Global Recycling Day: Analysing the role of scrap in steelmaking through the years
To mark Global Recycling Day, Matthew Wenban-Smith reflects on the history of steel recycling and what it tells us about the transition to a net-zero steel economy in the future.
When it comes to recycling, it is worth taking the long view. For the first few thousand years, iron and steel recycling meant reworking rather than re-melting. The development of the blast furnace around one thousand years ago made it possible to convert steel scrap into liquid metal. And the first commercial Electric Arc Furnace (EAF), capable of using 100% scrap, was built in 1906.
Smaller, less costly to build, and more flexible to operate than blast furnaces, the spread of EAFs through the 20th century was limited only by the availability of scrap and electricity.
In the US, as demand for new steel approached saturation and as the steel in infrastructure and buildings constructed 40 or 50 years previously became available for recovery and recycling, scrap-based EAF production began to replace blast furnace steelmaking, even as the blast furnaces themselves used more scrap. Blast furnace production peaked in 1969, and no new blast furnace has been built in the US since 1980 (Construction Physics, 2023). Today, around 70% of steel in the US is made in EAFs (American Iron and Steel Institute, 2021).
The same pattern of increasing demand, met initially from primary production and then later through a growing reliance on scrap, is now playing itself out in Europe and China, is set to take off in south Asia, and it is to be hoped will roll out across Africa. Steel production globally is projected to peak in the second half of the 21st century, with scrap supply following 30 or 40 years after that.
The growth of scrap-based production has been driven by economics, of course, rather than by any concerns about the climate or greenhouse gas emissions – but that doesn’t make it any less welcome. A tonne of steel made entirely from scrap has around one-fifth of the greenhouse gas emissions of a tonne of steel made from iron ore.
Does that mean we can all relax, and recycle our way out of the climate crisis? Sadly not.
The American Iron and Steel Institute (AISI) estimates that the USA now recycles between 70% and 80% of all of its potentially available scrap (AISI, 2021). The World Steel Association (worldsteel) puts the global recycling rate even higher than that, at around 85% for end-of-life scrap.
Then why, despite these impressive recycling rates, is there currently only enough scrap to meet around one-third of the global demand for steel? The main reason is that scrap availability reflects the level of steel production a generation ago, rather than today. Steel production in 1985 was around 720 million tonnes. Today it is around two billion tonnes. Even without taking account of end-of-life recovery and furnace yield losses there is no way to make those numbers add up.
As demand for steel levels off in the future, a higher proportion of that demand will be met from scrap. In its ‘Sustainable Development Scenario’, in which the end-of-life recycling rate rises to 90%, the IEA estimates that there would be enough scrap to meet 45% of the demand for steel in 2050 (IEA, 2020). That is something to celebrate. But to put it the other way around, it would mean that 55% of the world’s steel – perhaps 1.2 billion tonnes of it – would still be made directly from iron ore.
To have any chance of limiting climate change to ‘well below 2 degrees’ and at the same time respecting the aspirations of 9 to 10 billion people, two things therefore need to happen. Firstly, the vast majority of primary steel will need to be made using ‘near zero’ emission sources of iron – using hydrogen-based direct reduction iron (DRI), direct electrolysis, biofuels, carbon capture or other new processes. And secondly, the electricity used in steelmaking will need to be generated with near zero emissions, whether it is used to power electric arc furnaces, hydrogen production, or direct electrolysis.
Those are the twin challenges for policy makers, steelmakers and steel users, and they apply across the whole sector.
To meet those challenges, they, and we, need to be able to compare the GHG emissions performance of all steelmaking on a like-for-like basis, whether steel is made from 100% scrap, 100% primary iron, or from any ratio of inputs in between – an approach pioneered in the ResponsibleSteel Production Standard, and recommended by the IEA, German Steel Association and others.
So let’s hear it for the recyclers, but also for the ‘near zero’ power generators, and the ‘near zero’ iron innovators.
And for a successful transition to a net-zero steel economy.
By Matthew Wenban-Smith
International Women's Day: Celebrating women working across the steel supply chain
In the second half of the twentieth century, women's participation in the global workforce grew remarkably. In the United States, female participation in the workforce surged from around 33% in 1948 to over 50% by the late 1970s (U.S. Bureau of Labor Statistics). Similarly in Europe, countries like France and Germany saw a rise from around 45% in the 1960s to over 60% by the 1980s (OECD, 2021). And in South America, Brazil also witnessed significant progress, with participation growing from approximately 18% in 1960 to 40% in 1980 (World Bank, 2020).
Despite these advancements, industries like steel, mining, and metals remained predominantly male-dominated. A 2019 broad analysis of 66 global steel, metals, and mining companies revealed that women made up between just 3% and 29% of the workforce (S&P Global). Within the steel industry specifically, women account for only about 15% of the workforce, a figure that has remained largely unchanged over the past decade (World Steel Association, 2020). These figures illustrate the persistent challenges to achieving gender diversity within the steel and metals sectors, underscoring the need for continued progress.
As workplaces evolve and diversity initiatives gain momentum, more women are entering and excelling in traditionally male-dominated sectors. Their contributions are driving innovation, improving workplace culture, and challenging longstanding societal barriers.
In recognition of International Women’s Day, ResponsibleSteel is spotlighting a few of the women who are driving change across the steel supply chain – celebrating their impact, resilience, and leadership and emphasising the need for greater diversity and inclusion in the metals sector.
Above image courtesy of Borçelik
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Elle Gatto
Assistant Team Leader - Finished Product Shipping, ArcelorMittal Dofasco
Elle has been with ArcelorMittal Dofasco for just over five years. As an Assistant Team Leader in Finished Product Shipping, she's passionate about working on the floor and ensuring steel moves efficiently. Her department is the last line of defense - she takes great pride in knowing that her role contributes to guaranteeing that only the highest-quality steel reaches customers. For Elle, being part of a team that keeps production running smoothly is rewarding and motivating, and she's looking forward to continuing to grow in the industry.
