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Strengthening climate transition planning: Revising the ResponsibleSteel Production Standard

Last year marked a decade since the signing of the Paris Agreement and six years since the launch of the ResponsibleSteel Production Standard. In that time, expectations on climate action have shifted dramatically. Global emissions continue to rise, and the 1.5°C warming threshold is now projected to be breached by 2034. To remain on a 1.5°C pathway, the Intergovernmental Panel on Climate Change (IPCC) indicates that global CO₂ emissions must fall by 45% by 2030 and reach net zero by 2050. Yet progress in the steel sector is lagging. According to the Mission Possible Partnership’s Global Project Tracker, only 9% of the required operational or committed near-zero steelmaking capacity was in place by the end of 2024.

Against a backdrop of rising global emissions and growing awareness of the consequences of inaction, ResponsibleSteel is undertaking a timely and necessary revision of its climate-related requirements, specifically criteria 10.1 (corporate commitment to the Paris Agreement), 10.2 (corporate climate-related financial disclosure), 10.5 (site-level emissions targets and planning), and 10.7.1 (GHG disclosure and reporting).

A collaborative revision process

From October to January, ResponsibleSteel convened five Working Group (WG) and Technical Advisory Group (TAG) meetings, bringing together 23 representatives from 15 member organisations across certification bodies, civil society, steelmakers, and the wider steel value chain.

As a participant from SteelWatch noted during the process, “Having a diverse group of members involved in the revision process of the standard helps to achieve a balance between what steelmakers deem feasible and where the standard needs to set the bar to trigger ambitious action. ResponsibleSteel has done well navigating and drawing on different perspectives, turning them into concrete proposals that can be submitted for the next steps of the revision process.”

Three guiding principles framed these discussions:

  • Ambition: ensuring alignment with global climate goals and science-based pathways
  • Feasibility: recognising real-world constraints, particularly in the near term
  • Simplicity: avoiding unnecessary complexity while improving clarity and accountability

A key theme that emerged was the foundational importance of credible transition plans that move beyond aspiration and, at the same time, are grounded in realistic assumptions about technology readiness, capital investment cycles, and enabling conditions. As noted by SteelWatch, “Aligning corporate- and site-level requirements is essential in ensuring that top-level corporate ambition and targets translate into actual investment decisions today, and subsequent material transformation and emissions reductions on the ground.”

Figure 1: Framework for climate transition plans

Moving beyond outdated decarbonisation roadmaps

Under the current Production Standard, certified sites must demonstrate that they have a decarbonisation roadmap aligned with an existing model. However, the WG and TAG agreed that many of these models have not been updated in recent years and no longer reflect technological, economic, or policy realities. As a result, they risk undermining rather than strengthening transition planning. The revised approach moves away from a prescriptive reliance on external models and instead proposes to introduce an explicit requirement for a climate transition plan at the corporate and site level.

A participant from EMSTEEL, a ResponsibleSteel member and certified site, commented, “Revising the ResponsibleSteel Standard is an important step in strengthening the steel sector’s collective transition journey. The process provides members with a valuable opportunity to contribute practical insights, share operational experience, and help shape a standard that is both ambitious and implementable. ResponsibleSteel has done an excellent job in creating an inclusive and transparent revision process, encouraging constructive dialogue among members and ensuring diverse industry perspectives are reflected in the development of a stronger and more credible framework.”

EMSTEEL’s certified site in the UAE

What’s proposed to change in the Production Standard?

The proposed revisions strengthen and connect key elements of Principle 10, with a clearer and more coherent architecture across corporate and site levels.

Key improvements include:

  • Quantitative, time-bound emissions reduction targets, covering Scope 1 and 2 emissions and material Scope 3 emissions
  • Stronger links between corporate- and site-level planning, ensuring that corporate ambition translates into real investment decisions and on-the-ground transformation
  • Improved intensity-based disclosures to support comparability, directly aligned with ResponsibleSteel’s broader harmonisation work
  • Alignment with leading frameworks, such as IFRS S2 (International Financial Reporting Standards), while retaining flexibility for different regional and operating contexts
  • Clearer guardrails for credibility, moving beyond temperature labels alone

There was strong agreement across the WG that clearer wording and guidance are essential to support consistent interpretation and implementation by sites and auditors alike.

Connecting the dots between the Production Standard’s criteria

One of the most important outcomes of the revision process so far has been a clearer set of connections between criteria that, while related, have not previously been well integrated.

