STEEL IN THE CIRCULAR ECONOMY

A life cycle perspective

CONTENTS

Foreword 3
The circular economy 4
Life cycle thinking 6
The life cycle assessment (LCA) approach 8
worldsteel’s LCA methodology and life cycle inventory (LCI) database 10
Sustainability and life cycle assessment 12
LCA in the steel industry 14
LCA by life cycle phase 15
Raw materials and steel production 15
Markets for by-products 16
Manufacturing and use 16
Reuse and remanufacturing 18
Recycling 19
LCA initiatives 20
Regional and global initiatives 21
Market sector initiatives 22
Construction 22
Automotive 24
Packaging 25
End notes 28
Glossary 29

Cover image: Steel staircase, office building, Prague, Czech Republic

Design: double-id.com
 FOREWORD

We live in a rapidly changing world with finite resources. Too many legislative bodies around the world
At the same time, improvements in standards of living still enact regulations which only affect the “use
and eradication of poverty, combined with global phase” of a product’s life, for example water and
population growth, exert pressure on our ecosystems. energy consumption for washing machines, energy
consumption for a fridge or CO2 emissions whilst
As steel is everywhere in our lives and is at the heart driving a vehicle. This focus on the “use phase” can
of our sustainable future, our industry is an integral part lead to more expensive alternative lower density
of the global circular economy. The circular economy materials being employed but which typically have a
promotes zero waste, reduces the amount of materials higher environmental burden when the whole life cycle
used, and encourages the reuse and recycling of is considered.
materials, all fundamental advantages of using steel.
This offers a markedly different approach and outcome This use phase limitation cannot continue. Life cycle
to the “take, make, consume and dispose” economic thinking must become a key requirement for all
model the world has been used to. manufacturing decisions.

This publication focuses on the importance of a life

cycle approach in delivering true sustainability. It
highlights for legislators and industry decision makers
the importance of analysing the entire life cycle of a
product before making legislative or manufacturing
material decisions.
Dr Edwin Basson
Director General
World Steel Association

We would like to dedicate this publication to the

memory of Jean-Sébastien Thomas (ArcelorMittal)
who very sadly died recently. Jean-Sébastien was
Chairman of the worldsteel LCA Expert Group
for the last three years and was a committed and
enthusiastic driving force behind our life cycle
activities. Much of his passion and knowledge
is incorporated in this publication.

For more information about the technical terms used in this brochure, please see the Glossary, page 29.
Linear business model

LINEAR BUSINESS MODEL

DESIGN RAW MATERIALS PRODUCTION MANUFACTURING USE DISPOSAL

Steel in the circular economy

 THE CIRCULAR ECONOMY
“The steel industry is an integral part of the circular
economy model. The circular economy promotes
zero waste, reuse of materials and recycling. It
offers a markedly different approach and outcome
to the ‘take, make, consume and dispose’
economic model currently in use.”

— Dr Edwin Basson,
Director General
worldsteel

The circular economy is a move from linear business • REUSE: Because of its durability, steel can be
models, in which products are manufactured from reused or repurposed in many ways, with or without
raw materials and then discarded at the end of remanufacturing. This already occurs with automotive
their useful lives, to circular business models where components, buildings, train rails and many other
intelligent design leads to products or their parts being applications. Reuse of steel is not limited to its original
repaired, reused, returned and recycled.1 A circular application; repurposing dates back to ancient
economy aims to rebuild capital, whether it is financial, times (turning swords into ploughshares). Reuse
manufacturing, human, social or natural. This approach occurs in sectors where it is technically possible
enhances the flow of goods and services.2 without reducing safety, mechanical properties and/
or warranties. Rates of reuse will increase as eco-
The concept of the circular economy drives optimal
design, design for reuse and recycling, and resource
resource efficiency. It makes sure that resources
efficiency become more commonplace.
are efficiently allocated to products and services
in such a way as to maximise the economic well- • REMANUFACTURE: Many steel products, such
being of everyone. In addition, products need to be as automotive engines and wind turbines, can be
designed to be durable, easy to repair and, ultimately, remanufactured for reuse to take advantage of the
to be recycled. The cost of reusing, repairing or durability of steel components. Remanufacturing
remanufacturing products has to be competitive to restores durable used products to like-new
encourage these practices. Simply replacing a product condition.3 It differs from repair, which is a process
with a new one should no longer be the norm. limited to making the product operational, as
opposed to thorough disassembly and restoration
A circular economy ensures that value is maintained
with the possible inclusion of new parts.4
within a product when it reaches the end of its useful
life while at the same time reducing or eliminating •R
 ECYCLE: Recycling has been carried out in the
waste. This idea is fundamental to the triple-bottom-line steel industry since steel was first made. Steel is
concept of sustainability, which focuses on the interplay 100% recyclable and can be recycled over and
between environmental, social and economic factors. over again to create new steel products in a closed
Without a life cycle approach, it is impossible to material loop. Recycled steel maintains the inherent
have a genuine circular economy. properties of the original steel. The magnetic property
of steel ensures easy and affordable recovery for
In a well-structured circular economy, the steel
recycling from almost any waste stream while the
industry has significant competitive advantages
high value of steel scrap guarantees the economic
over competing materials. Four keywords define
viability of recycling. Today, steel is the most recycled
these advantages:
material in the world. Over 650 Mt of steel are
•R
 EDUCE: Reducing the weight of products, and recycled annually5, including pre- and post-consumer
therefore the amount of material used, is key to the scrap.
circular economy. Through investments in research,
The steel industry continues to further integrate these
technology and good planning, steelmakers have
advantages into its operations in order to highlight the
over the past 50 years drastically reduced the
benefits of steel to those people making decisions
amount of raw materials and energy required to
on material choices. Co-operation from the whole
make steel. In addition, the steel industry is actively
production chain is necessary to ensure that reused or
promoting and developing the use of high-strength
remanufactured products have the same properties as
and advanced high-strength steel grades in many
new steels.
applications. These grades contribute to the
lightweighting of applications, from wind turbines
to construction panels and automobiles, as less
steel is needed to provide the same strength and
functionality.
5
Steel is 100% recyclable and can be recycled over and over again
to create new steel products in a closed-material loop. Recycled steel
maintains the inherent properties of the original steel.

6
 LIFE CYCLE THINKING

Every product we buy has a life cycle. Whether it is a to landfill because there is no economical way to
food can, a car, or a washing machine, every product is recycle or reuse the material. Alternatively, they can be
manufactured, used, and then can be reused, recycled downcycled to a lower grade product. It is important
or disposed of at the end of its useful life. Steel that that this information is known before key material
enters the waste stream can be easily separated and decisions are made. The whole life cycle, from raw
collected from other materials for recycling, by the use material extraction through to end-of-life recycling or
of magnets. disposal has to be considered.

Life Cycle Thinking (LCT) is a term that is used to

describe the holistic thinking that is needed to solve PACKAGING › Reducing thickness of steel
society’s problems sustainably. Life cycle thinking
for packaging has positive environmental
requires us to consider the raw materials used, energy
consumption, waste and emissions of a product across impact over its life cycle
each phase of its life. This starts with design and ends The technology used to
at the point where the product reaches the end of its manufacture the drawn
useful life. A well-designed, steel-containing product wall ironing (DI) tinplate
will already anticipate the reuse or recycling of its used in two-piece steel
components at the end-of-life. food and beverage cans
is very sophisticated.
Only by calculating the resources and energy used, Since Baosteel first
and the waste and emissions produced at every stage developed DI steel in
along this journey can we define the true environmental 1998, its thickness has
been reduced from
impact of a product. This also enables us to identify
0.280 to 0.225mm.
where its long-term environmental sustainability
The thinner DI tinplate
can be improved. For example, the small increase is widely used in the beverage packaging industry.
in energy consumption or the addition of alloying
elements required to produce high-strength steels is Reducing material thickness requires additional
rolling of the steel, which slightly increases the energy
compensated many times over when you consider
consumption of the reheating furnace and the rollers.
the life cycle of the product. Using these high-strength
However, reducing the thickness of DI tinplate brings
steels means that products can be lighter 6 and
benefits. Less steel is required and the production rate
therefore often save energy during the use phase of of finished cans is greatly improved. Transport impacts
their life, for example, when applied to the automotive are also reduced. This decreases emissions and energy
sector. Over the entire life cycle of the product, less consumption.
energy is used.
The life cycle environmental benefits of the thinner DI
There is another reason why life cycle thinking is very material were quantified in an LCA of two-piece steel
important. By knowing the actual impact of each stage cans made by the Baoyi Can Making Co. Ltd. Reducing
the thickness of the steel from 0.280 to 0.225 mm has
of a product’s life, we can make the best decisions on
decreased the weight of the material used as well as
what materials we should use.
reduced the CO2 emissions of two-piece steel cans
For example, in addition to high-strength steels, low by 14.5% over their life cycle.
density materials such as aluminium, carbon fibre or Source: Baosteel
plastics are sometimes used to make applications
lighter. However, manufacturing low density materials
can involve a much more expensive or environmentally
damaging production process. At the end of the
product’s life, these materials may need to be sent

