Gestamp signs agreement with ArcelorMittal to use XCarb^® green steel certificates in its industrial activity

Gestamp becomes the first Tier 1 supplier in the automotive sector to sign an agreement to use and market XCarb^® green steel certificates

Madrid, October 20^th 2021 - Gestamp has signed an agreement with ArcelorMittal to start using XCarb^® green steel certificates for the production of automotive components, as part of an ambitious sustainability strategy aimed at achieving decarbonization in all of its operations. Thanks to this initiative, Gestamp becomes the first Tier 1 supplier in the automotive sector to offer its customers, the world's leading vehicle manufacturers, products with a lower carbon footprint resulting from project-based CO₂ savings achieved through ArcelorMittal’s decarbonisation initiatives.

With this agreement, the company has purchased ArcelorMittal’s  XCarb^® green steel certificates, which allow customers to purchase CO₂ emissions savings made during the steelmaking process and report the savings as a reduction in Scope 3 emissions (indirect emissions from purchased goods).  

This allows Gestamp to reduce its CO₂ impact by contributing towards the decarbonization of its supply chain aligned with the Group's sustainability strategy and to help its customers not only by offering light weight solutions, but also by providing them with CO₂ savings in their own supply chain.

XCarb^® green steel certificates are issued thanks to the CO₂ savings realized by a number of ArcelorMittal decarbonisation initiatives, including the capturing of hydrogen-rich waste gas and re-injecting it into the blast furnace. The CO₂ savings, which are aggregated and independently verified, are calculated in accordance with the GHG Protocol for Project Accounting and are assured by DNV.

Gestamp's commitment to reducing CO₂ emissions

With this initiative, Gestamp reinforces its commitment to the decarbonisation of its operations, which it has already pioneered in the sector by setting ambitious decarbonisation targets, and becomes the first Tier 1 supplier in the automotive sector to use XCarb^® green steel certificates with vehicle manufacturers and to market the XCarb^® green steel certificate. Gestamp seeks at all times to make its industrial activity as sustainable and environmentally friendly as possible, so it has set clear commitments and targets for the reduction of emissions from its activity and its supply chain by 2030, in accordance with scientific criteria, which have been approved by the Science Based Targets Initiative (SBTI).

Javier Imaz, Procurement and CAPEX Corporate Director at Gestamp: "At Gestamp we have an ambitious plan to reduce the carbon footprint of our operations and thus help our customers to be able to adjust to the needs of reducing emissions thanks to our products".

Paul Brettnacher, CMO Automotive and Packaging at ArcelorMittal, said: "We launched our XCarb^® green steel certificates with the intention of setting a new benchmark for the industry, and to offer our customers a verified way to benefit from the CO₂ savings that we are making as part of our roadmap to net-zero steelmaking. We are therefore delighted to be working with Gestamp, as we ramp up our CO₂ emissions reduction projects and generate more emissions savings that can be passed on to our customers.“

Cristina de Lucas, ArcelorMittal Automotive Sales Director, said: “With XCarb^® green steel certificates, the full ArcelorMittal technical offer can be delivered, meaning that all design options are available to our development engineers, while also reducing customers’ Scope 3 emissions. Our XCarb^® green steel certificates are creating many new opportunities to support our customers in meeting their decarbonization targets.“