U.S. Steel is one of the largest steel produces in the USA. They have set Science Based Targets for reaching Net Zero by 2050 in a “difficult to decarbonize industry”.
This is a big deal… the Steel industry, yes, I said the Steel industry is making some serious moves in sustainability.
An industry considered by many to be a laggard in sustainability can now claim one steelmaker that is making serious strategies and plans toward a Net Zero future.
U.S. Steel, the second largest steel producer in the USA has taken a deep dive into their climate risks, carbon footprint, and set a strategy to decarbonize their operations.
The Good News
- Appointed a Chief Strategy & Sustainability Officer
- Developed a new low emission steel product called verdeX®. Generates 70-80% less emissions than traditional steel.
- Set a Net Zero Goal (this is big for a steel company)
The Less Good News
- 2030 Climate goal of 20% reduction of Scope 1 and Scope 2 emissions could be more aggressive.
- Net Zero Goal is 2050 and only covers Scope 1 and Scope 2 emissions
What this Means for Firms in Steel Industry?
- Customers are demanding low emissions steel products –> U.S. Steel isn’t going to ingrain sustainability into their strategy if it didn’t make financial sense.
- If your steel-related business hasn’t started evaluating your carbon footprint, you’re falling behind. –> You’re putting your business and revenue at risk.
- It’s time to create a decarbonization strategy. –> Customers want lower emissions steel products!
What this Means for Other Industries?
- If steelmakers can find opportunities to decarbonize, your business can too!
- Don’t let perfect be the enemy of the good. You don’t have to get to Net Zero emissions immediately.
- But you do need to start now!
Image Credit: Yasin Hemmati