KEN IVERSON
FORMER CHAIRMAN AND
CHIEF EXECUTIVE OFFICER
“Managing with a long-term perspective
is just common sense to us.”
NUCOR TENURE 1962-1998
“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, PRESIDENT AND
CHIEF EXECUTIVE OFFICER
NUCOR TENURE 1982-PRESENT
T H I S R E P O R T I S D E D I C AT E D T O T H E 2 0 , 4 0 0 M E N A N D WO M E N O F N U C O R C O R P O R AT I O N
A N D O U R S U B S I D I A R I E S W H O C O N T I N U E T O P ROV E E V E R Y DAY T H AT S T E E L I S N O T
O U R S T RO N G E S T A S S E T.
IT’ S R E S O LVE .
LET’S DO IT TOGETHER.
4
LETTER FROM DAN DIMICCO
6
OVERVIEW
10
HEALTH & SAFETY PERFORMANCE
20
EMPLOYEE RELATIONS
32
ENVIRONMENTAL PERFORMANCE
48
COMMUNITY RELATIONS
56
CUSTOMER RELATIONS
64
GOVERNANCE
72
COMMITMENT TO SUSTAINABILITY
04
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
A COMMITMENT TO LONG-TERM SUCCESS
IT’S OUR
mission
How will you remember 2009?
When I look back, what strikes me most are the things that didn’t change at Nucor.
The things that didn’t go away under the tremendous pressure we all endured:
• For starters, our Nucor teammates still had a job to come to every day. Even
while the manufacturing sector lost more than two million jobs, we didn’t lay off any
of our Nucor teammates due to lack of work. Sure, our teammates earned less money,
but they still had paychecks, benefits and a promise for a better tomorrow.
•
We didn’t close any of our Nucor facilities. So, even though many of our valued
customers did not need steel last year, they can rest assured they will have a local and
reliable source of sustainably produced steel tomorrow.
• We historically take advantage of downturns to improve our skills and our operations,
and grow our company to be prepared to take advantage of the upturn when it occurs.
• Our company’s generosity did not falter. In 2009, we made more than $4.6 million
in charitable donations, and contributed a record $4.4 million in scholarship funds for
the children of our employees. Speaking of our teammates, they donated an outstanding
75,000 volunteer hours to their local communities.
• Our focus on—and investment in—employee safety and environmental performance
never skipped a beat. All safety and environmental programs, including internal audits and
our own safety boot-camp program, were fully funded and exempt from any restrictions
to curb travel expenses. In fact, 2009 was Nucor’s safest year despite the downturn!
05
• Nucor’s steel recycling technology is many times cleaner and less polluting than the
traditional integrated steel mills. But we’re not stopping here. Again, Nucor continued to invest in
improvements. This included conducting our environmental boot camps.
• We continued to invest in what already is the most energy-efficient family of steel mills
in the world. We did not use the drop in demand as an excuse to shutter facilities. Instead,
we viewed it as an opportunity to make important improvements in our long-term
environmental performance.
What didn’t change were our core values and our commitment to long-term success.
Our culture—based on integrity, teamwork, personal responsibility, courage and the
Nucor can-do attitude—did not change. These are the things that allowed us to make the
improvements we did in 2009.
While this may be our first sustainability report, our commitment to sustainable
management is nothing new.
Great companies always prepare for the good times in the tough times and for the tough
times in the good times.
Focusing on the long-term goal is what has enabled us all to prosper during good times.
As a result, we will emerge from today’s challenge stronger than ever.
Because one other thing that didn’t change is the enduring spirit of the 20,400 men and
women of Nucor Corporation and subsidiaries to whom this report is dedicated.
Let’s do it together.
Sincerely,
Daniel R. DiMicco
Chairman, President and Chief Executive Officer
06
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
About This Report
Our first Nucor sustainability report provides a sense of Nucor’s culture, which you will
clearly see is what makes us a truly sustainable company.
Each topic in this report—health & safety, employee relations, environmental performance,
community relations, customer relations and governance—includes a description of how
these topics are part of the Nucor culture. This report includes our Nucor Steel mills and
product facilities, David J. Joseph Company and Harris Steel Group operations
in the United States, Canada and Trinidad.
Reflecting our ongoing commitment to sustainability, this initial report is a small sample
of Nucor’s commitment and culture. The stories used throughout the report are just some
examples of the hundreds of submissions we received from our valued teammates.
At the end of some of these sections, we include the applicable global reporting initiative
(gri) indicators. The specific gri metrics are reported in tabular format when applicable.
OVERVIEW
At Nucor, sustainability is not something that was planned recently;
it is the result of decades of a culture centered around our CEO Dan DiMicco’s goal:
“Our Goal is to ‘Take Care of Our Customers.’
We are accomplishing this by being the Safest, Highest Quality,
Lowest Cost, Most Productive and Most Profitable Steel and
Steel Products Company in the World.
We are accomplishing this by being cultural and environmental
stewards in the communities where we live and work.
We are succeeding by working together.
Taking care of our customers means all of our customers:
our employees, our shareholders and the people who purchase
and use our products.”
As the team at Nucor has strived to achieve this goal,
we have created an extraordinary sustainable company.
Please enjoy reading the contents of this report as much as
we have enjoyed compiling it for you, one of our valued customers.
07
08
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
OVERVIEW
09
OUR MISSION
Nucor Corporation is made up of 20,400 teammates
whose goal is to take care of our customers. We are
accomplishing this by being the safest, highest quality,
lowest cost, most productive and most profitable
steel and steel products company in the world. We
are committed to doing this while being cultural
and environmental stewards in our communities
where we live and work. We are succeeding by
working together.
ORGANIZATION PROFILE
Our mills have a production capacity that exceeds
26 million tons. Nucor is the largest producer of
steel, joist and deck in the United States. We are
the Western Hemisphere’s largest recycler.
LEARN MORE AT:
WWW.NUCOR.COM/PRODUCTS/LOCATIONS/
LEARN MORE AT:
WWW.NUCOR.COM/PRODUCTS/
AT NUCOR, NOTHING IS MORE IMPORTANT THAN SAFETY.
NOTHING.
! KEEPING SAFETY TOP OF MIND.
Some of our workers carry photos
of their families inside their hard hats
to remind them of the importance
of safe behavior in the plant.
HEALTH & SAFETY
HEALTH & SAFETY PERFORMANCE
IT’S OUR
“We run Nucor first and
foremost to ensure that, a decade
or two from now, there will be
a place for our children and
grandchildren to work...that is
our higher cause.”
“Safety of our employees
is our number one priority.
No matter how you look
at safety—personal, business, moral
or ethical—it just makes sense for it
to be a number one priority.
Period.”
KEN IVERSON
DANIEL R. DIMICCO
1962—1998
1982—PRESENT
11
12
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Health & Safety
Looking at the indexes for health and safety, it is clear we have done
a remarkable job. Our performance, however, tells only a small part of the story.
Safety is everything to us. It is not something that we do because we have to.
It is something we do because it makes sense. Our teams have realized that by working safely,
they increase their productivity, profitability, and, most important, their health and happiness.
Taking safety this seriously isn’t easy, but when the entire team is focused on the goal,
we find new and innovative ways of getting the job done.
That innovation is what sets us apart.
We approach safety with the same “can do” attitude that our teams bring to every task.
When that force is applied, just sit back and watch the results—it’s impressive.
Safety is everyone’s responsibility.
HEALTH & SAFETY
Why the most important production figure
we’ll ever achieve is
zero
2009 WAS NUCOR’S SAFEST YEAR
AT NUCOR, WE TARGET ZERO
INJURIES AND ILLNESSES. So it
should come as no great surprise
that safety is the first topic of
virtually every meeting we conduct—
from every plant meeting to every boardroom meeting. Or
that we have teams dedicated exclusively to improving the
working conditions and practices at all of our operations—
right down to auditing every one of our facilities for safety
performance. Or that personal responsibility is a significant
part of our safety culture.
These efforts played an important role in ensuring zero
fatalities in 2009, not to mention bringing our injury and
illness rate to its lowest point in our history.
Yet, while we’re proud of these achievements, we’re
anything but satisfied. Because, of course, our ultimate goal
is to have zero injuries of any kind.
That’s why Nucor has created and implemented a
number of systems to drive continuous process improvement
in safety and health. This approach includes the Safety
Incident Reporting Network (SIRN), SharePoint and
ongoing audit programs.
continued 1
!
JEWETT, TEXAS
Teammates at our Jewett, Texas, facility conduct a
safety drill at our confined space training center.
13
14
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
2009 TOTAL OCCUPATIONAL INJURY & ILLNESS RATES
|
P E R 1 0 0 WO R K E R S / 2 0 0 , 0 0 0 H O U R S P ER YEAR
1.46 5.07
2.03 9.70
1.28 7.60
STEEL MILLS
FABRICATORS
BUILDING GROUP
NUCOR
NATIONAL INDUSTRY AVERAGE
SIRN is a program that enables all Nucor divisions to
share information on incidents, best practices and corrective
actions. Once an incident occurs, a report is entered into the
Microsoft® SharePoint® portal, an internal Web site, so that all
Nucor facility safety coordinators are aware of what happened
and, most important, how it can be prevented. SharePoint
enables Nucor to disseminate information across the company,
share best practices and promote discussions pertaining to
safety.
We audit every one of our production facilities for
environmental and safety performance at regular intervals.
These audits are unique in that each Nucor facility is audited
by its peers from other divisions to discover best practices.
They then refine and share them. The process lasts several
days at each location and consists of compliance, program
and procedural reviews, along with an innovative cultural
audit that focuses on employee internalization of safety
practices, and solicits their input on the safety process.
In addition, each Nucor facility has a dedicated safety
coordinator or safety director. These representatives meet
twice a year to gather and share information and best
practices, discuss new trends and receive training.
HEALTH & SAFETY
2009 TOTAL LOST WORKDAYS & RESTRICTED CASE RATES
|
P E R 1 0 0 WO R K E R S / 2 0 0 , 0 0 0 H O URS PER YEAR
0.68 2.70
1.31 5.23
0.69 4.03
STEEL MILLS
FABRICATORS
BUILDING GROUP
NUCOR
NATIONAL INDUSTRY AVERAGE
An Annual Fair That Gives Our Employees
Something to Celebrate
e launched the first annual health fair at
Nucor Steel in Tuscaloosa, Alabama, in 2007
to improve the health and well-being of our
teammates.
The week-long health fair is open for
12 hours each day to ensure that all teammates have the
opportunity to visit. Additionally, Nucor encourages
teammate spouses and their children to participate in the
health fair.
An integral part of the fair is the on-site diagnostics team
that conducts carotid artery and abdominal ultrasounds and
blood screenings to alert those who might be predisposed to
heart disease.
These screenings have proven to be life saving. During
one of these tests at the first annual fair in 2007, the wife of
a teammate was found to have a 99 percent blockage in her
carotid artery. She underwent successful surgery the very
next morning.
Testing that year also revealed a teammate who had a
75 percent blockage of his carotid artery. He is now taking
medication and being monitored.
Additionally, the on-site screenings have caught many
cases of pre-diabetes and cholesterol problems before they
became serious health problems.
“It’s definitely worthwhile to offer this fair and to catch
problems that may have otherwise gone unnoticed,” said
Randy Skagen, vice president and general manager of Nucor
Steel Tuscaloosa, Inc.
The fair has been very popular, drawing more than 250
participants in the first year. It has since drawn more than 300
participants each year.
15
16
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
How We’re
Protecting Employees...
Inside and Out
MPLOYEE HEALTH IS A LARGE PART OF OUR SAFETY
MISSION. Our local plants have the freedom
they need to determine how to best address
the employee health challenge. In some cases,
our local plants offer on-site workout rooms to
provide a convenient way to exercise.
For others, local plants offer on-site medical clinics,
which are designed to provide quality medical services to
our teammates and their families, to improve wellness, and to
reduce overall costs for Nucor and our Nucor families.
For example, Nucor Steel – Berkeley and Nucor Steel –
South Carolina together constructed on-site medical clinics
in 2008, which have reduced healthcare costs. Studies show
that most companies save 15 percent to 20 percent annually
!
with on-site clinic services, but for us, it is more than saving
dollars. It’s about saving lives.
THE DOCTOR WILL SEE YOU NOW
Our on-site medical clinics provide several benefits to
teammates, including physician availability, lower medical
costs, more one-on-one healthcare education and greater
access to physicals and health screenings.
Our Nucor Steel – South Carolina on-site medical clinic
offers occupational health and primary care medical programs
and is equipped with three exam rooms, two labs, two
chiropractic rooms, and a massage therapy and occupational
medicine room.
