A landmark year for ResponsibleSteel: Reflections from our CEO
Dear Members, Partners and Friends,
Just under a decade ago, ResponsibleSteel began with a bold vision: to unite the steel industry around a shared commitment to sustainability. As we stand on the threshold of our tenth year, that vision matters more than ever.
You, our members, have championed ResponsibleSteel and its evolution over the years, and driven real progress across the steel industry. I thank you for your continued commitment, even amid complex global challenges.
Mounting pressure to stay competitive while delivering on climate commitments underscores why credible, coherent standards and collaboration across the steel value chain must remain a priority. They are essential to ensure that policy, finance and demand side dynamics shape the future of the industry in a fair and effective way.
Leading the way: Thought leadership and interoperability
This year, ResponsibleSteel took a decisive step forward in shaping the future of low-emission steel. Our leading work on interoperability moved from concept to reality, sending powerful signals to governments, markets, civil society, and investors that global alignment on steel decarbonisation is not only possible, but already underway.
At COP30, we announced landmark agreements with the China Iron and Steel Association (CISA) and the Low Emission Steel Standard (LESS), to develop conversion tools for stakeholders to claim equivalency of their decarbonisation progress under the different schemes. Together, membership of the three organisations represents around 60% of the world’s steel production.
These agreements show that pragmatic, plurilateral solutions can deliver real progress, even when global consensus is challenging. By enabling comparability across standards, these agreements provide a foundation for trade, procurement and investment in cleaner steel. It has clearly bolstered stakeholders’ resolve to build further solutions for the transition to low-emission steel.
In a further significant announcement in December, ResponsibleSteel worked with CARES, CISA, GSCC, LESS, RMI and Worldsteel to jointly commit to the Steel Standards Principles (SSPs) Transparency Criteria for GHG reporting. These criteria outline the key measurement rules behind any carbon intensity disclosure, and their disclosure will enable stakeholders to understand the data they are given and drive standards initiatives closer to achieving clarity, transparency and interoperability. These milestones towards comparable, transparent emissions reporting build on the technical groundwork we have laid, including the publication of our Fundamentals for GHG Emissions Accounting and Classification and verified greenhouse gas (GHG) emissions data from ResponsibleSteel Certified Sites.
They represent important steps towards transparent and consistent emissions accounting and data disclosure across the steel industry and mark a real turning point in how standards can support action at scale.
Policy: Engaging government and policymakers to support the transition
Policy is undeniably one of the most powerful levers for driving sustainability, which is why policy engagement has been another cornerstone of our work in 2025.
We began by publishing The Steel Decarbonisation Scale, a joint policy briefing with LESS, urging European policymakers to adopt a realistic approach to steel decarbonisation - recognising scrap supply limits and incentivising genuine emissions reductions across all production routes.
We convened stakeholders in Brussels and Delhi to explore how standards can inform policy mechanisms such as lead market labels, carbon pricing schemes, including cross-border mechanisms, green procurement frameworks and national decarbonisation pathways. I want to thank all our contributors; your insights will shape our global policy paper, which will be published in early 2026.
Progress on our programmes: Standards, certification and member impact
Despite setbacks to wider industry progress, ResponsibleSteel has strengthened its role as the leading global standard for responsible steelmaking. Our Standard Revision process is well underway, ensuring the ResponsibleSteel International Production Standard remains effective, relevant and fit for purpose. Alongside this, our Just Transition project continues to explore how standards can support a fair and inclusive shift to low-emission practices across steel and mining.
Certification remains at the heart of our mission, allowing steelmakers to demonstrate measurable progress across key social and environmental issues. In 2025, major certification milestones included thyssenkrupp Steel’s Duisburg site, the largest in Europe, and EMSTEEL, the first site in the MENA region, bringing the total to 90 Core Site Certifications covering 142.436 Mtpa capacity.
Certifications and recertifications this year spanned eight countries and five regions: Europe, South America, Oceania, Asia and the Middle East. Over 80% of sites due for renewal chose to recertify, with additional recertifications already underway for next year. These certifications prove that, even in a complex global environment, organisations continue to step up in order to build a more responsible steel value chain.
Another compelling example of the practical progress certified steelmakers are making is our case study with SIJ Group, whose SIJ Acroni and SIJ Metal Ravne sites achieved ResponsibleSteel Core Site Certification in 2024. SIJ outlines why they undertook certification and how it has enhanced their credibility within the market and laid the foundation for continuous improvement across their operations.
Finance and demand: Driving investment and the right market signals
The key to the success of any certification scheme is the value it delivers to the certificate holder. Our Certified Steel Campaign helped demonstrate the credibility of ResponsibleSteel certification to investors and customer networks, showing how it can support procurement and investment decisions, mitigate supply chain risk, and strengthen their market position. By engaging finance, automotive, construction, infrastructure, and beyond, we worked to drive stronger market signals for Certified Steel and showcase the progress certified steelmakers are making towards responsible, near-zero steel.
