R$ 417
million
(global)
The establishment of the context for risk assessment is provided by Risk Owners and by the Risk Management area, using reliable sources of information (internal and external). The context is established based on the Risk Matrix that includes climate change risks as strategic and operational risk factors, as well as the result of the corresponding action plans and residual risks, and there may be new emerging risks or even archived risks (risks that can no longer be materialized).
Using this criterion, taking into consideration the risks related to climate change, specific units highly relevant to the organization, as well as all business units of the group, it was defined that the financial impact of a US$200 million (R$850 million) reduction in EBITDA in the year is regarded as being significant. This definition assumes that this total associated with risk would impact the cash available for long-term investments. To learn about the evolution of this topic in 2020 click here.
|
DESCRIBE THE RISKS OR OPPORTUNITIES AS A RESULT OF CLIMATE CHANGE |
RATE THEM ACCORDING TO THEIR NATURE: PHYSICAL, REGULATORY, OR OTHER |
ASSOCIATED IMPACTS |
FINANCIAL IMPLICATIONS CALCULATED FOR THE RISK/ OPPORTUNITY (IF NO ACTION IS TAKEN) |
METHODS USED TO MANAGE RISK OR OPPORTUNITY |
COST TO MANAGE THESE ACTIONS |
|---|---|---|---|---|---|
| Laws and Regulations | Regulatory | Laws and regulations to reduce greenhouse gases may be enacted in the future and could have a significant adverse impact on the company's results of operations, cash flows, and financial situation. One of the possible effects of the increase in requirements for the reduction of greenhouse gas emissions is an increase in costs, mainly due to the demand for the reduction of fossil fuel consumption and the implementation of new technologies in the production chain. The company believes that operations in the countries where it operates may be affected in the future by federal, state, and municipal initiatives related to climate change that aim to address the issue of greenhouse gases (GHG). A possible effect of this growing set of legal requirements could be an increase in the cost of energy. As a result, the company's financial situation and operating results could be adversely affected. Also, the impact of creating a carbon pricing system in Brazil is being analyzed. In Mexico, where Gerdau also operates, a carbon emissions trading system called MexiCO2 has already been consolidated. This is an environmental market platform that trades certified emission reductions, clean energy certificates, and develops alternatives to the establishment of an emissions trading system. | Not calculated | The topic is discussed and monitored in the Risk, Disclosure, Strategy and Sustainability Committee and in the Management Committee on a quarterly basis with the participation of the CFO. Integrated with climate change initiatives, Gerdau participates in the Emissions Trading System Simulation, conducted by the Getúlio Vargas Foundation, in an initiative that aims, among other things, to generate knowledge about the contribution of carbon pricing instruments to achieve cost-effective GHG emission reduction targets. This is an effort to understand the possible effects of mitigation policies on business and investments, anticipating a future scenario of mandatory pricing. | Not calculated |
| Changing rainfall patterns and extreme variability in weather patterns | Physical | Lack of water in the operational units caused by water crisis related to climate change impacts. Decreased revenues due to reduced production capacity | Not calculated | Lack of water in the operational units caused by water crisis related to climate change impacts. Decrease in revenue due to reduced production capacity | Not calculated |
| Reputational risks | Other | These are risk factors related to customers, the scientific and academic community, surrounding communities, competitors, consumers, suppliers, media, investors, civil society organizations, partners, public authorities, internal audience, and the possible impact of Gerdau's shares on the stock exchange. Regarding the risks of the steel industry, this industry is reported in studies on carbon pricing in Brazil as a sector with the smallest impact on the country's overall emissions, and which may be the most affected by pricing both directly and through environmental permits taking into account the social license. | Not calculated | Gerdau addresses this type of risk through an assessment of the organization's image, with criteria defined in its Risk Matrix. The risk is discussed on the organization's Board of Directors. | Not calculated |
| Risks related to access to markets and financing | Regulatory | Increased demand from stakeholders regarding this topic (e.g. Blackrock Fund requiring reports on companies' carbon footprint; Gerdau's contract with its main clients linked to climate change management, etc.). | Not calculated | Market risks related to steel and the rates of GHG emissions are assessed, monitored, and discussed by the organization's CEO, considering regulations, technologies, and advances in the shift to a low-carbon industry. Competitiveness in relation to foreign markets is taken into consideration in analyses involving carbon pricing in Brazil. Gerdau's units are conducting product life cycle assessments considering the effectiveness analysis and treatment of risks associated with the impacts of climate change related to the use of the material in the market. Gerdau is committed to reporting to the CDP environmental information related to climate change and other aspects of the company's environmental management, identifying the risks and opportunities in our operations, captured through initiatives to reduce emissions and actions to mitigate risks. | Not calculated |
Steel production is energy-intensive; therefore Gerdau constantly seeks the efficient use and awareness of its industrial users. Managing energy is based on the reliability of data on consumption, mapping of consumer areas and opportunities in projects and initiatives on the subject. The purchase and selection of more efficient energy sources is one of the fundamental pillars for the continuous economic and sustainable growth of the business in these times of energy transition.
