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Climate Action 
Report 1
May 2019
“ Our  ambition 
is to significantly 
reduce our  
carbon footprint.”


ARCELORMITTAL CLIMATE ACTION REPORT 2018
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“ Central to a successful 
transition will be supportive 
policy to ensure a global 
level playing field, access 
to renewable energy at 
affordable prices and 
access to finance.”

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Contents
SECTION 1
SECTION 2
SECTION 3
INTRODUCTION
CLIMATE ACTION REPORT
ANNEXES
02
04
41
 
 
 
02   Introduction from our  
04   Chapter 1: Our climate action at 
41  Annex 1: The steelmaking process
Chairman and CEO
a glance
44  Annex 2: Glossary
06   Chapter 2: The future of materials: 
growing, circular, sustainable
10   Chapter 3: The carbon challenge 
for steel 
14   Chapter 4: Low-emissions technology 
pathways and policy scenarios
20   Chapter 5: ArcelorMittal strategy 
towards low-emissions steelmaking
30   Chapter 6: Policy recommendations
32   Chapter 7: Carbon performance 
and targets
36   Chapter 8: Governance and risk
40   Chapter 9: Alignment with TCFD 
recommendations
About this report
Our reporting
This report outlines the analysis behind ArcelorMittal’s strategy 
Our portfolio of corporate reports aims to engage stakeholders 
on climate action, summarised in its Integrated Annual Review 
on material aspects of our financial and non-financial 
2018. As such it is the company’s first comprehensive response  performance. In addition to our statutory requirements, we 
to the recommendations of the TCFD for climate disclosures. 
publish an Integrated Annual Review and a Fact Book containing 
It reflects the views of the ArcelorMittal group in May 2019. 
in-depth data on our business. Our Basis of Reporting explains 
Data on ArcelorMittal’s carbon emissions are for financial years 
the methodology behind our metrics, and our Reporting Index 
up to and including 2018. All financial values given in dollars are  references a range of different frameworks we use in preparing 
US dollars, and those given in Euros are where funding has been  our reports. These reports can be downloaded from 
received in that currency. 
annualreview2018.arcelormittal.com
Integrated Annual 
Fact Book
Reporting Index
Basis of Reporting
Annual Report
20F
Review
 

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Introduction from our Chairman and CEO
Our work on low-emissions technologies underpins 
our ambition to significantly reduce our carbon 
footprint by 2050 in line with our commitment 
to the Paris Agreement.
Dear stakeholders,
Welcome to ArcelorMittal’s first Climate Action report.  Now that the unintended consequences of using 
We are publishing this because we understand the 
fossil fuels have become clear, the world needs to 
enormity of the climate challenge for society and the  find a new way of doing things that enables further 
responsibility of ArcelorMittal as an emitter of CO  
economic and social development while minimising 
2
to reduce our carbon footprint. We also acknowledge  environmental damage. Steel is prevalent in our 
the interest of our stakeholders in understanding how  society because it has a combination of properties 
we plan to do so and the requirement for additional 
that make it ideal for building much of the 
disclosure in line with TCFD. 
infrastructure we need. As the world continues to 
In December 2015, world leaders adopted the Paris 
develop, with an increasing population aspiring to 
Agreement, which aims to keep the global average 
achieve improved living standards, demand for steel 
temperature increase to well below 2ºC and pursue 
and materials generally is only expected to further 
efforts to hold the increase to 1.5ºC. Clearly, success  increase. Indeed, our forecast indicates demand 
will require unprecedented levels of coordination 
rising from 1.7 bil ion tonnes in 2018 to 2.6 bil ion 
on a global level. There are no borders in the sky, 
tonnes in 2050. 
so every region and country will need to make 
This means we need to significantly reduce the 
a meaningful contribution. 
carbon footprint of steel, which requires finding 
The industrialisation of the world has been powered by  new ways to make steel in a less emissions-intensive 
fossil fuels. In the steel industry this has involved using  process. Scrap, unfortunately, is not a sufficient 
coal-based products, such as coke, to reduce iron ore 
answer as there is not enough scrap available in the 
in the blast furnace. While steel may have a lower 
world to simply make all steel through the electric 
carbon intensity than many other materials, the large 
arc furnace process. 
volumes of steel produced globally mean that the 
industry emits over three gigatons of CO  annually.
2



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So, we need to develop breakthrough low-emissions 
This report does not have all the answers because 
steelmaking technologies. We are working on the 
we do not yet have all the answers. But as the world’s 
technologies for several potential pathways including 
leading steel company, we are committed to the 
circular carbon and clean power, and these underpin 
objectives of the Paris Agreement and I want to 
our ambition to significantly reduce our carbon 
reassure our stakeholders that we will do our best 
footprint by 2050. We are in the process of running 
to contribute effectively to a low-carbon world and, 
pilots of these different technologies at various plants  in doing so, help them manage their own risks 
in Europe, where regulation today is most advanced, 
and ambitions. 
and where we have an ambition to reach carbon 
 
neutrality by 2050. This work will enable us next year 
to publish a more specific 2030 reduction target. 
The suite of technologies we are developing gives us 
confidence that we are well positioned to align with 
Lakshmi N. Mittal,  
the science-based trajectory for our sector. But we 
Chairman and Chief Executive 
cannot solve the problem by ourselves. Central to 
May 2019
a successful transition will be supportive policy to 
ensure a global level playing field, access to renewable 
energy at affordable prices and access to finance. 
The dynamics of the global steel industry need to 
be fully understood, and support provided at levels 
similar to those which have enabled the growth of 
renewables in the energy sector. 

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1  Our climate action at a glance
ArcelorMittal’s readiness to advance the low-carbon 
economy can be seen throughout its operations, from 
the breakthrough technologies it is demonstrating to 
the solutions it offers its customers.
Circular carbon technologies
Clean power technologies
In 2018, we launched a €40 million Torero 
ArcelorMittal is exploring iron ore reduction technologies using 
demonstration project at Ghent, Belgium, to convert 
hydrogen and electrolysis, both of which could deliver significant 
120,000 tonnes of waste wood into biocoal for use in 
carbon reductions if powered with clean electricity. In March 2019, 
iron ore reduction in place of fossil fuels. The technology 
we launched a €65 million pilot project in Hamburg, Germany to 
has the potential to work with a variety of society’s 
test hydrogen steelmaking on an industrial scale, with an annual 
waste streams. We’ve also been running an industrial 
production of 100,000 tonnes of steel. At the same time, we 
pilot of IGAR technology in Dunkirk, France since 2017 
have been exploring direct iron ore reduction using electrolysis 
to reform waste carbon gases so they too can be reused 
for a number of years. We lead the EU-funded Siderwin project, 
for iron ore reduction. Both technologies will reduce the 
which is now constructing an industrial cell to pilot the technology. 
amount of coal and coke needed in the blast furnace 
 See chapter 5
and lower associated CO  emissions.
2
At our steelworks in Ghent, Belgium, we are building 
a €120 million industrial-scale demonstration plant 
2050 
for technologies developed with LanzaTech1 to both 
capture carbon offgases and convert them into the 
Carbon ambition 
Carbalyst® range of products. Capable of producing 
Our ambition is to significantly reduce our CO  emissions by 2050 
2
80 million litres of ethanol per year, this project alone 
and, in Europe, to achieve carbon neutrality by this date, in line 
has the potential to annually reduce CO  equivalent 
with the objectives of the Paris Agreement and the science-based 
2
to 600 transatlantic flights.2
trajectory for our sector. Supportive policies will be central to 
achieving this ambition. We are building a strategic roadmap 
 See chapter 5
based on potential improvements and our suite of breakthrough 
technologies, and in 2020 we will set a 2030 reduction target. 
1 This project is also known as Steelanol.
2 https://corporate.arcelormittal.com/news-and-media/our-stories/capturing-and-utilising-waste-carbon-from-steelmaking

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Green border adjustment
ArcelorMittal has been publicly calling for a green border 
adjustment since early 2017. We believe it is an essential policy 
that needs to be applied wherever carbon policy exists to 
ensure that steelmakers bearing the structurally higher costs 
of low-emissions technologies can compete on a level playing 
Steligence® 
field with imports from higher-emissions steelmakers. This 
In 2018, ArcelorMittal launched the Steligence® concept to 
forms a central part of our policy scenario analysis. 
facilitate the next generation of high-performance buildings 
 See chapter 6
and construction techniques for our customers. Built into 
the holistic Steligence® approach is a broad range of thinner, 
lighter, high-performance steel solutions. Demonstrating 
the potential to reduce the embedded carbon footprint of 
$728m
a building by 38%, the Steligence® approach can also enhance 
Energy efficiency
its flexibility and economics. Considering the share of global 
emissions from the built environment, the impact of 
Each year we spend large amounts of capex to modernise 
Steligence® could be particularly significant.
our plants with the latest technology. $728 million has been 
allocated in the past three years alone. 
Comprehensive climate-related disclosure
We have been making annual climate change disclosures to 
CDP since 2010, and in 2018 our disclosure was rated B. 
We report comprehensively on the methodology and scope 
of our CO  emissions, and ensure that we measure the 
2
carbon intensity of our steel in a way that includes all the 
processes involved in steelmaking rather than simply those 
we own and operate. In 2018, we became a supporter of the 
Task Force on Climate-related Financial Disclosures’ (TCFD) 
recommendations. This Climate Action Report represents our 
first comprehensive response to these recommendations.
 See chapter 7
S-in motion®
S-in motion® is a set of advanced high-strength steels 
launched by ArcelorMittal in 2010. Since then, S-in motion® 
steels have been providing the lightness and strength 
carmakers need to make mobility solutions ever more 
sustainable. It enables a reduction in vehicle lifecycle 
emissions of 14.5%,3 while at the same time ensuring the 
safety of vehicle users at an affordable cost. 
https://corporate.arcelormittal.com/news-and-media/our-stories/cutting-carbon-ensuring-safety-serving-customers-s-in-motion

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2   The future of materials:  
growing, circular, sustainable
Our world, and our lifestyles, have been built around the use of 
a variety of materials. Al  industries making these materials face 
the same issue: meeting the global demands of a growing 
population while significantly reducing their climate impact.
The world’s materials challenge
Materials are an integral part of modern society, human 
development and well-being. Global consumption of materials 
has grown significantly over the past 30 years (see box 1), 
RE
and has been instrumental in the economic development which 
G
CY
has lifted over one billion people out of poverty. Today, the 
Materials
SIN
CL
production of the main material groups globally account for over 
recovery
EU
IN
19% of global CO  emissions.4 The majority of these emissions 
R
G
2
come from using mostly fossil fuel-based energy to transform 
primary raw material sources into the materials we use (iron ore 
Circular
for steel, bauxite for aluminium, oil for plastics, etc.). Producing 
materials
materials from secondary sources (i.e. recycling materials at 
their end of life) represents a small proportion of material 
production today, mainly because the strong growth of demand 
for materials outstrips the stock available for recycling, but also 
Materials
Materials
due to the fact that most materials – steel being an exception – 
production
world
cannot be fully recycled (see box 1).
Materials demand is forecast to continue growing for several 
decades as emerging economies pursue the infrastructure 
R
needed to achieve the United Nations’ Sustainable Development 
E D U CIN G
Goals, and as the world transitions to low-emissions sources 
of energy. In this context, primary sources will continue to be 
essential to meet the world’s material needs. Therefore, the 
challenge for materials producers is to lower the carbon 
In the long term, the world will transition towards a stable 
footprint of materials production whilst meeting continuing 
demand for materials in a fully circular economy, where 
demand growth. Contributions will come from improvements 
efficiently designed products are reused repeatedly, and 
in energy efficiencies and production yields, and the move 
ultimately recycled into new products. This means for each 
from today’s prevalent linear use-and-dispose model towards 
application, manufacturers and designers will increasingly 
a circular reduce-reuse-recycle model. What will be critical, 
choose materials based not only on their physical characteristics 
however, is to develop and deliver low-emissions technologies 
such as weight, strength and flexibility, but also for their ease of 
for materials production.
reuse, recovery and recyclability. This will be enabled by policies 
aimed at restricting landfill and incineration. Effective recovery 
and recycling of materials from different waste streams at their 
end of life will be vital to the transition to a circular economy. 
In addition, segregation of materials to avoid degradation and 
loss of recycling capability will be important. 
4   ArcelorMittal estimates of main material groups’ CO  emissions as percentage of World Bank reported global CO  emissions; material groups included: 
2
2
cement, steel, aluminium, other metals, plastics and fibres, glass, bricks, and cardboard and paper.

