CONTENTS | ||
4
|
16. Ternium at a Glance
18. Delivering Our Business Strategy
30. Leading the Development of the Mexican Steel Industry
32. Economic & Financial Performance
| |
14 | ||
CHAIRMAN'S LETTER | THE COMPANY | |
8
| ||
OUR SUSTAINABILITY JOURNEY | ||
12. Ternium's Approach to Climate Change
| ||
36 | 130 | |
ESG: ENVIRONMENTAL_SOCIAL_GOVERNANCE | ANNEXES | |
38. Addressing Climate Challenges: Strategies for a Sustainable Future
52. Minimizing Our Environmental Footprint
64. Improving Our Safety Performance
80. Realizing Our People's Full Potential
92. Helping Our Communities Thrive
108. Strengthening Our Value Chain
118. Commitment to Integrity
|
132. Annex 1:
GRI, SASB & TCFD Indexes
139. Annex 2:
UN Sustainable Development Goals
143. Annex 3:
Historical Data
| |
Ternium S.A. (the "Company") is a Luxembourg company and its American Depositary Shares, or ADSs, are listed on the New York Stock Exchange (NYSE: TX). We refer to Ternium S.A. and its consolidated subsidiaries as "we," "our" or "Ternium." |
The financial and operational information contained in this report is based on Ternium's operational data and on the Company's consolidated financial statements, which were prepared in accordance with IFRS and IFRIC interpretations as issued by the IASB and adopted by the European Union and presented in U.S. dollars ($) and metric tons.
| |
4. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
CHAIRMAN'S LETTER | |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
5
|
6. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
7
|
8. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
OUR SUSTAINABILITY JOURNEY
| |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
9
|
The concept of sustainability has been an integral part of our strategy for many years. At its core, it encompasses the principles of technical and operational excellence, as well as the preservation of people's safety. Safety is our primary value and extends to all those who perform roles within our facilities. To achieve these objectives, Ternium relies on the talent of its employees, and our efforts are focused on developing that potential, which is diverse and rich due to the multicultural nature of the countries in which we operate and are at the origins of our company.
We are thrilled to embark on a new phase of development with the Pesquería Industrial Center project at its base, representing the convergence of our vision for the future of the industry. The new DRI-EAF steel shop will be equipped with the latest technologies to accelerate Ternium's ongoing commitment to decarbonize its operations, including carbon capture capabilities and readiness to switch from natural gas to hydrogen for DRI production. In addition, all water utilized in the new facility's production process will be sourced from wastewater treated for industrial use.
Our growth must be in harmony with the development of our communities, and education plays a key role in this aspect. In line with this commitment, we are strengthening our educational programs by building a new technical school in Santa Cruz, Brazil, and enhancing our existing programs to create more opportunities for all.
|
MÁXIMO VEDOYA
CEO
|
10. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
11
|
Pesquería Industrial Center in Mexico: At the forefront of the industry while maintaining an environmental focus
|
of Ternium's integrated strategy, including the progress made during 2022 in various economic, environmental, social, and governance aspects.
It also highlights how company actions are contributing in achieving the Sustainable Development Goals defined by the UN in 2015.
In 2022, worldsteel distinguished Ternium under its Climate Action Recognition Program for the company's support and contributions to worldsteel's initiatives to reduce carbon dioxide emissions. |
12. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
TERNIUM'S APPROACH TO CLIMATE CHANGE | |||||
OUR GOAL
| |||||
The company is committed to achieve a 20% reduction in emission intensity rates (scopes 1 and 2) from its steelmaking sites by 2030, compared to a 2018 baseline.
| |||||
Plans for 20% Emission Intensity Reduction by 2030 | |||||
PROJECTS EXECUTED | PROJECTS UNDER DEVELOPMENT | PROJECTS UNDER ANALYSIS | |||
INITIATIVES | MEXICO | BRAZIL | ARGENTINA | PROGRESS DURING 2022 | |
_Guerrero facility in Mexico certified under ISO 50001
_Blast furnace expert control system incorporated at Brazil's facility (IA technology)
_Increase of pulverized coal injection (PCI) in Brazil
_Equipment changes aimed at enhancing the energy efficiency of the production system
| |||||
Energy efficiency projects | |||||
Scrap in the metallic mix |
_Increase of the scrapyard capacity in Brazil
The company recycled an aggregate of 2.8 million tons of scrap in 2022
| ||||
Alternative raw materials-biomass | _Tryouts for mineral coal substitutes at an industrial scale with focus on biocarbon | ||||
Renewable energy | _Recently announced wind-farm project in Argentina and execution of smaller onsite projects | ||||
Carbon Capture and Usage (CCU) | _First phase of CCU expansion in Mexico completed in 2021. Ongoing studies to increase CCU in Mexico and plans to build a pilot plant in Brazil | ||||
Low carbon technology
| _Announced EAF Project in Mexico based on DRI-EAF Technology | ||||
FRAMEWORK | |||||
Governance
Board surveillance
Ternium's Vice-Chairman appointed in 2021 to oversee decarbonization roadmap progress.
|
Decarbonization committee
Quarterly meetings with the CEO to review performance, projects and worldwide developments.
|
Strategy
Scenario analysis and an internal carbon price for project evaluations. Price determined at $80/ton of CO2.
|
Risks
Reviewed quarterly by Critical Risks Committee. Physical risk vulnerability analysis conducted by 3rd party (2021-2022)
|
Metrics
GHG emissions Verified by a 3rd party under GHG Protocol and worldsteel's methodology.
| |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
13
|
HIGHLIGHTS OF THE COMPANY'S LATEST MEDIUM-TERM INITIATIVES | ||||
LOW-CARBON TECHNOLOGIES
FOR A SUSTAINABLE FUTURE
New slab production capacity using the DRI-EAF
route. The direct reduction module will
include carbon capture capabilities and will
be ready to switch from natural gas to green
hydrogen whenever feasible.
|
FIRST WINDMILL FARM: TRANSFORMING
TERNIUM'S RENEWABLES LANDSCAPE
Ternium will invest $160 million in
a wind farm from which it will source electricity
in Argentina. The wind farm is expected to
reduce CO2 emissions by 92,500 tons per year
and have a power capacity of 72 MW.
| |||
About the project | About the project | |||
LOCATION | CAPACITY | LOCATION | WIND TURBINES | |
Pesquería, Nuevo León, Mexico |
DRI module:
2.1 million tons
|
Olavarría, Buenos Aires, Argentina | 16 turbines | |
INVESTMENT
$2.2 Billion
|
EAF- based
steel shop
2.6 million tons
|
INVESTMENT
$160 million
|
NOMINAL CAPACITY
72 MW
| |
The project also includes the construction of a port facility in Brownsville, Texas, for the handling of raw material | The power generation capacity of the wind farm could increase in the future | |||
BEYOND 2030 | ||||
The company has partnered with Tecpetrol and Tenova to study carbon capture and storage solutions, as well as green hydrogen applications. Ternium is also considering producing e-fuels, and evaluating initiatives for the production and use of biomass, along with other nature-based solutions to enhance atmospheric carbon capture like reforestation. | ||||
16. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
TERNIUM AT A GLANCE |
12
MILLION TONS
OF STEEL SHIPMENTS (2022)
|
$16
BILLION
OF NET SALES (2022)
|
+20,500
EMPLOYEES
|
9
COUNTRIES
|
6
INTEGRATED FACILITIES
|
12
DOWNSTREAM FACILITIES
|
28
SERVICE CENTERS
|
23
DISTRIBUTION CENTERS
|
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
17
|
18. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
DELIVERING OUR BUSINESS STRATEGY | |
SUSTAINABLE DEVELOPMENT GOALS | |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
19
|
ELEMENTS OF OUR BUSINESS STRATEGY & ACTIONS | KPIs | ||
ELEMENTS OF OUR BUSINESS STRATEGY
|
_
__
|
Focus on sophisticated steel products
Pursue strategic growth opportunities
Enhance Ternium´s competitiveness by:
_ a full product range offering,
_ operational excellence by incorporating cutting-edge technologies and integrating Ternium's industrial system
_ differentiated services with a strong distribution network
|
11.9
MILLION-TON SHIPMENTS
(2022)
|
$16.4
BILLION IN NET SALES
(2022)
| |||
ACTIONS |
_ _ _ _ _ _ _ _ |
Initiating activities at the new hot-rolling mill in Pesquería in 2021
Announcing new downstream projects in 2022 with start-ups in 2024 and 2025, including a push-pull pickling line, a cold rolling mill, a hot-dip galvanizing line and additional finishing lines
Launching an upstream project in our state-of-the-art industrial center in Pesquería, Mexico, in 2023
Establishing a new R&D center in Pesquería to further expand Ternium's capabilities
Launching a wind farm project to replace 65% of the electricity purchased from third parties providers in Argentina
Increasing Ternium's participation in Usiminas' control group (2023)
Improving customer service systems through Ternium Activo and a marketing chatbot
Developing the Smart Factory concept, including the implementation of new stages in the simulator program for training in safety and evaluation of industrial processes
|
21%
EBITDA MARGIN
(2022)
|
$581
MILLION IN
CAPITAL EXPENDITURES
(2022)
| |||
20. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
SINCE INAUGURATION OF PESQUERÍA
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
21
|
Pesquería New Hot Rolling Mill - The process of coil formation is carried out through hot rolling equipment.
|
22. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
INGREASING OUR PARTICIPATION IN THE USIMINAS CONTROL GROUP | |
In March 2023, Ternium announced an agreement with Nippon Steel to acquire a portion of its stockholding, thus increasing Ternium's stake in Usiminas's control group.
The Usiminas control group holds the majority of the company's voting rights. With the recent closing of this transaction, Ternium now holds an aggregate participation of 51.5% in the control group. The Usiminas control group has also agreed a new governance structure. Ternium and its related companies will nominate a majority of the Usiminas board of directors, the CEO and four other members of Usiminas board of officers.
Usiminas is one of Brazil's major producers of flat steel products, including iron ore mining, steel production, and steel processing and customization. In 2022, Usiminas shipped 4.2 million tons of steel products, of which 86% were directed to the Brazilian market, and 8.6 million tons of iron ore, with total net sales of BRL 32.5 billion.
| |
1ST
FLAT STEEL PRODUCER IN BRAZIL
(AÇO BRASIL 2022 FIGURES)
| |
51.5%
TERNIUM'S PARTICIPATION IN
USIMINAS' CONTROL GROUP
| |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
23
|
Ternium's Pesquería R&D Center: Technical evaluation and innovation with advanced facilities for physical modeling, process simulation, and testing.
|
24. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
Innovative steels for Vaca Muerta
In 2022, Ternium and its sister company Tenaris collaborated in developing new steels for welded tube manufacturing in gas and oil infrastructure projects at the Vaca Muerta shale field in southern Argentina.
|
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
25
|
SECOND PHASE OF R&D CENTER IN PESQUERÍA, MEXICO | |
Ternium's newly inaugurated R&D center in
Pesquería, Mexico (2021), entered the second
phase of its investment project, which focuses
on installing a new galvanizing simulator. This
state-of-the-art equipment is expected to be fully
operational by the first quarter of 2024, enabling
the company's capabilities to conduct in-house
simulations that were previously outsourced
to third-party facilities. This advancement will
significantly expedite the development cycle for
new coated products.
| |
$14.5
MILLION OF CUMULATIVE INVESTMENT IN R&D IN PESQUERÍA (2022)
| |
26. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
Pushing new limits: Uniting industrial excellence and IT integration for seamless product and service coordination
|
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
27
|
DIGITAL PLATFORM UPGRADE ENHANCES CUSTOMER EXPERIENCE | |||
In 2022, Ternium launched its new platform, Ternium Activo, as the primary point of contact with its customers. Customers can conduct all their commercial transactions, check status, review credit history, and more through this digital platform.
The development focused on three aspects: visual impact, structure and functionality, and personalization. Ternium Activo aims to provide
|
users with a personalized experience, simplifying processes and providing self-management support tools.
Currently implemented for all customers in Argentina, Ternium plans to expand it to Mexico and integrate it into all other countries where the company operates.
| ||
129
FEATURES AVAILABLE
ON THE PLATFORM
|
3,800
USERS REGISTERED
ON THE PLATFORM
UP TO DATE
|
+95%
OF CUSTOMER ORDERS IN ARGENTINA PLACED THROUGH THE PLATFORM
| |
28. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
29
|
DEVELOPING A SUSTAINABLE EXPORT SOLUTION | |
Ternium has undertaken a project aimed at improving operations and reducing environmental impact in the export of slabs from Brazil to Mexico. This collaborative effort involved Ternium's Global Logistics team in Uruguay, as well as the Supply Chain teams in Mexico and Brazil.
