23rd September 2022: Today, CRU, the global mining, metals, and fertilizer business intelligence company, announces that it has been selected as the recommended third party for steel industry emissions data by the Sustainable STEEL Principles (SSP) to its signatory banks. The SSP is the first Climate-Aligned Finance (CAF) agreement for lenders to the steel industry.
The SSP is made up of six top lenders to the global steel sector - Citi, Credit Agricole, ING, Société Générale, Standard Chartered, and UniCredit. Its aim is to significantly reduce carbon emissions from steel production, which is currently the largest source of industrial carbon emissions globally.
The SSP provides a methodology for banks to measure and report the emissions associated with their loan portfolios compared to net-zero emissions pathways. In doing so, the framework informs banks of how emissions-intensive their steel loans are relative to the net-zero pathway needed to stay within our planet’s remaining carbon budget — a metric known as climate alignment.
CRU worked with the RMI and the five Working Group banks–ING, Société Generale, Citi, UniCredit and Standard Chartered – plus industry review panels over 12 months. We supported the development of this important framework which enables a thorough reporting process to be completed, which the industry needs moving forward. CRU’s approach and data methodologies have been discussed with key industry players to ensure all parties involved can trust the data and in turn, maintain credibility with their reporting.
As a result, when working with this framework and applying CRU’s robust methodologies, lenders can rely on market-leading and industry-accepted data for their reporting.
CRU is delighted to be the third-party provider of the steel industry’s emissions data for the Sustainable STEEL Principles Association. It is a natural role for us as this is how we see that CRU’s standardised, transparent, and broad-reaching data can add tremendous value to sustainability strategies and decision-making for participating banks.
David Trafford Chief Executive Officer at CRU Group
This ground-breaking standard was carefully designed by leading lenders to the steel industry and has been thoroughly vetted by finance, industry and civil society. By signing onto this agreement, lenders can accurately measure their steel-related emissions and have the transition-relevant data needed to engage their clients. In doing so together, banks can signal their expectations, and demonstrate collective impact.
Lucy Kessler Steel Lead, Center for Climate-Aligned Finance at RMI