We are launching a new brand, XCarb™ – to bring together all our initiatives which fall under our ongoing programme of steelmaking innovation targeting carbon-neutral steel by 2050 under a single global umbrella brand.
The XCarb™ brand is launched in response to customer interest in buying lower carbon steel. XCarb™ will allow us to send a clearer signal of our intent to our customers, inviting them to support us on our collective journey to zero carbon by buying our lower emissions products that enable them to reduce their own carbon impact. And it also highlights our direction of travel as we seek to move a higher portion of our production under the XCarb™ brand.
The XCarb™ brand is very much a global brand and has been discussed in depth with the CEOs of each segment. I appreciate that each segment is at a different stage of its decarbonisation journey but this brand will be available for you to use as and when you are ready. A technical team headed by Brad Davey will be responsible for ensuring products meet the XCarb™ criteria of truly being on the road to carbon neutral steel.
The launch today focuses on the first two XCarb™ ‘products’ ready for market – the XCarb™ green steel certificates and the XCarb™ recycled and renewably produced. The XCarb™ green steel certificates represent real savings in our CO2 emissions through targeted investment that can be attached to steel shipments. XCarb™ recycled and renewably produced describes steel made via the EAF route that plugs into renewable electricity, either directly or through verified certificates, with as low a carbon footprint as 300kg/tonne.
Furthermore, we are launching a XCarb™ innovation fund to invest in companies developing breakthrough technologies that will accelerate the transition to net zero steelmaking. This is a recognition on our part that we will be able to achieve our goals faster with further innovative breakthroughs. We are committing $100 million a year towards this fund.
Sustainable development is one of our four strategic priorities and decarbonising our footprint is arguably our biggest sustainable development challenge but also the biggest sustainable development opportunity. We know we have a big challenge to decarbonise but steel already has a lower carbon footprint than competing materials. Furthermore, no other material offers steel’s circular credentials.
That’s why we are confident steel will remain a vital material in the application of new industrial technologies and the transition of the energy, transport and packaging industries, and the future construction sector. Steel is central to the further development of the renewable energy sector, while our Steligence® initiative demonstrates the sustainable benefits of using steel in construction.
No other company is as well placed to play a leadership role in this transition as ArcelorMittal. No one else has the combination of industrial scale, geographic reach, technology prowess and innovative capability. We must make the most of this opportunity.
The focus is now moving from making commitments to taking concrete actions. The initiatives we have launched today are a progressive step in this direction.
Best regards, Aditya Mittal
