Global investors set out how steel sector must decarbonise in line with goals of Paris Agreement.

Expectations will support investor engagement with leading steel companies through Climate Action 100+ initiative.

London: A global network of more than 250 institutional investors, representing assets worth over $30 trillion1, has set out expectations of the actions the steel sector needs to take to safeguard its future in the face of climate change. The report published today suggests that steel companies must significantly scale up investment in technologies that will enable them to decarbonise operations in line with the goals of the Paris Agreement.

Produced by the Institutional Investors Group on Climate Change (IIGCC) with lead authors Aegon Asset Management and Kempen Capital Management, the report – Investor Expectations of Steel Companies – is published on behalf of the four investor networks that make up the Global Investor Coalition on Climate Change (GIC).

As an energy intensive sector, global steel production accounts for 7% of global greenhouse gas emissions. Governments have committed to limiting global warming to well below 2°C with ratification of the Paris Agreement. In line with subsequent policy and market responses, steel companies will be exposed to significant risks if they fail to anticipate and keep pace with necessary reductions in greenhouse gas emissions.

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Read the Report