ArcelorMittal : Fair Steel Coalition letter

25 April 2024

Dear Filipa,

Thank you for your letter received by email on 23 April 2024. It is regrettable that you chose to give us such a limited time to answer an extended list of very detailed questions, and shared the report with media before we had a chance to reply. This raises questions about the bona fides of your engagement.

We always endeavour to engage with our stakeholders and provide answers to any and all questions posed. But in this instance, given the very limited time within which you demanded a response, we have grouped your questions into themes and provided answers below.

Additionally, I would like to take this opportunity to say that ArcelorMittal takes its corporate responsibility and sustainability responsibilities very seriously. As a large global steel and mining business, we are focused on ensuring we have comprehensive policies and processes in place to manage the impact our operations have on the environment and that we make a positive contribution to the countries and communities in which we operate across all types of capital.

HUMAN RIGHTS

We have revised and updated our Human Rights policy to align with key stakeholder requirements and evolving human rights across our geographies. The new policy applies to our own people and their working environment, the handling of human rights within our value chain, and the rights of the communities within which we operate. Peña Colorada is a joint-venture, and we have been encouraging it to apply similar commitments.

We are focused on respecting the rights of indigenous people in and around our operations and assets, their history, culture, connection to the land, and traditional livelihoods. We are committed to consulting and cooperating with indigenous people based on good faith negotiation to obtain free, prior, and informed consent (FPIC). We seek to reach and will uphold, formalised agreements with indigenous peoples who inhabit, maintain an interest in, or connection to the land and other natural resources on which we operate.

We seek to respect human rights and to develop an understanding of the cultures, customs and values that prevail in our local communities by developing an inclusive and open dialogue with the people interfacing with our operations. Our external stakeholder engagement procedure requires us to conduct an open and inclusive dialogue with local communities, including engaging with often under-

represented groups such as Indigenous Peoples. We have been encouraging the Peña Colorada JV to do the same.

We also seek to avoid involuntary resettlement wherever possible. Where this is not possible, we follow national regulatory requirements and seeks to act in accordance with good international industry practice to minimise the impact through full participation of affected stakeholders and build long-term productive livelihoods in a manner conducive to their well-being and human rights.

CERTIFICATION

We believe that certification schemes with developed, robust ESG standards, in partnership with stakeholders across the whole value chain, are necessary to drive transformation. IRMA has developed standards and assurance mechanisms to enable mining companies to turn high-level environmental and social commitments into action on the ground. We believe committing to this standard is the most effective way to reassure our stakeholders, including First Nations Communities and Indigenous Peoples, that our raw materials have been sourced and produced responsibly and that we operate to the highest ESG standards.

We have committed to implementing IRMA in our mining operations and made substantial progress with IRMA certification in 2023. All our mining segment sites across Canada, Liberia, Brazil, Mexico and Ukraine have completed the IRMA self-assessment phase. The Canadian and Brazilian sites have been reviewed by a third-party consultancy to interrogate the robustness of our self-assessments across 40 criteria, and Liberia and Mexico will complete the same process shortly. We have been encouraging the Peña Colorada JV to implement IRMA certification in their operation as well.

SOUTH AFRICA

ArcelorMittal South Africa regularly engages with its stakeholders. Key information is shared through the Integrated Annual Report and ESG report, and we have ongoing engagements with our stakeholders, including Government, media, investors, employees and community- based organisations such as the Vaal Environmental Justice Alliance (VEJA). In addition, the Social and Ethics Committee (SEC) regularly considers reports on the effectiveness of relationships with stakeholders, including feedback on the nature and frequency of engagements, on a quarterly basis. As an organisation, we will continue to review these processes to ensure they remain effective.

ArcelorMittal South Africa's decarbonisation plan, communicated to the public on 24 January 2023, consists of 25% reduction in CO2 emission intensity reduction by 2030 and aim to be net zero by 2050. This is in line with the ArcelorMittal Group target.

We believe that for targets to be credible they must be achievable. It is counter-productive to give the impression that a considerably higher level of ambition is possible than that which the current political and economic realities support. To decarbonise steel, we need faster progress in the scaling up of

renewable energy, green hydrogen and carbon capture and storage (CCS), all of which are critical to enable the transition to net zero, in all the regions where we operate.

Progress is being made in South Africa with the development of a 200MW embedded solar installation at Vanderbijlpark (43% of Vanderbijlpark's electricity requirements), a solar power purchase agreement expected to come online in Q3 2025 and advanced plans to increase our use of scrap. At the same time, ArcelorMittal South Africa has been progressing pathways to produce direct reduced iron ("DRI"), a technology that uses gas as the reductant rather than coke. This includes in March 2024, a joint development agreement for a wide ranging but detailed techno-economic analysis of the green DRI opportunity as part of a pre-feasibility study at the mothballed facility in Saldanha, Western Cape.

