ACCR Company Engagement Nippon Steel Corporation

Nippon Steel is Japan's largest producer of crude steel and ranks as the fourth-largest steel manufacturer in the world.

Based in Japan, Nippon Steel has four main business segments; steel manufacturing, engineering, chemicals and system solutions. Formerly known as Nippon Steel & Sumitomo Metal Corporation, it changed its name to Nippon Steel Corporation in April 2019.

Steel manufacturing is the dominant source of Nippon’s greenhouse gas emissions, which in FY2021 were 103.29 MT CO2-e pa for Scope 1, 2 and 3. Investors in the company see its corporate value depending upon a credible decarbonisation strategy for its steel making business, with short, medium and long-term GHG emissions reduction targets aligned with the goals of the Paris Agreement.

Nippon’s decarbonisation plan is not currently aligned with the IEA’s NZE 1.5C pathway and its roadmap relies heavily on technologies unproven to reduce material emissions at scale (Course50/SuperCourse50). Nippon Steel's carbon intensity for its steelmaking operations has remained unchanged, despite achieving a 27% reduction in absolute emissions from its 2013 baseline, largely attributable to decreased production levels.

In December 2023, Nippon Steel announced it would purchase US Steel for $US14.9 billion. After the acquisition closes in 2024, Nippon Steel’s production capacity will increase to approximately 86 million tonnes of crude steel per year, significantly expanding its carbon footprint.

ACCR has engaged with Nippon Steel since 2023 on its decarbonisation measures, along with institutional investors Man Group and Storebrand Asset Management, and Corporate Action Japan (CAJ).

Details of Nippon Steel’s announced steel and iron decarbonisation projects, which feature in ACCR’s global coverage of the steel sector’s emission reduction efforts, can be found here.


  1. Insights

    ACCR Presentation on the green steel transformation

    Webinar to discuss insights from ACCR's recently published report, Forging pathways: Insights for the green steel transformation.

  2. Research

    Investor handbook: Engaging with the steel sector

    This handbook aims to support investors in company engagement, a key tool to drive value and enable emissions reductions in the steel sector.

  3. Research

    Forging pathways: insights for the green steel transformation

    Across every stage of the value chain, companies are taking advantage of advancements in technology to enable less carbon intensive steelmaking.

  4. Media release

    Investors applaud Nippon Steel, as world’s fourth largest steel company takes strides towards green steel

    A group of investors in Nippon Steel Corporation has welcomed the company’s concrete steps towards achieving its decarbonisation targets.