JESSICA ROBINSON (L), ENVIRONMENTAL ENGINEER, AND DANIELLE POWERS, ENVIRONMENTAL INTERN
Nucor Steel – Berkeley
HEALTH & SAFETY
100%
PERSONAL RESPONSIBILITY FOR SAFETY
“One of the most visible benefits for teammates is getting
in to see a physician when they need to, which is important
because many mills are in rural areas, where getting in to see
a physician can take some time,” says Mike Gurley, former
vice president and general manager of Nucor Steel – South
Carolina, now vice president and general manager of Nucor
Steel Memphis, Inc. “Now, teammates can walk to the clinic
instead of taking time off work to go visit a doctor.”
Since the beginning of 2009, teammates and their
families have visited Nucor’s own health clinics more than
2,000 times. More than 80 percent of the workforce and 150
family members have taken advantage of the program. In
addition, more than 83 percent of our teammates have seen
a physician more than once.
Teammates also have access to lower prescription
drug costs.
“We have 47 in-house medications at an average cost of
$7 for a course of treatment. There are only three medications
that cost more than $12—and the most expensive one is
only $14,” continues Gurley. “That’s a significant savings for
employees.”
The on-site physicians are instrumental in teammate
education and preventive programs and can help teammates
make more educated decisions with regard to treatments and
prescription medications.
MORE THAN
13,500
MATERIAL SAFETY DATA SHEETS DISTRIBUTED
TO CUSTOMERS IN 2009
GREATER COST CONTROL, REDUCED ABSENTEEISM
The program has resulted in lower healthcare costs for
the company. We saved $2.6 million last year, excluding
the additional saving realized by increased productivity
and reduced absenteeism.
“As a result of the on-site medical clinics, we’ve
reduced the cost of physician visits, medications, lab
work, imaging and other testing significantly,” says
Gurley. “Having a knowledgeable medical advocate
working on our behalf helps us negotiate better
rates with pharmaceutical and medical technology
companies.”
In addition to Nucor’s financial benefits, the
on-site medical clinics have improved long-term
workers’ compensation case management and
improved team morale.
17
18
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Fifteen Nucor Plants
Earn Coveted OSHA Status
afety first is a mindset that permeates throughout
Nucor’s workforce. That’s why it was no surprise
when six of the company’s facilities received
certification in OSHA’s coveted Voluntary
Protection Program (VPP) in 2009. There have
been two Nucor facilities that have been recognized in
an OSHA cooperative program called the Safety & Health
Achievement Recognition Program (SHARP).
The VPP and SHARP recognizes companies that meet
rigorous safety standards across many spectrums. Adhering
to those standards takes dedication—driven at all levels of
the company and supported by our teammates and
management team.
Since 2005, the VPP has recognized 13 total Nucor
facilities for their comprehensive safety and health
management systems and the SHARP program has
recognized two Nucor facilities. Companies receiving this
designation typically see 60 percent to 80 percent fewer lost
workday injuries than their peers, according to OSHA.
The core of VPP is a meticulous on-site OSHA
evaluation that sifts through all aspects of day-to-day plant
activity. From general housekeeping to confined space
management, to procedures for locking down machines,
companies must show that safety is built into the production
schedule and ingrained in their thinking.
At Nucor’s Decatur, Ala., facility, which recycles scrap
metal to produce steel coils, the VPP process quickly became
a plant-wide, team-building effort. Despite the plant’s
vigorous 24/7 production schedule, the teammates had
plenty of energy to funnel into creating an overall VPP team,
along with 15 specialized teams focusing on issues such as
hazard analysis, emergency preparedness, electrical safety, fall
protection and ergonomics.
Our Decatur facility shared their insight and key
learnings in Pathfinder: Nucor Decatur’s Journey to VPP.
“The VPP process was an incredible team effort that
involved everyone in the mill,” said George Stephenson,
safety coordinator, Nucor Steel Decatur, LLC. “Everyone
was so hands-on that, instead of having a safety coordinator
or two on site, we wound up with hundreds of safety experts
as a result.”
SOME OF THE REVELATIONS PUBLISHED IN THE BOOK:
We can be safe one second at a time, and we’ve proven that
over and over again.
The VPP process brought an awareness to our team that wasn’t
there before. It brought our team closer, because we were working
on projects that would benefit our own safety in the area in which
we work every day.
When it comes to safety, you can be good or even great. But there is
ALWAYS room for improvement.
HEALTH & SAFETY
Rewarding What
We Value Most
t Nucor, we reward our employees based on the
performance we all hold most important: safety.
This is why we established the Nucor President’s
Safety Award, a distinction that is given to
divisions that have an exemplary safety record —
for example, their accident and injury levels are one third of
the Bureau of Labor Statistics’ (BLS) national average for the
industry. While these are lofty standards, at least 70 percent of
our company’s divisions meet or exceed this benchmark.
THE 2009 PRESIDENT’S SAFETY AWARDS
WERE GIVEN TO 36 FACILITIES. TO SEE A
FULL LIST OF THE PLANTS THAT EARNED
THIS IMPORTANT RECOGNITION, GO TO
WWW.NUCOR.COM
HEALTH AND SAFETY PERFORMANCE INDICATORS
GRI NUMBER
DESCRIPTION
REPORTED
PAGE
ASPECT: OCCUPATIONAL HEALTH AND SAFETY
LA6
Percentage of total workforce represented in formal joint management–worker
health and safety committees that help monitor and advise on occupational
health and safety programs.
Partially Reported
14, 17
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and number
of work-related fatalities by region.
Partially Reported
14-15
LA8
Education, training, counseling, prevention, and risk-control programs in place
to assist workforce members, their families, or community members regarding
serious diseases.
Partially Reported
17
19
WE HAVE ONE OF THE MOST MOTIVATED AND BEST-TRAINED
WORKFORCES IN THE INDUSTRY. NUCOR STEEL – HERTFORD
DID NOT LAY OFF ANY EMPLOYEES DURING THE 2009 ECONOMIC
DOWNTURN DUE TO LACK OF WORK.
! Stephen Bond, an employee
at our Hertford, N.C., facility, is
welcomed home by his family. Bond
says he’s grateful for the peace of
mind Nucor provides his family.
E MPLOYEE RELATIONS
EMPLOYEE RELATIONS
IT’S OUR
“At Nucor, people get what they
ought to get from their work:
Good pay. Real job security.
Interesting challenges. Respectful
treatment. The chance to accomplish
something every day. A fair and
equitable workplace. The pride
of being a part of a very
successful enterprise.”
“When is laying people off
the
practical
“Our company’s success
is the directwe
result ofexpect
our most
or sensible thing to do? Can
valuable asset—our employees.
They motivated
give Nucor its innovativeif we
employees to be loyal and
culture and competitive edge.”
lay them off at every dip of the economy,
while we go on padding our own pockets?”
– Ken Iverson, 1987
KEN IVERSON
DANIEL R. DIMICCO
1962—1998
1982—PRESENT
21
22
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
We Are Nucor
Nucor’s most valuable asset is our teammates.
Empowering, training and challenging our team is the essence of Nucor.
Managers, supervisors and hourly teammates working side by side are commonplace as we strive
to reach our goals. Compensation plans provide incentives for everyone at Nucor to be rewarded
for his or her performance. Nucor teammates thrive on the opportunity to excel,
and Nucor rewards that performance.
The bottom line? Nucor teammates are rewarded for taking care of their customers.
We are always striving to improve every aspect of our business. We are never satisfied.
As soon as we reach a goal, we establish a new one and begin reaching for it.
Importantly, we recognize that our teammates are our greatest asset. We ARE Nucor.
E MPLOYEE RELATIONS
steel
resolve
N AN ECONOMY WHERE THE MANUFACTURING SECTOR
LOST TWO MILLION JOBS OVER A 19-MONTH PERIOD
ENDING IN JULY 2009*, NUCOR DID WHAT WE ALWAYS
DO DURING CHALLENGING TIMES: WE SHARED THE PAIN.
We protected one another, and we persevered.
“The morale is miraculously high at Nucor,” said
Kevin Barksdale, a production manager at Nucor Cold Finish
Nebraska. “When the economy recovers, we know we will
again share in the bounty of the good times.”
At Nucor, we use an incentive pay system that has led us
to a practice of not laying off employees in a down economy.
We have found that when everyone in the company takes a
pay cut, all employees are incentivized to work together to
ensure our company’s success. When market conditions are
difficult, Nucor employees are not laid off. Instead, they work
to optimize our systems, receive cross-training, and perform
maintenance so that we are positioned to take full advantage
of improved market conditions when the economy grows
again. Our wholly owned subsidiaries, David J. Joseph and
Harris Steel Group, do not participate in the Nucor incentive
pay system.
We retained 93 percent of teammates from 2008 to 2009.
We lead the industry in tons of steel produced per employees
and, as a result, we’re consistently one of the lowest-cost
producers in North America.
continued 1
* Source: National Association of Manufacturers’ Annual Labor Day Report.
EMPLOYEE RETENTION
93%
!
PRODUCTION LINE
Vulcraft – South Carolina
|
PER YEAR
2009
23
⁄10%
TOTAL AVERAGE EARNINGS
FOR NUCOR EMPLOYEES IN 2009
OVER PREVIOUS YEARS
!
CHRIS JONES — strand tender, Nucor Steel – Texas
Our employees are the reason for our success as a company, and they are why
we are known as cultural and environmental stewards in the community.
E MPLOYEE RELATIONS
ATTRACTING, KEEPING THE BEST
Nucor is committed to the ongoing development and
education of our employees and offers a number of
programs to accomplish this, including NuPerformance,
a curriculum that ensures Nucor teammates are given
the resources they need to reach their personal and
professional goals.
Instead of a template career path, Nucor teammates
have the opportunity to take responsibility for their career
progression. Entitlement never plays a role in a teammate’s
progression. Hard work and perseverance alone are rewarded.
Additionally, we have continued hiring and recruiting
both experienced workers and college graduates. Nucor has
been quietly stocking up on the best and brightest in the
industry.
“We’ve continued to build our pipeline because we
think about talent in the long run,” said Dan Krug, director,
human resources and organizational development at Nucor
Corporation. “When the economy rebounds, we will be in
the best position to take advantage of every opportunity.”
2009 TOTAL WORKFORCE
|
BY REGION
1,380
18,900
..................................... CANADA
..................................... US
............ TRINIDAD
110
Nucor has programs in place to recruit minorities
and women to our workforce. For example, in May 2010,
the company opened the Nucor Education and Resource
Center on the Tuskegee University campus in Alabama, one
of the top historically black universities in the United States.
This facility will help educate approximately 50 students
annually.
Additionally, Nucor is a major sponsor of the
National Society of Black Engineers, the Society of Women
Engineers, the Women Engineering Proactive Network,
Association of Women in the Metal Industries, and the
National Association of Multicultural Engineering Program
Advocates. Annually, Nucor donates approximately $100,000
to these important organizations.
“We invest and support engineering diversity programs
at a number of universities,” says Wayne Robinson, Nucor
Corporation talent recruiting manager. “Our goal is to
ensure Nucor has exposure to the diverse population on
each campus.”
Nucor has a robust benefits package, and our support
for employees does not end there. Our Nucor Foundation
Scholarship Program offers scholarships for every child
of every employee for four years of their post-highschool education.
Finally, Nucor is committed to ensuring that all
employees are treated fairly. There are no reserved parking
spots, no special vacation plans and no first-class travel perks.
Our success is driven by teamwork. It is why we call our
employees “teammates.” Our teammates are the reason for
our success as a company and also why we are known
as cultural and environmental stewards in the community.
25
26
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Paying for Performance
any industrial companies pay for the hours an
employee works. Regardless of the quality or
the quantity of the type of product produced,
employees receive the same pay. Nucor, as usual,
does it differently.
Quite simply, we pay for performance. In Nucor
facilities, that means pay is tied directly to the amount
of quality steel produced each day. For administrative,
professionals and management, it means how well the
company performs overall.
The production bonus system compensates teammates
for the time and effort they put into improving the process
—including safely delivering higher quality product and
operating more efficiently. This approach means teammates
are compensated well when high-quality, on-spec products
are being manufactured and sold.
“Each teammate, from the CEO to our teammates at
the divisions, is compensated under the pay-for-performance
model,” said Donovan Marks, director of benefits and
compensation for Nucor Corporation.
TYPES OF COMPENSATION
While our teammates rely on their hourly rate or base salary
for hours worked, three of the sources in Nucor’s teammate
compensation package—bonus/incentives, profit sharing and
the 401(k) match—vary along with company performance.
As a result, while our teammates may start with a lower
base pay than counterparts, through their performance
they can—and have—become some of the most wellcompensated employees in the industry.
