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Case study

Cleveland-Cliffs Inc.: Enabling decarbonization with a just transition for workers

Cleveland-Cliffs Inc. is among the largest iron ore and steel producers in North America. Despite a mixed environmental track record, including a large chemical spill and subsequent settlements in 2019, Cleveland-Cliffs has emerged as a leader in the energy transition. As of 2023, Cleveland-Cliffs' tracked emissions have decreased by nearly 32% relative to 2017 levels, exceeding their goal of achieving 25% emissions reductions by 2030.i

Cleveland-Cliffs' strategy is multipronged, but the main source of its progress to date has been using natural gas in steel production and phasing out coal injection.iiThis technological transition allows plants to remain open while emissions are reduced, which is a priority both to downstream steel consumers and to the large unions supporting many of Cleveland-Cliffs' employees.  

Cleveland-Cliffs is also a leader in helping workers during energy transition. Since 2017, the Ashland Works and Mountain State Carbon facilities have permanently closed. Mountain State Carbon was closed as a direct result of shifting production from coal-based coke to a lower carbon model. However, the plant’s 280 former employees who were members of the United Steelworkers were offered employment at another nearby facility. This offer, in combination with the Steelworkers’ other areas of bargaining (e.g., severance pay), is one model of how a just transition for workers can be achieved along with decarbonization. In addition to its relationships with unions, Cleveland-Cliffs uses its relationships with federal agencies like the Department of Energy and the Department of Commerce to advocate for a clean energy transition. Cleveland-Cliffs is a participant in the Department of Energy’s Better Climate Challenge, which aims to build expertise through peer-to-peer sharing of climate action strategies.iii

Endnotes

  • iCleveland-Cliffs, "Emissions Reduction," https://www.clevelandcliffs.com/sustainability/environment/climate-change-commitment; Cleveland-Cliffs, "Cleveland-Cliffs Announces Commitment to Reduce Greenhouse Gas Emissions by 25 Percent by 2030," https://www.clevelandcliffs.com/investors/news-events/press-releases/detail/6/cleveland-cliffs-announces-commitment-to-reduce-greenhouse.
  • iiMatthew Moggridge, "Cleveland Cliffs hydrogen injection trial a success," https://www.steeltimesint.com/news/cleveland-cliffs-hydrogen-injection-trial-a-success.
  • iiiSee the Better Climate Challenge at https://betterbuildingssolutioncenter.energy.gov/climate-challenge.

Disclaimer

Being included as a case study does not constitute an endorsement of all the recommendations in the report.