Steel scorecard flags Tata Steel’s carbon challenge

Jamshedpur: The inaugural SteelWatch Corporate Scorecard 2026 has delivered a stark assessment of the global steel industry’s climate readiness, with none of the 18 major producers deemed prepared for a near-zero emissions future. 

Tata Steel, a cornerstone of Jamshedpur’s industrial identity, secured 27.5 out of 100—placing it in the “underperforming” tier and underscoring the steep road ahead in decarbonizing coal-reliant operations. The report, released on March 31, introduces the concept of a “transition readiness gap,” highlighting the disconnect between corporate climate pledges and on-ground progress.

While Tata Steel has committed to achieving net-zero emissions by 2045, its continued dependence on coal-based blast furnace technology at its Jamshedpur and Kalinganagar plants remains a critical obstacle. Across the sector, blast furnaces account for nearly 90 % of emissions, and most companies—despite long-term ambitions—continue to rely on them to meet rising demand, particularly in emerging economies like India.

In the global rankings, Sweden’s SSAB (46.2) and Germany’s thyssenkrupp (41.9) emerged as leaders, though neither crossed the halfway mark. Tata Steel’s score placed it alongside peers such as JSW Steel (29.6) and ArcelorMittal, while companies like Nippon Steel (16.8) and HBIS Group (8.3) ranked at the bottom due to deep coal dependence and limited transparency.

Despite the sobering findings, signs of transition are visible. 

Earlier this year, Tata Steel signed a  Rs 11,000 crore MoU with the Jharkhand government to introduce advanced green technologies at its Jamshedpur facility. Plans include scaling up the HISARNA process—capable of reducing emissions by up to 80% when combined with carbon capture and conducting hydrogen injection trials to cut coke usage in blast furnaces. For Jamshedpur, the report reinforces a pivotal truth: the transition to green steel will demand not just innovation, but swift and large-scale execution.