Why it is important for the steel industry to get to net zero, ResponsibleSteel

Title image credit: Worldsteel_Gerdau S.A._Brazil_wire rod inspection

Leading steelmakers globally are beginning to take steps to decarbonise and low emissions steel options are emerging on the market. But new analysis from ResponsibleSteel demonstrates that radical shifts to reduce emissions by a select number of industry leaders or “first movers” will not be sufficient. The entire steel industry needs to take immediate action to make progress on the journey to net zero. And this progress needs to be mapped out in a universal language.

New report by ResponsibleSteel

ResponsibleSteel has unveiled a landmark report, “Charting Progress to 1.5°C through Certification.” Using two base scenarios – the International Energy Agency’s (IEA) Net Zero Emissions by 2050, and the Mission Possible Partnership’s (MPP) Carbon Cost – the report offers a detailed mapping of the progress needed for the global steel industry to achieve climate commitments under the Paris Agreement. The report was reviewed in-depth by representatives from the IEA, the Energy Transitions Commission and Systemiq, and has been endorsed by industry, civil society and intergovernmental organisations including the OECD, Baowu Group, the Climate Group, and Lendlease.

According to the analysis, for the industry to meet its Paris Agreement obligations every steel plant in the world needs to be emitting less than today’s average emissions intensity by 2030. In other words, following a 1.5°C trajectory, today’s average emitters will become the industry’s worst offenders by 2030 if they do not take steps now to improve.

Annie Heaton, ResponsibleSteel’s CEO stated, “Transforming the steel industry will require bold and universal action. No one can sit on the sidelines. Our analysis shows how certification can be used both to plan and to track the progress of every site on an equitable basis. Those who are not certified cannot be tracked.”

The ResponsibleSteel International Production Standard is a powerful tool for steelmakers, policymakers, financial institutions, trade organisations, and campaigners, to track and drive the industry’s transition at pace and scale. The Production Standard’s Decarbonisation Progress Levels provide an internationally consistent framework that enables a like-for-like comparison of steel plants globally and incentivises all steelmakers to invest in decarbonised production processes whilst operating in a socially and environmentally responsible way at the same time.

ResponsibleSteel’s analysis of six key steelmaking regions clearly illustrates that there is a pathway for every part of the industry. Regional conditions such as scrap availability, natural resource endowments, climate policies, and available finance will likely impact the speed and nature of industrial change, but there is no room for inaction.

Furthermore, steelmakers must start to look beyond their physical site boundaries. Indirect supply chain-related emissions could make up about one-third of total average sectoral emissions by 2050, so reducing these will prove critical to the steel industry’s transition.

Ms Heaton continued, “ResponsibleSteel provides a trusted apparatus for measuring, comparing, and certifying progress in driving down emissions that steelmakers, buyers, investors, and policymakers can all get behind.”

“Achieving net-zero steel emissions by 2050 is not only feasible but critical to achieving the commitments made under the Paris Agreement. ResponsibleSteel’s report, ‘Charting Progress to 1.5°C through Certification’ provides a clear, actionable roadmap taking into account key regional and technological differences which will impact the speed and direction in which industry players progress. Steelmaking sites must begin this journey. As this report points out, all steelmakers need to have made substantial progress by 2030 to stay on track.” – Stephan Raes, Head of Structural and Industry Policy Division, OECD

 “ResponsibleSteel’s report offers valuable insights and analysis for the steel industry and provides a platform for discussion and contemplation, encouraging members of the supply chain to work together to find effective ways to meet the industry’s environmental objectives. We welcome the report’s consideration of regional differences and focus on supply chain emissions, both critical factors in achieving the industry’s emission reduction goals. ResponsibleSteel’s Decarbonisation Progress Levels provide steelmakers with a framework to assess their efforts to reduce emissions.

The Chinese steel industry is also in the process of developing standards for defining low-carbon emission steel and we look forward to mutual recognition and cooperation with ResponsibleSteel on the definition of low emissions steel. We hope that this report will inspire further dialogue and collaboration to steer the steel industry towards a more sustainable future.” – Liu Yinghao, Technical Director of Low Carbon Metallurgy Innovation Center of China, Baowu Group

 “The steel industry stands at a critical juncture — it needs to decarbonise, and it must do so now. The ResponsibleSteel pathway report provides an essential and clear framework to urgently guide the industry toward a 1.5°C-aligned future. At SteelZero, we’re proud to work with ResponsibleSteel as they set the standard for industry-wide transformation. Their Decarbonisation Progress Levels are not merely critical benchmarks; they’re a call to action, demanding immediate and decisive action from steelmakers. This report makes clear that we must act boldly, now – and innovate rapidly to meet our Paris Agreement commitments and ensure a liveable future for all.” – Helen Clarkson, CEO, Climate Group

 “ResponsibleSteel’s publication, ‘Charting Progress to 1.5°C through Certification,’ highlights for the global steel industry and the wider value chain, analysis that clearly demonstrates the importance of immediate action to accelerate industry transformation and decarbonisation at scale and pace. Additionally, it articulates how the ResponsibleSteel Certification Progress Levels can provide performance specifications aligned to our own ambitious Scope 3 target, which can be readily applied in procurement practices, making specification easier and amplifying the market demand signal, which will hopefully provide confidence to the sector to accelerate investment in their transition.” – Cate Harris, Group Head of Sustainability, Lendlease

 About ResponsibleSteel:

 ResponsibleSteel is a global multistakeholder standard and certification initiative for the steel industry. Its mission is to be a driving force in the socially and environmentally responsible production of net-zero steel, globally.

 ResponsibleSteel’s members include some of the leading players in the industry working together to minimise the impact of steel manufacturing on people and the planet. Businesses from every part of the steel value chain, civil society groups, and other organisations are welcome to join.

 ResponsibleSteel’s purpose is to maximise steel’s contribution to a sustainable world by:

• Providing a multi-stakeholder forum to build trust and achieve consensus;
• Developing standards, certification, and related tools;
• Driving positive change through the recognition and use of responsible steel.

 The ResponsibleSteel International Production Standard is designed to support the responsible sourcing and production of steel. It covers a range of sustainability issues including emissions, pollution, responsible sourcing, human rights, labour standards, and more.

 For more information about ResponsibleSteel please visit https://www.responsiblesteel.org/

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