GHG Emissions Intensity Performance Thresholds for Crude Steel

The webinar recording is split into two sections: in the first Matthew Wenban-Smith (Policy & Standards Director at ResponsibleSteel) presents the ResponsibleSteel GHG emissions performance threshold from the CRU data. In the second Paul Butterworth, Head of Steel Analysis, presents the technical data behind the proposed approach. An edited version of the webinar slides is available for download from the link.

Steel production, and by extent the whole steel value chain, is facing intense scrutiny from policy makers and the public alike as protecting the environment and climate change rise on the global political agenda. Mainstream media is awash with articles showcasing new low carbon steel technology or so-called “green” steel.  But there is no agreement about what the concept of “green steel” refers to.  With this emerging new ‘label’ comes the risk of a backlash against unconsidered ‘green’ claims.

We have analysed this fast-moving space and the implications for the steel sector as well as the work of ResponsibleSteel itself. There are some key points that we believe should be considered:

Words matter. We think it is critically important that the term “green steel” should not address GHG emissions alone. We cannot be silent on the wide range of social, safety and environmental issues which are important to steel companies’ investors, customers and other stakeholders. Safety comes high on the list of concerns, as does the impact of mining where issues such as tailings dams, relations with Indigenous Peoples and local communities, human rights concerns and impacts on water and Protected Areas also come to mind. We would strongly advocate that any entity offering “green steel” would have to show how it addresses the range of social and environmental concerns and not only GHG emissions.

This means there is a clear choice – either not to use the term ‘green’, and to use instead a term specific to GHG emissions. Or, to address the other key issues that justify the use of the broader term.  There are arguments for either of these options.  For ResponsibleSteel, our decision is clear.  Our mission is to maximise steel’s contribution to a sustainable society, and we believe that the range of issues must be addressed together, through an integrated approach.  Steelmakers that want to demonstrate social and environmental responsibility need to show how they are responding to the challenges of climate change, but also to show how they are addressing other key social and environmental challenges facing the industry.

We do not believe this broader approach stands in the way of successfully responding to climate change.  In fact, quite the opposite.  The reduction of GHG emissions and the challenges of addressing other ESG impacts are not susceptible to quick fixes.  Steelmakers, steel users and their suppliers need the long-term support of a broad range of stakeholders – including civil society organisations, investors and governments – on this journey.  The support will be that much stronger for companies that address the range of issues, and weaker for those that focus on just one issue at the expense of others.

ResponsibleSteel strongly supports organisations in taking a broad approach to the issue of ‘green steel’ – embracing the need not only to address climate change, but also to address other issues including biodiveristy and worker’s rights.  Three years ago there would have been an argument that the need to develop standards that address the steel sector’s GHG emissions is too complex, and too urgent, to be delayed by consideration of other ‘green’ issues.  Today, however, this is not the case.  The ResponsibleSteel Standard already exists and is applicable to steelmaking sites, with further requirements to allow for the certification of steel products nearing completion.  ResponsibleSteel’s membership includes steelmakers producing 170 million tonnes of steel per year such as Tata Steel, ArcelorMittal, voestalpine and Hyundai, major mining companies such as Anglo American, BHP and Teck, downstream users such as BMW, Daimler and Lendlease, as well as social and environmental organisations such as CDP, The Climate Group, the Clean Air Task Force, IndustriALL, IUCN, and Mighty Earth.  It is challenging to develop a standard for ‘green steel’ that commands multi-stakeholder support – we encourage organisations working on sustainability issues and steel not to duplicate this work, but rather to seek ways to build on the work that has already been done.

In relation to standards for ‘green steel’, we urge all organisations, businesses and governments, in the first instance, to consider how existing standards and methodologies, such as those of ResponsibleSteel, could be used in the context of steel procurement targets and specifications, including public procurement specifications, rather than through the development of new standards, definitions and methodologies: we believe this approach would be a faster as well as a more effective approach to create demand and to support the transition to net zero.

We welcome any feedback on this article and propose holding a webinar for ResponsibleSteel members and interested stakeholders to further discuss these issues later this year.

