risk management round

Managing Risk

There’s a direct link between a company’s performance and its ability to anticipate and mitigate material risks.

In recognition of the importance we place on effective risk management, CMC’s Risk Committee comprises members of the executive leadership team (ELT) directly responsible for identifying and managing risk issues. The ELT coordinates subject matter experts from within CMC to present at Risk Committee meetings periodically and report on relevant and timely topics, including legal, tax, accounting and information security, as well as ESG-related items.

Climate change represents a critical and increasingly important risk factor, both for our business and our stakeholders. Periods of extended inclement weather or flooding may inhibit construction activity that uses our products, delay or hinder our product shipments or reduce scrap metal inflows to our recycling facilities. Any of these events could have a material and adverse effect on our operations.

Emerging and current business, transition and physical risks posed by climate change, include

  • Identifying and evaluating transition risks, such as legislation regarding carbon emission pricing, which may impact our operations directly or through our customers and supply chain
  • Assessing physical risks posed by climate change, including water impacts, rising sea levels and extreme weather conditions that may increase our costs or damage our facilities

CMC’s governance around ESG matters, including climate change, is outlined in the ESG at CMC section of this report.

All CMC employees must complete the Code of Conduct and Business Ethics training—a joint effort between the Legal and Human Resources Departments, with input from our executive leadership team. We track employee participation, and in 2022, 100% of our required employees completed our Code of Conduct and Business Ethics Training. We also ensure our Code reflects the various jurisdictions within which we operate.

CMC expects and encourages employees to report any known or suspected violations of laws, the Code or CMC policies through a confidential ethics hotline that we make available on a 24/7 basis. Employees can also communicate issues in writing or verbally to:

  • Their supervisors
  • HR representatives
  • Director of internal audit
  • Chair of the Audit Committee
  • Chief Legal Officer

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