A Dutch non-profit organisation has dragged Tata Steel to court, seeking $1.6 billion in compensation for alleged environmental damages caused by the Netherlands operations of the Indian steelmaker. The non-profit Stichting Frisse Wind.nu (SFW) submitted legal papers initiating the lawsuit at the district court North Holland in Haarlem, Tata Steel told the bourses.
The claim targets Tata Steel Netherland’s operations in the coastal village of Velsen-Noord, located close to the company’s main steelmaking site in Ijmuiden, seeking compensation on behalf of residents for increased susceptibility to health issues and diminished property values.
Tata Steel said the case lacked merit. “SFW has provided no supporting evidence for the claim, making it unsubstantiated and speculative. TSN rejects their claims being without any basis,” it said.
The class action suit by the non-profit comes at a time when Tata Steel is in the middle of a major decarbonisation journey in Europe. In UK, the transformation is already set in motion with a coal-based plant being replaced with electric arc furnace based steel capacity with lower carbon footprint.
In the Netherlands too, Tata Steel is courting support worth €2 billion from the Dutch government for its decarbonisation roadmap. Unveiled in September, the multi-year project is likely to cost around €6.5 billion.
As part of the Green Steel Plan, developed through a joint letter of intent with the Dutch government, Tata Steel is engaged with stakeholders to define additional targeted measures that extend further beyond legal requirements.
Alongside decarbonisation initiatives intended to promote a healthier living environment, TSN is dedicated to minimising its contributions to coarse and fine particulate matter (PM10) emissions, as well as reducing annual releases of substances of very high concern, NOx, SO₂, odours, and noise, it said on Friday.
Even today, the company says TSN operations ranks consistently among the leading global blast furnace-based steel producers in terms of CO2 efficiency, with performance metrics well below both European and global averages.
The case adds to mounting scrutiny on Tata Steel’s European operations for their environmental impacts. Dutch regulators escalated pressure on the company in 2024, threatening fines of nearly €27 million and warning they would close down a coke oven plant in Ijmuiden if toxic emissions weren’t substantially reduced.
In 2022, Dutch prosecutors started investigating whether the company and one of its partners deliberately contaminated soil, air and water with hazardous substances.
The present case filed by the non-profit is likely to play out between 4-6 years, underlining there is unlikely to be any material financial impact on Tata Steel’s finances.