Introduction

Ten years on from the Paris Agreement and in the middle of a crucial decade for climate action, in 2025, every industry and product is under scrutiny for its climate impact. And as the transition to renewable energy and electrification continues, metals and mining are in the spotlight. Globally, the metals and mining industry produces 8% of the world’s greenhouse gas (GHG) emissions.

For companies in the metals sector, carbon emissions are a primary focus as a result of legislation such as the European Union’s Carbon Border Adjustment Mechanism and the CSRD reporting requirements. But the push for low carbon is not all regulatory.

In 2025, major metal buyers are driving demand for low-carbon materials from the top down. Suppliers that refuse to accept this new reality will fall behind their peers. Meanwhile, those that can adapt quickly may capitalize on the ‘green premium’, where customers are willing to pay more for products with high transparency and lower carbon footprints.

But just how much demand is there for low-carbon steel, aluminum, and other metals? Here, we explore how the largest companies in metal-buying industries are committing to low-carbon procurement.

Construction

Building and construction accounts for 37% of global greenhouse gas emissions. Materials are a key contributor to this figure, with cement, steel, and aluminum making up a significant portion of the industry’s emissions.

However, the industry has embraced the net zero challenge, leading to a proliferation in LEED-certified and net zero buildings, and innovative solutions like carbon-capture concrete.

A number of major names in the construction industry have also committed to reducing scope 3 (purchased steel in particular) emissions.

Net-zero steel

Bouygues and Lendlease are among a number of large real estate and construction companies that have committed to purchasing steel with lower emissions. Bouygues has pledged to reduce purchased steel emissions by a third by 2030 and is now focused on improving carbon audit calculations and product lifecycle assessments. 

Lendlease has also joined SteelZero and committed to transition to 50% lower-emission steel by 2030 and set a clear pathway to using 100% net zero steel by 2040. British Land Company, John Sisk & Son, Kilnbridge, Landsec, Mace Group, and Sir Robert McAlpine are among other real estate names with SteelZero commitments.

Scope 3 commitments

Other major global construction companies have made broader scope 3 commitments. For example, Vinci has committed to reducing its scope 3 emissions by 20% by 2030. Swedish company Skanska has set a science-based target to achieve net zero by 2045, acknowledging that its scope 3 emissions make up the bulk of its carbon footprint.

Technology

The big names in consumer technology have all made a number of carbon and ESG commitments to address the impact of their hardware emissions.

Apple

Apple has committed to reaching carbon neutrality across its entire supply chain and products by 2030, which includes reducing scope 3 emissions by 75% and using low-carbon aluminum across its devices. The company has also highlighted 14 other critical materials as focus areas, including cobalt, gold, and lithium. For example, the company plans to use 100% recycled cobalt for batteries by 2025.

Microsoft

Microsoft aims to be carbon-negative by 2030, which includes addressing all scope 3 emissions. Materials make up a significant percentage of the carbon footprint of Microsoft’s hardware devices, and as such are a priority area for the company’s decarbonization efforts.

Microsoft is already recycling aluminum in its devices, claiming that it uses “lower-carbon, 100% post-industrial recycled aluminium” in some products, as well as “100% recycled rare earth metals” in others.

Google

Google has ramped up traceability efforts on critical metals for its products, and is already using 100% aluminum in some of its hardware devices. More broadly, the company aims to reduce scope 3 emissions by 50% by 2030, and expects all its suppliers to report environmental data (CDP disclosure is particularly encouraged). In 2023, 90% of the company’s hardware suppliers provided environmental data, allowing the company to pinpoint hardware emissions hotspots to focus on.

Samsung

Though less ambitious than its American competitors, Samsung has committed to reporting on its scope 3 emissions, and collects and manages relevant information on supplier GHG emission reduction targets annually. The company also offers training and GHG emissions calculation forms to help suppliers with reporting. In time, we are likely to see the company announce GHG reduction targets.

Auto + aviation

Thrust under an inevitable spotlight due to their visible carbon intensity, the auto and aviation industries have made major commitments to reducing greenhouse gas emissions.

For many companies, such as General Motors (GM), this involves a full-scale pivot to electric vehicle production. For others, this involves initiatives such as attempts to design more efficient vehicles, recycling materials, and working closely with suppliers to measure and reduce scope 3 emissions.

The auto and aviation industries are significant buyers of high-carbon commodities like aluminum, steel, and glass.

Companies selling these materials to the auto and aviation industries should be aware of the major shift underway to low-carbon procurement. Here are some key examples of sustainable procurement commitments in the auto and aviation industry.

Net-zero steel

As the first automotive manufacturer to join the SteelZero initiative, Volvo will be ramping up its low-carbon steel purchases, having committed to purchasing 50% low-emission steel by 2030, alongside its broader 30% scope 3 reduction target. Another well-known EV company, Polestar, is also a SteelZero member, with a commitment to transition to 50% low-emission steel by 2030.

