Steel Dynamics Sustainability Profile
Steel Dynamics, Inc. (SDI), headquartered in the United States, is a leading player in the steel manufacturing industry. Founded in 1993, the company has rapidly grown to become one of the largest steel producers in North America, with major operations across the Midwest and Southern regions. Specialising in steel products, including hot-rolled, cold-rolled, and coated steel, Steel Dynamics distinguishes itself through its commitment to sustainability and innovation. The company’s state-of-the-art electric arc furnace technology allows for efficient production while minimising environmental impact. With a strong market position, Steel Dynamics has achieved notable milestones, including consistent growth in production capacity and a reputation for high-quality products. Its dedication to customer service and operational excellence further solidifies its status as a key player in the steel industry.
DitchCarbon Score
How does Steel Dynamics's carbon action stack up? DitchCarbon scores companies based on their carbon action and commitment to reducing emissions. Read about our methodology to learn more.
Industry Average
Mean score of companies in the Iron and Steel Production industry. Comparing a company's score to the industry average can give you a sense of how well the company is doing compared to its peers.
Industry Benchmark
Steel Dynamics's score of 32 is higher than 62% of the industry. This can give you a sense of how well the company is doing compared to its peers.
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Steel Dynamics's reported carbon emissions
In 2023, Steel Dynamics, headquartered in the US, reported significant carbon emissions across various scopes. The company’s total emissions included approximately 2,750,371,000 kg CO2e for Scope 1, 2,314,679,000 kg CO2e for Scope 2 (market-based), and 3,238,481,000 kg CO2e for Scope 3 emissions. This data highlights the company's substantial carbon footprint, particularly in its upstream activities. Steel Dynamics has set ambitious climate commitments, aiming for a 20% reduction in combined Scope 1 and Scope 2 greenhouse gas emissions intensity by 2025, with a further target of 50% reduction by 2030, using 2018 as a baseline. Additionally, the company has pledged to achieve carbon neutrality by 2050, demonstrating a long-term commitment to sustainability. In 2024, Steel Dynamics announced certified, science-based emissions intensity targets aligned with the Paris Agreement. The interim target for 2030 is set at 0.80 metric tons of CO₂e per metric ton of hot rolled steel produced, representing a 15% reduction from the 2022 baseline. By 2050, the goal is to reduce emissions intensity to 0.12 metric tons of CO₂e per metric ton of hot rolled steel. These initiatives reflect Steel Dynamics's proactive approach to addressing climate change and reducing its environmental impact within the steel industry.
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| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Scope 1 | 1,867,717,000 | 0,000,000,000 | 0,000,000,000 | 0,000,000,000 | 0,000,000,000 | 0,000,000,000 |
| Scope 2 | 2,604,858,000 | 0,000,000,000 | 0,000,000,000 | 0,000,000,000 | 0,000,000,000 | 0,000,000,000 |
| Scope 3 | - | - | 0,000,000,000 | 0,000,000,000 | 0,000,000,000 | 0,000,000,000 |
How Carbon Intensive is Steel Dynamics's Industry?
How Carbon Intensive is Steel Dynamics's Location?
Steel Dynamics's Scope 3 Categories Breakdown
Steel Dynamics's Scope 3 emissions, which increased by 5% last year and increased by approximately 13% since 2020, demonstrating supply chain emissions tracking. A significant portion of their carbon footprint comes from suppliers and value chain emissions, with Scope 3 emissions accounting for 44% of total emissions under the GHG Protocol, with "Purchased Goods and Services" being the largest emissions source at 80% of Scope 3 emissions.
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Steel Dynamics's Climate Goals (2030 & 2050)
Climate goals typically focus on 2030 interim targets and 2050 net-zero commitments, aligned with global frameworks like the Paris Agreement and Science Based Targets initiative (SBTi) to ensure alignment with global climate goals.
Steel Dynamics has not publicly committed to specific 2030 or 2050 climate goals through the major frameworks we track. Companies often set interim 2030 targets and long-term 2050 net-zero goals to demonstrate measurable progress toward decarbonization.