7
The life cycle assessment (LCA) LCA generally comprises four stages:

approach 1. G
 oal and scope definition: Identify the purpose
of the study and its boundaries.
Life cycle assessment (LCA) is a tool that enables
us to measure the holistic environmental impact or 2. Life cycle inventory (LCI): Data collection and
performance of a product at each stage in its life cycle. calculation to create an inventory (a list of inputs
It provides a measure which can be used to compare and outputs) of the materials, energy and emissions
the environmental sustainability of similar products and related to the product being studied.
services which have the same function.
3. L
 ife cycle impact assessment (LCIA): Quantify
LCA considers the potential impacts from all stages of the potential environmental impacts based on the
the material’s life cycle including manufacture, product life cycle inventory of a specific product or system.
use and end-of-life stages. This is referred to as the One of the most commonly referred to impacts is
cradle-to-grave approach. When the material is fully the global warming potential (GWP) which defines
recycled back into the same material, with no loss in greenhouse gas emissions expressed in terms of
quality, as is the case for steel, this can be referred to CO2-equivalents.
as the cradle-to-cradle approach. 4. Interpretation: Identify the significant environmental
issues, make conclusions and recommendations.

Steel’s life cycle Steel production

Raw material
Pr st

-c
e

extraction ee on
10

E l s sum
ap r

0%
e

R cr
L
s t ee l sum

EC a p er
B
LA

YC
scr

LA
on

YC

BLE
Manufacturing
EC
Pos t -c

10 0 % R

Reuse and
remanufacturing

Steel recycling

Use
Source: worldsteel

8
 LIFE CYCLE THINKING

The quality and relevance of LCI/LCA results, and the • Technical Specification ISO TS 14067: 2013 - carbon
extent to which they can be applied and interpreted, footprints
depend on the methodology used. The International • ISO 14046: 2014 - water footprints
Organisation for Standardisation (ISO) has developed • ISO 14025: 2006 - environmental labels and
standards which provide guidance on methodological declarations
choices and set down rules for transparency and • ISO 21930: 2007 - sustainability in building
reporting. The relevant ISO standards on LCA are construction (currently being updated)
covered in: • GHG Protocol (WRI/WBCSD)

• ISO 14040: 2006 - Environmental management - Life Product Category Rules (PCRs) are becoming
cycle assessment - Principles and framework increasingly important as these are documents that
• ISO 14044: 2006 - Environmental management - Life define the rules and requirements for Environmental
cycle assessment - Requirements and guidelines Product Declarations (EPDs) of a specified product
These standards form the basis of a number of other category. Following ISO 14025: 2006 (Type III
standards which focus on specific issues related to environmental labels and declarations), PCRs are vital
LCA. Some examples include: to ensure transparency and comparability between
different EPDs based on the same PCR.

Durability of steel were manufactured in Belgium and shipped to the

Philippines where the church was assembled.
A circular economy promotes long product lives. The • The iconic Sydney Harbour Bridge has been carrying
longer a product lasts the less raw materials will need to road and rail traffic since it opened in 1932. The
be sourced. Product durability contributes to reducing bridge contains over 53,000 tonnes of steel waiting
the depletion of raw materials. to be recycled.

By 2050, an estimated 9 billion people will inhabit None of these structures are scheduled to be
the Earth. Steel is an enabler of the sustainable replaced in the foreseeable future.
development needed to meet the needs of these
Steel’s durability is one of the key properties that make
people.
it a sustainable material. Not only does steel ensure
In theory, all new steel could be made from recycled long product life, it also allows the reuse of countless
steel. However, this is not practically feasible due to the products, from paper clips to rail and automotive
long life of steel products, given steel’s strength and components (see Reuse and remanufacturing on
durability. Around 75% of steel products ever made are page 18).
still in use today.7 Buildings and other structures made
from steel can last from 40 to 100 years and longer if
proper maintenance is carried out. For example:

• In 1883, New York’s Brooklyn Bridge became

the world’s first steel bridge to carry traffic. Over
130 years later it still carries over 120,000 vehicles
a day.
• Completed in 1891, the Basilica of San Sebastien
in the Philippines capital, Manila, remains the
only pre-fabricated steel church in Asia. Sections
Sydney Harbour Bridge

9
There are many different grades of steel ranging from mild conventional
steels to high-strength steels, advanced high-strength steels and
specialty steels such as stainless. Each grade of steel has properties
designed for its specific application.

worldsteel’s LCA methodology and electronic appliances). By collecting data from different
regions, worldsteel can identify and encourage the use
life cycle inventory (LCI) database of best practices amongst its global membership.

worldsteel’s LCI data covers the raw material and

ent production phases (cradle-to-gate) of the steel life
o v em
pr Da cycle. This data includes environmental inputs and
m t
outputs such as resource use (raw materials, energy
ti

a
uc

co

and water) and emissions to land, air and water from

od

l lec
Process/pr

each process within the steelworks. These processes

t i on ( LC I )

worldsteel include cokemaking, steel production, final processing

LCA methodology of steel products, and other necessary processes such
as boilers, power plants and waste water treatment.

worldsteel also provides a detailed methodology to

En
vir

nm consider the benefits obtained by recycling steel from

nt

e
o

en m
tal ss products that have reached the end of their useful life
im pact asse
(see appendix 10 of the methodology report). This data
is also available from worldsteel, based on specific
The methodology worldsteel uses to calculate the LCI end-of-life recycling rates of the product. By recycling
of steel products is documented in the association’s steel, less primary raw materials are needed. Recycling
Life Cycle Assessment (LCA) methodology report, accounts for significant energy and raw material
2011. The methodology is aligned to international savings: over 1,400 kg of iron ore, 740 kg of coal, and
standards for the calculation of LCA (ISO 14040: 2006 120 kg of limestone are saved for every tonne of steel
and ISO 14044: 2006). The methodology has been scrap made into new steel.
peer-reviewed by an external panel at each update.
Using this product-specific LCI data on a global or
Both the methodology and the database are updated
regional basis, the environmental impact, or LCA, can
regularly to keep them current and relevant to the
be calculated for a final product, from cradle to grave.
market.

worldsteel has been collecting life cycle inventory (LCI)

data from its global membership since 1995. Two Also at worldsteel.org:
updates of worldsteel’s global LCI database were made
• LCA methodology report 2011
in 2001 and 2010 and it is being updated again in
• LCI data request form for 15 steel products
2015. The LCI data is available to worldsteel member
companies and third-parties. The full database is
maintained by worldsteel.

The data enables academics, architects, government

bodies, steel customers and other interested parties
to undertake LCA studies of steel-containing products.
Anyone wishing to undertake such a study can obtain
global and regional LCI data for 15 steel products by
completing the request form available on worldsteel.
org. The data can be used across all market sectors
(for example, automotive, building, packaging, energy,

10
 LIFE CYCLE THINKING

“At first glance, materials that weigh less or, more

precisely, have a lower density than steel, such as
aluminium, carbon fibre, magnesium and plastics
may appear to be interesting alternatives. However,
when the total life cycle of a material is taken into
account, steel remains competitive, owing to its
strength, durability, recyclability, versatility and cost”

— Prof. Jean-Pierre Birat,

Secretary General
European Steel Technology Platform

AUTOMOTIVE › Life cycle thinking leads to intelligent automotive material choices

The global transportation industry is a significant contributor The use of LCA gives a much more accurate picture of the
to greenhouse gas emissions and accounts for about 23% environmental impact of the vehicles that we drive. It is for this
of all man-made CO2 emissions. Regulators are addressing reason that worldsteel and steelmakers agree that life cycle
this challenge by setting progressive limits on automotive thinking should play a role in future regulations, but further
emissions, fuel economy standards or a combination of both. research is needed on how this can be implemented.

