Why New Zealand Needs a Digital Steel Passport

New Zealand’s construction industry is facing unprecedented pressure. Costs are rising. Clients and regulators are demanding sustainable solutions. Supply chains are volatile. At the same time, there is a growing expectation to deliver projects that are lower carbon, more resource-efficient, and future-ready. 

Steel is central to that challenge. It is one of our most important construction materials, yet much of its value is lost at the end of a project’s life because we do not have the systems in place to track, recover, and reuse it. The Digital Steel Passport (DSP) changes that. This research project is being funded by the Heavy Engineering Research Levy administered by HERA and the Building Research Levy administered by BRANZ.

What is the Digital Steel Passport? 

The DSP is a traceable digital file that stays with a steel product throughout its life. It captures traceable, verifiable information including: 

• Material composition and recycled content 

• Mechanical properties such as tensile and yield strength 

• Dimensional tolerances and fabrication details 

• Coating types, condition, and maintenance records 

• Welding history and inspection results 

• Significant life events such as exposure to seismic activity or fire 

• End-of-life options and recovery instructions 

This record is supported by documentation such as mill certificates, inspection reports, and environmental product declarations. Data can be added at each stage of the lifecycle including manufacturing, erection, maintenance, and deconstruction so designers, builders, and asset owners can make informed decisions on safe reuse. 

In practice, it means a beam used today could be recovered decades from now with all the critical data needed to verify its performance and compliance, ready for reuse rather than downcycling or landfill. 

Why it matters for New Zealand 

Research shows the potential impact is significant. Reusing structural steel can save up to 97 percent of carbon emissions compared to producing new steel. A 30 percent reuse rate and a modest increase in scrap collection could reduce steel waste to landfill from 15 percent to 5 percent. On the Civic Administration Building project in Auckland, the absence of a DSP added around $60,000 in costs and more than three months to the programme. 

By making it easier to identify, recover, and reuse steel, the DSP supports our national goals to reduce emissions, improve resource efficiency, and strengthen the circular economy. It also improves material security. New Zealand imports hundreds of millions of dollars’ worth of steel each year. Increasing domestic reuse can reduce reliance on imports and keep more value in the local economy. 

Learning from global progress 

The DSP is part of a wider global move toward Digital Product Passports (DPPs). The European Union’s Ecodesign for Sustainable Products Regulation will require DPPs for many products from 2027. Manufacturers and suppliers who can prove material provenance, performance, and sustainability credentials will be better placed in these markets. 

The Ellen MacArthur Foundation has shown that 45 percent of the emissions reductions needed for net zero must come from changing how products are made and used. For steel, keeping it in circulation longer could avoid 500 million tonnes of new primary production by 2050, preventing over a billion tonnes of CO₂ emissions annually. 

Australia is also moving quickly, with recycled content traceability and circular procurement frameworks already in place. Aligning with these will ensure New Zealand’s DSP is interoperable and regionally relevant. 

Responding to industry questions 

Through HERA’s consultations and webinars, industry has been clear about what will determine adoption: 

• Cost and integration: The DSP must connect with Building Information Modelling (BIM) and procurement systems without adding unnecessary administration 

• Data quality and security: Information must be accurate, current, and protected under strong privacy and governance frameworks 

• Compliance and reuse: DSP data must align with New Zealand standards and close the current regulatory gaps for reusing unidentified steel 

• Verification: Environmental and technical claims must be backed by accepted standards, third-party certifications, or transparent declarations 

These are not just technical considerations. They are essential to ensuring the DSP delivers value in real projects. 

More than steel 

While the DSP focuses on steel, its framework can be adapted for other construction materials. Once proven, it could be applied to concrete, timber, and composites, supporting a whole-of-sector shift toward circular design and recovery. 

The opportunity ahead 

The Digital Steel Passport is not a cure-all, but it is a practical, data-driven tool that can be implemented now. It will reduce waste, cut embodied carbon, save time and money, and strengthen New Zealand’s competitiveness in markets demanding transparency and sustainability. 

Most importantly, it will help us get more value from the steel we already have. That is a win for the economy, the environment, and the future of construction in Aotearoa.