Breaking The Mold:
The Role of  
Automakers In Steel 
Decarbonisation

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Authors
Wenjie Liu, Jiangbei Hao, Ada Kong
Valuable comments and input were provided by 
Benjamin Stephan, Belinda Fletcher, Chan Yang,  
Carolin Grüning, David Santillo, Daniel Read,  
Esther Haerim Heo, Elli Newman, Eric Lau, Erin Choi,  
Erin Newport, Gyorgy Dallos, Hang Bao, Kevin Brigden, 
Kelly Huang, Matianne Kropf, Meng Tian, Mingyang Zheng, 
Qianru Ma, Sanghoon Cho, and Zhibin Chen.
May 2023

There is a long way to go before the transport sector is on a path to limit global temperature rise to 1.5 
degrees. Several steps need to be taken to drive the change, such as rapidly accelerating the phase-out of 
internal combustion engine vehicles, reducing the number of cars on the road, prioritising and promoting 
public transportation, biking and walking, with all remaining vehicles using electric power run from 
renewable energy sources. Moreover, there is increasing recognition of the need to decarbonise the entire 
automotive supply chain, including steel materials.
Automakers must drive demand for 
zero-carbon steel to initiate  
industry transition 
Decarbonising automotive steel is imperative for 
automakers to achieve carbon neutrality. The average 
passenger vehicle comprises approximately 50% - 65% steel 
by weight, making steel a crucial component for automotive 
manufacturing.1,2 At the same time, steel is responsible for 
30% - 40% of an average vehicle’s material emissions.2 With 
a transition to battery electric vehicles (BEVs) which brings 
down the GHG emissions during the usage phase of the 
product, it is projected that more than 60% of automotive 
life-cycle emissions will be from materials by 2040.3 
Automakers must go beyond electrification, but also rapidly 
decarbonise their steel supply. Therefore, we call upon all 
automakers to:
•	 Commit to reducing 50% of the carbon footprint 
from steel supply by 2030 and transition to 100% 
zero-carbon steel no later than the year they have 
committed to achieving their carbon-neutral goals or 
by 2050
•	 Curb and reduce steel consumption by reducing the size 
of vehicle models, particularly SUVs and other large 
models
•	 Publicly disclose data of steel consumption and 
associated GHG emissions
•	 Rethink the business model to reduce the number of 
cars and develop mobility services
Executive summary
i.	
Due to the lack of data transparency, our estimation of the total carbon footprint of the steel materials used by the top 16 automakers fell on a range of 77 to 128 million tonnes of CO2 
in 2021, and 74 to 124 million tonnes of CO2 in 2022. It is based on the average weight of 13 types of cars sold by each company and the global average CO2 emission of 1.91 tonne per 
tonne of steel produced in 2021.
ii.	
Unless otherwise mentioned, 'emissions' refers to carbon dioxide (CO2) emissions.
The top 16 automakers use at least 40 million tonnes 
of steel per year, but their significant environmental 
footprint remains unaddressed. Our estimation shows 
that the world's top 16 automakers consumed 40 to 67 
million tonnes of steel in 2021 and 39 to 65 million tonnes 
of steel in 2022. The top three automakers that consumed 
the most steel were Toyota, Volkswagen, and Hyundai-
Kia because of their sales volumes. We estimate that the 
carbon footprint of the steel materials used by the top 
16 automakers was at least 77 million tonnes of carbon 
dioxide (CO2) in 2021, and 74 million tonnes of CO2 in 
2022.i Despite their net-zero commitments, automakers 
lack measurable objectives to reduce steel consumption 
and concrete actions to decarbonise their steel. None of 
these companies disclosed the carbon footprint of the 
steel materials they used. The marketing strategy by 
the automakers to boost the sales of SUVs exacerbates 
the problem. In our minimum level estimation, the CO2 
emissions from SUVs’ automotive steel accounted for 
more than half of the total auto steel emissionsii in 2021.
Automakers should pioneer in creating demand for 
zero-carbon steel. The automotive industry is one of 
the largest end-users of steel, representing about 16% 
of global steel consumption4, and is best positioned to 
be the first mover in steel decarbonisation. Automobile 
production has a relatively less complex supply chain than 
other steel-consuming industries, which allows a more 
stable relationship with steelmakers. Moreover, there is 
a relatively insignificant incremental cost of a vehicle if 
made with low-carbon steel. Therefore, the automobile 
industry could stimulate the advancement in decarbonising 
the steelmaking process. Automakers’ commitment to

procuring decarbonized steel would signal the future for 
steel producers to invest in the transition. However, low-
carbon steel partnerships are emerging with very limited 
procurement commitments.
Steelmakers in China, Japan and 
South Korea serve as vital players 
in the industry, yet lag behind in the 
decarbonisation
The transition to a larger share of scrap-based steel 
production can proceed smoothly as economies mature 
and scrap availability increases. However, rapid 
implementation of cutting-edge, early-stage technologies 
will be required to support this shift. The iron and steel 
sector is energy and carbon-intensive, accounting for 
8% of global final energy use5 and 11% of global CO2 
emissions6. Despite high emissions, the key parts of 
steelmaking technology have not been renewed for 
decades. Increased steel recycling, using green hydrogen-
based direct reduction, and electrification all constitute 
avenues for achieving deep emission reductions in 
steelmaking. Challenges in the supply of renewable energy, 
scaling up green hydrogen, and scrap steel recycling have 
to be addressed. 
Asian steel companies have the potential to play a 
significant part in steel decarbonisation, but have yet 
to make substantial efforts in doing so. The steel output 
of China, Japan, and South Korea represents more than 
60% of the global production, however, their production, 
on average, is more carbon intensive than that in North 
America and Europe. Automotive steel, a high-end product 
with a high technical threshold, is produced by only a 
few steelmakers in the region. Baosteel and Shougang 
Steel from China, Nippon Steel and JFE from Japan, and 
POSCO and Hyundai Steel from South Korea supply many 
automakers, accounting for 23.8% of the global automotive 
steel market. However, their steel production relies heavily 
on the blast furnace-basic oxygen furnace (BF-BOF) route, 
which heavily depends on coal to produce crude steel. Only 
10% - 30% of their steelmaking capacity is the electric arc 
furnace (EAF) route, which is much lower compared to 40% 
in the EU and 70% in the United States.7, 8, 9 The technical 
roadmaps of the six companies show a lot of uncertainty 
in decarbonising their steel production. All six companies 
committed to carbon neutrality by 2050 but their visions 
require carbon capture and storage (CCS), a false solution, 
and carbon off-setting to realise carbon neutrality, instead 
of mitigating the emissions from production.
Huge gaps exist in the financing of the decarbonisation 
of steel and policies that provide incentives. Significant 
investment should be channeled to enable the zero-
carbon transition. Most green finance frameworks and 
instruments provide support for green economic activities 
and green equity, leaving the low-carbon transition 
activities from high-emission industries such as steel 
behind. Even though governments have provided subsidies 
and funds for low-carbon technology development, 
current financial support is inadequate, and some funding 
resources have been directed towards false solutions, such 
as CCS.
Vehicle sales and estimated steel usage by automakers in 2022
Toyota
Volkswagen
Hyundai-Kia
General Motors
Stellantis
Honda
Ford
Nissan
Suzuki
Geely
BMW
Renault
Mercedes-Benz
SAIC
Great Wall Motor
Mazda
10
11
9
1
2
3
4
5
6
7
8
0
2022 estimated steel usage by automakers (million tonnes)
2022 Sales (million units)

1.	
Automakers should race for steel decarbonisation
	
1.1	
Automakers are in the hot seat to curb the greenhouse gas emissions from steel
	
1.2	
Automakers have a great potential to lead the demand for low-carbon steel
2.	
The status quo of steel decarbonisation by global automakers
	
