Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The Global Steel Climate Council (GSCC) has released its new Steel Climate Standard to measure and report carbon emissions after its comment period ended. 


The standard is process-agnostic and mandates science-based emission targets that equally apply to all steel manufacturers globally. The Steel Climate Standard is auditable, inclusive, and transparent in its single-focused design for members. Customers will be able to to know the carbon emissions of steel purchased and know members are aligning with the Paris Climate Agreement’s emission reduction goals for net zero by 2050.


“Creating a dual standard would allow high-carbon emissions steel to be prioritized over lower-carbon steel. This would serve to discourage innovation and allow high-carbon steelmakers to postpone making changes in their production process,” said Greg Murphy, executive vice president of business services and general counsel at Nucor and Chair of the GSCC in reference to a sliding scale system proposed by other agencies. 


“No steel should be called clean, green, low-carbon, or responsible if its production generates four or five times as many greenhouse gas emissions as the same steel made by a competitor with a cleaner process,” said Steel Manufacturers Association (SMA) president Philip K. Bell.


Leon Topalian, chair, president and chief executive officer of Nucor noted, “It can also guide governments, steel customers and other stakeholders to encourage policies and practices that support this pivotal path to net zero.”


Mark D. Millett, chairman and chief executive officer of SDI added, “Lower-carbon steel is necessary for the transition to a lower-carbon global economy. This new standard will accelerate the actual reduction of greenhouse gas emissions and provide key decisionmakers with transparent and consistent data to make informed decisions.”


Nucor, SMA, and SDI are founding members of the GSCC.