In the current Production Standard:

  • Corporate transition planning (10.1) is weakly connected to climate-related financial disclosures (10.2)
  • Site-level transition planning (10.5) is not sufficiently aligned with corporate-level strategies
  • Public GHG emissions disclosure requirements (10.7.1) are limited, focusing mainly on a site’s medium-term reduction target

The proposed changes aim to address these gaps by:

  • Requiring climate transition plans to include climate-related financial risks and opportunities, including dependencies that may impose structural barriers, planned changes to business models and strategy;
  • Aligning corporate- and site-level planning approaches to reduce carbon leakage risks and ensure consistency across operating boundaries; and
  • Strengthening public disclosure requirements to better support accountability, comparability, and progress tracking over time.
Image courtesy of BlueScope

Flexibility, credibility, and the reality of steelmaking

The WG and TAG discussions also surfaced a shared understanding of the structural barriers currently slowing decarbonisation in the steel industry. These include:

  • Limited technology maturity at scale
  • Supply chain and infrastructure constraints
  • Energy availability and cost
  • Inconsistent or insufficient policy support
  • Weak demand signals for low-emission steel
  • Trade and competitiveness pressures

Given the long investment timelines and asset lifetimes involved, feasibility in the near term is particularly critical. As such, there was strong support for a flexible, disclosure-driven approach that pairs quantitative targets with qualitative indicators of progress, allowing ResponsibleSteel to uphold high ambition and transparency while recognising that steelmakers cannot address systemic barriers alone.

As ResponsibleSteel’s Decarbonisation Analyst, Melav Salih observed, “A robust climate transition plan must embed decarbonisation within broader strategic and financial planning. It needs to recognise that steelmakers’ transition pathways are shaped by long-lived assets, billion-dollar investment decisions, and dependencies on an ecosystem of change that includes energy systems, infrastructure, policy, and markets.”

Looking ahead

As the Paris Agreement enters its second decade, and as legal, financial, and societal expectations on climate accountability intensify, ResponsibleSteel’s role as a credible, independent standard for the steel industry has never been more important.

By strengthening climate transition planning across corporate strategy, site-level action, financial disclosure, and public reporting, revisions to the Production Standard aim to support steelmakers in navigating this transition transparently and at pace.

Together with parallel work on harmonisation and disclosure alignment, the revisions to climate transition planning requirements represent a critical step toward turning climate commitments into credible, comparable, and feasible transition pathways for the global steel industry.

Learn more about the revision of ResponsibleSteel’s International Production Standard here.

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What’s next on just transition? In conversation with ResponsibleSteel’s Director of Programmes, Amy Jackson

As policymakers, businesses, and investors set their sights on rapid industry decarbonisation, less attention has so far been paid to the workers and communities most impacted by the transition.

Last month, ResponsibleSteel released a first-of-its-kind report with the Initiative for Responsible Mining Assurance (IRMA) outlining key principles to support a just transition for the steel and mining sectors. The report follows a year-long project funded by the ISEAL Innovations Fund with support from the Swiss State Secretariat for Economic Affairs.

ResponsibleSteel’s Director of Programmes, Amy Jackson, outlines why it’s vital that industry decarbonisation is not only fast but fair, and how this latest report could influence the ongoing revision of the ResponsibleSteel International Production Standard.

Why does a just transition matter?

Mining and steel are responsible for a significant share of global energy-related emissions, up to 10% from mining and likewise around 10% from steel. So, there’s no question: decarbonising these sectors is absolutely essential to reaching global climate goals. But what’s often overlooked is the human impact of this transition. We know the shift will be profound, but we’re only beginning to understand what it will look like in practice.

If we don’t take deliberate action, the workers and communities most affected by these transitions risk being left behind. Globally, steel employs around six million people, mining around 20 million, and millions more rely on these industries indirectly.

A just transition ensures that the benefits of industrial transformation are shared. This includes opportunities for safer jobs, new skills, economic diversification, and improved access to clean energy infrastructure and other low-emission goods and services. It also means embracing more equitable benefit‑sharing approaches, including co‑ownership and equity models, so that affected communities can participate meaningfully in the value created by the transition.  

What prompted ResponsibleSteel and IRMA to look more closely at just transition issues in steel and mining?

New technologies are opening the door to a cleaner future, but they can also be very disruptive, especially in heavy industries like steel and mining.