Gerdau also uses as a renewable energy source the bioreducing agent—charcoal from planted forests—used as a replacement for coal in some of the company's units that use the blast furnace in their production process. Charcoal is produced in the state of Minas Gerais, where the company has 254,000 hectares of reforestation for energy purposes, of which 90,000 are areas set aside for conservation of biodiversity.
Furthermore, the Gerdau units that produce steel using integrated mills reuse approximately 92% of the gases generated in the steelmaking process. These gases are used in the production of electric and thermal energy for the industrial plants, contributing to the energy efficiency of the mills.
In 2020, Gerdau worked to expand the supply of natural gas alternatives in the new market, advancing on the regulatory front and establishing the first gas transport contract by a consumer. We also initiated tests with the first natural gas truck for mining, in Várzea do Lopes. Also this year, the implementation of a solar farm to serve our plant in Midlothian, Texas, was defined.
Regulatory preparation for the free market of natural gas in Brazil. Long-term plans began to include an assessment of the impact of emissions from the energy sources used and their contribution to the company's overall results.
|
TOTAL ENERGY CONSUMPTION (GJ) |
2019 | 2020 | ||
|---|---|---|---|---|
| Gerdau |
UNIT OF MEASURE |
Gerdau |
UNIT OF MEASURE |
|
| Total fuel consumption from renewable sources | 16,459,411.14 | GJ | 13,905,307.00 | GJ |
| Total fuel consumption from non-renewable sources | 103,617,713.96 | GJ | 97,629,276.94 | GJ |
| Electricity consumption | 31,124,473.81 | GJ | 33,830,905.39 | GJ |
| Electricity sold | 0.000 | GJ | 0.000 | GJ |
| Total energy consumption within the organization | 151,201,598.91 | GJ | 145,365,489.33 | GJ |
Fuels considered in this calculation:
Renewable: charcoal and electricity.
Non-renewable: natural gas, gas resulting from the production process (blast furnace gas, steelmaking gas, coke oven gas), diesel, LPG, petroleum coke, coke resulting from the production process (coke-sinter, metallurgical coke), coal, pig iron, anthracite, dolomite, residual fuel oil.
| Energy intensity | 2019 | 2020 | |
|---|---|---|---|
| Gerdau | A. Total energy consumption (GJ) | 151,201,598.91 | 145,365,489.33 |
| B. Production (Tons of steel produced) | 12,453,099.00 | 13,142,354.30 | |
| C. Energy intensity (A/B) | 12.14 | 11.06 | |
One of Gerdau's sustainable operation pillars is the protection of the environment. The company has been making a continuous effort to quantify consumption, sources, and destination of water resources. It monitors the use of water and has water reuse and recirculation systems in its mills,
making it possible to reuse
97.7%
OF THE WATER
USED IN
PRODUCTION.
