Sidenor 2022 Sustainability Report

57 At internal level, we use the CO 2 emission index defined as: (KgCO 2 Scope 1 + Scope 2)/ tons of steel produced as a baseline indicator in order to assess performance in terms of emissions. During 2022, we achieved a significant reduction in this index thanks to the implementation of energy efficiency measures and the purchase of renewable energy: Evolution of Emissions* 2018 2019 2020 2021** 2022** 448 421 459 438 316 Scope 1: Direct greenhouse gas emissions: emissions resulting from combustion in boilers, furnaces, vehicles, etc., which are the property of or controlled by the entity concerned. Scope 2: Indirect greenhouse gas emissions linked to the generation of electricity acquired and consumed by the organization. 229 219 2018 221 200 2019 235 224 2020 219 219 2021 Direct emissions Indirect emissions *Result according to the scope defined for SIDENOR’s climate change objectives. **Result according to the scope defined in the Greenhouse Gas Protocol. Hydrogen as an alternative In order to reach the objectives defined within our climate change approach, it is necessary to search for alternative energy sources to natural gas, hydrogen (H 2 ) being the favorite energy carrier in the decarbonization of combustion processes. In this respect, Sidenor participates in various technological research projects, with the aim to:  Convert all its combustion processes to H 2 .  Eliminate 100% of natural gas combustion emissions. Industry: Minimum renewable hydrogen share of 25% 2030 95 221 Total Emissions 316 2022 H 2 O