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SKF: Advancing decarbonisation through ResponsibleSteel

At SKF, we believe that the journey to net zero must be a collective one, built on shared standards, collaboration across the value chain, and a commitment to continuous improvement. As a global industrial technology leader and significant buyer of steel, purchasing more than half a million tons annually, we recognise the important role we play in supporting the transformation of the steel industry.

Steel is a critical material in our products and represents around 70% of our upstream carbon footprint. In recognition of this, we’ve made the decarbonisation of our steel supply chain a strategic focus. However, we also recognise that genuine progress needs more than internal ambition; it requires industry-wide alignment and credible frameworks to guide action.

That’s why SKF joined ResponsibleSteel. We see ResponsibleSteel as a vital platform for advancing a shared understanding of what responsible steel production looks like - one that integrates environmental, social, and governance (ESG) principles with robust standards for emissions and broader sustainability performance. The initiative’s multi-stakeholder governance and assurance frameworks provide the transparency and consistency needed to support informed decision-making and accelerate change.

We are proud to have contributed to the development of ResponsibleSteel’s International Production Standard, which provides a much-needed framework for measuring and improving the climate performance of steel producers. We actively encourage our steel suppliers to engage with the ResponsibleSteel Standard and consider how it can support their own sustainability journeys. Through SKF’s Sustainability Standard for Suppliers, we promote alignment with ResponsibleSteel’s 13 Principles and reporting expectations with steel and steel component suppliers. We believe that by raising awareness and fostering dialogue around ResponsibleSteel’s approach, we can help build momentum for more sustainable practices across the value chain.

In parallel, we are working closely with selected steelmakers to explore and scale low-carbon technologies. This includes partnerships to develop steel made from recycled content and hydrogen-reduced iron (H-DRI), as well as pilot projects that demonstrate the feasibility of greener steel in industrial applications. These collaborations are helping to demonstrate what’s possible and inspire broader adoption across the sector.

We also use our voice to advocate for systemic change. Through our involvement in initiatives such as ResponsibleSteel and SteelZero, we support the development of policy and market mechanisms that can accelerate the transition towards a net-zero steel industry. We believe that demand-side signals from buyers, combined with clear standards and supportive policy, are key to unlocking investment and innovation.

At SKF, we see responsible steel not only as a material choice but as a strategic lever for climate action, resilience, and long-term value creation. We’re proud to stand with ResponsibleSteel and its members in advancing this vision, and we look forward to continuing the journey together.

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ResponsibleSteel publishes verified emissions data: The next step towards transparent, consistent emissions accounting and disclosure

ResponsibleSteel has published verified greenhouse gas (GHG) emissions data from Certified Sites as part of its members’ commitment to transparent emissions accounting and data disclosure.

As pressure for credible climate action grows, clear, consistent and comparable emissions data is essential. It enables steel buyers, investors, policy makers and other stakeholders to effectively assess the emissions performance of steel production sites and make informed decisions, helping to drive progress on industry decarbonisation.

Today, we mark an important early milestone on the journey towards transparent and consistent emissions accounting and data disclosure. Following multi-stakeholder agreement on what is necessary for credible data disclosure as part of the development of the Production Standard, we are now publicly disclosing these GHG data points. But this is just the beginning.

Moving forward, we aim to see wider adoption of ResponsibleSteel’s accounting methodology for the globally comparable metric of cradle-to-crude steel GHG emissions intensity at site level, and more sites working toward achieving ResponsibleSteel Certified Steel. With this shift, we will move towards being able to compare data reliably, enabling like-for-like assessments of emissions performance.

Whilst we are already seeing incremental emissions reductions across some steelmaking sites, in the coming years, we hope to celebrate deeper emissions reductions, verified based on robust, comparable data.

What data are sites required to disclose?

Under Principle 10 of the ResponsibleSteel International Production Standard, sites are required to disclose emissions data depending on their level of certification:

Core Site Certification

Sites certified against ResponsibleSteel’s Core requirements must measure, record and verify their total site-level GHG emissions using a regionally or internationally recognised methodology. The site may choose to use the ‘cradle-to-crude’ emissions accounting methodology developed by ResponsibleSteel, but it is not mandatory. Core   Site Certification can apply to steelmaking sites as well as upstream or downstream manufacturing sites in the value chain.

Certified Steel

Sites that have achieved certification against ResponsibleSteel’s Progress Level requirements to market and sell products as Certified Steel must use the consistent ‘cradle-to-crude’ emissions accounting methodology developed by ResponsibleSteel. This enables like-for-like comparison of crude steel GHG emissions intensity across sites globally. Only steelmaking sites can be certified to sell Certified Steel. These sites must disclose their:

  • Crude steel emissions intensity;
  • Proportion of scrap used as metallic input;
  • The Decarbonisation Progress Level achieved; and
  • Product-level carbon footprint data.

All data published on ResponsibleSteel’s website has been independently verified by third-party auditors to ensure accuracy, which is then also reviewed by ResponsibleSteel’s Assurance Panel and Secretariat.

It’s important to note that while disclosing emissions at site level aids in the comparability of data, the Production Standard also permits the disclosure of a weighted average across a portfolio of sites instead, provided the portfolio meets the requirements for a ‘strategic business unit’ as defined in the ResponsibleSteel Glossary.  In some cases, due to the nature of the business unit, a portfolio may consist of both certified and non-certified sites.

Disclosure of portfolio-level data on the ResponsibleSteel website represents a valuable next step and in time, we anticipate more steelmakers will opt to publish site-level data to strengthen transparency, enable clearer insights, and support decarbonisation progress.

Why are there gaps in the data?

It’s important to note that not all data is available yet. This could be because:

  • A site is preparing for an upcoming surveillance or re-certification audit, after which the most recent data will be published; or
  • A site was certified under an earlier version of the Production Standard. Public disclosure of GHG emissions data became a formal requirement with the publication of Version 2.0 of the Production Standard in September 2022. Sites certified under an earlier version are not obliged to publish this data on ResponsibleSteel’s website until it comes time for re-certification.

