Gerdau SA is screened out under 1 exclusion reason spanning 1 issue category.
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. It is a statement of values.
Gerdau S.A. is a vertically integrated steel producer whose business includes the extraction of iron ore, a core mineral input for its steelmaking operations. The company operates the Várzea do Lopes iron ore mine in Brazil, which was audited in 2025 against the Initiative for Responsible Mining Assurance (IRMA) standard. This places the company's direct involvement in mineral extraction alongside its steel production.
The company's mining activities have been linked to regulatory and governance concerns. In 2019, Gerdau MacSteel Inc. was cited for multiple violations of its permitted effluent limitations. Furthermore, the company has been subject to significant legal scrutiny; a 2016 class action lawsuit filed in the U.S. alleged Gerdau failed to disclose that it and its executives bribed tax authorities and defrauded Brazil's tax service. More recently, in early 2026, a Brazilian investigation into fraud in mining auctions indicated systemic breaches and the use of shell companies to manipulate auctions of mineral areas, with press reports noting Gerdau's involvement.
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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.
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