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Box 1: materials production and recyclability
Global materials production has grown significantly over the past three 
decades; steel is the only manufactured material that can be fully recycled.
Figure 1: global production (1990=100)
Table 1
Made from  
end-of-life  
400
1
Material group
Recyclability*
material
2
1   Plastics  and   
synthetic fabrics
5-10%
3
300
2 Cement5
0%
4
3 Aluminium
21%
200
5
4 Steel
22%
100
5   Paper  and   
cardboard
50-60%
*Ability to make same material again at end of life
 Ful y recyclable, low risk of downcycling
0
 Highly recyclable, risk of downcycling
1990
1995
2000
2005
2010
2015
 Partial y recyclable, risk of downcycling
 Little or no recyclability
Source: ArcelorMittal corporate strategy
5  Concrete, made from cement, is recyclable to a limited extent in the form of aggregate. 

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The future of materials: growing, circular, sustainable
With its high rate of recyclability, steel is the ideal material 
for a sustainable, circular economy. It is also a key enabler 
for CO  emission reductions. 
2
Bright future for steel
Even today, there are fewer CO  emissions embedded in the 
2
production of steel in many applications in comparison with 
We believe that steel is the only major material group today 
other materials. For example in the automotive sector, for 
that can meet tomorrow’s challenge of a fully circular economy.  the structural ‘body-in-white’ of a vehicle, the CO  emissions 
Steel’s recyclability is unmatched by any other major material 
2
associated with an automotive part made of advanced high-
group. Today, up to 85-90% of steel products are recovered 
strength steel are less than half of those associated with an 
at their end of life and recycled to produce new steel. The 
equivalent aluminium automotive part, and less than a third 
magnetic properties of steel make it easy to segregate from 
of those associated with a part made of carbon fibre 
other materials, so whereas other materials are often 
reinforced plastic.
downcycled, steel retains all of its original properties, making 
it stand out as one of the most easily recycled materials.
Steel is also a key enabler as a core material in many leading 
technologies for global CO  emissions reductions. These 
In the very long term beyond 2070, once there is a sufficient 
2
technologies include offshore wind turbines, efficient 
stock of steel to meet the needs of a fully developed world, 
transformers and motors, and lighter-weight vehicles. A study 
the majority of steel products will be made from recycled 
by BCG and VDEh found that on average, the CO  emissions 
end-of-life steel. We believe that as societies transition towards 
2
reductions enabled by steel outweigh emissions from steel 
a sustainable circular economy, steel will be increasingly favoured  production by 6 to 1.6 It is hard to imagine a future where steel 
over other less circular materials in overlapping applications.
is not a critical material in a sustainable circular economy.
6  BCG and VDEh (2013), Steel’s Contribution to a Low-Carbon Europe 2050.







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Figure 1: comparative CO  emissions from production of steel vs other materials for selected applications* 
2
BOTTLE
0.75l
1,800g CO
350g CO
2
2
Glass
Steel
420g
177g
PIPING SYSTEM
YACHT
3 metres of 6” schedule 80
46’ trawler
60kg CO
260kg CO
27t CO
33t CO
2
2
2
2
Plastic (PVC)
Steel
Fibreglass
Steel
27kg
130kg
10.4 tonnes
16.3 tonnes
Steel vs
other materials
BUILDING STRUCTURE
AUTOMOBILE
One storey 5x8m
Body in white
5t CO
5t CO
5.6t CO
1.8t CO
2
2
2
2
Concrete
Steel
Aluminium
Steel
32 tonnes
2.6 tonnes
470kg
900kg
 Icons represent the level of recyclability as in Table 1 on page 7.
*Figures relate only to emissions from production of material from primary (virgin) sources, not lifecycle CO  emissions of different materials.
2
Source: ArcelorMittal corporate strategy

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3  The carbon challenge for steel 
The steel industry currently generates approximately 7% 
of the world’s CO  emissions. With demand for steel forecast 
2
to continue growing for several decades to come, the carbon 
challenge is significant.
Continuing need for primary steel production
Although steel is less carbon-emitting per application than many 
other materials from primary sources, the sheer scale of global 
Global steel demand has more than doubled since 1990 as 
steel production means the industry contributes over three 
societies across the world (China and the developing world 
gigatons of CO  to global emissions annually. Global steel 
especially) have increased their steel stocks in products, 
2
demand is forecast to increase from 1.7 billion tonnes in 2018 
equipment, buildings and infrastructure. Steel can essentially 
to over 2.6 billion tonnes by 2050 under current consumption 
be made using either primary sources or secondary sources. 
patterns. This will be driven primarily by continued growth in the 
Today the majority of steel is made via the primary (iron ore 
developing world, as well as increased steel demand to support 
based) route, the first step of which is to smelt or reduce iron 
the global energy transition, since more steel will be needed per 
ore. Nature has dictated that separating oxygen from iron 
unit of renewable electricity than conventional technologies.7
requires a substantial amount of energy, because there are 
strong chemical bonds between oxygen and iron in iron ore. 
Time for transition
That energy today comes primarily in the form of carbon. 
Carbon dioxide, or CO  emissions are the result.
The global steel industry therefore faces the challenge of 
2
reducing CO  emissions in line with the ambition of the Paris 
Steel produced via the secondary (scrap based) route, which 
2
Agreement whilst at the same time responding to the growing 
uses electricity as the main energy input to melt end-of-life 
demand for steel. According to the Intergovernmental Panel 
scrap, and has lower CO  emissions, has increased in recent 
2
on Climate Change (IPCC), in order to limit global warming 
decades. However, although steel stock in maturing economies 
to 2ºC or less, the world needs to reach net zero CO  emissions 
has plateaued, the strong demand growth for steel in the 
2
around 2070. Achieving a limit of 1.5ºC brings this date forward 
developing world means that end-of-life scrap is only sufficient  to around 2050.8 While help will come from continued energy 
for a modest share (approximately 22%) of metallic input for 
efficiency gains and yield improvements in steel production, 
global steel production. The availability of end-of-life scrap is 
as well as society’s shift to a circular economy, achieving this 
forecast to grow, and this will support the increased use of 
ambitious goal will require a fundamental transition to low-
scrap-based steelmaking. When powered with clean electricity,  emissions technologies. This essentially means either capturing 
this will further reduce the carbon intensity of steelmaking. 
and storing the emissions, or utilising a different, lower-emission 
However, the availability of end-of-life scrap lags demand for 
energy source to extract the iron from the iron ore. 
steel by several decades, typically 10-50 years or more after 
production depending upon application. This means the world 
will still be reliant on primary steelmaking from iron ore until 
nearer the end of this century. 
7  Source: ArcelorMittal global R&D 
8   IPCC  (2018),  Summary for Policymakers. In: Global Warming of 1.5°C. An IPCC Special Report on the impacts of global warming of 1.5°C above 
pre-industrial levels and related global greenhouse gas emissions pathways, in the context of strengthening the global response to the threat of 
climate change, sustainable development and efforts to eradicate poverty.





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Box 2: growing demand for steel
Global demand is forecast to increase from 1.7 bil ion tonnes in 2018 to over 
2.6 bil ion tonnes by 2050 under current consumption patterns. Yield improvements 
and circular economy dynamics are likely to moderate this growth. 
Construction
Energy
Packaging
A significant share of growth in steel 
As the transition to a low-emissions 
Pressure to reduce plastic waste and 
demand will come from the construction  economy unfolds, reduced steel demand 
use more recyclable materials is leading 
sector, particularly in developing 
from the oil and gas sector will be more 
to growth in demand for steel in the 
countries for new buildings and 
than offset by growth from the renewable  packaging sector.
infrastructure.
energy sector. 
Transport
Steel use for transport will significantly increase due to economic growth in developing 
countries. The use of high-strength steels for lightweighting helps automakers 
improve vehicle emissions while maintaining safety standards. We take a neutral 
view on the impact of electric vehicles (EVs) on steel demand. We see significant 
opportunities for steel in EVs due to additional uses and recovery in traditional ones, 
given the cost and lifecycle CO  advantages of steel. Growth in the automotive sector 
2
may be moderated by the emergence of automated vehicles in the long term.
Figure 2: steel demand outlook (million tonnes)
3,000
Yield 
improvement
2,500
Business as usual – BAU Circular 
economy
(see page 11)
2,000
1,500
Adjusted
steel
1,000
demand
500
1990
1995
2000
2005
2010
2015
2020
2025
2030
2035
2040
2045
2050

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The carbon chal enge for steel 
Box 3: the role of end-of-life scrap in low-emissions steel transition
Global steel production will continue to rely on  
primary sources (iron ore) until around 2100. 
Today, most primary sources of iron (iron ore) used to make 
direct reduced iron (DRI) process using natural gas or gasified 
steel are processed through a blast furnace (BF) for ironmaking  coal. Although both these routes partially add scrap to make 
and subsequently through a basic oxygen furnace (BOF) for 
steel, most scrap used globally is processed into steel directly 
steelmaking, using coal-based products such as pulverised 
through an electric arc furnace (EAF), using electricity as the 
coal and coke as energy inputs to reduce the iron ore. 
main energy input (see annex 1).
To a lesser extent, steel from iron ore is also produced via the 
Scrap used in steelmaking comes from two different sources:
Global steelmaking by (1) production route, 
• Pre-consumer scrap, arising from yield losses in iron and 
steelmaking and manufacturing of steel-based products.
(2) metallic input, (3) source of iron
• End-of-life scrap, arising from the recovery of steel-based 
End-of-life scrap
products at the end of their operational life, typically 
10-50 years or more after production, depending upon 
application. As a result, the availability of end-of-life scrap 
Scrap
lags steel demand by several decades.
EAF
Although the availability of end-of-life scrap is forecast to 
Steel
grow (see graph below), global steel demand growth means 
DRI-EAF
end-of-life scrap will meet less than 50% of steel needs by 
2050. As living standards improve and infrastructure across 
the globe matures, demand for steel will eventually plateau. 
DRI
BF-BOF
1
After that, enough end-of-life scrap will be available to meet 
Pig iron
the bulk of steel demand, leading to a fully circular steel value 
2
Iron ore
chain. Since this transition is unlikely to become reality much 
3
before the end of the century, iron and steelmaking from iron 
ore will continue to play an important role in meeting global 
steel demand well beyond 2050.
Steel demand outlook (million tonnes)
3,000
2,500
Business as usual – BAU
End-of-life
scrap
2,000
1,500
1,000
Iron ore
500
1990
1995
2000
2005
2010
2015
2020
2025
2030
2035
2040
2045
2050
Source: ArcelorMittal Corporate Strategy

