In addition to environmental and social harms, climate change is creating systemic risk to the economy, making the corporate sector’s contribution to climate mitigation a significant policy issue. The latest IPCC publication states that the window for limiting global warming to 1.5 degrees Celsius (1.5°C), and thereby avoiding the most catastrophic impacts of climate change, is quickly narrowing and that immediate, sharp emissions reduction is required of all market sectors and industries.[1]
In response, shareholders are addressing the growing material climate risk to their companies and their portfolios. For instance, the Climate Action 100+ initiative, a coalition of more than 700 investors with over $68 trillion in assets, issued a Net Zero Benchmark (Benchmark) outlining metrics that create climate accountability for companies and transparency for shareholders. Indicators 1 through 5 of the Benchmark seek reporting on companies’ Net Zero emissions ambition; short, medium, and long-term greenhouse gas (GHG) reductions goals; and strategic actions planned to achieve decarbonization targets.[2]
Ryerson Holding Corp. is a leading processor and distributor of industrial metals serving over 40,000 customers across a variety of industries. While Ryerson admits in its annual report that climate change “could result in material liabilities and costs,”[3] it has not disclosed GHG emissions from either its operations or supply chain; set time-bound targets to reduce GHG emissions across its enterprise, including its supply chain emissions; or disclosed a plan for how to achieve Paris aligned GHG emissions reductions. In contrast, 26 companies within the industry sector ‘Mining – Iron, Aluminum, Other Metals’ have either committed to, or have, set Net Zero GHG targets through the Science Based Targets initiative.
By setting 1.5°C, Paris-aligned GHG reduction targets for its Scope 1 through 3 emissions, disclosing a Net Zero transition plan, and demonstrating progress toward achieving these goals, Ryerson can provide investors with assurance that management is reducing its climate contribution, addressing the risks and opportunities associated with climate change, and remaining competitive.