First Movers Coalition Steel Commitment

IEA analytical supply chain boundary for defining near-zero emission steel production* *See the IEA 2022 report "Achieving Net Zero Heavy Energy Sectors in G7 Members." In the graphic, "other materials production" refers to the production of material inputs to the iron and steel sector besides iron ore and limestone, including electrodes, alloying elements, and refractory linings. Lime-based slag formers are included within the IEA boundary and therefore should be included in the calculation of emissions. Disclaimers Voluntary commitments made by members of the First Movers Coalition are subject to the availability of material(s), fuel(s), service(s) supply and regulatory approvals. Members acknowledge that procuring the material(s), fuel(s), or service(s) needed to meet these commitments may come at a premium cost. Commitment design process The original steel commitment was launched in 2021 with support from the design committee sector contributors Climate Group, Net Zero Steel Initiative (Mission Possible Partnership) and Energy Transitions Commission. The commitment was revised in 2025 through a biennial Commitment Review process. 1 FMC sets ambitious standards, including a supply chain boundary inclusive of raw material preparation (iron ore and limestone) and fossil fuel supply (including extraction, transportation, and beneficiation) through steelmaking and casting (including all iron ore and limestone processing transportation emissions; does not include sorting and transportation of steel scrap). Transport emissions of iron ore and lime products include all emissions regardless of intermediary stops between mining and steel plant. 2 FMC acknowledges the growing number of GHG methodologies and standards in the steel sector. Other methodologies are acceptable as long as the emissions boundaries and definitions used are in line with the FMC commitment, hence the IEA near-zero framework. The IEA proposes principles for interoperability and net zero compatibility of emissions measurement methodologies and data collection frameworks, including a review of leading existing methodologies and frameworks here. To further support collaboration and transparency across regions, for specific regions, where no alternative is available, FMC members may rely on other credible methodologies that have proven certification and verification systems (e.g., CISA in China). 3 ldentity preserved: "the materials or products originate from a single source and their specified characteristics are maintained throughout the supply chain." ISO 22095:2020