News & Events

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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Collective Creativity will Strengthen Sustainability

The United Nations designated 21 April as World Creativity and Innovation Day, citing that the “concept of creativity is open to interpretation, from artistic expression to problem-solving in the context of economic, social and sustainable development.” Dietmar Grimm, Vice President of Corporate Strategy & Sustainability Solutions for Trimble, discusses why we urgently need to capitalise on today’s innovations to drive future change.

Now, more than ever, creativity and innovation are needed to accelerate efforts to achieve the UN’s Sustainable Development Goals (SDGs). Trimble is committed to ensuring that our mission, solutions, and initiatives align with and support the objectives of the SDGs. And joining forces with industry initiatives like ResponsibleSteel underscores that alignment.

Innovation has always been and always will be at the heart of Trimble. For almost 50 years, the company has pushed the boundaries of technology to help our customers work better, faster, safer, cheaper, and greener across the industries we serve. These are not separate goals, but actually five, highly intertwined principles. Trimble’s contribution toward helping customers operate more efficiently enables them to operate more sustainably. Examples include reducing idle time on machinery, lowering fuel consumption and emissions and reducing construction waste – all through data driven insights and decisions.

In the world of steel, our design software has enabled some of the most intriguing and intricate designs for buildings, bridges, and other structures. Technology provides endless possibilities to architects to come up with designs that really push the limits. That same technology now needs to give us the input to drive down carbon emissions across all of the construction continuum. All phases that make up an asset’s lifecycle – design, build, operate – carry emissions. That’s why our Sketchup design software portfolio includes tools that help designers make the most environmentally-friendly design decisions at the earliest possible stage, taking into consideration the effects of a building’s orientation, the local climate, the use of materials, the number and type of windows, and the application of HVAC technology. All with an eye to creating designs with the smallest environmental footprint over the long term.

We incorporated a carbon calculator in our Tekla structural design software and worked with the One Click LCA automated life cycle emissions assessment software to offer our users enhanced visibility of the environmental impact of their structural designs. And it is also why Trimble strives to connect the traditionally separated workflows within the construction industry: to make data flow across projects to provide short- and long-term insights.

With the wider steel and construction industries being some of the largest industrial emitters of CO2, industry-wide sharing of data is crucial. With more data availability, designers can more readily come up with awe-inspiring and creative designs that still ensure our cities’ livability for decades to come. Working together with the wider industry in bodies like ResponsibleSteel has the potential to spark some interdisciplinary thinking. Many solutions to the global sustainability challenges are still years out. But we have opportunities to drive real emissions down already today if we build on the successes we already accomplished to make even more deliberately sustainable choices in all aspects of business operations. We need to challenge ourselves — on this day even more than on others — to dig deep into our collective wells of innovation and creativity and find new and lasting solutions together.

By Dietmar Grimm, VP Corporate Strategy & Sustainability Solutions, Trimble Inc.

As VP Corporate Strategy and Sustainability Solutions at Trimble, Dietmar Grimm is helping the company drive profitable systems change across industries to a more productive, efficient, and sustainable, low-carbon, diverse, and equitable future for all communities.

April 21, 2023
2023
Member Articles
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April 2023 Newsletter

Please view the April 2023 newsletter by clicking the link below:

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April 21, 2023
2023
Newsletter
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Harassment has no place in a ResponsibleSteel-certified site: Jana Loos on ArcelorMittal Bremen’s zero tolerance for harassment

ArcelorMittal Bremen in Germany was one of the first sites to become certified against the ResponsibleSteel Standard. As part of the certification process, the site had to address issues involving workplace harassment which had been raised by several female employees. Jana Loos, leader and spokesperson for ArcelorMittal Bremen’s anti-harassment project explains how the site tackled these issues and why it is so important to be vigilant and help to empower and support those who might be at risk.

A female worker received feedback from her team leader: “I like how you told the whole team that you won’t continue to tolerate their sexist comments towards you. However, my wife would never have allowed this to happen in the first place.”

