Sustainability program launched across steel supply chain

The Australian Steel Institute has launched Steel Sustainability Australia, a certification program that provides a pathway for steel businesses to operate more responsibly and transparently while being part of a sustainable future.

“Transitioning to net zero is one of the greatest challenges the world has ever faced. It will require a complete transformation of how we live, work, build, consume and travel,” said Jerusha Beresford, ASI Sustainability Manager.

According to the World Green Building Council, 75% of annual global greenhouse emissions are from the built environment (encompassing buildings and infrastructure). The built environment will need to play a major role in transitioning to net zero as buildings are responsible for approximately 30% of global energy consumption, 30% of greenhouse gas emissions and, on average, 50% of emissions in major cities.

With up to 75% of the infrastructure that will be needed by 2050 yet to be built, it is critical that design and investment decisions made today consider the scale, scope and severity of climate change impacts.

According to Beresford, the Steel Sustainability Australia certification program was developed in response to increased demand for a sustainable and decarbonised construction industry.

This has come from a global focus on climate change and net zero targets set by governments and corporations alike. More sustainable building products need to be identified and steel suppliers need certification to ensure products are sustainable and sourced through responsible and ethical supply chains.

“Increasingly, government departments, project proponents, builders and developers are specifying that steel supplied by fabricators, rollformers, reinforcing suppliers, small manufacturers and steel processors must comply with best practice sustainable operations,” Beresford said.

In September 2022, the Australian Government legislated emissions reductions targets of 43% by 2030 and net zero by 2050. These targets are enshrined in law in the Climate Change Act 2022. They will play a key role in limiting global temperature increases and ensuring Australia’s transition to a low carbon future consistent with commitments under the Paris Agreement.

To support this commitment, the Australian Government recently reformed the Safeguard Mechanism which requires Australia’s largest greenhouse gas emitters to keep their net emissions below an emissions limit. The Safeguard Mechanism (Crediting) Amendment Bill 2023 was passed on 31 March 2023, which requires emitters to adhere to harsher emissions reduction targets.

The SSA program engages the entire steel value chain by certifying downstream steel businesses such as fabricators, roll formers and reinforming processors. It also verifies upstream steel producers against best practice environmental, social and governance (ESG) indicators aligned to the principles supporting the Green Building Council of Australia’s (GBCA) Responsible Product Framework.

It provides specifiers, engineers, builders and government with the means to identify sustainable steel suppliers through transparent and consistent measurement of environmental, social and health impacts across the steel value chain.

The program is a recognised initiative under the Green Building Council of Australia’s (GBCA) Responsible Product Framework, rewarding points under Green Star rating tools.

The SSA Certification Program:

• assures certified steel suppliers and their products are sustainably manufactured and processed and are sourced through responsible and ethical supply chains;
• promotes steel as a sustainable material choice, supporting mega trends such as embodied carbon reduction and circularity/circular economy;
• provides specifiers, engineers, builders and government with the means to identify sustainable steel suppliers through transparent and consistent measurement of environmental, social and health impacts across the entire steel value chain.
   

Jorge Chapa, GBCA Head of Market Transformation, said developers and builders must create buildings that drive investment, get tenants onboard and meet corporate social responsibility needs. Building products should reduce the impacts on nature and the environment, driving the reduction of carbon content.

“In GBCA’s Responsible Product Framework, there are a number of different credits that apply to building products and steel: the responsible structure credit, the responsible envelope credit and the credit around carbon emissions and embodied carbon within a building.”

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