Members & Associates Day · Members & Associates Day. ResponsibleSteel™ Antitrust Statement Attendees are kindly reminded that ResponsibleSteel™ is committed to complying with

Members & Associates Day

WELCOME

Matthew Wenban-SmithExecutive Director, ResponsibleSteel


ResponsibleSteel™ Antitrust Statement

Attendees are kindly reminded that ResponsibleSteel™ is committed to complying with all relevant antitrust and competition laws and regulations and, to that end, has adopted an Antitrust Policy, compliance with which is a condition of continued ResponsibleSteel™ participation. Failure to abide by these laws can have extremely serious consequences for ResponsibleSteel™ and its participants, including heavy fines and, in some jurisdictions, imprisonment for individuals. You are therefore asked to have due regard to this Policy today and in respect of all other ResponsibleSteel™ activities.

Agenda

● The ResponsibleSteel Vision & Mission

● The ResponsibleSteel Standard: progress report and next

steps

Coffee

● ResponsibleSteel Claims

● Governance

● 2019 Planning Update

Buffet Lunch

ResponsibleSteel Vision & Mission

VisionSteel’s contribution to a sustainable society is maximised.

MissionTo enhance the responsible sourcing, production, use and recycling of steel by:

○ Providing a multi-stakeholder forum to build trust and achieve consensus;

○ Developing standards, certification and related tools;

○ Driving positive change through the recognition and use of responsible steel.

(old version – from August 2017)

VisionSteel’s contribution to a sustainable society is maximised.• All steel worldwide is sourced and produced

responsibly

Steel’s contribution to a sustainable society is maximisedwhen all steel worldwide is sourced and produced responsibly.

(old version – from February 2018)

VisionSteel’s contribution to a sustainable society is maximised.• All steel worldwide is sourced and produced

responsibly• Steel is used efficiently• The use of recycled steel is maximised

All of these elements are important, but ResponsibleSteelwill focus first on sourcing and production.

The ResponsibleSteel Standard

Progress and next steps


ResponsibleSteel Claims

Review and discussion of proposals and options

• “ResponsibleSteel certifiedsite”:whensitemeetsthresholdlevelofperformance,andrawmaterialsourcingsystem isinplace

• “ResponsibleSteel certifiedsteel”:whensiteatthresholdlevelorabove,plusrawmaterialsourcingperformance atthresholdorabove

• Performancemeasurescanbereportedforeachcriterion,forsteelmakingaswellasrawmaterials

• Overallperformancedetermineslevelofcertificationthatcanbeclaimedforbothsiteandsteelproduced– Level1,2or3.

ClaimsbyResponsibleSteelTM certificateholders

Level3:Best

Level1:Good

Level2:Better

Threshold

Target

ClaimssupportedbyuseofResponsibleSteelTM Logos

• ResponsibleSteelTM Member

• ResponsibleSteelTM CertifiedSite:(steelmakersonly)

• ResponsibleSteelTM CertifiedSteel:(steelmakersanddownstreamusers)

• Also:TechnicalPartner,notshown

ResponsibleSteelTM Members

Proposition• ResponsibleSteelTM MemberscanusetheMemberLogo• TheyhelpResponsibleSteelTM achieveitsgoalsthrough:

• TheirpublicsupportforResponsibleSteelTM,itsStandardsandgoals,• Theirfinancialcontribution,• Theirparticipationinstandardsdevelopment• Theirmembershipcommitments

• Theyachievevaluethrough:• Demonstrationofleadership• Demonstrationofcommitmenttocustomersthattheyareactively

engagedonissues• Valueofassociationwithbrand

OnlysteelmakingmembersmayusetheRSMemberlogo?

ResponsibleSteelTM CertifiedSitesProposition:• ResponsibleSteelTM certifiedsitescanusetheCertifiedSiteLogo• CertifiedsiteshelpResponsibleSteelTM achieveitsgoalsby:

• Carryingoutriskassessmentoftheirrawmaterialsupplies• Policyandprocedurestoeliminatehighrisksourcesofmaterialin

supplychain• MeetingthresholdlevelResponsibleSteelTM Standardrequirementsat

thesitelevel

• Certifiedsitesachievevalueas:• Demonstrationofcommitmenttocustomersthattheyareactively

engagedonissues• Meetingbasiccustomerandprocurementspecifications• Valueofassociationwithbrand

NB:onlyapplicabletosteelmakingsites.OnlyResponsibleSteel Memberscanapplyforcertification?