Teammates are compensated in three additional ways:
performance of the company. Historically, teammates are paid an extraordinary bonus in a year in which Nucor achieves record earnings. In fact, with our record earnings in 2008, even though the market by then had stalled, Nucor still rewarded
our teammates with an extraordinary bonus.
•
Profit Sharing. The company has traditionally set aside
10 percent of earnings before taxes and gives this amount to employees in the form of profit sharing. Employees 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—it increases in good times.
This pay-for-performance model enables Nucor to share its
success with the reason we are successful: our teammates.
Employee Relations Principles
The four employee relations principles are beneficial to
Nucor’s workforce and another reason the company’s
employee turnover is approximately seven percent per
year, according to Marks.
2 Teammates have the opportunity to earn according to their productivity.
2 Teammates should feel confident that if
they do their jobs properly, they will have
a job tomorrow.
2 Teammates have the right to be treated fairly.
•
Bonuses/Incentives. Bonuses are an essential part of our compensation program. 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 employees receive a bonus based on overall 2 Teammates must have an avenue of appeal
when they believe they are being treated unfairly.
E MPLOYEE RELATIONS
Promoting From Within…
All the Way to the Top
e could tell you about how much we at
Nucor believe in promoting from within
our own ranks. Or we could simply point to
the remarkable career path of Dan DiMicco,
who started as a metallurgist in one of our
production facilities and rose to become our chairman
and CEO.
Hired in November 1982, Dan DiMicco began his
Nucor career as a metallurgist. By 2000, only eighteen years
later, he became president and chief executive officer. Then,
six years later in 2006, he became the chairman of the board.
Dan DiMicco, like so many others throughout the
company, is a testament to our belief that, with hard work
and talent, our teammates have limitless potential.
“At Nucor, you can take your career as far as your
abilities and desire can take you,” he says. “You can be the
best engineer you want to be or the best manager you want
to be.”
Dirk Petersen couldn’t agree more. Petersen started as
a sales engineer at Vulcraft – Nebraska in 1979. Today he is
Nucor Steel Nebraska’s vice president and general manager.
Petersen credits his success to Nucor’s willingness to
empower teammates to take risks and make decisions.
“Nucor doesn’t put us in any boxes,” he said. “To me,
that means you have boundless opportunities here, and you
can do just about anything if you put your mind to it.”
Ron Dickerson got his first taste of Nucor culture in
1988, when he was hired as a frontline worker in the hot
rolling mill at our Crawfordsville, Ind., plant. By 1992, he
was promoted to supervisor and, after successive roles as hot
mill manager and cold mill manager, Dickerson was named
general manager of the Crawfordsville plant.
“Every now and then, I get folks who call me and ask
me how I did it,” said Dickerson. “I don’t have a college
degree, but I am willing to take on responsibility. I did the
2009 WAGES
|
P E R YEAR
$47
THOUSAND
AN ENTRY-LEVEL STEEL MILL
WORKER WITH BONUS
$15
THOUSAND
A PERSON WORKING AT THE FEDERAL
MINIMUM WAGE RATE OF $7.25 PER
HOUR AND WORKING A TOTAL OF
2,080 HOURS
same things that Dan DiMicco and others did: you do your
job, and then you do a little bit more.”
Hamilton Lott, Jr., now the executive vice president of
the fabrication division at Nucor’s corporate office, started
out as a design engineer in 1975 at Vulcraft’s facility in
Florence, S.C. After several promotions, Lott moved to Texas
to serve as general manager for another Vulcraft facility. Six
years later, he returned to Florence as general manager. In
1999, Lott moved to the Charlotte, N.C., corporate office
for his current role, starting the same day as Dan DiMicco.
“This is a company that—by and large—promotes from
within,” Lott said. “Many of our employees are working for
people who have been promoted through the company.”
But Lott says the reason he has stayed with Nucor for
34 years is due to his belief in the company’s core values and
the way Nucor treats its employees.
“It’s been a wonderful experience,” Lott said. “I could
not imagine working anywhere else.”
27
28
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
THE NUCOR WAY
01 INTEGRITY
05 WORK ETHIC
08 TREAT PEOPLE
02 PERSONAL RESPONSIBILITY
06 PRIDE
03 TEAMWORK
07 INNOVATIVE/INTELLIGENT 09 OPTIMISM
04 OPEN COMMUNICATIONS
10 CAN-DO ATTITUDE
RISKS
THE RIGHT WAY
Nucor Teammates:
Our Secret for Success
Harvesting the Best Talent
During the recession of 2009, many talented people were
ny company is only as strong as its employees.
At Nucor, we understand that helping our
teammates be successful is the only way we
can continue to thrive and grow in the future.
That is why we developed NuPerformance,
a curriculum that ensures every Nucor employee is
given the resources he or she needs to reach personal and
professional goals.
At the heart of this curriculum is the personal
continuous improvement (PCI) process, which helps
employees identify their strengths and weaknesses, and
holds them accountable for continually improving.
“The PCI process is an important part of Nucor’s
growth strategy,” said Dan Krug, director, human resources
and organizational development at Nucor. “It communicates
Nucor’s plan for the future and identifies how each
teammate fits in to that plan.
“It’s a process that includes everyone in Nucor’s growth
and success.”
A key element of the NuPerformance curriculum and
the PCI process is the Nucor Way, a list of 10 of the most
important values that describe Nucor’s culture.
“We consider our culture to be our biggest competitive
advantage,” Krug said. “For us to remain successful, we need
to make sure we are living up to—and helping others live
up to—the Nucor Way.”
looking for work.
One such person was Stephen Bond. Laid off from his
manufacturing job in North Carolina early in 2009, Bond
spent more than 10 months looking for a job.
Unlike other companies in the area, Nucor was
looking to build and strengthen our teams with talented,
motivated employees. While other companies were laying
off employees, Nucor was hiring and recruiting talented
people to join our ranks.
Bond had friends at Nucor, and had long admired
Nucor’s generous benefits and compensation. So, in late
2009, Bond joined the Nucor team.
“I was able to get one of the premier jobs in the
area—in the state, actually—during the absolute worst time
in the local economy,” Bond said. “Now I come home at
the end of the day and I know my family is secure.”
Although Bond is happy to be working for Nucor,
he hasn’t forgotten all of the people who are still unable to
find work.
“I don’t take my job for granted,” he said. “I go in
there every day and work to the best of my ability.”
E MPLOYEE RELATIONS
Strong Future Yields:
The Nucor Foundation Scholarship Program
t’s no secret that we invest in our employees.
But we also invest in their children. The Nucor
Foundation Scholarship Program is evidence
of this investment.
Through our program, we provide a
scholarship or educational disbursement for every
child of every employee for four years of post-highschool education at $3,000 per year.
Despite the troubled economy in 2009, we
provided a record $4.4 million to nearly 2,000 students.
The Nucor Foundation has been one of the most
popular programs among our teammates—especially
with the rising cost of higher education—and has
created a tremendous amount of company loyalty.
Ken Iverson, the founder of Nucor, started the Nucor
Foundation in 1974 to support our families.
“We are firm supporters of education and
believe that the economic and social progress of
the nation is built upon furthering education,”
said Liz Wells, Nucor Corporation’s human
resources and scholarships supervisor. “The Nucor
Foundation is an excellent way for us to encourage
personal, community and national development.”
When you consider those kinds of returns, we can’t
think of a better investment in the future.
THE NUCOR FOUNDATION
SINCE ITS INCEPTION, WE HAVE GIVEN MORE THAN $52 MILLION TO
10,500 STUDENTS AT MORE THAN 1,300 DIFFERENT COLLEGES. IN
2008, NUCOR PAID OUT $4.2 MILLION IN SCHOLARSHIPS TO NUCOR
SCHOLARS. IN 2009, NUCOR PAID OUT A RECORD $4.4 MILLION.
29
30
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
How We’re Training Our Engineers
Long Before They’re Hired
ne of the advantages of being known as a great
company to work for is that there never seems
to be a shortage of strong prospective employees.
In fact, it’s not unusual to have hundreds of
qualified people apply for a single production
job opening at one of our plants.
In addition to the quest for qualified production people,
we are also working to encourage the new generation to
pursue engineering, as fewer and fewer choose that field
of study.
“The trend at universities today is to phase out
programs in steel, alloys and metallurgy in favor of
composites, nano materials and newer technologies,” states
Dr. Hesmat Aglan, associate dean of engineering, Tuskegee
University. “The conventional departments of 20 or
30 years ago have transformed to materials science and
engineering. As a result, there’s now a shortage of trained
steel designers.”
To reverse this trend, Nucor is working with more than
30 universities to actively recruit graduates and, in some
cases, actually help train students.
At Tuskegee University, for example, we have established
the Nucor Education and Research Center (NERC), which
is designed to showcase the best undergraduate students and
lead them into careers in metallurgy and steel manufacturing
technologies.
“You hear a lot of talk about the importance of students
getting a real-world education,” said Wayne Robinson,
Nucor Corporation’s talent and recruiting manager. “Nucor
is making sure students are getting just that.”
$2.1
MILLION+
AMOUNT DONATED TO THE F. KENNETH IVERSON
CHAIR OF STEELMAKING TECHNOLOGIES
AT MISSOURI UNIVERSITY SINCE 2006
E MPLOYEE RELATIONS
Giving to Those Who Give So Much
Nucor has long been a proponent of education. But that’s not just
Each teacher received grants of $200 to $500.
ensuring our employees’ children have money for college. We have
also given grants to teachers in our local communities to help with
despite the economic downturn of 2009, Nucor was able to
their educational efforts.
continue to donate to schools and teachers.
For example, in 2009, Charlie Zurcher and Steve Rowlan of
Nucor presented dozens of teachers at the Cache County School
What makes these gifts even more extraordinary is that
This is just one example. Across the country, Nucor makes
these grants in most locations where facilities exist.
District in Smithfield, Utah, with grants totaling $12,000.
LABOR PRACTICES AND DECENT WORK PERFORMANCE INDICATORS
GRI NUMBER
DESCRIPTION
REPORTED
PAGE
ASPECT: EMPLOYMENT
LA1
Total workforce by employment type, employment contract, and region.
Partially Reported
25
LA2
Total number and rate of employee turnover by age group, gender, and region.
Partially Reported
23
LA3
Benefits provided to full-time employees that are not provided to temporary or
part-time employees, by major operations.
Completely Reported
26
ASPECT: ECONOMIC PERFORMANCE
EC1
Direct economic value generated and distributed, including revenues, operating
costs, employee compensation, donations and other community investments,
retained earnings, and payments to capital providers and governments.
Partially Reported
27, 51,
67
ASPECT: MARKET PRESENCE
EC5
Range of ratios of standard entry-level wage compared to local minimum wage
at significant locations of operation.
Completely Reported
27
EC7
Procedures for local hiring and proportion of senior management hired from the
local community at locations of significant operation.
Partially Reported
27
EC9
Understanding and describing significant indirect economic impacts, including
the extent of impacts.
Partially Reported
50-51
31
IN 2009, NUCOR CONTINUED TO INVEST IN REDUCING
OUR ENVIRONMENTAL FOOTPRINT.
! THE LARGEST RECYCLER IN THE
WESTERN HEMISPHERE. Because we
use scrap as our primary feedstock,
Nucor prevents millions of cars from
heading into landfills every single year.
E N V I RO N M E NTAL PERFORMANCE
ENVIRONMENTAL PERFORMANCE
IT’S OUR
“Steel is the most recyclable product
in the world.You can build a house
from steel derived from about eight
old cars, using materials that are
entirely recyclable, and save about
a dozen trees. And that house will
stand indefinitely. We want to get the
facts about steel to consumers.”
“Protecting the environment
is critical to the communities
in which we work, our
operations and the company’s
long-term success.”
KEN IVERSON
DANIEL R. DIMICCO
1962—1998
1982—PRESENT
33
34
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Environmental Vision
Nucor continues to be a leader by raising the bar by which steel mills
and recycling centers should be judged. With most of our operations equipped with continuous
emissions monitors, Nucor not only talks the talk but walks it as well. Nucor’s policy that
“environmental compliance is the individual responsibility of every Nucor employee” clearly shows
that it is our culture that makes the difference.
A company that is built on the model of recycling steel in massive volumes is truly founded
on a sustainable model—Nucor was founded on the principle of making reinforced steel and light
structural shapes with scrap metal. Nucor, from the beginning to this day, has and continues to
push recycled content into steel products where recycled content was not considered viable.
We have been so successful that, today, most domestically produced steel contains some
amount of recycled steel.
The commitment to the environment runs deep in Nucor culture, where investments are continually
being made to improve equipment and performance, recycle materials and reduce waste, and,
finally, to perfect new technologies that reduce emissions and increase energy efficiency.
Quite simply, our long-term goal is twofold:
1. we want to recycle all steel products.
