A new assessment by international civil society organization SteelWatch has revealed that none of the world’s major steelmakers are currently prepared to transition to near-zero-emissions production, despite widespread climate commitments.
The SteelWatch Corporate Scorecard evaluated 18 leading steel producers across 11 countries, identifying a significant gap between long-term targets and actual implementation.
Low scores reflect limited progress
According to SteelWatch executive director Caroline Ashley, no company scored above 50 out of 100, highlighting a major “transition readiness gap” across the industry.
This gap reflects the difference between the pace of transformation required to meet global climate targets and the current level of action taken by steel producers.
Coal-based production still dominant
The report underlines that coal-based blast furnace operations remain the dominant production route, accounting for up to 90 percent of sectoral emissions.
Despite growing pressure to decarbonize, the shift toward low-emission production technologies has been limited.
Green iron and renewable adoption lag behind
Progress in green iron development and renewable energy integration remains particularly weak, with an average score of less than 1 out of 25 in this category. Although some early developments have been observed, the report indicates that the pace of adoption is insufficient to meet climate targets.
Leading companies still face challenges
Among the evaluated companies, SSAB and Thyssenkrupp ranked highest, with scores of 46.2 and 41.9 respectively. These companies stand out due to plans to phase out blast furnace capacity and develop green iron production, though implementation is still at an early stage.
Lower-ranked producers rely on coal
At the lower end of the ranking, companies such as Hyundai Steel, Nippon Steel and HBIS scored significantly lower. These producers continue to rely heavily on coal-based production, with limited progress in renewable energy usage and green iron initiatives.
Investment misalignment raises concerns
SteelWatch noted that, while most companies have announced net-zero targets, current investment strategies remain misaligned with these commitments.
Although there are signs of progress, such as the absence of widespread new blast furnace construction and initial developments in direct reduced iron capacity, concrete action remains limited.
Urgent need for accelerated decarbonization
The findings highlight the steel sector’s critical role in global emissions, accounting for approximately 10 percent of total carbon output.
SteelWatch emphasized that accelerating investment in low-carbon technologies is essential to closing the gap between targets and implementation and achieving global climate objectives.