Many of the existing regulations began as metrics to reduce

Comparison of CO2 emissions of standard VW Golf
oil consumption and focused on extending the number
against AHSS-intensive Golf and multi-material* Super
of kilometres/litre (miles/gallon) a vehicle could travel. This
Light Car (SLC)
approach has been extended into the regulations which now
limit GHG emissions from vehicles.
Body-in-white mass, kg
The steel industry believes that this approach needs an urgent 300 280 kg
review. Extending the fuel economy metric to meet objectives
250 225 kg
to reduce emissions is resulting in unintended consequences.
200 180 kg
Low-density alternative materials are being used to reduce
vehicle mass. These materials may achieve lighter overall 150
vehicle weights, with corresponding reductions in fuel
consumption and use phase emissions. However, the 100
production of these low-density materials is typically more 50
energy and GHG intensive, and emissions during vehicle
production are likely to increase significantly. These materials 0
Standard VW Golf AHSS-intensive, Super Light Car,
are often not able to be recycled and need to be sent to (= baseline) VW Golf (AHSS) multi-material concept
(SLC)
landfill. Numerous LCA studies show how this can lead to
higher emissions over the entire life cycle of the vehicle as well
Manufacturing, emissions, % Use phase emissions, %
as increased production costs.
60 0 AHSS SLC
A study of the Toyota Venza compared the life cycle 40 48%
emissions of two body structures: one dominated by high- 20 -5
strength steels and the other using a magnesium/aluminium AHSS
0 -7%
structure which is 104 kilograms lighter. Carried out by the SLC -10
-20 -10%
independent University of California at Davis, the study found -21%
-40
that, while emissions during the use phase decreased by -15
6% in the magnesium/aluminium vehicle, emissions during
Reduction in lifetime emissions, % Additional production costs, Euros
the entire life cycle increased by 7% compared to the high-
AHSS SLC €795
strength steel design. -6,0 800

The Super Light Car (SLC), a European multi-material 600

project, achieved a 36% reduction in the weight of the -6,2

body-in-white compared to the baseline vehicle, a standard 400

-6.3%
VW Golf. Emissions during the driving phase of the SLC’s -6,4
200
life were reduced by 10%, and by 6.5% over its entire life
cycle compared to the baseline vehicle. However, during the -6.5% €0
-6,6 0
production phase, emissions were 44% higher and costs were AHSS SLC
significantly increased - up to €795 per vehicle. By contrast,
a VW Golf manufactured from advanced high-strength steels *Materials used in SLC: 53% aluminium, 36% steel,
(AHSS) would lead to a 6.3% reduction in emissions over 7% magnesium and 4% plastic.
the vehicle’s entire life. This is just 0.2% lower than the SLC
vehicle. During the manufacturing phase of the AHSS vehicle,
emissions are reduced by 21% at no extra cost.
Source: WorldAutoSteel

11
12
 SUSTAINABILITY AND LIFE CYCLE ASSESSMENT

Life cycle thinking: of steel, including a 60% drop in energy consumption

per tonne of steel produced.9 The environmental
Key to every aspect of sustainability
benefits related to steel’s durability, allowing for long
product lifetimes and reuse, and its recyclability are also
crucial factors that make steel a sustainable material.
SOCIAL
Social Life Cycle Assessment Social sustainability is achieved if the manufacture,
(SLCA) use and end-of-life processes for a given product
are respectful of the human being and ensure that
future generations can enjoy the same lifestyle we do
today. This involves protecting the health and safety
SUSTAINABILITY of the people who make or use a product, managing
resources for future generations, and ensuring that
ENVIRONMENT ECONOMIC social issues such as inequality and poverty are
Life Cycle Assessment Life Cycle Costing addressed.
(LCA) (LCC)
Economic sustainability requires businesses to make
ethical profits which are used to ensure the long-
term viability of their enterprises. In turn, this creates
sustainable employment which has a positive impact
In 2012, 66 members of worldsteel signed the on the well-being of people and communities.
worldsteel Sustainable Development Charter8 which More than two million people are directly employed by
commits them to improving the social, economic and the steel industry with a further two million contractors
environmental performance of their companies. By on site. Indirectly, many millions more have jobs with
signing the Charter, worldsteel’s members agreed to upstream suppliers and in the downstream industries
operate their businesses in a financially sustainable that rely on steel. In turn, these people and businesses
way, supply steel products and solutions that satisfy contribute to their own communities through taxes and
customer needs and provide value, optimise the eco- by providing further employment.10
efficiency of steels throughout their life cycle, and foster
the well-being of employees and communities. While LCA is typically applied to environmental
sustainability, an ‘integrated life cycle approach’
The Charter represents a definitive commitment by the can also be used to measure the social LCA
global steel industry to embrace life cycle thinking and and economic impact (life cycle costing, LCC) of
all three pillars of sustainability (economic, social and products. Keeping all three in balance is key if we
environment). are to make sustainable products.
The steel industry is one of the few industries to It is important to note that social and economic
monitor and report its sustainability performance at factors are as critical as environmental factors if
the global level, since the first sustainability report we are to create industries and societies which are
was published in 2004. This has enabled the steel truly sustainable.
industry to benchmark its performance and to enhance
transparency. Most companies also report on their
sustainability performance individually. Also at worldsteel.org:
In terms of environmental sustainability, changes at • Sustainable steel: Policy and indicators 2014
every phase in the steel production process over the • Safety and health section
past 50 years have resulted in significant improvements
in the resource and energy efficiency in the production

13
14
Source: Severstal
 LCA IN THE STEEL INDUSTRY
“Steel is the most recycled material in the world.
As more steel scrap becomes available, the steel
industry will close the loop in the circular economy
and will further reduce its need for raw materials”

— Dr Paul Brooks,
Chairman, Environment Committee, worldsteel
and Group Director, Environment, Tata Steel

LCA by life cycle phase Steel is made through one of two main production
routes:
Every product goes through a series of phases during • The blast furnace or integrated route: based on
its lifetime (see page 4 and 8). The first is design where the blast furnace (BF) and basic oxygen furnace
the product is defined. This stage should consider the (BOF). To produce 1,000 kg of crude steel, the main
sustainable use of the product as well as including inputs are (approximately) 1,400 kg of iron ore, 800 kg
provisions for the sustainable reuse and recycling of the of coal, 300 kg of limestone, and 120 kg of steel
product once its use phase comes to an end. scrap.11 About 70% of the world’s steel is produced
via this process.12
The next phase is raw material selection, followed
• The electric arc furnace (EAF) route: Primary raw
by manufacturing, use, reuse (which may include
materials are steel scrap and/or direct reduced iron
remanufacture) and then recycling. At the end of the
(DRI) or hot metal and electricity. To produce 1,000
process, the recycled material is transformed into a
kg of crude steel, the EAF route uses (on average)
new product and the cycle begins again.
880 kg of steel scrap, 300 kg of iron, 16 kg of coal
and 64 kg of limestone. The EAF route can also be
Raw materials and steel production charged with 100% steel scrap. About 30% of the
Key raw materials needed in steelmaking include iron world’s steel is produced via the EAF process.12
ore, coal, limestone and steel scrap (or recycled steel). Another steelmaking technology, the open hearth
With the exception of steel scrap, the ingredients for furnace (OHF), makes up about 1% of global steel
steelmaking are still relatively abundant. Steel scrap production and is in decline owing to its environmental
is in short supply globally, largely due to the long and economic disadvantages.
service life of steel in infrastructure. However, the steel
industry recycles as much steel scrap as possible that The blast furnace route always uses some scrap (can
becomes available. be up to 35%). An EAF can be charged with 100%

The steel production routes

LUMP ORE FINE ORE LUMP ORE FINE ORE

sinter pellets
Raw coal
material
preparation pellets recycled
coke steel

Blast
BF Furnace Direct Reduction
DR coal

natural gas,
natural gas,
Ironmaking oil or coal blast
oil natural gas

O2 shaft rotary kiln fluidized

furnace furnace bed
hot metal DRI
air oxygen recycled
steel Alternative recycled
recycled input steel
Steelmaking steel

OHF BOF EAF EAF

Crude steel
15
steel scrap but can use no scrap when it is charged complements the continual steps they are taking to
with 100% DRI. There is not enough end-of-life steel reduce other emissions such as dust, NOx and SOx
available to produce all new steel from recycled from the steelmaking processes.13
sources.

The steel industry has dramatically reduced its energy

Markets for by-products
consumption over the past half century.9 Members of In addition to reducing their demand for raw materials,
worldsteel are collectively and individually exploring steelmakers have become more effective at reducing
the development of new breakthrough technologies waste and finding markets for the by-products
which may make it possible to reduce the energy produced in the steelmaking process. This helps to
consumption and CO2 emissions of the steelmaking significantly reduce waste from steel’s life cycle. Today,
process further. Steel producers are also working to approximately 96% of the raw materials used to make
reduce the impact of CO2 emissions through the use crude steel are converted into steel products or by-
of carbon capture and storage technologies. This products.15 The aim is to increase this to 100%.

