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A responsible steel industry requires rigorous certification

Note: This opinion piece was originally published in Business Green.

As the world warms, the search is hotting up for a 'green transition' - shifting the building blocks of the economy onto a sustainable footing. There are many uncertainties around how - and how fast - we can make this happen, but one thing is certain: steel will be at its heart. Whether it is wind turbines or electric cars, buses, trains or bicycles, steel has to be part of the solution.

At present, though, it is also part of the problem. Because much of current steel production is highly polluting, dependent on massive blast furnaces which produce the metal by smelting iron ore with heat generated from burning coal. The sector accounts for around a quarter of all industrial emissions globally; if steel were a country, it would be the fourth biggest emitter on the planet.

Change has to happen - and fast. The International Energy Agency (IEA) has warned the sector as a whole has to cut emissions by 90 per cent by 2050 to keep it in line with global climate goals as set out in the Paris Agreement. Now, a new report from ResponsibleSteel has detailed the speed and scale of the shifts required in the coming years. According to its analysis, every steel plant in the world needs to be emitting less than today's average emissions intensity by 2030. In other words, today's average emitters will become the industry's worst offenders by 2030 - if they do not take steps now to improve.

In this year of elections, it is clear that governments on both sides of the Atlantic are keen to support their domestic steel industries, but also demonstrate they are making progress on the climate front. Meanwhile, major procurers looking to decarbonise their supply chain want action, too. So the search is on for steel which doesn't cause unacceptable environmental impacts.

There is one beguilingly simple answer: make new steel from scrap. This can result in emissions savings of around two-thirds compared to so-called virgin steel. It is also around half the price. Small wonder then that steel producers with access to scrap - or with the purchasing power to gain it - are racing to meet demand.

But as a long-term solution, this leaves much to be desired. For one thing, there simply isn't enough recyclable steel around to meet demand. And the race for scrap risks leaving longer-term solutions, such as systems that use 'green' hydrogen, starved of the investment they need to go to scale.

Any meaningful strategy to decarbonise the sector must combine using all the scrap that is available, with some serious drivers that ensure innovation in primary steel production from iron ore. And that will only come about when the market demands it, and is prepared to pay for it.

But there is another element to the search for sustainable steel: the social and community one. A focus on decarbonisation pure and simple risks leaving people behind - failing to take account of the need for a 'just transition' to a greener future. Threatened closures of relatively high-emitting plants, for example, can destabilise local communities and create huge headaches for governments, as we have seen recently in the UK.

Increasingly, these dilemmas are being recognised by both business and governments, and the search is on for all-round sustainable steel - sustainable environmentally and socially.

But how is that best defined? There's no shortage of 'green steel' labels and initiatives - over 80 at the last count. But their focus - and rigour - vary hugely. Some are global; some regional. Some cover specific steel products; others just company-wide impacts. Most are principally focused on carbon emissions, and don't take into account wider ESG issues such as labour rights, community impacts or biodiversity.

This lack of alignment creates confusion - just at a time when there's increasing impatience with green claims that are not robust. In Europe, the EU's Green Claims Directive is poised to subject businesses found to be making misleading claims to hefty fines and a ban on tendering for public procurement.

Against this background, there's a case for a certification scheme which covers the full spectrum of sustainability impacts - and does so with a rigour that can ensure its credibility. That's where ResponsibleSteel comes in. The result of wide consultations within the industry as well as civil society, its aim is to provide a common language of assessment that steel's customers, communities, investors, and workforce can all get behind.

It uses independent auditors to certify steel production sites, specific steel products, and company-wide impacts, too. It doesn't just assess progress on cutting carbon emissions, but also issues around the local environment and communities, and the way the workforce and supply chain are treated. As a broad-based certification initiative, ResponsibleSteel does seem to be gaining traction: it's been endorsed by the IEA, UNIDO's Industrial Deep Decarbonisation Initiative, as well as the German government and the Chinese Iron and Steel Association.

This is encouraging. But there is no time to lose. The whole sector needs to demonstrate it is shifting - at speed and scale - to steelmaking which protects both communities and the climate, while providing the essential building blocks of a greener future. Transforming the industry will require bold and universal action. No one can sit on the sidelines. Delay is not an option.