What is it like to be a woman in the steel industry?
"Being a woman in the steel industry has its challenges, but also presents unique opportunities for growth and leadership. It's empowering to contribute to an industry that is traditionally male-dominated, proving that diversity leads to stronger teams and more creative solutions. While there may be moments of being one of the few women in the room, I see it as a chance to break barriers and inspire the next generation of women in manufacturing and engineering fields."
Stefania Bonaiuti
Supplier Carbon Neutral, SKF
Stefania began her 28-year journey at SKF working in bearing product lines and later serving as the marketing manager for steel-related offerings. Currently, she focuses on Supplier Carbon Neutral deployment. Her career spans sustainability projects aimed at achieving net zero carbon emissions. Her experience in the steel industry and commitment to promoting sustainable practices continue to play an important part in advancing SKF's sustainability initiatives. She values the diverse perspectives women bring to the industry and actively supports gender balance and leadership development programmes at SKF.
What are your hopes for the future of the steel industry?
"Over the years, I have encountered many women in this field who brought diverse perspectives and innovative solutions, which are valuable in an evolving industry. Therefore, ensuring gender diversity remains crucial.
The future of the steel industry holds immense potential, rooted in sustainability, innovation, and inclusivity. Embracing cutting-edge technologies will enhance efficiency and reduce environmental impact. At SKF, we drive innovation with steel products that support our customers' sustainability goals. Collaboration within the industry and with other sectors is essential for sustainable change. We are proud to be part of initiatives like ResponsibleSteel, SteelZero, and RE100. By sharing knowledge and leveraging each other's strengths, we can tackle challenges effectively and drive the industry towards a more sustainable and prosperous future."
It's empowering to contribute to an industry that is traditionally male-dominated, proving that diversity leads to stronger teams and more creative solutions. - Elle Gatto, ArcelorMittal Dofasco
Tuana Çabuk
Production Engineer - Continuous Galvanizing Line, Borçelik
Tuana graduated with a degree in Mechanical Engineering. She has been working as a Production Engineer in the Continuous Galvanizing Line at Borçelik for two years. As a production engineer, she takes part in projects related to occupational safety, production processes, and quality performance of the lines she is responsible for.
What is it like to work in the steel industry?
"The steel industry is highly competitive and involves production processes that require advanced technology. As a result, it demands strong expertise in both engineering and production. Being actively involved in production processes and participating in various projects helps me to develop myself to be a better engineer. Since the steel industry is dynamic and requires technical proficiency, I believe that taking an active role in the manufacturing field, especially as a production engineer, provides a significant advantage.
Although the workforce is predominantly male, I take pride in contributing to the industry and promoting diversity as a female engineer. Gender diversity is a crucial issue, but I believe it should not be measured by having an equal number of men and women in every setting. Instead, it should be achieved by ensuring equal opportunities and a fair working environment for everyone. I feel fortunate to work in an organisation that supports this principle."
Dr. Ankita Gangotra
Senior Manager, World Resources Institute US
Ankita leads WRI's efforts to decarbonise the industrial sector through technology and policy innovation. Her work focuses on decarbonising the cement and steel industries, climate-oriented trade policies, green procurement standards, and fostering international cooperation. Ankita’s work includes advising U.S. policymakers and supporting industrial decarbonisation efforts in countries like India. Previously, she was a postdoctoral research fellow at Georgetown University, where she researched technology and policy options for industrial decarbonisation in the U.S.
What is it like to be a woman working on steel and heavy industry?
"I was apprehensive when starting work on the steel and industrial sector more broadly due to its male-dominated nature, but I’ve been inspired by the incredible women working on steel decarbonisation and their fierce advocacy. It’s been empowering to be surrounded by such passionate colleagues who are driving meaningful change. I hope we can accelerate the pace of steel decarbonisation while ensuring a just and equitable transition that benefits both communities and workers in the sector."
It's been very nice being a mentor and a point of call for other women. I like to think I've made other women in the industry proud. - Ashlea Muscat, BlueScope
Ashlea Muscat
Operations Manager Painting and Finishing Department, BlueScope
Ashlea joined the industry as a cadet in 2014 straight from university. After eleven years in the industry, she now runs the coil painting and finishing department at BlueScope’s Port Kembla Steelworks, looking after 126 people across 3 units and leading on day-to-day management, development, and process improvement across the department. Women now make up over 22% of BlueScope's site operators, a significant increase from 3% in 2017.
How did you get started in the steel industry?
"I first began in the industry as a cadet and I love all of the problem solving and challenging roles that I've held. It's been very nice being a mentor and a point of call for other women. I like to think I've made other women in the industry proud."
Aimee Boulanger
Executive Director, Initiative for Responsible Mining Assurance
Aimee has worked on mining issues for over 25 years, with substantial experience in directly affected communities. She has served IRMA’s leadership since 2011 and her role is to guide an organisation which is fully accountable to multi-stakeholder leadership, creating market value for more responsible business practices while ensuring credibility and accountability to all stakeholders.
What are your hopes for the future of the steel and mining sectors?
"I hope for a future where companies that create the products we rely on every day are valued not just for what they make, but for how they make it, ensuring that people, their lands, and their wellbeing are respected at every step. This means greater transparency in industries like mining and steel, so we acknowledge our shared impact and work together to reduce harm. And as we do, I hope we centre the voices of women—whose leadership, labour, and lives are so often overlooked—so that the benefits of industry are shared more equitably by all."
I hope for a future where companies that create the products we rely on every day are valued not just for what they make, but for how they make it... And as we do, I hope we centre the voices of women—whose leadership, labour, and lives are so often overlooked—so that the benefits of industry are shared more equitably by all. - Aimee Boulanger, IRMA
Angelica Olsson
Manager - Safety and Sustainability, Outokumpu
Angelica has worked her whole career in different types of industries. Before joining Outokumpu, she worked for several years in the paper industry as well as in the sawmill industry. She's held various positions, but she has the most experience in Supply Chain Management. She joined Outokumpu in 2018 and her first role was as a Safety Engineer for fire and security issues. Since 2022, she has worked as a Safety & Sustainability Manager.