2.1	
Obstacles ahead
	
2.2	
Huge steel consumption and associated emissions
	
2.3	
How green are the emerging low-carbon steel partnerships?
3.	
Decarbonisation efforts by steelmakers in China, Japan  
	
and South Korea
	
3.1	
A growing market
	
3.2	
Carbon-intensive steelmaking in the near future
	
3.3	
Tough transition to low-carbon steel
4.	
Emerging drivers for automotive steel decarbonisation
	
4.1	
Public Policy
	
4.2	
Financial Instruments
	
4.3	
Demand drivers
5.	
What should the automakers do?
Appendices
References
6
6
7
21
21
24
25
26
27
32
8
8
9
13
17
17
18
19
Contents

1.1 
Automakers are in the hot seat to curb the 
greenhouse gas emissions from steel
Automakers should 
race for steel 
decarbonisation
1 
© Mitja Kobal / Greenpeace
More than 30 countries have pledged to phase out internal 
combustion engine (ICE) vehicles, but there is a long way 
to go before the transport sector is on a path to limit 
global temperature rise to 1.5 degrees. The largest lever 
to reduce greenhouse gas (GHG) emissions of a car is the 
electrification of the powertrain, but it is not enough to 
achieve carbon neutrality within the automotive sector. 
Specifically, the car industry needs to decarbonise the 
upstream raw materials used for auto production, of which 
steel makes up the largest proportion.10
The average vehicle contains about 50% - 65% iron and steel 
by weight, making steel a crucial component for automotive 
manufacturing.1, 2 Each vehicle contains, on average, 
approximately 0.9 tonnes of steel11, a value that is higher for 
sport utility vehicles (SUVs) and pickup trucks. 
Steel is responsible for 30% - 40% of an average vehicle’s 
emissions from material production.2 Current life cycle 
analyses of a typical ICE vehicle attribute about 18% of 
emissions to the production of the vehicle.3 With a mass-
market transition to battery electric vehicles (BEVs), it is 
projected that by 2040, more than 60% of automotive life 
cycle emissions will be from materials.3 
Reducing steel consumption in the automotive industry 
is critical to improving fuel efficiency. A 10% reduction in 
vehicle weight results in a 5% - 7% improvement in fuel 
economy.12 By reducing steel consumption, automakers 
can reduce the GHG emissions associated with the 
production and use of their vehicles. 
The material emissions of a car depend upon the availability of 
low-carbon steel and other materials. Automakers must look 
beyond electrification, and both reduce the amount of steel 
they use by producing smaller and more efficient cars as well 
as ensuring the use of low-carbon steel in their products.13

Greenpeace ｜ 1. Automakers should race for steel decarbonisation
7
Figure 1. Projected greenhouse gas emissions from material production in the automotive sector.
Sources: McKinsey, 20203
Material 
production
Other 
emissions
2020
82
18
2030
65
35
2040
40
60
Emissions from 
material production 
will have higher share 
than tallpipe emissions 
before 2040.
1.2 
Automakers have a great potential to lead the 
demand for low-carbon steel
The automotive industry is one of the largest end-
users of steel, representing about 16% of global steel 
consumption.4 With a huge demand for high-quality steel, 
automakers are well-positioned to be early adopters of 
low-carbon steel in their products. In 2021, 1839 million 
tonnes of steel were used across all industries14, with 
about 300 million tonnes going to the automobile industry 
alone and emitting approximately 573 million tonnes of 
CO2.iii The automotive steel market was valued at USD 
112.93 billion in 2021 and is expected to grow at a rate 
of over 3% in terms of revenue from 2022 to 2030.15 The 
rising adoption of electric vehicles is expected to further 
increase demand for steel.
Automobile production has a relatively less complex 
supply chain than other steel-consuming industries, which 
allows a stable relationship with steelmakers. Compared 
with other large consumers of steel, there is a relatively 
insignificant incremental cost of a vehicle if made with 
low-carbon steel. A study estimated that the incremental 
cost of the finished vehicles would be less than 1% of the 
retail price of a new vehicle.16
iii.	
Based on the portion of steel consumed by the automotive industry (16%) and the average CO2 emissions in 2021 per tonne of steel produced (1.91 tonnes of CO2). World Steel Association.
A higher proportion of primary steel is used to make 
cars than buildings, therefore the automobile industry 
could stimulate the advancement of decarbonising the 
ironmaking process. Automakers’ commitments to 
procuring decarbonised steel would signal the future for 
steel producers to invest in the transition. However, low-
carbon steel partnerships are emerging with very limited 
procurement commitments.

Greenpeace ｜ 2. The status quo of steel decarbonisation by global automakers
8
2.1 
Obstacles ahead
This chapter focuses on the current efforts by the automakers on the decarbonisation of steel. The 
analysis is based on the global passenger vehicle sales figures and other publicly disclosed information of 
the top 16 automakers.iv The results reflect their performance in decarbonisation strategy, disclosure, 
material efficiency, and low-carbon steel collaborative efforts.
The status quo of 
steel decarbonisation 
by global automakers
2
© Lu Guang / Greenpeace
Inadequate attention and unclear 
roadmaps 
Despite many automakers committing to becoming carbon 
neutral, actions to decarbonise the supply chain, including 
steel, have not been progressive enough. Most automakers 
have set the same timeline for achieving decarbonisation 
goals in their supply chain as their net-zero commitments, 
with the notable exceptions of Suzuki, SAIC, and Great 
Wall Motor, which have not made such promises. Some 
automakers have set intermediate goals to decarbonise 
the supply chain while it is unclear whether these 
current measures align with automakers’ overall net-zero 
commitments or comply with the Paris Agreement due to 
a lack of evaluation.
iv.	
Data used to analyse the 16 automotive groups are from multiple sources. Marklines’ sales data have been collected for all passenger vehicles sold for all brands and models. Other data 
have been collected from corporate sustainability/CSR/ESG reports and relevant press releases. This report considers Nissan and Renault as independent car manufacturers as the 
decision-making of these companies is also independent.
Currently, none of the major automakers have set 
specific goals to reduce steel consumption and associated 
emissions. While some automakers, including Toyota, 
Geely, and BMW, have set measurable objectives to reduce 
their supply chain emissions, it is not clear whether they 
have included steel in their mitigation approaches. (Refer 
to Appendix 1)
For most automakers, supply chain decarbonisation is still 
in the early stages, with a focus on gathering information 
and engaging in climate-related activities. Unfortunately, 
many have not yet given adequate attention to materials 
such as steel, nor have they developed clear roadmaps to 
address this issue.