Average GHG emissions during global material production The industry has made significant efforts to find new
(In kg CO2e/kg of material) including finishing14 markets and applications for its by-products which
include slags, process gases (coke oven, blast furnace
Steel 2.0-2.5 and basic oxygen furnace gases), tar and benzene.
Aluminium 16.5-16.6 Slag, one of the steel industry’s major by-products, is
Magnesium
now widely used in the cement industry. This reduces
36-56
the environmental burden of cement production.
CFRP* 21-23 According to the Slag Cement Association, replacing
Portland cement with slag cement in concrete can save
Note: 1kg of steel is not equal to 1kg of another material. up to 59% of the embodied CO2 emissions and 42% of
Functional units also need to be compared (see table below the embodied energy required to manufacture concrete
for more details on estimated functional units).
and its constituent materials.16 However, this does
not account for the CO2 emissions associated with
Functional units producing slag. Slag has other applications as a crop
Material production GHG emissions comparison
fertiliser (it is rich in phosphate, silicate, magnesium,
for a typical automotive part
lime, manganese and iron) and as an aggregate in road
Mid-Range CO2e Estimated Part Weight (kg) building.
Conventional 2.3 100
steel
AHSS** 2.3 75 Manufacturing and use
Aluminium 16.5 67
Magnesium 46.0 50 During the manufacturing phase, intermediate steel
CFRP* 22.0 45 products (for example, hot rolled coil) are transformed
into steel-containing products such as automobiles.
Conventional steel 230
One of the key benefits of steel is that it can be
AHSS** 173 designed to meet the specific strength, durability,
kg CO 2 e

Aluminium 1,106 and end-of-life recycling requirements of almost any

Magnesium 2,300
application. Steel makes up nearly 60% (by mass) of
North American vehicles, and 50% in the rest of the
CFRP* 990 world.17 Using advanced high-strength steels (AHSS)
makes it possible to design lighter, optimised vehicles
*CFRP: Carbon Fibre Reinforced Plastic which enhance safety, improve fuel economy and
**AHSS: Advanced High-Strength Steel
reduce lifetime greenhouse gas emissions.
16
 LCA IN THE STEEL INDUSTRY

Ongoing research is producing new steels that are grade steels is expected to reduce the quantity of steel
even stronger and lighter than those available today. used in construction. Transportation costs are also
Wind tower turbines, vital for producing clean wind reduced thanks to the thinner, and therefore lighter,
energy, are already 50% lighter than they were a steel components. They also shorten the time needed
decade ago.18 For a 70-metre tower, that translates for processing at plants and on-site construction,
into a 200 tonne reduction in CO2 emissions.18 With largely due to a reduction in the number of welds
their higher strength-to-weight ratio, the newer steels required. Using these steels, it is possible to reduce
can be used to manufacture tower sections of up to the number of columns in building structures and make
30-metres. This reduces emissions during transport them thinner. This results in larger areas and provides
and assembly. opportunities for better design and use of space.
Higher grade steels enable structures to be developed
Higher grade steels are also being developed for which incorporate dissipation mechanisms to absorb
construction. They enable the construction of larger the majority of the seismic energy generated by an
and taller buildings in a more efficient way and produce earthquake.19
the lowest possible amount of waste. The use of higher

WIND ENERGY › Using LCA to calculate A significant reason for this is the high level of steel and
iron used in the V112-3.3 MW wind turbine (up to 84%
energy payback for wind turbines of the total weight). At the end of the turbine’s useful life,
Based in Denmark, Vestas all of this steel and iron can be recycled into new steel
is a global manufacturer products with the same, or improved, properties.
of wind turbines. Since
At least 83% of the V112-3.3 MW turbine is recycled.
1999, the company has
The components contributing to its recyclability include
been using LCA to develop
metal parts which are primarily manufactured from
energy-efficient products
steel and iron. Overall, around 86% of the V112-3.3
and production methods
MW turbine is made from metals (see diagramme for
as well as mitigating the
materials breakdown). The benefits of recycling the steel
environmental impact of its
from the turbine at the end of its life lead to a reduction
wind turbines over their entire
of 15% in the global warming potential (GWP) and a 10%
lifetime.
improved energy payback.
A cradle-to-grave LCA study has enabled Vestas to
calculate the energy payback of its V112, 3.3-megawatt Materials breakdown
(V112-3.3 MW) wind power plant. The calculation
takes into account the energy required to manufacture,
Steel and iron materials (84%)
operate, service and dispose of the plant.
Aluminium alloys (1%)
The calculation shows that the energy required to Copper and alloys (<1%)
produce a V112-3.3 MW wind turbine will be paid Polymer materials (5%)
back 37 times over the turbine’s life in medium wind Glass and carbon composites (7%)
Concrete (0%)
conditions. When 1 kWh is invested in a wind energy
Electronics/electrics (1%)
turbine, 37 kWh of energy is generated in return.
Fuels and auxiliary means (<1%)
Vestas’ use of LCA has enabled them to demonstrate Not specified (<0.2%)
that the environmental impact associated with
production of a wind turbine is minimal over its average
20-year life cycle. Source: Vestas20

17
Reuse and remanufacturing rather than being reused, opportunities exist to
create modular reinforced concrete elements such as
By designing steel products for reuse or standard floor slabs.21
remanufacturing, even more resources can be
Reuse through repurposing involves a specially
conserved. Reuse is advantageous as little or no
designed collection and reprocessing system to make
energy is required for reprocessing. Steel’s durability
the product fit for a new application. The amount of
ensures many products can be partially or fully reused
energy and resources required for reuse applications
at the end of their life. This can extend the life cycle
can be significantly lower than producing a new
of the steel product significantly. However, initial design
application from raw materials. For example, steel
based on life cycle thinking is critical if reuse is
plates used to build ships can be re-rolled and used
to succeed.
in the construction of new vessels. The only input is
The construction industry has been one of the first the energy required to reheat, re-roll and transport
to embrace the reuse of steel components such the steel.21
as structural beams, roofing and wall elements.
Remanufacturing restores durable, used products
Increasingly these elements are being designed for
to like-new condition3. It involves the disassembly
reuse. Although reinforcing steel is currently recycled
of a product, during which each component is

SPECIAL STEELS › LCA shows new of COLORBOND® steel. Developed in conjunction

with Nippon Steel & Sumitomo Metals Corporation,
COLORBOND® steel reduces environmental
ActivateTM enables metal resources to be conserved
impact over its life cycle without compromising corrosion performance. This is
BlueScope has achieved primarily through the addition of magnesium
successfully used to the 55% aluminium-zinc alloy coating and leads to a
LCA to verify the considerable reduction in the metallic coating mass of
reduced cradle-to- new COLORBOND® steel.
grave environmental While this outcome is impressive, a change in
impact of its formulation can also have unpredictable environmental
latest version of consequences. BlueScope commissioned an
COLORBOND® independent comparative LCA of the old and new
steel. COLORBOND , a pre-painted aluminium,
®
generations of COLORBOND® steel products. In the
zinc and magnesium coated steel, is a high-volume case study, the COLORBOND® steel was used as
building product which is extensively utilised in roofing for 1,000 square metres of commercial/industrial
Australia’s residential, commercial and industrial space.
markets.
The LCA results show that the latest version of
BlueScope is committed to using LCA as a tool to COLORBOND® steel sustainably outperforms its
measure the impact of new production techniques and predecessor consistently in 18 categories covering air,
product designs over their entire life. As LCA measures water, land and human health. The LCA concluded that
a broad range of categories, it gives confidence that the reduction in environmental impact was the result of
benefits gained in one area aren’t simply shifted to innovation in the formulation of the metallic coating. This
another area that is not being measured. results in an increased lifespan for COLORBOND® steel
BlueScope has invested over AUD$100 million in while using fewer metal resources.
the development of ActivateTM technology which
provides a superior substrate for the latest evolution Source: BlueScope Steel22

18
 LCA IN THE STEEL INDUSTRY

thoroughly cleaned, examined for damage, and either Large, heavy structural steel components require
reconditioned to original equipment manufacturing planning for end-of-life management. However, with
(OEM) specifications or replaced with a new part. steel scrap having value, the incentive to recover and
The product is then reassembled and tested to ensure recycle these components is high and more cost-
proper operation. This process differs from repair, effective than paying for them to be placed in landfill
which is limited to making the product operational sites. It is important to note the difference between
as opposed to thorough restoration. A wide range recovery and recycling rates. While more than 85%13
of steel products are already remanufactured. They of vehicles are recovered globally, nearly 100% of the
include machine tools, electrical motors, automatic steel in these recovered automobiles is recycled.
transmissions, office furniture, domestic appliances,
Recycling ensures that the value of the raw
car engines and wind turbines.
materials invested in steelmaking lasts far beyond
Steel also facilitates its own longevity. Steel-framed the end of a steel product’s life, and that the steel
buildings can be easily adapted if the configuration remains a permanent resource for society.
of the structure needs to be changed. The building
When raw materials become more scarce and costly,
can be taken apart and rebuilt with minimal disruption
the price of steel will increase. As the price of scrap
to local communities and the environment. Strong,
steel is linked to that of the primary material, the
durable exterior steel structures can accommodate
incentive to recover steel will continue to increase
multiple internal reconfigurations to suit changing
in the future. As steel production is still increasing,
needs. Warehouses or industrial buildings made with
and because the majority of steel remains in use in
steel can be easily converted into modern living or
buildings, bridges and other products for many years,
working spaces. This extends the useful life of the
the proportion of steel produced from steel scrap
building (and the life of the steel it contains) to save
remains limited. Availability will increase in the future
resources and reduce costs.21
as there is a large amount of steel still in use.

