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A responsible steel industry requires rigorous certification

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

By Annie Heaton, CEO, ResponsibleSteel

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

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

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

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

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

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

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

- Enable production of near-zero emissions iron and steel

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

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

- Explore demand generation opportunities

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

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

Learn more about the Modern Steel Act here.

Image credit: Shutterstock

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

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

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

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

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

Steel recycling

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

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

Findings and recommendations

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

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

Improving assurance

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

Policy and market opportunities

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

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

Metal Producers and recyclers

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

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

Brands and manufacturers

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

Further information and next steps

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

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

Images: Shutterstock

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

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

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

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

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

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

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

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

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

Read the full report and interactive summary here.

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September 2022 Newsletter

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September 30, 2022
2022
Newsletter
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A Race Against Time: Key Takeaways from NYC Climate Week 2022

Last week, ResponsibleSteel’s CEO, Annie Heaton, and Policy and Impacts Director, Shivakumar Kuppuswamy, were on the ground in New York for Climate Week. Participating in discussions with industry, policy, and sustainability leaders, it was heartening to see an interconnected ecosystem emerging on steel decarbonization. And everyone was talking about the need for a single, verifiable standard.

Climate Week evidenced the growing private sector demand for responsibly produced steel and the increasing pressure for science-based targets and clear roadmaps to achieve net zero. Shiv participated in two critical roundtable debates hosted by Climate Group, dissecting corporate barriers to climate change and discussing the opportunities to accelerate the fulfilment of decarbonization targets set out by the Paris Agreement.

“It’s a race against time. We have a window of 8 to 10 years left to find the financial resources to make a difference in steel decarbonization. Who’s going to rise to the challenge?” – Shiv, Policy and Impacts Director

The need for greater investment in decarbonizing heavy industry is more urgent than ever. This was the focal point for the ‘It’s a Material World’ panel led by Sean Kidney, CEO of the Climate Bonds Initiative. As Shiv stressed, there is a pressing need for time-bound and effective mobilization of large capital to meet steel decarbonization targets and a credible and holistic standard will have a strategic role in this. Building on this, Annie spoke at the launch of the Sustainable STEEL Principles to a crowded room of bankers and fund managers. Bringing together six leading global banks, the Principles will help banks measure and report the emissions associated with their steel loan portfolios compared to net-zero emissions pathways.

ResponsibleSteel has a unique and critical role to play in all this. Our International Standard V2.0 provides clear thresholds to measure GHG performance taking into account the amount of scrap used as input. But it also addresses a range of other crucial issues across the ESG spectrum from labour rights to pressing environmental issues such as biodiversity.

And, as Annie highlighted at a meeting of clean technology innovators for mining, the latest ResponsibleSteel Standard is enabling customers to demand higher standards along the entire value chain, including the social and environmental impacts of how input materials are sourced.

Find out more about the ResponsibleSteel International Standard V2.0 here.

Catch up on Climate Week here.

September 29, 2022
2022
News
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ArcelorMittal Poland Obtains ResponsibleSteel Certification

ArcelorMittal Poland has become the most recent cluster of sites to receive ResponsibleSteel certification. After a successful audit carried out by ResponsibleSteel accredited auditors from DNV Poland, ArcelorMittal Poland received the certificate which confirms it had fulfilled the criteria required to earn certification against the ResponsibleSteel Standard. The certificate covers sites in Dąbrowa Górnicza, Kraków, Zdzieszowice, Świętochłowice, Sosnowiec, and Chorzów which collectively employ over 9,000 workers and contractors and produce over 3.9 million tonnes of steel annually.

The independent audits are designed to verify that a steel site’s activities meet ResponsibleSteel’s set of rigorously defined requirements, based not only on supplied documentation but also on a number of interviews with internal and external stakeholders. The auditors take into account a broad range of social and environmental criteria split across 12 ESG principles. Social aspects include business integrity, relations with employees and communities, human rights and labour rights. Environmental criteria cover climate change and greenhouse gas emissions, water management, waste and noise emissions and biodiversity. ArcelorMittal Poland currently aims to reduce its GHG emissions by 35% by 2030 in line with ArcelorMittal’s broader European target.

