|1 KEN IVERSON FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER NUCOR TENURE 1962-1998 “Managing with a long-term perspective is just common sense to us.” “Sustainability – through 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 AND CHIEF EXECUTIVE OFFICER NUCOR TENURE 1982-PRESENT 2 | Nucor Sustainability Report 2011 THE NUCOR WAY INTEGRITY PERSONAL RESPONSIBILITY TEAMWORK OPEN COMMUNICATIONS WORK ETHIC PRIDE INNOVATIVE/INTELLIGENT RISKS TREAT PEOPLE THE RIGHT WAY OPTIMISM CAN-DO ATTITUDE This report is dedicated to the more than 20,800 teammates of Nucor Corporation and our subsidiaries who are using The Nucor Way to make Nucor the most sustainable steel company in the world. |3 4 LETTER FROM DAN DIMICCO 8 HEALTH & SAFETY PERFORMANCE 18 EMPLOYEE RELATIONS 28 ENVIRONMENTAL PERFORMANCE 48 DAVID J. JOSEPH COMPANY & HARRIS STEEL GROUP 58 COMMUNITY RELATIONS 68 CUSTOMER RELATIONS 78 GOVERNANCE ABOUT THIS REPORT Our second Sustainability Report picks up where our 2009 report left off – demonstrating how Nucor’s culture makes us a sustainable company. The stories used throughout are just some examples of the hundreds of submissions we received from our valued teammates. This report covers our Nucor mills and product facilities in the United States, Canada and Trinidad, including the David J. Joseph Company and Harris Steel Group operations. This report was developed in line with the Global Reporting Initiative (GRI) G3.1 Sustainability Reporting guidelines, which provide a standard framework for organizations to report on social, environmental, governance and economic performance. At the end of some of the sections, we have included the applicable GRI indicators. Where metrics recommended in GRI are relevant to Nucor Corporation and data was available, we have included this information, but we have not endeavored to report “in accordance with” GRI. 4 | Nucor Sustainability Report 2011 LE T TER FROM THE CHAIRMAN & CEO IT’S OUR As every Nucor teammate knows, we have a way of doing business. We call it The Nucor Way, and it is a set of 10 principles by which we work and live: integrity; personal responsibility; teamwork; open communications; work ethic; pride; innovative and intelligent risk taking; treating people the right way; optimism; and a can-do attitude. You will see a lot of The Nucor Way throughout our second Sustainability Report. It fits because, in the end, following The Nucor Way is what makes us and keeps us a sustainable company. For Nucor, sustainability is being cultural and environmental stewards in the communities where we live and work, which is a critical part of the Nucor Mission Statement. This philosophy ensures we are taking care of future generations as we grow our business. We know that taking care of our customers – our teammates, our shareholders and the people who purchase and use our products – extends into all facets of our business: employee relations; health and safety; customer and community relations; and governance. And within each of these areas, Nucor is a leader in both short-term and long-term sustainability. But there is another important element of being a sustainable company that can’t be overlooked: it requires taking charge of our future. If we control our future by operating under the guidance of The Nucor Way, sustainability comes naturally. We can do this through constant practice and repetition, much like an athlete practices a routine. Watch a basketball player prepare to shoot a free throw, or a batter for a pitch. Behind every action are countless hours of practice. By focusing our energy on practicing The Nucor Way, we will continue to excel, regardless of economic conditions. |5 This Report Highlights Many Examples of Nucor Taking Charge of Our Future: Nucor is emerging from this economy stronger and safer than ever. During slow times many of our divisions have invested in mill improvements as well as making substantial enhancements to their safety programs. From mill-to-mill audits to voluntary OSHA certifications, our teammates are truly embracing our safety goal of Beyond Zero. In the aftermath of the 2011 tornados, our teammates proved they could weather any storm and come out stronger than ever. From supporting their communities in inspiring ways to ensuring every time-sensitive order was delivered on-time despite extended mill outages, we are proud of our team for standing up to the worst that Mother Nature could throw at us. Over the last decade, America lost millions of manufacturing jobs. But something else has been lost too: young people interested in careers in manufacturing. Nucor is determined to change that by working aggressively to build the recruiting infrastructure that attracts talented individuals to work in manufacturing. Nucor is also taking steps to stimulate students’ interest in engineering, math and science, and careers in manufacturing and the steel industry. Nucor excels as an environmental leader. In 2011, Nucor invested over $51 million on environmental projects, more than double the amount spent in 2009. We found ways to more efficiently recycle water, reduce energy use in our operations, detect radiation in scrap and utilize slag product from our manufacturing process. Every teammate takes ownership of sustainable practices in our communities. Nucor continues to focus on providing value to our customers by offering the best combination of price, quality, service and technical expertise. Nucor customers concerned with minimizing their environmental impact have competitive options, as our product lines have both expanded and become more sustainable. When we help customers produce more sustainable products – like greener automobiles and cleaner energy – their products demonstrate why Nucor is the most sustainable option in the industry. For this report, we have also highlighted some of the recent successes of our David J. Joseph and Harris operations, who have a lot to say in the area of sustainability. We must refuse to be knocked off our base by trying times. Instead, we dig in, trust our principles, and know that The Nucor Way will lead us in the right direction. Let’s do it together. Daniel R. DiMicco 6 | Nucor Sustainability Report 2011 |7 OUR MISSION NUCOR IS MADE UP OF MORE THAN 20,800 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. 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 Hemisphere’s largest recycler. 8 | Nucor Sustainability Report 2011 Nucor’s culture of safety was born after the acquisition of Vulcraft Corporation in 1962 by Nuclear Corporation, which went on to become Nucor. One of our first changes was to institute an official safety program. |9 HEALTH & SAFE T Y PERFORMANCE IT’S OUR “Profits are not the first thing – you can’t have a profitable company if you’re not running a safe company.” DANIEL R. DIMICCO 1982–PRESENT 10 | Nucor Sustainability Report 2011 BEYOND ZERO While some say we’re obsessed, we think we’re t Nucor, safety has been our just being smart. In our experience, strong safety number one priority since before performance leads to a strong team, which leads to we were Nucor. So it should come strong business performance. That is why in 2011 we as no surprise that Safety First is decided we were no longer satisfied with addressed at zero injuries and illnesses. Beyond Zero NUCOR’S INJURY RATE IS the start of virtually every became our new standard of excellence. Beyond Zero means we don’t just shift we work, every meeting SIGNIFICANTLY target zero injuries or illnesses, but zero we conduct and every report LOWER near-misses, zero property damages, we publish. Or that every THAN THE NATIONAL AVERAGE. zero potential for incidents. Or as Leon division has dedicated safety Topalian, General Manager of Nucor teams continuously working to evaluate and Steel Kankakee, Inc. explains, “We’re going so far in improve our standards and performance. Or that identifying our incidents before they’ve occurred that the injury couldn’t possibly happen. Zero is a step in every one of our facilities gets audited regularly the journey.” for safety performance. 2011 TOTAL OCCUPATIONAL INJURY & ILLNESS RATES | PER 100 WORKERS/200,000 HOURS PER YEAR NATIONAL INDUSTRY AVERAGE Nucor 2011 Health & Safety Performance | 11 Taking the next step isn’t always easy, but it is well worth it. Kankakee teammate Randy Swiszcz experienced a near-miss in 2011 while performing a task he’d done for years. “My mindset until this was ‘We are safer than we’ve ever been.’ But if we continue to benchmark the past, a lot more near-misses might happen.” IS A STEP IN THE This change in mindset has driven significant safety outcomes at Kankakee, as teammates are now recognizing and removing potential risks before an incident has a chance to occur. To facilitate this, Kankakee has instituted a peer-to-peer observation program called SCRAP (Safety Commitment Requires All Participation), a rigorous task-related safety documentation program referred to as HAC (Hazard Assessment Checklist) and robust incident reporting measures. Consider that in 2010, before the shift to Beyond Zero, a total of 18 incidents were reported at Kankakee. By 2011, that number was up to 110, with no indications of slowing down in 2012. Is the increase because the mill is less safe? Not a chance. It is because Kankakee’s teammates now view potential hazards as incidents, and they are learning to identify, report, and remove these hazards before they exist. In other words, they are JOURNEY. learning to see Beyond Zero. ZERO A Culture of Safety Going Beyond Zero takes more than setting goals. It takes a culture immersed in safety 24/7/365. To facilitate continuous improvement of our safety culture, Nucor utilizes a number of reporting and monitoring systems company-wide. These include the Safety Incident Reporting Network (SIRN), Microsoft® SharePoint® and ongoing audit programs. To ensure continued progress, each Nucor facility has a continued 2011 TOTAL DAYS AWAY, RESTRICTED & TRANSFER CASE RATES | PER 100 WORKERS/200,000 HOURS PER YEAR NATIONAL INDUSTRY AVERAGE Nucor 2011 12 | Nucor Sustainability Report 2011 dedicated safety coordinator or safety director. These representatives meet twice a year to share information and best practices, discuss new trends and receive training. SIRN is a program utilized by all Nucor divisions to share information on incidents, best practices and corrective actions. When an incident occurs, a report is entered into the SIRN system. This allows all of Nucor’s safety coordinators to know what happened and to share insights as to how it can be prevented in the future. Additionally, we have developed a robust peer-to-peer audit program under which every production facility is regularly audited for safety and environmental performance by peers from other divisions. The days-long process includes compliance, program and procedural reviews, and provides a two-way opportunity to share best practices and identify areas for improvement. In addition, the audit measures teammate internalization of our safety practices and engages their feedback on the safety process. Nucor Steel Auburn, Inc. teammates sign their names, demonstrating their commitment to safety and The Nucor Way. Health & Safety Performance | 13 ANNUAL HEALTH FAIR PROMOTING THE LONG-TERM VALUE OF PREVENTION An ounce of prevention is worth a ton of cure, as far as we’re concerned. That’s why for decades we’ve promoted an Annual Health Fair at our divisions across North America. The fair promotes the health and wellness of our teammates and their families. 22 NUCOR DIVISIONS ORGANIZED THEIR OWN HEALTH FAIRS IN 2011. “We continually address safety for our teammates. Safety encompasses so much more than what you do in the plant or at home. It also includes your health and wellness,” explains Joe Worman, Safety and Health Coordinator at Vulcraft – Indiana. Vulcraft – Indiana’s annual fair includes a complete blood chemistry and lipid profile, as well as thyroid, prostate-specific antigen (PSA) and A1C (diabetes) tests. The fair also offers blood pressure checks and height and weight measurements. The Vulcraft division complements the fair by bringing in area vendors, such as physical therapists, dieticians, chiropractors, vision specialists and teammate assistance program representatives, to name a few. According to Worman, “We identify and address teammates and family members annually with varying degrees of health risks before they develop into something more serious.” Vulcraft – Indiana has put on the two day event for more than a decade, with approximately 70 percent of its teammates participating. 14| |Nucor NucorSustainability SustainabilityReport Report2011 2011 14 THE NUCOR WAY TEAMWORK At Nucor, teamwork is much bigger than making steel. It’s about continual improvement, looking out for each other, and making Nucor a safer place to work. And so during down time in 2010, our Nucor Steel Memphis, Inc. and Nucor Steel – Arkansas divisions created a mill-to-mill safety audit program, in addition to the regularly scheduled safety audits. Twice per year, visiting teammates audit each other’s mills. This provides the opportunity for fresh eyes to notice unobserved safety issues, as well as a third party’s safety knowledge and experience. The joint venture kept teammates on reduced schedules working while providing new safety insights – a “win-win” according to Memphis Maintenance Manager Roger Young. PERSONAL RESPONSIBILITY Personal responsibility isn’t just a value at Nucor. It’s a way of life. That’s why our commitment to safety is demonstrated in the way we live and work – day in and day out, on shift and off, teammates and nonteammates. Because at the end of the day, safety and wellness mean we can continue to provide for our families, invest in our community, and take care of our customers. Owning Safety In 2011 our teammates at Nucor Steel – Hertford took personal responsibility for safety to the next level and formed a volunteer safety team to complement the existing safety leadership groups. The volunteer safety team was instrumental in spearheading numerous safety initiatives like Hazard Hunt, a children’s poster contest, an on-site digital communication system and the Safe Days of Summer campaign. The safety team also played a vital role in increasing teammate involvement in the overall safety program. Most importantly, Hertford had its highest safety performance on record for 2011, showing just how far personal responsibility and ownership can take the Nucor team. Health & Safety Performance | 15 On the Road Again In November 2011, Nucor Steel – Nebraska’s Quick Response Team (QRT) was credited with saving the life of a truck driver at the mill. During extreme winter conditions, the QRT was called when the driver – from Michigan – complained of feeling ill and soon fell unconscious. Trained in cardiac arrest response, the QRT went into action with a defibrillator and revived the driver. Thanks to the team, the driver was safely transported to the hospital, where he was treated and later released. NuYou In 2005, we began the NuYou health and wellness program to help all Nucor teammates make better healthcare decisions. As part of the program, we have tracked the percentage of teammates who are considered “at risk” in certain health categories. In the three years we have tracked results, we have seen a decline in the percentage of teammates at risk in every category. SINCE WE STARTED TRACKING RESULTS IN 2009, THE NUYOU HEALTH AND WELLNESS PROGRAM HAS DEMONSTRATED DECLINES IN TEAMMATES AT RISK IN EVERY HEALTH CATEGORY WE MEASURE. 