The key component of this initiative was the installation of cranes equipped with magnets at the port of Brownsville, USA.
These cranes facilitate the efficient unloading of Ternium Brazil's slabs, which are then transported to Ternium's Industrial Center in Pesquería, Mexico.
The implementation of this process has resulted in a significant reduction in the use of wooden dunnage for cargo securing.
As a result, approximately 26,700 trees are saved each year, leading to both environmental benefits and increased operational productivity.
| |
$2.8
MILLION IN COST REDUCTION PER YEAR
| |
30. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
LEADING THE DEVELOPMENT OF THE MEXICAN STEEL INDUSTRY | |||||
TERNIUM'S GROWTH STRATEGY | |||||
Ternium aims at increasing stakeholder value by strengthening its position as a top steel producer across the Americas. Strategy: differentiation, high-value added products, efficient operations | |||||
Progressive growth in steel consumption in the Mexican market | Import substitution opportunities for local industries | ||||
3% | ANNUAL GROWTH RATE (CAGR) OF APPARENT STEEL USE IN MEXICO FROM 2000 TO 2022 | 40% |
OF NET IMPORTS PARTICIPATION IN THE COUNTRY'S APPARENT FLAT STEEL USE (2022) | ||
Opportunity to serve manufacturing activity with high-value-added products
| Relocation of manufacturing activities within the steel value chain (nearshoring) | Compliance with the rules of origin set under the USMCA agreement | |||
$35B | |||||
66% | OF INDUSTRIAL CUSTOMERS PARTICIPATION IN THE COUNTRY'S APPARENT FLAT STEEL USE (2022) | $35B | INCREMENTAL ANNUAL EXPORTS OF GOODS AND SERVICES FROM MEXICO According to Inter-American Development Bank (IDB) | 70% |
OF THE STEEL PURCHASED BY OEMs MUST BE "MELTED AND POURED" IN THE USMCA REGION BY JULY 2027
|
TERNIUM'S CURRENT PRODUCTION SYSTEM IN MEXICO | |||||
STEEL | MINING | ENERGY | |||
12
STEEL PRODUCTION
AND/OR PROCESSING
UNITS
| |||||
100%
INTEREST IN LAS ENCINAS
|
50%
INTEREST IN CONSORCIO
PEÑA COLORADA
|
900
MW OF CAPACITY
| TERNIUM SECURES THE SUPPLY OF ELECTRICITY IN MEXICO WITH A 78% PARTICIPATION IN A POWER PLANT JOINT VENTURE (TECHGEN) | ||
12
DISTRIBUTION
CENTERS ACROSS
THE COUNTRY
| |||||
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
31
|
RECENTLY ANNOUNCED PROJECTS IN THE USMCA REGION | |||||
MID 2024 |
1st HALF 2025
| END 2025 |
1st HALF 2026
| ||
Push-pull pickling line
PRODUCTION CAPACITY
550,000 TPY
|
Painting line
PRODUCTION CAPACITY
120,000 TPY
Sheverport, USA
|
Cold-Roll line
PRODUCTION CAPACITY
1.6 million TPY
Hot-dip galvanizing line
PRODUCTION CAPACITY
600,000 TPY
Pesquería, Mexico
|
Upstream Project Pesquería, Mexico
EAF-based steel shop
PRODUCTION CAPACITY
2.6 million TPY
DRI Module
PRODUCTION CAPACITY
2.1 million TPY
| ||
Finishing lines
Pesquería, Mexico
| |||||
NEW UPSTREAM PRODUCTION CAPACITY PROJECT
| |||||
In 2023, Ternium announced a new steelmaking facility with an electric-arc-furnace-based steel shop & DRI module. The new DRI module will include carbon capture capabilities and readiness to switch from natural gas to hydrogen use. |
Operations are scheduled to start in 2026, in line with Ternium's decarbonization goals for the production of crude steel with low carbon content. | ||||
Port facility
Construction for raw material handling
|
DRI module
For the
production of DRI
|
EAF-based steel shop
Steel production
| |||
$2.2 B
Total investment
| |||||
Scrap yard
Selection and preparation
of metal scrap
|
Consteel®
Continuous scrap charging and preheating system
| ||||
2026
Start-up expected in the 1st half
| |||||
32. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
ECONOMIC & FINANCIAL PERFORMANCE |
$1.2
BILLION
IN EMPLOYEES
|
$581
MILLION
IN CAPEX
|
$842
MILLION
IN TAXES
|
$11.7
BILLION
IN SUPPLIERS
| |
$16.4
BILLION IN ECONOMIC
VALUE GENERATED
(2022)
|
$21
MILLION
IN COMMUNITY
|
$577
MILLION
IN CAPITAL PROVIDERS
|
$16
MILLION
IN RESEARCH
& DEVELOPMENT
| |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
33
|
2022 | 2021 | 2020 | 2019 | 2018 | |
STEEL SALES VOLUME (THOUSAND TONS) | |||||
Mexico
| 6,843 | 6,534 | 5,913 | 6,305 | 6,545 |
Southern Region
| 2,362 | 2,503 | 1,924 | 1,938 | 2,301 |
Other Markets
| 2,691 | 3,028 | 3,523 | 4,268 | 4,105 |
Total | 11,896 | 12,065 | 11,360 | 12,511 | 12,951 |
IRON ORE SALES VOLUME (THOUSAND TONS) | 3,457 | 3,809 | 3,797 | 3,576 | 3,616 |
ECONOMIC AND FINANCIAL INDICATORS ($ MILLION) | |||||
Net sales | 16,414 | 16,091 | 8,735 | 10,193 | 11,453 |
Operating income | 2,700 | 5,271 | 1,080 | 865 | 2,108 |
Adjusted EBITDA
| 3,415 | 5,863 | 1,525 | 1,526 | 2,698 |
Profit for the year attributable to: | |||||
Owners of the Parent
| 1,768 | 3,825 | 779 | 564 | 1,507 |
Non-controlling interest
| 325 | 542 | 89 | 66 | 156 |
Profit for the year | 2,093 | 4,367 | 868 | 630 | 1,663 |
Capital expenditures | 581 | 524 | 560 | 1,052 | 520 |
Free cash flow | 2,172 | 2,154 | 1,201 | 595 | 1,219 |
BALANCE SHEET ($ MILLION) | |||||
Total assets | 17,492 | 17,098 | 12,856 | 12,936 | 12,548 |
Total liabilities | 3,723 | 4,863 | 4,413 | 5,221 | 5,063 |
Borrowings | 1,032 | 1,479 | 1,723 | 2,189 | 2,037 |
Net (cash) debt | (2,597) | (1,155) | 372 | 1,453 | 1,735 |
Capital and reserves attributable to the owners of the parent | 11,846 | 10,535 | 7,286 | 6,612 | 6,393 |
Non-controlling interest | 1,922 | 1,700 | 1,157 | 1,103 | 1,091 |
STOCK DATA ($) | |||||
Basic earnings per ADS | 9.00 | 19.49 | 3.97 | 2.87 | 7.67 |
Approved dividend per ADS | 2.70 | 2.60 | 2.10 | - | 1.20 |
34. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
Galvanizing line at the Pesquería Plant
This robot functions as a "labeler", applying identification labels with chips to each coil produced. The labels are then read by the system providing real-time location information for each of the coils.
|
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
35
|
KEY FIGURES |
STEEL SHIPMENTS
MILLION TONS
|
CAPITAL EXPEDITURES
$ MILLION
|
ADJUSTED EBITDA
$ BILLION
|
ANNUAL DIVIDENDS
$ PER ADS
|
38. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
ADDRESSING CLIMATE CHALLENGES: STRATEGIES FOR A SUSTAINABLE FUTURE | |
SUSTAINABLE DEVELOPMENT GOALS | |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
39
|
GOALS & ACTIONS
| KPIs | ||
GOALS
|
_
_
_
_
|
Reduce by 20% the emission intensity rate for our steelmaking sites (scopes 1 and 2) by 2030 compared to 2018 baseline
Plan and implement decarbonization strategies with the aspiration of achieving carbon neutrality in our products and operations, subject to technological feasibility and local market conditions
Make an efficient use of energy resources
Work alongside our supply chain to reduce GHG emission
|
$19.4
MILLION INVESTED IN
DECARBONIZATION RELATED
PROJECTS (2022)
|
1.7 CO2
PER TON OF CRUDE STEEL (SCOPES 1 & 2)
| |||
ACTIONS |
_ _ _ _ _ _ _ _ _ |
Establishing a climate change governance structure, including Board oversight and a decarbonization committee
Incorporating a scenario analysis to assess asset vulnerability to physical risks
Using an internal carbon price for project evaluation
Developing a roadmap with key projects, annually reviewed, to achieve our 20% intensity reduction goal by 2030
Activating the upstream DRI-EAF project in Pesquería, Mexico, to reduce Terniums's average emissions intensity rate
Launching a wind farm project in Argentina with operations beginning in the second half of 2024
Participating in initiatives to establish a decarbonization path for the steel industry
Consolidating the company's energy efficiency program through locally defined initiatives under a unified corporate framework
Strengthening the company's management system by including:
-the certification under ISO 50001 standard,
-a third-party verification of emissions under GHG Protocol and worldsteel methodology,
-introduction of data processing systems to improve its granularity and analysis,
-supplier data collection
| |
27%
STEEL SCRAP CONTENT PER
TON OF CRUDE STEEL
| |||
84%
STEEL PRODUCED AT ISO 50001 CERTIFIED FACILITIES
| |||
22.7 GJ
CONSUMED PER TON OF
CRUDE STEEL
| |||
40. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
41
|
Manizales plant, Colombia. 100% scrap-based facility for the production of long steel, Manizales is among Ternium's lowest emission intensity sites.
|
A CLOSER LOOK AT THE COMPANY'S DECARBONIZATION ROADMAP
42. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
CLIMATE CHANGE GOVERNANCE |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
43
|
Climate Change
SYNERGIC PARTNERSHIPS | |
The decarbonization of the value chain in the steel industry is of vital importance in order to achieve net-zero emissions. Collaborative efforts are critical to achieving a sustainable future. Ternium has already set strategic alliances along its supply chain while promoting joint efforts with several other stakeholders in order to achieve its decarbonization goals.
| |
TERNIUM & VALE
SIGNED MOU FOR TRYOUTS OF VALE'S BRIQUETTES AT TERNIUM'S BRAZIL FACILITY
| |
TERNIUM EXPLORES BIOMASS
AS METALLURGICAL COAL SUBSTITUTE WITH PARTNERS
| |
44. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
and raw material purchases
were included in the company's GHG inventory.
TO MITIGATE RISK
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
45
|
Expansion of the Pesquería Industrial Center, Mexico. Project announced with DRI-EAF technology prepared for CO2 capture and the use of green hydrogen.
|
46. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
a 'very high' or 'high' physical risk index.
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
47
|
TERNIUM´S STEELMAKING ROUTES | ||||||
MAIN PRODUCTION INPUTS |
CRUDE STEEL PRODUCTION (2022) |
CRUDE STEEL CAPACITY (2026) | ||||
1. Iron ore
2.Coking coal
3. Pulverized Injection Coal (PCI)
4. Natural Gas
|
BF
Blast furnace
|
BOF
Basic oxigen
furnace
|
CC
Slab continuous caster
| 63% | 55 | % |
1.Iron ore pellets
2. Natural gas
3. Electricity
4. Scrap
|
DRI
Direct reduction
iron plant
|
EAF
Electric
arc furnace
|
CC
Slab and billet continuous caster
| 29% | 39 | % |
1. Scrap
2. Electricity
|
EAF
Electric
arc furnace
|
CC
Billet continuous caster
| 8% | 6 | % | |
48. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
PIONEERING CARBON CAPTURE FOR MORE THAN 20 YEARS | |
Ternium's Guerrero unit in Mexico incorporated direct reduced iron (DRI) technology back in 1998, which was exceptional at the time. Its Direct Reduction Plant revolutionized the industry with its cost-efficiency and environmentally conscious design.
Equipped with CO2 removal units that use amines technology, the facility captures and commercializes the CO2 generated during the reduction process as a co-product. This process helps to avoid emissions in other industries.
