What sustainability initiatives can a steel supplier adopt

The steel industry is at a pivotal crossroads, where sustainability is no longer optional but essential.

As environmental concerns and regulations rise, steel suppliers must adopt innovative practices to reduce their carbon footprint.

Embracing sustainability not only helps protect the planet but also enhances business reputation and competitiveness.

This article explores practical and impactful initiatives that steel suppliers can implement for a greener future. Discover how the steel sector can lead the way toward sustainable growth.

Why Sustainability Matters in the Steel Industry

Steel production is responsible for 7–9% of global CO₂ emissions, making it one of the most carbon-intensive industries worldwide.

As governments, investors, and customers demand greener products, steel suppliers face mounting pressure to decarbonize, improve resource efficiency, and demonstrate environmental leadership.

Key Drivers

• Regulatory Compliance: Paris Agreement, EU Green Deal, and national carbon pricing schemes require deep emissions cuts. 
• Market Access: Buyers increasingly require low-carbon steel and verifiable sustainability data. 
• Cost Savings: Energy efficiency and recycling reduce operational costs over time. 
• Reputation: Sustainability credentials enhance brand value and stakeholder trust. 

Top Sustainability Initiatives for Steel Suppliers

1) Decarbonization Technologies

Hydrogen-Based Steel Production (H₂-DRI-EAF)

• How it works: Uses green hydrogen to reduce iron ore, followed by melting in electric arc furnaces (EAF) powered by renewables.
• Impact: Up to 95% CO₂ reduction compared to traditional methods. 
• Example: SSAB’s HYBRIT project aims for fossil-free steel by 2026.

Carbon Capture and Storage (CCS)

• How it works: Captures CO₂ from steel plant emissions for storage or reuse.
• Impact: Can cut emissions by 31–41% in large-scale deployments. 
• Considerations: High capital costs and energy requirements.

Electric Arc Furnaces (EAF)

• How it works: Melts scrap or DRI using electricity, enabling low-carbon steel when powered by renewables.
• Impact: Up to 80% lower emissions than blast furnace routes. 
• Example: Nucor uses EAFs and is North America’s largest recycler.

2) Energy Efficiency Measures

• Advanced Process Control: Digitalization and automation optimize furnace operation and reduce energy use.
• Waste Heat Recovery: Captures excess heat for reuse, improving overall plant efficiency.
• High-Strength Steels: Reduces the amount of steel needed in end products, lowering total emissions.

3) Circular Economy and Recycling

• Steel Recycling: Melting scrap steel in EAFs; steel is 100% recyclable with no loss of quality. 
• Closed-Loop Systems: Collaborate with customers to design products for easier disassembly and recycling.
• Impact: Recycling 1 kg of steel scrap saves 1.5 kg CO₂-e and 1.4 kg iron ore.

4) Renewable Energy Adoption

• Switch to Renewables: Power EAFs and hydrogen production with solar, wind, hydro, or nuclear energy.
• Site Selection: Build new plants in regions with abundant, low-cost renewables (e.g., Scandinavia, Middle East).
• Impact: Renewable-powered steelmaking can achieve near-zero emissions.

5) By-Product Utilization and Waste Reduction

• Slag and Process Gases: Use slag in cement and road construction; process gases for on-site energy or grid export. 
• Waste Minimization: Over 98% of solid and liquid production is now utilized, with only 2% waste.

6) Sustainable Supply Chain Management

• Supplier Audits: Ensure raw materials are sourced responsibly and transparently.
• Certifications: Achieve standards like ResponsibleSteel™, ISO 14001, and Science-Based Targets. 
• Traceability: Implement digital tools for emissions tracking and product carbon footprint reporting.

Implementation: Steps for Steel Suppliers

1. Assess Current Footprint: Measure Scope 1, 2, and 3 emissions and material flows.
2. Set Science-Based Targets: Align with SBTi and international standards.
3. Prioritize Initiatives: Focus on high-impact actions (e.g., EAF transition, recycling, renewables).
4. Invest in Technology: Pilot and scale up hydrogen DRI, CCS, and digitalization.
5. Engage the Value Chain: Collaborate with suppliers, customers, and partners for circularity and transparency.
6. Report Progress: Use recognized frameworks (e.g., ResponsibleSteel™, ESRS) for regular, transparent updates.

Case Studies: How Leading Steel Suppliers Succeed