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.
BlueScope’s Western Port Site Achieves ResponsibleSteel Certification
BlueScope has achieved its second ResponsibleSteel certification for its Western Port site in Victoria, Australia. BlueScope’s first certification was obtained by the company’s Port Kembla Steelworks in February 2022.
Western Port is part of a fully integrated steel supply chain with hot rolled coil sourced from BlueScope’s Port Kembla Steelworks. The Western Port site has an annual steel processing capacity of 1 million tonnes, supplying high-quality metal-coated and painted products to both domestic and export markets. The site employs over 800 people who are supported by approximately 100 contractors, suppliers, and supply chain partners.
Commenting on the site certification, BlueScope’s Chief Executive, Australian Steel Products, Tania Archibald, said, “BlueScope is proud to achieve ResponsibleSteel site certification for Western Port. The certification reflects the outstanding efforts of our Western Port team, the quality of our operations, and provides our customers, shareholders, and communities with the confidence that BlueScope’s Western Port Works meets the very high environmental, social and governance performance standards required by ResponsibleSteel site certification. Through the audit process across all 12 sustainability principles, our approach to engaging with our communities, as well as our safety, supply chain, and human resource systems, were highlighted as areas of particularly high performance.”
BlueScope is a global steelmaker, making and supplying steel across 16 countries, employing 16,500 people. The company specialises in metal coating and painting for building and construction.
Annie Heaton, CEO of ResponsibleSteel, said, “This certification is a real testament to the hard work and dedication demonstrated by the site’s leadership and all of the site’s workers. The site has committed to a 30% reduction in emissions intensity by 2030 and has worked diligently to minimise its impact on the surrounding environment. The Western Port site has proven particularly strong in engaging and supporting local communities through Community Liaison Committee meetings and local projects. As one of the founding members of ResponsibleSteel, BlueScope has consistently championed our Standard as the most rigorous standard for steel. This second site certification for BlueScope represents real progress in the company’s sustainability journey and is a vital step towards the sourcing of responsibly produced steel products by the construction industry in Australia.”
The audit was conducted by BSI and involved an extensive review of documentation and news relating to the site, interviews with workers and local stakeholders, and an onsite visit.
BlueScope’s Chief Executive Climate Change & Sustainability, Gretta Stephens emphasised the importance of a multi-stakeholder approach to drive transparency and performance across the steel industry: “ResponsibleSteel site certification is an important step in supporting our stakeholder’s expectations for clear and transparent information about the sustainability performance of our operations. BlueScope’s commitment to sustainability across our global operations will continue to guide our ResponsibleSteel journey, as we strengthen our communities for the future.”
Read the public audit summary here.
September 2023 Newsletter
Please view the September 2023 newsletter by clicking the link below:
The Near-Zero Steel 2030 Challenge Launches At New York Climate Week
Last week at New York Climate Week, the World Economic Forum’s First Movers Coalition (FMC) together with RMI launched the Near-Zero Steel 2030 Challenge in collaboration with ResponsibleSteel, Greenhouse, Deloitte and BCG. The Challenge will run until December 2023 and will map existing plans, accelerate emerging solutions, and connect potential suppliers of near-zero-emissions steel to companies ready to purchase it.
What is the Near-Zero Steel 2030 Challenge?
Steelmakers need to see demand for near-zero steel to create a business case for new technology. To accelerate the production of near-zero steel, the Challenge will focus on three key areas: driving near-zero emissions steel solutions; enabling emerging technology solutions such as CCUS, green hydrogen, and direct electrolysis; and sending demand signals for near-zero steel, particularly from automotive, construction, infrastructure, and consumer goods sectors.