Working towards transparent, comparable emissions data measurement and reporting

Comparability of GHG emissions data is only meaningful when consistent measurement methodologies are applied. This includes (but is not limited to) aligning on emissions boundaries, the types of GHGs included, the use of default data, and the allocation methods for scrap and co-products.

For this reason, data from Core Site Certifications, while valuable, is not directly comparable across sites, as each may use different recognised methodologies.

To obtain certification to sell Certified Steel, however, sites must use ResponsibleSteel’s methodology to calculate their data, allowing for clear and consistent comparisons between steelmaking sites worldwide.  

To strengthen comparability and accelerate the industry’s transition, ResponsibleSteel encourages all steelmaking sites, whether pursuing Core Site Certification or not, to adopt its emissions accounting methodology and to publish their data.  

Learn more about ResponsibleSteel’s emissions accounting methodology here.  

To explore the data disclosed by ResponsibleSteel Certified Sites, visit our new webpage.

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ResponsibleSteel: How did we get here?

Steel is everywhere. It’s in the buildings we live and work in, the cars we drive, and the wind turbines we’re relying on for a low-carbon future. It’s strong, versatile and essential. But it also comes with a heavy social and environmental footprint, having a profound impact on people and the planet.

As global attention increasingly began to zero in on climate and sustainability issues, industries like agriculture, textiles, and timber began developing standards to measure and improve their impacts. But steel, despite being one of the most widely used and most carbon-intensive materials globally, remained largely outside this conversation. There was no common language, no shared benchmark, and no way of independently measuring industry progress.

An idea takes shape

The concept for a global standard for steel started to take shape between 2011 and 2015, developed initially by the Australian Steel Stewardship Forum. The foundations were laid for an international, non-profit, multi-stakeholder organisation to tackle the most pressing sustainability issues in the steel industry.

By 2015, industry stakeholders, including BlueScope and ArcelorMittal, began coming forward to support the initiative, recognising the need for an independent initiative to drive and measure industry progress. In 2016, the first face-to-face council meetings were held, and the organisation was incorporated as the Steel Stewardship Council.

ArcelorMittal Ghent, image credits to Joe Woodruff

The development of the first Standard

Developing a sustainability standard for one of the world’s most complex industries was no small task. But by 2017, the first working draft of ResponsibleSteel’s Production Standard had been developed using ISEAL’s Codes of Good Practice as a reference.

Over the next two years, input from over 70 organisations and 180 individuals helped shape and strengthen the standard. In 2019, the ResponsibleSteel International Production Standard Version 1.0 was approved by both business and civil society members, marking a critical milestone in making responsible steel a global reality.

The first certificates presented to ArcelorMittal sites in Belgium, Germany, and Luxembourg

The first ResponsibleSteel Certified Sites

Within two months of launching the Standard, the first steel sites began the audit process. Despite setbacks caused by the COVID-19 pandemic, the world’s first ResponsibleSteel certifications were awarded in 2021 to four ArcelorMittal sites in Belgium, Germany, and Luxembourg.

Momentum quickly grew. By 2022, sites in Australia, North and South America, and Asia were certified, and by November, ResponsibleSteel Certified Sites spanned five continents and covered over 100 million tonnes of steel production.

Annie Heaton, CEO of ResponsibleSteel; David Burritt, CEO of U. S. Steel; and Helen Clarkson, CEO of Climate Group at Climate Week NYC 2024. Image credit to Joe Woodruff

Raising the bar: Certified Steel

Even before the first certificates were issued, work had already begun on a more ambitious task to define what truly low-emission, responsibly sourced steel should look like.

This led to the development of rigorous requirements on decarbonisation and materials sourcing. These requirements were refined through member working groups, public consultations, and a 12-month test phase, before being finalised as part of the ResponsibleSteel International Production Standard Version 2.1, published in 2024.

Version 2.1 marked the green light for steelmakers ready to take their ResponsibleSteel journey to the next level: Certified Steel. In September 2024, at Climate Week NYC, U. S. Steel’s Big River Steel was unveiled as the first site globally to market and sell Certified Steel.

What’s next?

What began as a small initiative has become a global multi-stakeholder movement. Today, the ResponsibleSteel community numbers over 160 members from across the steel value chain and civil society organisations.

With the support of our members and partners, we continue to work to improve our standards and certification programmes. This includes work on the revision of the Production Standard to ensure it remains aligned with the needs of the industry and our planet, and the development of a Chain of Custody Standard to enable downstream buyers to make credible claims relating to the amount of Certified Steel in their products.

Together, we’re striving to construct an ecosystem to support a positive industry transition by engaging the full value chain, as well as policymakers and finance institutions, and by championing consistent, comparable emissions measurement to support alignment across standards and build a market for low-emission and near-zero steel.

Join the Movement

Steel is at the heart of the global economy – and the climate challenge. The work we do now will shape the industry of the future.

Find out how you can get involved here.

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Holding steel to a higher standard: What is ResponsibleSteel?

Steel is everywhere. It’s in the buildings we live and work in, the cars we drive, the bridges we cross, and the products we use every day. It's an essential material in the modern world and critical to the renewable energy transition.

But steel also comes with a cost. It’s a major source of emissions, contributing to 10% of global energy-related emissions, and the way it’s produced can have serious impacts on local communities and ecosystems. With growing pressure to reduce emissions, improve supply chain practices, and meet evolving regulations, the steel industry faces a huge challenge.

That’s where ResponsibleSteel comes in.

We're a global not-for-profit organisation created to maximise steel’s contribution to a sustainable world. Our mission is to be a driving force in the production of socially and environmentally responsible near-zero steel, steel that buyers and investors can get behind.