2. we want all steel products to have recycled content.
At Nucor, our culture drives us to define the standard rather than simply meet it.
That is the reason one inspector simply said, “I wish everyone would do this.”
E N V I RO N M E NTAL PERFORMANCE
Investing
Despite the Economic Downturn
UCOR HAS HISTORICALLY BEEN KNOWN FOR
MAKING DECISIONS THAT WERE GEARED TOWARD
LONG-TERM SUCCESS. THE DOWNTURN OF 2009
WAS NO EXCEPTION. We used the lull in production
to make further improvements to our plants—at
a time when many of our competitors were shutting down
some of their facilities. We improved our facilities and became
even more lean and efficient—although we were already
among the most energy-efficient companies in the world.
be wasted—lowering energy use and costs even more.
How are we doing? Very well, when you consider how
the United States measures steel manufacturers’ energy
consumption in energy intensity per ton of steel. Thanks
to our approach to sustainability, Nucor beat the category’s
industry average. And when you consider that American steel
companies lead all other countries in energy efficiency, it’s not
a stretch to say we’re among the most energy-efficient steel
companies in the world.
1. OPERATIONAL ENHANCEMENTS LOWER COSTS,
INCREASE EFFICIENCY
We have always been focused on lowering our energy
and water use per ton of steel produced across all of our
facilities. It’s good for the environment and good for business.
In 2009, we continued installing technology that reduces
our energy use during peak times when supplies are lower
and prices are higher. This approach not only trims our costs,
but it also reduces the likelihood of a work stoppage as a
result of a brownout.
“We’re not just talking about installing energy-efficient
bulbs. We’re thinking bigger,” says Brian Avery, environmental
manager for Nucor Steel Decatur LLC. “We’re incorporating
computerized controls on large horsepower motors and
pumps. These controls restrict energy use to non-peak hours,
which will save the company millions annually and reduce
our environmental footprint.”
In addition, we’re incorporating energy-recovery systems
in our mills to capture and reuse energy that would normally
2. PEOPLE MAKE THE DIFFERENCE
We continued to invest in our teammates’ development
even during the economic downturn.
One example is our ongoing investment in our
Environmental Boot Camp program, a sustainability initiative
that aims to improve our environmental compliance and
operational support, while ensuring employees understand
how to operate and maintain environmental equipment.
“Environmental professionals are grouped into one of
four categories, based on their roles at the company,” said Jeff
Braun, environmental affairs manager at Nucor Corporation.
“These categories include environmental managers, engineers,
coordinators and technicians. These groups meet at least
once a year to discuss sustainable best practices. They share
‘lessons learned’ with colleagues when they return to their
respective facilities.”
In addition to meeting as individual groups, teammates
in the program also meet for a week-long session to explore
how to further develop sustainability initiatives at the
continued 1
35
36
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
HOW NUCOR CO NTINUALLY
INVESTS IN EN VIRONMENTAL
PE RFORMANCE:
CAPTURE
& REUSE
ENERGY THAT WOULD NORMALLY BE WASTED
CONTINUED
INVESTMENT
OF COMPANY RESOURCES INTO
ENVIRONMENTAL BOOT CAMPS
ISO 14001:2004
CERTIFICATIONS
company. Our teammates participate in ongoing peripheral
training classes on such topics as radiation safety officer
responsibilities.
“Nucor takes its Environmental Boot Camp program
seriously. We spend up to $50,000 on each of these
meetings, because they are key to our sustainability and
safety objectives,” says Jim Sheble, vice president and general
manager, Nucor Steel Jackson, Inc.
3. SETTING THE INDUSTRY STANDARD
One of the ways we are doing our part to make the world
a better place is by achieving ISO 14001:2004 certification.
In fact, 42 of our facilities have achieved this certification.
Achieving ISO 14001:2004 certification means that
Nucor mills put an Environmental Management System in
place that makes environmental commitment each teammate’s
responsibility—not just the environmental department.
This approach ensures the environmental policy becomes
a motto for each facility. The entire facility is evaluated for
how significantly it can impact the environment. There are
measurable objectives and targets in place, such as reducing
the use of oil and grease, minimizing electricity use and
implementing site-wide recycling programs.
continued 1
“NUCORIZE”
NEW PLANTS AND FACILITIES
!
CALVIN BROWN
—Roller Assembler, Nucor Steel Texas
Nucor teammates are the key ingredient in
helping us meet our environmental goals.
E N V I RO N M E NTAL PERFORMANCE
The Environmental Management System looks at
the environmental performance of an entire facility in a
comprehensive way.
“Nucor is committed to ISO 14001 certification because
ISO-certified facilities run better,” continues Sheble. “Our
first plant was certified in 2001 and we never looked back.”
$25.7
MILLION
AMOUNT NUCOR APPROVED FOR CAPITAL EXPENDITURE
REQUESTS FOR ENVIRONMENTAL PROJECTS IN 2009
4. GROWING BY LEAPS AND BOUNDS
The current economic environment hasn’t slowed
Nucor’s production expansion strategy.
Last year, we established a new galvanizing line at our
Decatur, Ala., plant to support the automotive industry.
We built a second strip-casting plant in Blytheville, Ark., and
added a heat-treat product line at our Cofield, N.C., facility.
“We also started up our Kingman, Ariz., facility, which
supports our West Coast customers and opened a Memphis,
Tenn., plant to produce large windmill components, among
other products,” explains Mike Gurley, vice president and
general manager, Nucor Steel Memphis, Inc.
What do building new mills have to do with our
environmental mission? First, they are key to sustaining our
customer relationships. We provide the most value to our
customers if we can sustain these relationships throughout
the economic cycle. Second, once we acquire plants, we
immediately begin getting them up to Nucor standards. We
call it “Nucorizing.” These newly acquired facilities often
see a drastic change in priorities from past ownership. Safety
and environmental excellence truly become a priority over
production and other commitments.
“By increasing the operational efficiency of the mills we
acquire, we can make them more environmentally sound, not
to mention dramatically reduce the amount of time, space,
energy and manpower required to produce steel,” says Gurley.
I S O 1 4 0 0 1 : 2 0 0 4 C ER T I F I E D N UC O R FAC I L I T I E S
American Buildings Company – Atlantic
American Buildings Company – Midwest
American Buildings Company – South
American Buildings Company – West
CBC Steel Buildings LLC
Gulf States Manufacturers LLC
Kirby Building Systems LLC
NUCON Steel Corporation
Nucor Building Systems – IN
Nucor Building Systems – SC
Nucor Building Systems – TX
Nucor Building Systems Utah LLC
Nucor Cold Finish Nebraska
Nucor Cold Finish South Carolina
Nucor Cold Finish Wisconsin, Inc.
Nucor Fastener – Indiana
Nucor Steel – Arkansas
Nucor Steel Auburn, Inc.
Nucor Steel – Berkeley
Nucor Steel Birmingham, Inc.
Nucor Steel Connecticut Inc.
Nucor Steel Decatur, LLC
Nucor Steel – Hertford
Nucor Steel – Indiana
Nucor Steel Jackson, Inc.
Nucor Steel Kankakee, Inc.
Nucor Steel Marion Inc.
Nucor Steel – Nebraska
Nucor Steel Seattle, Inc.
Nucor Steel – South Carolina
Nucor Steel – Texas
Nucor Steel Tuscaloosa, Inc.
Nucor Steel – Utah
Nucor-Yamato Steel Company
Verco Decking, Inc.
Vulcraft – Alabama
Vulcraft – Indiana
Vulcraft – Nebraska
Vulcraft Of New York, Inc.
Vulcraft – South Carolina
Vulcraft – Texas
Vulcraft – Utah
LEARN MORE AT:
WWW.NUCOR.COM/RESPONSIBILITY/ENVIRONMENT/CERTIFICATIONS/
37
38
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
“Dusting” Off Recycling Efforts
here are a lot of materials to recycle, but one of
the areas of focus for us at Nucor is our dust.
No, seriously. We even recycle dust.
Nucor uses electric arc furnaces (EAFs) to
recycle steel. One of the byproducts is EAF dust.
Due to galvanizing auto bodies, EAF dust contains
enough zinc to be a desired recyclable. Previously, this dust
was sent to landfills for disposal, but as further testament to
our environmental commitment, Nucor recycles the dust by
converting it into usable products.
We capture dust in our state-of-the-art baghouse air
pollution control devices. These devices filter the exhaust
of the furnace to ensure that all of the dust is removed for
recycling.
“This process cleans the air going into our discharges,
removing more than 99 percent of the particulate in the air,”
said John Farris, vice president and general manager, Nucor
Steel Kankakee, Inc. “We then send the dust to a recycler,
where it converts the dust into steel slag, zinc oxide and pig
iron. Afterward, this material can be used in other products.”
We are continually working to increase the percentage
of EAF dust we recycle every year. In 2007, our steel mills
recycled 59 percent of the EAF dust generated by our
operations. In 2009, this total was 87 percent.
PERCENTAGE OF EAF DUST RECYCLED
VERSUS LANDFILL
59%
87%
2007
2009
E N V I RO N M E NTAL PERFORMANCE
Nucor Innovations Lower Greenhouse
Gas Emissions for Steel Industry
ur long history as an innovator in the steel
industry has done more than position us for
growth as a company. It has created lasting
environmental benefits for the entire steel industry.
In 1969, we pioneered the mini-mill concept.
Mini-mills are small-scale steel plants that not only use less
energy in production but also employ scrap as their main raw
material source. That means less wattage and less waste, as we
put old material back to work.
The industry greeted mini-mills with skepticism, but now
60 percent of U.S. steel production comes from mini-mills.
At the heart of the mini-mill process is the electric arc
furnace (EAF). Nucor was instrumental in perfecting the EAF
process.
Each EAF features giant electrodes that are lowered
into the center of the furnace, casting an arc of molten
steel at 3,000 degrees Fahrenheit. The 90 megawatts to 150
megawatts of power produced is enough to melt 130 tons to
170 tons of scrap and iron units into liquid steel in roughly
the same amount of time it takes to bake a cake.
The steel can have typically more than 70 percent
recycled content, contingent on the type of product the minimill is creating. Each EAF can hold the equivalent of several
crushed automobiles’ worth of scrap, keeping them out of
junkyards, landfills or other places where the material would
blight the environment.
In contrast, a traditional furnace, the basic oxygen furnace
(BOF), typically allows for less than 30 percent recycled
content for domestic steel and even lower for foreign steel.
Chalk one up for recycling using Nucor innovation.
IN THE PAST 50 YEARS,
50%
OF STEEL PRODUCED IN U.S.
HAS BEEN RECYCLED*
*SOURCE: STEEL RECYCLING INSTITUTE
NUCOR’S EAF METHOD
TYPICALLY ALLOWS FOR
>70%
RECYCLED STEEL CONTENT
THE BOF METHOD TYPICALLY ALLOWS FOR LESS THAN 30 PERCENT
(TRADITIONAL DOMESTICALLY PRODUCED)
39
40
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
The Nucor Life Cycle Assessment:
Leading the Industry
alking about environmental impact is one
thing. Calculating, documenting and cataloging
environmental impact metrics is another. Again,
we have talked the talk and walked the walk.
In February 2009, we embarked on a complete
cradle-to-cradle life cycle assessment (LCA) to identify the
environmental impacts of our steel bar products produced
by our mini-mill electric arc furnaces (EAF) process. To our
knowledge, U.S. steel producers historically have not created
their own LCAs. Most steel LCAs currently available have
been done by trade associations and are varying composite
averages of both integrated and mini-mill processes.
The market demand for life cycle data on the
environmental performance of steel products is growing
significantly. This demand is being driven by a number of
factors, including:
•
Green building initiatives including the U.S. Green
Building Council (USGBC) Leadership in Energy and Environmental Design (LEED®) certifications that
promote the use of environmentally friendly material
selection in new building construction. Product
comparison with respect to environmental impacts is
being studied for green building material selection.
2009 NUCOR CORPORATION LI FE CYCLE ASSESSMENT SUMMARY * | BY PRODUCT GROUP
ON A
TI N C
C
U TO
OD EQ/
R
P
L O2
EE C
ST LB
ST
SE
A EQ
PH CO 2
E
US LB
/T
ON
CA
ST
FE
LI EQ
OF CO 2
D
EN LB
O
/T
N
CA
ST
G IN
T
M
AS
AR )
W WP N C
NS
L
G O
TO
BA L ( /T
L
O
Q
A
A
GL NTI 2 E
ET
M
AL TE CO
T
T
O
O
TO P L B
H
TO
L
TA
GW
P
TO
NS
P/ T
GW CAS
S
N N
TO TO
BAR
1,326.9
38.6
153.8
1,519.3
5,158,792
3,918,876
0.76
BEAM/PLATE
1,783.6
11.1
172.8
1,967.5
3,551,348
3,493,639
0.98
SHEET
1,794.3
11.1
217.1
2,022.5
6,376,187
6,447,919
1.01
SUMMARY
TOTAL HOT METAL TONS—NUCOR MILLS
15,086,327
TOTAL GWP TONS—NUCOR MILLS
13,860,434
Considering the size of our portfolio, our steelmaking operations’ total global warming potential (GWP)
from cradle to cradle was approximately 13.8 million tons in 2009.