Greenpeace ｜ 2. The status quo of steel decarbonisation by global automakers
9
2.2 
Huge steel consumption and associated emissions
Due to the lack of disclosure, we estimated the volume of steel used by automakers in 2021 and 2022, both by company 
and by car type. Additionally, we have estimated the CO2 emissions associated with the manufacturing of automotive 
steel, highlighting the significant carbon footprint and the urgent need to reduce both steel consumption and steel-
associated emissions.
v.	
The vehicle sales data was retrieved from Marklines in May 2023. The dataset provides sales information at the group level, car type and model level, and the one-year period is based 
on the calendar year. It's important to note that the estimation of steel consumption does not include sales of unclassified car types or cars produced but not sold. Therefore, the actual 
steel usage is likely to be higher than our calculated steel usage.
Lack of disclosure on steel 
consumption and related emissions
Disclosure on steel consumption is insufficient and the 
boundary of steel consumption (primary materials, auto 
parts, for example) is not consistent across companies. 
Toyota, Suzuki, Mazda, Hyundai, Geely, Renault and 
Stellantis have disclosed their annual steel consumption 
while others have not. (Refer to Appendix 1)
Despite steel accounting for a significant portion of 
supply chain emissions, none of the companies reported 
emissions associated with steel. Most companies covered 
in the analysis have used the GHG Protocol to calculate 
their emissions and followed the Task Force on Climate-
related Financial Disclosures (TCFD) or other international 
standards to disclose their emissions. Some provided 
emission specifications on purchased goods and services in 
Scope 3, which theoretically includes emissions from steel 
material. Companies such as SAIC and Great Wall Motor 
follow domestic standards of their place of registration, 
which makes their reporting difficult to align with 
international standards.
The estimated steel consumption values were calculated by multiplying the salesv values with the assumed 
vehicle's kerb weight and the share of steel in weight (50% - 65%), then adding up the amounts for each 
type to give a company total based on the corporate group-level sales data. In the equation I and II, i 
denotes the 13 car types considered in the analysis: Sedan A,B,C,D,E,F and sports utility vehicle (SUV) 
A,B,C,D,E, multi-purpose vehicle (MPV) and pickup truck. The parameters used for assuming the vehicle's 
kerb weight are attached in Appendix 2. The difference in steel consumption reflected the variation in 
sales among automakers and weight for different segments.
The carbon footprint associated with the steel consumption is calculated by multiplying the total steel 
consumption by the world average carbon intensity for steelmaking. It is based on the World Steel 
Association’s data, which provided that the global average emissions of a tonne of steel produced being 1.91 
tonnes of CO2 in 2021.17
Methodology
Total Steel consumptionminimum =
Car Sales by type X Weight by typeminimum X 50% (I)
i
i =1
∑
Total Steel consumptionmaximum =
Car Sales by type X Weight by typemaximum X 65% (II)
i
i =1
∑

Greenpeace ｜ 2. The status quo of steel decarbonisation by global automakers
10
2.2.1 
Steel consumption by car makers and associated CO2 emissions
Our estimation shows the top 16 automakers consumed 40 to 67 million tonnes of steel in 2021, 
and 39 to 65 million tonnes of steel in 2022 to make Sedans, SUVs, MPVs and pickup trucks. In 
2021, with the minimum-level estimation as shown in Figure 8, the first tier that consumed the most 
steel includes Toyota, Volkswagen, and Hyundai-Kia, which used at least 6.31, 5.36, and 4.33 million 
tonnes of steel materials, respectively. Stellantis, General Motors, Honda, Ford, and Nissan fall into the 
second tier, with each consuming 2 million tonnes of steel at least. Suzuki, Renault, Mercedes-Benz, 
BMW, Geely, Great Wall Motor, SAIC, and Mazda went to the third tier with an estimated consumption 
of fewer than 2 million tonnes. The levels of steel consumptions could be largely explained by the total 
sales volume and sales by car type. 
In 2022, Toyota, Volkswagen, and Hyundai-Kia remain the top three steel consumers, using at least 
6.30, 5.19, and 4.20 million tonnes of steel materials, respectively. Based on the average emissions of 
1.91 tonnes of CO2 per tonne of steel produced in 202117, the steel usage by the top 16 automakers 
could have caused at least an estimated 77 to 128 million tonnes of CO2 in 2021, and between 74 to 
124 million tonnes in 2022. 
Figure 3. Estimated CO2 emissions from automotive steel used by the top 16 automakers.
2021
2022
140
80
100
120
60
Unit: Million Tonnes
Figure 2. Vehicle sales and estimated steel usage by automakers in 2022.
Toyota
Volkswagen
Hyundai-Kia
General Motors
Stellantis
Honda
Ford
Nissan
Suzuki
Geely
BMW
Renault
Mercedes-Benz
SAIC
Great Wall Motor
Mazda
10
11
9
1
2
3
4
5
6
7
8
0
2022 estimated steel usage by automakers (million tonnes)
2022 Sales (million units)

Greenpeace ｜ 2. The status quo of steel decarbonisation by global automakers
11
2.2.2 
Steel consumption by car type
Steel consumption across car types, including sedan, SUV, MPV and pickup truck, has been 
estimated. On average, an SUV consumes 20% more steel than a sedan vehicle due to its larger size 
and kerb weight.18 In our estimation, SUVs consume 5.9 - 8.2 million tonnes more steel than sedans 
in 2021 and 6.5 - 9.2 million tonnes in 2022 from the top 16 automakers.
SUVs consume about one-quarter more energy than medium-size cars during use and drive the 
increase in the automotive industry’s demand for steel.19 SUVs are known to have lower fuel 
economy than smaller vehicles because they typically have larger engines and are heavier, which 
requires more fuel. SUVs have an average fuel economy of around 20 - 30 miles per gallon (MPG).20 
In our minimum level estimation, the CO2 emissions from SUVs’ automotive steel accounted for 
more than half of the total auto steel emissions in 2021.
Figure 4. Estimated CO2 emissions from automotive steel by car type.
Pickup Truck  8.2%
Sedan  36.6%
SUV  51.2%
MPV  4.0%

Greenpeace ｜ 2. The status quo of steel decarbonisation by global automakers
12
On the company level, Toyota, Volkswagen, and Hyundai-Kia sold more than 3 million SUVs each in 
a single year, accounting for almost 40% of the total SUV sales from the top 16 automakers. As a 
result, based on the minimum level estimation, these three automakers used more than 2.5 million 
tonnes of steel each to manufacture SUVs, significantly more than their competitors. Moreover, the 
estimated steel consumption from SUVs for Ford, Geely, and Great Wall Motor is significantly higher 
than that from sedans. By reducing their reliance on SUVs and decreasing the size and number of 
cars, these automakers could significantly reduce their steel consumption.
Toyota
Volkswagen
Hyundai-Kia
General Motors
Stellantis
Honda
Ford
Nissan
Suzuki
Geely
BMW
Renault
Mercedes-Benz
SAIC
Great Wall Motor
Mazda
5
1
2
3
4
0
Figure 5. Vehicle sales and estimated steel usage of SUVs in 2022.
2022 Estimated steel usage of SUV’S (million tonnes)
2022 SUV Sales (million units)
Toyota
Volkswagen
Hyundai-Kia
General Motors
Stellantis
Honda
Ford
Nissan
Suzuki
Geely
BMW
Renault
Mercedes-Benz
SAIC
Great Wall Motor
Mazda
5
1
2
3
4
0
Figure 6. Vehicle sales and estimated steel usage of sedans in 2022.
2022 Estimated steel usage of Sedans (million tonnes)
2022 Sedans Sales (million units)