ResponsibleSteel supports:

  • Steelmakers to demonstrate good practice on social and environmental issues, and measurable progress on decarbonisation
  • Steel buyers and investors to make informed decisions and reduce risk in their supply chains and portfolios

Together, we have the opportunity to do things differently and support the industry's transition to a responsible, low-emission future.

What we do

ResponsibleSteel is the global standards and certification initiative for the steel industry. Working collaboratively with over 160 members from across the steel supply chain and civil society, we have developed the ResponsibleSteel International Production Standard via a process that uses the ISEAL Codes of Good Practice as a reference.

The ResponsibleSteel International Production Standard contains 13 Principles covering key environmental, social and governance issues identified and agreed upon by our members for the responsible production of steel. The Production Standard evaluates the full picture—not just carbon emissions, but also labour rights, human rights, water use, biodiversity, raw material sourcing, and other key issues that affect people and the planet.

Certification against the Production Standard combines all the complexities of good social and environmental performance in one indication. Steelmaking sites must undergo rigorous, third-party audits to become certified, ensuring that a site is meeting the highest environmental and social standards.

Certification provides steelmakers with a clear framework for improvement and helps buyers, investors, and other stakeholders understand whether a site is operating responsibly.

How it works

Certification is broken down into Core Site Certification and Steel Certification, or ‘Certified Steel’.

Core Site Certification against the Production Standard is the first step sites can take on their ResponsibleSteel journey. Sites undergoing Core Site Certification are evaluated against over 300 core requirements, covering the key social and environmental aspects of steelmaking such as pollution, biodiversity, water stewardship, labour rights and local communities. Core Site Certification is a major achievement, requiring commitment at the corporate level and across all of the site’s operations.

Now, steelmaking sites can build on their Core Site Certification, pursuing certification against the Production Standard’s Progress Level requirements for decarbonisation and responsible materials sourcing. The Production Standard defines four Progress Levels for the measurement of decarbonisation and responsible materials sourcing. Steelmaking sites that achieve at least Progress Level 1 for both are able to market and label their products as ‘Certified Steel’.

Why it matters

The need for reliable, consistent, comparable data in the steel industry has never been greater. Governments are introducing stricter climate disclosure regulations. Steelmakers and buyers are under pressure to reduce emissions and meet consumer demand for more sustainable products. And investors want to know which steelmakers are producing responsibly and planning for the future.

Certified Steel helps steelmakers show progress, build trust, and stand out in a competitive market. And it gives buyers and investors the confidence that a site has not only met the strong environmental and social criteria required for Core Site Certification, but is also making measurable progress on decarbonisation and materials sourcing. Certified Steel:

  • Assures that steelmakers are meeting the highest social and environmental standards
  • Offers credible, comparable emissions data to simplify decision-making
  • Reduces supply chain and financial risks, protecting reputation and value

Working together to shape steel’s future

The industry will not transform overnight. And the transition cannot be left to steelmakers alone. Driving progress in the industry will require clear demand signals from steel buyers and backing from investors. That’s why we are working closely with buyers and investors to forge a path to a sustainable future for steel. Together, we’re helping to build a global market that is better for people, for business, and for the planet.

If you want to learn more, get involved, or see how ResponsibleSteel could support your work, we’d love to hear from you. Let’s take steel from strength to strength.

Learn more about ResponsibleSteel standards and certification here.

Are you a steel buyer or investor? Find out how you can get involved here.

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ResponsibleSteel publishes fundamentals for GHG emissions accounting and classification to drive transparency, comparability, and decarbonisation progress

To help improve the accessibility of ResponsibleSteel’s emissions methodology and accelerate robust emissions accounting and reporting, ResponsibleSteel has today published extracts from Principle 10 of the ResponsibleSteel International Production Standard relating to Climate Change and Greenhouse Gas (GHG) Emissions.

Importantly, this is not an independent standard against which steelmakers can make certification claims. Instead, ResponsibleSteel's Fundamentals for GHG Emissions Accounting and Classification is designed as a valuable resource for steelmakers, steel buyers, policymakers, investors, and civil society organisations to use as a reference to measure and track progress as the global industry transitions to lower-emission production practices.

The document aims to improve the comparability, consistency and transparency of emissions accounting and reporting across the global steel industry by outlining three of Principle 10’s fundamental components:

  1. ResponsibleSteel’s methodology for the calculation and disclosure of crude steel GHG emissions intensity at the site level.
  2. ResponsibleSteel’s classification system to assess a steelmaking site’s decarbonisation progress.
  3. ResponsibleSteel requirements for GHG emissions intensity declarations at product-level.

ResponsibleSteel’s “Decarbonisation Scale” approach enables all steelmaking sites, globally, to be compared on a like-for-like basis, based on transparent and fair accounting rules. By adopting this approach, the industry has the opportunity to increase the transparency and consistency of emissions data across the value chain, reducing administrative burdens and enabling more effective implementation of decarbonisation policies and mechanisms.

This new publication will be particularly valuable for stakeholders either looking to align with ResponsibleSteel’s approach or to build interoperability between GHG-specific frameworks, regulations, and procurement systems.

It is important to note that no claims relating to ResponsibleSteel certification, or its equivalency, or Decarbonisation Progress Level achievement, can be made based on this document alone. The document only represents a subset of Principle 10, which in full also addresses corporate commitments to the Paris Agreement, climate-related financial disclosures, and additional site-level emissions reductions. Nor does it include any of the other 12 Principles outlined in the Production Standard relating to the responsible production of steel.

We believe that truly responsible steel production requires steelmakers to go beyond decarbonisation and take steps to mitigate other social and environmental impacts. But amidst the growing urgency of the climate crisis, ResponsibleSteel remains committed to supporting global steel decarbonisation through practical tools developed with multi-stakeholder support. This latest publication reflects that commitment to offering robust, credible, scalable tools to accelerate emissions reductions at scale.

