� SUSTAINABILITY REPORTING �
Quantifying the value of green steel
The transition to green steel is not just a technological challenge— it is also an economic one. To make the case for sustainable steel compelling to investors, customers, and regulators, the industry must better quantify and monetize the business case for green steel. This means translating sustainability performance into measurable value, such as reduced regulatory risk, preferential financing, or premium pricing from climatefocused buyers.
AI plays a key role here by helping organizations model the carbon footprint of their operations and estimate the downstream benefits of switching to green steel inputs. For steel producers, this enables clearer storytelling around their decarbonization efforts. For customers, particularly those in sectors like automotive and construction, it provides a way to demonstrate Scope 3 emissions reductions and make more informed procurement decisions.
Decarbonizing the value chain, not just production
While much of the focus on decarbonization has been on production technologies— such as hydrogen-based steelmaking— there is a growing recognition that the entire supply and value chain must be addressed. From mining and material transport to final product delivery, each stage of the steel value chain presents opportunities to reduce emissions.
AI-powered optimization tools are being deployed to reduce inefficiencies in logistics, supply chain management, and transportation, helping companies minimize energy use and emissions beyond the blast furnace. By integrating carbon data into these systems, companies can track the full carbon lifecycle of their steel products, creating a more holistic view of sustainability performance.
Regulatory drivers: CBAM and global pressure
The regulatory environment in the EU is shifting rapidly. CBAM, set to be fully phased in over the coming years, will impose a carbon cost on imported steel, aligning it with the EU Emissions Trading System. This is particularly significant given that 28 % of steel consumed in the EU is imported, often from countries with fewer decarbonization requirements. For steelmakers and their global customers, complying with these rules requires accurate, auditable, and harmonized emissions data.
Financial institutions are also under increasing scrutiny to assess climate risks in their lending and investment portfolios. This includes gathering emissions data from financed entities— data that is often incomplete, inconsistent, or unverifiable.
The data challenge: Fragmentation and fatigue
One of the biggest hurdles in sustainability reporting is the fragmented and inefficient way data is collected. Steel producers and their customers are often asked to submit multiple versions of the same data in different formats to various financial institutions, regulators, and partners. This repetitive, manual process not only drains time and resources, but also undermines data quality and consistency.
Moreover, financial institutions now require granular, assetlevel emissions data for accurate risk assessment— a level of detail that is both difficult and expensive for companies to gather and maintain.
The role of LEO: A single, AI-powered reporting solution
To address these challenges, platforms like LEO by ESG Book are changing the game. Developed in partnership with
Green Steel World | Issue 18 | June 2025 29