We are committed to operating our business in an environmentally responsible manner and have been since our founding. We encourage the use of new technologies and processes to reduce our impact on the environment and the climate, including a strategic focus on carbon mitigation. Our steelmaking operations have exclusively used electric arc furnace (EAF) technology with recycled ferrous scrap as the primary input, to limit our carbon emissions while simultaneously delivering quality products for our customers, and driving returns for our shareholders. Additionally, our companywide performance-based incentive programs encourage our teams to create innovative solutions to increase efficiencies, reduce raw material usage, reuse secondary materials, and promote material conservation and recycling.
Our teams’ drive to be efficient and focus on EAF steelmaking technology has resulted in our Scope 1 and 2 emissions being among the lowest in the industry—and we are continuing to raise the bar even further for sustainable steelmaking.
THE ROADMAP TO CARBON NEUTRAL
We are proud to announce we set a goal for our EAF steel mill operations to be carbon neutral by 2050. To achieve this target, we also set interim emissions reduction and renewable energy milestones to be achieved by 2025 and 2030.
On the path to carbon neutrality, Steel Dynamics is targeting a 20% Scope 1 and Scope 2 combined greenhouse gas (GHG) emissions intensity reduction across its EAF steel mills by 2025 and a 50% reduction by 2030, compared to a 2018 baseline. Additionally, the company plans to increase the use of renewable electrical energy for its EAF steel mills to 10% by 2025 and 30% by 2030.
“Our sustainability strategy is an ongoing journey, and we plan to use our entrepreneurial, innovative spirit to continue to be an industry leader.”
Mark D. Millett
Co-Founder, Chairman, and CEO
Circular Manufacturing Model
We intentionally developed a circular manufacturing model with our steel, metals recycling, and fabrication platforms.
EAF vs. Blast Furnace
We are one of a very small number of steel producers that only use EAF technology. We have always been, and continue to be, a leader in the production of sustainable, lower-carbon emission steel products.
We believe the single most impactful decision a steel consumer can make in order to support GHG emission reduction is to understand the differences between EAF and basic oxygen or blast furnace steelmaking technologies and related supply chain environmental impacts—and then, source their steel needs accordingly. Electric arc furnace steelmaking technology generates a mere fraction of the carbon emissions produced and energy intensity required by traditional blast furnace steelmaking technology.
Carbon Mitigation Strategy
Our carbon mitigation strategy is integral to our overarching sustainability program to address climate-related considerations. Our strategy to mitigate GHG emissions is based on four primary elements:
- Involved leadership/Governance
- Awareness/Continuous risk and opportunity assessment
- Innovation/Opportunity evaluation and implementation
- Accountability/Performance awareness