Extractives & Mineral Processing

This sector relates to the following sub-sectors: Construction Materials, Iron & Steel Producers, Metals & Mining, and Oil & Gas.

Iron & Steel Producers

Each section below relates to the TPT Disclosure Framework principles of Action and Accountability. The below provides further guidance for sub-elements 4.1 and 4.3. The TPT welcomes comments on this guidance to ensure it is as useful as possible for preparers and users. The text is open for comment until Friday, 24 November. Please select the feedback form at the bottom of the page. The final text will be updated in February.

The Iron & Steel Producers industry primarily consists of entities producing iron and steel in mills and foundries. The steel producers segment produces iron and steel products from its own mills. These products include flat-rolled sheets, tin plates, pipes, tubes, and products made of stainless steel, titanium and high alloy steels. Iron and steel foundries, which cast various products, typically purchase iron and steel from other entities. The industry also includes metal service centres and other metal merchant wholesalers, which distribute, import or export ferrous products. Though entities are developing alternative processes, steel production primarily relies on two primary methods: the basic oxygen furnace (BOF), which uses iron ore as an input, and the electric arc furnace (EAF), which uses scrap steel.

Note: With a few exceptions, most entities do not mine their own ore to manufacture steel and iron products. There exists a separate standard for the Metals & Mining (EM-MM) industry.

1. Increase energy efficiency and material efficiency to production routes5, 6, 8, 9

  • implement the best available techniques for energy efficiency (e.g., coke dry quenching);
    material recirculation strategies for better collection and recycling of end-of-life steel;
  • increase the utilisation and lifetime of steel through durable product design; and
  • reduce steel losses in fabrication and minimise steel use in end products.

2. Scale up secondary steel production
5, 6, 8, 9

  • increase the share of scrap-based steel based on the scrap-EAF production route; and
  • enhance the quality and efficiency of steel recycling to increase the percentage of high-quality steel derived from recycled materials

3. Develop and scale near zero emission production technologies5, 6, 8, 9

  • transition from the blast furnace-basic oxygen furnace (BF-BOF) method to the direct reduced iron-electric arc furnace (DRI-EAF) process;
  • replace natural gas with green hydrogen in the DRI-EAF process, as the quantity of green hydrogen increases;
  • implement carbon capture, utilisation, and storage (CCUS) technologies for fossil fuel-based production assets; and
  • invest in R&D to explore new methods of near-zero or low-carbon steel production.
  • energy intensity by steel production route;2
  • consumption of electricity, heat and steam;2
  • share of renewable/low carbon electricity procured or from captive power generation;2, 3
  • consumption of feedstocks by type;2
  • consumption, production, and capacity figures by production route;2
  • scrap consumption by production route;1, 2, 3
  • current and targeted production capacity equipped with CCUS;1
  • plants where CCUS is expected to be used and expected capture rate of GHG emissions;1
  • installed production technology by plant, planned technology changes by plant, and expected impact of technology changes on GHG emissions by plant (over short-, medium-, and long-term);9
  • raw steel production, percentage from (1) basic oxygen furnace processes and (2) electric arc furnace processes;7, 9
  • total iron ore production;7
  • total coking coal production7 and;
  • corporate policy to exit unabated coal-based primary steel production;9
  • corporate policy to not build new or reline existing unabated BF-BOF by 2025-2028 (more stringent for OECD countries and more latitude to emerging economies)9.
  • scope 1 and 2 emissions per unit of crude steel produced (tCO2e/t steel);1, 2, 3, 11
  • current and projected Scope 1, 2, and 3 GHG emissions by plant;2, 3
  • emissions intensity by production route (Scope 1, 2, 3 emissions per unit of output)2, 3, 8
  • projected reduction in Scope 1, 2, and 3 GHG emissions due technology changes at asset, production route, and corporate levels (tCO2e and tCO2e per unit of output);7
  • target boundary: the Science-based Targets initiative (SBTi) states that steelmakers must include all emissions within their iron and steel core boundary in targets10:
    • this includes emissions from purchased intermediate products like iron under Scope 3 category 1 purchased good and services. This includes emissions from sold intermediate products like surplus coke under Scope 3 category 10 processing of sold products
  • SBTi state that iron and steelmakers must set targets covering Scope 3 category 3 fuel and energy-related emissions10.

Iron & Steel literature

  1. Climate Bonds Initiative (CBI), Steel Sector Criteria, 2023
  2. CDP Global, Climate Change 2023 Reporting Guidance, 2023
  3. CDP Worldwide & ADEME, Assessing Low-Carbon Transition: Iron & Steel, 2021
  4. Climate Action 100+ (CA100+), Steel | Climate Action 100+, 2022
  5. E3G and Pacific Northwest National Laboratory (PNNL), 1.5°C Steel. Decarbonising the steel sector in Paris-compatible pathways, 2021
  6. IEA, Iron and Steel, 2022
  7. IFRS, [Draft] Industry-based Guidance on Implementing IFRS S2, 2022
  8. Mission Possible Partnership (MPP), Steel Transition Strategy, 2022
  9. Oxford Smith School of Enterprise and the Environment, Assessing the Credibility of Climate Transition Plans in the Steel Sector, 2023
  10. Science Based Targets initiative (SBTi), Steel Science-Based Target-Setting Guidance, 2023
  11. Transition Pathways Initiative (TPI), Carbon Performance Assessment of Airlines: Note on Methodology, 2021
People stacking hands together in the park

Your feedback

The TPT welcomes comments on the Sector Summary to ensure it is as useful as possible for preparers and users. The Sector Summary was open for comment until Friday 24 November and, following consideration of the feedback received, will be updated in February. Thank you to the industry experts who provided comments.