Embracing Green Steel with Climate Group’ SteelZero by 2050

Steel is fundamental to our business and to building social infrastructure, yet its production generates substantial CO2 emissions—a critical societal challenge. Our parent company, Yamaguchi Heavy Industries, has joined Climate Group’s SteelZero initiative to champion green steel, a low-impact material that aligns with natural capital management and Japan’s GX bonds, or “climate transition bonds” . Anchored in Japan’s decarbonization-driven “GX2040” strategy, Yamaguchi Heavy Industries takes pride in being the first Asian company certified under the British Standards Institution’s PAS2080 greenhouse gas accounting guideline.

Yamaguchi Heavy Industries’ participation in SteelZero marks a significant step for our group. As climate change demands rapid transformation, we’ve developed “Purpose Management 2050,” a plan to grow sustainably while staying rooted in our ethical purpose. SteelZero’s focus on balancing infrastructure needs with environmental responsibility deeply resonates with our vision.

As the first Japanese member of this global network, Yamaguchi Heavy Industries is committed to creating a market for low-emission steel, fostering collaboration, and driving shared value to meet SteelZero’s goals. We aim to support their leadership, inspiring Japan’s steel users, suppliers, and policymakers to advance decarbonization from the demand side.

The “AI revolution” promises to accelerate innovation, and global climate ambitions are intensifying. At COP29, the UK targeted an 81% reduction in greenhouse gas emissions by 2035 from 1990 levels ; we’ve set an even bolder 82% reduction goal. To stay ahead, we’re reimagining supply chains through life cycle assessments (LCA), prioritizing global environmental impact, and innovating production to support sustainable “natural capital” and nature-positive outcomes.

To support these efforts, we established American Katerra, LLC in San Antonio, Texas, USA, on October 21, 2024. Backed by Yamaguchi Heavy Industries’ commitment to SteelZero, we’re harmonizing infrastructure development with societal challenges, positioning us for sustainable growth.