Oftentimes, sexual harassment in the workplace does not constitute an overt criminal offence but is more subtly pervasive. In many cases, clumsy communication crosses the boundaries of what is appropriate in a professional environment. Or it transforms a normal social situation into an awkward one – simply because of one word too much, one touch in the wrong place or too long a gaze.

A while back, several women working at ArcelorMittal Bremen’s steel factory had the courage to disclose their experiences and seek help.  A group of health experts, working council members and labour union members found the official processes wanting and united to tackle the issue. Shortly after, ArcelorMittal Bremen founded a project group to implement the social management standards required to obtain certification against the ResponsibleSteel Standard. This was the deciding factor that gave the topic the significance it needed.

The ResponsibleSteel Standard includes requirements which ensure a site identifies any risks, takes the necessary action to address such risks, and monitors the outcomes to determine where improvement is needed. Principle 6 of the recently updated ResponsibleSteel International Standard V2.0 specifically aims to make sure that “certified sites respect the rights of workers and support worker well-being.” Certified sites make the commitment to uphold labour rights and human rights, including maintaining a zero-tolerance policy for workplace harassment. Furthermore, certified sites must have effective procedures in place to understand and address any concerns raised by workers or their representatives.

Now, a few years later, ArcelorMittal Bremen has a contact person and a broad communications campaign on harassment. Trainings on the topic are implemented at all levels – comprising a seminar for new apprentices, leadership training and an awareness guide for all employees.

However, the path has not been smooth. With female staff making up only 8.6% of the workforce, some employees do not understand and even ridicule the topic. One male employee commented: “I, for my part, would like to be harassed one day!” The project team often need to stand up to such uninformed or hostile attitudes and provide basic education around these issues. The most important aim is a respectful working environment. There is no need to slander a specific person for a rude comment. Instead, the project group focuses on the empowerment of women – their approach is to equip women with the knowledge and training they need to tackle harassment situations confidently as well as raise overall awareness of the situation.

Since the beginning of the project, a noticeable change has taken place. Sexual harassment is a topic that is being talked about – even by the management board during official staff meetings with around 1,000 attendants. The goal is not “zero cases reported” – because this does not equal “zero cases” in actuality.  In an atmosphere of mutual respect and encouragement, people experiencing harassment will have the courage to speak up and talk about their experiences. Therefore, the goal must be “as many cases reported as possible”.

We encourage any other organization to walk a similar path and provide their staff with all they need to tackle harassment situations. We firmly believe that this is a very important aspect of producing “responsible steel.”

By Jana Loos, Project Leader, ArcelorMittal Bremen

Please note: In the text, we only mention women being harassed by men, because this is the only constellation, we have come across so far in our organization, but we are fully aware that members of the LGTBQ+ community are exposed to similar harassment and of course, men might be harassed as well.

April 19, 2023
2023
Member Articles
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Maximising Circular Economics for Decarbonising Steel

The climate challenge for the steel industry is now well-established. Steelmaking currently accounts for between 7% and 9% of global CO2 emissions. We have not only the opportunity to do things differently across the industry, but it is vital if we are to drastically reduce the amount of emissions emitted from the steel value chain, and so have a real and lasting impact on people and the planet.

Steel is often talked about as the world’s most circular material. Maximising the recovery and use of recycled steel (i.e. scrap steel) is a critical lever and the most natural way to drive decarbonisation in the steel industry. The rates of scrap recovery today are extremely high – the highest of all materials. Worldsteel estimates that steel is recovered at a rate of 85% on average – far more from some product markets. Still, there is always opportunity for further progress. And yet, frustratingly, scrap alone is just not sufficient to meet global steel demand, and even if the use of scrap was maximised, published models tell us that it won’t provide more than half of what we need to get us to net zero by 2050 (International Energy Agency, 2020).