Since then, DRI technology was also successfully deployed in Ternium's facility in Puebla, Mexico.
| |
40%
INCREASE IN CO2 CAPTURE
AND USAGE IN MEXICO FROM 2017 TO 2022
| |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
49
|
Solar Power Project: 1,012 panels to generate 90% of the energy required for our corporate building in Monterrey, Mexico.
|
50. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
51
|
KEY FIGURES |
EMISSION INTENSITY (SCOPES 1+2) (1)
TONS OF CO2 EMITTED PER TON OF CRUDE STEEL PRODUCED
|
ENERGY INTENSITY (2)
GIGAJOULES CONSUMED PER TON OF CRUDE STEEL PRODUCED
|
CO2 CAPTURE AND USAGE
THOUSAND TONS
|
52. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
MINIMIZING OUR ENVIRONMENTAL FOOTPRINT | |
SUSTAINABLE DEVELOPMENT GOALS | |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
53
|
GOALS & ACTIONS | KPIs | ||
GOALS
|
_
_
_
_
_
_
_
|
Make an efficient use of resources
Minimize water use in water-stressed areas
Achieve circular economy and develop new markets for steelmaking co-products
Prevent pollution at the source, minimizing the impact of the company's operations on the environment
Preserve biodiversity within the company's area of influence
Incorporate environmental factors into all company decisions
Promote environmental stewardship within our industry and throughout our value chain, raising collective awareness among our employees and the communities in which we operate
|
$89.6
MILLION INVESTED IN
ENVIRONMENTAL PROJECTS
(2022)
|
100%
OF STEEL PRODUCED IN ISO 14.001 CERTIFIED FACILITIES
| |||
3.3 M3
WATER USED PER TON OF CRUDE STEEL AT MEXICAN FACILITIES
| |||
ACTIONS |
_
_
_
_
_
_
_
_
|
Executing an environmental investment plan 2020-2030 of $608 million Designing closed water systems in greenfield projects when feasible Prioritizing the use of sewage water in water-stressed areas Enhancing water treatment capacity and improving the quality of treatment by upgrading facility infrastructures Implementing engineering solutions to minimized impact of production activities in the environment Promoting the alternative use of co-products resulting from the steelmaking process Reinforcing environmental monitoring and control systems, which include the installation of sensors to enable real-time data reporting Extending certification to our main facilities under ISO 14001 standard | |
99.4%
OF MATERIAL CONVERTED TO PRODUCTS & CO-PRODUCTS
(MATERIAL EFFICIENCY)
| |||
54. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
RESPONSIBLE OPERATIONS IN WATER-STRESSED AREAS | |
Ternium prioritizes responsible water management in its operations, employing a site-specific strategy that considers local conditions.
We utilize advanced technologies to optimize water management across the entire cycle, from intake to discharge and prioritize the use of non-potable water for industrial purposes. This minimizes our ecological footprint and supports a sustainable water usage.
| |
49%
OF MEXICAN FACILITIES' WATER INTAKE WAS SOURCED FROM SEWAGE
IN 2022
| |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
55
|
in compliance with local environmental regulations.
All facilities measure water quality by considering numerous physicochemical and bacteriological
MEXICO: SUPPORTING THE COMMUNITY DURING WATER SHORTAGE | |||
In 2022, the state of Nuevo Leon in Mexico faced a severe water crisis due to high temperatures, minimal rainfall, and depleted water reserves. Ternium responded to this dire situation by launching several initiatives to support the affected communities.
|
Collaborating in industry-wide initiatives
The company temporarily ceded the concession of 8 water wells with an approximate capacity of 2.75 million cubic meters per year to the state. This represented 21% of the total water ceded by the local industry for citizen consumption.
|
Providing Water Relief
The company provided over 10,200 liters of potable water and 1,9 million liters of non-potable water for domestic use to the communities surrounding the facilities.
10,200
LITERS OF POTABLE WATER
1,9
MILLION LITERS OF NON-
POTABLE WATER PROVIDED
FOR DOMESTIC USE
|
Participating in local water infrastructure
The company participates in the "El Cuchillo II" aqueduct project by providing 95,000 tons of steel to produce pipes.
95,000
TONS OF STEEL SOLD TO
PRODUCE PIPES
|
8 |
WATER WELLS CEDED IN CONCESSION | ||
56. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
LiDAR (Light Detection and Ranging) technology. Currently undergoing testing at Ternium's San Nicolás unit in Argentina and the Rio de Janeiro unit in Brazil.
|
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
57
|
LIDAR SYSTEM`S COMP0NENTS |
1. LASER
The equipment emits short pulses of light energy that reach the elements present in the atmosphere within its area of influence.
2. TELESCOPE
The optics capture the backscatter to be analyzed, coming from the deflection produced by the elements present in the atmosphere.
3. HEAD
This piece contains, in addition to the laser and the telescope, a detector that converts the captured radiation into electrical signals.
4. POSITIONING SYSTEM
This motorized mechanical system allows the laser to point in a specific direction.
5. CONTROL UNIT
The electrical signal is processed by algorithms that interpret the distance and concentration of the detected elements.
|
58. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
59
|
Conserving Mangroves in Brazil: Ternium's Protection of 160 hectares (395 acres) in Sepetiba Bay, Rio de Janeiro
|
TO ENVIRONMENTAL STEWARDSHIP
with a particular focus on 160 hectares (395 acres)
of mangroves.
60. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
Biodiversity
Ternium aims to promote biodiversity conservation. In Argentina, it collaborates with the Rewilding Argentina project that has successfully reintroduced the endangered Yaguareté (jaguar) in the province of Corrientes, among other species and locations.
|
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
61
|
REFORESTATION AT CHIPINQUE ECOLOGICAL PARK IN MEXICO | |
In 2022, Ternium collaborated with the Seeds of Hope program at Chipinque Ecological Park in Nuevo León, Mexico. Through direct contributions and the Volunteers in Action program, which engaged the company's staff and their families, Ternium participated in reforesting areas impacted by fires, landslides, and the increasing presence of exotic species.
Ternium's contribution allowed the park rangers and the organization to plant over 1,400 native pine trees in the campaign.
| |
+200
TREES PLANTED BY TERNIUM EMPLOYEES AT CHIPINQUE PARK
| |
62. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
KEY FIGURES |
INVESTMENTS IN ENVIRONMENT PROJECTS
$ MILLION
|
PARTICULATE MATTER EMISSIONS(*)
KG/TON CRUDE STEEL
|
WATER MANAGEMENT AT MEXICAN FACILITIES
MILLION CUBIC METERS
|
CO-PRODUCTS REUSED AND SOLD TO THIRD PARTIES(*)
MILLION TONS
|
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
63
|
ENVIRONMENTAL AND ENERGY POLICY |
-
-
-
-
-
-
-
-
-
-
-
-
-
|
Ternium, an integrated steel company, whose processes range from mining operations to the manufacture
of finished steel products, defines in this Policy its commitment to environmental protection and its goal of achieving excellence in environmental and energy performance throughout its operations.
This Policy applies to Ternium and its subsidiaries. It will be actively disseminated to ensure compliance. The company believes that the sustainable development of its operations requires engagement through open dialogue with its employees, suppliers, contractors, customers and communities.
Caring for the environment is a core value, and establishes the following principles:
Environmental protection and energy efficiency is a responsibility of Ternium's personnel, as well as its suppliers and contractors.
Pollution must be prevented at the source, controlling the significant environmental aspects of our operations and minimizing their impacts and risks.
Compliance with the applicable legislation and voluntary agreements in relation to environmental protection and efficient energy consumption.
Promotion of continuous improvement in environmental and energy performance and management systems to achieve the established objectives and targets.
Integration of environmental and energy components into all company management processes.
Planning and executing decarbonization roadmaps with the ambition to achieve carbon neutrality of our products and operations, according to technological feasibility and local market conditions.
Using natural resources efficiently to contribute to circular economy.
Minimizing air emissions at the sites where we operate, optimizing the use of water, and maximizing its reuse.
Protecting biodiversity in areas where we operate and compensate the impacts where and when feasible.
Application of life cycle perspective and risk management in our continuous improvement processes, when feasible.
Promoting renewable energy generation and use, as well as the application of energy-efficient products, technologies and services, and the implementation of projects designed to improve energy and environmental performance, where significant.
Encourage the purchase of sustainable and energy-efficient products, technologies and services.
Promotion of employee training and awareness in relation to environmental protection and responsible energy use.
The company must provide the information, means and resources to enable compliance with this Policy, as well as with the objectives and goals established, thus supporting sustainability throughout operations, considering the context in which it operates.
All management levels are primarily responsible and accountable for environmental protection and energy consumption in their areas.
July 2023
|
Máximo Vedoya CEO Ternium |
64. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
IMPROVING SAFETY PERFORMANCE | |
SUSTAINABLE DEVELOPMENT GOALS | |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
65
|
GOALS & ACTIONS | KPIs | ||
GOALS
|
_
_
_
_
_
_
_
_
_
|
Promote a culture where safety is considered everyone's responsibility
Strengthen the company's positioning as a global referent in process safety within the steel industry
Ensure compliance with all relevant occupational health and safety regulations
Achieve a 50% reduction in the IFR and LTIFR by 2025, compared to 2020
Assess on a regular basis risks and implement appropriate preventive measures
Implement ergonomics practices and prevent hygiene-related injuries
Shorten emergency response times and strengthen contingency plans
Foster active participation and collaboration of all employees in the company's safety initiatives
Extend best practices in Safety to company contractors
|
$74
MILLION INVESTED
IN HEALTH AND SAFETY PROJECTS (2022)
|
18%
REDUCTION OF INJURIES
FREQUENCY RATE (IFR) FROM 2020
| |||
25%
REDUCTION OF LOST
TIME INJURIES FREQUENCY RATE (LTIFR) FROM 2020
| |||
ACTIONS |
_
_
_
_
_
_
_
_
__
|
Certifying our main facilities under ISO 45001
Conducting planned and random recurrent audits
Introducing preventive tools such as "task rejection"
Summing up an In-house development of a High-Risk-Task Certification Program in collaboration with Ternium University
Improving employee training and safety awareness
Developing a comprehensive five-year program on process safety, ensuring an integrated approach to risk management within the company
Implementing regular and recurrent communication on safety topics from management, including events such as Safety Day
Developing the Safe Supplier program
Participating in industry-wide health and safety initiatives such as worldsteel's Safety Day
| |
91%
OF EMPLOYEES AND
CONTRACTORS OPERATE ON SITES CERTIFIED UNDER ISO 45001
| |||
+195
THOUSAND OCCUPATIONAL HEALTH AND SAFETY AUDITS (2022)
| |||
66. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
67
|
Safety Day 2022: Addressing employees at Ternium's Industrial Center in Pesquería.
|
68. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
External Audit: Ternium personnel receiving an external audit in the company's grinding and pelletizing control room at the Alzada mining facility in Mexico.
|
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
69
|
THE DOCUMENTATION OF DEVIATIONS OR
THE RECOGNITION OF GOOD PRACTICES
Active Involvement
It aims at raising awareness among employees, customers, and suppliers, and they are subject to regular audits to ensure strict adherence. Given its importance in 2022, over 30,000 audits were conducted, with specific focus on the Ten Life-Saving Rules.
70. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE 10 LIFE-SAVING RULES | ||
Comprise a set of fundamental actions designed to prevent the risks of serious accidents.
