- About CMC
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Moses Feldman establishes his first scrap operation in Dallas.
Since 1915, Commercial Metals Company (CMC) has built a legacy as a global leader in sustainable recycling, manufacturing and fabrication of steel and construction products. With headquarters in Irving, Texas, the workforce of CMC includes 12,483 employees working in over 212 facilities located across the United States (U.S.), the United Kingdom (U.K.), Asia and Central Europe.
CMC is a publicly traded company (NYSE: CMC) and is widely recognized for our commitment to professionalism, innovation and customer service. Our goal is to be the first-choice supplier in all our markets.
We play an integral role in infrastructure development, which has been further reinforced with our 2022 acquisition of Tensar. The products we create provide the backbone of buildings, highways, bridges and other structures all over the world. The markets we serve include infrastructure, commercial and residential construction, the energy industry, manufacturing and agriculture.
A Mission Continued
Sustainable practices are embedded in our business model and remain central to our company mission. We started as a recycling business—using resources efficiently is in our DNA. CMC’s reputation for innovation stretches back through our past and forms the foundation of our future.
Over the last 100 years, we’ve prioritized investing in new technologies and processes that improve quality while enhancing resource efficiency and utilization. Our vertically integrated business model revolutionized steel industry operations. We collect scrap metal from our local recycling centers to transport to our steel mini and micro mills, where it’s melted, cast and rolled into steel shapes and later fabricated into finished products for the building, manufacturing and infrastructure markets we serve.
Our demonstrated commitment to resource efficiency is second to none. All of our steel-producing facilities use energy-saving electric arc furnace (EAF) technology, a technology whose use we pioneered and that significantly reduces the energy required to produce steel when compared to the traditional integrated steelmaking technology utilized by the majority of global steel makers today. EAF technology supports the electrification of steelmaking, thereby opening opportunities for greater use of renewable energies in our processes. Our differentiated business model and focus on technological efficiencies enable us to reduce our costs and risks, which in turn allows us to develop and produce the sustainable products that our society needs to build and thrive.
Our 2022 net sales totaled
and we shipped
short tons of steel externally.
|Total metal recycled||MT||8,676,630||8,662,342||8,132,461|
|Total raw steel production||MT||5,756,503||5,661,952||5,496,317|
Our products are found in structures located all over the world. In order to serve this global market, CMC maintains facilities across the U.S., Europe and Asia.
CMC currently operates 212 facilities across our operations and divisions.
Since its inception in 1978, Tensar has built a strong culture of customer focus, innovation and social responsibility, including a steadfast commitment to safety and employee development. Our newest division’s strengths, visions and missions align closely with those of CMC and bolster our commitment to and capacity for improving outcomes for our customers, workforce, communities and the planet.
The Tensar Division expands CMC’s workforce by approximately 650 employees located in 19 countries across North America, Europe, the Middle East and Asia. The synergies moving forward will continue to build a better future by empowering customers to use natural resources sustainably and addressing climate change with urgency.
Tensar is best known for its two major product lines: Tensar geogrids and Geopier foundation systems.
Our new Tensar Division’s geogrids help decarbonize infrastructure construction projects by reducing the time, energy and materials needed during construction and over the lifecycle of stabilized landforms.
Benefits from less aggregate material in roadway, rail, retaining wall and slope construction include:
We also quantify the benefits of our geogrids and Geopier elements with our Carbon Footprint Calculator, which we developed to demonstrate the environmental effectiveness of our products and systems. This proprietary tool, which can be accessed in the award winning, cloud based Tensar+ software program (tensarplus.com) and whose effectiveness has been third-party verified, estimates the potential carbon and water savings from using our products and systems compared to traditional methods of construction.
Tensar recently published its first ESG Report, and a few of its 2021 ESG Highlights include:
Learn more about our newest division on the Tensar website.
To create superior products, you need phenomenal employees who enjoy their work, feel safe and respected and take pride in their contributions to the goals of the company. That’s why we take such care of our employees throughout their tenures at our company, from recruitment to onboarding and career development.
The same spirit of investment and continuous improvement that fuels our operations also motivates our workforce. Our employees embody the very best in innovation, drive and ability. As an organization, we work to create an environment that fosters creativity and empowers employees to make a difference. We maintain open lines of communication—via surveys, interviews and direct engagement—to improve employee experience and create the most supportive and productive environment possible.
Above all, CMC is a company that values lasting relationships, both externally and internally. Caring for others—customers and staff alike—is our responsibility. Genuine engagement leads to higher quality, productivity, profitability and safety performance.
