Kobelco

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

Kobelco has met its past targets and is on track to meeting its existing emissions reduction targets. Further, Kobelco has set a target to reduce scope 1 and 2 emissions in its production processes by 30-40% by 2030, compared to fiscal year 2013 levels, and to achieve carbon neutrality in 2050. However, the company lacks an adequate commitment and horizon for these goals. Moreover, no evidence was found that the company discloses the emissions intensity of its ore-based crude steel production and scrap electric arc furnace (EAF) crude steel production, or the emissions intensity of purchased steel for its operations over the past 3-5 years.

Kobelco discloses evidence of low-carbon transition planning, such as its targets and progress, the financial implications of decarbonisation on the company’s revenues and costs, and short-term and long-term actions for decarbonisation, which include transitioning to 100% hydrogen-based direct reduction for steelmaking and changing increased amount of hot briquetted iron (HBI) into blast furnace (BF) technology. However, no evidence was found of the company having identified climate-related expertise or experience among its board members. Also, the company should cover more assumptions and parameters in its climate scenario analysis. Moreover, even though Kobelco discloses its revenue from low-carbon activities and products, the proportion of this revenue remains low. Though the company has incorporated decarbonisation actions in its business model, it should provide detailed information on these actions, including their scope.

Kobelco should disclose a complete set of emissions data to allow for calculating the company’s emissions intensity trend. Furthermore, though the company discloses its total R&D expenditure and the amount allocated to low-carbon technologies, it should further disclose expenditure allocated to non-mature climate technologies. The company should also detail the extent and maturity of its existing interventions to reduce emissions for purchased products.

Kobelco does not publicly disclose supplier and client engagement strategies. Also, it does not publish a list of trade associations it is a member of, nor whether it is a member of any trade associations that oppose climate-aligned activities or positions. Furthermore, there is no evidence that the company publicly publishes an action plan detailing its response when associations that it is a member of take a climate-negative stance, nor a process to review its memberships in such associations. Additionally, no evidence was found of the company having a process to ensure its policy positions are consistent with the Paris Agreement goals.

Kobelco discloses its scope 1, 2 and 3 emissions data. It also has targets to reduce its scope 1 and 2 emissions by 30-40% by 2030 and to achieve carbon neutrality by 2050. However, the company should clearly state the base year for its 2030 interim target. The company does not have specific targets for scope 3 emissions originating from its supply chain.

Kobelco has a goal to achieve carbon neutrality by 2050, with an interim target for 30-40% emissions reduction by 2030. However, it should set out further interim targets at regular intervals beyond 2030. The company states it is investing in new decarbonisation technology and also trying to improve its existing steelmaking process with blast furnaces, but it does not report its low-carbon capital expenditure to support these efforts.

Kobelco states that it has achieved around 65% of its 2030 interim emissions target. The company is also trying to reduce carbon dioxide emissions in its existing production process by replacing a large quantity of the hot briquetted iron (HRI) manufactured using the MIDREX gas-based shaft furnace process with blast furnaces. To align with a 1.5°C pathway, the company should continue to actualise the MIDREX process by actively investing in new low-carbon technologies and improving its current assets.

Kobelco has been investing in the MIDREX process, which involves using new technologies related to hydrogen use in steelmaking. The company reported that its R&D expenditure for the past three years was around USD 872 million, of which 20% was spent on low-carbon technologies. However, the company should clearly disclose its respective investments in mature- and non-mature climate technologies.

Kobelco has a low-carbon transition plan, which sets out targets for 2030 and 2050. It includes spreading the use of carbon-free hydrogen produced with electricity from renewable energy in its steelworks, specifically to EAFs. The company also describes actions it plans to initiate to achieve its targets. However, it should disclose the financial implications and the reviewing and updating process for its transition plan, as well as its process for reporting progress.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found of the company’s assessment of employment dislocation risks. Further, no public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies the impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to their social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights. However, no evidence was found that the company commits to respecting the ILO fundamental rights at work or expects its business relationships to make the same commitment. No evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its operations and supply chain, or of the company disclosing the stakeholders whose human rights have been affected by its activities. The company has a grievance mechanism available to workers, but there is no evidence that such a mechanism is available to external stakeholders.

While the company commits to respecting the health and safety of its workers, no evidence was found that it expects the same commitment from its business relationships. No evidence was found of the company having a time-bound target for paying all workers a living wage. Additionally, no evidence was found that the company discloses the proportion of its direct workforce covered by collective bargaining agreements or its required working hours. The company discloses the gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. No evidence was found that the company commits to gender equality and women’s empowerment.

No evidence was found that the company commits to protecting personal data or has a privacy statement regarding the collection, sharing and access to personal data. No relevant disclosure was found of the company’s global tax strategy and the corporate income tax it pays in each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. However, no evidence was found that the company has a lobbying and political engagement policy or that it specifies that it does not make political contributions. No relevant disclosure was found of the company’s expenditure on lobbying activities.