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 operates steel minimills and recycling facilities that generate significant hazardous waste and pollution. The company’s core processes—melting scrap metal in electric arc furnaces—produce air emissions, slag byproducts, and wastewater that can contain heavy metals and other contaminants. This industrial activity carries inherent risks of soil and water contamination from operational releases or mismanagement of toxic byproducts.
While specific recent enforcement records or penalty amounts from sources like ViolationTracker are not detailed in the gathered evidence, the steel industry is historically associated with substantial environmental impacts. The Environmental Protection Agency (EPA) reported that businesses paid over $1 billion in fines for environmental violations in 2022 alone, a category that includes heavy industrial sectors. The company’s operations involve the handling of materials that, without stringent controls, can lead to documented ecological harm.
The gathered evidence does not cite a specific Superfund site, major spill, or enforcement action directly tied to Commercial Metals. This record requires further investigation into the company’s environmental compliance history, including any EPA enforcement records, community complaints, or remediation liabilities associated with its facilities.
Research Sources
2 organizations
Related Exclusions
Wondering what we do invest in?
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.