GMH has adapted an algorithm to its own requirements, which is used to calculate the Product Carbon Footprint (PCF). The algorithm considers all CO2 emissions from the raw materials used to the provision of the product at the GMH factory gate in great detail in accordance with the system limits ("Cradle to Gate"). The PCF calculation method has now been validated by TÜV SÜD and is now used for more than a thousand possible steel variants from Georgsmarienhütte GmbH.
Algorithm for calculating the carbon footprint
The GMH Group sees itself as one of the pioneers in the production of CO2-reduced steel in Germany and wants to continue to act as a driver of decarbonization in the steel industry. The precise and above all comprehensible calculation of the PCF plays a key role here. Georgsmarienhütte GmbH is now making this information available to customers who want to demonstrably improve their CO2 balance for more than a thousand steel variations. GMH has further developed the algorithm for this complex calculation according to its own requirements. The underlying data analysis could only be carried out because GMH had already started extensively digitizing its processes years ago. The calculation methodology includes the requirements of the ISO 14067 and 14044 standards and the specifications of the Greenhouse Gas Protocol (GHG) for accounting for greenhouse gas emissions and the associated reporting for companies.
Validation by TÜV SÜD
The conformity of the PCF calculation methodology used by GMH was confirmed by TÜV SÜD through its validation with the normative specifications. In this way, the CO2 footprint of the steel variants manufactured at Georgsmarienhütte GmbH can be shown transparently and precisely during all production steps in accordance with the "Cradle to Gate" system boundaries. This consideration begins with the raw materials used and ends with the provision of the finished products at the GMH factory gate.
“We are very proud to have received this validation from TÜV SÜD. As a pioneer in steel production with electric arc furnaces and a reliable partner for our customers, we can now offer what is probably the most accurate PCF calculation on the market,” explains Frank Düssler, Director Transformation & Regulation at GMH.
To be able to prove the sustainability of the supply chains, GMH's validated PCF calculation method shows in detail ("granularity") which PCF the respective GMH products have. The level of detail for each product should be emphasized here because average values and statistical data are often used for the PCF calculations.
“We are pleased that we were able to support the GMH Group in terms of a transparent and trust-building decarbonization strategy. We have validated the data collection and the PCF calculation methodology, thereby confirming compliance with the normative ISO and GHG Protocol requirements,” says Andreas Schubert, Manager Green Production & Decarbonization at TÜV SÜD.
Precise PCF calculations
The precise PCF calculation can now be applied to every single product from the GMH portfolio and every single production batch. It thus enables classification into different steel categories.
“We already use 30 percent green electricity and are testing biogenic coal instead of fossil coal. In this way, every customer can decide for themselves which steel variant best meets their sustainability goals, so to speak, 'green, greener, or greenest'. We will expand this portfolio continuously and at full speed over the next few years,” says Dr. Alexander Becker, CEO of the GMH Group.
In the coming years, the verification and validation of the sustainability statements will be extended to other companies in the GMH Group. By 2030, GMH Holding has set itself the goal of using around 75 percent green energy and becoming completely greenhouse gas neutral by 2039.