By Annie Heaton, CEO, ResponsibleSteel

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Democratic Congressman Ro Khanna introduces the Modern Steel Act using ResponsibleSteel's Progress Level 4 as a benchmark for near-zero steel

On August 9th, Democratic Congressman Ro Khanna introduced a new bill to strengthen the US's domestic steel industry and build new iron and steel sites - the Modern Steel Act.

As our Director of Development and Innovation, Sivakumar Kuppuswamy, commented, “We are delighted by the introduction of the Modern Steel Act 2024, which aims to drive innovation, and the development of near-net-zero steel production. This transformative bill not only promotes innovative practices in near/net-zero steel production but also fosters a collaborative approach to boost job creation and community development. We're encouraged to see the ResponsibleSteel standard referenced as a benchmark for measuring and defining near-zero steel, which will drive meaningful transparency and progress in the sustainability efforts of the steel industry and its stakeholders."

The Modern Steel Act would build new iron and steel sites in deindustrialised towns, bringing a new generation of steelmaking to the US, creating jobs, and increasing US industrial competitiveness.

To achieve these goals, the Modern Steel Act plans to:

- Partner with the steel industry and workers to build new, modern facilities producing near-zero emissions iron and/or steel, using cutting edge technologies like hydrogen direct reduction

- Give priority to existing and legacy steel, iron, coke and coal communities

- Enable production of near-zero emissions iron and steel

- Upgrade existing integrated mills and mini-mills to employ lower-emissions technologies

- Balance supply, strengthen supply chain resilience, and protect health

- Explore demand generation opportunities

- Uphold strong labor standards and train workers to make the steel of the future

- Prioritise projects using domestic content, including all iron, steel, manufactured products, and construction materials from US manufacturers

Learn more about the Modern Steel Act here.

Image credit: Shutterstock

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The Roundtable for the Responsible Recycling of Metals: Improving ESG management and performance in metals recycling

By Dave Knight, Convenor, the Roundtable for the Responsible Recycling of Metals

Recycling delivers key socio-economic and environmental benefits but unknown to most are the risks involved when it is not done responsibly.

The Roundtable for the Responsible Recycling of Metals (RRRM), a multi-stakeholder, multi-metal initiative, was set up to support the development of responsible scrap sourcing standards, systems, and tools. For the last 18 months, RRRM overseen by a Steering Group of which ResponsibleSteel is a member, has collaborated with stakeholders across the metals sector to understand and make recommendations to improve ESG management and performance. This process involved running working groups, conducting extensive research, and mapping existing voluntary standards, legislation and industry guidance on metals recycling.

In May, RRRM launched its findings, demonstrating that current approaches are insufficient to ensure recycled metals do not harm people or the environment. The roundtable also published its recommendations and ResponsibleSteel plans to incorporate these into the review of the ResponsibleSteel International Production Standard in 2025.

Steel recycling

Steel has one of the highest recycling rates in the metals industry. Approximately 650 million tonnes of steel scrap feed about 30% of global steel production.

Carbon emissions from secondary steel production using scrap are less than a third of those from primary steel production, which is why companies are increasingly investing in secondary production as part of their decarbonisation strategies. But there are limits to scrap availability. We need to ensure that the scrap available is being responsibly sourced and isn't being displaced to meet the decarbonisation needs of one producer to the detriment of others.

Findings and recommendations

Widely used OECD ‘Due Diligence’ guidance relies on traceability and risk assessment. But traceability in diverse and distributed value chains can be extremely challenging due to the number of actors in the collection and pre-processing sectors. Reaching informal and subsistence collectors and recyclers, where some of the highest risks exist, is particularly hard and traders can be reluctant to disclose sources to maintain commercial interests.

For example, there are hundreds of thousands of people, mainly women and vulnerable groups, working at a subsistence level in the hinterlands of ship recycling facilities, notably in India, Bangladesh and Pakistan. Knowledge of these groups is poor and often overlooked in the downstream value chain. For more distributed post-consumer sources, like white goods or steel within electronics, the International Labour Organisation estimates that approximately 20 million informal workers work as waste collectors and sorters, often in poor conditions. Guidance on labour and human rights needs to be improved and post- and pre-consumer recycled content should be further broken down to help inform scrap sourcing risk profiles.

