SSAB’s updated climate goals approved by the Science Based Targets initiative
SSAB’s near- and long-term carbon emissions reduction targets have been approved by the Science Based Targets initiative (SBTi). Approval means that the targets are scientifically based and in line with the SBTi’s raised requirements for companies to deliver on the goal of limiting global warming to 1.5°C.
SSAB’s now validated long-term target is to reach net-zero greenhouse gas emissions for Scope 1, Scope 2 and Scope 3 by 2045*. The updated near-term target is a reduction of 48 percent in greenhouse gas emissions in Scope 1, Scope 2 and parts of Scope 3 by 2033 compared with 2018 as the base year. It is a raised ambition compared with SSAB’s previously validated near-term target of a 35 percent reduction in Scope 1 and Scope 2 emissions by 2032 compared with 2018.
The approval makes SSAB one of the first steel companies globally to receive validated decarbonization targets according to the SBTi’s steel sector guidance released in 2023. The updated targets include for the first time Scope 3 emissions, that is indirect emissions resulting from activities in the supply chain. The targets build on SSAB’s overall strategy to transform the Nordic blast furnace-based production system into fossil-free mini-mills in around 2030, thereby largely eliminating CO2 emissions from our own operations (Scope 1 and 2)**.
“Updating and validating our climate targets are important to ensure we’re aligned with the latest climate science and doing our part to limit global temperature increases. With our Nordic transformation, we are largely eliminating CO2 emissions from our own steelmaking process. Simultaneously, we are working with our suppliers and customers to cut indirect greenhouse gas emissions from all parts of the value chain,” says Christina Friborg, Executive Vice President and Head of Sustainability at SSAB.
SBTi is an organization that encourages companies to set science-based targets that increase their competitiveness in the transition to a low-emission society. The targets define how much and how quickly a business must reduce its emissions to be in line with the Paris Agreement goals. This currently includes limiting global warming to 1.5°C, which is a higher bar compared with the organisation’s previous minimum level of ‘’well below 2°C” for the steel sector.
Eligible companies must set emissions reduction targets for three categories called Scope 1, 2 and 3. Scope 1 covers direct emissions resulting from a company’s own operations, for example fossil fuel combustion. Scope 2 covers indirect emissions from purchased energy (mainly electricity), and Scope 3 covers other indirect emissions resulting from activities in the value chain, for example the production of raw material, transportation and processing of sold products.
SSAB is in the process of replacing its Nordic blast furnace-based production system with state-of-the-art mini-mill technology and electric arc furnaces that run on fossil-free electricity. Once completed, the transformation will eliminate about 10 percent of Sweden’s and 7 percent of Finland’s total CO2 emissions.
*The long-term Scope 3 target includes greenhouse gas emissions from purchased goods and services, fuel- and energy-related activities, upstream transportation and distribution, and processing of sold products. The near-term target includes the same except processing of sold products.
**SSAB’s strategy was not part of the validation process.
For further information, please contact:
Anna Molin, Press Officer, SSAB, anna.molin@ssab.com, tel. +46 76 110 46 76
SSAB is a Nordic and US-based steel company that builds a stronger, lighter and more sustainable world through value added steel products and services. Working with our partners, SSAB has developed SSAB Fossil-free™ steel and plans to reinvent the value chain from the mine to the end customer, largely eliminating carbon dioxide emissions from our own operations. SSAB Zero™, a largely carbon emission-free steel based on recycled steel, further strengthens SSAB’s leadership position and our comprehensive, sustainable offering independent of the raw material. SSAB has employees in over 50 countries and production facilities in Sweden, Finland and the US. SSAB is listed on Nasdaq Stockholm and has a secondary listing on Nasdaq Helsinki. Join us on our journey! www.ssab.com, Facebook, Instagram, LinkedIn, X and YouTube.
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