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LKAB emits greenhouse gases in various production processes. We accept the resulting responsibility and embrace the challenge of combatting climate change.
The world community agreed in Paris in 2015 to limit global warming to well below 2°C and pursue efforts to limit it to only 1.5°C. This commitment means that there is a global need to reduce carbon dioxide (CO2) emissions, which represents the largest share of greenhouse gases emitted.

As a large CO2 emitter in Sweden, we recognise our responsibility and strive to be a leader in tackling climate change. We participate in the European Union Emissions Trading System (EU ETS), which places a price on CO2 emissions. We believe that a strong global carbon price signal should incentivise European industry to lower their climate impact. Our position on this topic is described in further detail on this page.

Our iron ore pellets are used to make steel, which is a crucial material for many industries. Steel production is mainly divided in two routes: primary and secondary. While the primary route is based on natural resources such as iron ore and coal, the secondary route is recycling based and uses scrap steel and electricity as main inputs. Comparing the carbon intensity (CO2 emissions per tonne of steel) of these two routes, the secondary, scrap based route emits about a quarter of the emissions of the primary route.

A large part of the emissions from steel making is generated during the conversion of iron ore to iron, a step the secondary route does not need. From a climate change perspective, purely scrap based steel production would therefore be superior.

However, to meet the current and rising future global steel demand, there is not enough scrap steel available. Steel, with its unique characteristics of durability and formability, will be required in the future in even greater volumes for a range of applications. These applications include the construction of infrastructure and buildings—which are crucial for the achievement of the Sustainable Development Goals set by the United Nations in 20151. Given the long time periods that steel products are used for, such as beams in a bridge or building, studies show that demand for steel will continue in the next decades in quantities that cannot be met by secondary steel alone.

We are committed to decarbonising the primary route of steel making as much as possible. Our pellets enable a cleaner steel production compared to the average European steel making process. We not only tackle climate change through the enabling effect of our product but also through our own efforts to reduce emissions. Click on any icon below of our downstream supply chain to find out more.


Source: 1United Nations Framework Convention on Climate Change, 2015, Paris Agreement