Improving assurance

The inclusion of recycled metal value chains in assurance processes is the starting point and metal producers should expect increasing focus on the ESG management and performance of these inputs. Legislation and voluntary approaches should be enhanced to include requirements relating to ‘untraceable’ parts of supply chains, recognising the high numbers of smaller-scale formal, informal, and subsistence recyclers. Worker and community engagement and grievance mechanisms, app-based accessible reporting, site sampling in third-party audits, commissioned research and independent surveying of high-risk locations can also be considered.

Policy and market opportunities

Extending producer responsibility legislation across nations would better reach high-risk parts of diverse supply chains. Market platforms and exchanges can strengthen ESG disclosure requirements and differentiate products which demonstrate higher ESG performance.

Furthermore, not all recycling of metals is economic and losses of materials lead to higher ESG risks. For example, the shipbreaking and steel working group found that shipowners get better prices for end-of-life (EOL) vessels broken in poorer conditions. The last beneficial shipowners have a key role to play in recognising this and metal producers should understand the risks associated with these inputs.

Metal Producers and recyclers

Recyclers should work to improve collection, segregation and sorting practices and the development and transfer of recycling technologies to higher-risk locations. This would help reduce contamination and exposure to hazardous materials as well as help maintain the alloy or grade quality maximising profitability. Producers and recyclers should also collaborate with brands and manufacturers to optimise efficiency and reduce ESG risks across the value chain considering new business models such as metals leasing and service delivery.

Labour, human rights and biodiversity risks are less well covered by industry requirements, guidance and common practice. Third-party audits will place more emphasis on recyclates, on analysing sources from an ESG perspective and will expect metal producers to be able to clearly communicate the boundaries of traceability.

Brands and manufacturers

As responsible sourcing becomes more sophisticated, brands and manufacturers should invest in improved performance at higher-risk locations that represent the ‘untraceable’ part of their supply chains. ‘Book and claim’ systems enable appropriate responsible sourcing claims to be made and can support action in areas which are currently overlooked. Brands and manufacturers should also publish data to better educate consumers, build opportunities for products with higher ESG performance, and improve the transparency of secondary scrap supply chains.

Further information and next steps

ResponsibleSteel recently ran a webinar on the outcomes of the Roundtable, the slides of which can be accessed here. A summary report, a 1-page route map, a risk profile, and three background reports with detailed findings and recommendations are all available on RRRM's website.

Parties interested in collaborating to take forward some of these recommendations should contact Dave Knight.

Images: Shutterstock

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New report provides a comprehensive framework for charting the steel industry’s progress to 1.5°C

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.

Today, ResponsibleSteel unveils 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.”

Read the full report and interactive summary here.

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First certified steelmaking site in Latin America announced: ArcelorMittal Tubarão, Brazil

ResponsibleSteel has awarded the world’s first certification to a steelmaking site in Latin America. ArcelorMittal Tubarão is the first industrial plant in Latin America to receive the sustainability certification for its operations.

Ali Lucas, acting CEO for Responsible Steel, said “The steel sector has been strongly affected by the Covid-19 pandemic and its recovery is essential to the region. But growth cannot, and should not, occur at all costs. For this reason, being granted the first ResponsibleSteel certificate is extremely important. This is not an easily achieved accomplishment and the highlights of the sector are not focused only on decarbonization processes but also on the respect for human rights, labour rights and local communities always ensuring that health and safety remain a priority and focusing on the larger spectrum of ESG principles. The importance of a responsible steel supply chain is in line with the Latin America stakeholders, who know very well the connections between mining and steel production. This is the reason why a responsible supply chain will become an important and growing part of the ResponsibleSteel certification process. We applaud ArcelorMittal Tubarão on this momentous achievement.”