Recycling Around 75% of steel products ever made are still in

use today.
Steel is 100% recyclable without loss of its inherent
material properties and is the most recycled material The use of the term ‘recycling’ should be clarified.
in the world. Approximately 650 million tonnes23 of All types of steel can be recycled back into new steel
pre- and post-consumer scrap are recycled annually, of various grades, keeping its inherent material
leading to significant savings in energy and raw material properties. Thus, steel scrap from lower value steel
use. All scrap from steel production and downstream products can also be converted into high value steels
processing (often referred to as pre-consumer scrap) is by using appropriate processing and metallurgy. For
collected and recycled directly in the steel production other materials this is not typically possible; indeed the
process. The recycled content of any steel product can quality of recycled material is often downgraded
range from 5 to 100%. or downcycled, as in the case of concrete, wood
and aluminium.25, 26
More than 23 billion tonnes24 of scrap have been
recycled since steel production began. Using magnetic Recycling is important in the circular economy as it
separation, the steel scrap from post-consumer conserves valuable resources. In addition to steel
products can be easily retrieved from almost any waste industry efforts to increase recovery rates, there are
stream. A worldsteel review showed that recovery rates also initiatives, in conjunction with other metal industries
for different sectors range from 50% for small electrical and research institutes, to identify losses throughout
and domestic appliances, up to more than 90% for product life cycles. The goal is to minimise these losses
machinery. Levels of up to 98%24 for structural steel and further improve the recycling rate of steel and other
in commercial and industrial buildings are achieved. materials.

19
20
 LCA INITIATIVES
“When it comes to product life cycles, steel has
undeniable advantages compared to all other
materials, and this is a huge opportunity for the entire
industry. However, there are currently considerable
regional differences when it comes to approaches,
regulations, and criteria, and it would give the industry
greater impact if these were harmonised.”

— Dr Wolfgang Eder,
Chairman, worldsteel
and CEO, voestalpine

There is a great deal of legislation in place to One of the latest initiatives from the European Union
ensure that the environmental impact of products, is the Product Environmental Footprint (PEF)
manufacturing, and waste is minimised. However, standard.28 A PEF aims to measure the environmental
this legislation typically focuses on one aspect of a performance of a product throughout its lifetime.
product’s life - usually the use phase. Some steel companies are actively participating in the
current pilot phase of the initiative and are testing the
When assessing the sustainability of the steel industry,
applicability of the standard for steel products. While
regulations focus on production emissions. As a
PEF is an EU scheme, the intention of the European
result, the steel industry is considered to be one of the
Commission is that once implemented, it should be
biggest CO2 emitters due to the sheer amount of steel
applied to every product sold in the European market.
produced: 1.6 billion tonnes annually. Taking a life cycle
approach, which also considers the benefits of steel
products in use, changes this perspective.
EXCELLENCE IN LIFE CYCLE ASSESSMENT
A number of different initiatives to promote life cycle › Steelie Award
thinking are being undertaken around the world across
most market sectors. Voluntary schemes, such as Every year, during its annual
conference in October,
building or product rating schemes, focus on a range
worldsteel hosts the Steelie
of areas. Some concentrate solely on the use phase or
Awards to recognise the
single indicators such as embodied energy or carbon.
contributions and achievements
These single indicator measures can result in a less
of companies and individuals
sustainable outcome or unintended consequences,
in seven categories including
because they do not take into account the full lifetime technology, education and
of the product or multiple environmental impacts. environment – all areas that
are vital for the industry to
Regional and global initiatives remain sustainable. The Excellence in LCA award
recognises companies that have played a key role
Several regional and global life cycle based initiatives in establishing and guiding the work of worldsteel in
have been developed over the past 10 to 15 years LCA demonstrating their commitment to the ethical
of which some have been taken into account in and pro-active use of LCA and shaping the debate
legislation. However, a number of these initiatives in the public and policy-making arenas. Member
remain at an early stage and need further developing. nominations are called for by worldsteel and judged
by an external expert panel.
Below we highlight a few examples of regional and
global initiatives supporting the circular economy.
Winners of the Excellence in LCA Steelie Award
Launched in 2002, the Life Cycle Initiative 27 is a 2014: Tata Steel in Europe for the use of LCA to
partnership between the United Nations Environment demonstrate the benefits of steel in bridge
Programme (UNEP) and the Society for Environmental designs versus alternative materials (page 23)
Toxicology and Chemistry (SETAC). This initiative aims 2013: B
 lueScope Steel for improving environmental
to put life cycle thinking into practice. Phase III of the sustainability of its product range: Next generation
project, which will run from 2012 to 2016, aims to ZINCALUME® steel AM125 and COLORBOND®
enable the global use of credible life cycle knowledge steel AM100 (page 18)
in order to create more sustainable societies. With 2012: Baosteel for their overall LCA activities
its global approach and UN backing, the partnership
2011: ArcelorMittal for their overall LCA activities
influences governments around the world to include
life cycle thinking in new environmental, social and 2010: Tata Steel in Europe for their overall LCA activities
economic legislation.

21
Steel is used to make bridges, railway tracks, skyscrapers,
wind turbines, stadiums, washing machines, cars and computers.
Most of the products that surround us are made of steel or produced
by a tool or machine made of steel.

The Australian Life Cycle Assessment Society (ALCAS) are responsibly or locally sourced. One of steel’s major
and the Life Cycle Association of New Zealand (LCANZ) benefits in these schemes is that it contributes to use
have joined together to create the Australasian phase energy efficiency and it can be completely
Environmental Product Declaration (EPD) recycled or reused at the end of the building’s life.
Programme which was launched in September 2014.
The Building Research Establishment
It is a move which is designed to increase the use of
Environmental Assessment Method (BREEAM) is
EPDs in the region.29
In North America, the American Center for Life Cycle
Assessment (ACLCA) is seeking to build capacity UTILITY POLES › Steel versus wood for poles
and knowledge of environmental LCA among industry,
government and NGOs. ACLCA is the professional In 2013, the American
society for LCA in North America and, among other Iron and Steel Institute
things, hosts an annual international conference (AISI) commissioned an
dedicated to a wide range of LCA topics. These include LCA study into the life
emerging issues, advances in data collection and cycle costs of timber and
galvanised steel utility
methodologies, policy applications, and case studies.
poles in North America.
In China, the Ministry of Industry and Information The study covered the
Technology launched an initiative on eco-design in the production, installation,
automotive and home appliance sectors during 2013. maintenance and disposal
The Chinese Eco-design Initiative aims to draft the of utility poles over a 40-
year timeframe.
eco-design manual for several key products including
cars. Most car manufacturers in China, and some The assessment covered typical LCA criteria such
raw materials suppliers, have participated in the pilot as emissions to air and water, as well as addressing
concerns such as the ecological impact of steel and
project of this initiative. In the long term, the eco-design
wooden poles on various species of fauna.
initiative will launch an authentication system for eco-
designed products. Products which meet the criteria Of the 35 indicators assessed, a clear majority showed
steel poles had a significantly lower impact than those
will have priority over non-complying products in the
made of wood. For several of these, the steel pole
Chinese government’s procurement catalogue.
advantage was 100% or greater. Some key findings from
the study included:
Market sector initiatives • Steel poles produce lower levels of emissions
associated with climate change over 40-years. Existing
Construction forest management practices result in a 20 to 30%
loss of carbon storage.
The global construction industry has established a
• Endangered and threatened species are less
number of standards which are driving the adoption
disrupted if steel poles are utilised. Up to 90 species
of life cycle thinking in new buildings and renovations. of fauna are affected by the harvesting and production
These standards recognise the sustainability of wooden poles.
performance of a building across a range of criteria • Steel poles generate less waste as all steel can be
including energy use. Developers and building recycled into new products. At the end of their service
managers use the ranking to demonstrate the life, wooden poles are typically landfilled, but can also
sustainability of their construction projects to clients be burnt or reused. As wooden poles are treated with
and regulators. chromate copper arsenate, their disposal in landfill can
be detrimental to human health and the environment.
Credits are awarded for the use of construction
products that have a low environmental impact and Source: American Iron and Steel Institute30

