Publication | Methodology ACT Iron & Steel Sector

Publication | Methodology ACT Iron & Steel Sector
A post by:
David El-kaïm David El-kaïm
Eliott Rabin Eliott Rabin Consultant

The ACT – Assessing low Carbon Transition® initiative, led by the CDP and ADEME, recently published a methodology for the Iron & Steel sector. This is the 10th sector methodology available, and one of many ACT methodologies that I Care has helped to develop.

The ACT Initiative

The ACT – Assessing low-Carbon Transition® initiative, launched in 2015, aims to engage and empower organizations in the fight against climate change, in a context of growing corporate awareness. To this end, ACT is developing benchmarks to assess the maturity of companies with respect to the transition to a low-carbon economy. Sector-specific methodologies are developed to match each business sector’s specificities and work on the most relevant levers. 

I Care has accompanied the implementation of the Iron & Steel sector methodology from the beginning, from the methodological development phase in 2020 to the testing phase, to the final publication of the methodology.

The ACT Iron & Steel Methodology

The Iron & Steel sector is one of the largest greenhouse gas emitting sectors in the global industry, accounting for 7% of total global emissions, and 30% of global industrial emissions. As this is a complex technical sector, one of the main challenges in developing the methodology was to create a model simple enough to be understood and applied by analysts and companies, but detailed enough to capture the diversity of economic actors and activities in the sector.

This required a detailed analysis of the value chain, which led to the construction of different low-carbon trajectories between the Scrap-EAF route and the other routes. The technological subtleties existing in this sector led the teams to build a specific model to calculate the scores of the different modules. In particular, in order to allow the comparison of different players, the calculation of scope 1+2 emissions had to be adapted to arrive at the notion of an “inclusive scope 1+2” (see the detailed ACT Iron & Steel methodology for more details).

Iron, Steel, Methodology

Value chain of the Iron & Steel sector. Source: ACT Iron&Steel Full Methodology

The test phase on actual companies, co-conducted by I Care and Deloitte, then enabled the methodology developed to be compared with the data available and the reality of the implementation of the methodology. I Care would like to thank the players who agreed to take part in the exercise. Their commitment made it possible to obtain a more robust and realistic methodology.

Companies that participated in the testing phase of the ACT Iron&Steel methodology.

In the past, I Care has worked with ADEME and CDP on several missions for the ACT initiative, including both methodological development and support to companies in their assessment. Thank you to our partners who have trusted us throughout these missions.

 

For more information:

Find all our latest publications in theNews section of the website.

Main menu