ArcelorMittal Environmental Policies - Case Study Example

ArcelorMittal-Shaping Responsibility on Environmental Grounds [City Name], [Date line] -- ArcelorMittal, a renowned name in the steel and mining sector has been on major sight of the public. The firm stands in the position of world’s fourth largest iron ore extractor, for which there are many expectations that have been set along with ArcelorMittal operation (ArcelorMittal, 2012). At times it has been seen that firms which mainly operate on natural resources are expected to meet high environmental obligations. And the firms like ArcelorMittal which are on high international recognition stand on the top of responsibility to meet such environmental pledges. This is what the authorities expect and so as the public which are central figures of any multinational firm like “ArcelorMittal” (ArcelorMittal, 2012). Being a leader in steel resourcing and mining, ArcelorMittal has set internal and external environmental standards. The stipulations include ISO14001 certifications, which is to ensure the health and safety in all the production zones (ArcelorMittal, 2007). The corporation has stood with the pledges by applying continuous improvement approach. Here the goal is to minimize environmental pollution hazards and to ensure worker safety at all the production level (ArcelorMittal, 2012). The corporation understands the meaning of being socially responsible for which it has declared a valuable environmental policy (ArcelorMittal, 2007). There are different programs being organized under the act of the policy, which are to assert environmental management on the highest administrative level (ArcelorMittal, 2007). With the notion of “sustainability” ArcelorMittal encourages domestic excess to raw materials and the standards ensure local attainment of raw materials (steel and iron). Under the environmental policy, the company comes on to reduce CO2 emissions and steel particles which are harmful for people working at the production site (ArcelorMittal, 2007). This is one answer by ArcelorMittal to the outer resistant world which persistently pressurizes ArcelorMittal on environmental grounds (ArcelorMittal, 2007). The facts project that there is a strong commitment which ArcelorMittal has shown environmental standards (ArcelorMittal, 2007). There are pledges to declare 100% safety and environmental friendliness, but a need is to adapt complete environmental practice, which has been the recent objective of ArcelorMittal administration, as the firm has been raising investments in new environmental management projects (ArcelorMittal, 2007). The interest of ArcelorMittal towards environmental management is projected by the investment the company makes on the annual EM (environmental management) projects. In 2007 statistics, the company invested US $500 million in the EM projects which included US $100 million investment on the blast furnace projects (ArcelorMittal, 2007). The project extended to three years operation which added dust collection facility with the blast furnaces. This provided technical prevention of waste and dust particles on the product sites. An analogous project investment was made in the Temirtau (Kazakhstan) plant and in Galati (Romania) steel plant to avoid the waste diffusion (SSI, 2008). Further investments include €18.5 million on Bremen plant, € 20 million on Aviles plant, and US $10 million on the USA plants in the de-dusting projects. The projects were effective in preventing the substance wastes like electrostatic precipitates in the power generation systems. It was a major technical effort of the company to reduce the most exhibited wastes in the steel refining zones (ArcelorMittal, 2007, pp.32). There are mega projects being organized on the basis of quarterly investments, which have brought technical facilitation in the production setup. The international projects on CO2 reductions and waste management are reflections of ArcelorMittal commitment. Meanwhile it can be assured that the company is present with the most flexible and diversified environmental management system (ArcelorMittal, 2007). There are projects in the water resource and waste management sections, which are further evidences of company’s internal side commitment (ArcelorMittal, 2012). “The ISO 14001 certification”, evidence that approves ArcelorMittal safer production zones. The policy got implemented in the year 2007 and was internally regulated from the Board of Directors of the company at the starting period of the year 2007. The certification brought an independent audit commission which replicated audits on the quarterly basis. The purpose of the audit was to ensure the environmental standards in all the certified production zones (ArcelorMittal, 2007). The internal operations are communicated by the Board of Directors, which are further accessed, measured and evaluated (controlled) by the independent audit commission. Is this the way ArcelorMittal progresses? Yes, because the balance between external commissioning and internal practices of the company shows that Mittal operates on eco-based production systems (ArcelorMittal, 2007). In the year 2007, a plan was set and regulated which was to certify the number of 127 sites of ArcelorMittal manufacturing (ArcelorMittal, 2007). This was all to bring a 99.99% implementation of environmental standards in the production zones. ArcelorMittal applies online exchange system that provides all the latest information to environmental managers. This is to exchange latest information on legal codes, across the border activities, changing technologies and modernized EM production systems, which are to meet standards on the highest international level (SSI, 2008). Under ArcelorMittal sustainability and growth objective, the company works in the area of waste management. The effort is all there to reduce the fiscal wastes, like in the year 2006 a residue of amount 517kg/ton was sent to recycling operation (ArcelorMittal, 2012). Recycling to ArcelorMittal means sending residues to other utilities including the areas of civil construction work, road repair or basement construction facility. This is how by recycling and effective waste management, ArcelorMittal comes out different in natural resource management and sustainability objective (SSI, 2008). Over the years ArcelorMittal adapts methods of scraped based production, which is 12% of overall company’s production facility. Scrap based EAF (electric arc furnace) emits 0.5t CO2/t steel which is 2t CO2/t in the regular steel production (ArcelorMittal, 2007). This indicates technical commitment of the company plants on environmental policy, as they are most adaptive and viable to come on to environmental standards and regulations (Environmental Leader, 2012). In a motive to sustain environmental resources like power generation and energy, ArcelorMittal admired sustainable product features (ArcelorMittal, 2007). The product specification includes lightweight steel which is sufficient to manufacture low weight cars (30% weight reduced). Light weight cars are highly fuel efficient and consume less natural resource (CO2 emissions-energy) to get manufactured (ArcelorMittal, 2012). Commitment to environmental pledges is validated by ArcelorMittal’s internal operations. There is reliance on sustainable production schemes, where the management and production staff is highly committed (ArcelorMittal, 2007). There is a projection that the company is on high sustainable manufacturing, which underpins environmental resource protection and cost reduction strategies at ArcelorMittal operations (ArcelorMittal, 2012). ArcelorMittal has been a world leader in the steel and mining sector. The company franchises in more than 50 countries across the globe, where the value chain is entirely based on sustainability objective (ArcelorMittal, 2012). The overview and insight developed concludes that ArcelorMittal is in a good place to meet environmental pledges, as the company has shown deep interest and action to assure environmental regulations (ArcelorMittal, 2007). Is this the way forward? The questioned gets answered when we come on to ArcelorMittal internal side of operation (ArcelorMittal, 2007). Reference List ArcelorMittal, 2007. Corporate Responsibility Report. Annual Report. ArcelorMittal. ArcelorMittal, 2007. Environmental Policy. [Online] Viewed at: [Accessed 20 December 2012]. ArcelorMittal, 2012. Company Profile. [Online] Viewed at: [Accessed 20 December 2012]. ArcelorMittal, 2012. Sustainability environment. [Online] Viewed at: [Accessed 20 December 2012]. Environmental Leader, 2012. ArcelorMittal USA Sustainability Report. [Online] Viewed at: [Accessed 20 December 2012]. SSI, 2008. Environmental Management Plan for the proposed upgrade of Vad System. Research report. Durban: Bohlweki SSI. World Steel Association, 2010. ArcelorMittal: Building sustainable supply chains in Brazil. Case Study. WSA. Read More