Esse volume vem de um total de
51.5 million
M³ WITHDRAWN IN 2020.
The units monitor all the water withdrawal, distribution, and consumption points. In Brazil, we have a roadmap that was built based on business sustainability levers and process stability; we have created an inventory of all requirements needed to mitigate existing gaps (internal and external vision), measured by operational risk management and systematically inserted in OPEX and CAPEX planning to ensure continuous and progressive improvements.
Gerdau's sustainability policy establishes that the water used in its processes must be maximized, discharging a minimal amount of effluents, and within the required standards.
All Gerdau units comply with the legislation and regulations in force for withdrawing water and discharging effluents. We have a commitment in our operating units that goes beyond complying with legal requirements, which is to ensure the well-being of the communities surrounding our business.
During 2020, the company structured itself to establish global targets for water withdrawal, disposal, and consumption in the long term, and multi-year targets to monitor the evolution of this topic in the operating units. In the industrial units, the utilities areas are responsible for this topic.
Based on this diagnostic, goals to reduce water intensity were established for each operating unit in Brazil, defining 5.9 m³/ton of steel produced to be reached in 2021.
As an important natural resource for our industrial operation and for society, water is evaluated in the assessments of aspects and impacts, in the environmental management system practices, and as a relevant factor in risk management scenarios.
Data on water withdrawal, treatment, and consumption are monitored in our operating units.
| TOTAL GERDAU | |||||||
|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | |||||
|
GRI 303-3 - WATER WITHDRAWAL (IN MEGALITERS) |
ALL THE AREAS |
AREA WITH WATER STRESS |
ALL THE AREAS |
AREA WITH WATER STRESS |
ALL THE AREAS |
AREA WITH WATER STRESS |
|
| Surface waters, including, rivers and lakes |
|
37,948.70 | 2,105.02 | 39,080.17 | 2,351.74 | 36,918.61 | 2,048.79 |
|
|
37,898.69 | 2,105.02 | 39,021.39 | 2,351.74 | 36,859.75 | 2,048.79 | |
|
|
50.01 | 0.00 | 58.78 | 0.00 | 58.86 | 0.00 | |
| Groundwater |
|
7,033.94 | 4,031.24 | 8,055.65 | 4,088.64 | 11,492.33 | 4,524.37 |
|
|
6,750.57 | 4,031.20 | 7,753.87 | 4,088.61 | 11,012.99 | 4,524.37 | |
|
|
283.37 | 0.04 | 301.78 | 0.03 | 479.34 | 0.00 | |
| Sea water |
|
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
|
|
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
|
|
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Rainwater (harvested and stored directly by the organization) |
|
453.34 | 121.11 | 558.42 | 125.61 | 284.07 | 0.00 |
|
|
453.34 | 121.11 | 558.42 | 125.61 | 147.79 | 0.00 | |
|
|
0.00 | 0.00 | 0.00 | 0.00 | 136.28 | 0.00 | |
| Produced water |
|
6.39 | 0.00 | 6.58 | 0.00 | 0.00 | 0.00 |
|
|
6.39 | 0.00 | 6.58 | 0.00 | 0.00 | 0.00 | |
|
|
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Water from utility companies |
|
1,321.57 | 297.11 | 3,244.13 | 297.02 | 2,806.29 | 547.75 |
|
|
1,145.91 | 257.80 | 3,145.75 | 265.02 | 2,663.84 | 547.42 | |
|
|
175.66 | 39.31 | 98.38 | 32.00 | 142.45 | 0.33 | |
| Total withdrawal |
|
49,283.39 | 7,195.31 | 50,938.37 | 7,503.98 | 51,501.30 | 7,120.91 |
|
|
48,774.36 | 7,155.97 | 50,479.43 | 7,471.94 | 50,684.37 | 7,120.58 | |
|
|
509.04 | 39.34 | 458.94 | 32.04 | 816.93 | 0.33 | |
Note: The operations were classified in areas of water stress according to the Aqueduct Water Risk Atlas.