Greenpeace ｜ 2. The status quo of steel decarbonisation by global automakers
13
2.3 
How green are the emerging low-carbon steel 
partnerships?
Table 1. The ambiguous claims of the ‘low-carbon’ automotive steel partnerships
Automaker
Steel Partner
Partnership Plan
Time to start 
supplying
Technology claimed  
to adopt
Scale of supply
Toyota
Kobe Steel
Toyota claimed to employ 
a steel product with a 
100% reduction in CO2 
emissions.23 However, the 
steelmaking still relies on 
BFs23 and only supplies for 
one type of racing vehicle.
2022
Charging a large amount 
of hot briquetted iron 
(HBI) produced into the 
blast furnace.
Only for hydrogen  
engine-equipped racing 
vehicle Corolla
Tokyo Steel
Toyota adopted lower arm 
parts made by using 100% 
recycled iron scrap for 
vehicles participating in 
a race.
2022
100% recycle scrap
N/A
To reduce the carbon footprint from steel, automakers 
need to both decrease their steel consumption and find 
low-carbon steel suppliers. European car makers and 
steelmakers are leading the way in collaborating and 
developing low-carbon steel. Some automakers, such 
as Ford, General Motors and Volvo, have made modest 
procurement commitments to purchase at least 10% near-
zero carbon steel and aluminum by 2030.21, 22 However, the 
technological standards for these commitments have not 
been clarified. 
Automakers recognise that low-carbon steel will be a 
game changer for future competition. However, the 
development of the low-carbon steel market is in its early 
stages, and the level of ‘greenness’ in these emerging 
low-carbon automotive steel partnerships varies. Most 
of the factories producing low-carbon steel are located in 
Europe and are owned by a few European steel companies 
such as H2 Green Steel, SSAB, and Salzgitter. These 
companies are currently testing hydrogen-based steel 
production processes that replace fossil fuels in the 
direct reduced iron (DRI) production stage with hydrogen 
produced by renewable energy. These companies claimed 
to produce low-carbon steel on a commercial scale from 
2025. However, scaling up green hydrogen production 
is a challenging task and the supply volume of the ‘low-
carbon’ steel is not yet specified in most of the emerging 
collaborations.
In contrast, the progress of promoting low-carbon steel 
partnerships between automakers and steelmakers is 
relatively slow in East Asia. Only Hyundai has developed 
a partnership with POSCO for DRI steel made from 
hydrogen. Mercedes-Benz and BMW have started 
collaboration with two steelmakers in China. While 
Toyota and Nissan claim to use low-carbon steel in car 
manufacturing, the technologies applied in these projects 
aren’t sufficiently ‘low-carbon’ enough as the steelmaking 
is still relying on blast furnaces that heavily relies on coal 
to produce crude steel.

Greenpeace ｜ 2. The status quo of steel decarbonisation by global automakers
14
Automaker
Steel Partner
Partnership Plan
Time to start 
supply
Technology claimed  
to adopt
Scale of the supply
Volkswagen
H2 Green 
Steel
The group subsidiary 
Scania has entered into 
a cooperation with the 
start-up H2 Green Steel.24 
The supply volume is not 
specified.
2024
Using end-to-end 
digitalisation, electricity 
from fossil-free sources 
and green hydrogen 
instead of coal.
N/A
Salzgitter
They signed Memorandum 
of Understanding (MOU) on 
supply of low-CO2 steel25.
From the end 
of 2025
Using green hydrogen and 
renewable energies on a 
new production route to 
reduce over 95% of CO2 
emissions.
For future projects such as 
the Trinity1 e-model
Hyundai
POSCO
Hyundai developed a 
partnership with POSCO 
for DRI steel made from 
green hydrogen.26 The 
supply time and volume of 
the low-carbon steel are 
not specified.
N/A
Using hydrogen gas as a 
fuel and reducing agent  
in its blast furnaces to 
make steel.
N/A
Hyundai  
Steel
Hyundai Steel aimed to 
establish Hyundai Motor 
Group’s hydrogen-based 
reduction steelmaking 
process in the long-term.
N/A
H2- DRI-EAF
N/A
General 
Motors
United States  
Steel 
Corporation 
U. S. Steel announced to 
supply General Motors 
with steel manufactured 
with up to 75% fewer 
emissions compared to 
traditional blast furnace 
production27. This claimed 
reduction only includes 
scope 1 and scope 2 
emissions. The supply 
volume is not disclosed.
2023
Using 90% recycled steel.
N/A
Nucor Corp
General Motors sourced 
‘net-zero carbon steel 
products from Nucor’28. 
They claimed the  
company would operate 
at 70 percent below the 
current steel industry 
greenhouse gas intensity. 
However, they still rely on 
purchasing carbon offsets 
to eliminate scope 1  
emissions29.
2022
Using recycled scrap-
based EAF and using 
electricity from 100% 
renewable sources.
N/A

Greenpeace ｜ 2. The status quo of steel decarbonisation by global automakers
15
Automaker
Steel Partner
Partnership Plan
Time to start 
supply
Technology claimed  
to adopt
Scale of the supply
Ford
Tata Steel
Ford Signed MOU with 
Tata Steel's Dutch arm 
for low-carbon steel30 
without clarifying the 
emission reduction 
effects. However, 
the company is being 
criticised for heavy 
pollution.31,32
After 2030
Without using fossil fuels.
Only supply Ford plants  
in Europe
Salzgitter
Salzgitter will supply Ford 
with its green steel and 
plans to gradually convert 
its steel production 
to hydrogen-based 
processes starting from 
2025.33 The supply volume 
is not specified.
2033
Using green hydrogen and 
renewable energies on a 
new production route to 
reduce over 95% of CO2 
emissions.
N/A
Thyssenkrupp
Ford signed MOU with 
Thyssenkrupp for low-
carbon steel.34 The 
steelmaking technology 
and supply time are not 
specified.
N/A
N/A
Ford Europe
Nissan
Kobe Steel
Nissan claimed to use 
steel that eliminates 
CO2 emissions from the 
manufacturing process in 
domestic car manufacture. 
However, the steelmaking 
still relies on BF35 and only 
supplies for one type of 
vehicle.
2023
Charging a large amount 
of hot briquetted iron 
(HBI) produced into the 
blast furnace.
Only for Serena minivans
Mercedes-
Benz
H2 Green 
Steel
Mercedes-Benz 
participated in the 
Swedish startup H2 Green 
Steel.36 The supply volume 
is not specified.
2025
Using electricity from 
fossil-free sources and 
green hydrogen instead 
of coal.
N/A
Kloeckner
Klöckner & Co delivered 
the first roughly 20 tons 
of significantly carbon-
reduced green steel to 
Mercedes-Benz.37
2022
BF-BOF
EAF
DRI-EAF
20 tons
SSAB
Mercedes-Benz formed 
a partnership with the 
Swedish manufacturer 
SSAB for the delivery of 
CO2-free steel. The first 
prototype parts for body 
shells were already planned 
for 2022 but the fossil-free 
steel will only be launched 
in 2026. The supply volume 
is not specified.
2026
Replace coking coal with 
fossil-free electricity and 
hydrogen.
N/A

Greenpeace ｜ 2. The status quo of steel decarbonisation by global automakers
16
Automaker
Steel Partner
Partnership Plan
Time to start 
supply
Technology claimed  
to adopt
Scale of the supply
Mercedes-
Benz
Salzgitter
Salzgitter AG delivered 
green strip steel products 
with a CO2 footprint 
reduced by more than 66% 
to four German plants 
of Mercedes-Benz AG.38 
The supply volume is not 
specified.
N/A
Using green hydrogen and 
renewable energies on a 
new production route to 
reduce over 95% of CO2 
emissions
N/A
Baosteel
Mercedes-Benz signed 
MOU with Baosteel to 
supply the carbon-reduced 
steel.39 The supply volume 
is not specified.
2025
H2- DRI-EAF
N/A
BMW
H2 Green 
Steel
BMW entered into an 
agreement with H2 Green  
Steel to purchase hydrogen 
steel produced using green 
electricity.40 The supply 
volume is in validation.
2025
Using electricity from 
fossil-free sources and 
green hydrogen instead 
of coal
N/A
HBIS
BMW's production at its 
Shenyang, China plant 
will gradually incorporate 
automotive steel which 
is claimed to be 10% to 
30% less carbon intensive 
from mid-2023, and will 
start using ‘green steel’ 
produced by HBIS in the 
vehicle production process 
and it will gradually cut 
95% of carbon emissions.41
2026
Based on technologies 
such as green electricity 
and electric furnace.
Shenyang plant
Salzgitter
Salzgitter AG will be 
supplying all the European 
plants of the BMW Group 
with low-CO2 steel from 
2026, with the steel scrap 
from the BMW plants to 
be returned and directly 
reused. The supply volume 
is not specified.
2026
Using green hydrogen and 
renewable energies on a 
new production route to 
reduce over 95% of CO2 
emissions
European plants of the 
BMW Group
SDI, Nucor, 
Big River 
Steel
BMW reached agreement 
with Steel Dynamics (SDI), 
Nucor and Big River Steel 
to use renewable energy 
sources in the scrap-based 
steel production.
Active
Electric Arc Furnace with 
steel scrap and renewable 
energy
Half of the flat steel used 
by the US and Mexico 
plants of BMW Group
SAIC
Baosteel
SAIC said to develop low-
carbon steel products 
with Baosteel Group42. 
The specific steelmaking 
technology, and supply 
time and volume were not 
disclosed.
N/A
N/A
N/A