Commenting on the certification, Sanjay Samaddar, chairman of ArcelorMittal Poland stated: “This certificate is a great recognition for us at ArcelorMittal Poland but also a commitment to our stakeholders. Steel is the world’s most widely used material. Our customers in the automotive, construction, energy, infrastructure, packaging, transport and white goods sectors have growing expectations that the materials they work with are produced by sites that respect the highest social and environmental standards. The ResponsibleSteel certificate is proof of responsible management and gives us further motivation for development. Our activities directed towards our employees, communities and sustainable development were recognized, which makes us very proud.”

Annie Heaton, CEO of ResponsibleSteel, said: “We are very proud to announce the certification of ArcelorMittal Poland against the ResponsibleSteel Standard. It is the first cluster of sites to be certified in Eastern Europe and joins several ArcelorMittal sites certified against our Standard.”

She continued: “The audit process revealed ArcelorMittal Poland’s strong corporate governance structures, close relationships with local stakeholders, dedication to employee welfare,  and commitment to responsible environmental practices, notably water management and biodiversity. It is a significant achievement which has taken considerable time and effort and we look forward to continuing to work with ArcelorMittal Poland on their journey to produce more responsible steel.”

To learn more about the certification, read the public audit summary report here.

September 21, 2022
2022
News
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Global Civil Society Groups Applaud Launch of New International Standard Defining Sustainably Produced and Sourced Steel

Civil society groups applaud the launch of the ResponsibleSteel International Standard V2.0 and recognise it as a critical step in the net zero transition of the steel industry. ResponsibleSteel civil society members are committed to continuing to work together to support steel buyers and producers in achieving full alignment with a 1.5-degree pathway.

Decarbonizing the global steel industry is critical to achieving the goal of the Paris Agreement to limit warming to 1.5 degrees Celsius and for this, investments in clean steelmaking need to begin in this decade. The new ResponsibleSteel Standard will provide steel buyers and steel makers with a robust and independently-verified certification for low-emission and responsibly-produced steel.

Steel is a key part of a new clean energy economy. From wind turbines to railways to electric motors and buildings, steel is a building block for a low-emissions society. ResponsibleSteel certification will help buyers choose clean steel and provide added value to steelmakers for producing a cleaner product.

ResponsibleSteel is the world’s first multi-stakeholder standard for low greenhouse gas emissions and responsibly sourced steel. It covers a range of sustainability issues: climate change, pollution and human rights concerns by taking into account both direct and upstream greenhouse gas emissions, air and water pollution, pollution from mining coal and iron ore, labor standards, and more. These new standards, created through a multi-year, fair and rigorous process, including input from a diverse array of civil society stakeholders, is a major step forward and an important starting point to transform the sector.

We commend ResponsibleSteel for its commitment to decarbonizing the global steel industry and look forward to continuing our work together toward improvement through the standard’s review process to achieve full alignment with the 1.5-degree pathway.

We encourage steel producers to adopt the standard and gain ResponsibleSteel Certification on all their sites, and for steel buyers to clearly signal purchasing ResponsibleSteel certified steel.

Strengthening the global understanding of what is considered sustainably produced steel is critical to aligning the industry and driving change at the scale and pace needed.

Sue Riddlestone OBE, Co-founder, and Chief Executive, Bioregional: “As an organisation working with clients in the building products and built environment sectors, we welcome the launch of the new ResponsibleSteel Standard. It provides a valuable means for steel manufacturers to reduce their environmental impacts and help raise standards across the industry, and for end users to act – whether they are at the start of their sustainability journey or pushing forward towards a best practice approach to steel procurement.”

Daniel Seligman, Director for Clean Energy Solutions at Ceres: “ResponsibleSteel will galvanize steelmakers, steel buyers, and investors alike to curb emissions and promote social good from an industry crucial to modern economies.”

Armond Cohen, Founder and President of Clean Air Task Force: “Decarbonizing the steel industry is critical to reaching our global climate goals, and the impact of the revised Standard 2.0 toward these efforts across the supply chain cannot be overstated. Achieving global decarbonization – including hard-to-abate industrial sectors like steel – needs to be met with both ambition and action, and the ResponsibleSteel Standard is a significant step in the right direction.”

Jen Carson, Head of Industry at Climate Group: “With the launch of ResponsibleSteel’s updated Standard (V2.0), we now have clear requirements on both greenhouse gas emissions and responsible sourcing of input materials. As the Standard forms a key part of our SteelZero commitment, these additional requirements will strengthen and clarify the collective voice of our members, boosting the demand signal for low emission and net zero steel and accelerating the net zero transition of one of the highest emitting sectors on the planet.”