The FMC was established at COP26 to decarbonise seven hard-to-abate sectors currently accounting for around 30% of global emissions by using the purchasing power of its members to send a clear demand signal and by driving the uptake of new technologies on a commercial scale. FMC steel members, who include Orsted, Ford and Trane Technologies, commit to buying at least 10% near-zero steel by 2030. Alongside the Challenge, the FMC is developing a Supplier Database to map potential near-zero steel projects. In tandem, RMI has established a Sustainable Steel Buyers Platform for the procurement of near-zero steel in North America. In New York in September, RMI launched a Request For Information (RFI) which will be followed by a buyers-led Request For Proposal (RFP). The RFP will incorporate willing Near-Zero Steel Supply Challenge participants in North America in a process that will result in a collective request for up to 2 million tons of near-zero emissions steel with the goal being bilateral offtake agreements.
What is ResponsibleSteel’s role in the Challenge?
ResponsibleSteel is part of a wider ecosystem working to decarbonise the steel industry. Working collaboratively to drive alignment on carbon accounting and claims is a vital component to facilitate the credibility of near-zero steel projects. We need rules to define and measure near-zero steel to ensure everyone is pulling in the same direction as quickly and efficiently as possible. Our work with the FMC demonstrates that there is already an international definition of near-zero steel that is backed by a practical methodology. Certification against the ResponsibleSteel International Standard facilitates the financing, purchasing, labelling and trade of credibly labelled near-zero steel.
ResponsibleSteel provides the standard for how to measure near-zero steel. The Challenge will leverage our International Standard’s Decarbonisation Progress Level 4 by asking steelmaking sites to assess their projected emissions against this near-zero steel benchmark using the Standard’s Criteria 10.4 and 10.6: Climate Change and Greenhouse Gas Emissions. A toolkit will be available for steelmaking sites to undergo third-party pre-production assessment in 2024.
How can my company get involved in the Challenge?
Multistakeholder collaboration is a key aspect of the Near-Zero Steel 2030 Challenge and success will require input from across the steel value chain, government, civil society, technology suppliers, and funding bodies. Companies interested in participating in the Challenge can submit Expressions of Interest this year and from 2024, the Challenge will work to connect suppliers with emerging decarbonisation technologies and buyers with future suppliers of near-zero steel.
Learn more about the Near-Zero Steel 2030 Challenge here.
ArcelorMittal Tailored Blanks Zaragoza Earns ResponsibleSteel Certification
The site is ArcelorMittal’s fifth in Spain to become certified against the ResponsibleSteel International Standard, following the certification of sites forming the Asturias Cluster (Avilés and Gijón, Sagunto, Etxebarri and Lesaka) in 2022.
Located in the Pradillo II industrial area in Pedrola, 30 km from the capital of Aragón, ArcelorMittal Tailored Blanks Zaragoza is right in the centre of Spain’s automotive industry. The site is part of ArcelorMittal Europe’s Flat Products segment and receives galvanised steel coils from European sites which it processes to produce laser-welded blanks for the automotive industry. This technology provides a reduction in the weight of the vehicles, resulting in lower fuel consumption, while also enhancing safety for the users. In 2022, shipments amounted to a total of 5.2 million parts, with shipment volumes expected to rise to over 6 million parts this year.
ResponsibleSteel’s CEO, Annie Heaton commented, “This is an important step as we work to build a responsible steel value chain. ArcelorMittal Zaragoza’s galvanised steel coils come largely from existing ResponsibleSteel certified sites across France, Spain and Germany. So this certification is a real milestone for ResponsibleSteel, getting us one step closer to achieving certification across the value chain and giving Zaragoza’s automotive customers greater confidence that their steel has been produced in a way that respects both people and the planet every step of the way. As ArcelorMittal continues to work to certify sites globally, I look forward to seeing these links of the value chain continue to come together under the ResponsibleSteel programme to assure a full chain of custody from steel furnace to end use.”
The site underwent an independent audit conducted by DNV against Version 1.1 of the Standard. The site’s commitment to the health and safety of its employees and the preservation of local biodiversity were identified as particular strengths during the audit.
The site manager, Tomás Ramos, commented, “As a team, it has been a great satisfaction for us to achieve ResponsibleSteel certification. We were selected as the pilot plant among all the European subsidiaries in the Tailored Blanks division and, after all the efforts deployed, we have been able to deliver on this mandate. This certification would not have been possible without the engagement and professional commitment of all members of the team.”