Speaking of safety, we work tirelessly to monitor and improve procedures throughout our operations. We don’t just meet safety standards to maintain compliance. We view safety as a core value because it protects our most important asset—our employees—while simultaneously increasing quality and productivity.
Our organization is committed to good corporate citizenship, which includes being considerate of all stakeholder concerns in every aspect of our operations. Our stakeholders range from our own employees to investors, customers, suppliers and local communities. We are committed to communicating regularly with these groups to better understand their expectations and concerns in relation to our business. We leverage multiple engagement channels with our stakeholders.
Forging Outstanding Value for our Stakeholders
Our business strategy, combined with our commitment to proactively address ESG risks and opportunities, allows us to protect and create value for stockholders, employees, customers and society.
Our company’s processes and tireless pursuit of innovation lead to topline growth and greater market penetration. Our bottom line reaps the rewards from cost reductions, especially those created by lower energy use, lower input costs and asset optimization.
Our diligent emphasis on risk management empowers CMC to grow at a healthy pace with fewer work interruptions and with reduced regulatory and legal interventions.
Last but certainly not least, we strive to deliver value to our global team by nurturing an engaged workforce, offering meaningful work with a shared purpose in an impactful industry and providing a path for long-term growth marked by early career support and advancement opportunities.
Few people ever see the fruits of our labor—the steel products that comprise the bulk of our business. But nearly everyone experiences how these products enable and enrich all facets of modern life. CMC products strengthen everything from the roads and bridges we travel on to the buildings where we live, work, play, learn and heal.
In short, CMC produces the steel that makes our economy strong and supports a sustainable way of living. Everyone on our team takes this responsibility to heart.
Never satisfied with the status quo, CMC is committed to constant improvement through innovation and investment. We continually invest in new and better processes for creating exceptional products, supporting our people, protecting our planet and elevating our communities. We pursue continuous process improvements with clear goals of optimizing our resource efficiency, environmental performance and cost savings.
A Pioneering Strategy
Recycle, produce, fabricate, repeat—our operations encompass the entire lifecycle of steel. In 1952, CMC raised the bar for our industry by becoming the first steel manufacturer in the U.S. to adopt the vertical integration model. We then adapted this approach to Europe.
Our vertically integrated model allows CMC to remain a producer of low-cost, high-quality steel, respond swiftly to changing customer needs and provide value to our investors.
In 2022, our vertically integrated manufacturing process kept more than 19 billion pounds of scrap metal out of landfills.
This process combines the recycling and processing of scrap metals with the melting of processed scrap into new steel and the fabrication of finished steel products. Our process includes four primary steps:
A Cycle of Efficiency
By virtue of operating as a vertically integrated recycling company, CMC is built on the principles of a circular economy. These principles allow us to realize a host of advantages, including:
CMC also incorporates the concepts of a circular economy in other areas of our operations, such as water recycling; beneficial reuse of process co-products, by-products and waste streams; promoting energy efficiency across our facilities; and expanding our use of renewable electricity.
What is the circular economy?
For most of our industrial development, economic activity has used a linear “take, make, waste” mode of production, whereby raw materials required as inputs are taken from the earth, used to make products, and eventually discarded, along with the pollution generated during the production and use of the product.
As populations grow and resource consumption patterns push against planetary boundaries, the circular economy model seeks to decouple the linear relationship between economic production and consumption of increasingly limited resources, such as energy and metals. Underpinning the circular economy’s approach to material utilization is a transition to renewable energy and materials.
The circular economy applies four key principles:
In 2021, we updated our materiality assessment. This process helped us reconfirm and refocus our priority ESG issues and ensure they remain aligned with our recognized risks, evolving external stakeholder expectations and industry best practices.
To prioritize topics, we engaged directly with our leadership and across our internal functions, as well as with customers and investors. We also surveyed and researched the views of peers, industry associations and ESG ratings, rankings and frameworks to determine key ESG issues relating to our company and industrial sector. CMC’s Executive Leadership Team and the Sustainability Leadership Council verified the final list of nine primary ESG issues as our priority.
This report details our efforts to manage these topics. We also discuss other matters that we believe are significant and for which we have practices and programs in place. These include diversity and inclusion, human rights, sustainable supply chain, innovation, community engagement, customer satisfaction, corporate governance and ethics.
Ensuring that ESG matters are effectively managed within the overall structure and governance of the company.
|CMC||ESG at CMC|
Engaging with governments and organizations to promote informed public policy, ensuring memberships in industry and trade associations align with CMC’s public commitments and transparently disclosing CMC’s contributions to political campaigns, organizations and/or parties.
|CMC, industry, governments||Corporate Governance|
|Environmental Compliance +||
Ensuring compliance with environmental laws and regulations across the jurisdictions within which we operate. This includes matters relating to air quality, waste management and water protection, as well as responding to clean-up and remedial action requirements under applicable laws.
