
environmental initiatives and improvements
at our own facilities, ArcelorMittal Mexico has
tried to contribute to environmental
conservation in our operating regions.
Turtle Camp
A gem of Lazaro Cardenas, the native marine
turtle has become endangered due to a
variety of environmental threats. In an effort
to preserve this special animal and ensure its
future, ArcelorMittal Mexico began plans in
2008 to reconstruct a “Turtle Camp”, a
center that would function as a turtle release
facility and environmental education center.
ArcelorMittal began rehabilitation of the
facility in 2010 with a goal to open in 2011,
employing fifteen fishermen to support the
camp’s operations. This project helps protect
the marine turtle and increases the
sustainability of the fishermen themselves,
who have seen their livelihoods threatened by
decreasing fish populations and commercial
fishing companies.
The ArcelorMittal Foundation is in the process
of helping the camp to establish a legal
association which would enable the center to
charge an entrance fee to help support its
operations. Each year approximately 4,000
people visit the camp free of cost.
6 | Enriching our communities | 2010 ArcelorMittal Mexico Corporate Responsibility Report
Turtles thrive at the Turtle Camp created in
Lazaro Cardenas. Each year approximately
4,000 people visit the camp.
ArcelorMittal views Turtle Camp as an
important component in species preservation
and in building the eco-tourism industry,
which will ultimately increase the overall
economic and environmental sustainability of
the region.
Health and Safety of Our
­Communities
Improving the health and safety practices and
performance of our own operations is a
priority at ArcelorMittal, and we view health
and safety as an equally vital element of
community enrichment. We therefore
support a wide array of health and safety
projects and programs within our
communities.
Providing emergency services
Because we have extensive health and safety
equipment at ArcelorMittal Lazaro Cardenas
to care for our employees, we are in a
leadership position to support medical
services to our communities. We help our
communities by providing first aid and
ambulance transportation to area hospitals. In
2010, we assisted in 67 emergency cases,
many were victims of car accidents.
Additionally, we donated ten sets of
respiratory equipment from the Lazaro
Cardenas medical department to the local
Red Cross to assist the Red Cross in
emergency rescues, especially for highway
accidents where dangerous gases and toxins
are often present.
“Support from ArcelorMittal provided
respirators that have been critical to
the tools our emergency responders
need. It allows our rescue team the
capability to attend to victims and
also keep themselves safe.”
– Javier Coronel Bernal, Red Cross Vice
President
This donation marked another step in
ArcelorMittal’s relations with the Red Cross,
an organization with whom we’ve been
partnering with for several years.
ArcelorMittal also prioritizes assisting in
disaster relief efforts. We provided necessary
support to the people of Angageo who were
left homeless after severe rainstorms and
landslides in February 2010. Employees
donated food and other necessities to these
families, giving approximately $2,000 USD
(25,290 pesos) in support. ArcelorMittal
matched employee contributions, for a total
donation of more than $4,000 USD (50,580
pesos).
Community Advancement
Programs
Providing social development tools and
mechanisms is essential to building the
sustainability of a community. Social
promotion is therefore a focus area for the
ArcelorMittal Foundation.
Supporting local youth
Guacamayas (macaws, a native bird in
Mexico) is a youth home and orphanage in
Lazaro Cardenas. ArcelorMittal helps maintain
the physical condition of the facilities,
donates supplies such as school uniforms and
fire extinguishers, and sponsors events on
holidays. Children of the home are invited to
participate in events alongside ArcelorMittal
employees’ children, including our summer
camp program.
In 2010, we organized a tennis tournament to
raise money for the orphanage. The event,
which lasted for three days, and featured 32
players was very successful. More than
$3,000 USD (37,935 pesos) was raised and
several pieces of new equipment were
donated to Guacamayas while providing a fun
and physically active competition. Our
employees provided volunteer support, and
many local companies donated time and
services to the tournament. The ArcelorMittal
Cultural Center partnered on the event as
well, offering a two day camp for 70 children
during the event.
Constructing our communities
We were pleased to announce a new Mexico
non-profit partner in 2010: Habitat for
Humanity, an extension of the global
ArcelorMittal Foundation relationship we’ve
had since 2008. Habitat for Humanity
provides essential
services to our
local communities,
constructing
houses for those in
need. In 2010,
ArcelorMittal
constructed 28
houses in Cerrito
de Camargo,
Guanajato, a
town near our
plant in Celaya.
Three of these
houses were
completed with the support of ten
ArcelorMittal volunteers from around the
world. These volunteers participated as part
of the ArcelorMittal Foundation’s “Solidarity
Holidays” program, which organizes charitable
projects globally that employees can sign-up
for during their vacation days.
Hosting community programs
We constantly seek ways to offer enrichment
activities for our communities. In 2009, we
held our first Christmas concert for the local
community at a local cathedral. It was very
well-received, so we held it again in 2010,
only this time moved the concert to our
Lazaro Cardenas facilities. Approximately 600
people attended the concert, which featured
performers from the National
Conservatorium from Mexico City and the
Institute of Fine Arts.
“It is a great honor to receive all of
you within our facilities for our
annual community concert, and we
will continue using this area to
organize events to benefit our
communities. We are very keen to
continue investing in our
communities, and we hope our
relationship will grow even stronger
during 2011.”
