Efforts to Reduce Scope 3 Emissions

In order to steadily reduce emissions in Scope 3, Category 1 (products and services purchased), we are engaged in dialogue with major suppliers of iron ore and coking coal.

We interviewed major suppliers who account for more than 70% (based on our purchase volumes) of the raw materials purchased (iron ore and coking coal) about their actual Scope 1+2 emissions and their reduction plans. We confirmed through the dialogue that many suppliers are working to achieve net zero Scope 1+2 emissions by 2050.

We will continue to promote dialogues with our suppliers on climate change initiatives and other issues.

In fiscal 2024, Nippon Steel maintained a high modal shift rate of 98%. We are also working to reduce CO2 emissions by raising efficiency in logistics including the use of larger vessels and by introducing hybrid cargo vessels equipped with lithium-ion batteries.

As of June 2025, the number of our cargo vessels that have been rated the highest in the Coastal Ship Energy Conservation Rating of the Ministry of Land, Infrastructure, Transport and Tourism has reached 26.

We will continue to cooperate with relevant ministries, agencies, and organizations to promote the use of ships utilizing alternative fuels and other initiatives, to reduce greenhouse gas emissions in marine transportation.