Clearly, as more and more buildings, cars and washing machines reach the end of their useful life, we must ensure that every last tonne of scrap is recovered, in order to produce lower-footprint steel products. But this alone will not be enough if we are serious about net zero by 2050.

It is absolutely vital that we also incentivise the decarbonisation of the only other alternative, the reduction of iron ore, however this is done, and however much scrap is available to complement it. And this is why the ResponsibleSteel International Standard adopts a ‘sliding-scale’ approach to incentivise decarbonisation across all steelmaking, regardless. In effect, our thresholds provide an equitable and effective mechanism for assessing progress on core decarbonisation across the sector and have been echoed and endorsed in numerous reports, proposals and schemes, by the International Energy Agency (IEA), Science Based Targets Initiative (SBTi), the Sustainable Steel Principles, the German Steel Federation and the Australian Green Buildings Council.

There is also a third dimension here. Let’s not forget that to maximise the progress to a net zero world, we need product design to create more value from every tonne of steel we produce and so reduce demand overall. A car made with stronger steel requires less material. Ball bearings that last longer will not need to be replaced so often. In each market, therefore, policymakers will need to reward product design that lengthens the product lifetime, reduces the amount of steel needed for a given purpose, and rewards the reuse and remanufacturing of steel products.

All these three elements – scrap recycling, demand efficiency, and decarbonisation progress – will be needed to get the steel sector to net zero within the next three decades. But how much the first two of these levers can contribute will be critical to understanding the scale of the decarbonisation progress challenge. In the coming months, ResponsibleSteel will be publishing further analysis of both scrap availability and steel demand to shed further light on what is undoubtedly the industry’s biggest challenge.

April 4, 2023
2023
Editorial
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ArcelorMittal Vega Becomes ResponsibleSteel Certified

ArcelorMittal Vega in São Francisco do Sul, Santa Catarina, has recently been successfully audited and certified against the ResponsibleSteel International Standard, recognising not only the site’s efforts to implement responsible production processes, but also efforts to implement social and sustainability transformations and encourage diversity and inclusion.

The certification’s rigorous auditing process lasted around a year and took place during the largest expansion works completed in Vega’s history, requiring an investment of US$350 million. The audit was performed by the independent consulting firm DNV (Det Norske Veritas). Auditors observed the processes implemented onsite and interviewed a range of company leaders, employees, suppliers, third parties, and representatives from the government and entities and institutions from within the local community.

ArcelorMittal Vega is the group’s third Brazilian unit to receive ResponsibleSteel certification, ArcelorMittal Tubarão and ArcelorMittal Monlevade having obtained certification in 2022. ArcelorMittal aims to have all of the group’s production units in Brazil certified in the coming years.

For Jorge Oliveira, CEO of ArcelorMittal Aços Planos LATAM, this achievement demonstrates the company’s commitment to responsible and sustainable steel production and its respect for individuals. “ResponsibleSteel certification also reinforces our main purpose, which is to manufacture smart steels for people and the planet, and represents a milestone in Vega’s history, given that this year marks two decades of operations,” Oliveira affirmed.

ResponsibleSteel’s CEO, Annie Heaton commented, “This is the third certification of ArcelorMittal’s operations in Brazil and highlights the growing momentum in the sector to produce responsibly sourced net zero steel in South America. ArcelorMittal Vega has produced a clear roadmap to achieving their target of net zero emissions by 2050. And it’s critical that the responsible production of steel goes beyond decarbonization, ensuring effective management of resources and respect for workers and local communities. This certification demonstrates ArcelorMittal Vega’s commitment to meeting ResponsibleSteel’s broad set of ESG requirements. An example of this is their commitment to greater gender equality, with a goal of achieving up to 25% women in leadership positions by 2030. This is a significant adjustment in a traditionally male-dominated industry.”

