Climate Change Data

SHS – Stahl-Holding-Saar GmbH & Co. KGaA

Climate Impact & Sustainability Data (2021)

Reporting Period: 2021

Environmental Metrics

Water Consumption:approx. 17 million m3/year process water

ESG Focus Areas

  • Sustainable research and development
  • Sustainable production
  • Employees
  • Environment
  • Energy
  • Compliance

Environmental Achievements

  • Energy savings of around 29,500 megawatt hours per year through the EST A energy efficiency network, resulting in an annual reduction of approx. 11,750 metric tons of carbon emissions.
  • Construction of a new dedusting system for ROGESA sinter plant 3, significantly reducing dust.
  • Construction of the coke gas injection plant at the ROGESA blast furnace, partially replacing carbon with hydrogen and achieving a significant reduction in carbon emissions.
  • Construction of a compressed gas storage facility and conversion of walking beam furnaces to natural gas at Saarstahl Neunkirchen, resulting in a 5 percent reduction in energy consumption.

Social Achievements

  • Group-wide sick leave analysis with implemented measures and workshops to reduce sick leave.
  • Establishment of a Group-wide talent management system to identify and promote prospective managers.
  • Introduction of Group-wide transfer coaches to ensure succession planning and secure know-how.
  • Continued focus on occupational safety, aiming to achieve accident-free operation through measures such as “15 minutes of safety” and daily safety talks.

Governance Achievements

  • Establishment of a Group-wide compliance committee to coordinate a uniform corporate compliance concept.
  • Implementation of a whistleblower system.
  • Further expansion of the compliance management system and implementation of new control mechanisms following antitrust infringement proceedings.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon-neutral steelmaking by 2045.
Medium-term Goals:
  • Commission a third EAF and further reduce carbon emissions.
Short-term Goals:
  • Reduce carbon emissions by around 55 percent by 2030 through the construction of new EAF and DRI plants.

Environmental Challenges

  • Achieving ambitious carbon reduction targets requiring massive investments and changes in the political framework.
  • Need for subsidies and a reasonable timeframe to manage the complete transition from carbon to carbon-free reductants.
  • Ensuring the international competitiveness of future low-carbon steel production in Germany.
  • High cost of purchasing emission allowances under the EU ETS.
Mitigation Strategies
  • Defined a path to achieve carbon reduction targets and will strengthen research and development activities.
  • Seeking support from subsidies.
  • Developing a transformation plan to switch production routes to the manufacture of “green” steel, aiming for carbon-neutral steelmaking by 2045.
  • Building an electric arc furnace (EAF) at Völklingen and another EAF and a direct reduced iron (DRI) plant at Dillingen by 2030, aiming to reduce carbon emissions by around 55 percent.

Supply Chain Management

Supplier Audits: Regular audits of new and existing suppliers

Responsible Procurement
  • Selection of suppliers based on economic, technical, and sustainability criteria
  • SHS Group Code of Conduct for Sustainable Procurement
  • Risk management system for supplier assessments
  • Annual TOP Supplier distinction for fuels and iron ores

Climate-Related Risks & Opportunities

Transition Risks
  • Changes in the political framework
  • Need for subsidies
  • Ensuring international competitiveness
Opportunities
  • Development of green steel production technologies

Reporting Standards

Frameworks Used: GRI standard

Certifications: ISO 9001, IATF 16949, ISO 14001, ISO 45001, ISO 50001

Sustainable Products & Innovation

  • High-strength heavy plate reducing material usage
  • Thermomechanically rolled spring steel reducing weight in vehicle construction
  • Bainitic steels as alternative materials to classic quenched and tempered steels

Awards & Recognition

  • Gold and platinum awards for CSR activities from EcoVadis