We have derived a list of recommendations from the indicators used in the Sustainable Steel Scoreboard analysis. We recommend the following actions for companies using steel in their production:
- Companies must improve their sustainability reporting. To reduce the negative environmental impact of their supply chain, companies must first accurately measure and report the greenhouse gas emissions, other air emissions, water use, as well as impacts on deforestation and conversion of natural ecosystems of their supply chains.
- Companies must set science-based and time-bound greenhouse gas emissions reduction targets for their entire value chains, as well as separate targets for water use, reducing other harmful emissions, and eliminating deforestation and conversion of natural ecosystems from their supply chains.
- Companies must put in place processes (e.g., auditing and monitoring systems, surveys, and cooperation with suppliers) to monitor and track their suppliers’ corporate responsibility
and sustainability performance, including greenhouse gas emissions, other harmful emissions, water management, and elimination of deforestation. Greenhouse gas emission reduction targets must be directly incorporated into procurement and supplier selection criteria. - Companies must set science-based and time-bound targets for the use of fossil-free and secondary (recycled) steel. Companies must monitor and report their progress by disclosing the current percentage of fossil-free steel as well as recycled steel in their annual production cycles.
- Companies must incentivise investment in fossil-free and environmentally sustainable steel production by cooperating with other buyers (e.g., by participating in multi-stakeholder initiatives such as SteelZero, ResponsibleSteel, and SBTi) and suppliers (e.g., through formal purchasing agreements, joint ventures, and direct investments).
- Companies must consider the recyclability of steel in product design and manufacturing, e.g., by using a closedloop process for steel, reducing the amount of steel used and increasing the proportion of recycled steel in products.