What is it like to work in the steel industry?
"The steel industry has been by far the most interesting and challenging industry that I’ve worked in. The products we produce are fascinating and we all need to work every day to ensure that the way we produce steel is safe and sustainable. In my role as a Safety & Sustainability Manager, I’m fortunate to work with a great team of safety and sustainability engineers, and together we work hard every day, enabling our mills to produce safe and sustainable stainless steel. I really feel that the work we do makes a difference."
Marnie Bammert
Independent Consultant to ResponsibleSteel
Marnie is an independent consultant with 20 years of experience in developing, implementing and communicating sustainability certification and verification programmes. She has worked with ResponsibleSteel since early 2018. Marnie started her journey in the field of sustainability with oekom Research AG, a rating agency specialised in sustainable and ethical investments. She then moved to the Marine Stewardship Council (MSC), holding various positions including Deputy Director Europe. Since then, Marnie has worked as a consultant on projects ranging from protected areas to infrastructure, mining and nature-based solutions.
Why did you first begin working on the steel industry?
"People tend to focus on GHG emissions when discussing sustainability challenges of the steel sector. But the climate crisis cannot be solved in isolation. Working with ResponsibleSteel, I wanted to raise awareness for other important issues that the sector faces - human and labour rights, biodiversity, water stewardship, to name just a few. They are all connected to the climate question. I am proud to have played an instrumental part in creating the ResponsibleSteel Standard since it brings all of those issues together."
I envision a future for steel where much greater systems thinking, as well as intra- and inter- sector collaboration, drives progress - all enriched by the leadership of women. - Jen Carson, Climate Group
Jen Carson
Head of Heavy Industry, Climate Group
Jen Carson leads the strategy and growth of Climate Group's SteelZero and ConcreteZero. With a decade's worth experience working in the sustainability sector, she works to accelerate heavy industry decarbonisation. Jen joined Climate Group in 2021 after leading energy market research as an Associate at Delta-EE in Australia. Previously, she held various roles at Delta-EE, including creating its first cross-technology research service, as well as at The Carbon Trust, Dunelm Energy, and Kier Group.
What are your hopes for the future of the steel industry?
"I envision a future for steel where much greater systems thinking, as well as intra- and inter- sector collaboration, drives progress - all enriched by the leadership of women. By elevating the contribution of the demand side, and championing a competitive, decarbonised future, we will build a resilient steel industry that sets new standards for what is and isn't acceptable."
In conversation with IRMA and ResponsibleSteel: Exploring the role of standards in driving a responsible transition in steel and mining
ResponsibleSteel and the Initiative for Responsible Mining Assurance (IRMA) are collaborating on a joint project to better understand the social impacts of the net-zero transition for the steel and mining sectors and how standards can help guide good practice. This project is possible thanks to a grant from the ISEAL Innovations Fund, which is supported by the Swiss State Secretariat for Economic Affairs SECO.
We have asked the two project leads, Haruko Horii, Standards Manager at ResponsibleSteel, and Davidzo Muchawaya, Africa Regional Lead at IRMA, to answer a short Q&A for readers to better understand the project itself.
Q: Haruko, what is the vision for the project?
With this project, we want to understand the social impacts of the transition to net zero and what role standards can play in guiding good practice.
The term ‘just transition’ is used by different people in different ways. We need to determine what this looks like for the mining and steel sectors. What exactly is a just transition? Whose transition are we discussing? Workers, local communities or supply chains? What is the scope of transition? These are some of the questions we need to consider.
Decarbonisation could have adverse social impacts such as job losses or displacement and significant effects on weakening the economic viability of affected communities. Initial research has shown that communities are facing significant social impacts caused by the transition to low-carbon practices. For instance, thousands of people have lost their jobs as a result of shifting from blast furnace technology to electric arc furnaces. These job losses have in turn impacted the wider community’s economic stability, community identity, and overall well-being.
These are the types of issues we aim to identify through this project, assessing how voluntary sustainability standards (VSS) can address them, identifying gaps, and outlining steps for future, more detailed work that could lead to larger-scale initiatives. We’ll test our findings by engaging with workers, unions, business leaders, community organisations, and other relevant stakeholders to identify an agreed approach and create practical guidance for players in the mining and steel industry.
Q: Davidzo, what do ResponsibleSteel and IRMA have in common, and why are they collaborating on a just transition?
We believe in the power of collaboration and mutual recognition. This project is just one of many examples of how different voluntary sustainability standards can complement and leverage each other's work. Specifically, ResponsibleSteel leverages the assurance system of standards such as IRMA’s at mine site level, while focusing on the steel production aspects. Importantly, both ResponsibleSteel and IRMA were founded on a multi-stakeholder governance system, which has been recognised as a leading practice both by industry and NGOs. This model is recognised as best practice to ensure transparency, accountability, and inclusivity.
The collaboration specific to a just transition is born out of the necessity to ensure two hard-to-abate sectors, steel and mining, address the realities workers and communities are facing in our changing world as many existing mine and steelmaking sites face adaptation or closure. Given the varying impacts of decarbonisation across regions, IRMA and ResponsibleSteel are uniquely positioned to provide frameworks that apply across these different contexts since they are both standard-setting organisations operating globally. What is more, they are able to consider both decarbonisation and the potential social impacts of the transition at the same time.
Q: How do each of you respectively integrate just transition into your standards?
