Sustainability targets beyond 2020

SSAB’s renewed sustainability strategy “With the future in mind” has two main themes: First in fossil-free steel and Leading sustainability performance. The strategy includes goals and targets for both the short and long-term.

First in fossil-free steel

Icon 9 12 13
Target KPI Target 2021 Target 2022 Target 2026 Target 2030 Target 2040 Target 2045
Lower energy consumption/Higher
productivity for customers
Mtonne customer CO2 savings1) 10
First in fossil-free steel Fossil-free steel milestones Iowa operations in US
powered 100%
by renewable energy
Fossil-free steel to customers,
delivered on commercial terms
Raahe conversion starting Luleå conversion starting SSAB fossil-free

1) The 2020 target has been pushed back to 2021 due to the Covid-19 impacts. Customer CO2 savings are calculated by looking at SSAB shipments of high-strength steels to different customer segments and applications. The amount of steel that SSAB supplies above standard practice in the respective industry is calculated for each application (e.g. a truck). This allows determination of the weight saving achieved in the end product by using these higher-strength steels. The resulting fuel savings are estimated by using typical values for fuel consumption, driving distance, useful life, etc. Finally, the CO2 emissions saved are then calculated based on these fuel savings. New target from 2022 onwards will be set during 2021.

Lower energy consumption/higher productivity for customers

The SSAB EcoUpgraded concept highlights the environmental benefits of upgrading to high-strength steel, including reduced emissions from lower weight, improved fuel economy and extended product lifetime, but also from SSAB customers using less steel, when upgrading to high-strength steels. SSAB has set an objective related to customers upgrading to high-strength steels; SSAB is aiming at 10 million tonnes in annual customer CO2 savings by 2020. The savings will be reached by two initiatives: 8.0 million tonnes savings from SSAB EcoUpgraded deliveries and 2.0 million tonnes savings from Automotive Premium Upgrade deliveries. Due to the Covid-19 pandemic and its impacts on business, this target of 10 million tonnes has been pushed back to 2021. However, in 2019 SSAB reached 9.9 tonnes of CO2 savings for this target.

First in fossil-free steel

SSAB is undertaking a strategic roadmap to revolutionize steelmaking, and to be the world’s first steel company to deliver, in 2026, fossil-free steel to the market. This includes an active leadership role in the HYBRIT joint venture initiative with LKAB and Vattenfall. The target is to be fossil free as a company by 2045. Various milestones for SSAB and HYBRIT are outlined as targets for the coming years.

Leading sustainability performance

Safety first

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Targets KPI Target
2021
Target
2023
Target
2025
Eliminate fatalities and serious incidents Number of fatalities 0 0 0
Number of serious incidents 188 144 115
LTIF 3.4 2.0 <1.5
Reduce injuries and their severity TRIF 9.2 6.2 <5.0
LTI severity rate 16 14 10
Eliminate major process safety incidents Number of major process safety incidents 22 20 18
Safety leadership Number of safety rounds 52 800 59 900 68 600
Number of risk observations 25 900 30 100 35 300
Number of near misses prevented 12 800 15 000 17 400

LTIF = Number of injuries resulting in an absence of more than one day per million working hours. Lost time injury (LTI) is any work-related injury, resulting in the employee not being able to return to work for the next calendar day

TRIF = Total Recordable Injury Frequency. Recordable injury means the sum of reported lost time injuries, medical treatment injuries and alternate duty cases.

Serious incident = incidents involving moving machinery, cranes, falling objects, working at heights, on-site traffic, electric shocks. Units may use their own definitions if they are a requirement from the local authority.

LTI severity rate = The number of absence days as R12 months cumulative

Resource efficient operations

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Target KPI Target
2022
Target
2025
Target
2026
Target
2030
Target
2031
Target
2032
Greenhouse gas emissions
reduction
CO2e reduction, million tons -0.5 -1.2 -1.8 -3.1 -4 -4.1
CO2e reduction, %1) 4% 10% 15% 26% 34% 35%
Circularity (In the Scandinavian
production system)
Use of scrap/H-DRI2) 29% 39% 46% 54% 54%
Slag utilization3) 100% 100% 105% 107% 107%
Iowa operations in US
powered 100%
by renewable energy
50% use of EAF
in Oxelösund
100% use of EAF
in Oxelösund
25% use of EAF
in Raahe
50% use of EAF
in Raahe

1) Science Based Target initiative (SBTi) has approved CO2e reduction target for target year 2032. Includes Scope 1 and Scope 2 emissions.

