Worldsteel: Global steel industry expands sustainability reporting

The World Steel Association (worldsteel) has released its Sustainability Indicators Report 2025, presenting a significantly expanded view of the global steel industry’s environmental, social, and governance (ESG) performance. The latest edition includes 19 indicators, up from eight previously, and introduces a revised greenhouse gas (GHG) accounting method aligned with international standards.

Broader scope and updated methodology

For the first time, worldsteel’s emissions data now covers methane (CH₄) and nitrous oxide (N₂O), alongside carbon dioxide, as well as upstream mining emissions. This adjustment, consistent with the GHG Protocol and Science Based Targets initiative (SBTi) guidance, raises reported emission intensity figures but reflects improved transparency rather than an actual increase in emissions.

In 2024, global GHG emissions intensity averaged 2.18 tonnes of CO₂ equivalent per tonne of crude steel, compared to 1.92 tonnes of CO₂ under the earlier methodology. Energy intensity stood at 20.95 GJ per tonne, while material efficiency — the share of solid materials converted into products and co-products — was 92.8%.

Industry-wide participation

Data for the 2025 report was submitted by 93 companies and associations representing more than 959 million tonnes of crude steel production, or roughly half of global output. Seventeen worldsteel members provided full data sets across all 19 indicators, including Tata Steel, Tenaris, Gerdau, JFE Steel, USIMINAS, and Mobarakeh Steel Company.

The report also recognises 34 Sustainability Charter Members and 14 Sustainability Champions, with Tata Steel and Tenaris maintaining their champion status for the eighth consecutive year.

Safety, diversity, and innovation

On the social side, the industry reported a continued decline in the lost-time injury frequency rate, falling to 0.72 injuries per million hours worked. Women represented 11.4% of the total workforce and 14% of board members, reflecting modest but growing gender diversity. Companies also devoted an average of 0.08% of revenue to community investments.

Investment in innovation and product development rose to 8.3% of revenue, the highest figure since tracking began, while the economic value distributed to society — including wages, taxes, and dividends — reached 100.7% of revenue in 2024.

Expanding indicators and focus areas

The inclusion of new indicators marks a step towards a more holistic understanding of the sector’s sustainability performance. Fresh metrics now track renewable energy use, air emissions, freshwater consumption, supply chain assessments, and business ethics training.

Worldsteel says the expanded framework better reflects the interlinked nature of sustainability challenges and supports more consistent benchmarking across regions and production routes.

Long-term outlook

Despite high energy requirements and complex decarbonisation challenges, the steel industry remains committed to its role in enabling a low-carbon economy. With the revised indicators and updated methodology, worldsteel aims to strengthen transparency and provide a more accurate picture of the industry’s transition towards climate neutrality.

Source: Worldsteel, Photo: Fotolia