Haruko: Standards are going to play a critical role in promoting accountability during the transition ensuring they are fair and equitable. Although there is no explicit reference to a just transition in the current ResponsibleSteel International Production Standard, there are some elements to address the transition under Principle 4: Decommissioning and Closure, which requires consultation with key stakeholders to minimise any adverse impacts of site closures. In future, the scope of this principle could be expanded to address issues related to site closures, or the Production Standard could adopt a different approach by providing a just transition framework giving steel producers guidelines and tools to navigate an equitable transition with workers and affected communities. We plan to discuss these approaches with stakeholders in the next phases of the project. Integrating practices into the Production Standard will help ensure the industry’s transition is both environmentally and socially just.
Davidzo: As for the IRMA Standard for Responsible Mining, multiple chapters and requirements articulate what best practices could and should be for mining operations wishing to ensure a just transition for workers and affected communities. A prominent example is the requirement to involve affected communities and stakeholders in the development, design, and implementation of the mine rehabilitation and closure plan. Going beyond minimum transparency, the IRMA Standard outlines a series of requirements dedicated to the adequate estimation and financing of mine closure and post-closure. Research shows that mining operations often leave behind environmental and social liabilities, without taking charge of costs associated with the rehabilitation or appropriate closure of the sites thereby foregoing an adequate transition.
Crucially, the role played by both ResponsibleSteel and IRMA would not be the same without their multi-stakeholder governance systems. Thanks to the decision making process that takes into account private sector players as well as rights holders and labour unions, they can ensure that the voices of all parties are heard and taken into account in an equal way - hopefully adding the “just” element to “transition”.
Q: Davidzo, who is the main audience for this project?
The main audience for this project is workers and labour unions, as workers are most directly affected by the transition. Operators, from mining companies to steelmakers, are also key since, as employers, their actions and decisions will be critical to the social impacts of the transition, alongside national and subnational governments. Local communities impacted by the transition, NGOs that aim to act in their interests and standard-setting organisations are also key stakeholders.
Q: Haruko, is there a specific geographic focus for the project?
While just transition challenges and opportunities vary from country to country and even from site to site, the project is truly global as it strives to bring the complexities of these different realities to light. We aim to engage with stakeholders across different regions during the project to hear about the realities of the transition in different contexts. More information on this to come!
To find out more about IRMA, visit responsiblemining.net. To find out more about the project background, visit this page on the ISEAL website.
Davidzo Muchawaya is the Regional Lead for Africa at the Initiative for Responsible Mining Assurance (IRMA), where she leverages her extensive 15-plus years of experience in responsible sourcing and sustainability to further IRMA's vision. This vision aims to create a world where the mining industry respects the human rights and aspirations of affected communities, provides safe, healthy and supportive workplaces, minimizes environmental harm, and leaves positive legacies. Davidzo's responsibilities include leading the development and implementation of strategies for regional outreach to extend and deepen engagement with a broad spectrum of stakeholders, such as civil society organizations, labour unions, and communities impacted by mining activities. Davidzo plays a role in facilitating the dissemination of IRMA's audit reports and implementing awareness initiatives to enhance understanding of the IRMA system among stakeholders.
Davidzo is currently co-leading an ISEAL-funded project that explores how voluntary sustainability standards can drive a responsible transition in the steel and mining sectors. The project aims to understand the social impacts of the industry's shift toward a low-carbon economy and the role of multi-stakeholder systems initiatives in ensuring a socially responsible transition.
Haruko Horii has 9 years of experience in the sustainability sector, including work with NGOs and a social auditing consultancy firm. In her previous roles with standard-setting organisations, she has worked on various social topics such as living wage, social impact assessment, and gender equality, while ensuring the team’s compliance with standard-setting best practices. Haruko is trained in social auditing (SA8000) and social impact assessment (IAIA). She has worked as a social auditor and consultant, assisting global companies in promoting human rights by developing social responsibility policies and strategies, and establishing assurance mechanisms through capacity-building activities, social audits, and assessments.
Haruko holds a Master’s degree in International Development from Wageningen University in the Netherlands.
September 2021 Newsletter
Please view our September 2021 newsletter by clicking the link below:
SKF joins ResponsibleSteel and SteelZero
21 September 2021, London – SKF – global ball bearing and seal manufacturer, has joined ResponsibleSteel – and at the same time SteelZero – demonstrating their strong commitment to drive decarbonisation of the steel industry.
SKF joins over 100 other global organisations who are members of ResponsibleSteel – the only global multi-stakeholder standard and certification initiative with a mission to maximise steel’s contributions to a sustainable society.
SteelZero is led by the Climate Group and in partnership with ResponsibleSteel. By joining SteelZero, SKF commits to using 100% net zero steel by 2050 and joins ten other businesses that have already made this pledge, including Lendlease, Mace Group and Ørsted.
Today greenhouse gas emissions from the steel sector alone account for around 7% of global annual emissions, and this is projected to rise in line with increasing demand. Given we have less than 10 years to halve global carbon emissions to get the world on track to reach net zero by mid-century, decarbonising steelmaking needs to be a critical part of that journey.
SKF offers solutions around the rotating shaft, including bearings, seals, lubrication, condition monitoring and maintenance services.
Rickard Gustafson, CEO SKF, said: “Steel is by far the biggest source of carbon emissions upstream in SKF’s supply chain. The transition from the current global steel production infrastructure to one which is carbon neutral is a massive undertaking. We are already working with our steel suppliers on this, but there are limitations on how much change we can drive unilaterally. We will be working together with other like-minded industrial users of steel to advocate for the structural changes needed and we will do this through our active membership of the SteelZero and ResponsibleSteel initiatives.”
Anne-Claire Howard, CEO of ResponsibleSteel, said: “We are delighted to welcome SKF as a member of ResponsibleSteel. We work with organisations from every stage of the steel supply chain – and partnering with companies who have the influence to drive the market demand for steel supplies to be sourced and produced responsibly will help accelerate the steel industry to become net zero by 2050.”
