Innovating for Impact
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July/August 2019 Vol. 12, No. 4 No. 12, Vol. 2019 July/August ArcelorMittal USA 1 Company 1 Community1 Company 1 Magazine 03 John Brett: Innovating for Impact 04 05 07 09 Our sustainability story They’re real lifesavers Piles and piles of opportunity Sparking an interest in STEM How “the 10” link to our Burns Harbor team Innovative thinkers find ways Science centers help us prepare business outcomes saves a co-worker to reuse, recycle for the future when his heart stopped Beth Spurgeon Jolice Pojeta Kelly Nissan Summer Paris 2 1 Company 1 Community 1 Magazine 1 | ArcelorMittal USA | July/August 2019 > Global News Politics remain the biggest obstacle to climate change such as renewable carbon and come. But, from this, leaders In the case of steel, I remain optimistic about human Mr. Mittal effect of actually increasing global clean energy. At least one of these will emerge. It is imperative they CO2 generation, taking us further investment to accelerate beings’ ability to innovate and initiatives needs to be viable. As succeed – not only in reducing away from our targets. There are innovation, as well as access transform. But making progress Simon Thompson, chairman of emissions in their own countries no borders in the sky. to clean energy and renewable will require a degree of co-opera- The threat climate change poses Rio Tinto, noted recently, steel is but also in having a positive That is why ArcelorMittal carbon at competitive prices, will tion and foresight, and an to the long-term sustainability of “essential to human progress” and impact on global emissions. is advocating the introduction be essential. Link that to border acknowledgment that this our planet is widely understood there are no obvious substitutes Unfortunately, the first of a green border adjustment mechanisms to ensure domestic is a complex global problem. and accepted. The rising levels for it in a range of applications. does not necessarily lead to to ensure there is a level playing producers are not rendered Unlocking significant of awareness and commitment The technology challenge, the second, so there is a major field between those producing uncompetitive and there will be contributions from industries like to address the challenge are however, may be the easier part challenge here. The steel industry in Europe and those exporting a structure in place to enable steel will take us all a step nearer encouraging. The Paris climate of the problem to solve. The is a good example of this dilemma. to the continent. the steel industry to decarbonize to achieving the aspirations set agreement has 185 signatories harder part relates to the political As it stands, Europe’s mechanism If the world is to address in-line with the Paris agreement. out in Paris in 2015. and a growing number of complexities, which are consider- to reduce emissions, the emissions climate change successfully, the It is this type of action countries, as well as companies, able. In the developed world it trading system, is only applicable answer is not for one region to that will be required if we are This article by Chairman and CEO have ambitions to achieve can be hard to persuade current to steel companies producing outsource its carbon footprint to succeed in solving one of the Lakshmi N. Mittal was first climate neutrality by 2050. generations to make drastic in Europe. Those who export to another and claim victory. greatest challenges of our age. published on FT.com on May 28. That is the good news. changes, particularly if these steel to Europe do not bear Rather, any country or region The harder part is that “solving” threaten jobs, for benefits they the same additional cost that wants to play a leading role climate change poses very are unlikely to see in their lifetime. and therefore will gain an in reducing global emissions complex technical and political needs policies in place that build challenges. This is clear from the a low-carbon industry. fact that, despite the efforts to “ In the developed world it What this means in practice date, global emissions continue is that lawmakers must create to grow. And demand for energy, can be hard to persuade an environment that fosters materials, transport and food innovation and ensures a level will only intensify as the world current generations to make playing field. No industry can continues to develop and the decarbonize by itself. There population further increases. drastic changes, particularly must be collaboration and Clearly it is essential we partnership between political, invent new ways of doing things if these threaten jobs, for business and civil society that don’t rely on fossil fuels. leadership to establish a system For the global steel industry, that supports and enables that means while it continues benefits they are unlikely sustainable decarbonization, to reduce its carbon footprint taking into account the unique through energy efficiency, to see in their lifetime.” economics and drivers for ultimately an energy source each industry. other than coal will be required No politician in a developing important competitive advantage. For example, much of the to extract iron from iron ore, country can pursue policies As an editorial in (the progress in the energy sector a critical part of the primary that threaten economic growth Financial Times) stated: “There in Europe has been made through steel-making process. and the fight against poverty. is little point shifting to low-car- government subsidy and support: ArcelorMittal is piloting We are going to have to bon energy if the costs of the by our calculations, an annual several new technologies, operate with a mosaic of uneven transition lead to more imports subsidy substantially above including carbon capture and the regional and national approaches of steel from less green sources.” $55 per metric ton of CO2 use of alternative energy sources and policies for some time to Doing so would have the opposite emissions avoided. Lakshmi N. Mittal, Chairman and CEO > Global News Conversation and climate change was involved in establishing, and quarter of 2019, both within customers, investors, other or finance? new set of conversations, both Alan Knight was keen to replicate the model our company and in wider society. stakeholders and, most impor- To these seemingly internally and with policymakers, for mining. This was how I got The subject: climate change and tantly, my colleagues, have been impossible questions, we have whose understanding we need. to know him. His knack for ArcelorMittal’s carbon footprint. seeking to answer the question: found a couple of appropriate The timing of all this is “It is all about conversation.” This transforming complex – and Of course, this conversation Just what should our group-wide answers: impeccable. As we were making was the advice I received from sometimes scary – concepts into has been going for years, and approach to carbon be? 1. We should, of course, support the final edits to our carbon the late Richard Sandbrook, in an simple and compelling messages even before 2019 dawned, the Paris Agreement objectives report, a whole new socio-politi- airport bar, flying home from a UN impressed me. A campaigner at extensive progress had been This led to other debates: of limiting global temperature cal movement, Extinction conference in Cape Town, back in heart, Richard saw the potential made: S-in-Motion, Steligence, 1. How do we demonstrate increase to well below 2 degrees Rebellion, was closing bridges 2004. Most famous for directing of people power to drive change. our Lanzatech pilot, significant empathy with the world leaders’ Celsius, while pursuing efforts to and streets in London. Outspoken the International Institute for He understood that when people energy efficiency improvements ambition on significant carbon limit the increase to 1.5 degrees. climate activist and, arguably, Economic Development (IIED) with different views on the same and much more. reductions? 2. And yes, there are technologies the world’s most famous from 1976 until 1980, Richard issue talked them through, they What was different about the 2. What is the right technology? which can make steel with much 16-year-old, Greta Thunberg, was a strong believer in the could reach their own consensus. conversations had in the opening 3. What can we commit to when less carbon, but targets and was grabbing the front pages positive role business can play As he said, “all you need is a months of this year, discussions different governments have ambitions are hard to commit in Britain for humiliating UK in driving sustainability. He was conversation.” I was privileged to be part of, different ambitions and policies? to without more supportive politicians for not doing enough also a great fan of the FSC, a A powerful conversation was the depth and creativity of 4. What can we commit to in government policies. to address the issue. Campaigns forest certification program I has been happening in the first the thinking behind them. Key the absence of supporting policy Some stakeholders will be can raise awareness but only delighted with this narrative, while conversation creates the some would naturally like us to understanding, policies and commit to more but, importantly, commitments to find a resolution. we have settled on a truth we Richard passed away in 2005 can progress. but his observations on the merits Detailed conversations of conversation were spot on. between strategy, CTO, govern- Conversation is one of the most ment affairs and communications/ powerful agents of change and, CR, have not only unlocked a if done with the right spirit, it more progressive response to can deliver great results. So, let’s climate change, but we have also keep talking! decided to publish those thoughts in our first Climate Action Report.