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Meeting the carbon challenge for steel will require continued 
energy and yield improvements, a shift to a circular economy, 
and the adoption of low-emissions technologies.
Business as usual (BAU)
Energy efficiency 
This projection of CO  emissions shown in figure 2 below 
Over the last 50 years, the steel industry has reduced its energy 
2
is based on the BAU steel demand outlook, which includes 
consumption per tonne of steel by 61%.9 A recent World Steel 
the increasing volumes of end-of-life scrap forecast shown 
Association study shows potential for a further 15-20% 
in box 3 on page 12. 
reduction in energy intensity.
Steelmaking yield improvement
Adoption of low-emissions technologies
Continued improvements in the steel supply chain, particularly 
Steel production will continue to depend on primary sources 
through the digital revolution and evolving manufacturing 
(iron ore) to meet future demand, as shown in figure 4. 
technologies, will drive continued yield improvement from 
To achieve the Paris Agreement objectives, this primary steel 
crude steel production to final steel in products, equipment, 
production will have to transition to low-emissions technologies 
buildings and infrastructure. This will reduce the amount of 
for iron ore reduction. This will entail a transition to low-emissions 
steel production needed for the same products, equipment, 
energy sources through a combination of use of clean power, 
building and infrastructure under a BAU scenario.
circular carbon (see box 4 on page 15), and continued use 
of fossil fuels with carbon capture and storage. Detailed 
Circular economy
descriptions of low-emissions technology pathways for the 
steel industry are given in chapter 4, and ArcelorMittal’s 
Products, equipment, buildings and infrastructure designed to 
innovation programme to demonstrate such technologies is 
use less steel will all moderate the growth rate of steel demand 
described in chapter 5.
compared to a BAU scenario. The transition to a circular 
economy – with new business models focused on greater 
sharing of our material world (homes, cars, etc.), extended 
product longevity and reuse at end of life – will also reduce 
demand for steel compared to a BAU scenario.
Figure 2: Indicative CO  emissions outlook for steel
2
Business as usual – BAU Yield 
improvement
Circular 
economy
Energy 
efficiency
Adoption of 
low-emissions 
technologies
Remaining CO2
2020
2025
2030
2035
2040
2045
2050
9   World Steel Association (2019), Steel’s Contribution to a Low Carbon Future and Climate Resilient Societies.

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4   Low-emissions technology pathways  
and policy scenarios
Low-emissions steelmaking will be achieved through the use 
of a combination of clean power, circular carbon, and fossil 
fuels with capture and storage (CCS).
Future energy inputs for primary steelmaking
The steel industry has made significant improvements in energy 
a) Clean power used as the energy source for hydrogen-based 
and yield efficiency, reducing the emissions intensity of steel 
ironmaking, and longer term for direct electrolysis ironmaking, 
production during recent decades. Further technological 
and also contributing to other low-emissions technologies.
innovation should lead to continued reductions in emissions 
b) Circular carbon energy sources including bio-based and 
intensity over the next decade.
plastic wastes from municipal and industrial sources and 
However, to accelerate emissions reduction and align with the 
agricultural and forestry residues (see box 4).
demanding objectives of the Paris Agreement, the steel industry  c) Fossil fuels with carbon capture and storage (CCS) 
will have to transition to one or more low-emissions technology 
enabling the continued use of the existing iron and steelmaking 
pathways. These are illustrated on pages 14-15. They include 
processes while transforming them to a low-emissions pathway. 
transitioning to new energy inputs in the form of a) clean power, 
This shift would require national and regional policies to create 
b) circular carbon and c) fossil fuels with carbon capture 
the necessary large-scale infrastructure network for the 
and storage. 
transport and storage of CO .2 

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Circular
Carbon
Low-emissions
steelmaking
Fossil Fuels
Clean
with CCS
Power
Box 4: the importance of circular carbon
While climate change needs to tackle the increased 
More of society’s waste – including construction wood, 
concentration of carbon-based gases in our atmosphere, 
agricultural and forestry residues, and plastic waste – can 
carbon is and will remain an essential building block of 
potentially be used sustainably as a valuable source of circular 
nature and our material world. Circular carbon treats carbon 
carbon. The steel sector has the potential to be one of the 
as a renewable resource that can be reused indefinitely. 
most efficient users of the limited quantity of circular carbon 
available in society. 
Today over half of the renewable energy used in Europe 
already comes from circular carbon in the form of renewable 
Furthermore, the carbon gases that result from iron and 
biomass and bio-waste. Increased use of renewable biomass 
steelmaking with circular carbon can be captured and converted 
globally is also a critical enabler to three of the four IPCC 
into recyclable products. At the end of their use, these products 
pathways to 1.5ºC in their latest report.10 
will themselves become sources of circular carbon, closing the 
loop and creating an endless cycle of carbon. 
 
10 IPCC (2018), Summary for Policy Makers

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 Low-emissions technology pathways and policy scenarios
Box 5: possible low-emissions technology pathways using different energy sources
All technology pathways to low-emissions steelmaking entail higher  
costs and require time, investment and clean energy infrastructure.
Incremental costs 
to produce steel*
Commercial  
Energy infrastructure  
Energy technology  
Steel technology  
Energy sources
Low-emissions steelmaking technology pathways
(OPEX and CAPEX)
horizon
challenge
challenge
challenge
Iron electrolysis
Power infrastructure 
Iron 
exists – to be expanded 
Electrolysis  
e-
electrolysis
EAF Develop iron ore electrolysis 
To be determined
20-30 years
to accommodate 
ironmaking
from clean electricity
steelmaking needs
Water
electrolysis
Green hydrogen DRI
Clean
Green hydrogen economy 
Lowering green  
Hydrogen 
H
Power
2
H DRI-EAF

Develop hydrogen-based DRI 
+60-90%
10-20 years
needs to be created – 
hydrogen  
ironmaking
production from clean electricity
can be done incrementally
production costs
H2
BF-BOF
Smart carbon
Circular carbon and 
Develop commercial 
Commercial combined 
Produce steel with circular carbon 
hydrogen economy 
bio-coals, bio-cokes  
carbon and hydrogen 
CO H2
and hydrogen, and manufacture 
+20-35%
5-10 years
expansion – can be 
and bio-gases for 
steelmaking; upside of 
Circular
carbon-based products from 
Plastic
Fuel
done incrementally
steelmaking
carbon capture and use
Carbon
H
waste gases
2
Chemicals
Fabrics
CCS
Blue hydrogen DRI
Develop large commercial 
natural gas-based 
Hydrogen  
H2
H DRI-EAF

Develop hydrogen-based DRI 
+35-55%
10-20 years
hydrogen and carbon 
ironmaking
production from reformed natural gas
storage projects 
CCS
DRI with carbon capture
Develop economy-wide 
commercial carbon 
Commercial CO   
CO H2
DRI-EAF
Use existing technology incorporating 
+35-55%
5-10 years
2
transport and storage 
capture technologies
carbon capture and storage 
Fossil Fuels
CCS
infrastructure
with CCS
Blast furnace with carbon capture
Develop economy-wide 
commercial carbon 
Commercial CO   
CO H
BF-BOF
2
Use existing technology incorporating 
+30-50%
5-10 years
2
transport and storage 
capture technologies
carbon capture and storage
CCS
infrastructure
A successful transition to low-emissions steelmaking will require policies 
that offset higher costs, provide access to sufficient clean energy and 
financial support to accelerate technology innovation.
Policy needs
The viability of different low-emissions steel technology 
• National and regional policies regarding energy infrastructure 
pathways at each steelmaking site is likely to differ by region, 
and allocation by sector. These may affect the availability of 
depending on three aspects of policy:
green and blue hydrogen, circular carbon (bio-waste, waste 
plastic, and agricultural and forestry residues), and large-scale 
• Policies to ensure steelmakers compete on a level playing 
carbon transport and storage infrastructure.
field. Where carbon policy drives steelmakers to adopt 
low-emissions technologies, involving structurally higher 
operating costs, mechanisms such as a green border 
adjustment enable steel from these producers to compete 
fairly with imports from higher emitting steelmakers.

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Box 5: possible low-emissions technology pathways using different energy sources
All technology pathways to low-emissions steelmaking entail higher  
costs and require time, investment and clean energy infrastructure.
Incremental costs 
to produce steel*
Commercial  
Energy infrastructure  
Energy technology  
Steel technology  
Energy sources
Low-emissions steelmaking technology pathways
(OPEX and CAPEX)
horizon
challenge
challenge
challenge
Iron electrolysis
Power infrastructure 
exists – to be expanded 
Electrolysis  
Develop iron ore electrolysis 
To be determined
20-30 years
to accommodate 
ironmaking
from clean electricity
steelmaking needs
Green hydrogen DRI
Green hydrogen economy 
Lowering green  
Hydrogen 
Develop hydrogen-based DRI 
+60-90%
10-20 years
needs to be created – 
hydrogen  
ironmaking
production from clean electricity
can be done incrementally
production costs
Smart carbon
Circular carbon and 
Develop commercial 
Commercial combined 
Produce steel with circular carbon 
hydrogen economy 
bio-coals, bio-cokes  
carbon and hydrogen 
and hydrogen, and manufacture 
+20-35%
5-10 years
expansion – can be 
and bio-gases for 
steelmaking; upside of 
carbon-based products from 
done incrementally
steelmaking
carbon capture and use
waste gases
Blue hydrogen DRI
Develop large commercial 
natural gas-based 
Hydrogen  
Develop hydrogen-based DRI 
+35-55%
10-20 years
hydrogen and carbon 
ironmaking
production from reformed natural gas
storage projects 
DRI with carbon capture
Develop economy-wide 
commercial carbon 
Commercial CO   
Use existing technology incorporating 
+35-55%
5-10 years
2
transport and storage 
capture technologies
carbon capture and storage 
infrastructure
Blast furnace with carbon capture
Develop economy-wide 
commercial carbon 
Commercial CO   
Use existing technology incorporating 
+30-50%
5-10 years
2
transport and storage 
capture technologies
carbon capture and storage
infrastructure
Source: ArcelorMittal internal estimates for transition to low-emissions steelmaking in Europe based on current factor prices.
*Compared with average annual net income of steel industry, which between 2010-2017 was 2% of revenues. 
• The level of private and public investment support. 
In view of these needs, we believe steel companies need to 
This will dictate the speed of development of low-emissions 
maintain a flexible technology innovation roadmap to adapt to 
innovation projects in order to assess their commercial 
the various technology development timelines, clean energy 
viability; and, where such projects are successful, for the 
and policy landscapes of the future. Conversely, policy certainty 
roll out of low-emissions technologies across different 
from national and regional governments and institutions will be 
steel plants. 
instrumental in supporting the steel industry to decarbonise at 
a pace commensurate with supporting the objectives of the 
Paris Agreement.