We have convened lenders and investors both in New York in May and via our online Finance Working Group, bringing together finance sector representatives with steelmakers and civil society to explore how certification can inform investment decisions and be seen as an indicator of risk readiness.
With steel company testimonies, these sessions highlighted the benefits of ResponsibleSteel certification and prompted discussion of how credible standards can mobilise capital toward low-emission steel.
Moving forward: Accelerating the responsible steel transition
The urgency of our mission cannot be overstated. Scientists now expect the world to reach 1.5°C warming by 2030, not 2050. There is growing recognition that credible, transparent, comparable standards must sit at the heart of policy, finance and demand mechanisms if we are to deliver real progress on climate and social issues affecting workers and their communities.
ResponsibleSteel will continue to lead this work, but success depends on all of you, steelmakers, buyers, material suppliers, civil society, investors, and policymakers, working together to urge and support steelmakers to use the ResponsibleSteel system as their reference.
In the upcoming year, we will revise our strategy and focus on our Value Activation Plan, including revisions to our Claims guidance to enable greater market access for those actively driving responsible, low-emission practices. Our goal is to ensure that you, our members and supporters, clearly see the value of your continued commitment to ResponsibleSteel and the tangible impacts we are having across the sector.
Thank you once again for your contribution and dedication throughout this year.
With best wishes for the year ahead,
Annie Heaton
CEO, ResponsibleSteel
Shaping India’s steel transition: Reflections from ResponsibleSteel’s Policy Convening in Delhi
As India’s steel industry navigates the twin imperatives of growth and sustainability, ResponsibleSteel hosted a policy convening in Delhi earlier this year to explore pathways for steel decarbonisation in India.
Held under the theme “Decarbonisation of India’s steel sector: Dynamics of the energy transition and the role of standards,” the event brought together leaders from government, industry, and civil society to discuss how credible standards, collaboration, and innovation can accelerate India’s transition to low-emission steel. Participants included Tata Steel, JSW Steel, Tata Motors, the Indian Steel Association, WWF, Climate Group, and the Council on Energy, Environment and Water, as well as representatives from the Hydrogen Mission India, the Ministry of Cooperation and the Ministry of New and Renewable Energy.
The convening was opened by the Hon’ble Minister of State for New and Renewable Energy (MNRE), Shri Shripad Yesso Naik, whose keynote address framed the energy transition as both an environmental necessity and a moral responsibility. Reaffirming India’s commitment to achieving net-zero emissions by 2070, he described the transition as “a gift we must leave behind—a legacy of ethical industry.”
He encouraged India’s industry to lead through innovation, highlighting green hydrogen as the cornerstone of the transformation and urging investment in carbon capture, smart furnaces, and Direct Reduced Iron (DRI).
Industry perspectives: Progress and challenges
Senior industry leaders shared insights on their progress, highlighting several areas of development:
- Hydrogen-based pilots are underway with positive results, marking a shift in the future of steel production in India.
- There is increasing integration of renewable energy into steel operations, particularly solar and wind, enabling greater energy autonomy.
- A growing focus on circularity and scrap-based production is emerging to reduce lifecycle emissions.
At the same time, industry participants acknowledged significant barriers to the transition, above all, the high cost of green hydrogen, limited access to clean energy, land availability and grid challenges, and gaps in hydrogen infrastructure.
Policy, incentives, and the role of standards
Discussions also touched upon a clear, globally aligned national framework to support policy, finance, and trade. Shivakumar K., ResponsibleSteel’s Director of Development and Innovation, emphasised the role standards can play as strategic tools that build trust, guide policy and investment, and support industry transformation. By adopting, integrating, or aligning with international standards, national policy frameworks can demonstrate leadership and maintain competitiveness in the global market.
Clear priorities emerged in the discussions, including the need to:
- Ensure interoperability between India’s taxonomy and international standards and policy mechanisms to support trade and global compliance.
- Establish robust certification frameworks to build investor confidence.
- Embed standards within policy narratives linking industry decarbonisation with employment, equity, and regional development.
The convening also discussed policy incentives to accelerate the transition, with representatives from MNRE highlighting ongoing initiatives such as the National Green Hydrogen Mission, which plans to allocate ₹19,744 crore (around $2.2 million) to produce five million tonnes of green hydrogen by 2030.
However, participants stressed that more targeted support is needed, such as tax credits to encourage early adoption of low-carbon technologies.
Toward a responsible, low-emission future
The Delhi convening reaffirmed the growing momentum behind India’s steel transition. It also underscored the essential role of international standards in shaping national policy frameworks and unlocking sustainable finance.
ResponsibleSteel’s engagement with industry stakeholders in India will continue to build on the momentum created in Delhi, laying the groundwork for a responsible, near-zero industry, built on cross-border collaboration.
Learn more about the ResponsibleSteel International Production Standard.
Certification as a catalyst: ResponsibleSteel leads EU dialogue on industrial transformation
Earlier this year, ResponsibleSteel brought together senior representatives from European government institutions, industry, standards bodies, civil society, and finance for a high-level policy roundtable in Brussels to discuss certification as a catalyst for industrial decarbonisation.
