From Sustainable Development Key Performance Indicators to Risk Assessment

Organisation Name

Arcelor

Problem

Sustainable development key performance indicators give only a snapshot of the company at a given date. Their consolidation can hide great differences between practices from one site to another. A 2nd phase of implementation of sustainable development into a Group’s practices should be risk-oriented and give a better knowledge of the degree of compliance of a group’s activities to sustainable development standards and of the exposure of the subsidiaries and contractors to the listed economic, social and environmental risks. 

Solution

• In Arcelor, the Sustainable Development Department works with the Business Risk Control (BRC) Department to include an exhaustive list of sustainable development risks into Arcelor risks map.
• Practical issues linked to strategic, compliance and operational risks with a potential important impact on Arcelor sustainability have been listed, such as: compliance with environmental norms and regulations, the obsolescence of equipment, employee satisfaction and motivation, the loss of key competencies, the adequacy of claim management and customer file management, the availability of raw materials and energy, soil contamination, the destruction or over-usage of natural resources, exposure to professional diseases, the efficiency of Arcelor's control on sub-contractors, etc.
• The economic, social and environmental aspects of sustainable development are an integral part of BRC's mapping activities, which cover 190 risk types in Arcelor's activities.
• Arcelor Sustainable Development Department can rely on Arcelor BRC's solid network of 70 auditors to make on-site assessments.

Constraints

• Defining the economic, social and environmental risks of the Group at every level (corporate, operational units, entities).
• Identifying experts and training auditors on the economic, social and environmental fields of the audit’s scorecard.

Benefits

• With the help of the Business Risk Control Division, through its Risk Management Development Unit, Arcelor has helped its managers formalise their risk management practices and integrate them transparently in their day-to-day management.
• The economic, social and environmental aspects of sustainable development are now an integral part of BRC's mapping activities, which cover 190 risk types in Arcelor's activities and are parts of the audits.
• The assistance of BRC in identifying high-risk areas provides operational staff with a set of good internal control practices and, via its internal audit activities, ensure these practices are applied.

Place Of Implementation

Worldwide

Themes

Mainstreaming CSR
Communications and Reporting

Solution Champion

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