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European steelmaker ArcelorMittal is an industrial giant, producing more of the high-strength metal than any other company except China\u2019s state-owned Baowu Group. Its reliance on coal-fueled blast furnaces has made it a target for climate activists, who claim the Luxembourg-based manufacturer isn\u2019t moving nearly fast enough to reduce its planet-warming pollution.<\/p>\n
For years, advocacy groups have urged ArcelorMittal to adopt lower-carbon methods of making iron and steel. When the company sponsored the 2024 Summer Olympics in Paris, members of the Fair Steel Coalition staged a series of public actions, including projecting the message<\/a> \u201cTrue Champions Quit Coal\u201d onto the side of an ArcelorMittal building in Luxembourg.<\/p>\n Now they\u2019re trying a new tactic: formally documenting their frustration.<\/p>\n Last week, the U.K.-based nonprofit Opportunity Green filed a climate-related complaint<\/a> through a process overseen by the Organisation for Economic Co-operation and Development \u2014 an influential group of 38 market-based democracies, including Luxembourg. The OECD sets voluntary guidelines for \u201cresponsible business conduct<\/a>\u201d for multinational enterprises within its sphere, and civil groups can raise concerns if they feel companies aren\u2019t adhering to those standards.<\/p>\n In its complaint, Opportunity Green claimed that ArcelorMittal lacks \u201ca robust, science-based climate strategy\u201d \u2014 which the OECD guidelines call for \u2014 and is \u201cfailing to take adequate action\u201d to reduce its emissions. ArcelorMittal, which generated $62.4 billion in revenue in 2024, produced more than 100 million metric tons of carbon dioxide equivalent that year, about the same amount as Belgium.<\/p>\n \u201cThe impact that [those emissions] are having on climate and people needs to be addressed,\u201d Kirsty Mitchell, the legal manager at Opportunity Green, told Canary Media.<\/p>\n The climate group said it sent its complaint to the Luxembourg National Contact Point, a nonjudicial body that handles OECD grievances against firms in the tiny European country. Mitchell said Opportunity Green hopes to foster a \u201ccooperative dialogue\u201d with ArcelorMittal and to reach a resolution that accelerates the steelmaker\u2019s efforts to clean up.<\/p>\n \u201cArcelorMittal, given its scale and influence, should really be driving more of that positive action, and that\u2019s what we\u2019re hoping to get out of this process,\u201d she said.<\/p>\n Steelmaking is responsible for roughly 9% of global greenhouse gas emissions, making it one of the world\u2019s most heavily emitting industries. Most of that pollution is the result of using coal-fueled blast furnaces that convert iron ore into iron. A separate furnace then turns the iron into steel for use in cars, ships, roads, bridges, furniture, appliances, and more.<\/p>\n ArcelorMittal operates 32 blast furnaces globally, and coal-based steelmaking accounts for about three-fourths of its annual production, according to the company.<\/p>\n The European steelmaker didn\u2019t directly address questions about the Opportunity Green complaint in an email to Canary Media. But ArcelorMittal said that it remains \u201ccommitted to decarbonizing our operations.\u201d<\/p>\n The company noted that between 2018 and 2024 it invested over $3 billion in efforts to reduce emissions, including by testing carbon-capture technology, installing wind and solar projects, and using more scrap metal in electric arc furnaces. Scrap-based steelmaking now accounts for a quarter of its total production, up from 19% in 2018. And ArcelorMittal\u2019s absolute emissions fell by almost 50% over the six-year period, though much of that drop was due to declining production and selling off steel and mining assets.<\/p>\n Still, ArcelorMittal acknowledged that \u201cprogress in decarbonizing has been slower than initially expected.\u201d <\/p>\n In 2021, the company outlined plans<\/a> to lead the steel industry in achieving net-zero carbon emissions by 2050. ArcelorMittal set a goal of reducing its emissions intensity \u2014 the amount of CO2<\/sub> released per ton of steel produced \u2014 by 25% globally by 2030 and by 35% for steel made in Europe. The company also pledged $10 billion in total investment to help it reach those targets, including funding for hydrogen-based steelmaking.<\/p>\n ArcelorMittal planned to use green hydrogen \u2014 made from renewable energy \u2014 to produce iron at a proposed facility in Gij\u00f3n, Spain. New electric arc furnaces, also powered by renewables, would then convert the clean iron and scrap metal into steel. While ArcelorMittal is moving forward with the electric furnaces, in 2024 it postponed<\/a> making a final investment decision on the iron-production plant, citing economic headwinds for green steel<\/a> and uncertainty around the European Union\u2019s climate and trade policies<\/a>.<\/p>\n \u201cOur original plans were premised on a favourable combination of policy, technology, clean energy, and market development that have not progressed as originally foreseen,\u201d ArcelorMittal said in the email. \u201cWe are not the only company \u2014 nor is steel the only industry \u2014 to be experiencing such challenges.\u201d<\/p>\n In Mitchell\u2019s view, ArcelorMittal shouldn\u2019t sit back and wait for all the political and economic stars to align before committing to more ambitious climate action today. Instead, she said, the company should press ahead and help drive broader demand for green hydrogen.<\/p>\n \u201cWe really need near-term, deep emissions reductions\u201d to limit global warming, Mitchell said. \u201cAnd we need clear direction and transformative decisions now that create certainty, and not just acting only when everything is perfectly suited.\u201d<\/p>\n The Luxembourg National Contact Point will likely review Opportunity Green\u2019s complaint within the next three months to assess the arguments and decide whether to move it forward, Mitchell said. If ArcelorMittal opts to participate in the voluntary process, it could take anywhere from six months to a few years for the groups to reach an agreement.<\/p>\n \u201cPublic scrutiny and independent oversight are essential to ensure companies like ArcelorMittal deliver credible climate action,\u201d Caroline Ashley, executive director of SteelWatch, said in a news release supporting the complaint. \u201cThe stakes are too high for further delay.\u201d<\/p>\n<\/div>\n