22
 LCA INITIATIVES

widely used in Europe for buildings and large-scale credit for the LCA of buildings and rewards the use of
developments, but has also been adopted in other EPDs.32
regions. The most common standard in North America
The adoption of these standards has led many
is the US Green Building Council’s Leadership in
steelmakers to create EPDs for their own construction
Energy and Environmental Design (LEED) Program.
products. Typically an EPD presents LCA results
Like BREEAM, building projects must meet pre-set
covering each step of the product’s life from raw
criteria to earn points in order to achieve certification.
material sourcing to its eventual disposal. However,
Version 4 of LEED for building design and construction,
cradle-to-gate EPDs are also being developed.
released in November 2013, incorporates new
There are various international standards available for
credits for whole building LCAs, EPDs and product
companies to follow including:
transparency documents (such as health product
declarations or HPDs). LEED is expanding globally • ISO 14025: 2006 - environmental labels and
with just under 25,000 projects certified in over 250 declarations
countries.31 • ISO 14040 and 14044: 2006 - LCA methodology
• EN 15804: 2012 - European Norm describing core
The Green Building Council of Australia launched the
rules for construction products
next generation of their Green-Star ® Design and As
• ISO 21930: 2007 - sustainability in building
Built tool in October 2014. The tool now includes a
construction (currently being updated)

BRIDGES › Independent research demonstrates  ecyclability: while steel can be recycled and reused,
• R
without loss of quality, materials such as wood and plastic
steel has lowest life cycle impact are typically burned at the end of their life, while concrete is
Government authorities are increasingly using sustainability downcycled to create low-value products such as gravel.
criteria when choosing materials for infrastructure projects. • L ightweight: Steel bridges are four to eight times lighter
In the Netherlands, an LCA study of different materials used than those built from concrete. Even bridges made from
in bridge construction was conducted by environmental plastic, which is typically regarded as a lightweight material,
consultancy Beco on behalf of the Dutch Department of have the same weight as the steel bridge design. The
Infrastructure. The study was supervised by a steering resulting reduction in the foundation construction would
committee including experts in construction and sustainability also provide an additional advantage for steel.
from the Dutch government, BAM Infra and environmental
• E
 nvironmental impact: Due to its low weight and good
consultant NIBE and then reviewed.
recycling properties, the steel road bridge has the lowest
Two common types of bridge were analysed: MKI score. Compared to plastic, the environmental footprint
• Bicycle bridge with a span of 14 metres of a steel bridge is approximately 60% lower.
• General traffic bridge with a span of 24 metres. MKI score for road bridges shows steel has the lowest
To determine the environmental impact of the bridges, the impact over the life cycle of the bridge
Harmonised SBK Environmental Assessment Method for
Buildings and Civil Engineering works was used. This method 25,000 Abiotic depletion, non fuel
is based on standards including BS 80065 and ISO 14040/44. Abiotic depletion, fuel

The Dutch Environmental Database (SBK) formed the data 20,000 Global warming (GWP100)
Ozone layer depletion (ODP)
MKI score (Euros)

source of the study.

15,000 Photochemical oxidation
The results are expressed as an Environmental Indicator (MKI) Acidification
score which weighs several environmental effects. The higher 10,000 Eutrophication
Human toxicity
the MKI, the larger the environmental impact of the project.
Aquatic ecotoxicity, fresh water
The study found that steel had significant advantages in the 5,000
Aquatic ecotoxcity, marine water
following areas: Terrestrial ecotoxicity
0 Concrete Concrete Steel Composite
with asphalt
Source: Tata Steel in Europe33

23
Each of the existing standards includes LCA and/ Many automakers are already using LCA as a tool to
or EPD provisions, and addresses the operational reduce the environmental impacts of their products.
energy of the building as well as the embedded energy For example:
and emissions of the building materials used. These
• In 2002, Honda implemented LCA Data and
initiatives aim to create a comprehensive framework
Management Systems and regards LCA as a ‘vital
so that different regions can implement and adopt
tool for environmental impact assessment’.
green building regulations and codes, and to provide
• Toyota actively carries out LCA studies in the
incentives for voluntary leadership programmes such
development stage of new technology. It has made
as LEED.
the decision not to use carbon fibre in its designs
because of the high level of GHG emissions
Automotive released during its production. These emissions
Current environmental regulations tend to concentrate outweigh the GHG savings achieved by reducing
on the use phase of a product’s life. One example the mass of the vehicle.
of this is the US Environmental Protection Agency’s • Volkswagen and Mercedes use LCA for
Corporate Average Fuel Economy (CAFE) environmental product design and issue
Standards. The CAFE standards focus on the use environmental certificates in accordance with the
phase by requiring car manufacturers to achieve a fleet- relevant ISO-standards.
wide average fuel economy of 54.5 miles per gallon • Ford routinely uses LCA and has begun to require
(5.14 litres/100 km) by 2025. carbon footprint data from its suppliers.
• Nissan’s 2010 green initiative incorporates LCA in
Although the standard aims to reduce the use the design of all new models.
phase environmental impact of vehicles, it can lead
to an increase in the impact of the other phases of Although there are many hurdles to cross before
the vehicle’s life cycle. For example, an increase in LCA can be used as a basis for vehicle regulations,
emissions from the production of alternative, low- governments around the globe are considering future
density materials or a lack of recyclability of these implementation. In its mid-term review in March 2014,
alternative materials. This could potentially lead to of current legislation, the European Commission stated:
increased landfilling. “Policy action should be taken to guide manufacturers
towards optimal solutions taking account of, in
Cars utilising battery electric powertrains are another particular, greenhouse gas emissions associated with
example. While reducing tailpipe or exhaust emissions, the generation of energy supplied to vehicles such as
these cars can have high levels of emissions during electricity and alternative fuels, and to ensure that those
production of the battery, typically utilise non-renewable upstream emissions do not erode the benefits related
energy during the use phase, and their batteries are to the improved operational energy use of vehicles.”
difficult to recycle at end-of-life.
Life cycle based environmental regulation is in its
Several worldsteel members have been developing infancy and not without significant challenges.
new grades of innovative high-strength steels allowing Nevertheless, the potential life cycle based regulation
auto components to be made thinner and lighter of automotive GHG emissions provides a unique
without sacrificing safety. These new steels can opportunity to align regulatory practice with the latest
achieve weight reductions of up to 25% compared to thinking on environmental product policy. It provides an
conventional steels.34 WorldAutoSteel, the automotive opportunity for a new era of enlightened and successful
group of worldsteel, has undertaken projects worth environmental legislation. The steel industry has been
more than €70 million to research and develop ways to working with governments as a knowledge resource to
apply these advanced steels to create more efficient, help address methodological issues and other factors.
lightweight vehicle designs. The goal is that future regulations should take life cycle
thinking into account.
24
 LCA INITIATIVES

“Construction, automotive and packaging are

examples of just three market sectors where life cycle
thinking is starting to be incorporated into regulations.
However, a global rethink of regulations in all market
sectors across every region is required in order to
ensure that the true environmental impact of products
is assessed correctly and consistently.”

— Clare Broadbent,
Head of Product Sustainability
worldsteel

Packaging ‘green’ products which are marketed across the EU.

