[ COVER STORY ] indispensable for the successful implementation of the company ’ s goals and the market introduction of Circle Green .
“ Of course , the beginning was not easy . Simply knowing that you have a good product is not enough , but it is of utmost importance to have the capability to transfer the message of what we are offering to our customers . Therefore , we focused on raising market awareness and educating our teams to be able to engage with various players along the value chain ,” Dr . Menzel underlined .
Proud of the team and their journey so far , he went on to add : “ One of Outokumpu ’ s key strengths lies in our team ’ s commitment and the undisputed belief that we are doing the right thing . With that , we were able to identify the right partners and prepare the market . I am convinced this is the main reason for our early success . Therefore , I would like to congratulate all my colleagues along the value chain . From procurement , through operations , supply chain , and marketing to sales and our partners on the customer side . It was a true team effort and we can only avoid climate change together .”
Such complex endeavours are as challenging as much as they are rewarding . Among other vital aspects , the general
ESG ( Environmental , Social and Governance ) conformity must be closely supervised . At Outokumpu , ESG-relevant topics are integrated into the day-today activities .
“ Putting together crossfunctional teams that are able to assess the whole supply chain allowed us to execute and implement such complex initiatives . We ensure that our partners and suppliers also conform with our ESG criteria which can be even more important than the ultimate CO 2 footprint ,” Dr . Menzel stressed .
Acknowledging the value of a clean product
We are witnessing discussions about green steel premiums , which are required to cover the additional cost of pollutionfree production and respective investments . As Dr . Menzel explained , nothing comes just by itself , and to be able to decarbonise steel production , large investments are inevitable . As an EAF-based producer , Outokumpu avoided certain investment costs , such as the transition from blast furnaces to new technology . However , other challenges and investment needs are certain to go forward in decarbonisation . “ Besides additional costs in production of CO 2 -reduced products , further decarbonisation of our regular production will not come by itself . Naturally , we are striving
The badge representing one of Outokumpu ’ s latest milestones – being validated by TÜV Süd according to DIN EN ISO 14067 in November 2023 .
to decrease the footprint of our regular stainless steel offering . These reasons alone show why the green steel premium is inevitable ,” he pointed out .
A true testament to success
As for any company embarking on its sustainable journey , being validated by the Science Based Targets initiative ( SBTi ) signified a crucial milestone for Outokumpu . With an approved 1.5 ° C SBTi target in place since December 2021 , the company ’ s trend of third-party verification did not end there .
Aside from the aforementioned TÜV Süd verification , Outokumpu has also received a Platinum level recognition from the sustainability rating platform EcoVadis in December 2023 . The Platinum level rating indicates that Outokumpu is among the top 1 % of the companies in the iron and steel manufacturing industry evaluated by EcoVadis .
Green Steel World | Issue 10 | February 2024 9