GHG Emission Requirements for Responsible Steel Certification of

GHG Emission Requirements for Responsible. Steel Certification of Steel Products Criterion 8. 6: Crude steel GHG emissions intensity performance thresholds responsiblesteel. org

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• Welcome and introduction • Context • Criterion 8. 6: Crude steel GHG emissions intensity performance thresholds • Q&A responsiblesteel. org

The twelve Responsible. Steel Principles Governance Principles Social Principles 1. Corporate Leadership 3. Occupational Health and Safety 2. Social, Environmental, Governance Management Systems 4. Labour Rights 5. Human Rights 6. Local Communities 7. Stakeholder Engagement and Communication 12. Decommissioning and Closure Environment Principles 8. Climate Change and Greenhouse Gas Emissions 9. Noise, Emissions, Effluents and Waste 10. Water Stewardship 11. Biodiversity

Responsible. Steel Members • • • Company commitment to vision and mission At least one site certified within [two] years (pending finalisation) Use of ‘Responsible. Steel Member’ logo to promote association with and support for Responsible. Steel Certified Sites • • • The site meets all 12 principles of the Responsible. Steel Standard including both company and sitelevel GHG requirements Independently certified Use of ‘Responsible. Steel Certified Site’ logo to promote commitments and site performance. Responsible. Steel Certified Steel Product • • • The site meets all 12 Principles of the Responsible. Steel Standard And in addition (DRAFT): • Input materials are responsibly sourced (mass balance) • Crude steel GHG intensity performance threshold achieved • Steel product GHG data available (worldsteel methodology) Use of ‘Responsible. Steel Certified Steel’ logo and claims to promote products as Responsible. Steel certified.

GHG emissions – existing requirements for site certification C 8. 1 Corporate commitment to achieve the goals of the Paris Agreement C 8. 2 Corporate Climate-Related Financial Disclosures C 8. 3 Site-level GHG emissions measurement and intensity calculation C 8. 4 Site-level GHG reduction targets and planning C 8. 5 Site-level GHG emissions reporting and disclosure responsiblesteel. org

GHG emissions – proposed additional requirements for certification of steel products C 8. 6 Crude steel GHG emissions intensity performance threshold (taking account of end of life scrap percentage) C 8. 7 Consistent GHG accounting rules to determine crude steel GHG emissions intensity performance C 8. 8 Steel Product GHG emissions (worldsteel LCA methodology) C 8. 9 Transparency and comparability of GHG emissions data responsiblesteel. org

Criterion 8. 6. Crude steel GHG emissions intensity: performance thresholds for steel product certification The GHG emissions intensity of the crude steel produced at the site, measured in accordance with Responsible. Steel requirements, is below the applicable threshold required for Responsible. Steel steel product certification. 8. 6. 1. The GHG emissions intensity (metric tonnes of CO 2 equivalent/ metric tonne crude steel) of the crude steel produced at the site is below the applicable threshold as specified for carbon steel or for high alloy steel in accordance with the formula: GHG emissions intensity performance threshold for crude steel: = (X tonne CO 2 / tonne) + (% end of life scrap) x ((Y- X) tonne CO 2 / tonne) Where: X = estimated global median value in 2018 for GHG emissions per tonne of crude steel if produced from 100% scrap Y = estimated global median value in 2018 for GHG emissions per tonne of crude steel if produced from 100% iron ore

Criterion 8. 6. Crude steel GHG emissions intensity: performance thresholds for steel product certification The GHG emissions intensity of the crude steel produced at the site, measured in accordance with Responsible. Steel requirements, is below the applicable threshold required for Responsible. Steel steel product certification. 8. 6. 1. The GHG emissions intensity (metric tonnes of CO 2 equivalent/ metric tonne crude steel) of the crude steel produced at the site is below the applicable threshold as specified for carbon steel or for high alloy steel in accordance with the formula: GHG emissions intensity performance threshold for crude steel: = (X tonne CO 2 / tonne) + (1 - % end of life scrap) x ((Y- X) tonne CO 2 / tonne) Where: X = estimated global median value in 2018 for GHG emissions per tonne of crude steel if produced from 100% scrap Y = estimated global median value in 2018 for GHG emissions per tonne of crude steel if produced from 100% iron ore

