The decarbonization of the steel industry is seen by Klöckner & Co as a major opportunity for the company and its customers. The steel trader is now taking another significant step following the introduction of CO2 categorizations for steel, aluminum and stainless steel products and the launch of sales for CO2-reduced products under the Nexigen® umbrella brand. From now on, customers can calculate their individualized product carbon footprint (PCF) for almost any of the approximately 200,000 Klöckner products when placing an order.
PCF algorithm Nexigen®
All of the product's emissions can be recorded by the PCF down to the kilogram from raw material extraction to delivery to the customer's factory gate (cradle to customer entry gate) using the independently certified Nexigen® PCF Algorithm. The algorithm was developed by Klöckner & Co in cooperation with the Boston Consulting Group and makes it possible to make CO2 emissions from products transparent and visible. The steel trader thus supports its customers in establishing sustainable value chains.
"With the Nexigen® PCF Algorithm, we are taking another important step. We are thus enabling our customers to make their purchasing decisions on the basis of scientifically sound emissions data that can be compared across manufacturers, and supporting them in achieving their decarbonization targets," says Guido Kerkhoff, Chairman of the Management Board of Klöckner & Co SE.
Accuracy thanks to digital Product Carbon Footprint Declaration
In the future, customers will be able to choose to receive the PCF directly when selecting their desired product. After delivery of the goods, they will receive the kilogram value of the greenhouse gas emissions incurred, including all important details such as batch or delivery number, thanks to the digital Product Carbon Footprint Declaration. Klöckner & Co thus ensures that the emissions incurred during transport from the branch to the respective customer location are also taken into account. The Nexigen® PCF Algorithm calculation method has been certified by TÜV SÜD and complies with ISO standard 14067, ref. 14040 and 14044, as well as the Greenhouse Gas Protocol.
Convinced partners
Siemens Smart Infrastructure and ZF, two long-standing strategic partners of Klöckner & Co, are also convinced of the benefits of the PCF. Both technology groups have agreed with Klöckner & Co subsidiary Becker Stahl-Service to have PCFs calculated for flat steel products in the future. At Siemens, this initially relates to all deliveries to the Cham and Frankfurt sites.
Strategies for greater sustainability
With the introduction of PCFs, Klöckner & Co is responding to increasing demand from its customers and partners. These want to receive transparent information on the full CO2 footprint for the products they order. Supporting its customers in building sustainable value chains is a central part of Klöckner & Co's strategy. Under the Nexigen® umbrella, the company offers transparent, CO2-reduced solutions in the areas of materials, pre-processing and logistics. With the introduction of the Nexigen® PCF Algorithm, these will be significantly expanded.