Scope 3 commitments

Other prominent auto companies and their suppliers and manufacturers have made broader scope 3 commitments. For example, Schaeffler has committed to reduce upstream emissions by 25% by 2030, while Rolls-Royce, a major engine manufacturer for the aviation industry, has set an ambitious 2030 net zero target. Tesla, while it hasn’t set quantitative targets to reduce emissions, claims it is working on reducing its scope 3 emissions, particularly in regards to the nickel and cobalt that fuel its batteries. At the same time, aluminum and steel account for 18% and 8% respectively of the company’s scope 3 emissions, so these are likely to be key priorities for the company in the coming years.

Upcycling

A number of auto companies are prioritizing recycled and upcycled materials over virgin materials. For example, Jaguar Land Rover now requires all new vehicle designs to include upcycled aluminum. Rolls-Royce is also reducing its reliance on virgin metals through its closed-loop program known as Revert.

Beverage and packaging

For consumer-facing industries like food, beverage, and CPG, packaging is a major concern. Packaging accounts for 10% of the industry’s emissions, but more importantly, it is high on the list for consumer concern. Because packaging is highly visible, consumers often cite the environmental footprint and waste profile of packaging as their primary environmental concern with the products they buy. To address this, many food, beverage and packaging companies are designing innovative ways to reduce the carbon footprint and environmental impact of their product packaging.

Beverage

With its traditional glass bottles and aluminum cans making up a decent portion of its Scope 3 emissions, Heineken is working with its suppliers on packaging emissions reductions through an initiative it has dubbed ‘Packaging the Future’. Through the initiative, the company is “contracting suppliers with clear emissions reduction roadmaps and engaging with existing ones to set science-based targets.”

In 2022, Suntory unveiled the first fully recycled aluminum can, emitting 60% less than a standard can. The Suntory Group aims to reduce scope 3 emissions by 30% by 2050. Coca-Cola has engaged aluminum manufacturer and recycler Novelis and now plans to recycle 100% of its aluminum cans sold in the US, reducing emissions by 95%. Meanwhile, PepsiCo has introduced consumer-based aluminum recycling initiatives and has broader goals to reduce its scope 3 emissions by 40% by 2030.

Packaging companies

A number of major packaging suppliers have taken bold action, including Canpack, which has declared that all strategic suppliers must have a target for Scope 3 emissions by 2025. At the same time, consultants such as Packaging for the Future are working with household-name clients to reduce the environmental impact of their packaging.

Energy

The energy transition is in full force, with many legacy energy companies repositioning themselves as leaders in clean energy, and many new startups appearing to support the global move to renewables.

Yet even renewable energy infrastructure has its carbon footprint; wind turbines, solar panels and nuclear reactors don’t just fall from the sky, for example. Significant quantities of carbon-intensive metals are required to build renewable energy infrastructure, and many of the companies driving renewable energy have made commitments to reduce their scope 3 emissions, particularly in regards to purchased materials like steel.

Net-zero steel

A number of major energy providers, including Ørsted, Iberdrola, Siemens Gamesa, and Vattenfall BA Wind, have joined SteelZero, committing using 50% lower-emission steel by 2030, and setting a clear pathway to using 100% net-zero steel by 2040 (Ørsted, Siemens, Vattenfall) and 2050 (Iberdrola) respectively.

Scope 3 commitments

Vestas, a U.S.-based wind energy company, has committed to reducing its scope 3 emissions by 45% by 2030. With half the company’s emissions produced by the steel used to manufacture its wind turbines, low-carbon steel will be high on the Vestas procurement team’s agenda.

Logistics

As the enablers of complex global supply chains, logistics and shipping companies have come under fire for their significant emissions profiles. A number of high-profile companies in the industry have committed to reducing the impact of their purchased materials. Meanwhile, the International Maritime Organization now requires the shipping industry to reduce its total greenhouse gas emissions by 50% by 2050. While operational emissions (fossil fuels) are the primary concern here, this industry has a significant embodied carbon profile due to its large steel purchases.

Net-zero steel

Both A.P. Moller (Maersk) and China’s CIMC have joined SteelZero, committing to using 50% low-emission steel by 2030 and setting a clear pathway to using 100% net zero steel by 2040 and 2050 respectively.

Scope 3 commitments

Though notably vague on scope 3, shipping company Hapag-Lloyd has made a commitment to reducing absolute greenhouse gas emissions by around one third by 2030 and achieving net-zero fleet operations by 2045. Fleet modernization is a key part of Hapag-Lloyd’s strategy. Cosco, another major shipping company, has highlighted material use as a material environmental risk factor.

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