ABOUT THE REPORT
After two previous biennial publications, the 12th edition of the Brazil Steel Institute’s Sustainability Report will cover 2018, 2019, and 2020 – a reflection of the Covid-19 pandemic, an unprecedented period and without a doubt one of the most critical in recent human history. Even in the midst of a scenario that is difficult and ongoing, we strive to maintain our commitment to editing and publishing data with reference to sustainable action in the Brazilian steel industry.
Here we bring together data on the sector’s performance, as well as impactful events from this period and the manner in which they were mitigated. The information was gathered by Brazil Steel Institute’s team, relying on collaboration from technicians and specialists from a wide range of departments at associated companies.
This report will present the sector’s sustainable development initiatives, as well as what we still need to work on moving forward. Whether reducing waste through means of recycling projects or taking measures that contribute to reducing the impacts of climate change and demand for natural resources, each project enhances our performance and commitment to sustainability in steel production.
MESSAGE FROM THE PRESIDENT
Major challenges emerging in a world of transformation
The Covid-19 pandemic arrived at the start of 2020 at a moment in which economic indicators suggested that we were leaving the crisis experienced in recent years behind and that forecasts for demand for steel in Brazil were very positive. This uncertain and challenging scenario uprooted our expectations, imposing upon us a reality that had been unheard of in the last one hundred years: a pandemic capable of paralyzing the economy and changing, even if temporarily, the way in which we connect in both our professional and personal lives.
We, the Brazilian steel industry, placed the priority on the wellbeing of our employees, communities, and clients. This is reflected in the excellent worked carried out along various networks, in a collaborative manner, by our associates throughout Brazil, which resulted in the construction of hospitals, whether field hospitals or permanent facilities, the donation of numerous varieties of health equipment, face masks, hygienic materials, among other types of PPEs. In the manner, we were able to make ourselves part of the solution to the problems faced by society.
We once again drew upon the enormous capacity of the Brazilian steel industry to face seemingly impossible situations head on. Our industry committed itself, from the first sign of instability, to continuity in steel production, an activity considered to be essential, adopting rigorous safety protocols and thereby guaranteeing total supply for consumer markets. I wish to emphasize the fact that steel is an indispensable value chain input that cannot cease to exist, like hospitals, components of the healthcare sector, security and agriculture, among others.
Readily, and with maturity and responsibility, the sector took the necessary safety measures for its employees, suppliers, and thereby the entire production chain. The sector opted for remote work wherever possible in all operational areas, strict protocols for prevention, and monitoring employee health to make the journey safer during such uncertain times.
In addition to looking out for the health of others and developing a series of social actions, the pandemic was also a period in which our environmental agenda evolved even further, with advances made in reusing waste and water in production processes and the commercialization of co-products. Additionally, despite the Brazilian steel industry already having practices in place making it a reference worldwide for technology and reducing carbon emissions, sustainability is increasingly becoming our top priority and we remain attentive and work towards seeking out and developing the best and most reliable solutions that will allow the sector to accelerate its decarbonization process and continue aligning itself with the agendas at the center of discussion in society today. It is important to highlight that steel is an essential product for individuals and society as we work towards a Circular Economy, mitigating the possible impacts of production routes.
Going back a bit further in time, 2018 and 2019 were already years of crisis for a large part of the country’s economic sectors. For the steel industry, in addition to other factors such as the trucker’s strike, one of the main culprits was an increased escalation of the longstanding polarization between the United States and China, which was accompanied by protectionist policies and geopolitical tension.
Recovery during this two-year period, however, occurred at a slower pace than was expected – and needed –, creating obstacles for full expansion of the steel industry. Guided by the principles of research, technology, innovation, and social responsibility, we are seeking out transformative solutions that are capable of overcoming such obstacles and placing the sector back on the path to growth.
No one was prepared for the events of 2020; we needed to work quickly to reinvent ourselves and invest increasingly more in innovation and research and development. The steel sector has been taking greater steps towards offering innovative products and solutions that are in line with market trends and the needs of consumer sectors. We have also made advances in the digitalization of our industrial parks, through initiatives for artificial intelligence, for example, allowing our production processes to become state-ofthe- art in terms of high-quality steel production. And we are still learning with each new day. At a time such as that which we are currently facing, it has become evident that each one of us must do their part to overcome not only the pandemic and its social and economic effects, but also to expand our outlook on sustainability and quality of life. We possess the determination needed to bring our sector – one of the most economically important both in Brazil and worldwide – back on a path towards full development.
We are learning from the past; once again, we have made unity and bringing people together our biggest asset. However, we are also looking towards the future, gleaning lessons from previous challenges and opportunities. And, speaking of the future, we trust that 2021 and 2022 will bring health to all and the return of growth, as well as increased steel production, to the Brazilian economy.
(...) we are seeking out transformative solutions capable of overcoming such obstacles and placing the sector back on the path to growth.
Marcos Faraco
Chairman of Brazil Steel Institute’s Board of Directors and Vice-President of Gerdau Steel Brazil Argentina, and Uruguay