He continued, “It has undoubtedly been a very interesting exercise and has enabled us to bring together, in a structured way, the complex and diverse range of activities that we have been implementing with our stakeholders. For us, the certification process has been an analytical journey across the Standard’s 12 principles and all its criteria and requirements. This exercise has enabled us to review all our actions and include the latest proposals to support the existing commitment to Sustainability, good Governance and the Health and Safety of all the parties involved in this project, which, ultimately, will ensure that the good results are shared by all.”
Read the public audit summary here.
Borçelik Gemlik Becomes First ResponsibleSteel Certified Site In Turkey
Borçelik’s Gemlik site has become the first in Turkey to become certified against the ResponsibleSteel International Standard. Borçelik, a joint venture of Borusan Holding and ArcelorMittal, is Turkey’s biggest galvanized flat steel producer.
Borçelik became a ResponsibleSteel member in 2020, joining ArcelorMittal and many other of the world’s leading steel producers. ResponsibleSteel currently has around 15% of global steelmaking capacity in membership. The Gemlik site has a production capacity of 1.5 million tonnes and employs over 1000 workers and contractors.
ResponsibleSteel’s CEO, Annie Heaton, commented, “This first ResponsibleSteel certification of a site in Turkey demonstrates Borcelik’s drive to be a leader in the Turkish steel industry, and more importantly, the company’s commitment to implementing the most rigorous criteria for sustainability. On an environmental level, the company has committed to achieving net zero by 2050 and the site already has several energy efficiency projects as well as wind and solar plants in the works to support this journey. The site has gone above and beyond to minimise environmental impacts including setting up its own water stewardship project to monitor water efficiency and prevent future scarcity while on a human level, the site has demonstrated a deep commitment to ensuring workers’ rights and safety and equality in the workplace.”
The site achieved certification following an independent audit conducted by CARES against Version 1.1. of the Standard. In addition to the site’s efforts to reduce its environmental impact, the site’s social governance was identified as a particular strength. Throughout the audit, the site repeatedly demonstrated its commitment to worker safety, growth and development.
Kerem Çakır, General Manager of Borçelik, stated that Borçelik has achieved significant progress towards the company’s sustainability goals. Çakır commented, “As one of the leading and pioneering institutions of our industry, we have been committed to sustainability and responsible business practices. We are very proud that the presence of this approach in all our business applications is confirmed with the ResponsibleSteel certification and we have achieved another first in our country with the certificate that we were awarded. As a responsible industry leader, we aim to inspire change in the steel industry and contribute to a more sustainable world in all areas.”
Serkan Ürkmez, Borçelik Sustainability Leader, added, “As Borçelik, we had undergone a very intense preparation period to comply with ResponsibleSteel standards. We worked together with our Sustainability Committee. The standard’s environmental and social expectations are really challenging. After this preliminary stage, we successfully completed a detailed and challenging 14-day audit process conducted by the leading independent audit firm UK CARES. At the end of this process, we are happy to be the first ResponsibleSteel site-certified institution in our country. We will continue to be an exemplary institution in our industry with our activities.”
Take a look at the audit summary here or read the press release here.
Member webinar: The near-zero steel 2030 challenge
We would like to invite ResponsibleSteel members to join a special webinar we will be hosting on Monday, September 11th at 12:30 pm (BST) with the First Mover’s Coalition (FMC) to give a first look at the upcoming Near-Zero Steel 2030 Challenge.
The Challenge, led by the FMC in collaboration with Greenhouse and with the support of RMI, ResponsibleSteel, Deloitte and BCG, will officially launch at Climate Week in New York next month.
In this webinar members will have the opportunity to hear about the objectives of the Challenge, the three parts that it is composed of, and how it relates to the ResponsibleSteel International Standard.
Representatives from the FMC, Greenhouse, RMI, and ResponsibleSteel will join to give an overview of the Challenge’s process, submission opportunities, and end goals.
This webinar will be a great opportunity for ResponsibleSteel members to have a sneak peek at this exciting project and understand how they can get involved ahead of its public launch.
