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SSAB Sustainability strategy 2020
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SSAB Sustainability strategy 2020 - SSAB high-strength steel

Oct 16, 2021

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Page 1: SSAB Sustainability strategy 2020 - SSAB high-strength steel

SSAB Sustainability strategy 2020

Page 2: SSAB Sustainability strategy 2020 - SSAB high-strength steel

A stronger,lighter and moresustainable world

Together with our customers,we will go further than anyoneelse in realizing the full potentialof lighter, stronger and moredurable steel production

Page 3: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Steel is part of the solution

► Critical for society and new infrastructure

► Unique material and available everywhere

► 100% recyclable withoutloss of quality

COMMUNICATION ENERGY

TRANSPORTINFRASTRUCTURE

Page 4: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Steel consumption has doubled over the last 20 years

► Increased standard of living

► Urbanization and infrastructure

► Transportation and production

Source: worldsteel Short Range Outlook March 2018

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World World excl China China

Steel consumptionMtonne

Page 5: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Steel is the most circular material in the world

050

100150200250300350400450500550600650

Mass of materials recycled globally

Mill

ion

met

ric

ton

nes

► More steel is recycled than all other materials combined

− 100% recyclable indefinitely

− Without loss of quality

− Recycling rate above 85% worldwide

► Steel is used everywhere

− Steel is critical when building society and infrastructure

Page 6: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Recycling will not be enough– 50% iron ore-based steel will still be needed by 2050

20502016

2800 Mtonnes steel1600 Mtonnes steel

Recycledmetal

Iron ore Recycledmetal

Iron ore

Page 7: SSAB Sustainability strategy 2020 - SSAB high-strength steel

New sustainability strategy With the Future in Mind

Page 8: SSAB Sustainability strategy 2020 - SSAB high-strength steel

New sustainability strategy With the Future in Mind

Page 9: SSAB Sustainability strategy 2020 - SSAB high-strength steel

SSAB to become fossil free 2 clear objectives

SSAB to introduce fossil-free steel in the market in 2026

− Launch of a premium product without fossil CO2 footprint

− This means no fossil CO2 emissions when producing this product, and a requirement to use fossil-free sponge iron

1

2SSAB to have leading sustainability performance; fossil free by 2045

− To be fossil free within the entire operation by 2045, by stepwise reducing CO2 footprint

− This means net zero CO2 emissions from our own operations and purchased energy

Page 10: SSAB Sustainability strategy 2020 - SSAB high-strength steel

First in fossil-free steel

► Use better steel

− Reduce your footprint with low CO2 steel

► Use steel better

− SSAB steel makes products lighter and stronger

− Reduce CO2 emissions in the use phase

► Go fossil free

− Be part of a fossil-free value chain

− Be the first to offer fossil-free products

Page 11: SSAB Sustainability strategy 2020 - SSAB high-strength steel

SSAB’s blast furnace-based production is among the most CO2 efficient in the world. This gives a competitive advantage to SSAB and our customers.

Compared to Chinese steel mills, SSAB steel saves on average

1 600 000 tonnes of CO2 every year

This means that a German customer would generate

21% higher CO2 emissions, including transportation, when using steel from an average Chinese steel mill

+

Use better steelReduce your footprint with low CO2 steel

Source: thinkstep, BF GWP benchmarking, 2019, and SSAB EPD data

100 100106

101

126

113117 115

126 127

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Cold rolled Hot rolled

The

ind

exed

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Ton

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Page 12: SSAB Sustainability strategy 2020 - SSAB high-strength steel

► Environmental Product Declarations validate sustainable production

− SSAB issued new EPDs 2020

− Supporting Life Cycle Analyses

► EcoSmart communicates sustainability

− Emphasizing both key product and process attributes to steel

− Steel made from 97% recycled materials

► Innovative technology, e. g.GreenCoat Bio-based coatings

− A unique, patented sustainable building product

− Using Bio-based Technology (BT) coating made with rapeseed oil

+

Use better steelReduce your footprint with low CO2 steel

Page 13: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Use steel betterSSAB steel makes products stronger, lighter and increases productivity

High-strength steels make the world’s highest skylift possible

High-strength steels move the roof of Friends’ Arena

High-strength steels save 30 tonnes of CO2 for Mantella

A 112-meter-high skylift needs be strong and lightweight. In the top section, Bronto uses steel just 3 mm thick, making it light enough to be put on a regular truck.

The opening roof of the Swedish national arena needs to be light and strong. With high-strength steels the weight was reduced by 21% and CO2 emissions cut by 900 tonnes.