For more on ResponsibleSteel’s certification and Standards click here: https://www.responsiblesteel.org/certification

For more on the story click here: https://brasil.arcelormittal.com/sala-imprensa/noticias/tubarao/arcelormittal-tubarao-obtem-certificacao-em-sustentabilidade-inedita-nas-americas

March 9, 2022
2022
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International Women’s Day

Today is International Women’s Day. A day to celebrate women leaders everywhere who are campaigning for a better, more sustainable and just world. To highlight the day, we asked two women from ResponsibleSteel – Hayley Jarick and Ali Lucas-  to tell us what International Women’s Day means for them.

Hayley Jarick is  Director ResponsibleSteel, CEO and Company Secretary of the Supply Chain Sustainability School Limited, worked many roles in many industries, mentor, volunteer, wife, and mum.

Ali Lucas is ResponsibleSteel’s Acting CEO. Ali worked on the launch of the Forest Stewardship Council and leading campaigns against the illegal trade in wildlife. She was a co-founder of The Climate Group and led WWF UK’s marketing and communications work delivering annual income of £70 million. Ali joined ResponsibleSteel in 2019.

What does International Women’s day mean to you?

HJ: It is a day where women are socially permitted to celebrate their achievements without the negative stigma that typically follows boasting. However, it is also a day to reflect on the zealousness of your ambitions and those you officially/unofficially lead.

AL: It’s a reminder – a time to reflect on women in leadership and know that seeing women in different roles of leadership is important in changing the future for young girls

Tell us how you first became involved in the environment movement?

HJ: I was born. It’s always been a core value of mine, but I only started working in the field after being inspired by an amazing woman, Amy Luscombe, who showed me how to unite my personal values with my career.

AL: I was drawn to working for an organisation that I had supported during my childhood – World Wildlife Fund – which worked  globally to save species and their habitats

What’s the best thing about your job?

HJ: The best thing about my job is working for purpose. I know that one day I can sit back and tell my kids and grandkids that I spent my time and used my talent in the pursuit of making the world a better place for them and future generations.

AL:  Being able to see how different sectors can achieve real impact by working together – not always an easy conversation !

Your proudest “environmental or ESG”  moment? Why?

HJ: I work with a diverse group of people from various industries and sized organisations. And the one thing that gives me pride, above all others, is the look in an individual’s eye when they first realise the opportunities and benefits of sustainability for themselves, their family and their career.

AL: Launching The Climate Group at a time when, unbelievably, the issue of climate change was just emerging into mainstream dialogue.

What role does gender play in the climate crisis do you think?

HJ: I don’t think gender plays a role explicitly, but the lack of diversity more broadly in crucial decision-making positions is a significant contributor to human-induced climate change.

AL: The real impacts of climate change are more than often felt at a devastating human level – for example floods and drought where women tend to be on the front line of dealing with the practical problems – quite literally, survival.

Are there enough women leaders in climate change? And if not, how can we change this?

HJ: There are plenty of women leaders in climate change; you just have to look at groups like 1 Million Women {https://www.1millionwomen.com.au/}. The problem is we need more followers of all genders.

AL: There are many pioneering women working on climate change around the globe. It’s an exciting arena for women representing many different aspects of this issue –  including science. Women everywhere are rising to the challenge and leading on solutions. I find many women in this field, including the women I work with and our  members, very inspiring. They give me hope.

What does Responsibility mean to you?

HJ:  Responsibility is owning the impact of our actions and apathy, intentional or incidental, whether detrimental or delightful.

AL: It really is every person playing their own part on a daily basis – small changes in personal behaviour can have a big influence and a real  impact.

Through history, which famous environmental or social justice (or both) leaders have inspired you and why?

HJ:  When I was a teenager, I was privileged enough to hear a live address from Hafsat Abiola, an inspiration advocate for democracy, gender equality and women’s leadership in Africa and around the globe. She responded to her father’s imprisonment and assassination of her mother by founding the Kudirat Initiative for Democracy (KIND) and continuing the progress her parents started. After hearing her story, many of us in the room wanted to know how we could help her. Her response has stuck with me ever since. She didn’t want us to help her. Instead, she wanted us to find a cause that had meaning for us and to be passionate about that.

AL: Christiana de Figueres. She is such as icon and recognised leader on global climate change. Assuming responsibility for the international climate change negotiations after the failed Copenhagen conference of 2009, she was determined to lead the process to a universally agreed regulatory framework – and she did it!