Information provided by the units (internal control through measurement of the utility company, instrument measurements; laboratory analysis reports, power bi, etc.), SAP, Consolidated by Sharepoint.
Notes:
GAB: In 2020, the following Gerdau units are also being included: Gerdau Commercial, Slitting and Folding, and Forestry
GSB: In 2020, the melt shop did not operate.
GLN: St Paul's melt shop operated only until the middle of the year.
The significant increase in the volume of groundwater withdrawal is due to the inclusion of information, in 2020, from Mineração Várzea do Lopes and Mineração Miguel Burnier (GAB) and significant differences in rainfall from 2019 to 2020 and increased production (GLN ).
The amount reported in 2019 by the Uruguayan unit was revised in relation to the withdrawal of groundwater.
| TOTAL GERDAU | |||||||
|---|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | |||||
|
GRI 303-4 - TOTAL WATER DISCHARGE (IN MEGALITERS) |
ALL THE AREAS |
AREA WITH WATER STRESS |
ALL THE AREAS |
AREA WITH WATER STRESS |
ALL THE AREAS |
AREA WITH WATER STRESS |
|
| Surface waters, including, rivers and lakes |
|
23,942.73 | 204.01 | 23,194.79 | 258.42 | 25,995.03 | 2,295.85 |
|
|
23,937.87 | 204.01 | 23,183.61 | 258.42 | 25,923.35 | 2,295.85 | |
|
|
4.86 | 0.00 | 11.18 | 0.00 | 71.68 | 0.00 | |
| Groundwater |
|
27.41 | 0.00 | 27.41 | 1.13 | 0.92 | 0.00 |
|
|
27.41 | 0.00 | 43.77 | 1.13 | 0.92 | 0.00 | |
|
|
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Sea water |
|
75.55 | 0.00 | 75.55 | 0.00 | 83.11 | 0.00 |
|
|
75.55 | 0.00 | 75.55 | 0.00 | 83.11 | 0.00 | |
|
|
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Water sent to other companies |
|
294.51 | 133.80 | 725.58 | 146.15 | 392.72 | 35.10 |
|
|
283.61 | 122.90 | 714.68 | 135.25 | 379.63 | 35.10 | |
|
|
10.90 | 10.90 | 10.90 | 10.90 | 13.09 | 0.00 | |
| Total withdrawal |
|
24,340.20 | 337.81 | 24,039.69 | 405.69 | 26,471.78 | 2,330.94 |
|
|
24,324.44 | 326.91 | 24,017.61 | 394.79 | 26,387.01 | 2,330.94 | |
|
|
15.76 | 10.90 | 22.08 | 10.90 | 84.77 | 0.00 | |
The substances considered a priority for monitoring and treatment of effluents are different in each country and for each operation process, depending on the legislation in force. In 2020, a total of 31 incidents of non-compliance with the discharge limits were recorded. These incidents are dealt with according to the treatment of failures in environmental management.