Glenn Hurowitz, Founder and CEO of Mighty Earth: “We applaud the launch of this new ResponsibleSteel Standard and recognize their efforts to ensure that deforestation has no place in the steel industry’s future. By limiting charcoal, wood and biomass used in steelmaking to existing FSC-certified plantations, the standard will serve to keep forests standing, protecting precious biomes such as the Amazon, for people, nature and climate. And now is the time for steelmakers to invest in the next generation of steelmaking infrastructure, including renewable electricity-powered electric arc furnaces and green hydrogen that can produce iron without relying on coal.”

Gitika Mohta, Manager of Industry and Built Environment, Systems Transformation, We Mean Business Coalition (WMB): “WMB is a proud supporter of ResponsibleSteel and we applaud the evolution of the new standard that is pioneering, pathbreaking and desperately needed to decode whether steel is responsibly produced and sourced. The standard creates a unified market and understanding of what each company across the value chain needs to be aiming for.”

Learn more about the ResponsibleSteel International Standard Version 2.0 here.

September 16, 2022
2022
News
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Today marks a pivotal moment in the path to sustainable, net zero steel

It’s been quite a journey. Today, after almost three years of collective commitment from the giants of the steel industry and leading NGOs, ResponsibleSteel is launching its new International Standard V2.0, with tough new additional requirements on both climate and responsible sourcing, after they were adopted with the support of 96% of our membership vote.

So what does this mean? For the first time, steelmakers will be able to gain credible recognition in the market for the progress they make – both on decarbonisation and on driving sustainability through their supply chains – because they have been independently certified against a common, agreed, international standard. Buyers of steel can specify it in what they ask of their suppliers. So too can those who finance the industry and the costly transition to come.

I am certain that the launch of ResponsibleSteel V2.0 represents a pivotal moment for the steel industry. The course is set, and it’s now time to build the momentum and drive the creation of a new, decarbonised steel industry with sustainability at its core.

To reach this moment, many thousands of hours have been spent by a coalition of the willing – experts from across the steel value chain, NGOs, academics and many others, working alongside the ResponsibleSteel team in complex discussions, exacting analysis, demanding debate, critical feedback, drafting, redrafting … and finally, a standard that sets a clear direction for the industry and its stakeholders. I want to sincerely thank everyone involved.

V2.0 will be challenging to implement – the revised standard now includes 13 Principles, 61 Criteria and over 500 individual requirements. This robustness, and our growing Assurance Programme, are what lend ResponsibleSteel credibility both in the market and in the wider ESG world. And we will strengthen these further, continually growing our membership to bring everyone involved in, continually working to ensure the Standard is fit for the entire global industry, and continually building our Assurance Programme.

Over the coming weeks, we’ll be exploring the implications of V2.0 for the industry’s future at key events in the run-up to COP27, starting next week with New York Climate Week.

Then from 31 October to 1 November, at the ResponsibleSteel Forum III in Memphis, our entire membership along with our Board will take the opportunity to look at how key actors in the steel value chain can use V2.0 to shape the dynamics of steel decarbonisation and wider sustainability, globally. There are some spaces for those who haven’t yet joined ResponsibleSteel –  if you haven’t already registered to attend Forum III, you can do so here.

Finally, I want to take a moment to thank the authors who led us on this journey and were critical to making this moment happen – Marnie Bammert, who led on the responsible sourcing requirements, and Matthew Wenban-Smith who led on the greenhouse gas side. Their clarity of thought and continued commitment has been invaluable. Both Matthew and Marnie will continue to advise ResponsibleSteel as we move forward on our critical journey.

Once again, my thanks go out to all of you who have helped us achieve this momentous step forward. What we’ve created together is the beginning of a new phase for ResponsibleSteel and for the entire industry.

September 14, 2022
2022
News
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Leading steel companies and NGOs agree to International Standard on climate for industry

Created by ResponsibleSteel members, including some of the world’s largest steel companies and most respected social justice and climate NGOs, ResponsibleSteel International Standard V2.0 will play a pivotal role in driving down GHG emissions and driving up standards in the steel supply chain, helping steel companies transition to a responsible, decarbonised future.