Steel production is already beginning to change in some geographies, as blast furnaces close, companies shift toward EAF and DRI technologies, and electric and hydrogen-based routes emerge. These transformations will also require significantly expanded renewable energy capacity and major changes to transport and logistics systems to support new supply chains. Mining is facing changes of a similar scale with the decline of coal and the increasing demand for critical minerals. Together, these developments will reshape the mining and steel supply chains, with major implications for employment patterns and local economies.

There’s growing recognition that heavy industries need to better address human rights, Indigenous rights, and social equity, and to genuinely integrate local knowledge into transition planning and due diligence. Stakeholders are also calling for more inclusive approaches to ensure transitions are fair and collaborative rather than imposed.

This is why ResponsibleSteel and the Initiative for Responsible Mining Assurance (IRMA) partnered on this project - to take a closer look at the social implications of industrial transitions. We wanted to understand the role voluntary sustainability standards can play in helping companies navigate these shifts in a way that is both responsible and inclusive.

What is the Just Transition Framework?

The Just Transition Framework builds on internationally recognised principles from the International Labour Organisation (ILO) and the UN Working Group on Business and Human Rights, as well as extensive inputs from the published literature on this topic and from stakeholders.

We drew on three key dimensions of justice commonly used in academic theory - procedural, distributive, and restorative justice - and began by mapping 16 existing just transition frameworks from international bodies, industry, advocacy groups, and Indigenous peoples.

This provided the basis for a draft framework, which we then tested and refined through extensive stakeholder engagement. We spoke with workers, unions, supply chain actors, companies, governments, civil society, communities, and Indigenous groups, and brought stakeholders together for workshops in Johannesburg and Brussels.

The final Just Transition Framework brings together these insights into nine principles and 50 core elements, along with five recommendations for VSSs, offering a structured but adaptable foundation for embedding just transition concepts into global sustainability schemes.

Were there any other important findings or points from the framework worth highlighting?

One of the clearest findings that emerged from this work is that transitions are highly context‑specific. The social impacts and opportunities associated with them depend heavily on local conditions, from the economic role a mine or steel site plays in a region, to the availability of alternative jobs, to the presence of strong institutions and community organisations. Understanding this is a critical first step, because it means recognising that there is no one‑size‑fits‑all approach.

Another important insight is that while voluntary sustainability standards have an important role to play, they cannot drive a just transition on their own. Nor can it be directed by steelmakers or mining companies alone. A truly just transition requires collaboration with a much wider group of actors, such as local and national governments, financial institutions, workers and trade unions, communities, and Indigenous peoples. The Framework helps clarify where VSSs can contribute most effectively, but it also emphasises that delivering a fair transition is ultimately a shared responsibility, not something any single organisation or sector can dictate or deliver in isolation.

How will the framework impact ResponsibleSteel’s International Production Standard?

Following the production of the Just Transition Framework, we benchmarked it against the ResponsibleSteel International Production Standard to identify where just transition concepts are already well covered and where there may be gaps.

One of the key findings from this exercise and from our discussions with our Just Transition Working Group is that many just transition elements are already embedded in the Standard, even if they aren’t described using that specific terminology. For example, existing requirements around stakeholder engagement, site decommissioning and closure, labour rights and the development of closure plans all support just transition outcomes.

Where the Framework has added value is by providing a structure for the conversation, which enables discussions around the most important elements for inclusion in the standard, and helps to identify where we could make these expectations more explicit about their application to transitions.

What’s next?

As we move forward with the standard revision, our focus is on making more explicit where requirements will support a just transition, in the standard itself or in supporting guidance. For example, strengthening guidance around due diligence, particularly how sites should identify and address just transition‑related risks and impacts, and clarifying what a robust just transition plan should contain. This might cover identified risks, mitigation actions, and support measures such as worker training or reskilling.

The aim isn’t to introduce major new requirements. Instead, the intention is to build on what’s already there, ensuring the Standard continues to evolve in a way that supports a fair, inclusive, and responsible transition across the steel value chain.

Learn more about the latest report.

Learn more about the Standard revision process and find out how to get involved on our Standard revision webpage.

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ArcelorMittal Hamburg achieves ResponsibleSteel Core Site Certification

ArcelorMittal’s Hamburg site has achieved ResponsibleSteel Core Site Certification, marking an important moment for Europe’s only direct reduced iron (DRI) - electric arc furnace (EAF) steelmaking site.

