ArcelorMittal, a Luxembourg-based multinational and the second-largest steel producer in the world, has recently initiated a significant workplace safety overhaul. The company, with over 150,000 employees worldwide and a market cap exceeding $20 billion, produces approximately 80 million metric tons of crude steel annually. Despite its stature and scale, steel production remains one of the most hazardous industries, with risks such as respiratory issues, muscle strains, and heat burns being prevalent.
In 2022 alone, 85 fatalities were reported across the global steel industry, underscoring the pressing need for improved safety protocols. ArcelorMittal, which has experienced several fatal accidents in the past, including a tragic incident in Kazakhstan that resulted in the loss of 45 miners, is determined to bolster its safety standards. The company has enlisted dss+, a consultancy known for its expertise in workplace safety, to conduct a thorough audit and provide actionable recommendations.
In 2023, dss+ conducted an extensive workplace safety audit across 155 ArcelorMittal sites globally. The audit process spanned nine months and involved a variety of methods to evaluate safety practices. This included document reviews, data analysis, interviews with over 280 employees and leaders, and management meetings. According to Davide Vassallo, CEO of dss+, the audit revealed a paradox: while ArcelorMittal had established adequate safety standards and policies, the implementation of these standards varied significantly across the company’s vast operations.
The audit pinpointed inconsistencies in safety behavior and noted that contractor safety management required further enhancement. The challenge, as highlighted by Vassallo, lies in standardizing safety practices across all of ArcelorMittal’s operations, which span multiple countries with diverse regulatory environments.
The audit revealed that while ArcelorMittal's safety standards were generally aligned with industry best practices, the behaviors of employees, supervisors, and contractors often did not meet these expectations. The report highlighted that safety culture needed to be strengthened across the organization, ensuring a consistent approach to safety at every site. As a result, dss+ put forth several recommendations to address these gaps.
Some of the key areas identified for improvement included:
1. Enhanced Risk Identification: Improving how risks are identified at each site to prevent incidents before they occur.
2. Stronger Assurance Models: Developing models that regularly assess the effectiveness of safety practices across all operations.
3. Embedding a Group-Wide Safety Culture: Creating a unified safety culture that transcends local practices and fosters safety-first behaviors at every level of the organization.
4. Improved Contractor Safety Management: Ensuring that contractors working on ArcelorMittal sites are held to the same safety standards as employees.
5. Consistency Across Global Operations: Addressing the challenge of applying uniform safety protocols across the diverse geographies where ArcelorMittal operates.
These recommendations are part of a broader effort to achieve zero fatalities and serious injuries in ArcelorMittal’s operations, with a focus on creating sustainable and safe work environments.
Steps Toward Implementation
Nearly one year after the audit, ArcelorMittal has made substantial progress in implementing the recommendations put forth by dss+. The company has already nearly completed the interim Fatality Prevention Standards at several sites, with the goal of rolling out these standards across the entire organization. Some specific initiatives underway include:
• Safety Roadmaps: Some business units have begun to develop their own safety roadmaps, which will be integrated into their five-year planning cycles.
• Process Safety Management: ArcelorMittal is focusing on implementing PSM frameworks at priority sites, starting with business unit-specific work plans.
• New Project Standards: The company has committed to embedding safety management elements into all new projects, ensuring that future operations prioritize fatality prevention and employee safety from the outset.
The steps taken by ArcelorMittal signify a commitment to continuous improvement in safety practices and a clear vision to ensure the well-being of its employees globally. The company has pledged to update its stakeholders on the progress of these initiatives, maintaining transparency and accountability as it moves toward a safer future.