– Bill Chisholm, CEO, ArcelorMittal Mexico
Empowering local women
A new partnership was developed in 2010
to assist community women in need. In
early 2011, we announced the launch of
our support for “Mariposas” (butterflies), a
non-governmental organization aimed at
promoting and protecting the rights of
vulnerable women. The group focuses on
developing women’s goals through
empowerment, focusing especially on
women in crisis and victims of abuse. The
organization offers emotional, spiritual,
psychological and legal guidance to the
women it supports.
Dengue Awareness Day
Dengue fever, a mosquito-transmitted
disease, affects between 50 and 100
million people annually, and it can
especially be a risk during the rainy
season. ArcelorMittal Mexico, together
with local authorities, organized a Dengue
Awareness day for its employees and
community members. Approximately
3,000 people participated in the event,
hosted at our Lázaro Cardenas facility.
The event included free medical checkups for about 200 individuals, and
workshops about dengue and other
health concerns, including HIV/AIDS,
diabetes, and cholesterol. ArcelorMittal
Lázaro Cardenas also donated five sets of
fumigation equipment to local authorities,
vital tools in reducing the population of
dengue-carrying mosquitoes in the
region.
2010 ArcelorMittal Mexico Corporate Responsibility Report | Enriching our communities | 7
Transparent governance
We recognize that being
transparent in our operations
and governance is an essential
component of being a
responsible corporate citizen.
This holds true at the local level,
where we seek to be proactive
in employee engagement and
transparent with all of our
stakeholders.
Local Governance
ArcelorMittal Mexico has a formal committee
for governance and corporate responsibility.
This group is made up of executive members
reflecting both the geographical sites and
functional areas such as Health and Safety,
and Environment. This group was formalized
in 2010 and meets throughout the year.
Engaging Our Stakeholders
50
approximate number of stakeholder
engagement meetings held in 2010.
Engaging with our Stakeholders
While we continuously strive to improve our
business, reduce our footprint, and increase
our transparency, we realize that hearing and
implementing feedback from our
stakeholders is a necessary element of this
process. We therefore hold meetings to seek
input from our stakeholders. In 2010, we held
approximately 50 different stakeholder
engagement meetings, and many
ArcelorMittal representatives attended these
meetings, including the CEO, COO, and
institutional relations director.
It is important that our employees
understand the ethical expectations of our
company. Therefore, all non-unionized
employees have been trained on our Code of
Business Conduct.
It is important that our community members
are able to communicate with us should they
have a question or concern about our
operations. In 2010, we formed a plan to
assess options for implementing a formal
community grievance mechanism. This plan is
on track to be implemented in the coming
year.
Whistleblowing
Keeping Employees Informed
Employee Accountability and
­Ethics
Maintaining the integrity of our finances is
necessary to being an honest and transparent
corporation. To ensure that employees feel
comfortable reporting any irregularities in the
company’s financial accounting and reporting,
we have implemented a whistleblowing
procedure throughout our operations.
Employees can anonymously report
irregularities without fear of reprisal, either
through a confidential phone line or e-mail.
Because our company is so diversified, it is
important to inform our employees about
important events and changes. In 2010, we
launched an internal
newsletter - Mexico
1 Magazine - to all
employees. It details
different occurrences
and opportunities
within the company.
We look forward to
publishing regularly
in 2011.
8 | Transparent governance | 2010 ArcelorMittal Mexico Corporate Responsibility Report
Supply Chain Sustainability
Producing safe sustainable steel is not only
applicable to our own operations. Sustainable
practices must be reflected within our supply
chain as well. At the end of 2010,
ArcelorMittal released the Code for
Responsible Sourcing, which explains our
expectations that suppliers uphold our
company’s policy, including our new Human
Rights Policy and our Environmental Policy.
We are able and willing to assist our suppliers
to improve their practices, and we require
that they be able provide documentation
demonstrating their compliance with our
policies. Through this process, we can ensure
that our product is truly safe and sustainable.
Human Rights Policy: New in
2010
Near the end of 2010, ArcelorMittal
formalized a corporate-wide Human
Rights Policy to ensure that human rights
practices and monitoring are standardized
and meet expectations at facilities across
the globe. Based on the UN Global
Compact and formed in collaboration
with human rights experts, our Human
Rights Policy establishes international
human rights standards, including the
abolition of child labor, compulsory labor,
corporal punishment, harassment, and
unlawful discrimination, while requiring all
compensation to meet local laws and
regulation. We require our Human Rights
Policy to be followed, even when it is
more stringent than local laws, and we
look forward to rolling it out in Mexico
in 2011.
ArcelorMittal Mexico Operations
As part of the ArcelorMittal Lázaro Cardenas
campus there is a 653-acre internal
ecological reserve. The area has been
protected since the 1980s, and its wetland
habitat is home to a variety of species.
ArcelorMittal Lazaro Cardenas is Mexico’s
largest steel producer and slab exporter.
The facility has both flat and long carbon
steelmaking operations that produce
slabs, rebar and other products.
Published in October 2011.
Printed on recycled paper with soy ink.
ArcelorMittal Lazaro Cardenas
Av. Fco. J. Mugica No. 1B,
Lazaro Cardenas, Michoacán, Mexico
T +52 753 53 32670 / 53 31805
E [email protected]
Photo credits
Rebeca Araya, Pamela Scolnic and Krishtian
Serrato
To download ArcelorMittal Mexico’s 2010
Corporate Responsibility Report, visit www.
arcelormittal.com > Corporate Responsibility
> Publications and reports.
To download ArcelorMittal’s 2010 Global
Corporate Responsibility Report, visit
www.arcelormittal.com.