Climate change is one of the most significant challenges facing society. It is a defining factor in how we operate today, and in the decades to come. It is central to how we run our lives and our businesses. .
Tata Steel is responding to this with an ambitious and extensive program of decarbonisation. An integral part of this will be making the price of carbon visible throughout steel supply chains.
Not only is steel needed to fulfil society’s needs, steel will continue to be at the heart of climate action in delivering a sustainable future global economy. The durability and resilience of steel, make it not only a material that can adapt in our future but one that can be reused to reduce carbon emissions. As the most recycled material in the world it is the engine of the circular economy.
Tata Steel has a strategy to build the leading European steel business that is sustainable in every sense. Tata Steel is among the most carbon efficient steel producers in the world today and our IJmuiden steelworks is the third lowest CO2 emitting integrated steelworks in the world.
Sustainability is at the heart of our strategy and we continue to work with partners to drive our decarbonisation strategy. We have set ourselves ambitious targets to further reduce our carbon emissions, between 30 and 40% by 2030 and be carbon neutral in steel production from 2050 at the latest. We are developing various technological options to decarbonise our steel production to achieve these targets.
Alongside our decarbonisation strategy, at Tata Steel we believe it is essential to make the price of carbon emissions transparent throughout our supply chains. Our manufacturing facilities are part of the EU/UK emissions trading systems (ETS). These schemes have already delivered billions of Euros into decarbonisation and technological development across Europe.
This is why, from July 2021, Tata Steel will apply an explicit CO2 Surcharge on new price agreements, based on the carbon price from the ETS schemes, to all steel products.
Explicit carbon pricing aligns with society’s changing perspective on value. It supports the retention of sustainable UK/EU steel based value chains and creates clarity on what contribution is made to the UK and EU governments’ decarbonisation funds.
Tata Steel is committed to achieving a decarbonised future supply chain. Making carbon pricing visible drives awareness, action, innovation and impactful investment. It will therefore support and enable the transition of our shared value chain towards a decarbonised future. Together we are able to drive change and together we make the difference.