ResponsibleSteelTM CertifiedSteelProposition:• SteelmakersandusersofcertifiedResponsibleSteel steelcanusethe

CertifiedSteelLogo• ProducersandusersofResponsibleSteelTM CertifiedSteelhelp

ResponsibleSteelTM achieveitsgoalsby:• Eliminatinghighrisksourcesintheirsupplychain• Meetingrequirementsforhigherperformancelevelsforbothsite

managementandsourcingovertime,asrequiredbycustomers

• Theyachievevalueas:• Demonstrationofcommitmenttocustomersthattheyareactively

engagedonissues• Meetinghigherlevelcustomerandprocurementspecifications• Thevalueofthebrandtopromoteproductsmadefromorcontaining

certifiedsteel.

OnlyResponsibleSteel Memberscanapplyforcertification?

Governance

Governance Model: current and proposed

Timeline for implementation of new Constitution

New governance model agreed in principle, in discussion with stakeholders 2017

Process and timeline for establishing new model discussed with current SSC members and prospective members now

Jurisdiction for establishment of legal entity determined 2019 Q1

New constitution (and associated by-laws or equivalent) drafted as required for the agreed jurisdiction 2019 Q2

Legal establishment of new entity/ approval of new constitution: EGM

2019June

Transfer of IP etc to new entity/ies, if required 2019 Q3,Q4

Existing SSC membership transitions to new/ revised structure (e.g. formal application & approval process) 2019 Q3,

Q4

Board elected under rules of new structure. 2019 Q4

Planning Update

Governance

Stakeholder engagement

Standards• Steelmaking• Application to Mining

Assurance

Claims

Launch event


TheResponsibleSteelstandard:Progressandnextsteps

16October2018

responsiblesteel.org

Standarddevelopmenttodate

Strawmanstandardbasedonstakeholderconversationsandscreeningofotherinitiatives

Publicconsultation

Mid-2017

Mid-2018

ReviewofotherinitiativesDiscussionswithmembersandstakeholders

NowFeedbackreviewandfocusedstakeholdermeetings

MiningDownstreamSupplychainSocialOthers

10principles


1. BusinessIntegrity2. ClimateChangeandGreenhouseGasEmissions3. Emissions,Effluent,Waste4. WaterStewardship5. BiodiversityandEcosystemServices6. HumanRights7. LocalCommunities8. LabourRights9. OccupationalHealthandSafety10. LegacyIssues


Stakeholderconsultation:No.ofcomments

0 20 40 60 80 100 120

BusinessIntegrityClimateChangeandGHGEmissions,Effluent,Waste

WaterStewardshipBiodiversity/EcosystemServices

HumanRightsLocalCommunities

LabourRightsOccupationalHealth&Safety

Legacyissues


Stakeholderconsultation:Groups

5% 9%

14%

24% 19%

5%

19%

5% AssuranceProvider

Consulting

Downstream

Industry

Industryassociation

Intergov.organisation

NGO

Union


Stakeholderconsultation:Countries

14%

9% 5%

24% 5% 5%

5% 5%

14%

14%

AustraliaCanadaFranceGermanyIndiaJapanMexicoSwedenSwitzerlandUnitedKingdom


Overarchingfeedback

• Scope:Clarifythat10principlesapplytosteelmaking,miningaddressedthroughothers

• Existingsites:Clarifythatstandardappliestoexistingsites• Term“All”:Strikebalancebetweeneffectivenessandefficiency• Definitions:Removesubjectivityandensureallonthesame

page• Verification:Independentcertificationvs.independentexperts• Reporting:Reviewuseof“publicreporting”andclarifywhat

“public”means• Referencestootherinitiatives:Considerauditingeffort


ClimateChangeandGHG

• ParisAgreement:Consensustoreferenceitandalignwording

• Sectoraltargetbasedonscience:Consensus,buthowtodefinetargetneedstobediscussed

• TFCD:Someagreement,2outof4disclosurestobeexpectedforcertificationatthresholdlevel,4attarget

• Site-levelprogrammeonGHGreduction:Timehorizonunderdiscussion.5,10,20years?BATandtopquartile:Worktobedonetogetthedataforthis

Emissions,effluents,waste


• Zerowastetarget:Changeto“zerowastetolandfill”• Scope:Clarifywhatkindofsitesrequirementsreferto

Waterstewardship

• Stewardship:Considercontext-relatedtargetsthatlookbeyondsitegatetotakeaccountofwiderimpact

BiodiversityandEcosystemServices


• Ecosystemservices:Complexanddifficulttoimplement

• Protectedareas:LinkmorecloselytoIUCNresolution?

