Structuring and Measuring Environmental Sustainability in the Steel Sector: A Single Case Study

Abstract

Climate change policies are affecting the economic and structural viability of European Union (EU) industries, particularly in the energy-intensive sector, with very challenging goals of EU Agenda 2030 in terms of CO2 reductions and energy efficiency. This ecological transition can be supported by the employment of innovative technologies, enabling production process efficiency, resource optimization and supply-chain integration. Nevertheless, it is still empirically unclear how energy-intensive industries will complete their ecological transition successfully, especially in terms of achieving environmental sustainability practices within the organization and in the supply-chain without endangering their economic availability. Moreover, the assessment of environmental sustainability performance is still not a unique standard framework, causing loss of transparency and traceability towards internal and external stakeholders, such as managers, investors and business partners. With 20 qualitative interviews of customers and experts of a company leader in the steel construction sector in Italy and Germany, the Feralpi Group, this paper explores the implications of strategic environmental sustainability indicators, which can transparently assess company performance. Preliminary results underline how shared standardized indicators are fundamental for a tighter supply-chain integration, giving impulse and significance to the steel producers’ efforts for environmental sustainability excellence. Future research should further investigate the connection between environmental sustainability strategies and performance indicators for a more integrated sustainability framework.

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