Europe is entering a decisive phase of industrial and climate policymaking. With the EU Emissions Trading System (ETS), Carbon Border Adjustment Mechanism (CBAM), and a forthcoming low-carbon steel label, the stakes are high.
The challenge is clear: how can independent, voluntary certification accelerate the transformation of Europe’s steel industry? And just as importantly, how do we ensure these standards work seamlessly with government policies and regulations, aligning climate ambition, safeguarding competitiveness, and building trust across the value chain?
Three key takeaways
Three priorities stood out during the Brussels discussions:
1. Achieving coherence and interoperability
Aligning the EU Emissions Trading System (ETS), Carbon Border Adjustment Mechanism (CBAM), and product labels is critical to avoid policy fragmentation. This ensures that climate performance and market access work hand in hand, rather than pulling in different directions.
2. Building trust through robust assurance and traceability
Strong assurance systems are essential to give businesses and consumers confidence in sustainability data. This helps prevent greenwashing and ensures that claims about low-carbon steel are credible and transparent.
3. Embedding integrity beyond carbon
Europe’s industrial transformation must go further than emissions. It should integrate environmental and social responsibility—from labour rights and biodiversity protection to circularity and resource efficiency—creating a truly sustainable steel sector.
A call for coherence and clarity
The outcome of the discussions was clear. As one participant observed, "Europe doesn't need more bureaucracy—it needs coherence, trust, and credible evidence." This means having a trusted data backbone linking policy instruments rather than multiplying accounting systems. Global certification and assurance frameworks like ResponsibleSteel can provide that backbone, reducing complexity and ensuring comparability across borders.
Recent EU policy developments, such as the expected steel trade defence measure, are prime examples of how trade and climate instruments must evolve coherently. Europe’s policy architecture must be designed to reward verified low-emission steel, ensuring that trade and climate policy pull in the same direction. Certification can serve as the "connective tissue" of industrial policy, translating ambition into verifiable data and helping policymakers and businesses meet the integrity test of Europe's Green Deal.
Going beyond carbon
Another key point made was that Europe must progressively move beyond carbon-only metrics towards integrating environmental and social integrity more broadly. Climate metrics alone aren’t enough. ResponsibleSteel remains the only globally recognised standard that integrates emissions, labour, biodiversity, and governance into one assurance model. A holistic approach ensures Europe’s industrial transition is not just green, but fair.
Certification: Turning intent into impact
"Certification is no longer a technical afterthought—it's what turns climate intent into credible, measurable impact," said ResponsibleSteel CEO Annie Heaton. "The roundtable confirmed that credible, interoperable standards are now essential for Europe’s industrial transition. ResponsibleSteel's agreement with the Brussels-based Low Emission Steel Standard (LESS), announced at COP30, was a major milestone on the road to greater alignment.”
With new trade-defence measures on the horizon, ResponsibleSteel will continue working with policymakers, industry, and civil society to make certification a cornerstone of Europe’s climate-industrial architecture.
Because only when integrity and ambition move together—through coherence, credibility, and verified performance—can Europe’s industrial transition truly succeed.
Public Statement: The EU Label for Steel Should Build on the Sliding Scale Approach
As announced in the Clean Industrial Deal, the European Commission is expected to put forward an EU label for steel on 10 December as part of the Industrial Accelerator Act. This label aims to incentivise and reward investments in the decarbonisation of steel production. To succeed, the EU must establish a clear, credible, and uniform framework that incentivises genuine and additional greenhouse gas (GHG) emission reductions across all production routes while preserving industrial competitiveness. The concept of the ‘Sliding Scale’, also known as ‘Steel Decarbonisation Scale‘, initially proposed by the International Energy Agency (IEA) and adopted by ResponsibleSteel, LESS, and CISA, offers a robust, technology-neutral, and globally inclusive approach which aligns with the WTO TBT Principles. This paper argues for the adoption of the Sliding Scale as the basis for the European Label for Steel, ensuring a fair and effective transition of the steel industry to near-zero emissions steel.
The Sliding Scale: A Fair and Effective Framework for Europe
The Sliding Scale evaluates steel production based on both GHG intensity and the share of scrap used. This dual approach ensures that decarbonisation progress is recognised and rewarded, independently of the production route or scrap input.
By contrast, a purely footprint-based approach fails to guide the industry toward near-zero emissions. Footprint-based specifications are designed to reduce emissions at the product level, but this won’t lead to global GHG reduction if achieved by higher recycled content alone as doing so would simply shift scrap and emissions from one product, project or region to another (see report “The role of scrap in steel decarbonisation” by the Institution of Structural Engineers and the ”Civil Society Response to GSCC Steel Standard” signed by 12 NGOs which outline this in a compelling way). In other words, a footprint-based approach would merely outsource the decarbonisation of primary production to third countries and make the EU steel industry more vulnerable and less resilient.
