ArcelorMittal: Pursuing Net Zero in a Hard-to-Abate Sector
The pursuit of net zero will require huge emissions reductions from every sector in the global economy.
It’s a proposition that is easier for some sectors than others. The financial services and IT sectors, for instance, are making impressive inroads on decarbonisation.
But for heavy industries like aviation, manufacturing or mining, sustainability is far more difficult. These are known as ‘hard-to-abate’ sectors.
ArcelorMittal is one of the world's leading integrated steel manufacturing companies.
Its operations span 60 countries with primary steelmaking facilities in 15 nations, giving its sustainability efforts substantial global significance.
The company generated revenues of US$62.4bn in 2024, producing 57.9 million metric tonnes of crude steel and 42.4 million tonnes of iron ore.
In short, its carbon footprint is sizable, and it shoulders a huge responsibility when it comes to decarbonising the sector.
In accordance with this responsibility, ArcelorMittal has published its 2024 Sustainability Report, detailing the progress it is making.
Decarbonisation progress faces economic hurdles
ArcelorMittal is investing large sums of money in sustainable initiatives, with US$1bn going towards decarbonisation since 2018.
The report reveals that absolute emissions from ArcelorMittal's 2024 operating perimeter are nearly 50% lower than in 2018, which reflects the company’s disposal of some of its higher-carbon assets.
Many of its furnaces, for instance, now run on electricity rather than fossil fuels.
Electric arc furnace (EAF) production now accounts for 25% of global production, up from 19% in 2018.
But the economic toll of decarbonisation is weighing on the firm.
"It is becoming increasingly clear that transformational ironmaking, such as adding carbon capture, utilisation and storage (CCS) or moving to green hydrogen DRI-EAF, is only likely to be economical post 2030," says Aditya Mittal, CEO of ArcelorMittal.
The company's current carbon intensity stands at 1.75 tonnes of CO₂ per tonne of crude steel (Scopes 1 and 2), below the global industry average of 1.92 reported by the WorldSteel Association.
Several ArcelorMittal sites are already producing low-carbon steel with CO₂ intensity as low as 100kg per tonne.
ResponsibleSteel certification expands
A significant achievement highlighted in the report is the expansion of ResponsibleSteel certification across the company's operations.
An additional nine sites achieved certification in 2024, bringing the total to 42 certified facilities.
"ArcelorMittal has long championed ResponsibleSteel, which encompasses 12 environmental, social and governance principles, with more than 400 requirements, covering topics from health and safety to biodiversity," Aditya explains.
This certification represents a comprehensive approach to sustainable steel production across multiple impact areas.
Policy clarity needed for future progress
The report underscores the critical role of supportive policy frameworks in enabling further decarbonisation of this hard-to-abate sector.
“I am grateful to European leaders for the time they have invested in addressing these critical topics and now hope that the Steel and Metals Action plan will be translated into swift action,” Aditya says.
Without such clarity, the company notes significant uncertainty in projecting emissions reductions over the next five years.
ArcelorMittal's sustainability efforts extend beyond emissions reduction to include biodiversity management, human rights initiatives and development of climate solution products that support the wider transition to a low-carbon economy.
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