The steel industry, both carbon and stainless, accounts for 10% of global greenhouse gas emissions – yet our society will require more steel and energy in the future.

To solve this complex puzzle, mastering green transition is not enough. We need a profound industrial transformation that takes us beyond sustainable, and towards the everlasting.

This white paper identifies five critical shifts for leading the industry into a new era.

From carbon reduction to sustainability expansion

As carbon reduction becomes the steel industry's most urgent priority, driven by its role in 10% of global emissions, a silent race to develop zero-impact steel is underway. Yet, while decarbonisation efforts intensify, the industry must prepare for a broader set of challenges beyond carbon. Beyond the immediate need to address carbon emissions, other critical planetary boundaries, like water scarcity and biodiversity loss, will soon require equal attention.

This evolving landscape calls for a holistic approach, moving from a carbon-centric focus to a comprehensive sustainability strategy that encompasses multiple environmental dimensions.

How will the steel industry navigate this complex transition and position itself in a future defined by ever-expanding sustainability demands?

from Geopolitics to policy

As geopolitical tensions rise and protectionism resurges, the global steel industry faces a pivotal moment. Historically seen as both a commodity and a strategic resource, steel has shaped industrial growth and geopolitical alliances, from the coal and steel pact that led to the EU to its role in civil and military sectors.

However, the shift from a globalised market toward "neoglobalisation" – characterised by new security concerns and regional power dynamics – is reshaping the industry once again.

With sustainability and decarbonisation increasingly intertwined with geopolitics, and policies like the EU's Carbon Border Adjustment Mechanism challenging traditional trade flows, the question arises: is the era of open steel markets coming to an end? As the landscape evolves, the steel industry must navigate both political and geopolitical challenges to remain resilient in this new world order.

from Circular Leader to Circular Enabler

Take the lead in advancing circularity by focusing on resource efficiency, extending product lifespans, and innovating business models.

Despite recent perceptions of material abundance, industries have long grappled with scarcity, often overlooking the consequences of waste and resource depletion. The steel industry is the sector closest to circularity to date, with approximately 85% of end-of-life steel being collected for recycling globally. In new steel produced today, ~30% comes from recycled steel – leaving still room for much improvement in this regard.

However, with only 7.2% of materials reused globally in 2023, the steel sector faces a new challenge: defining what it means to be ahead in circularity and determining its next steps. While other industries work to catch up, the steel industry must continue to lead by enhancing resource efficiency, extending the lifespan of steel products, and reshaping business models to reinforce its circular advantage.

Looking ahead, the industry must leverage its leadership position to explore new frontiers and define the future of the circular economy.

FROM SHAmING PLAYERS TO CHANGING THE GAME

Learning how transitioning from a moral to a pragmatic economy can make you an industry game-changer.

The green transition has largely relied on a "moral economy," urging consumers to choose sustainable goods out of guilt or sacrifice. However, this approach has proven ineffective against the “green premium” – the higher costs associated with sustainable products due to factors like R&D and new technologies. To break free from this trap, we need to shift towards a pragmatic economy.

Public policy plays a critical role in this shift by internalising environmental costs and creating incentives for sustainable practices. Through regulations, procurement, and direct investments, governments can stimulate demand for green goods and drive the transition.

As we move beyond guilt-driven consumption, aligning market incentives with sustainable practices will be key to achieving long-term economic and environmental success.

FROM “MADE IN EU/USA” TO “MADE TO LAST”

Despite rising awareness, climate action has struggled to generate enough impact to meet sustainability goals. One challenge lies in the abstract and invisible nature of climate issues, which often leads to public indifference or disengagement. To overcome this, the green transition must become tangible, positive, and exciting, marked by a clear aesthetic identity that signifies progress.

A new aesthetic for sustainability should go beyond the color green and embrace timelessness and durability. By incorporating materials like green stainless steel that are endlessly recyclable, and promoting designs that signal longevity over disposability, we can create a visible and emotionally resonant shift towards a sustainable future.

This is a call to action for leaders, designers, and influencers to form a coalition to make sustainability visible, practical, and desirable – transforming the abstract into the tangible, and ushering in a new "everlasting era."