Investors welcome Nippon Steel disclosure on investment decisions

ACCR is responding to new disclosures made by Nippon Steel Corporation at its Green Transformation (GX) webinar for international investors.

The company has outlined supply and demand-side factors it considers when making investment decisions, including technology and infrastructure maturity, cost, and green steel demand. It has also set out the key risks and infrastructure requirements associated with its three major transition pathways, improving comparative disclosure for investors ahead of key investment decisions in the next decade.

A group of institutional investors, including MAN Group and Legal & General Investment Management, have been engaging positively with Nippon Steel on this issue.

Annabel Clark, Sector Strategy Lead – Steel & Mining, ACCR, said:

“We welcome Nippon Steel’s ongoing commitment to providing information relating to its decarbonisation progress through its GX webinars, and in particular, the new information it has provided relating to its investment framework and technology pathways. The company has a number of material investment decisions due in the next decade, including whether it reinvests in five coal-based blast furnaces, or chooses a lower emission option.

“It’s positive to see the board showing how it makes decisions and evaluates these options based on cost and commercial viability. The choice of pathway, for example reinvesting in expiring blast furnaces or switching to lower emission options, will affect long-term value generation and the company’s achievement of its emissions reduction targets.

“These disclosures, while incomplete, give investors greater confidence that Nippon Steel is prioritising long-term shareholder value at a time of great opportunity in the green steel market. We will continue engaging with the company to ensure that investors have access to the best possible information ahead of key decisions in the years ahead.”