Académique Documents
Professionnel Documents
Culture Documents
Sustainabilitythrough profitable and responsible long-term growth. We are committed to being cultural and environmental stewards in the communities where we live and work. We are succeeding by working together.
DANIEL R. DIMICCO
CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER NUCOR TENURE 1982-PRESENT
T H I S R E P O R T I S D E D I C AT E D T O T H E 2 0 , 4 0 0 M E N A N D WO M E N O F N U C O R C O R P O R AT I O N A N D O U R S U B S I D I A R I E S W H O C O N T I N U E T O P ROV E E V E R Y DAY T H AT S T E E L I S N O T O U R S T RO N G E S T A S S E T.
IT S R E S O LVE .
LETS DO IT TOGETHER.
4 6
LETTER FROM DAN DIMICCO
OVERVIEW
10 20 32 48 56 64 72
EMPLOYEE RELATIONS
ENVIRONMENTAL PERFORMANCE
COMMUNITY RELATIONS
CUSTOMER RELATIONS
GOVERNANCE
COMMITMENT TO SUSTAINABILITY
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
ITS OUR
mission
while the manufacturing sector lost more than two million jobs, we didnt lay off any of our Nucor teammates due to lack of work. Sure, our teammates earned less money, but they still had paychecks, benefits and a promise for a better tomorrow. We didnt close any of our Nucor facilities. So, even though many of our valued
customers did not need steel last year, they can rest assured they will have a local and reliable source of sustainably produced steel tomorrow. We historically take advantage of downturns to improve our skills and our operations,
and grow our company to be prepared to take advantage of the upturn when it occurs. Our companys generosity did not falter. In 2009, we made more than $4.6 million
in charitable donations, and contributed a record $4.4 million in scholarship funds for the children of our employees. Speaking of our teammates, they donated an outstanding 75,000 volunteer hours to their local communities. Our focus onand investment inemployee safety and environmental performance
never skipped a beat. All safety and environmental programs, including internal audits and our own safety boot-camp program, were fully funded and exempt from any restrictions to curb travel expenses. In fact, 2009 was Nucors safest year despite the downturn!
05
Nucors steel recycling technology is many times cleaner and less polluting than the
traditional integrated steel mills. But were not stopping here. Again, Nucor continued to invest in improvements. This included conducting our environmental boot camps. We continued to invest in what already is the most energy-efficient family of steel mills
in the world. We did not use the drop in demand as an excuse to shutter facilities. Instead, we viewed it as an opportunity to make important improvements in our long-term environmental performance. What didnt change were our core values and our commitment to long-term success. Our culturebased on integrity, teamwork, personal responsibility, courage and the Nucor can-do attitudedid not change. These are the things that allowed us to make the improvements we did in 2009. While this may be our first sustainability report, our commitment to sustainable management is nothing new. Great companies always prepare for the good times in the tough times and for the tough times in the good times. Focusing on the long-term goal is what has enabled us all to prosper during good times. As a result, we will emerge from todays challenge stronger than ever. Because one other thing that didnt change is the enduring spirit of the 20,400 men and women of Nucor Corporation and subsidiaries to whom this report is dedicated. Lets do it together. Sincerely,
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
OVERVIEW
07
At Nucor, sustainability is not something that was planned recently; it is the result of decades of a culture centered around our CEO Dan DiMiccos goal:
Our Goal is to Take Care of Our Customers. We are accomplishing this by being the Safest, Highest Quality, Lowest Cost, Most Productive and Most Profitable Steel and Steel Products Company in the World. We are accomplishing this by being cultural and environmental stewards in the communities where we live and work. We are succeeding by working together. Taking care of our customers means all of our customers: our employees, our shareholders and the people who purchase and use our products.
As the team at Nucor has strived to achieve this goal, we have created an extraordinary sustainable company. Please enjoy reading the contents of this report as much as we have enjoyed compiling it for you, one of our valued customers.
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
OVERVIEW
09
OUR MISSION
Nucor Corporation is made up of 20,400 teammates whose goal is to take care of our customers. We are accomplishing this by being the safest, highest quality, lowest cost, most productive and most profitable steel and steel products company in the world. We are committed to doing this while being cultural and environmental stewards in our communities where we live and work. We are succeeding by working together.
ORGANIZATION PROFILE
Our mills have a production capacity that exceeds 26 million tons. Nucor is the largest producer of steel, joist and deck in the United States. We are the Western Hemispheres largest recycler.
! KEEPING SAFETY TOP OF MIND. Some of our workers carry photos of their families inside their hard hats to remind them of the importance of safe behavior in the plant.
11
ITS OUR
We run Nucor first and foremost to ensure that, a decade or two from now, there will be a place for our children and grandchildren to work...that is our higher cause.
Safety of our employees is our number one priority. No matter how you look at safetypersonal, business, moral or ethicalit just makes sense for it to be a number one priority. Period.
KEN IVERSON
19621998
DANIEL R. DIMICCO
1982PRESENT
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
13
zero
AT NUCOR, WE TARGET ZERO INJURIES AND ILLNESSES. So it should come as no great surprise that safety is the first topic of virtually every meeting we conduct from every plant meeting to every boardroom meeting. Or that we have teams dedicated exclusively to improving the working conditions and practices at all of our operations right down to auditing every one of our facilities for safety performance. Or that personal responsibility is a significant part of our safety culture. These efforts played an important role in ensuring zero fatalities in 2009, not to mention bringing our injury and illness rate to its lowest point in our history. Yet, while were proud of these achievements, were anything but satisfied. Because, of course, our ultimate goal is to have zero injuries of any kind. Thats why Nucor has created and implemented a number of systems to drive continuous process improvement in safety and health. This approach includes the Safety Incident Reporting Network (SIRN), SharePoint and ongoing audit programs.
continued 1
!
JEWETT, TEXAS
Teammates at our Jewett, Texas, facility conduct a safety drill at our confined space training center.
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
P E R 1 0 0 WO R K E R S / 2 0 0 , 0 0 0 H O U R S P ER YEAR
1.46 5.07
STEEL MILLS
NUCOR NATIONAL INDUSTRY AVERAGE
2.03 9.70
FABRICATORS
1.28 7.60
BUILDING GROUP
SIRN is a program that enables all Nucor divisions to share information on incidents, best practices and corrective actions. Once an incident occurs, a report is entered into the Microsoft SharePoint portal, an internal Web site, so that all Nucor facility safety coordinators are aware of what happened and, most important, how it can be prevented. SharePoint enables Nucor to disseminate information across the company, share best practices and promote discussions pertaining to safety.
We audit every one of our production facilities for environmental and safety performance at regular intervals. These audits are unique in that each Nucor facility is audited by its peers from other divisions to discover best practices. They then refine and share them. The process lasts several days at each location and consists of compliance, program and procedural reviews, along with an innovative cultural audit that focuses on employee internalization of safety practices, and solicits their input on the safety process. In addition, each Nucor facility has a dedicated safety coordinator or safety director. These representatives meet twice a year to gather and share information and best practices, discuss new trends and receive training.