Localcommunities

• Grievancemechanism andResettlement:Strongerfocusonqualityneeded

LabourRights


• Costofliving:Complextocalculate,usemaybeminimumexpenditurebasket

OccupationalHealth&Safety

• Zerolost-timeinjury:Incentivisesnon-reporting,usesevereincidentrateinstead

Someotheropenquestions


• Artisanalandsmall-scalemining:RiskassessmentandoutreachtootherstandardinitiativessuchasARM

• Suppliersofgoodsandservicesusedforsteelmaking:Riskassessment.Ifnothighrisk,notconsidered.Contractedworkersalwaysin(principle8)

• Transport:Reviewofimpacts,thendecide.Riskassessment

Needtostressourcurrentfocus


Mission

Toenhancetheresponsiblesourcing,production,useandrecyclingofsteelby:• Providingamulti-stakeholderforumtobuildtrust

andachieveconsensus• Developingstandards,certificationandrelatedtools• Drivingpositivechangethroughtherecognitionand

useofresponsiblesteel

Communicatescopeandapplicationbetter


Appliestosteelmakingsitesforentrylevelcertification

10principles

Ca.50criteria

Ca.200performancemeasures

High-levelissues

Outcomesandpractices

Auditablerequirements


Performancelevels

Threshold

Target

MinimumcrediblebarAllowsforbroadparticipationNeedstobemetfor“entrylevel”certification

Long-termambitiouslevelTodifferentiatehighperformersNotmandatory


Differentlevelsofcertification

Certification Steelmakingsite Rawmaterialsourcing

Mandatory EntryThresholdlevel Implementing action

plantoidentifyandmitigaterisks

Relies onincentivessuchasmarketdemandandpeerpressure

BronzeHigherperformanceforsomecriteria

Allhigh-levelrisksaddressed

SilverHigherperformanceformorecriteria

Thresholdachievedforallrawmaterialsupplies

GoldYet higherperformance(e.g.mostoralltargetlevels)

Higherperformanceforrawmaterialsupplies


Startaddressinghighrisks

Entrylevelcertification

Sitesoforiginandprocessing

known?

Yes

No

Analysesocialandenvironmentalrisk

(e.g.RRA)

Analysesocialandenvironmentalrisk

ofmaterial(worldsteel)


worldsteel methodology

worldsteel:ESGissuesofmaterialinputs(29),coupledwithcountryevaluation


Comparisonofstandards

Thresholdforallrawmaterial

suppliesIRMA

MAC-TSM

Silverlevelcertification

Howdoweknowifthisisachieved?


Comparisonofstandards

ResponsibleSteelthreshold MAC-TSM IRMA

6.1.1.Thereisapublishedhumanrightspolicyreflectingtheoperatingcompany’scommitmenttotheUNGuidingPrinciplesonBusinessandHumanRights.

None(duetostrongCanadianlaw)

1.3.1.1.Theoperatingcompanyshalladoptapolicycommitmentthatincludesanacknowledgementofitsresponsibilitytorespectallinternationallyrecognizedhumanrights.

1.3.1.2...policy...shallbepubliclyavailable...


Programmedevelopmenttimeline

Stakeholdermeetings,standardreview,claimsforsteelmakers,testaudit

Publicconsultation,focusgroups

Guidance,fieldtests,scoring,recognitionofotherstandards,assurance

Memberapprovalandboardratificationofstandard

Assuranceandstandardfinal

Q42018

Q2

Q3

Q1

Q42019

Thankyou

Documents

Members & Associates Day · Members & Associates Day. ResponsibleSteel™ Antitrust Statement Attendees are kindly reminded that ResponsibleSteel™ is committed to complying with