16 | Nucor Sustainability Report 2011 RISING STARS Nucor Divisions Earn Prestigious OSHA Status In our industry, OSHA’s Voluntary Protection Program (VPP) and Safety & Health Achievement Recognition Program (SHARP) are the gold standard for safety excellence. The programs recognize companies that voluntarily go the extra mile to meet rigorous safety standards. VPP certification involves a meticulous on-site evaluation of literally every aspect of day-to-day operations. From general housekeeping to confined space management to procedures for locking down machines, candidates must demonstrate that safety is built into every task of every job of every department. VPP Star Status is OSHA’s highest level of voluntary achievement. Since 2005, multiple Nucor divisions have pursued these prestigious OSHA certifications. These efforts have been driven largely by our teammates, with the full support of management. For our teammates, it’s a way of taking safety to the next level through Teamwork and Personal Responsibility. Between 2010 and 2011, six more of our facilities received VPP certification – a 46 percent increase over 2009. This same period saw eight facilities recognized in the SHARP program, up from just two in 2009. All totaled, the VPP program has recognized 19 Nucor facilities and the SHARP program has recognized 10. “ SAFETY ON THE RISE 2010 - 2011 saw an almost 50% increase in the total number of VPP certified Nucor facilities. Nucor’s commitment to safety as their top priority is clearly recognized by the steel industry. Their successes in VPP, ANSI Z10, OSHA’s Fatality Prevention and safety awards, along with their continuous improvement in measured safety performance demonstrate the involvement of all Nucor employees in safety. The industry is especially appreciative of Nucor’s leadership and engagement in outreach, both upstream and down, in the industry’s safety initiatives. ” Thomas Danjczek President, Steel Manufacturers Association DIVISION SPOTLIGHT Nucor Steel Seattle, Inc. is ISO 9001/14001 and OSHA VPP certified, achievements not uncommon among Nucor divisions. What sets Nucor Steel Seattle apart is that they achieved all of this in just 18 months. Health & Safety Performance | 17 FOLLOWING UP ON A PROMISE THE PRESIDENT’S SAFETY AWARD At Nucor, Safety First is more than just a motto. It’s a promise we make daily to our fellow teammates, to ourselves and to our families. To demonstrate our commitment, we reward divisions for outstanding safety performance. The Nucor President’s Safety Award was established in 1998 to recognize divisions with an exemplary safety record. To receive this award, a facility must achieve accident and injury levels that are 67 percent lower than the Bureau of Labor Statistics’ (BLS) national average for the industry. Though the bar is high, at least 70 percent of our company’s divisions meet or exceed this benchmark on a regular basis. When asked what drives the safety of his division, Jim Landrum, recently retired General Manager of Vulcraft – Texas, explains, “As a company, we’re committed to taking care of our greatest asset – our people. But it’s a pride issue for our teammates. We give them complete ownership and they drive our safety achievements. They’re proud to say they have a great safety record.” Jim should know. Vulcraft – Texas has received the President’s Safety Award every year since it was established – 14 years running. In 2010, 35 Nucor divisions received the President’s Safety Award, followed by 36 divisions in 2011. To see a full list of the facilities that earned this important recognition, go to www.nucor.com 18 | Nucor Sustainability Report 2011 Rewarding Nucor teammates for productivity has been a part of our culture since 1966. | 19 EMPLOYEE REL ATIONS IT’S OUR “A lot of people say their most important resource is their people. I say no, absolutely not. Your most important resource is the right people. Through your hiring and training, you attract the right people to your organization.” DANIEL R. DIMICCO 1982–PRESENT 20 | Nucor Sustainability Report 2011 Building the Right Team, the Nucor Way Attracting and keeping the right people is something that requires our constant focus. It begins before we recruit new teammates and continues once they are employed with us. The process starts by building a pipeline of the right people who are talented and interested in creating, innovating, making and building things. This is more important than ever because Nucor and other companies that rely on engineers are facing serious challenges in finding the right people. The U.S. manufacturing sector is expected to grow over the next 15 years, increasing the demand for employees with science, technology, engineering and math (STEM) skills to fill high-paying jobs. At the same time, retiring baby boomers are thinning the engineering ranks and fewer students are pursuing math and science careers. “If something is not done to improve the pipeline of smart, educated talent interested in manufacturing careers, we’re going to have a talent shortage,” says Dan Krug, Director of Human Resources. To combat these trends we are developing a program to reach students in grades 5 – 12 with the message of how important it is for them to focus on STEM courses. “We care a lot about getting the U.S. back on top again in terms of producing engineers, and are looking as a company at how many different ways we can push this message forward,” says Krug. Employee Relations | 21 2011 WAGES | PER YEAR Finding the Right People Tools to Thrive at Nucor While we are working to stimulate students’ Once a teammate is at Nucor, we want to help interest in math and science careers, we are also them thrive and grow in their career. That helps aggressively pursuing talented students already them and the company to be successful. We do interested in these fields. Nucor recruits at about this through a program called NuPerformance, 30 universities across the U.S. However, the a curriculum that provides our teammates with quest for the right people goes beyond college the resources they need to reach their personal campuses. The military, returning veterans and professional goals. and technical colleges are becoming important A key component of this curriculum is sources for future teammates. Nucor also tries the Personal Continuous Improvement (PCI) to attract qualified individuals from competing process. The PCI process helps teammates companies and industries. identify their strengths and weaknesses, We sponsor and work with a network of and holds them accountable for continually professional organizations to identify top talent, improving. Core to the NuPerformance including the National Society of Black Engineers, curriculum and the PCI process is The Nucor the Society of Women Way, ten principles that AT NUCOR, THERE IS NO Engineers, the Women form the foundation of Engineering Proactive our culture. TEMPLATE CAREER PATH. HARD Network, the Association At Nucor, there WORK AND PERFORMANCE ARE of Women in the Metal is no template career Industries and the path. Each teammate THE KEYS TO ADVANCEMENT, National Association of is responsible for their NOT ENTITLEMENT. Multicultural Engineering career progression. Hard Program Advocates. work and performance Nucor donates approximately $100,000 to these are the keys to advancement, not entitlement. important organizations each year. 22 | Nucor Sustainability Report 2011 HANDS-ON EXPERIENCE The Nucor Education and Research Center (NERC) on the campus of Tuskegee University in Alabama is one way we are recruiting top students interested in STEM careers. Opened in the fall of 2009, the Center seeks to give students the opportunity to work on real engineering problems and exposes them to careers in the steel industry. “We emphasize that if you are going to come here and work with us at the NERC, you are going to work on a real project important to the company. We are doing this work because we are interested in it and it has an effect on our bottom line,” says Dr. Ron O’Malley, a metallurgist with Nucor Steel – Decatur, LLC who is the company point person for the program. Tuskegee, one of the top historically black universities in the United States, is a competitive place for businesses to recruit students. Nucor vies with other industries, such as aerospace, to attract and recruit the best students. Students working in the NERC are guaranteed stipends and internships with Nucor, which often leads to them being hired on full-time after graduation. Raising the awareness on campus about Nucor and its job opportunities, as well as attracting top students, are important goals we hope to achieve through our support for this program. “Tuskegee is one of the most outstanding universities in the country, with a long history of excellence. We want to attract their best students. Through the NERC program, we have seen a tremendous upsurge in student interest in Nucor, as well as interest from other academic departments,” says O’Malley. WE BRING TO THE TABLE PRACTICAL EXPOSURE TO REAL EMPLOYMENT IN MANUFACTURING. The Center has a lab area, meeting facilities, computers, microscopes for metallographic work, facilities for mechanical testing and a small furnace for heat treating studies. Three groups of undergraduates have gone through the NERC program. “It has definitely helped our visibility in Tuskegee. We are very well recognized on campus and we are getting good people into the NERC program,” says O’Malley. EMPLOYEE RETENTION | PER YEAR Employee Relations | 23 REWARDING SUSTAINABLE PERFORMANCE t Nucor, we put much of the decision making power for operating our steel mills in the hands of our frontline teammates. This is why we have one of the leanest management systems of any Fortune 500 company. We also reward teammates for the responsibility they are given. We do this through an incentive pay system that ties pay directly to the amount of quality steel produced each day. Production and hourly teammates are compensated for making decisions that help improve our efficiency and safely deliver high-quality steel tons. For our administrative professionals and management, pay is directly tied to overall company performance. This means teammates earn more when our mills are running at capacity and producing high-quality steel products that are on-spec. It also means that in difficult economic times, our Nucor team shares the pain – all the way from the front line to the CEO. “PAY FOR PERFORMANCE IS AN INTEGRAL PART OF THE NUCOR CULTURE.” In an interview with the financial services website Motley Fool, Nucor Chairman and CEO Dan DiMicco said of the company’s compensation system: “Pay for performance is an integral part of the Nucor culture. To us, pay for performance is simply common sense and good business practice.” The Great Recession, which began at the end of 2007 and continues to negatively impact our economy today, was one of those times when our organization experienced pain sharing. While the worst is behind us, the economic environment continues to be challenging. Because compensation was significantly affected for everyone during the worst of the economic crisis, we helped teammates through this difficult period by allowing hardship withdrawals from the profit sharing plan. We also offered a financial planning course to help people through the tough financial times. A guiding philosophy at Nucor is to plan for the bad times during the good times and plan for the good times during the bad times. We believe this philosophy can benefit Nucor teammates in their personal lives as well. Total compensation at Nucor includes teammates’ hourly rate or base pay, incentive bonuses, profit sharing and 401(k) matching funds. Bonuses/Incentives – A bonus is paid weekly for production teammates. A bonus for administrative professionals and management is paid semiannually based on a return on assets. Additionally, all teammates receive a bonus based on overall performance of the company. Historically, teammates have been paid an extraordinary bonus in a year in which Nucor achieves record earnings. Profit Sharing – Nucor has traditionally set aside 10 percent of earnings before taxes and gives this amount to teammates in the form of profit sharing. Teammates receive a small portion of their profit sharing in cash and the remainder is placed into a retirement account. 401(k) Match – Nucor’s 401(k) match is based on profitability. 24| |Nucor NucorSustainability SustainabilityReport Report2011 2011 24 THE NUCOR WAY OPEN COMMUNICATIONS Once we have found the right people, we want to keep them. An important part of achieving that goal is knowing what they think and how they feel about working at Nucor. Every three years since 1986, Nucor has asked teammates to fill out a comprehensive survey that provides feedback on management in their department and division, the teammates’ working environment and their feeling about the direction of the company. It is an important tool that we use to continually improve our company. The latest survey was administered in 2011 and received a 94 percent response rate, which was a new record for the company. NUCOR TEAMMATES REMAIN VERY SATISFIED. Employee Relations | 25 INVESTING IN THE FUTURE The Nucor Foundation Scholarship Program Investing in our teammates so they can grow and reach their personal and professional goals is vital if we want to keep the right people and prosper as a company. But our definition of teammates extends beyond the walls of our steel mills. It also includes our teammates’ families. Created in 1974, the Nucor Foundation Scholarship Program provides financial support for the post-secondary education of our teammates’ children. The program was created by Nucor’s founder, Ken Iverson, to support our teammates’ families. The Nucor Foundation Scholarship Program provides a $3,000 per year scholarship or educational disbursement for every child of every teammate for four years of post-secondary education. In 2011, the Nucor Foundation Scholarship Program provided nearly $4.6 million in scholarships to more than 2,000 students. Since its inception in 1974, the Foundation has given more than $61 million to more than 13,250 students at nearly 1,600 different colleges. Nucor teammate Steve Slesinski hugs his two boys after returning home from work at Nucor Steel – Berkeley. His children, like those of every Nucor teammate, will be eligible for a scholarship for post-secondary education. 