Nowadays, environmental issues are considered as the most important factor for competition. In this era, just modern companies can compete with each other and any environment friendly firm plays essential role in gaining more market share. Besides, the 21st century is the era of modern steel and Iranian iron steel industry plays important role in the domestic and international trade only through emphasizing on protection of environment. Therefore, designing a model for strengthening the environmental performance in steel industries is necessary to get some advantages such as energy saving, reducing pollutants, eliminating (declining) of waste, creating value for customers and improving the productivity. In this research, first, we explain green supply chain management and then grey-based DEMATEL Technique is used to identify different factors influencing the green supply chain. Eventually, the green supply chain model (GSCM) is applied for the steel industry. The result determines the most prominence factors of GSCM in Yazd Steel Industry.