Climate Change Data

Marcegaglia Steel SpA

Climate Impact & Sustainability Data (2021-2023, 2022)

Reporting Period: 2021-2023

Environmental Metrics

Total Carbon Emissions:576,564 tCO2e/year (2023, location-based, pre-acquisition); 663,193 tCO2e/year (2023, location-based, new perimeter)
Scope 1 Emissions:456,665 tCO2e/year (2023, pre-acquisition); 488,366 tCO2e/year (2023, new perimeter)
Scope 2 Emissions:119,899 tCO2e/year (2023, pre-acquisition); 174,827 tCO2e/year (2023, new perimeter)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:2,968 GWh/year (2023, new perimeter)
Water Consumption:4,741,725 m3/year (2023, pre-acquisition); 8,884,767 m3/year (2023, new perimeter)
Waste Generated:475,801 tons/year (2023, pre-acquisition); 518,278 tons/year (2023, new perimeter)
Carbon Intensity:0.0420 tCO2eq/t sold (2023, market-based, pre-acquisition); 0.0475 tCO2eq/t sold (2023, market-based, new perimeter)

ESG Focus Areas

  • Climate Change
  • Energy Efficiency
  • Water Management
  • Biodiversity
  • Waste Management
  • Circular Economy
  • Occupational Health and Safety
  • Human Rights
  • Diversity and Inclusion
  • Governance
  • Supply Chain Sustainability

Environmental Achievements

  • Reduced CO2 emissions by 4.6% in 2023 compared to 2022 (pre-acquisition perimeter).
  • Avoided over 162,000 tons of CO2 from road transport in the last three years by promoting rail transport.
  • Increased waste for recovery to 94% in 2023 (pre-acquisition perimeter).
  • Implemented several energy efficiency measures saving 3,269 MWh/year of electricity and 195,620 Sm3/year of natural gas in 2023 (Italian plants).

Social Achievements

  • Launched Marcegaglia Academy, a training center for employees.
  • Opened Casa Marcegaglia, a corporate museum showcasing company values and history.
  • Donated €1 million to support Emilia-Romagna flood victims and employees.
  • Extended SA8000 Social Responsibility certification to Marcegaglia Holding Srl.

Governance Achievements

  • Established an Advisory Board to provide strategic guidance on ESG issues.
  • Secured a €1 billion ESG-linked loan, the first in the steel sector.
  • Implemented a system for calculating the product carbon footprint (CFP-SA) according to standard 14067.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Increase train transport capacity in Ravenna to 2 million tons per year by 2028.
Short-term Goals:
  • Reduce carbon dioxide emission intensity by -8% by 2025 compared to 2021.

Environmental Challenges

  • Rising energy prices and climate change.
  • Supply chain disruptions.
  • Scrap shortage.
Mitigation Strategies
  • Developed alternative sourcing strategies (e.g., H2GS supply contract).
  • Implemented energy efficiency measures and cogeneration plants.
  • Investing in renewable energy sources (photovoltaic panels).
  • Developing innovative technologies (e.g., CCS, Green-DRI).

Supply Chain Management

Supplier Audits: ESG assessment introduced for strategic suppliers; SA8000 requirements for suppliers.

Responsible Procurement
  • Supplier Code of Conduct requiring compliance with labor standards, human rights, and environmental regulations.
  • ESG screening criteria in supplier qualification procedures.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Green steel procurement

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, SA8000, UNI PdR 125 (MADE HSE)

Third-party Assurance: Mazars Italia SpA

UN Sustainable Development Goals

  • Goal 4
  • Goal 5
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 15
  • Goal 17

Various initiatives contribute to these goals, including education programs, women's empowerment projects, renewable energy investments, and community development initiatives.

Sustainable Products & Innovation

  • EPD certified products
  • Green steel

Awards & Recognition

  • EcoVadis medals (Platinum, Gold, Silver)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:505,960 tCO2eq/year (Scope 1+2)
Scope 1 Emissions:343,228 tCO2eq/year
Scope 2 Emissions:162,732 tCO2eq/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:8,220,764 GJ/year
Water Consumption:4,539,363 m3/year
Waste Generated:454,122 tons/year
Carbon Intensity:0.0907 tCO2eq/t sold in 2022

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions by 2% in 2022 compared to 2021
  • Avoided emission of 12,752 tonnes of CO2 equivalent into the atmosphere through increased rail transport
  • Increased waste sent for recovery from 84.89% in 2020 to 88.27% in 2022
  • Saved 3,050 MWh/year of electricity and 3,629,600 Sm3/year of methane gas (equivalent to 7,989 t/CO2eq) through energy efficiency interventions

Social Achievements

  • Launched Steps4Future campaign unifying worker training and awareness raising programs on health and safety
  • Reduced number of accidents from 205 in 2021 to 190 in 2022
  • Achieved SA8000 social responsibility certification at all Italian sites
  • Marcegaglia Onlus Foundation supported 1664 children, 254 young people and 533 families in Rwanda

Governance Achievements

  • Established Sustainability Committee in 2020
  • Appointed an Advisory Board in 2022
  • Entered into a €1 billion ESG-linked loan agreement with national and international banks

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Increase rail capacity at Ravenna plant to 2 million tonnes per year by 2028
  • Install additional photovoltaic systems at other production plants for a total potential of at least 35 MWp by 2025
Short-term Goals:
  • Reduce carbon dioxide emission intensity by 6% by 2025 compared to 2021

Environmental Challenges

  • Market instability leading to temporary suspension of activities at some plants in November 2022
  • Production discontinuity in 2022 affecting energy intensity KPI
Mitigation Strategies
  • Ongoing development of automated warehouses and internal logistics at the Ravenna plant (€7 million investment)
  • Exploration of electrification of thermal processes and the use of hydrogen
  • Implementation of energy efficiency measures (revamping cooling towers, electricity recovery from methane gas expansion, trigeneration at electrical substations)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier Policy based on constant dialogue and collaboration; due diligence procedure to assess risks of human rights violations, labor issues, environmental concerns, ethical breaches, and competition issues.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 45001, ISO 50001, SA8000

Third-party Assurance: Mazars Italia S.p.A.

UN Sustainable Development Goals

  • Goal 1
  • Goal 2
  • Goal 4
  • Goal 5
  • Goal 9
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 15
  • Goal 17

Various initiatives contribute to these goals, including the Marcegaglia Onlus Foundation projects, energy efficiency improvements, waste reduction, and participation in international initiatives.

Sustainable Products & Innovation

  • Insulated panels; road barriers; profiled tubes; flat products; heavy plates.

Awards & Recognition

  • Steel Sustainability Award from NORDWEST; Cerved Rating Agency ESG rating of BBB "High"