15
0.68 2.70
STEEL MILLS
NUCOR NATIONAL INDUSTRY AVERAGE
1.31 5.23
FABRICATORS
0.69 4.03
BUILDING GROUP
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JESSICA ROBINSON (L), ENVIRONMENTAL ENGINEER, AND DANIELLE POWERS, ENVIRONMENTAL INTERN
Nucor Steel Berkeley
17
100%
13,500
MORE THAN
One of the most visible benefits for teammates is getting in to see a physician when they need to, which is important because many mills are in rural areas, where getting in to see a physician can take some time, says Mike Gurley, former vice president and general manager of Nucor Steel South Carolina, now vice president and general manager of Nucor Steel Memphis, Inc. Now, teammates can walk to the clinic instead of taking time off work to go visit a doctor. Since the beginning of 2009, teammates and their families have visited Nucors own health clinics more than 2,000 times. More than 80 percent of the workforce and 150 family members have taken advantage of the program. In addition, more than 83 percent of our teammates have seen a physician more than once. Teammates also have access to lower prescription drug costs. We have 47 in-house medications at an average cost of $7 for a course of treatment. There are only three medications that cost more than $12and the most expensive one is only $14, continues Gurley. Thats a significant savings for employees. The on-site physicians are instrumental in teammate education and preventive programs and can help teammates make more educated decisions with regard to treatments and prescription medications.
GREATER COST CONTROL, REDUCED ABSENTEEISM The program has resulted in lower healthcare costs for the company. We saved $2.6 million last year, excluding the additional saving realized by increased productivity and reduced absenteeism. As a result of the on-site medical clinics, weve reduced the cost of physician visits, medications, lab work, imaging and other testing significantly, says Gurley. Having a knowledgeable medical advocate working on our behalf helps us negotiate better rates with pharmaceutical and medical technology companies. In addition to Nucors financial benefits, the on-site medical clinics have improved long-term workers compensation case management and improved team morale.
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We can be safe one second at a time, and weve proven that over and over again. The VPP process brought an awareness to our team that wasnt there before. It brought our team closer, because we were working on projects that would benefit our own safety in the area in which we work every day. When it comes to safety, you can be good or even great. But there is ALWAYS room for improvement.
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HEALTH AND SAFETY PERFORMANCE INDICATORS GRI NUMBER DESCRIPTION REPORTED PAGE
ASPECT: OCCUPATIONAL HEALTH AND SAFETY LA6 Percentage of total workforce represented in formal joint managementworker health and safety committees that help monitor and advise on occupational health and safety programs. Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region. Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. Partially Reported
14, 17
LA7 LA8
14-15
17
WE HAVE ONE OF THE MOST MOTIVATED AND BEST-TRAINED WORKFORCES IN THE INDUSTRY. NUCOR STEEL HERTFORD DID NOT LAY OFF ANY EMPLOYEES DURING THE 2009 ECONOMIC DOWNTURN DUE TO LACK OF WORK.
! Stephen Bond, an employee at our Hertford, N.C., facility, is welcomed home by his family. Bond says hes grateful for the peace of mind Nucor provides his family.
E MPLOYEE RELATIONS
21
EMPLOYEE RELATIONS
ITS OUR
When is laying people off the practical Our companys success is the direct result our most or sensible thing to do? Can we ofexpect valuable assetour employees. They give Nucor its innovative employees to be loyal and motivated if we culture and competitive edge. lay them off at every dip of the economy, while we go on padding our own pockets?
KEN IVERSON
19621998
At Nucor, people get what they ought to get from their work: Good pay. Real job security. Interesting challenges. Respectful treatment. The chance to accomplish something every day. A fair and equitable workplace. The pride of being a part of a very successful enterprise.
DANIEL R. DIMICCO
1982PRESENT
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We Are Nucor
Nucors most valuable asset is our teammates. Empowering, training and challenging our team is the essence of Nucor. Managers, supervisors and hourly teammates working side by side are commonplace as we strive to reach our goals. Compensation plans provide incentives for everyone at Nucor to be rewarded for his or her performance. Nucor teammates thrive on the opportunity to excel, and Nucor rewards that performance. The bottom line? Nucor teammates are rewarded for taking care of their customers. We are always striving to improve every aspect of our business. We are never satisfied. As soon as we reach a goal, we establish a new one and begin reaching for it. Importantly, we recognize that our teammates are our greatest asset. We ARE Nucor.
E MPLOYEE RELATIONS
23
steel
resolve
93%
N AN ECONOMY WHERE THE MANUFACTURING SECTOR LOST TWO MILLION JOBS OVER A 19-MONTH PERIOD ENDING IN JULY 2009*, NUCOR DID WHAT WE ALWAYS DO DURING CHALLENGING TIMES: WE SHARED THE PAIN. We protected one another, and we persevered. The morale is miraculously high at Nucor, said Kevin Barksdale, a production manager at Nucor Cold Finish Nebraska. When the economy recovers, we know we will again share in the bounty of the good times. At Nucor, we use an incentive pay system that has led us to a practice of not laying off employees in a down economy. We have found that when everyone in the company takes a pay cut, all employees are incentivized to work together to ensure our companys success. When market conditions are difficult, Nucor employees are not laid off. Instead, they work to optimize our systems, receive cross-training, and perform maintenance so that we are positioned to take full advantage of improved market conditions when the economy grows again. Our wholly owned subsidiaries, David J. Joseph and Harris Steel Group, do not participate in the Nucor incentive pay system. We retained 93 percent of teammates from 2008 to 2009. We lead the industry in tons of steel produced per employees and, as a result, were consistently one of the lowest-cost producers in North America.
continued 1
EMPLOYEE RETENTION
PER YEAR
2009
PRODUCTION LINE
10%
TOTAL AVERAGE EARNINGS FOR NUCOR EMPLOYEES IN 2009 OVER PREVIOUS YEARS
Our employees are the reason for our success as a company, and they are why we are known as cultural and environmental stewards in the community.
E MPLOYEE RELATIONS
25
ATTRACTING, KEEPING THE BEST Nucor is committed to the ongoing development and education of our employees and offers a number of programs to accomplish this, including NuPerformance, a curriculum that ensures Nucor teammates are given the resources they need to reach their personal and professional goals. Instead of a template career path, Nucor teammates have the opportunity to take responsibility for their career progression. Entitlement never plays a role in a teammates progression. Hard work and perseverance alone are rewarded. Additionally, we have continued hiring and recruiting both experienced workers and college graduates. Nucor has been quietly stocking up on the best and brightest in the industry. Weve continued to build our pipeline because we think about talent in the long run, said Dan Krug, director, human resources and organizational development at Nucor Corporation. When the economy rebounds, we will be in the best position to take advantage of every opportunity.
BY REGION
............ TRINIDAD
Nucor has programs in place to recruit minorities and women to our workforce. For example, in May 2010, the company opened the Nucor Education and Resource Center on the Tuskegee University campus in Alabama, one of the top historically black universities in the United States. This facility will help educate approximately 50 students annually. Additionally, Nucor is a major sponsor of the National Society of Black Engineers, the Society of Women Engineers, the Women Engineering Proactive Network, Association of Women in the Metal Industries, and the National Association of Multicultural Engineering Program Advocates. Annually, Nucor donates approximately $100,000 to these important organizations. We invest and support engineering diversity programs at a number of universities, says Wayne Robinson, Nucor Corporation talent recruiting manager. Our goal is to ensure Nucor has exposure to the diverse population on each campus. Nucor has a robust benefits package, and our support for employees does not end there. Our Nucor Foundation Scholarship Program offers scholarships for every child of every employee for four years of their post-highschool education. Finally, Nucor is committed to ensuring that all employees are treated fairly. There are no reserved parking spots, no special vacation plans and no first-class travel perks. Our success is driven by teamwork. It is why we call our employees teammates. Our teammates are the reason for our success as a company and also why we are known as cultural and environmental stewards in the community.
