Businesses want to make greener steel choices, but inconsistent data is holding them back, writes Climate Group's Sameen Khan.
The effective sharing of data that gives customers visibility on the environmental impact of the steel they use is critical to decarbonise steel. It'll help companies to make smarter, better informed and greener choices.
We're working with our SteelZero members to unlock data from their supply chains in a consistent and collective manner. But the data currently shared lacks the detail and consistency needed to make truly greener procurement decisions. The good news? There are changes we can make today to drive better data sharing in the industry and drive steel decarbonisation.
Buyers can shape demand for green steel - but only if they get the right data
Customers have the power to create markets for green steel and drive the industry's decarbonisation.
The SteelZero reporting framework helps our members, from carmakers and construction companies to wind turbine manufacturers, to collectively ask and capture the environmental impact of the steel they use. It's the first time the sector has a timebound, quantified and verifiable benchmark to define climate-compatible steel. It helps these businesses every year to measure progress against their commitment to use 50 per cent lower emission steel by 2030 and 100% net zero steel by 2050 at the latest.
But we've seen a disconnect between the emissions metrics currently on the market, and what businesses truly need to determine progress. This must change. To do this we need to look at how businesses currently get information on their steel products.
Businesses commonly get this information from an environmental product declaration (EPD), which show the results of the Life Cycle Assessment (LCA), which assesses the product's environmental impact.
EPDs however don't routinely include key data points businesses need, like the scrap percentage and GHG emission intensities, to fully assess the environmental footprint of the steel. This kind of data isn't always straightforward for members to access – and when shared, it's often not in a consistent way, underpinned by agreed definitions.
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Case study: How William Hare is closing supply chain data gaps
William Hare is an example of a company recognising the power of data in cutting the carbon associated with its operations. By closely tracking its energy use and emissions, the company was able to pinpoint areas for improvement and took action – achieving ‘Platinum Reducers' status through the Achilles Carbon Measurement Programme for reductions in Scope 1 and 2 emissions.
More recently, the company has shifted focus to include supply chain emissions (Scope 3) as part of its carbon strategy, validated by the Science Based Targets initiative (SBTi).
Since joining SteelZero in 2021, the company has continued to work on building a clearer picture of the emissions linked to the steel it buys. Early steps focused on collating existing supplier certifications such as environmental standards (e.g. BES 6001 and ISO 14001). But in preparation for its 2024 reporting, William Hare issued detailed questionnaires to their entire supply chain to gather key environmental data that was missing.
This helped close information gaps and allow for a better understanding of where suppliers stand against the SteelZero criteria. While data like Global Warming Potential (GWP) and accreditation bodies were readily available on existing EPDs, scrap content and GHG emissions data was much harder to obtain.
The company managed to fill many of the gaps – although some remain - and submit a much fuller picture of its steel supply chain emissions in 2024. That data is now informing smarter decisions for both William Hare and the wider SteelZero community.
Laying the foundations for better steel data sharing
There are steps we need to take to improve the quality of steel data sharing and ensure EPDs meet customer needs to precisely assess performance against the ‘steel decarbonisation' scale.
Firstly, the scrap percentage of the steel product needs to be included in EPDs to ensure consistent requirements and standards of data sharing. This information will have formed part of the LCA conducted on the product. It's not about requiring new information, but about expanding what's shared with the customer.
Secondly, we need to be stricter on how we refer to scrap. We need agreed definitions aligned with international standards like ResponsibleSteel, and which are adopted within our commitment framework, which EPDs conform to. This way we ensure there's not just consistency in the data shared but how it's shared, so we can achieve real comparability throughout the industry.
We need steelmakers to work with us to make this possible, through talking to customers to understand and meet their data requirements.
Full data transparency in steel supply chains is essential – and it's something we're actively working to accelerate. From driving greater alignment on the methodologies used to calculate emissions intensity, to ensuring consistent reporting of key data points like crude steel emissions and scrap percentages, we're pushing for the comparability needed to support real progress on decarbonisation.
Because data is the foundation of enabling green corporate leadership. It will enable the steel industry's net zero transition by allowing customers to make informed green procurement decisions. By working with steelmakers to boost disclosure, we can achieve important first steps in data sharing to enable businesses to measure and tackle their steel emissions.