These rules serve as a cornerstone of the safety management system, offering individuals more tools to ensure safe work practices.
| ||
1 |
Avoid exposing yourself to entrapment areas.
| |
2 |
Comply with Effective Lockout and ensure zero power before handling equipment.
| |
3 |
Use harness, lifeline, and block off the area when working at heights.
| |
4 |
Keep a safe distance from suspended loads.
| |
5 |
Make sure to check the Safety Sheets and emergency measures before working with gas and other hazardous substances.
| |
6 |
Access the confined space only if you are authorized.
| |
7 |
Operate mobile equipment you are certified for. If you interact with mobile equipment, keep a safe distance.
| |
8 |
Work on electrical installations only if you are qualified for that, and have the appropriate PPE.
| |
9 |
Perform hot work only if you are authorized and qualified.
| |
10 |
Always comply with procedures, never take shortcuts, respect signaling and use the required PPE.
| |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
71
|
READINESS TEST: HOW IT WORKS | ||||
Monitoring
Before starting their shift, workers undergo a computer-based test.
|
Observation and analytics
The system compares the test results with the worker's normal response curve to detect any deviations.
|
On-site alert
The result, along with the required actions to be taken, is communicated to both the worker and their supervisor/leader.
|
Recording
All the results are diligently recorded for the purpose of retrofitting the tool.
|
Follow up
The health department, in collaboration with the supervisor/leader, implements the recommended actions and closely monitors the case.
|
72. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
TERNIUM'S SAFETY TRAINING RECEIVES INTERNATIONAL RECOGNITION | ||
In 2022, Ternium was honored with the Steelie Award in the category of Excellence in Education & Training for its certification program in high-risk tasks. The certification program focuses on activities involving elevated risks, aiming at ensuring that only trained personnel are responsible for performing these tasks. It encompasses medical checkups, specific courses, on-the-job- training, and a final evaluation that
|
grants authorization for employees to carry out the designated tasks. Currently, the certification is mandatory for locomotive, forklift and crane operators, as well as for maintenance tasks, work-at-heights or confined spaces, electrical risks and logout/tagout procedures. The certification process requires periodic re-certification every 1 to 3 years, depending on the nature of the activity and local regulations. | |
61%
OF TARGET WORKERS HAVE BEEN CERTIFIED
|
78%
OF TARGET WORKERS HAVE COMPLETED THE COURSES
| |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
73
|
Fully Autonomous Technology
Ternium's Pesquería facility in Mexico showcases state-of-the-art automated and autonomous technology in its slab yard for safe and efficient operations.
|
74. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
AND INCIDENTS
VIDEO ANALYTICS: HOW IT WORKS | ||||
STAGES | ||||
Monitoring
Cameras capture
images of our operating
activities 24/7
|
Observation and analytics
Images are compared automatically with established values to detect and identify deviations
|
On-site alert
In the presence of risks, visual audible and mechanical
alerts are activated
|
Recording
The information is automatically loaded on the management system and supervisors are alerted
|
Follow up
Corrective actions and additional safeguards are established. The company monitors the execution of the safety plan
|
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
75
|
fatal injuries along with a steadfast commitment across processes, facilities and the entire value chain.
76. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
Safety First: Ternium's Strong Commitment to Safety Across the Value Chain.
|
a benchmark of their operations at the company's facilities in various locations.
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
77
|
78. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
KEY FIGURES |
INVESTMENT IN HEALTH AND SAFETY
$ MILLION
|
LOST TIME INJURIES FREQUENCY RATE (LTIFR)
# DAY-LOSS PER MILLION HOURS WORKED
|
INJURIES FREQUENCY RATE (IFR)
# PER MILLION HOURS WORKED
|
HEALTH AND SAFETY AUDITS
THOUSAND
|
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
79
|
OCCUPATIONAL HEALTH AND SAFETY POLICY |
-
-
-
-
-
-
-
-
-
-
-
-
-
-
|
Ternium, an integrated steel company, along with its subsidiaries is committed to the occupational safety and health of its personnel, customers, contractors, and suppliers. The company's occupational health and safety policy is the baseline for sustainable development across all its operations. Policy adherence, dissemination, and compliance apply and are to be promoted throughout Ternium and its subsidiaries. Looking out for the occupational health and safety of every person who works for the company or is inside its facilities is an essential value. To that end, we promote our commitment through the following principles: All work-related injuries and illnesses can and should be prevented. Compliance with all applicable legal and other regulations to which Ternium voluntarily agrees. Continuous improvement of all processes related to staff's health and safety. Occupational health and safety must be integrated into all company processes. No emergency situation, production process or results justify putting people's occupational health or safety at risk. Commitment from and training of the entire staff is essential. Working safely is an employment condition. Every person is responsible for looking after his/her own safety and the safety of others. In each company, everyone is responsible for occupational health and safety: The company provides the means and resources for activities to be carried out safely so as to preserve everyone's physical integrity and occupational health. Managers are in charge of the occupational health and safety of everyone who works for them or is in their area. All other workers must comply with regulations and instructions, and work with their managers to detect, control, and resolve any dangerous situations. Contractor companies and their staff must comply with the Safety Regulations in force at the facilities where they provide services. People who enter the facility must comply with the applicable Safety Regulations. Health and safety staff must take preventive measures through support, advising and auditing. At Ternium and its subsidiaries, these principles are shared throughout the entire value chain and in all the communities where it operates in order to promote people's healthcare and safety. |
March 2018 | |
Máximo Vedoya CEO Ternium |
80. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
REALIZING OUR PEOPLE'S FULL POTENTIAL
| |
SUSTAINABLE DEVELOPMENT GOALS | |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
81
|
GOALS & ACTIONS | KPIs | ||
GOALS
|
_
_
_
_
_
_
|
Cultivate an inclusive and engaging working environment that attracts and retains the necessary talent for the long-term sustainability of the company
Promote a culture of industrial and technological excellence
Foster innovation
Ensure equal opportunity and treatment for all employees
Increase diversity in Ternium's management positions and Board of Directors
Assure that people are chosen for leadership positions solely based on their abilities and relevant knowledge, without considering their physical condition, gender, or any other personal traits
|
24
NATIONALITIES REPRESENTED WITHIN OUR PERSONNEL
|
68
HOURS OF TRAINING COMPLETED PER YEAR PER EMPLOYEE
ON AVERAGE
(considering on the job training)
| |||
ACTIONS |
_
_
_
_
_
_
_
|
Establishing corporate mechanisms to ensure that the selection of personnel is based on their individual knowledge and skills
Utilizing technology to simplify human resources processes and develop long-term predictive tools
Enhancing employees' skills through training programs at all levels of the company
Developing a new working culture that combines the positive aspects of traditional onsite work with new remote work alternatives
Endorsing the United Nations Women's Empowerment Principles (WEPs)
Implementing a medium-term plan to increase female participation in management positions
Consolidating corporate programs like the Lean In Together initiative and Maternity Mentoring to promote fair and equitable treatment
| |
$7.4
MILLION INVESTED IN TRAINING ACTIVITIES UNDER TERNIUM UNIVERSITY (2022)
| |||
25%
OF WOMEN OCCUPYING POSITIONS AT THE BOARD OF DIRECTORS (2023)
| |||
39%
OF FEMALE SALARIED EMPLOYEES UNDER 30 YEARS OF AGE (2022)
| |||
82. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
of working through infrastructure upgrades that enhance team collaboration, the introduction
of technological tools to streamline administrative tasks and the establishment of policies that provide greater flexibility.
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
83
|
EMPOWERING EMPLOYEES 24/7 THROUGH AN AI-POWERED CHATBOT | ||||
With the goal of making Human Resources (HR) processes accessible and easier for everyone, the AI-powered HR Chatbot is changing how employees interact with HR inquiries and tasks. Ternium has developed a chatbot that uses artificial intelligence to provide quick and clear communication, offering personalized responses. The chatbot can currently handle 400 different requests, and there are plans
|
to increase its capabilities to cover 520. The chatbot was initially available to all direct employees of Ternium, and the company envisions extending its reach to contracted personnel in coming years. Furthermore, Ternium is actively exploring opportunities to utilize the chatbot for screening potential employee candidates.
| |||
17,000
ACTIVE USERS
|
83%
OF HOURLY
EMPLOYEES USE
THE TOOL
|
4.7/5
USERS' SATISFACTION RATE
|
420
ACTIVE INTERACTIONS
IN SPANISH AND
PORTUGUESE
| |
84. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
Flexible Work: Technology, Global Teams, and Work-Life Balance Driving Change at Ternium's Administrative Offices in Buenos Aires, Argentina.
|
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
85
|
TERNIUM UNIVERSITY: SKILL ENHANCEMENT INITIATIVES | |
The company is constantly exploring innovative approaches to enhance the skills of its employees and foster a collective understanding of crucial subjects throughout its various divisions.
Ternium University's platform encompasses four fundamental pillars for the company's sustainable development in the long run: health and safety; quality and research and development (R&D); environment and diversity, equity, and inclusion.
Within the Ternium University platform, users have access to informative videos detailing the company's policies and procedures along with courses covering regulations and international standards, as well as interactive training sessions where participants can exchange knowledge and share their ideas and experiences. Considering Ternium's strong presence throughout the Americas, the materials are available in Spanish, Portuguese, and English
| |
98%
OF THE EMPLOYEES
RECEIVED CAREER
-OR SKILLS- RELATED
TRAINING IN 2022
| |
98%
OF THE EMPLOYEES RECEIVED TRAINING ON ENVIRONMENTAL TOPICS AT LEAST ONCE
|
96%
OF THE EMPLOYEES RECEIVED TRAINING ON PREVENTING DISCRIMINATION AND HUMAN RIGHTS VIOLATIONS
|
86. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
87
|
Ternium empowers young professionals
through international exchanges
As part of the Global Professional program, young professionals from every country gather at the Industrial Center in Pesquería. Over 90 attendees visited the Hot Rolling Mill in 2022.
|
88. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
89
|
TERNIUM'S EFFORTS TO ACHIEVE EQUAL TREATMENT | |
In 2022, the company modified its policy regarding maternity, paternity and primary caregiver leave based on the conclusions drawn from an internal survey conducted a year earlier and the company's efforts to achieve greater equity among its employees.
The new policy establishes a minimum paid leave for primary caregivers, regardless of gender. Additionally, secondary caregivers are entitled to a similar benefit.
The company policy also provides that new parents may work from home three times a week and two times in the office during the first year following the corresponding maternity, paternity, or adoption leave, as described above.
|
Recognizing the importance of work-life balance and gender equality, this policy aims to support individuals in their caregiving responsibilities, irrespective of gender. These measures help create a workplace culture that values and supports the diverse needs and roles of its employees, fostering a more harmonious and equitable society overall.
|
EQUITABLE PARENTAL LEAVE
ENSURING EQUAL TREATMENT FOR ALL CAREGIVERS.
| |
90. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
for Diversity & Equality
Fostering gender diversity: A higher number of female employees now occupy managerial positions.
|
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
91
|
KEY FIGURES |
HEADCOUNT
# OF EMPLOYEES
|
HEADCOUNT BY AGE
%
|
HEADCOUNT BY GENDER
%
|
PERFORMANCE AND CAREER DEVELOPMENT REVIEW
% SALARIED AND MANAGEMENT EMPLOYEES
|
92. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
HELPING OUR
COMMUNITIES THRIVE
| |
SUSTAINABLE DEVELOPMENT GOALS | |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
93
|
GOALS & ACTIONS | KPIs | ||
GOALS
|
_
_
_
_
_
|
Improve education at all levels in our immediate and broader communities, with focus on technical education
Encourage creativity and innovation through culture
Preserve and promote our community's identity and heritage through cultural initiatives
Procure ongoing support in times of crisis, by addressing the community´s needs in areas such as health, education, and humanitarian aid
Provide medical assistance solutions in the communities where the company operates and support local health care institutions
|
$21.2
MILLION INVESTED IN COMMUNITY PROGRAMS (2022)
|
85%
OF COMMUNITY BUDGET ALLOCATED TO EDUCATION
| |||
ACTIONS |
_
_
_
_
_
_
_
_
|
Constructing and operating a technical school in Pesquería, Mexico
Defining plans to build a second technical school in Santa Cruz, Brazil
Improving public technical schools' facilities along with the incorporation of advanced technology and tools such as computers, laboratory equipment and robotics
Reinforcing technical high school's content, including math, certified training, and technical internships and projects
Implementing STEM education programs in primary schools
Granting financial awards for academic performance for high school, undergraduate, and graduate students
Organizing cultural events including photography exhibitions, music events, and Latin American film festivals
Managing medical facilities in Mexico, carrying out vaccination campaigns based on local needs, and promoting a healthy lifestyle
| |
12,490
BENEFICIARIES OF EDUCATION PROGRAMS
| |||
94. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
ROLE OF EDUCATION
On June 10th, the yearly Education Day took place. César Jiménez, Ternium Mexico President, led the event attended by over 600 people.
|
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
95
|
THE IMPACT OF CREATING NEW LEARNING ENVIRONMENTS | |
In 2022, the project to redesign the common areas of ETRR began, aiming to accommodate a larger number of participants in educational activities following the expansion of our learning initiatives to the wider community.
The new spaces are designed to encourage creativity, collaboration, and the inclusion of
|
students, teachers, and professionals from the community who take courses at the ETRR.