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
This pay-for-performance model enables Nucor to share its success with the reason we are successful: our teammates.
2 Teammates have the right to be treated fairly. 2 Teammates must have an avenue of appeal
when they believe they are being treated unfairly.
E MPLOYEE RELATIONS
27
P E R YEAR
A PERSON WORKING AT THE FEDERAL MINIMUM WAGE RATE OF $7.25 PER HOUR AND WORKING A TOTAL OF 2,080 HOURS
same things that Dan DiMicco and others did: you do your job, and then you do a little bit more. Hamilton Lott, Jr., now the executive vice president of the fabrication division at Nucors corporate office, started out as a design engineer in 1975 at Vulcrafts facility in Florence, S.C. After several promotions, Lott moved to Texas to serve as general manager for another Vulcraft facility. Six years later, he returned to Florence as general manager. In 1999, Lott moved to the Charlotte, N.C., corporate office for his current role, starting the same day as Dan DiMicco. This is a company thatby and largepromotes from within, Lott said. Many of our employees are working for people who have been promoted through the company. But Lott says the reason he has stayed with Nucor for 34 years is due to his belief in the companys core values and the way Nucor treats its employees. Its been a wonderful experience, Lott said. I could not imagine working anywhere else.
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Nucor Teammates:
E MPLOYEE RELATIONS
29
SINCE ITS INCEPTION, WE HAVE GIVEN MORE THAN $52 MILLION TO 10,500 STUDENTS AT MORE THAN 1,300 DIFFERENT COLLEGES. IN 2008, NUCOR PAID OUT $4.2 MILLION IN SCHOLARSHIPS TO NUCOR SCHOLARS. IN 2009, NUCOR PAID OUT A RECORD $4.4 MILLION.
30
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
AMOUNT DONATED TO THE F. KENNETH IVERSON CHAIR OF STEELMAKING TECHNOLOGIES AT MISSOURI UNIVERSITY SINCE 2006
$2.1
MILLION+
E MPLOYEE RELATIONS
31
LABOR PRACTICES AND DECENT WORK PERFORMANCE INDICATORS GRI NUMBER DESCRIPTION REPORTED PAGE
ASPECT: EMPLOYMENT LA1 LA2 LA3 Total workforce by employment type, employment contract, and region. Total number and rate of employee turnover by age group, gender, and region. Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. Partially Reported Partially Reported Completely Reported
25 23 26
ASPECT: ECONOMIC PERFORMANCE EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. Partially Reported
27, 51, 67
ASPECT: MARKET PRESENCE EC5 EC7 EC9 Range of ratios of standard entry-level wage compared to local minimum wage at significant locations of operation. Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation. Understanding and describing significant indirect economic impacts, including the extent of impacts. Completely Reported Partially Reported Partially Reported
27
27
50-51
! THE LARGEST RECYCLER IN THE WESTERN HEMISPHERE. Because we use scrap as our primary feedstock, Nucor prevents millions of cars from heading into landfills every single year.
E N V I RO N M E NTAL PERFORMANCE
33
ENVIRONMENTAL PERFORMANCE
ITS OUR
Steel is the most recyclable product in the world.You can build a house from steel derived from about eight old cars, using materials that are entirely recyclable, and save about a dozen trees. And that house will stand indefinitely. We want to get the facts about steel to consumers.
KEN IVERSON
19621998
Protecting the environment is critical to the communities in which we work, our operations and the companys long-term success.
DANIEL R. DIMICCO
1982PRESENT
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Environmental Vision
Nucor continues to be a leader by raising the bar by which steel mills and recycling centers should be judged. With most of our operations equipped with continuous emissions monitors, Nucor not only talks the talk but walks it as well. Nucors policy that environmental compliance is the individual responsibility of every Nucor employee clearly shows that it is our culture that makes the difference. A company that is built on the model of recycling steel in massive volumes is truly founded on a sustainable modelNucor was founded on the principle of making reinforced steel and light structural shapes with scrap metal. Nucor, from the beginning to this day, has and continues to push recycled content into steel products where recycled content was not considered viable. We have been so successful that, today, most domestically produced steel contains some amount of recycled steel. The commitment to the environment runs deep in Nucor culture, where investments are continually being made to improve equipment and performance, recycle materials and reduce waste, and, finally, to perfect new technologies that reduce emissions and increase energy efficiency. Quite simply, our long-term goal is twofold: 1. we want to recycle all steel products. 2. we want all steel products to have recycled content. At Nucor, our culture drives us to define the standard rather than simply meet it. That is the reason one inspector simply said, I wish everyone would do this.
E N V I RO N M E NTAL PERFORMANCE
35
Investing
UCOR HAS HISTORICALLY BEEN KNOWN FOR MAKING DECISIONS THAT WERE GEARED TOWARD LONG-TERM SUCCESS. THE DOWNTURN OF 2009 WAS NO EXCEPTION. We used the lull in production to make further improvements to our plantsat a time when many of our competitors were shutting down some of their facilities. We improved our facilities and became even more lean and efficientalthough we were already among the most energy-efficient companies in the world. 1. OPERATIONAL ENHANCEMENTS LOWER COSTS, INCREASE EFFICIENCY We have always been focused on lowering our energy and water use per ton of steel produced across all of our facilities. Its good for the environment and good for business. In 2009, we continued installing technology that reduces our energy use during peak times when supplies are lower and prices are higher. This approach not only trims our costs, but it also reduces the likelihood of a work stoppage as a result of a brownout. Were not just talking about installing energy-efficient bulbs. Were thinking bigger, says Brian Avery, environmental manager for Nucor Steel Decatur LLC. Were incorporating computerized controls on large horsepower motors and pumps. These controls restrict energy use to non-peak hours, which will save the company millions annually and reduce our environmental footprint. In addition, were incorporating energy-recovery systems in our mills to capture and reuse energy that would normally
be wastedlowering energy use and costs even more. How are we doing? Very well, when you consider how the United States measures steel manufacturers energy consumption in energy intensity per ton of steel. Thanks to our approach to sustainability, Nucor beat the categorys industry average. And when you consider that American steel companies lead all other countries in energy efficiency, its not a stretch to say were among the most energy-efficient steel companies in the world. 2. PEOPLE MAKE THE DIFFERENCE We continued to invest in our teammates development even during the economic downturn. One example is our ongoing investment in our Environmental Boot Camp program, a sustainability initiative that aims to improve our environmental compliance and operational support, while ensuring employees understand how to operate and maintain environmental equipment. Environmental professionals are grouped into one of four categories, based on their roles at the company, said Jeff Braun, environmental affairs manager at Nucor Corporation. These categories include environmental managers, engineers, coordinators and technicians. These groups meet at least once a year to discuss sustainable best practices. They share lessons learned with colleagues when they return to their respective facilities. In addition to meeting as individual groups, teammates in the program also meet for a week-long session to explore how to further develop sustainability initiatives at the
continued 1
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
company. Our teammates participate in ongoing peripheral training classes on such topics as radiation safety officer responsibilities. Nucor takes its Environmental Boot Camp program seriously. We spend up to $50,000 on each of these meetings, because they are key to our sustainability and safety objectives, says Jim Sheble, vice president and general manager, Nucor Steel Jackson, Inc. 3. SETTING THE INDUSTRY STANDARD One of the ways we are doing our part to make the world a better place is by achieving ISO 14001:2004 certification. In fact, 42 of our facilities have achieved this certification. Achieving ISO 14001:2004 certification means that Nucor mills put an Environmental Management System in place that makes environmental commitment each teammates responsibilitynot just the environmental department. This approach ensures the environmental policy becomes a motto for each facility. The entire facility is evaluated for how significantly it can impact the environment. There are measurable objectives and targets in place, such as reducing the use of oil and grease, minimizing electricity use and implementing site-wide recycling programs.
