Steel industry needs consistent reporting standards to achieve real emissions cuts, SteelZero urges

This press release outlines SteelZero's key concerns, recommendations, and position around the use of mass balance accounting in steel emissions reporting:

• SteelZero calls for consistent, transparent emissions reporting to ensure claims reflect genuine, measurable decarbonisation.
• Mass balance accounting, if used without rigour, risks greenwashing, lack of transparency, and unfair competition.
• SteelZero urges the use of principles like integrity, additionality, and traceability, and supports Chain-of-Custody models over generic mass balance claims.

The global steel industry needs to strengthen transparency and ensure that emissions reporting reflects genuine, measurable decarbonisation

Without consistent standards, some reporting approaches risk inflating emission reduction claims, and undermining the credibility of “green steel” claims.    

The report addresses “mass balance accounting”. This method attributes the proportion of lower emission steel such as recycled scrap or hydrogen-based iron, across a company’s total output. If applied transparently, it can help companies track progress, but inconsistent use could lead to overstating emissions reductions. 

“The steel industry’s transition must be built on trust. We need credible, transparent approaches that reflect genuine decarbonisation in steel production — not accounting shortcuts.” — Sameen Khan, Senior Manager, SteelZero, Climate Group

Steel production is responsible for around 8% of global emissions. As demand for lower emission materials accelerates, steelmakers are responding with new product claims and certification models. But without clear, consistent standards, some approaches risk inflating emissions reductions, undermining the credibility of “green steel” claims.  

SteelZero, a global initiative of over 40 leading steel users across construction, engineering and automotive, has today released its position paper on the use of “mass balance accounting” in the steel sector.  

The paper provides clarity for members, steel buyers, and industry stakeholders on how mass balance is being used in the market and the risks it poses if applied without rigour. SteelZero urges the steel industry to strengthen transparency and ensure that reporting reflects genuine, measurable decarbonisation. 

Risks of unclear emissions accounting 

SteelZero’s position paper provides clarity for businesses, policymakers, and stakeholders on how mass balance is currently being applied in the market — and the risks it poses if not applied with rigour. Stronger standards will ensure that emissions claims are credible and that “green steel” delivers real impact.

Such practices pose three major risks:  

• Risk of greenwashing – caused by allocating emissions reductions from across a company to selected products, even if no direct link.
• Lack of transparency – inconsistent and opaque methods make it difficult for buyers to verify claims.
• Unfair competition – weaker approaches allow less sustainable products to profit, undercutting producers investing in genuine decarbonisation. 

SteelZero’s guiding principles for credible mass balance use 

To avoid enabling misleading claims, SteelZero calls for the following principles to be applied to any mass balance approach: 

• Integrity: Must support deep, science-based decarbonisation aligned with net zero pathways.
• Additionality: Claims must reflect genuine, new emissions reductions enabled by technologies or sustainable inputs.
• Traceability and transparency: Customers must be provided with clear, verified data at the product level. 

SteelZero does not automatically recognise mass balance claims under its commitment framework. Instead, the initiative supports Chain-of-Custody models that provide a clear and verifiable link between lower emission inputs and the steel products sold. By focusing on proven technologies, renewable energy and traceable supply chains, SteelZero aims to ensure that progress towards lower emission steel is both credible and measurable. 

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