The certification recognises the site’s performance against ResponsibleSteel’s International Production Standard and its commitment to responsible steelmaking across environmental, social and governance issues. It follows a comprehensive, two‑year independent audit process carried out by certification body GUTcert, including on‑site assessments, worker interviews and engagement with external stakeholders. Certification confirms that the Hamburg site meets ResponsibleSteel’s globally recognised requirements, with a strong emphasis on transparency and continuous improvement.

Annie Heaton, CEO of ResponsibleSteel, welcomed the announcement, saying, “We congratulate ArcelorMittal Hamburg on achieving ResponsibleSteel Core Site Certification. As Europe’s only DRI‑EAF steelmaking site, this is an important milestone for the region’s steel industry. As the site works towards its ambition of producing near‑zero steel, this certification demonstrates that decarbonisation is being pursued alongside strong social and environmental practices. We look forward to continuing to support ArcelorMittal Hamburg on its journey towards responsible, lower‑emission steel.”

As Europe’s steel sector accelerates efforts to decarbonise, ResponsibleSteel’s Production Standard provides a robust framework that goes beyond greenhouse gas emissions to address workers’ rights, occupational health and safety, community impacts, pollution, biodiversity, and water stewardship.

ResponsibleSteel's Head of Membership and Communications, Joe Woodruff, was on the ground to present the team at ArcelorMittal Hamburg with the site's certificate. He emphasised, "This is a significant achievement, and one that deserves to be recognised and celebrated. Certification is never just a technical exercise. It represents commitment, perseverance, and real courage. To achieve certification, steelmaking sites must work through challenges, address non-conformities, strengthen systems, and demonstrate openness to scrutiny and improvement. That process is what ResponsibleSteel certification is designed to support, not perfection from day one, but credible progress built on transparency and accountability."

The audit process confirmed that the site has established management systems in place and is actively addressing environmental and social impacts, while also identifying areas for further improvement, which is a core principle of ResponsibleSteel’s approach to certification. In particular, the auditors recognised the site's strong commitment to health and safety, which was evident throughout the process. ResponsibleSteel certification is valid for three years, with regular surveillance audits required to ensure ongoing conformity with the Production Standard.

Thoralf Winkel, CEO of ArcelorMittal Hamburg, commented, “For us, the ResponsibleSteel certification is far more than a formal piece of documentation. It stands for our shared values and our consistent commitment to sustainability, integrity and responsible conduct. With this, we are making a clear promise – to the environment, our local communities and future generations.”

ArcelorMittal Hamburg has been in operation since 1970. The site produces liquid steel and hot‑rolled wire rod and has an annual production capacity of up to 800,000 tonnes of wire rod.

With the certification of the Hamburg site, all four of ArcelorMittal’s steelmaking sites in Germany are now certified against the ResponsibleSteel International Production Standard, alongside Bremen, Duisburg and Eisenhüttenstadt. This reflects a broader commitment across the company’s German operations to independent verification, stakeholder engagement and continuous improvement in responsible steelmaking practices.

Take a look at the certificate and the public audit summary here.

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Watch: Strengthening global interoperability with the China Iron and Steel Association

Earlier this year, ResponsibleSteel was in China to mark an important milestone following the announcement at COP30 of our agreements with the China Iron and Steel Association (CISA) and the Brussels‑based Low Emission Steel Standard (LESS). The visit culminated at CISA’s annual LCA conference, where we presented the project to the Chinese steel value chain and celebrated our shared ambition to advance steel decarbonisation through global collaboration.

In this video, we speak with voices from across the steel value chain, including ResponsibleSteel’s CEO, Annie Heaton, and Director of Programmes, Amy Jackson; CISA’s Vice Secretary General, Feng Chao; VAMA’s Chief Technology Officer, Li Xiang; and Hang Lung Properties’ Deputy Director - Sustainability, John Haffner. They reflect on why interoperability between global standards matters, and how collaboration between ResponsibleSteel and CISA can help unlock trusted, comparable data for low‑ and near‑zero‑emission steel.

Together, these partnerships are laying the foundations for a more transparent global market, one that supports informed procurement, targeted investment, and real emissions reductions across the steel value chain.

What do ResponsibleSteel's interoperability projects look like in practice?

In short, interoperability means measuring emissions using rules that are as aligned as possible, and recognising the differences, to enable comparison on a like-for-like basis. Imagine the benefit this would bring for anyone wanting to distinguish what good looks like, for example, procurement teams, investors, and policymakers.

But making interoperability work in practice requires a lot more if we want a reliable, credible and sustainable system that generates high-quality, comparable data.