Why the Sliding Scale Works
The Sliding Scale encourages all producers, primary (ore-based) and secondary (scrap-based), to decarbonise. For secondary producers using the Electric Arc Furnace (EAF) route, it incentivises measures such as increasing the use of green electricity and decarbonising hot-forming processes. These improvements are less capital-intensive than decarbonising ore-based primary steelmaking, allowing EAF producers to achieve better performance classes faster. This is clearly demonstrated by the first certificates awarded under LESS, where secondary steel routes achieved substantially better classifications than primary steel routes, and by the first steel certification by ResponsibleSteel, which was awarded to an EAF facility with 57% scrap inputs.
The EU label should include upstream scope 3 emissions (raw materials) from the start, thereby ensuring that "near-zero steel" is truly decarbonised across the entire value chain. This prevents carbon leakage and ensures that decarbonisation efforts are not undermined by shifting emissions from one part of the value chain to the other.
The Need for Decarbonised Primary Steel in Europe
Europe cannot rely on scrap-based production alone. The availability of high-quality scrap is limited, and this will become even more of an issue as demand rises. When EAF operators cannot source enough high-quality scrap due to qualitative constraints (e.g. the level of trace elements present), they require primary iron inputs (e.g. direct reduced iron). Consequently, the distinction between primary and secondary steel production will be increasingly blurred going forward. The Sliding Scale approach takes this into account by attributing suitable emission thresholds depending on the scrap content.
If Europe fails to decarbonise its primary steel production, it risks increasing its dependency on imports, which are often from regions with higher average emissions, while undermining its own climate commitments.
A European Label for Steel
In order to increase demand for low-emission steel, Europe needs a Steel Label that provides buyers with clear, comparable and actionable information. The Sliding Scale offers the ideal foundation for such a label:
- It incentivises all producers – primary and secondary – to decarbonise.*
- It preserves Europe's industrial competitiveness by ensuring that primary and secondary steel production decarbonise and remain viable in Europe.
- It supports the EU’s and global climate goals by driving real emissions reductions, not just scrap redistribution.
- It provides transparency on both emissions intensity and scrap share, enabling informed purchasing decisions.
International Perspective
The Sliding Scale approach was developed by IEA when proposing low-carbon steel and cement definitions for policies to support decarbonisation. These principles have since been endorsed and further refined by G7 members and the Climate Club, who affirmed the need for globally harmonised, yet flexible, emissions standards to accelerate industrial decarbonisation.
Building on this foundation, the Sliding Scale was adopted by ResponsibleSteel, the Low Emissions Steel Standard (LESS), and the China Iron and Steel Association (CISA), which together represent around 60% of global steel production. These are all part of the Steel Standard Principles-Initiative, which aims to align steel standards and create transparency in the market. ResponsibleSteel is actively working on interoperability and potential equivalency mechanisms with LESS and CISA to enable efficient low emissions steel markets. This enables public and private buyers to make informed, sustainable procurement decisions based on reliable and comparable data.
Demand-Side Measures and Policy Alignment
A Steel Label is only effective if paired with strong demand-side policies. Europe must actively foster lead markets that position low-emission steel as the standard choice for both public and private procurement. This requires aligning climate and industrial policies to drive demand in key sectors, such as construction, infrastructure, defence, and automotive, where steel plays a critical role. By embedding the Sliding Scale into sector-specific regulations, incentives, and public procurement criteria, Europe can create a stable, predictable market for clean steel, ensuring that its industry remains resilient and future-proof in a decarbonised global economy.
Conclusion: A Strategic Path Forward
The Sliding Scale provides a technology-neutral framework for incentivising genuine GHG emission reductions in steel production. LESS and ResponsibleSteel serve as prime examples of its successful implementation - transparent, operational standards that classifies steel based on emissions intensity and scrap share. Both systems account for upstream scope 3 emissions and are working together to ensure interoperability. By incorporating the Sliding Scale approach into the Industrial Accelerator Act and future steel policies, Europe can establish a coherent, equitable, and efficient framework for transitioning to a climate-neutral steel industry. This will accelerate decarbonisation while safeguarding jobs, strengthening industrial resilience, and upholding climate integrity.
*Includes primary producers (<25% scrap), secondary producers (>70% scrap), and producers which aren't currently classified as either (25-70% scrap).
Download the statement here.
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COP29: What has been achieved?
It’s no secret that this year’s COP, dubbed ‘the finance COP’, is leaving many walking away disappointed. COP29 has been plagued by accusations around regression on the agreement to phase out fossil fuels and tensions over closing the financial gap needed for developing countries. The final agreement to supply developing countries with “at least $300 billion” a year is a far cry from the $1.3 trillion goal needed.
So what progress has been achieved? And as we look to COP30, what steps need to be taken to accelerate progress?
The finance question at COP now goes far beyond the requirements under the UNFCCC mechanism for Developed Country Parties to provide and mobilise climate finance for developing countries. Private sources of finance may often be leveraged through government commitments. Whether these can compensate for the slow momentum from developed countries remains a source of great anxiety for developing countries.