26 | Nucor Sustainability Report 2011 Encouraging Students to Create, Innovate, Make and Build Things ver the last decade, America lost millions of manufacturing jobs. But something else has been lost too: young people’s interest in careers in manufacturing. Nucor is determined to change that. “I don’t think kids think of manufacturing as a career. There are all kinds of wonderful opportunities in manufacturing and there are going to be more in the future,” says Dan Krug, Director of Human Resources. In 2011, Nucor began an effort to promote manufacturing careers by holding the Strength of Steel Challenge. This competition invited middle and high school students from eight states where Nucor has facilities to work in teams to create a weight-bearing structure out of recycled steel. The goal of the competition was to expose students interested in math and science to the opportunities and benefits of working in manufacturing, especially steel manufacturing. Eight semifinalist teams were flown to Nucor’s headquarters where they presented their inventions to a panel of Nucor executives. They also talked with them about the importance of being a nation that creates, innovates, makes and builds things. The winning team – Jared Knobbe, 17, and Steven Fish, 18, from Imperial, Nebraska – received the $3,000 Nucor Future Engineers Champion Award. Their teacher, Kim Wilson from Chase County School, was awarded $250. While the Strength of Steel contest was a success, it served to launch a broader educational effort, currently being developed. The goal is to reach thousands of students and tell them about the cutting-edge technology Nucor and other manufacturers use, how science and math applies to that technology and what that means to their communities. “There is a lot of value when Nucor builds a mill, or another manufacturer builds a facility in a community. We want to share the story of how manufacturing can positively impact the prosperity of American communities and the people who live and work in them,” says Krug. Nucor Chairman and CEO Dan DiMicco and President and COO John Ferriola present Jared Knobbe and Steven Fish the Nucor Future Engineers Champion Award for winning the Strength of Steel Challenge. Employee Relations | 27 28 | Nucor Sustainability Report 2011 Cattle graze on land adjacent to the Nucor-Yamato facility in Blytheville, Arkansas. We know that our neighbors depend on us to take care of the environment. | 29 ENVIRONMENTAL PERFORMANCE IT’S OUR “If you see something that needs to be fixed, you fix it. You don’t need to get approval from three supervisors because your supervisors know you have integrity, and they trust that you’ll do the right thing. That’s a huge competitive advantage for us.” DANIEL R. DIMICCO 1982–PRESENT 30 | Nucor Sustainability Report 2011 REAL ENVIRONMENTAL PERFORMANCE Mini-mill steel production – manufacturing steel from recycled scrap – consumes fewer materials and less energy than traditional integrated steel mills. Today, thanks to our growth and other companies that have followed in our footsteps, steel is the most recycled material in the world. But when it comes to true environmental performance, walking the walk is a lot more complicated than conserving tons of raw materials and countless kilowatt hours of energy. In 2009, we embarked on a complete cradle-to-cradle life cycle assessment of our bar, beam, plate and sheet steel production processes. The assessment measured the environmental impact of our production, the usage of our products, and the process at the end of their useful life. It also looked at transporting our products and raw materials. For example, scrap metal going to a Nucor bar mill travels an average of 80 miles by truck or 304 miles by river barge. And one gallon of diesel fuel will transport a ton of Nucor steel 303 miles. Examining the full life cycle of our products demonstrates our products have significant environmental advantages over products from other manufacturers. But anyone who knows our company knows that’s not enough to satisfy us. Continual improvement drives our environmental performance just as it drives everything else we do. We continue to invest millions of dollars in capital expenditures for environmental projects. When it comes to the environment, we don’t just talk a good game. Through the efforts of every teammate, we will continue to improve our performance year after year. IN 2009 WE EMBARKED ON A COMPLETE CRADLE-TO-CRADLE LIFE CYCLE ASSESSMENT OF OUR BAR, BEAM, PLATE AND SHEET STEEL PRODUCTION PROCESSES. Environmental Performance | 31 Committed to ENVIRONMENTAL RESPONSIBILITY Nucor’s long-standing commitment to the environment is defined by our corporate environmental policies. Because Nucor encourages our teammates to take ownership of the entire process of making steel, we also expect them to take responsibility for our environmental stewardship. Each facility has adapted our core corporate environmental principles and created location- or division-specific policies to ensure environmental responsibility is embraced throughout Nucor. Environmental compliance is the responsibility of each and every teammate, from manager to the frontline. 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 company’s 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 teammate 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 teammates, our neighbors and other concerned parties. Learn More At: www.nucor.com/responsibility/environment/ems 32 | Nucor Sustainability Report 2011 THE PRESIDENT’S ENVIRONMENTAL AWARD Nucor’s environmental performance is a priority at the executive level, as it is core to both our mission and sustainability. From the board room to the melt shop, we are dedicated to environmental stewardship. As Nucor President and Chief Operating Officer John Ferriola demonstrates, “Every time I visit a mill, I visit the baghouse.” The President’s Environmental Award recognizes facilities with superior performance in a range of activities designed to preserve and conserve America’s natural resources. The award is given annually to Nucor divisions that achieve the highest levels of environmental performance. It is based on factors that range from exceptional compliance records to setting and achieving effective, realistic goals for environmental conservation. Protecting our environment is important to us, our teammates and the communities in which we work and live. Nucor President and COO John Ferriola at the baghouse with environmental teammates at Nucor Steel Marion, Inc. (top) and Nucor Steel Texas (bottom). 2011 Recipients American Buildings Company – Atlantic American Buildings Company – Midwest American Buildings Company – South American Buildings Company – West CBC Steel Buildings Gulf States Manufacturers Kirby Building Systems Nucor Building Systems – Indiana Nucor Building Systems – South Carolina Nucor Building Systems – Texas Nucor Building Systems – Utah Nucor Cold Finish – Nebraska Nucor Cold Finish – South Carolina Nucor Cold Finish – Utah Nucor Cold Finish – Wisconsin 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 Memphis, Inc. Nucor Steel – Nebraska Nucor Steel Seattle, Inc. Nucor Steel – South Carolina Nucor Steel – Texas Nucor Steel Tuscaloosa, Inc. 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 ENVIRONMENTAL COMPLIANCE DOES NOT COME EASY Environmental Performance | 33 26436 26250 27081 28110 24636 27424 27702 27993 27423 28606 28976 21369 21428 21022 20632 27256 27810 27922 28629 28010 28632 26052 25203 27671 27686 27684 27695 27378 27214 21180 23061 29043 28467 24448 25717 28743 27084 28820 28381 28382 28174 Waste Sampling Conference Call Waste Sampling Dust Inspection Opacity Reader Recert Deep Well Dust Inspection Dust Inspection Environmetrics WDEQ Well Report EMS O/T Report AERF Submission TRI Report Lime Permit/Reg. Scale Calibrate Tire Report PEA and Enviro Drum Depot Insp. SPCC Inspection NSPS Records Monthly Emission 001 Sample Baghouse Gauges Dust Col Inspect Baghouse Inpect HAZ STORAGE INSP Fan Amps Weekly Air Records Monthly Scrap Title V Certif Radiation CAL. Emrg Equip Insp PTP pump oilers Res. Stormwater Inspection Spill Kit Pressure Vessels SWPPP PEA Scorecard Pressure Vessels SPCC 27300 28534 27405 27430 27293 27154 26280 26282 19384 25716 27321 21336 20667 19229 18323 25921 21402 28611 28687 28495 21135 23724 31987 32051 31065 31138 31139 30223 30382 29748 28680 19301 24847 24848 24851 24852 27409 26306 29425 22745 29196 SWPPP Inspection Collect Air Data Update PEA Report Inventory Spill Kits Detention Pond Collect Air Data EMS O&T Check PEA Scorecard SARA 312 Report EMS Nonconformance Check New Hire Training Check SARA 313 Report Backflow Test Submit Tier II Report Submit annual DMR’s Air Emissions Update Submit SARA 313 Report Haz Mat Reg Paint Booth Insp Emiss. Stmnt. Air Emiss Stmnt. ECHO Site Check Slag Inspections WW Samples Monthly DMR Monthly Bag Insp Tank Inspections Stormwater Sample Slag Inspections Spill Drums Title V Semi-Annual SARA Tier II EMS O/T Review EMS Mgt Review Annual PM Test Annual Stack Test ODS Review Air Exceedance POTW Sampling Annual VEO Calib. Magnahelix 24972 24144 24487 24488 19086 19331 19332 19788 21255 21553 22059 22960 23435 23841 23842 23843 23844 23885 24184 24605 24688 25168 25169 25379 26039 26671 27868 28729 29663 29228 29713 29364 29135 30776 30738 30739 30791 31589 30840 30668 22440 Exploranium Cals Stormwater Sample Title V Semi-Ann Title V Cert Mag Meter Insp Ann Manifest Rep Tier II CFC Update Annual Air Form R Report Backflow Checks Aspect Review Sanitary Survey Alarm Check Annual Nitrate SWPPP Review Supplier Notif Quarterly Air Waste Determ. Env. Checklist ODS Review Monthly Tour Corp. Updates Air Permit Report CFC Update Aspect Review Waste Sampling Environmetrics Conference Call Deep Well Dust Inspection 2nd Containment T-105 Drain Clean Dust Inspection Deep Well Environmetrics 2nd Containment Fan Amps Weekly Air Records Monthly Scrap DHS Review 105 NUCOR ENVIRONMENTAL PROFESSIONALS COMPLETED OVER 8,000 ENVIRONMENTAL COMPLIANCE TASKS IN 2011 34 | Nucor Sustainability Report 2011 HELD TO A HIGHER STANDARD “Nucor is committed to an effective environmental policy that helps us manage and reduce our impact on our communities and the world,” says Steve Rowlan, Director of Environmental Affairs. That is why Nucor is proud that 46 of our facilities have achieved ISO 14001:2004 certification. Achieving ISO 14001:2004 certification means that Nucor facilities have adopted an Environmental Management System that enables teammates to take ownership of their mill’s environmental footprint. This approach ensures the environmental policy becomes an integral part of our mission. The evaluation and auditing process requires a comprehensive assessment of how each facility impacts 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. The Environmental Management System looks at the environmental performance of an entire facility in a comprehensive way. Guided by this snapshot, our mills can seek to continually improve their environmental performance. Why An Environmental Management System? • Helps ensure consistent, sustainable regulatory compliance • Drives continual improvement in environmental performance through effective Internal Audits and Corrective Action • Enables the achievement of meaningful environmental objectives to reduce emissions, conserve natural resources and effectively manage waste streams • Provides the framework to maximize teammate participation and involvement in the environment Environmental Performance | 35 ISO 14001:2004 Certified Nucor Facilities American Buildings Company – Atlantic Nucor Steel – Hertford American Buildings Company – Midwest Nucor Steel – Indiana (including Castrip®) American Buildings Company – South American Buildings Company – West CBC Steel Buildings Gulf States Manufacturers Kirby Building Systems Nucor Building Systems – Indiana Nucor Building Systems – South Carolina Nucor Building Systems – Texas Nucor Building Systems Utah LLC Nucor Castrip Arkansas, LLC Nucor Cold Finish – Nebraska Nucor Cold Finish – South Carolina Nucor Cold Finish – Utah Nucor Cold Finish – Wisconsin Nucor Fastener – Indiana Nucor LMP Steel, Inc. Nucor Steel – Arkansas Nucor Steel Auburn, Inc. Nucor Steel – Berkeley Nucor Steel Birmingham, Inc. Nucor Steel Connecticut, Inc. Nucor Steel – Decatur, LLC Nucor Steel Jackson, Inc. Nucor Steel Kankakee, Inc. Nucor Steel Marion, Inc. Nucor Steel Memphis, 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 Nu-Iron Unlimited Verco Decking, Inc. Vulcraft – Alabama Vulcraft – Indiana Vulcraft – Nebraska Vulcraft of New York, Inc. Vulcraft – South Carolina Vulcraft – Texas Vulcraft – Utah 36| |Nucor NucorSustainability SustainabilityReport Report2011 2011 36 TOTAL MATERIAL CHARGED PERCENT OF EAF DUST RECYCLED VERSUS LANDFILLED SCRAP 19.7 17.8 59% 87% 92% 2007 2009 MILLIONS TONS IRON 3.48 3.72 2011 2011 2010 NUCOR’S EAF METHOD TYPICALLY ALLOWS FOR >89.5% RECYCLED STEEL CONTENT THE BOF METHOD TYPICALLY ALLOWS FOR LESS THAN 30% PERCENT (TRADITIONAL DOMESTICALLY PRODUCED) 2011 GREENHOUSE GAS (GHG) LIFE CYCLE ASSESSMENT SUMMARY * BY PRODUCT GROUP G IN RM) N ST T T A S S O ST A A W P TI A AL (GW N CA NC NC UC ON C B E O O D E T O L O IF /T O /T AL AS EQ/ GL NTIA EQ/T ET PR EQ F L EQ H L L M O P 2 2 2 T NS D CO E CO TA TE O 2 EE CO TO PO LB C HO TO ST LB US LB EN LB P GW L TA NS TO TO P/ GWCAST S N N TO TO BAR 1,326.9 38.6 153.8 1,519.3 6,256,594 4,751,971 0.76 BEAM/PLATE 1,783.6 11.1 172.8 1,967.5 5,673,070 5,559,608 0.98 SHEET 1,794.3 11.1 217.1 2,022.5 8,680,005 8,766,805 1.01 SUMMARY TOTAL HOT METAL TONS–NUCOR MILLS 20,609,669 TOTAL GWP TONS–NUCOR MILLS 19,078,386 * CALCULATIONS BASED ON 2007 STUDY Environmental Performance | 37 ENVIRONMENTAL PERFORMANCE AT A GLANCE 100% $51.5 PROCESS WATER RECYCLED MULTIPLE TIMES (NUCOR DOES NOT HAVE ONCE-THROUGH COOLING SYSTEMS) 7.1 MILLION AMOUNT NUCOR APPROVED FOR CAPITAL EXPENDITURE REQUESTS FOR ENVIRONMENTAL PROJECTS IN 2011 BILLION GALLONS OF WATER WITHDRAWN BY NUCOR STEEL MILLS (DOES NOT INCLUDE RAIN WATER) ENERGY CONSUMPTION MBTU PER TON CRITERIA POLLUTANTS 4.74 4.05 PARTICULATE MATTER RECYCLING MINI-MILL BLAST FURNACE 2009 2011 NUCOR ENERGY INTENSITY SULFUR OXIDES NITROGEN OXIDES LBS PER TON VOLATILE CARBON ORGANIC MONOXIDE COMPOUNDS 0.3 0.7 0.1 4.0 39.8 5.0 0.5 44.0 1.4 NUCOR 0.4 NATIONAL INDUSTRY AVERAGE 38 | Nucor Sustainability Report 2011 GREENHOUSE GAS EMISSIONS: LEADING AN INDUSTRY-WIDE REDUCTION Ever since Nucor pioneered the mini-mill in the United States, we’ve been working to run our facilities more efficiently. These mini-mills rely on Electric Arc Furnaces (EAFs), which use giant electrodes to melt scrap steel. With the EAF, we can produce steel with more than 70 percent recycled content. This means we consume less energy and produce less waste than in a traditional basic oxygen furnace. The rest of the American steel industry has followed our lead. Now over 60 percent of American steel is produced in mini-mills with EAFs, and according to the Steel Recycling Institute, 50 percent of steel produced in the past 50 years has been recycled. America’s steel industry has