Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 76

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 76
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 Commission, The International Energy Agency, which have all published proposals on this topic, and ResponsibleSteel™, which has launched a certifiable standard. The Company also endorsed the World Trade Organization’s Steel Standards Principles that were launched at COP28.

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| Management report |

Climate governance and risk management Structures and decision-making ArcelorMittal’s climate-related activity and progress continues to be overseen by a robust governance structure that includes an executive-level Climate Change Panel and Board-level Sustainability Committee chaired by an independent non- executive director. T he Board also decided to link executive remuneration to the achievement of the Company's climate objectives. Since 2021, decarbonization targets are part of the performance criteria for vesting of the performance share units in the long-term incentive plan. In terms of investment decision-making, each major capital expenditure project proposal is required to demonstrate its carbon impact as part of the project review to the IAC. The IAC makes all necessary considerations to maximize the business’ chances of achieving its targets while ensuring each project is economically justifiable and earns its cost of capital. It is a crucial part of the Company’s strategy to manage risk and deliver long-term growth. Climate-related risks and opportunities ArcelorMittal conducted an assessment to identify risks and opportunities arising from the transition to a low-carbon economy. The approach included examining key regions of operation and offering a forward-looking review. It considered scenarios aligned with external reference scenarios as shown in the resilience analysis section. The assessment of transition-related climate risks and opportunities was conducted at a regional/country level and categorized into various groups: policy and legal, technology, reputation, resilience, products, and market. The strategic relevance for each risk and opportunity identified was determined through a qualitative assessment, considering the potential impact to relevant financial indicators, like capital expenditures, operational expenditures, revenue, and access to capital. Where relevant, the impact on profitability or investment value was also considered. The scenarios used to inform the identification and assessment of physical and transition risks were the following:

|                                                    | 1.5C scenario                                                                                                            | <2C scenario                                                                                                                                                  | Business as usual                                                                                                                                                                                 | High Emissions                                                                                               |
| Temperature by 2100                                | 1.5°C                                                                                                                    | Below 2°C                                                                                                                                                     | >2°C                                                                                                                                                                                              | >4°C                                                                                                         |
| External reference scenarios                       | IEA NZE                                                                                                                  | IPCC SSP1-2.6, IEA APS/SDS                                                                                                                                    | SSP2-4.5 and IEA STE