The significant increase in the volume of water discharged is due to: a) GSB:
| TOTAL GERDAU | ||||||
|---|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | ||||
|
WATER CONSUMPTION (IN MEGALITERS) |
ALL THE AREAS |
AREA WITH WATER STRESS |
ALL THE AREAS |
AREA WITH WATER STRESS |
ALL THE AREAS |
AREA WITH WATER STRESS |
| Total water withdrawn (303-3) | 49,283.00 | 7,195.00 | 50,872.00 | 7,504.00 | 51,501.30 | 7,120.91 |
| Total water discharged (303-4) | 24,340.00 | 338.00 | 24,040.00 | 406.00 | 26,471.79 | 2,330.95 |
| Total water consumed (303-5) | 24,943.00 | 6,857.00 | 26,832.00 | 7,098.00 | 25,029.51 | 4,789.96 |
|
RAW MATERIALS OR RECYCLED MATERIALS USED (IN TONS) |
2018 | 2019 | 2020 |
|---|---|---|---|
| Pig iron (internal and external) | 4,320,298.68 | 3,995,328.55 | 3,889,719.60 |
| Leagues | 232,194.94 | 192,497.89 | 211,926.81 |
| Carburizing agent | 184,640.75 | 125,045.42 | 170,237.72 |
| Scrap | 14,273,236.62 | 11,548,789.24 | 11,482,790.78 |
| Total raw material consumed in the period | 19,010,371.00 | 15,861,661.10 | 15,754,674.91 |
| Total raw material from recycling (scrap) | 14,273,236.62 | 11,548,789.24 | 11,482,790.78 |
| RATIO | 2018 | 2019 | 2020 |
|---|---|---|---|
| Percentage of recycled materials used | 0.751% | 0.728% | 0.729% |
In order to calculate the percentage of recycled materials used, we consider the inputs used in the melt shop process. (pig iron, alloys, and carburizing agents). Only the Ouro Branco, Barão dos Cocais, and Divinópolis mills have a blast furnace process and these inputs are included when we consider the pig iron as an input for the melt shop.
Global data remained stable compared with the previous year, ensuring 73% recycled materials used.
This year data from Venezuela were included. The operation in the Dominican Republic does not produce steel.
In 2019, Gerdau carried out the materiality process it used to define the most relevant material topics to guide its strategy, company management, and to guide its communication with stakeholders and society. One of the issues identified as relevant was “climate change mitigation and adaptation”. Carbon emissions are a key topic in the debate on climate change and a sensitive point for the steel industry, given the level of emissions from its mills compared with the industrial sector as a whole.
We answered, for the first time, to the CDP (Carbon Disclosure Project) questionnaire, one of the most important global platforms on climate change, involving issues related to governance, assessment of risks associated with climate management, greenhouse gas emissions, and projects for reduction. The score received by Gerdau by the CDP (GAB+GSB) was B-, which is within the range of companies that carry out coordinated management of climate change, reinforcing our commitment to the topic and transparency of our environmental actions. This score was higher than the regional average for South America (D) and for the metals and metallurgy sector (D).
As a positive highlight we scored an A related to our global greenhouse gas (GHG) emissions, which are lower than the global averages. Another noteworthy score has to do with the GHG reduction initiatives, which included detailed energy efficiency cases at our Ouro Branco (MG) operating unit.
Gerdau participates in the Business Climate Initiative (IEC - Iniciativa Empresarial em Clima) on carbon pricing in Brazil, coordinated by FGV. In this way, Gerdau actively acts in the development, together with several private sector organizations, of strategic thinking about carbon pricing mechanisms and forms in Brazil and in promoting the decarbonization of the economy at the lowest possible cost to society, also increasing the competitiveness of companies.
The Board of Directors, the Strategy and Sustainability Committee, the Risk Committee and the Disclosure Committee have their own regulations that highlight their duties on ESG topics, especially climate change, including the recording in the minutes of their meetings.
We were audited by a third party concerning our greenhouse gas inventory data, Scope 1: direct GHG emissions; Scope 2: indirect GHG emissions from energy; and Scope 3: other indirect GHG emissions for Brazil and U.S. units.
Points of improvement were determined in the process to manage the topic at our operational units and are included in the action plans with monthly follow-ups.
|
DIRECT GREENHOUSE GAS (GHG) EMISSIONS IN TONS OF CO2eq |
2019 | 2020 |
|---|---|---|
| Total Scope 1 | 9,056,519 | 9,198,407 |
| Biogenic CO2 emissions | 1,891,560 | 1,738,243 |
Emission sources considered in Scope 1: Industrial processes; Stationary combustion; Mobile combustion.
|
DIRECT GREENHOUSE GAS (GHG) EMISSIONS IN TONS OF CO2eq |
2019 | 2020 |
|---|---|---|
| Total scope 2 | 2,890,986 | 2,082,515 |
Emission sources considered in Scope 2: Electric Energy acquired
Details of Scope 1 and 2 emissions data:
Data from the Dominican Republic and Venezuela were not included.