reduced its energy intensity by 27 percent since 1990. As a result, our industry has far exceeded the targets set out in the Kyoto Protocol for reduction of greenhouse gas emissions. The domestic steel industry now has the lowest energy consumption and lowest carbon dioxide emissions per ton of steel produced of any steel-producing country in the world. Environmental Performance | 39 Castrip® MAKING STEEL WITH LESS ENERGY In Blytheville, Arkansas sits what can be considered the world’s most advanced process for the production of sheet steel. It is Nucor’s second environmentally friendly Castrip® micro-mill. Nucor incorporated all of the advancements developed at the world’s first commercial strip casting facility in Crawfordsville, Indiana into the new higher-productivity line in Arkansas. Producing what we call Ultra-thin Cast Strip (UCS), the Castrip process nearly instantly transforms molten steel into strip. Essentially, molten steel enters a pair of casting rolls at one end of the line and steel sheet, at cold rolled gauges, is coiled up less than 50 meters away. Exiting the casting rolls is a continuous steel strip as thin as 1.4 mm that is rolled in a single mill stand to thicknesses as low as an incredible 0.7 mm. The two Castrip plants are allowing Nucor Steel to improve its position as the nation’s CASTRIP HIGHLIGHTS largest recycler. The rapid solidification in the Castrip caster allows a much greater content of recycled materials to be used. Last year Castrip coils contained an average of 94 percent • 500,000 ton annual capacity recycled content while all other sheet products • 75% reduction in greenhouse gas emissions were at a still impressive average of 72 percent. As you might imagine, this single-step • Rapid solidification (<1 sec) process dramatically reduces the time, space, • Creates new product category – UCS energy and manpower to produce a steel coil. The area required under roof for Castrip is • Can replace cold rolled sheet, especially for approximately 25 percent of the area for a thin non-exposed or coated parts slab caster and, from an energy standpoint, the savings are even greater. The Castrip micro• Multiple strength levels can be produced from mill consumes 85 percent less energy than a a single chemistry via cooling table conditions conventional mill with a 75 percent reduction • Initial markets include: in greenhouse gas emissions. This breakthrough technology continues to • Construction develop at Nucor’s two facilities, and the steel grades that can be produced using Castrip continue • Metal Buildings to expand. High-strength low-alloy, high carbon • Tubing and weathering steels are now part of Castrip’s product offerings. Just this year, both facilities • Roll Formed Applications increased their width capability, resulting in higher productivity and even greater energy efficiency. 40 | Nucor Sustainability Report 2011 WE Know WE CAN One reliable way of transporting massive loads of material around our mills is by rail. Many of our facilities use the powerful diesel engines of a locomotive to transport rail cars full of scrap metal from scrap yards to the melt shops. These diesel engines may run for long periods of time and are always ready to haul a huge load across the mill, whenever it’s needed. Because starting a locomotive engine up from a cold start is a difficult process, the locomotives have traditionally been left idling, even while not under a load. Our innovative teammates determined we could cut back on emissions, energy and diesel fuel consumption by reducing the idle time of the locomotives while keeping them warm and ready to go. Already, four Nucor facilities have installed SmartStart® systems from ZTR Control Systems on their locomotives. These systems reduce idle time by automatically shutting off and starting up the engine. SmartStart® works by shutting off the engines after ten minutes of idle time and automatically restarts the engine if its temperature drops below 125 degrees Fahrenheit, the air pressure drops, the ambient temperature drops, or if the battery voltage gets low. This is necessary because most engine wear occurs between the time the engine starts and the time it warms up. By keeping the engine oil just warm enough to prevent cold starts, we can extend the life of our locomotive engines while reducing their environmental footprint from unnecessary idling. A total of 13 locomotives have the SmartStart® kits installed since the program began in 2008: four at Nucor Steel – Decatur, LLC; three at Nucor Steel – Berkeley; two at Nucor Steel – South Carolina; and four at Nucor-Yamato Steel Company. These four mills have saved over 390,000 gallons of diesel that would have been used for idling locomotives. This not only reduces fuel consumption, but leads to a significant reduction in the associated emissions. It’s just one more way we’re looking to reduce our environmental footprint. Nucor prides itself on having a can-do attitude, a mindset that has fueled our innovative culture. Nucor Chairman and CEO Dan DiMicco often refers to the wisdom of Yoda: “Try not. Do or don’t do. There is no try.” Environmental Performance | 41 A Partnership To Detect Radiation You might not think that radiation is something a steel recycler would need to worry about. But in the scrap Nucor recycles, radiation can show up in many forms, including naturally occurring radiation from underground pipes, radium dials or actual nuclear sources used in measurement or level detection. If contaminated scrap is melted, it not only becomes a potential safety concern for our teammates, but also could lead to an expensive and time-consuming cleanup of the facility. Therefore, radiation detection is a big concern for all steel manufacturers, including Nucor, who recycle scrap as a major part of their raw materials. “We are constantly working with our suppliers to ensure they have an effective program, but the buck stops with Nucor,” explains Ray Smith, Environmental Manager for Nucor Steel Kankakee, Inc. “The challenge is to correctly identify the presence of a shielded source in the middle of 23 tons of scrap metal,” says Smith. Quickly finding and correctly handling radiation in a load of scrap is important both to the safety of Nucor’s teammates, and to the efficiency of the production process. To this end, since 2010 we have been working closely with our partner, Nucsafe Inc., to provide radiation detection systems and monitoring services at all of our steel mills across the United States. Nucsafe designs and manufactures highly sensitive radiation measurement systems for nuclear safeguards, homeland security and the steel and scrap industries. Nucsafe systems are manufactured in the United States in accordance with ISO 9001:2008, and Nucsafe’s manufacturing facility holds both ISO 14000 and OHSAS 18001 registrations. The key to Nucor’s partnership with Nucsafe is that both companies recognize the value of continuous improvement. Smith offers praise for Nucsafe: “They’re a very innovative company, and they’re up for the challenge to meet our future needs. So they’re continually improving the system and offering other services to further assist our needs.” The system that has emerged from the Nucor-Nucsafe relationship is state-of-theart, and is one of the most – if not the most – sophisticated in the world. Prior systems just sounded an alarm if any radiation was present. Nucsafe worked hand-in-hand with Nucor to develop a sophisticated detection system that can identify the levels at which specific isotopes are present, so our teammates can address each problem safely and efficiently. In addition, the system utilizes modern communication technologies to notify environmental managers by email and mobile device if an alarm has been triggered. This enables Nucor teammates to quickly assess and respond to any potential issue. And with all the data for each facility electronically recorded, managers can review historical patterns to identify regional trends or the existence of background radiation. Together, Nucor and Nucsafe have set a high bar for protecting our teammates and our environment from contaminated scrap. And we continue to search for new ways to identify and safely handle radiation in all stages of production. 42 | Nucor Sustainability Report 2011 Continuous Improvement: Refining Slag Products Slag being poured into a bucket for processing at Nucor-Yamato Steel Company. Nucor has taken a leading role in promoting the development of a new generation of slag products. Slag is created as a layer of insulation on top of the steel bath to capture and utilize the heat and chemical energy that are generated as part of the process of recycling scrap steel. This slag layer not only lowers energy costs per ton and reduces carbon dioxide emissions, but also removes the impurities in the molten steel. After the slag is skimmed off the top of the bath, it is cooled and sent to a processor where it is put through a rock crusher and sorted according to size. Not only does crushed slag look a lot like crushed limestone, it possesses many of the same physical and chemical properties as limestone. Once harvested from the steelmaking process, slag is commonly used as an aggregate in construction projects. A frequent use of slag is as an aggregate in asphalt or as a subbase for roads. Slag increases the skid resistance of the road during its lifetime, making it a popular choice for intersections, curves and other areas where traction is important. But slag is also an environmentally responsible choice. For every ton of aggregate used in this way, it’s one less ton of gravel that must be dug out of quarries. In addition, slag increases the durability of the asphalt, decreasing the frequency of replacement needed. Slag has also been shown to be very effective at filtering phosphorous from agricultural, urban and industrial stormwater run off. This helps address one of the most pressing water quality issues worldwide. Nucor has been working closely with the National Slag Association to develop specifications for various types and grades of slag products. By setting these standards, Nucor wants to create a more refined product for end users while helping to educate the marketplace about the environmental benefits of utilizing slag products. Environmental Performance | 43 BETTER STEEL CLEANER WATER In the water-intensive steel manufacturing process, water is used to cool both the steel product and the steel making equipment. To avoid discharging any of the process water into the environment, and to meet strict environmental regulations, every Nucor mill has its own treatment plant. For example, to keep up with the mill’s demands, Nucor Steel – South Carolina must collect, cool, treat and recycle approximately 35,000 gallons of water every minute. In one day, the treatment plant saves enough water to take care of the needs of a city of 500,000 people. We work hard to maintain safe, clean water in our communities. But our facilities are always looking for ways to take it a step further and reduce their water consumption. One success story is due to the efforts of Nucor Steel Kankakee, Inc. The mill worked with Nalco Company to improve the efficiency of the facility’s water recycling process. Kankakee recycles blow-down water from four non-contact cooling water systems. These systems rely on evaporation for cooling. The leftover water, known as blow-down water, has a higher concentration of minerals in it and must be removed from these systems. To recycle this water, Nucor drains the blow-down water to the main process water system, which supplies cooling water for the continuous caster and rolling mill. Kankakee and Nalco developed a system to maximize the effectiveness of the recycling effort. The resulting program reduced fresh water usage by 60 million gallons a year. And water consumption per ton of steel was reduced by almost 30 percent. We will continue to seek ways to consume less water and minimize our impact on the water we do use. Nucor is committed to conserving this vital resource. Nucor Steel – Texas employs a WEDA underwater cleaning robot to maintain its water reservoirs. 44| |Nucor NucorSustainability SustainabilityReport Report2011 2011 44 THE NUCOR WAY Profiles In ENVIRONMENTAL INTEGRITY NUCOR STEEL SEATTLE When it was time to build a new teammate locker room and yard office, our Seattle mill decided to highlight environmental performance. As part of the project, the bar mill installed solar panels on the roof of the new building. Completed in February 2010, the project features two kinds of solar panels. The first type generates pure electricity to help offset the electrical demand for the building. The second type is part of a tankless hot water system (already a more efficient way to heat water) that uses even less energy because the water is preheated by the solar panels. The heating, ventilation and air conditioning system is also energy efficient by using the exhaust gas to preheat the incoming air to the system. “With the rising cost of energy we spend considerable time concentrating on energy efficiency initiatives. As a result we lower our production costs while also conserving natural resources,” says Matt Lyons, Vice President and General Manager of Nucor Steel Seattle, Inc. This is just one of the ways Nucor Steel Seattle works hard to adapt to its uniquely urban environment. From utilizing solar and hydro-electric power to adhering to the local zero visible emissions standard, Nucor Steel Seattle has made a commitment to being a good neighbor. VULCRAFT – TEXAS As part of its production process, Vulcraft – Texas previously used a paint that contained solvents which would evaporate into the air as volatile organic compounds (VOCs). To reduce its VOCs footprint, Vulcraft – Texas worked with its paint supplier, Century Industrial Coatings in Jacksonville, Texas. Together they formulated a paint to be reduced using water instead of mineral spirits or other paint thinners. Century’s Nulo™ paint dramatically reduced the VOCs emissions – by as much as 85 percent! Century’s Nulo™ paint has been adopted by all the other Vulcraft facilities and throughout the American joist industry. For their efforts, the Texas Commission on Environmental Quality awarded Vulcraft – Texas and Century Industrial Coatings the Texas Environmental Excellence Award for Technology in 2012. NUCOR STEEL – TEXAS In September 2011, Nucor Steel – Texas received the National Partnership for Environmental Priorities (NPEP) Achievement Award for Environmental Priorities. The division was recognized for reducing lead and mercury generation by 181 pounds of mercury and 997 pounds of lead from 2009 to 2010. NPEP is a partnership focused on reducing the use of potentially hazardous chemicals from products and processes. By forming partnerships with the EPA, NPEP partners representing industry, business, municipalities, federal facilities and tribes are successfully reducing the use and/or recycling of toxic chemicals, including mercury and lead. NUCOR STEEL – NEBRASKA