Decarbonizing the steel industry: innovation required

Welcome to the August issue of Power Up! Today, we're taking a deeper look at the significant role that the steel industry plays in carbon emissions, and the innovation and financial support needed to drive decarbonization. We also learn about a new blueprint for circularity, reverse mentorship with multi-generations, and our recognition as a leader in Verdantix 's Green Quadrant: Building Decarbonization Consulting 2024 report. Plus, Chief Innovation Officer Nadège Petit sits down with MIT Technology Review to discuss innovation in the energy transition.

By Rob Moffitt , President, Mining, Minerals & Metals

Steel is the backbone of modern life — essential for buildings, infrastructure, transportation, and more. However, this integral material comes at a heavy environmental cost, as production is highly carbon-intensive. Currently, the steel industry generates 1.8 tons of CO2 for every ton of steel produced . This makes it responsible for around 9% of global carbon emissions. Even though 60% of the largest steelmakers have made emission reduction commitments for 2030, global carbon neutrality goals may not be achievable unless we address the challenges the steel industry faces.

Steel industry decarbonization is crucial to reaching global net-zero targets. In over 50 countries, regulators are now implementing policies to incentivize lower steel emissions through emissions quotas and carbon prices. The steel industry is also rolling out several innovative approaches to decarbonization.

However, the sustainability challenges extend beyond technology. The availability of renewable energy and hydrogen, the cost of energy, and the volatility of the electricity market— particularly in parts of Europe — are key factors. The added cost of green steel manufacturing may lead existing companies to view overseas investments in steel as more strategic. Insufficient demand for green steel outside the automotive industry, which accounts for just 12% of total steel consumed, is a key concern. Asia-Pacific, where 70% of steel is currently manufactured , must also introduce policies supporting green steel production if we are to meet emissions goals.

Decarbonizing the industry is also expensive. A recent study estimated it will take around €4.4 trillion to transition the steel industry by 2050, implying an annual investment of €15.1 billion in addition to the regular annual CapEx of €103.8 billion. This raises the question: What is needed for the industry to deliver on 2030 decarbonization targets, given limited demand and the need for significant financial investment in these new technologies?

Read the rest of Rob's blog post here .

Transforming the energy industry through disruptive innovation

Innovation and impact are at the heart of our strategy to navigate the new energy landscape at Schneider Electric. In this podcast with the MIT Technology Review , our Chief Innovation Officer Nadège Petit dives into the importance of embracing disruptive solutions, fostering open innovation to enable scale, and investing in win-win partnerships to accelerate the energy transition.

Listen to the full episode here .

Do more with less by going circular

The way humanity produces and consumes is responsible for 45% of greenhouse gas emissions, according to the Ellen MacArthur Foundation . But did you know that, in practice, we could fulfill our needs with?only 70% of extracted resources??

Watch our latest video to find out more on how circular principles — such as eco-design, sustainable sourcing, reuse, refurbishment, remanufacturing, recycling, and 'as-a-service' paradigms — offer new business opportunities and significant benefits to planet and society.

Mental health, meme culture, and mission in life: how reverse mentoring connects a multi-generation workplace

Schneider Electric's approach to understanding and integrating Gen Z talent involves a unique program called reverse mentoring, where younger employees mentor senior professionals. This initiative aims to foster collaboration, diversity of thought, and professional growth, breaking down intergenerational barriers. The program not only benefits senior employees but also provides growth opportunities for younger talent, aligning with Schneider Electric's commitment to engage and nurture its workforce at all career stages.

Read the full blog post here .

Independent research and advisory firm recognizes Schneider Electric as a leader in building decarbonization consulting

Schneider Electric recently earned the coveted position of a leader in Verdantix’s report, Green Quadrant: Building Decarbonization Consulting 2024. This report spotlights Schneider Electric’s end-to-end approach to decarbonization – from strategy to implementation, with notable mention of our expertise in building systems optimization, energy use modeling, and renewable energy strategy and procurement.

Read the full announcement here .

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