The report by DNV highlighted the site’s Environmental Management System and the site’s commitment to preserving biodiversity in the region by promoting the identification and continuous monitoring of species of fauna and flora present in its Private Natural Heritage Reserve (RPPN), which occupies one third of the industrial site, in addition to the preparation of a Biodiversity Master Plan. Through means of its Water Master Plan, Vega also seeks to guarantee a reduced impact on public water sources by reusing an average of 98% of water collected onsite.

“Receiving this global certification in a year that marks 20 years of operation at the Vega unit as we move towards our largest expansion efforts to date demonstrates that we remain steadfast in our objective for sustainable steel production and commitment to community development, individual safety and respect for the environment,” Sandro Sambaqui, General Manager of ArcelorMittal Vega, stated. The expansion, which began in 2021, is expected to expand the site’s annual production capacity from 1.6 million to 2.2 million tonnes.

The audit report also recognised initiatives implemented to promote inclusion, diversity and social transformation. For example, the site has introduced incentive to increase representativeness among the female workforce in positions that were previously largely held by men. The Technical Sustainability Program, which, since 2018, has aimed to train, place value and offer qualifications to young people living in São Francisco do Sul within the region’s labor market, has contributed to achieving gender equity. Approximately 89% of the students participating in the program are employed at ArcelorMittal Vega or other companies in the region – a development opportunity that has also benefited female professionals. All of ArcelorMittal’s Brazil units have set targets to increase the number of women throughout all areas of the company, including operational, administrative and leadership positions, to 25% of the workforce by 2030.

Read the audit summary here.

March 28, 2023
2023
News
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Trimble Joins ResponsibleSteel

Trimble has become the first Building Information Modeling (BIM) software technology provider to join ResponsibleSteel. Trimble’s Tekla software is one of the construction industry’s most widely used software product suites for the design, engineering, fabrication and detailing of steel structures.

With owners and operators of both building and infrastructure assets increasingly expecting their construction partners to choose sustainably sourced materials, there is a growing opportunity and urgency for the steel industry to minimize its environmental impact. With Trimble’s Tekla software solutions, engineering, detailing and construction firms and fabrication workshops can more effectively calculate and plan the use of steel in steel structures and in steel reinforcement in concrete structures.

Tekla’s Embodied Carbon Calculator enables designers and detailers to assess the potential environmental implications of designs to quickly compare various structural options’ carbon impact. Additionally, a plugin to Tekla Structures enables the upload of material quantities in a design to One Click LCA, a lifecycle assessment software that helps users calculate and reduce the environmental impacts of their designs.

“Thanks to its industry-wide nature, ResponsibleSteel has the ability to bring about impactful change to the way steel is created, sold, sourced and applied,” said Päivi Puntila, director, Business Development and Sustainability Lead for the Structures Division at Trimble. “As one of the key players in design software for steel structures, Trimble solutions have contributed to making construction more sustainable by raising efficiencies, helping avoid waste during construction, and enabling data reporting on the climate impact of projects. Our membership of ResponsibleSteel is further proof of our commitment to helping protect and build a better world to drive a sustainable future.”

Annie Heaton, ResponsibleSteel’s CEO, commented, “As the only global multi-stakeholder initiative for the responsible production of steel, we have created a platform where companies from across the steel value chain can come together to learn and work together to shape the future of the industry. Trimble, as a leading software supplier for the construction industry working to improve productivity, safety, transparency, and sustainability, will be a valuable addition to the ResponsibleSteel membership community. Buildings and construction make up around 39 percent of global carbon emissions, 11 percent of which is from construction and the manufacture of building materials such as steel. Tekla software allows engineers to measure and compare the carbon footprint of different structural designs, helping to reduce their environmental impact.”

“Companies, through industry associations, are uniting to advance sustainability to empower collective action. Associations provide opportunities to share best practices, collaborate on challenges important in their industries and set standards on GHG emission and the sourcing of input materials,” said Dietmar Grimm, vice president, Trimble Corporate Strategy and Sustainability. “By aligning with ResponsibleSteel, Trimble and Trimble technologies can play an important role in helping to drive the production and use of low-carbon steel as well as help position the construction industry as a sustainability innovator.”