There will also be a Q&A session following the speaker presentations and ample opportunity for a broad and dynamic discussion with members.
This webinar is open to all members and will be hosted by ResponsibleSteel via Microsoft Teams.
Please contact us if you are interest in joining.
August 2023 Newsletter
Please view the August 2023 newsletter by clicking the link below:
Accelerating Decarbonisation in India’s Steel Industry: The Challenges, the Tools and the Solutions
Now the most populous country in the world, India is also the second-largest producer of steel after China. According to the IEA, the Indian steel industry is projected to triple by 2050, making it the fastest-growing steel economy globally (IEA, Iron and Steel Technology Roadmap, 2020). The majority of India’s steel is used for domestic consumption – for infrastructure, transport, construction and consumer goods. Whether in airports or railway stations, steel use is increasing across India, and meanwhile, the expansion of renewable energy in the country, which also requires vast amounts of steel, is racing ahead at breakneck speed. This unprecedented growth in steel consumption is a vital part of India’s economic story.
But the steel industry also accounts for around 12% of India’s emissions, far more than the global average of 8%. So the country’s push to meet its net zero target by 2070 will rely heavily on the decarbonisation of its steel sector. Currently, almost half of Indian steel is produced via the traditional blast furnace route with the remaining being split between smaller less efficient induction furnaces and electric arc furnaces. Enormous efforts to decarbonise are already being made. Since 2005, emissions per tonne of crude steel in India have been reduced from around 3.1 tonnes to 2.5 tonnes. But the sheer amount of resources needed to accelerate decarbonisation remains huge.
There are many challenges. The lack of a transition fuel such as natural gas to accelerate the phase-out of coal is a significant issue. What is more, the use of the lower-grade iron ore found in India requires more energy for reduction. And while countries with long histories of producing and consuming steel – and all the associated emissions – now have the luxury of large stocks of scrap, India’s access to scrap is extremely limited today. A far more comprehensive plan is needed to reimagine the entire industry.
Deep thinking on the solutions is clearly happening within government. The Indian Ministry of Steel recently set up 13 task forces to investigate the policies needed to tackle the decarbonisation challenge from multiple angles: to improve energy and material efficiency, to enable the transition to renewable energies, to price carbon emissions, to stimulate green finance and, underpinning all these, to define the embodied emissions of steel.
Major steel companies are working to decarbonise at pace. Jindal Steel and Power has already committed to net zero by 2047, Tata Steel by 2045, and JSW by 2050. All of these are well ahead of the national 2070 target. But these ambitious targets require equally ambitious and comprehensive decarbonisation plans which will also accommodate rapidly expanding demand. To accommodate the steel growth foreseen in the Indian economy, the government is projecting a doubling in steel capacity by 2030, and much of the planning for this so far is via the traditionally emissions-heavy blast furnace route. Herein lies the challenge. Such companies will need to demonstrate how their new blast furnace investments can align with their net-zero targets. Investors are increasingly looking for transition roadmaps.
Whilst Indian steel companies may understand the technologies needed to reduce emissions, the processes are vastly more expensive, and so they need to see a clear business case: signals that their customers are ready to pay the premium on lower-emissions steel; facilitative policies from government to reduce costs and market incentivisation for technologies available in the near term; an effective price on carbon; preferential finance for decarbonisation projects. Such measures may all form part of steel company roadmaps to net zero.
Last month, as part of the 14th Clean Energy Ministerial in Goa, ResponsibleSteel brought together key stakeholders from the steel industry, downstream market, and government to discuss the role of the ResponsibleSteel International Standard in impacting policy, finance and the energy transition to accelerate decarbonisation in India’s steel industry at pace and scale. The event featured keynotes from the Secretary to the Ministry of Steel, the Secretary General and Executive Head of the Indian Steel Association, and ResponsibleSteel’s CEO. ResponsibleSteel also hosted a panel discussion on the challenges and solutions needed to achieve an equitable and just transition between representatives from the Ministry of Steel, JSW Steel and SteelZero. What’s clear is that to accelerate decarbonisation in India at scale and at speed, we need to share learning and build skills, not only to maximise scrap recovery but to drive demand and finance for low-emissions primary steelmaking on a vast scale.
