[비즈한국] SteelWatch, a global non-profit civil society organization that monitors the decarbonization of the steel industry and climate change response, has announced the results of its '2026 Steel Company Scorecard,' which evaluated 18 major global steel corporations. In this assessment, no company scored over 50 out of 100 points, revealing that the global steel industry's readiness for decarbonization is at a critically low level. In particular, South Korea's two largest steelmakers, POSCO and Hyundai Steel004020, remained in the lowest-ranking group.
The Steel Company Scorecard published by SteelWatch is an indicator introduced to evaluate how prepared the steel industry, which accounts for approximately 10% of global greenhouse gas emissions, is for a low-carbon production system. The first assessment examined the sustainability disclosures and other data of 18 major steel companies headquartered in 11 countries worldwide, scoring their climate response performance and level of preparation for decarbonization transition.
The evaluation criteria consisted of 21 indicators across five categories to verify whether companies have established business models aligned with a carbon-neutral future. The specific weightings were assigned as follows: Phase-out of coal (25%), Expansion of green transition (25%), Social and environmental responsibility (20%), Climate response performance (15%), and Targets and transparency (15%). Key evaluation criteria included plans for closing coal-based processes—where carbon emissions are most concentrated in steel production—and the adoption of eco-friendly technologies.
POSCO ranked 15th with a score of 21.9 out of 100. Its progress, such as the development of hydrogen-based steelmaking (Hyrex) technology, was evaluated positively. However, it currently operates 8 large-scale coal-based blast furnaces in Korea without electric arc furnaces, and no plans for closing these furnaces have been announced. Its renewable energy usage was reported as zero, raising questions about its transition plans and commitment. Furthermore, its withdrawal from 'ResponsibleSteel,' a global certification system, in 2024 dealt a significant blow to its external verification and transparency indicators.
Hyundai Steel, which ranked 16th with 21.2 points, is in a similar situation. Hyundai Steel was evaluated positively for its lower-than-average greenhouse gas emission intensity due to a high proportion of scrap metal usage, and for strengthening overseas investments, such as the recently announced plan to build a Direct Reduced Iron-Electric Arc Furnace (DRI-EAF) plant in Louisiana, USA. However, the company received a failing grade in data transparency indicators, such as not disclosing 'coal consumption,' which is core data for steel transition. Like POSCO, its renewable energy usage is zero, and it lacks a roadmap for closing existing blast furnaces.
The fundamental reason for the low scores of Korean steelmakers is their 'dependence on coal.' Approximately 90% of direct carbon emissions in the steel industry originate from coal-based blast furnace processes. Nevertheless, POSCO and Hyundai Steel continue to invest in 'refurbishment,' spending astronomical costs to extend the life of aging blast furnaces. Notably, POSCO is currently pursuing the refurbishment of the No. 2 blast furnace at the Gwangyang Steelworks. Critics argue that this act perpetuates carbon emissions for decades to come and runs directly counter to the global decarbonization trend.
Both companies also scored near zero on indicators for the production and procurement of 'green steel,' which produces less than 350kgCO₂e of carbon emissions per ton. This stands in stark contrast to industry leaders like Sweden's SSAB and Germany's thyssenkrupp, which scored 46.2 and 41.9 points respectively, and are actively detailing their blast furnace closure plans and green steel roadmaps.
While both POSCO and Hyundai Steel have declared 2050 carbon neutrality goals, neither has had their climate targets validated by the Science Based Targets initiative (SBTi). As a result, both companies scored 0 (out of 7 points) on the 'SBTi-verified greenhouse gas reduction target' indicator within the 'Targets and Transparency' category of this scorecard.
The lack of SBTi validation means there is a deficiency in independent external verification of the companies' transition pathways, leading to evaluations that their specific methods and transition routes for achieving carbon neutrality are opaque.
Kwon Young-min, a researcher at Solutions for Our Climate (SFOC) who participated in the report, emphasized, "It is not much different from asking for support to keep coal facilities running when companies demand government investment in hydrogen-based steelmaking while pouring hundreds of billions of won into extending the life of blast furnaces," adding, "They should not rely solely on future technologies but must also make efforts that are possible today."