Made for life Sustainability Report 2019 External Assurance We declare this report in accordance with GRI core level. Independent assurance statement Material aspects and indicators are shown on p. 8 of this report. Detailed Disclosures on Management Approach (DMA) are in the online supplement ‘C’. The scope of the information and data in this report Deloitte Audit Société à responsabilité limitée issued and covers global operations from January to December 2019. unmodified limited assurance report using ISEA 3000 limited assurance with respect to the Report on the following subject Aperam’s production capacity is focused on: > 6 production sites in Brazil (Timóteo), Belgium (Châtelet, Genk), and France (Gueugnon, Imphy, matters: adherence to the Global Reporting Initiative "GRI Isbergues/Recyco). Standard" guidelines with respect to the Principles of Materiality, > 14 Steel Service Centres (SSC) from our Service & Solutions segment. Stakeholders Inclusiveness, Sustainability context and > 12 transformation facilities: 5 in Service & Solutions segment; Pont de Roide and BioEnergia from Completeness, the adherence of the disclosure in the Report to Stainless & Electrical Steel segment; Rescal, Amilly, Imhua and ICS from Alloys & Specialties. > 16 sales offices: 10 for Service & Solutions segment and 6 from Alloys & Specialties. the GRI Standard "In Accordance Core" criteria and the > Registered office: 12C. rue Guillaume J. Kroll, L-1882 Luxembourg. appropriateness of the GRI Index on pages 68 and 69 of the Report and the fair presentation in all material aspects in Safety data cover Stainless & Electrical Steel, Services & Solutions and Alloys & Specialties divisions, accordance with GRI Standard Guidelines, of selected as well as on-site contractors. Human resources data exclude contractors. Subject to the exclusions indicated below, environmental data covers all main industrial sites, SSCs performance indicators, marked with a "*" in the Report: and corporate offices. Environmental information is compiled locally and aggregated centrally. In our greenhouse gas – GRI 302-3: Energy intensity (pages 28 and 30), emissions calculation we apply ISO 14404-1 and ISO 14404-2 standards, which state that biomass is – GRI 303-3: Water withdrawn by source (pages 28 and 35), considered to be carbon neutral. The CO2 emissions data relate to Scopes 1 and 2. – GRI 305-4: GHG emissions intensity (pages 28 and 29), The following exclusions apply to the environmental data: – GRI 305-7: Nitrogen oxides (NOx), sulfur oxides (SOx), and (1) Raw material data exclude packaging and miscellaneous parts; (2) Scope 3 indirect emissions. other significant air emissions (dust only - pages 28 and 34), – GRI 403-9: Work related injuries ( LTIFR and Severity Rate The report represents our Communication on Progress relating to UNGC membership (see Online only - pages 11 and 12). Supplement ‘A’). Forward-Looking Statements This document may contain forward-looking information and statements about Aperam and its subsidiaries. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,” “target” or similar expressions. Although Aperam’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Aperam’s securities are cautioned that forward-looking information and statements are subject to numerous risks and uncertainties, many of which are difficult to predict and generally beyond the control of Aperam, that could cause actual results and developments to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in Aperam’s filings with the Luxembourg Stock Market Authority for the Financial Markets (Commission de Surveillance du Secteur Financier). Aperam undertakes no obligation to publicly update its forward-looking statements or information, whether as a result of new information, future events, or otherwise. In particular, the length and severity of the recent COVID-19 (coronavirus) outbreak, including its impacts in the sector, macroeconomic conditions and in Aperam's principal local markets may cause our actual results to be materially different than those expressed in our forward-looking statements. 1 Contents About Aperam Opening words From our Chief Executive Officer Company profile A global leader in Stainless and Specialty Steel serving multiple markets Sustainability strategy How Aperam’s roadmap and reporting comply with GRI principles Social: Our People With safety as our top priority, Aperam aims to be a sustainable and profitable company with our efficient and passionate workforce as our main asset. > See how our approach ensures the safety, development and well-being of our people. Environment: Our Planet As part of an energy-intensive industry consuming metallic ores and other raw materials, Aperam takes environmental stewardship seriously. That is why we set ambitious 2030 objectives, as well as a target of becoming carbon neutral by 2050. > Read about the many ways we are becoming a more sustainable company by reducing our industrial footprint and working to raise awareness about the important environmental issues. Governance: Our Stakeholders From the support of our subcontractors who assist our teams to the strong partnerships built with our suppliers and customers and up to local infrastructures - our success is dependent on the communities we operate in. Our Corporate Governance is based on the highest standards and complies with the most rigorous business ethics. In 2019, we took our commitment to stakeholder engagement even further by joining the ResponsibleSteel TM initiative. > See how we continually strive to develop in a way that benefits the public at large. About this report GRI Index Country Supplements - For stakeholders and available in the local languages of our three main countries of operation (Belgium, Brazil, France). Methodology Supplements - United Nations’ Global Compact reference; Materiality Process at Aperam; GRI Index and Disclosures on Management Approach. 2 About Aperam Opening Words from our CEO Starting with our People and their Health & Safety, which is our first priority, our report covers our actions on all three of these pillars, with clear progress already visible in such fields as learning, diversity and employee engagement. However, in light of the current pandemic, I want to focus on our environmental challenges so that this key area will not be neglected or postponed when the emergency ends. But first, a short word about Safety. Although better than the industry standard, our 2019 frequency rate was up and we again missed our objective of having zero accidents. However, our entire organisation is working to address this issue. Furthermore, a look at the Severity and Total Injury rates proves that Aperam is on the right track, enhancing our safety culture and ensuring a sustainable improvement to the safety of our employees. Aperam’s environmental performance is one of its strengths - albeit one that is not yet sufficiently recognized as a competitive advantage. ■■■ To start, our Carbon footprint is simply the best in our industry. It is based on sustainable practices that have a very high social and environmental value: The Covid-19 pandemic is a challenge like none other. In addition to the healthcare > In Brazil, BioEnergia, our responsibly-managed eucalyptus forestry, not only and biodiversity challenges, it has also put the spotlight on such essential issues as provides us with a charcoal replacement for coke, it is also a key local employer the value of human life, freedom, and solidarity. It is forcing us to re-evaluate the and, through our Foundation, an influential social actor. Thanks to the use of such type of society we want to live in and has us questioning how globalisation, state-of-the-art farming and production processes as genetic selection of seedlings, individuals, companies and governments can help us build this better society. drone inspections and insect-based pest control, BioEnergia also protects water Within this framework, our annual Sustainability Report is more meaningful than resources and biodiversity. ever. It highlights how, thanks to our strong values and versatile, affordable and > We are also a crucial player in the circular economy and aim to be a zero 100% recyclable products, Aperam is well-positioned to answer any challenge and waste (for landfill) company. In Europe, our furnaces have maximised their use of creates real social value. And we know that by relying on our Sustainability locally supplied scrap, thereby reducing the need to transport extractive raw Roadmap, based on the three pillars of our Social, Environmental and Societal materials from long distances. Our meltshops can absorb metallurgic dust, cans or responsibility, we will maintain our position as a fair and sustainable company. tires. In addition, our Recyco unit is helping steel companies to leverage the metallic content from such by-products as dust or mud, transforming what was once waste 3 into a valuable input. Not only do these initiatives reduce the final product's CO2 compared equitably with