Do you have a favourite ecosystem/flagship species? If so, what is it and why?

HJ: Not favourites, but the connections between species still intrigue me.

AL: I’ve always been drawn to the Arctic – very enigmatic and mysterious – that very fragile ecosystem of giant expanses of ice and snow, huge icebergs, drifting in the arctic seas supporting a myriad of plant and animal life …and a huge indicator of how the world’s climate is changing

In a sentence, what is leadership?

HJ: Leadership is inspiring and helping others become their best selves.

AL:  Having a clear vision – being able to listen but having confidence to take the decisions

Inspiring stuff! Meanwhile,  we’d also love to know from all our members and supporters who inspires you? Please do leave a comment on our Twitter or LinkedIn.

March 7, 2022
2022
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February 22, 2022
2022
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ResponsibleSteel announces world’s first certified steelmaking site in Australia: BlueScope Port Kembla Steel Works

ResponsibleSteel has awarded the world’s first certification to a steelmaking site in Australia. The BlueScope Australian Steel Products Manufacturing site in Port Kembla, Australia manufactures plain carbon steel, low alloy steel and large structural steel products including continuously cast slabs, hot rolled plate, and hot rolled, cold rolled, metal coated and organic coated flat steel strip in coil form.

ResponsibleSteel acting CEO, Ali Lucas said :

“Having the first ResponsibleSteel certified site in Australia is critically important. Australia’s steel industry generated $29 billion in annual revenue and employs over 110,000 Australians. Australia is also one of the most critical biospheres on earth.”

“The successful assessment of a steel making site against the very exacting criteria within the ResponsibleSteel Standard highlights the importance of a steel sector not only focused on decarbonisation but also on ensuring that health and safety remains of paramount importance, respecting human rights, worker rights and local communities, and focused on the whole ESG spectrum.”

“We applaud BlueScope on this momentous achievement and look forward to working with them closely on the next stage of their journey – certified Steel, which will further reassure business and consumers that the steel they use has been not only produced responsibly but also sourced responsibly at every stage of its journey.”

BlueScope’s commitment will send a clear and strong message to markets, investors, financiers and governments about the steel industry’s intent to not only decarbonise steel production, but also to ensure responsible ESG practices in steelmaking, has well and truly begun.”

For more on story click here. https://www.bluescope.com/sustainable-steel/responsiblesteel

February 21, 2022
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January 20, 2022
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December 21, 2021
2021
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Methane and Steel

A few months ago, the United States, the European Union, and partners formally launched the Global Methane Pledge, an initiative to reduce global methane emissions to keep the goal of limiting warming to 1.5 degrees Celsius within reach. A total of over 100 countries representing 70% of the global economy and nearly half of anthropogenic methane emissions have now signed onto the pledge. Methane emissions are particularly relevant to the steel industry. Below you can read Ember’s view on the importance of dealing properly with methane emissions from metallurgical coal, the responses steel makers could have to this challenge. We also asked one of our members North Coal what they were doing to address this issue at their proposed site.

Steel’s Methane Footprint – Ember

For steel industries, there are two reasons that methane is a major climate change imperative. Firstly, combined coal mine methane emissions have an enormous impact on climate change in the short term, outstripping the EU’s total carbon emissions according to Ember analysis. Secondly, the steel industry is a major consumer of metallurgical coal, which is associated with some of the highest methane emissions of any type of coal mining.

We estimate that coal mine methane associated with steel production generates 15.9 billion cubic meters of methane per year. This is equivalent to the total CO2 emissions of Germany and the United Kingdom combined, substantially to the global warming effect of blast furnace steel. These emissions should be included in corporate scope 3 emissions, but to date, they have not.

So what can the industry do? Steel companies can take the initiative and demand that their suppliers of coke or coking coal 1) properly measure the methane emissions associated with its production and, 2) take aggressive action to mitigate unnecessary venting of coal mine methane. Our analysis shows that much of this methane can be profitably utilized to generate electricity, or otherwise destroyed via flaring or oxidation at very low cost.

