OECD Special Meeting at High-Level on Steel Issues

Transcription

1 For Official Use SG/STEEL(2005)10 Organisation de Coopération et de Développement Economiques Organisation for Economic Co-operation and Development 11-Jan-2005 English text only DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INDUSTRY SG/STEEL(2005)10 For Official Use OECD Special Meeting at High-Level on Steel Issues REPORT ON THE WORLD STEEL INDUSTRY 2004 Presentation by Mr. Scott Chubbs, International Iron and Steel Institute The Outlook for Steel Conference, organised by the OECD in co-operation with the IISI on January 2005 at the OECD Headquarters in Paris. Wolfgang Hübner, Head of Division of Transport and Steel Unit Tel: Fax: wolfgang.hubner@oecd.org English text only JT Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format

2 The Measure of Our Sustainability Report of the World Steel Industry 2004 Contents Background Summary of Report Communications 2

3 Background 2002 IISI Board approves policy statement on sustainable development 2003 Board agrees to report on 11 sustainability indicators 2004 First sustainability report for the world steel industry prepared by the Sustainability Reporting Project Group Indicator Reporting Reporting by 42 IISI member companies Plus additional 55 of Japan Iron and Steel Federation (JISF) companies for indicators 5 through member companies produce over 33% of world crude steel, covering at least 30 countries on 6 continents Top 5 steel producers included Data based on 2003 fiscal year 3

4 Report Contents Information about the world steel industry Summary indicator results with world average and indication of data quality Stories of companies addressing sustainability in processes and products IISI Policy Statement Vision Steel is valued as a major foundation of a sustainable world. This is achieved by a financially sound industry, taking leadership in environmental, social, and economic sustainability and seeking continuous improvement. 4

5 The 11 Indicators (1/2) Economic 1. Investment in New Processes & Products 2. Operating Margin 3. Return on Capital Employed (ROCE) 4. Value Added The 11 Indicators (2/2) Environmental 5. Greenhouse Gas Emissions 6. Material Efficiency 7. Energy Intensity 8. Steel Recycling 9. Environmental Management Systems (EMS) Social 10. Employee Training 11. Lost Time Injury Frequency Rate 5

6 Indicator 1: Investment in New Processes and Products In 2003 the 42 reporting steel companies invested US$11.4 billion on new processes and products, representing 6% of their total revenue DQI = 93% Companies Reporting = 31 Indicator 2: Operating Margin In 2003, the reporting steel companies earned US$17.0 billion before interest and taxes This resulted in an Operating Income Margin of 8.9% Every US$100 of sales revenue generated US$8.90 in profit before interest and taxes DQI = 93% Companies Reporting = 31 6

7 Indicator 3: Return on Capital Employed In 2003 the reporting steel companies realised 9.5% return on capital employed For every US$100 of capital employed, a profit of US$9.50 was realised DQI = 93% Companies Reporting = 31 Indicator 4: Value Added For the steel companies reporting, economic value added was determined to be 3.2% of total revenue DQI = 95% Companies Reporting = 22 7

8 Indicator 5: Greenhouse Gas Emissions The reporting companies averaged 1.6 tonnes of CO 2 per tonne of crude steel produced Reflects the companies mix of integrated and electric arc furnace production DQI = 92% Companies Reporting = 39 Indicator 6: Material Efficiency In 2003 the steel industry obtained a material efficiency of 96.8% DQI = 93% Companies Reporting = 39 8

9 Indicator 7: Energy Intensity In 2003, an average of 19 gigajoules (GJ) of energy were required to produce a tonne of crude steel for the reporting companies DQI = 93% Companies Reporting = 40 Indicator 8: Steel Recycling IISI statistics on recycled steel consumption amounted to million tonnes in Equivalent to 42.3% of total crude steel produced DQI = 93% Companies Reporting = not applicable 9

10 Indicator 9: Environmental Management Systems In 2003, 85% of all employees and contractors working in steel production facilities worked in registered facilities DQI = 94% Companies Reporting = 39 Indicator 10: Employee Training In 2003 the steel companies reporting provided an average of 6.3 days of training per employee DQI = 95% Companies Reporting = 40 10