continued 1
CONTINUED INVESTMENT
OF COMPANY RESOURCES INTO ENVIRONMENTAL BOOT CAMPS
ISO 14001:2004
CERTIFICATIONS
NUCORIZE
NEW PLANTS AND FACILITIES
Nucor teammates are the key ingredient in helping us meet our environmental goals.
E N V I RO N M E NTAL PERFORMANCE
37
The Environmental Management System looks at the environmental performance of an entire facility in a comprehensive way. Nucor is committed to ISO 14001 certification because ISO-certified facilities run better, continues Sheble. Our first plant was certified in 2001 and we never looked back.
I S O 1 4 0 0 1 : 2 0 0 4 C ER T I F I E D N UC O R FAC I L I T I E S
American Buildings Company Atlantic American Buildings Company Midwest American Buildings Company South American Buildings Company West CBC Steel Buildings LLC Gulf States Manufacturers LLC Kirby Building Systems LLC NUCON Steel Corporation Nucor Building Systems IN Nucor Building Systems SC Nucor Building Systems TX Nucor Building Systems Utah LLC Nucor Cold Finish Nebraska Nucor Cold Finish South Carolina Nucor Cold Finish Wisconsin, Inc. Nucor Fastener Indiana Nucor Steel Arkansas Nucor Steel Auburn, Inc. Nucor Steel Berkeley Nucor Steel Birmingham, Inc. Nucor Steel Connecticut Inc. Nucor Steel Decatur, LLC Nucor Steel Hertford Nucor Steel Indiana Nucor Steel Jackson, Inc. Nucor Steel Kankakee, Inc. Nucor Steel Marion Inc. Nucor Steel Nebraska Nucor Steel Seattle, Inc. Nucor Steel South Carolina Nucor Steel Texas Nucor Steel Tuscaloosa, Inc. Nucor Steel Utah Nucor-Yamato Steel Company Verco Decking, Inc. Vulcraft Alabama Vulcraft Indiana Vulcraft Nebraska Vulcraft Of New York, Inc. Vulcraft South Carolina Vulcraft Texas Vulcraft Utah
LEARN MORE AT: WWW.NUCOR.COM/RESPONSIBILITY/ENVIRONMENT/CERTIFICATIONS/
$25.7
MILLION
AMOUNT NUCOR APPROVED FOR CAPITAL EXPENDITURE REQUESTS FOR ENVIRONMENTAL PROJECTS IN 2009
4. GROWING BY LEAPS AND BOUNDS The current economic environment hasnt slowed Nucors production expansion strategy. Last year, we established a new galvanizing line at our Decatur, Ala., plant to support the automotive industry. We built a second strip-casting plant in Blytheville, Ark., and added a heat-treat product line at our Cofield, N.C., facility. We also started up our Kingman, Ariz., facility, which supports our West Coast customers and opened a Memphis, Tenn., plant to produce large windmill components, among other products, explains Mike Gurley, vice president and general manager, Nucor Steel Memphis, Inc. What do building new mills have to do with our environmental mission? First, they are key to sustaining our customer relationships. We provide the most value to our customers if we can sustain these relationships throughout the economic cycle. Second, once we acquire plants, we immediately begin getting them up to Nucor standards. We call it Nucorizing. These newly acquired facilities often see a drastic change in priorities from past ownership. Safety and environmental excellence truly become a priority over production and other commitments. By increasing the operational efficiency of the mills we acquire, we can make them more environmentally sound, not to mention dramatically reduce the amount of time, space, energy and manpower required to produce steel, says Gurley.
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
59%
2007
87%
2009
E N V I RO N M E NTAL PERFORMANCE
39
50%
OF STEEL PRODUCED IN U.S. HAS BEEN RECYCLED*
>70%
RECYCLED STEEL CONTENT
THE BOF METHOD TYPICALLY ALLOWS FOR LESS THAN 30 PERCENT (TRADITIONAL DOMESTICALLY PRODUCED)
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
N IO CA CT ON DU /T RO E Q P O 2 L EE C ST LB
CA
ST LI EQ F O CO 2 D EN LB FE O /T N
CA
TO
L TA
TO
NS
P/ T GW AS S NC N TO TO
15,086,327 13,860,434
Considering the size of our portfolio, our steelmaking operations total global warming potential (GWP) from cradle to cradle was approximately 13.8 million tons in 2009. *This study based on 2007 data.
E N V I RO N M E NTAL PERFORMANCE
41
PARTICULATE MATTER
SULFUR OXIDES
NITROGEN OXIDES
CA R BO N MO N O X I D E
VO L AT I L E ORGANIC COMPOUNDS
RECYCLING MINI-MILL
0.3
0.7
0.1
4.0
0.4
BLAST FURNACE
39.8 5.0
4.45 11.6
2006
NUCOR
Regulatory agencies and policy makers who want to stimulate the generation of information on the life cycle performance of materials to support both reductions in the footprint of upstream activities to harvest the materials as well as more sustainable applications of materials in products.
PROCESS WATER RECYCLED MULTIPLE TIMES (NUCOR DOES NOT HAVE ONCE-THROUGH COOLING SYSTEMS)
100%
In order to respond appropriately to the sustainability drivers stated above, Nucor has commissioned this LCA study to identify the environmental impacts of the steel products produced by Nucor. Our assessment includes our major product groups, representing the majority of our steel mill offerings. The primary goal of this study is to identify the environmental impact of the significant environmental contributors throughout the life cycle of Nucor steel products. The significant environmental contributors to be reported
continued 1
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7.6
13.4 2.98
IRON SCRAP
BILLION
GALLONS OF WATER WITHDRAWN BY SOURCE BY NUCOR STEEL MILLS (DOES NOT INCLUDE RAIN WATER)
TO N S
are greenhouse gases, ozone depletion, smog generation, acidification and eutrophication along with renewable and non-renewable primary energy consumption. An additional goal is to establish an accurate baseline for Nucor-produced steel that may be used in future LCA studies. The results of the LCA study will help Nucor and other interested customers understand and communicate the environmental contributions of steel with high recycled content. To ensure objectivity and transparency, the study conforms to the requirements of the ISO 14040 standards for Life Cycle Assessment and has been critically reviewed by an independent panel. Included in the cradle-to-cradle assessment of the total life cycle are the environmental impacts associated with transportation and processing of the recycled steel. Scrap metal is gathered, processed and transported largely to Nucor mills by truck, rail and river barge by Nucors subsidiary, DJJ. Finished steel is transported to the customer and, at end of life, is recycled as scrap metal and returned to a Nucor mill. Typically, scrap metal going to a Nucor bar mill is transported an average of 80 miles by truck or 304 miles by river barge. The distance and method of transportation are important in determining environmental impact. Averaging the fuel usage across the three transportation modes, one gallon of diesel fuel will transport one ton of steel 303 miles. What did we find in our first LCA assessment? Our products have significant environmental advantages over products of other manufacturers. And our products offer significant benefits to customers using our products in LEED certified projects. Our first-year results are included on the previous page. We believe the results of the life cycle assessment strengthen our position as a primary recycler and manufacturer of sustainable steel products, said Steve Rowlan, director, environmental affairs.