LIBERIA

Since 2021, ArcelorMittal Liberia has on a regular basis embarked on a robust awareness and engagement campaign with the local community as part of the phase II Expansion project. This has been through a variety of mediums including radio, press and in-person meetings. In 2023, ArcelorMittal Liberia updated the grievance procedure in Liberia including the three operational counties of Bassa, Bong and Nimba counties. The Community Relations division has continued to create awareness on the revised procedure including with posters in all impacted communities and the procedure is aired on local radio stations on a quarterly basis.

Environmental controls are in place across the site to ensure that we are constantly monitoring the noise, water and air quality around our operations to ensure they are in line with the strict guidelines set forth by the Environmental Protection Agency (EPA). This includes flying debris from blasting; we have a 500-meter mine safety buffer zone which is off limits to the public. We also continue to communicate effectively with the communities about scheduled blasts, providing a 48-hour notice through bulletins and text. We have a strict protocol in place to ensure that all blasting activities are conducted within regulated standards that minimise the risk of debris being projected outside designated blasting zones. Any grievances are followed up promptly.

The sewage plant in Yekepa has been rehabilitated and fully operational since August 2022. It has been certified and permitted by the EPA, ensuring that all sewage is treated before effectively being released. The plants compliance was re-affirmed by the EPA in a recent assessment performed in March 2024. In Buchanan we are in the process of designing and building a wastewater treatment plant based on circular economy principles. Communities and inhabitants are being provided with additional support during this time, with for example, access to readily available potable water as needed, hand pumps to enable the communities access to clean water and latrines with septic tanks to reduce water contamination in the nearby streams.

The Company security team works with the local community leaders and Liberian National Police. ArcelorMittal Liberia has conducted a train-the-trainer programme on the Voluntary Principles on Security and Human Rights (VPSHR) in 2021 with both internal security, external contractors and the

Liberian National Police. All new security personnel are obliged to undertake this training as a pre- requisite. Private security guards have never used tear gas nor are they authorised to carry tear gas. They are always supported by the Liberian National Police whenever there is an emergency. If any actions are taken by the Liberian National Police to violate the rights and freedoms of the communities and employees around the site, this is escalated and reported to the higher commands.

PENA COLORADA

Peña Colorada is a 50/50 joint venture with Ternium, with an active Board of Directors where local management of both companies participate. Peña Colorada's policies are independent, but they are approved by the Board of Directors considering the policies and standards of both shareholders and local requirements.

Peña Colorada operates within the law, adhering to high international standards regarding human rights and environmental respect. It holds all necessary environmental permits, as well as agreements with the communities where it operates. The company operates with cutting-edge technology and is a significant creator of local formal employment in the states of Colima and Jalisco, where it also makes important contributions to communities through impactful programs in health, education, and infrastructure. Peña Colorada and its shareholders strongly condemn any situation of violence and criminal activity in Mexico. Likewise, it categorically rejects any direct or indirect responsibility, as well as any attempt to link or speculate on their direct or indirect involvement or that of their officials in acts of violence as mentioned in your letter.

Peña Colorada has developed a Comprehensive Social Development Plan to contribute to the well-being of communities near its operations. It aims to have a positive impact through these six action areas: education, infrastructure, culture, recreation and sports, productive projects, health, and environmental culture. For more details, we invite you to review Peña Colorada latest Sustainability Report for 2022, with the 2023 report to be released by August 2024.

Peña Colorada's is committed to the well-being of its surrounding communities, and has provided support to facilitate access to water for human use through the following actions:

• In April-June 2023, invested $350,000 MXN to study water consumption needs in 24 communities. The results of the study will enable the company to design better supply and disposal solutions and better understand key drivers that would make families use water more consciously.
• The company carried out water sanitation works in the communities of Minatitlán, La Astilla, and Coconal; in Jalisco, as well as in San Antonio, and Mameycito.
• The company invested over one million pesos in infrastructure to enable water treatment and purification plants in Paticajo and Arrayanal.
• Additionally, the water study was presented to federal water management authorities (CONAGUA) to analyze and collaborate on designing specific solutions benefiting each community.

It is essential to note that Peña Colorada solely uses underground water agreed by the federal government, and the consumptions are reported annually in Peña Colorada's sustainability report. Furthermore, there has been a 25% reduction in industrial groundwater usage over the last four years. In 2022, the company invested USD 200 million in new technology for tailings management, ensuring greater recovery of industrial water usage, up to 80%.

Let me reiterate that ArcelorMittal takes its corporate responsibility and sustainability responsibilities very seriously. I hope that this is apparent through the responses provided herewith.

Kind Regards,

Daniel Fairclough

Head of Investor Relations, ArcelorMittal