As the world grapples with the impact of climate change, the new ResponsibleSteel Standard, launched today, focuses more deeply than ever before on reducing GHG emissions and now enables buyers of steel for the first time to specify what green procurement means in a credible way.

After years of hard and complex work, ResponsibleSteel is extremely proud to announce its revised Standard 2.0. Leading steel companies including ArcelorMittal, Tata Steel, US Steel, thyssenkrupp, POSCO, BlueScope, and voestalpine worked with others along the steel value chain to support the standard’s development, as well as leading environmental NGOs the Climate Group, Ceres, the Clean Air Task Force, We Mean Business, and Mighty Earth. The launch of this Standard will provide leaders in the steel industry with an immediate opportunity to showcase how they are driving down emissions, whilst tackling other urgent issues such as the impact of mining, water use, labour rights, air pollution, and diversity. It’s an expert yet practical road map for radical and innovative change in the world of steel.

“The progressive steel industry, business and civil society and associate Members should be very proud today. They have worked together to produce a breakthrough standard. This means we now have a workable standard to certify steel products which meet the highest possible sustainability metrics,” commented Gerry Tidd, Chairman of the Board of Directors.

He continued, “steel customers can now be confident in specifying ResponsibleSteel certified steel products. The Standard sets a new high watermark for steelmakers, their supply chain and customers who want to address essential issues like biodiversity, GHG emissions, labour rights, water, and waste.”

The ResponsibleSteel Standard is unique in addressing not only climate change but other issues also across the whole ESG spectrum. It has taken years of expertise and cross sector buy-in to create the new revisions which are even more exacting than before and pertain specifically to GHG emissions and the responsible sourcing of input materials.

“ResponsibleSteel’s new International Standard comes at a critical time, with the unfolding energy crisis alongside the climate challenge only magnifying the need for a global scale transition to a decarbonised economy. By providing a practical tool for both steelmakers and all their stakeholders to measure and reward progress, it paves the way for society to work together on this gargantuan challenge” said ResponsibleSteel CEO Annie Heaton. “The Standard enables anyone that’s either buying or making steel to demonstrate they are not only driving down emissions, but also thinking responsibly about impacts on people and nature right across the value chain.”

She continued, “With the publication of this Standard, we invite every steel company in the world to adopt it, every customer to ask for it and every finance house to endorse it, so that together, as a community of the willing and through dynamic collaboration we can generate the necessary investments required for this vital transition.”

ResponsibleSteel believes the publication of this Standard will send a clear signal to steel customers, the market, investors, policy makers and government leaders that this is a Standard the world can trust, is wholly transparent, will push back against greenwashing and will ultimately pave the way towards a net zero steel industry with sustainability at its core.

Learn more about the development of ResponsibleSteel International Standard V2.0 here.

Endorsements:

“We are encouraged by the progress ResponsibleSteel is making in terms of both enhancing the scope and diversity of its membership base and strengthening the rigour and extent of its certification process. Its members now include an impressively broad range of companies across the steel value chain as well as civil society actors, while the revamped standard being launched today not only improves the existing site level certification standard but introduces a product standard for the first time. Having been a member since its inception, we are pleased to continue to work closely with ResponsibleSteel on the evolution of its industry certification scheme which we believe has an important role to play in driving ESG standards across our industry.” – James Streater, Head of Sustainable Development, ArcelorMittal.

“The ResponsibleSteel Standard and certification program is an important example of multi-stakeholder collaboration for sustainable change across the steel value chain. Driven by the collaborative effort of industry and civil society, it has been designed to give customers, stakeholders and consumers confidence that the steel they use has been sourced and produced responsibly. BlueScope is pleased to have contributed to the development of the ResponsibleSteel Standard and the additional requirements.” – Tim Rodsted, Head of Sustainability, BlueScope.

“Tangible action to decarbonise the steel industry is ramping up, especially with the finalisation of the ResponsibleSteel Standard V2.0. We now have clear requirements on both greenhouse gas emissions and responsible sourcing of input materials. As the Standard forms a key part of our SteelZero commitment, these additional requirements will strengthen and clarify the collective voice of our members, boosting the demand signal for low emission and net zero steel and accelerating the net zero transition of one of the highest emitting sectors on the planet.” – Jen Carson, Head of Industry, Climate Group.

