Nippon Steel

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.

Nippon Steel has set a target to reduce its total scope 1 and 2 emissions by 30% by 2030 compared to 2013 and to achieve carbon neutrality in 2050. Between 2018 and 2022, the company reduced its scope 1 and 2 emissions intensity by almost 1% annually. This contrasts with the company’s 1.5º pathway, which requires it to decrease its emissions intensity by 2.8% annually in the next 5 years. Further, 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.

Nippon Steel should disclose the climate-related expertise and experience of its board members as well as the board incentives for managing the low-carbon transition. Additionally, it should provide a well-defined timescale, stakeholder feedback process and a review and update process for its low-carbon transition plan. No evidence was found that the company discloses revenue generated from low-carbon products and services. Although the company incorporates decarbonisation actions in its business model, it should describe detailed information about these actions, including their scope.

Nippon Steel should disclose complete data to calculate its future emissions intensity trend. Furthermore, next to disclosing its total R&D expenditure, the company should disclose the expenditure allocated to mature and non-mature low-carbon technologies. It should also detail the extent and maturity of its existing interventions for reducing emissions for purchased products.

Nippon Steel does not disclose whether its procurement policy includes climate-related expectations for suppliers. Also, it does not publicly disclose its supplier and client engagement strategies. Although the company publicly supports climate policies and the Paris Agreement, it is also actively engaged in negatively-positioned climate policies. Furthermore, the company retains memberships and executive positions in several key industry associations opposing climate policy. There is no evidence that Nippon Steel has an action plan detailing its response when the associations it is a member of take a climate-negative stance, nor a process to review its memberships. No evidence was found that the company has a process to ensure its policy positions are consistent with the Paris Agreement goals.

Nippon Steel discloses its scope 1, 2 and 3 emissions data and has a target to reduce its scope 1 and 2 emissions by 30% by 2030. The company also aims to achieve carbon neutrality by 2050. However, it does not have targets for scope 3 emissions originating from its supply chain.

Nippon Steel is investing in low-carbon technologies, such as integrating hydrogen into manufacturing processes, and is also trying to improve its existing processes. However, it does not report its low-carbon capital expenditure and R&D information to support its improvement of existing processes and low-carbon technology development. Similarly, its business plan includes emissions reduction through low-carbon products, yet it does not report the proportion of revenue generated from low-carbon products and services. The company is also a member of trade associations with climate-negative or mixed activities or positions.

Nippon Steel has almost achieved its 2030 emissions target, although its current emissions trend is fluctuating. The company has tried to reduce carbon dioxide emissions by starting commercial operations of high-grade steel production in large-size electric arc furnaces (EAFs). To align with a 1.5°C pathway, the company should actualise all the three strategies mentioned in its transition plan including hydrogen injection into blast furnaces, hydrogen direct reduction of iron and high-grade steel production in large size EAF.

Nippon Steel has been investing in the COURSE 50 process, high-grade steel production in large size EAF and new technologies related to hydrogen use in steelmaking. The company reported that its R&D expenditure for the past three years was around USD 1.75 billion. However, the company should clearly disclose its respective investments in mature and non-mature climate technologies.

Nippon Steel has a low-carbon transition plan, which sets out emissions targets for 2030 and 2050 and includes high-grade steel production in large-size EAFs, hydrogen-based direct reduction of iron, and carbon reduction with hydrogen in blast furnaces. The company also describes actions that it plans to initiate to achieve its targets. However, the company should also disclose the financial implications and process for reviewing and updating its transition plan and reporting its progress.

The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show 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.

No company policies or commitments related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain. However, the company does have a grievance mechanism available to workers and affected stakeholders.

The company discloses the gender of its workforce by employee category. However, no other evidence of the company’s policies or commitments related to key decent work issues was found in the public domain. These issues include the provision of safe, secure and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.

No company policies or commitments related to key ethical business topics – personal data protection, tax, bribery and corruption, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its business relationships.