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Abu Dhabi, United Arab Emirates: Emirates Steel Arkan (ESA) wrapped up 2023 with a true demonstration of environmental stewardship that culminated in its significant participation at COP28, the globe’s largest yearly gathering dedicated to tackling the phenomena of climate change. Under the theme of “Sustainable Decisions, Sustainable Future”, the Group reaffirmed its commitment to supporting the world in decarbonizing hard-to-abate sectors, adopting transformative practices and technologies across its operations, and harnessing the power of partnerships and collaborations.
From forging strategic alliances, to actively partaking in insightful panel discussions and showcasing pioneering low-carbon solutions, Emirates Steel Arkan was at the forefront of the global climate action arena to achieve real change and realize tangible reduction in emissions. This not only reflected the vision of the UAE and the COP28 Presidency, but also aligned with the UAE’s strategic initiative to achieve climate neutrality by 2050.
Moreover, Emirates Steel Arkan emphasized its dedication to empowering the youth for impactful climate action, echoing the UAE’s leadership vision to foster youth engagement in addressing global challenges. The Group also forged partnerships that reinforced its three-year digitization strategy aiming to modernize business models with digital capabilities, and reduce the Group’s CO2 footprint by employing cost-effective, material-efficient, and energy-saving technologies.
These initiatives, and more, fall directly in line with the Group’s decarbonization roadmap geared towards realizing tangible emission reductions and spearheading sustainable practices across the industry spectrum. The roadmap, propelled by innovative approaches such as carbon capture, green hydrogen integration, clean energy adoption, optimized scrap metal utilization, and enhanced energy efficiency, underscores ESA’s goal to a 40% reduction in carbon emissions by 2030, with the ultimate goal of net-zero by 2050. The Group has already achieved significant reductions amounting to 35% in emissions intensity in 2022 by sourcing 80% of clean electricity and utilizing carbon capture and scrap metal.
Eng. Saeed Ghumran Al Remeithi, Group CEO of Emirates Steel Arkan, said, “As the world agreed to move away from fossil fuels at COP28, Emirates Steel Arkan will continue to play a pivotal role in safeguarding the planet for future generations. With sustainability deeply ingrained in every facet of our operations, policies, partnerships, and projects, the Group’s goal remains to achieve a positive impact on the environment and pave the way for a sustainable future for all.”
Forging pathways to sustainability
Emirates Steel Arkan’s engagements at COP28 served as tangible commitments to nurturing collaborative endeavors aimed at advancing decarbonization and sustainability. The Group’s diverse announcements spanned a spectrum of areas including carbon markets, green hydrogen, and digitization tools – among others – further underscoring its ongoing efforts to fostering a sustainable ecosystem.
In this context, ESA has taken a pioneering step in partnership with Masdar, embarking on the MENA region’s first green hydrogen-based steel pilot project utilizing Electrolyzers to help produce green steel. Located in the Group’s production facilities at the Industrial City of Abu Dhabi, the project is currently in the installation phase and is expected to be commissioned in early 2024, demonstrating the use of green hydrogen - instead of natural gas - to extract iron from iron ore, a key step in steelmaking.
The Group also inked a Memorandum of Understanding with First Abu Dhabi Bank (FAB), setting the stage for a strategic collaboration on commodity trading, carbon credits and sustainable investments. This partnership extends beyond the conventional to include collaboration on Emirates Steel Arkan projects, seeking effective strategies for hedging and trading carbon credits while enhancing capabilities in sustainability-linked and green financing.
As part of its digitization strategy, ESA announced a groundbreaking collaboration with IBM to leverage the advanced capabilities of IBM Envizi ESG Suite software, a move poised to revolutionize sustainability reporting by harnessing advanced data utilization and insights. Simultaneously, an MoU with e& positions ESA to leverage the 5G network, state-of-the-art digital security measures and operational technology.
The Group’s efforts also focused on its building materials business, unveiling a strategic collaboration with renowned climate consulting firm A³&Co.® to implement a cement specific decarbonization roadmap, with a primary focus on reducing carbon emissions and lowering costs. The multi-phase initiative includes Decarbonization Baselining, Decarbonization Scenario Building & Roadmap, CBAM Compliance, and advisory support for SBTi Carbon Footprint Certification.
Emirates Steel Arkan also entered into a strategic collaboration with Ohmium International (Ohmium) and Khalifa University of Science and Technology that focuses on hydrogen research and development, accelerating the adoption of green hydrogen to catalyze the low-carbon transformation of the steel sector., further solidifying its dedication to the MoIAT’s ‘Make it in the Emirates’ initiative.
Sharing expertise and best practices
Emirates Steel Arkan went beyond active participation at COP28; the Group not only shared insights in panel discussions but also seized the opportunity to exemplify thought leadership through action, further positioning itself as a proactive industry leader shaping a more sustainable and resilient future. Beyond merely being speakers, ESA strategically aligned its contributions with tangible initiatives and showcased its commitment to sustainability by sharing real-world experiences, innovative strategies, and best practices during the panel discussions.
The discussions covered a broad range of vital topics, from decarbonizing hard-to-abate sectors and achieving net-zero for UAE industries, to fostering cross-industry collaboration and sustainability in the industry. ESA’s active involvement extended to exploring the path to green steel and evaluating excellence in the industrial technology transformation index. Additionally, panels dedicated to youth and women provided meaningful platforms for discussions, addressing subjects like empowering women in the steel industry and leading a green building material.
| For Media enquiries, please contact: Mohammad Daggamseh Manager of Media and Communications | For Investor enquiries, please contact: Gleb Diachkov-Gertcev Director of Investor Relations Email: gleb.dg@emiratessteel.com |
About Emirates Steel Arkan (ESA)
Emirates Steel Arkan (the Group) is a public joint stock company (ADX: EMSTEEL) and the UAE’s largest steel and building materials manufacturer. The Group leverages cutting-edge technologies to supply both the local market and more than 70 international markets with high-quality finished products, creating a one-stop shop for the manufacturing and construction sectors.
Emirates Steel Arkan is committed to contributing to the UAE's industrial strategy ‘Operation 300 billion’ by delivering market-leading products to support local industries, creating job opportunities for UAE Nationals, and enhancing its sustainable practices. The Group is also among the leading decarbonised steel manufacturers in the world and is recognised for its world-class safety performance.
The Group’s steel and building materials have been used in some of the UAE’s most iconic construction projects, including the Burj Khalifa, Emirates Palace, Etihad Towers, Yas Island, and more.
Emirates Steel Arkan is majority owned by ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.
For more information, please visit our website: www.emiratessteelarkan.com
