On March 2, ResponsibleSteel and the Initiative for Responsible Mining Assurance (IRMA) published a comprehensive report titled “Driving just transitions in the mining & steel sectors: The role of voluntary sustainability standards”. The report explains how voluntary sustainability standards can help ensure that the transition in the mining and steel industries is fair and inclusive. It is the first report of its kind and was developed jointly by organizations from both sectors.
Decarbonizing industry is considered an urgent global priority. In particular, the mining and steel sectors are under increasing pressure to transform their processes. The upcoming transition is expected to bring far-reaching changes across the entire value chain – from raw material extraction to steel production. These developments could have major impacts on jobs, regional economies, and supply chains.
The transformation may also change employment structures. If traditional blast furnace sites close, this could lead to job losses. At the same time, demand for higher-grade iron ore is expected to rise, as well as the need for processed ore. New production methods based on electricity or hydrogen will also require significant investments in renewable energy and adjustments to transport and logistics systems.
Changes are already emerging in the mining sector as well. Demand for coal is declining, while the need for critical minerals and metals is increasing. Although these developments are essential for the transition to a low-carbon economy, they may also create new social or environmental challenges along supply chains. The report therefore emphasizes the importance of taking a holistic approach across the entire value chain.
Support for affected regions and workers
A key aspect of the transition is ensuring that workers and affected communities are not left behind. Trade unions, local communities, and indigenous rights organizations are therefore calling on policymakers and industry to ensure that the transition is not only rapid but also fair.
Voluntary sustainability standards can play an important role in this context. They can help raise awareness of the need for a socially just transition and provide guidance and frameworks that support companies in implementing it.
ResponsibleSteel CEO, Annie Heaton, commented, “Decarbonisation is one of the most pressing global issues we face today. But if we ignore its social impacts, we risk serious unintended consequences. With around six million people employed in steel and another 20 million in mining—plus millions more in supply chains and communities that depend on these industries—industry must work together with workers, communities and governments to consider how to plan the transition to benefit people as well as the planet.”
Purpose of the project
The report is the result of a joint project by ResponsibleSteel and IRMA. Its aim was to examine how voluntary sustainability standards can promote a socially responsible transition in energy-intensive industries such as mining and steel.
To achieve this, the project analyzed the expectations of different stakeholders, identified areas of alignment, and highlighted existing differences. Relevant stakeholders were also engaged to explore possible approaches, frameworks, and principles for a just transition. The project was funded by the ISEAL Innovations Fund, which is supported by the Swiss State Secretariat for Economic Affairs.
