A climate advocacy group has filed a complaint against ArcelorMittal, the world’s largest private steelmaker, through an OECD-linked process, accusing the company of cutting climate pollution too slowly. As a global steel giant with a large environmental footprint, ArcelorMittal still relies heavily on coal-fired blast furnaces, making it a major source of carbon emissions. The complaint claims the company lacks a strong, science-based climate plan and is not reducing emissions fast enough to meet climate goals.
Why steelmaking is a major climate problem
Steelmaking is one of the most polluting industries on Earth. It is responsible for about 9 percent of global greenhouse gas emissions. That means nearly one-tenth of all climate pollution comes from making steel.
Most of this pollution comes from blast furnaces. These furnaces use coal to turn iron ore into iron. Another furnace then turns that iron into steel. The process releases massive amounts of carbon dioxide.
ArcelorMittal operates 32 blast furnaces around the world. About three-fourths of its steel production still comes from coal-based methods. This trend is a key reason climate groups are focusing on the company.
In 2024 alone, ArcelorMittal released more than 100 million metric tons of carbon dioxide equivalent. That amount is similar to the total yearly emissions of some entire countries. At the same time, the company earned more than $60 billion in revenue, showing its vast economic power.
Climate advocates argue that companies of this size have a responsibility to lead, not follow. They say large corporations have the money, technology, and influence needed to change how heavy industry works.
Over the years, advocacy groups have used many ways to get attention. One example included a public message projected onto a company building during a major international sporting event, calling on the company to stop using coal. Now, groups are turning to formal systems that document concerns and demand dialogue.
What the OECD complaint process involves
The complaint was filed through a process overseen by the OECD, a group of 38 market-based democracies. The OECD has guidelines for “responsible business conduct.” These guidelines are voluntary, meaning companies are not legally forced to follow them. However, they carry strong moral and public pressure.
Each country involved has a National Contact Point. These offices review complaints against companies based in their country. In this case, the complaint was sent to the Luxembourg National Contact Point, since ArcelorMittal is headquartered there.
The goal of this process is not punishment. It is meant to encourage discussion between companies and civil groups. If accepted, the process can lead to mediated talks and agreed steps to improve company behavior.
The complaint states that ArcelorMittal lacks a clear plan that matches climate science. It argues that the company’s actions do not align with global efforts to limit dangerous warming. The filing says this gap creates risks not only for the planet but also for communities affected by pollution.
The review stage usually takes several months. If the company agrees to participate, discussions can last from six months to several years. The outcome depends on cooperation from both sides.
ArcelorMittal’s climate actions and ongoing concerns
ArcelorMittal says it is committed to cutting emissions. The company reports that it invested more than $3 billion between 2018 and 2024 in projects aimed at lowering pollution. These efforts include testing carbon-capture technology, adding wind and solar power, and increasing the use of recycled scrap metal.
Steel made from scrap uses electric arc furnaces instead of coal-based blast furnaces. This method produces far less pollution. Scrap-based steel now makes up about one-quarter of ArcelorMittal’s production, up from less than one-fifth several years ago. The company also reports that its total emissions dropped by nearly half over six years. However, much of that drop came from lower production levels and the sale of certain assets, not from major changes to how steel is made.
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In 2021, ArcelorMittal announced plans to reach net-zero emissions by 2050. It set targets to reduce emissions per ton of steel by 2030, with stronger goals for Europe. The company also pledged large investments to support cleaner technologies, including hydrogen-based steelmaking.
Green hydrogen, made using renewable electricity, can replace coal in iron production. This technology is seen as a key path to cleaner steel. ArcelorMittal planned to build a green hydrogen iron facility in Spain. While some related projects moved forward, the company delayed a final decision on the hydrogen plant.
The company said the delay was due to economic challenges and uncertainty around energy prices and government policies. It also acknowledged that progress has been slower than expected. Climate groups argue that waiting for perfect conditions increases climate risks. They say large companies should move faster and help shape markets for clean energy, rather than waiting for others to act first.
The OECD complaint adds formal scrutiny to a long-running debate about responsibility, speed, and scale in industrial climate action. Public oversight, campaigners say, is essential when the climate impact is this large.
