SUSTAINABILITY STRATEGIES AND DIGITAL TECHNOLOGIES IN THE STEEL SECTOR. A CASE STUDY

This research project has the goal to analyze the digital and sustainability challenges of a sector which is the backbone of the European Union (EU) economy: steel industries. The steel sector is embracing a deep transformation, not only due to the so-called twin transition (digital and environmental), but also from the perspective of social sustainability, which is pushing steel manufacturers to open up their labor market to new competences and talents. Started in 2011, as a transformation in the management of companies and manufacturing processes, Industry 4.0 has influenced the business models of European producers, by supporting the introduction of new sustainability paradigms, where energy efficiency, emissions reduction and Circular Economy have become the igniting elements. Nevertheless, an open field of research has remained about those technologies are affecting the sustainability strategy in the energy intensive sector, which is the most impacted by the EU sustainability challenging goals. Particularly, a further focus should be shed on how these technologies influence managerial decisions in these industries, and how managers themselves are contributing with their competences and vision to the achievement of these goals. The steel sector can be an interesting context to analyze in the energy intensive manufacturing domain. It is at the core of the EU economy, it has survived different economic cycle and it is now at a point of deep transformation concerning its technological innovation, digitization and environmental and social sustainability. This research is based on a specific case study, Feralpi Group, chosen for its sustainability engagement since undoubted times. The Feralpi Group is a family internationalized steel company, operating in seven nations, with 2,000 employees and with a turnover of 2 billion € yearly. The company was established in 1968 and since 2004, it has a successful and pioneering history in sustainability reporting and commitment, especially concerning environmental and social innovations. The first part of this research is rooted in the analysis of the impact of Industry 4.0 technologies in the environmental sustainability strategy of this sector, particularly looking for those technological and managerial elements bringing to the ambitious goals of carbon neutrality by 2030. Fundamental was to further analyze the existing framework of sustainability KPIs (Key Performance Indicators) which is still not integrated and which is the starting element to implement also those digital technologies. Indeed technological integration and application of Industry 4.0 technologies can be successful if information is exchanged on a common transparent base. Nevertheless, environmental sustainability is not the only important element in the strategy of steel industries. Social sustainability is gaining field and particularly one unexplored unexpected domain is developing, Diversity Equity and Inclusion (DEI) practices. Steel industries are still suffering a biased reputation due to some negative examples in the past. The attractiveness of the sector for young talents is still in difficulty and in a time where machines and plants are getting more digital and connected, this requires more transversal soft skills and more technical competences. In that sense, women represent a new source of change and potential development, in a sector which is historically male-dominated, with strong managerial and cultural consequences. If the future of steel is sustainable, this will be possible not only through digitization and environmental sustainability, but through a more inclusive and attractive working environment.