SteelZero, a global initiative led by non-profit organisations the Climate Group and ResponsibleSteel, recently added four new signatories – Iberdrola, Siemens Gamesa, Vattenfall BA Wind and Volvo Cars – to its group of forward-looking businesses. The companies that sign up for the initiative that works to speed up the transition to a net zero steel industry, make a public commitment to procure, specify or stock 100% net zero steel by 2050.
The members of SteelZero aim to use their collective purchasing power and influence to drive the changes required for responsible production and sourcing of steel. In order to achieve net zero by 2050, all the members have set interim targets of using 50% low emission steel by 2030.
“This group of businesses from two highly influential sectors committing to SteelZero, marks a significant step change in the demand signal for low emission and net zero steel. Both renewable energy and automotive sectors play a key role in driving the net zero transition. In doing so they’re supporting the creation of a decarbonised steel market that can enable each sector to meet their net zero targets,” Jen Carson, Head of Industry at Climate Group, said about the recent development.
By becoming the first automotive manufacturer to join SteelZero, Volvo Cars strengthened its commitment to green steel and set a strong precedent for the whole industry. Volvo intends to become a fully electric car maker by 2030 and a climate-neutral company by 2040.
“We are pleased to join the SteelZero initiative and support its ambitions to transform the steel industry. By signalling our demand for responsibly sourced low- and zero-carbon steel, we aim to help drive an increased supply to our sector. A sustainable approach to steelmaking is not just good news for the environment, it is also good business as it limits our exposure to future climate risks and regulations,” Kerstin Enochsson, Chief Procurement Officer at Volvo Cars, said after the announcement.
Massive investments
Significant players in the renewable energy sector Iberdrola and Vattenfall BA Wind are also spearheading the energy transition to a low carbon economy by signing up for SteelZero initiative. Iberdrola has invested more than €130 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles. While Vattenfall has made it clear that hard coal no longer fits into its company strategy. By phasing-out hard coal assets, the Swedish company has reduced its emissions to around 10 million tonnes.
“Iberdrola is investing billions of euros in renewable energy, smarter grids and energy storage to support global net zero ambitions through electrification of the economy. We are also committed to finding green solutions for the hard to abate sectors, and we are at the forefront of developing new concepts such as green hydrogen. We look forward to collaborating with the other members of SteelZero, and to help establish alliances and a roadmap that leads to a zero emissions future to produce steel,” Francisco Laveron, Head of Energy Prospective, Innovation and Sustainability Division at Iberdrola said.
“Vattenfall has pledged to halve greenhouse gas emissions from its supply chain by 2030. For Vattenfall BA Wind a large part of the supply chain emissions comes from steel. By committing to SteelZero, we aim to join forces with other industry players and in that way speed up the transition to a responsible, net zero steel industry,” Helene Biström, Head Vattenfall Business Area Wind said.
Siemens Gamesa provides access to clean, affordable, and sustainable energy and works to tackle the most significant challenge of our generation – the climate crisis.
“Siemens Gamesa is very pleased to join the SteelZero Initiative. We truly believe that we need to work together along the whole value chain in order to accelerate the decarbonization of the steel sector. At Siemens Gamesa, we are looking forward to being part of this initiative as value chain collaboration will be the main catalyst to achieve our net zero targets,” Dietmar Dresp, Head of Procurement at Siemens Gamesa said.
Other members of SteelZero include Multiplex, Maersk, Lendlease and Orsted.