More than 500 projects aimed at producing near-zero materials and fuels according to Mission Possible Partnership’s Tracker are awaiting deals for finance across both developed and developing countries. 52 of the announced projects are steel, and only 6 of these have reached a final investment decision.
In Baku, whilst progress on committed finance was disappointing, it felt that collaboration among non-state actor initiatives is beginning to drive a focus on the conditions that will make FIDs in near-zero industry projects possible - carbon pricing mechanisms, the creation of markets and trade in lower emissions steel, and alignment across the standards and carbon accounting mechanisms needed to underpin these.
Financing and technical support for developing countries
The need for technical and financial support for developing economies in this regard is clear. This is after all where the lion’s share of materials demand growth is likely to come, and where the infrastructure for the transition may be most lacking. Here, some headway is already being made.
Earlier this year at the Clean Energy Ministerial in Brazil, the Climate Investment Funds launched a call for expressions of interest for its Industry Decarbonisation investment programme which aims to support low-emission pathways in developing countries for industries such as steel, cement, glass, aluminium and textiles. Up to $1 billion in funding is anticipated to support these projects.
At COP29, one of the biggest wins for heavy industry was the launch of the Climate Club’s Global Matchmaking Platform. First announced last year in Dubai, the Platform is designed to support the heavy industry transition toward net zero. By leveraging international cooperation, the platform aims to match industry players in developing and emerging economies with financers, technology and expertise to create tailored decarbonisation solutions.
Creating market mechanisms
To pave the way for such projects to be viable to mainstream finance, sustainable market policies that provide certainty for long-term investments are urgently needed. In Baku, the momentum on this took a step forward with a letter to governments led by the Industrial Transition Accelerator (ITA) calling on them to create demand for lower emissions materials. The letter was co-signed by over 50 companies and coalitions, including ResponsibleSteel, and a network of more than 700 financial institutions. Importantly, it brought together both private and public sector initiatives, including SteelZero, the First Movers Coalition and the Industrial Deep Decarbonisation Initiative (IDDI).
Some practical tools for policymakers launched in Baku were a welcome addition to the landscape – a Green Demand Policy Playbook from the ITA and with WBCSD, a Green Purchase Toolkit. These provide the start of an innovative school of public policy that is urgently needed to ensure that lower-emissions materials are soon more competitive than their high-emitting relatives.
Driving green public procurement
On the procurement side, pressure is ramping up on governments to make public procurement commitments for lower-emission materials. The IDDI, the First Mover’s Coalition, and the Net Zero Government Initiative all came together to launch a joint statement in Baku calling on governments to increase demand signals through procurement.
The United Nations Industrial Development Organisation (UNIDO) and the IDDI also presented their latest report, "The Scale and Impact of Green Public Procurement of Steel and Cement in Canada, Germany, the UK, and the US." According to the research, implementing policies in line with the IDDI’s Green Public Procurement Pledge Level 3 in these four countries alone could reduce emissions from steel procurement by 81% by 2050. It’s a powerful indication of how governments can leverage their purchasing power to drive industry decarbonisation and help create a market for lower-emission steel.
Underpinning this, IDDI launched its Green Public Procurement Guide series on assessing jurisdictional readiness for procuring low-emission materials, disclosure requirements to support market readiness, and setting commitments, highlighting ResponsibleSteel as a useful framework to meet Pledge Level 3. The Guide offers practical guidance to help governments take actionable steps to incorporate commitments to purchase low-carbon steel and concrete for construction projects into public procurement practices.
Harmonising standards
Finally, as more standards for steel continue to emerge, everyone can agree on the need for harmonisation, or at the very least interoperability, across these different standards to reduce trade friction and facilitate investment. Anything less will only serve as a roadblock to achieving net zero, a sentiment that was frequently shared during discussions in Baku.
The Steel Standards Principles launched in Dubai at COP28 are playing a critical role in driving alignment across definitions for near-zero steel and ensuring interoperability across GHG measurement methodologies. ResponsibleSteel has played an active role over the last 12 months to help establish the foundations for harmonisation and interoperability. Over 60 organisations have now endorsed the Principles and released a statement at COP29 setting the following objectives for 2025:
• Establishing a common boundary for emissions reporting across the steel value chain
• Enhancing data quality and transparency
• Developing common terminology across standards and initiatives
• Increasing stakeholder engagement globally
As part of this work, the World Steel Association has produced a methodology mapping examining similarities and differences in more than 40 criteria across around 80 standards and initiatives, including ResponsibleSteel. This mapping will be a valuable resource for identifying opportunities for harmonisation and improving transparency in the industry, something ResponsibleSteel is committed to doing.
Looking ahead
2025 will mark the 10th Anniversary of the Paris Agreement and COP30 is already shaping up to be the most critical COP since 2015. Accelerating progress on critical issues such as protecting biodiversity and ensuring a just transition will likely have a key role in discussions and there is already pressure on governments to move up their net zero targets.
