Marian’s Sustainability Update – October

We took a break over summer and there is definitely a ‘back to school’ feeling in the air. Conference season is certainly ramping up and I’ve had the benefit of two conferences in quick succession over the last week.

But first, if you haven’t seen this (I hadn’t), Influence Map https://influencemap.org/ tracks how businesses and asset owners are using their lobbying influence to impact the climate crisis https://influencemap.org/. Very interesting reading and a reminder of the power that the private sector has if used correctly.

Anyway, back to conferences, the first was Sustainable Steel Strategies, and the second Responsible Asset Owners, so both topics very relevant for our sustainability efforts.

Four key takeaways from these sessions:

78% of Blast Furnace capacity in OECD countries is reaching ‘end of life’ before 2030. So we’re about to find out whether companies choose to re-line their furnaces and lock in carbon emissions from these assets until mid-2040’s.

Around 85% of available scrap is already recovered and reused. So, there isn’t a great deal more that can be recovered to use in EAFs. Whilst the world stock of scrap will increase, projections are that only around 50% of the demand for steel in 2050 can be met by scrap. This underlines the importance of a transition plan for primary production.

The European Business Association estimates that there won’t be a premium for green steel by 2035. Their view is that supply will largely be sufficient to meet demand for green products, and operating cost associated with producing green steel will be lower than conventional production. The ‘winners’ will be those who transition early and therefore benefit from a short-term premium, greater access to incentives, transition subsidies and earlier realisation of operating cost reductions.

Much better collaboration is needed between investors and government. There is not enough awareness of blended finance, policy environment is not supportive enough (think permits and wait times for grid connections), and transition opportunities are not ‘investible’ enough. The only way to unlock this is bringing asset owners and government together in a more structured way, like was done for renewable energy development.

On the subject of policy, we saw the Carbon Border Adjustment Mechanism transition period beginning this month and Tiziana De Feo hosted two excellent sessions, helping our teams in Europe to get to grips with the reporting requirements and potential pitfalls. CBAM and the evolution of the ETS will be a key driver of business performance and strategy within and outside of the EU so this is one that we should all upskill on. Slides here for an excellent introduction.

And finally, we have all been hard at work preparing and collating data from across our businesses to assess and report our environmental, social and economic impact in our 2023 Sustainability Report which will be published next month ahead of COP28. (More on COP28 to come in the next few weeks, keep your eyes peeled to find out more about GFG’s participation and how you can get involved).

ESG Wins of the Month

Commemorating coke ovens and celebrating GREENSTEEL

Australian Prime Minister Anthony Albanese and South Australian Premier Peter Malinauskas visited the Whyalla Steelworks to commemorate the closure of the coke ovens and celebrate our continuing journey towards CN30. Read more here.

Dunaújváros steelworks acquisition: The newly-named LIBERTY Dunaújváros will strengthen our strategic position in the high growth markets of Central and Eastern Europe substantially.  As a first big step in their decarbonisation journey, you will recall that we signed a collaborative agreement with China’s CISDI Engineering Co. to install a 1.5Mtpa capacity Electric Arc Furnace at Dunaújváros, which will cut the plant’s direct CO2 emissions by over 80% and significantly enhance its competitiveness.

Infrabuild safety The Laverton Steel Mill team welcomed Australian cricket legend Steve Waugh as part of their Safe Work Month celebrations. The past 18 months have been outstanding and the team have seen consistent safety results throughout 2023. See video here.

Out & About

Stefan Hakansson, Chief Clean Energy Officer at GFG, delivered an insightful speech at the 2023 Asia Pacific Hydrogen Summit, on the decarbonisation of the steel industry. 🌱

He shared three key challenges and opportunities with the audience, inspiring them to join the GREENSTEEL revolution, and consider the role they can play in creating a cleaner, more sustainable future.

See highlights video here.

What we’re reading

It’s all about the lead up to COP28 and this month’s read from Chatham House What is COP28 and why is it important? | Chatham House – International Affairs Think Tank is a great explainer on the importance of COP and what the key topics for COP28 will be.

Well worth a read ahead of COP28 which starts in just a few weeks in Dubai. If listening is more your thing than reading, a great podcast episode from GARP has this COP28 survival guide –   https://www.garp.org/podcast/cop28-survival-guide-cr-101923