High-strength steels made this trailer shed over half a tonne of weight. The increased productivity saves 12,000 liters of fuel and 30 tonnes of CO2 during 12 years of operation.

+

Page 14: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Use steel betterReduce CO2 emissions in the use phase

► High-strengths steels give customer CO2 savings

− Steel is used in equipment with significant fuel consumption

− SSAB steels make products lighter and more productive

− The SSAB EcoUpgraded concept quantifies CO2 and financial savings

► High-strength steels are key in reducing vehicle weight and energy consumption

− Without compromising safety

► In emission-free vehicles materials have the largest environmental impact

− High-strength steels have lower environmentalfootprint than magnesium, carbon fiber or aluminum

+

Page 15: SSAB Sustainability strategy 2020 - SSAB high-strength steel

LKAB will reduce energy consumption and CO2

emissions to reach a positive CO2 balance by 2045

Vattenfall's goal is that both the company and its customers will be completely fossil-free within one generation

SSAB will reduce CO2 emissions by closing blast furnaces and use HYBRIT technology, becoming a fossil-free company by 2045

Fossil-free steel

SSAB customers using fossil-free steel, aiming for carbon-neutrality, starting 2026

+ + =Fossil-free mining Fossil-free electricity Fossil-free value chain

+

Go fossil freeBe the first to offer fossil-free products

Page 16: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Hybrit – Fossil-free steelmaking

2016-2017 Pre-feasibility Study 2018-2024 Feasibility Study Pilot plant trials 2025-2035 Demonstration Plant Trials

BLAST FURNACE DIRECT REDUCTION

HYBRIT would eliminate ~90% of SSAB’s total CO2 emissions

Page 17: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Go fossil freeBe the first to offer fossil-free products

►We aim to have fossil-free steel products on the market in 2026

− Using HYBRIT technology

− With selected customer partnerships

2026

Pilot phase

Demo phase

Initiate partnerships

Oxelösund electric arc furnace

Order books open

202520242023202220212020TIMELINE

+

Page 18: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Better and fossil-free steel

Target KPI Target 2020-21

Target 2022

Target 2026

Target 2030 Target 2040 Target 2045

Lower energy consumption/Higher productivity for customers

Mtonnes customer CO2 savings 1)

10

First in fossil-free steel

Fossil-free steel milestones Pilot plant to open

Iowa operations in USpowered 100%by renewable energy

Fossil-freesteel to customers 2026 -Delivered on commercial terms

Raahe conversion starting

Luleåconversion starting

SSAB fossil-free

1) The 2020 target has been moved to 2021 due to the Corona crisis New target from 2022 onwards will be set during 2021.

+

Page 19: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Leading sustainabilityperformance

► Safety first

− The world’s safest steel company

− We care for each other

► Efficiency & Responsibility

− Resource efficient operations

− Responsible sourcing

► Respect & integrity

− Zero tolerance for bribery and corruption

− We are diverse and inclusive

Page 20: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Safety firstBecoming the world’s safest steel company

FOUR BUILDING BLOCKS OF SAFETY

Safety culture and leadership

Occupational safety management

Occupational health management

Process safety management

Page 21: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Safety firstBecoming the world’s safest steel company

► Focus on preventative work

− Learn from each other and share best practices

− Required training for all

− Risk identification, assessment, evaluation and removal processes

► Never walk by

− Personal responsibility to work in a safe manner every day

− Managers lead by example

− All work is performed safely or otherwise discontinued

► World class process safety

− Find out what can go wrong

− Find out what protects us from anything going wrong

− Ensure measures are effective, implemented and working properly

Zero accidents, work-related injuries or illnesses

Page 22: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Safety firstBecoming the world’s safest steel company

Targets KPI 2019 Target 2020

Target 2021

Target 2023 Target 2025

Eliminate fatalities and serious incidents

Number of fatalities (incl. contractors) 0 0 0 0 0

Number of serious incidents 226 204 188 144 115

Reduce injuries and their severity

LTIF 4.2 4.0 3.4 2.0 <1.5

TRIF 12.4 11.9 9.2 6.2 <5.0

LTI severity rate (the number of absence days as R12 months cumulative).