Mike Pierce, Director of Corporate Partnerships of the Climate Group, said: “Action is needed now to decarbonise the steel industry. SKF’s commitment demonstrates a clear drive to tackle climate change and sends a strong demand signal for net zero steel to the industry. We’re delighted that SKF has joined SteelZero. More businesses need to follow in SKF’s footsteps for us to be within a fighting chance of limiting global temperature rise to below 1.5C.”
-ENDS-
For any media enquiries, including interview requests, please contact:
Hannah Fairley, senior communications officer at Climate Group at hfairley(at)theclimategroup.org
Alison Lucas, communications director at ResponsibleSteel at alucas(at)responsiblesteel.org
Sian How, Manager Group PR at SKF at sian.how(at)skf.co
Notes to editors
About ResponsibleSteel
ResponsibleSteel’s mission is to maximise steel’s contribution to a sustainable society. A not-for-profit organisation, ResponsibleSteel is the industry’s first global multi-stakeholder standard and certification initiative. With members from every stage of the steel supply chain, ResponsibleSteel is developing an independent certification standard to ensure businesses and consumers can be confident that the steel they use has been sourced and produced responsibly at every stage.
About SteelZero
SteelZero is a global initiative bringing together forward-looking organisations to speed up the transition to a net zero steel industry. Led by international non-profit the Climate Group in partnership with ResponsibleSteel, organisations that join SteelZero make a public commitment to procure, specify or stock 100% net zero steel by 2050. By harnessing their collective purchasing power and influence, SteelZero is sending a strong demand signal to shift global markets and policies towards responsible production and sourcing of steel. #SteelZero
About Climate Group
Climate Group drives climate action. Fast. Our goal is a world of net zero carbon emissions by 2050, with greater prosperity for all. We focus on systems with the highest emissions and where our networks have the greatest opportunity to drive change. We do this by building large and influential networks and holding organisations accountable, turning their commitments into action. We share what we achieve together to show more organisations what they could do. We are an international non-profit organisation, founded in 2004, with offices in London, New Delhi, and New York. We are proud to be part of the We Mean Business Coalition. Follow us on Twitter @ClimateGroup.
About SKF
SKF’s mission is to be the undisputed leader in the bearing business. SKF offers solutions around the rotating shaft, including bearings, seals, lubrication, condition monitoring and maintenance services. SKF is represented in more than 130 countries and has around 17,000 distributor locations worldwide. Annual sales in 2018 were SEK 85,713 million and the number of employees was 44,428.
At SKF we drive improvements and create economic, environmental and social value in two main ways. By the business we make with our customers – the products, services, and business models we provide. And the way we make business, running our operations and those in our supply chain as a responsible business partner, employer, and corporate citizen.
SKF products and solutions are critical in enabling the transition towards a carbon free economy. SKF is a key enabling partner to many of the mature and emerging clean-tech sectors – from Wind power to Electric Vehicles, from Tidal power to remanufacturing. SKF engineers and technicians apply solutions like uptime contracts to help customers in more traditional process industries to understand and reduce their impact. For our own operations, we have been measuring and acting on the carbon emissions for more than 20 years – achieving sustained economic growth of the business while reducing the greenhouse gas impact in real terms. Looking upstream, we work with our partners in the supply chain to reduce the greenhouse gas emissions associated with the materials (mainly steel) that we purchase. www.skf.com
Aperam Becomes First Stainless Steel Company to Earn ResponsibleSteel Certification
23 September 2021 – ResponsibleSteel is delighted to announce, at an event hosted by Aperam, that the company’s Stainless Steel operations in Europe successfully passed third-party audit against the ResponsibleSteel Standard – the global sustainability standard for the steel sector.
ResponsibleSteel CEO, Anne-Claire Howard, said: “I am delighted that Aperam, a ResponsibleSteel™ Member since 2019, is the first stainless steelmaker to be awarded our certification for their European Stainless Steel operations. 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 Aperam who supported the development of the ResponsibleSteel™ Standard and are now able to see it implemented at five sites in France and Belgium. We look forward to continuing to work together on the next phase of our journey – Certified Steel.”
The ResponsibleSteel Standard was developed over three years through wide ranging public consultation with industry and civil society. It contains 12 principles with a wide range of criteria covering issues such as: health and safety, greenhouse gas emissions, water stewardship and biodiversity, human rights and labour rights and community relations. It is the world’s first and only global definition of what constitutes leading practices in environmental, social and governance (ESG) responsibility for steel production.
The audit of Aperam’s facilities took place in June and included Aperam’s Châtelet, Genk, Gueugnon, Isbergues and Saint-Denis sites in Belgium and France.
Mr. Timoteo Di Maulo, Chief Executive Officer and Member of the Leadership Team, said: “Aperam becoming the first stainless steel player to be certified under the ResponsibleSteel™ Standard is reassurance to our stakeholders that we produce responsibly. With Aperam, our customers have selected a partner of choice, offering them responsibly produced solutions that are also 100% recyclable and low carbon – solutions that are much needed for the sustainable society we strive to live in. At Aperam, we are convinced that true business success can only come together with social and environmental sustainability and we will pursue our strategy to further embed sustainability within all our processes. Aperam is proud to be the frontrunner of its industry in the field of Corporate Responsibility and we are delighted that all our teams’ efforts on sustainability and responsibility, already evidenced by our state-of-the-art CO2 footprint, are now fully recognized with an all-encompassing third-party certification of our processes at Stainless Europe.”
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 built 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/
For media enquiries contact:
Anne-Claire Howard, CEO +44 (0) 7787 411 461
Ali Lucas, Communications Director +44 (0) 7786 546 724
About Aperam
Aperam is a global player in stainless, electrical and specialty steel, with customers in over 40 countries. The business is organised in three primary operating segments: Stainless & Electrical Steel, Services & Solutions and Alloys & Specialties. Aperam has a flat Stainless and Electrical steel capacity of 2.5 million tonnes in Brazil and Europe and is a leader in high value specialty products. In addition to its industrial network, spread over six production facilities in Brazil, Belgium and France, Aperam has a highly integrated distribution, processing and services network and a unique capability to produce stainless and special steels from low cost biomass (charcoal made from its own FSC-certified forestry). In 2020, Aperam had sales of EUR 3,624 million and steel shipments of 1.68 million tonnes.