Gases included in the calculation: CO2, CH4, N2O, SF6, PFC, and HFC
References used in calculations: ‘IPCC, GHG Protocol, WSA (World Steel Association)
|
EMISSION INTENSITY - 2019 (tCO2e/t of steel produced) |
EMISSION INTENSITY - 2020 (tCO2e/t of steel produced) |
|---|---|
| SCOPE 1 + SCOPE 2 | SCOPE 1 + SCOPE 2 |
| 0.96 | 0.93 |
|
ACCORDING TO WORLDSTEEL, THIS VOLUME CORRESPONDS TO
HALF THE GLOBAL AVERAGE OF THE SECTOR. |
Due to the fact that it uses carbon from renewable forest sources, the large-scale use of scrap and the high level of reuse of gases, Gerdau's carbon intensity is below the global average of the steel industry, released in 2019 by the World Steel Association, 1.83 tons of CO2e per ton of steel produced.
In 2020, we totaled 0,93 tCO2e/t of steel produced. The accounting for emissions from non-steel producing units was included, such as mining, slitting and folding facilities and metallurgical operations. The reduction in greenhouse gas emissions compared with the previous year is due to better performance of the integrated unit that uses non-renewable coal, even with an increase in its production in relation to the other production methods. Another factor that contributed to this result was the adoption of renewable energy emission factors at our units in Canada, validated by third party auditors. We audit 92.3% of our emissions, which represented an increase of 24% in relation to the previous year, further reinforcing the transparency of the data reported and the reliability of the information.
| TOTAL GERDAU | |||
|---|---|---|---|
|
OTHER AIR EMISSIONS (TON) |
2018 | 2019 | 2020 |
| NOx | Data not available | Data not available | 7,949 |
| SOx | Data not available | Data not available | 6,573 |
| Particulate Matter (PM) | 4,848 | 3,586 | 3,894 |
The numbers are monitored using methods established in accordance with local legislation.
The methodology and calculation of NOx and SOx data was improved.
For Particulate Matter: new flues included - Ouro Branco, MG.
Other units: improvement in the data monitoring and verification process.
The company encourages the use of co-products and their addition in other production processes, avoiding the disposal in landfills whenever possible. In 2020, global reuse of co-products was 78%. The operating result from co-products, which considers revenue less expenses, was US$ 96,471,668.02
The steel industry normally generates a significant volume of waste in its processes. All of this material secondary to steel production must have a destination. This waste can be transformed into new products that can be used in other processes: paving material and input for the production of ceramics and cement, for example. These are the so-called co-products.
The company's Research & Development area has a team trained to work on technological advancements and the development of new alternatives for co-products. Based on the pillars of sustainability and circular economy, this area analyzes the production chain in order to reduce industrial waste generation, qualifying them as co-products, with a view to their internal reuse in Gerdau's processes and mills, as well as external reuse in third-party processes through innovative solutions, in addition to the traditional uses already practiced by the market.
These developments generate both environmental and financial benefits, increasing the use of the co-product generated, preserving natural resources, saving energy, reducing or eliminating the need to dispose of value-added materials in landfills, and even generating revenue through certain destinations/applications. At Gerdau, the accounting for waste follows a classification: Reuse, which includes reuse, recycling, and recovery, and Disposal, which includes incineration, on-site storage, and landfill. The organization is looking to improve its controls in order to have more details on the disposal methods.
Our base-year 2020 report will contain the long-term global goals for the Reuse of Waste and Disposal of Waste, and multi-year goals for monitoring the evolution of this topic in the operational units. Management of the topic is defined by the operational units' Environment teams and follows the guidelines from the company's corporate Research & Development area, which works on technological advances and the development of new alternatives for co-products.