E N V I RO N M E NTAL PERFORMANCE
43
Steel Producer as an
Environmental Activist?
Its Our Nature
MANY PEOPLE KNOW THAT AS THE LARGEST RECYCLER OF STEEL IN THE WESTERN HEMISPHERE, Nucor recycles millions of cars. But did you know that we successfully fought to make the process of recycling cars even more environmentally friendly? Nucor has facilitated the removal of mercury switches from scrapped automobiles. Nucor participated in an effort to encourage U.S. car manufacturers to stop installing mercury switches in cars and to require the removal of the switches by salvage yard operators prior to the shredding or compacting of a vehicle. As a result of our involvement in these efforts, automobile manufacturers stopped using mercury switches in 2002. Today, most states have programs requiring the removal of the switches by salvage yards before shredding or compaction. In 2008, we began training independent scrap yards to recover these materials. The results have justified our years of persistence. According to the End of Life Vehicle Solutions Web site, more than 3 million mercury switches have been properly recycled to date. We will continue our vigilance.
MERCURY SWITCH
MORE THAN 3 MILLION MERCURY SWITCHES IN THE UNITED STATES HAVE BEEN PROPERLY RECYCLED TO DATE.
44
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Environmental Responsibility
ucors long-standing commitment to the environment is defined by our policy. Well, make that policies. We didnt stop at creating a corporate, one size fits all environmental policy. Our facilities have adapted our core corporate environmental principles and created location- or division-specific policies to ensure environmentalism is embraced throughout our organization. Environmental compliance is the responsibility of each and every teammate. NUCOR CORPORATION ENVIRONMENTAL POLICY As the largest recycling company in the Western Hemisphere, Nucor recognizes our role in protecting the environment. We value the environment of the communities in which we operate and recognize its importance to our teammates, their families and our continued welfare. Protecting the environment is critical to our operations and the companys long-term success. To this end, we endorse these principles to demonstrate our commitment to the environment. OUR PRINCIPLES STANDARDS Nucor Corporation and its divisions will comply with the laws and regulations governing their operations. Environmental compliance is a priority for Nucor management equal with all other business functions. RESPONSIBILITY Environmental protection is the individual obligation of each Nucor employee and a primary responsibility of management. Nucor also requires contractors, vendors and suppliers to comply with applicable environmental laws. STEWARDSHIP Nucor recognizes its potential for environmental impact upon the communities in which it operates. We will continually strive to minimize these impacts by evaluating our operations and researching new technologies and opportunities. PERFORMANCE To continually improve the effectiveness of our Environmental Management System, Nucor will: Pursue pollution prevention and waste minimization opportunities Investigate and develop technologies and operations that improve environmental performance Regularly evaluate the Environmental Management System and make appropriate improvements OUTREACH Nucor will strive to foster open dialogue so that we may effectively communicate with our employees, our neighbors and other concerned parties.
LEARN MORE AT: WWW.NUCOR.COM/RESPONSIBILITY/ENVIRONMENT/EMS
THE NUCOR PRESIDENTS ENVIRONMENTAL AWARD IS GIVEN TO FACILITIES THAT EXCEED VERY STRICT REQUIREMENTS.
E N V I RO N M E NTAL PERFORMANCE
45
While we have already accomplished a lot to reduce our environmental footprint, we are always looking for ways to do more. Nucor continues to search for other ways to improve energy efficiency, Schorr said. We do this through research and investments in new technologies that can facilitate further reductions in greenhouse gas emissions from the steel-making and recycling process.
46
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
ASPECT: MATERIALS EN1 EN2 Materials used by weight or volume. Percentage of materials used that are recycled input materials. Completely Reported Completely Reported
42 60
ASPECT: ENERGY EN3 EN5 EN6 EN7 EN8 EN10 Direct energy consumption by primary energy source. Energy saved due to conservation and efficiency improvements. Initiatives to provide energy-efficient or renewable-energy-based products and services, and reductions in energy requirements as a result of these initiatives. Initiatives to reduce indirect energy consumption and reductions achieved. Total water withdrawal by source. Percentage and total volume of water recycled and reused. Completely Reported Partially Reported Partially Reported Partially Reported Partially Reported Completely Reported
41 39 39
45 42 41
ASPECT: BIODIVERSITY EN11 EN12 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. Habitats protected or restored. Partially Reported Partially Reported
47
47
EN13
Partially Reported
46-47
E N V I RO N M E NTAL PERFORMANCE
47
Weve planted thousands of trees, mostly loblolly pine and a variety of hardwoods over the years on the site where were located, says Kim Pritchard, environmental manager for Nucor Steel Texas. The trees also provide wildlife habitat for a local population of deer and help prevent soil erosion. Wildlife habitats are also very important to our NucorDecatur teammates because our facility adjoins the MallardFox Creek Wildlife Management Area in Alabama. Employees at the facility partnered with the Alabama Department of Conservation and Natural Resources (ADCNR) to build a birding kiosk site on part of the northwest loop of the North Alabama Birding Trail. We also graveled the access road to the kiosk and provided funding for
informational signage at the kiosk. Not only do we work in Decatur, but many of us live here and have family and friends in the area, said Brian Avery, environmental manager for Nucor Steel Decatur LLC. When we realized we could assist our next-door neighbors and help educate the public about the wildlife at Mallard-Fox Creek, we were happy to lend a hand. The Mallard-Fox Creek Wildlife Management area is a 1,483-acre site along the southern shore of Wheeler Lake. It offers many opportunities to view waterfowl, wading birds, and woodland and grassland songbirds.Visitors can see wood ducks on the water or mixed flocks of Carolina chickadees, tufted titmice, migrant warblers and downy woodpeckers in the wooded area.
