A Message from the Managing Director and CEO

Message from Paul O’Malley

Our Bond guides us to respect the communities where we operate. Our communities are our homes. In 2006/07, environmental issues such as greenhouse gas emissions and water scarcity are matters of increasing public concern. BlueScope Steel recognises these problems and is committed to reducing the environmental effect of our operations. We are responding with a number of programs and initiatives that represent industry-leading environmental practice.

The steel industry is a significant contributor to national and regional economies.  In Australia, BlueScope Steel employs 8,500 people, is one of the country’s largest manufacturing investors, and exported $1.6 billion of steel products in the last year. Worldwide, there are more than 18,500 BlueScope Steel employees.

At the same time, the manufacture of steel consumes finite raw materials, and creates air and water emissions.  Our communities rightly demand that steel producers are environmentally responsible and minimise their environmental footprint wherever it is feasible to do so.

We are acutely conscious of the need to ensure our industry is sustainable, and this objective is receiving increasing focus from the management team and Board.

We are working closely with our communities, suppliers, governments and other stakeholders to reduce our environmental footprint.  Major initiatives include reducing our water consumption, reducing energy intensity, reducing waste, and cutting greenhouse gas and air emissions.  Many of these initiatives are featured in this Report.

At BlueScope Steel, nothing is more important than our safety. This year, we moved closer to our goal of Zero Harm. There were no fatal incidents in the past year, while our injury rates remain at world best standards.

Our Lost Time Injury Frequency Rate (LTIFR) was 0.4*, remaining below 1.0 for the third consecutive year. This is a very positive result and compares very well to the International Iron and Steel Institute rate of around 4.0. Our Medically Treated Injury Frequency Rate (MTIFR) was 6.5*. (*Both rates express incidence per one million hours worked.)

A key factor in this outstanding safety performance was a very high level of employee participation in audits and reporting, and a continued focus on staying safe. Zero Harm is achievable and we will remain diligent in working toward this goal.

Each year, BlueScope Steel supports a variety of community programs around the globe. We work closely with community groups and focus on nurturing youth, assisting the disadvantaged, enhancing community facilities and supporting the arts and cultural activities.

This year, one of our most significant programs in drought-stricken Australia is the Tank A Day Challenge, designed to teach Australian primary school children about water conservation. For every day of the school year, BlueScope Steel will donate a rainwater tank to an Australian primary school. A total of 200 tanks will be donated to schools around the country and some 500,000 primary school students are involved in saving our precious water resources.

We hope you enjoy this year’s Community, Safety and Environment Report and invite you to provide us with your comments. You can send an email to question@bluescopesteel.com

Sincerely,

Paul O’Malley
Managing Director & CEO