Six international banks to disclose carbon intensity of steel…

Six international banks have agreed to measure and publicly disclose the carbon intensity of their steel lending portfolios, in an attempt to push an industry reliant on highly polluting coal towards net-zero emissions.

Citi, Crédit Agricole CIB, ING, Sociéte Générale, Standard Chartered and UniCredit have each pledged to start recording and reporting emissions data from next year, signing up to a set of sustainable steel principles developed in partnership with non-profit research organisation RMI.

The banks have agreed to disclose the extent to which steel sector borrowers are on course to reach net zero emissions by 2050 and to help limit the rise in global temperatures to 1.5°C.

''With demand for steel projected to grow 30% by 2050, emissions are set to rise significantly if we continue with business as usual.”
Non-profit research organisation, RMI

“With demand for steel projected to grow 30% by 2050, emissions are set to rise significantly if we continue with business as usual,” RMI stated.

The agreement is based on the Poseidon Principles, a 2019 agreement between banks and shipping companies to integrate vessel emissions data into financing arrangements. Signatories are now providing more than $1bn per year in sustainability-linked loans under that agreement, RMI said.

As well as standardising measurement and reporting of in-scope emissions, the sustainable steel principles contain instructions on how to obtain credible data, engage clients on net-zero transition plans and use the framework for wider industry advocacy and leadership.

“The decarbonization of this industry will require very significant investments over the next 30 years. Banks will have a large role to play in providing part of the funding required to realise this.”
Arnout van Heukelem, global head of metals, mining and fertilisers at ING

Arnout van Heukelem, global head of metals, mining and fertilisers at ING, hails the framework as 'the first climate aligned finance agreement for the steel sector'.

“The decarbonization of this industry will require very significant investments over the next 30 years. Banks will have a large role to play in providing part of the funding required to realise this,” he commented.

Annie Heaton, chief executive of non-profit organisation ResponsibleSteel, said the principles “fill a missing link in the efforts to decarbonize the steel industry, by providing a platform for lenders to set clear expectations of their clients and accelerate the flow of funds to near-zero greenhouse gas steel production”.

Source: Global Trade Review

Six international banks to disclose carbon intensity of steel portfolios

''With demand for steel projected to grow 30% by 2050, emissions are set to rise significantly if we continue with business as usual.”

“The decarbonization of this industry will require very significant investments over the next 30 years. Banks will have a large role to play in providing part of the funding required to realise this.”