Climate

A core part of ArcelorMittal's climate approach is addressing how steel is produced. We are progressively transforming production processes, aligning investment decisions with technology readiness and infrastructure availability. Where solutions are viable today, they are implemented first. More complex or less mature pathways are developed through pilots, partnerships and staged deployment.

Innovation underpins this transformation. Advances in process design, digital control, material efficiency and alternative production routes all play a role in reducing emissions while maintaining product quality and operational reliability.

This is not a single step change, but a continuous process. Large industrial assets operate over long lifecycles, and their transformation requires careful planning, engineering and collaboration across the value chain. Our approach reflects the need for credible progress grounded in real world conditions.

Expanding Electric Arc Furnace Steelmaking

A key pillar of ArcelorMittal's strategy is increasing the use of electric arc furnaces (EAFs). EAFs enable the production high quality steel with significantly lower direct emissions, particularly when powered by clean electricity and supplied with recycled or low carbon metallic inputs.

ArcelorMittal is continually evaluating opportunities to increase its EAF footprint around the world and modernizing existing facilities to make them more efficient, more digital and better suited to producing high grade steels. These improvements also help reduce energy use and improve the carbon footprint of our operations.

Strengthening Recycling and Raw Materials Supply

High quality scrap and metallics are essential for low carbon steelmaking. To ensure a reliable supply for EAF operations and help us build a resilient, circular and lower emission materials supply chain:

• Expanding recycling capabilities and investing in technologies that improve the quality and consistency of scrap, including advanced sorting and artificial intelligence.

• Enhancing our ability to produce and secure the right types of iron ore pellets and other metallic inputs needed for lower carbon steelmaking processes.

• Exploring sustainable alternatives to coal, including bio carbon sourced from responsibly managed biomass, to reduce emissions in processes where coal is still required.

Advancing Breakthrough Technologies

While we take near-term steps, we are also preparing for the next generation of technologies that will enable deep decarbonization across iron and steelmaking. Our work includes:

• Hydrogen-based iron and steelmaking, including replacing fossil fuels in certain thermal processes.

• Electrolysis technologies that have the potential to produce iron using only electricity.

• Carbon capture, utilization and storage, with pilot projects designed to help us understand performance, integration and scalability.

Through pilot projects, partnerships and targeted investments, ArcelorMittal is building the capabilities needed to deploy these solutions when the energy system and supporting infrastructure are ready.

Clean and renewable energy is a critical enabler of lower‑carbon steelmaking.

As steel production relies more on electricity, the carbon footprint of that electricity becomes increasingly important. Access to low carbon power directly influences the emissions profile of steel and the feasibility of new production technologies. We view the energy transition not only as a risk to manage, but as a structural change in the industrial landscape. Securing reliable clean energy supports emissions reduction, reduces exposure to energy volatility and enables longterm industrial transformation.

Changes in energy systems are therefore essential to reducing emissions from heavy industry. The transition of steelmaking and the transition of energy systems must progress together.

Expanding Access to Low‑Carbon Energy

To support our transition to lower‑carbon steelmaking, we are building a diverse portfolio of renewable energy assets in India, Brazil and Argentina - regions with strong natural resources and supportive policy environments. These projects supply our operations with clean, reliable electricity and help reduce our exposure to volatile energy markets.

We are also continuing to grow this portfolio with additional renewable energy developments that will further strengthen our long‑term access to affordable, low‑carbon power.

Securing Long‑Term Low‑Carbon Electricity

Alongside our investments in renewables, we have entered a long‑term agreement with EDF in France that gives us access to a dedicated share of low‑carbon nuclear power. This provides us with a stable, competitively priced supply of electricity over many years.

Steel is not only a sector that must decarbonise. It is also a material that enables decarbonisation across the wider economy. Renewable energy infrastructure, electrified transport, power grids, efficient buildings and resilient infrastructure all rely on high performance steel. These systems require materials that combine strength, durability and reliability over long operating lifetimes.

Electrical steels sit at the centre of the role we are playing in enabling the transition. They enable technologies such as electric transport, renewable energy, modern power grids and data infrastructure. As demand for these applications increases, the need for high‑performance electrical steels is rising. To meet this demand, we are significantly expanding our production capacity with a new electrical steel line in Mardyck, to complement our existing European operations. We are also developing a new electrical steels facility in Alabama to supply automotive, renewable energy and industrial motor markets, increasing our ability to meet growing global demand.

In the built environment, steel also supports design approaches that reduce material use, improve energy performance and integrate renewable energy systems. Our approach includes holistic services like Steligence^®, which promotes design that uses materials more efficiently, reduces environmental impact and unlocks value across the life cycle of buildings and infrastructure. By combining materials expertise with design thinking, steel can help reduce emissions across the full lifecycle of buildings and infrastructure.

Our insulated steel solutions improve building energy performance by combining thermal efficiency, structural strength and easy installation. Innovations such as integrated roofing systems—with steel panels, insulation and solar cells in one lightweight module—offer lower carbon footprints and higher energy performance. These advancements show how our products are increasingly aligned with the growing needs of electrification and energy‑efficient construction.