This will also help future-proof supply chains, as it is increasingly likely new regulations will affect methane emissions from coal. The United Nations Climate Change Conference in Glasgow in November (COP26) put methane on the top of the climate agenda, with over 100 countries signing the Global Methane Pledge. The United States and the European Union are both following up with ambitious legislative packages, which could push coal companies to measure, report and mitigate methane emissions.

North Coal

ResponsibleSteel Members with coal mines are very well aware of the challenges caused by methane emissions which is why they are taking actions. For example, North Coal agrees that steel companies should demand properly measured emissions from all raw materials sourced, and raw material providers should take action to mitigate their Scope 1 and 2 emissions including mine methane. It is a position North Coal supports and has taken action on. North Coal is focused on providing steelmakers with carbon-neutral metallurgical coal with minimal Scope 1 and 2 emissions and has partnered with the Bradshaw Research Institute for Mining and Minerals (BRIMM) at the University of British Columbia to quantify emissions and develop a strategy and tactical plans to net-zero. This will include a mine design that minimizes emission emitting equipment while also taking advantage of available clean hydroelectricity. Working with BRIMM we will also accurately measure fugitive seam emissions and look to develop strategies to drain fugitive methane pre-mining and explore alternative uses for the gas that lowers its emission footprint.

North Coal has also partnered with Circulor Limited to establish metallurgical coal traceability and dynamically track CO2 and environmental, social, and governance (ESG) performance. Traceability allows North Coal to demonstrate both carbon and other sustainability performance and the higher value-in-use that net-zero coal has for blast furnace steelmakers. This data is increasingly critical to steel manufacturers’ growing imperative to ensure their supply chain has the lowest possible CO2 emissions and to demonstrate ethical sourcing.

North Coal – https://northcoal.ca/

North Coal and Circulor partnership: https://www.worldcoal.com/coal/02112021/north-coal-and-circulor-partner-to-support-esg-transparency/

BRIMM at University of British Columbia – https://brimm.ubc.ca/

Circulor – https://www.circulor.com/

December 19, 2021
2021
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2021 in review

2021 has been a breakthrough year for ResponsibleSteel. This video looks at our year in review as well as signalling ahead to the huge opportunities that 2022 will bring.

December 15, 2021
2021
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ResponsibleSteel’s Standard incorporated into CRU’s Emissions Analysis Tool

ResponsibleSteel, the steel sector’s first global multi-stakeholder certification and standard initiative, and CRU Group, the leading global mining, metals and fertilizer market intelligence company, have signed a Memorandum of Understanding (MOU) which includes the integration of the ResponsibleSteel Standard into CRU’s Emissions Analysis Tool.

The CRU Emissions Analysis Tool is a digital platform that compares emissions across global value chains. The tool compares asset level sustainability data which will now include acknowledgement that a steel site has been audited and passes the rigorous standards laid out in ResponsibleSteel’s certification programme.

The MOU between ResponsibleSteel and CRU allows the industry to accelerate its sustainability journey. Key benefits of the partnership include:

  • Increase global knowledge and awareness of steel and steelmaking raw materials value chains and their material sustainability issues,
  • Maximise opportunities for improvement in value chain sustainability, through increased transparency,
  • Enhance analysis and transparency of steel and steelmaking raw material assets-, products-, corporates-, and sector-related performance for all stakeholders,
  • Develop and share science- and data-based approaches to supply chain risk mitigation and resilience.

On the partnership, Chief Executive of ResponsibleSteel Anne-Claire Howard stated: “I am delighted to formalise our collaboration with CRU through this Memorandum of Understanding. The integration of ResponsibleSteel published information on ResponsibleSteel certification status into the CRU Tool will increase stakeholders understanding of sustainability efforts in the steel sector, allow comparability across the sector and along supply chains and provide transparency of where improvements are taking place and we hope that in 2022 we will be able to add certified steel to this.

CRU’s Head of Research Development, Lavan Mahadeva echoed Howard, “Most of the headlines on sustainability in steel have been on carbon emissions and the industry’s large carbon emissions footprint. CRU developed our expert cost model carbon emissions calculations for the steel value chain and our Emissions Analysis Tool data portal to bring evidence to this debate. We are delighted to represent ResponsibleSteel in our data portal and to support them in their task of promoting and enlightening on all aspects of the responsible sourcing, production, use and recycling of steel, a material that we cannot do without.”