For any questions about the use or development of ResponsibleSteel’s Emissions Metrics, please contact standards@responsiblesteel.org.

Learn more about ResponsibleSteel’s Fundamentals for GHG Emissions Accounting and Classification here.

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ResponsibleSteel and LESS aisbl urge robust, scrap-conscious approach to effective European steel decarbonisation 

ResponsibleSteel and the Low Emission Steel Standard (LESS aisbl) today jointly release a new policy briefing, ‘The Steel Decarbonisation Scale’, urging European policymakers to adopt a more robust and realistic approach to steel decarbonisation—one that recognises the physical limits of scrap supply and incentivises genuine emissions reductions across all steel production routes.  

The study highlights that Europe’s steel industry, as the world’s second-largest producer, is responsible for 6% of the European Union’s total emissions. With ambitious EU targets aiming for a 55% reduction in net greenhouse gas emissions by 2030 and net zero by 2050, the way steel decarbonisation is measured and incentivised is of critical importance.  

A key finding of the study is that current policy discussions, including the European Steel and Metals Action Plan (ESMAP) and proposals for voluntary carbon labels for steel, risk undermining climate goals if they fail to account for the fundamental constraints on scrap availability. Despite a high global steel recycling rate of 85%, only about 32% of the world’s demand for new steel can currently be met with recycled scrap due to the long lifetime of steel products, according to the International Energy Agency (IEA). While the amount of available scrap is set to increase, the IEA estimates that scrap will still only be sufficient to meet 46% of steel demand by 2050.

“Steel decarbonisation requires an appropriate base for comparing steel products in terms of their global climate impact,” said Dr. Martin Theuringer, Secretary General of LESS aisbl. “Scrap is a valuable and limited resource. Any label or standard that ignores this risks distorting markets and ultimately slowing down the transition to truly low-emission steel. Our approach ensures that both primary and scrap-based production are incentivised to decarbonise, not just to compete for a fixed pool of scrap.”  

ResponsibleSteel and LESS propose the adoption of a “steel decarbonisation scale” that complements traditional carbon footprinting by explicitly accounting for the ratio of scrap and primary iron used in steelmaking. This approach, already recognised by the G7 and incorporated into international standards, would:  

  • Prevent fruitless competition for a limited scrap supply  
  • Incentivise decarbonisation across all steel production routes  
  • Promote technology-neutral, WTO-compliant solutions  
  • Support the competitiveness of European industry while advancing global climate goals  

“A European label for steel is a great opportunity to incentivise steelmakers to become globally competitive on their real decarbonisation progress,” said Annie Heaton, CEO of ResponsibleSteel. “A well-designed classification system will do this by taking into account scrap content in addition to the measurement of steel‘s carbon intensity, recognising that scrap will at best provide half of the world’s steel by 2050. As a result, this ‘steel decarbonisation scale’ approach incentivises investments that drive progress in the steelmaking process itself, whether in primary or secondary iron and steel making.”  

The two organisations call on the European Commission to integrate the steel decarbonisation scale into the development of voluntary labels, lead markets, and investment support mechanisms, ensuring that future measures are effective, fair, and aligned with Europe’s climate ambitions.

Download the briefing here.

Access ResponsibleSteel’s approach to GHG emissions metrics here.

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ResponsibleSteel publishes second annual Progress Report

ResponsibleSteel is fast becoming the reference tool to drive the demand, policy, and finance levers necessary for the steel industry’s transition, providing a sustainability roadmap that customers, communities, investors, and workers can all get behind.

ResponsibleSteel’s annual Progress Report provides an opportunity to measure and report on the progress of our programmes, celebrating our milestones and identifying areas for learning and improvement.

In this second ResponsibleSteel Progress Report, we track the development of new work undertaken in 2024, the growth of ResponsibleSteel's membership, and the progress of our certification programme as we look toward 2030 and beyond.

2024 was a challenging year for the industry, but despite setbacks, we continued to see real determination and progress.

In 2024, we saw a 34% increase in the number of Certified Sites, bringing the total up to 87. And we saw the first sites complete re-certifications, a true testament to the enduring value of ResponsibleSteel certification. Critically, the first Certified Steel was also launched on the market – 2.4 million tonnes produced by U. S. Steel’s Big River Steel site – marking a new era of progress.

This Progress Report examines the growth of ResponsibleSteel’s certification programme and membership in 2024, as well as featuring other highlights from the year, including:

  • The launch of the International Production Standard Version 2.1
  • The launch of a draft Chain of Custody Standard
  • The publication of our report, Charting Progress to 1.5°C through certification
  • Insights into the value of ResponsibleSteel membership and certification from our 2024 Membership Survey

Looking to the future, we continue to build on work begun in 2024 to build a market for responsibly produced, near-zero steel by engaging with and mobilising policymakers, investors, and buyers of steel.

Read the full report to find out more about our progress in 2024 and plans for 2025.

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February 2023 Newsletter

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

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February 21, 2023
2023
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ArcelorMittal Warszawa Obtains ResponsibleSteel Certification

We’re proud to announce that ArcelorMittal Warszawa has recently earned ResponsibleSteel Certification. The site, after a successful audit carried out by auditors from DNV (Det Norske Veritas) Poland, received the certificate at the end of January confirming that the site had fulfilled the criteria required to earn certification against the ResponsibleSteel Standard.

ResponsibleSteel CEO Annie Heaton stated, “It’s inspiring to see ArcelorMittal’s continued dedication to achieving site certification for all sites across Europe, reflecting the company’s unswerving commitment to working with ResponsibleSteel to build a sustainable, net-zero industry. ArcelorMittal Warszawa is the 8th electric arc furnace steel site to be certified against the ResponsibleSteel International Standard and has demonstrated a keen sense of responsibility towards the environment as well as to the site’s workers and nearby populations. The site consults regularly with local stakeholders and organises community site visits. The site has also invested significantly in reducing pollution, particularly noise pollution, and has committed to a 35% reduction in CO2 emissions by 2030. We look forward to supporting them as they work to fulfil this goal.”

