Automotive Tier 1 supplier Gestamp has signed an agreement with ArcelorMittal to start using XCarb green steel certificates for the production of automotive components, as part of a sustainability strategy aimed at achieving decarbonization in all of its operations. Gestamp products cover the areas of body-in-white, chassis and mechanisms.
With 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 decarbonization initiatives.
ArcelorMittal’s XCarb green steel certificates 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 lightweight solutions, but also by providing them with CO2 savings in their own supply chain.
XCarb green steel certificates are issued due to the CO2 savings realized by a number of ArcelorMittal decarbonization 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.
XCarb is designed to bring together all of ArcelorMittal’s reduced, low and zero-carbon products and steelmaking activities. As part of the XCarb brand, ArcelorMittal launched two offers for customers: XCarb green steel certificates for products made via the Blast Furnace route and XCarb® renewably produced for products made via the Electric Arc Furnace route using scrap.