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 Low-emissions technology pathways and policy scenarios
We have developed four policy scenarios to assess the implications of 
different levels of policy commitment for the steel industry’s ability to 
meet the carbon challenge. We have used this analysis to inform our 
policy recommendations presented in chapter 6.
Policy scenarios: driving the transition  
STAGNATE
to low-emissions steel
• Lack of access to sufficient and affordable clean energy
A concerted public and private investment effort is essential to  • No mechanism to address high risk that steel production is 
accelerate the pace of development and roll out of commercial 
made structurally uncompetitive across countries/regions
low-emissions technologies and advance the timeline to make 
• Slow development of low-emissions steelmaking technologies
the steel industry ‘technology ready’ to meet the objectives of 
• No meaningful reduction in global steel CO  emissions as 
2
the Paris Agreement.
production shifts to less carbon-regulated jurisdictions
• Insignificant global progress to goals of Paris Agreement
Steel is a global material traded directly across countries and 
continents in the form of sheets and bars for steel products, 
equipment, buildings and infrastructure. It is also embedded in 
WAIT
the imported goods consumers buy, such as cars, appliances, etc.  • Technology makes encouraging progress and is potentially 
ready for significant deployment within 10-20 years
Countries and regions that introduce a cost of CO  emissions, 
2
• But only fragmented access to affordable clean energy
but with neither supportive energy policies nor effective 
• No mechanism to address high risk of steel production being 
mechanisms to maintain the competitiveness of low-emissions 
structurally uncompetitive in affected countries/regions
versus higher-emissions steel, will fail to decarbonise their steel. 
• Marginal steel CO  reductions globally as production shifts 
What is more, it may in fact disadvantage their steel industry 
2
to less carbon-regulated jurisdictions
as production will migrate to other countries and regions 
• Limited progress towards goals of Paris Agreement
that do not support decarbonisation, thereby exacerbating 
the carbon challenge globally (Stagnate scenario).
ACCELERATE regionally
Even in jurisdictions actively providing financial support 
• Technology makes encouraging progress and is potentially 
to develop and roll out low-emissions technologies, the 
ready for significant deployment within 10-20 years
steel industry will need further support. Without effective 
• Access to sufficient and affordable clean energy in supportive 
mechanisms to offset the structurally higher operating costs 
countries/regions
of deploying these technologies, and affordable access to the 
• Regions with more active climate legislation ensure 
clean energy they need, the steel industry will be unable to 
mechanisms are in place to enable steel production to remain 
make the necessary shift needed to meet the goals of the 
competitive, e.g. green border adjustment
• 
Paris Agreement (Wait scenario).
Significant reductions in steel CO  in supportive countries/regions
2
• Partial global progress to goals of Paris Agreement
Countries and regions developing supportive energy policies, 
and establishing a fair mechanism to offset the structurally 
ACCELERATE globally
higher costs of low-emissions steel producers, will succeed 
• Technology makes encouraging progress and is potentially 
in transitioning to low-emissions steelmaking (Accelerate 
ready for significant deployment within 10-20 years
scenarios). They will reap the benefits of a positive steel 
• Access to sufficient and affordable clean energy globally
industry that contributes to their economies and to the 
• Low-carbon legislation in place in the majority of countries, 
carbon challenge. But only if such mechanisms are applied 
ideally with a common global framework or mechanism to 
globally can this acceleration take place on a global scale and 
ensure steel production remains competitive globally
the steel industry become a successful partner in meeting the 
• Significant global reductions in steel CO2
objectives of the Paris Agreement. 
• Global industry alignment with goals of Paris Agreement

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Box 6: policy scenarios and their effectiveness in driving de-carbonisation of the steel industry
Figure 3
ACCELERATE
HIGH
 Globally
echnologies
ACCELERATE
sions t
Regionally
yment of low-emis
WAIT
STAGNATE
e of deplo
Pac
LOW
Level of policy RESPONSE
HIGH
Table 2
Policy challenge
Structurally 
Ineffective mechanism 
Ineffective mechanism 
Mechanisms to maintain 
Common global 
higher 
in place to offset 
in place to offset 
competitive market by 
framework is 
operating 
structural y higher 
structural y higher 
offsetting structural y 
implemented to 
costs of 
operating costs of 
operating costs of 
higher operating costs of 
maintain competitive 
low-emissions 
low-emissions 
low-emissions 
low-emissions 
market to offset 
steelmaking
steelmakers versus 
steelmakers versus 
steelmakers versus 
structural y higher 
higher-emissions 
higher-emissions 
higher-emissions 
operating costs of 
steelmakers
steelmakers
steelmakers and imports 
low-emissions 
set in some countries 
steelmakers versus 
and regions, e.g. green 
higher-emissions 
border adjustment
steelmakers 
Clean energy 
No concerted policy 
No concerted policy 
Support for clean 
Support for clean 
infrastructure 
in any market to 
in any market to 
energy to steelmaking 
energy to steelmaking 
and allocation 
incentivise and al ocate 
incentivise and al ocate 
industry from clean 
industry from clean 
by sector
clean energy to steel 
clean energy to steel 
power, circular carbon 
power, circular carbon 
sector
sector
and carbon capture and 
and carbon capture and 
storage infrastructure 
storage infrastructure 
provided in only some 
provided globally
countries and regions 
Investment in 
Limited public support 
Accelerated public 
Accelerated public 
Accelerated public 
low-emissions 
for R&D to bring 
support for R&D to 
support for R&D to 
support for R&D to 
steelmaking 
technologies to 
bring technologies to 
bring technologies to 
bring technologies to 
technologies 
commercialisation 
commercialisation 
commercialisation 
commercialisation 
(development 
maturity
maturity; some 
maturity; high levels of 
maturity; high levels of 
and roll out)
investment support for 
investment support for 
investment support for 
rol  out of technologies
rol  out of technologies
rol  out of technologies

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5   ArcelorMittal strategy towards  
low-emissions steelmaking
Energy efficiency, increased use of scrap, technology 
innovation and policy engagement are the four 
components of our climate action strategy. 
Over the last 150 years, the steel industry has seen significant 
1. Energy efficiency programme
energy efficiency and yield improvements.11 While incremental 
Over the last decades, the steel industry has significantly 
improvements will continue, far more is needed to meet the 
reduced the carbon intensity of steel, by focusing on energy 
objectives of the Paris Agreement. 
efficiency gains and yield improvements. 
Significant emissions reduction requires creative and innovative  For example, ArcelorMittal is today a leader in industrial gas-
thinking, which is at the heart of our €250 million low-emissions  injection technology. This has enabled us to increasingly replace 
steelmaking innovation programme.12
metallurgical coke with alternative sources of carbon such as 
ArcelorMittal’s low-emissions strategy has four components: 
pulverised coal or natural gas. Some of our most advanced blast 
furnaces are now injecting 50% of the total carbon required for 
1.  
Energy efficiency in our steelmaking operations across 
the process using this technology – with the effect of reducing 
the globe to help meet our medium-term emissions 
the total amount of fossil fuels required. This capability to use 
reduction targets. 
the blast furnace as a large-scale ‘gasifier’ in industry puts us in 
2.   Consideration of opportunities for further steel production 
a good position for the adoption of low-emissions technologies 
using end-of-life scrap based on its availability in the 
for steelmaking. 
regions where we operate.
Our business segments are now required to prepare CO  
2
3.   A flexible, integrated innovation programme to develop 
reduction plans as part of the annual planning cycle, making 
the technologies for steelmaking in a low-emissions 
use of a range of existing and innovative approaches.
circular future.
To support them, our global R&D team is continually innovating 
4.    Policy analysis and engagement to understand and 
to deliver energy efficiency and yield improvements. In 2018, 
advocate for the policies that will support the transition 
we deployed 19 new processes to this end. However, many 
to a low-emissions future in the different geographies 
plants are approaching the physical limits of energy efficiency, 
where we operate.
and a transition to low-emissions technologies is needed to 
deliver further substantial emissions reductions. 
Each year our Investment Allocation Committee (IAC) allocates 
capital to investment projects that improve energy performance. 
Proposals to the IAC are required to assess the CO  benefit of the 
2
project, enabling an assessment with a suitable carbon price to 
reflect the local context. 
$728m
In 2018, ArcelorMittal made capital allocations totalling 
Capex allocated to energy efficiency 
$247 million for 26 projects aimed at improving energy 
improvements in the last three years
efficiency, bringing the three-year total to $728 million. 
11 By 50% in about 75 years, based on DEH data of consumption of reducing agents used in blast furnaces in Germany (including Eastern Germany from 1991).
12  This is the multi-year budget covering our low-carbon development and demonstration programme with partners, aimed at building industrial pilots and 
demonstrations and is additional to our annual R&D expenditure.


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2. Further opportunities for secondary 
steelmaking
The availability of end-of-life scrap is projected to increase 
globally over the coming decades as increasing amounts of 
building structures and equipments approach their end of life. 
By 2050, there will be sufficient supplies to feed some 50% 
of global steel production. As this availability increases in 
regions where we operate, we will consider creating additional 
opportunities for secondary steelmaking in electric arc furnaces.
ArcelorMittal currently operates 32 electric arc furnaces 
across the world, of which 13 are located in Europe. In 2018 
we produced 19% of our steel from these furnaces.
Blast furnace facilities and electric arc furnaces
Blast furnaces*
11  
22  
6  
12  
Electric arc furnaces
10  
13  
7   2  
NAFTA
Brazil
Europe ACIS
*The 2018 BF footprint presented above is not including the Ilva remedies (Ostrava and Galati). Including these assets the total number of BFs is 58.

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ArcelorMittal strategy towards low-emissions steelmaking
3. Flexible, integrated, circular approach to 
Figure 4
innovation
Circular
Carbon
The global challenge posed by the transition to low-emissions 
Torero
steelmaking is large and complex, and will require multiple 
Carbalyst®
solutions. Our innovation approach is focused on providing 
flexibility to adapt to different possible clean energy futures 
IGAR
in different regions and countries, whether it is clean power, 
Carbon2value
circular carbon, or fossil fuels with CCS, or a combination of 
all three.
The strength of our €250 million research and demonstration 
programme is its breadth and flexibility. While each of our 
Low-emissions
technologies can be stand alone and scaled up individually, 
we can also integrate them to deliver significant advantages 
steelmaking
for the various low-emissions steelmaking pathways. 
Fossil Fuels
Clean
with CCS
Power
The key technologies in this programme are represented 
in Figure 4.
Siderwin
In addition, our innovation approach supports three key 
H2 Hamburg
underlying principles of a low-emissions circular economy: 
• Supporting the advancement of renewable energy by 
developing technologies that can make use of intermittent 
renewable power from wind and solar (either directly 
4. Policy analysis and engagement
or indirectly through hydrogen), thus helping to reduce 
We have analysed the energy resources, costs and infrastructure 
grid instabilities. 
• 
needed for each low-emissions technology pathway and 
Accelerating the circular economy by developing 
assessed the implications of different policy scenarios on the 
technologies that enable waste streams to be reused 
pace of deployment of these technologies (see chapter 4). 
commercially, turning them into materials and feedstock 
This analysis forms the basis for our policy recommendations 
for other industries and sectors. 
• 
to accelerate the transition to low-emissions steelmaking, 
Creating industrial symbiosis between the steel, chemicals 
which are presented in chapter 6. 
and cement industries through a logistics network to share 
To build an understanding of the need for policy support, 
and reuse CO  as a feedstock for the production of chemicals. 
2
ArcelorMittal engages with customers and investors as well as 
The logistics network can be expanded further to transport 
policymakers and global organisations regarding our outlook for 
and store CO , for example in depleted oil fields. 

low-emissions steelmaking. This includes organisations such as 
the We Mean Business coalition, the World Business Council for 
Sustainable Development, CDP, the Science-Based Targets 
Initiative and the International Energy Association. 