In 2022, Trimble received approval for its emissions reduction targets by the Science Based Targets initiative (SBTi), a coalition of the CDP, the United Nations Global Compact, the World Resources Institute, and the World Wide Fund for Nature, joining a growing number of companies taking urgent action on climate change. Trimble has also joined forces with other companies and climate leaders in the Business Ambition for 1.5°C campaign, the We Mean Business Coalition and the Race to Zero Campaign.

March 27, 2023
2023
Article
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March 2023 Newsletter

Please view the March 2023 newsletter by clicking the link below:

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March 24, 2023
2023
Newsletter
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Climate Leaders to Drive Decarbonisation in South Korean Steel

On Thursday March 23rd, the Climate Group (SteelZero), ResponsibleSteel and Solutions for Our Climate (SFOC) held a special multi-stakeholder industry seminar to discuss decarbonisation of the steel industry and pragmatic solutions to tackle climate change. The event, “Decarbonising South Korean Steel – Aligning Customer Demand and Production Pathways” is the first of its kind to be held in South Korea.

Industry experts and practitioners across the steel value chain gathered to share their expertise on steel decarbonisation pathways and corporate climate leadership. The event brought together corporates with investors and civil society to discuss the most effective and pragmatic routes to rapid decarbonisation, technical breakthroughs and the role companies across the steel value chain can play to support the growing sustainable steel market in South Korea.

South Korea’s steel industry is a major domestic industrial and economic sector, and a dominant player on the world stage. In 2021, South Korea ranked as the world’s 6th largest steel-producing country, with 71.4 million tons of crude steel accounting for a 3.8% share of global production. Additionally, the South Korean steel industry is an important material supplier for major related industries such as automotive, construction and shipbuilding, with a huge inter-industrial linkage.

Attendees included some of the leading players in the steel industry – both steel producers and downstream customers such as POSCO, Hyundai Steel, SeAH Steel, SeAH Besteel, Donguk Steel, Hyundai Motor Group, Schneider Electric, WSP, A.P. Moller Maersk, Ørsted and others.

Annie Heaton, CEO at ResponsibleSteel said, “In 2022, POSCO together with ResponsibleSteel announced the certification of Pohang and Gwangyang Steelworks against the ResponsibleSteel Standard – one of the biggest steel sites in the world to achieve this accolade. This event will build on this momentum, create new partnerships and accelerate steel decarbonisation in South Korea and across the global steel value chain.”

Jen Carson, Head of Industry, Climate Group said, “All players right across the steel industry have a key role to play in accelerating decarbonisation. That’s why it’s incredibly important that steelmakers, steel consumers, policy makers, investors and civil society come together and take action on net zero steel. This conference is a pivotal moment in building a shared understanding of the current progress on lower emissions steel production in South Korea. And crucially, the opportunities for net zero steel production and procurement.”

Anna Song, Lead – Steel, Industry, SFOC said, “The steel industry around the world plays a vital role in curbing industry emissions to be on track with the 1.5 degree Paris Agreement, and Korean steel is no exception. The steel buyers on the demand side will play an especially significant role this decade because they create the business need for a rapid transition towards decarbonisation of the Korean steel industry.”

The event signalled an important exchange of ideas between key global and Korean industry players across the steel value chain. Momentum on steel decarbonisation is expected to continue building in the coming months, with the annual SteelZero Summit set to take place in Singapore on June 8, as part of the broader Climate Group Asia Action Summit. The Summit will focus on bringing together decision makers and business leaders from the steel and energy sectors to accelerate Asia’s role as an economic, green powerhouse – with a clear path to net zero. It’s part of the roadmap to Climate Group’s flagship event Climate Week NYC.

