ESG Database
Keeping up with the ESG efforts of global companies
Our ESG Database shows companies' ESG performance based on their CSR reports,
allowing you to view their decarbonization efforts and compare your performance
to your industry peers.
Steel Industry
Steel is a widely-used and essential material in our daily lives. The industry's greenhouse gas emissions account for about 11% of the world's total, making it a major electricity consumer and one of the primary targets for emissions regulation or carbon tax imposition.
The upstream segment of the steel industry involves raw materials such as coal, iron ore, ferronickel, and ferrochrome. In particular, coking coal and iron ore are the major raw materials for blast furnace steelmaking, which is currently the primary steelmaking method, hence the sustained high demand for both. The midstream segment covers the production of various types of steel bars, plates, coils, and wires, which are produced using blast furnaces or electric arc furnaces (EAFs). The operation of a blast furnace involves adding iron ore, coking coal, and flux, and injecting hot air from the lower part of the furnace to generate gases for iron ore reduction, resulting in molten iron and slag. However, there has been a controversy about its environmental impacts due to raw material mining. Electric arc furnaces use a high-voltage power supply system to generate high temperatures for melting scrap in the steelmaking process, with electricity being the primary power. Although EAF steelmaking does not involve raw material mining, the process consumes a large amount of energy, and its environmental friendliness depends on the type of energy source used. The downstream segment of the steel industry encompasses the application of steel in various machinery, transportation equipment, molds, and construction projects, making the recycling of scrap a key issue.
Carbon reduction and the percentage of renewable energy used are crucial to maintaining competitiveness across the steel industry. Therefore, companies must take more proactive action to address the upcoming challenges.