CMC 2023 Sustainability Report
  1. Governance
  2. Our Governance Structure
  3. Managing Risk
risk management round

Managing Risk

  • 2-16 Communication of critical concerns
  • 2-26 Mechanisms for seeking advice and raising concerns

We understand that our company only performs well with effective risk management and that is why we maintain our Management Risk Committee. This committee is comprised of all the critical areas of our business including operations, IT, supply chain, environmental and safety, amongst others. All the leaders of these areas meet twice a year to discuss current and emerging risks to the business. The top risks are identified and reported to the Risk Committee.

The Risk Committee is comprised of members of the Executive Leadership Team (ELT) who are directly responsible for identifying and managing risk issues. The Risk Committee, with feedback from the Management Risk Committee, meets regularly to ensure the broader strategy of the organization is accounting for the changing risk landscape and sustainability.

Climate change poses a range of critical risks to our business and stakeholders, from legislation on carbon emission pricing and rising electricity prices to physical impacts like rising sea levels and extreme weather conditions.

To help better understand the impact and management of these risks, CMC performed a Task Force on Climate-Related Financial Disclosures (TCFD)-aligned climate risk analysis in 2023. This analysis was focused on the physical and transitional risks associated with climate change, incorporated multiple temperature increase scenarios and will be used to inform CMC’s climate strategy in the years ahead.

In addition to risks, the analysis looked at the unique opportunities that climate change presents for CMC. For instance, we understand that climate impacts such as rising sea levels could create higher demand for our construction-related products as companies combat adverse weather effects with more robust and sustainable infrastructure. Additionally, customer behavior influenced by the quickly emerging low-carbon market could also increase demand for CMC’s products and services.

For more details on our climate risk assessment, please visit the Climate-related risk analysis section of the report.

Throughout CMC, we expect our employees to report any known or suspected violations of laws, the Code or other CMC policies. We encourage employees’ efforts with confidential channels such as our ethics hotline, which we make available 24/7. Employees can also report issues in writing or verbally speak to:

  • Their supervisors
  • HR representatives
  • Director of internal audit
  • Chair of the Audit Committee
  • Chief legal officer

As a sustainability leader in the steel industry, we are focused on meeting the rapidly evolving regulatory requirements for sustainability disclosures mandated by the U.S. Securities and Exchange Commission (SEC) and the EU’s Corporate Sustainability Reporting Directive (CSRD).

The SEC’s proposed rules enhance and standardize climate-related disclosures. By adopting the CSRD, the European Parliament is dramatically overhauling and expanding corporate sustainability reporting, which impacts about 50,000 public and private companies in the EU, including more than 10,000 EU subsidiaries of non-EU companies such as CMC.