“It’s not only about ESG. It’s also about sustainability driving profitability.”

ESG (environmental, social, and governance) has become a core business requirement for many companies in the metals industry. As governments tighten regulations, investors are shifting their focus to sustainability; with customers expecting production transparency, companies are called upon to reduce CO₂ emissions, energy usage, and water consumption, while at the same time meeting robust social governance and safety standards. The willingness of end customers to pay a premium for green steel products directly correlates with investments in green technologies and emission monitoring tools.

At SMS, we are advancing our own ESG journey by establishing an efficient ESG organization, guided by a challenging roadmap, robust processes, a focus on mindset, and external benchmarking. Drawing on our own experience, we are eager to support our customers on their journey. Our aim is to assist in creating the necessary conditions for our customers’ initiatives and sustainability goals, building a collaborative path towards sustainable growth that is both enduring and mutually beneficial.

The discussions around decarbonization and compliance with environmental regulations often evolve around large-scale greenfield projects. When developing entirely new facilities, the latest technologies and innovations are integrated from the outset, allowing plant layouts to be designed for maximum efficiency and minimal environmental and social impact. The Stegra project in northern Sweden is a compelling example, where – based on the use of hydrogen and SMS technology – carbon emissions will be reduced by up to 95% compared to conventional plants. 

Despite these visionary projects, it is clear that the majority of savings must come from existing facilities. In every plant, there are numerous opportunities to reduce emissions as well as the environmental and social footprint. From a sustainability perspective, in particular, utilizing available facilities is a sound approach, as these do not require large-scale soil sealing and benefit from the infrastructure and logistics already in place. With our green services approach, we aim to help customers unlock these potentials to simultaneously meet ESG requirements and enhance their own profitability. These services address emerging issues, optimize operations, and ensure ongoing regulatory compliance.

We are establishing green services as a vital component of our service approach. The goal is to engage with our customers over the long term and encourage them to identify opportunities for optimization in terms of sustainability and cost-efficiency. Green services encompass regular sustainability audits, process optimization, and support for compliance with evolving regulations. As Frank Jansen, CSxO of Region Europe, states, “The starting point for our growth-based solutions approach is a sustainability and performance audit that identifies the potential for sustainability improvements within each value creation step. When customers realize that ESG can enhance their profitability, it truly transforms the conversation. With our green services, we offer more than just compliance – we help them build a sustainable and profitable future.”

The overarching principle of our green services is transparency. Improvement is impossible without measurement. Many of our customers require assistance in analyzing their processes and understanding their nvironmental footprint in real time. Josephin Elsemann, Senior Sales Manager Sustainability Partnerships and Solutions, Region Europe, notes,  “Our advantage is our deep expertise across the entire metals steel production lifecycle. We’re not just a tech provider – our involvement spans research and development, plant engineering, metallurgy, and digitalization. Green services exemplify this, drawing on our extensive technical know-how and applying advanced digital tools to provide real-time insights.”

Our Viridis solution plays a pivotal role in enabling green services. By integrating with existing customer systems, Viridis provides real-time tracking of key ESG metrics such as carbon emissions, energy use, and water consumption This transparency allows customers to make immediate improvements to meet sustainability targets while enhancing production efficiency. As Frank Jansen highlights, “The speed of implementation 
is one of Viridis’ strengths. Viridis uses data from existing customer systems, which means we don’t need to start from scratch. Once it’s operational, it provides real-time tracking and sustainability reports that empower our customers to make immediate improvements.” This approach identifies growth areas on a customer-specific basis and ensures a need-based solutions approach. Ideally, sustainability audits are conducted regularly to continuously optimize customers’ operations in terms of sustainability.