The World Benchmarking Alliance’s Climate and Energy Benchmark measured and ranked 91 of the world’s most influential aluminium, cement and steel companies for the first time on their alignment to a low-carbon world.
The heavy industries are positioned at the end of the global decarbonisation journey. Representing 18% of global CO2 emissions in 2022, the sector requires substantial investment in non-mature technologies, changes in century-old production practices and the transformation of the power system in order to meet its climate goals.
The 2024 benchmark is the first iteration for this sector, the assessment will combine the ACT (Accelerate Climate Transition) methodologies and WBA social and just transition indicators. This approach provides a holistic assessment of companies’ efforts to achieve a low-carbon transition that is just and equitable.
Five key findings
The 2024 Climate and Energy Benchmark assessing the heavy industries reveals valuable insights about the performance of 91 companies in the aluminium (12), cement (34) and steel (45) industries.
Our research shows that companies’ emissions intensity reductions are currently not aligned with a 1.5-degree trajectory, there is not yet enough investment in market-ready technologies, but good practice provides hope that robust transition planning is possible throughout the sectors.
Companies need to triple their efforts to reduce emissions intensity in the next 5 years to align with a 1.5 trajectory
Emission intensities in the company sample decreased on average by 0.8% annually between 2017 and 2022. If this trend persists, companies will stray from the needed reduction path for a 1.5-degree world. To counter this, companies must triple their current performance, achieving 2.4% annual reductions in emissions intensities over the next 5 years. Failing to do so will increase the reliance of heavy industries on high-risk, high-cost technologies post-2030.
Without increasing investments in technologies that are not yet market-ready, achieving net-zero will not be possible
Many of the technologies necessary for the decarbonisation of heavy industries are not yet market-ready and demand significant levels of R&D. Only 24% of the companies report R&D investments in low-carbon technologies and 10% do so for non-mature technologies. Among disclosing companies, around 46% of total R&D investments go toward developing low-carbon technologies, showing their equal priority alongside other R&D expenses.
Good practices are available to elevate standards for major players and assist laggards in building strong foundations for transition plans
Among the surveyed companies, 28% have transition plans covering all business units and operations, while 13% extend these plans to their entire value chain. Additionally, 12% of companies commit to reporting progress annually on their transition plans and have a defined stakeholder feedback process. Twenty-three percent of companies incorporate a carbon price into their cost calculations as a financial indicator, and 8% align it with a low-carbon scenario, integrating it into key business decisions.
Top performers demonstrate the feasibility of a just transition, but the majority struggles to keep pace
While some companies demonstrate good just transition practice, the sector as a whole has a long way to go to ensure that no one is left behind in the low-carbon transition. A 'just transition’ envisions workers and communities that are thriving and resilient to change, while remaining with in the global 1.5 C boundary set out in the Paris agreement. Half of the companies score 0 on all our just transition indicators, putting their workers and the communities around these companies at risk. Four companies score over 20% of the available points, and the top performer scores 50% on just transition. While these companies demonstrate different avenues of how a just transition can be approached in heavy industries, they also must take further steps to ensure a truly just transition.
The heavy industries lack commitment and activity in practicing basics of responsible business conduct
The companies in this benchmark employ over 2.9 million workers, and they are failing to show commitment and action regarding decent work and respect for human rights. While just over half of the companies are committed to protecting the health and safety of their workers, only 7 companies with a total of 159 000 workers disclose a fundamental amount of quantitative information regarding the health and safety of their workers. Meanwhile, less than half (45%) of all companies are committed to respecting human rights, only 9 companies disclose the categories of stakeholders whose human rights may have been impacted by their activities, and only 3 of those provide examples of engaging with these stakeholders.
Find out how the companies performed
View rankingWhere are the 91 companies headquartered?
Locations
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Title: Maanshan Iron & Steel
Place: China
Description: -
Title: Metinvest
Place: Ukraine
Description: -
Title: Nucor
Place: United States
Description: -
Title: POSCO
Place: Korea, Rep.
Description: -
Title: Hebei Jingye Group
Place: China
Description: -
Title: JSW Steel
Place: India
Description: -
Title: Kobelco
Place: Japan
Description: -
Title: Nippon Steel
Place: Japan
Description: -
Title: Rizhao Steel
Place: China
Description: -
Title: Salzgitter
Place: Germany
Description: -
Title: SSAB
Place: Sweden
Description: -
Title: U.S. Steel
Place: United States
Description: -
Title: Xinhua Metallurgical
Place: China
Description: -
Title: Arconic
Place: United States
Description: -
Title: Century Aluminum
Place: United States
Description: -
Title: Norsk Hydro
Place: Norway
Description: -
Title: Vedanta Resources
Place: United Kingdom
Description: -
Title: NLMK
Place: Russian Federation
Description: -
Title: SAIL
Place: India
Description: -
Title: Severstal
Place: Russian Federation
Description: -
Title: thyssenkrupp
Place: Germany
Description: -
Title: Gerdau
Place: Brazil
Description: -
Title: Hunan Valin Steel
Place: China
Description: -
Title: Hyundai Steel
Place: Korea, Rep.