In 2010, our teammates at Nucor Steel – Nebraska planted 1,200 trees along the northern Environmental Performance | 45 border of Nucor’s industrial area. The teammates worked with the local Natural Resources Division forester to determine the most viable types of bushes and shrubs and to finalize a planting plan. Nucor’s goal was to provide a barrier for dust control and snow, a wind break, and a visibility and sound barrier for our neighbors. In addition, the trees will provide a habitat for wildlife and resource conservation of land natural resources. GENERAL RECYCLING, NUCOR STEEL JACKSON General Recycling’s primary role is to supply Nucor Steel Jackson, Inc. with prepared scrap products for melting in its Electric Arc Furnace. But the facility also recovers and recycles other metals, such as aluminum, copper, brass, and stainless steel. In August 2011, General Recycling completed its $3.5 million metal recovery improvement project. The new equipment allows General Recycling to capture and recycle 35 percent more aluminum and copper from the automobiles, washers, dryers, lawnmowers and other consumer products they purchase and recycle as scrap. By improving the efficiency of this system, General Recycling has not only increased the productivity of its own operations, but reduced the amount of scrap metal that might go to waste. NUCOR BUILDING SYSTEMS Sims Sunset Park Materials Recovery Facility is a state-of-the-art recycling facility being built to service the needs of New York City. By centralizing the location for off-site recycling of metal, glass and plastic recyclables, the city will minimize the amount of trucking and waste trafficking by more than 260,000 miles a year. Sims Metal Management (SMM) is the long-term recycling partner of the New York City Department of Sanitation. SMM reached out to Nucor Building Systems (NBS) to help create a state-of-the-art facility that also incorporates a range of innovative sustainable features and large-scale environmental elements into the design and construction. By utilizing NBS, SMM achieved its goals of incorporating recycled steel and using domestic products to reduce the environmental footprint of the project. NBS was able to meet the specialized design goals of the project, both functional and cosmetic. Project lead Thomas Outerbridge, General Manager, Sims Municipal Recycling, explains: “This being New York City, with a waterfront location in Brooklyn, and the ever-growing public emphasis on sustainability, it’s important to us that we create something all New Yorkers can be proud of.” NUCOR STEEL – HERTFORD Nucor Steel – Hertford’s timber and wetlands programs exemplify our commitment to protecting and restoring sensitive habitats around our facilities. Teammates worked to create seven acres of wetlands on site, in addition to 14.68 acres of wetlands under protected covenant and 2.68 acres of littoral shelves surrounding the mill’s storm water ponds. The mill’s efforts to protect wetlands started in 1999 with the purchase of 150 acres of highquality riparian wetlands on the Chowan River, which were donated to the state of North Carolina’s Million Acre Initiative. Like a number of other divisions, Nucor Steel – Hertford has also worked to manage and protect forest areas. The mill has an approximately 300 acre on-site timber project that is managed in collaboration with the North Carolina Forestry Service. 46 | Nucor Sustainability Report 2011 Environmental Performance | 47 48 | Nucor Sustainability Report 2011 2011 SUSTAINAB ILIT Y OVER VIE W SCRAPPING EXPECTATIONS When the David J. Joseph Company (DJJ) joined the Nucor family in 2008, it was an easy fit. DJJ has been a broker of ferrous scrap to Nucor since 1969. And both companies have strong corporate cultures with a focus on continuous improvement. It is no surprise then that Nucor, the Western Hemisphere’s largest recycler, would team up with DJJ, America’s oldest, most experienced scrap recycling company. Since joining Nucor, DJJ’s more than 65 scrap recycling facilities and 13 brokerage offices have continued to focus on sustainability. To DJJ, it’s about recycling one of the world’s most reusable materials while conserving our precious natural resources in the process. Perhaps the best testament to our sustainable business model is the simple fact that DJJ has been around for over 125 years. That’s what happens when you take care of people and the environment, and why we say we are “scrapping expectations.” Environmental Excellence Across the Board Our recycling facilities are among the most environmentally advanced in the industry. In addition to routine inspections for environmental performance, each facility receives a detailed annual inspection that evaluates all aspects of environmental performance to include teammate training and community outreach. Over 90 percent of the facilities achieved a score that resulted in environmental excellence during 2011. DJJ has implemented an environmental management system that extends to each of our operating facilities and our trading network. All ten facilities of River Metals Recycling, a wholly owned subsidiary of DJJ, are ISO 14001:2004 certified. Trademark Metals Recycling, also a wholly owned subsidiary, boasts the first shredder facility in the country to be certified under the Recycling Industry Operating Standard (RIOS) and is extending this environmental and safety system to its other shredder facilities. David J. Joseph Company | 49 49 Controlling Storm Water Controlling pollution from storm water discharges is DJJ’s top priority and greatest challenge. Much of our industrial activity occurs outdoors and many of our facilities are located on small footprints in urban areas without room for storm water ponds. Our goal is to control common pollutants such as iron, zinc, aluminum, hydrocarbons and solids in storm water from recycling facilities. DJJ uses various best management practices as part of our pollution prevention efforts to maintain clean storm water. For example, DJJ trains our scrap buyers and inspectors on the important safety and environmental issues associated with incoming scrap. We also train our customers on the standards for delivering clean scrap metal to DJJ plants. In a perfect world, customers would deliver clean scrap to our plants, but to account for the possibility of dirty scrap, DJJ has invested in environmental infrastructure, such as roofed turnings storage areas equipped with oil/ water separators and special drain racks for processing automobiles. This allows us to process potentially polluting scrap while minimizing any environmental impact. At several major shredder facilities, DJJ has engineered stormwater solutions to do what we do best – recycle! At these facilities, we aren’t just recycling scrap metal, we are recycling water. Lots of water. Shredders can use as much as 30,000 gallons of water per day for cooling and dust control. DJJ’s environmental and engineering groups have implemented systems that capture rainfall that is collected and retained for use as a direct substitute for city water in the shredding process. Since our first installation, we have replaced and/or eliminated the need for nearly 22 million gallons of city water. Additional benefits include preventing thousands of pounds of pollutants from entering the streams and rivers near our plants and savings of hundreds of thousands of dollars in water bills. Removing Mercury Switches DJJ’s recycling facilities and U-Pull-&-Pay stores have long been a leader in efforts to remove mercury switches from the environment. Through 2011, we have removed and recycled more than 105,000 mercury switches from whole automobiles that we purchased and worked with our flattened car suppliers to recover hundreds of thousands more. U-Pull-&-Pay teammates – displaying the President’s Environmental Award – have helped remove thousands of mercury switches from recycled cars. 50| |Nucor NucorSustainability SustainabilityReport Report2011 2011 50 2011 LOWEST OVERALL ACCIDENT RATES IN DJJ HISTORY At DJJ, the primary goal of our safety process is to offer a safe and healthful workplace, free of injuries and illnesses for our teammates, customers and visitors. Our safety process is guided by three principles: Safety is recognized and promoted as a core value throughout every level of the organization. Safe operating practices will not be sacrificed for the sake of production. All teammates are responsible for, and take an active part in, making their workplace safe. DJJ’s safety process follows the Continuous Improvement Principle: Improving workplace safety is an ongoing process that never ends. Consistent with this principle, our injury and illness rates have declined steadily since we started tracking rates in 1979. Likewise, our 2011 injury and illness rate was the lowest in our company’s history and was less than half the industry average. Are we satisfied? No. The only acceptable number of injuries is zero. Speaking of zero, 40 of our recycling facilities were injury-free in 2011. Active teammate participation is vital to the success of our safety process. Teammates are assigned to a “functional team” (such as the nonferrous warehouse team or the steelyard team) that meets weekly. Functional team members recognize and spot hazards in their work areas, then work cooperatively with plant managers to correct the problems. This structure encourages teammates to suggest creative safety solutions. We expect our supervisors to be safety experts, so they get additional training. Every new supervisor attends our “Safety School,” a three-day program covering 25 topics, from basic safety instruction to how to present effective safety meetings, to equip them to help run our plants safely. Supervisors also attend two-day safety conferences. Top management also attend the conferences to underscore their support for the safety process. A quantitative site inspection, called a “Safety Scorecard,” is completed at facilities annually. This inspection is unannounced and includes a complete review of the administrative, physical and behavioral elements of the safety process. Plants receive an official score and those that do well are recognized for safety excellence. We have implemented the KMI Software Suite for environmental, safety, health and sustainability management. Incident reporting, root cause analysis and corrective actions are managed in a network database. Automated e-mails distribute incident notifications and summary reports throughout the company. This enables real-time sharing of critical information. Several DJJ Recycling Groups have earned awards in 2011 recognizing their safety excellence from local safety councils: Five Advantage Metals Recycling facilities received the 2011 Corporate Safety Award from the Safety Council of the Ozarks. Trademark Metals Recycling received the Gold Safety Award from the Florida/United Safety Council in the “medium” company category in the state of Florida. This marks the sixth time in seven years that TMR received this Corporate Safety Achievement award. Western Metals Recycling received the Award of Merit from the Utah Safety Council for its achievement in workplace safety performance in five of the last six years. We are proud of our safety accomplishments to date, but are hard at work refining our process to better keep DJJ teammates safe on the job. David J. Joseph Company | 51 51 LEADing the Way DJJ’s philosophy is to provide teammates with support for professional and personal development. This philosophy and commitment led to the creation of DJJU – a compilation of programs and learning opportunities offered through in-house seminars and outside programs. LEADing the Way is one of the professional skill enhancement programs offered as part of the DJJU curriculum. This program is designed to enhance supervisor’s effectiveness by further developing communication, coaching and feedback skills. 52 | Nucor Sustainability Report 2011 Giving Back For well over a century, the David J. Joseph Company culture and philosophy has revolved around being good neighbors in and giving back to the communities in which we do business. This tradition remains part of DJJ today. Across the country, our teammates are passionately improving the communities in which we do business by giving back. · In March 2011, DJJ hosted Junior Achievement Job Shadow Day by sponsoring 15 students from Beechwood School in Fort Mitchell, Kentucky. A variety of staff members spent time with the students, discussing daily job responsibilities and the inner working of the company. and beyond the call of duty when it comes to our community during National Night Out. From the moonwalk, hot dogs, drinks, generators and the manpower with picking up the trash, we couldn’t ask for a better partner,” said a representative from the Smith Addition Civic Club. · In dozens of cities DJJ facilities donate automobiles and space to local fire departments for emergency response training. We hope this effort will result in lives saved and safer roads. · Teammates from DJJ’s Corporate Headquarters volunteer with People Working Cooperatively (PWC) to provide low income, elderly, and disabled homeowners with a higher quality of living through home repairs, mobility modifications and maintenance services. · In 2010 and 2011, Texas Port Recycling teammates rolled up their sleeves to help with National Night Out in Houston, an event bringing together city and county law enforcement officers to increase crime- and drugprevention awareness. “You all always go above · When tornados hit the city of Joplin, Missouri in May 2011, many of the Advantage Metals Recycling teammates asked how they could help those who were affected by the tornado. The AMR staff quickly introduced teammates to a variety of organizations that helped them continued David J. Joseph Company | 53 53 make contributions, volunteer and give blood. For instance, teammates worked with the Linn Creek Police Department to provide refurbished bicycles to those in need. Bikes that were beyond repair were either used for other bikes or crushed by AMR. The bicycle scrap metal was then sold and the money used to purchase new bikes for Joplin residents in need. · DJJ is proud to be involved in a project to commemorate those lost in the attacks of September 11, 2001. Artist Bernar Venet was commissioned to create metal sculptures using steel from the fallen World Trade Center for the Cantor Fitzgerald Relief Fund, which was started by Cantor Fitzgerald, the financial services firm that lost 658 employees in the attack. DJJ’s Brokerage Staff arranged the logistics of delivering World Trade Center scrap to Nucor Steel Tuscaloosa, Inc., where the steel was recycled, rolled into plate, and sent to France for the artist to create his sculpture (pictured left). · DJJ continues to be available to the community for tours and educational opportunities. In June 2011, dozens of National Energy Education Development Program administrators and teachers toured River Metals Recycling’s Newport, Kentucky facility to learn about the energy savings that are achieved through scrap metal recycling. · The Denver International Auto Show is one of the most comprehensive automotive sector trade events in America. In 2011, for the fourth consecutive year, Western Metals Recycling (WMR), in conjunction with the Clear the Air Foundation, presented an automotive recycling exhibit. WMR contributed a multifaceted interactive display to educate attendees about recycling. The Foundation invited area dealers to demonstrate their civic pride by donating old gas-guzzling smog-mobiles (called gross emitters) for shredding and sale to recyclers. Money raised by the efforts support scholarships for students pursuing automotive or related technology courses of study. 