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2019 Sustainability Report

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2019 Sustainability Report 2019 SUSTAINABILITY REPORT Committed to clean production, our plants have the most high-end technology as well as strict quality 2019 SUSTAINABILITY control throughout the entire REPORT production process. CONTENT 2019 SUSTAINABILITY REPORT LETTER TO OUR ABOUT US OUR STEEL ENVIRONMENTAL STAKEHOLDERS 3 1 2 QUALITY AND SAFETY 4 — — — —COMMITMENT 5 OUR TEAM 6 SUPPLIERS 7 SOCIAL 8 ABOUT THIS — — —COMMITMENT —REPORT MENU C.01— LETTER FROM THE MANAGER 2019 LETTER TO OUR SUSTAINABILITY REPORT STAKEHOLDERS C.01 (GRI 102-I4) DEAR FRIENDS, MENU I am pleased to present to you the fourth that companies that live and practice social BEGINNING edition of our Sustainability Report, in responsibility with a view to sustainable OF CHAPTER compliance with Global Reporting Initiative development are much more attractive Standards, which provides information on places to work and invest in. They attract our social, environmental, and corporate the best talent and enjoy relationships with governance performance for 2019. Over the their neighbors that are warmer, stronger, course of the year, we were able to achieve more lasting, and above all, more trusting, our goals thanks to hard work, efficiency, fostering continuity and more opportunities and a firm commitment. for mutual growth. At Aceros Arequipa, we know that social Innovation continues to be our guiding light., responsibility is not just a trend or a fad. given that the goods and comprehensive It means setting long-term objectives services we offer allow us to apply new and that will benefit the company and its better technologies in our processes, thus stakeholders, promoting social development accompanying the country’s development and economic growth, while preserving through its most important infrastructure the environment. We are also well aware works while contributing to better people’s quality of life. With this in mind, we have continued to increase the reuse of waste. 3 For example, our construction ecobloques TULIO are currently being used to improve the SILGADO infrastructure and safety of our facilities. CONSIGLIERI Meanwhile, ecogravilla gravel is now used CEO on more roads than ever, connecting our P. 4 neighbors living near our Pisco plant. LETTER TO OUR 2019 STAKEHOLDERS SUSTAINABILITY REPORT As an active member of the community, we program, through which we continued to in the RobecoSAM Dow Jones Sustainability C.01 continue to implement socioenvironmental recognize and promote social initiatives that Index. development programs in the areas of our employees wish to carry out. influence of our operations, as well as It is important to note that we continue promoting shared work and forging About our achievements, we are proud to with the expansion of our steel mill MENU strategic alliances between the community, have received, for the second year in a row, complex at the Pisco plant, which will the government, private enterprise, the Socially Responsible Company Seal help us to become more efficient in the BEGINNING and other organizations, with the goal (DESR) given out by “Perú 2021” and CEMEFI. use of resources, as well as reduce our OF CHAPTER of achieving social improvements while For the third consecutive year, we also won environmental impact, improve our value preserving the environment and its natural the National 5Ss Award, receiving the Gold chain, and reduce our level of imports, resources. Medal; and we took home the Silver Prize in boosting the development of our national the “Líderes de la Excelencia” International industry. On the internal front, we continue to Quality Contest organized by the PUCP promote our corporate values in an Institute of Quality in collaboration with I proudly invite you to read through our new effort to maintain the commitment of the American Society for Quality, with our 2019 Sustainability Report. our employees. Their participation in our improvement project for the optimization of continuous improvement system resulted the EBT electric arc furnace control system. in 2,159 suggestions, of which 56% were This same project won us the “Improvement implemented. We also continued with Projects Award” given out by the Center our quality circles, with the participation for Industrial Development (Centro de of 144 employees in 24 teams, of which Desarrollo Industrial) of the Peruvian 14 completed their projects. Additionally, National Association of Industries (SNI). Last we bolstered our corporate volunteering but not least, we were invited to participate ECOGRAVILLA GRAVEL IS NOW USED ON TULIO SILGADO CONSIGLIERI MORE ROADS THAN EVER, CONNECTING CEO OUR NEIGHBORS LIVING NEAR OUR PISCO. P. 5 PLANT. MENU C.02— ABOUT US 2019 ABOUT US SUSTAINABILITY (GRI 102-1, 102-2, 