11 Indicator 11: Lost Time Injury Frequency Rate In 2003, the reporting steel companies reported a frequency rate of 7.8 lost time injuries per 1,000,000 working hours DQI = 95% Companies Reporting = 40 Automobiles with Steel Steel provides affordable and innovative solutions to help meet the demand for emission reductions, and more stringent safety standards in the automotive industry 11

12 Housing with Steel Steel construction provides high quality manufacturing, pleasing aesthetics, design flexibility, strength, ease of recycling, and compatibility with other building materials Wind Energy with Steel Steel is a critical material necessary for supplying the world with energy Steel provides advantages in wind turbine construction including affordability, strength, and short construction times 12

13 Summary Results (1/2) No. Indicator Indicator Value Units Data Quality Indicator Number of Companies Reporting 1 Investment in new processes and products 6.0 % of Total Revenue 97% 31 2 Operating Margin 8.9 % of Total Revenue 94% 31 3 Return on Capital Employed 9.5 % of Capital Employed 97% 31 4 Value Added 3.2 % of Total Revenue 95% 22 5 Greenhouse Gas Emissions 1.6 tonnes of CO 2 / tonne of crude steel produced 92% 39 6 Material Efficiency 97 % 93% 39 Summary Results (2/2) No. Indicator Indicator Value Units Data Quality Indicator Number of Companies Reporting 7 Energy Intensity 19 GJ / tonne crude steel produced 93% 40 8 Steel Recycling 42 % of crude steel produced 93% na 9 Environmental Management Systems 85 % of Total Employees & Contractors Working in Registered Production Facilities 94% Employee Training 6.3 Training Days / Employee 95% Lost Time Injury Frequency Rate 7.8 Frequency / 1,000,000 Hours Worked 95% 40 13

14 Overall Messages Steel industry is taking a leadership role in sustainability Committed to improving economic, environmental and social performance Committed to measuring progress Specific Messages (1/2) Strong financial performance must continue through the long term to maintain a sustainable industry delivering products valued by society Tremendous progress has been achieved in reducing CO 2 emissions and increasing energy efficiency. Work continues on evolutionary and breakthrough approaches 14

15 Specific Messages (2/2) Steel is the most recycled material and every new steel product contains recycled steel People drive the success of the world steel industry. The industry is committed to providing the necessary educational opportunities and to have safety as a top priority Extra Slides 15

16 Participating Companies (1/2) 1. Acindar Industria Argentina de Aceros S.A. 2. Aichi Steel Corporation 3. Arcelor 4. BlueScope Steel Limited 5. BÖHLER UDDEHOLM AG 6. California Steel Industries, Inc. 7. China Steel Corporation 8. Companhia Siderúrgica de Tubarão (CST) 9. Corus Group plc 10. Daido Steel Co., Ltd. 11. Dillinger Hüttenwerke AG 12. Dofasco Inc. 13. Eregli Demir ve Çelik Fabrikalari TAS (Eregli Iron and Steel Works, Co.) 14. HADEED, an Affiliate of Saudi Basic Industries Corporation (SABIC) 15. IPSCO Inc. 16. Ispat Iscor Limited 17. Iskenderun Iron and Steel Works Co. (ISDEMIR) 18. JFE Steel Corporation 19. Jindal Vijayanagar Steel Ltd. 20. Kobe Steel, Ltd. 21. LNM Holdings NV; Member company of the LNM Group 22. Mitsubishi Steel Mfg. Co. Ltd. Participating Companies (2/2) 23. Nakayama Steel Products Co. Ltd. 24. Nippon Kinzoku Co. Ltd. 25. Nippon Metal Industry Co. Ltd. 26. Nippon Steel Corporation 27. Nippon Yakin Kogyo Co. Ltd. 28. Nisshin Steel Co., Ltd. 29. Osaka Steel Co. Ltd. 30. Outokumpu Oyj 31. POSCO 32. Qatar Steel Company 33. Rashtriya Ispat Nigam Ltd (VIZAG Steel) 34. Rautaruukki Oyj 35. Sanyo Special Steel Co., Ltd. 36. Sumitomo Metal Industries, Ltd. 37. Takasago Tekko K.K. 38. Tata Iron and Steel Co. Ltd. (TISCO) 39. ThyssenKrupp Stahl AG 40. United States Steel Corporation 41. Usinas Siderúrgicas de Minas Gerais S.A. (USIMINAS) 42. Yieh United Steel Corporation (YUSCO) 16