Tenaris has announced a medium-term plan to reduce its CO2 emissions intensity per ton of steel by 30% compared to its level in 2018 by 2030, considering scope 1, 2 and 3 emissions. Scope 1 and 2 include both direct and indirect emissions related to electricity consumption in Tenaris’s operations while upstream scope 3 emissions include those related to the raw materials used.
The company will achieve this target by using a higher proportion of recycled steel scrap in the metallic mix, carrying out investments to increase energy efficiency and the use of renewable energy for part of its energy requirements.
"We will give additional transparency and evaluation to this program, which will be followed on a quarterly basis in our Board. This will become an ever more important part of our agenda in the coming years,” said Paolo Rocca, Tenaris Chairman & CEO, during the annual results conference call.
This target forms part of a broader, long-term objective of reaching carbon neutrality. This will depend on the development of emerging technologies and market and regulatory conditions, including carbon pricing and customer support. To further this objective, Tenaris will actively pursue the development of technologies involving the use of hydrogen and carbon capture, with partners, including our affiliated company Tenova, and participate in pilot projects such as the one we recently announced to use hydrogen in our Dalmine steel shop in Italy.
To accelerate the fulfilment of these targets, Tenaris will implement the use of an internal carbon price at a minimum of $80/ton for evaluating investments and more generally in our operations.
Germán Curá, Vice Chairman of the Tenaris Board of Directors, will oversee the development and implementation of the Company’s strategy for climate change going forward.
In addition to the improvements to its operations, Tenaris also has a product portfolio for low carbon energy, including products for hydrogen storage and transportation; geothermal applications; renewables including wind and solar plus CO2 abatement.