In 2020, we structured the topic of co-products as part of our strategic planning, with a focus on escalating the goal to increase the percentage of reuse and the percentage of waste destination and identifying projects and opportunities in our operations. For Gerdau's units in Brazil, we have defined a waste reuse goal of 95% by 2021.
Gerdau's activities/operations generate:
Specific monitoring is carried out for hazardous waste, using the hazardous cargo check list (inputs) through the evaluation of the Characterization Sheets for each material, carried out at each cargo entrance and in all operational units. Follow-up is carried out by teams of facilitators at the operational units, following the guidelines described in our management procedures, which include:
Our products are free of components characterized as hazardous, and this information is included in the sales invoice which contains the characterization of our products.
In the Corporate Environmental Management Directive, we reinforce the role of leadership in reaching the minimum requirements necessary for our operations, in addition to ensuring the management of all environmental impacts related to our processes, products and services, with preventive and corrective actions taken to eliminate or minimize such impacts, monitor and improve environmental indicators with a focus on reducing the consumption of non-renewable resources, reducing waste generation, emissions of greenhouse gases, and reusing water.
| COMPOSITION OF WASTE, IN METRIC TONS (T) | ||||
|---|---|---|---|---|
| BREAKDOWN OF WASTE | NON-HAZARDOUS | HAZARDOUS | Total de resíduos | |
| Waste generated | 2018 | ND | ND | 6,413,895.00 |
| 2019 | ND | ND | 6,399,671.00 | |
| 2020 | 6,750,832.66 | 594,733.26 | 7,345,565.92 | |
| Wastes not sent for disposal | 2018 | 4,280,354.17 | 310,828.76 | 4,591,182.93 |
| 2019 | 4,546,706.98 | 401,035.50 | 4,947,742.48 | |
| 2020 | 5,514,310.80 | 279,599.39 | 5,793,910.19 | |
| Waste sent for disposal | 2018 | 1,472,468.45 | 53,548.77 | 1,526,017.22 |
| 2019 | 1,442,977.00 | 115,567.35 | 1,558,544.35 | |
| 2020 | 899,457.73 | 42,886.81 | 942,344.54 | |
Notes on the data:
The amount reported for waste generated may be less than the sum of the waste sent, since destination can count volumes of waste in stock.
Non-hazardous waste: Due to COVID-19, the Colombia (GLO) operation was interrupted for almost three months, therefore reducing the waste generated.
CBREAKDOWN OF NON-HAZARDOUS WASTE INTENDED FOR REUSE:
Industrial: Ladle furnace slag, steel slag, non-ferrous scrap, balloon dust, scrap yard waste, lime waste, fine mill scale/sludge, EAF slag, EAF shell slag, non-ferrous metals, refractories.
Non-industrial: Refractory, mill scale, shredder waste, blast furnace sludge, blast furnace slag, ore fines, melt shop sludge, charcoal fines and coal fines, steel slag, refractories, laddle furnace slag.
BREAKDOWN OF HAZARDOUS WASTE INTENDED FOR REUSE:
Industrial: Oils and greases, melt shop dust, lead sludge and ash, zinc sludge and ash, used acid, EAF dust, Construction Waste material.
Non-Industrial: Combustion chamber dust.
BREAKDOWN OF NON-HAZARDOUS WASTE INTENDED FOR DISPOSAL:
Industrial: Balloon powder, melt shop slag, blast furnace slag, charcoal fines and coal fines, non-ferrous scrap, pot slag, refractory, fine mill scale/sludge, refractory, steel slag, scrap yard waste, waste lime, lime fines, scrap deposit, shredder dust.
Non-Industrial: Scrap yard waste, Shredder waste, blast furnace sludge, melt shop sludge.
BREAKDOWN OF HAZARDOUS WASTE INTENDED FOR DISPOSAL:
Industrial: Oils and greases, zinc sludge and ash, EAF dust, Construction waste material.