Without the initiative, a company wishing to market
In Europe, many studies have been carried out to its product as ‘green’ in multiple EU countries would
gain accurate and up-to-date LCI data on different need to apply the different national schemes in force
packaging materials. These studies have resulted in each separate market. This methodology is the third
in a life cycle inventory, a list of inputs and outputs EU instrument which aims to improve the sustainability
associated with each type of packaging. of products. The other two are the Eco-label and the
This LCI data was utilised at the European level in Eco-design Directive.
2013 when the European Commission introduced the APEAL (the Association of European Producers of
Single Market for Green Products initiative, which Steel for Packaging) continually updates the life cycle
includes the PEF standard. The initiative aims to create inventory for tinplate which can be accessed from the
a common life cycle assessment methodology which European Reference Life Cycle Database (ELCD).
can be used to calculate the environmental footprint of

TRANSPORT › Environmental savings with high-

strength steel in trailers
Logistics is a key element in forestry. In Sweden, a large
proportion of timber is transported by truck. It is important
to produce more efficient vehicles so that transport costs
and carbon dioxide emissions can be reduced.
An LCA study was carried out to analyse the potential
environmental savings by upgrading the strength of the
steel in the chassis of the trailer. The goal was to reduce the
curb-weight of the truck, crane and trailer.
By upgrading the longitudinal beams in the trailer from
conventional rolled profiles (S310) to welded beams made Trailer using high-strength steel from SSAB
from Domex 700, the trailer weight was reduced by 350 kg
in space weight. Changes in design and weight savings in CO2 emission savings by applying light-weight, high-
other parts of the chassis led to a further 150 kg drop in strength steel (EcoSteel software)
weight. Additional weight reductions can be achieved by
replacing other parts of the trailer with high-strength steel Savings in CO2 due to upgrading kg/trailer
(HSS). 30,000
25,000
The LCA is based on a vehicle which travels an average
of 175,000 km/year and has an average lifetime of seven 20,000

years. It is assumed that 50% of the distance is driven with 15,000

an empty trailer. The reductions in CO2 emissions over the 10,000
different stages of the trailer’s life are shown in the figure on 5,000
the right. 0
In addition to savings in carbon dioxide, the upgrade saves Steel Transport Use Recycling Total
-5,000 production of steel phase
100 megawatt hours of non-renewable energy resources.
Costs are also reduced due to lower fuel consumption: the LIFE CYCLE PHASES
lifetime saving was calculated to be €12,300/vehicle (based
on a fuel price of €1.5/litre). Source: Jernkontoret35

25
 OFFICE BUILDINGS › LCA in the eco-design MOTORS › Improving electrical steels
of office building for AC motors
To compare the global warming potential (GWP) of a China Steel Corporation
composite steel-concrete building with one composed (CSC) and the Tatung
of 100% reinforced concrete, ArcelorMittal undertook a Motor Co. have
peer-reviewed LCA study of two buildings which had the undertaken an LCA
same dimensions and number of floors. of Tatung’s three-
horsepower electric
The study was carried out by the BIO Intelligence
motors, in co-operation
Service and peer-reviewed in accordance with ISO
with the Industrial
14040. Results have been confirmed by ArcelorMittal’s
Technology Research
AMECO software. This free software (http://sections.
Institute (ITRI) and the
arcelormittal.com) enables users to assess the life cycle
Metal Industries Research Development Centre (MIRDC).
environmental impact of composite buildings and bridge
Two Product Category Rule (PCR) documents for steel
structures.
products and alternating current (AC) motors were
In terms of CO2 impact, the results show the benefits developed in this study and verified against the ISO
of the eco-optimised composite steel-concrete structure. 14025 standard.
While the concrete in both buildings can be crushed
The LCA enabled CSC to quantify the reduced
and reused in applications such as road construction,
greenhouse gas emissions over the life cycle of its
the steel building contains less concrete. If the reuse
advanced electrical steels. The results demonstrated
and recycling of the steel is taken into account, the GWP
significant improvements in motor efficiency when the
of the composite steel-concrete building is up to
advanced electrical steels (50CS290 and 50CS400)
82% lower.
were utilised. Replacing the least advanced steel
(50CS1300) with the most advanced (50CS290) leads
Comparison between composite (steel-concrete)
to a 2.9% increase in efficiency. Shaft lifetime increases
solution and 100% reinforced concrete solution
to 20,230 hours, an increase of 24.5%. Both benefits will
significantly reduce emissions over the life cycle of the
GHG emissions (tonnes CO2 eq) Transport Concrete Steel
motor if the most advanced steel is used.
1,600
Savings in CO2 due to upgrading kg/trailer
1,400
30,000
1,200
25,000 tonnes CO2 e/motor Production and End-of-life Use phase
1,000
20,000
124
800
600
15,000 122
400 120
10,000
200
5,000
0 118
-200 0 REINFORCED REINFORCED REINFORCED REINFORCED 116
COMPOSITE CONCRETE COMPOSITE CONCRETE COMPOSITE CONCRETE COMPOSITE CONCRETE
Steel Transport Use Recycling Total
-5,000
Production and ofDismantling 114
production steel phase Recycling Total Life Cycle
construction and disposal
112
LIFE CYCLE PHASES
110
50CS1300 50CS400 50CS290
Source: ArcelorMittal 36

TYPE OF STEEL USED FOR MOTOR

Source: China Steel Corporation

26
 LCA INITIATIVES

BUILDINGS › LCA proves zero carbon steel buildings are a reality

Globally, the construction The embodied carbon emissions for the three structural
sector faces an options considered for the school building, prior to carbon
unprecedented challenge reduction technologies such as photovoltaics, being
to significantly reduce the applied, are shown in the figure below. The results from
greenhouse gas emissions CLEAR showed that advanced steel solutions (Option 2)
generated by the built offer competitive embodied and whole-of-life carbon
environment. However, performance compared to alternative solutions.
there has been a lack of
The three structural options were as follows: a baseline
reliable data to inform the technical decisions required to
design using steel and concrete, a concrete based design
meet this challenge.
and an advanced steel design.
Completed in 2012, the £1 million Target Zero project
Similar results were found for the other four building
demonstrated that net zero carbon buildings in the UK are
types studied. One of the key findings was the important
achievable in steel. The project was led by a consortium
contribution recycling materials, at the end of the building’s
of leading sustainable construction organisations in the
life, makes to reducing their environmental impact.
UK.37 The project demonstrated how to meet anticipated
future building regulations whilst achieving the highest
Life cycle results for the three structural school
sustainability ratings for buildings. This was possible building options
through assessing cost, embodied carbon, operational
energy efficiency, associated carbon emissions and cost
Emissions byCO
Savings in life cycle
due tophase (kg CO
upgrading eq/m2)
kg/trailer
effective carbon reduction technologies. 2
2

30,000
1,300 Baseline Concrete design Advanced steel design
The study analysed five non-domestic building types 25,000
including a secondary school and considered an existing 20,000
steel-framed building and alternative structural options. 800
15,000
Tata Steel used CLEAR, its in-house construction LCA tool, 10,000
to assess the carbon embodied in the materials and the 300
5,000
erection/demolition processes. This, combined with the 0
Steel
Construction Transport
Operation Use Recycling Total
Total
operational emissions from the building’s use, including -5,000
-200 production of steel phase End-of-life
quantification of the benefits of reuse, recycling and
recovery of materials at end-of-life, allows a full life cycle LIFE
LIFE CYCLE PHASES
CYCLE PHASES
approach to be taken.
Source: Tata Steel in Europe38