The ArcelorMittal site in Eisenhüttenstadt, Germany, is currently undergoing an audit to achieve ResponsibleSteel certification. The site develops and produces hot metal, semi-finished products, hot and cold rolled strips and coated coils and sheets.

Stakeholders may announce their interest in being interviewed by the auditors on the ESG performance of the site via this page, where they can also find further information on the ResponsibleSteel audit process.

Due to the Corona virus pandemic, the on-site visit to the site including interviews with site workers will take place at a later stage.

The next ResponsibleSteel auditor training will take place from 03 to 06 May 2021. It will take place online from 09:00 CET to 13:00 CET each day.

Participation in a training is one of the prerequisites for becoming a ResponsibleSteel-approved auditor. Only auditors that are affiliated with a certification body who is an Associate Member of ResponsibleSteel and has been approved by ResponsibleSteel may carry out audits against the ResponsibleSteel Standard.

Auditors who want to register for this online training should:

• Review the auditor approval and qualification requirements in the ResponsibleSteel Assurance Manual to see if they meet our requirements (1.5 and Annex 3)
• Complete the auditor application form in the Annex of the Assurance Manual (Annex 2)
• Send the completed application form, a full and up to date CV and all the mentioned documentation to mbammert (at) responsiblesteel.org by 15 April

Prior to the training, participants must have studied the ResponsibleSteel Standard and Assurance Manual.

The training participation fee is 300 USD per auditor. All the documentation listed above can be accessed here.

Note that our trainings are also open to employees of steel companies who are ResponsibleSteel members. Steel company participation is covered by their ResponsibleSteel membership fee. No documentation is needed, but steel company representatives have to confirm their participation to ResponsibleSteel by email.

CSR Europe, on the behalf of Drive Sustainability, has joined ResponsibleSteel as Associate Member.

CSR Europe is the leading European business network for Corporate Sustainability and Responsibility and facilitator of Drive Sustainability, the partnership of 11 leading automotive companies. Together, they have the vision to lead the shift towards a more circular and sustainable automotive value chain by leveraging a common voice and engage with suppliers, stakeholders, and other sectors. As steel is one of the most relevant materials for the products in the automotive sector, joining forces with Responsible Steel represents a milestone in Drive Sustainability’s approach.

“Drive Sustainability, representing some of the major global car producers with a collaborative agenda towards a circular and sustainable automotive supply chain will be a great asset in helping ResponsibleSteel and our members to develop applicable approaches and tools” said Ali Lucas, Executive Director of ResponsibleSteel.  “We are delighted to welcome CSR Europe as an Associate member and benefiting from their insight and experience”, continued Ali Lucas.

Stefan Crets, Executive Director at CSR Europe, said: “Steel plays a very important role when it comes to reducing carbon emissions in the supply chain or striving towards circular production and sustainable business models. ResponsibleSteel, as a standard and certification initiative has an important role to play within this context. A sustainable steel supply chain is crucial for the companies involved in Drive Sustainability, as it contributes to reach the strategic ambitions of the partnership from a social and environmental perspective. CSR Europe is looking forward working with ResponsibleSteel to help the ecosystem of the steel supply chain, especially producers and their upstream supply network, to move towards more responsibly sourced and produced steel.”

ABOUT CSR EUROPE

CSR Europe is the leading European business network for Corporate Sustainability and Responsibility. With our corporate members, National Partner Organisations (NPOs), and Associated Partners, we unite, inspire & support over 10,000 enterprises at local, European, and global level. We support businesses & industry sectors in their transformation and collaboration towards practical solutions and sustainable growth. We are for systemic change. Following the SDGs, we want to co-build with the European leaders and stakeholders an overarching strategy for a Sustainable Europe 2030.

PeoplePlanetProfit (PPP) is a small company from Germany providing consulting services and software solutions to clients worldwide. PPP has specialized in all areas of sustainability. The principles of sustainability are the foundations of what this concept represents. Therefore, sustainability is made up of three pillars: economy, society, and the environment. These principles are also informally used as profit, people and planet, hence the name of the company.

PPP offers services in the areas of environment, energy, CSR, CCF, LCA, but also compliance. All services are supplemented by innovative cloud systems, which PPP develops exclusively itself. For example, PPP offers a BI system for all CSR key figures. IT security comes first, which is also important for the customers.

