Issue 5, Vol. 1; Sept. 15, 2023

That impact rumble you felt from out west this week was caused by a landmark California emissions bill landing heavily on Governor Gavin Newsome’s desk.

Senate Bill 253 (SB 253), aka the Climate Corporate Data Accountability Act, passed both houses in California. This is a bill that (among other things) will require all businesses with more than $1 billion in revenue to publicly disclose their Scope 1, 2 and 3 emissions over a series of years.

SB 253 made a lot of noise upon landing in CA — and as it broke ground in the world’s fifth-largest economy, it seems everyone across business and industry has had something to say either for or against the sweeping legislation.?

Here at Greenway Steel? It’s just Friday.?

Is this a big deal? Yes.? End of the world? Not at all.

From what we’re reading, something like 5,300 companies will be impacted. But because SB 253 includes value chain (Scope 3), many more companies will be affected. Here’s the extremely simplified shorthand:

SB 253 addresses….

1) Companies with a billion $ in sales

2) Direct emissions for 2025 reported in 2026

3) Indirect scope 3 reported in 2027 for 2026

4) Safe harbor provisions for scope 3

5) Later dates for increasing levels of attestation out to 2030.

So while plenty of companies and moneyed interests have set their panic button for October 14th (the Governor’s drop dead date for signing the legislation into law), we’re in kind of a “business as usual” mode here.

Time is on your side.? But now IS the time to get started.

Because if SB 253 is signed (and we think it will be; if not now then some version of it someday soon), there is still plenty of time to figure it out.?

But you need to get started now and work through the challenges it presents on an efficient pace for your business and team.

In particular — the worry about Scope 3 reporting “being impossible” is a worry that’s based in near-term fear rather than long-term advantage. It’s going to be like a Jackson Pollack painting — really messy at the outset, while eventually become something elegant and compelling.?

Still messy looking, sure — but if you know what you’re looking at, it’s going to all make sense.

In other words, here at Greenway Steel, we feel we’ve already got a pretty solid handle on this without having a roomful of geniuses armed with supercomputers.? (Though in our defense, we actually do have a PhD metallurgist on staff, and some really cool Macs, plus our proprietary Greenway Calculator.)

In all seriousness, this can be done efficiently and accurately without getting carried away or going down a Wonderland-sized rabbit hole. Take it one step at a time and just get calibrated with the best available data on what is meaningful for your business.

It's a start.

You don’t have to figure it out all at once, and there’s a lot to be said for using a common sense approach by simply stating why you do, what you do, and understanding more about whom you do it with.

It is only 2023 ... by 2025 and 2030 this will all be so much simpler and clearer as we all get a handle on it (and more EPD’s are developed and released). Just be sure to mark your calendar for October 14th – or before.

Speaking of huge impacts, is there really any doubt remaining about the IRA having a material affect on the kind of tech and businesses being (gradually) repatriated to America?

We know where the business (in this instance) is coming from and yes, we might have some unanswered questions that deserve answers.

However.... China deciding to build one of our country’s largest solar panel factories in Wimer, Texas? This is a developing story to follow.

Excerpt from article: “…Trina’s joins fellow China-dominated companies?Canadian Solar?and?LONGi?as starting 5-GW factories in the United States — the largest single-site silicon solar panel manufacturing facilities in the country....”

For this issue of The Green Way?? Our “In The Lead” article at the top kind of covers what’s been top of mind as far as regulatory developments for the last couple of weeks.?

SB 253 has the potential to really shake things up.

We’re just going to link these stories here …. and let you decide.

Investment in green steel operations continues vigorously around the world and at home — and one of the surprising things in this international story is an early willingness for some companies to pay a premium for steel that can deliver on the green promise.

Sweden's H2 Green Steel raises $1.6 billion for Boden plant that will use hydrogen from renewable electricity rather than coal in a CO2-lean steelmaking process. ?Interesting, to say the least!

Within our shores, green metals company Boston Metal?has generated?$262m at the close of its Series C investment round.

?The company will use the funds to fast-track commercial demonstration of its molten oxide electrolysis (MOE) platform for sustainable steel production and expand its headcount worldwide.? ?

Boston Metal is promising a scalable technology platform using electricity to produce a variety of metals and alloys from a wide variety of feedstocks.

“Boston Metal’s success in raising capital from diverse sources spanning private equity, venture capital, institutional investors and strategic investors demonstrates robust confidence in Boston Metal’s ability to transform steel and metals production for a sustainable future.” -- Tadeu Carneiro, Boston Metal Chairman & CEO

EU’s Chief’s call for Global Carbon Pricing from the G20 could end up being a forty-shoe foot drag.

Last week, European Commission President Ursula von der Leyen asked G20 leaders to join a proposal to set up global carbon pricing to accelerate the transition to a lower-carbon economy.?

?But while aspirations were high, the realities of the story speak to a cautious group of big countries not yet willing to put goals to paper.

“… Climate talks in the G20 grouping, responsible for 80% of global emissions, are being keenly watched by the world ahead of a crucial global stocktake COP28 meeting in the United Arab Emirates later this year. So far, however, there does not seem to be a great deal of movement on climate change. The draft of the leaders' declaration circulated among delegates and reviewed by Reuters also does not set down concrete emission reduction targets for fossil fuels…”-- Reuters

Take a moment to check out the story above ... and let us know what you think.

Our team at?Greenway Steel?transparently brings efficient and accurate decarbonization and sustainability solutions to the table with our Greenway Calculator.

We can help you prepare for regulations. And we are industry veterans who understand?#metals?#supplychain?and?#manufacturing. And we pride ourselves on fitting a tailored solution to your unique industrial or supply chain.demands.

Plus we have cool MACs. Why not give us a call?? (205) 644-8553.

-- END Issue 5; Vol. 1, 9-15-23 --