Crédit Agricole CIB signs the Sustainable STEEL Principles and makes a commitment to a more sustainable steel

The Sustainable STEEL Principles are the first agreement of the steel sector (banks and clients) aimed at developing the methods and data required to align the steel industry on a zero carbon trend and to measure this compliance over time.
 
In partnership with RMI, the signatories will measure and publish the carbon footprint of their loan portfolio linked to the steel sector and will work together to develop the tools required to comply with this commitment. 

The signatories of the Sustainable STEEL Principles represent a total portfolio of banking loans of approximately USD 23 billion, with an 11% total market share of loans to the private steel sector. They make the commitment to follow the five following principles:

1. Standardised assessment - to assess in a standardised way the carbon emissions of the loan portfolios
    
2. Transparent reporting - to report each year in a transparent way on the progress made
    
3. Enactment - to set up a framework to ensure credible and high quality carbon emissions data from the steel sector
    
4. Engagement - to provide information on transition plans towards carbon neutrality and on financial products available
    
5. Leadership - to argue the case for SSP and the steel industry’s decarbonisation

“Crédit Agricole CIB is a very active bank in the steel sector, one that is crucial to the economy. We are also totally committed to our Net Zero policies. The Sustainable Steel Principles are a fundamental tool to deliver the best of both in the most efficient way. They will enable our clients in the steel sector to standardise their carbon emissions reporting and will enable the bank to monitor the evolution of the carbon emissions of its steel portfolio. This will allow us to continue to serve the steel sector during its decarbonisation journey, in the manner we have been consistently providing.”
Jérôme Bernard, Global Head of Metals and Mining, Crédit Agricole CIB

Steel is used in everything from cars and fridges to buildings and planes. However, because of the sector’s reliance on coal, it contributes 7% of CO2 emissions globally. With demand for steel projected to grow 30% by 2050, emissions are set to rise significantly if we continue with business-as-usual.

This innovative, voluntary agreement is based on the model of the groundbreaking Poseidon Principles in shipping. Launched in 2019, The Poseidon Principles now include 28 banks representing over 50% of global shipping finance. Following a similar logic, the SSP enable lenders to signal their expectations for emissions reductions across hard-to-abate industries and to engage their clients to identify the financings available to support their decarbonisation. Similar frameworks for aviation and aluminum are also in development.

To read the press release, click here Will open in a new tab .