How Sustainable Is Sustainable Enough?

Sustainability is no longer a trend – it has become a core requirement of modern corporate governance. Customers, investors, regulators, and employees alike increasingly demand transparency, concrete actions, and measurable progress. The question is no longer if sustainability should be implemented, but how – and above all, how it can be credibly demonstrated.

For industrial companies, especially in sectors such as steel or chemicals, this represents a significant challenge. Ambitious environmental goals meet complex supply chains, stringent regulations, and technological dependencies that cannot be changed overnight. At the same time, pressure is mounting – both externally and internally.

Sustainability certifications and ratings are playing an increasingly important role. They aim to create comparability, demonstrate progress, and build trust among stakeholders. The market is saturated with certificates, standards, and ratings – from ISO norms and EMAS to scoring systems like EcoVadis and CDP, or labels like FSC and LESS. However, the diversity of these systems, their differing criteria, and the ever-growing data demands are pushing many companies to their limits.

The wide range of available sustainability certifications allows companies to align their efforts with individual goals. But this diversity also brings significant complexity:

• Which certifications apply to which industries?
• What regulations must be met in specific markets?
• How do national and international requirements differ?

Globally active companies in particular face the challenge of fulfilling multiple certifications simultaneously – often with varying evaluation criteria and reporting standards.

Despite this, third-party ratings have become a vital component of modern sustainability strategies. They enhance credibility, enable benchmarking, and simplify communication with customers, banks, and regulatory bodies. At Swiss Steel Group, three tools have proven especially effective:

CDP – Climate Data Disclosure for Greater Transparency

The Carbon Disclosure Project (CDP) is a global non-profit that encourages organizations to disclose environmental data. Evaluations are based on emissions transparency, climate risk assessments, target-setting, and concrete mitigation actions. An A rating from CDP signals comprehensive climate strategies and high data quality. CDP is particularly relevant for institutional investors and is gaining traction in industrial procurement.

EcoVadis – Sustainability Across the Supply Chain

EcoVadis provides sustainability ratings based on four key areas: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement. Companies receive a score and are awarded a medal (Bronze, Silver, Gold, Platinum), enabling comparability within their industry. Increasingly, industrial companies are requiring their suppliers to undergo EcoVadis evaluations.

SBTi – Science-Based Climate Targets

The Science Based Targets initiative (SBTi) aims to establish scientifically grounded climate targets. Companies with validated targets commit to reducing emissions in line with the 1.5°C goal of the Paris Agreement. Though rigorous, SBTi validation adds credibility and structure to decarbonization strategies. Since 2024, SBTi has offered industry-specific standards for the steel sector.

For the steel industry, these tools represent both opportunities and challenges. Manufacturers already using low-emission production methods – such as electric arc furnace (EAF) technology using recycled materials – can demonstrate progress more quickly. However, some subsidies and assessment systems are still geared toward traditional blast furnace operations, which may place EAF producers at a structural disadvantage.

In addition, sustainability teams must not only deliver operational results but also document them in standardized formats. The risk: bureaucratic overhead may grow faster than actual transformation.

What’s needed are practical standards, clear requirements, and flexible data systems capable of adapting to evolving reporting formats – alongside companies willing to walk this demanding path.

Note: The following interview was originally published in German.

In 2024, Swiss Steel Group made major strides in sustainability. We became the first steelmaker to have sector-specific climate targets validated by the SBTi. We also received an A rating from CDP and were awarded a Gold Medal by EcoVadis in 2025. What do these achievements mean for the company and for you personally?

These recognitions are a great acknowledgment for Swiss Steel Group and everyone involved. Participating in these ratings requires significant effort and coordination across departments. The fact that our progress is now reflected in independent assessments validates our sustainable development. Previously, individual sites were evaluated separately, which often led to duplicated efforts. Now, we have a group-wide rating that's strong enough to eliminate the need for individual site participation – increasing our efficiency and reducing redundancy.

Have these certifications improved the visibility of our sustainability strategy?

Absolutely. They demonstrate – internally and externally – that we set ambitious targets and can make progress even in challenging economic times. They also strengthen our credibility in Green Steel, whether communicating with customers or encouraging improvements among suppliers.

Can you briefly explain what EcoVadis and CDP evaluate and why we chose these certifications?

EcoVadis assesses companies based on sustainability dimensions including Environment, Sustainable Procurement, Labor & Human Rights, and Ethics. CDP focuses on climate change and evaluates how effectively companies manage their climate strategies, including emission reductions, climate risks, and reporting transparency. CDP is especially important for investors and banks, while EcoVadis is critical for our customers throughout the supply chain.

Are these ratings requested by customers?

Yes, both EcoVadis and CDP are not only voluntary – they’re increasingly required by customers, banks, and investors. Many clients demand a minimum EcoVadis score and rely on CDP to review detailed emissions data.

How do we compare to our competitors?

Among steel producers, only four have an A rating from CDP – and we’re one of them. In EcoVadis, we rank among the top 5% of all evaluated companies worldwide, and even among the top 2% in our industry. We’ve improved year over year, but every step forward requires more effort. That’s why it’s crucial to focus on the requirements that our customers actually expect from us.

Swiss Steel Group was the first steel company to validate its climate targets through SBTi. Why is this so significant?

SBTi validation adds credibility to our climate goals, gives our actions direction, and strengthens our case for funding. We were also involved in shaping the sector-specific SBTi standards via industry associations, ensuring they are practical and applicable. This pioneering role not only strengthens our position but helps guide the entire sector toward science-based climate strategies.

You're rolling out the Product Carbon Footprint (PCF) tool. What are its advantages?

The PCF tool, now being implemented at Steeltec in Emmenbrücke and soon at DEW in Siegen, allows precise calculation of the carbon footprint of each product. It helps us meet customer expectations and provides transparency around production emissions. With numerous accounting standards emerging, ensuring traceability from source to end user is key – a major opportunity for our Green Steel. A flexible data system is essential to respond quickly to these evolving standards.

Sustainability is a team effort. Which teams contributed most to these achievements?

Many departments are involved – Environment, Health & Safety, Procurement, Compliance, and HR, to name a few. Sustainability can’t be handled by one team alone; it must be embedded across the organization.

What does the future of sustainability in steel look like, and how is Swiss Steel Group positioning itself?

The steel industry faces significant challenges. Integrated producers reliant on coal and iron ore will need major investments to shift toward direct reduction technologies. Our approach is fundamentally different. By using electric arc furnace (EAF) technology, we’re already employing the low-emission production method of the future. While others are planning transformations over the next 10 to 15 years, we’re already operating sustainably – though we face disadvantages, as many subsidies are designed for blast furnace conversion projects. Still, we benefit from not having to rely on technologies with uncertain future viability.

How central is sustainability to Swiss Steel Group’s corporate strategy?

Sustainability is at the heart of our strategy. Our top scores in EcoVadis and CDP, along with SBTi certification, clearly demonstrate our progress. The biggest challenge is making sustainability economically viable in the long term. It’s not just about scoring well in ratings, but about implementing measures that create both economic and environmental value.

Thank you, Stefan!