A Message from Schnitzer Steel Chairman and CEO,
In fiscal 2021 we delivered our best operating results in a decade. This is an achievement that would not have been possible without our employees, from our frontline workers to those working remotely, all living our core values of safety, sustainability, and integrity. Our success is the direct result of their having embraced these values. Their performance reflects the collaboration, innovation, and resilience that define our culture and our Company. I’m very proud of what our team has accomplished during these most challenging times.”
— Tamara L. Lundgren
Chairman and CEO
Sustainability is at the core of what we do and how we operate at Schnitzer, and has been since our founding in 1906. As one of North America’s largest metal recyclers, our story is marked by the essential role we play in the national and global economy. The material we recover and recycle represents an increasingly critical feedstock for industries and infrastructure that need high-quality, low-carbon metal solutions to support the transition to a sustainable future.
As I look back over the past year I am reminded of our shared commitment to People, Planet, and Profit. This framework is the foundation of our sustainability strategy, and continues to deliver meaningful impact to all our stakeholders.
Our fiscal 2021 Sustainability Report showcases the many ways we delivered on this commitment by providing quality recycled metals, affordable recovered auto parts, and low-carbon finished steel products across our operations. In fiscal 2021 we delivered our best operating results in a decade, an achievement that would not have been possible without our employees, from our frontline workers to those working remotely, all living our core values of safety, sustainability, and integrity. Our success is the direct result of how they have embraced these values. Their performance reflects the collaboration, innovation, and resilience that define our culture and our Company. I’m very proud of what our team has accomplished during these most challenging times.
I am especially pleased to report that fiscal 2021 was the safest year in our Company’s 116-year history. We achieved our best safety performance results in both Total Case Incident Rates and Lost Time Incident Rates. This achievement is a testament to our team’s commitment to safety training, hazard awareness, and continuous improvement. In the face of continued disruptions presented by the COVID-19 pandemic, I am proud to report that 93 percent of our facilities did not experience a lost time injury. We continue to make meaningful progress in identifying and addressing potential risks before they result in injuries. While we still have work to do, the entire Schnitzer organization’s dedication to creating a safe work environment and a sustainable safety culture is reflected in our continued progress and these results.
At Schnitzer we believe employee engagement initiatives focused on diversity, equity, inclusion, volunteerism, and employee health and wellness contribute to our operational excellence, the achievement of strategic goals, and the growth and development of our workforce. In fiscal 2021 our Company joined a distinguished group of organizations that value employee trust, respect, pride, and camaraderie when we achieved certification as a Great Place to Work®. This report details the contributions of our network of Employee Resource Groups (ERGs), which provide employees platforms from which to create community, celebrate diversity, and build a sense of belonging at Schnitzer. In addition, you will find information in this report about employee health and wellness programs and services offered at Schnitzer, which have served as vital tools over the past year to support both physical and emotional health.
In fiscal 2021 our volunteer and community engagement programs addressed two key issues that illustrate Schnitzer’s connection to the communities where we operate: promoting opportunity for youth and supporting essential services. Through a partnership with the Boys & Girls Clubs of America, our local teams offered support to young people in our communities. Through longstanding relationships with local food banks, our employees provided hunger relief services through our biannual Food Bank Fund Drives. These partnerships directly support our sustainability goal to contribute meaningfully to the development of our local communities.
Safeguarding the environment is one of the primary performance indicators we measure and include in this report, and I am proud to relay significant progress toward our goals of reducing absolute greenhouse gas emissions from our operations and achieving 100 percent net carbon-free electricity. Our strategic investments and local energy partnerships facilitated this success and continue to reinforce our role as responsible neighbors and environmental stewards.
Our team delivered outstanding financial results in fiscal 2021, reflecting the benefits from the execution of our multi-year productivity initiatives and the implementation of our One Schnitzer operating model. Increased operational efficiencies achieved through technological upgrades and innovations drove recovery of more materials to meet the growing demand for products made using recycled metals. Higher sales volumes and strong working capital management led to our highest profitability since fiscal 2012.
The achievements around People, Planet, and Profit reflect the agility of our workforce, the strength of our culture, and the resiliency of our platform. Our team has demonstrated once again why Schnitzer continues to be a leader in the recycling industry.
On behalf of our Board of Directors, shareholders, and employees, I invite you to read our Fiscal 2021 Sustainability Report, which shares more about our sustainability performance and goals and our efforts to position our Company for continued success in the years ahead.
Tamara L. Lundgren
Chairman and CEO