Steel Dynamics

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.

Steel Dynamics aims to achieve a 20% reduction in its combined scope 1 and 2 emissions intensity across its EAF steel mills by 2025, followed by a 50% reduction by 2030, relative to its 2018 baseline. Additionally, the company’s corporate-level strategy to reduce scrap includes a target to reach 29% use of scrap and fossil-free sponge iron by 2025 in Nordic operations. The company also reports total emissions and activity data necessary for emissions intensity calculations. In addition, Steel Dynamics has set a goal for its EAF steel mill operations to be carbon neutral by 2050. However, the company lacks a comprehensive low-carbon strategy for this goal and clear long-term actions to support it. In addition, it only discloses its scope 3 emissions data for its steel mills, creating an inconsistency across its reported data.

Steel Dynamics has set specific emissions reduction targets and outlined short-term actions, including increasing renewable energy use in its EAF steel mills to 10% by 2025 and 30% by 2030. The company’s board regularly reviews climate targets and progress and oversees major capital projects. However, the company has not detailed long-term actions for its transition plan and does not use climate scenario analysis in its strategy. The company’s board regularly reviews its targets and progress and oversees major capital projects. Further, the company lacks management incentives for addressing climate change issues, indicating a potential area to improve the alignment of its objectives with environmental goals.

The company is investing in renewable electrical energy for its EAF steel mills and increasing steel waste recycling to align its business model with the low-carbon transition. In 2022, 82% of the material used in its steel mills was recycled ferrous scrap and internally produced iron. The company’s steelmaking operations exclusively use EAF technology with recycled ferrous scrap as the primary input, which is consistent with its low-carbon vision. However, Steel Dynamics has not publicly disclosed its research and development (R&D) expenditure for the past three years. There is a lack of quantitative data regarding the company’s investment in low-carbon technologies, in particular a breakdown of its investments in both mature- and non-mature climate technologies. Additionally, no company activity has been observed related to patenting of low-carbon technologies.

The company supports the Global Steel Climate Council’s (GSCC’s) Steel Climate Standard to reduce emissions. It has also publicly endorsed significant climate policies and committed to international low-carbon initiatives. However, Steel Dynamics lacks well-defined strategies to encourage its suppliers and clients to reduce emissions. The company has not disclosed any actions or activities targeting supplier emissions reduction. This highlights a potential area for improvement in the company’s environmental impact strategy. The company also lacks a formal policy guiding its engagement with alliances, associations, coalitions or think tanks, specifically on climate change issues.

Steel Dynamics is targeting a 50% reduction in combined scope 1 and 2 emissions intensity across its EAF steel mills by 2030 compared to a 2018 baseline. However, it does not have a comprehensive low-carbon strategy and clear long-term actions for the goal it has set for its EAF steel mill operations to be carbon neutral by 2050.

The company exclusively uses EAF technology with recycled ferrous scrap as the primary input in its steelmaking operations, which is consistent with its low-carbon vision. Moreover, it aims to achieve a 20% reduction in combined scope 1 and 2 emissions intensity across its EAF steel mills by 2025 compared to a 2018 baseline, and has reported progress against this target.

The company discloses its scope 1 emissions, market-based and location-based scope 2 emissions, and scope 3 emissions. However, there is no evidence that the company has a strategy to engage its clients and suppliers to reduce its scope 3 emissions.

The company’s steelmaking operations exclusively use EAF technology with recycled ferrous scrap as the primary input, which is consistent with its low-carbon vision. Further, it is investing in renewable electrical energy for its EAF steel mills and increasing steel waste recycling to align its business model with the low-carbon transition. In 2022, 82% of the material used in its steel mills was recycled ferrous scrap and internally produced iron.

The company reports its progress against its target to achieve a 20% reduction in its combined scope 1 and 2 emissions intensity across its EAF steel mills by 2025. It also has a goal to achieve carbon neutrality for its EAF steel mill operations by 2050. However, the company lacks a comprehensive low-carbon strategy and clear long-term actions for this goal.

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.

While the company commits to respecting human rights, no evidence was found of a company commitment to respect the ILO fundamental rights at work. Furthermore, 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 does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to worker health and safety and gender equality, and it discloses some information on collective bargaining and workforce diversity. However, it can strengthen its disclosure on these subjects, as well as on living wage and working hours.

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.