This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Commercial Metals is a steel and metal recycler whose climate transition pathway demonstrates insufficient alignment with Paris Agreement goals. The company’s public climate disclosures lack a Paris-aligned emissions reduction target for its material Scope 1 and 2 emissions from steel production. While the company highlights its recycled content, it has not committed to a Science Based Targets initiative (SBTi) validated net-zero target, nor has it published a detailed, funded decarbonization strategy for its primary steelmaking operations.
Available public evidence does not document specific instances of climate policy obstruction or deceptive greenwashing by Commercial Metals. The company’s exclusion under this category is based on a quantitative assessment of its carbon performance trajectory against sectoral benchmarks, indicating its current commitments and projected actions are inadequate to meet the required pace of decarbonization. This evaluation focuses on the absence of robust, forward-looking climate governance rather than on documented acts of opposition or misinformation.
Commercial Metals Company, a steel and metals manufacturer operating electric arc furnace (EAF) mini-mills, has accumulated $7 million in penalties across 52 violation records per ViolationTracker since 2000. EPA has named CMC as a potentially responsible party at multiple federal Superfund sites, alleging the company's scrap metal sales and materials disposal contributed to hazardous waste contamination requiring cleanup. CMC's EAF operations generate EAF dust classified as hazardous waste under RCRA due to concentrations of zinc, lead, cadmium, and chromium. The company's SEC filings disclose involvement in various environmental matters that may result in fines, penalties, or judgments with potentially material impact on its financial condition. CMC disputes that arm's-length scrap metal sales should constitute "arrangement for disposal" under Superfund law.
Research Sources
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Related Exclusions
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The Naughty List
A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.