Greenpeace ｜ 3. Decarbonisation efforts by steelmakers in China, Japan and South Korea
17
3 
Decarbonisation 
efforts by steelmakers 
in China, Japan and 
South Korea
In 2021, the steel output from China, Japan and South Korea represents more than 60% of the world's 
production, with China representing more than 50%.43 Six steelmakers cover the majority of the 
automotive steel market in the region: Baosteel Group and Shougang Group in China; Nippon Steel and 
JFE in Japan; and POSCO and Hyundai Steel in South Korea, and accounting for more than one-fifth of 
the global automotive steel market. This chapter presents an analysis of the six steel producers in regard 
to automotive steel, including their progress and obstacles in decarbonisation. The data used for this 
analysis is primarily sourced from the financial and corporate social responsibility (CSR) reports of the six 
companies, as well as third-party sources such as BloombergNEF.
© Greenpeace / Jiri Rezac
3.1 
A growing market
Automotive steel has a higher profit margin than other 
steel applications and has long been a key market for the 
top steelmakers. In our investigationvi, all six companies 
demonstrate a high share in the automotive steel market. 
In fact, their total crude steel output accounts for 11.3% 
of global steel production while their automotive steel 
production is more than double that, at 23.8% of the global 
vi.	
The automotive steel in this report includes cold-rolled steel sheets, hot-rolled steel sheets, hot dip galvanised steel sheets and electrogalvanized steel sheets.
market. Specifically, Baosteel automotive steel production 
accounted for 33% of its crude steel production in 2020, 
which is the highest among the six companies. The six 
companies are expected to invest in production capacity 
and technology development for the continued growth of 
the automotive steel market. (See Figure 7.)

Greenpeace ｜ 3. Decarbonisation efforts by steelmakers in China, Japan and South Korea
18
Figure 7. Crude steel and automotive steel production of the six steelmakers in 2020. 
Steel Company
Total Curde Steel Production in 2020
Auto Steel Production in 2020
Sources: World Steel Association and market data44, 45, 46, 47, 48
3.2 
Carbon-intensive steelmaking in the near future
Steelmaking by all six featured companies is dominated by 
the blast furnace-basic oxygen Furnace (BF–BOF) route 
that heavily relies on coal to produce crude steel. Hyundai 
Steel demonstrates a much lower carbon intensity in crude 
steel because of a higher percentage of output from EAF. 
However, its automotive sheets are primarily made using 
the BF–BOF route, which has similar carbon intensity 
compared with other steelmakers. Even though the China-
based steel producers have a higher proportion of BF-
BOF output, they still achieve a lower crude steel carbon 
intensity because of the younger facilities.
The age of steelmaking facilities is a major factor that 
contributes to carbon intensity. Baosteel Group and 
Shougang Group, which have both demonstrated lower 
carbon intensity, have relatively newer production 
lines. Although newer facilities are more efficient in the 
short term, they may generate high sunk costs during 
the transition to low-carbon steel in the long term. 
Steelmakers in Japan are running production in facilities 
that were established decades ago. Nippon Steel has 
started to close its aged production lines and replace them 
with facilities that utilise EAF production technology, 
forecasted to be completed before the end of 2023. Other 
steelmakers also made commitments to develop large-
scale electric arc furnace (EAF) facilities in the future. 
All six companies have committed to carbon neutrality by 
2050 but have different mid-term decarbonisation plans 
and allocation of the base-year, while Shougang does not 
have a mid-term goal. Company visions heavily rely on 
carbon capture and storage (CCS), a false solution, and 
carbon off-setting to realise carbon neutrality, instead of 
mitigating the emissions from production. Overall, before 
2030, steelmaking of these six companies will be still 
carbon-intensive. (See Table 2)
50
40
30
20
10
0
Million Tons
45.6
15
Baosteel
Group
34
3.4
Shougang
Group
40.6
10
POSCO
20
5
Hyundai Steel
41.6
12.1
Nippon Steel
24.4
7.8
JFE Steel

Greenpeace ｜ 3. Decarbonisation efforts by steelmakers in China, Japan and South Korea
19
Steel  
Company
Output in 2021 
(million tonnes)
Number of BF
Output  
by BF+BOF
Output  
by EAF
2020 Carbon 
Intensity 
(tCO2/ t Crude 
Steel)
Mid-term 
Decarbonisation  
Target
Baosteel 
Group
119.95
11
97%
3%
1.96
Peak CO2 emissions  
by 2023
Reduce 30% by 2035
Shougang 
Group
44.23
10
98%
2%
1.98
Reduce 35% by 2035
POSCO
42.96
6
86%
14%
2.11
Reduce 10% by 2030
Reduce 50% by 2040
Hyundai Steel
19.64
3
58%
42%
1.35
Reduce 12% by 2030
Nippon Steel
49.46
9
94%
6%
2.06
Reduce 30% by 2030
JFE Holdings
26.85
8
84%
16%
2.08
Reduce 30% by 2030
Sources: Global Steel Plant Tracker49, Worldsteel Association50, companies' CSR reports and news51, 52, 53, 54, 55, 56
3.3 
Tough transition to zero-carbon steel
Companies developing zero-carbon steel face many 
challenges and the technical roadmaps from the six 
steelmakers demonstrate uncertainty. In the short 
term, they have outlined two major pathways to 
decarbonisation. 
The first is relevant for those companies that are heavily 
reliant on BF–BOF. The main solutions for these companies 
involve hydrogen injection into BF. The two Japan-based 
companies, Nippon Steel and JFE Steel demonstrate this 
as they jointly develop the technology to cut emissions 
from the BF process, which will reduce CO2 emissions by 
30% but only 10% from hydrogen where the additional 
20% relies on carbon capture. They claimed that 
technology will be further improved to maximise hydrogen 
use but coal is still used in the process. The second 
pathway is the new generation EAF, plus hydrogen-based 
direction reduction. Hyundai Steel, which has a large EAF 
fleet, is installing the new generation EAF and announced 
an electric furnace-based steel production system, 
which will produce low-carbon steel by converting it to a 
hydrogen-based steel production system by 2030.57 The 
technology seems to be an early version of hydrogen-
based steelmaking but still needs to mix pig iron from the 
BF process, so the level of emissions reduction is unclear. 
POSCO has started its demonstration project of hydrogen-
based ironmaking and plans to verify the commercial 
feasibility of hydrogen-reduced steelmaking by 2030.58 
Baosteel also kicked off its pilot hydrogen-based 
steelmaking projects in 2022, aiming to produce 1 million 
DRI steel upon finishing the projects. In 2023, Baosteel 
produced the very first low-carbon auto sheet.59
However, the real challenge is the availability of green 
electricity and green hydrogen. The current supply of 
green electricity is still limited, which also limits the supply 
of green hydrogen. The steel companies would need to 
commit to promoting renewable energy to realise their 
grand roadmaps and stay competitive in the automotive 
steel market.
Table 2. Technologies and carbon intensity of the six steelmakers in 2020.

