Now, expectations are set for steelmaker’s near-zero-emissions transition
Until recently, the steel industry was said to be ‘hard to abate,’ and companies were rarely held accountable for their lack of climate actions. What counts as credible steps for deep decarbonisation has not been clear. And, buried under complexities of corporate reporting and fragmented disclosure, it was impossible to know who is making actual progress. Now, there is a tool that will enable comparative analysis of major steelmakers and set clear expectations for what climate crisis expects them to deliver.
Today, we launch the first Steelwatch Corporate Scorecard.
For the first time, 18 of the world’s major steelmakers have been assessed on the same set of comparative indicators on their readiness to transition toward near-zero-emissions steelmaking.
The Scorecard untangles publicly available information and corporate reporting and enables comparisons among the geographically diverse steelmakers, headquartered in 11 countries from Asia, Europe and the Americas. Twenty one carefully selected indicators attempt to assess structural changes required for the transition. Stated climate targets are common but the Scorecard goes beyond and critically looks at current climate performance, recent trends and future preparedness.
This Scorecard is our way to set clear expectations of what decisions and choices steelmakers should be making, if they shared the sense of urgency we should all feel in the face of the climate crisis. Hard decisions to break away from what has been the norm in the past, to boldly invest in the future, will be the only way steelmakers are awarded better scores.
No one looks good
In this first edition, the results are sobering. None of the 18 companies scored above 50 out of 100 points, with most clustered in the twenties and a median score of 27.
The Scorecard highlights the “transition readiness gap,” revealing how far the companies are from structural readiness to transition and sends a wake-up call on how fast they must act to close this gap.
While gaps in climate targets, renewable energy, transparency and social responsibility persist, coal dependence and the lack of green iron integration remain the most common factors holding back progress.
The 18 assessed companies together operate 75 coal-based blast furnaces. Emissions from blast furnaces usually count for about 90% of emissions in steelmaking. All but four companies have recently made further investments in their blast furnace capacity, or announced such investment.
Integration of green iron is even more limited than progress in exiting coal. Announcements of early stage pilot projects have yet to translate into the scale or speed of transformation that the transition demands. In the category scoring green iron and renewable energy, out of a total of 25 points available, the average score is below 1, and half the companies score zero.
Signals such as net-zero 2050 targets are common among the assessed companies but insufficient when not supported by near-term structural action: this highlights a critical gap between ambition and delivery.
Corporate decisions matter
Within the low absolute scores, relative differences still matter and show how companies can set their own course.
SSAB is emerging from the pack, reflecting decisive moves away from coal-based iron production, clear blast furnace retirement dates and clearer alignment between their future strategy and existing investments.
Germany’s thyssenkrupp comes second, with key decisions for a coal-based transition now in place. Its remaining challenge is implementation.
A larger group sits behind them, clustering in a peloton of incremental progress. And at the back, several major producers now lag behind the pace.
Nippon Steel, Hyundai Steel, POSCO and HBIS stand out as companies where coal dependence remains high, data disclosure or transparency is lacking and credible transition pathways are either unavailable or unclear.
This inaugural Scorecard is just the beginning
The next decade must see decisive action from one of the most carbon-intensive industries. Incremental steps are insufficient to decarbonise steel at scale, and closing the transition readiness gap requires a rapid shift from setting targets to executing at scale.
This edition covers company information made publicly available up to late 2025, relating to financial years 2021-2024, building on data in our recently published Transformation Tracker. There are indeed some recent announcements that are not reflected in these results. Some are positive progress, such as Baowu in China developing DRI with potential transition to green hydrogen, and SSAB’s plan to use green iron from the Hybrit joint venture, which will affect green iron scores once in action. Some are worrying trends of relining major blast furnace assets, like Nippon Steel’s recent decision to reline a blast furnace at U. S. Steel.
As final investment decisions are made and new information emerges, SteelWatch will continue to track and reassess company performance, and the Scorecard will update the comparative progress in years to come.