PPP has now carried out several projects in the Aluminum sector related to Aluminium Stewardship Initiative (ASI) and employs two people who are Registered Specialists since 2017.

A holistic approach (environment, social and governance) is important to PPP, but PPP has a keen eye on details, too. A long-term and successful cooperation with our customers has top priority.

Patrick Wortner, CEO of PeoplePlanetProfit said: “At PPP, we believe that progress is always possible and in people who pursue it in a responsible way. We support changemakers – people and companies that ignite, lead and advocate for a sustainable change in the world. We are therefore looking forward to a successful cooperation as a member of ResponsibleSteel.”

“ResponsibleSteel warmly welcomes PeoplePlanetProfit as an Associate member.” Said Ali Lucas, Executive Director – ResponsibleSteel. “The whole digital arena for the industry is one of critical importance, and it is hugely exciting to have an organisation as part of our membership who has such a wealth of relevant knowledge and expertise in this area.”

SRI Quality System Registrar, an international assessment body headquartered in Pittsburgh, PA, with services accredited by ANAB, RvA, IATF, AA1000, GBCI and IWBI, assesses and assists in conformance to quality, environmental, health and safety, social responsibility, information security, green building rating systems, and other international standards.

SRI was founded in 1991 as Steel Related Industries Quality System Registrar, a part of the Steel Industry Supplier Audit Program (SISAP). SRI quickly became an industry leader and one of the world’s largest registrars to metals and materials companies. Over the last 30 years, SRI participated in writing standards and introduced the value of third-party assurance to many industries. SRI’s roots remain in quality and sustainability within the steel industry.

Steel companies are major suppliers to, and customers of, other leading industrial sectors. As a committed member of the global supply chain, SRI offers metal and materials clients the assessment services they need to improve, compete, and succeed responsibly in the marketplace today. This includes a dedicated sustainability practice focusing on CSR/ESG performance.

“Part of SRI’s own evolution has been to update its sustainability goals to better reflect the business market of today and the future. Working to achieve goals such as Net-Zero by 2030 and joining ResponsibleSteel, allows SRI to learn, share, and help advance sustainability in the steel industry and beyond,” remarks SRI President, Christopher Lake. “We hope to contribute by lending three decades of sustainability and assessment expertise in our collaboration with ResponsibleSteel and stakeholders from every part of the steel supply chain, as we all work towards advancing steel’s contribution to a sustainable society.”

“ResponsibleSteel is excited to welcome SRI as an Associate member.” said Ali Lucas, Executive Director – ResponsibleSteel. “SRI’s deep knowledge and expertise in the field of international standards will be a powerful addition to many of the projects and programmes that ResponsibleSteel is currently developing and working on, and we are really looking forward to sharing ideas, knowledge and experience over the coming months and years.”

Bioregional has been a leader in driving the transition towards more sustainable homes and communities, businesses and lifestyles for over 25 years.  This is put into practice through the One Planet Living framework, which was created from experiences of planning and working with partners to develop the multi-award-winning BedZED, the UK’s first large-scale eco-village in South London.

High sustainability standards in materials has been embedded in Bioregional’s wide portfolio of projects.  BedZED’s construction made use of a range of locally sourced and recycled materials.  Bioregional also co-wrote the sustainability strategy for the London 2012 Olympics, which saw ambitious targets met for recycling and re-use of demolition materials, and extensive repurposing of steel structures.

As a long-time partner of Kingfisher, Europe’s largest home improvement retailer, Bioregional has provided consultancy and action plans to help Kingfisher improve the sustainability of its range of products and materials.  This has been through setting standards across the product range, as part of Kingfisher’s Sustainable Home Products guidelines, as well as more concentrated efforts in areas such as cement and compost. In 2020, Bioregional was appointed by the UN Environment Program to develop a supplement on sustainable building materials, as part of its Eco-Innovation toolkit for SMEs. Bioregional aims to draw on these experiences of assessing impacts of building materials, helping to develop alternatives, and engaging the supply chain as a Civil Society member of Responsible Steel.