Example for carbon steel X = estimated global median value in 2018 for GHG emissions per tonne of crude steel if produced from 100% scrap: X = 0. 5 tonnes CO 2 e / tonne crude steel Y = estimated global median value in 2018 for GHG emissions per tonne of crude steel if produced from 100% iron ore: Y = 2. 0 tonnes CO 2 e / tonne crude steel *** GHG emissions intensity performance threshold for crude steel: = (X tonne CO 2 / tonne) + (1 - % end of life scrap) x ((Y- X) tonne CO 2 / tonne) GHG emissions intensity performance threshold for crude steel: = (0. 5 tonne CO 2 / tonne) + (1 - % end of life scrap) x ((2. 0 – 0. 5) tonne CO 2 / tonne) GHG emissions intensity performance threshold for crude steel: = (0. 5 tonne CO 2 / tonne) + (1 - % end of life scrap) x (1. 5 tonne CO 2 / tonne)

Example for carbon steel GHG emissions intensity performance threshold for crude steel: = (0. 5 tonne CO 2 / tonne) + (1 - % end of life scrap) x (1. 5 tonne CO 2 / tonne) Threshold calculation: % end of life scrap 1 -% end of life scrap Calculation Threshold 100% end of life scrap 0% 0. 5 + (0 x 1. 5) = 0. 5 75% end of life scrap 25% 0. 5 + (0. 25 x 1. 5) = 0. 875 50% end of life scrap 50% 0. 5 + (0. 5 x 1. 5) = 1. 25 25% end of life scrap 75% 0. 5 + (0. 75 x 1. 5) = 1. 625 0% end of life scrap 100 % 0. 5 + (1. 0 x 1. 5) = 2. 0

Example for carbon steel GHG emissions intensity performance threshold for crude steel: = (0. 5 tonne CO 2 / tonne) + (1 - % end of life scrap) x (1. 5 tonne CO 2 / tonne) x x x

Comparison with a single emissions threshold (1) GHG emissions intensity (tonnes CO 2 e/ tonne crude steel) x tion x x s Thre hold tee for s l pro duct ifica t r e c x x 100% 50% Percentage of end of life scrap in crude steel 0%

Comparison with a single emissions threshold (2) GHG emissions intensity (tonnes CO 2 e/ tonne crude steel) x n s Thre 100% hold tee for s atio c i f i t r l pro ce duct 50% Percentage of end of life scrap in crude steel x x 0%

Comparison with a single emissions threshold (2) GHG emissions intensity (tonnes CO 2 e/ tonne crude steel) x n s Thre 100% hold tee for s atio c i f i t r l pro ce duct 50% Percentage of end of life scrap in crude steel x x x 0%

High alloy steels… X = estimated global median value in 2018 for GHG emissions per tonne of crude steel if produced from 100% scrap X = 0. 625 tonnes CO 2 e / tonne crude steel Y = estimated global median value in 2018 for GHG emissions per tonne of crude steel if produced from 100% iron ore: Y = 5. 0 tonnes CO 2 e / tonne crude steel ***

Consultation Questions: page 41 Consultation question on threshold based on proportion of scrap used for crude steel production Assuming there is some minimum threshold level of GHG emissions performance that must be achieved before steel products can be sold as Responsible. Steel certified, do you support the general approach of specifying a threshold that takes account of the proportion of scrap used as an input material, as proposed? If not, what mechanism would you recommend in preference to this approach? responsiblesteel. org

Consultation Questions: page 42 (1) Consultation question on minimum threshold for steel product certification based on global median GHG emissions performance Assuming there is some minimum threshold level of GHG emissions performance that must be achieved before steel products can be sold as Responsible. Steel certified, should the threshold level: • Be based on an estimate of the global median level of performance in 2018? • Be based on an estimate of global best practice (e. g. the top decile level of performance in 2018)? • Be based on some other benchmark (please specify) responsiblesteel. org

Consultation Questions: page 42 (2) Consultation question on identification of better sources for GHG emissions intensity performance data for crude steel Are there more comprehensive, up-to-date and publicly accessible sources of data on the GHG emissions of steelmaking than those given in Annex 3, that could be used to specify the benchmark figures for the calculation of GHG emissions performance thresholds for carbon steel and/or high alloy steels, if the proposed approach is adopted in principle? If so, please provide references. responsiblesteel. org

GHG emissions – potential to extend to performance bands RS Steel A AA RS ultra low carbon steel? AAA 100% 50% Percentage of end of life scrap in crude steel 0%

Consultation deadline: October 31 st Document: https: //www. responsiblesteel. org/wpcontent/uploads/2020/09/Responsible. Steel-GHG-Requirements-for. Steel-Product-Certification-for-Consultation-Draft-1 -0. pdf Feedback form: https: //docs. google. com/forms/d/e/1 FAIp. QLSe. LEj. BT 92 mx. Xz 6 KQJHUq su. Ye. FMh. H 0 un 2 bf. Zk. TUxiy 7 Izaq. Ztg/viewform Further clarifications: mwenbansmith@responsiblesteel. org Thank you! responsiblesteel. org