31 May 2022, London- Four major global businesses - Iberdrola, Siemens Gamesa, Vattenfall BA Wind and Volvo Cars – have today announced their commitment to 100% net zero steel. They’ve joined the international initiative SteelZero, led by Climate Group in partnership with Responsible Steel. All of them have set ambitious interim targets of using 50% low emission steel by 2030, setting a clear pathway to being net zero by 2050.
SteelZero brings together businesses to speed up the net zero transition of the steel industry. By harnessing the collective purchasing power and influence of its members, SteelZero sends a strong demand signal to shift global markets and policies towards responsible production and sourcing of steel.
Iberdrola and Vattenfall BA Wind are both significant players in the renewable energy sector as leading providers of off- and on-shore wind power. Siemens Gamesa builds, develops and supplies wind turbines for businesses like Iberdrola and Vattenfall BA Wind. By joining, these businesses are ensuring the materials used in the production of renewable energy infrastructure are aligned with a zero-carbon world.
Meanwhile, Volvo Cars becomes the first automotive manufacturer to join Steel Zero. By doing so, the company is signalling to the steel industry and the wider automotive sector its desire to lead the way in the use of steel products and materials that are responsibly sourced and produced. With 12% of the crude steel developed worldwide in 2020 destined for the transport sector, Volvo Cars commitment sets a significant precedent and challenge to the wider industry. Today Volvo Cars also become a member of SteelZero’s technical partner, ResponsibleSteel, strengthening its climate leadership on steel.
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.”
Francisco Laveron, Head of Energy Prospective, Innovation and Sustainability Division at Iberdrola, said: "Iberdrola is investing billions of euros in renewable energy, smarter grids and energy storage to support global net zero ambitions through electrification of the economy. We are also committed to finding green solutions for the hard to abate sectors, and we are at the forefront of developing new concepts such as green hydrogen. We look forward to collaborating with the other members of SteelZero, and to help establish alliances and a roadmap that leads to a zero emissions future for the production of steel."
Dietmar Dresp, Head of Procurement at Siemens Gamesa, said: “Siemens Gamesa is very pleased to join the SteelZero Initiative. We truly believe that we need to work together along the whole value chain in order to accelerate the decarbonization of the steel sector. At Siemens Gamesa, we are looking forward to being part of this initiative as value chain collaboration will be the main catalyst to achieve our net zero targets.”
Helene Biström, Head Vattenfall Business Area Wind: “Vattenfall has pledged to halve greenhouse gas emissions from its supply chain by 2030. For Vattenfall BA Wind a large part of the supply chain emissions comes from steel. By committing to SteelZero, we aim to join forces with other industry players and in that way speed up the transition to a responsible, net zero steel industry.”
Kerstin Enochsson, Chief Procurement Officer at Volvo Cars, said: “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.”
The new members join a group of forward-looking businesses, such as Maersk, Ørsted and Lendlease, that are committed to driving demand for low emission and net zero steel from across all sectors.
Steelmaking is currently one of the biggest emitters of CO2 globally, despite the fact that technologies exist for its production to be decarbonised. Total carbon emissions from the steel sector alone account for around 7% of global annual emissions, and this is projected to rise in line with increasing demand.
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Notes to Editors
About Climate Group
Climate Group drives climate action. Fast. Our goal is a world of net zero carbon emissions by 2050, with greater prosperity for all. We focus on systems with the highest emissions and where our networks have the greatest opportunity to drive change. We do this by building large and influential networks and holding organisations accountable, turning their commitments into action. We share what we achieve together to show more organisations what they could do. We are an international non-profit organisation, founded in 2004, with offices in London, Amsterdam, Beijing, New Delhi and New York. We are proud to be part of the We Mean Business Coalition. Follow us on Twitter @ClimateGroup.
Iberdrola is one of the world's biggest energy companies and a leader in renewables, spearheading the energy transition to a low carbon economy. The group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola’s main markets include Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others.
With a workforce of nearly 40,000 and assets in excess of €141.7 billion, the company posted revenues of €39 billion and a net profit of over €3.9 billion in 2021. Across the world, Iberdrola helps to support 400,000 jobs across its supply chain, with annual procurement of €12.2 billion. A benchmark in the fight against climate change, Iberdrola has invested more than €130 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles.
SteelZero is a global initiative bringing together forward-looking organisations to speed up the transition to a net zero steel industry. Led by international non-profit the Climate Group in partnership with ResponsibleSteel, organisations that join SteelZero make a public commitment to procure, specify or stock 100% net zero steel by 2050. By harnessing their collective purchasing power and influence, SteelZero is sending a strong demand signal to shift global markets and policies towards responsible production and sourcing of steel. #SteelZero
About Siemens Gamesa
Siemens Gamesa unlocks the power of wind. For more than 40 years, we have been a pioneer and leader of the wind industry, and today our team of more than 26,000 colleagues work at the center of the global energy revolution to tackle the most significant challenge of our generation – the climate crisis. With a leading position in onshore, offshore, and service, we engineer, build and deliver powerful and reliable wind energy solutions in strong partnership with our customers. A global business with local impact, we have installed more than 122GW and provide access to clean, affordable and sustainable energy that keeps the lights on across the world. To find out more, visit www.siemensgamesa.com and connect with us on social media.
ResponsibleSteel’s mission is to maximise steel’s contribution to a sustainable society. A not for profit organisation, ResponsibleSteel is the industry’s first global multi-stakeholder standard and certification initiative. With members from every stage of the steel supply chain, ResponsibleSteel is developing an independent certification standard to ensure businesses and consumers can be confident that the steel they use has been sourced and produced responsibly at every stage.
About Vattenfall BA Wind
Business Area Wind is responsible for development, construction and operation of Vattenfall’s wind farms as well as for large-scale and decentralized solar power and batteries. Vattenfall is one of the largest producers of offshore wind power in the world and also one of the largest producers of onshore wind power in Denmark and the Netherlands. Business Area Wind operates in 5 counties and generated 11.2 TWh of electricity in 2021
About Volvo Car Group
Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected car brands in the world with sales to customers in more than 100 countries. Volvo Cars is listed on the Nasdaq Stockholm exchange, where it is traded under the ticker “VOLCAR B”.
Volvo Cars aims to provide customers with the Freedom to Move in a personal, sustainable and safe way. This is reflected in its ambition to become a fully electric car maker by 2030 and in its commitment to an ongoing reduction of its carbon footprint, with the ambition to be a climate-neutral company by 2040.
As of December 2021, Volvo Cars employed approximately 41,000 full-time employees. Volvo Cars' head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars' production plants are located in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, Daqing and Taizhou (China). The company also has R&D and design centres in Gothenburg, Camarillo (US) and Shanghai (China).