Non-Industrial: Melt shop dust, combustion chamber dust, used acid.
|
WASTE PER DESTINATION, IN METRIC TONS (T) |
NON-HAZARDOUS WASTE | HAZARDOUS WASTE | |
|---|---|---|---|
| Reuse | 2018 | 4,280,354.17 | 310,828.76 |
| 2019 | 4,546,706.98 | 401,035.50 | |
| 2020 | 5,514,310.80 | 279,599.39 | |
| Disposal | 2018 | 1,472,468.45 | 53,548.77 |
| 2019 | 1,442,977.00 | 115,567.35 | |
| 2020 | 899,457.73 | 42,886.81 | |
| Stock* | 2018 | ND | ND |
| 2019 | ND | ND | |
| 2020 | 324,155.40 | 5,221.26 | |
*Waste without defined destination.
Notes on the data:
Hazardous waste: Two types of waste were reclassified: Sludge from the ETP (other industrial) and dust from the combustion chamber became class II waste.
Non-hazardous waste: Due to COVID-19, the Colombia (GLO) operation was interrupted for almost three months, therefore reducing the waste generated.
Data refer to waste generated within the organization.
Scope of the indicator: Units in Venezuela and the Dominican Republic are not included in this indicator.
|
OVERBURDEN, TAILINGS AND SLUDGE GENERATED BY OPERATIONS (TONS) |
GAB AÇOS LONGOS BRASIL | ||
|---|---|---|---|
| 2018 | 2019 | 2020 | |
| Overburden | 4,963,786 | 6,157,189 | 3,011,868 |
| Tailings | 271,656 | 254,936 | 243,725 |
| Sludge | 0 | ||
| Total | 5,235,442 | 6,412,125 | 3,255,593 |
The calculation of tailings takes into account the total flow of sludge pumped from the ore treatment plant to the Alemães dam x density of tailings sampled in the pumping x number of pumping hours.
For overburden, the material removed from the Várzea do Lopes and Várzea Leste Norte mines and deposited in overburden piles is considered.
Monitoring for tailings is done by the water balance worksheet of the ore treatment unit.
For overburden, the information is obtained from the movement monitoring worksheet in the mine pit planning area (Overburden from the Várzea do Lopes and Várzea Leste Norte mines).
In relation to the variation in data, in 2019 the development of the Várzea de Lopes mine was carried out to release the ore from the pit floor. In 2020, the overburden removed was only the material necessary to release the ore to comply with the production plan.
Gerdau has a Sustainability Policy and an Environmental Management System, which reinforce the Company's commitment to generating value for its stakeholders, especially suppliers, customers, service providers, employees, community, regulatory bodies, financial and capital markets, academia, press and related parties, and is aligned with regulatory guidelines and global best practices, promoting the escalation of directives in all operations, detailing responsibilities and procedures that need to be followed. In this way, the Company manages its aspects, environmental impacts, operating permits and authorizations in order to meet the specificities of each operation and region in which it operates, with a view to causing the least possible impact on nature, preventing risks and the occurrence of environmental accidents, in addition to increasing credibility with public opinion.
Gerdau has in place a series of Corporate Directives that deals with this topic, including the DC-27-1, which establishes minimal and objective requirements on environmental management and relevant environmental topics.
All operations must meet current legal requirements and manage their environmental demands to address environmental compliance. Gerdau has internal and external audit systems, computerized process management, grievance mechanisms, benchmarking, etc. to assess the effectiveness of its management approach.
|
NON-COMPLIANCE WITH ENVIRONMENTAL LAWS AND/OR REGULATIONS |
2018 | 2019 | 2020 | Métrica |
|---|---|---|---|---|
| Total number of significant fines received in the year | 3 | 4 | 4 | Number |
| Total value of significant fines received in the year | R$ 26,517,300.00 | R$ 476,042.00 | R$ 793,444.80 | Reais (R$) |
| Total number of non-monetary sanctions | 2 | 1 | 1 | Number |
| Number of cases (of total fines + sanctions) brought through dispute resolution mechanisms | 5 | 5 | 0 | Number |