According to the Australasian Centre for Corporate Responsibility (ACCR), Japanese steelmaker, the world's fourth-largest steel company, buying United States Steel (X.US) faces rising decarbonization costs, urging the company to deal with the impact of the merger on climate goals.

In 2021, Japanese steelmaker proposed that the decarbonization cost would involve up to $34.8 billion in capital expenditures by 2050, including research and development expenditures, some of which would be offset by government subsidies.

ACCR pointed out that acquiring United States Steel adds 11 blast furnaces to the company, which almost inevitably increases decarbonization costs. ACCR holds less than 1% of shares of Japanese steelmaker. The organization and Corporate Action Japan (CAJ) and Tokio Marine Asset Management Investment Advisory issued a report, urging Japanese steelmaker to improve decarbonization strategies. CAJ requires the company to provide more information on carbon emission targets to shareholders.

Last year, Japanese steelmaker announced the $15 billion acquisition of United States Steel, which was opposed by the US White House and labor organizations.