Protocol Pathways & Procurement Prerogatives: Forging Steel’s Future

As the race toward net-zero intensifies, many companies struggle to decarbonise their steel value chains directly due to financial or technical constraints. WWF’s latest steel procurement toolkit tackles this conundrum by introducing producer-focused standards, certifications, also potential market instruments like Environmental Attribute Certificates. These tools offer a flexible, scalable approach to accelerate corporate climate action without requiring control over the entire steelmaking process. By aligning procurement with global decarbonisation standards, businesses can contribute to emissions reductions while fostering innovation across the supply chain.

Ecological Earmarks & Emissions Exchange: Emergence of EAC Mechanisms

Environmental Attribute Certificates, long used in renewable energy trading, are being explored for hard-to-abate sectors like steel. Both the Greenhouse Gas Protocol and Science Based Targets initiative are currently evaluating how EACs could be used to credibly count toward emission abatement targets. These certificates could represent the environmental attributes, such as lower CO₂ emissions, associated with a particular batch of steel. While currently under review, the integration of EACs into official GHG accounting may provide a pathway for companies to support clean steel production even when direct procurement is unfeasible.

Responsible Ratings & Rigorous Requirements: Rise of ResponsibleSteel

Among the most comprehensive frameworks is ResponsibleSteel, a global certification system assessing environmental, social, & governance factors across the steel lifecycle. It introduces four graded performance levels based on emissions intensity per metric ton of steel, adjusted for recycled content. For instance, Level 4 represents near-zero emission steel, allowing corporations to align procurement with specific climate goals. It also assures transparency through third-party audits, establishing trust between buyers, suppliers, and regulators alike.

Carbon Calculus & Chain Clarity: WRI’s GHG Protocol for Steel

The World Resources Institute manages the Greenhouse Gas Protocol, the dominant methodology for emissions reporting. For steel, it defines clear methods to measure carbon intensity across Scope 1, 2, also 3 emissions. Although it does not prescribe numerical targets for green steel, it forms the accounting backbone for climate disclosures. This standard helps steel-consuming industries systematically track emissions embedded in purchased materials, laying the groundwork for informed procurement decisions.

Custodial Clarity & Corporate Confidence: World Steel’s Chain-Of-Custody Protocols

The World Steel Association contributes further granularity via its Chain-of-Custody protocols. These documents guide steel producers on how to allocate emission reductions to specific product lots using traceable methods. While not mandatory, the protocols offer a transparent methodology to ensure that low-emission claims are verifiable and product-specific. This builds integrity into product marketing, allowing companies to avoid accusations of greenwashing while differentiating sustainable offerings in the market.

Metallurgical Metrics & Measurement Mandates: ISO 14404’s Methodologies

The ISO 14404 series provides detailed formulas to evaluate plant-level CO₂ emissions intensity. It enables steelmakers to quantify total carbon emissions per metric ton of output across the entire site. This data is essential for verifying compliance against internal or external benchmarks, especially when coupled with buyer standards such as SBTi. The use of ISO 14404 ensures uniformity in how emissions are measured globally, fostering comparability across jurisdictions and supply contracts.

SBTi Synchronisation & Sectoral Specificity: Ironclad Industry Guidance

Steel buyers can now align their strategies using the SBTi Iron & Steel Sector Guidance, which provides a decarbonisation roadmap tailored to the industry. It prescribes methods to set credible Scope 3 targets & suggests approved emissions reduction trajectories. This guidance is especially helpful for large manufacturers like automotive or construction firms, where steel represents a major emissions contributor. By anchoring sourcing decisions in science-based thresholds, companies bolster their ESG credibility while reducing climate risk.

Commencing Clean Commitments & Calculated Criteria: How to Get Started

The WWF toolkit recommends several actionable steps to initiate low-emission steel procurement. First, companies should embed procurement goals into broader sustainability strategies, favouring lighter steel designs & near-zero emission materials. Second, they should prioritise suppliers certified by ResponsibleSteel, ISO 14404, or SBTi-aligned programs. Finally, buyers should engage collaboratively in industry-wide platforms such as SteelZero to consolidate demand signals and build momentum for systemic change. As Amanda Rejström notes, “It’s a decisive moment, corporate buyers can catalyse the steel sector’s transition.”

Key Takeaways

• Producer-focused protocols like ResponsibleSteel, ISO 14404, and WRI's GHG tools support emissions tracking.

• EACs are being explored by GHG Protocol & SBTi to help companies meet targets without direct investments.

• WWF’s toolkit encourages use of certified steel & aligning sourcing strategies with SBTi sectoral guidance.