“Mighty Earth is proud to be a stakeholder in what will soon become the global standard for low-emission and responsibly sourced steel. We urge automakers and other steel buyers to get behind this. Choosing ResponsibleSteel-certified materials sends a strong message to steelmakers that investing in renewable energy-powered steelmaking makes sense economically and environmentally. This standard goes beyond greenhouse emissions and also includes critical environmental safeguards, ensuring that deforestation has no place in the steel industry’s future.” – Glenn Hurowitz, Founder and CEO, Mighty Earth.

“Lendlease endorses the establishment of ResponsibleSteel’s product certification standard. As a 1.5 degree aligned company we support globally consistent standards which provide product assurance and streamlined procurement along with a clear signal about our expectations of a responsible and decarbonised supply chain.” – Cate Harris, Group Head of Sustainability, Lendlease.

“SKF joined the Responsible Steel Initiative because steel is such an important part of our value chain and because we want to play our part in collaborating for increased sustainability within the steel industry. We are very proud to have been part of the process to define the additional requirements in this new version of the RSI standard. This is an important step, which provides producers and users of steel with common ways to measure and drive improved performance in both climate and social aspects. We look forward to working to promote the adoption of this standard and to the improved sustainability performance that will surely follow that.” – Rob Jenkinson, Net Zero Program Manager, SKF.

For more information/press interviews with ResponsibleSteel or its members please contact:

Ali Lucas, Director of Communications

alucas@responsiblesteel.org

+44 7786 546724

Savannah Hayes, Communications Manager

shayes@responsiblesteel.org

+44 7588 785909

September 14, 2022
2022
Press Releases
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August 2022 Newsletter

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August 26, 2022
2022
Newsletter
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July 2022 Newsletter

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July 25, 2022
2022
Newsletter
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Celebrating One Year Since ResponsibleSteel’s First Site Certifications

This week, we celebrate the one-year anniversary of the first site certifications carried out to the ResponsibleSteel Standard. The ArcelorMittal sites in Belgium, Luxembourg and Germany were the first sites to be independently audited and found to meet the exacting criteria contained in the ResponsibleSteel Standard.

The certifications marked an industry-first as the sites made a commitment to implementing the standard, encompassing 12 ESG principles promoting responsible steel production. A year on, ResponsibleSteel has now issued a total of 12 certificates covering 41 different sites. Currently, we have certified sites across 9 countries in Europe, North America, South America, and Australia. To add to this, we have a further 8 audits in the pipeline.

The ResponsibleSteel audit process is twofold: the first step is a self-assessment while the second is an audit carried out by an approved ResponsibleSteel certification body involving onsite visits and interviews with a wide range of stakeholders. This thorough and rigorous process reflects ResponsibleSteel’s multi-perspective approach and our dedication to ensuring that certified sites meet the carefully defined criteria set out in our standard.

As the steel industry’s first global multi-stakeholder standard and certification initiative, the site certifications awarded to ArcelorMittal last year were only the beginning. We are incredibly proud to see the increasing application of our standard globally and we are excited to continue our work to transform ResponsibleSteel’s vision to maximise steel’s contribution to a sustainable society into a reality.

A huge thank you to our members and other stakeholders for your continued support of our mission. We look forward to continuing with you on this important journey!

To learn more about our standard and the certification process, click here.

July 21, 2022
2022
News
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ResponsibleSteel™ Site Certification Awarded to ArcelorMittal France Nord

Following the certification of ArcelorMittal Méditerranée earlier this year, ArcelorMittal France Nord announces that it has obtained ResponsibleSteel™ certification. The certification marks ArcelorMittal France Nord’s commitment to implementing our Standard, which encompasses 12 environmental, social and governance principles that promote responsible steel production.

ArcelorMittal France Nord is an entity of ArcelorMittal Europe – Flat Products. The certification covers seven sites: Dunkirk, Mardyck, Desvres, Montataire, Florange, Mouzon, and Basse-Indre. The cluster employs around 7000 workers and contractors and produces flat steel products for a range of sectors such as the packaging and automotive industries.

Commenting on the certification, Matthieu Jehl, Managing Director of ArcelorMittal France Nord, stated, “our customers and stakeholders expect a quality product from us but also a more sustainable contribution to society. The ResponsibleSteel™ certification allows us to demonstrate our commitment to this goal. It is an additional asset that is part of our management system and our continuous progressive approach.”

