In a world increasingly driven by sustainability, corporations are reimagining how they source, produce, and utilize materials.
At the heart of this shift lies sustainable steel—a cleaner, lower-emission alternative to conventional steel that aligns with global climate targets and corporate responsibility goals.
Steel is one of the most widely used industrial materials on the planet, essential to infrastructure, transportation, manufacturing, and construction.
But traditional steelmaking is energy-intensive and carbon-heavy. Now, as industries transition to greener supply chains, major companies across sectors are integrating sustainable steel into their operations.
This move isn’t just good for the planet—it also strengthens reputations, reduces long-term costs, and meets evolving consumer expectations.
This article explores how some of the world’s leading companies are adopting sustainable steel, the strategies they use, and what this means for the future of industrial sustainability.
Why Companies Are Turning to Sustainable Steel
The global business landscape is undergoing a green transformation. Driven by ESG (Environmental, Social, and Governance) standards, regulatory pressure, and stakeholder demands, organizations are looking for ways to lower their carbon footprints without compromising quality or profitability.
Sustainable steel offers a powerful solution:
- Lower carbon emissions compared to traditional steel.
- Compatibility with circular economy principles like recycling and reuse.
- Positive environmental branding, which enhances public perception.
- Compliance with green building certifications like LEED and BREEAM.
- Future-proofing operations against environmental regulations.
These advantages are prompting major brands to rethink their materials strategies and invest in sustainable steel across a variety of applications.
Automotive Industry: Driving Toward a Greener Future
The automotive industry has been one of the early adopters of sustainable steel. With the pressure to reduce emissions not just in vehicle operation but across the entire lifecycle, automakers are turning to low-carbon steel to make cleaner cars.
Volvo
Volvo Cars was among the first to announce its commitment to fossil-free steel. The company partnered with SSAB, a Swedish steel manufacturer pioneering hydrogen-based steel production through the HYBRIT initiative.
In 2021, Volvo unveiled the world’s first vehicle made with fossil-free steel and continues to integrate this material into its production lines.
Mercedes-Benz
Mercedes-Benz is working with H2 Green Steel, a company developing Europe’s first large-scale green steel plant powered by renewable hydrogen. Mercedes plans to use this steel in its vehicles starting in the mid-2020s, aligning with its goal of a carbon-neutral supply chain by 2039.
BMW
BMW is also actively incorporating green steel through partnerships with suppliers that use electric arc furnace technology powered by renewable energy. The automaker has emphasized its goal to cut CO₂ emissions in its supplier network by 20% by 2030.
Construction Industry: Building with Responsibility
The construction sector is a major consumer of steel and a significant source of emissions. As developers pursue net-zero buildings and sustainable certifications, green steel has become a key material in eco-conscious construction.
Skanska
Skanska, one of the world’s largest construction and development companies, is integrating low-carbon steel into its commercial projects. The firm emphasizes life-cycle assessments and works with certified steel suppliers to meet environmental goals.
Arup
Engineering and design firm Arup is advocating for circular construction practices, including the use of reused and recycled steel in infrastructure. Arup’s projects often include steel structures designed for disassembly and future reuse.
Lendlease
Global property and infrastructure group Lendlease has made green steel a central component of its sustainability agenda. The company’s developments aim to minimize embodied carbon, and sustainable steel sourcing plays a key role in achieving this.
Tech Giants: Green Steel in Data Centers and Devices
Even in sectors where steel isn’t always front and center, tech companies are finding innovative ways to incorporate it sustainably.
Apple
Apple has committed to carbon neutrality across its entire supply chain by 2030. Part of that effort includes working with suppliers who manufacture components using green steel. The company also focuses on recycling, reusing metals, and designing products that are easier to disassemble.
Microsoft
Microsoft’s data center infrastructure involves large volumes of steel for racks, structures, and building supports. The company has joined initiatives that encourage the use of low-carbon steel in construction and plans to expand its commitment as green alternatives become more available.
Consumer Goods and Retail: Sustainable Steel in Supply Chains
Retailers and manufacturers are beginning to look beyond packaging and logistics to the materials used in their supply chains.
IKEA
IKEA is known for its strong sustainability stance. The company is exploring the use of green steel in product manufacturing, particularly in items such as bed frames, shelving units, and storage solutions. It has also signaled interest in sourcing steel from H2 Green Steel and similar low-carbon suppliers.
Unilever
Unilever has invested in decarbonizing its production facilities, including the use of green steel in machinery and plant infrastructure. The company also participates in cross-sector partnerships to improve material traceability and carbon transparency.
Aviation and Transportation: Lighter, Greener, Smarter
Aircraft and train manufacturers are integrating sustainable steel into designs to reduce emissions and increase efficiency.
Boeing and Airbus
These aviation giants are working with suppliers to introduce lower-carbon alloys and recycled metals, including sustainable grades of steel, in aircraft components. While aluminum and composites dominate, structural steel plays a role in tooling, equipment, and infrastructure.
Siemens Mobility
In rail transport, Siemens Mobility uses high-strength steel in train carriages and rail infrastructure. The company is evaluating lower-emission steel options to reduce the overall carbon impact of their transport solutions.
Procurement and Certification Strategies
For companies integrating sustainable steel, traceability and verification are key. Most leading adopters rely on certifications such as:
- ResponsibleSteel™: A global standard that audits ESG compliance and sustainable practices in steelmaking.
- EPDs (Environmental Product Declarations): Independent reports on environmental impacts over a product’s lifecycle.
- Green building certifications like LEED and BREEAM that require or incentivize sustainable materials.
In addition, many companies are working directly with steelmakers to ensure transparency in emissions data and are incorporating material sustainability into their procurement policies.
Business Impact and ROI
Adopting sustainable steel is not just a moral decision—it’s an economic one. Leading companies report:
- Improved brand reputation and stronger stakeholder trust.
- Long-term savings through energy-efficient materials and lower environmental penalties.
- Increased investor interest, especially from ESG-aligned funds.
- Better alignment with climate goals and regulatory compliance.
These benefits create a competitive edge and prepare companies for a market that increasingly favors low-carbon operations.
Challenges Along the Way
Despite the momentum, challenges remain:
- Limited supply of green steel, especially hydrogen-based steel, constrains adoption at scale.
- Higher costs compared to conventional steel, although this is expected to decrease as technologies mature.
- Inconsistent global standards, making it harder for multinational firms to implement uniform practices.
Nevertheless, with rising demand, innovation, and supportive policy frameworks, these barriers are quickly being addressed.
What Comes Next?
As the supply of sustainable steel grows and prices stabilize, its adoption will accelerate across all sectors. Government incentives, carbon pricing, and green procurement laws will push companies further, while consumers will continue to favor brands that take responsibility for their environmental impact.
For businesses looking to lead, early adoption of sustainable steel sends a powerful signal: a commitment to progress, innovation, and a better future.
A Steel Backbone for a Sustainable Economy
Sustainable steel is becoming a key enabler of responsible growth. From vehicles and buildings to gadgets and infrastructure, major companies are proving that it’s possible to balance performance with environmental responsibility.
By choosing low-carbon steel, businesses aren’t just reducing emissions—they’re building trust, setting industry standards, and helping to shape a future where sustainability and success go hand in hand.
Sérgio Antonini is a Mechanical Engineer with a specialization in Competitive Business Management and over 30 years of experience working with steel in national and international markets. Through this blog, he shares insights, technical analyses, and trends related to the use of steel in engineering, covering material innovation, industrial applications, and the strategic importance of steel across different sectors. His goal is to inform and inspire professionals working with or interested in steel.