For further information, please refer to our website at www.aperam.com
Contact
Corporate Communications / Laurent Beauloye: +352 27 36 27 103
Investor Relations / Thorsten Zimmermann: +352 27 36 67 304
August 2021 Newsletter
Please view our August 2021 newsletter by clicking the link below:
The Net-Zero Steel Pathway Methodology Project (NZSPMP)
The final report and recommendations for the Net Zero Steel Pathway Methodology Project (NZSPMP) were published on 26th July. The full report can be downloaded here and the full press release can be seen here.
The project was set up in response to the view of many steelmakers that while they were supportive of the value of ‘science based targets’ (SBTs) for decarbonisation in line with the achievement of the goals of the Paris Agreement, they were concerned that key aspects of the specific methodology for defining a science-based target as developed by the Science Based Targets Initiative (SBTi) needed to be refined to recognise the characteristics of the steel sector.
The project has been led by a steering group consisting of 4 steelmakers (ArcelorMittal, Tata Steel, BlueScope Steel and GFG Alliance) together with ResponsibleSteel and worldsteel. Another 11 steel companies, and the German steel association have taken part as members of the project’s technical working group. Civil society organisations were briefed on progress through the project’s stakeholder reference group. ResponsibleSteel has been responsible for the project’s management, on behalf of the steering group as a whole.
The final report makes a number of recommendations which will be considered by the SBTi as an input for the development of SBTi steel sector guidance, due to start later in 2021.
The project’s recommendations do not represent a ResponsibleSteel position. The ResponsibleSteel Secretariat did not have a mandate to agree a position on its members’ behalf, and the process was not designed with this in mind. We agree with Adair Turner, Chair of the Energy Transitions Commission, that the report is a significant step, not a final product. Work is now needed by all stakeholders to review the report’s recommendations, and to consider what it means for their own work in relation to reductions of the steel sector’s greenhouse gas (GHG) emissions.
For ResponsibleSteel the report is important for a number of reasons. Firstly, the current ResponsibleSteel Standard (v1-1) requires that the corporate owner of any ResponsibleSteel certified site must have, “defined and made public both a long-term emissions reduction pathway, and a medium-term, quantitative, science-based GHG emisions reduction target or set of targets for the corporation as a whole”. The standard requires that steelmakers make their projections in relation to the use of primary as well as recycled steel explicit, together with their assumptions about public policy. The NZSPMP’s recommendations are well aligned with this approach. The ResponsibleSteel standard already recognises SBTi validated targets as meeting some specific requirements. We hope that the report’s recommendations will help more steelmakers develop SBTi validated targets in future, and so facilitate their ResponsibleSteel certification.
Secondly, the report considers a number of the same issues that are also currently under discussion in the ongoing development of the ResponsibleSteel requirements for ‘steel certification’. The NZSPMP report is focussed on company level target setting, but the need for consistent scope boundaries, a consistent and transparent approach to upstream and downstream Scope 3 emissions, and to the allocation of emissions to co-products – these are all issues that will need to be addressed at site level through the ResponsibleSteel requirements for steel certification. Different stakeholders will have their own views on the specific recommendations for the NZSPMP report – you may agree with some and disagree with others. But whether you agree or disagree with the recommendations themselves, we hope you will agree that they are worthy of consideration and discussion.
“ResponsibleSteel welcomes the publication of this important work” says Anne-Claire Howard, CEO ResponsibleSteel. “Steel is critical to human development and the world economy – but the industry has to reduce its net GHG emissions to zero within the next 30 years. Every steel company needs to plan its own pathway to achieve this, and to do so urgently. We look forward to seeing the recommendations in this report leading to the rapid development of credible, practical, comparable net zero GHG emission company targets and pathways by steel makers. There is no time to waste.”
July 2021 Newsletter
Please view our July 2021 Newsletter by clicking the link below:
Press Release: ResponsibleSteel announces world’s first certified steelmaking sites
ResponsibleSteel has awarded the world’s first certification to four steelmaking sites in Belgium, Germany and Luxembourg owned by ArcelorMittal. The sites are the first steel plants to be audited and pass the rigorous standards laid out in ResponsibleSteel’s certification program.
ResponsibleSteel’s Standard was developed over three years through wide ranging public consultation with industry and civil society. The Standard – the first of its kind in the global steel industry – achieved multistakeholder consensus and was approved by a majority of business and civil society members including IUCN, Fauna and Flora International, IndustriALL, CDP, The Climate Group, ArcelorMittal, BlueScope, voestalpine, Aperam, AngloAmerican, BMW and Daimler.
Anne-Claire Howard, ResponsibleSteel CEO said: “I am delighted that the first steel sites assessed against the very exacting set of criteria required in the ResponsibleSteel Standard have been approved. The ResponsibleSteel Standard was created by the steel sector’s only truly global multi stakeholder initiative. The current Standard gives business and consumers confidence that the site at which the steel is being produced is operated responsibly. The next phase in our journey, Certified Steel, 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.”
She said: “I would like to congratulate the teams at ArcelorMittal who have supported the development and now the implementation of the ResponsibleSteel Standard at these first sites in Europe. This is a ground-breaking moment for both ResponsibleSteel and the steel sector. I’m excited to work with the growing number of ResponsibleSteel members and am convinced that the pipeline of steel sites working to achieve certification will continue to grow over the coming months. This will send a clear and strong message to markets, investors, financiers and governments that the steel industry’s intent to not only decarbonize steel production, but also to ensure responsible ESG practices in steel making has well and truly begun.”
