Crude Steel CO₂ Emissions Intensity

TARGET REDUCTIONS

Carpenter Technology has set the goal of reducing intensity of Scope 1 & 2 CO₂ emissions per ton of material by 30% by 2035. We are using 2019 CO₂ emissions as our baseline year, as it was the last full year of operation before the COVID-19 pandemic.

We plan to achieve this through four main activities:

1. Recycle waste heat from our furnaces to improve efficiency of furnace operations.

2. Convert natural gas-fueled boilers and furnaces to electric.

3. Increase the share of carbon-free grid-electricity, using renewable and nuclear-based energy.

4. Improve our operational efficiencies.

In addition, we will pursue other initiatives that will help us further drive down our CO₂ emissions.

Finally, we aspire to achieve net-zero carbon emissions by 2050 for Scope 1 & 2 emissions. Meeting this goal will require technological advancements — such as carbon capture systems and the use of hydrogen in specialty steels — and customer partnerships before becoming commercially feasible. We are committed to evaluating and investing in new technologies that will move us towards a net-zero future.

APPROACH TO SETTING TARGETS

To set these targets, we conducted a detailed assessment of our operations, including onsite audits and an analysis of our historical data. We identified a set of opportunities to reduce CO₂ emissions, then prioritized those initiatives based on the greatest impact.

We also reviewed the Science Based Targets initiative (SBTi) guidance for the steel industry. SBTi’s sector decarbonization approach for the steel industry is based on the production of crude steel. Using the SBTi approach — measuring our emissions intensity only for manufacturing crude steel — we are below the target levels for a “well below 2°C” scenario. However, we continue to process material beyond the initial melting step associated with crude steel; our targets are for the entirety of our operations.

Emerging Technology Center in Athens, Alabama