ArcelorMittal Warszawa is a state-of-the-art mini mill, located in Poland. It started operations in 1957, becoming a reputed producer of carbon and special steel long products. ArcelorMittal Warszawa’s production cycle is based on Electric Arc Furnace (EAF) scrap recycling. The company is producing increasing volumes of products branded  XCarb™ – (an umbrella brand that groups together all of the reduced, low, and zero carbon steel making activity of ArcelorMittal). Products manufactured by ArcelorMittal Warszawa are used in the automotive, machinery engineering, bearing and construction industries.

Commenting on the certification, Artur Gierwatowski, CEO of ArcelorMittal Warszawa stated, “This certificate is a great recognition for us at ArcelorMittal Warszawa but also a commitment to our stakeholders. Our customers, our employees and members of local communities expect us to produce high quality steel respecting the highest social and environmental standards. The ResponsibleSteel certificate recognizes that we are succeeding in doing it. This makes us very proud, and constitutes a commitment to further ArcelorMittal Warszawa’s sustainable development in coming years.”

The certification audits against the ResponsibleSteel Standard were performed between May and September 2022. They were designed to verify that the steel site’s activities meet a set of rigorously defined requirements, which auditors validate not only on the basis of documentation but also via a number of interviews with internal and external stakeholders. They take into account a broad range of social and environmental criteria including business integrity, relations with employees and communities, human rights and labour rights, climate change and greenhouse gas emissions, water management, waste and noise emissions, and biodiversity.

View the certificate here.

February 2, 2023
2023
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January 2023 Newsletter

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January 20, 2023
2023
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JSW Steel Joins ResponsibleSteel

JSW Steel, one of India’s leading steel manufacturers, has today joined ResponsibleSteel, the only global multi-stakeholder standard and certification initiative for responsibly sourced and produced steel.

JSW Steel is the flagship business of the diversified, US$ 22 billion JSW Group, which is expanding across markets with innovation, digitalization, and sustainability as its key anchors. With efficient integrated operations and a clear vision for the future, JSW is executing its strategic growth plan in line with the growing steel demand.

Annie Heaton, ResponsibleSteel’s CEO, commented, “We are delighted that JSW has joined ResponsibleSteel as a member and very much welcome the commitment to sustainability standards this represents. It is another great example of leadership in the steel industry, and particularly important to see this in India given its role in driving decarbonisation both at home and globally. By joining us, JSW is committing to achieving certification against the ResponsibleSteel International Standard, which in the world of decarbonisation and ESG has no equal. Certification of a steelmaking site requires hard work across the board to integrate not only decarbonisation plans into the site’s strategy but all material environmental and social improvements, which means investment and technological know-how plus a strong commitment from the company’s management and its employees. We look forward to working with JSW as they move forward on their journey of decarbonisation and sustainable development.”

Over the last three decades, JSW Steel has grown from a single manufacturing unit to become India’s leading integrated steel company with a capacity of 28.5 MTPA in India and the USA (including capacities under joint control). Its next phase of growth in India will take its total capacity to 38.5 MTPA by FY25. The Company’s manufacturing unit in Vijayanagar, Karnataka is the largest single-location steel-producing facility in India with a capacity of 12 MTPA. JSW Steel has always been at the forefront of research and innovation. It has a strategic collaboration with global leader JFE Steel of Japan, enabling JSW to access new and state-of-the-art technologies to produce and offer high-value special steel products to its customers. These products are extensively used across industries and applications including construction, infrastructure, automobile, electrical applications, and appliances.

Seshagiri Rao, JMD & Group CFO stated, “The move to join ResponsibleSteel is to collaborate and work with other businesses in creating values, tools, and policies, to accelerate the growth of the steel industry in a sustainable manner and enhance sustainability within our supply chain, so that customers are confident that the steel they use has been sourced and produced responsibly at every stage.”

He continued, “At JSW we understand our responsibility towards making our planet better and are happy to join ResponsibleSteel to demonstrate our commitment through participating in the international certification programme.”

JSW Steel has set ambitious sustainability targets including reducing its specific CO2 emissions by 42% by FY2030 from 2005, aligning its target with the Sustainable Development Scenario (SDS) of the International Energy Agency (IEA) and India’s Nationally Determined Contributions.

Read the full press release here.

January 20, 2023
2023
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ResponsibleSteel joins ISEAL as a Community Member

We are delighted to announce that ResponsibleSteel has recently been approved as an ISEAL Community Member, joining a growing group of members committed to supporting and improving sustainable practices.

ISEAL supports ambitious sustainability systems and works to help members improve these systems to achieve maximum impact. ResponsibleSteel joins several ISEAL Community Members from the mining, metals and minerals sector and looks forward to having the opportunity to share knowledge and experience in order to develop and support sustainable growth in the steel industry.

Annie Heaton, ResponsibleSteel’s CEO commented, “As the only global multistakeholder standard for steel, our aim is to be a driving force in the socially and environmentally responsible production of net-zero carbon steel. We strive to ensure that our ResponsibleSteel International Standard is the most trusted standard for responsibly sourced and produced steel and a leading authority on ESG issues in the industry.”

She continued, “Obtaining ISEAL Community Membership is a critical step on this journey and will help us improve our systems and our credibility as a global standard. We plan to work towards becoming ISEAL Code Compliant over the next few years. We look forward to working with other members of the community and sharing knowledge and experience in order to ensure our work has the greatest impact possible.”

As the only global multi-stakeholder standard and certification initiative for responsibly sourced and produced steel, we are committed to continuously improving our Standard, maximising steel’s contribution to a sustainable world. The ResponsibleSteel International Standard 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, labour standards, and more.

