Brazilian steel producer Gerdau announced that it has undertaken to reduce its greenhouse gas emissions from its Scope 1 and 2 inventories to a value lower than 50% of the global average for the steel industry. Currently, the company has one of the lowest average emissions of greenhouse gases of 0.93 tonne of CO2e per ton of steel, which represents approximately half of the global average of the sector, of 1.89 tonne of CO2e per ton of steel, according to 2020 data released by the World Steel Association. In 2031, Gerdau's carbon emissions will decrease to 0.83 tonne of CO2e per tonne of steel. In order to reduce greenhouse gas emissions over the next ten years, Gerdau will expand the use of ferrous scrap as a raw material for steel production, increase its forest area, responsible for the production of charcoal, which works as a bio-reducer in the manufacture of pig iron, and increase the use of renewable energy, such as the solar parks already announced in Brazil and the United States. The company will also invest in initiatives of greater energy and operational efficiency at its units, in new technologies and open innovation.Gerdau's production mix, whose steel production is approximately 80% based on the use of recycled and renewable sources, allows the company to have a prominent position in the steel industry. Today, 73% of the steel produced by the company comes from the recycling of ferrous scrap, making it the largest recycler in Latin America, with 11 million tons of scrap transformed into steel annually. Steel is an infinitely recyclable material, and for every ton of scrap recycled, the emission of 1.5 tons of CO2e is avoided. In addition, Gerdau is the world's largest producer of charcoal for steel production. It has 250 thousand hectares of forest base in Minas Gerais. Planted forests are raw materials from a renewable source for charcoal, which works as a bio-reducer in the manufacture of pig iron, which produces steel with a lower intensity of greenhouse gases.Gerdau is also announcing its ambition to achieve carbon neutrality by 2050. The company emphasizes that carbon neutrality requires mature technologies, which do not yet exist on an industrial scale, and public policies that enable the global steel industry to neutralize its carbon emissions. In this sense, the company actively participates in collaboration with sectoral entities, universities and research centers in the search for disruptive technologies for the production of steel and encourages dialogue and joint work with various actors in society for the implementation of initiatives, such as access to differentiated local, national or transactional credit lines, from public or private sources. These credit lines will be essential due to the high investment values necessary for developing disruptive technologies so that steel can be produced with low emissions of greenhouse gases.
Brazilian steel producer Gerdau announced that it has undertaken to reduce its greenhouse gas emissions from its Scope 1 and 2 inventories to a value lower than 50% of the global average for the steel industry. Currently, the company has one of the lowest average emissions of greenhouse gases of 0.93 tonne of CO2e per ton of steel, which represents approximately half of the global average of the sector, of 1.89 tonne of CO2e per ton of steel, according to 2020 data released by the World Steel Association. In 2031, Gerdau's carbon emissions will decrease to 0.83 tonne of CO2e per tonne of steel. In order to reduce greenhouse gas emissions over the next ten years, Gerdau will expand the use of ferrous scrap as a raw material for steel production, increase its forest area, responsible for the production of charcoal, which works as a bio-reducer in the manufacture of pig iron, and increase the use of renewable energy, such as the solar parks already announced in Brazil and the United States. The company will also invest in initiatives of greater energy and operational efficiency at its units, in new technologies and open innovation.Gerdau's production mix, whose steel production is approximately 80% based on the use of recycled and renewable sources, allows the company to have a prominent position in the steel industry. Today, 73% of the steel produced by the company comes from the recycling of ferrous scrap, making it the largest recycler in Latin America, with 11 million tons of scrap transformed into steel annually. Steel is an infinitely recyclable material, and for every ton of scrap recycled, the emission of 1.5 tons of CO2e is avoided. In addition, Gerdau is the world's largest producer of charcoal for steel production. It has 250 thousand hectares of forest base in Minas Gerais. Planted forests are raw materials from a renewable source for charcoal, which works as a bio-reducer in the manufacture of pig iron, which produces steel with a lower intensity of greenhouse gases.Gerdau is also announcing its ambition to achieve carbon neutrality by 2050. The company emphasizes that carbon neutrality requires mature technologies, which do not yet exist on an industrial scale, and public policies that enable the global steel industry to neutralize its carbon emissions. In this sense, the company actively participates in collaboration with sectoral entities, universities and research centers in the search for disruptive technologies for the production of steel and encourages dialogue and joint work with various actors in society for the implementation of initiatives, such as access to differentiated local, national or transactional credit lines, from public or private sources. These credit lines will be essential due to the high investment values necessary for developing disruptive technologies so that steel can be produced with low emissions of greenhouse gases.
