2023 CMC Sustainability Report

Since our founding over 100 years ago, we’ve consistently focused on being a responsible company while providing value for all our stakeholders—for our customers, employees, communities, financial partners, and our shareholders.

The people at CMC are crucial to the success of every aspect of our business. We only succeed by employing outstanding talent and building strong relationships within the communities where we work and live.

When it comes to environmental impact, our emphasis on continuous improvement makes us a model for our industry. Our operations focus on conservation and leverage the latest green technology and innovations to reduce the impact of our products. Our Safety Management Program, built around deep employee engagement, has led to exceptional employee safety performance. Our engagement with local communities continues to build trust inside and outside our facilities and tangible benefits to those communities. We are committed to furthering our positive impact to create a stronger, safer and more sustainable world.

Built on Circularity

CMC’s sustainability initiatives are driven by our vertically integrated business model, which goes hand in hand with the principles of the circular economy. We collect scrap metal, melt, cast and roll it into steel shapes that are then fabricated into finished products. When these products reach the end of their useful lives, they become the scrap metal that begins the next cycle. This closed-loop system reduces waste, produces lower greenhouse gas emissions and increases the resilience of our business. Controlling our raw material supply ensures low cost inputs in our process while our fabrication operations connect us to our end customer and give us insight into market trends.

This model is complemented by our commitment to utilizing innovative technology to improve the efficiency of our processes. In 2023, we made great strides in advancing our micro mill technology with the Startup of our new micro mill in Arizona. This mill builds on the concept of the micro mill’s lower energy footprint with its ability to utilize renewable energy as a substantial component of its power source. In July of 2023, we broke ground on yet another micro mill in West Virginia, which will deploy advanced technology and help us further reduce our carbon footprint as we grow.

Leading on Sustainability

As our sustainability journey continues at CMC, we have refocused our efforts on accountability and stewardship, taking major steps forward as an industry leader.

In 2023, we completed our inaugural climate risk assessment to identify CMC’s most pressing climate-related risks and opportunities. This will help drive the development of our climate strategy moving
forward. We are also a founding member of the nonprofit Global Steel Climate Council (GSCC), which advances climate strategy by establishing standards that incentivize the decarbonization of the steel industry. The GSCC has created a single, technology agnostic framework for product certification and company-wide emission targets for all steel producers which aligns with a science-based path to limit global warming to 1.5°C by 2050.

In addition to our environmental efforts, in 2023 CMC achieved record employee safety performance, building on our performance from 2022. This improvement reflects CMC’s commitment to ensuring our team members’ safety as we work to create a stronger, more sustainable world through our products. We also continued to help try to improve lives in the places we call home through local and corporate giving campaigns totaling close to $2 million and through volunteering initiatives.

Looking Forward

As we look to the year ahead, we will focus on continuing to operate our business safely while working to reduce our environmental footprint.

We will continue to build partnerships with local utilities to improve the efficiency and reliability of the electricity grid.

To achieve our wider environmental goals, we will continue to invest in our people and communities. Our goal is to create a culture of excellence, that inspires productivity and encourages fresh thinking while also supporting all our employees across our organization. Creating a culture of support means supporting our CMC team members’ physical and mental health and wellbeing.

While we are proud of what we have accomplished to date, we are not content. We will continue to focus on how our products, processes and people can improve our world for future generations.

We will get there by working together, as one CMC family.

Peter R. Matt
President and Chief Executive Officer