Cleveland-Cliffs Announces New Greenhouse Gas Emissions Reduction Goals
May 24 2024 - 7:00AM
Business Wire
Cleveland-Cliffs Inc. (NYSE: CLF) announced today that it
has set new greenhouse gas (GHG) emissions reduction targets. The
Company’s prior commitment to reduce absolute Scope 1 (direct) and
Scope 2 (indirect) GHG emissions by 25% by 2030, relative to 2017
levels, has already been successfully achieved well ahead of
schedule.
Cleveland-Cliffs’ new goals set forth below, relative to 2023
levels, are all supported by ongoing and planned technological
developments to its ironmaking and steelmaking practices:
- A target to reduce Scope 1 and 2 GHG emissions intensity per
metric ton of crude steel by 30% by 2035;
- A target to reduce material upstream Scope 3 GHG emissions
intensity per metric ton of crude steel by 20% by 2035; and
- A long-term target aligned with the Paris Agreement’s 1.5
degrees Celsius scenario to reduce Scope 1, 2 and material upstream
3 emissions intensity per metric ton of crude steel to near net
zero by 2050.
The GHG emissions reduction from 2023 to 2035 will be driven
primarily by the Middletown, OH and Butler, PA projects – both to
be developed in cooperation with the U.S. Department of Energy, as
previously announced – as well as by other operational initiatives
and energy efficiency enhancement projects, all included in Cliffs’
previously announced capital expenditure plans. As a result,
Cliffs’ capex outlook remains unchanged.
Lourenco Goncalves, Cleveland-Cliffs’ Chairman, President, and
Chief Executive Officer said:
“Through the deployment of meaningful investments and our
unwavering commitment to our employees and to the communities in
which we operate, Cleveland-Cliffs has achieved unquestionable
success in reducing GHG emissions, by more than we anticipated and
way ahead of our original 2030 target date. Our outperformance has
given us the ability to further pursue more ambitious and very
relevant new challenges. As a manufacturing leader in America
providing good paying middle-class jobs in sustainable ironmaking
and steelmaking, Cleveland-Cliffs will, one more time, prove that
GHG emissions reduction can and will be done preserving employment,
enhancing middle-class and benefiting communities. That is our
ultimate goal: to demonstrate to others in our business – in the
United States and abroad – that we can be simultaneously a
technological and a social leader, with goals driven by our people
and for the people. Once it is done, Cliffs’ shareholders and all
other stakeholders will have won together.”
About Cleveland-Cliffs Inc.
Cleveland-Cliffs is the largest flat-rolled steel producer in
North America. Founded in 1847 as a mine operator, Cliffs also is
the largest manufacturer of iron ore pellets in North America. The
Company is vertically integrated from mined raw materials, direct
reduced iron, and ferrous scrap to primary steelmaking and
downstream finishing, stamping, tooling, and tubing.
Cleveland-Cliffs is the largest supplier of steel to the automotive
industry in North America and serves a diverse range of other
markets due to its comprehensive offering of flat-rolled steel
products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs
employs approximately 28,000 people across its operations in the
United States and Canada.
Forward-Looking Statements
This release contains statements that constitute
"forward-looking statements" within the meaning of the federal
securities laws. All statements other than historical facts,
including, without limitation, statements regarding our goals to
reduce our greenhouse gas emissions, are forward-looking
statements. We caution investors that any forward-looking
statements are subject to risks and uncertainties that may cause
actual results and future trends to differ materially from those
matters expressed in or implied by such forward-looking statements.
Investors are cautioned not to place undue reliance on
forward-looking statements. Among the risks and uncertainties that
could cause actual results, including our ability to meet our
greenhouse gas emissions reduction goals in the expected timeframes
or at all, to differ from those described in forward-looking
statements are the following: impacts of existing and increasing
governmental regulation, including potential environmental
regulations relating to climate change and carbon emissions, and
related costs and liabilities, including failure to receive or
maintain required operating and environmental permits, approvals,
modifications or other authorizations of, or from, any governmental
or regulatory authority and costs related to implementing
improvements to ensure compliance with regulatory changes,
including potential financial assurance requirements, and
reclamation and remediation obligations; potential impacts to the
environment or exposure to hazardous substances resulting from our
operations; the risk that the cost or time to implement any
strategic or sustaining capital project, including any project
intended to reduce our greenhouse gas emissions, may prove to be
greater than originally anticipated; uncertainties associated with
our ability to meet customers' and suppliers' decarbonization goals
and reduce our greenhouse gas emissions in alignment with our own
announced targets, including those announced in this release; and
challenges to maintaining our social license to operate with our
stakeholders, including the impacts of our operations on local
communities, reputational impacts of operating in a
carbon-intensive industry that produces greenhouse gas emissions,
and our ability to foster a consistent operational and safety track
record. Forward-looking and other statements in this release
regarding our greenhouse gas reduction plans and goals are not an
indication that these statements are necessarily material to
investors or required to be disclosed. In addition, historical,
current and forward-looking greenhouse gas-related statements may
be based on standards for measuring progress that are still
developing, internal controls and processes that continue to evolve
and assumptions that are subject to change in the future.
For additional factors affecting the business of Cliffs, refer
to Part I – Item 1A. Risk Factors of our Annual Report on Form 10-K
for the year ended December 31, 2023, and other filings with the
U.S. Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20240524420377/en/
MEDIA CONTACT: Patricia Persico Senior Director,
Corporate Communications (216) 694-5316 INVESTOR CONTACT:
James Kerr Director, Investor Relations (216) 694-7719
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