ISEAL’s Executive Director, Karin Kreider, commented, “I am very excited to have ResponsibleSteel join ISEAL as a Community Member. Their standards address climate change, pollution, and human rights in various stages of the steel supply chain — the world’s most widely used material. I look forward to a fresh perspective from a new member in the mining and minerals sector and working together in the coming months and years.”

ISEAL members are sustainability systems and accreditation bodies dedicated to delivering benefits for people and the planet. They are committed to continually improving their systems and impacts through learning and innovation; collaborating with stakeholders and peers; and are transparent and truthful about how their systems work and how they measure their impacts.

We are proud to become an ISEAL Community Member and look forward to joining a growing number of sustainability initiatives that are working to drive positive change for both people and the planet.

January 16, 2023
2023
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ResponsibleSteel and global banks agree MoU for the rapid decarbonization of steel

As world leaders prepare to gather in Davos next week for the World Economic Forum, ResponsibleSteel is delighted to announce it has agreed an MoU with the Sustainable STEEL Principles Association (“SSPA”). This is a huge and positive step toward harmonization and greater collaboration between the two organisations and paves the way for the facilitation of the faster decarbonisation of steel.

Annie Heaton, CEO of ResponsibleSteel said, “With the clock ticking on climate change, we need pragmatic solutions to tackle climate change especially, in relation to heavy industry. These solutions need to be based on technological breakthroughs, innovation and creative problem solving. They also need to be global. None of this will be possible without a radical step change in how we finance these breakthroughs so industries like steel can decarbonize rapidly and be a force for good. The MoU between the SSPA and ResponsibleSteel signifies a continued determination by banks, the steel industry and wider stakeholders to achieve real progress towards net zero by 2050, and all the complexities which that entails.”

Steel decarbonization has come under the spotlight recently at global leaders’ meetings, for example COP26 and COP 27, which is right given the significant contribution of the industry to global greenhouse gas emissions. Amidst the proliferation of initiatives now focusing on steel decarbonization, this MoU signals a clear recognition that more work must be done to avoid a divergence of standards and work towards alignment, where possible.

Both the SSPA and ResponsibleSteel have pragmatic and expert pathways towards rapid sustainability. The SSP provide a framework for banks to assess the decarbonization of the steel companies within their portfolios, as well as the climate alignment of their steel lending portfolio. ResponsibleSteel provides an international standard for steel sites to be certified against.

Erik van Doezum, Global Steel Lead at ING and Chair of the SSP said, “The decarbonization of the steel sector globally requires significant investments to be made, and financing will be needed to facilitate these. Banks therefore will have to identify high quality decarbonization business plans, allowing them to guide their assets into investments compatible with a 1.5C future. Building consistent and transparent data via reporting requirements for the steel sector will be paramount to facilitating financing for the decarbonization of the sector. This will enable all parties – steelmakers, lenders and other stakeholders – to use and understand common measures of progress. That is why we believe that this MoU between Responsible Steel and the SSPA is important – it signifies the importance of collaboration towards those ends.”

Much analysis and scrutiny has gone into understanding the dynamics of the steel sector in the development of both the new ResponsibleSteel GHG requirements and those of the Sustainable STEEL Principles. The SSPA and ResponsibleSteel have now signaled a continuing desire to cooperate in the interest of complementarity between standards.

In addition to this MoU announced today, ResponsibleSteel is setting up a Finance Working Group (FWG) with key voices from the steel industry, global finance, investment and civil society. Its goal will be to facilitate dialogue including benchmarking carbon requirements within the ResponsibleSteel Standard and certification programme in order to facilitate capital flows to meet decarbonization requirements. The initial round of discussion will start this month and the FWG hopes to report on its recommendations by December 2023.

January 12, 2023
2023
News
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ArcelorMittal Monlevade becomes certified against the ResponsibleSteel Standard

The ArcelorMittal site, located in João Monlevade in the state of Minas Gerais, has recently been certified against the ResponsibleSteel Standard following a year-long process involving a rigorous audit conducted by DNV (Det Norske Veritas).

Founded in 1937, the Monlevade plant produces long carbon steels with special characteristics for the manufacture of auto parts such as steel cords for tyres, bars for shock absorbers, helical springs, fasteners, steel wool, cables, and welds. Its steel is present in three out of four tires used in Brazil.

ResponsibleSteel CEO Annie Heaton commented, “this is an exciting accomplishment which has been a long time in the works. It’s a reflection of the dedication and hard work ArcelorMittal Monlevade has put in to ensure they are meeting the highest standards of responsible steel production. In addition to achieving carbon neutrality by 2050, they have set an interim commitment of reducing scope 1 and 2 emissions by 10% by 2030. They have also taken great care to meet the needs of workers and the local community and to implement practices which protect the surrounding natural environment.”

DNV Brasil’s auditors visited all the facilities of the Monlevade site and interviewed stakeholders and the site’s leadership to assess the operations and processes according to the principles of the ResponsibleSteel Standard. They interacted with employees, contractors, representatives of the City Council and social projects, and community leaders, among others.

“The ResponsibleSteel certification is one of the most complex to be achieved. It assesses governance standards, from decarbonization of processes to respect for human rights, local communities and employees, from the safety of employees and processes to the responsible use of natural resources,” explained Fabiano Cristeli, head of operations at ArcelorMittal Monlevade.

He continued, “the Biodiversity Master Plan, the high rate of water recirculation, which is 98.77%, as well as the suppliers’ training on conduct and anti-corruption policies outstood. Other actions were well rated in the report, including the fight against child labour, the preparation of teams of volunteers, and the support for social projects in the region, such as the Chords project, which consists of teaching classical music to children and youngsters.” The company’s goals of having 25% of women in leadership positions by 2030 and of being carbon neutral by 2050 also drew the auditors’ attention.