We've outlined the key components of this in our Framework for Credible Interoperability, which will inform both our work with LESS and CISA:

  • Aligned GHG accounting rules
  • A reliable calculation tool
  • A robust assurance mechanism
  • Credible claims protocols
  • Good governance, oversight and resourcing
  • Appropriate data management
  • Strong operations management systems

This is how markets are built: first with innovation, then with the necessary rules and systems that enable good information to flow – so that steel buyers can understand, investors can evaluate, and steelmakers can compete, based on emissions performance that everyone can trust.

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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

---

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.

September 24, 2024
2024
Press Releases
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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.

August 30, 2024
2024
Newsletter
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The Roundtable for the Responsible Recycling of Metals: Improving ESG management and performance in metals recycling

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

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

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

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

Steel recycling

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

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

Findings and recommendations

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

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

Improving assurance

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

Policy and market opportunities

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

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

Metal Producers and recyclers

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

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

Brands and manufacturers

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

Further information and next steps

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

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

Images: Shutterstock

August 29, 2024
2024
Member Articles
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A responsible steel industry requires rigorous certification

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

By Annie Heaton, CEO, ResponsibleSteel

August 28, 2024
2024
Editorial
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Join us at the India Net Zero Steel Forum

We're excited to be convening a session on standards and certification at the upcoming India Net Zero Steel Forum! The Forum, hosted by Climate Group, will be held on September 2nd in Mumbai.

The steel industry contributes almost 12% to India's total emissions. This forum will bring together steelmakers, buyers, civil society, and government to discuss India's roadmap to a low-emission, sustainable industry.

The day will feature opportunities to network and hear from experts on India's low-emission steel initiatives and how to leverage demand to boost adoption of low-emission steel. Speakers will include representatives from JSW Group, Mahindra Group, Kalyani Steel, Tata Steel, ArcelorMittal Nippon Steel India, TERI, and the Council on Energy, Environment and Water, among others.

Our CEO, Annie Heaton, will be leading a session exploring how standards and certification can:

- Support policy initiatives and the transition to near-zero production

- Drive ambition and transparency in steel manufacturing

- Bring about transformative changes in the upstream supply chain

- Induce trust and compliance in developed and emerging markets

The session will also discuss risks to Indian steelmakers from cross-border emission market mechanisms.

To join us, register your interest here.

August 26, 2024
2024
Events
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Democratic Congressman Ro Khanna introduces the Modern Steel Act using ResponsibleSteel's Progress Level 4 as a benchmark for near-zero steel

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

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

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

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

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

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

- Enable production of near-zero emissions iron and steel

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

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

- Explore demand generation opportunities

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

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

Learn more about the Modern Steel Act here.

Image credit: Shutterstock

August 21, 2024
2024
News
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July 2024 Newsletter

Earlier in July we were pleased to announce the release of our 1.5°C pathway report, alongside welcoming new members and celebrating new certifications. Looking ahead to August, we invite you to join our Principle 10 webinar to learn more about our approach to climate change and GHGs. Additionally, ResponsibleSteel will be on the ground at New York Climate Week in September - if you’re attending and would like to meet with us, please get in contact!

In this month's newsletter, you will find key updates including:

  • Our latest report
  • New members and certifications
  • Upcoming webinars
  • And more from the team!

Click here to view ResponsibleSteel's July 2024 newsletter.

July 26, 2024
2024
Newsletter
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Member webinar: Understanding ResponsibleSteel's approach to climate change and greenhouse gases

Join us in this webinar to hear more about ResponsibleSteel's approach to tackling climate change and driving down greenhouse gas (GHG) emissions in the steel industry.

The webinar will take place via Microsoft Teams on Friday, August 2nd at 8 am (BST) and will last one hour. A second webinar will be held later in the day at 4 pm (BST) to accommodate other time zones.

Principle 10 of the ResponsibleSteel International Production Standard provides a comprehensive approach for the steel industry to drive down emissions. This webinar will provide members with an essential understanding of Principle 10 and how it can be applied.

Learn more about the Production Standard and Principle 10 here.

If you would like to join this webinar for ResponsibleSteel members, please contact our Head of Membership and Communications, Joe Woodruff.

July 24, 2024
2024
Events
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Member webinar: Hear from the Roundtable on the Responsible Recycling of Metals on their recent findings and recommendations

Join us in this webinar to hear about the recently published findings and recommendations from the Roundtable on the Responsible Recycling of Metals (RRRM).

The webinar will take place via Microsoft Teams on Friday, July 19th at noon (BST).

