Volvo Cars, Vattenfall BA Wind, Siemens Gamesa and Iberdrola have announced their commitment to 100% net zero steel.
They have joined SteelZero, an international initiative led by the Climate Group in partnership with Responsible Steel, which brings together businesses to speed up the net zero transition of the industry.
All the companies have set interim targets of using 50% low emission steel by 2030 and achieving net zero by 2050.
Steelmaking is said to be one of the biggest emitters of CO2 currently, with total carbon emissions from the steel sector alone accounting for around 7% of global annual emissions.
Volvo Cars has become the first automotive manufacturer to join the initiative, signalling its desire to lead the way in the use of steel products and materials that are responsibly-sourced and produced.
Steelmaking is a major source of CO2 emissions. We want to change that. As the first car maker to join the #SteelZero initiative, we commit to sourcing more zero-carbon steel. By 2050, all the steel we source should be net-zero steel.
— Volvo Cars (@volvocars) May 31, 2022
In addition, by joining SteelZero, Iberdrola, Vattenfall and Siemens Gamesa are ensuring the materials used in the production of renewable energy infrastructure are aligned with a zero carbon world.
Jen Carson, Head of Industry at Climate Group said: “This group of businesses from two highly influential sectors committing to SteelZero, marks a significant step change in the demand signal for low emission and net zero steel. Both renewable energy and automotive sectors play a key role in driving the net zero transition.
“In doing so they’re supporting the creation of a decarbonised steel market that can enable each sector to meet their net zero targets.”
The new members join a group of organisations, including Maersk, Ørsted and Lendlease, that have committed to drive demand for low emission and net zero steel from across all sectors.
Kerstin Enochsson, Chief Procurement Officer at Volvo Cars added: “We are pleased to join the SteelZero initiative and support its ambitions to transform the steel industry.
“By signalling our demand for responsibly sourced low and zero carbon steel, we aim to help drive an increased supply to our sector. A sustainable approach to steelmaking is not just good news for the environment, it is also good business as it limits our exposure to future climate risks and regulations.”