Mining giant Anglo American and Japan’s largest steel maker Nippon Steel have signed a memorandum of understanding to work together to accelerate the transition to lower carbon steelmaking, building on the premium physical qualities of Anglo American’s iron ore to help drive emissions reduction. Anglo American supplies high quality steelmaking coal and iron ore to steel customers around the world. As part of this agreement, the two companies will research ways to optimize premium lump ore produced by Anglo American’s mines to decrease emissions via the traditional blast furnace steelmaking process.The project will also focus on studying the use of Anglo American’s iron ore in the more carbon-efficient direct reduction iron steelmaking method. DRI is estimated to generate significantly lower emissions than the more prevalent steelmaking routes of blast furnaces and basic oxygen furnaces.In March 2021, Nippon Steel announced its "Nippon Steel Carbon Neutral Vision 2050," the company's flagship initiative to respond to climate change. Through this programme, shaped around the transition to innovative and more sustainable production methods, and the adoption of innovative technologies, Nippon Steel aims to reduce emissions by 30% by 2030 and achieve carbon neutrality by 2050.In October 2021, Anglo American issued its climate change report and presented its ambition of a 50% reduction in Scope 3 carbon emissions by 2040, and further developed their existing commitments by aiming to attain carbon neutrality within all operations by the same year. The report offered a multilayered approach such as developing high-quality products that correspond to more efficient, low-carbon manufacturing processes, minimizing emissions while improving efficiency, and working with customers to boost initiatives toward decarbonization.