It’s clear we’re still a long way from where we need to be, within the steel industry and beyond. ResponsibleSteel’s Charting Progress to 1.5°C report concludes that some 8% of the steel industry needs to be produced by near-zero transition projects by 2030 (i.e. reaching our Decarbonisation Progress Level 4). MPP’s Tracker suggests only 6 projects are currently financed. We need to close this gap. We must also avoid relying on these select near-zero projects alone. At least 15% of steel needs to be produced by lower emissions steel plants by 2030 (our Progress Levels 2 and 3) and 100% needs to be where the average of the industry is today (Progress Level 1).
As governments finalise their NDCs for COP30, they need to consider how to send a serious signal to the market that by 2050 only near-zero steel will be acceptable, and devise the mechanisms and the milestones to drive progress towards that goal.
By Savannah Hayes, Communications Manager, ResponsibleSteel
Certification is key to ensuring that steel doesn’t cost the Earth
In today’s unpredictable world, one constant remains: the challenge of climate change. And at its centre sits the energy challenge.
We might think of this as the race to convert our power grids to wind and solar, and ensure our future cities, industries and transport rely on clean energy systems. But equally, the foundations of this transformation lie in the very materials these things will be made from: steel, concrete, glass and aluminium. These are the energy-hungry lions – and steel is among the hungriest. It alone makes up 10% of the world’s energy-based greenhouse gas (GHG) emissions. If steel were a country, it would be the fourth-largest emitting nation.
Which means steel producers and consumers alike are under pressure to decarbonise, at speed and at scale. The International Energy Agency (IEA) calculates that the industry needs to reduce its emissions by 90% across the board if it’s to stay on track for 1.5 degrees.
ResponsibleSteel CEO Annie Heaton and Climate Group CEO Helen Clarkson write for Reuters on how certification against an international standard is key to driving steel industry progress toward net zero. Read the full op-ed here.
What does a just transition look like? Exploring the role of standards in steel and mining to drive a responsible transition
Decarbonisation will radically reshape heavy industries, generating technological, geographical, economic, and social changes. For example, shifting from coal-based processes to green technologies like hydrogen and electrification could have profound financial and logistical implications—increased manufacturing costs, new input materials, stranded assets, production relocation, and more.
Significantly, decarbonisation could also have adverse social impacts such as causing job loss or displacement and weakening the economic viability of affected communities. ResponsibleSteel and the Initiative for Responsible Mining Assurance (IRMA) have launched a joint project to better understand the social impacts of the net-zero transition and how standards can help guide good practice. The project focuses on steel and mining as two examples of hard-to-abate sectors in the metals industry which are deeply connected. This project is possible thanks to a grant from the ISEAL Innovations Fund, which is supported by the Swiss State Secretariat for Economic Affairs SECO.
The project aims to:
1. Identify the role standards can play toward a socially responsible transition.
2. Establish an agreed approach, framework or set of principles to take forward.
The first stage of the project involves in-depth research to answer key questions: What constitutes a just transition? How are the steel and mining sectors already working to ensure a just transition? How are existing standard systems such as ResponsibleSteel working to address issues around a just transition?
The reality of a just transition is complex, taking into consideration different geographies and site levels. This project will harness early examples of successful transitions, looking at where standards have played a valuable role and providing what is likely to be some of the first guidance on tackling this challenge. Given the varying impacts of decarbonisation across regions, IRMA and ResponsibleSteel are uniquely positioned to provide frameworks that apply to these regional contexts.
The project will identify key issues, map how international standards can address them, identify critical gaps, and signpost future work needed to address them. The findings will be tested through engagement with workers, unions, business leaders, and other key stakeholders. Ultimately, the project will identify an agreed approach for the role of standards in advancing a just transition for workers in the steel and mining sectors. The project outcome will be shared with the ISEAL community and broader stakeholders.
If you are interested in participating in the project, please contact our Standards Manager, Haruko Horii.
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ResponsibleSteel recognises the Copper Mark as an input material programme for Progress Levels 1 to 3 of the International Production Standard
The steel sector relies heavily on mined and processed minerals as an input to production processes. To help ensure that steel companies can increasingly source minerals from responsible suppliers, ResponsibleSteel recognises input material programmes that are well placed to credibly verify the ESG performance of suppliers.
The Copper Mark is the leading assurance framework for the responsible production of Copper, Molybdenum, Nickel, and Zinc, with the latter three being important contributors to the steel value chain.
The Copper Mark submitted a self-assessment of their Risk Readiness Assessment (RRA 3.0) in December 2023 for recognition against the ResponsibleSteel International Production Standard. Following a public consultation and additional improvements, the Copper Mark is now a recognised programme for Progress Levels 1, 2 and 3 of Principle 3’s responsible sourcing requirements. It is the fourth programme to achieve recognition by ResponsibleSteel.
Annie Heaton, CEO of ResponsibleSteel commented, “A product’s sustainability goes far beyond the boundary of the site where it is produced. It’s imperative not only that steelmakers are operating responsibly but that they are also able to source input materials responsibly. That means seeking credible verification that the metals and ores they are buying come from mines subject to the same principles as they demonstrate with ResponsibleSteel. Recognising the Copper Mark as the fourth input programme under Principle 3 of our Production Standard will go a long way in supporting steelmakers looking to source zinc, molybdenum and nickel from suppliers complying with rigorous ESG standards, and we’re delighted to welcome them into the ResponsibleSteel ecosystem.”