54 | Nucor Sustainability Report 2011 The Mike O’Callaghan–Pat Tillman Memorial Bridge crosses the Colorado River near the Hoover Dam. Concrete for the bridge is reinforced with rebar fabricated by Harris Arizona Rebar, Inc. HARRIS STEEL BRIDGING THE GAP TO SUSTAINABILITY: 2011 OVERVIEW Harris Steel Group is a wholly owned subsidiary of Nucor Corporation, acquired in 2007. We process, fabricate and distribute steel throughout the U.S. and Canada through our many subsidiaries, including Harris Rebar, Harris Supply Solutions, Laurel Steel and Fisher & Ludlow. Our products include concrete reinforcing steel, epoxy-coated reinforcing steel, concrete post tension systems, wire products, cold finished bar, aluminum grating, heavy industrial steel grating and expanded metal. We are excited to be a part of the Nucor family. We take great pride in taking care of our customers by providing quality products and unparalleled service. As the following stories illustrate, we also place a high value on safety and taking care of our teammates. It is our teammates who make us the successful, sustainable company that we are. Harris Steel Group | 55 55 Taking Safety to the Next Level Safety is a core value at Harris Steel. We provide our teams with the training, tools and support they need to protect themselves and those around them. Our teammates hold each other accountable to accomplish our goal of zero injuries each and every day while providing quality, on-time product to our customers. Joining the Nucor family has provided Harris Steel opportunities to take its commitment to safety to the next level. Since 2007, we have learned and implemented new practices that have yielded significant safety improvements at all of our operations. Safety is Everybody’s Job at Laurel Steel Before Harris Steel became part of the Nucor team in 2007, our Laurel Steel division had a safety record most companies would be proud of. Safety policies were in place, medical aid and lost time events were at manageable levels, and the facility was well within regulations. Laurel Steel General Manager John Supple explains, “Prior to being bought by Nucor, there was always this perception that we were pretty good from a safety standpoint. We were doing all the right things. We thought we were better than we were.” But perceptions changed when Laurel’s team had the opportunity to benchmark against their teammates at other Nucor divisions. “When we saw those numbers, we were shocked and we didn’t believe them,” recalls Supple. “So 71% Decline Illness & Injury Rate 85% Decline LosT Time Injury Rate 82% Decline LosT Workday & Rest Case Rate Combined Harris Steel’s recordable safety incidents have declined significantly since 2007. we visited some other divisions and saw that they were really doing it – their numbers were phenomenal.” Laurel started making changes. The teammates realized that if other Nucor divisions could do it, so could they. This healthy sense of competition led to unprecedented improvements at the facility. And as teammates saw results, momentum grew. Since 2007, there has been a steady decline in safety incidents and in 2011, Laurel had zero recordables. In addition, the division achieved zero 56 | Nucor Sustainability Report 2011 zero lost time injuries since June 2007, totaling more than 1.5 million man hours. The biggest improvements were tied to communication and accountability. As Supple explains, “When we started all this, the managers were really managing safety. Now we’re at the point of having 160 guys managing safety. We’re all holding each other accountable for having a safe operation and making sure everybody goes home safe at the end of every day.” incident levels that are less than one-third of the industry average, an important milestone on the way to achieving our goal of zero incidents. Fisher & Ludlow Achieves a Milestone Harris Rebar Raises the Bar in Safety Since 2007, Fisher & Ludlow has refocused its safety efforts, learning from techniques that had been applied successfully at other Nucor locations. Fisher & Ludlow President Brian Rutter and his team demonstrated the ongoing importance of safety in everyday operation, from Toolbox Talks to one-on-one conversations. Four years later, the division’s flagship facility in Burlington, Ontario has achieved a more than 75 percent reduction in both recordables and lost workdays, accounting for more than 1.1 million man hours. Overall Fisher & Ludlow has achieved Recordables in 2011 & ZERO Lost Time Injuries Since June 2007 Totaling 1.5 million Man Hours *At Laurel Steel Having more than doubled in size between 2007 and 2011, Harris Rebar faced some of the greatest challenges in improving its safety performance. With so many new and acquired locations in such a short period of time, the safety culture was pushed to the limit. The teammates at Harris Rebar showed that despite the challenges that came with growth, they could and would continue to raise the bar in safety performance and achieve the only acceptable outcome: zero incidents, zero recordable injuries. In 2010, 20 of Harris Rebar’s locations achieved zero recordable injuries. In 2011, 29 of Harris Rebar’s locations achieved zero recordable injuries. It proved to everyone that it could be done. It will be done. Harris Steel Group | 57 57 Strengthening Infrastructure One Bar at a Time Much of North America’s infrastructure is supported by the strength of Nucor rebar fabricated by Harris Steel. Our products are in the roads, bridges, dams and buildings that keep our economies moving and businesses thriving. We are North America’s leader in rebar, with more than 70 rebar fabrication facilities strategically located in the U.S. and Canada near most major construction markets. Our facilities offer full-service solutions including everything from estimating to fabrication and installation. In addition, we are able to supply steel that is compliant with the Leadership in Energy and Environmental Design (LEED®) regulations of environmental sustainability, contributing to our customers’ efforts to attain Green Building certification. We are a customer-focused company, and it is our focus on meeting our customers’ needs that has driven us to double in size. We will continue to expand into new markets based on the service needs of our customers. In the coming decades, North America’s infrastructure will require significant modernization and growth to ensure efficiency, safety and competitiveness. From new roads and bridges to high-efficiency commercial buildings, the Harris Steel family of products will play an important role in building a revitalized economy. We look forward to making North America stronger, more efficient and more competitive than ever before. Harris Rebar Doubles in Size Since being acquired by Nucor in 2007, Harris Rebar has more than doubled in size as we continue to grow into new markets to better serve our customers. In 2011, Harris Rebar began planning a new facility to be located in Riverside, Alabama. The new $7 million, 49,000-square-foot facility will be constructed during 2012 and will create as many as 80 jobs. The facility will be constructed using Nucor steel, with components coming from Nucor Building Systems, American Buildings Company and Vulcraft. 58 | Nucor Sustainability Report 2011 Nucor Steel Kankakee, Inc. proudly displays the Stars & Stripes on the side of a building at their facility. These steel flags are manufactured by the Nucor Buildings Group, including Nucor Building Systems, American Buildings Company, CBC Steel Buildings, Kirby Building Systems and Gulf States Manufacturers. | 59 COMMUNIT Y REL ATIONS IT’S OUR “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 1982–PRESENT 60 | Nucor Sustainability Report 2011 HOW SMALL STEEL MADE BIG CHANGES Since 1968, Nucor has had a reputation for innovation. First we developed technologies that revolutionized how the world makes steel. Then we reimagined what it could look like for big businesses to be a part of small towns – where most of our mills are located – and never looked back. We do more than create jobs in our communities. Nucor has always believed that good business is good for everyone, which is why part of our corporate mission is to be a cultural and environmental steward in the communities where we live and work. In our experience, strong communities produce a strong business environment. So for us, partnering with our communities is not just good practice, it is smart business. 2011 was an extraordinary year for Nucor. We had the opportunity to provide more than 75,000 volunteer hours and $8 million in charitable contributions to the communities we support. 2011 CHARITABLE CONTRIBUTIONS $5,265,000 $800,900 $1,066,000 $477,000 $400,500 COMPANY CONTRIBUTIONS TEAMMATE CONTRIBUTIONS CHARITY EVENTS DIRECT CASH CONTRIBUTIONS ENDOWMENTS/ SCHOLARSHIPS (To Universities Or Colleges) Total Charitable Contributions = $8 million Community Relations | 61 Seattle Then & Now RAISING THE BAR FOR URBAN MANUFACTURING nlike most of our mini-mills, Nucor Steel Seattle, Inc. isn’t found in a small, rural community. Rather, it sits surrounded by suburban homes in Seattle, Washington – one of America’s greenest cities. To some, Seattle is an unlikely site for a thriving steel mill. Yet Nucor Steel Seattle has forged an uncommon partnership with its community, setting the standard for modern, urban manufacturing and demonstrating what makes Nucor different. Our Seattle mill, which is the oldest steel plant on the West Coast, was originally built in 1905 by Seattle Steel Company. Youngstown, a company town, surrounded the mill and provided housing for employees. The mill continued to grow and in 1930 Bethlehem Steel acquired the mill. In the coming decades, the homes in Youngstown transitioned to private ownership, but the housing was still low-cost and the area remained an industrial center. Everything changed for the mill town when a housing boom hit Seattle in the 1980s. Once considered far away, the neighborhood was now within Seattle and the low-cost housing came into high demand in Seattle’s burgeoning market. The neighborhood soon went through a major transition as real estate values skyrocketed and the community cleaned up. After changing hands in 1985, Birmingham Steel acquired the steel mill in 1991, followed by Nucor in 2002. As one of America’s greenest cities, Seattle takes seriously having a steel mill for a neighbor. “This plant wouldn’t be here if the neighbors didn’t want us here,” according to Nucor Steel Seattle Safety and “ In order for us to be successful here, we have to do the right thing. We have to align ourselves with the community standards in one of the greenest cities in the nation. And if we represent sustainability, recycling, low carbon footprint and energy efficiency, then the neighbors are going to respect us and support us. ” Bart Kale Safety and Environmental Manager, Nucor Steel Seattle, Inc. continued 62 | Nucor Sustainability Report 2011 participant in the community. In 2011 the Seattle Environmental Manager Bart Kale, who has been with teammates contributed to Southwest Youth and Family the plant for more than 20 years. “In order for us to be Services’ annual holiday drive, providing coats and food successful here,” says Kale, “we’ve learned that we have to boxes. The same holiday season, the mill provided 2,100 flow with the community standard, and we’ve been very pounds of food to West Seattle Food Bank. And for good at that.” several years, the Seattle teammates have raised thousands Indeed, the Nucor mill has gone to great lengths to of dollars for the West Seattle Relay for Life, most recently align its operations with the community’s interests. For through a “Tour for the Cure” program, which raised example, because wet scrap produces additional noise in money in 2011 by the furnace, the mill put conducting mill tours. a roof over its scrapyard THE COMMUNITY’S MESSAGE “As a large industrial resulting in a 90 percent WAS LOUD AND CLEAR: facility in close proximity noise reduction. Further to those around us, efforts to reduce noise “NUCOR IS A GOOD NEIGHBOR.” we recognize the include speciallydesigned rubberized importance of being a good neighbor,” explains Matt Lyons, Vice President bay doors in shipping, a custom engineered muffler for and General Manager of the Seattle mill. Ultimately, the reheat furnace and the use of strobe lights instead of however, it is the community who decides. And that sirens for nighttime rail car deliveries. is exactly what they did five years ago when Nucor In lock-step with the community’s environmental applied for a permit increase. A public meeting was held values, Nucor Steel Seattle is Washington’s largest following agency approval of the permits. Astonishingly, recycler and gets most of its electricity from hydroelectric of the 35 community members in attendance, only two generators. And while the EPA requires visible emissions came to challenge the permit. Support of the mill was standards between 3 and 6 percent, the mill has adhered overwhelming and, by the end of the meeting, only one to the local standard of zero visible emissions for its melt person spoke out challenging the permit. shop. All of this adds up to our Seattle mill being one of The community’s message was loud and clear: the cleanest and most efficient steel mills in the world. “Nucor is a good neighbor.” Nucor Steel Seattle has also become an active “ ” To operate in the midst of an environmentally progressive city like Seattle, we have to be on the cutting edge of technology and energy efficiency. Matt Lyons Vice President and General Manager, Nucor Steel Seattle, Inc. Community Relations | 63 THE NUCOR WAY PRIDE There is a difference between community investment and being invested in the community. It’s the difference between writing a check and showing up to build the playground. At Nucor, that difference is pride. You see, every hour we volunteer, every dollar we give and every good we donate goes directly toward making life better for our families, friends and neighbors. We’re proud to be part of the Nucor family, and proud to be a part of the communities where we live and work. Why Strong Winds Were No Match for Steel Resolve April 27, 2011 is a date not soon forgotten by the Nucor communities in Decatur and Tuscaloosa, Alabama. Historic tornados ravaged much of the Southeast that day, leaving nearly 300 lives lost in their wake, and countless homes and businesses damaged and without power. Miraculously, Nucor Steel – Decatur, LLC did not sustain serious damage, even though an F5 tornado passed within a few hundred yards of the mill. Tornados destroyed power lines, however, leaving the Decatur mill without power for more than a month. While the mill weathered the storm, nothing could have prepared Decatur’s teammates, or its residents, for what hit their community that day. Nucor teammate Kristy Bayne was trying to escape the storm with her family when a stranger took them in just moments before the tornado hit. She recalls, “The minute we got the door closed, everything hit. When we came out and looked around, there was nothing left.” Nucor teammates take a break from tornado relief efforts. A FEMA representative in Decatur nicknamed the Nucor teammates the “Green Hats” after seeing their commitment to helping their neighbors in the wake of the storms. continued 64 | Nucor Sustainability Report 2011 Sadly, thousands across the region would return to discover their homes had been damaged or destroyed, many losing everything. But the carnage that day was soon followed by the inspiring and heroic stories that emerged from the relief efforts. Nucor Steel – Decatur Vice President and General Manager Mike Lee describes going to check on teammate Joe Roberts at home. “He wasn’t even there. His house was damaged, but he and his family were alright. So he was out in the neighborhood helping other people.” for anything in return. Lee explains, “It proved to me that we are about doing the right thing for the right reasons.” As the Decatur teammates reached out locally, sister mills as far west as Arkansas and as far north as Indiana jumped into action to help their fellow teammates and the stricken communities. Shannon Phillips, Vice President and General Manager of Vulcraft – Indiana remembers, “As soon as this happened, I had teammates at our division asking me, ‘What can we do to help?’ ” Joe’s story underscores a broader effort undertaken by our teammates at Decatur. It took about a day to shut down the mill, but then the teammates immediately shifted their focus to the community. After a few phone calls, the mill assembled several teams outfitted with pickups, trailers, Bobcats, chainsaws and tools. “We sent them out every day and they’d knock on doors,” recounts Lee. It took a while for residents to believe the teammates were offering to help them for free. “But when they realized we were the real deal, we were embraced.” During the recovery, a FEMA representative stopped by the Decatur mill to see if anyone needed assistance. He spoke about the “Green Hats” – the Nucor teammates he’d seen and heard about supporting the community without asking In addition, Nucor-Yamato sent 300 generators, while the Indiana divisions organized local efforts that sent truckloads of needed supplies and more than $9,000 to Decatur. Similarly, our mill in Tuscaloosa, which lost power for almost a week, quickly sent teammates into the community to assist while the mill was down. As part of its relief efforts, the mill provided generators and fuel to local residents, including several whose health relied on electrically-powered medical devices. A month after the tornadoes, the Tuscaloosa teammates were still heading into town after work to help their neighbors. The teammates arrived at work one morning to find a banner anonymously placed at the entrance road, thanking Nucor for its commitment to the recovery. On May 15, 2012, the Steel Manufacturers Association (SMA) and its member companies awarded Nucor Corporation the 2012 SMA Achievement in Community Involvement Award for tornado relief. Community Relations | 65 Leading By Example Community at Our Core Community involvement is not a side project for Nucor – it is core to the way we do business. That’s why each of our divisions is involved with numerous local organizations, and many of our teammates volunteer their time on a frequent basis. Nucor Cold Finish – Wisconsin, for example, is active with the local Ronald McDonald House, the Oak Creek Community Center, Unity Soup Kitchen, The Salvation Army, and will soon be partnering with Hope House of Milwaukee, the Oak Creek Police Department and the Milwaukee Spanish Immersion School. As one Nucor teammate explains, “Nucor has a great culture of helping those in need, and we do our best to help promote this within our community and spread The Nucor Way.” Cleaner by the Ton 2011 marked the 10th anniversary of Nucor Steel – Nebraska’s Annual Scrap Day. Every year Nucor volunteers at this event help take in hundreds of vehicles, and tons of household scrap steel, aluminum cans, and waste electronic equipment. Not only does Scrap Day ensure proper disposal of these hard-to-handle items, but it helps make the Norfolk community a cleaner place to live. Helipad Following the April 2011 tornados in Alabama, American Buildings Company – South (ABC) worked with 25 of its teammates to design and build a helipad that would serve the division and local residents in the event of an emergency. The pad, approved by both the FAA and the Alabama State Department of Aeronautics, is currently active as a back-up to the local hospital. ABC President Ron Kuenkler remarked, “We’ve implemented safety measures in all aspects of our business and now, with the helicopter pad, we have the opportunity to positively impact the surrounding community.” Educational Value We believe in investing in a community’s longterm sustainability, while also caring for shortterm needs as they arise. That’s one reason why Nucor Steel – Utah provides educational grants every year to local schools in Northern Utah and Southern Idaho. By providing short-term needs for things like classroom supplies and library additions, this division is investing in the education of future generations, and hopefully even a few future steelmakers. 66 | Nucor Sustainability Report 2011 In Honor of Veterans Nucor has a long-standing tradition of supporting the members of the United States Armed Forces. When our teammates are called to action, we gladly hold their jobs, complement their military pay to match their Nucor salaries and extend their benefits while away. We also recruit veterans when hiring, valuing the strong character developed when serving one’s country. Nucor salutes America’s service men and women, and considers it an honor to serve them when they come home. WARRIOR SALUTE In July 2011, Nucor announced a partnership with Continuing Development Services’ (CDS) Warrior SALUTE Program that would extend through 2012. This program assists service members transitioning from military to civilian life through residential, therapy and vocational training services. A highlight of the Nucor-CDS partnership is the Nucor Warrior Salute House in Penfield, New York. The home opened in July 2012 and has been remodeled to house and serve veterans suffering from post-traumatic stress syndrome and traumatic brain injuries. The program offers an environment of camaraderie and support as residents heal and transition to civilian life. Community Relations | 67 This commemorative flag surround stands at the entrance of Nucor Steel Birmingham, Inc. in honor of those who have served our nation. The teammates at Gulf States Manufacturers – a division of Nucor – fabricated the flag surround using steel melted and cast by the teammates at Nucor Steel – Decatur, LLC. Gulf States Manufacturers is proud to have fabricated similar surrounds for several Nucor divisions and local communities. “ ” Remember, freedom isn’t free. It comes with a heavy price. God bless our Nucor leaders for allowing us to celebrate freedom and everything that is right with America. Danny Coggins General Manager, Gulf States Manufacturers 68 | Nucor Sustainability Report 2011 Nucor is guided by the central goal of our Mission Statement: “Take Care of our Customers.” | 69 CUSTOMER REL ATIONS IT’S OUR “Our primary focus is no longer producing as many tons as we can. Our primary focus is now taking care of our customers by being the safest, highest quality, lowest cost, most productive and most profitable steel and steel products company in the world, while we produce as many tons as we can.” DANIEL R. DIMICCO 1982–PRESENT 70 | Nucor Sustainability Report 2011 Commercial Excellence At Nucor, we have a deep-rooted culture of continual improvement guiding every aspect of our business, from safety and environmental performance to productivity, quality, cost control and commercial excellence. For us, it is a daily effort of endlessly finding better ways to get things done, much like climbing a mountain without a top. Nucor has been a recognized industry leader in operational excellence for decades. In recent years we have expanded our focus by asking, “How can we provide more value to our customers?” For us the answer is simple: commercial excellence. Commercial excellence is about more than making high-quality steel and steel products; it is about industry-leading customer service and building loyalty, trust and long-term partnerships with our customers. Nucor President and Chief Operating Officer John Ferriola explains, “Commercial excellence is not a change in Nucor’s focus, it is an expansion in expectations where we develop our commercial prowess to the same level as our operational excellence. We have found value in capitalizing on both our operational and commercial excellence to create an environment for long-term sustainable success.” “ ” This is not a change for the company but an expansion for the company. John Ferriola Nucor President and Chief Operating Officer Customer Relations | 71 Pillars of Commercial Excellence Market Driven Easy To Do Business With Strong, Loyal Relationships Sustainable Results We Do It Together While our facilities operate independently, they compete collectively. Thus, Nucor has put the Pillars of Commercial Excellence in place. These guidelines are regularly communicated throughout the company and provide a framework to help us exceed our goal of taking care of our customers. As Ferriola notes, “We must be industry leaders to have both operational excellence and commercial excellence.” Ultimately, our goal is to be a rock for our customers: reliable, enduring and strong. We strive to provide a level of service that, in conjunction with our high-quality products, makes our customers’ jobs easier and their projects more successful. 72| |Nucor NucorSustainability SustainabilityReport Report2011 2011 72 THE NUCOR WAY WORK ETHIC Day in and day out, the men and women of Nucor rededicate themselves to ensuring the products we make and the steel we produce are the best in the industry. The work ethic our teammates subscribe to is an end-to-end, top-to-bottom code that ensures safety, quality and customer service forms the foundation on which our steel is produced. Most people think of customers as those people who buy and use a product. At Nucor we’ve taken the view that our customers include everyone who shares in our success. This means those who live and work in buildings made with our products or drive in cars made with our sheet. But it also means our shareholders and every one of our teammates and their families. So when we talk about taking care of our customers, we are talking about a deep-seated commitment to improving both the customer experience and the lives of everyone who comes in contact with Nucor and its products. TAKING CARE OF OUR CUSTOMERS MEANS MEETING THEIR EVERY EXPECTATION, ON TIME, EVERY TIME. When our customers approach us with a need, they know that need will be met, met quickly, and met to their exacting specifications. That is because, at Nucor, we utilize our broad North American presence to ensure our customers can take advantage of geography to minimize cost and environmental footprint. Even during the most difficult economic times, Nucor’s mills have maintained the capability to produce the high-quality steel demanded by our customers. Since the start of the recession in 2008, we have not closed a single mill – instead curbing hours and production to ensure we can still meet customer need without exceeding capacity. Because Nucor’s facilities offer just-in-time (JIT) logistics capabilities, we can help our customers meet their needs for attaining Leadership in Energy and Environmental Design (LEED®) certification. LEED® relies on using sustainable materials, energy-efficient manufacturing processes, and takes into account the distance materials travel to the job site. Nucor’s geographic reach means our customers are never far from having the quality products and unmatched customer service they need. Customer Relations | 73 NUCOR AUTOMOTIVE STEEL Driving Sustainability Nucor’s roots trace back to automotive visionary Ransom E. Olds – famous for designing the Reo Speedwagon – whose company evolved into Nuclear Corporation of America and, ultimately, Nucor. Today, our story has come full circle as we are working together with modern automakers toward shared goals of environmental stewardship, and sustainable processes and product lines. Cars have come a long way since the Speedwagon, but one thing hasn’t changed: the weight and strength of automotive steel directly impacts safety, performance and efficiency. This makes Nucor’s advanced highstrength, lightweight steel offerings a perfect fit for auto manufacturers who are in need of steel with high formability characteristics that is strong enough to absorb energy during a crash, all while reducing weight and increasing fuel economy. The 70 percent recycled content of much of Nucor’s automotive grade steel means auto manufacturers can have their cake and eat it too: top-quality steel that meets all technical specifications while simultaneously reducing the lifecycle greenhouse gas emissions associated with the vehicles. And as Nucor uses a growing amount of energy-efficient Direct Reduced Iron (DRI) to supplement our recycled content, we will have even more green appeal. The Reo Speedwagon (above left) is the best known of Ransom Olds’ automobile designs and a part of Nucor’s history. Nucor will continue to play a role in the automotive market by providing high-strength, lightweight steel products to manufacturers of modern cars (above right). Nucor’s decentralized North American presence means that we can reduce lead times, lower freight costs and provide more just-in-time (JIT) deliveries to our customers. All while reducing the environmental footprint associated with shipping. As we continue to expand our automotive product offerings, Nucor looks forward to leading the way toward stronger, more sustainable fleets. 