The certification follows two stages of auditing which began in December 2021. The auditing was conducted by an independent ResponsibleSteel approved body, AFNOR. During the audit process, over 150 interviews were conducted with workers and independent stakeholders to discuss potential issues. The audit process highlighted several areas of good practice including the cluster’s structured roadmap to achieve a 35% reduction in GHG emissions by 2030.

Annie Heaton, CEO of ResponsibleSteel, stated, “We are very pleased to welcome the ArcelorMittal France Nord cluster to our expanding family of ResponsibleSteel certified sites. As more and more sites become certified, we move closer to ResponsibleSteel’s vision of maximising steel’s contribution to a sustainable society. And we look forward to continuing to support ArcelorMittal France Nord on this journey.”

To find out more about the certification, click here or take a look at our audit summary here.

July 1, 2022
2022
News
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ArcelorMittal Bremen’s Hobby Beekeepers

In celebration of World Bee Day, we caught up with two hobby beekeepers from one of our ResponsibleSteel certified sites, ArcelorMittal Bremen. The bee colonies were set up as part of the site’s Sports and Interest Group back in 2017 and quickly became a hit. Peter Wesling and Oliver Rahe discuss how they got into beekeeping and how the project has brought workers at ArcelorMittal Bremen closer together.

The idea of keeping bee colonies on the premises of a steel factory is a unique one – how did this project get started?  

The impetus for this project came in 2017 from Maike Schäfer, then leader of the Bündnis 90/Die Grünen parliamentary group and today’s Senator for climate protection, the environment, mobility, urban development and housing construction. During an exchange with our management, the protection of bees was one of the topics discussed. As a result, the Sports and Interest Group (SIG) was asked whether they could set up a division for hobby beekeepers. A group of employees quickly found themselves, as well as a colleague who also works privately as a beekeeper, and the project was launched.

Der Anstoß für dieses Projekt kam 2017 von Maike Schäfer, damals Fraktionsvorsitzende Bündnis 90/Die Grünen und heutige Senatorin für Klimaschutz, Umwelt, Mobilität, Stadtentwicklung und Wohnungsbau. Bei einem Austausch mit unserem Management wurde unter anderem der Schutz der Bienen thematisiert. Daraufhin wurde die Sport- und Interessensgemeinschaft SIG gefragt, ob sie eine Sparte der Hobbyimker gründen könnten. Schnell hat sich eine Gruppe von Mitarbeiter*innen gefunden, sowie ein Kollege der auch privat als Imker tätig ist und das Projekt wurde ins Leben gerufen.

Why did you personally want to get involved in beekeeping?

Peter Wesling: I took care of the organization of the new division and originally didn’t want to become a hobby beekeeper. However, the topic fascinated me so much that I joined the group at short notice. Experiencing the life cycle of a bee and dealing with the effects and interactions of nature inspired me. I was able to expand my knowledge about insects incredibly.

Oliver Rahe: I’ve often considered having my own bee colony, but it also comes with a lot of obligations. A lot of time and high costs have to be invested in the equipment. These are also living beings that need to be taken care of. Here at the Steelshop, it was a welcome opportunity to get into the topic and see if it was an option for me personally. It showed me that I really enjoy it. In the future I will probably buy two of my own bee colonies, I have already completed the beekeeping course.

Peter Wesling: Ich habe mich um die Organisation der neuen Sparte gekümmert und wollte ursprünglich kein Hobbyimker werden. Die Thematik hat mich jedoch so fasziniert, dass ich mich kurzfristig der Gruppe angeschlossen hatte. Den Lebenszyklus einer Biene mitzuerleben und sich mit den Einwirkungen und Wechselwirkungen der Natur zu beschäftigen hat mich begeistert. Ich konnte mein Wissen über Insekten unglaublich erweitern.

Oliver Rahe: Ich habe oft überlegt, ein eigenes Bienenvolk zu haben, aber es gehen auch viele Verpflichtungen damit einher. Es muss viel Zeit und hohe Kosten für die Ausstattung investiert werden. Das sind auch Lebewesen, um die man sich kümmern muss. Hier auf der Hütte war es eine willkommene Gelegenheit in die Thematik reinzukommen und zu schauen, ob das für mich persönlich in Frage kommt. Es hat mir gezeigt, dass es mir enorm viel Spaß macht. In Zukunft werde ich mir voraussichtlich zwei eigene Bienenvölker anschaffen, den Imkerkurs habe ich bereits gemacht.

