The steel industry faces significant challenges related to climate change and the need to reduce its carbon footprint, having long been accused of contributing to environmental pollution. Major global entities have emphasized the importance of decisive action to preserve the climate, with sustainable development goals supported by organizations such as the United Nations, the Paris Agreement, the International Energy Agency, the WTO, and the Climate Club.
In November 2024, the World Steel Association released its latest sustainability performance report for the steel industry, covering the period from 2003 to 2023. This report ranks companies based on three main criteria: Environmental Performance, Social Performance, and Economic Performance. The study includes contributions from companies and associations representing 51% of the world's steel production, approximately 950 million tons.
Several members of the Arab Iron and Steel Union were honored among the top 30 companies on the World Steel Organization’s sustainability list, including:
- AlMarakby Steel (Egypt), ranked 23rd
- EMSteel (UAE), ranked 24th
- EZZ Steel (Egypt), ranked 25th
Other notable performers include:
- Qatar Steel (Qatar), ranked 50th
- Hadeed (Saudi Arabia), ranked 53rd
- Sulb (Bahrain), ranked 62nd
The Arab Iron and Steel Union has prioritized sustainability and carbon neutrality in the iron and steel industry in Arab countries, particularly as 99% of Arab countries' production is achieved through direct reduction technology and electric furnaces relying on iron scrap. The Federation’s Technical Committee reported in September 2024 that the average carbon dioxide emissions of Arab steel companies are 1.16 CO2 equivalent per ton, compared to the global average of 1.91 CO2 equivalent per ton, representing 1% of global carbon dioxide emissions.
Many Arab steel companies have adopted medium- and long-term plans to achieve carbon neutrality, with strict environmental commitments in production processes aligned with sustainable development goals. For example, EMSteel has utilized 84% clean electricity in its operations, making significant progress in decarbonizing its activities and supply chain. Additionally, the company has partnered with the MASDAR Group to successfully launch the first pilot project producing Green Steel using Green Hydrogen instead of Natural Gas.