74 | Nucor Sustainability Report 2011 ELECTRIC STEEL FOR ELECTRIC VEHICLES It is fitting that the electric vehicles of the future should be built with environmentally friendly, lightweight steel solutions. To this end Nucor is providing technical support to the FutureSteelVehicle Program, a collaborative effort among WorldAutoSteel, which is a part of the World Steel Association, and steelmakers around the globe to develop fully-engineered, steel-intensive designs for electrified vehicles that reduce greenhouse gas emissions over their entire life cycle. The FutureSteelVehicle features steel body structure designs that reduce mass by more than 35 percent over a benchmark vehicle and reduce total life cycle emissions by nearly 70 percent. Improved advanced high-strength steel designs will reduce a vehicle’s greenhouse gas footprint during its use phase; but steel also has the added benefit of lower greenhouse gas emissions resulting from the energy needed during the production of steel and the steel recycling rate versus other primary materials. And our recycling standards are the best in the industry. Advances in material production in recent years have resulted in lighter, stronger and greener steels, and production of these new steels emits five to 20 times less greenhouse gases than other materials, according to WorldAutoSteel. Additionally, steel is a lower-cost material than alternatives, meaning consumers can afford these vehicles in greater numbers, further reducing greenhouse gas emissions in both production and tailpipe use. The FutureSteelVehicle is a concept vehicle designed to inspire lightweight steel solutions for auto manufacturers, and it is the hope of all involved that the program will lead to a revolution in automotive design. Customer Relations | 75 A Cycle of Sustainability In March 2011, Mississippi Power began construction of a 582-megawatt coal gasification electric plant (IGCC) in Kemper County, Mississippi, strategically located near abundant resources of lignite coal. The technologically-advanced plant will produce fewer particulate, sulfur dioxide and mercury emissions than traditional coal-powered plants, and will capture 65 percent of its carbon dioxide emissions – the highest of any IGCC plant in the nation. The carbon capture technology will result in emissions equivalent to a similarly sized natural gas combined cycle power plant. Moreover, the zero-discharge facility will not release any process water into rivers, lakes or streams, making it among the most environmentally-friendly electricity generating plants in the nation. Six Nucor divisions are providing an estimated 50,000 tons of steel for the project, underscoring our growing role as a provider of steel for use in hightech energy projects. But Nucor’s interest in energy projects extends beyond just selling steel. Our recycling process relies heavily on electricity, and the cleaner the electricity, the greener our steel. With projects like these, we hope to create a “cycle of sustainability,” where clean steel is used to produce clean electricity, which can then be used to produce more clean steel. We are proud to take care of customers who share our commitment to environmental stewardship and technological innovation. NUCOR STEEL USED IN PROJECT (APPROXIMATE TONNAGE) 36,000 tons STRUCTURAL Nucor-Yamato Steel Company REBAR 6,800 tons Nucor Steel Jackson, Inc. PLATE 3,000 tons Nucor Steel Tuscaloosa. Inc. Nucor Steel – Hertford GRATING By providing approximately 50,000 tons of steel for construction of the Mississippi Power facility, Nucor hopes to create a “cycle of sustainability,” where clean steel is used to produce clean electricity, which can then be used to produce more clean steel. 3,100 tons Fisher & Ludlow FASTENERS 275 tons Nucor Fastener – Indiana 76 | Nucor Sustainability Report 2011 NEW INGREDIENTS, NEW PRODUCTS, MORE SUSTAINABILITY We are always looking for the new technologies that will sustainably produce cleaner, more efficient steel. Nucor’s use of scrap has always meant that the product we deliver to our customers is sustainable by its very nature. Now, the use of Direct Reduced Iron (DRI) combined with pig iron and steel products allows us to produce products that are cleaner, stronger and more environmentally sustainable. The steel we make with DRI and recycled scrap is used to make thousands of parts for automobiles every year, the guard rails that keep families safe and the reinforcing steel on the bridges over which they drive. We make much of this steel using cleaner-burning natural gas, which has fewer emissions. A useful product that results from this steelmaking process is slag, an inert, fused and vitrified matter separated during the reduction of a metal from its ore. Slag is used in road construction to increase the skid resistance and durability of asphalt. The material is Scrap also an environmentally responsible substitute for DRI gravel, which must be dug from quarries. Pig Iron Nucor has worked diligently to “close the loop,” creating the products that help make the cars and keep them safely on the road, and recycling the by-products of the manufacturing process. Our long-term goal has always been to have greater control over our raw materials, more efficient manufacturing processes, lower energy usage and increased sustainability. Electric Arc Furnace Slag Caster Reheat Furnace Torch Rolling Mill Finishing Customer Relations | 77 Power or No Power, We Take Care of the Customer Our goal is to take care of our customers. That means top-quality product delivered on time, every time – even when an F5 tornado knocks out power for 29 days, like it did at Nucor Steel – Decatur in April 2011. The Decatur mill quickly reached out to the Nucor mill family, who in turn made sure no customer received anything less than the best in quality and on-time service. “We took all the orders we had on the books, or the majority of them that we knew timing was an issue, and we shipped them to Berkeley, Hickman and Crawfordsville to put in their schedule and get rolled. And not one order was late. Every order that we displaced to a sister division arrived on time. Zero impact to our customers. They, to this day, still can’t believe it happened.” PHOTO BOX Decatur Mike Lee Vice President and General Manager, Nucor Steel – Decatur, LLC AWARDS Taking care of our customers is central to Nucor’s mission. That is why it is gratifying to be recognized by customers for a job well done. Over the last two years, Nucor received several awards from customers, including: Nucor Cold Finish – Nebraska 2011 John Deere Achieving Excellence Partner (only steel producer to receive award) 2011 John Deere Achieving Excellence 5 Year Hall of Fame 2010 John Deere Supplier of the Year Nucor Steel Memphis, Inc. Forging Industry Educational & Research Foundation (FIERF) Silver Anvil Award Nucor Steel – Berkeley 2010 & 2011 The Techs Supplier of the Year 78 | Nucor Sustainability Report 2011 At Nucor, leadership means giving people the freedom, resources and training to do their jobs but not getting in their way. | 79 GOVERNANCE IT’S OUR “We’ll emerge, as we always do, stronger than we were before by never taking our eyes off the goal: Take Care of the Customer.” DANIEL R. DIMICCO 1982–PRESENT 80 | Nucor Sustainability Report 2011 NUCOR GOVERNANCE HOLDING OURSELVES TO THE HIGHEST ETHICAL STANDARDS Nucor’s culture is one that respects the individual. The open door and phone practice of the corporate office and local facilities fosters a culture where all participate and contribute to the progress of the company. Our teammates, neighbors and shareholders should always be treated fairly, honestly and respectfully. At the same time, we – that’s everyone in our company – should conduct ourselves according to the highest ethical standards. As a result, all of our teammates are accessible and accountable. Learn more at: www.nucor.com/governance GOVERNANCE POLICIES Governance Principles Nucor’s governance principles provide a framework for the composition, operation and responsibilities of the Board of Directors. Standards of Business Conduct and Ethics Nucor’s reputation and success rely on the ethical conduct of our employees, officers and directors. Our standards include, but are not limited to, abiding by all guidelines to avoid giving or receiving gifts for the improper influence of our business, avoiding and disclosing conflicts of interest, ensuring legal state and federal political contributions, proper use of company assets and transparent reporting. Supplier Code of Conduct Nucor requires its suppliers to comply with high standards of social responsibility. This code of conduct prohibits the use of forced and child labor, requires suppliers to treat employees with dignity and respect, free from unlawful discrimination. Nucor’s suppliers must provide fair and lawful wages and benefits to their employees. In addition, Nucor expects each of its suppliers to minimize their environmental footprint and conduct business in continued Governance | 81 THE NUCOR WAY TREAT PEOPLE THE RIGHT WAY One of Nucor’s guiding principles is to encourage our teammates to treat other people the way you would want to be treated. We make sure everyone has the right tools, resources and training to get the job done, and then we get out of their way. And when we make a mistake, we learn from it and move forward. We want people to take ownership of challenges, not fear them. We’re all in it together as a team. accordance with high ethical standards. Suppliers must maintain documented compliance with this code to continue doing business with Nucor. Code of Ethics for Senior Financial Professionals This code is a supplement to the Standards of Business Conduct and Ethics and is designed to deter wrongdoing and promote honest and ethical conduct by Nucor’s senior financial officers and CEO. The code applies specifically to the preparation and oversight of financial information used in reporting to the Securities and Exchange Commission and other public and private stakeholders. Committee Responsibilities and Charters Nucor’s Board of Directors has three standing committees – Audit, Compensation and Executive Development, and Governance and Nominating. These committees operate in accordance with written charters, which have been adopted by the Board of Directors. Communicating with Directors Stockholders may communicate with the Board of Directors, or any of its independent directors, by sending correspondence to Nucor’s corporate office in the care of Nucor Directors. 82 | Nucor Sustainability Report 2011 NUCOR’S POSITION OF STRENGTH Five-Pronged Strategy for Profitable Growth 1. Optimization of existing operations 2. Investment in raw materials 3. Greenfield growth in new technologies & marketplace niches 4. International growth through joint ventures Groundbreaking for Nucor Steel Louisiana, LLC 5. Pursuit of strategic acquisitions Learn more about our operations and financial reporting at: www.nucor.com/investor Stock Performance Nucor announced its 155th consecutive cash dividend in the fourth quarter of 2011. 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 2006. The resulting cumulative total return assumes that cash dividends were reinvested. Nucor common stock comprised 41% of the S&P Steel Group Index at year end 2011 (48% at year end 2006). Governance | 83 84| |Nucor NucorSustainability SustainabilityReport Report2011 2011 84 NUCOR TRADE AND INDUSTRY ASSOCIATIONS Nucor partners with a number of trade associations and industry organizations to pursue our common interests for the betterment of American manufacturing. American Iron and Steel Institute World Steel Association Association for Iron & Steel Technology Steel Manufacturers Association Steel Recycling Institute American Institute of Steel Construction www.steel.org www.aist.org www.worldsteel.org www.steelnet.org www.recycle-steel.org www.aisc.org Metal Building Manufacturers Association Steel Framing Alliance www.mbma.com www.steelframing.org Steel Joist Institute Concrete Reinforced Steel Institute www.steeljoist.org www.crsi.org Steel Deck Institute United States Green Building Council www.sdi.org www.usgbc.org In addition to the entities above, Nucor facilities participate in their state manufacturers’ associations and numerous city and state manufacturers’ sustainability councils. FOR MORE INFORMATION ABOUT NUCOR’S PUBLIC POLICY POSITIONS: WWW.NUCOR.COM/VOICE Governance | 85 Doing Our Part to END FORCED LABOR Nucor’s most valuable asset is our people. We go to great lengths to show them the care, dignity and respect they deserve. That is why Nucor is also making every effort to ensure forced labor is eliminated from our supply chain. One of our key areas of focus is Northern Brazil, which is the source of one of Nucor’s significant feedstock ingredients – pig iron. Pig iron is an intermediate iron product that is created by smelting raw iron ore at high temperature with a carbonreducing agent. In Northern Brazil, this agent is often charcoal. The charcoal production process in Brazil is very labor intensive and takes place in relatively remote and inaccessible areas. In some cases, charcoal production has created difficult working conditions – at times falling to the level of forced labor. Nucor has taken a proactive approach to help ensure that the charcoal used to make our pig iron does not come from forced labor, including: Nucor requires each pig iron manufacturer that ships product to Nucor to certify that its pig iron was manufactured without the use of involuntary labor. Nucor retains a Brazilian law firm to monitor the Brazilian Labor Ministry’s Black List of firms that have been found to use forced labor. We then remove these firms from our list of acceptable suppliers. Nucor requires that all of our suppliers of charcoal-based pig iron in Northern Brazil either belong to the Citizen’s Charcoal Institute (ICC) and subject their pig iron suppliers to random, unannounced audits, or become signatories to the National Pact to Eradicate Slave Labor in Brazil (the National Pact) and comply with its commitments. Nucor has become a patron of the Citizen’s Charcoal Institute (ICC). As a patron, Nucor contributes to the ICC’s funding and receives reports of audits conducted on charcoal producers. Nucor is not alone in facing this issue. We endorse the efforts of the Brazilian companies and nongovernmental organizations working to eliminate forced labor in Brazilian industries. 86 | Nucor Sustainability Report 2011 Governance | 87 88 | Nucor Sustainability Report 2011 FOR MORE INFORMATION ABOUT NUCOR SUSTAINABILITY EFFORTS, PLEASE CONTACT US AT: SUSTAINABILITY@NUCOR.COM | 89 Nucor recycles an average of 1,200 pounds of steel every second of every hour of every day, making us the Western Hemisphere’s largest recycling company. Executive Officer Group from left to right: James R. Darsey, Executive Vice President; Ladd R. Hall, Executive Vice President; Hamilton Lott, Jr., Executive Vice President; R. Joseph Stratman, Executive Vice President; Daniel R. DiMicco, Chairman and Chief Executive Officer; John J. Ferriola, President and Chief Operating Officer; Keith B. Grass, Executive Vice President; and James D. Frias, Chief Financial Officer, Treasurer and Executive Vice President. Corporate Headquarters 1915 Rexford Road Charlotte, NC 28211