The project is part of the Sports and Interest Group – how has beekeeping contributed to the social aspect of working at ArcelorMittal Bremen? Has it brought people together?

The project has of course helped to bring people closer together. Many have noticed that there are bee colonies and hobby beekeepers. Many colleagues approached us and asked questions, for example, what to look out for in your garden to protect the bees. Many want to contribute. In addition, colleagues who had discovered a swarm of bees in a tree called us. Because of their attention we were able to save the bees.

Das Projekt hat natürlich dazu beigetragen Menschen einander näher zu bringen. Es haben viele mitbekommen, dass es die Bienenvölker und Hobbyimker gibt. Viele Kolleginnen sind auf uns zugekommen und haben Fragen gestellt z. B. worauf sie in ihrem Garten achten müssen, um die Bienen zu schützen. Viele wollen einen Beitrag leisten. Außerdem haben sich Kolleginnen gemeldet, die einen Bienenschwarm im Baum entdeckt hatten. Dank ihrer Aufmerksamkeit konnten wir die Bienen retten.

What were the aims of the group? How has beekeeping at ArcelorMittal Bremen grown since starting in 2017?

Unfortunately, we had a very changeable winter, which was not good for our bees. We lost a few colonies. But out of the mistakes we made in winter, we will grow for the future. In the period from 2017 to today, we also had to relocate the bees once. This involves a lot of effort since a new, suitable location had to be found that is at least 4 kilometers away from the old one. If this is not taken into account, the bees would no longer find their way and would fly to their old place.

We have also been able to harvest our own honey and give it out at events. However, the goal was never to harvest honey for sale, but to understand nature and make a small contribution against bee deaths.

Leider hatten wir einen sehr wechselhaften Winter, der unseren Bienen nicht gutgetan hat. Wir haben ein paar Völker verloren. Aus den Fehlern, die wir im Winter gemacht haben, wachsen wir aber für die Zukunft. In der Zeit von 2017 bis heute mussten wir die Bienen zudem einmal umsiedeln. Da ist mit besonderem Aufwand verbunden, da ein neuer geeigneter Standort gefunden werde muss, der mindestens 4 Kilometer vom alten entfernt liegt. Berücksichtigt man das nicht, würden sich die Bienen nicht mehr zurechtfinden und zu ihrem alten Platz fliegen.

Wir konnten zudem schon unseren eigenen Honig ernten und bei Veranstaltungen ausgeben. Es war aber nie das Ziel, Honig zum Verkauf zu ernten, sondern die Natur zu verstehen und einen kleinen Beitrag gegen das Bienensterben zu leisten.

How has ArcelorMittal had to adapt the premises to suit the needs of the bees and ensure they are well cared for?

We have a lot of green and partly flowering areas on our factory premises and therefore plenty of food for the bees. In 2021, we also expanded these areas and sowed flowering meadow seeds on around 2 hectares.

Wir haben auf unserem Werksgelände sehr viel grüne und zum Teil blühende Fläche und damit auch reichlich Futter für die Bienen. In 2021 haben wir diese Flächen auch noch erweitert und auf rund 2 Hektar Blühwiesensaat ausgesät.

Both ArcelorMittal Bremen and Bottrop have been involved in planting projects and have hosted clean-up days to ensure the surrounding environment is cared for, why is this so important?

Anyone who actively supports and helps to shape something respects their surroundings differently and ensures that the surroundings continue to be well cared for. In these areas, joint actions are designed that are important for the sense of togetherness.

Wer sich aktiv für etwas einsetzt und mitgestaltet, achtet seine Umgebung anders und sorgt dafür, dass die Umgebung auch weiterhin gut gepflegt wird. In den Bereichen werden gemeinsam Aktionen gestaltet, die wichtig für das Wir-Gefühl und das Miteinander sind.

ArcelorMittal Bremen was certified last year by ResponsibleSteel. What does it mean to you to be part of a certified site? What does responsibility look like to you?

We are very proud to be part of ResponsibleSteel. This is very important to us. We must all do something to reduce the use of resources and thus contribute to the sustainable protection of the environment.

Wir sind sehr stolz darauf, ein Teil von ResponsibleSteel zu sein. Das hat für uns einen sehr hohen Stellenwert. Wir müssen alle etwas dafür tun, um den Einsatz von Ressourcen und somit zur nachhaltigen Schonung der Umwelt beizutragen.