*This study based on 2007 data.
E N V I RO N M E NTAL PERFORMANCE
2009 CRITERIA PO LLUTANTS | L BS PER TON
RECYCLING
MINI-MILL
BLAST
FURNACE
PARTICULATE
MATTER
SULFUR
OXIDES
NITROGEN
OXIDES
CA R BO N
MO N O X I D E
VO L AT I L E
ORGANIC
COMPOUNDS
0.3
0.7
0.1
4.0
0.4
39.8 5.0
0.5 44.0 1.4
DIRECT ENERGY CO NSUMPTION
BY PRIMARY ENERGY SOURCE
4.45 11.6
2006
NUCOR
4.4 10.9 4.25 11.3 4.74
2007
NUCOR ENERGY INTENSITY
NATIONAL INDUSTRY AVG.
| MBTU PER TONS
2008
2009
INDUSTRY ENERGY INTENSITY ACCORDING
TO AMERICAN IRON AND STEEL INSTITUTE
*Data not published in time for this report
•
Regulatory agencies and policy makers who want to stimulate the generation of information on the life cycle performance of materials to support both reductions in the footprint of upstream activities to harvest the
materials as well as more sustainable applications of
materials in products.
In order to respond appropriately to the sustainability
drivers stated above, Nucor has commissioned this LCA study
to identify the environmental impacts of the steel products
produced by Nucor. Our assessment includes our major
product groups, representing the majority of our steel
mill offerings.
The primary goal of this study is to identify the
environmental impact of the significant environmental
contributors throughout the life cycle of Nucor steel products.
The significant environmental contributors to be reported
continued 1
*
100%
PROCESS WATER RECYCLED MULTIPLE TIMES
(NUCOR DOES NOT HAVE ONCE-THROUGH COOLING SYSTEMS)
41
42
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
7.6
BILLION
GALLONS OF WATER WITHDRAWN BY SOURCE
BY NUCOR STEEL MILLS
(DOES NOT INCLUDE RAIN WATER)
2009 TOTAL MATERIAL CH ARGED
SCRAP
13.4
IRON
2.98
|
M I L L I O N S TO N S
are greenhouse gases, ozone depletion, smog generation,
acidification and eutrophication along with renewable and
non-renewable primary energy consumption.
An additional goal is to establish an accurate baseline
for Nucor-produced steel that may be used in future LCA
studies. The results of the LCA study will help Nucor and
other interested customers understand and communicate
the environmental contributions of steel with high recycled
content. To ensure objectivity and transparency, the study
conforms to the requirements of the ISO 14040 standards for
Life Cycle Assessment and has been critically reviewed by an
independent panel.
Included in the cradle-to-cradle assessment of the total
life cycle are the environmental impacts associated with
transportation and processing of the recycled steel. Scrap
metal is gathered, processed and transported largely to Nucor
mills by truck, rail and river barge by Nucor’s subsidiary, DJJ.
Finished steel is transported to the customer and, at end of
life, is recycled as scrap metal and returned to a Nucor mill.
Typically, scrap metal going to a Nucor bar mill is transported
an average of 80 miles by truck or 304 miles by river barge.
The distance and method of transportation are important
in determining environmental impact. Averaging the fuel
usage across the three transportation modes, one gallon of
diesel fuel will transport one ton of steel 303 miles.
What did we find in our first LCA assessment? Our
products have significant environmental advantages over
products of other manufacturers. And our products offer
significant benefits to customers using our products in LEED
certified projects. Our first-year results are included on the
previous page.
“We believe the results of the life cycle assessment
strengthen our position as a primary recycler and
manufacturer of sustainable steel products,” said Steve Rowlan,
director, environmental affairs.
E N V I RO N M E NTAL PERFORMANCE
Steel Producer as an
Environmental Activist?
It’s Our Nature
MANY PEOPLE KNOW THAT AS
THE LARGEST RECYCLER OF STEEL
IN THE WESTERN HEMISPHERE,
Nucor recycles millions of cars.
But did you know that we successfully fought to make
the process of recycling cars even more environmentally
friendly? Nucor has facilitated the removal of mercury
switches from scrapped automobiles.
Nucor participated in an effort to encourage
U.S. car manufacturers to stop installing
mercury switches in cars and to require the
removal of the switches by salvage yard
operators prior to the shredding or
compacting of a vehicle.
As a result of our involvement in these efforts,
automobile manufacturers stopped using mercury switches
in 2002. Today, most states have programs requiring the
removal of the switches by salvage yards before shredding
or compaction. In 2008, we began training independent
scrap yards to recover these
materials. The results have
justified our years of persistence.
According to the End of Life
Vehicle Solutions’ Web site, more
than 3 million mercury switches have
been properly recycled to date.
We will continue our vigilance.
MERCURY SWITCH
MORE THAN 3 MILLION MERCURY SWITCHES
IN THE UNITED STATES HAVE BEEN PROPERLY
RECYCLED TO DATE.
43
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Environmental Responsibility
ucor’s long-standing commitment to the
environment is defined by our policy.
Well, make that “policies.”
We didn’t stop at creating a corporate, “one
size fits all” environmental policy. Our facilities
have adapted our core corporate environmental principles—
and created location- or division-specific policies to ensure
environmentalism is embraced throughout our organization.
Environmental compliance is the responsibility of each
and every teammate.
NUCOR CORPORATION ENVIRONMENTAL POLICY
As the largest recycling company in the Western Hemisphere,
Nucor recognizes our role in protecting the environment.
We value the environment of the communities in which
we operate and recognize its importance to our teammates,
their families and our continued welfare. Protecting the
environment is critical to our operations and the company’s
long-term success. To this end, we endorse these principles to
demonstrate our commitment to the environment.
THE NUCOR PRESIDENT’S
ENVIRONMENTAL AWARD IS GIVEN
TO FACILITIES THAT EXCEED VERY
STRICT REQUIREMENTS.
OUR PRINCIPLES
STANDARDS
• Nucor Corporation and its divisions will comply with the laws
and regulations governing their operations. Environmental
compliance is a priority for Nucor management equal with all
other business functions.
RESPONSIBILITY
• Environmental protection is the individual obligation of each
Nucor employee and a primary responsibility of management.
Nucor also requires contractors, vendors and suppliers to comply
with applicable environmental laws.
STEWARDSHIP
• Nucor recognizes its potential for environmental impact upon
the communities in which it operates.We will continually
strive to minimize these impacts by evaluating our operations
and researching new technologies and opportunities.
PERFORMANCE
To continually improve the effectiveness of our Environmental
Management System, Nucor will:
• Pursue pollution prevention and waste minimization
opportunities
• Investigate and develop technologies and operations that
improve environmental performance
• Regularly evaluate the Environmental Management
System and make appropriate improvements
OUTREACH
• Nucor will strive to foster open dialogue so that we may
effectively communicate with our employees, our neighbors and
other concerned parties.
LEARN MORE AT:
WWW.NUCOR.COM/RESPONSIBILITY/ENVIRONMENT/EMS
E N V I RO N M E NTAL PERFORMANCE
Being Green is
Rewarding at Nucor
rotecting the environment is something we take
very seriously.
Many of the steps we take to reduce our
environmental footprint, including decreasing
energy consumption, have a positive effect on our
bottom line.
To encourage our facilities to continually improve their
environmental metrics, we developed the Nucor President’s
Environmental Award to recognize excellence in environmental
stewardship.
“Our facilities must meet or exceed very strict requirements
to earn the President’s Environmental Award,” said Anna Schorr,
environmental engineer at Nucor Corporation. “The award isn’t
meant to recognize facilities for average performance. It is given
to our top performers who go above and beyond.”
Facilities are measured based on nine criteria including
energy consumption, waste reduction and environmental
compliance.Those facilities that meet or exceed the metrics
developed by Nucor will receive the President’s Environmental
Award.
Our efforts have received recognition externally from
various organizations:
•
In March 2010, Nucor Corporation received the Chemical Safety Award from CSX Corporation, one of the nation’s leading rail-based transportation companies. In order to be eligible, Nucor had to ship more than 600 hazardous material carloads with zero non-accident releases. Based on our performance in 2009, CSX recognized Nucor for safe shipment of hazardous materials by rail.
•
In 2008, Nucor Corporation earned the Green for Profit
Business Award from the Charlotte Business Journal.The 2008
Green Awards were co-sponsored by the Charlotte region chapter
of the U.S. Green Building Council (USGBC).
•
In 2009, Nucor Building Systems – Texas earned the Energy Champion Award, which is issued through the U.S. Department
of Energy’s industrial assessment program.Through this program,
Texas A&M University engineering students worked with the
Nucor Buildings Systems facility to help the college reduce its
energy consumption by 20 percent or more.
•
Additionally, two of our facilities have qualified for the Environmental Protection Agency (EPA) National Environmental Performance Track. Nucor Steel – Nebraska earned the award in 2008 and 2007, while Nucor Steel – Auburn received the recognition from 2002 to 2009. Performance Track recognizes and drives environmental excellence by encouraging facilities with strong environmental records to go above and beyond their legal requirements.
•
In 2007, the South Carolina Department of Commerce named Nucor Cold Finish South Carolina the Recycler of the Year.
•
In 2007, Nucor Fastener – Indiana earned the Industrial Waste Water Plant Award.
•
In 2007, Nucor Steel Jackson, Inc. received the Secretary of Defense Employer Support Freedom Award.
While we have already accomplished a lot to reduce our
environmental footprint, we are always looking for ways to
do more.
“Nucor continues to search for other ways to improve
energy efficiency,” Schorr said. “We do this through research
and investments in new technologies that can facilitate further
reductions in greenhouse gas emissions from the steel-making
and recycling process.”
FOR A COMPLETE LIST OF OUR AWARDS:
WWW.NUCOR.COM/RESPONSIBILITY/ENVIRONMENT/AWARDS
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NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
It Just Comes Naturally: How Nucor Improves Our World
aking part in nature conservancy efforts comes
naturally to our teammates.
In fact, across our company, our teammates have
made a commitment to improving the world
around us—whether that’s planting trees or saving
a bird habitat.
For example, Nucor facilities and teammates in South
Carolina, Indiana and Texas are enhancing their communities
and the environment with tree plantings and tree giveaways.
In Darlington, S.C., our teammates decided to share the fun
with 80 children from the Montessori School of Florence,
S.C., planting 400 trees in Nucor Park and giving the students
a hands-on Earth Day lesson.
“It was the perfect opportunity to combine tree planting
with an Earth Day activity for children,” says Mike Gipko,
environmental manager at Nucor Steel – South Carolina.
Our employees in Crawfordsville, Ind., commemorate
Earth Day by giving away trees at the annual Montgomery
County Flower and Garden Show. Since starting the program
in 2000, they’ve distributed 55,700 trees to Montgomery area
residents. It’s one of the most popular attractions at the flower
and garden show.
Our Nucor Steel – Texas location in Jewett actually has a
certification as a tree farm in the American Tree Farm System.
ENVIRONMENTAL PE RFORMANCE INDICATORS
GRI NUMBER
DESCRIPTION
REPORTED
PAGE
ASPECT: MATERIALS
EN1
Materials used by weight or volume.
Completely Reported
42
EN2
Percentage of materials used that are recycled input materials.
Completely Reported
60
ASPECT: ENERGY
EN3
Direct energy consumption by primary energy source.
Completely Reported
41
EN5
Energy saved due to conservation and efficiency improvements.
Partially Reported
39
EN6
Initiatives to provide energy-efficient or renewable-energy-based products and
services, and reductions in energy requirements as a result of these initiatives.
Partially Reported
39
EN7
Initiatives to reduce indirect energy consumption and reductions achieved.
Partially Reported
45
EN8
Total water withdrawal by source.
Partially Reported
42
EN10
Percentage and total volume of water recycled and reused.
Completely Reported
41
ASPECT: BIODIVERSITY
EN11
Location and size of land owned, leased, managed in, or adjacent to, protected
areas and areas of high biodiversity value outside protected areas.
Partially Reported
47
EN12
Description of significant impacts of activities, products, and services on
biodiversity in protected areas and areas of high biodiversity value outside
protected areas.
Partially Reported
47
EN13
Habitats protected or restored.
