The Science Based Targets initiative (SBTi) has launched the world’s first science-based decarbonisation framework for all iron and steel makers worldwide.
The framework outlines a clear roadmap for the steel industry to achieve its 1.5 °C emissions reduction targets, providing a guideline for companies to set near- and long-term targets aligned with this goal.
Steel is a heavy emitting sector, accounting for up to 9% of global emissions. However, it is also an essential material for many industries, including manufacturing, construction, infrastructure, transportation and renewable energy.
“The role of the steel industry is critical to the climate,” said Alberto Carrillo Pineda, Co-Founder and Chief Technical Officer of the SBTi. “It’s vital to have robust and science-based frameworks to guide decarbonisation efforts in the industry.”
“Only by aligning with a science-based emission reduction pathway can steel companies have confidence that they are in line with what’s needed to halt dangerous climate breakdown. This guidance provides steel companies with that opportunity.”
The guidance takes into account issues influencing the steel industry’s ability to set 1.5 °C-aligned science-based targets, including future global steel demand, data limitations, accessibility of key technologies and availability of steel scrap.
Over 20 steel companies have validated near-term science-based targets and 27 have committed to set a target, including 19 net zero commitments. Businesses in the sector that have already set targets are encouraged to recalculate ahead of regular update schedules.
The methodology was co-developed with the Mission Possible Partnership, a climate alliance driving deep decarbonisation of seven hard-to-abate sectors, including aviation, trucking, steel, shipping, and concrete.
“Corporate net zero targets will play a critical role in guiding the corporate strategy decisions needed to deliver deep decarbonisation of the iron and steel sector,” said Faustine Delasalle, Executive Director, Mission Possible Partnership. “MPP’s successful partnership with the SBTi enables steel producers to set clear near-term and long-term emissions reduction targets, while providing a tool to the wider ecosystem to benchmark corporate ambitions.”
“Our next challenge is to work with the steel producers, their wider value chain, and governments to strengthen the business case for the investments required to achieve those targets.”
The Science Based Targets initiative (SBTi) has seen a significant increase in the number of companies setting science-based targets in recent years. In 2022, 1,097 companies had their targets validated, representing a sevenfold increase over the previous seven years combined.
To meet this growing demand, the SBTi has recently announced significant changes to its structure. These changes are designed to boost the credibility and integrity of science-based targets, while also increasing the SBTi’s capacity to keep up with the scaling demand.
