Sustainability is not a new topic for Mr. Harsh Choudhry. An electrical engineer by training, he has spent considerable time working on CO2 emissions, energy efficiency, sustainable agriculture, and low-carbon strategies. As a former Associate Partner at McKinsey & Company, Mr. Choudhry decided to channel his expertise into founding sentra.world, alongside his co-founder and COO, Mr. Vikas Upadhyay, who was also an Associate Partner at McKinsey & Company, working across EMEA and leading work on Digital & Analytics services for industrial companies.
“We launched sentra.world a year and a half ago with the goal of helping companies establish low-carbon strategies and support the broader decarbonization agenda. We were clear on three key points: first, we needed to be sector-specific, offering tailored solutions for different industries, such as steel and aluminum, to ensure maximum impact. Second, our focus had to be on value—making sustainability economically viable, driving profitability, and creating win-win scenarios for both businesses and the environment. Finally, we recognized the complexity of sustainability topics, like green steel, for the average steel manufacturer. The field is rife with confusion, given the numerous standards and the lack of a universal definition for green steel. Industrial manufacturing is already complex, and integrating evolving sustainability standards adds another layer. That is where sentra.world comes in—we simplify the integration of sustainable practices through innovative, user-friendly technology,” Mr. Choudhry explained.
The steel sector was the first focus for sentra.world. Within this industry, they specialize in measuring CO2 emissions, providing calculation-based reporting in line with various standards such as CBAM and ISO.
sentra.world offers a comprehensive suite of solutions designed to streamline carbon management, achieve sustainability goals, and enhance environmental accountability. Their platform includes precise carbon calculation tools (sentra.calculus), rapid climate certifications (sentra.certify), and tools for setting and achieving net-zero targets (sentra.reduce). They also offer real-time supplier integration for Scope 3 emissions management (sentra.network), sustainability-linked financial solutions (sentra.finance), and blockchain-enabled traceability for emissions data (sentra.trace). Additionally, businesses can monetize carbon reductions (sentra.carbcred) and manage ESG metrics across portfolios (sentra.portfolio), ensuring a holistic approach to sustainability.
Expounding on the solutions offered to the steel sector, Mr. Choudhry said, “All of this happens through our digital platform. We extract data for calculations, which our software then processes to generate reports. We also assist clients with Scope 3 emissions, helping them integrate supplier data and connect with key stakeholders. The third component involves both consulting and software support, where we guide clients in understanding their targets, identifying feasible projects, and conducting techno-commercial evaluations. We also connect them with suppliers of cutting-edge solutions, many of which are still in development. Finally, we help clients craft detailed decarbonization roadmaps.”
He continued, “For instance, if you are a steel producer and a customer like Mercedes or Volvo approaches you, concerned about high CO2 emissions, but they only represent 10% of your volume, you would not want to spend billions to decarbonize your entire plant for just one client. We calculate emissions per customer, determining any shortfalls, and add carbon credits as necessary. This methodology has been recognized by the World Steel Association as part of the chain of custody. Our integrated technology works seamlessly with your CRM or supply chain management system.”
A year and a half into their journey, sentra.world now collaborates with over 30 steel companies, primarily in India and the Middle East. In India, they work with major players such as SAIL and the Jindal Group.
“We remain committed to our vision of helping steel companies decarbonize. In the software industry, companies often refer to themselves as system integrators. We like to think of ourselves as sustainability integrators, bringing together various solutions—some developed by us, others by external partners—so that steel manufacturers can focus on what they do best, while we help them meet the green challenge,” he emphasized.
Creating value
The primary reason businesses exist is to create economic value, and they will cease to exist if they stop generating it. Any big idea or initiative that drives direct financial value naturally attracts the most attention. And if it is significant enough, it requires the backing of the CEO, the board, and the necessary financial investment. Sustainability is no different—without the right investments and focus, it risks being sidelined. This was a key realization in the early days at sentra.world, as shared by Mr. Choudhry.
“Through our research, we identified several ways in which green steel or sustainability initiatives in the steel sector can generate economic value. One is top-line growth. This can be achieved through two avenues: market share expansion and price premiums. Market share growth is increasingly tied to compliance with regulations like CBAM (Carbon Border Adjustment Mechanism), which has become crucial. Countries like the UK, Japan, Korea, and India are implementing similar standards, such as India’s upcoming Carbon Credit Trading (CCT). Over the next few years, I expect every major steel-producing country to have its own standards, turning CO2 emissions into a kind of passport for international trade. For instance, Indian exporters who successfully reduce their emissions will likely attract more customers in Europe, potentially commanding higher prices,” he elucidated.
“The second avenue for top-line growth is the price premium. While not yet mainstream, there is anecdotal evidence of steel trades where lower CO2 intensity commands a price premium of 10-20%. By 2026, when CBAM regulations are fully in place, I anticipate these premiums will become standard, with prices closely indexed to CO2 emissions,” he continued.
