Sustainability at the Core of Industrial Strategy

AZA Aceros, a key player in Chile’s steel sector for over six decades, has published its 2024 Reporte de Sostenibilidad, showcasing its achievements in environmental stewardship, social inclusion, and ethical governance. The report illustrates how the company’s business model is deeply rooted in circular economy principles, recycling, social collaboration, and transparent growth. CEO Hermann von Mühlenbrock stated, “This report is more than a corporate milestone; it is a reaffirmation of our role in building a sustainable future for Chile.”

Massive Volumes of Scrap Transformed

One of the most striking figures in the report is the recycling of 568,000 metric tons of ferrous scrap annually, a volume equivalent to almost 80% of Chile’s total domestic steel demand. This scrap is sourced from urban construction debris, dismantled machinery, car wrecks, and household appliances. It is processed using electric arc furnace technology, a method that emits roughly 75% less CO₂ compared to traditional blast furnace production. By relying on secondary raw materials, AZA reduces pressure on natural resources while contributing to global climate goals.

Empowering 17,000 Base Recyclers

AZA’s recycling operations are supported by a vast network of over 17,000 base recyclers, also known as recicladores de base. These informal workers, often from low-income and migrant communities, collect and deliver scrap material to AZA’s processing centers. The company works closely with municipal programs and NGOs to provide these individuals with safety training, financial literacy workshops, protective gear, and guaranteed minimum pricing for collected material. According to AZA’s social team, these programs have led to a 40% increase in recycler income since 2020.

Employment Engine Across the Nation

Beyond recyclers, AZA’s operations provide employment for approximately 20,500 people across Chile. This figure includes 1,200 direct employees in AZA’s three main plants, Renca, Colina, and Talcahuano, along with subcontractors, transportation services, and community-led environmental and education projects. In collaboration with local technical institutes, AZA has also created vocational training programs that prepare young people for careers in metallurgy, welding, and industrial maintenance, especially in underserved regions.

Greener Steel for the Construction Sector

With the construction industry accounting for nearly 10% of Chile’s GDP, AZA’s environmentally-friendly steel has become a preferred material among sustainable infrastructure developers. The company’s EAF-produced steel rebar and beams are certified under international standards for low-emission construction materials. The report highlights recent projects, such as public housing in Santiago and school facilities in Valparaíso, where AZA’s recycled steel was chosen to meet LEED and EDGE certification requirements.

Transparent Metrics & Global Benchmarks

AZA’s 2024 report aligns with Global Reporting Initiative  and Sustainability Accounting Standards Board frameworks. It includes verified metrics on energy use, water consumption, worker safety, emissions, and waste reduction. Notably, AZA achieved a 12% reduction in industrial water use compared to 2023 and recorded zero fatal accidents across all sites. The company also disclosed its Scope 1 and Scope 2 emissions, with targets to reach a 30% reduction in CO₂ by 2030, in line with the Science Based Targets initiative.

Aligning with Chile’s 2050 Climate Goals

Chile’s government aims to become carbon-neutral by 2050, with a roadmap that includes sustainable industry transformation, waste valorization, and circular economy legislation. AZA Aceros’ business model supports these national goals by reducing the environmental footprint of a traditionally high-emission sector. Minister of Environment Maisa Rojas praised the company’s efforts, stating, “AZA is showing that decarbonization and job creation can go hand in hand.” The company has also joined the Pacto Chileno de los Plásticos and the Mesa Nacional de Economía Circular.

A Replicable Model for Latin America

AZA Aceros’ integrated approach, blending environmental responsibility, social equity, and industrial efficiency, has caught the attention of peers across Latin America. Delegations from Peru, Colombia and Argentina have visited AZA’s Renca plant to study its circular supply chain and social engagement models. With global steel demand projected to grow by 30% by 2050, industry leaders are now looking to examples like AZA to guide future transitions toward low-carbon growth and inclusive development.

Key Takeaways

• AZA Aceros recycles 568,000 metric tons of steel scrap yearly, avoiding substantial CO₂ emissions and reducing pressure on natural resources.

• The company partners with over 17,000 grassroots recyclers, offering training, financial support, and job formalization, improving livelihoods.

• Through its 2024 Sustainability Report, AZA outlines transparent ESG progress and aligns with both international standards and Chile’s 2050 climate Vagenda.