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There is no ‘one size fits al ’ solution to move away from 
emissions-intensive steelmaking. Our technology portfolio 
enables us to pursue the full range of possible technology 
pathways, depending on which becomes the most viable 
in the countries and regions where we operate.
ArcelorMittal’s low-emissions innovation 
Figure 5: From iron ore to iron for primary steelmaking
programme
Today, the reduction of iron ore to iron is predominantly achieved 
using high temperature carbon monoxide (CO), sourced from 
fossil fuels – coke and pulverised coal – which is also used as an 
affordable source of energy. 
Iron ore
Science has given us three alternatives to this: deriving CO from 
circular forms of carbon, applying the process of electrolysis, 
or using high-temperature hydrogen gas.
The latter two pathways require vast amounts of electrical 
energy, which would all need to come from clean sources. 
High-temperature
Electricity
gas
Such quantities of clean power will not become available to 
the steel industry overnight at affordable prices. 
To reduce emissions within the timeframe needed, therefore, 
ArcelorMittal is exploring opportunities to combine technologies 
CO
H
that use more clean power with those that involve circular 
2
sources of carbon, alongside carbon capture, carbon utilisation 
and carbon storage. 
Our portfolio of technologies offers us the ability to respond 
to whichever energy sources are made affordable by the policy 
frameworks in place. Our key projects are outlined in detail over 
the pages that follow.
Carbon monoxide 
Hydrogen
gas reduction
gas reduction
Reduction by
electrolysis
Iron

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ArcelorMittal strategy towards low-emissions steelmaking
With its high-tech gasification technology, the modern steel 
industry is the ideal sector to advance the circular economy 
Circular
Carbon
by reusing bio-waste, plastic waste, and agricultural and 
forestry residues.
Low-emissions
steelmaking
Fossil Fuels
Clean
with CCS
Power
Torero: reducing iron ore with waste carbon
Figure 6: the Torero process
Today, most blast furnaces reduce iron ore using a high-
temperature, synthetic gas derived from coal and coke. This 
makes the modern blast furnace with its high-tech gasification 
Blast furnace
technology ideal for replacing fossil fuels with ‘circular carbon’ 
inputs, such as bio-waste, including agricultural and forestry 
residues, and even waste plastics. 
Biocoal
Our Torero project targets the production of bio-coal from 
waste wood to displace the fossil fuel coal that is currently 
injected into the blast furnace. We are developing our first 
large-scale Torero demonstration plant in Ghent, Belgium. 
In this €40 million project (with €12 million funding from 
EU Horizon2020) we aim to convert 120,000 tonnes of 
waste wood annually into bio-coal. This source of waste wood 
Torrefaction
is considered hazardous material if burnt in an incinerator 
as harmful gases would be emitted, but in the blast furnace 
no such pollutants can be formed. 
Future projects would see expansion of sources of circular 
carbon to other forms of bio-based and plastic waste.
Waste
biomass

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Waste CO  can be reformed into a synthetic gas suitable for 
2
reducing iron ore, giving it a second life. Our ultimate goal is 
Circular
Carbon
to use clean power and waste plastics for low-emissions 
circular carbon steelmaking.
Low-emissions
steelmaking
Fossil Fuels
Clean
with CCS
Power
IGAR: reforming carbon to reduce iron ore
Figure 7: IGAR process
The IGAR13 project aims to capture waste CO  from the blast 
2
furnace and convert it into a synthetic gas (syngas) that can 
be reinjected into the blast furnace in place of fossil fuels to 
Blast furnace
reduce iron ore. Since the amount of coal and coke needed 
in steelmaking is reduced, this process helps to reduce 
CO  emissions. 
2
The syngas we need is made up of carbon monoxide (CO) and 
hydrogen (H ). To form this, waste CO  is heated with natural 
2
2
gas (CH ) to very high temperatures using a plasma torch – 
4
a process called dry reforming. 
In future, we hope to use bio-gas or waste plastics in place of 
natural gas, furthering the use of circular carbon. And with the 
plasma torch running on clean power, the entire process enables 
CO
substantial emissions reductions.
CO+H2
2
The IGAR project has seen a number of phases. Last year, to 
overcome the corrosive effects of the high-temperature syngas 
involved, our R&D labs in Maizières, France, developed both the 
specialist metals and refractories needed. 
Today in Dunkirk, France, ArcelorMittal is running a €20 million 
project, supported by the French ADEME, to construct a plasma 
Plasma torch
torch. To test-use the hot syngas created by the plasma torch, 
a pilot project is also running at the same plant. 
Electricity
Biogas
Plastics
13 Injection de Gaz Réformé


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ArcelorMittal strategy towards low-emissions steelmaking
The carbon-intensive gas produced in ironmaking is an ideal 
feedstock for biotechnology. With our partner Lanzatech we 
Circular
Carbon
are working on a family of novel recycled chemicals: Carbalyst®
Low-emissions
steelmaking
Fossil Fuels
Clean
with CCS
Power
Carbalyst®: capturing carbon gas and recycling 
Figure 8: Carbalyst® technology
into chemicals
The waste gases that result from iron and steelmaking are 
Blast furnace
composed of the same molecular building blocks – carbon 
and hydrogen – used to produce the vast range of chemical 
products our society needs. Today most waste gas is 
incinerated, resulting in CO  emissions.
2
With our partner Lanzatech, supported by the EU Horizon2020 
Steelanol project, we are building the first large-scale plant to 
capture the waste gas and biologically convert it into bio-ethanol, 
the first commercial product of our Carbalyst® family of 
recycled carbon chemicals. Thanks to a lifecycle analysis study, 
we can predict a CO  reduction of up to 87% compared with 
2
fossil transport fuels, so this bio-ethanol can be used to support 
CO
the decarbonisation of the transport sector as an intermediate 
solution during the transition to full electrification. In the future, 
we will expand the family of Carbalyst® products to other 
biochemicals and biomaterials.
Construction started recently on a €120 million demonstration 
facility in Ghent, Belgium. Once completed in 2020, the facility 
Plastic
Chemicals
Fuel
Fabrics
will capture around 15% of the available waste gases at the 
plant and convert them into 80 million litres of ethanol per year. 
This result will be a CO  reduction equivalent to 100,000 
2
electric vehicles or 600 transatlantic flights per year.
Carbalyst®
Ethanol
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We are integrating breakthrough technologies to bring down 
the costs of capturing, purifying and liquefying CO  from our 
Circular
Carbon
2
waste gases. Liquid CO  can be made available to other 
2
industries for reuse, or transported for storage underground.
Low-emissions
steelmaking
Fossil Fuels
Clean
with CCS
Power
Carbon2Value: capturing fossil fuel carbon for 
Figure 9: fossil fuel carbon capture and storage
storage or reuse
Developing cost-effective technologies to capture and separate 
Blast furnace
CO  from our waste gases, and liquefy it for subsequent 
2
transport and storage or reuse, could be key to the transition 
to low-emissions steelmaking. Combining this with a circular 
carbon energy input would further reduce CO  emissions.
2
A pilot plant to capture CO  has been built in Ghent, Belgium, 
2
together with Dow Chemicals as part of the Carbon2Value 
project supported by INTERREG2Seas.14
Additionally, at Dunkirk, France, a €20 million industrial pilot 
to capture CO  using only low-temperature waste heat is under 
2
construction with our partner IFPen, supported by the French 
administration ADEME. This pilot project is aimed at achieving 
the cost reductions required to make such processes 
commercially viable.
CO2
CO2
CO2
CARBON CAPTURE
CO2
CO2
CO2
Storage
Transportation
14  Interreg2Seas: North of France, Flanders, South of Netherlands and UK

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ArcelorMittal strategy towards low-emissions steelmaking
Abundant and affordable clean power would also enable  
low-emissions steelmaking with ‘green hydrogen’. We are 
Circular
Carbon
preparing a demonstration project in Hamburg to test this 
on a large scale. 
Low-emissions
steelmaking
Fossil Fuels
Clean
with CCS
Power
H  Hamburg: reducing iron ore with hydrogen
2
Figure 10: reducing iron ore with hydrogen
Today, in a Direct Reduced Iron (DRI) furnace fed with natural 
gas (CH ), approximately 50% of the reaction comes from 
4
hydrogen (H ), and the remainder from carbon monoxide. 
2
Technologies can be developed to increase the proportion 
of hydrogen used up to 100%.
Iron ore
We are planning a new project at our Hamburg site to use 
hydrogen on an industrial scale for the direct reduction of iron 
ore in the steel production process. Project costs amount to 
around €65 million. 
Waste gas 
processing
The project will allow us to develop an understanding of how 
our existing DRI plants could take advantage of green hydrogen 
(generated from renewable sources), should this become 
available and affordable at some point in the future. While 
theoretically the reduction of iron ore with pure hot hydrogen 
H2
is understood, a large number of practical roadblocks still exist. 
Hydrogen
gas reduction
These can only be studied when the process is running on a large 
H
scale, which has until now not been done due to the lack of 
2
hydrogen infrastructure. 
Green 
hydrogen
The process of reducing iron ore with hydrogen will first be 
tested using hydrogen generated from gas separation. We aim 
to achieve the separation of H  with a purity of more than 95% 
2
from the waste gas of the existing plant, using a process known 
Iron (DRI)
as ‘pressure swing absorption’. In the future, the plant should 
also be able to run on green hydrogen when it is available in 
sufficient quantities at affordable prices.
The experimental installation at the Hamburg DRI plant will 
demonstrate the technology with an annual production of 
100,000 tonnes.

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Once affordable clean power is abundantly available, direct 
electrolytic iron ore reduction becomes a very attractive route. 
Circular
Carbon
With the Siderwin project, we are building an industrial pilot. 
Low-emissions
steelmaking
Fossil Fuels
Clean
with CCS
Power
Siderwin: reducing iron ore via electrolysis
Figure 11: the Siderwin process
In principle, iron can be reduced from iron ore (Fe O  or Fe O ) 
2
3
3
4
through direct electrolysis. When iron ore is introduced into an 
electrolytic bath (a bath with an electrical current running 
through two electrodes), the iron (Fe) will be attracted to one 
electrode and the oxygen (O) to the other.
Iron ore
Our R&D laboratories in Maizières, France, have developed 
the first electrolytic cell prototype, proving the viability of 
iron electrolysis. It also showed that the process can operate 
in a highly flexible start/stop mode, ideal for power grids 
Electricity
dependent on large amounts of intermittent renewable power. 
Moreover, our tests have shown that less power is required 
than is needed to make hydrogen from water using electrolysis.
ArcelorMittal is the lead company of the Siderwin project, which 
is further developing this technology. Together with 11 partners 
and with €7 million funding from EU Horizon2020, a three-

+
metre industrial cell is under construction and various types 
of iron ore sources (including waste sources) will be tested. 
Fe
O2
With sufficient access to affordable clean power, the 
development of this process will pave the way to zero-
emissions iron ore reduction. 
Electrolytic bath 
Iron

