0:01 Welcome to the Swiss Steel Group
0:03 environmental sustainability training module.
0:05 module.
0:07 This training covers why environmental
0:09 sustainability matters and our position
0:11 climate change and steel making and our
0:13 position in Swiss Steel Group's goals to
0:16 reduce emissions by Steel Group
0:18 emissions by
0:20 contribute broader environmental efforts
0:22 as well as how employees can contribute
0:29 Global temperatures have already risen
0:32 by over 1 degree and the last decade
0:34 stands to be the hottest ever recorded.
0:36 The cause of this rise in temperature,
0:38 greenhouse gas levels are at their
0:41 highest point in over 2 million years.
0:42 These figures highlight why
0:44 environmental action is not only an
0:46 ecological necessity but also an
0:49 economic imperative. It is estimated
0:51 that we will lose 10% of global gross
0:59 Steel production is one of the largest
1:00 contributors to greenhouse gas
1:03 emissions, accounting for about 8% of
1:12 Our operations are energy intensive by
1:14 nature, driven by both electricity and
1:18 natural gas. In total, we consumed 1,270
1:22 gatt hours of electricity and 1,775
1:27 gwatt hours of natural gas in 2024.
1:28 That brings our combined energy
1:33 consumption to around 3,045 gatt hours.
1:34 To put that into perspective, that's
1:36 roughly equivalent to half the annual
1:38 gas and electricity consumption of the
1:42 entire city of Zurich in 2022.
1:43 This comparison underlines our
1:45 responsibility and the importance of
1:48 every step we take to increase energy
1:50 efficiency and transition to cleaner sources.
1:56 As concern for the environment grows
1:58 worldwide, governments and industries
2:00 are pushing for change. Policies like
2:02 the European Green Deal and the Paris
2:04 Climate Agreement aim to reduce
2:06 emissions and incentivize lowcarbon
2:09 products. Our customers industries are
2:10 part of this shift. They're asking for
2:12 lower emission products and many now
2:14 require the steel we produce to reach a
2:17 minimum threshold for recycled content.
2:19 There's further economic aspects to
2:21 consider. Companies like ours have to
2:23 buy certificates to cover the carbon
2:25 dioxide we emit and the cost of these
2:33 Most of the global steel production
2:35 relies on the primary route which
2:37 involves the use of mined iron ore and
2:39 coal to produce steel through a
2:42 combination of blast furnaces and basic
2:44 oxygen furnaces. This method is highly
2:46 emissions intensive due to its reliance
2:49 on fossil fuels like coal. At Swiss
2:51 Steel Group, we exclusively use the
2:54 secondary route relying on scrap steel
2:56 and electrical energy rather than coal.
2:58 This method inherently reduces emissions
3:01 and allows us to utilize decarbonized
3:03 electrical energy sources such as
3:05 renewables and nuclear power, making our
3:07 operations more sustainable and
3:13 So the starting point of our steel
3:15 production is scrap metal. But to meet
3:17 the exact needs of our customers, we
3:19 also use small amounts of ferro alloys
3:22 and materials like lime. In general,
3:24 higher alloy steel grades like stainless
3:27 steel require more primary materials. We
3:29 aim to increase the recycled content of
3:30 our steel grades with careful scrap
3:33 sorting, increasing the use of alloid
3:35 scrap over mind materials. Some of our
3:38 electric arc furnaces have gas burners
3:40 to facilitate the melting process, but
3:42 the bulk of the melting is done with
3:44 electricity. This keeps our emissions
3:47 low. At Steeltech in Switzerland, the
3:49 CO2 footprint per ton of steel is less
3:51 than 2% of the global average for
3:53 traditional steel making. According to
3:55 World Steel,
3:56 consecutive processes such as hot
3:58 rolling, forging, and heat treatment
4:00 rely heavily on natural gas burners,
4:02 making these steps more emissive than
4:05 melting and casting in many cases.
4:07 We carefully sort over 100 scrap types
4:09 for optimum resource use and process
4:13 around 1.5 million tons of scrap a year.
4:21 Climate change presents us with two
4:24 types of risk.
4:26 Transition risks from adapting to a
4:28 lowcarbon economy such as a drop in
4:31 automotive steel demand.
4:33 Physical risks from climate related
4:35 events such as flooding which can halt
4:37 production for weeks and block essential
4:43 But climate change also presents us with
4:46 clear opportunities. Global demand for
4:48 low emission, high performance steel is
4:50 rising. This presents an opportunity to
4:52 collaborate with similarly
4:54 wellpositioned suppliers to source
4:56 lowcarbon raw materials and make
4:58 recycled steel central to the green
5:00 transition to be used in many solutions
5:02 from renewable energy infrastructure to
5:05 low emission vehicles. Our
5:07 Our
5:09 portfolio is built around three distinct
5:11 product categories.
5:13 Green steel is our standard offer,
5:15 delivering highquality steel with a
5:16 significantly lower carbon footprint
5:18 than the industry average and primary
5:20 route producers.
5:23 Climate Plus goes a step further. It is
5:24 designed for our customers with
5:27 ambitious sustainability goals, offering
5:29 enhanced transparency and zero scope to
5:32 emissions due to its use of 100%
5:35 renewable electricity. Stainless Plus
5:36 brings this same climate conscious
5:38 approach to the world of stainless
5:40 steel, combining corrosion resistance
5:42 with circular economy benefits and
5:44 produced with a scrap content of at
5:47 least 95% by replacing primary alloys
5:52 with carefully selected alloy scrap.
