Fergus Wooler
December 15, 2024
3 new insights on the future of steel certifications
Environmental product certifications in the EU are rapidly evolving following the introduction of a series of new regulations. For steel producers, this means that obtaining certifications will become more complex and require an overhaul in production processes. Gain an understanding of the latest developments from three topic experts.
In this interview, industry experts, Ylva Frithiofson and Bastian Wittstock from Ramboll, and Helén Axelsson from The Swedish Iron and Steel Producers' Association (Jernkontoret) explain what changes to steel certifications are coming and the actions that steel producers can take to future proof operations.
Ylva Frithiofson, Global Market Director at Ramboll: “Today, there are more than 400 voluntary environmental labels worldwide. On top of this, a wide range of products are making environmental claims, which are often poorly defined, explained, and understood. These labels and claims are often based on incomparable methods of measuring and assessing environmental impacts. In the EU alone, over 100 labels are active and within steel products, there are over ten product certifications such as Responsible Steel, a range of company labels, and GSCC’s Steel Climate Standard.
When the Green Claims Directive (GCD) comes into full force in the EU over the next couple of years, we expect that many of the certifications administered by trade associations and large companies will be scrapped as compliance with requirements in the GCD will set the standard.”
Helén Axelsson, Energy and Environment Director at The Swedish Iron and Steel Producers' Association (Jernkontoret): “One problem is that there are so many actors who want to be involved and have an influence. Different measurement methods and definitions of what constitutes low-emission steel are being developed and there is sometimes a lack of understanding about the steel industry's processes, products, and the associated complexities. In response, standard setting bodies, steel producers, and industry associations have introduced the Steel Standards Principles, to pave the way for common emissions measurement methodologies.
In parallel, a revision of ISO standard 20915 for the Life Cycle Inventory (LCI) of steel is also underway. To be able to compare products and suppliers, emissions must be reported in the same way. Today, many companies use Environmental Product Declarations (EPDs) since they provide the best standard currently available, but even EPDs are not completely comparable.
In addition, several companies market a range of brands where data is reported in different ways - which may be transparent, but it is not comparable.”
“There is a lot of work to be done to achieve a common measurement methodology and, by extension, a shared and consistent view on what constitutes near-zero or low emission steel.”
Bastian Wittstock, Global Technical Director for Decarbonisation at Ramboll: “The Construction Products Regulation (CPR) is currently being revised. As part of the EU Commission’s so-called “CPR Technical Acquis” process, rules have been established to define Life Cycle Assessment (LCA)-based environmental indicators. The primary focus is on Global Warming Potential (GWP), the measure for climate impacts. This and other environmental indicators will be essential characteristics for building products under the CPR.
The first product groups that will have to publish complementary Product Category Rules for how to accurately calculate these essential characteristics are “Structural Metallic Products” and “Precast Concrete Elements.” For these kinds of products, mandatory LCA-calculations and declarations of data very similar to EPDs will be required after the end of 2025.
A thorough validation process through national Notified Bodies will provide confidence in the documented data. As this will become a prerequisite for the CE-marking of products and the marketing of products in the EU, steel manufacturers need to start preparing today to be able to deliver the declarations when they are due.”
Ylva: “Iron and steel are categorised as intermediary products and prioritised for legislative requirements under the Ecodesign for Sustainable Products Regulation (ESPR). The ESPR has a strong focus on product information and improving environmental performance. Labels and certifications will be intricately connected to the requirements of the Digital Product Passes, and data reporting will be based on LCA methodology. Requirements for the LCA methodology are in development to enable evaluation of key product information regarding recycling and environmental footprints.”
Helén: “The ESPR is focused on product groups and the development of the methodology for steel aims to determine which product aspects are relevant for different product groups. The rules developed under the CPR are also important. Since steel is used in a wide range of applications, it is essential that there is uniformity in the requirements of these different regulations to avoid inconsistencies and excess administration.
When it comes to recycling, steel (like other metals) is 100% recyclable and there are both technologies to recycle and a functioning market for scrap (sorted iron and steel). However, there is not enough scrap to meet the entire demand for steel because steel products have a long life span and steel demand and therefore production, have increased over a long period of time.
The proportion of scrap as a raw material will increase and the composition of scrap will change over time. This may mean that new sorting methods and classifications will need to be developed. Another aspect is the use of co-products from steel production as raw materials in other sectors. This could be a win-win situation for both producers and users.”
Ylva: Unfortunately, there will not be any easy shortcuts for steel producers that are looking to navigate these changes.
“To future proof themselves, producers will need to overhaul their production processes, make major investments in innovative technology, and find new ways to source raw materials.”
- Make investments in new low emissions technologies.
- Invest in LCA software to achieve automation of their calculations and declarations based on actual data and sustainable supply chain management software to manage massive quantities of data. Don’t forget to consult experts on how to effectively navigate this journey.
- Implement a circular transition plan and enhance engagement on industrial symbiosis platforms.
- Develop or improve your sustainability supply chain strategy.
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Want to know more?
Ylva Frithiofson
Market Director, Sustainability
+46 70 386 33 19
Bastian Wittstock
Principal
+49 162 6448476