Why is this important to us?
A future of nine billion people enjoying high-quality lives will need products that use natural resources in ways that are ultra-efficient and help create what many now call the circular economy. The context is very different in developed and developing markets, but the answer is the same: innovation. To create and sustain quality lives we need to design more energy-efficient products using materials that can be reused and recycled – and which can be produced using fewer resources and without negative consequences for the environment or society.
The commercial imperative
What kind of challenges do we face?
Megatrends such as the low-carbon economy, electric vehicles and artificial intelligence are radically changing the way manufacturers think about their next product design. These challenges mean that their choice of materials are no longer based on solely on their cost, quality and suitability - there are other factors at play now. The design of cars, washing machines and food packaging need to be assessed in terms of their full lifecycle impacts, which makes it key to consider things like the strength, durability and recyclability of materials. The focus is shifting from the carbon emitted during a product’s use to emissions during its production as well. Years of strong lifecycle assessment work and successful innovation have put our steel at an advantage here, and we will need these more than ever to stay on the front foot.
What do we need to do?
We need to innovate to ensure that steel is continually anticipating and responding to the next challenge in sustainable lifestyles. We need to work with our customers to rethink the design of their products to promote reuse, to be at the forefront of new developments such as electric vehicles and artificial intelligence in order to ensure the unique properties of steel can be exploited to a maximum. We also need to provide the evidence to prove - through lifecycle analysis - where steel’s environmental footprint is better than other materials, and use this capability to demonstrate to the manufacturers– and society in general – the important role of innovative steel over the decades to come.
What is the potential to create value?
Steel is strong, safe, flexible and easily recyclable, which means it can be a big part of the answer to today’s environmental and social challenges. A tonne of steel also produces less CO2 than either aluminium, magnesium or carbon fibre over its whole lifetime, thanks to its infinite recyclability. The high-strength steels we’ve developed to make cars lighter are a good example of the value we can create. Working with customers in packaging and white goods industries in similar ways, we can challenge their assumptions about packaging materials, and ensure that we continually innovate to meet and exceed their sustainability expectations. Though the challenges are clear, the opportunities are also exciting.