5:54 Our commitment to sustainability is
5:56 backed up by independent assessments and
5:58 recognized performance improvements over
6:00 the last few years. We've signed the
6:02 science-based target initiative and
6:04 achieved an A rating from CDP, the
6:06 carbon disclosure project, placing us
6:08 among the leaders in climate
6:10 transparency and action. With Ecoardis,
6:12 we've reached the gold level, ranking in
6:15 the top 5% of all rated companies. In
6:18 2024, we were also recognized with the
6:20 German Sustainability Award. And to
6:22 ensure the credibility of our emissions
6:24 across scopes 1, 2, and three, we have
6:40 But how can we measure our emissions to
6:42 set ourselves apart from our
6:44 competitors? Let's have a quick look at
6:46 the structural framework we use to
6:49 categorize various emission sources.
6:51 The greenhouse gas protocol introduced
6:54 in 2015 divides emissions into three
6:57 clear categories or scopes. Scope one
6:59 emissions, which represent 24% of our
7:02 total emissions, are primarily caused by
7:03 natural gas combustion in our rolling
7:06 mill, forge, and heat treatment furnaces
7:09 and removing carbon from the melt. These
7:10 processes are essential for steel production.
7:12 production.
7:15 Scope 2 emissions making up 10% stem
7:18 from the electricity we purchase. Sites
7:19 in Germany and the US are particularly
7:22 impacted, which counts intensity in
7:24 their national grids compared to our
7:26 operations. All other indirect emissions
7:28 upream and downstream in the benefit
7:30 from decarbonized and renewable energy
7:31 sources for the emissions from the
7:33 production of purchased goods, energy
7:35 related activities not included in scope
7:38 one and two waste and the processing and
7:42 end of life of sold products.
7:43 Swiss Steel Group was the first steel
7:45 maker to have its decarbonization
7:47 targets validated by the science-based
7:49 targets initiative setting a benchmark
7:52 for the industry. By 2030, we aim to
7:55 reduce GHG emissions per ton of hot
7:57 formed steel by 23.7%
8:00 and absolute scope 3 emissions by 25%
8:03 compared to 2021 levels. For heat
8:05 treatment and finishing processes, the
8:08 goal is a 42% reduction in scope 1 and
8:14 Our decarbonization road map targets the
8:16 steel industry's core challenge, cutting
8:19 emissions while sustaining performance.
8:21 The greatest reductions will come from
8:23 switching to lowcarbon electrical
8:25 energy, especially for powering our melt
8:28 shops. Through a consortium in Germany,
8:30 we aim to secure lowcarbon electrical
8:32 energy and eliminate scope 2 emissions
8:35 at scale despite the highly emissive
8:38 wider electricity market there. Next is
8:40 efficiency. By upgrading furnaces and
8:41 digitizing operations, we're cutting
8:43 both energy use and emissions across
8:46 scopes one and two significantly.
8:49 We're also electrifying key processes by
8:51 replacing fossil fueled furnaces. This
8:53 directly lowers scope one emissions and
8:55 boosts flexibility for future energy systems.
8:57 systems.
8:59 In parallel, we're testing circular and
9:01 biogenic materials to replace fossil
9:04 carbon inputs in steel making. Finally,
9:06 we're investing in future fuels through
9:08 the Hydreams project, a European
9:10 research effort exploring hydrogen oxy
9:12 combustion. This could one day enable
9:15 fossil-free high temperature processes,
9:18 though it is still in its early stages.
9:19 One of the biggest challenges in
9:22 decarbonizing electric steel making lies
9:25 outside the plant, namely in the carbon
9:27 intensity of the national electricity
9:30 grid. As shown here, sites in Germany
9:32 and the US still rely heavily on
9:35 fossil-based electricity. In Germany,
9:37 almost 40% of the power mix is still
9:39 from carbonintensive sources. And in the
9:42 US, that number reaches 60%. By
9:44 contrast, our sites in Switzerland and
9:46 Quebec benefit from nearly 100%
9:47 renewable electricity with emission
9:50 factors below 10 kg of CO2 per megawatt
9:53 hour. This means that the exact same EF
9:55 molting process can have very different
9:56 climate impacts depending on the
10:09 We track and measure environmental
10:11 performance and set ambitious targets
10:13 for our key performance indicators. We
10:15 operate transparently and engage with
10:17 the public, employees, and suppliers in
10:23 We want to make safe and sustainable
10:25 products. So, we design for durability,
10:27 recyclability, and lower environmental
10:31 impact. Hazardous substances are avoided
10:33 where possible and impacts to air, water
10:34 and soil are minimized and kept below
10:37 legal limits with restoration measures
10:38 taken where necessary in regard to biodiversity.
10:44 We further have three main resource
10:46 efficiency targets set for 2030 in the
10:49 areas of energy, recycled content and
11:00 We all play a part in maintaining best
11:03 sustainable practice. Here are some
11:04 things you can keep in mind in your
11:08 day-to-day activities.
11:11 Safe and responsible production. Report
11:12 unknown or contaminated materials as
11:15 well as spoilages and leakages.
11:17 Consider environmental impact when
11:19 changing and implementing new processes
11:22 and close doors to reduce noise and heat loss.
11:23 loss.
11:25 Be mindful of energy, water, materials,
11:28 and tool use. Share ideas to reduce
11:31 resource consumption. Reduce internal
11:32 scrap and waste by sorting and
11:35 separating byproducts diligently. When
11:37 in doubt, there are countless resources
11:39 you can draw from. Ask your supervisor,
11:41 your local environmental team, or check
11:43 the internet. If you have any questions
11:44 or are looking for further resources,
11:46 the current non-financial report and
11:48 policy statement are available on our
11:50 website, while the environmental policy
