Metal Industry News

SDI Targets Carbon Neutrality by 2050

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Steel Dynamics Inc., Fort Wayne, Ind., has announced a goal of achieving carbon neutrality by 2050 for its EAF steel mill operations. To achieve this target, the company also set interim emissions reduction and renewable energy milestones to be achieved by 2025 and 2030.

On the path to carbon neutrality, Steel Dynamics is targeting a 20 percent Scope 1 and Scope 2 combined greenhouse gas emissions intensity reduction across its EAF steel mills by 2025 and a 50 percent reduction by 2030, compared to a 2018 baseline. Additionally, the company plans to increase the use of renewable electrical energy for its EAF steel mills to 10 percent by 2025 and 30 percent by 2030.

"Our commitment to all aspects of sustainability is embedded in our founding principles - valuing our teams, our partners, our communities, and our environment," stated Mark D. Millett, Chairman, president and CEO. "As evidence of our ongoing commitment, our Scope 1 and Scope 2 emissions are already among the lowest in the industry. We are embarking on a path to carbon neutrality from a position of strength –and we are committed to the continued reduction of our environmental footprint."

Based on International Energy Agency recommendations for the steel sector, Steel Dynamics' current steelmaking operations already fall within the 2050 intensity targets designed to meet the Paris Agreement and its 2-degree C scenario. Further, the company is aligned with the Science Based Targets Initiative as its EAF steel mills plan to meet the SBTi "well below 2-degree C" scenario target for Scope 1 and 2 combined emissions intensity by at least 2030, based on the Iron & Steel Sectoral Decarbonization Approach.

"Steel is a vital resource in building a sustainable future," said Millett. "With these new targets and a proven track record of progress, we are demonstrating that steel must continue to play a critical role in the 'green' transition."

The announcement was lauded by Ceres, a nonprofit organization working with capital market leaders on sustainability initiatives.

“Steel Dynamics set the bar high for U.S. steelmakers with its pledge to cut its carbon emissions intensity in half by 2030 and become carbon neutral by 2050 in its electric arc furnaces,” said Dan Seligman, director of clean energy solutions at Ceres. “We look forward to observing and supporting implementation across the company's footprint. As steelmakers like Steel Dynamics set and move toward stronger sustainability targets, investors can better gauge which companies are effectively managing their carbon risk and which are not.”

 

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