Sustainable steel

Sustainability certification program launched for entire steel value chain.

Transitioning to net zero is one of the greatest challenges the world has ever faced. It will require a complete transformation of how we live, work, build, consume and travel.

The built environment will play a major role in this transformation. According to the World Green Building Council, 75% of annual global greenhouse emissions are from the built environment (encompassing buildings and infrastructure). Buildings are responsible for approximately 30% of global energy consumption, 30% of greenhouse gas emissions and, on average, 50% of emissions in major cities.

Over the next 40 years, the World Green Building Council estimates that 230 billion square metres of new buildings will be constructed— the equivalent of a city the size of Paris, every week. In addition, up to 75% of the infrastructure that will be needed by 2050 is yet to be built. It is critical then that design and investment decisions made today consider the scale, scope and severity of climate change impacts that will affect these built assets.

“Momentum for change is being driven across a broad range of fronts,” said According to Jerusha Beresford (Sustainability Manager, ASI). “Large corporates such as BHP and Lendlease are putting their supply chains on notice. Super funds and banks are targeting investments in public companies with high sustainability credentials. Increasingly, government departments, project proponents, builders and developers are specifying that steel supplied by fabricators, rollformers, reinforcing suppliers, small manufacturers and steel processors must comply with best practice sustainable operations,” said Beresford.

A robust policy context

It has been a momentous year for Australia in paving the way for a more sustainable future. In September 2022, the Australian Government legislated emissions reductions targets of 43% by 2030 (on 2005 levels) and net zero by 2050. These targets are enshrined in law in the Climate Change Act 2022. These targets will play a key role in limiting global temperature increases and ensuring Australia’s transition to a low carbon future consistent with our commitments under the Paris Agreement.

To support this commitment, the Australian Government recently reformed the Safeguard Mechanism which requires Australia’s largest greenhouse gas emitters to keep their net emissions below an emissions limit. The Safeguard Mechanism (Crediting) Amendment Bill 2023 was passed on 31 March 2023, which the requires emitters to adhere to harsher emissions reduction targets. In line with these federal changes, various state governments are also introducing policy changes for the built environment, including the New South Wales State Environmental Planning Policy (Sustainable Buildings) 2022, which will come into effect on 1 October 2023. In the wake of this, the Australian Steel Institute (ASI) recently launched Steel Sustainability Australia (SSA).

SSA offers a new certification program that provides a clear pathway for steel businesses to operate more responsibly and transparently while being part of an environmentally and socially sustainable future. “The Steel Sustainability Australia certification program was developed in response to the ever-present focus on the sustainable performance and decarbonisation of the Australian construction industry, including the exponential growth in demand for lower carbon and responsibly sourced construction materials,” said Beresford. “This is borne from the global focus on climate change and the net zero carbon emissions targets set by Governments and corporations alike, as well as the need for a more sustainably operating society in growing urban populations. Specifiers need to be able to identity more sustainable building products, and steel suppliers need certification that their products are sustainably manufactured and processed and are sourced through responsible and ethical supply chains.”

Superseding ASI’s Environmental Sustainability Charter, the SSA program engages the entire steel value chain by certifying downstream steel businesses such as fabricators, roll formers, and reinforcing processors, and verifying upstream steel producers against best practice environmental, social and governance (ESG) indicators aligned to the principles supporting the Green Building Council of Australia’s (GBCA) Responsible Product Framework.

The SSA Certification Program:

• Assures certified steel suppliers and their products are sustainably manufactured and processed and are sourced through responsible and ethical supply chains

• Promotes steel as a sustainable material choice, supporting mega trends such as embodied carbon reduction and circularity/circular economy

• Provides specifiers, engineers, builders and government with the means to identify sustainable steel suppliers through transparent and consistent measurement of environmental, social and health impacts across the entire steel value chain.

The SSA program is a recognised initiative under Green Building Council of Australia’s (GBCA) Responsible Product Framework, rewarding points under Green Star rating tools. steelsustainability.com.au