Frequently Asked Questions

The Low Emission Steel Standard (LESS) is a standard designed to classify and label low-emission and near-zero steel. It is developed, owned, and managed by LESS aisbl, an independent non-profit organisation based in Brussels.

Steel producing companies representing nearly one-quarter of European crude steel production are actively supporting the standard as members of the LESS aisbl. Additionally, the standard is backed by the German Ministry for Economic and Climate Action, further reinforcing its credibility and importance.

LESS has been developed with the support of both primary and secondary steel producing companies. It is built on the well-established sliding scale approach from the International Energy Agency (IEA), which defines low emission steel production based on emission intensity thresholds tied to the scrap ratio. By extending the system boundary to include ‘hot-rolled steel’, LESS not only incentivises the decarbonisation of this critical production step but also addresses the broader challenges transforming the steel industry. The standard is designed to be flexible, offering product-level verification and employing a technology-agnostic approach to classify hot-rolled steel at individual sites. With its focus on greenhouse gas emissions and the option to leverage EU-ETS data, LESS minimises administrative burdens. This makes it accessible to small and medium-sized steel producers, enabling them to achieve verifications and contribute to the industry´s decarbonisation goals.

LESS was further developed and refined through a public stakeholder dialogue titled “Lead Markets for Climate-Friendly Basic Materials”, organised by the German Ministry for Economic Affairs and Climate Action. This collaborative effort brought together a diverse range of stakeholders from science, politics, NGOs, steel-producing companies, and organisations across the steel value chain, ensuring a well-rounded and inclusive approach to shaping the standard.

Hot-rolled steel refers to steel produced from crude steel in a hot-rolling mill available as either flat or long products. According to worldsteel, the global steel industry association, hot-rolled steel accounts for approximately 96 per cent of global steel production. Moreover, a significant portion of emissions from the entire steel production process up to this stage. For these two reasons, the system boundary for LESS was specifically defined to focus on the decarbonisation of ‘hot-rolled’ steel. By doing so, the standard also incentivises and rewards efforts to reduce emissions at this critical stage of production, such as optimizing reheating furnaces or minimizing emissions from alloying elements. Combined with its sliding scale approach, LESS has gained strong support from both primary and secondary steel producers.

The sliding-scale approach encourages both primary and secondary steel producers to reduce green house gas emissions, driving the decarbonization of the entire steel industry. It provides a fair framework for comparing transformation progress among steel companies, acknowledging the differing start points of production processes and their gradual convergence. Crucially, the sliding-scale recognizes the global limitations on scrap availability, highlighting that decarbonizing the steel industry cannot rely solely on increased scrap usage. This approach, recommended by the International Energy Agency (IEA), served as a cornerstone in designing labelling systems for low-emission steel, ensuring a balanced and effective pathway to sustainability

The LESS classification system is completely technology-neutral. Reference plant modelling indicates the high level of ambition embedded in the standard: even achieving classification level D requires production using the best available technologies today. Reaching level C in primary steelmaking demands a transition to ‘near-zero’ production technologies, such as direct reduction (DR) or electric arc furnace (EAF), combined with the partial use of greenhouse gas-reduced energy sources like hydrogen and electricity. Similarly, achieving level C in secondary steel making, which relies on high scrap rates, also necessitates the integration of greenhouse gas-reduced energy sources. Over time, advancements in steel production technologies, improved practices, and increased access to low-carbon energy carriers will continue to drive down emissions. To attain ‘near-zero’ classification, steel producers must significantly reduce their scope 3 upstream emissions, including those from raw materials such as iron ore, lime, and alloying elements. This reflects the comprehensive approach needed to transform the industry towards climate neutrality.

The ‘near-zero’ threshold is derived from International Energy Agency (IEA) calculations, outlining where the steel industry must be by 2050 in terms of emissions intensity per tonne of crude steel to align with the Paris climate goals. In LESS, this threshold has been adapted to account for expanded system boundary that includes ‘hot rolling’ and additional scope 3 upstream emissions. The classification thresholds (A to D) are set as multiples of the ‘near-zero’ , with x2 representing the A/B threshold, x3 = B/C threshold, and so on. These thresholds are also based on the amount of scrap used in the production process, ensuring a fair and flexible system that reflects both technological and resource availability.

