Swiss Steel and thyssenkrupp Become First to Set SBTi Steel Sector Targets

Swiss Steel Holding and thyssenkrupp Steel Europe AG became the first steel companies in the world to set 1.5 degrees Celsius-aligned science-based targets using the Science Based Targets initiative's steel sector guidance, released in September 2023. The steel sector accounts for 7 percent of global energy sector CO2 emissions.

Swiss Steel commits to reach net-zero greenhouse gas emissions across its value chain by 2038. By 2030, using a 2021 base year, the company targets a 23 percent reduction per tonne of hot rolled steel in scope 1, 2 and 3 emissions within the iron and steel core boundary, a 42 percent absolute reduction in all other scope 1 and 2 emissions, and a 25 percent absolute reduction in scope 3 emissions from purchased goods, services and fuel and energy-related activities. By its 2038 net-zero year, Swiss Steel targets a 75.9 percent intensity reduction in its steel core boundary and 90 percent absolute reductions across other scope 1, 2 and 3 categories.

thyssenkrupp Steel Europe commits to net-zero across its value chain by 2045. By 2032, using a 2018 base year, it targets a 38 percent reduction per tonne of hot rolled steel in the iron and steel core boundary, 58.8 percent reductions in other scope 1 and 2 emissions, and 35 percent reductions in other scope 3 emissions. By 2045, thyssenkrupp commits to 93 percent absolute reductions across scope 1, 2 and 3 emissions. The SBTi Steel Guidance developed in September 2023 accounts for global steel demand forecasts, data limitations, technology availability and scrap availability in defining sector-specific pathways.

Over 50 companies across the steel value chain had committed to or set science-based targets using cross-sector methodologies at the time of the announcement, with more than a third committed to net-zero targets. The SBTi published supplementary resources including a Steel Guidance in Brief and Criteria Assessment Indicators to support additional companies through the validation process. For India, the world's second-largest steel producer and home to major producers such as Tata Steel and JSW Steel, the steel sector guidance provides a direct framework for setting 1.5 degree-aligned targets ahead of anticipated regulatory and customer pressure.

Key figure — thyssenkrupp commits to 93% absolute GHG reduction across Scopes 1, 2 and 3 by 2045