World’s top 50 steel producers: Less than 50 % have set net zero emission targets

A recent report by Global Energy Monitor and the Leadership Group for Industry Transition, hosted at the Stockholm Environment Institute, reveals that fewer than half of the world’s top 50 steel producers have set net zero emission targets, with even fewer tracking the full scope of their emissions. This shortfall poses challenges to the industry’s efforts to meet global climate targets by 2050.

The report underscores that while 20 companies now aim for net zero by 2050 or earlier—an increase from 17 in 2023—substantial gaps remain. “The increase in target reporting among the top 50 steel producers is a positive sign of progress, yet it falls short of what is needed to reach net zero by midcentury,” notes Caitlin Swalec, Program Director for Heavy Industry at Global Energy Monitor.

Although some steel producers have made strides, many still lack specific goals and intermediate milestones to guide progress. For example, only 17 companies have set 2030 emissions reduction targets, which is a decrease from the previous year. Additionally, 23 of the top 50 producers have not outlined concrete milestones, such as a 2030 target, making the path to net zero by 2050 more challenging.

The steel industry accounts for an estimated 7–9% of direct global greenhouse gas emissions, with the International Energy Agency indicating that CO₂ emissions from heavy industries must decrease by 93% to meet the 2050 net zero goal. However, the reliance on high-emissions steelmaking technologies among the top 50 steel producers means they contribute over 60% of the sector’s total emissions, according to data from the World Steel Association.

A significant issue is the limited adoption of comprehensive emissions tracking. Only 15 companies have clearly defined which emission scopes—Scope 1 (direct production), Scope 2 (purchased electricity and steam), and Scope 3 (indirect supply chain emissions)—they plan to address in their net zero commitments. Just four companies include measures across all three scopes, with three of them targeting net zero by 2050 and one aiming for an earlier date.

“Greater transparency from steel producers is essential to demonstrate commitment to decarbonisation,” emphasizes Eileen Torres Morales, Analyst at the Leadership Group for Industry Transition. She adds that “while some companies have made initial progress, clearer plans are needed from the majority to reach net zero by 2050, including plans for specific emission scope reductions.”

Source: Global Energy Monitor, Photo: Fotolia