GRI NUMBER
DESCRIPTION
REPORTED
PAGE
ASPECT: EMISSIONS, EFFLUENTS, AND WASTE EN16 EN17 EN18 EN20 EN22 Total direct and indirect greenhouse gas emissions by weight. Other relevant indirect greenhouse gas emissions by weight. Initiatives to reduce greenhouse gas emissions and reductions achieved. NOx, SOx, and other significant air emissions by type and weight. Total weight of waste by type and disposal method. Completely Reported Partially Reported Completely Reported Completely Reported Completely Reported
40 40 39 41 38
ASPECT: PRODUCTS AND SERVICES EN26 EN27 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. Percentage of products sold and their packaging materials that are reclaimed by category. Completely Reported Partially Reported
40-42
39
ASPECT: TRANSPORT EN29 Significant environmental impacts of transporting products and other goods and materials used for the organizations operations, and transporting members of the workforce. Partially Reported
42
ASPECT: OVERALL EN30 Total environmental protection expenditures and investments by type. Partially Reported
37
PRODUCT RESPONSIBILITY AND PERFORMANCE INDICATORS ASPECT: CONSUMER HEALTH AND SAFETY PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. Completely Reported
40-42
NUCOR AND ITS TEAMMATES ARE STRONG SUPPORTERS AND HARDWORKING MEMBERS IN THE COMMUNITIES THAT SUPPORT THEM.
! Hillary Edwards, Nucor Steel Hertford, stands with Tyreke Sutton outside of his life-skills and mentoring home for young male individuals from the community in Cofield, N.C.
C O M MUNITY RELATIONS
49
COMMUNITY RELATIONS
ITS OUR
To know a company, you have to know its people. In this crucial area, as in so many others, business decision makers consistently overlook the virtues of smallnessin this case, of small towns.
We value the productivity, the work ethic, and the sense of community that our employees and their families share where they live and work. We value the people and their communities, and they value our investment and commitment to them.
DANIEL R. DIMICCO
1982PRESENT
KEN IVERSON
19621998
50
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Community Relations
If there is an area where the various aspects of Nucor culture combine, it is our dedication to strong community relations. The communities in which Nucor operates are influenced by our safety, economic and environmental practices. These practices are an essential part of our employee relations at the community level because that is where Nucor teammates and their families live. The Nucor culture drives us to make certain that we take care of these communities. Our Nucor teammates voluntarily participate in academics, local government and sports. Nucor often financially supports these and other groups. In addition to awarding engineering scholarships and internships that anyone is free to pursue, Nucor supports the college education of our employees families. Nucor has funded thousands of acres of wildlife preserves, bought hundreds of 4-H animals and supported programs where our teammates areand are notparticipants. Equally as important is the impact that Nucors purchases have on the local economy. Contractors, vendors and suppliers, along with their employees and families, live in these communitiesand this further enhances the impact of Nucor and our teammates on the local communities.
$3.2 MILLION
COMPANY CONTRIBUTIONS
$586 THOUSAND
EMPLOYEE CONTRIBUTIONS
$369 THOUSAND
CHARITY EVENTS
$256 THOUSAND
DIRECT CASH CONTRIBUTIONS
(TO UNIVERSITIES OR COLLEGES)
$117 THOUSAND
ENDOWMENTS/ SCHOLARSHIPS
= $4.6 million
C O M MUNITY RELATIONS
51
The Foundation of
74,888
HOURS DONATED BY OUR TEAMMATES
FOR COMMUNITY OR SERVICE ORGANIZATIONS
In 2009, our role in supporting these communities included charitable donations totaling more than $4.6 million and an astonishing level of in-kind contributions, which tallied nearly 75,000 hours. Those volunteer hours are the equivalent of more than 35 full-time workers dedicated to 22 communities. Thats the thing about being a good neighbor: you cant fake it, says Hillary Edwards, rolling mill supervisor at Nucor Steel Hertford. Writing checks is always appreciated, believe me. But whats really remembered is getting out into the community and making a difference.
Edwards speaks from personal experience. He started a mentoring program for underprivileged children. Edwards not only volunteers his own time, but also personally leased a building to serve as a learning center for his organization, which is now equipped with two computer labs. His example inspired others in Nucor, including CEO Dan DiMicco and other senior managers who met with some of the children and agreed to help support his unique program.
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
economic turnaround
in rural america
UR HERTFORD, N.C., PRODUCTION FACILITY IS A GOOD EXAMPLE OF THE KIND OF ECONOMIC IMPACT A COMPANY CAN HAVE ON A RURAL AREA. The plant is credited with triggering an economic turnaround that has boosted area salaries above the state average, lowered unemployment rates and helped dozens of other area businesses. Since this mill opened, weve invested more than $500 million in the mill and, with the addition of our heat treat facility that is currently under construction, we will have $600 million invested by this time next year, says Terry Hairston, environmental manager at Nucor Steel Hertford. The facility employs more than 400 individuals22 percent of the countys manufacturing labor force. Even though the states unemployment rate recently reached 11.2 percent, the highest since 1976, the Nucor mill has helped Hertford County register one of the lowest unemployment rates in Northeastern North Carolina. The mill hasnt laid off a single worker since it opened, says Hairston. We offer a stable work environment for employees, and while the economy does impact our production and our pay, we know we have a place to work tomorrow and that we will be able to provide for our families.
continued 1
$465
COMPARED TO STATEWIDE AVERAGE $653
$970
C O M MUNITY RELATIONS
53
The mill has also raised average wages and improved the quality of life throughout the county. Our teammates have been able to purchase homes, pay off debt, send children to college and quit second jobs. In 1999, the average manufacturing wage in Hertford County was $465 per week, compared to the statewide average manufacturing wage of $653 per week, says Bill Early, executive director of the Hertford County Economic Development Commission. In 2009, 10 years after Nucor opened its mill, the average manufacturing wage was $970 per week, compared to the statewide average of $906 per week. And Nucor workers arent the only ones who are benefiting from rising incomes: Since we opened the mill,
more than 20 other companies, employing 420 individuals, have located on or near the site. These companies have invested more than $32 million in the community. The county has seen an increase in inquiries from Nucor customers seeking to be close to the Hertford mill, continues Early. The Nucor mill in Hertford County has brought economic advancement with decreased unemployment and increased wages, retail sales, county property taxes and economic stability. During the recent economic downturn, Hertford County has remained much more stable than other areas of the state. The Nucor mill has played a large role in this stability.
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Lessons Learned:
Teaching Recycling through Generosity and Donations
ucor doesnt just recycle. We teach others the importance of recycling. Nucor does so by using steel as the medium. Nucor has donated steel for art competitions and welding practice, as well as for school bus shelters. SCRAP INTO ART Nucor Steel Nebraska launched the first annual Ken Iverson Project in late 2009, in which we donated bundles of scrap steel to Norfolk area high schools, colleges and artists for an artistic sculpture and structure competition and auction. The competitions only rule? Only steel could be used. No other outside materials or hinges were allowed. The artists showcased their work at the Northeast Community College Home Show, where 17 sculptures were voted on by community members. Its beneficial for kids to be rewarded for their creativity and hard work, said Jeff Furst, warehouseman and member of Nucor Steel Nebraskas community outreach team. If kids continually think creatively, thats what we need. Thats our future. Winning projects included a windmill (titled Royal Flush), a flag (titled Freedom Flag) and a globe with wings (titled Home of the Brave). WELDING PRACTICE In Lathrop, Calif., CBC Steel Buildings LLC, a division of Nucor, supports two local high schools welding programs by donating scrap steel. The scrap is used to practice welding techniques, which significantly lessens the schools need for purchasing materials. After the steel is used in welding class, the school brings the steel back to CBC for recycling; it is then delivered to our Plymouth, Utah, plant for reprocessing. The lesson learned? Students are not only able to increase their welding skills, but they also become an integral part of the reuse and recycling effort thats at the heart of Nucors business. STEEL AS SHELTER Shortly after the opening of the Newport, Ky., River Metals Recycling facility, a division of DJJ, one of our teammates, Arvil Pennington, was looking across the street and saw a number of the neighborhood schoolchildren arriving at the bus stop in the pouring rain. Immediately, he got to work to determine how to build a bus shelter to protect the kids from inclement weather. With immediate support from management, Pennington worked to contact the property owner, school principal and school superintendent about the plan. After receiving their enthusiastic support, River Metals Recycling constructed the shelter in its Greensburg, Ind., facility. Pennington and his teammates installed the bus shelter in Newport, and then painted it in the schools colors. As icing on the cake, Penningtons wife painted the schools mascot, a pirate, on two plaques to hang on the shelter. The kids and school love the new shelterand wrote a frontpage story about River Metals Recyclings generous deed in their school paper.