The Monlevade site will also be receiving investments of BRL 2.5 billion by 2024 to facilitate its expansion. The expansion is expected to increase production capacity from 1.2 million tons to 2.2 million tons of steel per year and create 650 jobs onsite, plus generate further jobs during the expansion process. The investment will enable the implementation of another sinter plant and a new blast furnace, in addition to other improvements. Following the expansion, the Monlevade plant will be one of the largest long carbon producers in the country.

The audit report was reviewed by an independent Assurance Panel and the certificate is valid for three years. It is the second one obtained by an ArcelorMittal operation in Brazil following the certification of the Tubarão site in March 2022. ArcelorMittal’s goal is to certify all plants in Brazil by December 2023.

Read the full press release here or watch the video announcement by ArcelorMittal South America Long CEO Jefferson de Paula here.

January 4, 2023
2023
Article
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December 2022 Letter

Please view the December 2022 letter from our CEO, Annie Heaton, by clicking the link below:

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December 16, 2022
2022
Newsletter
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Forum III Highlights

2022 has been a year of great progress for ResponsibleSteel and the steel industry more broadly. We have made huge strides in the last twelve months. And after three years, we were finally able to come together in person at Forum III in Memphis.

We had nearly 200 delegates from over 70 organisations around the world with speakers from leading steel companies, downstream consumers, financial institutions, and civil society. We were thrilled by the enthusiasm demonstrated and we are very grateful to everyone who participated.

We’ve put together a short video celebrating Forum III and sharing a few highlights from participants. Enjoy!

December 14, 2022
2022
Events
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The ‘Sliding Scale’: Setting Equitable Thresholds to Drive Global Steel Decarbonisation

This September the ResponsibleSteel International Standard Version 2.0 was launched following almost three years of development by ResponsibleSteel and its multi-stakeholder membership. It included exacting new criteria on both the responsible sourcing of input materials and on climate change and greenhouse gas (GHG) emissions. Recent years have seen numerous approaches suggested for how best to define the GHG emissions of steel production. This briefing paper situates the use of a ‘sliding scale’ to evaluate a steel production site’s progress on GHG emissions as a key measure to decarbonize the global steel industry. The ‘sliding scale’ is one component of the ResponsibleSteel International Standard.

Steel is one of the world’s most widely used materials. From buildings to bridges, from cargo ships to cutlery, electric vehicles to wind turbines – steel is at the foundation of contemporary societies and in the infrastructure needed to transition to more sustainable ones. Steel has pertinent impacts on both people and planet across environmental, social, and governance issues.

One such issue that is increasingly in the global spotlight is the steel sector’s contribution to climate change. Steel production is estimated to directly emit between 7% and 9% of global anthropogenic carbon dioxide emissions. Diverse actors and stakeholders are taking action to catalyze change and reduce the GHG emissions of the steel sector – civil society, governments, multilateral bodies, steelmakers, steel buyers, financiers, think tanks, academics, and many more.

While the proliferation of actors engaging in this issue is welcome and essential to achieving optimal outcomes, the challenge of steel decarbonisation is best served by the non-proliferation of standards. Common, consistent, and globally comparable definitions are needed.

Decarbonising steel and the ‘sliding scale’

Reducing the steel sector’s global greenhouse gas emissions to net zero will need the world to use less steel, use steel more efficiently, switch to alternative less emissions-intensive materials where possible, maximise the reuse and recycling of steel and, critically, decarbonize steel production itself.

Steel is made with iron-bearing input material through the reduction of iron ore and the recycling of scrap metal. Steelmaking sites use differing shares of these two input materials and consequently different sources of energy input. Iron ore based production – which makes up around 70% of today’s steelmaking – is far more emissions intensive than scrap based production, since stripping oxygen from iron ore is extremely energy intensive and today relies on fossil fuels. Innovative production methods, including those that use cleaner fuels such as hydrogen, are poised to reduce this emissions intensity, but the scale and cost of the transition has historically been prohibitive. In scrap based production, electricity is used and emissions are lower, meaning emissions can be reduced through the procurement of renewable electricity.

Significant demand side measures will be needed to reduce the consumption and therefore production of steel, but 1.5C scenarios still demonstrate the need for significant decarbonisation of steel production. For instance, the International Energy Agency’s (IEA) Sustainable Development Scenario, which outlines a trajectory compatible with the goals of the Paris Agreement, is based on the assumption that two-fifths of the emissions reductions from steel until 2050 occur from material efficiency.

Estimates suggest that about 85% of globally available scrap steel is recycled today. This number must be increased to as close to 100% as possible and the quality of steel reuse and recycling vastly improved, but it also reflects the fact that there is  limited and constrained room for growth of scrap steel, at least in the short term. It is well established that there is simply not enough scrap steel to meet demand today nor is there likely to be in 2050. For example, the IEA’s Sustainable Development Scenario, despite its assumption of significant material efficiency, projects total demand increasing from today to around 2 billion tonnes annually in 2050. In this scenario, scrap makes up 46% of iron bearing material, leaving the remainder to be met through iron ore. Additionally, some grades of steel currently require iron ore based production methods. This is not to say that both quantity and quality of scrap steel recovery, processing and use should not be systematically addressed and ameliorated. Rather, that new iron ore based steel will be needed to meet socio-economic needs and to transition to a low carbon future.

The scarcity of scrap combined with its lower emissions profile and the ability of steel plants to incrementally increase scrap input together mean that emissions intensity alone is an insufficient measure to drive the decarbonisation of the steel industry. Incremental increases in scrap usage can significantly lower the emissions profile of steel production at a given steelmaking site, but it is important to be mindful of only serving to shift around the finite supply of scrap from one producer to another.

For the steel customer aiming to contribute to decarbonizing the industry, how can they help to drive industry wide decarbonization? Of course the first principles of design and material efficiency are central, as is driving and enacting genuine high-quality circularity within their operations and supply chain. Selecting steel products according to their emissions intensity alone would drive demand towards steel with higher scrap shares. This could simply cause the finite volumes of scrap to be reallocated, without decarbonizing the industry as a whole.