Partially Reported
46-47
E N V I RO N M E NTAL PERFORMANCE
“We’ve planted thousands of trees, mostly loblolly pine
and a variety of hardwoods over the years on the site where
we’re located,” says Kim Pritchard, environmental manager for
Nucor Steel – Texas.
The trees also provide wildlife habitat for a local
population of deer and help prevent soil erosion.
Wildlife habitats are also very important to our NucorDecatur teammates because our facility adjoins the MallardFox Creek Wildlife Management Area in Alabama.
Employees at the facility partnered with the Alabama
Department of Conservation and Natural Resources
(ADCNR) to build a birding kiosk site on part of the
northwest loop of the North Alabama Birding Trail. We also
graveled the access road to the kiosk and provided funding for
GRI NUMBER
informational signage at the kiosk.
“Not only do we work in Decatur, but many of us live
here and have family and friends in the area,” said Brian Avery,
environmental manager for Nucor Steel Decatur LLC. “When
we realized we could assist our next-door neighbors and help
educate the public about the wildlife at Mallard-Fox Creek,
we were happy to lend a hand.”
The Mallard-Fox Creek Wildlife Management area is a
1,483-acre site along the southern shore of Wheeler Lake. It
offers many opportunities to view waterfowl, wading birds,
and woodland and grassland songbirds.Visitors can see wood
ducks on the water or mixed flocks of Carolina chickadees,
tufted titmice, migrant warblers and downy woodpeckers in
the wooded area.
DESCRIPTION
REPORTED
PAGE
ASPECT: EMISSIONS, EFFLUENTS, AND WASTE
EN16
Total direct and indirect greenhouse gas emissions by weight.
Completely Reported
40
EN17
Other relevant indirect greenhouse gas emissions by weight.
Partially Reported
40
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved.
Completely Reported
39
EN20
NOx, SOx, and other significant air emissions by type and weight.
Completely Reported
41
EN22
Total weight of waste by type and disposal method.
Completely Reported
38
40-42
ASPECT: PRODUCTS AND SERVICES
EN26
Initiatives to mitigate environmental impacts of products and services,
and extent of impact mitigation.
Completely Reported
EN27
Percentage of products sold and their packaging materials that are
reclaimed by category.
Partially Reported
39
Partially Reported
42
Partially Reported
37
ASPECT: TRANSPORT
EN29
Significant environmental impacts of transporting products and other goods and
materials used for the organization’s operations, and transporting members of
the workforce.
ASPECT: OVERALL
EN30
Total environmental protection expenditures and investments by type.
PRODUCT RESPONSIBILITY AND PERFORMANCE INDICATORS
ASPECT: CONSUMER HEALTH AND SAFETY
PR1
Life cycle stages in which health and safety impacts of products and services are
assessed for improvement, and percentage of significant products and services
categories subject to such procedures.
Completely Reported
40-42
47
NUCOR AND ITS TEAMMATES ARE STRONG SUPPORTERS
AND HARDWORKING MEMBERS IN THE COMMUNITIES THAT
SUPPORT THEM.
! Hillary Edwards, Nucor Steel –
Hertford, stands with Tyreke Sutton
outside of his life-skills and mentoring
home for young male individuals from
the community in Cofield, N.C.
C O M MUNITY RELATIONS
COMMUNITY RELATIONS
IT’S OUR
“To know a company, you have
to know its people. In this crucial
area, as in so many others,
business decision makers
consistently overlook the virtues
of smallness—in this case, of
small towns.”
“We value the productivity,
the work ethic, and the sense of
community that our employees
and their families share where
they live and work. We value
the people and their communities,
and they value our investment and
commitment to them.”
KEN IVERSON
DANIEL R. DIMICCO
1962—1998
1982—PRESENT
49
50
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Community Relations
If there is an area where the various aspects of Nucor culture combine, it is our dedication
to strong community relations. The communities in which Nucor operates are influenced by our
safety, economic and environmental practices. These practices are an essential part of our employee
relations at the community level because that is where Nucor teammates and their families live.
The Nucor culture drives us to make certain that we take care of these communities.
Our Nucor teammates voluntarily participate in academics, local government and sports. Nucor
often financially supports these and other groups. In addition to awarding engineering scholarships
and internships that anyone is free to pursue, Nucor supports the college education of our
employees’ families. Nucor has funded thousands of acres of wildlife preserves, bought hundreds
of 4-H animals and supported programs where our teammates are—and are not—participants.
Equally as important is the impact that Nucor’s purchases have on the local economy.
Contractors, vendors and suppliers, along with their employees and families, live in these
communities—and this further enhances the impact of Nucor and our teammates on
the local communities.
2009 CHARITABLE CONTRIBUTIONS
$3.2
MILLION
$586
THOUSAND
$369
THOUSAND
$256
THOUSAND
$117
THOUSAND
COMPANY
CONTRIBUTIONS
EMPLOYEE
CONTRIBUTIONS
CHARITY
EVENTS
DIRECT CASH
CONTRIBUTIONS
ENDOWMENTS/
SCHOLARSHIPS
(TO UNIVERSITIES OR COLLEGES)
TOTAL CHARITABLE CONTRIBUTIONS
= $4.6 million
C O M MUNITY RELATIONS
The Foundation of
big cities
small towns
and the soul of
HEN WE SET OUT TO REINVENT THE STEEL
INDUSTRY, WE DIDN’T JUST CHANGE HOW STEEL
IS MADE, BUT WHERE IT IS MADE. Most of our
mills are located in small, rural communities—
close to our customers and right in the heart
of the best work ethic in the world.
Nucor understands the importance and the value of
being a good neighbor in these communities. But more than
the value we bring, this philosophy just makes sense.
Indeed, our business hinges on the thriving local
communities in which we operate.
74,888
!
JOSEPH OLIVER, JR., SUPERVISOR
— Vulcraft – South Carolina
HOURS DONATED BY OUR TEAMMATES
FOR COMMUNITY OR SERVICE ORGANIZATIONS
In 2009, our role in supporting these communities
included charitable donations totaling more than $4.6
million and an astonishing level of in-kind contributions,
which tallied nearly 75,000 hours. Those volunteer hours are
the equivalent of more than 35 full-time workers dedicated
to 22 communities.
“That’s the thing about being a good neighbor: you can’t
fake it,” says Hillary Edwards, rolling mill supervisor at Nucor
Steel – Hertford. “Writing checks is always appreciated,
believe me. But what’s really remembered is getting out into
the community and making a difference.”
Edwards speaks from personal experience. He started a
mentoring program for underprivileged children. Edwards
not only volunteers his own time, but also personally leased
a building to serve as a learning center for his organization,
which is now equipped with two computer labs.
His example inspired others in Nucor, including CEO
Dan DiMicco and other senior managers who met with
some of the children and agreed to help support his unique
program.
51
52
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
When Nucor came to town:
triggering an
economic turnaround
in rural america
UR HERTFORD, N.C., PRODUCTION FACILITY IS A
GOOD EXAMPLE OF THE KIND OF ECONOMIC IMPACT
A COMPANY CAN HAVE ON A RURAL AREA. The
plant is credited with triggering an economic
turnaround that has boosted area salaries above the
state average, lowered unemployment rates and helped dozens
of other area businesses.
“Since this mill opened, we’ve invested more than $500
million in the mill and, with the addition of our heat treat
facility that is currently under construction, we will have
$600 million invested by this time next year,” says Terry
Hairston, environmental manager at Nucor Steel – Hertford.
“The facility employs more than 400 individuals—22 percent
of the county’s manufacturing labor force.”
Even though the state’s unemployment rate recently
reached 11.2 percent, the highest since 1976, the Nucor
mill has helped Hertford County register one of the lowest
unemployment rates in Northeastern North Carolina.
“The mill hasn’t laid off a single worker since it
opened,” says Hairston. “We offer a stable work environment
for employees, and while the economy does impact our
production and our pay, we know we have a place to work
tomorrow and that we will be able to provide for our
families.”
continued 1
1999 AVERAGE WEEKLY MANUFACTURING WAGE
IN HERTFORD PRIOR TO NUCOR ARRIVAL
$465
COMPARED TO STATEWIDE AVERAGE $653
2009 AVERAGE WEEKLY MANUFACTURING WAGE
IN HERTFORD AFTER NUCOR ARRIVAL
$970
COMPARED TO STATEWIDE AVERAGE $906
C O M MUNITY RELATIONS
The mill has also raised average wages and improved the
quality of life throughout the county. Our teammates have
been able to purchase homes, pay off debt, send children to
college and quit second jobs.
“In 1999, the average manufacturing wage in Hertford
County was $465 per week, compared to the statewide
average manufacturing wage of $653 per week,” says Bill
Early, executive director of the Hertford County Economic
Development Commission. “In 2009, 10 years after
Nucor opened its mill, the average manufacturing wage
was $970 per week, compared to the statewide average of
$906 per week.”
And Nucor workers aren’t the only ones who are
benefiting from rising incomes: Since we opened the mill,
more than 20 other companies, employing 420 individuals,
have located on or near the site. These companies have
invested more than $32 million in the community.
“The county has seen an increase in inquiries from
Nucor customers seeking to be close to the Hertford mill,”
continues Early. “The Nucor mill in Hertford County
has brought economic advancement with decreased
unemployment and increased wages, retail sales, county
property taxes and economic stability.”
During the recent economic downturn, Hertford
County has remained much more stable than other areas
of the state. The Nucor mill has played a large role in this
stability.
Vulcraft New York Heats Up Involvement
in Community Fire Department
ur Vulcraft New York facility has called the town of
Chemung home for 10 years. During that time, we
have forged a special relationship
with the town’s 18-member
volunteer fire company.
Our employees have helped
with a number of projects for the
department, such as building new
racks for storing fire hoses and
oxygen tanks, installing new steel steps
and repairing a water tank used to fight brush fires.
We’ve even built new barbecue pits.
And we’re not done. This year we’ll assist in constructing
a new 43-foot-by-60-foot building to house fire equipment,
which will be located next to the current station.
“Vulcraft is working with the fire company engineer
to design the building,” says Chemung Fire Chief Karl
Bowers, Sr. “This is a very positive thing not only for the fire
company, but also for the taxpayers.”
We are supplying the joists, C-channels, roof decking and
metal siding, along with furnishing and installing the electrical
components for the building.
Vulcraft is also planning to support Chemung
volunteer firefighters with new lockers for their
gear and a new, lightweight water tank for
its brush-firefighting truck.
“The cooperation is a two-way street,”
adds Scott Bennett, maintenance
supervisor for Vulcraft of New York Inc.
“The Chemung Fire Department has
been a great resource for us as well, as we’ve
used their meeting room for training.”
The fire department awarded a plaque to the facility in
appreciation for all of the help.
“Vulcraft and its staff take pride in the community,
and their overwhelming positive attitude is exceptional,”
Bowers says.
53
54
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Lessons Learned:
Teaching Recycling through Generosity and Donations
ucor doesn’t just recycle. We teach others the
importance of recycling. Nucor does so by using
steel as the medium. Nucor has donated steel for
art competitions and welding practice, as well as
for school bus shelters.
SCRAP INTO ART
Nucor Steel – Nebraska launched the first annual “Ken
Iverson Project” in late 2009, in which we donated bundles
of scrap steel to Norfolk area high schools, colleges and
artists for an artistic sculpture and structure competition and
auction. The competition’s only rule? Only steel could be
used. No other outside materials or hinges were allowed.
The artists showcased their work at the Northeast
Community College Home Show, where 17 sculptures were
voted on by community members.
“It’s beneficial for kids to be rewarded for their
creativity and hard work,” said Jeff Furst, warehouseman
and member of Nucor Steel – Nebraska’s community
outreach team. “If kids continually think creatively, that’s
what we need. That’s our future.”
Winning projects included a windmill (titled “Royal
Flush”), a flag (titled “Freedom Flag”) and a globe with
wings (titled “Home of the Brave”).
WELDING PRACTICE
In Lathrop, Calif., CBC Steel Buildings LLC, a division of
Nucor, supports two local high schools’ welding programs
by donating scrap steel. The scrap is used to practice welding
techniques, which significantly lessens the schools’ need for
purchasing materials.
After the steel is used in welding class, the school brings
the steel back to CBC for recycling; it is then delivered to
our Plymouth, Utah, plant for reprocessing.
The lesson learned? Students are not only able to
increase their welding skills, but they also become an
integral part of the reuse and recycling effort that’s at the
heart of Nucor’s business.
STEEL AS SHELTER
Shortly after the opening of the Newport, Ky., River Metals
Recycling facility, a division of DJJ, one of our teammates,
Arvil Pennington, was looking across the street and saw a
number of the neighborhood schoolchildren arriving at the
bus stop in the pouring rain.