This means clean energy at scale. India has already made rapid progress on renewable electricity, reaching a capacity of 168 GW in the last ten years. The Indian government has targeted 50% renewable electricity by 2030, with an unparalleled 50GW a year in the pipeline over the next five years – more than the US or Europe installed in 2022. There is also a lot of talk on green hydrogen. The Indian government aims to have 5 million tonnes by 2030. Both the achievements to date and the plans ahead are inspiring examples of ambitious government strategy.
But whilst renewable energy is core to the decarbonisation roadmap for steelmaking in India, the shift to green hydrogen in India is complex due to the limited reserves of natural gas as a transition fuel. In the meantime, alternative ways of thinking are emerging to avoid a costly wholesale switch to H2 based DRI before green hydrogen is available. Tata Steel has recently demonstrated the 24/7 injection of hydrogen in the blast furnace as a reductant and believes this could deliver a 15% to 20% reduction in CO2 emissions. With additional capital expenditure, the potential is as much as 30% or, some say, even more.
The industry has also shown promising progress on carbon capture from coal used in the blast furnace as an intermediate technology that can divert vast volumes of carbon emissions and produce methanol. Currently, pilots are demonstrating the potential to deliver 15-20% emissions reduction, with the potential thought to be higher. At present, however, the costs involved prevent it from being scaled as a viable source of methanol. Improving efficiencies in the processing of input materials is another element under development, with innovations emerging to enable lower-grade iron ores to be used directly for reduction without need for sintering, for example.
Efforts to maximise the use of scrap are also underway. JSW and Tata Steel have invested in scrap collection after policies were introduced in recent years to mandate the end-of-life recycling of vehicles and facilitate the growth of metal scrapping centres in India.
Finally, development of carbon capture and storage technology is hampered by high costs, a lack of market incentives and a lack of concerted research and development. The potential for CCS in India has been subject to geological uncertainties, and yet the outlook may be more promising than once thought. For instance, basalts can mineralise captured carbon for effective and permanent storage. A recent study showed India has one of the largest onshore basalt formations in the world, and around 360GW CCS capacity in both basalts and deep saline formations, excluding no-go and densely populated areas (CEEW, 2023). Meanwhile, India’s annual emissions today are just over 3GW.
But underpinning all of this is the need for a common language for steel decarbonisation within countries and between countries. We need a consistent method of measuring and defining near-zero steel that is effective in driving down emissions globally. As Shri Nagendra Nath Sinha, Secretary for the Indian Ministry of Steel, stated, “It has to be clear, it has to be credible and it has to be standardised.” This is why ResponsibleSteel’s work is so critical. For Prabodha Acharya, JSW’s Chief Sustainability Officer, “Many customers are asking about green steel, and I don’t know what they mean by green steel, but when they ask for ResponsibleSteel we have a definitive standard… This is going to be the gold standard.”
It also has to be equitable. The ResponsibleSteel International Standard takes the approach of a ‘scrap variable scale’ to define decarbonisation progress levels. To incentivize decarbonisation in a way that is both effective and fair globally, not only in countries with the luxury of high scrap stocks. To avoid a commercial ‘race for scrap’ with no net gain for the climate, rather than encouraging the decarbonisation of steel production across the board and particularly from iron ore. To drive the entire global industry to net zero.
As ResponsibleSteel’s CEO Annie Heaton remarked, “We need to rise above the interests of individual companies, of individual countries, and individual technologies to drive decarbonisation at a global level.” Shri Alok Sahay, Secretary General & Executive Head of the Indian Steel Association, believes ResponsibleSteel plays a vital role in creating a more equitable system. “To decarbonise, it’s vital that we foster partnerships. ResponsibleSteel can bring everyone together, and help build a level playing field.”
You can watch a recording of ResponsibleSteel’s event at the Clean Energy Ministerial here.