C O M MUNITY RELATIONS
55
Steel Made in the USA Meets Higher Quality and Environmental Standards
ne of the most sustainable things about Nucor is that most of our high-recycled-content products are Made in the USA. That little tag line or small stamp says a lot about the product and the people who made it. That Made in the USA label means weve manufactured our products to certain labor standards that have been drawn up in the interests of business, workers and their families, says Dan DiMicco, Nucors CEO. This labor law has meaning because it is enforced in an open system of government with checks and balances. Some countries have similar laws on the books, but it is entirely up to the government as to whether to enforce the laws, and the people have no power or recourse to change things. Nucor is continually working with legislators to make sure that the currency manipulation and illegal dumping of steel from China does not go unnoticed. More than 30 American steel companies, representing 35 percent of our steel-making capacity, have been driven to bankruptcy by the surge of imported steel, including steel dumped onto the market below cost, adds DiMicco. More than 50,000 American steel jobs have been lost as a result. Nucors American-made products are more than just locally manufactured products. These products are a symbol of hard work and dedication, and they stand for the opportunities given to our teammates and their families and are a direct reflection of Nucors impact on the communities where our facilities are located. Made in the USA stands for high-quality, recycled steel products safely produced in environmentally conscious facilities. Now thats sustainable.
NUCORS EXCELLENT RESPONSIVENESS IS CRITICAL TO OUR BUSINESS, SAYS WAYNE BISHOP, GENERAL MANAGER OF CARRY-ON TRAILERS.
! KEEPING CLOSE TO CUSTOMERS. Paul Sandlin, sales, Nucor Steel Texas, talks with Nucor customer Wayne Bishop.
C U STOMER RELATIONS
57
CUSTOMER RELATIONS
ITS OUR
One of the great advantages of consistently doing just what you say youll do is the credibility you gain with customers.
Our Goal is to Take Care of Our Customers. We are accomplishing this by being the safest, highest quality, lowest cost, most productive, and most profitable steel and steel products company in the world. We are accomplishing this by being cultural and environmental stewards in the communities where we live and work. We are succeeding by working together. DANIEL R. DIMICCO
1982PRESENT
KEN IVERSON
19621998
58
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
C U STOMER RELATIONS
59
DECENTRALIZED REGIONAL APPROACH ENCOURAGES SUSTAINABILITY Our decentralized approach offers our customers upstream
sustainable advantages because our proximity helps to minimize costs and our environmental footprint. Because we use scrap as our primary feedstock, the product we deliver to our customers is sustainable by its very nature. Its more energy efficient and sustainable to recycle scrap into new steel than to produce it from iron ore, says Dave Smith, vice president and general manager, Nucor Steel Utah. This offers an advantage to companies planning to submit their buildings for LEED certification. Our sustainable products, energy-efficient manufacturing process and regional presence help them achieve credits toward certification. For example, LEED takes into account the distance raw materials travel to the job site.To earn maximum LEED credits, this distance has to be within 500 miles. Our network is the largest in the country, and we can deliver steel from the closest facility to meet LEED requirements.
continued 1
MIKE TAYLOR, LEE FULTON, GRANT ASHLEY AND TOMMY BANKS Nucor Steel Hertford County
60
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
QUALITY PRODUCTS AND UNMATCHED CUSTOMER SERVICE Nucor provides our customers the highest quality steel products available. One of the ways we ensure this is by tying employee compensation directly to product quality. We empower every employee to stop the line if he or she sees something that may impact the final quality of a product. Another way we ensure quality is by manufacturing custom products. Many of the products that we make come from a precise heat, produced to a specific grade quality and made to a customers exact order. For many of the products we produce, we know who the customer is and in what application it will be used. This knowledge ensures that our customers will get the right material for the job. Nucors quality control process and employee empowerment philosophy extends to customer service as well. Our employees are empowered to not only meet customers expectations, but to also exceed them, says Smith. Our primary goal is to take care of our customers the best way possible.
Regulations in Europe
As we expand the places our steel products are distributed, we need to ensure that we are proactively in compliance with other countries regulations. For example, product registration for a company, subsidiary or affiliate was initiated with the European Union (EU) chemicals regulation Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) at the end of 2009. For Commission Decision 2005/618/EC for Directive 2002/95/EC of the European Parliament, and the Commission Decision of June 27, 2002, amending Annex II of Directive 2000/53/EC of the European Parliament, or restriction of the use of hazardous substances, Nucor provides an average concentration range of the prohibited substances in the steel. Additionally, when certifications are requested, Nucor often samples products to ensure that the steel is below the threshold for the specific product. We evaluate and are committed to meeting the legal obligations under international environmental regulations in the course of our global business endeavors.
P E R C E N TAG E B Y TOTA L W E I G H T
99.9
NUCOR BAR P RO D U C T S
82.9
N U COR B EAM P RO DUCTS
92.2
NUCOR PLATE PRODUCTS
72.9
NUCOR SHEET PRODUCTS
99.7
VULCRAFT STRUCTURAL PRODUCTS
72.7
VULCRAFT DECKING
67.9
NUCOR BUILDING GROUP
72.9
NUCON LIGHT GAUGE FRAMING
99.9
NUCOR FASTENER PRODUCTS
94.7
NUCOR WIRE PRODUCTS
91.3
NUCOR COLD FINISH
C U STOMER RELATIONS
61
F RO M C A R S TO R E BA R TO ROA D S
TORCH CASTER
MILL
COILER
62
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
or a wind farm to work, it has to be built where ur Memphis mini-mill reclaimed and revamped a former industrial brownfield site, making it a there are the right atmospheric conditions. For a fields wind power to cleaner, new-production millone that provides be used, it has to be able to get a secondary benefit to the environment by to the grid. New wind farms reusing scrap metal for new products. But thats not all. are being built in North Texas, where the Nucor Steel Memphis, Inc. produces 20-inch-diameterconditions are very conducive to wind-generated by-18-foot-long billets, which are used to make the giant power, but the location required new power lines. The solution? Using recycled green steel to turbines that harness wind energy. build the green transmission towers. This is an expanded capability mill, for the special We partnered with Oncor, an electric distribution bar quality market, explains Brian Hill, environmental and transmission company, and Falcon Steel, a manager for Nucor Steel Memphis, Inc. We cast rounds, transmission tower manufacturer, to win the contract large round billets and more. Specifically, our Nucor Steel Memphis facility to build 3,800 transmission towers for the Competitive makes housings for bearings, forging seamless tube Renewable Energy Zones (CREZ) project over five years. pipe for natural gas exploration, as well as other The contract was awarded in early 2009. All three companies operate in Texas, keeping the material for moving parts in the automotive project and jobs in the state. and heavy machinery industries. Each of the lattice towers is 120 feet to 130 feet For the wind turbine work, massive tall; the completed set of towers will use 80,000 tons billets the size of telephone poles of our steel. We delivered the first 14,000 tons of steel to are shipped to a manufacturer Falcon in 2009. that develops parts for the giant We furthered the green environment by using turbines. The billets are ringrecycled steel to build the towers, eliminating the need rolled, heated and then to mine new raw materials. machined into a housing. For every one kilowatt-hour that we use The steel shipped for the turbine work is comprised of up to melt the steel for recycling, we harvest three to 80 percent recycled scrap metal. kilowatt-hours invested in the original steel, That recycled scrap is then used said Kim Prichard, environmental manager at STEEL FOR WIND TURBINES in a wind turbine that creates Nucor Steel Texas. renewable energy.
