Identifying the social hotspots of German steelmaking and its value chain

Abstract

Steel production is highly material and energy intensive. As the industry sources large amounts of raw materials globally, the need to assess the sustainability dimensions of the steelmaking process and its value chain is increasing. This paper sets out to investigate the social dimension, by identifying social hotspots tied to the value chain and production of primary steel in Germany. To achieve this, a literature review is conducted, and the Social Life Cycle Assessment (S-LCA) methodology is applied in the form of a social hotspot assessment for the production of 1 t of hot rolled steel coil. Import data for the German steel industry are combined with social data from the social hotspot database, to gain an comprehensive overview of social risks and hotspots tied to the value chain and production of steel. The literature review finds the application of S-LCA in the steel industry to be low overall, with great variety in impact subcategories and indicators assessed. The social hotspot assessment shows a high number of social risks tied to the value chain of the German steel industry. These relate primarily to worker health and safety, delocalization and migration, access to immaterial resources, forced labour, and social benefits/social security. In particular, the extractive industries of iron ore and coal are established as social hotspots. Based on the findings of the literature review and the social hotspot assessment, it is recommended that the following impact subcategories be considered in a full scale S-LCA study on steelmaking including the value chain: Worker health and safety, freedom of association and collective bargaining, delocalization and migration, and forced labour. Furthermore, it is recommended to prioritize the collection of primary data on 16 indicators, that are identified as high risk or very high risk across multiple assessed countries and sectors.