A matter of transparency 2024 insights on the steel industry’s evolving commitments to reach Net Zero by 2050

Abstract

While there has been some progress in the steel industry's commitment to emissions reduction targets, 23 of the top 50 producers still lack concrete intermediate milestones, making it challenging to achieve the goal of net zero by 2050. Twenty companies now target net zero by 2050 or earlier, up from seventeen in 2023. Despite this modest increase in net zero commitments among steel producers, half of the top producers remain without a 2050 target, highlighting the need for continued focus on aligning the sector with global decarbonization efforts. Fifteen of the top 50 steel producers, only one more since last year, have defined emission scopes in their net zero targets. The remaining majority still lack clear scope definitions, pointing out the need for greater transparency to ensure accurate tracking and progress toward industry-wide decarbonization. The launch of the Science Based Target Initiative's (SBTi) steel sector guidance in 2023 makes it easier than ever before for companies to set transparent and ambitious climate goals, with early adopters like SSAB and Thyssenkrupp leading the way. Outside enforcement mechanisms (i.e. governments and financial institutions) will be key for holding companies accountable to their net zero targets.