Kingfisher – Fan Su – 2025
Summary
Fan Su developed a comprehensive business case for transitioning Kingfisher’s steel and aluminum procurement to low-embodied carbon alternatives, demonstrating significant potential cost savings and substantial carbon reduction to support net-zero commitments and CBAM compliance through quantitative analysis, supplier mapping, and a custom CBAM tax calculator.
Goals
Fan’s fellowship aimed to support Kingfisher’s decarbonization targets by creating a data-driven business case for switching from conventional steel and aluminum to low-carbon alternatives. With Kingfisher committed to net-zero by 2040 (Scope 1&2) and 2050 (Scope 3), plus 46% Scope 3 reduction by 2030, Fan focused on steel and aluminum materials widely used across SHBO and HKBO operations that will face EU Carbon Border Adjustment Mechanism taxes. The goal was to demonstrate that sustainable procurement could simultaneously reduce emissions and costs while meeting SBTi requirements.
Solutions
Fan conducted a comprehensive carbon footprint analysis comparing conventional methods with low-carbon alternatives, showing dramatically lower emissions for EAF steel and recycled aluminum compared to traditional production methods. Key deliverables included: developing a CBAM tax calculator to model regulatory scenarios and carbon pricing impacts; creating detailed cost-benefit analyses demonstrating EAF steel advantages under various market conditions; establishing connections with major Chinese steel mills and mapping supplier geographical distribution; analyzing certification pathways through ISO 14067 standards, EPD, and PCF requirements; producing comprehensive presentation materials for steel and aluminum transitions; and participating in metallurgical industry exhibitions to understand market dynamics. The work integrated technical analysis with practical procurement strategies, ensuring recommendations were both environmentally beneficial and economically viable.
Potential Impact
The analysis demonstrates substantial potential cost savings over the coming decade through material switching, with EAF steel remaining cost-effective even at considerable price premiums. This transition would deliver significant reductions in embodied carbon emissions, representing a meaningful portion of Kingfisher’s total emissions and contributing substantially toward their ambitious Scope 3 reduction targets. The CBAM calculator provides ongoing decision-making support for procurement teams, while established supplier relationships create clear implementation pathways. The work delivers actionable strategies that align environmental goals with business objectives, ensuring high feasibility for achieving the Science-Based Targets Initiative (SBTi) commitments.