Peter Wesling is the Chairman of ArcelorMittal Bremen’s SIG. He trained as a mechanical engineering technician and later as a welding specialist. He has worked at the Bremen site for over thirty years. Since 2007, he has worked as the site’s service maintenance line manager.

Oliver Rahe started out as an industrial mechanic apprentice and has worked at the Bremen site for over twenty years. Over the last ten years, he has worked in the field of FDD3/VDD3 mechanics, personnel disposition in the area of VDV/PDV, and work preparation and processing at PDR.

June 28, 2022
2022
Member Articles
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With Great Power Comes Great Responsibility: LRQA Takes Us Inside the ResponsibleSteel Audit Process

As the world’s largest materials industry, steel holds the power to impact the planet like few others. Aware of the responsibility this entails, stakeholders of the steel industry around the world joined forces to create the global non-profit organization ResponsibleSteel.

To maximize steel’s contribution to a sustainable future, ResponsibleSteel developed the industry’s first global multi-stakeholder standard and certification initiative. Far more than a mere badge of honor, a ResponsibleSteel certification can provide steel manufacturers and others in the industry with a clear competitive advantage. Thus, major organizations start to expressly reward their contractors for sourcing from ResponsibleSteel-certified suppliers.

For LRQA, the decision to become accredited as a ResponsibleSteel certification body was a no-brainer. After all, LRQA’s ties to the steel industry date back to the early days of steel shipbuilding, for which LRQA-precursor Lloyd’s Register provided the first standards in 1888. This background and our corporate strategy with its strong focus on sustainability make LRQA ideally suited for the new standard – and the accreditation the logical next step for the company. In 2021, LRQA completed the first ResponsibleSteel audit for a client who is now one of the very first steel manufacturers worldwide to receive a ResponsibleSteel certification for their site.

The auditing process for the ResponsibleSteel certification reflects the organization’s multi-perspective approach. Audits are conducted in two steps, the first being a thorough self-assessment conducted by the applying company for their respective site, the second, the actual audit carried out by the auditing company.

Unlike other standards, ResponsibleSteel audits also involve external stakeholders. Auditors interview not only employees but also representatives from communities, NGOs, environmental agencies, and others. To create the atmosphere of trust and openness needed for these discussions, auditors need considerable social skills. Communication is key, not only during the interviews but also as a basic ResponsibleSteel requirement. Steel companies have to be able to demonstrate that they are willing to cooperate with stakeholders, including NGOs and the general public – and that also means that they need to communicate openly and proactively.

Another distinguishing characteristic of the ResponsibleSteel Standard is its sheer scope. Auditors need to be fluent in a broad bandwidth of topics, from ethical governance, health and safety, human rights, and the collaboration with interest groups to greenhouse gas and noise emissions, water management, biodiversity, and decommissioning procedures. Here, too, LRQA benefits from our auditors’ extensive sustainability and certification expertise.

First introduced in late 2019, the ResponsibleSteel Standard comprises 12 principles covering governance, social and environmental factors, a total of 49 criteria, and 200 requirements. “ResponsibleSteel Certified Site”, the first official certification issued by ResponsibleSteel, is awarded to steel company sites that comply with all 12 ResponsibleSteel principles. As an international standard developed by multiple organizations and stakeholders, ResponsibleSteel is recognized globally. Reaching beyond standards like ISO 9001, 14001, and 45001, ResponsibleSteel demands that applicants commit fully and actively to human rights and climate protection and support this commitment through dedicated initiatives and throughout their entire supply chain.

By Sabine Bradac, a ResponsibleSteel auditor, LRQA

Sabine Bradac is an auditor for LRQA, a ResponsibleSteel approved certification body. A trained technical chemist and process engineer, she joined LRQA in 2016, bringing 17 years of experience in the metal casting industry. In addition to ResponsibleSteel, she conducts audits for ISO 9001/14001/45001 and 50001.

About LRQA

LRQA is a leading global assurance provider, bringing together decades of expertise in brand assurance, certification, cybersecurity, inspection and training, to help its clients negotiate a rapidly changing risk landscape.  

Operating in more than 160 countries and recognized by over 30 accreditation bodies worldwide, LRQA covers almost every sector, and helps clients to manage risk across the entire supply chain, drive operational improvements and build credibility with stakeholders.

June 28, 2022
2022
Member Articles
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