GREEN STEEL

The term "Green Steel" has been all over our industry for a while now. But if you take a closer look at the topic, you quickly realize that there is no universal definition for green steel. The term is rather used at the moment to describe steel that is produced in a CO₂-reduced manner. A similar situation can be observed with certificates and labels. The first producers are having their steel certified as "green". However, these certificates vary and are therefore difficult for customers to compare.

We have eliminated that problem by developing an universal definition that is based on customers demand, steel producer perspectives, steel production technology routes and the GHG Protocol as the leading carbon accounting standard.

The result is ground-breaking and will help our customers build sustainable value chains and achieve their sustainability goals.

'GREEN STEEL' - WE DEFINED SIX CATEGORIES

✔	Methodology along international standards Calculation methodology follows internationally renowned GHG Protocol
✔	Emissions from raw material to production Emissions include production (S1), purchased power (S2) & supply chain (S3U)
✔	No offsetting included in CO2 load categorization (compensation data as add-on) Physical production emissions determine categorization

✔	Separate category for 'balanced' green steel Emission re-balancing between steel volumes from the same mill results in a calculated instead of a physical carbon footprint – separate class acknowledges efforts of players with physical reduction

Background on 'balanced' • All steel passing through a production pathway has physically the same carbon footprint • Accounting-wise, this footprint is sometimes converted between steel quantities in tons of steel with higher and lower carbon footprints

More background information on the scopes

Scope 1

Scope 1 includes all emissions that are directly caused by the company. Examples for a steel producer are:

Emissions at own steel manufacturing plants
Emissions from own company vehicles

Scope 2

In Scope 2, emissions are recorded that result from the consumption of purchased energy. This includes:

Emissions from purchased electricity
Emissions from district heating and cooling for own use

Scope 3 Upstream

Here, emissions are recorded that occur even before the company's own entrepreneurial activity. Examples for a steel producer are:

Purchased goods like raw materials (e.g. coke and iron) and other services
Production of fixed assets
Transport of purchased goods to the steel producer's facilities

Scope 3 Downstream

In turn, Scope 3 Downstream summarizes emissions that occur after the company's own entrepreneurial activities. Examples for a steel producer are:

Processing of the sold steel products
Use of the sold steel products
Transport of the sold steel products to distributors like Klöckner & Co

WHAT ARE THE BENEFITS FOR CUSTOMERS?

Until now, there was the problem that the term "Green Steel" was not consistently defined. With our strict limits, we ensure that the term "green steel" is only used for products with the least possible emissions. In addition, the other categories allow customers to distinguish between CO2-reduced products more easily.

We take into account all emissions that have occurred in Scope 1 to Scope 3 upstream. For the first time, customers will receive detailed information about the product footprint.

Based on the categories and defined limits, customers can quickly and transparently see how much CO2 emissions were generated in the production of the finished product. This now makes it possible to compare products in regard to their environmental footprint.

Our calculation methods and strict limits for each category are based on scientific evidence and thus prevent greenwashing of products. We ensure that the emission data we provide is meaningful.

The production method of steel is crucial for the classification of the finished product. We are convinced that the introduction of our categories will accelerate the shift towards more sustainable production methods in our industry. Customers will additionally benefit from an increasing supply of green steel.

WE ARE YOUR GLOBAL PARTNER FOR GREEN STEEL

Products across all six categories
Broad variety of products available
Serving Europe and North America

To drive change in our industry and meet the needs of our customers in Europe and North America, we will offer a variety of steel products (flat products, long products, etc.) from each category. We have already entered into partnerships to this end, such as with H2 Green Steel, which will ensure that we can supply significant quantities of Green Steel in the near future.

MORE INFORMATION

Steel Production and Recycling

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