Discussing the partnership and developments along the pathway to sustainable steel, ReponsibleSteel and CRU will host a webinar in January 2022. Steel producers, sustainability leaders, policymakers and investors are encouraged to attend the free session. Register your interest here.

December 7, 2021
2021
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November 16, 2021
2021
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The relevance of ResponsibleSteel standards to the implementation of climate policies such as CBAM

The trade in goods and associated supply chain greenhouse gas (GHG) emissions have become more prominent in climate policy discussions over recent years. Intensive negotiations at COP26 on nationally determined contributions (NDC) are of course essential, however, trade in goods between countries and continents does somewhat complicate the question of who is responsible for production emissions. Whilst many countries have signed up to a net zero target by 2050, their NDCs don’t include the often rising amount of embodied emissions from imported goods. An opportunity for countries to support each others’ efforts to reduce their own emissions, for mutual benefit, is being missed.

A recent report on counting carbon in global trade suggests that as much as 38% of global emissions emanate from traded goods, meaning that countries are very much interconnected in the global fight to reduce GHG emissions. Whilst there is no standardised global accounting method for measuring embodied emissions in traded goods, proposals are already afoot to take these emissions into account in new climate policies.

Several countries, including the EU and US, have recently announced plans to introduce a form of carbon border adjustment mechanism (CBAM) with the intention to ensure a level playing field when it comes to the climate compliance costs of manufacturing. Also related specifically to steel, the United States and the European Union have just committed to “negotiate a carbon-based arrangement on steel and aluminium trade…to address carbon intensity of steel… ….and to encourage the production and trade of low-carbon steel.” (White House briefing 31st October 2021).

A CBAM goes some way towards introducing, and partly incorporating, the externality cost of carbon emissions into the price of purchased products. Some industries would argue that they have to absorb higher climate compliance costs when operating in regions such as the EU, which operates an emissions trading scheme, compared to some of the countries exporting to the EU. The border adjustment seeks to make a tax adjustment at the border when goods are imported from a country that enjoys relatively lower compliance costs. Part of the proposed approach by the EU includes having to measure the embedded emissions (in tonnes of CO2e per tonne) of the product that is being imported, and this is where standards, verification and certification come in.

WTO rules make provision for countries that wish to take steps on domestic environmental protection and conservation, and can make reference to international standards. ResponsibleSteel has spent considerable time with its member organisations and other steel sector stakeholders in developing an international standard incorporating rules for the consistent measurement and reporting of the GHG emissions intensity of steelmaking. The standard covers scope 1 and 2 emissions, and crucially the upstream scope 3 emissions for crude steel production. The EU CBAM proposal looks to be very similar in its approach but will also extend to more processed downstream steel products. The existing and developing carbon measurement methodologies in the steel sector, such as those proposed by ResponsibleSteel (for steelmaking sites) and the Net Zero Steel Pathway Methodology Project (at the corporate level), should contribute towards a basis for a common assessment method and setting the right system boundaries under a CBAM policy. At the very least, companies that measure and benchmark their product GHG emission intensities through ResponsibleSteel, will be in a better position to assess the implication of a CBAM on their markets.

Michael Liebreich goes into more details on the issues already mentioned and sets out the characteristics on an effective CBAM. Whilst the primary aim of CBAM is to create a level playing field, or as critics claim as a protectionist measure, time will tell as to the potential wider implications of climate polices such as CBAM in incentivising climate action in, and diverting finance towards, low GHG steelmaking technologies, not only in more developed nations but also in developing countries that may be at earlier stages of their decarbonisation journey.

Either way, we believe that ResponsibleSteel international standard has a critical role to play in providing a globally consistent, verifiable basis for comparing the GHG emissions intensity of steelmaking at different sites around the world.