27
END NOTES
1. Scoping paper: Mining and metals in a sustainable world, World Economic Forum, 2014.
2. Ellen MacArthur Foundation, www.ellenmacarthurfoundation.org, 2014.
3. Lund, R. 1984. Remanufacturing: The experience of the United States and implications for developing countries. World
Bank technical paper, ISSN 0253- 7494, no. 31. Integrated resource recovery series 2. Washington, DC: World Bank and
United Nations Development Program, The International Bank for Reconstruction and Development.
4. Lund, R. 1993. Remanufacturing. In The American edge: Leveraging manufacturing’s hidden assets, edited by J. Klein
and J. Miller. New York: McGraw-Hill.
5. Bureau of International Recycling (BIR), World Steel Recycling in Figures 2009-2013, 2014.
6. Handbook Evaluation of steel and steel structures, Sweden.
7. Takamatsu, Nobuhiko, et. Al., Steel Recycling Circuit in the World, Tetsu-to-Hagané Vol. 100 (2014) No. 6. P 736-745 and
personal communication with the author, September 2014.
8. Sustainable Development Charter, www.worldsteel.org sustainability pages.
9. Steel’s contribution to a low carbon future, worldsteel, 2014.
10. worldsteel fact sheet: Working in the steel industry, October 2014.
11. worldsteel life cycle inventory data, 2011.
12. worldsteel, World Steel in Figures 2014.
13. Sustainable Steel: at the core of a green economy, worldsteel 2012.
14. L ife Cycle Energy and Greenhouse Gas (GHG) Assessments of Automotive Material Substitution, User Guide for Version
4, Roland Geyer, Associate Professor, Donald Bren School of Environmental Science and Management, University of
California at Santa Barbara, CA, USA, September 2013.
15. worldsteel, Sustainable Steel: Policy and Indicators 2014.
16. www.slagcement.org/Sustainability/Sustainability.
17. www.steel.org/The%20New%20Steel/Automotive.
18. Steel solutions in the green economy: Wind turbines, worldsteel, 2012.
19. World’s Strongest Ultra High-Strength 1,000-N Grade Steel for Building Structures Adopted at Obayashi Corporation’s
Technical Research Institute, Nippon Steel & Sumitomo Metal Corporation, September 2012.
20. L ife Cycle Assessment of Electricity Production from an Onshore V112-3.3 MW Wind Plant, P. Garrett and K. Rønde,
Vestas, June 2014.
21. Allwood J.M., Cullen J.M., et al., 2012. Sustainable Materials: with both eyes open, UIT Cambridge, England.
22. www.steel.com.au/articles/article-46-activate-technology.
23. Estimate according to BIR Global facts and Figures: Ferrous Metals: World Steel Recycling in Figures 2009 - 2013.
24. S teel Recycling Institute, Structural Steel recycling rates, 2014 (www.recycle-steel.org/Steel%20Markets/Construction/
Structural%20Steel.aspx).
25. L ightning, strike! Research News Oct 01, 2012, Volker Thome from the Fraunhofer Institute for Building Physics IBP from
the Concrete Technology Group in Holzkirchen.
26. W illiam McDonough and Michael Braungart, Cradle to Cradle: remaking the way we make things (New York: North Point
Press, 2002), 56.
27. www.lifecycleinitiative.org.
28. http://ec.europa.eu/environment/eussd/smgp/product_footprint.htm.
29. www.alcas.asn.au/news/australiasian-edp-program-update.
30. L ife Cycle Assessment of Southern Yellow Pine Wood and North American Galvanized Steel Utility Distribution Poles.
Scientific Certification Systems, Emeryville CA: 2013.
31. www.usgbc.org/articles/about-leed.
32. www.gbca.org.au/green-star.
33. Vergelijkende LCA studie bruggen, Rijksdienst voor Ondernemend, Nederland, 2013.
34. WorldAutoSteel.
35. www.jernkontoret.se/ladda_hem_och_bestall/publikationer/stalforskning/rapporter.
36. L ife cycle assessment and eco-design of office building, O. Vassart, F. Labory, A.-L. Hettinger, R. Tucho, 7th European
Conference on Steel and Composite Structures EUROSTEEL 2014 | Napoli, Italy.
37. The consortium of leading construction organisations included BCSA, AECOM, Sweett Group, the SCI and Tata Steel.
38. www.steelconstruction.info/Target_Zero#Resources.

28
 GLOSSARY
avoided burden A methodology that credits a system for producing a co-product (for example,
scrap) that can be used to displace primary production of a material, thus
avoiding the environmental burden of primary production.

BREEAM Building Research Establishment Environmental Assessment Method. Method

used to assess the sustainability of buildings which is widely used in Europe and
other regions.

CO2 equivalent The concentration of a greenhouse gas (GHG) that would absorb the same level
of infrared radiation as a given concentration of CO2. Unit of measuring global
warming potential.

cradle-to-cradle A life cycle approach where the material is fully recycled back into the same
material, with no loss in quality.

cradle-to-gate A study in which the impacts are assessed from raw material extraction up to
the point where the product leaves the factory gate.

cradle-to-grave A study which includes all life cycle phases from raw material extraction up to
the point where the product is disposed of as waste or recovered and recycled.

downcycling The process of reusing or recycling materials to create a product of lower quality
or value than the original.

EN 15804: 2012 European Norm 15804. Provides core rules for construction products.

end-of-life Defines the end of the useful life of a product when it is ready to be disposed of
or recycled. End-of-life scrap results from the treatment of a product at the end
of its useful life. Also referred to as post-consumer scrap.

environmental product declaration (EPD) A comprehensive disclosure of a product’s environmental impacts based on a
life cycle assessment (LCA).

EPD See environmental product declaration.

function Defines the purpose of what is being studied in an LCA, in reference to a

functional unit.

For steel, the functional unit covers the production of one kilogram of a steel
product to the point it leaves the factory gate.

GHG See greenhouse gas.

GHG Protocol The Greenhouse Gas (GHG) Protocol is the most widely used international
accounting tool for government and business leaders to understand, quantify,
and manage greenhouse gas emissions. The GHG Protocol, a decade-long
partnership between the World Resources Institute (WRI) and the World
Business Council for Sustainable Development (WBCSD), is working with
businesses, governments, and environmental groups around the world to build
a new generation of credible and effective programmes to mitigate climate
change.

Global Warming Potential (GWP) The ability of different greenhouse gases to trap heat in the atmosphere relative
to carbon dioxide expressed as kg CO2-equivalents.

greenhouse gas (GHG) A gas in the atmosphere which contributes to the greenhouse effect by
absorbing infrared radiation. The principal greenhouse gases are:

• Carbon dioxide (CO2)

• Fluorinated gases
• Methane (CH4)
• Nitrous oxide (N2O)
HPDs Health product declaration: a report listing the health effects associated with the
materials content of a building product.

Integrated life cycle assessment A tool for the systematic evaluation of overall sustainability aspects
(environmental, social (social LCA), economic (LCC)) of a product or service
system through all stages of its life cycle.

ISO 14025: 2006 International standard covering the principles and procedures for Type III
environmental labels and declarations.

ISO 14040: 2006 International standard covering LCA principles and framework.

29
 ISO 14044: 2006 International standard covering requirements and guidelines for LCA.

ISO 14046: 2014 International standard for measuring the water footprint of products.

ISO TS 14067: 2013 International technical specification for calculating the carbon footprint
of products.

LCA See life cycle assessment.

LCC See life cycle costing.

LCI See life cycle inventory.

LCIA See life cycle impact assessment.

LEED Leadership in Energy and Environmental Design - Version 4. Most common

method for assessing the sustainability of buildings in North America and other
regions.

Life cycle assessment (LCA) A tool for the systematic evaluation of the environmental aspects of a product or
service system through all stages of its life cycle.

Life cycle costing (LCC) A tool that evaluates the costs of a product throughout its life cycle.

Life cycle impact assessment (LCIA) An analysis of data to evaluate the contributions of the inputs and outputs
identified in the LCI to various environmental impact categories. For examples of
impact categories, see worldsteel’s LCA methodology report 2011 (page 12).

Life cycle inventory (LCI) The results obtained from quantifying the energy and raw material requirements,
atmospheric emissions, waterborne emissions, solid wastes, and other releases
for the entire life cycle of a product, process, or activity. That is, a list of the
inputs and outputs.

OEM Original equipment manufacturer.

PCR See product category rule.

post-consumer scrap See end-of-life scrap.

product category rule (PCR) A set of specific rules, requirements and guidelines for developing Type III
environmental declarations (EPDs) for one or more product categories. Based
on ISO 14025: 2006.

prompt scrap Scrap resulting from steelmaking, forming, or part manufacturing processes.
Also known as pre-consumer scrap and includes manufacturing scrap.

Recycling A resource recovery method involving the collection and treatment of a

previously used product for use as the same material in the manufacture
of a new product.

Remanufacturing Remanufacturing restores durable used products to like-new condition. It differs

from repair, which is a process limited to making the product operational.

SETAC Society for Environmental Toxicology and Chemistry. Co-founders of the Life
Cycle Initiative.

triple bottom line Measuring the extent to which enterprises are able to act in a sustainable
way gave rise to the concept of the triple bottom line. Its use has expanded
traditional accounting techniques to include performance on social and
environmental impacts and is today widely used as a measure of the
sustainability of an enterprise. The aim is to show that positive financial results
can be achieved, without a negative impact on the environment or society
around the enterprise.

UNEP United Nations Environment Programme. Co-founders of the Life Cycle Initiative.

30
The World Steel Association (worldsteel) is one of the largest and most dynamic industry associations in the world.
worldsteel represents approximately 170 steel producers (including 9 of the world’s 10 largest steel companies), national
and regional steel industry associations, and steel research institutes. worldsteel members represent around 85% of
world steel production.

This publication is printed on Olin paper. Olin is certified by the Forest Stewardship Council as environmentally-
responsible paper.

Steel in the circular economy

© World Steel Association 2015
ISBN 978-2-930069-80-7

Photography:
Page 6: Hong Kong Business Centre
Page 12: Gardens by the Bay, Singapore: Steel-made solar trees
Page 14: Inside a steel manufacturing plant: Photo provided by worldsteel member company Severstal
Page 20: Pedestrian and cycle footbridge across river Tees, Stockton-on-Tees, England
World Steel Association

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