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.
| Topic | Description | Boundary | Report Location |
|---|---|---|---|
| ESG Oversight |
Ensuring that ESG matters are effectively managed within the overall structure and governance of the company. |
CMC | ESG at CMC |
| Responsible Advocacy |
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. |
Environment | Environmental |
| Climate Change* |
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. |
Environment, Governments | Environmental |
| Greenhouse Gas Emissions* |
Tracking CO2 and other GHG emissions from CMC's operations, setting companywide GHG reduction targets, and monitoring progress against the targets. |
Environment | Environmental |
| Energy* |
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. |
Environment | Environmental |
| Product Stewardship |
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. |
Environment, Customers | Overview |
| 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 |
| Talent Management* |
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.