The project includes the revamping of underutilized common areas, administrative offices, and green spaces on campus and incorporating technology tools to improve the learning experience. The project is expected to be completed by 2025.
|
$3.6
MILLION INVESTED IN 2022 IN THE ETRR IN PESQUERIA
|
480
STUDENT CAPACITY ONCE THE PROJECT IS COMPLETED
|
96. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
Mechatronics Project Workshop: Student Operating Robotic Arm with Advanced Vision System at ETRR Pesquería, Mexico.
|
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
97
|
RESPONDING TO THE GROWING NEED FOR TECHNICAL EDUCATION | |
In early 2023, Ternium announced its plan to build a technical school in Santa Cruz, Brazil, near its slab production facility. The goal is to provide advanced technical education to over 600 young people in the community. The school's curriculum will focus on providing industry-specific skills and knowledge to equip students for successful careers in the manufacturing industry. With a proximity to Ternium's production plant, the school will provide practical training opportunities and access to real-world experience.
The Technical School is expected to become operational in 2025 and will serve as a significant step in Ternium's commitment to promoting education and human development in the countries where it operates. The company's investment in education is a testament to its belief in the importance of empowering local communities with the tools and knowledge necessary for their successful development.
With this new initiative, Ternium seeks to help bridge the skills gap and provide a pathway for future professionals in the manufacturing industry.
| |
$7.2
MILLION INVESTED IN 2022 IN THE TECHNICAL SCHOOL PROJECT IN BRAZIL
| |
98. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
99
|
Technical Gene Program Empowers Students
Ternium equips public technical schools with technology classrooms, robotics labs, and computing & design facilities to enhance students' learning, connectivity and technical skills.
|
100. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
Investment in educational programs: Ternium invested $18 million in 2022 to boost technical education and school infrastructure.
|
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
101
|
AFTER SCHOOL PROGRAM | |
In 2022, the College Board tests were conducted in Ramallo, Argentina to evaluate the preparedness of students in their final year of primary school for the challenges of high school. The results of the tests revealed a significant improvement compared to the previous year, with a 2% increase in math proficiency and a 10% increase in Spanish proficiency among the students. The Roberto Rocca After School program plays an important role in equipping students with the necessary skills to tackle academic challenges and in its continuous improvement.
| |
IMPROVEMENTS
IN MATH PROFICIENCY AND LITERACY OF YOUNGSTERS YEAR-ON-YEAR
| |
102. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
103
|
"Opera in Concert"
The 2nd event of Cultura Ternium, in San Nicolás, Argentina, featured a selection from La Traviata. The director engaged the audience with narrative details and anecdotes, enhancing the immersive experience.
|
104. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
Volunteers in Action: Harnessing Collective Power to Positively Impact Everyone Involved
|
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
105
|
to the Crisis in Ukraine
106. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
Back on track
After two years of accumulating "virtual kilometers" due to the pandemic, the 10K Ternium Marathon was resumed in 2022 in the city of San Nicolás, Argentina, with hundreds of participants.
|
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
107
|
KEY FIGURES |
INVESTMENTS IN COMMUNITY PROGRAMS
$ MILLION
|
TECHNICAL GENE PROGRAM
# OF PARTICIPANTS
|
ROBERTO ROCCA SCHOLARSHIPS PROGRAM
# OF SCHOLARSHIPS
|
VOLUNTEERING PROGRAM
# OF PARTICIPANTS
|
108. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
STRENGTHENING OUR
VALUE CHAIN
| |
SUSTAINABLE DEVELOPMENT GOALS | |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
109
|
GOALS & ACTIONS | KPIs | ||
GOALS
|
_
_
_
_
_
|
Improve the competitiveness of Ternium's value chain with focus on productivity
Foster an efficient import substitution
Strengthen the export capacity of small and medium-sized enterprises (SMEs)
Promote investments and the increase of SMEs´ productive capacity
Accompany the sustainable development of SMEs´ activities
|
+2,000
COMPANIES PARTICIPATED
IN THE PROPYMES PROGRAM
IN 2022
|
5,300
PARTICIPANTS IN TRAINING COURSES
| |||
ACTIONS |
_
_
_
_
_
_
|
Developing specific training courses tailored to the needs of SMEs in collaboration with prestigious local institutions
Fostering the execution of industrial and product quality projects
Collaborating in identifying business opportunities and expanding markets
Providing financial assistance for the development of improvement projects related to productivity and collaborate in order to achieve access to financing lines for the industry through local financial institutions
Creating collaborative work environments that encourage productive debates among industrials and regional authorities
Developing a specific agenda focused on sustainability topics and knowledge exchange
| |
+94,400
TRAINING HOURS DELIVERED
| |||
$11.6
MILLION GRANTED FOR
DIRECT AND INDIRECT FINANCIAL ASSISTANCE
| |||
45
TECHNICAL SCHOOLS SPONSORED UNDER
THE PROPYMES TECHNICAL
GENE PROGRAM
| |||
110. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
AND BOOSTS THE INDUSTRY'S VALUE CHAIN
the PropPymes Program has expanded and consolidated,
and today it benefits over
2,000 SMEs.
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
111
|
ProPymes in motion: Working together with Argentine local metallurgical manufacturer Crucianelli Group in Argentina.
|
112. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
to SMEs. It caters to three levels: executives and managers, middle management and supervisors, and operators and technicians
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
113
|
ENHANCE SUSTAINABILITY ACROSS OUR VALUE CHAIN | |
In 2022, ProPymes carried out its first "Sustainability in the Value Chain" program. This program was delivered by professionals from the Buenos Aires Institute of Technology (ITBA). It attracted 29 participants representing 25 small and medium-sized enterprises (SMEs) from Ternium's or its related companies' value chains. The main objective of the training program was to introduce sustainability tools specifically designed for SMEs.
The participants learned about effective environmental management in the industry, environmental licenses, and the ISO certification process. They also gained an understanding of the challenges arising from climate change in their sector and developed strategies to address these challenges.
|
The program emphasized the importance of adopting a proactive sustainability agenda. It explored the potential of the circular economy and encouraged participants to take actions that contribute to continuous improvement as a way to generate added value for their businesses.
|
25
PARTICIPATING COMPANIES
|
5
ONLINE MODULES
|
114. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
TERNIUM'S COLLABORATION FOR COIL TRANSPORTATION INNOVATION
| |
Through the ProPymes program in Mexico, Ternium actively participated in the development of a specialized coil transportation platform in collaboration with the Automotive Cluster of Nuevo León (CLAUT) along with two logistics services companies. This innovative platform enables the transportation of 35-ton coils.
Known as the "Big Coil," this new trailer model revolutionizes the efficiency of coil transportation, especially for the heavier coils produced at Ternium's new hot rolling mill in Pesquería. By reducing the number of trips required, this solution not only increases efficiency but also contributes to a significant reduction in CO2 emissions.
This initiative showcases Ternium's commitment to sustainability while also paving the way for small and medium-sized enterprises to access new markets. It represents a successful collaboration between different stakeholders to address industry challenges and promote sustainable solutions.
| |
6
SMEs COMPANIES
PRODUCE THE NEW PLATFORM
|
35
TONS
COIL WEIGHT
|
and Argentina.
it was recognized as one of the SME of the Year at the annual ProPymes event in Mexico.
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
115
|
21st ProPymes Seminar in Argentina
At the 21st edition of the ProPymes seminar in Argentina, Ternium's management shared their vision about the future of industrial sector in Argentina with program-affiliated companies.
|
116. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
EXPOAGRO FAIR IN ARGENTINA | |||
Ternium supports local organizations and events that
foster technological advancements and promote
the adoption of sustainable production practices
in its target markets. Recently, the company sponsored an award during the ExpoAgro fair in Argentina. The award recognizes innovative projects focused on boosting productivity and operating in an
environmentally sustainable manner.
|
The award ceremony was held as part of the larger ExpoAgro event organized by the agribusiness sector. This sector plays a significant role in the country's GDP and accounted for 9% of Ternium's shipments in Argentina in 2022. Ternium's sponsorship of such initiatives reflects its commitment to driving progress and sustainability in the industries it serves.
| ||
+100
THOUSAND PEOPLE
ATTENDED THE EVENT
|
70
PROJECTS COMPETED
FOR THE AWARD
| ||
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
117
|
KEY FIGURES |
SPONSORED TRAINING COURSES FOR SMEs
# OF ATTENDANTS AND TRAINING HOURS /PER YEAR
|
PROPYMES' FINANCIAL ASSISTANCE
$ MILLION
|
PROPYMES' SPONSORED INDUSTRIAL PROJECTS
#
|
PROPYMES' SPONSORED TECHNICAL SCHOOLS
# OF SCHOOLS
|
COVID-19 pandemic.
118. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
COMMITMENT
TO INTEGRITY
| |
SUSTAINABLE DEVELOPMENT GOALS | |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
119
|
GOALS & ACTIONS
| KPIs | ||
GOALS
|
_
_
_
_
_
_
_
_
|
Ensure compliance with the law as a guiding principle in all relationships at Ternium
Guarantee transparency in information and decision-making processes
Enhance ethical behavior and promote compliance within the company
Encourage employees to act fairly, loyally, and honestly, in line with Ternium's core values
Mitigate risks associated with specific functions, countries and governments, and third-party transactions
Ensure that the behavior of Ternium's business partners aligns with the company's sustainability values and principles
Promote the responsible and conscientious use of assets
Safeguard information and assets through a robust cybersecurity program
|
62
TRAINING SESSIONS ON BUSINESS CONDUCT POLICY
(2022).
|
99.6%
OF ELIGIBLE EMPLOYEES ACKNOWLEDGED THE CODE OF CONDUCT & POLICY ON BUSINESS CONDUCT (2022)
| |||
99.4%
ELIGIBLE EMPLOYEES RECEIVED A TRAINING COURSE ON THE POLICY ON BUSINESS CONDUCT (2022)
| |||
ACTIONS |
_
_
_
_
_
_
_
_
|
Creating and periodically updating the company's Business Conduct program aimed at training executives or individuals in positions assessed for risk regarding the expected conduct by the company Collaborating with Ternium University in developing and updating e-learning and training courses on the Code of Conduct and Policy on Business Conduct for Ternium's employees Designing and regularly updating of a risk matrix, considering the nature of functions, operating country, and affiliated third parties Annually executing SOX audits and internal compliance control procedures Establishing policies and procedures to avoid purchases of conflict minerals Developing standards and approval procedures for services contracted to third parties Regularly reporting of the audit committee to the Board of Directors Implementing a comprehensive cybersecurity program to ensure the protection of information, including personal data of Ternium employees and third parties, as well as the company's assets | |
47%
SUBSTANTIATION RATE
IN THE COMPLIANCE LINE
(2022)
| |||
8
CYBERSECURITY INCIDENTS DETECTED AND CONTAINED
(2022)
| |||
120. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
121
|
Employment requirement: Embracing and complying with Ternium's Code of Conduct and Business Conduct Policy.
|
122. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
SELECT CODES | SELECT POLICIES | SELECT PROCEDURES |
Code of Conduct
---
Code of Conduct
for Suppliers
---
Code of Ethics for Senior
Financial Officers
|
Business Conduct
---
Transparency
---
Anti-Fraud
---
Securities Trading
---
Financial and Accounting Controls
---
Personal Data Protection
|
Disclosure Procedure
(relevant information)
---
Transactions Between
Related Parties
|
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
123
|
124. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
125
|
126. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
of Conduct and other policies.