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6  Policy recommendations 
ArcelorMittal advocates the development and 
implementation of carbon regulations and market 
mechanisms to enable the rapid deployment of 
low-emissions steelmaking that will deliver the 
global objectives of the Paris Agreement. 
Global recommendations
Box 7: ResponsibleSteel™
1. Global level playing field. A global framework to create 
ArcelorMittal has taken a leading role in forming 
a level playing field is needed to avoid the risk of carbon leakage, 
ResponsibleSteel™, the steel industry’s first multistakeholder 
for example, through green border adjustments. This is to 
global certification initiative. ResponsibleSteel™ aims to give 
ensure that steelmakers bearing the structurally higher 
businesses and consumers confidence that steel certified 
operating capital costs of low-emissions technology can 
under this standard has been sourced and produced 
compete with imports from higher-emissions steelmakers. 
responsibly at all levels of the supply chain: from mining to 
2. Access to abundant and affordable clean energy. Policies 
production processes, to final stage sales and distribution. 
giving the steel industry access to abundant and affordable 
The certification standard includes requirements on carbon 
renewable electricity will be key to scaling up the Clean Power 
alongside other air emissions, water responsibility, 
pathway. For acceleration of the circular carbon pathway, the 
biodiversity, human rights, labour laws, local communities, 
steel industry requires priority access to biomass and waste. 
business integrity and supply chain management. 
3. Facilitating necessary energy infrastructure. In addition to 
The carbon standards within ResponsibleSteel™ are 
abundant renewable electricity, policies to support investments 
undergoing consultation in 2019 and are expected to be 
in hydrogen infrastructure will be needed to advance large-scale 
in line with the Paris Agreement. So whilst this initiative 
hydrogen-based processes. Similarly, for the Fossil Fuels with 
will not compensate steelmakers for the structurally higher 
CCS pathway, enabling policies are also important to accelerate 
costs of low-emissions steelmaking, it could play an 
the development of carbon transport and storage infrastructure 
important role in driving the commitment of steel 
and services. 
companies to achieving the Paris objectives.
4. Access to sustainable finance for low-emissions 
steelmaking. The scale of the challenge requires an acceleration 
of technology development and roll out. Breakthrough 
steelmaking technologies need to be identified as a key priority 
area for public funding. 
5. Accelerate transition to a circular economy. Materials 
policy should divert waste streams from landfill and incineration. 
It should focus on driving recycling and reuse of all waste 
streams and incentivise the use of waste streams as inputs in 
manufacturing processes. It should reward products for their 
reusability and recyclability. 
Given that our most substantial climate-related risks are located 
in the EU, we present specific policy recommendations for this 
region in box 8.

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Box 8: long-term EU climate policy recommendations for steel
To reduce the risk of carbon leakage, the EU Emissions Trading 
first step. The best way to do this in the framework of the EU 
Scheme (ETS) includes a system of free allocation of emissions  ETS is to implement a green border adjustment, where steel 
allowances. The amount of allowances allocated to each facility  importers pay for the embedded CO  emissions of imported 
2
is based on a benchmark, which should mean that the top 10%  steel at the same rate as European manufacturers. This would 
best performing plants are not faced with additional carbon 
safeguard the competitiveness of the European steel industry. 
costs. However, the benchmark currently determined for 
We are engaging with European governments on the 
integrated steel plants means that even the best performing 
implementation of a green border adjustment, a position 
plant in the world must purchase emissions allowances. 
also supported by the European Steel Association (Eurofer). 
In Phase 4 of the EU ETS, we could face an increase in marginal  2. Access to abundant and affordable clean energy. 
production costs by around €50 per tonne of steel15 with €5 
This is currently not available nor economically viable in 
billion in potential cumulative costs as a result (see chapter 8). Europe. Improvements are therefore needed in the EU state 
aid rules for energy and environment to enable the roll out 
At the same time, steel is also imported into Europe, often 
of low-emissions steelmaking. 
from countries without a comparable carbon cost. This means 
that EU producers absorbing the structurally higher structural  3. Access to sustainable finance for low-emissions 
costs of breakthrough technologies are competing against 
steelmaking. Some of our current R&D projects are funded 
more carbon-intensive manufacturers with lower operating 
by EU Horizon 2020. Accelerating and rolling out low-emissions 
costs. A recent study estimated that about a quarter of global  steelmaking will need further public funding through, for 
CO  emissions are embedded in products that are traded 
example, the EU ETS Innovation Fund. Definitions of projects 
2
across national boundaries, a substantial share of which 
eligible under the draft EU Sustainable Finance legislation 
contain steel.16 
should consider their contributions to the low-carbon circular 
economy. In particular, the development of smart circular 
Without a green border adjustment, the lowest-cost approach  carbon loops should be incentivised. 
to reduce GHG emissions within the EU ETS is to import steel 
from outside the EU (carbon leakage). 
4. Update the benchmark methodology for free allocation 
in Phase 4 of the EU ETS to make it technically feasible.
In addition to the global policy recommendations, therefore, 
the following are needed in the European context:
5. Accelerate transition to a circular economy. EU climate 
and materials policy should be integrated, taking a lifecycle 
1. Green border adjustment to ensure level playing field. 
perspective to ensure that materials are used in as circular 
To incentivise long-term investments in carbon efficiency and  way as possible.
low-emissions technologies, a level playing field is an essential 
15  Assuming an EU Emissions Al owance price of €25/t CO  and a carbon intensity of about 2 tonnes of CO /t primary steel. 
2
2
16  KGM, GEI and ClimateWorks Foundation (2018), The Carbon Loophole in Climate Policy. 

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7  Carbon performance and targets
ArcelorMittal is making more primary steel, but emissions intensity 
remains constant.
Carbon intensity improvements
The overall average carbon footprint intensity of all our 
By comparison, the global average carbon footprint intensity 
steelmaking routes was 2.12 tCO  per tonne of crude steel 
is 1.83 tCO  per tonne of crude steel.19 ArcelorMittal’s higher 
2
2
in 2018.17 As shown in figure 14, this has remained relatively 
average intensity is due to our higher use of the emissions-
stable since 2007 (although when looking at the sites we own 
intensive primary steelmaking route: in 2018, we used this 
today that we operated in 2007, there is a 6% improvement 
route for 78% of our steelmaking, compared to a global average 
over the same period). During this period, the share of primary 
of about 72%.20
steelmaking in our production increased from 73% to 78% 
as we responded to changes in structural market demand.18 
Figure 13: carbon emissions and our changing portfolio 
Primary steelmaking using coke and coal to reduce iron ore is 
more carbon-intensive than secondary steelmaking using scrap 
Steel Production
Average CO  intensity
2
powered with electricity. The increase in the primary:secondary 
(million tonnes of crude steel)
(tCO /tonne of crude steel)
2
production ratio would, other things being equal, lead to an 
120
2.5
increase in the average carbon intensity of our steel. However, 
as shown in figure 14, this is not the case, and our carbon 
100
intensity has remained relatively constant. During this period, 
we have seen improvements in energy and yield efficiencies in 
80
our primary steelmaking plants, and a reduction in the carbon 
intensity of the electricity grid used in our EAF plants. These 
two factors are effectively negated by the increased proportion 
60
2.0
of primary steelmaking, leaving the overall average carbon 
intensity of our steel in 2018 at a similar level to 2007.
40
20
0
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Average CO  intensity
BF-BOF
DRI-EAF
EAF
2
17  This carbon intensity covers all plants which were in our operational control in the reporting year. Using worldsteel methodology, data covers scope 1 and 
scope 2 CO  emissions, as well as those scope 3 emissions covering purchased pre-processed materials or intermediate products. Comparison is thus of CO  
2
2
emitted for each tonne of steel made within a uniform boundary, and may relate to a broader perimeter than is represented in other steel company data.
18  The financial crisis in 2007/8 led to a protracted decline in demand for steel, particularly from the construction industry in developed countries. In response, 
we gradual y reduced our steel production from EAFs in Europe and North America, which serve these markets. We have also seen a relative rise in the 
demand for flat products over this time, which are mainly made from the primary BF-BOF route.
19  World Steel Association, Sustainable Steel: Indicators 2018 and industry initiatives. 
20  World Steel Association, World Steel in Figures 2018.

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Our carbon target
Our total CO  footprint across our steelmaking sites was 
ArcelorMittal’s current target is to reduce our average carbon 
2
194 million tonnes of CO  in 2018. ArcelorMittal also has 
footprint intensity by 8% by 2020 against a 2007 baseline. 
2
mining activities which had a carbon footprint of nearly 
This target relates to those sites we operate today that we 
9 million tonnes of CO  equivalent in 2018. 
owned back in 2007, and therefore excludes acquisitions 
2
and divestments. 
Our pursuit of this target since 2007 has focused on efficiency 
and process improvements, many of which have been capital-
Figure 14: CO  emissions from steelmaking 2018  
intensive (see chapter 5). By the end of 2018, we had achieved 
2
(million tonnes)
a 6% reduction since 2007.
Towards a new carbon target
3
2
We are now focusing on building a roadmap which will underpin 
a new 2030 carbon reduction target for our steelmaking 
Total
operations. This will incorporate both the potential for further 
194.12
technical efficiencies across our portfolio and a limited 
deployment of breakthrough technologies from our 
Scope 1: 167.35
innovation programme.
Scope 2: 12.12
1
Scope 3: 14.65

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Carbon performance and targets
ArcelorMittal’s underlying carbon efficiency is improving. 
Carbon efficiency 
Figure 15: carbon efficiency improvement per tonne 
hot rolled coil (2007=100) 
Steelmaking is dependent on a number of external factors 
influencing the carbon footprint intensity of steel. In order 
Carbon efficiency 
105 100=2007 level
to understand the underlying carbon performance of our 
sites, ArcelorMittal created an internal metric in 2007.21 
This normalises the carbon inputs and outputs of each process 
100
to understand the performance gaps between our different 
sites. The sheer number of sites in our portfolio enables us to 
use this metric to benchmark the carbon efficiency of each one.
-9%
95
This process standardises the major external factors that 
influence carbon emissions such as raw material quality, scrap 
and slag reuse, and the emissions intensity of national electricity 
90
grids. These factors are mainly related to market forces and 
government policies, which we have limited ability to change 
while remaining competitive in the global steel market. 
85
In the absence of these factors, our carbon efficiency metric 
allows us to monitor the performance of our sites in relation 
to those factors which we do directly control, such as the way 
80
our staff manage and reuse energy and carbon onsite, and the 
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
technologies we deploy.
The metric shows a 9% improvement in the carbon efficiency 
of our sites since 2007, as shown in figure 16. This is mainly 
due to our continued investment in process and efficiency 
improvements. It is notably greater than the progress we have 
made in our overall average carbon footprint intensity, which 
is influenced by the external factors described above.
21  NB This is a different metric to that used for our carbon intensity target.

