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Environmental and social due diligence in the iron and steel industry is a well-structured process for assessing an iron and steel asset’s environmental, social, and governance footprint, in compliance with the ESG performance standards. It is generally conducted before private-equity investors close transactions and disburse term loans, to reduce the cost of capital and to publish their Business Responsibility and Sustainability Report under SEBI’s mandate.
Conducting ESDD in the iron and steel industry, which is no longer a discretionary exercise, mandates inspection of around two dozen Indian statutes plus a parallel layer of international standards. Get connected with our Corpbiz team of experts, providing project sponsorship from scoping through ESAP implementation in India. Leading the industry with a 75% market share since 2018.
The benefits of conducting environmental and social due diligence in the iron and steel industry are as follows:
ESDD in the iron and steel industry helps secure capital structure, thereby facilitating growth-equity transactions early in the investment process and enabling informed decision-making.
Environmental and social due diligence in the iron and steel industry helps regulate investment options, thereby enabling the use of EDD metrics prescribed to identify more sustainable models and ESG performances.
Conducting ESDD in the iron and steel industry enhances brand value and goodwill, thereby showcasing commitment to corporate responsibility and sustainability.
Conducting Environmental and Social Due Diligence in the iron and steel industry helps identify and mitigate risks and liabilities associated with the project’s environmental and social aspects.
Performing environmental and social due diligence in the iron and steel industry helps identify opportunities to recycle steel dust and sludge, thereby recovering valuable metals and minimizing waste.
Get comprehensive Environmental and Social Due Diligence support for iron and steel manufacturing projects to identify ESG risks, improve sustainability performance, and ensure regulatory compliance.
The key aspects addressed while conducting ESDD in the iron and steel industry are as follows:
The entities eligible to apply for environmental and social due diligence in the iron and steel industry are as follows:
The following are some of the mandatory documents needed for conducting ESDD in the iron and steel industry:
Get expert assistance in preparing and reviewing environmental, ESG, labour, and regulatory documents required for Environmental and Social Due Diligence in the iron and steel industry.
The step-by-step process for conducting environmental and social due diligence in the iron and steel industry is as follows:
Corpbiz helps businesses manage the complete ESDD process, including risk assessment, site evaluation, mitigation planning, and ESG reporting for iron and steel projects.
The ESDD report of the iron and steel industry includes the following sections, as provided below:
Have a look at some of the important regulatory frameworks governing environmental and social due diligence in the iron and steel industry -
| Regulatory Standards | Year | Relevance to ESDD in the Iron and Steel Industry |
|---|---|---|
| Environmental Protection Act, 1986 | 1986 | Umbrella statute establishing overarching environmental & social compliance in the iron and steel manufacturing units. |
| Air (Prevention & Control) Act, 1981 | 1981 | Stack/ fugitive emissions standard regulating air emissions from blast furnaces, coke ovens, and captive power plants. |
| EIA Notification, 2006 | 2006 | Mandates EIA and environmental clearance for new steel plants and related infrastructure developments. |
| Hazardous & Other Waste (M&TM) Rules, 2016 | 2016 | Governs scoping, recycling, and disposal of hazardous wastes generated in the steel operations. |
| MMDR Act, 1957 (MCDR Act, 2017) | 1957 | Regulation to ensure sustainable mining practices and environmental restoration obligations. |
| Forest (Conservation) Act + Rules 2023 | 1980/ 2023 | Regulations ensure the diversion of forest land for mining or access to steel plants. |
| Forest Rights Act | 2006 | Act to recognise tribal rights, consent of Gram Sabha for project displacement. |
| Land Acquisition (LARR) Act, 2013 | 2013 | Act to regulate compensation, R&R, and social impact assessment in the iron and steel industry. |
| National Green Tribunal Act, 2010 | 2010 | Provides for the establishment of a forum for tackling environmental disputes and legal accountability. |
| Factories Act/ OSH Code | 1948/ 2020 | Regulation that maintains health, safety, and welfare facilities at integrated steel plants. |
| Labour Code (Consolidating 29 Act) | 2020 | The act governing OSH, wages, industrial relations, and social security is mandatory across all steel sites. |
| Child and Adolescent Labour (P&R) Act | 1986 | An act that prohibits child labour and regulates adolescent labour in hazardous industrial and mining activities. |
| DPDP Act, 2023 | 2023 | An act regulating the protection and processing of data collected by steel companies during ESDD processes. |
| SEBI (LODR) Regulations+ Business Responsibility & Sustainability Reporting Code | 2015 (BRSR Code 2021/22) | Regulation that requires listed entities to disclose ESG risks, sustainability performance, climate actions, and supply chain responsibility metrics. |
| Steel Scrap Recycling Policy, 2019 | 2019 | Policy drafted to promote scrap-based EAF route and reduce carbon emissions in the steel production. |
| National Steel Policy, 2017 | 2017 | Policy to promote sustainable steel production in an environmentally responsible manner. |
| Green Steel Mission (notifies 2024-25) | 2024-25 | Supports decarbonisation of steel manufacturing through green hydrogen adoption and transition toward green steel taxonomy. |
| Equator Principles 4 | 2024 | An international standard that supports ESG-based risk assessment for funding steel and iron manufacturing projects. |
| Responsible Steel Standard v2.1 | 2024 | Well-established global ESG benchmark for responsible steel production and ethical sourcing. |
| World Steel Association Sustainability Charter & Climate Action Programme | Ongoing Framework | Worldwide programme encouraging adoption of sustainable reporting and responsible operational practices. |
| Science-Based Target Initiative | 2023/ 2025 | An initiative to establish a scientifically aligned gas emissions reduction target in compliance with the global climate goals. |
| UN Guiding Principles on Business and Human Rights | 2011 | UN framework drafted to identify and mitigate human risks affecting workers linked to steel operations. |
| OECD Due Diligence Guidance for Responsible Business Conduct | 2018 | Guidelines supporting ESDD across mining, procurement, and management of the supply chain in the iron and steel industry. |
At Corpbiz, we have successfully prepared 500+ environmental and social due diligence reports across the iron and steel industry.
Connect with our team of 200+ ESDD specialists and ESG analysts having a deep understanding of environmental regulations and global ESG frameworks.
With 10+ years of experience in industrial compliance, our sustainability consultants help comply with the environmental, social, and sustainability obligations.
Connect with our team of experts with experience working on 50+ assignments integrated with the steel plants, iron units, mining projects, and steel infrastructure developments.
We guarantee faster delivery of reports, assessments, site evaluations, risk analysis, and reporting processes involved in the iron and steel industry.
Connect with our 24/7 compliance support team, ready to address client queries and provide continuous ESG compliance support throughout the ESDD lifecycle.
Connect Corpbiz to get a free initial consultation to understand better the client’s operational structure, project requirements, and ESG concerns.
We offer a customized pricing structure based on size, operational complexity, regulatory scope, and industry-specific due diligence requirements.
Enjoy global support services in compliance with the internationally recognized ESG frameworks and sustainability standards.
Connect with Corpbiz to identify ESG risks, strengthen environmental and social compliance, and improve sustainability performance through comprehensive ESDD solutions.
Legal Researcher
Written by Neha Dawra. Last updated on Jun 15 2026, 06:00 PM
Neha Dawra has 4+ years of experience in legal research and intellectual property advisory. Her expertise lies in analyzing IP laws, drafting structured legal content, and simplifying complex registration procedures into clear, simple insights.
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