July 2023 Newsletter
Please view the July 2023 newsletter by clicking the link below:
ResponsibleSteel in India: The First Movers Coalition In-Country Workshop, Surfacing Supply of Near-Zero Emission Steel
India is the world’s second-largest steel producer. The steel industry accounts for around 12% of India’s emissions and steel production is set to grow rapidly. This month ResponsibleSteel is in India to dive into the particular dynamics of the challenges in a country where the population uses one-third of the global average steel consumption per head.
As part of the Steel Breakthrough Agenda, we have been working with the First Movers Coalition to drive alignment and accelerate steel decarbonisation. The First Movers Coalition aims to pull forward the deployment of clean and deeply decarbonising technologies through its members’ commitments to procure 10% from near-zero sources by 2030.
We were delighted to participate in last week’s First Movers Coalition’s In-Country Workshop: Surfacing Supply of Near-Zero Emission Steel in New Delhi.
Our CEO, Annie Heaton, spoke about the practicalities of activating these commitments in the Indian context. Steel production is set to double by 2030. The challenge is immense. The major Indian steel companies are investing in technology innovation. Yet the conditions are not in place to accelerate deployment of decarbonisation projects.
Consolidated demand-side signals, reduced-cost finance, and ambitious and accelerated policy levers are all needed. But as Annie explained, “above all, a common carbon measurement standard and definition of near zero steel is needed to ensure these all work together.” The ResponsibleSteel International Standard has the potential to provide such a framework to drive equitable steel decarbonisation globally.
Shivakumar Kuppuswamy, ResponsibleSteel’s Director of Development and Innovation, also hosted a distinguished panel of guests who provided first hand observations of what it will take to accelerate steel decarbonisation in India. The panellists included Secretary Shri Nagendra Nath Sinha from the Indian Ministry of Steel, alongside Lenin D’Souza, Deputy General Manager of Mahindra, Sohanjeet Randhawa, Director for Sustainability Affairs & Group Communications for Volvo Group, Rajesh Goyal, Sr. Vice President of ReNew Power, Manish Chourasia, Managing Director of Tata Cleantech Capital Limited, and Mr Anand Parasramka, CFO at Saarloha Advanced Materials Limited – Kalyani Ferresta.
At the top of the FMC workshop’s agenda was the need for a strategy to capture CCUS potential as well as hydrogen growth, and the development of a carbon reduction incentive programme. On top of this, government-backed green bonds, low-interest debt, and risk-sharing processes were all suggested as interventions the government could support in order to drive the necessary investments in steel decarbonisation.
Next up, ResponsibleSteel will be hosting an event as part of the Clean Energy Ministerial in Goa this week. On July 22nd, we will be bringing together key stakeholders from the steel industry, downstream, and government, to discuss the role of the ResponsibleSteel International Standard in impacting policy, finance and the energy transition in order to accelerate steel decarbonisation in India.
Find out more about this and other upcoming events here.
June 2023 Newsletter
Please view the June 2023 newsletter by clicking the link below:
In Conversation With CEO Annie Heaton On Our Achievements And What’s Next For ResponsibleSteel
This month marked one year since CEO Annie Heaton stepped in to lead ResponsibleSteel through a new phase, one of building momentum. Annie discusses what led her to join ResponsibleSteel, how her experience has shaped her vision for ResponsibleSteel, what achievements she has been most proud of over the last year, and what she sees as the next steps for ResponsibleSteel.
You spent almost a decade shaping ArcelorMittal’s sustainability agenda, why did you choose to join ResponsibleSteel?
One word: impact. I am inspired by the sheer scale of contribution the steel industry makes to our modern world, the ubiquitous utility of steel in the infrastructure of today and the technologies of tomorrow. I am even more inspired by the potential for tomorrow’s steel production to impact positively on people and the environment. At ArcelorMittal, I saw this potential at first hand, through a combination of leadership commitment, sound management, and innovative thinking. ResponsibleSteel has the potential to drive impact of a different magnitude.
Our well-respected standard and robust assurance system offer steelmakers a roadmap to improvement and a common language of assessment that their customers, communities, investors and workforce can all get behind. I firmly believe ResponsibleSteel will drive the next generation of steelmakers to truly maximise their contribution to a sustainable society.
What makes ResponsibleSteel unique?
As the landscape of initiatives gets busier and busier, particularly in relation to climate, it is clear to me that ResponsibleSteel provides a much-needed common, consistent and credible thread between all these efforts, enabling all the work being done to be streamlined and accelerated. Our credibility is so valuable in today’s world of misinformation, false claims and greenwashing. That is why both businesses and not-for-profit organisations choose ResponsibleSteel.
And it’s not just about carbon. Responsible steelmaking goes far beyond climate change mitigation. The safety and well-being of the some six million people working in the industry, the millions more working in the supply chain and living in nearby communities, all need to be ensured. The impacts on biodiversity and our ecosystems of mineral and timber extraction as well as steelmaking need to be greatly improved. If in 30 years’ time, we have removed almost all emissions of greenhouse gases, but haven’t worked hard to support nature and people’s livelihoods, our future will be very bleak.
ResponsibleSteel is the only standard for steel that combines all the complexities of good social and environmental performance in one indicator across the value chain that everyone can look for: certification.
What is your vision for ResponsibleSteel?
We are on the cusp of the next industrial revolution, and with this one, we have the luxury of being able to plan it. We have a tremendous opportunity to ensure every dollar we invest in new industry avoids unintended consequences for people or the planet. This means adhering to strong sustainability standards. I firmly believe when we look back at this period, we will see how good international sustainability standards such as ResponsibleSteel played a critical role in the transition. The application of good standards will ensure our transition is as focused and streamlined as possible. It will enable suppliers to align with customers, investors and policymakers, and ensure fair global trade and direct finance to where it is most effective. Good standards will catapult us towards society’s goals without discriminating against poorer countries. All these are outcomes I believe ResponsibleSteel will deliver.
So we are at a pivotal moment globally. We can transition our economies within the next 30 years or less if we create the right conditions. Both for steel and in all the industries steel serves. This is an enormous challenge, and it needs to be faced collectively. ResponsibleSteel works as a catalyst, providing steelmakers with the necessary framework to tackle critical climate and sustainability issues. We need to ‘win on carbon’. But we must win on people and the environment too. ResponsibleSteel is the tool to drive that success.
To achieve that, ResponsibleSteel has to be the most trusted global standard for steel. It’s an initiative working with the integrity, credibility and spirit of collaboration we need to maximise steel’s contribution to a sustainable world. When a site becomes certified against the ResponsibleSteel International Standard, people know it’s been through a rigorous process assessing how it manages its impacts on the environment and local communities, how it treats its workforce and how it drives improvements, both in its operations and in its supply chain. And if practices falter, people want to be sure that ResponsibleSteel’s assurance system will oversee and track the corrections needed.
How has your experience in sustainability over the past 30 years influenced your vision for ResponsibleSteel?
I’ve enjoyed a wonderfully varied career working on everything from child labour to water scarcity, renewable energy to community engagement, finance to healthcare systems, and across many many different sectors. At one stage or another, I have spent time working on almost every aspect principle of the ResponsibleSteel Standard! And over the years I’ve learnt some valuable lessons. Firstly, that change is not inevitable. Nothing changes without vision and commitment. Secondly, that change is driven by the focused actions of stakeholders in pursuit of ambitious goals. With the right tools, we can drive change some may think impossible. Thirdly, that consulting people is a must. The outcomes of any project are enriched if one works with one’s ears open.
ResponsibleSteel must draw on all these elements to deliver on our mission, to drive the socially and environmentally responsible production of steel, globally. The commitment of our members is palpable. They believe in what we are doing, and how we’re doing it. They learn through the process too, both business and civil society members, because their common commitment to our purpose enables a safe space in which to discuss difficult issues. This is how they help us build the tools that are the right ones for the job. That is why steelmakers accept the enormous challenge of preparing for a ResponsibleSteel audit. I want to point out though, that our standard and certification scheme is not the only tool in the box: it’s vital that ResponsibleSteel works with other initiatives as they emerge to enable an ecosystem of tools that work together to deliver our common goals.