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Summary of key metrics
Metric
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Steel production 
113.9
102.3
73.1
92.5
92.2
88.6
90.9
93.4
92.7
90.4
92.9
91.5
(Mt crude steel)
BF-BOF / DRI-EAF /
77:8:15
77:8:15
79:7:15
78:7:15
79:8:14
79:8:13
79:8:13
80:8:12
81:7:11
85:6:9
84:7:9
83:7:10
scrap-EAF ratio
Total CO  emissions 
244
227
164
201
194
189
195
196
198
193
196
194
2
(MtCO ) – steel only22,23
2
Scope 1 
203
189
135
167
163
159
162
167
168
167
170
167
Scope 2
24
23
18
19
18
17
18
14
14
12
13
12
Scope 3
17
15
11
15
13
13
16
14
15
14
13
15
Avoided CO  emissions 
11
10
7
8
9
9
10
10
10
10
11
11
2
from slag used in cement 
(MtCO )
2
Avoided CO  emissions 
53
44
33
41
40
38
40
40
38
35
38
37
2
from use of scrap steel 
(MtCO )
2
Average CO  intensity 
2.14
2.22
2.25
2.18
2.10
2.14
2.14
2.10
2.14
2.14
2.12
2.12
2
(kgCO  / t crude steel)24
2
Average BF-BOF CO  
2.44
2.54
2.57
2.48
2.38
2.40
2.41
2.35
2.37
2.33
2.31
2.33
2
intensity (kgCO  / t 
2
crude steel)
Average scrap-EAF CO  
0.74
0.67
0.65
0.66
0.67
0.66
0.70
0.63
0.61
0.53
0.60
0.66
2
intensity (kgCO  / t 
2
crude steel)
Change in crude steel 
0.0%
3.3%
2.6%
0.3%
-4.3%
-4.1%
-3.3%
-5.8%
-4.1%
-5.2%
-6.2%
-5.6%
carbon intensity since 
2007 (target – 8% 
by 2020)
% sites below 
13%
19%
22%
28%
31%
33%
30%
38%
38%
42%
50%
44%
ArcelorMittal carbon 
efficiency benchmark
Approvals for energy 







180
11
108
373
247
efficiency capital 
investment projects 
(mil ion USD)25
 
 22  Using worldsteel methodology, which ensures that CO  emissions for each tonne of steel are measured for the same set of steelmaking processes, whether or 
2
not they are owned by the reporting company.
23 Our mining footprint was under 9 mil ion tonnes CO  equivalent in 2018.
2
24  The boundary for this metric covers all of our sites; it is different to the boundary for our carbon reduction target, which only includes sites we have owned 
since 2007.
25 Before 2014, reporting on capex approvals was not broken down by type.

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8  Governance and risk
Board of Directors
Chaired by CEO and Chairman Lakshmi Mittal.
The Board and Chairman have overall responsibility for the 
governance and strategic direction of ArcelorMittal, which 
includes taking into account the effects of climate change. 
The Board has two committees with further oversight and 
responsibilities on climate-related issues. Risks are also 
considered by boards of subsidiaries worldwide. 
Appointments, Remuneration, Corporate 
Audit & Risk Committee 
Governance and Sustainability (ARCGS) 
 
Committee
Chaired by non-executive independent director 
Chaired by lead independent director  
Karyn Ovelmen.
Bruno Lafont.
The Audit & Risk Committee ensures that 
the interests of the company’s shareholders 
The ARCGS oversees the implications of 
are properly protected in relation to risk 
sustainability issues under five sustainability 
management, internal control and financial 
pillars, of which one is climate change. The chair 
reporting. It oversees both the identification 
of the ARCGS also liaises closely with the chair 
of risks to which the ArcelorMittal group is 
of the Audit & Risk Committee. 
exposed, via regular senior management reports, 
The Committee considers the implications of 
and the management response to these risks. 
climate change for the business and oversees the 
company’s strategic planning in response to the 
risks and opportunities that arise. It receives 
regular reports from senior management, led by 
executive officer Brian Aranha, on stakeholder 
expectations, the company’s low-emissions 
technology strategy, climate-related policy 
engagement and carbon performance. 
Risk identification and reporting
ArcelorMittal identifies, assesses and manages risks – including 
The company uses a risk management framework based on 
climate-related risks – on an ongoing basis. The group level 
a blend of a COSO, ISO 31000 and an in-house model. Sites 
strategy, R&D and sustainable development functions, and 
assess risks by assigning them a probability of occurrence and 
segment level experts where appropriate, assess social, 
a potential financial impact and/or non-financial consequence 
environmental, regulatory, stakeholder and technological trends 
such as environmental harm. The corporate risk officer works 
on an ongoing basis. In the medium to long term, climate change  with the environment team to track and strengthen site-level 
poses a number of risks to the business, as identified on pages 
understanding of environmental risks. The corporate risk officer 
34-35. Key risks are analysed by building models and developing  uses Monte Carlo simulations to conduct a stress-testing exercise 
scenarios to understand potential financial impacts, such as our 
for the consolidated top ten short-term risks above a $50 million 
exposure to the EU ETS in Phase 4. 
materiality threshold. This exercise quantifies the financial impacts 
for each top risk to an appropriate confidence level, and the 
Short-term risks within a 12-month timeframe are identified 
outcome is shared with the Audit & Risk Committee. 
through a bottom-up process by site management teams. 
Business segments consolidate the identified risks and report 
the top risks to the CEO office quarterly. 

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Group executive management
The CEO office (chief executive officer, Mr. Lakshmi N. Mittal,  committee. Responses are determined by each business 
and president and chief financial officer, Mr. Aditya Mittal) 
segment, on the basis of the markets they serve and 
works closely with relevant executive officers and members  national or regional regulatory trends. 
of the senior management on key strategic issues. 
Business segment CEOs report quarterly to the CEO office 
Executive officer Brian Aranha oversees the Group’s strategy 
on climate change. Europe Flat Products currently faces the 
on climate change and emissions reporting, as well as relevant  most significant climate-related regulatory risk due to 
corporate functions covering strategy, technology, R&D, 
its exposure to the EU ETS. Executive vice-president and 
communications and corporate responsibility. 
CEO ArcelorMittal Europe Flat Products, Geert Van Poelvoorde 
reports on the strategy and performance of this business 
Climate-related risks and group-level strategy are 
segment. 
discussed regularly at the group-wide management 
Investment Allocations 
Climate & Environment 
Global Breakthrough 
Government Affairs 
Committee 
Working Group 
Technology Council 
Council 
(GBTC)
Chaired by executive 
Chaired by executive 
Chaired by Carl de Mare, 
Chaired by Frank Schulz, 
officer Brian Aranha.
officer Brian Aranha.
VP, technology strategy.
VP government affairs. 
This committee also 
The group is responsible for 
The GBTC consists of 
This group is responsible 
includes VP technology 
informing and shaping the 
regional/project based 
for aligning local climate 
strategy and VP head of 
company’s climate change 
R&D officers. GBTC 
change policy strategies 
strategy. This committee 
strategy. Members of 
coordinates progress on 
with the overall Group 
makes capex decisions, 
the group include VP 
the low-emissions 
strategy. This ensures 
which includes investment 
government affairs, VP 
technology programme.
consistent engagement 
to improve environmental 
corporate communications 
activities on climate-
performance, energy and 
& CR; VP head of strategy; 
related issues across 
carbon efficiencies. 
VP technology strategy; 
the Group. 
GM, head of SD. 
This group links to the 
GBTC via VP technology 
strategy. 
Risk management and strategic planning
Climate-related trends and risks identified by management 
Central to our approach to mitigating our key climate-related 
are used to inform the company’s strategic outlook, led by 
risk – policy risk – is our adoption of a low-emissions technology 
executive officer Brian Aranha. This is discussed on a regular 
strategy. Integral to this is our work to engage policymakers 
basis by the Group management committee. 
on supportive frameworks to enable significant emissions 
reductions to be viable, as outlined in this report. At the same 
To develop our response to our longer-term climate-related 
time, all our business segments are required to prepare CO  
risks and opportunities, we assess long-term market trends 
2
reduction plans as part of the annual planning cycle. 
such as scrap metal availability, develop alternative low-
emissions technologies, undertake cost analysis of these 
This report, and the assessment of the resilience of our business 
technologies, engage continuously with key stakeholders, 
to the transition and physical risks described in this report, has 
and analyse the implications of different levels of policy 
been discussed and approved by executive officer Brian Aranha; 
support through the scenario analysis outlined in this report. 
president, group CFO and CEO ArcelorMittal Europe Mr. Aditya 
Mittal; lead independent director and ARCGS committee chair 
Bruno Lafont; and chairman and CEO Mr. Lakshmi N. Mittal.

link to page 16 link to page 32 link to page 16 link to page 22 link to page 22 link to page 22 38
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Governance and risk
Managing climate-related risks
At ArcelorMittal, we review our risk universe regularly, including specific climate-related risks. In summary, we have identified and 
are managing the following top climate-related risks: 
TRANSITION RISKS Type & status
Response
Policy & 
Our most substantial climate-related policy risk is the EU ETS, which 
We are developing a range of 
Regulation
applies to all our European plants, making up 44% of our total capacity. 
low-emission technologies, 
The risk concerns our primary steelmaking plants which are exposed to 
and many of these to 
this regulation and yet unprotected against competition from imported 
demonstration stage. 
steel. We have evaluated this risk against a carbon price of €15 per 
However, significant long-
tonne of CO , and the cumulative risk exposure26 for our European 
term mitigation requires 
2
business over 2021 to 2030 stands at more than €3 bil ion, rising 
supportive policies to ensure 
to €5 bil ion under a carbon price of €25 per tonne of CO . 
the roll out of our low-
2
We are also tracking carbon market policy developments in South 
emissions technologies is 
Africa, Mexico, Brazil, Kazakhstan and Canada, where a further 30% 
viable. We have analysed the 
of our production capacity resides. We consider that the financial risks 
implications of different policy 
arising from these are less immediate. Furthermore, we are also closely 
and technology scenarios 
monitoring policy developments in the United States, which has shifted 
(see chapter 4) and this has 
from federal climate policy to more decentralised policies at the state 
informed our policy positions 
and local levels.
outlined in chapter 6.
In the medium term, we are 
developing an emissions 
reduction roadmap to support 
a new 2030 carbon target.
Reputation
Our stakeholders’ views on our response to the climate chal enge affect 
We respond to CDP annual y. 
the ratings we receive from investors. In the context of the transition 
We also engage with 
to a low-emissions economy, our social licence to operate is defined 
stakeholders on climate risk 
by several key factors including: our transparency on carbon emissions, 
issues and we hope that this 
our ability to communicate on a complex subject, and our ability to 
Climate Action Report helps 
make a credible commitment to meeting the objectives of the 
to build further understanding 
Paris Agreement. 
of our climate-related 
commitments and current 
constraints.
Technology
As the world acts to mitigate GHG emissions, investments in 
See chapter 4 on low-
technological innovations such as Carbalyst® and Torero are vital to our 
emissions technology 
long-term resilience and competitiveness. The risk of these technologies  pathways and policy scenarios.
not becoming viable for us in the medium to long term is dependent on 
See chapter 5 on 
the development of the technologies, the availability of investment to 
ArcelorMittal’s low-emissions 
implement them, access to sufficient renewable energy to support 
innovation programme.
them, and policies that promote these conditions. Novel technologies 
require a long timeline to be scaled up. The risk is increased by the slow 
and uncertain development of policies needed to create sufficient 
incentives to exploit these opportunities. A key problem is that current 
policies are based on a linear economic model; by contrast, the novel 
technologies we are already advancing adopt a circular approach to 
reusing resources and so both energy and materials policies need to 
be integrated. 
26 Non discounted with current technologies

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TRANSITION RISKS Type & status
Response
Market
We have faced the risk of substitution from competing materials 
We continue to grow 
displacing steel in particular applications. We have seen this from 
opportunities in all these 
aluminium and cement due to an excessive focus on emissions from 
markets, for example via our 
products in their use phase only (where the lightest weight wins) 
S-in motion® and Steligence 
rather than on a whole lifecycle basis (cradle to grave). However, 
programmes (see page 5).
as customers deepen their understanding of embedded and lifecycle 
emissions of the materials, steel compares favourably, and so we see 
this risk diminishing. 
With the switch to electric vehicles, we see opportunities for 
high-strength steels for battery protection and electrical steels. 
We also project that the move to wind and solar power generation 
wil  require more steel per unit of electricity generated compared 
to conventional technologies.
PHYSICAL RISKS Type & status
Response
Acute  
Adverse weather events, such as extreme low temperatures in North 
Our risk management process 
physical risks
America, very high winds in Europe and flooding in Spain have on 
enables us to build resilience at 
occasion hampered our supply and distribution routes. Our Calvert JV 
our plants and in supply chains 
plant is in an area prone to hurricanes and tornadoes, and wildfires are 
where extreme events already 
a risk to our sites in Kazakhstan and South Africa. With 3 to 4°C of 
occur; this may need further 
warming, hurricanes are projected to increase in intensity – along with 
development where extreme 
associated increases in heavy precipitation – but not in frequency. 
events are currently rare, 
but may be more frequent 
or intense in the future.
Chronic 
Water is crucial to our steelmaking processes and where plants are in 
Where these risks exist, such 
physical risks
areas of water stress, this is even more important. Some facilities are 
as in South Africa and Brazil, 
at risk of being affected by long periods of drought conditions.
we have developed local 
resource management plans 
to ensure that operational 
water requirements can be 
met. We are ful y engaged with 
local stakeholders on this issue.

