SAP and Salzgitter AG: Pioneers charting the course to green steel

SAP SE and Salzgitter AG are intensifying their long-standing business relationship. Their goal is to jointly expedite the digital transformation of this German steelmaker and create a foundation for climate-friendly steel production. With the migration to the latest SAP technology and components drawn from the SAP sustainability portfolio, the two companies are working together to achieve this aim.
 
Operations conserving resources represent one of the major challenges for the steel industry. By 2045 the sector must reduce their carbon dioxide emissions by 100 percent - a herculean task for the companies concerned. Few, if any, other sectors emit as much carbon dioxide (CO₂) as the steel industry. The steelworks operated by Salzgitter AG alone accounts for around eight million tonnes of CO₂ each year – the equivalent of around one percent of the CO₂ footprint of the whole of Germany. “To address this problem, our Strategy 2030 places the sustainability issues and concerns at the very heart of everything we do,” said Gunnar Groebler, Chief Executive Officer of Salzgitter AG. For example, by 2033 the group intends to decarbonize its crude steel production – and pursue the targeted expansion of its already strong position in the green steel market. The first climate-neutral steel is scheduled for production in Salzgitter as from the end of 2025 onwards.
 
With immediate effect, the company will be working even more closely with SAP from now on to achieve the digital transformation of its processes. As long ago as 2017, Salzgitter AG initiated the group-wide transition to SAP S/4HANA. Consequently, collaborating with SAP in the field of data analytics and sustainability is the logical next step for the company. “The cloud solutions developed by SAP play an important part in our journey to climate-friendly steel production,” as Burkhard Becker, CFO Salzgitter AG, stated. The SAP Footprint Management product, for example, will in future help to calculate the company-wide CO₂ footprint of Salzgitter AG, while SAP Environment Health and Safety Management will support the secure and sustainable structuring of the company’s operating processes. In addition, with SAP Analytics Cloud, the steel producer is putting down the technological foundations for efficient and well-founded sustainability reporting. “In recent years we have been continuously expanding our cloud product portfolio, particularly in the field of sustainability, and integrating our existing solutions. In this way we are enabling our customers to achieve end-to-end business process transparency - a fundamental prerequisite for the management of sustainability targets. We are looking forward to continuing our excellent cooperation with Salzgitter AG, in order to address our shared goal of smoothing the course to climate-neutral operations and a sustainable future in Germany,” said Sven Mulder, Managing Director of SAP Deutschland. One important aspect for the successful implementation of the plans for green steel: “The collaboration between Salzgitter and SAP is therefore itself a pioneering project for climate-friendly steel production – and it also provides us with important insights that will support the rapid and customer tailored further development of our portfolio.”

Salzgitter's Path to Decarbonization