Greenpeace ｜ 3. Decarbonisation efforts by steelmakers in China, Japan and South Korea
20
Technologies exist that claim to produce low-carbon steel, the first of which involves using scrap steel. 
Unlike the BF–BOF route, the EAF process can accommodate up to 100% scrap steel. Recycled steel 
accounts for significant energy and raw material savings: over 1.4 tonnes of iron ore, 0.74 tonnes of coal, 
and 0.12 tonnes of limestone are saved for every tonne of steel scrap made into new steel compared to 
primary steel production.60 However, both technical and economic barriers exist. In 2019, only 22% of 
globally produced steel was made using scrap steel with electric arc furnaces.61 The full potential of reused 
and recycled steel is currently unfulfilled, especially in manufacturing specially shaped steel, such as for a 
car body, because of the unstable quality.16 A well-designed recycling system is the premise to control the 
quality of scrap steel, which will also contribute to carbon reduction in the EAF process. 
The steel industry will need different combinations of technologies to reach net zero emissions. 
Widespread steel recycling, the use of green hydrogen and electrification all constitute avenues for 
achieving deep emissions reductions in steelmaking. The transition to a larger share of scrap-based steel 
production can proceed smoothly as economies mature and scrap availability increases. However, rapid 
implementation of cutting-edge, early-stage technologies will also be required to support this shift.
The potential of scrap steel

Greenpeace ｜ 4. Emerging drivers for automotive steel decarbonisation
21
Emerging drivers 
for automotive steel 
decarbonisation
4 
4.1 
Public Policy
Policies and finance both play critical roles in the transition to zero-carbon steelmaking. Policies can 
create incentives for steelmakers to reduce their carbon emissions while finance can provide funding for 
the development and commercialization of low-carbon technologies. Examples of emerging public policies, 
financial instruments and trends in low-carbon automotive steel demand which might accelerate auto steel 
decarbonisation in China, Japan and South Korea are examined in this chapter.
© Jung-geun Augustine Park / Greenpeace
Since 2020, China, Japan and South Korea have committed to achieving carbon neutrality and 
tightened their policies on GHG emissions. However, while the concept of ‘carbon constraint’ has been 
just introduced to the regulations applying to the steel and the automotive industries, the policies in 
these three countries still merely focus on emissions accounting and reporting. There is a need for 
more progressive policies to effectively address ‘carbon constraint’ in the high-emission industries.

Greenpeace ｜ 4. Emerging drivers for automotive steel decarbonisation
22
China
China has implemented several policies aimed at decarbonising the auto supply chain. In 2022, the 
central government issued a plan to achieve peak carbon in the industrial sector, which ordered 
the sub-national governments and state-owned enterprises to build a low-carbon supply chain, 
that includes the automobile and steel industries.62 However, there is still no regulation to mandate 
life cycle emission accounting and reporting for automakers. In terms of carbon trading, the steel 
industry will be included in the national emission trading system (ETS) later.63 Carbon prices are 
expected to keep rising after the eight high-emission industries are included in the ETS.64 The 
increased cost of production for steel companies is expected to encourage the adoption of low-
carbon technologies. Discussions are underway to connect the corporate average fuel consumption–
new energy vehicle (CAFC-NEV) credits regulation65 (a mechanism that provides an incentive to 
automakers to electrify their fleets) with the ETS, which might give further pressure to automakers 
to decarbonise the entire value chain.66
Japan
The Ministry of the Environment Government of Japan has published guidelines on supply chain 
GHG emission accounting but has not specified the requirements for either the automotive industry 
or the steel industry. To bring total lifetime auto emissions down to zero, a carbon credit trading 
market among automakers in conjunction with sales quotas for green vehicles has been under 
consideration.67 Other policy instruments such as carbon tax or carbon credit markets have limited 
effects on pushing the automotive and steel industry to move forward in the low-carbon transition 
because the carbon price is too low.68 The Japanese government has provided financial support for 
industries that are involved in steel decarbonisation and establishment of hydrogen supply chains, 
aiming to cut 30% of CO2 emissions in the steel industry by 2030 mentioned in the GX (Green 
Transformation) Policy.69, 70 However, considering Japan’s unambitious renewable target, it remains 
to be seen how these measures will affect the production of low-carbon steel.
South Korea
The Korean government has addressed investing in technology innovations in vehicle production 
in the 2050 carbon-neutral strategy. The 4th Act on Promotion of Development and Distribution 
of Environmental-Friendly Motor Vehicles has accelerated the transition into vehicle life cycle 
analysis (LCA) based GHG emissions management and the first Korean vehicle LCA tool has been 
introduced.71 The policies implied a strong demand for low-carbon materials, including automotive 
steel, in the near future. With regards to the steel decarbonisation side, the Korean Emissions 
Trading Scheme (K-ETS) has covered direct and indirect emissions from electricity consumption by 
684 of the country’s largest emitters,72 among which 85 are steelmakers. However, the cost has not 
been significant enough to induce companies to make investments in low-carbon options, and the 
free allowances also bring the big challenge of K-ETS accounting.73

Greenpeace ｜ 4. Emerging drivers for automotive steel decarbonisation
23
On top of domestic regulations and policies, there is a 
requirement from the cross-border trade market to address 
carbon leakage.vii The EU Carbon Border Adjustment 
Mechanism (CBAM) could bring the extra costs associated 
with decarbonisation to steelmakers. CBAM will initially 
apply to a selected number of goods at high risk of carbon 
leakage including iron and steel. China, Japan and South 
Korea all had a significant increase in iron and steel exports 
to the EU from 2021 to 2022 by 88%, 68%, and 32%, 
respectively. As big iron and steel exporters to the EU, 
these three countries would be severely affected by CBAM 
if they don’t take immediate actions to decarbonise steel. 
Starting in 2026, the cost of purchasing CBAM certificates 
will be based on the actual CO2 emissions from product 
manufacturing and the free allowances allocated to these 
products, which means that steelmakers with higher carbon 
intensity will face higher costs. As a result, downstream 
producers will need to search for suppliers with lower 
carbon intensity to avoid paying the additional fees.74 In this 
scenario, China and South Korea-based steelmakers should 
pay attention because of their high exports to EU countries. 
(See Table 3.)
vii.	
Carbon leakage refers to the situation that may occur if, for reasons of costs related to climate policies, businesses were to transfer production to other countries with laxer emission 
constraints. European Commission. “Carbon Leakage.” Accessed May 9, 2023. https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/free-allocation/carbon-leakage_en.
viii.	 The findings are from different research, which may use different assumptions and research boundaries.
ix.	
Dividing the estimated total cost by the export volume in 2022.
x.	
This is a rough estimation based on several assumptions: a) Assuming the EU ETS allowances are around 60 EUR per tonne of CO2 and no free allowances; b) Carbon rate in Japan is 
equivalent to 31 EUR (including a carbon tax equivalent to 2.29 EUR and an average fuel excise tax equivalent to 29.3 EUR per tonne of CO2 emissions); c) The average steelmaking 
carbon intensity in Japan is 2 tonne CO2 per ton steel. Camille Van der Vorst. “Carbon border adjustment in the EU - the implications for Japanese exports”. EIJS Policy Brief. February 
21, 2022. https://www.hhs.se/en/about-us/news/eijs/2022/eijs-policy-brief-carbon-border-adjustment-in-the-eu---the-implications-for-japanese-exports/
Table 3. Estimated cost for iron and steel industry under the Carbon Border Adjustment Mechanism (CBAM)viii
Country
Iron and Steel Export to EU 
in 2021 (tonne)75
Iron and Steel Export to EU 
in 2022 (tonne)75
Total Estimated CBAM Cost
CBAM Cost intensityix
China
1,983,444
3,742,330
377 - 406 million USD  
(2.6 - 2.8 billion RMB)76
100 - 108 USD/tonne of iron 
and steel
Japan
892,936
1,501,385
95 million USDx
58 USD/tonne of iron and 
steel
South Korea
2,351,323
3,122,265
194 million USD  
(258.3 billion won)77
62 USD/tonne of iron and 
steel