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9  Alignment with TCFD recommendations
Further information  
TCFD Recommended Disclosures
Chapter
(where applicable)
Governance
A)  Describe the board’s oversight of climate-related risks and 
8
opportunities.
B)  Describe management’s role in assessing and managing risks 
8
2018 CDP Climate Change 
and opportunities.
response C1.2
Strategy
A)  Describe the climate-related risks and opportunities the 
2, 3, 8
2018 CDP Climate Change 
organisation has identified over the short, medium, and 
response C2.1, C2.2c, C2.3a, 
long term.
C2.4a 
B)  Describe the impact of climate-related risks and 
5, 8
P13 – 15 Form 20f Item 3 
opportunities on the organisation’s businesses, strategy, 
Section D. Risk Factors27
and financial planning.
2018 CDP response C2.3, 
C2.5, C2.6
C)  Describe the resilience of the organisation’s strategy, 
4
2018 CDP response C3.1
taking into consideration different climate-related scenarios, 
including a 2°C or lower scenario.
Risk Management
A)  Describe the organisation’s processes for identifying and 
8
2018 CDP response C2.2b
assessing climate-related risks.
B)  Describe the organisation’s processes for managing 
8
2018 CDP response C2.2d
climate-related risks.
C)  Describe how processes for identifying, assessing, and 
8
managing climate-related risks are integrated into the 
organisation’s overall risk management.
Metrics and Targets
A)  Disclose the metrics used by the organisation to assess 
7
2018 CDP response C4.1b
climate-related risks and opportunities in line with its 
strategy and risk management process.
B)  Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 
7
2018 CDP response C5.1, 
greenhouse gas (GHG) emissions, and the related risks.
C6.1, C6.3, C6.5
C)  Describe the targets used by the organisation to manage 
7
2018 CDP response C4.1b
climate-related risks and opportunities and performance 
against targets.
27  https://corporate.arcelormittal.com/~/media/Files/A/ArcelorMittal/investors/20-f/2018/form-20f-2018.pdf


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10 Annex 1: The steelmaking process 
Steel is a material that consists almost completely of iron, with 
small shares of carbon and even smaller shares of other elements 
such as manganese and nickel. Today, steel is primarily made using 
two different technologies: the integrated steel plant and the 
electric arc furnace (EAF).
We use an integrated steel plant to make primary steel 
(i.e. virgin steel) mostly from iron ore, which is extracted 
from mines, and a small share of scrap steel. As iron ore – 
a compound made up of iron and oxygen – is found in nature, 
it is chemically a very stable compound. Iron is not alone in this 
respect – most metals from aluminium to uranium are found in 
nature bound to oxygen. In primary steelmaking, we use energy 
and carbon to separate iron from oxygen in a blast furnace, and 
in subsequent steps, we adjust the product chemically and 
physically into the final desired form with characteristics such 
as strength, flexibility and corrosion tailored to the needs of the 
end user. 
In contrast, in an electric arc furnace (EAF), we use scrap steel 
and/or scrap substitutes such as direct reduced iron (DRI). 
We melt these materials using electrical energy, thus entirely 
replacing all of the steps up to and including the energy-
intensive blast furnace. Similar to the integrated steel plant 
route, we cast, and then shape or roll the liquid steel produced 
from the EAF into its final form.
These two steelmaking routes are outlined in more detail on the 
following two pages.

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The steelmaking process 
Figure 16: steelmaking at an integrated steel plant (using iron ore)
CO
CO
Main inputs
2
Main outputs
Blast 
furnace
Coke
1 tonne steel
Coke oven
Coal
Pulverised coal
CO
CO
2
2.3 tonne CO *
2
Sinter
Oxygen
Sintering
furnace
Iron ore
plant
Waste gases
Hot metal
Slag
* Source: 
Scrap
  Energy Transitions 
 Commission
Integrated steel plant
Preparation of materials for the 
Ironmaking in the blast furnace
Steelmaking in a basic oxygen furnace 
blast furnace
In the blast furnace, we load sinter, coke 
To make steel, we need to adjust the 
The first steps in the primary steelmaking  and lime into the top, and we inject hot air  chemical composition of the liquid hot 
route are to prepare the materials used 
from the bottom. We also inject pulverized  metal in a basic oxygen furnace (BOF). 
in the blast furnace – coke and sinter. 
coal into the blast furnace to reduce the 
We charge the furnace with 15-25% 
Coke is a material high in carbon made 
amount of coke used, which reduces costs  scrap steel and 75-85% liquid hot metal. 
by heating metallurgical coal at high 
as well as CO  emissions. The hot air reacts  We also inject oxygen into the furnace, 
2
temperatures in a coke oven in the 
with the coke and coal to form carbon 
which reacts with carbon and other 
absence of oxygen. The process of 
monoxide (CO), which is the reducing 
impurities in the liquid hot metal. In the 
making coke also results in the production  agent that separates the elements of iron 
BOF, the process converts the impurities 
of a hydrogen-rich synthetic gas (coke 
ore: iron and oxygen. When CO extracts 
into slag, which floats on top of the liquid 
oven gas) which we can use as an energy  oxygen from iron ore, CO  is formed. 
steel, and into waste gases (or BOF gas), 
2
source to heat coke ovens. Alternatively, 
Carbon is therefore essential in the 
which mostly consists of CO. 
we can use blast furnace gas to heat the 
integrated steel plant and CO  is an 
2
We tap the liquid purified steel into a steel 
coke oven. Combustion of these gases 
inevitable by-product of the chemical 
ladle, where we can further adjust the 
in the coke oven creates CO . 
reactions. The waste gases from the 
2
steel chemistry. We then transport it to 
process contain equal amounts of CO and 
Sinter is an agglomeration which is 
a continuous caster for casting and we 
CO , as well as hydrogen and nitrogen. 
produced from a mixture of all kinds of 
2
further shape or roll the steel into its 
iron ores, coal and coke particles. We 
Heat is also generated in the blast 
final form. Various finishing or coating 
ignite the coal/coke particles in the 
furnace, which is essential to melting the 
processes may follow this casting and 
mixture using coke oven gas, blast 
reduced iron ore to form liquid hot metal 
rolling. The steel slag is tapped into 
furnace gas or natural gas. This results in 
(molten iron). The impurities react with 
another vessel to be cooled down and 
sinter cake, which we later crush and cool.  lime to produce slag, which floats on top 
prepared for external use. 
CO  is a by-product of the sinter plant. 
of the liquid hot metal and contains 
2
Sinter accounts for about 70 to 90% of 
impurities in the iron ore, coke and coal 
the metals loaded into the blast furnace; 
ash. Slag has a chemical composition 
the remaining part of the burden consists  similar to clinker, which is used to make 
of pellets and lump ore. 
cement. This means that slag can be used 
as a substitute for clinker.

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Figure 17: EAF steelmaking (using scrap or DRI)
Main inputs
Main outputs
Main inputs
Main outputs
CO
CO
2
2
Electric arc furnace
Electric arc furnace
1 tonne steel
Iron ore
1 tonne steel
0.4 tonne CO *
1.5 tonne CO *
2
2
Direct reduced
Scrap
iron
Slag
Slag
* Source: 
Electricity
Natural gas
  Energy Transitions 
 Commission
Electric arc furnace
Most electric arc furnaces (EAFs) 
The quality of secondary steel produced 
We can also charge EAFs with DRI. DRI is 
are charged with scrap steel to make 
by the EAF route is primarily limited by 
made by reducing iron ore (i.e. separating 
secondary or recycled steel. As the 
the quality of the metallic raw materials 
iron and oxygen) using natural gas; 
process is mainly one of melting scrap 
used in steelmaking, which in turn is 
by-products of the process include CO . 
2
steel using electricity and not separating 
affected by the availability of high-quality  Steel made using this route can reach the 
iron from oxygen, carbon’s role is not as 
scrap. As described in chapter 3, we 
qualities obtained by an integrated steel 
dominant as it is in the integrated steel 
currently do not have enough scrap to 
plant, since DRI has fewer impurities than 
plant. In an EAF, direct CO  emissions are 
meet demand for steel. This means that 
scrap steel. In 2017, DRI accounted for 
2
mainly associated with the consumption 
today, it is most efficient to make lower 
about 7% of primary iron production, with 
of the carbon electrodes, and indirect 
grades of steel in an EAF, which have 
the remainder of iron produced via the 
CO  emissions are produced from the 
fewer constraints on impurities. 
blast furnace route.28
2
carbon intensity of the electricity grid. 
As with the integrated route, slag is also 
a by-product of EAF steelmaking. 
28  World Steel Association (2018), Steel Statistical Yearbook 2018. 

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11  Annex 2: Glossary
Basic oxygen steelmaking
The process whereby hot metal and steel scrap are charged into a Basic oxygen furnace (BOF). 
High purity oxygen is then blown into the metal bath, combining with carbon and other elements 
to reduce the impurities in the molten charge and convert it into steel.
Blast furnace (BF)
A large cylindrical structure into which iron ore is combined with coke and limestone to produce 
molten iron.
Circular carbon
Circular carbon energy sources include bio-based and plastic wastes from municipal and industrial 
sources and agricultural and forestry residues. The term may also refer to the reuse of carbon in 
circular flows throughout the economy, for example, in the production of plastics made from 
waste carbon. 
Coal
The primary fuel used by integrated iron and steel producers.
Coke
A form of carbonised coal burned in blast furnaces to reduce sinter, iron ore pel ets or other 
iron-bearing materials to molten iron.
Coke ovens
Ovens where coke is produced. Coal is usual y dropped into the ovens through openings in the 
roof, and heated by gas burning in flues in the walls between ovens within the coke oven 
battery. After heating for about 18 hours, the end doors are removed and a ram pushes the 
coke into a quenching car for cooling before delivery to the blast furnace.
Crude steel
Steel in the first solid state after melting, suitable for further processing or for sale. Synonymous 
with raw steel.
Direct reduction
A family of processes for making iron from ore without exceeding the melting temperature. 
No blast furnace is needed.
Electric arc furnace (EAF)
A furnace used to melt steel scrap or direct reduced iron.
Iron ore
The primary raw material in the manufacture of steel made up of iron and oxygen.
Limestone
Used by the steel industry to remove impurities from the iron made in blast furnaces. 
Magnesium-containing limestone, called dolomite, is also sometimes used in the purifying process.
Pellets
An enriched form of iron ore shaped into small balls.
Pig iron
High carbon iron made by the reduction of iron ore in the blast furnace.
Sintering
A process which combines ores too fine for efficient blast furnace use with flux stone. 
The mixture is heated to form lumps, which al ow better draught in the blast furnace.

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Published in May 2019
 
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