kloeckner takes action 2040

There has never been a greater need to create a more sustainable world. To prevent irreversible consequences of climate change, global warming must be limited to 1.5 °C. We take responsibility for our environment in order to safeguard the foundations of life for future generations. Reducing greenhouse gases is therefore our key goal.

As a pioneer in the industry and one of the few players in our sector, Klöckner & Co has signed up to the Science Based Targets initiative (SBTi) “Business Ambition for 1.5°” campaign, the world’s most ambitious and significant framework for emissions reduction. Our near-term and long-term targets, as well as our CO₂ net zero target, have been recognized as science-based by the Science Based Targets initiative (SBTi) through the regular process.

Klöckner & Co is committed to halving its directly controllable Scope 1 and Scope 2 emissions by 2030. With regard to Scope 3 emissions in our direct control (such as from business travel, employee commuting, etc.), we are going to achieve a 50% reduction by 2030. We look at the entire supply chain – including Scope 3 emissions not in our direct control.

We take a holistic view of our climate targets and therefore set them even more ambitiously: We will reduce all emissions that we can directly influence ourselves (Scope 1, Scope 2 and Scope 3 emissions that can be directly influenced) to net zero as early as 2040. Emissions that can only be influenced indirectly, in particular from purchased goods and services, will be net zero by 2050. In line with the SBTi standards, Klöckner & Co is thus committed to reducing emissions throughout the value chain to net zero by 2050.

The sustainable orientation of our company makes us pioneers in our industry and actively drives the green transformation of the economy and society.

Our focus in Scopes 1 and 2 is on our own emissions, such as from delivering products to customers using Company trucks or from the consumption of purchased electricity. To this end, we are further centralizing energy procurement and progressively switching to renewable energy sources. This enables us to speed the transition of our multi-local business to renewables Group-wide. In addition, we have begun converting our car and truck fleet to innovative means of propulsion (such as electric mobility and hydrogen). Comprehensive emission analyses and emission curbs in procurement and logistics will identify further potential for savings.

With regard to directly controllable Scope 3 carbon emissions, Klöckner & Co is making use of innovative meeting and travel concepts. We have updated our travel policy this year, under which domestic flights in Europe are only allowed in exceptional cases. Emissions from necessary medium- and long-haul flights are normally compensated. We have also introduced hybrid working arrangements with much greater scope for home working. Minimizing commuting helps save more emissions and further improve office space utilization.

As part of our strategy, we are firmly embedding green solutions in our business model and building a sustainable range of products and services. With several partnerships already in place to supply green steel, Klöckner & Co is ensuring it can already offer its customers the first green products.

Klöckner & Co has developed a scale for green and carbon-reduced steel. The scale is based on international, science-based standards and categorizes carbon-reduced steel according to certified emissions across the entire value chain from raw material extraction to production. Thanks to a classification in six categories, we enable our customers to reliably assess and compare the carbon footprint of green steel.