scorecard<\/a> created by SteelWatch has assessed whether 18 major steelmakers headquartered in Asia, Europe and the Americas are ready for that transition. Our finding is a clear, and worrying, no.<\/p>\n\n\n\nAssessed on 21 indicators across five categories, including their performance on phasing out coal use and scaling green solutions, not a single company scored above 50 points out of the possible 100. With the majority achieving between 20 and 30, the results illustrate the \u201ctransition readiness gap\u201d \u2013 the difference between what is needed for a credible near-zero-emissions transition and what companies are actually doing.<\/p>\n\n\n\n
Most of the companies assessed in our scorecard have set net-zero targets for 2050, or even before, including all eight of those headquartered in Asia. Yet the scores highlight that structural change is missing to bridge the gap and meet these targets. For the majority of companies, investment continues in long-lived coal-based blast furnaces. Retirement of such facilities, and transition plans, are missing. Coal consumption is not yet on a steady decline. <\/p>\n\n\n\n
Meanwhile, company action on green iron barely registers a flicker. Shifting to such iron, which is made using green hydrogen instead of coal, will be essential to tackle the bulk of steel industry emissions. With a total of 25 points available for producing or procuring green iron, as well as the uptake of renewable energy, the average score was less than 1.<\/p>\n\n\n\n
Four companies were assessed from the world\u2019s two largest steel-producing nations, China and India. Their scores, ranging from fifth place to last place, reflect the wider dependence on coal for steelmaking in both countries. And yet the diversity in their performance also reveals how companies are making progress in different ways.<\/p>\n\n\n\n
Of all 18 companies in the scorecard, India\u2019s Tata Steel has the highest emissions intensity \u2013 meaning greenhouse gas emissions per unit of crude steel \u2013 and its compatriot JSW Steel has the second highest. In both cases, this is driven by reliance on coal-powered blast furnaces and a low usage of scrap, which can act as a substitute for iron made from ore and help to reduce emissions.<\/p>\n\n\n\n
But the two companies also show some areas of stronger performance. JSW Steel scored highest on social and environmental responsibility among all companies assessed. Over the last four years, it has reduced air pollution and improved occupational health and safety. Its emissions intensity has also declined, albeit from high levels.<\/p>\n\n\n\n