2) Home scrap, purchased scrap and H-DRI (Fossil-free Direct Reduced Iron) replacing BF (Blast Furnace) route iron ore pellets

3) BF (Blast Furnace), BOF (Basic Oxygen Furnace) and EAF (Electric Arc Furnace) slag

Greenhouse gas emissions reduction / Science Based Target

SSAB's targets for greenhouse gas emissions including carbon dioxide have been approved by the Science Based Targets initiative. This means that the objective is scientifically based and in line with the Paris Agreement. SSAB is committed to reducing its greenhouse gas emissions by 35% by 2032 (based on 2018 figures and measured as CO2e). The goal applies to both direct and indirect emissions (Scope 1 and Scope 2) and is in line with the objective of keeping global warming well below 2°C. Other indirect CO2e emissions (Scope 3) are not included. The target goes hand in hand with our overall roadmap for fossil-free steel and the timetable for the HYBRIT initiative.

Science Based Targets

Use of scrap/ fossil-free direct reduced iron (H-DRI)

For SSAB in the Nordics, a transformation from the traditional blast furnace-based production route to the use of electric arc furnaces is under way. This will use scrap metal and also increasingly use fossil-free direct reduced iron (H-DRI). There is a strong focus on the recycled content on today’s market and so also for steel products. However, over time fossil-free H-DRI will have the potential to replace recycled content for steel and tH-DRI will contribute to even lower Global Warming Potential results in a lifecycle assessment (LCA). Therefore, it is relevant to include both the use of scrap and H-DRI when setting the target and following up progress on this issue.

Slag utilization

Recirculating materials back into the steelmaking process reduces the need for virgin raw materials. Material that cannot be recirculated internally can be processed into by-products and sold externally, creating new revenue streams for the company. By-products such as blast furnace slag are used as input material in a number of industries, for example in road construction and as a substitute for cement.

Responsible sourcing

Target KPI Target 2021 Target 2025 Target 2030 Target 2045
Sustainable supplier base Share of new suppliers sustainability
assessed (GRI 414-1)
100% 100% 100% 100%
Share of total spend sustainability assessed
(categorized/identified and self-assesment done)
96% 98% 100% 100%
Number of second (third) party sustainability
audits and on-site visits including social
and environmental performance of suppliers1)
37 -- -- --
Share of high-risk raw material
suppliers sustainability audited 2)
90% 100% 100%
Reduced CO2e footprint
from the supply chain
Reduced Scope 3 CO2e emissions
from the supply chain
Targets to be defined

1) Previously reported separately. Target 2021 is 7 second (third) party audits and 30 supplier on-site visits

2) Based on Verisk Maplecroft´s risk indices for human rights, political and environmental risks and Transparency International´s Corruption Perceptions index

Sustainable supplier base

To support the responsible sourcing, a number of KPIs have been set to track progress related to sustainability assessment and sustainability related audits performed.

Reduced CO₂e footprint from the supply chain

With this KPI SSAB aims at promoting and following up suppliers reduction of CO₂ emissions. Target levels are to be defined.

Zero tolerance for bribery and corruption

Target KPI Target 2021 Target 2025 Target 2030 Target 2045
Ensure ethical conduct in line with SSAB´s
corporate culture and increase knowledge
about the Code of Conduct and Ethics Line
All employees have completed the e-learning in business
ethics; including training on our Code of Conduct
95% 100%1) 100%1) 100%1)
Share of new employees covered by the on-boarding
process; including signing the Code of Conduct statement
and e-learning in business ethics
80% 100%1) 100%1) 100%1)
Share of employees who have access to the Ethics Line2) 95% 95% 95% 95%

1) Because of employee turnover, 100 % may in practice never be reached

2) Employees that do not have access to the Ethics Line have other local reporting channels

Ensure ethical conduct in line with SSAB´s corporate culture and increase knowledge about the Code of Conduct and Ethics Line

This target has been broken down into several KPIs in order to measure progress:

  • Share of employees who have completed global e-learning in business ethics
  • Share of new employees covered by the onboarding process; including signing the Code of Conduct statement and e-learning in business ethics
  • Share of employees who have access to the Ethics Line. SSAB has implemented a whistle-blower system called the Ethics Line. Employees can file a report anonymously online or by calling a global hotline 24 hours a day, seven days a week. The Ethics Line has been implemented in 14 countries and in 9 language versions. Use of the Ethics Line is completely voluntary.

Inclusion & Diversity

Target KPI Target 2022 Target 2025 Target 2030
Inclusion & Diversity Women in top management positions, % 32 35 37

Inclusion & Diversity

SSAB offers equal opportunities to our workforce regardless of age, gender, ethnicity, physical abilities, political and religious beliefs, and other attributes. In a male dominant sector, the share of women, especially in top management positions, is however, a good role model of how diversity can be increased. In increasing the share of women in top management positions, we work toward having a better bench strength by different initiatives at all levels, starting with employer branding activities aiming to support girls to select areas in schools which can lead to technical careers, finding female candidates to positions in all levels and putting extra effort in finding qualified candidates, both female and male, into leadership positions.