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
127
|
128. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
BOARD OF DIRECTORS AND EXECUTIVE OFFICERS |
Board of Directors
|
Executive Officers
| ||
Chairman
|
Paolo Rocca
|
Chief Executive Officer
|
Máximo Vedoya
|
Vice-Chairman
| Daniel A. Novegil | Chief Financial Officer |
Pablo D. Brizzio
|
Roberto Bonatti | Ternium Mexico |
César A. Jiménez Flores
| |
Carlos A. Condorelli | President | ||
Vincent R. Gilles Decalf (*)
| |||
Gioia M. Ghezzi (*)
| Ternium Argentina |
Martín A. Berardi
| |
Lorenza Martinez Trigueros(*)
| President | ||
Gianfelice M. Rocca | |||
Ternium Brasil |
Titus F. Schaar
| ||
President | |||
Secretary | Arturo Sporleder | ||
International Business Unit |
Héctor Obeso Zunzunegui
| ||
President
| |||
Audit Committee
|
Chief Planning Officer
|
Oscar Montero Martínez
| |
Chairman
|
Vincent R. Gilles Decalf (*)
|
Chief Industrial and
|
Pablo H. Bassi
|
Gioia M. Ghezzi (*)
|
Engineering Officer
| ||
Lorenza Martinez Trigueros(*)
| |||
Chief Technology Officer |
Carlos Polidori
| ||
(*) Independent Directors
| |||
Chief Information Officer |
Roberto Demidchuk
| ||
Chief Human Resources |
Rodrigo Piña
| ||
Officer
| |||
Vicepresident Global EHS | Marina Chiesa | ||
THE COMPANY |
ENVIRONMENTAL
SOCIAL
GOVERNANCE
| ANNEXES |
129
|
INVESTOR INFORMATION |
Global Investor Relations
and Compliance Senior Director
|
IR Inquiries
|
Sebastián Martí
|
TERNIUM Investor Relations
|
smarti@ternium.com
|
ir@ternium.com
|
Phone: +54 11 4018 8389 | |
U.S. toll free: 866 890 0443
| |
Luxembourg Office
|
ADS Depositary Bank
|
26, Boulevard Royal - 4th floor
| BNY Mellon |
L2449 - Luxembourg
| Computershare |
Luxembourg
| P.O. Box 43078 |
Phone: +352 2668 3152
| Providence, RI 02940-3078 |
Stock Information
| |
New York Stock Exchange (TX)
| |
CUSIP Number: 880890108
| |
Internet
| |
www.ternium.com
|
132. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
ANNEX 1:
GRI, SASB & TCFD INDEXES
|
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
133
|
GRI CONTENT INDEX |
134. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
Statement of use | Ternium has reported the information cited in this GRI content index for the period January 1st 2022 to December 31st 2022 with reference to the GRI Standards. |
GRI 1 used | GRI 1: Foundation 2021 |
TOPIC | DISCLOSURE | DISCLOSURE TITLE | PAGES |
GRI 2: General Disclosures 2021 | |||
The organization and its reporting practices
| 2-1 | Organizational details | 118 |
2-2 | Entities included in the organization's sustainability reporting | 20-F 2022 F-14 | |
2-3 | Reporting period, frequency and contact point |
Year 2022, annual 129 | |
2-4 |
Restatements of information
Except for the specific indicators mentioned, the information has not undergone any restatements.
| 143 | |
2-5 |
External assurance
The data referred to GHG emissions under the worldsteel methodology and GHG Protocol has been verified by a third party. The results are available on Ternium's website at https://investors.ternium.com/English/ternium/financial-information/default.aspx | ||
Activities and workers | 2-6 | Activities, value chain and other business relationships |
14-108 20-F 2022 - 25 |
2-7 | Employees | 80-147 | |
2-8 | Workers who are not employees | 147 | |
Governance | 2-9 | Governance structure and composition |
118 20-F 2022 - 88 |
2-10 | Nomination and selection of the highest governance body | 20-F 2022 - 88 | |
2-11 |
Chair of the highest governance body
The chairman is not a senior executive in the organization
| 128 | |
2-12 | Role of the highest governance body in overseeing the management of impacts |
118 20-F 2022 - 88 | |
2-13 | Delegation of responsibility for managing impacts |
118 20-F 2022 - 88 | |
2-14 |
Role of the highest governance body in sustainability reporting
Ternium's Sustainability Report is approved by the company's CEO
| ||
2-15 | Conflicts of interest |
118 20-F 2022 - 94 | |
2-16 | Communication of critical concerns | 20-F 2022 - 94 | |
2-17 | Collective knowledge of the highest governance body | 20-F 2022 - 88 | |
2-19 | Remuneration policies | 20-F 2022 - 93 | |
2-20 | Process to determine remuneration | 20-F 2022 - 93 | |
Strategy, Policies
and Practices
| 2-22 | Statement on sustainable development strategy | 8 |
2-23 |
Policy commitments
Ternium's policies are available at: www.ternium.com/en/company/policies
| 63-79 | |
2-24 | Embedding policy commitments | 8 | |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
135
|
TOPIC | DISCLOSURE | DISCLOSURE TITLE | PAGES |
2-26 |
Mechanisms for seeking advice and raising concerns
A confidential channel to report possible irregularities is available at: www.ternium.com/en/compliance-line
| 118 | |
2-28 | Membership associations | 20-F 2022 - 88 | |
Stakeholder engagement | 2-29 | Approach to stakeholder engagement | 8-133 |
2-30 | Collective bargaining agreements | 147 | |
Topic Standards | |||
Economic | GRI 201-1 | Direct economic value generated and distributed | 32 |
GRI 202-2 | Proportion of senior management hired from the local community | 80-149 | |
GRI 203-1 | Infrastructure investments and services supported | 92-151 | |
Ethic and integrity | GRI 205-2 | Communication and training about anti-corruption policies and procedures | 118-151 |
Environmental | GRI 301-2 | Recycled input materials used | 38-52-145-146 |
GRI 302-3 | Energy intensity | 38-144 | |
GRI 303-1 | Interactions with water as a shared resource | 52-145 | |
GRI 303-2 | Management of water discharge-related impacts | 52-145 | |
GRI 303-3 | Water withdrawal | 52-145 | |
GRI 303-5 | Water consumption | 52-145 | |
GRI 305-1 | Direct (Scope 1) GHG emissions | 38-144 | |
GRI 305-2 | Energy indirect (Scope 2) GHG emissions | 38-144 | |
GRI 305-3 | Other indirect (Scope 3) GHG emissions | 38-144 | |
GRI 305-4 | GHG emissions intensity | 38-144 | |
GRI 305-7 | Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions | 38-145 | |
GRI 306-3 | Waste generated | 52-145-146 | |
GRI 306-4 | Waste diverted from disposal | 52-145-146 | |
GRI 306-5 | Waste directed to disposal | 52-145-146 | |
Social | GRI 401-1 | New employee hires and employee turnover | 150 |
GRI 403-1 | Occupational health and safety management system | 64-150 | |
GRI 403-2 | Hazard identification, risk assessment, and incident investigation | 64-150 | |
GRI 403-4 | Worker participation, consultation, and communication on occupational health and safety | 64-150 | |
GRI 403-5 | Worker training on occupational health and safety | 64-150 | |
GRI 403-6 | Promotion of worker health | 64-92-150 | |
GRI 403-7 | Prevention and mitigation of occupational health and safety impacts directly linked by business relationships | 64-150 | |
136. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
TOPIC | DISCLOSURE | DISCLOSURE TITLE | PAGES |
GRI 403-8 | Workers covered by an occupational health and safety management system | 64-150-151 | |
GRI 403-9 | Work-related injuries | 64-150 | |
GRI 404-1 | Average hours of training per year per employee | 80-149 | |
GRI 404-2 | Programs for upgrading employee skills and transition assistance programs | 80 | |
GRI 404-3 | Percentage of employees receiving regular performance and career development reviews | 80-149 | |
GRI 405-1 | Diversity of governance bodies and employees | 80-147 | |
GRI 413-1 | Operations with local community engagement, impact assessments, and development programs | 92-151 |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
137
|
SASB IRON & STEEL PRODUCERS CONTENT INDEX |
TOPIC | ACCOUNTING METRIC | CODE | PAGES |
Greenhouse Gas Emissions | Gross global Scope 1 emissions, percentage covered under emissions-limiting regulations | EM-IS-110a.1 | 38-144 |
Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets | EM-IS-110a.2 | 12-38 | |
Air Emissions | Air emissions for the following pollutants: (1) CO, (2) Nox (excluding N2O), (3) SOx, (4) particulate matter (PM10), (5) manganese (MnO), (6) lead (Pb), (7) volatile organic compounds (VOCs), and (8) polycyclic aromatic hydrocarbons (PAHs) | EM-IS-120a.1 | 52-144 |
Energy Management | 1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable | EM-IS-130a.1 | 38-52-144 |
(1) Total fuel consumed, (2) percentage coal, (2) percentage natural gas, (3) percentage renewable | EM-IS-130a.2 | 38-144 | |
Water Management | (1) Total fresh water withdrawn, (2) percentage recycled, (3) percentage in regions with High or Extremely High Baseline Water Stress | EM-IS-140a.1 | 52-145 |
Waste Management | Amount of waste generated, percentage hazardous, percentage recycled | EM-IS-150a.1 | 145 |
Workforce Health & Safety | (1) Total recordable incident rate (TRIR), (2) fatality rate, and (3) near miss frequency rate (NMFR) for (a) full-time employees and (b) contract employees | EM-IS-320a.1 | 64-150 |
Supply Chain Management | Discussion of the process for managing iron ore and/or coking coal sourcing risks arising from environmental and social issues | EM-IS-430a.1 | 20-F 2022 - 14 |
ACTIVITY METRIC | CODE | PAGE |
Raw steel production, percentage from: (1) basic oxygen furnace processes, (2) electric arc furnace processes | EM-IS-000.A | 47 |
Total iron ore production (1)
| EM-IS-000.B | |
Total coking coal production (2)
| EM-IS-000.C | N/A |
(1) 3.5 million tons in 2022 (2) Coking coal and other metallurgical coals are externally supplied. |
138. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
TCFD CONTENT INDEX |
DISCLOSURE | PAGES | |
Governance | a) Describe the board's oversight of climate-related risks and opportunities. | 38-118 |
b) Describe management's role in assessing and managing climate-related risks and opportunities. |
38-118 20-F 2022, 9, F-38 | |
Strategy | a) Describe the climate-related risks and opportunities the organization has identified over the short, medium and long term. | 38 |
b) Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning. |
38 20-F 2022, 9, F-38 | |
c) Describe the resilience of the organization's strategy, taking into consideration different climate-related scenarios, including a 2˚C or lower scenario. | 38 | |
Risk Management | a) Describe the organization's processes for identifying and assessing climate-related risks. | 12-38-118 |
b) Describe the organization's processes for managing climate-related risks. | 12-38-118 | |
c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management. | 12-38-118 | |
Metrics and Targets | a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. | 12-38-144 |
b) Disclose Scope 1, 2 and, if appropriate, Scope 3 GHG emissions, and the related risks. | 38-144 | |
c) Describe targets used by the organization to manage climate-related risks and opportunities and performance against targets. | 12-38 | |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
139
|
ANNEX 2:
UN SUSTAINABLE DEVELOPMENT
GOALS INDEX
|
140. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
OUR COMMITMENT TO SUSTAINABLE DEVELOPMENT GOALS
"We reaffirm our commitment to the UN Global Compact Initiative and to continue integrating its principles into the company's strategy, culture and day-to-day operations."
Máximo Vedoya, CEO.