“We welcome this recognition as it will help buyers of zinc, molybdenum and nickel materials on the journey towards Certified Steel. It marks another step in making the standards and assurance landscape collaborative and supporting continuous improvement across the supply chain”, said Michèle Brülhart, Executive Director at the Copper Mark.
Find out more about the Copper Mark here or learn more about ResponsibleSteel’s recognition process here.
October 2024 Newsletter
It's been another busy month for ResponsibleSteel! The consultation on the Production Standard is still open - and we really encourage anyone who has any feedback on this important document to take part. Our latest opinion piece with Reuters explored the crucial role of credible certification in the steel industry’s journey to responsible net zero. Dr Alli Devlin, our Senior Decarbonisation Advisor, represented us at the ICDA ESG Technical Summit in Brussels, where she shared some valuable insights on decarbonisation.
We are also happy to welcome four new members to ResponsibleSteel representing a diverse set of interests. Looking ahead, we are calling on members to join a working group on our approach to science-based target setting, and will also be working on a membership survey and interviews in the coming weeks.
In this month's newsletter, you will find key updates including:
- Our newest members
- Upcoming trainings
- Opportunities to join the team and get involved in our work
- And more!
Click here to view ResponsibleSteel's October 2024 newsletter.
Updates to the 2025 membership fee structure
ResponsibleSteel recently updated our membership fee structure to allow for a fairer reflection of company size and ensure our administrative costs are covered.
These changes were approved by the ResponsibleSteel Board of Directors in September 2024 and will take effect on January 1st, 2025
Key changes to the 2025 membership fees:
1. Revised fees for smaller members: To cover the administrative costs of collecting our membership fees, we have made revisions to the lower tier fees.
2. Introduction of new revenue tier: The lower end of the current fee structure has a steep jump-up in fees. As a result, we will introduce an additional revenue tier (from $1m to $10m).
3. ‘Non-profit’ category changes to ‘Civil Society’: The ‘Non-profit’ classification will be renamed as ‘Civil Society’ to better reflect our membership categories. Civil society membership will continue to be free of charge.
4. Trade Associations: From 2025, trade associations will be charged fees as per other Associate members, regardless of non-profit status, in keeping with other membership associations in our industry.
Members will see these changes reflected in their 2025 membership invoices that will be issued towards the end of the year. We believe these updates will ensure continued inclusivity while maintaining the financial sustainability of our programme.
View a full breakdown of ResponsibleSteel's 2025 membership fees here.
Public consultation: Review and Revision of the International Production Standard
We are pleased to announce that we are conducting a public consultation for the review and revision of the ResponsibleSteel International Production Standard v2.1. The consultation period is open for 60 days, from 1 October to 8 December 2024.
To ensure that the standard remains effective and relevant to the industry, periodic reviews and revisions are essential. This process is guided by the ResponsibleSteel Standard Development Procedure v3.0 (topic 12.1), which requires a review and revision every 5 years, in alignment with the ISEAL code.
As part of this formal consultation, we engage relevant stakeholders, including ResponsibleSteel Members, approved certification bodies, and ResponsibleSteel certificate holders to assess whether the standard requires revision, and we report the findings to the Board. Additionally, it is mandated that any approved urgent revisions be included in this regular review and revision process.
The standard consists of 13 principles, covering a wide range of sustainability topics, including ESG, GHG, and community-related topics. To guide the review and revision process, we have gathered and reviewed all relevant information and developed a public consultation document proposing the scope of the revisions to the standards.
Please find the public consultation document here.
The public consultation is open to all stakeholders, and we encourage all relevant stakeholders to participate and provide their valuable input!
Accompanying materials
September 2024 Newsletter
This has been an extraordinary month for ResponsibleSteel. Last week we were proud to announce the achievement of the first Certified Steel by U. S. Steel's Big River Steel at Climate Week NYC. This marks a major milestone for the steel industry. With the first Certified Steel on the market, we are now working with our members and stakeholders to support other steelmaking sites to follow suit and take the next step in certification, while also encouraging steel buyers to promote uptake of Certified Steel.
In this month's newsletter, you will find key updates including:
- The first Certified Steel
- Our newest members
- Upcoming events and trainings
- New opportunities to join the board and team
- And more!
Click here to view ResponsibleSteel's September 2024 newsletter.
U. S. Steel earns world’s first ever certification for ResponsibleSteel Certified Steel at Big River Steel
The United States Steel Corporation's Big River Steel, located in Osceola, Arkansas, passed a rigorous set of standards in environmental, social, and governance categories that raise the bar for sustainability across the steel supply chain.
U. S. Steel today announced it is the first steel company in the world to qualify to sell its products as ResponsibleSteel Certified Steel at its Big River facility in Osceola, Arkansas. Big River received the first ResponsibleSteel Site Certification in North America in 2022 and is once again at the forefront of innovation by achieving certification for sustainably sourced and manufactured steel.
