Steel Dynamics Announces Certified, Science-Based Greenhouse Gas Targets

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Oct 10, 2024, 06:00 ET

FORT WAYNE, Ind., Oct. 10, 2024 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced certified, science-based greenhouse gas (GHG) emissions intensity targets for its steel mills. In alignment with the 1.5° C scenario set forth in the Paris Agreement, Steel Dynamics set a 2050 emissions intensity target of 0.12 metric tons of CO₂e per metric ton of hot rolled steel produced. The company also set an interim 2030 emissions intensity target of 0.80 metric tons of CO₂e per metric ton of hot rolled steel produced, representing a 15% reduction, compared to the company's 2022 base year. These GHG emissions targets were established using the Global Steel Climate Council's (GSCC) Steel Climate Standard.

The GSCC provides science-based target certifications that are aligned with the Paris Agreement's goals and with the International Energy Agency's Net Zero by 2050: A Roadmap for the Global Energy Sector. The GSCC's Steel Climate Standard measures key steelmaking GHG emissions through hot rolling including Scope 1, Scope 2, and upstream Scope 3 emissions categories. The company's announced science-based GHG emissions intensity targets and 2022 base year data have been verified by a third-party, KERAMIDA, and certified by the GSCC.

"Steel Dynamics is already a leader in producing lower-carbon steel products," stated Mark D. Millett, Chairman and Chief Executive Officer. "In 2023, we achieved our previously announced 2025 GHG emissions intensity and renewable electrical energy goals ahead of schedule. Even though our emissions are already among the lowest in the industry, we are committed to further reducing our carbon impact and have an actionable path forward. As evidence of our dedication to this ongoing effort, among other projects, we are investing in an over $260 million biocarbon production facility that we expect will further decrease our Scope 1 emissions by as much as 35%."

In 2023, the company began construction of the biocarbon production facility located in Columbus, Mississippi. This biocarbon is a renewable and sustainable source of carbon that will be used as a replacement for anthracite in the company's steelmaking operations. The facility is projected to begin commissioning in the first quarter of 2025.

Additionally in 2023, the company signed the largest renewable product purchase agreement for the steel industry in North America, equivalent to approximately 15% of the company's steel mills' electricity usage in 2023. This wind energy center began commercial operation in the first quarter of 2024. These initiatives represent meaningful steps toward decarbonization.

As there is more to achieve, the company will continue working to:

Identify and implement GHG emissions reduction projects,
Improve energy management to reduce GHG emissions and enhance operational efficiency,
Increase the use of renewable and nuclear energy, including partnering with utilities, and
Research, develop, and implement innovative technologies.

"Steel is an integral component of the global economy and foundational to the world's essential infrastructure. Specifically, lower-carbon steel is necessary for the transition to a lower-carbon global economy," said Millett. "With these new targets and a proven track record of progress, we are demonstrating our commitment to continue making the steel required for a sustainable future."

For additional information on our science-based GHG emissions intensity targets view the presentation on our website at www.steeldynamics.com under "Sustainability – Valuing the Environment."

About the Global Steel Climate Council
GSCC is a non-profit organization that leads efforts to reduce steel carbon emissions and encourages investments in lower-carbon emission technology as part of the global effort to decarbonize economies and societies. GSCC members are steel manufacturers, associations and other organizations in the steel supply chain that have a presence in 80+ countries around the world.

For more information, please visit GlobalSteelClimateCouncil.org.

About Steel Dynamics, Inc.
Steel Dynamics is one of the largest domestic steel producers and metals recyclers in North America, based on estimated annual steelmaking and metals recycling capability, with facilities located throughout the United States, and in Mexico. Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections, and steel joists and deck. In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.

Forward-Looking Statements
This press release contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel, aluminum, and recycled metals market places, our revenues, costs of purchased materials, future profitability and earnings, the operation of new, existing or planned facilities and decarbonization goals and sustainability efforts. These statements, which we generally precede or accompany by such typical conditional words as "anticipate", "intend", "believe", "estimate", "plan", "seek", "project", or "expect", or by the words "may", "will", or "should", are intended to be made as "forward-looking", subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) domestic and global economic factors; (2) global steelmaking overcapacity and imports of steel, together with increased scrap prices; (3) pandemics, epidemics, widespread illness or other health issues; (4) the cyclical nature of the steel industry and the industries we serve; (5) volatility and major fluctuations in prices and availability of scrap metal, scrap substitutes and supplies, and our potential inability to pass higher costs on to our customers; (6) cost and availability of electricity, natural gas, oil, and other energy resources are subject to volatile market conditions; (7) increased environmental, greenhouse gas emissions and sustainability considerations from our customers or related regulations; (8) compliance with and changes in environmental and remediation requirements; (9) significant price and other forms of competition from other steel and aluminum producers, scrap processors and alternative materials; (10) availability of an adequate source of supply of scrap for our metals recycling operations; (11) cybersecurity threats and risks to the security of our sensitive data and information technology; (12) the implementation of our growth strategy; (13) litigation and legal compliance; (14) unexpected equipment downtime or shutdowns; (15) governmental agencies may refuse to grant or renew some of our licenses and permits required to operate our business; (16) our senior unsecured credit facility contains, and any future financing agreements may contain, restrictive covenants that may limit our flexibility; and (17) the impacts of impairment charges.

More specifically, we refer you to our more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors, in our Quarterly Reports on Form 10-Q, or in other reports which we file with the Securities and Exchange Commission. These reports are available publicly on the Securities and Exchange Commission website, www.sec.gov, and on our website, www.steeldynamics.com under "Investors – SEC Filings."

SOURCE Steel Dynamics, Inc.