Steel & Tube reports increased emissions as it expands fleet, eyes decarbonization

Steel & Tube Holdings Limited reported its FY25 climate-related disclosures, emphasizing its commitment to aligning with New Zealand's 2050 net-zero emissions target. The company’s Scope 1 and 2 greenhouse gas (GHG) emissions for FY25 increased to 2,458 tCO2e, up from 1,879 tCO2e in FY24. This rise was primarily due to the expansion of its truck fleet and a 42% increase in diesel consumption. Emissions intensity (kgCO2e per tonne sold) also rose from 16.26 in FY24 to 24.78 in FY25. The company’s FY24 Scope 2 emissions were restated due to the retrospective application of the 2024 MfE emission factor.

The company's climate risk assessment, conducted with Deloitte, identified transition risks and opportunities. Material short-term risks primarily relate to the transition to a low-emissions economy. Steel & Tube acquired Perry Metal Protection, Grating, and Waikato Sandblasting on May 1, 2025, which will trigger a base year recalculation in FY26, incorporating the acquired entities’ emissions. Scope 3 emissions reporting is under development, with a comprehensive inventory planned for FY26.

Steel & Tube has not set climate-related targets for FY25 but is focused on developing an accurate emissions profile to inform its transition planning. The company noted that 48% of its assets or business activities are currently exposed to transition risks.