Steel and Environment: a central issue on the agenda of the Latin American steel industry

alaceroAlacero – Santiago, Chile, November 24th, 2015. The environmental protection and socio-environmental sustainability are two central and of great commitment issues for the steel industry of Latin America. Consequently, during Alacero-56 Conference that took place in Buenos Aires a few days ago, an entire section was devoted to
discuss the role of steel in the green economy with international experts.

A Panel entitled “Climate Change: Steel in the green economy” gathered Ned Helme, founder and president of the Center for Clean Air Policy (CCAP) in the United States, Paul Brooks -President of the Committee on Environment worldsteel- and Professor Robert T. Leon in structural engineering and materials in Virgina Tech, USA. UU.-, who gave lectures on the current global issues and the role of steel as part of the solutions for climate change.

Just a few days before the Summit on Climate Change (COP 21) in Paris, the steel clearly positions itself as a preferred material for achieving solutions to this global problem.

Because of its features, steel is the most recycled material on Earth. It can be reused and recycled easily and at low cost, and return to the market repeatedly without losing its original virtues. These advantages and benefits are evident as a complete analysis of the life cycle of steel products –from production to recycling is  conducted (in automotive, construction, durable goods, or other applications). All the steel produced in the last 150 years is likely to be recycled or re-used.

This was expressed by Roberto T. Leon during his presentation: “The steel industry has a wide range of opportunities
to collaborate as part of the solution to climate change. Mainly because it is a 100% recyclable material.” Then he added: “It is needed a mentality that not only looks for innovative solutions but also is be able to invest in research and development.”

Later, Paul Brooks commented: “According to the International Energy Agency (IEA), the contribution to CO2 emissions in the steel sector is 6.7% worldwide, and it is a key material for sustainable development any economy.”
As the Paris Summit approaches, Ned Helme made an important call on the challenges that the decisions taken in that event would bring to the sustainability of the regional industry: “The targets of greenhouse emissions reductions proposed by the countries at the United Nations are ambitious. Steel is definitely a part of the solution to the global problem. The future challenge will be to define balanced reduction targets to avoid distortions in competitiveness.”

In line with Helme´s position, Paul Brooks said: “35% of the steel produced is traded internationally. So, policies should promote a level playing field to prevent disadvantages of local steel companies versus producers of other regions with fewer environmental regulations, which encourages unfair competition between local and imported products.”

The Buenos Aires Conference ended with a keynote presentation of Paolo Rocca, President of The Techint Group, which brings together Ternium (one of the most important Latin American steel makers) and Tenaris (world leader in the manufacture of tubular products). In the view of this global leader of the steel industry, “Environment and safety issue are very important issues for us, along with the relationship with the communities where we operate.

The steel industry has a carbon footprint. You need to work with our communities to reach consensus on our activity.”

“The policy that will apply to de-carbonize our energy and our region is very important for the sustainable future for our industry. (…) We want this to be in the agenda of our governments and we need to hold on it as far as it allows the expansion of our business and all the value chain”, he said. Then he pointed out the role of Alacero: “I think the agenda Alacero must take into account and focus on the theme of the environmental situation and the issue of CO2 emissions control worldwide, especially in anticipation for the Paris Conference.”

One day before Alacero Conference began, and as part of the work of Alacero on environmental issues during 2015, the Committee on Technology and Environmental Control presented a Survey of 33 cases of “Best Practices Available in Environmental Issues”, which reported initiatives for more than $ 100 million developed by Alacero´s member companies.

The cases presented by Ternium Siderar (Argentina), CSN (Brazil) and ArcelorMittal Tubarao (Brazil) were recognized by the Committee and awarded a special mention.

“It is remarkable that member companies can exchange their successful initiatives in environmental management
in order to set an example for continuous improvement. We expect that this first publication to grow and renew as an effective demonstration of the efforts and commitment of the Latin American steel industry to the protection of the environment”, said José Fonrouge, chairman of Alacero´s Committee on Environmental Policy during the presentation of this work.

About Alacero
Alacero –the Latin American Steel Association– is the organization that brings together the Steel Value Chain of Latin America to promote the values of regional integration, technological innovation, corporate responsibility, excellence in human resources, safe working environments, and social and environmental sustainability. Founded in 1959, Alacero is formed by 49 companies in 25 countries, whose production –of about 70 million annual tons– represents 95% of the steel manufactured in the region. Alacero is a Special Consulting Organization to the United Nations and is recognized as International Non-Government Organization by the Republic of Chile, host country of Alacero´s headquarters.