March 23, 2023
2023
News
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Celebrating Women in Steel: Gender equity, slow but steady steps

To celebrate International Women’s Day, Sofia Trombetta, Director of People, Health and Wellness at ArcelorMittal Long Steels LATAM and a global sponsor of diversity and inclusion for ResponsibleSteel Member ArcelorMittal, explores the slow but steady progress being made in the company as well as the wider industry to promote gender equity.

Despite advances in women’s rights and the greater occupation of spaces in the public and private spheres, society remains unequal in gender issues. In the global steel industry, the scenario is not different. We are a company of a traditional and mostly male sector. Aware of our responsibility, ArcelorMittal leads this transformation to build a more equitable community.

According to the World Economic Forum, gender inequality at work will only end in 253 years. Companies play an essential role in accelerating this process of social evolution. Research shows that more diverse teams (with more women and people with different backgrounds and profiles) bring better results to companies. In the case of its Brazilian operation, ArcelorMittal joined UN Women in 2020 and launched the goal of having 25% of women in leadership positions in its workforce by 2030.

To move in this direction, the company has adopted Woman Career Pathing, which focuses on mentoring and developing women in leadership with the goal of career acceleration. Another initiative is STEAM Girls, aimed at girls from 13 to 18 years old, with the objective of contributing to the improvement of teaching and learning in Science, Technology, Engineering and Mathematics. And the project “Elas na Siderurgia” aims to train women who were apprentices.

In addition, ArcelorMittal’s Tubarão unit – located in the municipality of Serra (ES) and the first steel plant in the Americas to obtain certification of its operations against the ResponsibleSteel Standard – is also aligned with this purpose. The plant, together with the unit of Vega (SC), held the 2nd edition of the Woman Award last year. The trophy was created to identify and recognize women, in various areas of activity, who are at the forefront of business or transformative social projects in the States of Espírito Santo and Santa Catarina, and for its third edition this year, will launch a public notice at national level. The action reinforces the company’s commitments to encourage female empowerment.

At the steel plant in Monlevade (MG) – another unit in Brazil to receive ResponsibleSteel certification – the company’s specific goal for women in leadership positions gained the attention of auditors during the certification process. The company has about 14,000 employees, approximately 14% of whom are women and 21% of those hold leadership positions. A breakthrough that already demonstrates the effect of our gender-inclusive actions.

Diversity and Inclusion is a theme that has been on the agenda at a global level since the creation of the ArcelorMittal Group’s Gender Diversity Steering Committee. In 2019, with the constitution of the Diversity and Inclusion Committee in the Brazilian operation, the company began the effective design of a program that supports the definition of the strategy and the setting of metrics and KPIs. In this way, ArcelorMittal in Brazil promotes respect, acceptance and appreciation of diversity not only as concepts, but as values in daily practice.

And the initiatives that support these values are not restricted to ArcelorMittal’s internal workforce. We have revisited several programs to promote greater representation of women in the company. The I AM Qualificar program offered technical training and qualification courses in steel processes for residents of Itatiaiuçu, Itaúna, Mateus Leme and the wider region. At the time, campaigns were created to specifically attract the female population of these locations. In another program, called I AM Expert, there was an increase in applications from women for the vacancies offered. The last cycle of the Apprentice program had countless girls interested in entering the industrial sector.

The company wants to create a more welcoming, fair and plural environment for women. We understand this is a challenging journey, but we are committed to achieving this goal by 2030.

By Sofia Trombetta, Director of People, Health and Wellness at ArcelorMittal Long Steels LATAM

Sofia Trombetta is Director of People, Health and Wellness at ArcelorMittal Long Steels LATAM and a global sponsor of diversity and inclusion in the ArcelorMittal Group.

March 8, 2023
2023
Member Articles
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Decarbonising South Korean Steel: Aligning Customer Demand and Production Pathways

On Thursday March 23rd, the SteelZero, ResponsibleSteel and Solutions for Our Climate (SFOC) will be hosting a special multi-stakeholder industry seminar in Seoul to discuss decarbonisation of the steel industry and pragmatic solutions to tackle climate change.