Stewart Muir, Sustainable Products Project Manager said: “We are delighted to have the opportunity to contribute to the efforts of Responsible Steel in setting improved sustainability standards for steel.  We see this as a valuable platform for encouraging real action by our partners and clients to drive forward decarbonisation of steel and help address a range of sustainability challenges, as well as tackling the climate emergency.”

“We are absolutely delighted to welcome Bioregional as a civil society member. “ said Ali Lucas, Executive Director, ResponsibleSteel. “ Bioregional has a long and impressive track record in working across many projects, issues and sectors in the sustainability field, and I know that ResponsibleSteel, and our other members will benefit greatly from their deep knowledge and expertise.”

2020 marks a year of growth for ResponsibleSteel

At the end of 2020 ResponsibleSteel Members came together virtually to celebrate the immense growth and progress the organisation has made in the last year.

Despite an uncertain year our membership has grown by 30%. Since June we have welcomed 13 new members: Tata Steel, Cobalt Institute, Hyundai Steel, Bilecik demir çelik, Bio Regional, ERM, Grimshaw Global, Hatch UK, People Planet Profit UG, Russian Green Building Council, SRI Quality Systems, The Australian Supply Chain Sustainability School and The Energy and Resources Institute (TERI).

Excitingly, membership continues to strengthen globally – with new members from Asia, Australia, the Americas, and Europe.

Since June, ResponsibleSteel’s small team has been committed to delivering our core business of Standards, Assurance and Oversight for our Certification Programme. In 2020 we held our first audits against the ResponsibleSteel Standard and we have approved four certification bodies. Alongside this we have approved 20 auditors and held training for a similar number.

During our Members Meeting, we were delighted to be joined by Mr T.V. Narendran, Managing Director of Tata Steel. In a keynote speech, Mr Narendran gave an excellent and passionate overview of how steel industry and Tata Steel are engaging in the sustainable steel debate.

Mr Narendran commented, “I think it’s increasingly important for this industry to keep engaging with stakeholders, not only in the value chain but also outside of the value chain.”

He went on to say, “We, as an industry, need to reach out to many stakeholders. Which is where a multi-stakeholder platform like ResponsibleSteel plays a role and I expect for this reason we will be able to have a more objective discussion. Tata Steel felt like ResponsibleSteel is a good platform for us to be part of as we are constantly looking to improve the way we work and to be more responsible.”

Watch Mr Narendran’s speech here

After his remarks Gerry Tidd, Responsible Steel’s co-chair for business unofficially awarded Mr Narendran quote of the day: “If complexity excites you, this is the industry to be in.”

An even bigger year on the horizon

In 2021, ResponsibleSteel will build on these great foundations as we scale up operations. In March we will welcome our first CEO Anne-Claire Howard to help us drive the organisation forward into our next stage of growth.

Alongside this we will scale up our proactive membership drive focusing on steelmakers, producers and civil society. We will be deliberate about raising our profile via external communications and stakeholder engagement.

New projects

Internally, our team are focused on the delivery of new projects to expand our offering. One of the most exciting projects on the horizon is SteelZero; launched in early December in partnership with The Climate Group, SteelZero is a global initiative to bring together leading organisations to speed up the transition to a net zero steel industry.

Companies who join SteelZero make a public commitment to transition to 100% Net Zero Steel by 2050 at the latest. Collectively members show a demand signal to steel makers and producers in the move towards producing responsible zero carbon steel.

Watch the SteelZero video here

Next year we will be working with the Climate Group to grow the membership of SteelZero and build working groups from multiple sectors to demonstrate the wide market demand. We would love as many RsponsibleSteel members to join us as possible.

The Secretariat team and the Board at ResponsibleSteel thank our members for their commitment, engagement and support during a challenging year. We are now gearing up for another exciting year of growth and collaboration and look forward to working with members new and old.

From everyone here at ResponsibleSteel, have a great holiday period and we look forward to seeing you all next year!

We are delighted to announce that our fourth audit firm DNV GL has recently joined AFNOR Certification, ERM CVS and GUTcert as an approved certification body.

