Political Dialog
Volatile energy and commodity costs, vulnerable supply chains, compounded by fiercer economic and technological competition, are among the consequences of fresh geopolitical imponderables. Multilateral agreements and institutions are being increasingly called into question against the background of growing protectionist measures in (steel) exports. A lack of standards or different norms around the world in numerous political areas, in environmental, climate, energy and social policies, for instance, are the cause of considerable distortion in competition. In times of transformation, we therefore lobby political decision-makers for a level international playing field which provides fair production and site conditions for the German industry.
To this end, we follow the political debate rigorously, maintain contact with relevant political institutions and contribute our expertise to the political process. In our dialog with local, regional, national and European bodies, we rely on precise information and credible, transparent communication. It is our declared corporate policy not to give any donations or payments to political parties. We view ourselves as under obligation to maintain political neutrality, and we cultivate dialog with all parties across the democratic spectrum.
The use of political monitoring to observe issues of relevance to the Group forms the foundation for effectively helping to shape the political and social landscape: Parliamentary bills are substantially drafted at a European level. Identifying political projects that directly or indirectly impact Group activities or its business environment at an early stage is therefore crucially important. In order to intensify our work in this area and strengthen the Group’s lobbying at a political level, the Salzgitter Group maintains its own offices in Brussels and in Berlin. Against the backdrop of these political activities in Brussels, Salzgitter AG has been registered in the EU’s public transparency register since 2014. Interested parties can obtain insights here into the funds and resources used in its political work at a European level. A public transparency register was also introduced on a national level as of January 1, 2022. Here, too, Salzgitter AG’s entries in the lobby register are regularly updated.
Besides policies on energy, the environment and climate protection (such as the transposition acts governing EU emissions trading from 2026, the Carbon Border Adjustment Mechanism (CBAM), key green markets, the ecodesign directive), the main political issues of the last few years actively followed by the Group included trade policy (Global Arrangement on Sustainable Steel and Aluminium, EU trade protection procedures and instruments, in particular EU safeguards), industrial policy (Green Deal Industrial Plan), EU research and innovation policy (the ETS Innovation Fund, Important Projects of Common European Interest, for instance), the EU subsidy system, as well as employment and social policies.
The Salzgitter Group has been working for years with associations and initiatives across all sectors in a trust-based manner as a repository of expertise to follow legislative procedures and promote constructive cooperation between political circles, industry and society. Representatives of the Group are actively engaged in political (umbrella) associations both at a national and European level. Among the most important of these are the Federation of German Industries, the Business Confederation of Lower Saxony, the European Steel Association Eurofer, the German Steel Federation, as well as Hydrogen Europe and the German Hydrogen and Fuel-Cell Association (DWV). The foundation of all work in associations is a set of rules on compliance organization meeting legal requirements and the observance of a lawful code of conduct. Beyond its participation in associations, Salzgitter AG is actively engaged in advisory groups in the public sector or the EU. Government commissions on important issues relating to policies on the environment and energy have a long tradition, especially in Lower Saxony. Experts from Salzgitter AG are regularly represented in these advisory bodies to the State government as well as in the working groups assigned to them.
Salzgitter AG also participates in the “Social Dialog Committee Steel” set up by the European Commission. Furthermore, delegates from the company take part in expert groups established by the European Commission such as the RFCS – Steel Advisory Group (SAG). In addition, Salzgitter AG is regularly part of the German delegation in the OECD Steel Committee.
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 %.