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