37 16 14 10

Eliminate major process safety incidents

Number of major process safety incidents

149 118 22 20 18

Safety leadership Number of safety rounds 45 800 50 500 52 800 59 900 68 600

Number of risk observations 22 800 24 400 25 900 30 100 35 300

Number of near misses prevented 11 400 12 400 12 800 15 000 17 400

Page 23: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Efficiency & ResponsibilityCircularity

► Internal recirculation

− Materials are recycled back into the steelmaking process, which reduces the need for virgin raw materials

− Landfill waste minimization

► Utilizing by-products

− Steel production gives rise to a range of by-products, which can be sold to or used by other industries

► Energy recovery

− Used for district heating on all major sites

Our materials are used in:

• Iron- and steelmaking

• Road construction

• Cement industry

• Car batteries

• Freezer door closing systems

• Cars (permanent magnets)

• Water purification chemicals

• Insulations

• Car tires

• Farmland

• Building bricks

• Papermaking

+

Page 24: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Efficiency & ResponsibilityMinimizing environmental impact

► Efficient use of raw materials and energy

− Improving energy efficiency to reducethe amount of energy needed

− Optimizing logistics and improved fuel economy, driving routes, load carrier capacity

► Air emissions reductions (other than CO2)

− Nitrogen oxides, sulphur oxides, particulate matter, etc.

► Water effluents

− Preventing the risk of contaminating water resources and reducing effluent discharge

+

Page 25: SSAB Sustainability strategy 2020 - SSAB high-strength steel

► Greenhouse gas emissions (CO2e)

− SSAB commits to reducing absolute Scope 1&2 emissions 35% by 2032 from a 2018 base-year

− Science Based Target initiative (SBTi) approved CO2 reduction target for target year 2032

Scope 1&2 CO2e emissions 2022 2025 2026 2030 2031 2032

CO2e reduction million tonnes -0.5 -1.2 -1.8 -3.1 -4.0 -4.1

SBTi Target – reduction in % 4% 10% 15% 26% 34% 35%

Iowa operations in USpowered 100%by renewable energy

50% use of EAFin Oxelösund

100% use of EAFin Oxelösund

25% use of EAFin Raahe

50% use of EAFin Raahe

+

Efficiency & ResponsibilityResource efficient operation

Page 26: SSAB Sustainability strategy 2020 - SSAB high-strength steel

► Circularity (In the Nordic production system)

− Use of scrap/H-DRI (home scrap, purchased scrap and H-DRI replacing BF route iron ore pellets)

− Slag utilization (BF, BOF and EAF slag)

► Minimizing environmental impact

− In addition to the material environmental aspects addressed in the SSAB Group target setting, a wider range of aspects are addressed at the division and site levels

Targets 2025 2026 2030 2031 2032

Use of scrap/H-DRI 29% 39% 46% 54% 54%

Slag utilization 100% 100% 105% 107% 107%

+

Efficiency & ResponsibilityResource efficient operation

Page 27: SSAB Sustainability strategy 2020 - SSAB high-strength steel

To ensure that we collaborate with suppliers who share the sustainability values described in SSAB´s Supplier Sustainability Policy

► Follow-up & corrective actions

- On site visits and third party audits as outlined in the annual sustainability audit plan

- Follow up on KPI:s

► Supplier onboarding

- Contracts and purchase orders refer to the Supplier Sustainability Policy

► Risk assessment

- Commodity managers trained in responsible sourcing

- Assessments based on risk indices for human rights, political and environmental risks

- Identified suppliers complete self-assessment questionnaire on their commitment to labor and human rights, health and safety, anti-corruption and the environment

Efficiency & ResponsibilityResponsible sourcing

Page 28: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Targets KPI Target 2020

Target 2021

Target 2025

Target 2030

Target 2045

Sustainable supplier base Share of new suppliers sustainability assessed (GRI 414-1)

100 % 100 % 100 % 100 % 100 %

Share of total spend sustainability assessed (categorized/identified and self-assesment done)

93 % 96 % 98 % 100 % 100 %

Number of second (third) party sustainability audits and on-site visits including social and environmental performance of suppliers 1)

27 37 -- -- --

Share of high-risk raw material suppliers sustainability audited 2)

90 % 100 % 100 %

Reduced CO2e footprint from the supply chain

Reduced Scope 3 CO2e emissions from the supplychain

Targets to be defined

1) Previously reported separately. Target 2021 is 7 second (third) party audits and 30 on-site visits

2) Based on Verisk Maplecroft´s risk indices for human rights, political and environmental risks and Transparency International´s Corruption Perceptions index

Efficiency & ResponsibilityResponsible sourcing

Page 29: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Respect & IntegrityZero tolerance for bribery and corruption

The Code of Conduct is the way we act. It forms the basis for our ethical, environmental and social responsibility

Tone from the top is clearly communicated. All employees must take an e-learning in business ethics

Code of conduct Anti-corruption Ethics Line

Global whistleblower (Ethics Line) available online or by calling a global hotline, open 24/7