Description: -
Title: JiuQuan Iron and Steel Group
Place: China
Description: -
Title: Nanjing Iron & Steel
Place: China
Description: -
Title: Shagang
Place: China
Description: -
Title: Shandong Iron & Steel Group
Place: China
Description: -
Title: Shougang
Place: China
Description: -
Title: Xinyu Iron & Steel
Place: China
Description: -
Title: Baowu
Place: China
Description: -
Title: Donghai Special Steel
Place: China
Description: -
Title: Hanwa
Place: Japan
Description: -
Title: JFE Holdings
Place: Japan
Description: -
Title: Steel Dynamics
Place: United States
Description: -
Title: Tata Steel
Place: India
Description: -
Title: Ternium
Place: Luxembourg
Description: -
Title: Tsingshan Holding
Place: China
Description: -
Title: Voestalpine
Place: Austria
Description: -
Title: CHALCO
Place: China
Description: -
Title: China Hongqiao
Place: China
Description: -
Title: Emirates Global Aluminium
Place: United Arab Emirates
Description: -
Title: Rio Tinto
Place: United Kingdom
Description: -
Title: Rusal
Place: Russian Federation
Description: -
Title: South32
Place: Australia
Description: -
Title: ArcelorMittal
Place: Luxembourg
Description: -
Title: Guangxi Shenglong Metallurgical
Place: China
Description: -
Title: Asia Cement
Place: Taiwan, China
Description: -
Title: Cementos Argos
Place: Colombia
Description: -
Title: Dangote Cement
Place: Nigeria
Description: -
Title: SIG
Place: Indonesia
Description: -
Title: UNACEM
Place: Peru
Description: -
Title: BUA Cement
Place: Nigeria
Description: -
Title: CRH
Place: Ireland
Description: -
Title: Holcim
Place: Switzerland
Description: -
Title: InterCement
Place: Brazil
Description: -
Title: Ramco Cements
Place: India
Description: -
Title: Shree Cement
Place: India
Description: -
Title: Siam City Cement
Place: Thailand
Description: -
Title: Votorantim Cimentos
Place: Brazil
Description: -
Title: Yatai Building Materials
Place: China
Description: -
Title: China Shanshui Cement
Place: China
Description: -
Title: Anhui Conch Cement
Place: China
Description: -
Title: BBMG
Place: China
Description: -
Title: Boral
Place: Australia
Description: -
Title: Siam Cement
Place: Thailand
Description: -
Title: Taiheiyo Cement
Place: Japan
Description: -
Title: UltraTech Cement
Place: India
Description: -
Title: CNBM
Place: China
Description: -
Title: Heidelberg Materials
Place: Germany
Description: -
Title: Buzzi Unicem
Place: Italy
Description: -
Title: Titan Cement
Place: Belgium
Description: -
Title: China Resources Building Materials Technology
Place: China
Description: -
Title: Dalmia Bharat
Place: India
Description: -
Title: Martin Marietta
Place: United States
Description: -
Title: TPI Polene
Place: Thailand
Description: -
Title: Vicat
Place: France
Description: -
Title: Cemex
Place: Mexico
Description: -
Title: Cemros
Place: Russian Federation
Description: -
Title: Huaxin Cement
Place: China
Description: -
Title: Taiwan Cement
Place: Taiwan, China
Description: -
Title: Alcoa
Place: United States
Description: -
Title: Hindalco
Place: India
Description: -
Title: Ansteel
Place: China
Description: -
Title: Baotou Steel
Place: China
Description: -
Title: China Steel
Place: Taiwan, China
Description: -
Title: CITIC Pacific Special Steel
Place: China
Description: -
Title: Delong Steel
Place: China
Description: -
Title: Evraz
Place: United Kingdom
Description: -
Title: Hesteel
Place: China
Description: -
Title: Liuzhou Iron & Steel
Place: China
Description:
Further reading
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Insights Report
This report builds on the above mentioned key findings in detail and drives further into the module level summaries
See insights report
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Technical FAQs
These FAQs explain technical aspects of how the ACT methodologies are used to assess companies in high emitting sectors and create WBA’s Heavy Industries Benchmark.
See FAQs
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Benchmark data set
Our 2024 Heavy Industries Benchmark measures the world’s 91 most influential companies in the sector on their alignment with the Paris Agreement goal of limiting global warming to 1.5° C and their contributions to a just transition. This data sheet compiles company-level information, module and indicator scoring.
See datasheet
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Press release
Read or download the 2024 Heavy Industries Benchmark news announcement
See press release