The ResponsibleSteel Standard contains 12 principles with a wide range of criteria covering issues such as: health and safety, greenhouse gas emissions, water stewardship and biodiversity, human rights and labour rights and community relations. It is the world’s first and only global definition of what constitutes leading practices in environmental, social and governance (ESG) responsibility for steel production.
Geert Van Poelvoorde, CEO ArcelorMittal Europe said: “Responsible production techniques and high ethical and business standards have become increasingly important to our customers and consumers. ResponsibleSteel certification gives our customers the reassurance that we meet expectations on setting carbon reduction targets, as well as meeting expectations on environmental and social standards at every stage of production. The certification process has involved many teams across ArcelorMittal, and I would like to congratulate them for their hard work in being the first sites to achieve ResponsibleSteel certification – this is a major achievement.”
Explaining what the business has learned from the ResponsibleSteel certification process, Mr Van Poelvoorde said:
“In particular, the ResponsibleSteel process has helped us to improve our social management approach towards our rights holders, including our local communities, our employees, and the contractors working on our sites. While social sustainability has always been an important topic for us, ResponsibleSteel has taught us to take a more management systems-based approach to areas such as human rights, diversity and labour rights. As a result, our aim is to now manage social topics with the same systematic rigour with which quality, environment and safety topics are handled.”
He added: “Given the considerable investments we have already made to achieve a 30% reduction in CO2 emissions by 2030, and carbon neutrality by 2050, as well as our broader environmental investments across our sites, I’m confident that we will achieve our goal of securing certification in each of our Flat Products sites early in 2022.”
The Chair of ResponsibleSteel and Executive Vice-President of BlueScope Steel, Gerry Tidd, congratulated ArcelorMittal and said: “ArcelorMittal proved its dedication to the task of improving its sustainability. It invested resources early to achieve this, and today’s certifications are its reward. All the members of ResponsibleSteel salute their achievement.
“Importantly, the ResponsibleSteel Standard is now real, in the marketplace, and stands as a credible marker for consumers to judge a steel company’s ESG credentials. The Standard is the result of hard debates and collaboration between the steel industry, its upstream suppliers, its downstream customers and with civil society who all worked together to solve a complex problem and develop a new Standard. ResponsibleSteel is still a young organisation but it has attracted a wide group of pioneers from across the union movement, environmental groups, the finance sector, consumers and of course the global steel industry. Today’s award is also their award.”
Deputy Chair of ResponsibleSteel and Global Director, Forests and Land at CDP, Tom Maddox, said, “Arcelor Mittal is the second largest steelmaker in the world and it has led the way, showing the steel sector it can produce steel in a more responsible way. Looking forward, the task now is to develop the Standard to go beyond Site Certification, to Steel Products Certification and the responsible sourcing of input materials and greenhouse gas emissions. Achieving this will ensure ResponsibleSteel, together with our Business and Civil Society members, continue towards our vision: to maximise steel’s contribution to a sustainable society.”
Watch the announcement event here.
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 built 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/
For media enquiries contact::
Anne-Claire Howard, CEO +44 (0) 7787 411 461
Ali Lucas, Communications Director +44 (0) 7786 546 724
June 2021 Newsletter
Please view our June 2021 Newsletter by clicking the link below:
April 2021 Newsletter
ResponsibleSteel consultation on GHG and Input Materials Standards
We are pleased to announce the 2nd public stakeholder consultation on the revised draft requirements for the ResponsibleSteel ‘Steel Certification’. The consultation will be open for 30 days, closing on 19th May 2021.
The draft requirements address the responsible sourcing of input materials and define GHG emissions performance thresholds for steelmaking. They are designed to supplement the existing requirements of the ResponsibleSteel Standard (v1-0). ResponsibleSteel certified sites that meet the additional requirements would be able to market and sell ResponsibleSteel certified steel, co-products and by-products.
These are challenging issues, and it is important that we get the requirements right since they will be key for achieving our vision of “maximising steel’s contribution to a sustainable society”. We are keen to receive your feedback on the draft proposals, as well as any suggestions on other options that are better placed to achieve our goals.
You can find the draft requirements, background information and consultation questions in separate documents on the responsible sourcing of input materials, and on GHG emissions, here.
Please provide your feedback by 19 May 2021 on the forms through these links:
For feedback on the draft requirements for the responsible sourcing of input material:
https://forms.gle/NYZa91ktrSWQY4Wx9
For feedback on the draft requirements for GHG emissions:
https://forms.gle/WmAsPwGfKaik8htF9
The US Steel Corporation joins ResponsibleSteel
ResponsibleSteel welcomes US Steel as the first North American Steel Maker to its membership. The United States Steel Corporation announced today its membership in ResponsibleSteel, with the following statement.
“ResponsibleSteel is an important part of U. S. Steel’s ESG commitments and the 2050 carbon neutrality goal that we just announced,” said U. S. Steel President and Chief Executive Officer David B. Burritt. “By joining ResponsibleSteel we are demonstrating our intent to take our efforts beyond goals and actually deliver profitable solutions for our stakeholders and the planet.”
GHG Emissions Intensity Performance Thresholds for Crude Steel
The new draft requirements for the ResponsibleSteel certification of steel were published for consultation this week – see elsewhere in this month’s newsletter.
One critically important aspect of the new draft requirements is the proposed threshold level of performance for greenhouse gas (GHG) emissions for crude steel production. Steelmakers would need to have GHG emissions below this threshold in order to sell their steel (and potentially other co-products and by-products) as ‘ResponsibleSteel certified’.
The proposed threshold developed by ResponsibleSteel considers all significant GHG emissions for the production of crude steel ‘from mine to metal’, including the emissions associated with the mining of raw materials, and also takes account of the proportion of scrap and iron ore used as an input material. By doing so it creates a level playing field for comparing GHG emissions for all steelmaking irrespective of production technology and site configuration, and provides a basis for steel users and specifiers in both the public and private sectors to source steel responsibly, without shifting emissions from one country, project or steelmaker to another.