Setting variable thresholds for embodied GHG emissions that take account of the share of scrap input resolves this issue, and provides effective benchmarks for steelmakers whatever level of scrap they use, and so drives the structural, physical decarbonisation of the steel industry. The ResponsibleSteel Standard V2.0 defines quantitative performance levels for the GHG emissions intensity of crude steel production. It gives four levels ranging from the basic threshold to the near zero threshold. Approaches taking account of the variable amounts of scrap used in production have been dubbed the ‘sliding scale’.

Illustration based on ResponsibleSteel International Standard Version 2.0

Underpinning the ResponsibleSteel scrap-variable GHG thresholds are the accounting rules within its International Standard V2.0 which ensure the consistent and transparent measuring of GHG emissions at the site level. These rules, together with the thresholds, provide a tool for decision makers that reflect a number of principles ResponsibleSteel believes are essential to the establishment of an international standard to drive global steel decarbonization:

Comparable. Specifying the emissions from mine to crude steel production, the standard uses a boundary common to every steelmaker, to ensure comparability of steel production from one producer to another, anywhere in the world and no matter their level of integration. Consistent accounting rules enable ‘apples for apples’ consideration of the GHG emissions embodied in steel.

Stable but adaptable. The ResponsibleSteel International Standard V2.0 also includes a five-yearly review of the specified thresholds, enabling them to be revised with the objective “to achieve the fastest global transition to a near zero steel sector”. This ensures a level of predictability and stability to the thresholds, whilst also leaving flexibility to tighten the requirements and the level of ambition as our understanding of the 1.5°C challenge evolves. The ‘sliding scale’ itself does not prescribe how much steel should meet what level by when. Rather it provides simple graduated measures of progress towards near zero that can be used as an effective tool by customers and governments to achieve their ambitions. Various scenarios provide indications of what is needed, the Mission Possible Partnership’s Carbon Cost scenario for example, identifies the need for 170 million tonnes of annual near zero iron ore based production to be online by 2030 if the industry is to stay on track for a 1.5°C future.

Technology agnostic. The ‘sliding scale’ approach is technology agnostic – it assesses performance by the progress a site makes on GHG emissions. It rewards sites making decarbonization investments across technology measures and means that, regardless of the availability of scrap metal or production technology route, producers can be incentivised to reduce emissions through ever higher levels of recognition.

Equitable. Furthermore, the sliding scale ensures that the standard is globally comparable and non-discriminatory. Steel is produced – and needed – across the world and yet the availability of scrap is geographically uneven. Countries with longer histories of large scale steel production and so greater existing stocks of steel – in cars, buildings, ships – have greater opportunities to recycle steel and therefore produce steel from scrap. In practice, this means that countries that today have growing steel demand – which historically has been closely linked to social and economic development – face the greatest obstacles to meeting demand with steel from scrap. While scrap is an internationally traded commodity, it is increasingly seen as a strategic resource and can be subject to export restrictions.

For further information on the rationale for a ‘sliding scale’ approach, see the article ‘Achieving Net Zero in the Steel Sector’ in Chatham House’s Sustainability Accelerator, and the IEA’s (2022) recent report to the G7.

A vital piece of the puzzle

Sustainable development focused. The ‘sliding scale’ is not a silver bullet. ResponsibleSteel’s strategic mission is to drive the production of net zero steel globally that is both environmentally and socially responsible. The ResponsibleSteel International Standard Version 2.0 requires steelmaking sites to operate responsibly across 13 principles that incorporate the full spectrum of environmental, social, and governance issues relevant to the steel sector. The Standard was developed by ResponsibleSteel and its multi-stakeholder membership aiming to follow ISEAL Codes of Good Practice.  Certification against the Standard is backed by a robust assurance programme. To date, steelmaking sites across five continents representing over 100 million tonnes of production capacity and over 157,000 workers have been site certified.

Complementary. An effective ‘sliding scale’ complements rather than replaces other measures and performance requirements on decarbonisation and greenhouse gas emissions. The ResponsibleSteel International Standard V2.0 takes a multifaceted approach to climate change and greenhouse gas emissions. Alongside variable performance thresholds and among other requirements, it mandates both science-based targets at the corporate level (with strategies and plans at the site level) and, at higher levels of certification, it requires product carbon footprints for steel sold from a site. Net zero targets drive and reward forward planning, and science-based targets ensure the early investments required to deliver GHG emissions reductions within 5-10 years. Data on product carbon footprints can be used by customers to measure emissions in their supply chain and reduce emissions on a company, project and product level, while the ‘sliding scale’ ensures those products are contributing to global climate goals. It can also complement minimum scrap thresholds for products and measures to maximise material efficiency, the reuse, and the recycling of steel.

Scrap-variable thresholds have been included in ResponsibleSteel’s climate change and GHG emissions approach to ensure that the Standard is comparable, enabling apples for apples consideration of steel production globally, stable but adaptive, technology agnostic, equitable, sustainable development focused, and complementary to other measures and performance requirements. These principles, among many others, are vital to setting effective and common definitions. The ‘sliding scale’ enables policy makers, steel buyers, and financiers to match ambition with real, physical decarbonisation of the steel industry – globally. It should be used as a key measure of GHG emissions performance for steelmaking.

December 9, 2022
2022
Editorial
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November 2022 Newsletter

Please view our November 2022 newsletter by clicking the link below:

Click here.

November 30, 2022
2022
Newsletter
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Shaping the future of responsible steel

We are at a critical juncture in the steel industry. We have the opportunity to create real, long-lasting change for both people and the planet.

ResponsibleSteel is working to drive the creation of a net zero industry with sustainability at its core. We are a community with members from across the steel value chain and civil society. And we are proud to have around 13% of the global steel industry in membership and certified sites on 5 continents covering the production of over 100 million tonnes of steel.

It’s time to build momentum and work together to shape the future of the industry.

November 14, 2022
2022
News
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