LESS is built on the well-established classification approach of the International Energy Agency (IEA) for low-emission and near-zero steel, extending it to include the system boundary of ‘hot-rolling’. Furthermore LESS incorporates rules and definitions from the EU ETS, the GHG protocol, and internationally recognised standards such as ISO 14067, ensuring alignment with global best practices and industry benchmarks

Whenever possible, verified primary data must be used. If primary data is unavailable, secondary data may be applied, utilising the specified emission factors outlined in the LESS rulebook.

The standard currently provides a framework for classifying quality, as well as structural and reinforcing hot-rolled steel. However, work is underway to expand the rules to include stainless steel and additional production steps, such as forging and seamless pipe manufacturing, reflecting the standard´s commitment to continuous improvement and broader industry impact.

Yes, the standard considers relevant Scope 3-upstream emissions, including Scope 3.1 (purchased goods and services), Scope 3.3 (fuel and energy-related activities), and Scope 3.8 (upstream leased assets).

LESS is based on the internationally recognised proposed by International Energy Agency (IEA), which was recognised by the G7 in May 2022 as a robust starting point. It also incorporates established international standards, such as those developed by ISO, ensuring credibility and global alignment.

The Steel Standard Principles, an initiative of the World Trade Organization (WTO) and World Steel Association, aim to harmonise and ensure interoperability between standards, particularly in the collection and calculation of GHG data. Recognising the importance of transparency and the need advance interoperability where full harmonisation is challenging, LESS is fully committed to these principals and actively contributes to ongoing discussions to support alignment and progress.

The label consists of three key elements: 1. Classification - this highlights a steel producer´s decarbonisation efforts, with classifications ranging from low-emission (A-D) to near-zero, tailored for different product groups at a specific plant site. 2. Scrap Share - this indicates the proportion of secondary material used in the steel production process. 3. Product Carbon Footprint (PCF) or Global Warming Potential (GWP) verified according to the Environmental Product Declaration (EPD).

The LESS classification enables a clear comparison of decarbonisation efforts among steel producers and production routes at a given site. It also serves as a valuable lead market instrument, allowing policymakers to monitor and support the steel industry´s transformation. While the Product Carbon Footprint (PCF) or Global Warming Potential (GWP) provides essential insights into the emissions of a final product - helping steel processors manage their decarbonization strategies - it falls short in reflecting the climate impact of the production process or the facility operator´s commitment to decarbonisation. This is because PCF calculations encompass all processing steps leading to the intermediate or final product, making comparisons meaningful only for identical products. LESS bridges this gap offering a robust framework that accounts for both decarbonisation efforts and product-specific emissions, ensuring transparency and accountability across the steel value chain.

Only steel producing companies that have obtained LESS verification for their products through approved third-party certification bodies and the LESS certificate are authorized to use the label. Currently, the label is primarily intended for implementation within the B2B segment.

The transparent labelling of GHG emissions from steel production, along with the scrap share, empowers companies and policymakers to effectively manage and implement their sustainability strategies. By providing all the necessary information to document and track GHG reduction targets, LESS ensures clarity and accountability. Additionally, the LESS classification enables a fair comparison of decarbonisation efforts across different manufacturers, regardless of their production process.

Yes, co-labelling is permitted, but not on the LESS label.

A prerequisite for LESS-labelling is a third-party verification conducted by certification bodies approved by LESS aisbl.

If you would like to apply for LESS verification, please visit our webpage to find the list of approved certification bodies and detailed guidelines for the verification process. Once you have selected a certification body, contact them directly to initiate the LESS verification procedure.

Only certification bodies approved by LESS aisbl are authorised to perform verifications against LESS and issue certificates. A list of approved bodies is available on our webpage.

LESS mandates annual verification, requiring companies to complete an audit within twelve months of their previous verification. The standard does not dictate at when the year verification must take place, leaving this decision entirely up to the company.

LESS certificates are valid for a period of 36 months.