|
GOAL | TARGET | SOME SPECIFIC ACTIONS | PAGE |
Supporting nearby communities' access to basic services in times of adversity while reducing vulnerable individuals' exposure to economic, political and social crises | |||
1.4 | Contribution to TECHO's housing project in Argentina addressing poverty in settlements (605 houses, 72 tons of steel) | ||
1.5 | Donation of $200,000 to Ukraine in response to its humanitarian crisis | 92 | |
Promoting our people's health and well-being by means of preventive initiatives and concrete actions | |||
3.1 | Campaigns against breast cancer and introduction of breast reconstruction surgery service among employees in NOVA | ||
3.4 | Establishment of a COVID-19 pandemic-driven psychological support hotline for employees in Mexico | ||
3.5 | Online training on prevention and treatment of substance abuse for operators in Argentina | ||
3.8 | Efforts to achieve greater medical coverage: operation of Hospital Clínica Nova in Monterrey and Clínica Aquila in the mining region of Michoacán with IMSS; influenza and COVID vaccination campaigns among our employees | 92 | |
3.d | Preventive campaigns about recurrent diseases; post-pandemic effects and cases survey, treatment and follow-up | ||
Directing a significant portion of Ternium's community investments towards education, as a catalyst for equal opportunities and individual and social progress | |||
4.1, 4.5, 4.c | $18 million invested in educational programs in the communities where the company operates in 2022 | 92 | |
4.1, 4.3, 4.4, 4.a | Educational projects: announcement of the construction of a new RR Technical School in Santa Cruz, Brazil and continuation of RR Technical Gene and Volunteering Program, improving schools in Mexico, Argentina, and Brazil | 92 | |
4.6 | Continuity of RR After School Initiative, with increases in math and Spanish proficiency levels | 92-108 | |
4.b | Grants of RR Scholarships: 185 high school students and 100 university students involved in 2022 | 92 | |
4.c | Strong emphasis in providing continuous learning opportunities for teachers | 92 | |
Valuing the diversity of its employees and contributing to the empowerment of women | |||
5.1, 5.2 | Inclusive work environment framework: commitment To WEPs, Diversity and Work Environment and Free of Harassment Policy and Human Rights Policy, establishment of an anonymous reporting line: Compliance Line, continuity of Diversity+ Program and Lean In Circles, implementation of the Flexible Program and paid leave for recent parents and caregivers | 80 | |
5.5 | Progress in increasing women's representation in managerial positions and in the BoD | 80 | |
Ensuring the efficient use of this key natural resource by developing a site-specific strategy according to its availability and supporting nearby communities during water shortage | |||
6.1 | Response to a water shortage in Nuevo León, Mexico: wells transferred for public use, water donated for domestic use in communities surrounding our main facilities | 52 |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
141
|
GOAL | TARGET | SOME SPECIFIC ACTIONS | PAGE |
6.3 | Water quality improvements in San Nicolás site in Argentina | 52 | |
6.4 | Efficient design of water-use circuit: 100% closed circuit in Colombia, use of sewage water in Mexico, low water intensity rate per ton of crude steel in Mexican facilities | 52 | |
6.6 | Active involvement in reforesting and restoration of fire and landslide-affected areas. Intervention in projects to study and improve land and marine biodiversity | 52 | |
Enhancing operational energy efficiency and increasing renewable energy utilization | |||
7.2 | Renewable energy projects: upcoming wind farm project to replace purchased electricity in Argentina smaller on-site projects of solar energy | 12-38 | |
7.2, 7.3 | Advancing Ternium's Energy Efficiency Program. Progress in the process of certifying the main plants under ISO 50001 | 12-38 | |
Promoting sustainable economic growth and productive employment | |||
8.1 | Sustained economic growth: increase of 27% in EBITDA in the last 5 years; over 20,500 employees | 16-18 | |
8.2 | Economic productivity achievements through strategic initiatives: state-of-the-art hot rolling mill and R&D center in Pesquería, downstream and upstream project announcements in Pesquería, increased participation in Usiminas' control group, technology development and employee skill enhancement | 18-30 | |
8.3, 8.a | Empowered SMEs within its industry's value chain via the ProPymes Program | 108 | |
8.4 | Decoupling economic growth from environmental degradation: 99% material efficiency rate in steel operations, 27% of steel scrap per ton of crude steel, increased co-product utilization, waste water reuse | 52 | |
8.6 | Boosting students' interest in pursuing industrial careers via ETRR, Technical Gene and AfterSchool Program | 92 | |
8.8 | Promoting a safe working environment: Occupational H&S Policy, H&S Management System, use of technology for the detection of unsafe actions and tools to reject unsafe tasks | 64 | |
Building resilient infrastructure and fostering innovation | |||
9.3 | Financial assistance through the ProPymes program: promotion of investments to improve productivity and increase the installed capacity of SMEs for more than 20 years | 108 | |
9.4 | Infrastructure upgrades: downstream project in Pesquería: hot-dip galvanizing line, cold rolling mill, push-pull pickling line, new logistics center in San Nicolás facility in Argentina, projects for environmental improvements. Investment of $18 million in 2022 to boost technical education and school infrastructure | 18-30-38-52 -92 | |
9.5, 9.b | Expansion of R&D center in Pesquería, Mexico, with an investment of $16 million in 2022 | 18 | |
Reducing inequalities based on education, health and integration projects | |||
10.2 | Social inclusion initiatives: educational programs covering the entire school cycle; health services: Hospital Comunitario at Clínica NOVA and Clínica AQUILA in Mexico | 92 | |
10.3 | Equal opportunity workplace through: disability inclusion program in Argentina, opportunities committee, lean in circles, usage of bias-free recruitment technology, maternity mentoring, updated parent leave, compliance line | 80-118 | |
10.b | Encouragement to SMEs to grow though Propymes programs, with direct financial assistance and as a link with banks | 108 | |
Promoting resilient and sustainable cities and human settlements, envisioning steel as a vital component of the circular economy | |||
11.1 | Project for renovating plant peripheries in Nuevo León (with Placemaking Foundation and Green Agreement for Monterrey) | ||
11.4 | Protection and promotion of cultural heritage of Ternium´s communities: Nuevo León Photo Library, Ternium´s Latin American Film Festival and musical events | 92 |
142. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
GOAL | TARGET | SOME SPECIFIC ACTIONS | PAGE |
11.6 | Implementation of measures to reduce negative environmental impact in water, air and waste issues | 52 | |
Taking a proactive approach to sustainable consumption and production | |||
12.2 | Circular economy: sale of co-products to other industries, recycling of all steel scrap from production processes and scrap purchased from third parties, sale of granulated slag generated in the blast furnaces to the cement industry, cleaning of recovered gases from coke and blast furnace batteries used to generate energy | 38-52 | |
12.4 | Management of waste in accordance with the regulations of the countries where Ternium operates | 38-52 | |
12.6 | Integration of ESG info in its Sustainability Report and encouragement of its value chain to take appropriate actions | 108 | |
Taking action towards climate change and its impacts | |||
13.1 | Identification and assessment of risks related to climate change and development of action plans by the CRC | 38 | |
13.2 | Integration of climate change measures into its strategy: quarterly BoD surveillance, scenario analysis and project evaluations, associated plans for 20% emission intensity reduction by 2030 | 12-38 | |
13.3 | Improved employee awareness on environmental topics through Ternium University | 80 | |
13.a | Investment in climate change related projects of $19 million in 2022 | 38 | |
13.b | Promotion of environmental discussion in the value chain supported by ProPymes Environment program | 108 | |
Conserving and sustainably using water, preserving the surrounding flora and fauna | |||
14.1 | Water treatment plant improvement projects | 52 | |
14.2 | Ongoing study in Sepetiba Bay in Brazil focused on the dolphin boto cinza to monitor their health and behavior | 52 | |
Leading efforts and resources to protect and preserve biodiversity | |||
15.1, 15.2, 15.5 | Initiatives for conservation and restoration of ecosystems: donation of funds and trees to reforest areas of Chipinque Ecological Park and mining areas, as well as of steel products to support the recovery of the Iberá wetlands in Argentina | 52 | |
Promoting accountable and inclusive actions to long-term sustainability | |||
16.5 | Wide dissemination and implementation of its business conduct policy and program among employees | 118 | |
16.7 | Recognition as one of the best places to work for the LGBTQ+ community in Mexico for the third consecutive year | 80 | |
Strengthening the global partnership for sustainable development | |||
17.1 | Active engagement in Chambers and Associations (worlsteel, Alacero, Canacero) | 108 | |
17.6, 17.16, 17.17 | Establishing partnerships with other institutions: in education: throught ETRR Tech Gene program and ProPymes, in climate change: MoU with Vale and alliances with Tenova for the development of carbon capture equipment and hydrogen-based burners and in health: partnering with Humanitas to share medical expertise | 12-38-92-108 | |
17.19 | Reporting of economic, financial, environmental, social and governance indicators following international frameworks: GRI, SASB, TCFD and reporting on specific issues, such as climate change: CDP | 8- 132 |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
143
|
ANNEX 3:
HISTORICAL DATA
|
144. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
2020 | 2021 | 2022 | ||||||
ENVIRONMENTAL DATA | ||||||||
Environmental and Energy Management Systems
| ||||||||
% of employees and contractors working at ISO 14001 certificated facilities | 98 | % | 97 | % | 98 | % | (1) | |
% of crude steel produced under ISO 14001 certificated facilities | 100 | % | 100 | % | 100 | % | ||
% of crude steel produced under ISO 50001 certificated facilities | 63 | % | 63 | % | 84 | % | ||
Mining operations certified with ISO 14001 | % operations | 100 | % | 100 | % | 100 | % | (2) |
Investment in environment and decarbonization | $ million | 37.3 | 79.8 | 108.9 | ||||
Energy and Emissions (3)
GRI 302.3 / 305.1 / 305.2 / 305.3 / 305.4 / 305.7 - SABS EM-IS-110a.1 / EM-IS-120a.1 / EM-IS-130a.1 / EM-IS-130a.2
| ||||||||
Energy intensity | GJ/ton crude steel | 22.0 | 23.9 | 22.7 | ||||
Total energy consumed | TJ | 254,472 | 236,242 | |||||
% of grid electricity | 62 | % | 61 | % | ||||
Total fuel consumed | TJ | 204,565 | 195,316 | (4) | ||||
Coal | 64.0 | % | 70.8 | % | ||||
Natural gas | 26.0 | % | 28.8 | % | ||||
Renewable | 0.1 | % | 0.1 | % | ||||
Others | 10.0 | % | 0.3 | % | ||||
Emission intensity - scopes 1, 2 and 3 |
CO2 ton /ton crude steel
| 1.76 | 1.80 | 1.80 | (5) | |||
Direct emission intensity- scope 1 |
CO2 ton /ton crude steel
| 1.57 | 1.62 | 1.60 | ||||
Indirect emissions intensity related to electricity - scope 2 |
CO2 ton /ton crude steel
| 0.12 | 0.11 | 0.12 | ||||
Indirect emissions intensity related to raw materials - scope 3 |
CO2 ton /ton crude steel
| 0.08 | 0.07 | 0.08 | ||||
Direct emission - scope 1 |
CO2 million tons
| 15.3 | 17.2 | 16.6 | ||||
Indirect emissions related to electricity - scope 2 |
CO2 million tons
| 1.2 | 1.2 | 1.2 | ||||
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
145
|
2020 | 2021 | 2022 | |||||
ENVIRONMENTAL DATA | |||||||
Indirect emissions related to raw materials - scope 3 |
CO2 million tons
| 0.8 | 0.8 | 0.8 | |||
CO2 Capture and usage
|
CO2 million tons
| 0.2 | 0.2 | 0.3 | |||
Dust emissions - Particulate matter | Kg/ton crude steel | 0.22 | 0.22 | 0.24 | (6) | ||
Oxides of nitrogen (NOx) | Kg/ton crude steel | 0.74 | 1.21 | 0.79 | (6) | ||
Water Management (7)
GRI 303.3 / 303.5 - SABS EM-IS-140a.1
