As many as 22 A-listed steel companies in China, or 50% of A-listed firms, have disclosed their carbon reduction measures for the first time, with the China Securities Regulatory Commission – the market regulator – encouraging steel firms to make annual and bi-annual carbon disclosures as part of their environmental social governance (ESG) reports, as per latest updates available with SteelMint.
With the largest carbon emissions among 31 manufacturing sectors, China’s steel industry accounts for total annual carbon emissions of about 1.8 billion tonnes, accounting for 15% of China’s total emissions.
Companies adopt ESG chapter
According to industry classifications, there are currently 44 A-share listed companies in the steel industry. Most companies set up an ESG chapter in accordance with the requirements of the new standard, and disclosed “measures and effects taken to reduce… carbon emissions” in H1 CY’21.
Although Valin Steel, CITIC Special Steel, Yongxing Materials, and Changbao have made relevant disclosures, they have not been listed separately in accordance with the format.
Among the other half of the steel companies that did not disclose the content of carbon reduction, are leading companies such as Angang Iron and Steel Co and Hangzhou Iron and Steel Co.
If classified according to objectives, measures, and results, it is possible to gauge how the steel industry is reducing carbon. Fushun Special Steel and CITIC Special Steel are still in the “target setting” stage. Although some measures are listed in the bi-annual report, they are relatively general and no specific implementation plan has been seen.
Carbon reduction
The main carbon reduction measures include refined energy management, application of new energy-saving technologies, promotion of energy-saving project construction, development and utilisation of new energy, etc.
Firms declare bi-annual reports
In the bi-annual report, Baotou Iron and Steel Co, Shandong Iron and Steel, Linggang Co. Ltd., Nangang Co., Ltd., Anyang Iron and Steel Co., Ltd., Maanshan Iron and Steel Co., Ltd., and Chongqing Iron and Steel Co have disclosed the carbon emission intensity and energy consumption per ton of steel in H1.
Baotou Steel’s carbon emission intensity in the first half of the year was reduced by 7% year-on-year, while Nanjing Iron and Steel Co., Ltd. reduced its carbon dioxide emissions by 17,000 t in H1 by increasing self-generation capacity.
In terms of comprehensive energy consumption per tonne of steel, due to the different disclosure dimensions of various steel companies, the comprehensive energy consumption per tonne of steel of Baotou Steel Co. has decreased by 3.4% year-on-year.
To achieve the “dual carbon goal” of the steel industry (achieving peak carbon emissions by 2025 to reduce carbon emissions by 30% from the peak by 2030, and to achieve carbon emissions reductions of 420 mn t), it is still necessary for iron and steel companies to work together to explore green and low-carbon development.
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