Salzgitter

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.

Salzgitter has set a target to lower its scope 1 and 2 emissions by 30% by 2025 and by 50% by 2030 compared to 2021 levels. Further, the company has set intermediate emissions reduction targets at an adequate interval of five years to drive near-term action towards decarbonisation over the longer term. However, the company still lacks adequate commitment towards 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.

Salzgitter has a low-carbon transition plan, conducts climate scenario analysis and briefly discloses its progress and material changes against its transition plan, along with the feedback collection process. However, the plan still lacks a well-defined timescale. Also, the company does not disclose whether it has a process to review and update its transition plan. Further, even though Salzgitter discloses its revenue from low-carbon activities and products, the proportion of this revenue remains low. While the company has set out decarbonisation actions in its business model, it should describe detailed information on these actions, including their scope.

No evidence was found that Salzgitter’s projected scope 1 and 2 emissions intensity is expected to decrease in alignment with the sectoral-level ambitions for emissions reduction. The company reports its total R&D expenditure and the amount allocated to low-carbon technologies and to non-mature climate technologies; however, the proportion of this investment remains low. Also, it does not detail the extent or the maturity of its existing interventions to reduce emissions for purchased products.

Salzgitter does not publicly disclose supplier and client engagement strategies or whether it has quantifiable requirements for emissions reductions for suppliers. Furthermore, the company does not publicly publish a list of the trade associations it is a member of, nor whether it is a member of any associations that oppose climate-aligned activities or positions. Additionally, there is no evidence that the company has a publicly available action plan detailing its response when the associations it is a member of take a climate-negative stance, nor a process to review its membership in such associations. No evidence was found of the company having a process to ensure its policy positions are consistent with the Paris Agreement goals.

Salzgitter discloses its scope 1, 2 and 3 emissions data. It also has a target to reduce its scope 1 and 2 emissions by 50% and scope 3 emissions by 25% by 2030, along with a final target to reduce 90% of its total scope 1, 2 and 3 emissions by 2050. The company could additionally set targets for other decarbonisation actions, such as its low-carbon investments.

Salzgitter has a goal to achieve a 90% reduction in total emissions by 2050, with interim targets for 2025 and 2030. The company has also initiated capital expenditure and R&D in low-carbon technologies but discloses that it requires funding from the EU for its SALCOS programme to develop low-carbon steel production technology. The company has so far achieved less than 7% of its climate targets and its funding request with the EU is currently pending, which puts the realisation of its transition plan in a vulnerable position.

Salzgitter states that it has achieved less than 7% of its emissions target. The company is trying to reduce carbon dioxide emissions through its low-carbon steel production programme SALCOS. The first of three development stages of the SALCOS programme was implemented by the company in 2022. To align with a 1.5°C pathway, the company needs to actualise all three stages of the SALCOS programme, which involves actively investing in new low-carbon technologies and transitioning to hydrogen and green electricity to reduce the carbon footprint of its steel production by more than 95%.

Salzgitter has been investing in the SALCOS programme, which involves replacing traditional carbon-intensive steelmaking techniques with hydrogen and green electricity. The company reported that its R&D expenditure for the past three years was around USD 294 million, of which 5% was spent on low-carbon technologies and 6% on non-mature low-carbon technologies.

Salzgitter has a low-carbon transition plan, which sets out targets for 2025, 2030 and 2050, and lays out the company’s reliance on its SALCOS programme. The SALCOS programme involves incrementally switching steel production to a hydrogen-based route. The company also describes the actions and stages of its transition plan. However, it should disclose information on the financial implications and the review and updating process for its transition plan, as well as its process for reporting 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. The company discloses its actions to provide training opportunities for workers and affected stakeholders. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

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.

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 age of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity, or of a company commitment towards promoting gender equality and women’s empowerment.

No evidence was found that the company commits to protecting personal data and 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. While the company has a policy prohibiting bribery and corruption, no evidence was found that it includes corresponding clauses in its business relationship contracts. 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.