SUSTAINABILITY REPORT
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About the Company
ArcelorMittal Temirtau JSC is part of ArcelorMittal Group and is the largest enterprise in the mining and metal sector of the Republic of Kazakhstan. The Company is an integrated mining and smelting complex with its own coal, iron ore and power facilities. There are two thermal power plants under the management of ArcelorMittal Temirtau JSC, namely PP-2, which is designed to provide heat and electric power to the full cycle steel plant of the Company and Temirtau, as well as the production of chemically demineralised water for the needs of production, and the PP-1, which supplies the plant with blast-furnace air, process steam, electric power and chemically treated water.
The main assets of the Company are located in Karaganda, Ulytau, Kostanay and Akmola regions.
Steel Division
Coal Division
Iron Ore Division
Representative offices of
ArcelorMittal Temirtau JSC
Corporate governance
ArcelorMittal Temirtau JSC improves the corporate governance system based on the world practice of transparent business conduct, standards of business conduct and principles of business ethics. The Company has built an effective management system in all areas of the entity's activities, providing in-depth study of issues that form strategic decision-making.
10 sustainable development outcomes of ArcelorMittal Group are at the centre of the approach to sustainable development management.
The strategy in the area of sustainable development of ArcelorMittal Temirtau JSC is formed within each of the key areas: occupational safety and environment, development of human capital and local communities, and corporate governance. The Company's objectives in the area of sustainable development include ensuring safe working conditions, reducing industrial impact on the environment, training, support and development of our employees, effective and open stakeholder engagement, including government agencies, public organisations, etc.
Alignment of the United Nations Sustainable Development Goals with 10 Sustainable Development Outcomes of ArcelorMittal Group
Health and safety
In its activities, ArcelorMittal Temirtau JSC is guided by the Occupational Health and Safety Policy adopted at the level of the ArcelorMittal Group, which was updated in October 2022. The Occupational Health and Safety Management System of the Company is regulated by the legislation of the Republic of Kazakhstan and the requirements of the international standard in the area of occupational health and safety ISO 45001.
Work is being carried out on an ongoing basis to identify, assess and eliminate risks at production sites: memos have been developed; unaccounted risks are being identified during audits of production sites.
The Company complies with legal requirements within the framework of the organisation of compulsory training of employees with established frequency in the courses: occupational health and safety at the enterprise, industrial safety at hazardous production facilities, and basic fire safety. In addition, supplementary trainings are conducted in occupational health and safety using the best world practices, simulators and training stands, involving professional instructors.
Indicators of work-related injuries among employees of the Company
| Indicator | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total number of injuries, including | 35 | 49 | 51 |
| lost time injuries | 32 | 38 | 40 |
| fatal | 3 | 11 | 11 |
| Actual number of man-hours worked, million man-hours | 45.71 | 45.02 | 48.87 |
| Lost Time Injury Frequency Rate (LTIFR) per 1 million man-hours | 0.77 | 1.09 | 1.04 |
| Fatal Injury Rate (FAR) per 1 million man-hours | 0.07 | 0.24 | 0.23 |
Climate change and greenhouse gas emissions
During the reporting year, ArcelorMittal Temirtau JSC completed a number of projects for the modernisation and repair of technological equipment, and also started construction of two new coke-oven batteries with modern gas-handling equipment. In addition to the measures taken, the Company is also exploring alternative ways to reduce greenhouse gas emissions into the atmosphere, including the use of renewable energy sources. ArcelorMittal Temirtau JSC strictly complies with the requirements of environmental legislation in terms of greenhouse gas emissions, drafts all necessary documentation and does not exceed the allocated number of quotas for greenhouse gas emissions.
Total direct greenhouse gas emissions by ArcelorMittal Temirtau JSC for the reporting year amounted to 18.5 million tons CO2e.
Direct greenhouse gas emissions, million tons CO2E:
| Division | 2020 | 2021 | 2022 |
|---|---|---|---|
| Steel Division | 15.08 | 14.87 | 12.89 |
| Coal Division | 6.81 | 5.56 | 5.58 |
| Iron Ore Division | 0.02 | 0.02 | 0.01 |
| Total by the Company | 21.91 | 20.45 | 18.49 |
Energy consumption and energy efficiency
The total energy consumption by the Company for the reporting year amounted to 90,813 thousand GJ.
Total energy consumption for 2022, %
Environment
ArcelorMittal Temirtau JSC consistently strives to achieve the main goal of its Environmental Policy, i.e., the constant reduction and prevention of negative impacts of production processes on the environment. During the reporting year, the Company implemented a number of activities within the framework of the Environmental Fund, carried out works according to the Roadmap for the comprehensive solution of environmental problems of the Karaganda region. The total costs for environmental protection in 2022 amounted to KZT 17.2 billion.
ArcelorMittal Temirtau JSC is implementing a large-scale environmental project for landscaping the territories around Temirtau and within the city. In 2022, saplings of pinnately branched elm and ash-leaved maple were planted on the developed 102 hectares around the city. The total area of planting within the framework of the landscaping project is 360 hectares, of which 344 hectares are around Temirtau and 16 hectares are within the city limits.
The Company's costs for environmental protection for 2022, %
Customer reassurance and product innovation
The approach of ArcelorMittal Temirtau JSC to supply chain management is aimed at maintaining high quality standards, ethical behaviour, environmental and social standards by its suppliers. The Company undertakes to produce first-class products, and for this purpose a whole system of measures developed by the Company's specialists based on new world technologies is being implemented.
By purchasing goods from domestic producers, ArcelorMittal Temirtau JSC makes a significant contribution to business development in the regions of the Company's presence and in the Republic of Kazakhstan as a whole. The actual share of in-country value for all divisions exceeds the planned indicators for the country.
Purchases from local suppliers for 2022, KZT 607.3 billion, %
Social
ArcelorMittal Temirtau JSC, being a large enterprise, provides employment to more than 31 thousand people in the country, providing not only stable wages, but also social support to employees and their families. As of 31 December 2022, there were 31,042 employees in the Company. The average salary of employees in 2022 increased by 20-30%.
In order to take care of employees, ArcelorMittal Temirtau JSC provides vouchers for sanatoriums and rest houses, as well as annually organises holidays for children of employees in summer recreation camps. The Company regularly implements programs of health protection measures to improve working conditions at workplaces, provides health centres with the necessary facilities and equipment.
In 2022, more than 120 million tenge were invested in STEM projects, the number of beneficiaries amounted to more than 4,600 persons (including STEM laboratories for schoolchildren in Abay). As part of implementation of STEM corporate responsibility program in 2022, students of universities, professional and technical colleges completed practical training in ArcelorMittal Temirtau JSC divisions: 881 students in the Steel Division, 400 students in the Coal Division, 139 students in the Iron Ore Division, including more than 400 students from 7 colleges in the dual form of education.
ArcelorMittal Temirtau JSC provides financial support for projects for improvement and development of infrastructure in the regions of the Company's presence, support for educational, medical, cultural and sports institutions, as well as provides charitable and sponsorship assistance in cash or in kind to war and labour veterans, people with disabilities, orphanages and socially vulnerable groups of the population. The amount of 2.6 billion tenge was allocated for social projects for the reporting year in 2022.
Types of social support for employees in 2022, KZT 42.80 billion, %