ResponsibleSteel is the industry’s leading global multi-stakeholder standards body, enabling certification at the site level - and now for the first time steel certification. By meeting the standard for Certified Steel, U. S. Steel’s Big River facility demonstrates its continued commitment to advancing industry sustainability while delivering profitable solutions for stakeholders and benefits for the planet.
“This is an extraordinary accomplishment,” said U. S. Steel President and CEO David B. Burritt. “The rigorous requirements needed for ResponsibleSteel Certified Steel represent a new gold standard for responsible steel manufacturing on a global scale. This certification gives customers and stakeholders confidence that Big River is on the path to near zero and demonstrates that we are using responsible practices across our supply chain. Being the first steel company in the world to achieve ResponsibleSteel Certified Steel demonstrates our strong resolve to build a more sustainable steel industry in the United States and across the world.”
The ResponsibleSteel International Production Standard incorporates environmental, social and governance requirements across its thirteen Principles, which include over 500 criteria for the responsible sourcing and production of steel. Certified Steel requires both Site Certification and additional conformance with two key components: progress on the responsible sourcing of input materials and site-level decarbonisation. ResponsibleSteel Certified Steel provides steel buyers with a consistent assessment of the site’s material sourcing and decarbonisation progress.
By offering Certified Steel, U. S. Steel is demonstrating leadership in enabling steel producers, and suppliers to assess their sustainability progress through a comprehensive, credible global benchmark. The Production Standard is constructed not only to encourage decarbonisation progress at the site but also to drive responsible sourcing and a rigorous supply chain ESG analysis. It fosters tracking and transparency across the steel supply chain from input materials to the product, ensuring that ESG initiatives are integrated at every stage. With four Progress Levels outlined, companies are guided in improving responsible sourcing and decarbonisation until full supply chain transparency and near zero are achieved. U. S. Steel has achieved certification at Progress Level 1 continuing a steadfast commitment to an integrated approach to sustainability.
“ResponsibleSteel employs a comprehensive approach to its certification standards, and that is evident in the work we do here at Big River Steel,” noted Dan Brown, Senior Vice President of Advanced Technology Steelmaking for U. S. Steel and Chief Operating Officer of Big River Steel Works. “Our transparency around decarbonisation and collaborative approach with our suppliers and community all play a role in what it means to have truly ‘sustainable’ steel products for our customers.”
U. S. Steel’s Big River achieved Certified Steel by demonstrating how sustainability permeates throughout the company’s operations. For example, it is more sustainable to obtain the input materials closest to the facility with a known supply chain source. Iron ore pellets are mined and produced at U. S. Steel’s Minnesota Ore Operations, which serve as raw materials for pig iron production at U. S. Steel’s Gary Works in northwest Indiana, which then becomes a key input in the steelmaking process at U. S. Steel’s Big River.
“ResponsibleSteel congratulates U. S. Steel on this significant accomplishment – the first-of-a-kind across the global industry. This certification demonstrates the company’s strong ongoing commitment to transparency, credibility, and responsibility, as they make progress in their decarbonisation plans. Today this news sends a clear message to the market: progress towards responsible ‘green steel’ is being achieved and can be most credibly benchmarked. For those buyers looking to cut through the confusion of environmental claims, look no further,” remarks Annie Heaton, ResponsibleSteel’s CEO. “We look forward to U. S. Steel’s ongoing progress and leadership in the market for credible sustainable steel products.”
Achieving Certified Steel will ensure customers have responsibly sourced and produced steel right here in the USA. Together with ResponsibleSteel, U. S. Steel is creating a more sustainable industry and future for generations to come.
Additional Information
Measured against the global benchmarking system provided by ResponsibleSteel’s International Production Standard, Big River Steel has achieved Decarbonisation Progress Level 1 and Input Materials Progress Level 1, based on the following independently verified information:
· Embodied GHG emissions of crude steel(requirement 10.4): 1.34t CO2e per tonne crude steel
· % scrap content: 57.3%
· Production volume: 2.4mt
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For more information, please contact:
Savannah Hayes
Communications Manager
shayes@responsiblesteel.org
+44 7588 785909
Click here to view the certificate and public audit summary.
Visit the Climate Group website to watch ResponsibleSteel and U. S. Steel announce the first Certified Steel at Climate Week NYC 2024.
August 2024 Newsletter
As we move toward September, we’re gearing up for an exciting period at ResponsibleSteel. We’re happy to announce our participation in the upcoming India Net-Zero Steel event hosted by SteelZero and later in the month we have a major announcement planned for Climate Week NYC. We hope to see you there. If you’ll be in Mumbai or New York to attend these events and would like to organise a meeting, please get in touch!
In this month's newsletter, you will find key updates including:
- Our newest member
- Upcoming events and webinars
- And more from the team and our partners!
Click here to view ResponsibleSteel's August 2024 newsletter.
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
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
