Sustainable Supply Chains in Metals Result from Transparency

2025-01-09T01:14:23+00:00January 9th, 2025|News Blog|

Key Takeaways Transparency drives sustainability: Transparency builds trust with stakeholders, meets regulatory requirements, and drives sustainability in the metals industry. Leveraging advanced technology: The Greenway Calculator simplifies carbon footprint calculations by focusing on emissions intensity, offering actionable insights for optimizing supply chains. Collaboration for a greener future: NMC’s partnership with Greenway Steel demonstrates the value of collaboration in creating sustainable supply chains in metals.

In today’s global metals industry, sustainable supply chains in metals are no longer a lofty aspiration — they are a business imperative. Regulatory agencies, customers, and financial stakeholders are increasingly pressuring companies to reduce their carbon footprints and decarbonize supply chains. But how do organizations in metals and manufacturing, such as National Material Company (NMC) and Greenway Steel lead the way in this transformation? The answer to sustainable supply chain in metals and manufacturing result from transparency.

Transparency is the cornerstone of sustainable supply chains in metals, enabling companies to accurately track carbon emissions in alignment with the GHG (greenhouse gas) Protocol. This data-driven approach empowers businesses to meet their sustainability goals while ensuring accountability. By openly sharing information about raw material sources, production processes, and logistics, companies can reduce environmental impact and foster trust.

Addressing the Challenge: Transparency and Accountability

Calculating the carbon footprint of a global steel and aluminum supply chain is no small feat. The GHG Protocol requires companies to calculate direct and indirect emissions, known as scopes 1, 2, and 3. Scope 3 emissions, which encompass upstream raw material extraction, downstream transportation, and product use, pose the greatest challenge due to their complexity and breadth. Yet, identifying and managing these emissions is critical — not only to meet regulatory requirements but also to satisfy growing consumer demand for greener, more sustainable products.

As a recognized leader in steel processing and metal supply chain management, National Material Company (NMC) faced this challenge head-on. A key automotive customer sought to understand its entire supply chain’s carbon footprint. Given the global nature of the supply chain — with steel and aluminum parts sourced and processed worldwide — NMC collaborated with Greenway Steel to deliver a transparent, data-driven solution.

Case Study: NMC and Greenway Steel’s Collaborative Approach

NMC and Greenway Steel joined forces to tackle the challenge of calculating a complete value chain carbon footprint. By leveraging Greenway Steel’s proprietary Greenway Calculator and NMC’s expertise in steel processing, they systematically assessed the carbon intensity at each stage of the supply chain.

The first step involved calculating direct emissions, scopes 1 and 2, associated with the energy consumed during metal processing. By determining the energy intensity of their operations, NMC could accurately estimate the emissions generated per unit of steel processed. Using standard emission factors, they could then calculate the direct carbon footprint of their steel production.

Image Attribution: https://greenwaysteel.com/

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