.png)
Methodology
Steelstat presents Scope 1, 2 and 3 carbon emissions, in line with the gas emissions protocol.
We can contain our steel emissions research and metrics within varying asset boundaries as per client requirements, but by default we cover two distinct boundary areas.
​
The first boundary refers to the steelworks ‘site’ only. Broadly speaking this covers entrance at the factory gate though to finished steel. This approach is widespread among steel producers who currently report emissions data.
The second boundary is unique to Steelstat in that it covers upstream mining of raw materials as well as the steelworks ‘site’ (achieved through Steelstat’s partnership with Skarn Associates) This wider boundary presents a far more comprehensive picture of steel industry emissions.
​
Whichever boundary is presented, a key principle of our service is that emissions metrics are structured to enable like-for-like comparisons of plant assets between different producers. This increases the integrity of our results for asset benchmarking and rankings.
A second key principle of our service is data transparency to the client. This includes not only the technical formulae for emissions calculations but extends to the detailed materials and gas consumptions by plant.
Steelstat methodology includes a rating system to inform our clients of our confidence level with the data.
Rating (A): The company reports a minimum of scope 1, scope 2 and production data covering a single steelworks site
Steelstat takes the published numbers from the company reports then normalises and verifies the data as required.
Steelstat will adjust its steel model technical parameters, so its calculated CO2 emission values reconcile with company data (subject to normalisation).
​
Rating (B): The company reports production data and energy consumptions (incl. reductants, gases, electricity, fuels)
Steelstat adjusts its steel model technical parameters as required so its calculated energy values reconcile with company data.
CO2 emissions can then be calculated using conversion factors.
​
Rating (C): The company reports only aggregated values for either production, energy or GHG emissions
Steelstat breaks the totals down to individual steel plant sites, ensuring the totals add up to those reported by the company.
​
Rating (D): The company used to report more granular data, or its environmental/sustainability reports are only published every 2 or 3 years. The steel model accounts for the historic parameters of the asset but also reflects relevant data and trends from Steelstat's ongoing research programme.
​
Rating (E): The company does not disclose information.
Steelstat uses 'bottom-up' proprietary steel plant operating models to estimate CO2 emissions for the steel plant site.
The supporting information and data points required for the model are taken from Steelstat's extensive programme of ongoing research (see 'Steelstat data sources' above)
A - As reported for the steel plant site
B - Inferred from reported energy data
C - Reconciled to divisional or corporate total
D - Extrapolated from historic data
E - Benchmarked
Emissions reporting in the steel industry
It is usually not possible to use company disclosed data for benchmarking steel plant emissions across different organisations.
​
Company published emissions data may reflect consolidation across multiple plant sites.Boundaries may be inconsistent as a base for scope calculations, eg. some steel plants may place a specific production asset in scope 3 as opposed to scope 1.
Company scope data may refer to part of a steel plant only, such as iron making, or iron making to crude steel, or all processes to first rolled product, etc.
Published company steel production data can be inconsistent, sometimes referring to liquid steel, crude steel, steel rolled products or other (affects intensity results)
​Scope results could be distorted by units, eg. use of short tons rather than metric tonnes, or fiscal year v. calendar year results
Scope methodologies can differ according to the emission standards used. This can affect the inclusion of items such as blast furnace slag credits, on-site power plants, etc.
The algorithms or conversion factors used to calculate CO2 emissions may follow a non-disclosed standard, or even be proprietary. Details are almost never disclosed.
Steelstat seeks to normalise emissions data to provide a level playing field for fair comparison across steel plant assets.
The Steelstat approach
At the heart of our methodology lies Steelstat's Steel Operations & Emissions Platform, built to (1) calculate and normalise emissions data, (2) assist in validation of official data and (3) reconcile model inputs with official data where appropriate.
The Platform contains all the steel plants tracked by Steelstat and each plant is modelled according to its unique technical specification, detailed operating parameters and material/energy consumptions and credits.
CO2 emissions data is calculated using the worldsteel organisation's conversion factors for each of the material and energy volumes.
The Steel Operations & Emissions Platform provides an invaluable tool that allows for both 'bottom-up' and 'top down' modelling, depending on the data available.
Steelstat's policy is always to use official values where disclosed, but data must undergo a process of normalisation to ensure that fair comparisons can be made across all other steel plants in the database.
By having each steel plant already modelled, the Steelstat Platform allows us to explore and verify the basis for the official values as part of our process in addressing inconsistencies occurring in much of the published data (see 7-point list above). Any disclosed data that supports the emissions values, such as materials/energy volumes consumed or materials recycled, etc, will be inputted straight to the Platform
Where a company does not disclose any information Steelstat uses the emissions values calculated directly from its platform.
Steelstat data sources
Populating the data for each steel plant site in the Steel Operations & Emisssions Platform requires an extensive programme of ongoing research. Typical information required covers plant technologies and sub-processes, specifications, capacities, production, technical parameters and KPI's, material and energy consumptions, energy balances, credits, operating practices.
Our analysts need to use a wide range of information sources to help model each steel plant, including:
-
Company reports
-
Technical journals
-
Published electricity emission factors
-
Country research data providers (particularly for site production data)
-
Site visits
-
Conference papers
-
Staff expertise and experience
-
Discussions with industry contacts
-
Industry trade associations
-
Trade databases
-
Industry news articles