Allowing employees to raise concerns anonymously

SSAB has zero tolerance for bribery and corruption

Clear instructions guide us in our daily operations and how we act in relation to business partners

Page 30: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Respect & IntegrityZero tolerance for bribery and corruption

Targets KPI Actual 2019

Target 2020

Target 2021

Target 2025

Target 2030

Target 2045

Ensure ethical conduct in line with SSAB´s corporate culture and increase knowledge about the Code of Conduct and Ethics Line

All employees have completed the e-learning in business ethics; including training on our Code of Conduct

91% 92% 95% 100%* 100 %* 100%*

Share of new employees covered by the onboarding process; including signing the Code of Conduct statement and e-learning in business ethics

72% 75% 80% 100%* 100%* 100%*

Share of employees who have access to the Ethics Line* *

95% 95% 95% 95% 95% 95%

*Because of employee turnover, 100 % may in practice never be reached**Employees that do not have access to the Ethics Line have other local reporting channels

Page 31: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Respect & IntegrityWe are inclusive and diverse

We strive for inclusion to ensure the full and equal participation of everyone across the full spectrum of diversity within the organization.

At SSAB, we expect our leaders to continuously strive to create an inclusive workplace and build a diverse workforce – for the good of our culture, increased engagement and to drive our overall performance and results as a high-performing organization.

For us, a diverse workforce provides a wide range of abilities, competences and experience. Diversity means heterogeneity of our workforce including age, gender, race, ethnicity, physical abilities, political and religious beliefs, and other attributes.

Page 32: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Respect & IntegrityWe are inclusive and diverse

Workforce

Develop an inclusive and innovative workplace

Attract, hire and promote a diverse workforce for the future

Focus areas- Equal career opportunities - Hiring practices with broader

outreach for searching candidates

- Transparent internal recruiting processes

Be a responsible partner and enhance our reputation as a company and employer

Focus areas- Partnerships with key schools- Employer branding- Relevant Inclusion & Diversity

initiatives locally

Focus areas - Working with SSAB One to create

involvement and engagement- Trainings on inclusion, diversity

and non-discrimination- Mentoring programs and

networks

Workplace Community

Page 33: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Respect & IntegrityWe are inclusive and diverse

Target KPI Target 2020 Target 2022 Target 2025 Target 2030 Target 2045

Diversity & Inclusion Women in top management positions, % 32 35 37

Page 34: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Materiality analysis 2019Prioritized aspects

4a 5a5b

1

6b 7

2b

4b

8b

Significance to SSAB

Sign

ific

ance

to s

take

ho

lder

sV

ery

Imp

ort

ant

Imp

ort

ant

Important Very important

1a Lower energy consumption/Higher productivity for customers

2b First in fossil-free steel/Eco-labeling

4a GHG emissions (CO2e)

4b Circularity (Residuals/by-products)

5a Occupational Health & Safety

5b Process safety

6b Business ethics

7 Responsible sourcing

8b Diversity and Inclusion

Page 35: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Materiality analysis 2019Prioritized aspects

4a 5a5b

1

6b 7

2b

4b

8b

Significance to SSAB

Sign

ific

ance

to s

take

ho

lder

sV

ery

Imp

ort

ant

Imp

ort

ant

Important Very important

1a Lower energy consumtion/Higher productivity for customers

1b Longer service life for customers’ products

1c Lower weights of customers’ products

1d Less steel used in customers’ products

2a Lifecycle perspective

2b First in fossil-free steel/Eco-labelling

2c Reporting

3a Efficient use of energy

3b Efficient use of raw materials

3c Efficient water management

3d Use of high quality raw materials

4a GHG emissions (CO2e)

4b Circularity (Residuals/by-products)

4c Air emissions

4d Impact on local environment

4e Water effluents

4f Emissions from transportations

4g Biodiversity

5a Occupational Health & Safety

5b Process safety

6a Business ethics

6b Human Rights compliance

6c Whistle blower system

7a Responsible sourcing

7b Pro-active work against corruption in supply chain

7c Health and safety in the supply chain

7d Environment

7e Supplier sustainability audits

7f Supplier screening

8b Diversity & Inclusion

8c Employee engagement

8d Retention and employer attractiveness

8e Strong company culture, leadership practices

9 Strategic approach to community engagement

9b Local engagement in communities

9c Group wide charitable initiatives

9d Philanthropic donations

Bold => in dark blue square => prioritized

Page 36: SSAB Sustainability strategy 2020 - SSAB high-strength steel

Tuesday, February 2, 2021 First Last name36PUBLIC