Greenpeace ｜ 4. Emerging drivers for automotive steel decarbonisation
24
Country
Supporting areas and size
China
-	 The research and development in the steel industry strive to reach 1.5% of its annual value added with a 
focus on technologies such as hydrogen metallurgy, low-carbon metallurgy, clean steel smelting, thin strip 
casting and rolling, and endless rolling.79
-	 A sub-fund of the national green development fund was formed to support the iron and steel industry 
(approximately 7.2 billion USD).80
Japan
-	 The Green Innovation Fund of METI supports large-scale hydrogen supply chain establishment, hydrogen 
production, and hydrogen use in steelmaking processes. The funding for each project would be approximately 
15 million USD or more.81
-	 Technologies targeting decarbonising the iron and steel sector can be supported by transition finance 
guidelines.82
-	 GX (Green Transformation) Policy will invest 3 trillion JPY in 10 years to decarbonise the steel industry with 
a focus on shifting BF to EAF, introducing H2 DRI steelmaking technologies, etc.83
South Korea
-	 The Green New Deal supported the transition of infrastructure and innovations in green industries, among 
other measure.84
-	 The steel industry development strategy and plans would create a 150 bn South Korean won (approximately 
115.9 million USD) fund to support low-carbon steel production.85
Table 4. Policies providing financial support to the steel industry in China, Japan, and South Korea
While the industry should not rely on taxpayer funds 
to fulfill their obligation to reduce carbon emissions, 
innovative financial instruments are needed to channel 
more resources. Most green finance frameworks and 
instruments provide support for green economic activities 
and green equity, leaving the low-carbon transition 
activities from high-emission industries such as steel. In 
2022, the G20 introduced a transition finance framework 
to guide the future development of both jurisdictional 
policies and financial services strategies to support the 
net-zero transition. To date, several global standard groups 
have developed guidance for the steel sector transition. 
For example, the world's first climate-aligned finance 
agreement for steel – Sustainable STEEL Principles (SSP) –  
was launched in September 2022, and the signatories to 
the SSP are committed to lending to the steel sector. If 
it is fully realised, the potential impact of the agreement 
could be sizable as the signatories represent a combined 
bank loan portfolio of approximately USD 23 billion.86 
In addition to bank financing, steel companies have 
shown increasing interest in sustainability-linked bonds 
(SLBs) and transition bonds. While the bond market for 
sustainable finance is still developing, the Steel Criteria 
from Climate Bonds Initiative can certify bonds for 
companies that are on a credible transition path, allowing 
them to issue transition-labelled debt. 
4.2 
Financial Instruments
The low-carbon transition will require vast public and 
private investment. Research from Wood Mackenzie 
shows that decarbonising the steel and iron ore industry 
by 2050, in line with the Paris Agreement, will require 
US$1.4trn of funding and revolution across every stage 
of the value chain including but not limited to switching 
to renewable energy, supplying green hydrogen and 
increasing steel scrap recycling.78 Several regulatory 
bodies, including the US, Canada, and the EU, have 
allocated significant funds for the development of low-
carbon steel technology. In China, Japan and South 
Korea, governments have provided substantial financial 
support to the steel industry, particularly for hydrogen 
production and use in steelmaking. Despite these efforts, 
there remains a significant financing gap. Current financial 
support is inadequate, and some resources have been 
directed towards false solutions, such as carbon capture 
and storage.

Greenpeace ｜ 4. Emerging drivers for automotive steel decarbonisation
25
4.3 
Demand drivers
The low-carbon steel market is growing due to increasing 
support from governments and major consumers 
in industries such as construction, automotive, and 
household appliances. The International Energy Agency 
(IEA) estimates that the market size of low-carbon steel 
will reach nearly 500 million tons by 2050.91
Governments are playing a significant part in the growth 
of the low-carbon steel market, and public procurement 
can make up to 20% of local and national demand for 
steel.92 The governments of the United Kingdom, India, 
Germany, the United Arab Emirates, Canada, Japan, and 
Sweden have pledged under the new Industrial Deep 
Decarbonisation Initiative (IDDI) to support the production 
of low-carbon steel and to purchase these products 
for their own use. The clear message from the public 
procurement will further support the growth of the low-
carbon steel market.93
On top of demand drivers from the public sector, many 
companies are also pledging to procure low-carbon steel 
as part of their sustainability efforts. By joining initiatives 
such as SteelZero, companies across industries, from 
construction to automobile, are publicly committing to 
purchasing low-emission steel, which drives demand for 
and production of low-carbon steel. For example, Volvo has 
signed up for the SteelZero initiative, committing itself to 
stringent CO2-based steel sourcing requirements by 2030 
and buying only net-zero steel by 2050.
Table 5. Sustainable financial instruments examples by the steel industry in China, Japan, and South Korea
Financial Instrument
Introduction
Examples
Green loans/
sustainability-linked loans
Used by companies or other 
organisations to raise funds for  
green projects
-	 H2 Green Steel received finance from banks that align with the 
Sustainable STEEL Principles (SSP).87
Green bond/
sustainability-linked bond/
transition bond
Enable capital-raising and investment 
for new and existing projects with 
environmental or social benefits
-	 HBIS has issued green bonds for energy efficiency improvement 
projects since 2018 in China.88
-	 POSCO issued an ESG bond in an attempt to raise capital for ESG 
means.89
Green equity
Use equity investments or shares in 
a client to promote environmental 
sustainability
China Baosteel and National Green Development Fund Co., Ltd. 
jointly initiated the establishment of Baowu Carbon Neutral Equity 
Investment Fund.90

Greenpeace ｜ 5. What should the automakers do?
26
What should the 
automakers do?
5 
To decarbonise the transport sector, various measures need 
to be taken, such as rapidly accelerating the phase-out of 
internal combustion engine vehicles, reducing the number 
of cars on the road, and prioritising and promoting public 
transportation. The decarbonisation of the automotive 
supply chain is a crucial part of the effort to limit global 
temperature rise to 1.5 degrees. Rather than solely 
relying on electrification, the industry must reduce the 
consumption of steel and prioritise the incorporation of 
zero-carbon steel into products. To this end, we call upon all 
automakers to: 
-	 Commit to reducing 50% of the carbon footprint 
from steel supply by 2030 and transition to 100% 
zero-carbon steel no later than the year they have 
committed to achieving their carbon-neutral goals or 
by 2050.
-	 Curb and reduce steel consumption by reducing the size 
of vehicle models, particularly SUVs and other large 
models.
-	 Publicly disclose steel consumption and associated GHG 
emissions.
-	 Rethink the business model to reduce the number of 
cars and develop mobility services.
© Greenpeace
It is essential to foster close collaboration among 
automakers, steelmakers, policymakers and investors to 
decarbonise automotive steel. Steelmakers and investors 
should immediately stop investing in fossil fuel-based 
facilities. Investors should also actively engage with 
automobile companies they invest in and consider the 
carbon footprint of the whole value chain when making 
environmental, social, and governance (ESG) investment 
decisions. Meanwhile, governments and regulators should 
make automakers liable for the carbon footprint of their 
steel supply chain.