| |||||||
Total water intake | million m3 | 766.7 | 798.1 | ||||
Total water consumed | million m3 | 50.2 | 50.9 | ||||
Total water intake excluding power plants | million m3 | 178.6 | 157.0 | 159.7 | |||
surface water | 90 | % | 88 | % | 88 | % | |
groundwater | 6 | % | 6 | % | 6 | % | |
third-party water | 4 | % | 6 | % | 6 | % | |
Total water consumed excluding power plants | million m3 | 44.1 | 46.4 | ||||
Steelmaking sites water intake (excluding power plants) | million m3 | 149.6 | 151.1 | ||||
Steelmaking sites water intake intensity (excluding power plants) | m3/ ton crude steel | 17.6 | 14.1 | 14.5 | |||
Steelmaking sites water consumed (excluding power plants) | million m3 | 36.3 | 39.3 | 40.8 | |||
% of water intake in regions with high or extremely high baseline water stress | 11 | % | 11 | % | |||
% of water consumed in locations with high or extremely high baseline water stress | 27 | % | 33 | % | |||
Water Management at Mexican Facilities(8)
| |||||||
Water intake |
million m3
| 15.7 | 17.3 | 18.2 | |||
groundwater | 55 | % | 54 | % | 51 | % | |
third-party water | 45 | % | 46 | % | 49 | % | |
Fresh water |
million m3
| 11.7 | 11.8 | 12.3 | |||
Other water |
million m3
| 5.9 | 5.4 | 5.8 | |||
Internal treated and recycled water |
million m3
| 1.8 | 1.6 | 1.1 | |||
Water intensity |
m3/ ton crude steel
| 3.2 | 3.2 | 3.3 | |||
Materials and waste(9)
GRI 306.3 / 306.4 / 306.5 - SABS EM-IS-150a.1
| |||||||
Material Efficiency | 99.6 | % | 99.2 | % | 99.4 | % | (10) |
146. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
2020 | 2021 | 2022 | ||||
ENVIRONMENTAL DATA | ||||||
Steel scrap recycled | million tons | 2.6 | 3.1 | 2.8 | (11) | |
Recycled input materials used (steel scrap/new steel) | 27 | % | 29 | % | 27 | % |
Reused materials and co-products sold to third parties | million tons | 4.7 | 4.8 | 5.1 | ||
Blast Furnace slag to cement industry | million tons | 1.7 | 1.9 | 1.9 | ||
Mix Rock® & other mixes to cement industry | thousand tons | 99.0 | 128.4 | 137.1 | (12) | |
Mining waste (tailings) | million tons | 5.7 | 6.1 | 6.3 | (13) | |
Accumulated mining waste (tailings) | million tons | 85.6 | 91.7 | 98.0 | (13) | |
Total Waste | thousand tons | 110.4 | 174.7 | 102.5 | ||
Waste directed to disposal | thousand tons | 65.7 | 129.9 | 91.5 | ||
Non-hazardous waste | thousand tons | 54.9 | 115.3 | 81.2 | ||
Landfill | thousand tons | 54.9 | 115.3 | 81.2 | ||
Hazardous waste | thousand tons | 10.8 | 14.7 | 10.3 | ||
Incineration | thousand tons | 0.1 | 0.0 | 0.1 | ||
Landfill | thousand tons | 10.7 | 14.6 | 10.2 | ||
Waste diverted from disposal | thousand tons | 44.7 | 44.8 | 11.0 | ||
Non-hazardous waste | thousand tons | 43.1 | 38.2 | 5.8 | ||
Recycling | thousand tons | 41.1 | 37.5 | 5.0 | ||
Preparation for reuse | thousand tons | 2.0 | 0.7 | 0.8 | ||
Hazardous waste | thousand tons | 1.6 | 6.6 | 5.2 | ||
Recycling | thousand tons | 1.6 | 6.6 | 5.1 | ||
Preparation for reuse | thousand tons | 0.0 | 0.0 | 0.1 |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
147
|
2020 | 2021 | 2022 | ||||
SOCIAL DATA | ||||||
Headcount (14)
GRI 2-30 / 2-7 / 2-8 / 202.2 / 401.1 / 404.3 /405.1
| ||||||
Management | # of People | 1,265 | 1,329 | 1,401 | ||
Salaried | # of People | 2,344 | 2,344 | 2,461 | ||
Hourly | # of People | 15,059 | 14,927 | 15,183 | ||
Supervisors | # of People | 1,505 | 1,542 | 1,465 | ||
Total employees (full-time) | # of People | 20,173 | 20,142 | 20,510 | ||
Trainees (part-time) | # of People | 306 | 438 | 560 | ||
External employees (contractors and externals from headcount) | # of People | 15,107 | 15,929 | 14,454 | ||
Full time employees covered by collective bargaining agreements | 75 | % | 74 | % | 73 | % |
Diversity of governance bodies and employees (15)
GRI 405.1
| ||||||
Management by gender, age and nationality | ||||||
Female | 14 | % | 15 | % | 15 | % |
Male | 86 | % | 85 | % | 85 | % |
≤ 29 years old | 1 | % | 3 | % | 3 | % |
30 - 49 years old | 72 | % | 70 | % | 66 | % |
≥ 50 years old | 27 | % | 27 | % | 31 | % |
Argentine | 33 | % | 32 | % | 31 | % |
Brazilian | 12 | % | 12 | % | 12 | % |
Colombian | 4 | % | 4 | % | 4 | % |
Mexican | 44 | % | 45 | % | 46 | % |
Other Nationality | 8 | % | 7 | % | 7 | % |
Salaried by gender, age and nationality | ||||||
Female | 37 | % | 39 | % | 39 | % |
Male | 63 | % | 61 | % | 61 | % |
≤ 29 years old | 22 | % | 24 | % | 27 | % |
30 - 49 years old | 64 | % | 62 | % | 56 | % |
≥ 50 years old | 14 | % | 15 | % | 17 | % |
148. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
2020 | 2021 | 2022 | ||||
SOCIAL DATA | ||||||
Argentine | 17 | % | 16 | % | 16 | % |
Brazilian | 19 | % | 19 | % | 18 | % |
Colombian | 8 | % | 8 | % | 8 | % |
Mexican | 49 | % | 50 | % | 52 | % |
Other Nationality | 7 | % | 7 | % | 6 | % |
Hourly by gender, age and nationality | ||||||
Female | 2 | % | 3 | % | 3 | % |
Male | 98 | % | 97 | % | 97 | % |
≤ 29 years old | 23 | % | 21 | % | 20 | % |
30 - 49 years old | 60 | % | 62 | % | 62 | % |
≥ 50 years old | 17 | % | 17 | % | 18 | % |
Argentine | 30 | % | 28 | % | 28 | % |
Brazilian | 20 | % | 20 | % | 19 | % |
Colombian | 6 | % | 6 | % | 6 | % |
Mexican | 41 | % | 43 | % | 44 | % |
Other Nationality | 2 | % | 2 | % | 3 | % |
Supervisors by gender, age and nationality | ||||||
Female | 3 | % | 3 | % | 3 | % |
Male | 97 | % | 97 | % | 97 | % |
≤ 29 years old | 5 | % | 5 | % | 4 | % |
30 - 49 years old | 61 | % | 62 | % | 63 | % |
≥ 50 years old | 33 | % | 33 | % | 33 | % |
Argentine | 33 | % | 32 | % | 34 | % |
Brazilian | 11 | % | 10 | % | 11 | % |
Colombian | 6 | % | 5 | % | 6 | % |
Mexican | 47 | % | 48 | % | 45 | % |
Other Nationality | 4 | % | 4 | % | 4 | % |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
149
|
2020 | 2021 | 2022 | ||||
SOCIAL DATA | ||||||
GRI 405.1 | ||||||
At December 2022 the Board of Directors was composed of 9 members, 7 men, and 2 women, all over 50 years old. The distribution by nationality is the following: 3 of them are Italian citizens, 2 of them are Argentine citizens, 2 are Mexican citizens, 1 is a British & Italian citizen and 1 is a French and Luxembourg citizen. In December 2022, there were 11 executive officers, all of them male. In terms of the distribution by age, one of them was in the range between 30 and 49 years old, and the rest were over 50 years old. The composition by nationality is as follows: 9 of them are Argentine citizens, and 2 of them are Mexican citizens. | ||||||
Proportion of top management hired from the local community
GRI 202.2
| ||||||
Country | ||||||
Argentina | 100 | % | 100 | % | 100 | % |
Brazil | 58 | % | 55 | % | 58 | % |
Colombia | 33 | % | 33 | % | 0% | |
Mexico | 41 | % | 40 | % | 43 | % |
Average hours of training per year per employee (16)
GRI 404.1
| ||||||
Management | Hs/per year | 15 | 27 | 43 | ||
Salaried | Hs/per year | 25 | 36 | 42 | ||
Hourly | Hs/per year | 39 | 44 | 40 | ||
Supervisors | Hs/per year | 25 | 24 | 34 | ||
Total | Hs/per year | 36 | 40 | 40 | ||
Female | Hs/per year | 29 | 38 | 43 | ||
Male | Hs/per year | 36 | 40 | 40 | ||
Performance and career development reviews
GRI 401.1 / 404.3
| ||||||
Management & Salaried (M&S) | 96 | % | 93 | % | 90 | % |
Hourly | 36 | % | 33 | % | 34 | % |
Supervisors | 97 | % | 93 | % | 92 | % |
Upwardfeedback (M&S) | 95 | % | 96 | % | 97 | % |
Employees' satisfaction rate (M&S) | 85 | % | 76 | % | N/A | (17) |
150. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
2020 | 2021 | 2022 | ||||||
SOCIAL DATA | ||||||||
GRI 401.1 | ||||||||
Employee turnover for the year 2022 was 8%. Rate according to gender: 8% female, 9% male. Rate according to age: 11% under 30 years old and 7% in the categories 30-50 years old and over 50 years old. Rate according to the region: 8% Argentine, 9% Brazil, 19% Colombia, 6% Mexico and 8% other countries. | ||||||||
Health and Safety (18)
GRI 403.5 / 403.8 / 403.9 - SASB EM-IS-320
| ||||||||
Injuries frequency rate (IFR) | # injuries with and without lost days x 1Million/Hours worked | 2.71 | 2.63 | 2.22 | ||||
Employees | 2.61 | 2.83 | 1.97 | |||||
Contractors | 2.80 | 2.45 | 2.45 | |||||
Lost time injuries frequency rate (LTIFR) | # injuries with lost days x 1Million/Hours worked | 0.84 | 0.79 | 0.63 | ||||
Employees | 0.89 | 0.80 | 0.52 | |||||
Contractors | 0.78 | 0.78 | 0.73 | |||||
Fatalities | # | 0 | 0 | 1 | (19) | |||
Fatality frequency rate (FFR) | # fatalities x1Million/Hours worked | 0.00 | 0.00 | 0.01 | (19) | |||
Major Injury Frequency Rate (MIFR) | # major injuries x 1Million/Hours worked | 0.38 | 0.40 | 0.28 | ||||
Employees | 0.27 | 0.46 | 0.28 | |||||
Contractors | 0.48 | 0.34 | 0.27 | |||||
Near Miss Frequency Rate | # High Risk incidents x 1Milllion/Hours worked | 9 | 8 | 7 | ||||
Employees | 13 | 12 | 10 | |||||
Contractors | 5 | 4 | 4 | |||||
Safety training hours | # hours per year | 112,001 | 260,488 | 340,223 | ||||
Safety training hours participation | # of employees and contractors | 10,060 | 14,745 | 17,934 | ||||
Safety hours program walks | # of sessions | 142,269 | 139,085 | 195,231 | ||||
Safety hours program participation | # of employees and contractors | 1,891 | 2,017 | 2,515 | ||||
Ten Life-Saving Rules compliance audits | # per year | 26,778 | 23,177 | 30,452 | ||||
Health and Safety audits | # per year | 184,653 | 184,631 | 199,175 | ||||
Positive approaches | # per year | 100,236 | 115,950 | 144,298 | ||||
H&S System Coverage | % of employees and contractors | 100 | % | 100 | % | 100 | % | |
H&S System Coverage (internally audited) | % of employees and contractors | 100 | % | 100 | % | 100 | % | (20) |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
151
|
2020 | 2021 | 2022 | ||||||
SOCIAL DATA | ||||||||
H&S System Coverage (externally certified) | % of employees and contractors | 68 | % | 70 | % | 91 | % | (21) |
Investment in Health and Safety | $ million | 27 | 38 | 74 | ||||
Community
GRI 413.1
| ||||||||
Internship Hours | hours/Per year | 19,040 | 28,195 | 33,200 | ||||
Community Investments | $ million | 11.1 | 17.3 | 21.2 | (22) | |||
Education Investments | $ million | 2.9 | 4.8 | 18.0 | ||||
Technical Gene program - Teachers | # of Participants | 116 | 66 | 100 | ||||
Technical Gene program - Students | # of Participants | 319 | 4,432 | 4,655 | ||||
After school program participation | # of Students | 307 | 312 | 307 | ||||
Roberto Rocca Education Program (high school) | # of Scholarships | 763 | 804 | 789 | ||||
Roberto Rocca Education Program (undergraduate) | # of Scholarships | 361 | 369 | 387 | ||||
Roberto Rocca Education Program (PhDs) | # of Scholarships | 9 | 10 | 12 | ||||
Volunteering Program | # of volunteers | 218 | 262 | 1,390 | ||||
Volunteering Program | hours / per year | 3,352 | 1,256 | 17,998 | ||||
Small and Medium-sized Enterprises Program (ProPymes) (23)
GRI 413.1
| ||||||||
Small and medium-sized enterprises participation | # SMEs | 1,821 | 1,823 | 2,043 | ||||
Sponsored training courses | # attendants | 5,257 | 4,925 | 5,359 | ||||
Sponsored training courses | hours in class /per year | 72,909 | 95,851 | 94,462 | ||||
ProPymes sponsored technical schools | # of Schools | 43 | 45 | 45 | ||||
ProPymes sponsored industrial projects | # of Projects | 297 | 399 | 450 | ||||
Financial assistance - direct | $ million | 5.7 | 0.5 | 1.3 | ||||
Financial assistance - as link with banking institutions | $ million | 13.5 | 18.8 | 10.3 | ||||
Integrity
GRI 205.2
| ||||||||
Training sessions on Ternium's policy on business conduct | # sessions | 93 | 68 | 62 | (24) | |||
Training sessions on Ternium's policy on business conduct | # participants | 786 | 524 | 517 | (25) | |||
Acknowledgment and commitment to abide Ternium's Code of Conduct and Policy on Business Conduct | % eligible employees | 99.8 | % | 99.5 | % | 99.6 | % | |
Training course on the company's Policy on Business Conduct (e-learning) | % eligible employees | 99.1 | % | 99.0 | % | 99.4 | % | |
Compliance Line's substantiation rate | 53 | % | 52 | % | 47 | % | ||
152. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
THE COMPANY |
ENVIRONMENTAL SOCIAL GOVERNANCE | ANNEXES |
153
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154. TERNIUM_SUSTAINABILITY REPORT 2022
| CHAIRMAN´S LETTER | OUR SUSTAINABILITY JOURNEY |
www.ternium.com |
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Ternium SA published this content on 12 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 July 2023 21:00:09 UTC.