This past year has seen significant growth for ResponsibleSteel, what are the moments you have enjoyed the most? What achievements are you most proud of?
The opportunity to work both with our members and wider initiatives across the world, exchanging ideas and looking for synergies, is what brings me to work every day with passion. It’s been great to see so many new members over the past year – our membership has grown by 20% in the past year and now stands at well over 140 members with a growing body of civil society organisations and 15% of the steel industry in membership. We have 58 certified sites to date across 5 continents covering 107mt of steel production, over 5% of the global industry, in just a few years.
Forum III was certainly one of ResponsibleSteel’s greatest achievements last year with over 200 people coming together in Memphis, and a proud moment for me and the team. Seeing how much leadership and critical thinking our members are demonstrating, across the value chain, across the generations, and across business and civil society, was so invigorating.
In the first part of this year, we established a Finance Working Group. This is a new space we are convening for investors and steelmakers to come together to look at how to remove the blockages to financing for steel decarbonisation. We’ve developed an ambitious work programme to do what ResponsibleSteel does best: facilitate multistakeholder dialogue with a view to developing practical solutions to drive progress.
One more highlight has been our first engagements in Asia. Shiv, our Development & Innovation Director, Ali, our Corporate Affairs Director, and I have been in India, South Korea, Singapore and soon Japan, engaging with shipping, automotive, energy, and finance sectors. These have really helped grow understanding of ResponsibleSteel’s mission in some of the world’s most significant steel making economies.
What comes across from all this is what an amazing team we have in the Secretariat, that has built and continues to build the organisation that we are today. The spirit of collaboration, thoughtful commitment and bold ambition is something I value immensely.
So what’s next for ResponsibleSteel?
We have achieved a huge amount, but in many ways, we have only just begun. We are seeing applications for membership and core certification growing rapidly. We’re now preparing for the market for certified steel to take off so that sites can distinguish themselves for their progress towards responsible near zero. And the new downstream chain of custody rules I’ve mentioned will be critical in ensuring that claims about certified steel in the market are specific and reliable to ward against greenwashing.
ResponsibleSteel’s standards and certifications are only part of a wider ecosystem. So the work we do with other initiatives that credit ResponsibleSteel as the most trusted global standard is critical to ensure we are all pulling in the same direction as efficiently as possible. Leading examples of this are the collaborations we are working on with SteelZero and the First Movers Coalition to drive the right kind of demand signals for true and responsible decarbonisation.
We are also working on alignment across GHG measurement standards under the UN Steel Breakthrough agenda. Unless embodied emissions are measured using the same rules, the numbers will look very different, so this is critical. That is why we are working with worldsteel and other methodology initiatives to align on these rules so that datasets can be interoperable.
On near zero in particular I see some emerging consensus on the thresholds, and I expect to see this firm up in the months to come as measurement rules align. This will give off-takers and investors some clarity on how to look for assurance that a project’s future steel production will be recognised in the market as near zero, for example through ResponsibleSteel’s progress level 4 certification.
And since ResponsibleSteel certification covers the human and broader environmental considerations of steelmaking, these near zero plants have a very real opportunity to show they are responsible too. This after all is the real answer to the ubiquitous question, ‘What is green steel’?
Yet decarbonisation is not only about nurturing innovative near zero steel projects. It’s a transition, and the ResponsibleSteel Standard is designed specifically for this. We are saying to all steel sites: come on the journey, and use our progress levels as marketable stepping stones towards near zero. This is so important in high-growth countries like India, where new capacity needs to be developed. ResponsibleSteel certification ensures that at the very least, these are built at an emissions intensity that beats the global average (our level 1) and has a roadmap for timely reduction.
These are critical times, and we can all sense that momentum is building. The good work of ResponsibleSteel feels more important and more exciting now than ever. We have the tools, and I believe that together we can drive the change some may think impossible. The hard work ahead will need collaboration, trust and commitment.