102-3, 102-4, 102-5) REPORT C.02 MENU We are Corporación Aceros Arequipa Our main activity is the manufacturing, • Direct Reduction Plant. S.A. (CAASA), a steel company originally preparation, commercialization, distribution, • Steel Mill. BEGINNING incorporated as Aceros Arequipa S.A. in 1964. and sale of iron, steel, other metals, and their • Rolling Plant 1. OF CHAPTER We began our production processes in the byproducts, in different forms and qualities. • Rolling Plant 2. city of Arequipa in 1966. To achieve this, we have the following • Industrialization Plant. operations: • Dimensioned Steel Plant. • Administrative offices: Magdalena del • Distribution centers in the departments Mar, Lima. of Lima, Arequipa, Trujillo, and Iquitos. • Iron and Steel Complex, which is located • Scrap distribution, storage, and at kilometer 241 of the Panamericana processing centers in El Callao and THE EXPANSION OF THE STEEL Sur highway, in the district of Paracas, Huachipa. MILL IS SCHEDULED FOR province of Pisco, region of Ica, and • Distribution center and international COMPLETION IN 2020. IT WILL includes the following plants: subsidiary: La Paz and Santa Cruz in Bolivia. HAVE A PRODUCTION CAPACITY • International subsidiary: Chile. OF 1.35 MILLION TONS OF STEEL PER YEAR. WE INVESTED US$ 208 MILLION IN IT, GENERATING A POSITIVE IMPACT IN LOCAL AND NATIONAL ECONOMY. P. 7 ABOUT US (GRI 102-3, 102-4) 2019 SUSTAINABILITY REPORT The following report only covers the operations of Corporación Aceros Arequipa C.02 in Perú and not those of other countries. Our vision is to be leaders in the Peruvian iron and steel market, ranking among the most profitable in the region with an active MENU presence in the international market. Our mission is to offer steel solutions to our BEGINNING customers through innovation, continuous OF CHAPTER improvement, and human development, Distribution centers contributing to the country’s growth and Lima, Arequipa, increasing value for our shareholders. Trujillo and Iquitos Administrative offices: Magdalena del Mar, Lima Scrap distribution, storage, and processing centers: Callao and Huachipa Iron and Steel Complex district of Paracas International subsidiary Distribution center and Chile international subsidiary La Paz and Santa Cruz in Bolivia. P. 8 2019 ORGANIZATIONAL VALUES SUSTAINABILITY REPORT AND COMPETENCIES C.02 (GRI 102-16) MENU BEGINNING OF CHAPTER We promote a sense of belonging in our organization through three values and four organizational competencies: VALUES We are passionate We focus on We work as about our work relevant aspects a team P. 9 ORGANIZATIONAL VALUES 2019 AND COMPETENCIES SUSTAINABILITY REPORT COMPETENCIES C.02 (GRI 102-16) MENU BEGINNING OF CHAPTER I propose I act like innovations a leader I work with I invest in commitment relations P. 10 2019 STANDARDS AND RULES SUSTAINABILITY REPORT OF CONDUCT C.02 (GRI 102-16) In addition to our values and competencies, MENU we have a number of codes, policies, regulations, and reference guidelines for all BEGINNING our team members and stakeholders. These OF CHAPTER documents are: Internal Work Regulations Occupational Health and Safety Regulations Goods and Services Procurement Policy P. 11 2019 CORPORATE SUSTAINABILITY REPORT GOVERNANCE C.02 (GRI 102-18) MENU Our board of directors is tasked with AUDIT AND RISK COMMITTEE APPOINTMENTS, COMPENSATION, AND the mission of promoting the healthy HUMAN RESOURCES COMMITTEE BEGINNING development and growth of our The main purpose of this committee is to OF CHAPTER organization on a sustained and consistent assist the board of directors in performing The main purpose of this committee is basis. From this, several committees are its oversight responsibilities with regard to to guarantee that the company’s human derived: our corporation’s internal control system. resources management complies with It meets at least four times a year, and the corporate guidelines and the latest consists of four board members. practices in human resources development. It is also responsible for ensuring an The Chairman, the CEO, and the Internal equitable and competitive compensation Audit Manager attend committee meetings system that allows the organization to carry with the right to speak, but not to vote. out its mission and achieve its strategic The Internal Audit Manager acts as the objectives. committee’s Technical Secretary. The External Auditor or other managers or team members from the corporation attend as OUR BOARD OF DIRECTORS IS guests when so requested. TASKED WITH THE MISSION OF PROMOTING THE HEALTHY DEVELOPMENT AND GROWTH OF OUR ORGANIZATION P. 12 CORPORATE GOVERNANCE 2019 SUSTAINABILITY REPORT OTHER COMMITTEES • Acting as an advisory body in case team C.02 members or third parties have concerns ETHICS COMMITTEE about events or circumstances that
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