Identifying and managing CMC’s risks related to climate change as they relate to current and future operations, including asset planning, capital allocation and development; mitigating CMC’s exposure to potential costs linked to carbon pricing and regulatory caps.
|Greenhouse Gas Emissions*||
Tracking CO2 and other GHG emissions from CMC's operations, setting companywide GHG reduction targets, and monitoring progress against the targets.
Reducing energy consumption through management and efficiency initiatives, including both process improvements and capital investments, and adopting and investing in renewable energy sources, such as solar and wind.
Assessing and improving the sustainability of our products throughout their lifecycles in support of a circular economy by sourcing raw material sustainably, increasing the use of recycled content and sustainable materials and decreasing the use of hazardous chemicals.
|Health & Safety*||
Providing safe working conditions through the implementation of a robust occupational health and safety management system, processes for hazard identification and incident investigation and provision of safety training, needed PPE and wellness programs/support.
|CMC employees, suppliers, local communities||Social|
Cultivating a strong workforce and talent pipeline through robust employee recruitment and engagement practices, reinforcing our core values of dignity and respect through ongoing training and support, providing competitive benefits and supporting employees with opportunities to develop and grow their careers.
|CMC current and potential employees||Social|
An important component of our approach to embedding ESG practices into our overall business is to align our strategy for priority ESG issues with enterprise risks. The items marked with an * in the table above are specifically identified in Part I, Item 1A, Risk Factors—Risk Related to Our Business in our 2021 Form 10-K. Items marked with a ‘+’ are addressed in Part I, Item 1: Business, Environmental Matters, which addresses the specific risks relating to environmental compliance.
Note: Air quality, waste and water issues have been combined into Environmental Compliance.
Successful companies increasingly understand that sound corporate governance of both financial and non-financial factors—such as environmental and social issues—benefit their balance sheets and bottom lines. In other words, ESG issues are business issues, and vice versa. CMC is no exception.
We integrate our ESG and business strategies together as part of our aim to be the first choice for stakeholders, suppliers and contractors. Since our first day in operation, we have valued product stewardship and sustainability. We pay close attention to our impact on the world around us, and we look for new ways to strengthen our business while investing in innovations that yield greater efficiencies and environmental benefits.
Some of the important links between our business drivers and our ESG priorities include:
Our robust recycling strategy, for instance, extends the useful lifecycle of metals by continuously circulating materials throughout the market and keeping them out of landfills. Our GHG emissions currently fall well below the iron and steel sector targets set by the Paris Climate Agreement. We have also established a plan to further reduce our energy consumption, GHG emissions and water withdrawal intensities by 2030, while increasing our use of renewable energy. These targeted reductions will keep us on track to remain one of the world’s most energy efficient and green steel manufacturers, while also reducing our costs and mitigating our business risks.
Micro Mills as Compared to Mini Mills
Less Scope 1 Greenhouse Gas (GHG) emissions
Scope 1 & 2 GHG emissions
Based on 2022 CMC mini and micro mill data
At CMC, good business always aligns with good environmental practices.
We recognize the value of relationships and put people at the center of our business.
Honesty and transparency are the best approaches to long-term sustainability.
ESG is integral to our business strategy and culture. We continue to embed ESG management requirements into our management and governance structure. Our ESG accountabilities start at our Board and cascade down through the organization.
CMC Board of Directors
Executive Leadership Team
Vice President, Sustainability & Government Affairs
Sustainability Leadership Council (SLC)
CMC’s target goals for 2030, with a 2019 baseline:
As we seek to increase our use of renewable energy, CMC is also targeting a commensurate reduction in our use of non-renewable power over the same period.
We are committed to continuing our trajectory of improvement and doing our part to further lower GHG emissions, and have set goals and plans to further reduce our energy consumption, GHG emissions and water withdrawal by 2030.
With the adoption of the landmark, legally-binding Paris Climate Agreement, participating countries must meet the goal to limit global warming to below 1.5°C compared to pre-industrial levels. CMC has an already low carbon footprint, having achieved in 2022 Scope 1 & Scope 2 emissions already lower than the 2040 target set by the agreement. Our targeted reductions will keep us on track to remain one of the most energy-efficient and green steel manufacturers in the world.
To learn more about the Paris Climate Agreement, visit the UNFCCC webpage.
Targets for 2030, with a 2019 baseline.