ESG Today writes that a large share of KIRCHHOFF's supply chain is made of steel and it accounts for half of the company's acquisitions of various materials. Due to this, around 90% of the supplier's CO2 emissions are related to the use of traditionally-made steel and aluminum.

Michael Rank, Global Executive Vice President Procurement at KIRCHHOFF, said that "this matches our ambitions to be in the forefront of sustainable development in the industry, as well as our legacy where sustainability has always been important."

He added that the customers of KIRCHHOFF also "want to see products with lower CO2 footprint."

Steelmaking is one of the hardest-to-abate sectors in the world and using fossil fuels to manufacture steel releases around 7-9% of the world's total share of carbon dioxide.

H2 Green Steel is a Swedish sustainable steel manufacturer who signed procurement agreements with multiple big players in the automotive industry.

German sports car manufacturer Porsche is one of the more notable ones to announce a deal with H2 Green Steel for annual deliveries of green steel amounting to 35.000 tons back in November of 2023.

Porsche officials stated back in 2021 that the company aims to become carbon neutral by 2030 and it tried reducing the use of steel in favor of aluminum for lighter materials. Still, engineers concluded that steel is crucial for the overall structure of the vehicles and can't be completely replaced.

Stephan Flapper, Head of Commercial, H2 Green Steel, said that "suppliers to the automotive industry have to follow the ambitious plans that progressive car makers have set out. However, we also have a group of companies that run before the rest as they follow their own compass. KIRCHHOFF Automotive is one such company. They combine their impressive legacy with a strong direction for the future where sustainable products are as much a competitive edge, as they are important for the climate and sustainability targets."