Sustainability trade-offs in the steel industry – A MRIO-based social impact assessment of bio-economy innovations in a belgian steel mill

Abstract

Current developments show that the true magnitude of global sustainability problems is often underestimated. In order to tackle these global problems, fundamental changes in consumption and production processes are needed. The steel industry is one of the main emitters of CO₂ and changes in production processes bear a potential for climate change mitigation. Sustainability assessments often focus on the environmental dimension, while social impacts associated with such changes remain under-researched. The present study examines potential social impacts of production changes (bio-economy transition) in a steel mill in Belgium using a multi-regional input-output (MRIO) analysis. Within this paper three indicators are presented: workers' compensation, employment and vulnerable employment. The results show that the demand for labour in Belgium increases in the scenario studied, while reductions in employment and compensation are to be expected for the majority of other regions. This emphasizes that such transitions can have both positive and negative impacts and that a ‘big picture’ is needed. Improvements in one aspect (e.g., environment) can lead to negative impacts in another (e.g., social), resulting in so-called sustainability trade-offs. It is crucial to consider impact dimensions in an integrated manner to enable the identification and discussion of sustainability trade-offs of transition pathways.