ResponsibleSteel worked with the consultancy CRU to test and quantify the proposed approach using CRU’s international site-level GHG emissions modelling and analysis. In March, our Policy & Standards Director, Matthew Wenban-Smith, together with Paul Butterworth, Head of Steel Analysis at CRU, presented the results of the work and the thinking behind the ResponsibleSteel model. A recording of the webinar and accompanying slides are available from the ResponsibleSteel website.
ResponsibleSteel is hiring an Operations Coordinator
Are you looking for an opportunity to join a small team working to help achieve net zero carbon emissions for the steel sector by 2050? We are looking for a part-time Operations Coordinator (remote working) to support the ResonsibleSteel CEO and team in the implementation of the ResponsibleSteel programme. This could lead to a full-time role in 2022.
For more info please see the resources page.
BSI ANZ Pty Ltd joins ResponsibleSteel as an approved auditor
BSI has become a ResponsibleSteel approved auditor to provide credible third-party verification of the standard. BSI provide the highest of level credibility and integrity to ensure the implementation of the ResponsibleSteel standard.
worldsteel has announced their “champions” for 2020
ResponsibleSteel would like to congratulate all 9 companies who have been announced as worldsteel 2020 Champions. All of these organisations have met the criteria set out by worldsteel on demonstrating their commitment to continuing sustainable development.
ResponsibleSteel & CRU Webinar (March 2021)
GHG Emissions Intensity Performance Thresholds for Crude Steel
The webinar recording is split into two sections: in the first Matthew Wenban-Smith (Policy & Standards Director at ResponsibleSteel) presents the ResponsibleSteel GHG emissions performance threshold from the CRU data. In the second Paul Butterworth, Head of Steel Analysis, presents the technical data behind the proposed approach. An edited version of the webinar slides is available for download from the link.
‘Green Steel’
Steel production, and by extent the whole steel value chain, is facing intense scrutiny from policy makers and the public alike as protecting the environment and climate change rise on the global political agenda. Mainstream media is awash with articles showcasing new low carbon steel technology or so-called “green” steel. But there is no agreement about what the concept of “green steel” refers to. With this emerging new ‘label’ comes the risk of a backlash against unconsidered ‘green’ claims.
We have analysed this fast-moving space and the implications for the steel sector as well as the work of ResponsibleSteel itself. There are some key points that we believe should be considered:
Words matter. We think it is critically important that the term “green steel” should not address GHG emissions alone. We cannot be silent on the wide range of social, safety and environmental issues which are important to steel companies’ investors, customers and other stakeholders. Safety comes high on the list of concerns, as does the impact of mining where issues such as tailings dams, relations with Indigenous Peoples and local communities, human rights concerns and impacts on water and Protected Areas also come to mind. We would strongly advocate that any entity offering “green steel” would have to show how it addresses the range of social and environmental concerns and not only GHG emissions.
This means there is a clear choice – either not to use the term ‘green’, and to use instead a term specific to GHG emissions. Or, to address the other key issues that justify the use of the broader term. There are arguments for either of these options. For ResponsibleSteel, our decision is clear. Our mission is to maximise steel’s contribution to a sustainable society, and we believe that the range of issues must be addressed together, through an integrated approach. Steelmakers that want to demonstrate social and environmental responsibility need to show how they are responding to the challenges of climate change, but also to show how they are addressing other key social and environmental challenges facing the industry.
We do not believe this broader approach stands in the way of successfully responding to climate change. In fact, quite the opposite. The reduction of GHG emissions and the challenges of addressing other ESG impacts are not susceptible to quick fixes. Steelmakers, steel users and their suppliers need the long-term support of a broad range of stakeholders – including civil society organisations, investors and governments – on this journey. The support will be that much stronger for companies that address the range of issues, and weaker for those that focus on just one issue at the expense of others.
ResponsibleSteel strongly supports organisations in taking a broad approach to the issue of ‘green steel’ – embracing the need not only to address climate change, but also to address other issues including biodiveristy and worker’s rights. Three years ago there would have been an argument that the need to develop standards that address the steel sector’s GHG emissions is too complex, and too urgent, to be delayed by consideration of other ‘green’ issues. Today, however, this is not the case. The ResponsibleSteel Standard already exists and is applicable to steelmaking sites, with further requirements to allow for the certification of steel products nearing completion. ResponsibleSteel’s membership includes steelmakers producing 170 million tonnes of steel per year such as Tata Steel, ArcelorMittal, voestalpine and Hyundai, major mining companies such as Anglo American, BHP and Teck, downstream users such as BMW, Daimler and Lendlease, as well as social and environmental organisations such as CDP, The Climate Group, the Clean Air Task Force, IndustriALL, IUCN, and Mighty Earth. It is challenging to develop a standard for ‘green steel’ that commands multi-stakeholder support – we encourage organisations working on sustainability issues and steel not to duplicate this work, but rather to seek ways to build on the work that has already been done.
In relation to standards for ‘green steel’, we urge all organisations, businesses and governments, in the first instance, to consider how existing standards and methodologies, such as those of ResponsibleSteel, could be used in the context of steel procurement targets and specifications, including public procurement specifications, rather than through the development of new standards, definitions and methodologies: we believe this approach would be a faster as well as a more effective approach to create demand and to support the transition to net zero.
We welcome any feedback on this article and propose holding a webinar for ResponsibleSteel members and interested stakeholders to further discuss these issues later this year.
ArcelorMittal Eisenhüttenstadt audit
The ArcelorMittal site in Eisenhüttenstadt, Germany, is currently undergoing an audit to achieve ResponsibleSteel certification. The site develops and produces hot metal, semi-finished products, hot and cold rolled strips and coated coils and sheets.
Stakeholders may announce their interest in being interviewed by the auditors on the ESG performance of the site via this page, where they can also find further information on the ResponsibleSteel audit process.
Due to the Corona virus pandemic, the on-site visit to the site including interviews with site workers will take place at a later stage.