Greenpeace ｜ Appendices
27
Appendix 1
Automaker
Supply chain decarbonisation goals
Steel-specific 
supply chain 
decarbonisation 
goals
Steel consumption 
reduction goals
Disclosed Steel 
consumption
Disclosed Steel 
emissions
Toyota
Making its manufacturing plants 
carbon neutral by 2035 and to 
eliminate CO₂ emissions from 
value chain by 2050.94
/
/
Iron: 8.83 million 
tons in 202195
/
Volkswagen
Becoming CO₂-neutral by 2050 
including vehicles as well as plants 
and processes.96
/
/
/
/
Hyundai
Becoming zero-emissions in its 
supply chain by 2045.97
/
/
Steel: 1.04 million 
tons in 202198
/
Kia
Achieving carbon neutrality by 
2045, following a reduction of 
more than 10% to be achieved 
by 2030 through the energy 
transition of key suppliers, and a 
reduction more than 55% by 2040 
by extending these efforts to 
include raw material suppliers.99
/
/
/
/
General Motors
Suppliers in carbon-intensive 
industries providing raw materials 
or primary resources commit 
to carbon neutrality by 2038 or 
sooner.100
/
/
/
/
Stellantis
Achieving carbon net zero by 2038 
from vehicles to supply chain, and 
industrial and sites.101
/
/
Steel: 8.87 million 
tons in 2021102 
and 7.87 million 
tons in 2022103
/
Ford
Achieve carbon neutrality no later 
than 2050 across its vehicles, 
operations and supply chain.104
/
/
/
/
Honda
Engaging with major automotive 
parts suppliers to achieve 
net-zero emissions by 2050105 
but no specific supply chain 
decarbonisasion goal disclosed.
/
/
/
/
Automakers’ steel consumption, associated carbon emissions and 
reduction disclosure practices

Greenpeace ｜ Appendices
28
Automaker
Supply chain decarbonisation goals
Steel-specific 
supply chain 
decarbonisation 
goals
Steel consumption 
reduction goals
Disclosed Steel 
consumption
Disclosed Steel 
emissions
Nissan
Achieving carbon neutrality in 
2050, throughout the vehicle life 
cycle such as material extraction 
and manufacturing106 and asking 
Tier-1 parts suppliers to set 
carbon reduction goals and 
methods by plant and product.107
/
/
/
/
Suzuki
Achieving carbon neutrality in 
Japan and Europe by 2050 and in 
India by 2070.108
/
/
Iron: 0.537 
million tons in 
2020109 and 
0.48 million 
tons in 2021110 
for domestic 
manufacturing
/
Geely
Targeting carbon neutrality across 
the entire value chain by 2045
and achieving 20% reduction 
in each product line by 2025 in 
supply chain.111
/
/
Steel: 0.33 million 
tonnes; 251.5 kg/
vehicle112
/
BMW
Aiming to reduce CO2 emissions 
throughout a vehicle’s entire value 
chain by 40% by 2030.113
/
/
/
/
Renault
30% emissions reduction goal for 
the parts and materials supply 
chain by 2030.114
/
/
Steel: 2.7 million 
tonnes for vehicle 
production in 
2022115
/
Mercedes-Benz
Making an entire fleet of new 
vehicles net carbon-neutral along 
the entire value chain and over the 
vehicles' entire life cycle by 2039.116
/
/
/
/
SAIC Motor
/
/
/
/
/
Great Wall 
Motor
/
/
/
/
/
Mazda
Achieving carbon neutrality 
throughout the entire supply chain 
by 2050.117
/
/
Raw materials 
(steel, aluminium, 
etc.): 0.721 
million tons118
/

Greenpeace ｜ Appendices
29
Car Type
Representative Models
Assumed Average  
Kerb Weight
Sedan-A
Suzuki Alto, Daihatsu Mira, Honda N-BOX, Fiat 500, VW up!, Chevrolet Spark, Ford Ka,  
Chery QQ, Changan Benni
800-1000kg
Sedan-B
Honda Fit (Jazz), Toyota Vitz (Yaris), Mazda2, VW Polo, Renault Clio, Peugeot 208, Ford Fiesta, 
Chevrolet Aveo, Changan CX20, Chery A1
1000-1200kg
Sedan-C
Toyota Corolla, Honda Civic, Subaru Impreza, VW Golf, Renault Megane, Peugeot 308,  
Ford Focus, Chevrolet Cruze, Dodge Dart, BYD F3, Geely Vision
1200-1500kg
Sedan-D
Toyota Camry, Honda Accord, Nissan Altima, VW Passat, BMW 3 Series,  
Mercedes-Benz C-Class, Ford Mondeo, Chrysler 200 Series, BYD Qin, Geely Borui
1400-1800kg
Sedan-E
Toyota Crown, Nissan Maxima, Honda Legend, Audi A6, BMW 5 Series, Mercedes-Benz E-Class, 
Chrysler 300 Series, Cadillac XTS, Hongqhi H7
1600-2000kg
Sedan-F
Lexus LS, Acura RLX, Infiniti Q70, Mercedes-Benz S-Class, BMW 7 Series, Jaguar XK
1800-2300kg
SUV-A
Mitsubishi Pajero Mini, Suzuki HUSTLER
800-900kg
SUV-B
Honda Vezel, Mazda CX-3, Nissan Juke,Renault Captur, Peugeot 2008, Opel Mokka,  
Jeep Renegade, Chevrolet Trax, Haval H2, Changan CS15
1200-1600kg
SUV-C
Honda CR-V, Nissan X-Trail, VW Tiguan, Audi Q3, BMW X1, Ford Escape, Chevrolet Equinox, 
Jeep Wrangler, Trumpchi GS4, Baojun 560
1500-1800kg
SUV-D
Mitsubishi Outlander, Subaru Outback, Toyota Highlander, Audi Q5, Mercedes-Benz GLC-Class, 
Ford Explorer, Chevrolet Traverse, GMC Acadia, Haval H6, Zotye T600
1800-2100kg
SUV-E
Lexus RX, Toyota Land Cruiser, Mitsubishi Pajero, BMW X5, Audi Q7, Porsche Cayenne, 
Chevrolet Tahoe, Jeep Grand Cherokee, Ford Expedition, Haval H9
2100-2600kg
MPV
Toyota Estima, Nissan Serena, Honda Odyssey, VW Touran, Renault Scenic, Ford C-Max, 
Chrysler Town & Country, Wuling Hongguang, JAC Refine
1100-2000kg
Pickup 
Truck
Toyota Hilux, Nissan Frontier, Mitsubishi Triton, VW Amarok, Fiat Strada, Ford F-Series, 
Chevrolet Silverado, Ram Pickup, Foton Tunland, ZX Auto Grand Tiger
1500-2500kg
Car type and assumed average kerb weight
Appendix 2

Greenpeace ｜ Appendices
30
Appendix 3
Estimated steel consumption and associated emissions in 2021
Figure 9. Vehicle sales and estimated steel usage of SUVs in 2021.
Toyota
Volkswagen
Hyundai-Kia
Stellantis
General Motors
Honda
Ford
Nissan
Suzuki
Renault
Mercedes-Benz
BMW
Geely
Great Wall Motor
SAIC
Mazda
5
1
2
3
4
0
2021 Estimated steel usage of SUV’S (million tonnes)
2021 SUV Sales (million units)
Figure 8. Vehicle sales and estimated Estimated steel usage by automakers in 2021.
Toyota
Volkswagen
Hyundai-Kia
Stellantis
General Motors
Honda
Ford
Nissan
Suzuki
Renault
Mercedes-Benz
BMW
Geely
Great Wall Motor
SAIC
Mazda
10
11
9
1
2
3
4
5
6
7
8
0
2021 estimated steel usage by automakers (million tonnes)
2021 Sales (million units)

Greenpeace ｜ Appendices
31
Toyota
Volkswagen
Hyundai-Kia
Stellantis
General Motors
Honda
Ford
Nissan
Suzuki
Renault
Mercedes-Benz
BMW
Geely
Great Wall Motor
SAIC
Mazda
5
1
2
3
4
0
Figure 10. Vehicle sales and estimated steel usage of sedans in 2021.
2021 Estimated steel usage of Sedans (million tonnes)
2021 Sedans Sales (million units)

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