Immediately, he got to work to determine how to build
a bus shelter to protect the kids from inclement weather.
With immediate support from management, Pennington
worked to contact the property owner, school principal and
school superintendent about the plan. After receiving their
enthusiastic support, River Metals Recycling constructed
the shelter in its Greensburg, Ind., facility.
Pennington and his teammates installed the bus shelter
in Newport, and then painted it in the school’s colors.
As icing on the cake, Pennington’s wife
painted the school’s mascot, a pirate,
on two plaques to hang on the shelter.
The kids and school love the
new shelter—and wrote a frontpage story about River Metals
Recycling’s generous deed in
their school paper.
C O M MUNITY RELATIONS
Crusading to Put Americans Back to Work
egardless of how Americans feel about
healthcare, financial reform, budget deficits, the
economy or the size of government, one thing
they can all agree on is the need for jobs. Jobs
directly impact the economy, and many argue
that this country cannot reignite its vigorous
economy without putting Americans back to work.
We have been talking about the importance of
American manufacturing and jobs for years. Our CEO,
Dan DiMicco, has been crusading to safeguard American
jobs by encouraging our country’s leaders to make job
creation their number one priority.
DiMicco understands that jobs can be created and
sustained only if we invest in our country and rebuild our
manufacturing sector. He is quick to point out how unfair trade
practices are eroding good-paying jobs for American workers.
He is passionate about jobs. He’s been featured in
numerous news articles and broadcast segments, penned
an article for the Wall Street Journal and testified before
Congress on the importance of job creation and trade
policies. There is a section on our Web site dedicated
to taking this critical message around the nation and
to our elected officials.
DiMicco is a powerful advocate for the American
worker, and he’s attracted the attention of people in high
places. In July 2009, he was invited to the White House for
lunch with President Obama. He—along with three other
CEOs—discussed with the president their perspective on
key business and economic issues.
FIND OUT MORE ABOUT NUCOR’S PUBLIC POLICY POSITIONS:
WWW.NUCOR.COM/VOICE
Steel Made in the USA Meets Higher Quality and Environmental Standards
ne of the most sustainable things about Nucor is
that most of our high-recycled-content products
are “Made in the USA.” That little tag line or small
stamp says a lot about the product and the people
who made it.
“That ‘Made in the USA’ label means we’ve
manufactured our products to certain labor standards that
have been drawn up in the interests of business, workers and
their families,” says Dan DiMicco, Nucor’s CEO. “This labor
law has meaning because it is enforced in an open system
of government with checks and balances. Some countries
have similar laws on the books, but it is entirely up to the
government as to whether to enforce the laws, and the
people have no power or recourse to change things.”
Nucor is continually working with legislators to make
sure that the currency manipulation and illegal dumping of
steel from China does not go unnoticed.
“More than 30 American steel companies, representing
35 percent of our steel-making capacity, have been driven
to bankruptcy by the surge of imported steel, including steel
‘dumped’ onto the market below cost,” adds DiMicco. “More
than 50,000 American steel jobs have been lost as a result.”
Nucor’s American-made products are more than
just locally manufactured products. These products are a
symbol of hard work and dedication, and they stand for the
opportunities given to our teammates and their families—
and are a direct reflection of Nucor’s impact on the
communities where our facilities are located.
“Made in the USA” stands for high-quality, recycled
steel products safely produced in environmentally conscious
facilities.
Now that’s sustainable.
55
“NUCOR’S EXCELLENT RESPONSIVENESS IS CRITICAL TO OUR
BUSINESS,” SAYS WAYNE BISHOP, GENERAL MANAGER OF
CARRY-ON TRAILERS.
! KEEPING CLOSE TO CUSTOMERS.
Paul Sandlin, sales, Nucor Steel –
Texas, talks with Nucor customer
Wayne Bishop.
C U STOMER RELATIONS
CUSTOMER RELATIONS
IT’S OUR
“One of the great advantages
of consistently doing just what
you say you’ll do is the credibility
you gain with customers.”
“Our Goal is to
‘Take Care of Our Customers.’
We are accomplishing this by
being the safest, highest quality,
lowest cost, most productive, and
most profitable steel and steel
products company in the world.
We are accomplishing this by
being cultural and environmental
stewards in the communities where
we live and work. We are succeeding
by working together.”
KEN IVERSON
DANIEL R. DIMICCO
1962—1998
1982—PRESENT
57
58
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Who Are Our Customers?
Throughout this report, we’ve shared that our goal is to “take care of our customers.”
Let’s look at that important word—customer. Customers are traditionally defined as those people
and companies who buy and use our products.
We expand this definition of customer to include the people who live and work in the buildings
made with our products, and those who drive over the bridges and roads reinforced with our steel.
Our customers are also our shareholders—the people who entrust their hard-earned money
to us. And, yes, our customers are each and every teammate.­
So, when we talk about “taking care of our customers,” we mean beyond just satisfying their needs.
At Nucor, it is our job to work together to ensure we are continually improving the customer
experience and bringing new innovations that will improve their lives and their products.
Because our customers—all our customers—are the reason we’re in business.
C U STOMER RELATIONS
mills, and relationships, that can
withstand tough times
UR APPROACH TO CUSTOMER RELATIONS IS PRETTY
SIMPLE WHEN YOU GET RIGHT DOWN TO IT: TAKING
CARE OF OUR CUSTOMERS.
Because every one of our plants, and our
teammates, means so much to our customers,
we do everything we can to keep them
operational—even during tough times. In 2009, all of
our Nucor plants remained open despite the challenging
economy.
“It was great to tell customers that our mill made it
through the tough economy,” said Matt Brooks, sales, Nucor
Steel – Texas. “In the long run, this will give us a great
competitive advantage.”
DECENTRALIZED REGIONAL APPROACH
ENCOURAGES SUSTAINABILITY
Our decentralized approach offers our customers upstream
sustainable advantages because our proximity helps to minimize
costs and our environmental footprint.
Because we use scrap as our primary feedstock, the product
we deliver to our customers is sustainable by its very nature.
“It’s more energy efficient and sustainable to recycle scrap
into new steel than to produce it from iron ore,” says Dave
Smith, vice president and general manager, Nucor Steel – Utah.
This offers an advantage to companies planning to submit
their buildings for LEED certification. Our sustainable products,
energy-efficient manufacturing process and regional presence
help them achieve credits toward certification.
For example, LEED takes into account the distance raw
materials travel to the job site.To earn maximum LEED credits,
this distance has to be within 500 miles. Our network is the
largest in the country, and we can deliver steel from the closest
facility to meet LEED requirements.
continued 1
!
MIKE TAYLOR, LEE FULTON, GRANT ASHLEY AND TOMMY BANKS — Nucor Steel Hertford County
59
60
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
QUALITY PRODUCTS AND UNMATCHED CUSTOMER SERVICE
Nucor provides our customers the highest quality steel
products available. One of the ways we ensure this is by
tying employee compensation directly to product quality.
We empower every employee to stop the line if he or she
sees something that may impact the final quality of
a product.
Another way we ensure quality is by manufacturing
custom products. Many of the products that we make come
from a precise heat, produced to a specific grade quality and
made to a customer’s exact order. For many of the products
we produce, we know who the customer is and in what
application it will be used. This knowledge ensures that
our customers will get the right material for the job.
Nucor’s quality control process and employee
empowerment philosophy extends to customer service
as well.
“Our employees are empowered to not only meet
customers’ expectations, but to also exceed them,” says
Smith. “Our primary goal is to take care of our customers the
best way possible.”
Regulations
in Europe
As we expand the places our steel
products are distributed, we need
to ensure that we are proactively in compliance with other
countries’ regulations.
For example, product registration for a company,
subsidiary or affiliate was initiated with the European
Union (EU) chemicals regulation Registration, Evaluation,
Authorization and Restriction of Chemicals (REACH) at the
end of 2009.
For Commission Decision 2005/618/EC for Directive
2002/95/EC of the European Parliament, and the Commission
Decision of June 27, 2002, amending Annex II of Directive
2000/53/EC of the European Parliament, or restriction of
the use of hazardous substances, Nucor provides an average
concentration range of the prohibited substances in the steel.
Additionally, when certifications are requested, Nucor often
samples products to ensure that the steel is below the threshold
for the specific product.
We evaluate and are committed to meeting the legal
obligations under international environmental regulations in
the course of our global business endeavors.
2009 RECYCLED STEEL CONTENT OF NUCOR PRODUCTS
99.9
82.9
92.2
72.9
99.7
NUCOR
BAR
P RO D U C T S
N U COR
B EAM
P RO DUCTS
NUCOR
PLATE
PRODUCTS
NUCOR
SHEET
PRODUCTS
VULCRAFT
STRUCTURAL
PRODUCTS
TOTAL NUCOR STEEL COMBINED: 91.7
|
P E R C E N TAG E B Y TOTA L W E I G H T
72.7
67.9
72.9
99.9
94.7
91.3
VULCRAFT
DECKING
NUCOR
BUILDING
GROUP
NUCON
LIGHT GAUGE
FRAMING
NUCOR
FASTENER
PRODUCTS
NUCOR
WIRE
PRODUCTS
NUCOR
COLD
FINISH
C U STOMER RELATIONS
On the Road to in the Road
very day, cars literally drive on top of other cars.
It’s not reason for concern—it is by design.
Old automobiles comprise part of the more
than 80 million tons of steel recycled each year
in North America, according to the American
Iron and Steel Institute. By weight, steel is the most recycled
material. And Nucor is the largest recycler in the Western
Hemisphere of post-consumer scrap metal.
Metal made from this post-consumer scrap is extremely
well suited to make rebar, which is commonly used as
reinforcement in concrete structures. Rebar is used to
reinforce buildings, dams, bridges and roads, which is why
cars literally drive on top of other cars.
The journey from car to rebar to road is a study in
post-consumer reuse and recycling.
Once a used car is sold to a scrap processor like
our DJJ subsidiary, the car is crushed at the junkyard and
transported on rail or flatbed to the processor, where it is
MINI MILL PROCESS
|
put into a shredder. The shredder makes small pieces of steel
from large pieces.
The ferrous metals are subsequently separated from
plastic and non-ferrous metals. The ferrous scrap becomes
“shredded automotive,” which is sold to a steel mill.
Nucor has 11 bar mills in the United States, nine of
which make rebar for roadway use.
The environmental benefit doesn’t end with the reuse
of the shredded automotive. Nucor uses electric arc furnaces
(EAFs) in its scrap-melting process, whereas many mills use
basic oxygen furnaces or blast furnaces.
Carbon emissions from EAFs are dramatically less than
traditional blast furnaces and EAFs do not require coal.
Typically, the ratio of carbon emissions from a blast furnace
per ton of steel as compared to an EAF is anywhere from
3:1 to 6:1.
Thanks to Nucor, steel that was once in an automobile
driving on a road is reused as rebar that will go in a road.
F RO M C A R S TO R E BA R TO ROA D S
ELECTRIC ARC FURNACE
TORCH
CASTER
MILL
RUN OUT COOLING
COILER
61
62
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Green Steel
for Green Power
Nucor Steel Memphis:
Three Times as Sustainable
or a wind farm to work, it has to be built where
ur Memphis mini-mill reclaimed and revamped
a former industrial brownfield site, making it a
there are the right atmospheric conditions.
For a field’s wind power to
cleaner, new-production mill—one that provides
be used, it has to be able to get
a secondary benefit to the environment by
to the grid. New wind farms
reusing scrap metal for new products.
But that’s not all.
are being built in North Texas, where the
Nucor Steel Memphis, Inc. produces 20-inch-diameterconditions are very conducive to wind-generated
by-18-foot-long billets, which are used to make the giant
power, but the location required new power lines.
The solution? Using recycled green steel to
turbines that harness wind energy.
build the green transmission towers.
“This is an expanded capability mill, for the special
We partnered with Oncor, an electric distribution
bar quality market,” explains Brian Hill, environmental
and transmission company, and Falcon Steel, a
manager for Nucor Steel Memphis, Inc. “We cast rounds,
transmission tower manufacturer, to win the contract
large round billets and more.”
Specifically, our Nucor Steel Memphis facility
to build 3,800 transmission towers for the Competitive
makes housings for bearings, forging seamless tube
Renewable Energy Zones (CREZ) project over five years.
pipe for natural gas exploration, as well as other
The contract was awarded in early 2009.
All three companies operate in Texas, keeping the
material for moving parts in the automotive
project and jobs in the state.
and heavy machinery industries.