Another key area of value creation that Mr. Choudhry highlighted is organizational value. “Publicly traded steel companies need to earn the respect and trust of shareholders, and sustainability is a powerful lever in achieving this. When a company demonstrates that sustainability is not just a talking point but a core operational pillar, it can aim for higher valuations and greater visibility in major markets. Additionally, access to capital is critical. In regions like India, the Middle East, Latin America, and Southeast Asia, steel production is still about growth. For instance, India’s current steel production is around 140 million tonnes, and projections suggest it will need to grow to 300 million tonnes in the next 7-8 years. This growth will require significant investment but the big question is who will fund it. Investors, especially from regions like Japan and the Middle East, are increasingly favoring sustainable projects, offering lower interest rates to companies that prioritize sustainability.”
This organizational value creation directly appeals to CFOs, while the top-line growth potential resonates with Chief Commercial Officers. The third area, decarbonization projects, speaks to Chief Operating Officers. These projects inherently reduce electricity consumption and optimize raw material use, leading to lower operational costs. Moreover, there is the added potential of carbon credits, providing further cost reduction opportunities.
“In summary, sustainability offers something for everyone in the boardroom—from the CFO to the Chief Commercial Officer to the CEO. It is a profitability story, not just a cost center. Companies that recognize this and integrate sustainability into their core strategy will not only create economic value but also ensure long-term viability and success,” he emphasized.
Transparency and traceability
At sentra.world, blockchain technology plays a crucial role in enhancing transparency and traceability, particularly in the steel manufacturing sector. A blockchain is a distributed database that maintains a continuously growing list of ordered records, called blocks. This technology is becoming increasingly relevant as companies seek to track and verify their carbon emissions across complex, global supply chains.
“Many companies want a clear, unaltered view of emissions across the value chain,” Mr. Choudhry explained. “They do not want data that has been tampered with or modified. We can track emissions throughout the entire value chain— for example, from the iron ore mined in Brazil to the pelletizing plant in Oman, then to a manufacturing facility in the UAE, and finally to the end user in Germany. At every step, including transportation, we upload CO2 emissions data, processes, and certificates as blocks on a public blockchain. This ensures that at each stage, a new block is added, creating an unchangeable record that everyone in the value chain can access through secure sites or access points. However, it is worth noting that blockchain can be expensive, so this level of traceability is only viable when steel users are willing to invest in it.”
The concepts of transparency and traceability are recurring themes in today’s sustainability discussions. However, providing traceability is not just about technology; it is also about intent and readiness. The steel value chain is long and complex, often changing hands multiple times before reaching the end user. This complexity is compounded by traders who might be reluctant to disclose their suppliers, creating structural challenges.
“While large companies may have the data systems necessary to ensure transparency, smaller players—such as ferroalloy producers or re-rollers—might struggle to structure their data appropriately. This disparity highlights the varying levels of readiness across the industry,” he added.
Another challenge is the potential for companies to obscure their emissions data as carbon taxes become more prevalent. With multiple standards like CBAM and methodologies from organizations such as the World Steel Association requiring accurate data for CO2 emission calculations, there is a risk that some may provide inaccurate data to avoid penalties. To counter this, there are two primary solutions: one is relying on third-party audits, which have been the norm but can be costly. The other is leveraging blockchain technology to make data public and subject to broad scrutiny.
At a recent World Steel Association conference in Brussels, an insightful statement was made: “In the carbon index world of the future, steel producers need to be okay with their data becoming public, and steel buyers must be okay with paying a higher price for sustainable steel.” According to Mr. Choudhry this simple yet profound idea underscores the importance of transparency. If companies want to avoid the costs associated with third-party audits, they must be willing to make their data public, using blockchain to ensure it withstands scrutiny.
This is where blockchain truly shines—by enabling enhanced trust and traceability. For instance, an integrated steel player can verify emissions data from their direct suppliers but might have no visibility into tier 2 or tier 3 suppliers. Blockchain technology fills this gap, providing a comprehensive view of the entire supply chain and fostering greater accountability.
Collaborative effort
Many companies in the steel industry are facing significant confusion and uncertainty as they navigate the new landscape of carbon regulations and sustainability initiatives. The sudden importance of concepts like CBAM reporting, carbon credits, and CO2 emission reduction has blindsided many steel producers, leaving them overwhelmed and fearful of potential taxes and trade restrictions. This confusion often leads to irrational decision-making, as companies grapple with unfamiliar requirements and the complexity of integrating sustainability into their operations.
To address this, industry experts are increasingly focusing on education and support. For sentra.world recent efforts include spending significant time with clients to demystify sustainability topics, from basic CO2 emissions measurement to understanding the broader implications of global carbon policies. This educational approach helps companies transition from fear and confusion to informed decision-making, ultimately converting challenges into opportunities.
“The journey toward a sustainable steel industry is not a solitary one; it is an ecosystem that thrives on collaboration. We need storytellers to champion the benefits of green steel, innovators like us to develop digital solutions, and a unified group of ecosystem players driving progress. I am eager to see more of this collaboration in the coming years, as I believe the steel sector is poised to lead the decarbonization effort,” Mr. Choudhry concluded.