The event will bring together industry experts, businesses across the steel value chain, investors, and civil society to share their expertise on steel decarbonisation pathways and discuss the most effective and pragmatic routes to rapid decarbonisation, technical breakthroughs and the role companies across the steel value chain can play to support the growing sustainable steel market in South Korea.

South Korea’s steel industry is a major domestic industrial and economic sector, and a dominant player on the world stage. In 2021, South Korea ranked as the world’s 6th largest steel-producing country, with 71.4 million tons of crude steel accounting for a 3.8% share of global production. Additionally, the South Korean steel industry is an important material supplier for major related industries such as automotive, construction and shipbuilding, with a huge inter-industrial linkage.

The event will feature an important exchange of ideas between key global and Korean industry players across the steel value chain. Momentum on steel decarbonisation is expected to continue building in the coming months, with the annual SteelZero Summit set to take place in Singapore on June 8, as part of the broader Climate Group Asia Action Summit. The Summit will focus on bringing together decision makers and business leaders from the steel and energy sectors to accelerate Asia’s role as an economic, green powerhouse – with a clear path to net zero. It’s part of the roadmap to Climate Group’s flagship event Climate Week NYC.

Contact us to find out more.

March 2, 2023
2023
Events
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Aperam Earns Second ResponsibleSteel Certification for Aperam South America

Following a rigorous audit process by AFNOR lasting around 12 months, Aperam South America has achieved certification against the ResponsibleSteel Standard Version 1.1.

According to Aperam South America’s CEO, Frederico Ayres Lima, the site decided to pursue certification against the ResponsibleSteel Standard to further strengthen its commitment to sustainability and, strategically, to promote and make corporate responsibility more widely recognised.

Lima commented, “ResponsibleSteel is critical to our goal of striving for leadership in environmental excellence. We have one of the smallest carbon footprints in the industry and strive to adopt best practices in terms of ethics, governance, community engagement and corporate citizenship.”

He added, “This certification reinforces our commitment to sustainability, since it is part of our mission to offer the market steel solutions produced in a responsible manner.”

To obtain certification, the auditors interviewed a wide range of stakeholders and conducted several technical visits. In total, the auditors conducted over 60 interviews to map stakeholders’ perceptions of Aperam South America.

For the company’s Executive Manager of Health, Safety and the Environment, Robson Machado, this was a challenge that brought a different perspective on some issues. “It was an opportunity to reflect on our practices and see the improvements we can make,” stated Machado.

Aperam South America is an integrated producer of Flat Stainless, Electric and Special Steel. It has a total production capacity of 900,000 tonnes of steel per year and employs over 4000 workers and contractors.

ResponsibleSteel CEO Annie Heaton commented, “We’re very proud to have Aperam South America join a growing number of sites globally that have been certified against the ResponsibleSteel Standard. It is the second Aperam site to become certified, Aperam Stainless Europe being one of the earliest sites to achieve ResponsibleSteel certification back in 2021. This indicates Aperam’s continued determination to show leadership in each region they operate in. Aperam South America is working to build an inclusive and diverse working environment, one which also aims to give back to the local community. Just one example is the inclusion and diversity plan led by volunteers which the site has put in place to combat discrimination and stereotyping.”

Heaton continued, “The site also set up the OIKOS biological reserve through Aperam’s Acesita Foundation, and this has become not only a thriving hotspot for biodiversity but an important environmental education centre for the area, helping to preserve the nearby habitat for future generations and reflecting the site’s commitment to both people and the planet.”

Read the full audit summary here and watch Aperam South America’s CEO make the announcement here.

February 28, 2023
2023
News
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February 2023 Newsletter

Please view the February 2023 newsletter by clicking the link below:

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February 21, 2023
2023
Newsletter
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