80% RECYCLED
SCRAP
customer relations
63
BMW:
WE OPERATE OUR BUSINESS WITH THE HIGHEST COMMITMENT TO ETHICS AND UNWAVERING INTEGRITY.
GOVERNANCE
65
GOVERNANCE
ITS OUR
If, during the bad times, we had failed to look past the short-term consideration of this quarters earnings, would we have gone on to compile such a record of sustained growth and profitability? Im certain we would not. If management had thought of our employees as nothing but headcounta term that seems far more appropriate to cattle than people would they be as motivated and productive as they are today? The answer is clearly no.
KEN IVERSON
19621998
Again, our goal is to Take Care of Our Customers. Taking care of our customers means all of our customers: our employees, our shareholders and the people who purchase our products.
DANIEL R. DIMICCO
1982PRESENT
66
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Nucor Governance
Nucor culture is one that respects the individual. The open door and phone practice of the corporate office and local facilities foster a culture where all participate and contribute to the progress of the company. Our employees, neighbors and shareholders should always be treated fairly, honestly and respectfully. At the same time, wethats everyone in our companyshould conduct ourselves in a manner of the highest ethical standards. As a result, all of our teammates are accessible and accountable.
Governance Policies
Nucors policies have helped us become one of the largest and most profitable steel producers in the world by encouraging honesty, accountability and the highest ethical standards. Our policies are grounded in such principles as sustainability, respect and honesty. Nucors Standards of Business Conduct and Ethics define how we handle conflicts of interest, fair dealing, public reporting and confidentiality. Just as we expect our own employees to conduct business in an ethical, professional way, we also hold our suppliers to the same standard. In our Supplier Code of Conduct, we promote social responsibility by notifying each contractor and supplier of our strict code of conduct that includes standards for environmental impact. Additionally, we owe it to our employees, investors and customers to provide the most accurate financial information possible. Accordingly, our senior financial officers are held to our Code of Ethics for Senior Financial Professionals, and are committed to acting honestly and with integrity when preparing Nucors financial statements.
GOVERNANCE
67
FOR THE YEAR NET SALES GROSS MARGIN NET EARNINGS (LOSS) ATTRIBUTABLE TO NUCOR STOCKHOLDERS NET EARNINGS (LOSS) PER SHARE, DILUTED DIVIDENDS DECLARED PER SHARE CASH PROVIDED BY OPERATING ACTIVITIES NET INCOME TAXES PAID AT YEAR-END WORKING CAPITAL PROPERTY, PLANT AND EQUIPMENT, NET LONG-TERM DEBT STOCKHOLDERS EQUITY
This graphic comparison assumes the investment of $100 in Nucor Corporation common stock, $100 in the S&P 500 Index and $100 in the S&P Steel Group Index, all at year-end 2004. The resulting cumulative total return assumes that cash dividends were reinvested. Nucor common stock comprised 42% of the S&P Steel Group Index at year-end 2009 (51% at year-end 2004).
2004
2005
2006
2007 YEAR
S&P STEEL GROUP INDEX
2008
2009
NUCOR CORPORATION
68
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
GOVERNANCE
69
STRATEGY AND ANALYSIS 1.1 Statement from the most senior decision-maker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy. Completely Reported
04-05
ORGANIZATION PROFILE 2.1 2.2 2.4 2.5 Name of the organization. Primary brands, products, and/or services. Location of organizations headquarters. Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. Nature of ownership and legal form. Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). Scale of the reporting organization including:
Number of employees Net sales (for private sector organizations) or net revenues (for public sector organizations) Total capitalization broken down in terms of debt and equity (for private sector organizations) Quantity of products or services provided
Cover 09 71 09
68 08
05, 68
continued
70
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
GRI NUMBER
DESCRIPTION
REPORTED
PAGE
REPORT PARAMETERS 3.1 3.4 3.6 3.7 3.9 Reporting period. (e.g., fiscal/calendar year) for information provided) Contact point for questions regarding the report or contents. Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). State any specific limitation on the scope or boundary of the report. Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the indicators and other information in the report. Table identifying the location of the Standard Disclosures in the report. Completely Reported Completely Reported Completely Reported Completely Reported Completely Reported
05 71 06
06 42
3.12
Completely Reported
GOVERNANCE 4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. Indicate whether the Chair of the highest governance body is also an executive officer. For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members. Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organizations performance. Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance. Completely Reported
66
4.2 4.3
66
66
4.4 4.5
66
66
4.8
Partially Reported
44, 66
GOVERNANCE
71
DESCRIPTION Processes for evaluating the highest governance bodys own performance, particularly with respect to economic, environmental, and social performance. Externally developed economic, environmental, and social charters, principles, or other initiatives which the organization subscribes to or endorses. Memberships in associations (such as industry associations) and/or national/ international advocacy organization in which the organization: has positions in governance bodies, participates in projects or committees, provides substantive funding beyond rout. List of stakeholder groups engaged by the organization.
PAGE
66
68
68
4.14
Completely Reported
HUMAN RIGHTS PERFORMANCE INDICATORS ASPECT: INVESTMENT AND PROCUREMENT PRACTICES HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. Partially Reported
66
ASPECT: PUBLIC POLICY S05 Public policy positions and participation in public policy development and lobbying. Completely Reported
55
FOR MORE INFORMATION ABOUT NUCOR SUSTAINABILITY EFFORTS, PLEASE CONTACT US AT: SUSTAINABILITY@NUCOR.COM
C O M M I T M E NT TO SUSTAINABILITY
73
The people of Nucor stand in sharp, even defiant, contrast to the status quo. Were big on informality, caring, freedom, respect, equality and the simple truth. We have little tolerance for the politics, the pettiness, the fixation on rank and status, and the insensitivity to employees legitimate needs that people in most big companies endure as a matter of course.
KEN IVERSON
19621998
ITS OUR
Nature
Amen, Ken.
DANIEL R. DIMICCO
1982PRESENT
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