RRRM is a multi-stakeholder initiative that seeks to ensure there are appropriate standards, systems and tools available for the responsible production and sourcing of recycled metals. The RRRM’s activities are driven by regular roundtable engagement, supported and coordinated by the secretariat and overseen by the Steering Group.

For over a year, RRRM has collaborated with stakeholders across the metals sector to better understand and make recommendations to improve ESG management and performance of recycled metal content and value chains.

The initiative has brought together metals recyclers, industry associations, voluntary sustainability standard setters, certification bodies, academics, NGOs, refiners and others and found that, while recycling delivers key socio-economic and environmental benefits, current approaches are insufficient to ensure recycled metals do not harm people or the environment.

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.

If you would like to join this webinar for ResponsibleSteel members, please contact our Head of Membership and Communications, Joe Woodruff.

July 11, 2024
2024
Events
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ArcelorMittal Duisburg earns ResponsibleSteel certification

Following a two-year audit process conducted by GUTcert, ArcelorMittal Duisburg has achieved Core Site Certification against the ResponsibleSteel International Production Standard.

The site has been in operation since the mid-nineteenth century. Today ArcelorMittal Duisburg produces casted blooms and billets for rerolling, rolled billets for rerolling and forging, and wire rod for the automotive, energy and mechanical industries

Nico Dewachtere, Chief Operating Officer at ArcelorMittal Europe - Long Products, commented, “Achieving ResponsibleSteel certification is not only a milestone, but reflects our shared values and commitment to sustainability, integrity and responsible practices. It is our promise to the environment, to our communities and to future generations.”

Above: Nico Dewachtere, COO ArcelorMittal Europe – Long Products and Dr Cem Kurutas, CEO ArcelorMittal Duisburg; Top: The ResponsibleSteel project team at ArcelorMittal Duisburg

ArcelorMittal Duisburg employs almost 1,000 workers and contractors. As part of the audit, 30 workers were interviewed as well as representatives from local authorities, NGOs, marginalised groups, and other stakeholders.

Annie Heaton, CEO of ResponsibleSteel stated, “We congratulate ArcelorMittal Duisburg on achieving this important step in their sustainability journey. The ResponsibleSteel International Production Standard covers the full spectrum of ESG issues from labour rights and health and safety to emissions reduction and water and waste management, providing the fullest picture of sustainability. Site certification comes with a clear commitment from the sites’ management team to making progress in line with the Standard, in particular on the social pillar. And as ArcelorMittal Duisburg looks to the future with the construction of its new EAF, we look forward to continuing to work with the site and support their progress on the journey toward lower emissions steel.”

The site has aligned itself with ArcelorMittal's corporate GHG target to reduce scope 1 and scope 2 emissions by 35% across European operations by 2030 against a 2019 baseline.

ArcelorMittal has plans to construct an EAF at the Duisburg site, which will be supplied with low-emission sponge iron from ArcelorMittal's Hamburg site. This will allow the transition of the Duisburg site away from production using blast furnace-based pig iron to the DRI-EAF production route.

Dr Cem Kurutas, Chief Executive Officer of ArcelorMittal Duisburg, praised the commitment of all involved in the certification process, saying, “I would like to express my sincere thanks to everyone who contributed to this success. To the project managers who drove the project forward with their vision and expertise, to the teams who worked tirelessly day in, day out, and to all the employees whose dedication and hard work made this possible.”

View the certificate and read the public audit summary here.

July 11, 2024
2024
News
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New report provides a comprehensive framework for charting the steel industry’s progress to 1.5°C

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

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

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

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

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

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

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

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

Read the full report and interactive summary here.

July 3, 2024
2024
Press Releases
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June 2024 Newsletter

We have a lot coming up for members to get involved in, starting with a webinar on July 5th on our important upcoming report, 'Charting Progress to 1.5°C through Certification.' Later in July, we'll be hosting a webinar alongside the Roundtable for the Responsible Recycling of Metals following the launch of their findings in May. We're also asking members and stakeholders to support us on two projects, a new High Alloy and Stainless Steel (HASS) Working Group and a consultation on the recognition assessment for the Copper Mark. Make sure to get involved!

In this month's newsletter, you will find key updates including:

  • ResponsibleSteel's first certification in Italy
  • Upcoming ResponsibleSteel webinars
  • New HASS working group
  • Public consultation on the recognition of Copper Mark
  • And more!

Click here to view ResponsibleSteel's June 2024 newsletter.

June 28, 2024
2024
Newsletter
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