November 15, 2021
2021
Editorial
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voestalpine Steel Division awarded ResponsibleSteel Certification

15th November: ResponsibleSteel is delighted to announce that one of its first steel producer members – Steel Division of the voestalpine Group – has successfully passed an independent audit against the ResponsibleSteel Standard – the global sustainability standard for the steel sector.

voestalpine – a globally leading steel and technology group with a unique combination of materials and processing expertise – has been a member of ResponsibleSteel since 2019 – and has been instrumental in helping to develop the ResponsibleSteel Standard over the past three years.

The ResponsibleSteel audit process enables each steel making site to prove that its production processes meet rigorously defined standards across a broad range of social, environmental and governance criteria including:

  • Climate change and greenhouse gas emissions
  • Water stewardship and biodiversity
  • Human rights and labour rights
  • Community relations and business integrity

The Standard is based on 12 principles with a variety of criteria and underlying requirements. To be awarded ResponsibleSteel Site Certification, each site has to undergo a detailed third-party audit, including an on-site visit, interviews with internal and external stakeholders, an expert Assurance Panel reviewing the audit report and an independent Certification Committee making the final certification decision.

Anne-Claire Howard, ResponsibleSteel CEO said: “I am delighted that voestalpine has been awarded certification for their Linz-based Steel Division in Austria. The ResponsibleSteel Standard, created by the steel sector’s only truly global multi-stakeholder initiative, contains a very exacting set of ESG criteria which we hope gives business and consumers confidence that the site at which the steel is being produced is operated responsibly.”

“I would like to congratulate the teams at voestalpine who supported the development of the ResponsibleSteel Standard and are now able to see it implemented. We look forward to continuing to work together on the next phase of our journey – Steel Certification.”

voestalpine has drawn up an ambitious phased plan for green steel production (greentec steel): Using a hybrid technology and electric arc furnaces would allow CO2 emissions to be reduced by around 30% in a first step to 2030. Over the long term, the goal is to successively increase the share of green hydrogen used in steel production, arriving at carbon-neutral steel by 2050. Over the past decades voestalpine has already reduced air emissions and energy consumption to the minimum technologically possible. The group has set the global benchmark in this field.

To achieve certification, voestalpine was audited by LRQA, formerly part of Lloyd’s Register, – one of the world’s leading providers of business assurance services. Paul Butcher, LRQA CEO said:
“As business leaders, we are all striving to make our operations more sustainable and to achieve these changes at pace and at scale. ResponsibleSteel certification is helping to ensure that across the steel sector, its standard is driving sustainability strategies that are as relevant, effective and

impactful as they can possibly be. Congratulations to voestalpine for living up to their slogan “one step ahead” and becoming one of the first international companies to achieve ResponsibleSteel certification for their Linz operations.”

In 2022, ResponsibleSteel will launch additional requirements for the certification of steel products, which will include stringent requirements for input materials supply chains and greenhouse gas emissions intensity.

ENDS

About ResponsibleSteel
ResponsibleSteel is an international, non-profit multi-stakeholder membership organisation. Businesses from every part of the steel supply chain, civil society groups, associations, and other organisations with an interest in a sustainable steel industry from anywhere in the world are welcome to join. To view the ResponsibleSteel membership list visit: https://www.responsiblesteel.org/about/members-and-associates/

ResponsibleSteel’s vision is that steel’s contribution to a sustainable society is maximised. Its mission is to enhance the responsible sourcing, production, use and recycling of steel 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 Standard is designed to support the responsible production of steel, as a tool for the achievement of ResponsibleSteel’s vision.

Find current issued certificates and their public audit summaries here.

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

The voestalpine Group
In its business segments, voestalpine is a globally leading steel and technology group with a unique combination of materials and processing expertise. This global Group comprises about 500 Group companies and locations in more than 50 countries on all five continents. It has been listed on the Vienna Stock Exchange since 1995. With its top-quality products and system solutions, it is a leading partner to the automotive and consumer goods industries as well as the aerospace and oil & gas industries; it is also the world market leader in railway systems, tool steel, and special sections. voestalpine is fully committed to the global climate goals, and its greentec steel program represents a clear plan for decarbonizing the production of steel. In the business year 2020/21, the Group generated revenue of EUR 11.3 billion, with an operating result (EBITDA) of EUR 1.1 billion; it had about 48,700 employees worldwide. www.voestalpine.com

November 15, 2021
2021
News
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