“We are delighted to be recognised as a key partner in the journey towards a more responsible steel industry by becoming approved by ResponsibleSteel™ to certify steel makers globally. As a purpose driven organisation, deeply committed to SDG 13 climate action, we are proud to contribute to reducing the climate impacts of one of the world’s most fundamental industries,” says Paul McNellis, Head of Assessment and Advisory in DNV GL-Business Assurance.

While Alison Lucas, Executive Director of ResponsibleSteel says “DNV GL was one of the first organisations to join ResponsibleSteel™ as an associate member and has provided much needed technical support to ResponsibleSteel™ during our early set-up phase. We are very pleased that they remain committed to our Vision and Mission and have now become approved as a ResponsibleSteel™ certification body”.

With our first audits due to be completed within the next 6 months and an uptick in membership in 2020, there will be a need for organisations such as DNV GL to help ResponsibleSteel meet its goals. To find out more about their ResponsibleSteel business offerings please click here.

Only auditors that are affiliated with a certification body who is an Associate Member of ResponsibleSteel and has been approved by ResponsibleSteel may carry out audits against the ResponsibleSteel Standard.

If you would like to know more about how your organisation can join our four current certification bodies please get in contact with us.

Steel producer Hyundai Steel has joined ResponsibleSteel as its newest Business Member, based in South Korea Hyundai Steel is a major player in the steel industry.

“ResponsibleSteel is delighted to welcome Hyundai Steel into membership. Having such a major international business join us from the steel making sector is a huge step forward towards us strengthening our depth and global reach within our membership. We very much look forward to working with Hyundai Steel as they work towards their aim to become a ‘sustainable steel company’ said Ali Lucas, Executive Director – ResponsibleSteel.

“Hyundai Steel is the first Korean company to join ResponsibleSteel and actively respond to ESG issues by establishing a network with global advanced companies,” a company spokesman said.

Hyundai Steel is expected to establish a leading position in terms of strengthening its own ESG management while securing confidence in the ESG field from the market and society through joining. The spokesman added, “As ESG plays an important role in the business environment, it is time to internalize ESG’s requirements through a mid- to long-term sustainable management strategy.”

Green Building Council Russia (GBC Russia) was formed at the end of 2008, followed by a founding event which resulted in the official registration of the Council as an independent non-government and non-profit partnership.  It’s first members joined at the end of 2009.

The founding members of the organization set out with the following goals in mind:

• To promote the awareness for Green building within the community of professionals in the industry, as well as in adjacent economic sectors and among the public.
• To act as a catalyst in the transformation of the Russian construction sector towards sustainable development and circularity.
• Development of the Russian Green Building standard.

GBC Russia has since been accepted as a first stage member of the World Green Building Council. In 2020 GBC Russia is aiming to intensify its collaboration with the World GBC and become a worthy addition to the network of professionals for the benefit of the shared common cause – to transform the building and construction sector.

The Council has successfully brought together companies, organisations and individuals from Russia’s vast construction-related industries on the basis of a voluntary association of its members. Since its foundation, GBC Russia has received over 500 applications for membership both domestic and international. It is an established and well-recognized brand in the field of green building and sustainable development in Russia and abroad.

Members of the GBC Russia include companies from all parts of the construction supply chain, including architects, building services engineers, facility managers, civil engineers, university professors and academia, green investors, developers, contractors, sustainability consultants and auditors, construction materials manufacturers, product and service providers, suppliers, legal professionals, green community influencers, industrial journalists, non-profit institutions and government bodies.

“At GBC Russia, we feel that joining efforts with organizations that share the same values and whose goals are in alignment with ours is the key to bringing much needed change. The decision to join ResponsibleSteel supports our founding principles and will, no doubt, benefit both our organizations, as Russia is a country with several of the largest metal manufacturers in the world and has a vast market for steel and metal alloys. We are happy to become a part of the initiative! We salute our partners and look forward to doing great things together in years to come!” said Andrey Mokhov – the Chair of the Board.

“We are really delighted to warmly welcome Green Building Council Russia as an Associate member.” said Ali Lucas, Executive Director ResponsibleSteel. “We recognize the huge reputation that the World Green Building Council has globally, and having the Russian office as a member will be hugely beneficial in helping us, and our existing members learn more about the steel industry, and how that relates to the construction sector in that part of the world. We look forward to working together in the coming months.”