Climate Protection at Salzgitter AG

The Salzgitter Group takes responsibility for the challenges posed by climate change.

Our climate objectives underscore our efforts to reduce the negative impacts on climate change: With validated objectives, Salzgitter AG ranks as one of the first steel manufacturers on the path to achieving the 1.5-degree goal specified under the Paris Climate Agreement, in accordance with the Science Based Targets Initiative (SBTi). When defining the SBTi objectives, among other measures we applied a sector-specific decarbonization approach, which was developed by the initiative specifically for the steel industry. Our short-term climate objectives for 2028 reflect the trust in our transformation and at the same time serve as important milestones within the Group strategy. The Scope 3 targets broaden our commitment to the reduction of CO_2e emissions along the supply chain. In the long term, Salzgitter AG hopes to achieve its Net Zero objective for all CO_2e emissions along the supply chain by the year 2050 at the latest. In so doing, we aim to have completed our technological transformation by 2033. Provided the external framework conditions allowing us to produce competitively using transformed technology based on renewable power and green hydrogen are in place from 2033, we are convinced that we will have already achieved the Net Zero target well before 2050

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Our Science Based Targets

Our Science Based Targets (SBTi objectives) are divided into the following categories: “Short-term”, “Long-term” and “Net Zero”.

The target requirements and formulations, as well as the minimum reduction requirements and reporting thresholds, are prescribed by the standards and tools of the Science Based Target Initiative. With a view to the targeted tracking of our progress on the elected 1.5°C climate course, we have set ourselves four short-term SBTi objectives.

These short-term SBTi objectives each cover different greenhouse gas emissions (GHG emissions), subdivided according to the scopes and categories of the overall Corporate Carbon Footprint for the base year 2021. Consequently, each objective has its own individual assessment boundary, without any overlapping.

Short-term objectives

Salzgitter AG undertakes to reduce greenhouse gas emissions in areas 1, 2 and 3, which fall below the assessment boundary for the iron and steel industry, by 20 % per ton of hot formed steel by 2028, taking 2021 as the base year. Because the calculation of this objective is dependent on the scrap quota projection, Salzgitter AG will publish the scrap quota associated with this objective on an annual basis, starting from the base year.

Explanation: This objective is subject to the methodology stipulated by the SBTi “Iron & Steel” directive. It includes all direct emissions from metallurgical processes and hot forming. In addition, the emissions for the supply of semi-finished steels that have not yet undergone any hot forming and the oxygen production for the calcination of lime are also included. This objective therefore covers 95 % of the entire Scope 1 & 2 emissions of the Salzgitter Group.
Salzgitter AG also undertakes to reduce all other absolute Scope 1 and 2 GHG emissions within the same time period by 35.6 %.

Explanation: This objective refers to the absolute reduction of the Scope 1 & 2 emissions from our “Technology” Business Unit. This is a voluntary objective that reflects the climate protection efforts made by our subsidiary companies in this area.
Salzgitter AG also undertakes to reduce all other Scope 3 GHG emissions resulting from purchased goods and services as well as emissions from fuel and energy-related activities, waste management, the use of products sold and investments within the same period by 20 %.

Explanation: This objective covers around 75 % of our entire Scope 3 GHG emissions. In particular, objectives are defined for the emissions from our trading activities with externally procured goods and those in conjunction with the utilization phase of our plants and machines from the “Technology” business area.
Finally, Salzgitter AG undertakes to reduce the absolute Scope 3 GHG emissions from the use of products sold that cover fossil fuels within this same period by 33.6 %.

Explanation: This objective focuses on the Scope 3 emissions during the utilization phase of our fossil-based commercial goods. This refers to our commercial activities with regard to coal and coal products.

Long-term objectives

Salzgitter AG undertakes to reduce the absolute Scope 1 and Scope 2 GHG emissions by 90 % by 2045, based on 2021 as the base year.
Salzgitter AG also undertakes to reduce the absolute Scope 3 GHG emissions by 90 % by 2050, based on 2021 as the base year.

Explanation: We decided in favor of two long-term SBTi objectives, addressing Scope 1 & 2 and Scope 3 as two separate areas of focus with different target years. We are adopting a tailored approach, since we have a more direct influence over our Scope 1 & 2 emissions and are therefore less dependent on international framework conditions and market developments as is the case with our Scope 3 emissions.

Overall Net Zero objective

Salzgitter AG undertakes to achieve Net Zero greenhouse gas emissions along the entire value chain by 2050.

Declaration: We will have achieved the Net Zero objective upon fulfillment of our final long-term objective. We will have then neutralized all remaining GHG emissions (< 10 % across all Scopes).

Further information on the Science Based Targets Initiative can be found here.

Measures in the area of climate protection

The majority of the Salzgitter Group’s climate-impacting emissions arise from the use of carbon-based reducing agents in the blast furnaces of our integrated steel mill. Consequently, the SALCOS® program takes the direct avoidance of these CO2 emissions as its starting point (Carbon Direct Avoidance).

Since 2015, Salzgitter Flachstahl has been joining forces with partners from the fields of industry and research to achieve the transition from coal-based steel production using the conventional blast furnace process to almost CO2-free steel production at the Group’s foundry site. This is enabled by means of hydrogen-powered direct reduction plants in which iron ore is reduced to iron, directly into its solid state, using flexible mixtures of hydrogen and natural gas. With this technology, we are steadily increasing the quantity of water vapor that is emitted in place of CO2. As such, by as early as the end of 2033 we will be technically capable of eliminating around 95 percent of our CO2 emissions. More information on SALCOS® is available under SALCOS® – Low-CO2 Steelmaking Program.

In addition to the avoidance of direct Co2e emissions, we are also actively promoting the reduction of our energy-related emissions. To this end, we rely intensively on the procurement of third-party electricity from renewable sources.

Our Decarbonization approach

Our SBTi goals are an expression of our decarbonization approach that rests on four cornerstones:

Science based

Our targets are based on globally recognized scientific insights for meeting the 1.5°C target in the Paris Climate Agreement.

Performance-driven

To achieve our targets, we pursue measures to directly avoid CO₂e emissions, focusing on our goals in the sustainable decarbonization of every business unit.

Holistic

We take account of both our direct impact and that of the upstream and downstream value chain at home and abroad. In particular, we focus on the sustainable procurement of goods and on reducing CO₂e emissions over the use phase of our machinery.

Transparent

We are aware that transparency is an important element of trust and credibility. For that reason, we regularly communicate our progress and invite our stakeholders to engage in dialog.

SALCOS^® - We turn steel green

With SALCOS^®, we have joined forces with partners from industry and research to lay the foundations for virtually CO₂-free steel production. Central elements of the concept are electricity from renewable sources and its use in the production of hydrogen by means of electrolysis. This green hydrogen will replace the coal we currently use in the conventional blast furnace process. This will be possible with the help of so-called direct reduction plants, in which iron ore is reduced to iron directly in the solid state by hydrogen. This technology emits water vapor instead of CO₂.

Our SALCOS^® program thus pursues the Carbon Direct Avoidance approach, which stands for avoiding the generation of CO₂ in steel production from the outset. Overall, our approach enables us to reduce CO₂ emissions in steel production by over 95 %.

To program SALCOS^®