The report builds a clear view on how the steel industry needs to evolve, encompassing the growing need to decarbonize and go beyond carbon, the significance of a stable and long-term regulatory environment, the need to move up the circularity value chain, the shared responsibility of the green investments – and the necessity for a repositioning of the green transition to gain public support.
“The strategic importance of steel and other resources is once again in the spotlight, as nations grapple with the challenges of ensuring industrial resilience and navigating the green transition. And, while today’s focus for steel is carbon emission-centric, tomorrow’s challenges will demand a holistic approach, likely increasingly encompassing more planetary boundaries and higher social requirements. Recognizing which phase of change an organization is in is crucial for initiating the change that goes far beyond improving materials or reducing emissions. The organizations that succeed will be the ones who boldly adopt new strategies aligned with 21st-century business philosophy”, says Johann Steiner, Executive Vice President for Sustainability, Strategy and People at Outokumpu.
A shared responsibility and a rebrand needed to accelerate the development and ensure competitiveness
For some of the shifts identified, early progress has been promising as industry forerunners are taking steps towards decarbonization and increasing circularity. Steel is an industry closest to circularity with nearly 85% of end-of-life steel being collected for recycling globally – though with only 30% of it used to produce new steel, there is still room for improvement. Arguably, much remains to be done to transform the industry and to turn the green transition into a new competitive advantage ensuring green growth. New threats are also looming on the horizon, not least with rising geopolitical challenges. According to the report, ambitious, long-term policies and government support are needed to accelerate the green transition. To gather public interest and support, the report also calls for a rebrand of the green transition to make it more tangible and visible to the public in the form of a more everlasting way of consuming.
“Virtually everything we humans do today has a compounding impact on the physical world. Our challenge for the 21st century is drastically reducing that impact – which requires a fundamental transformation in how we produce and consume. It is clear that carbon steel and stainless steel will have a central role to play in that transition, both as a material and as a defining aesthetic feature of a society that needs to build products designed for longevity”, says Olivier Rostang, lead researcher for the white paper at Kairos Future.
Image credit: Outokumpu Corporation
