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 shutter a coke plant in the port city of IJmuiden if toxic emissions weren’t substantially reduced.
Mumbai: Dutch nonprofit Stichting Frisse Wind.nu(SFW) is seeking €1.4 billion ($1.6 billion) in compensation from Tata Steel’s Netherlands(TSN) units, alleging that harmful emissions from its operations have caused environmental harm and health damage to nearby residents.
SFW has submitted the legal papers initiating the lawsuit at the District Court North Holland in Haarlem, according to a Tata Steel statement on Friday.
The claim targets the company’s operations in the coastal village of Velsen-Noord, seeking compensation on behalf of residents for increased susceptibility to health issues and diminished property values.
The company was examining the documents provided by SFW, was in discussion with counsels and assessing the potential implications of claim,said Tata Steel in its stock exchnage disclosures in India.
The proceedings initiated by SFW concern a collective action under the Dutch Act on Collective Settlement of Mass Claims (WAMCA). In this action, SFW states that it is acting on behalf of residents living in the vicinity of TSN.
“TSN is fully prepared to defend against the claim. In our assessment, SFW faces considerable challenges regarding both admissibility and the merits of its case,” said Tata Steel.
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 shutter a coke plant in the port city of 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.
Tata Steel said it is examining the documents and has “strong arguments“ to defend its position. The proceedings under the collective actions regime are conducted in two phases, each taking two to three years to conclude, the company said.
In September, Tata Steel announced plans for a project costing as much as €6.5 billion to cut emissions at its Netherlands operations, with the Dutch state contributing as much as €2 billion.
Health and a clean-living environment remain key priorities for TSN, as they do for local residents and stakeholders. Through
substantial investments TSN has achieved significant improvements in areas of concern for the neighbouring community over the past five years, said Tata Steel.
Additionally, TSN consistently ranks among the leading global blast furnace-based steel producers in terms of CO2 efficiency, with performance metrics well below both European and global averages. TSN continues to invest and work on initiatives to enhance the healthy living environment and to reduce impact of operations on the surrounding community, Tata Steel explained.
TSN is committed and will continue to focus on environmental preservation and addressing community concerns through collaboration with the Government and other stakeholders towards a sustainable future for all stakeholders, said Tata Steel.
With Bloomberg inputs