Each of the lattice towers is 120 feet to 130 feet
For the wind turbine work, massive
tall; the completed set of towers will use 80,000 tons
billets the size of telephone poles
of our steel. We delivered the first 14,000 tons of steel to
are shipped to a manufacturer
Falcon in 2009.
that develops parts for the giant
We furthered the green environment by using
turbines. The billets are ringrecycled steel to build the towers, eliminating the need
rolled, heated and then
to mine new raw materials.
machined into a housing.
“For every one kilowatt-hour that we use
The steel shipped for the
turbine work is comprised of up
to melt the steel for recycling, we ‘harvest’ three
to 80 percent recycled scrap metal.
kilowatt-hours invested in the original steel,”
That recycled scrap is then used
said Kim Prichard, environmental manager at
STEEL FOR WIND TURBINES
in a wind turbine that creates
Nucor Steel Texas.
renewable energy.
80%
RECYCLED
SCRAP
customer relations
BMW:
The Ultimate Recycled Machine
MW’s tag line has been “The Ultimate Driving
Machine” for many years, and the auto maker has
long been known for its innovative quality and
performance. In fact, BMW’s frame standards are
so exacting for their required properties that, in
Europe, there were very limited numbers
of steel manufacturers who could
produce the grade required. That is,
until we came along.
Today, many of BMW’s
automotive frames are produced
using Nucor Steel Berkeley’s flatrolled steel and are made using
recycled scrap. Our NuPhase® product,
developed specifically for BMW, is
an important part of the safety design technology
that makes the BMW one of the world’s safest cars—
and very green.
“Our relationship with BMW goes back several years,”
explains Jim Doyle, district sales manager for Nucor’s
automotive business in Charleston, S.C. “We took the lead
with our Berkeley team and developed the grade they need.
“Now the luxury auto maker has realized the
cost saving and ability to source from a domestic mill.
Our responsiveness and team approach has led to other
opportunities with BMW, and we are currently supplying
additional grades to the company,” continued Doyle. “The
mini-mill process, which we pioneered, didn’t exist in Europe
for the manufacture of flat-rolled products, and high valueadded grades were primarily the domain of the
integrated producers. But we demonstrated
that we could do what only a select
number of people could do, and it has
led to an increased confidence level
at BMW.”
NuPhase steel, with its recycled
content, is placed in the frame at some
critical parts of the car body to reduce
weight while improving safety in the
event of a car crash. BMW is at the forefront of the worldwide
automotive industry in the development of the next
generation of green, fuel-efficient cars using electric, hybrid
and advanced diesel technology.
Nucor, with our focus on the environment, is a
natural partner.
After all, “It’s our Nature.”
63
WE OPERATE OUR BUSINESS WITH THE HIGHEST COMMITMENT
TO ETHICS AND UNWAVERING INTEGRITY.
GOVERNANCE
GOVERNANCE
IT’S OUR
“If, during the bad times, we had failed to
look past the short-term consideration of this
quarter’s earnings, would we have gone on to
compile such a record of sustained growth and
profitability? I’m certain we would not.
If management had thought of our employees
as nothing but ‘headcount’—a term that seems
far more appropriate to cattle than people—
would they be as motivated and productive
as they are today? The answer is clearly no.”
“Again, our goal is to
‘Take Care of Our Customers.’
Taking care of our customers means
all of our customers: our employees,
our shareholders and the people
who purchase our products.”
KEN IVERSON
DANIEL R. DIMICCO
1962—1998
1982—PRESENT
65
66
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
The Highest Ethical Standards:
Nucor Governance
Nucor culture is one that respects the individual.
The open door and phone practice of the corporate office and local facilities foster
a culture where all participate and contribute to the progress of the company.
Our employees, neighbors and shareholders should always be treated fairly, honestly
and respectfully. At the same time, we—that’s everyone in our company—should conduct
ourselves in a manner of the highest ethical standards.
As a result, all of our teammates are accessible and accountable.
LEARN MORE ABOUT OUR GOVERNANCE AT
WWW.NUCOR.COM/GOVERNANCE
Governance Policies
Nucor’s policies have helped us become one of the largest and
most profitable steel producers in the world by encouraging
honesty, accountability and the highest ethical standards. Our
policies are grounded in such principles as sustainability, respect
and honesty.
Nucor’s “Standards of Business Conduct and Ethics”
define how we handle conflicts of interest, fair dealing, public
reporting and confidentiality.
Just as we expect our own employees to conduct business
in an ethical, professional way, we also hold our suppliers to
the same standard. In our “Supplier Code of Conduct,” we
promote social responsibility by notifying each contractor and
supplier of our strict code of conduct that includes standards for
environmental impact.
Additionally, we owe it to our employees, investors and
customers to provide the most accurate financial information
possible. Accordingly, our senior financial officers are held to
our “Code of Ethics for Senior Financial Professionals,” and
are committed to acting honestly and with integrity when
preparing Nucor’s financial statements.
GOVERNANCE
KEY FINANCIAL DATA
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE YEAR
2009
2008
2007
NET SALES
$11,190,296
$23,663,324 $16,592,976
GROSS MARGIN
$154,393 $4,051,041
$3,130,049
NET EARNINGS (LOSS)
ATTRIBUTABLE TO NUCOR STOCKHOLDERS
($293,613)
$1,830,990
$1,471,947
NET EARNINGS (LOSS) PER SHARE, DILUTED
($0.94)
$5.98 $4.94
DIVIDENDS DECLARED PER SHARE
$1.41 $1.91 $2.44
CASH PROVIDED BY OPERATING ACTIVITIES
$1,182,297
$2,498,728
$1,935,306
NET INCOME TAXES PAID
$213,200 $952,700 $875,600
WORKING CAPITAL
$3,955,191
$4,543,294 $3,491,213
PROPERTY, PLANT AND EQUIPMENT, NET
$4,013,836 $4,131,861
$3,232,998
LONG-TERM DEBT
$3,086,200 $3,266,600 $2,250,300
STOCKHOLDERS’ EQUITY
$7,390,526
$7,929,204
$5,112,917
AT YEAR-END
S TO C K P E R F O R MANCE
This graphic comparison assumes the
investment of $100 in Nucor Corporation
common stock, $100 in the S&P 500
Index and $100 in the S&P Steel Group
Index, all at year-end 2004. The resulting
cumulative total return assumes that cash
dividends were reinvested. Nucor common
stock comprised 42% of the S&P Steel
Group Index at year-end 2009 (51% at
year-end 2004).
250
DOLLARS
200
150
100
50
2004
NUCOR CORPORATION
2005
2006
S&P 500 INDEX
2007
YEAR
S&P STEEL GROUP INDEX
2008
2009
67
68
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
Taking on the Issue of Forced Labor
In addition to our concern for the environment and safety, Nucor is
Nucor Trade Associations
working to ensure forced labor is eliminated from our supply chain.
One of our key areas of focus is in 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 carbon-reducing
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 must 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 to 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
Nucor plays an active role in the following trade associations
and related groups:
American Iron and Steel Institute (AISI)
www.steel.org
World Steel Association (formerly International Iron Steel Institute)
www.worldsteel.org
Steel Manufacturers Association (SMA)
www.steelnet.org
Association for Iron and Steel Technology (AIST)
www.iss.org
American Institute of Steel Construction (AISC)
www.aisc.org
Steel Recycling Institute (SRI)
www.recycle-steel.org
Steel Framing Alliance
www.steelframing.org
Metal Building Manufacturers Association (MBMA)
www.mbma.com
Concrete Reinforced Steel Institute (CRSI)
www.crsi.org
Steel Joist Institute
www.steeljoist.org
Steel Deck Institute (SDI)
www.sdi.org
United States Green Building Council (USGBC)
National and Local Chapters
www.usgbc.org
State Manufacturers’ Alliances
City/State Manufacturers’ Sustainability Councils
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. We care
about the materials we use to produce our steel, and are aggressively
working to eradicate this problem.
LEARN MORE ABOUT OUR OPERATIONS AND FINANCIAL REPORTING AT:
WWW.NUCOR.COM/INVESTOR
GOVERNANCE
GOVERNANCE PERFORMANCE INDICATORS
GRI NUMBER
DESCRIPTION
REPORTED
PAGE
Completely Reported
04-05
STRATEGY AND ANALYSIS
1.1
Statement from the most senior decision-maker of the organization (e.g., CEO,
chair, or equivalent senior position) about the relevance of sustainability to the
organization and its strategy.
ORGANIZATION PROFILE
2.1
Name of the organization.
Completely Reported
Cover
2.2
Primary brands, products, and/or services.
Completely Reported
09
2.4
Location of organization’s headquarters.
Completely Reported
71
2.5
Number of countries where the organization operates, and names of countries
with either major operations or that are specifically relevant to the sustainability
issues covered in the report.
Completely Reported
09
2.6
Nature of ownership and legal form.
Completely Reported
68
2.7
Markets served (including geographic breakdown, sectors served, and types
of customers/beneficiaries).
Partially Reported
08
2.8
Scale of the reporting organization including:
Completely Reported
05, 68
Number of employees
Net sales (for private sector organizations) or net revenues
(for public sector organizations)
Total capitalization broken down in terms of debt and equity
(for private sector organizations)
Quantity of products or services provided
continued
69
70
NUCOR SUSTAINA B I L I T Y R E P O R T 2 0 0 9
GOVERNANCE PERFORMANCE INDICATORS
GRI NUMBER
DESCRIPTION
REPORTED
PAGE
REPORT PARAMETERS
3.1
Reporting period. (e.g., fiscal/calendar year) for information provided)
Completely Reported
05
3.4
Contact point for questions regarding the report or contents.
Completely Reported
71
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities,
joint ventures, suppliers).
Completely Reported
06
3.7
State any specific limitation on the scope or boundary of the report.
Completely Reported
06
3.9
Data measurement techniques and the bases of calculations, including
assumptions and techniques underlying estimations applied to the compilation
of the indicators and other information in the report.
Completely Reported
42
3.12
Table identifying the location of the Standard Disclosures in the report.
Completely Reported
19, 31,
46, 47,
69-71
4.1
Governance structure of the organization, including committees under the
highest governance body responsible for specific tasks, such as setting strategy
or organizational oversight.
Completely Reported
66
4.2
Indicate whether the Chair of the highest governance body is also an executive
officer.
Completely Reported
66
4.3
For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive
members.
Completely Reported
66
4.4
Mechanisms for shareholders and employees to provide recommendations or
direction to the highest governance body.
Completely Reported
66
4.5
Linkage between compensation for members of the highest governance body,
senior managers, and executives (including departure arrangements), and the
organization’s performance.
Completely Reported
66
4.8
Internally developed statements of mission or values, codes of conduct, and
principles relevant to economic, environmental, and social performance.
Partially Reported
GOVERNANCE
44, 66
GOVERNANCE
GRI NUMBER
DESCRIPTION
REPORTED
PAGE
4.10
Processes for evaluating the highest governance body’s own performance,
particularly with respect to economic, environmental, and social performance.
Partially Reported
66
4.12
Externally developed economic, environmental, and social charters, principles,
or other initiatives which the organization subscribes to or endorses.
Completely Reported
68
4.13
Memberships in associations (such as industry associations) and/or national/
international advocacy organization in which the organization: has positions in
governance bodies, participates in projects or committees, provides substantive
funding beyond rout.
Completely Reported
68
4.14
List of stakeholder groups engaged by the organization.
Completely Reported
12, 22,
34, 50,
58
HUMAN RIGHTS PERFORMANCE INDICATORS
ASPECT: INVESTMENT AND PROCUREMENT PRACTICES
HR1
Percentage and total number of significant investment agreements that include
human rights clauses or that have undergone human rights screening.
Partially Reported
66
Completely Reported
55
ASPECT: PUBLIC POLICY
S05
Public policy positions and participation in public policy development
and lobbying.
FOR MORE INFORMATION ABOUT NUCOR SUSTAINABILITY EFFORTS,
PLEASE CONTACT US AT: SUSTAINABILITY@NUCOR.COM
CORPORATE HEADQUARTERS
1915 Rexford Road
Charlotte, NC 28211
N
71
C O M M I T M E NT TO SUSTAINABILITY
“The people of Nucor stand in sharp, even defiant, contrast
to the status quo. We’re big on informality, caring, freedom,
respect, equality and the simple truth.
“We have little tolerance for the politics, the pettiness,
the fixation on rank and status, and the insensitivity
to employees’ legitimate needs that people
in most big companies endure as a matter of course.”
KEN IVERSON
1962—1998
IT’S OUR
Nature
“Amen, Ken.”
DANIEL R. DIMICCO
1982—PRESENT
WANT TO KNOW MORE ? SEE THIS REPORT AND OTHER ARTICLES @ NUCOR.COM
73
LEARN MORE ONLINE @ NUCOR.COM
A SUSTAINABLE REPORT
1915 Rexford Road
Charlotte, NC 28211