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VELUX Group and ArcelorMittal Team Up for Sustainable Steel Solutions

VELUX Group and ArcelorMittal Team Up for Sustainable Steel Solutions

VELUX Group and ArcelorMittal Forge a Sustainable Partnership

The VELUX Group has made a significant move towards sustainability by signing a 10-year agreement with ArcelorMittal for the supply of recycled and renewably produced steel. This collaboration aims to greatly enhance the environmental impact of the materials used in VELUX roof windows.

Commitment to Reduce Carbon Footprint

In a joint effort to reduce the carbon emissions associated with production, the two companies have developed a strategy that could lower the carbon footprint of steel used in VELUX products by an impressive 70 percent compared to traditional steel production methods. This forward-thinking approach has involved rigorous testing and validation of ArcelorMittal’s XCarb® steel, ensuring its quality and performance in essential components such as window hinges and installation brackets.

Transition to XCarb® Steel by 2025

As part of this agreement, VELUX is gradually increasing its orders for XCarb®, with a goal to fully integrate this innovative steel into its roof window products by 2025. This transition will replace the older steel components, marking a significant step in VELUX's commitment to sustainability.

Voices from Leadership

“Steel is critical for the integrity and endurance of our products, but it has traditionally contributed to significant carbon emissions,” commented Jesús Villalba, Senior Director of Direct Procurement at VELUX Group. He further expressed satisfaction with how this partnership showcases the impact of collaboration with suppliers to reduce emissions throughout the value chain.

Understanding Scope 3 Emissions

For VELUX, metals, primarily steel, account for 5.7 percent of its total scope 3 emissions—a category that encompasses indirect emissions in a company's value chain. This partnership aims not only to improve product sustainability but also to contribute to broader environmental goals.

The Power of XCarb® Steel

XCarb® steel is noteworthy for its production process, which relies on at least 75% recycled steel and is powered entirely by renewable electricity. This process takes place in an ArcelorMittal facility in Northern Spain, where an electric arc furnace produces this environmentally friendly steel. Continuous improvements in the production processes are being explored to further minimize the carbon footprint associated with the steel supplied to VELUX.

A Shared Vision for Sustainability

“This long-term agreement is more than just a contract; it’s a message highlighting the vital role steel plays in the decarbonization of everyday materials,” stated Laurent Plasman, CMO Industry at ArcelorMittal Europe – Flat Products. His recognition of VELUX’s commitment to low carbon-emissions steel solidifies the importance of this initiative.

Exploring Other Sustainable Materials

VELUX's collaboration with ArcelorMittal isn't merely about steel. The Group is actively researching various materials alongside its suppliers to achieve an ambitious target: to reduce scope 3 upstream emissions by 50% by 2030. This goal signifies a comprehensive approach to enhance the sustainability of their complete product line.

About the VELUX Group

With over 80 years of experience, the VELUX Group has been at the forefront of providing roof windows that invite daylight and promote fresh air into homes globally. Its impressive product range not only includes roof windows and modular skylights, but also complementary elements like decorative blinds and smart home solutions. The company operates in 37 countries and employs approximately 11,900 individuals, constantly innovating ways to enhance energy efficiency and living quality.

About ArcelorMittal

As one of the leading integrated steel and mining firms worldwide, ArcelorMittal operates across 60 countries, making it a powerhouse in steel production. The company serves a broad spectrum of industries, including automotive and construction, demonstrating a strong commitment to reducing carbon emissions and fostering sustainable practices. In 2023, ArcelorMittal generated revenues of $68.3 billion, producing over 58 million metric tonnes of steel.

Contact Information

Yvette Roper
Senior Global Media Relations Manager, the VELUX Group
Email: yvette.roper@velux.com
Phone: +45 30 47 59 42

Sophie Evans
Head of Communications, ArcelorMittal Europe
Email: Sophie.Evans@arcelormittal.com
Phone: +44 7825 595 849

Frequently Asked Questions

What is the primary goal of the agreement between VELUX and ArcelorMittal?

The primary goal is to supply VELUX with steel that has a significantly lower carbon footprint, targeting a reduction of up to 70% compared to conventional steel.

What is XCarb® steel?

XCarb® steel is a product from ArcelorMittal made with a minimum of 75% recycled steel and produced using 100% renewable electricity.

When is VELUX planning to fully integrate XCarb® steel into its products?

VELUX aims to incorporate XCarb® steel into various roof window components by 2025.

How much do metals contribute to VELUX's emissions?

Metals, primarily steel, account for 5.7% of VELUX Group's total scope 3 emissions.

What is VELUX's sustainability target by 2030?

VELUX is targeting a 50% reduction in its scope 3 upstream emissions by 2030 as part of its broader sustainability initiative.

About The Author

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The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.

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