Nucor Leads Effort to Develop Carbon Emissions Standard for the Steel Industry

Rhea-AI Summary

On April 26, 2023, a coalition led by Nucor Corporation (NYSE: NUE) announced the draft of a global standard for measuring carbon emissions in the steel industry. The Steel Climate Standard, developed by the Global Steel Climate Council (GSCC), aims to provide a uniform protocol for steel producers worldwide. Nucor, recognized as a leader in reducing greenhouse gas emissions, reported significant achievements in emissions control, with GHG intensity less than half the global average.

Nucor emphasizes that utilizing recycled steel can reduce emissions substantially. The company advocates for a single emissions standard to facilitate investments in low-emission technologies, countering proposals that might favor traditional, more polluting methods of steel production.

Positive

• Nucor reported record low Scope 1, 2, and 3 greenhouse gas (GHG) intensity.
• The company is recognized as one of the cleanest steel producers globally.
• Nucor's production method results in GHG emissions less than half the global average.

Negative

• None.

CHARLOTTE, N.C., April 26, 2023 /PRNewswire/ -- A coalition of steel companies and industry partners founded by Nucor Corporation (NYSE: NUE) and five other organizations released for comment today a draft global standard to measure and report carbon emissions from steel companies. The Steel Climate Standard, which was developed by the Global Steel Climate Council (GSCC), offers a single, technology-neutral protocol that would apply equally to all steel producers globally.

"Nucor is one of the cleanest steel producers in the world and the North American leader in reducing greenhouse gas emissions in the steel industry," said Leon Topalian, Chair, President and Chief Executive Officer of Nucor Corporation. "Using a single standard that is ambitious, auditable, inclusive and transparent is needed to accelerate further greenhouse gas emission reductions in our industry and to drive investment in lower emission technology."

Nucor produces steel by recycling scrap metal in electric arc furnaces (EAF), also known as circular steelmaking, a process that has a greenhouse gas emissions (GHG) intensity that is less than half the global average and one-third of the average blast furnace steel producer. Last year, the Company achieved its lowest Scope 1, 2 and 3 GHG intensity in company history. Nucor was the first steel company in North America to report Scope 3 emissions.

"The bottom line is that customers using steel from a recycled source are choosing to reduce the world's greenhouse gas emissions by a factor of two to four," said Greg Murphy, Executive Vice President of Business Services and General Counsel at Nucor Corporation, and Chair of the GSCC. "We have competitors making investments now to reduce their emissions in the future to levels Nucor already achieves today."

There are several organizations and companies proposing global emissions standards for the steel industry, in addition to GSCC. Some of these proposals include applying different standards for blast furnace steel producers and EAF steel producers. A dual standard that favors higher-emitting extractive steelmaking technology at the expense of lower embodied carbon steel would delay making meaningful emission reductions in the steel sector.

"Steel is a critical material for our infrastructure, automotive, energy systems and overall economy. The technology exists today to make significant reductions in global emissions from the steel industry, and Nucor is living proof of this," said Murphy. "That is why we believe it is common sense to use a single steel standard that is focused on actual embodied carbon emissions and does not favor one technology over another."

Nucor is a founding member of the GSCC, which is comprised of steel manufacturers, associations and other organizations in the steel supply chain that have a presence in 79 countries around the world. To review the standard and make comments please visit https://globalsteelclimatecouncil.org.

About Nucor
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company and its affiliates, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.

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SOURCE Nucor Corporation

FAQ

What is the Steel Climate Standard announced by Nucor?

The Steel Climate Standard is a draft global standard for measuring and reporting carbon emissions in the steel industry, developed by the Global Steel Climate Council.

How does Nucor contribute to reducing greenhouse gas emissions?

Nucor utilizes electric arc furnaces to produce steel from recycled scrap metal, achieving lower GHG emissions compared to traditional methods.

When was the Steel Climate Standard announced?

The Steel Climate Standard was announced on April 26, 2023.

What is Nucor's stance on emission standards in the steel industry?

Nucor advocates for a single emissions standard that focuses on actual embodied carbon emissions and does not favor higher-emitting technologies.

What significant achievements has Nucor made in emissions reduction?

Nucor achieved its lowest Scope 1, 2, and 3 GHG intensity in company history.