GREEN STEEL

The term “green steel” has been all over our industry for a while now. But taking a closer look soon reveals that there is no universal definition for green steel. Currently, the term is used to describe steel that is produced in a carbon-reduced manner. A similar situation can be observed with certificates and labels. Some producers are starting to have their steel certified as “green.” However, these certificates vary, which makes it difficult for customers to compare.

We have eliminated that problem by developing a universal definition that is based on customer demand, steel producer perspectives, steel production technology routes and the GHG Protocol as the leading carbon accounting standard.

The result is ground-breaking and will help our customers build sustainable value chains and achieve their sustainability goals.

 

 

'GREEN STEEL' - WE DEFINED SIX CATEGORIES

Methodology along international standards
Calculation methodology follows internationally renowned GHG Protocol

Emissions from raw material to production
Emissions include production (Scope 1), purchased power (Scope 2) & supply chain (Scope 3 Upstream)

No offsetting included in CO2 load categorization (compensation data as add-on)
Physical production emissions determine categorization

Separate category for 'balanced' green steel
Emission re-balancing between steel volumes from the same mill results in a calculated instead of a physical carbon footprint – separate class acknowledges efforts of players with physical reduction
 
Background on 'balanced'

All steel passing through a production pathway has physically the same carbon footprint

Accounting-wise, this footprint is sometimes converted between steel quantities in tons of steel with higher and lower carbon footprints

 

 

More background information on the scopes

Scope 1 includes all emissions that are directly caused by the company. Examples for a steel producer are:

  • Emissions at its own steel manufacturing plants
  • Emissions from its own company vehicles

In Scope 2, emissions are recorded that result from the consumption of purchased energy. This includes:

  • Emissions from purchased electricity
  • Emissions from district heating and cooling for the company’s own use

Here, emissions are recorded that occur even before the company’s own entrepreneurial activity. Examples for a steel producer are:

  • Purchased goods such as raw materials (e.g. coke and iron) and services
  • Production of fixed assets
  • Transport of purchased goods to the steel producer’s facilities

Downstream Scope 3 comprises emissions that occur after the company’s own entrepreneurial activities. Examples for a steel producer are:

  • Processing of the steel products sold
  • Use of the steel products sold
  • Transport of the steel products to distributors like Klöckner & Co

WHAT ARE THE BENEFITS FOR CUSTOMERS?

Until now, that the lack of a consistent definition of the term “green steel” was a problem. With our strict limits, we ensure that the term “green steel” is only used for products with the lowest possible emissions. In addition, the other categories make it easier for customers to distinguish among carbon-reduced products. Customers are thus able to include correspondingly lower emission figures in their carbon footprint.
We take into account all emissions that have occurred in Scope 1 to Scope 3 upstream. For the first time, customers receive detailed information about the product’s footprint.
The categories and defined limits give customers a quick, transparent picture of the carbon emissions generated in the production of each finished product. This now makes it possible to compare products in terms of their environmental footprint.
Our calculation methods and strict limits for each category are based on scientific evidence and thus prevent product greenwashing. We ensure that the emissions data we provide is meaningful.
The production method of steel is crucial to the classification of the finished product. We are confident that our categories will accelerate the shift towards more sustainable production methods in our industry. This benefits customers by increasing the supply of green steel.

 

 

WE ARE YOUR INTERNATIONAL PARTNER FOR GREEN STEEL

  • Products across all six categories
  • Broad variety of products available
  • Serving Europe and North America

To drive change in our industry and meet the needs of our customers in Europe and North America, we will offer a variety of steel products (flat products, long products and many more) in each category. We have already entered into partnerships to this end, such as with H2 Green Steel, which will ensure that we can supply significant quantities of green steel in the near future.

 

 

MORE INFORMATION

 

 

CONTACT US

Do you have any questions about the categories? Would you like to learn more? Just send us a message and our experts will be happy to help you.

Thank you!

Our experts will get in touch with you.

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