Leading steelmakers overlook methane embedded in their coal supplies

This report by Ember examines how major global steelmakers—specifically ArcelorMittal, Nippon Steel, and POSCO—often omit fugitive methane emissions from coal mining in their Scope 3 emissions reporting. The analysis highlights that reliance on blast furnace technology and the sourcing of coal from high-methane mines in Australia significantly increase the actual climate impact of these companies' value chains, often by percentages that would materially alter their reported greenhouse gas footprints.

• Major steel companies frequently fail to report fugitive methane emissions from metallurgical coal mining within their Scope 3 Category 1 (Purchased Goods and Services) emissions, despite these emissions representing a significant share of the footprint for blast furnace-based production.
• ArcelorMittal, the EU's largest steelmaker, does not disclose the methane footprint of its annual consumption of approximately 28 Mt of coking coal and PCI. Ember estimates that including coal mine methane would increase ArcelorMittal Europe’s Scope 3 emissions by 50% based on 2024 data.
• Nippon Steel's reliance on Australian coal creates a significant emissions hotspot; in 2024, it imported approximately 11.3 Mt of metallurgical and high calorific value thermal coal from Australia. This contributed 43 kt of methane emissions, which Ember estimates would increase the company's reported Scope 3 emissions by 23%.
• POSCO, which operates over 75% of South Korea's blast furnace capacity, imported 9 Mt of metallurgical coal from Australia in 2024. This contributed 37.5 kt of methane emissions to its supply chain, which Ember estimates would add 49% to the company's reported Scope 3 emissions for 2024.
• Technological solutions like hydrogen injection and Carbon Capture, Utilisation and Storage (CCUS) at steel plants do not address fugitive methane emissions occurring during upstream coal extraction.

APA

Ember (2025). Leading steelmakers overlook methane embedded in their coal supplies. https://ember-energy.org/chapter/leading-steelmakers-overlook-methane-embedded-in-their-coal-supplies/

Chicago

Ember. Leading steelmakers overlook methane embedded in their coal supplies. 2025. https://ember-energy.org/chapter/leading-steelmakers-overlook-methane-embedded-in-their-coal-supplies/.

Wikipedia

{{cite report |author=Ember |title=Leading steelmakers overlook methane embedded in their coal supplies |date=4 September 2025 |url=https://ember-energy.org/chapter/leading-steelmakers-overlook-methane-embedded-in-their-coal-supplies/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2025leading, author = {{Ember}}, title = {{Leading steelmakers overlook methane embedded in their coal supplies}}, institution = {Ember}, year = {2025}, month = sep, url = {https://ember-energy.org/chapter/leading-steelmakers-overlook-methane-embedded-in-their-coal-supplies/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }