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Sustainability

 
Stainless steel is a versatile and durable material that benefits mankind by providing safe food, clean water, effective medical treatment, efficient power, transport, process engineering and numerous other critical applications. Stainless steel aligns seamlessly with sustainability principles and practices when viewed in their entirety. Its sustainability is crucial as we strive to reduce environmental impact, apply circular economy principles, and promote responsible resource use. 


Sustainability means “meeting current needs without compromising future generations” while balancing economic growth, environmental stewardship, and social wellbeing. However, sustainability covers a broad scope. Sustainable materials are often only characterised by their carbon emissions and environmental impact during production, while most of the sustainability benefits of stainless steel are in the use phase and at the end of life. 

The challenge for specifiers is in understanding materials’ ‘cradle-to-cradle’ characteristics and creating increasingly superior products by considering the benefit of the materials across their whole life cycle in the application being designed.  This should include not just its carbon footprint but also contributions to society, economy and environment.  

Various life cycle design models guide the scope and methodology of Life Cycle Assessments (LCA). LCA is a comparison tool used by decision-makers to understand the environmental impacts associated with all stages of a product, from raw material extraction through production, manufacturing and processing, use and maintenance, to waste disposal or recycling. 

Embodied Carbon

Embodied carbon refers to carbon dioxide (CO2) emissions, also known as greenhouse gas (GHG) emissions, associated with materials and construction processes throughout a product's life cycle. The different life cycle stages and modules in assessing the embodied carbon during the design phase are illustrated below.

 

Scope 1, 2 and 3 emissions

A company's GHG emissions are classified into three scopes:

  • Scope 1: Direct GHG emissions from operations owned or controlled by the reporting company.
  • Scope 2: Indirect GHG emissions from the generation of purchased or acquired electricity, steam, heating, or cooling consumed by the reporting company.
  • Scope 3: All indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.

 

 

The production of stainless steel begins with the extraction of raw materials, such as iron, chromium and nickel. While the initial production of stainless steel may have a higher carbon footprint compared to some competing materials, ongoing investments in innovative technologies and sustainable sourcing practices have significantly reduced emissions for many producers. Additionally, stainless steel scrap is currently classified as having a very low carbon footprint. Incorporating recycled stainless steel into new production processes further reduces the overall environmental impact, making it a more sustainable option.

Beyond the carbon footprint: The sustainability of stainless steel

Beyond production, the sustainability benefits of stainless steel are substantial during use and at the end of the product's life. Stainless steel's resistance to corrosion and wear delivers an extended lifespan, reducing the frequency of replacements, lowering maintenance and conserving resources over time.

Stainless steel is 100% recyclable and boasts high recycling efficiencies. A 2022 study by the Karlsruhe Institute of Technology revealed that 95% of stainless steel is recycled at the end of its life, 70% of which is used to make new stainless steel and 25% to make new carbon or special steel.

Stainless steel has high-value scrap, and reusing its valuable alloying elements reduces cost, resource depletion, environmental impacts and energy use. The global recycled content of stainless steel, known as scrap ratio, is 48%.

Stainless steel supports a circular economy by delivering infrastructure and essential products with high performance, durability, while reducing maintenance requirements, ensuring efficient recycling at the end of life. Considering its cradle-to-cradle attributes, stainless steel offers substantial environmental advantages.

Evaluating sustainability is multi-dimensional, requiring consideration of the entire product life cycle, including production, user, and end-of-life stages while balancing economic, environmental, and social aspects.

Stainless steel offers a comprehensive cradle-to-cradle solution.

Readers are encouraged to explore additional resources and stay informed about the latest developments in sustainability. As a start, ASSDA recommends the following:

 

Australia: ESG Reporting Standards

In June 2023, the Australian Government initiated steps to adopt ESG (Environmental, Social, and Governance) reporting standards to promote sustainable business practices. These standards will impact how companies operate, emphasising transparency, and dedication to environmental responsibility and social equity. In September 2024, the Australian Accounting Standards Board (AASB) approved the final Australian Sustainability Reporting Standards (ASRSs), and final accounting standards were passed for legislation from 1 January 2025. ESG reporting is now mandatory for major companies and financial institutes. The Australian Treasury is leading the way with its formulation of a comprehensive sustainable frame, aligning with the government’s pledge to attain net-zero emissions by 2050. 

While the initial ESG reporting requirements primarily affect larger companies, they are expected to influence the broader business landscape and operational practices. 

Carbon Border Adjustment Mechanism (CBAM)

Created by the European Commission (EU), the Carbon Border Adjustment Mechanism (CBAM) is the world’s first carbon border tax. Its primary focus is to address carbon leakage or the offshoring of emissions. Commencing with a transitional period in 2023, steel is one of the several industries affected, requiring importers to the European market to report their carbon emission quarterly. 

In March 2023, the Australian Government announced it would review carbon leakage as part of the Safeguard Mechanism reforms, with the first consultation released in November 2023. A second round of consultation was delivered and closed in December 2024. Further, the Australian Government announced its intention to review the suitability of a CBAM for Australia. Its proposed introduction would seek to level the playing field for domestic producers subject to carbon pricing.

The outcomes of these reviews could shape the policy options of the Australian Government’s Net Zero Plan, guiding the transition to the legislated target of net zero greenhouse gas emissions by 2050. 

Stainless steel stands out as a sustainable material due to its durability, recyclability, and low environmental impact over its life cycle. As Australia moves towards stricter ESG standards and adapts to global and local CBAM requirements, businesses have a unique opportunity to lead in sustainability. Embracing stainless steel and other sustainable practices will not only benefit the environment but also ensure long-term success, compliance and social responsibility. 

Readers are encouraged to explore additional resources and stay informed about the latest developments in sustainability and ESG regulations. As a start, ASSDA recommends the following: