2018 SUSTAINABILITY UPDATE
Shaping Sustainability Founded in 1993, Steel Dynamics is one of the largest and most diversified domestic steel producers and metals recyclers in the United States, combined with a downstream steel manufacturing platform. Steel Dynamics had a focus toward sustainability since our inception, valuing our teams, partners and communities while producing steel using electric arc furnace technology utilizing recycled ferrous scrap as the primary raw material, which has a much lower environmental impact than traditional technologies.
Safety | Culture | Customer Commitment | Growth | Innovation | Financial Strength
STEEL DYNAMICS INC.
2018 STEEL DYNAMICS | SUSTAINABILITY UPDATE
2018 Sustainability
Update
1.1
BILLION POUNDS
IN 2019 WE REINTRODUCED 1.1 BILLION POUNDS OF RECYCLED NONFERROUS SCRAP INTO THE
Since our inception we have continuously innovated, further strengthening our company, becoming vertically connected with a looped manufacturing life cycle. Our metals recycling platform collects and processes industrial scrap from manufacturers and obsolete scrap derived from end-of-life items, such as automobiles, appliances and machinery. This processed scrap is then sold to end users, including our electric arc furnace steel mills. Our steel mills utilize recycled ferrous scrap as their primary raw material input to produce new steel. Our steel is then sold internally to our steel manufacturing operations and to external steel customers.
MANUFACTURING LIFE CYCLE
11
MILLION TONS IN 2019 WE REINTRODUCED 11 MILLION TONS OF RECYCLED FERROUS SCRAP INTO THE MANUFACTURING LIFE CYCLE
About Our Update This update was developed to provide 2018 and where readily available 2019 data for some of the metrics presented in our 2017 Sustainability Report. This data was compiled using the same methodology as our 2017 Sustainability Report, which referenced the Global Reporting Initiative Sustainability Reporting Standards (GRI Standards).
2018 STEEL DYNAMICS | SUSTAINABILITY UPDATE
Safety is our number one value At Steel Dynamics, valuing people includes providing a safe work environment and creating a culture of safety that extends beyond work, to our homes and communities. Safety is and always will be our primary focus and a core value. Our goal is to achieve zero incidents—no accidents, no lost workdays, no injuries. This is achievable when we all work together.
Our Numbers
During 2019, each of our platforms performed substantially better than industry benchmarks.
2019 Platform Total Recordable Injury Rate1 STEEL DYNAMICS
INDUSTRY AVERAGE2
Total Recordable Injury Rate1
Steel
1.4 2.7
Steel Fabrication
2.4 5.0
Metals Recycling
2.7 5.1
Lost Time Injury Rate1
Severity Rate1
0.66
24.9
2.3 1.8
1.8
1.9
0.34
1.5
0.33
14.2
0.33
10.9
10.4 9.4
0.25 2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
¹ Total Recordable Injury Rate is defined as OSHA recordable incidents x 200,000 / hours worked, Lost Time Injury Rate is defined as OSHA days away from work cases x 200,000 / hours worked, and Severity Rate is defined as OSHA days away from work x 200,000 / hours worked. ² Source: 2018 U.S. DOL Bureau of Labor Statistics
2015
2016
2017
2018
2019
2018 STEEL DYNAMICS | SUSTAINABILITY UPDATE
Community We strongly believe in making a positive economic and social impact in the communities where we work and live, through supporting organizations in which our teams are involved, and by empowering and encouraging volunteering and leadership at each of our locations.
$16M
STEEL DYNAMICS FOUNDATION, INC. DISTRIBUTIONS OVER THE LAST 10 YEARS
$19M
ADDITIONAL STEEL DYNAMICS, INC. COMPANYWIDE CHARITABLE CONTRIBUTIONS OVER THE LAST 10 YEARS
Environment At Steel Dynamics, we recognize the importance of being good stewards of our environment and the communities where we work and live. We continually evaluate opportunities to improve our processes, equipment and technology to reduce our physical impact on the environment. To us, it’s more than simply meeting applicable requirements, but going beyond with a commitment to higher environmental standards. Our Butler Flat Roll Division and Columbus Flat Roll Division’s environmental management systems are certified with the International Organization for Standardization 14001. These facilities represent over 65% of our steel mill tons produced in 2019.
Each of our steel mills has an environmental engineering group focused on regulatory compliance, and our employees are trained on how to properly handle waste streams and engage in responsible environmental practices. Being environmentally conscious is part of our culture. We see ourselves as members of the communities in which we do business. Every day, our employees take the initiative to protect the environment, simply because it’s the right thing to do. Our production process utilizes electric arc furnace (EAF) steelmaking technology which has revolutionized the way steel is made and recycled, requiring the use of far fewer natural resources and consuming significantly less energy than traditional blast furnace technology, resulting in lower levels of air emissions and much less environmental impact.
In 2018
83%
of the material used in our EAFs to produce steel was recycled ferrous scrap and internally generated iron substitutes, requiring far fewer natural resources than blast furnace technology
77%
of our recycled ferrous scrap needs are sourced within 250 miles of our steel mill locations, minimizing the amount of energy expended on transportation
2018 STEEL DYNAMICS | SUSTAINABILITY UPDATE
Environment Energy Our energy intensity1 improved by 3% during 2018. For melting and casting steel, our energy intensity for our six EAF steel mills is only approximately 11% of the World Steel Association average energy intensity.
Energy Intensity1 2015
1,148
2016
1,140
2017
1,117
2018
1,081
Water
99%
Reused
We continued our efficient use of water resources by reusing over 99% of our total system water demand in 2018.
Emissions Our greenhouse gas emissions intensity2 remained low in 2018 compared to the World Steel Association average. Our EAF technology produces steel with substantially fewer emissions than traditional blast furnace technology. Our CO2 emissions from our six EAF steel mills are only approximately 13% of the World Steel Association average CO2 emissions.
Greenhouse Gas Emission Intensity2 2015
0.24
2016
0.24
2017
0.21
2018
0.21
REDUCED IN 2018 BY
2018 Other Emissions
NOx 0.38 5%
(pounds/liquid steel ton)
SO2 0.22 3% PM 0.13 18%
Waste We continually look for ways to minimize waste generation. We continue to monitor all waste streams and look for ways to improve our recycling and reuse. To minimize disposal of other byproducts of the manufacturing process, we assess what materials are considered reusable and redirect those materials to be recycled versus being sent to landfills.
¹ KWH / ton of steel produced ² Metric tons of Scope 1 CO2 emissions / cast steel tons
OF MILL SCALE RECYCLED DURING 2018, 99% RATHER THAN LANDFILLED OF EAF DUST RECYCLED DURING 2018, 99% RATHER THAN LANDFILLED