Company announces a 30 percent absolute reduction in
emissions and a goal of 50 percent of electricity from renewable
energy by 2030
HOUSTON and LONDON, Sept. 29,
2021 /PRNewswire/ -- LyondellBasell (NYSE: LYB) today
announced its ambition of, and approach to, achieving net zero
emissions from global operations by 2050. As an interim step toward
2050, the company also announced a strategy to achieve an absolute
reduction of 30 percent in scope 1 and scope 2 emissions by
2030. These targets are consistent with efforts to support the
Paris Agreement's goal of limiting climate change by achieving net
zero for global greenhouse gas (GHG) emissions by mid-century.
"While climate science is extremely complex, there is little
doubt greenhouse gases contribute to global warming. The UN's
Intergovernmental Panel on Climate Change report is the most recent
indicator that firm commitments, collective action and a sense of
urgency are needed to help address the global challenge of climate
change," said Bob Patel, CEO of
LyondellBasell. "To ensure that LyondellBasell's targets are
ambitious and achievable, we have developed a strategy to reduce
our emissions footprint by 30 percent by 2030 with the goal of
reaching net zero emissions by 2050. We are confident in our
approach and committed to doing our part."
Pathway to net zero
In 2019, LyondellBasell announced
an initial GHG emissions reduction target of 15 percent per ton of
product produced by 2030 (relative to 2015 levels). At the time,
the company stated its intention to establish a more ambitious
target. As such, the company has developed an achievable pathway to
an absolute reduction in scope 1 and scope 2 GHG emissions by 30
percent (relative to 2020 levels). This approach includes:
- Enhanced energy management and low emission steam;
- Flare minimization;
- Use of lower-emitting fuels;
- Process electrification and furnace upgrades; and
- A minimum of 50 percent of electricity procured from renewable
sources.
2030 to 2050
LyondellBasell's approach to achieving
net zero emissions for its scope 1 and scope 2 emissions by 2050
will build upon the progress achieved over the balance of this
decade. In addition to these strategies, the company has begun
evaluating a portfolio of technology options that could be deployed
across the company's manufacturing footprint, including cracker
electrification, use of hydrogen, carbon capture and storage, and
carbon utilization.
In addition, the company is actively embedding emissions
reduction efforts into certain business processes including
long-range planning and risk management, and identifying
collaboration opportunities across multiple sectors to accelerate
the scale up and deployment of breakthrough technologies. The
company is committed to transparency by reporting our climate risk
as well as our progress in reducing GHG emissions annually in the
CDP climate change questionnaire and according to the Taskforce on
Climate-Related Financial Disclosure (TCFD) guidelines. In support
of this, today the company issued its first TCFD index. These
reports can be found here.
Actions to support our ambitions
Concurrent with the
announcement of its revised emissions reduction goals,
LyondellBasell also announced:
- It has launched a global renewable energy strategy: The
company is currently advancing a number of opportunities to secure
electricity generated by wind and solar through corporate power
purchase agreements in the United
States and Europe.
LyondellBasell aims to reduce and/or offset the CO2
associated with a minimum of 50 percent of its existing electricity
consumption. This amounts to 4.9 million megawatt hours per year
from renewable sources by 2030. The company estimates this will
reduce approximately 2 million metric tons of CO2 from
the company's scope 2 emissions.
- A roadmap to phase out coal at its Wesseling, Germany, production site by 2023: The
company has signed an agreement with Evonik, a German specialty
chemical company, to purchase high-pressure steam generated from
natural gas for use at its Wesseling olefin and polyolefin
production site. This enables LyondellBasell's Wesseling site to
phase-out coal usage at its on-site power plant by December 2023. The agreement integrates two
neighboring chemical production sites to optimize steam supply and
demand, which improves energy efficiency for both partners. The
project is expected to reduce the site's CO2 emissions
by approximately 170,000 metric tons per year.
- Flare systems assessment: In 2020, the company expanded
its global assessment of flare systems at its major sites across
its technologies. This project aims to reduce flaring, and optimize
product recovery rates and flare operations. Projects implemented
at its European and U.S. sites in 2020 resulted in a reduction in
energy use of 1.27 million gigajoules and an associated emissions
reduction of approximately 79,500 metric tons of
CO2.
- Support for public policies that reduce global
emissions: Recognizing the important role of sound public
policy in reducing global emissions at scale, the company has
articulated its support for policies that would establish a fair,
global carbon price; promote renewables and energy infrastructure
development; accelerate the deployment of new, carbon-reducing
technologies; and, reward companies for adopting carbon-reducing
technologies. More information on these policies can be found
here.
Sustainability priorities
In addition to working to
address climate change, LyondellBasell has prioritized actions to
help eliminate plastic waste from the environment, advance a
circular economy and support a thriving society. For more
information, click here.
About LyondellBasell
LyondellBasell (NYSE: LYB)
is one of the largest plastics, chemicals and refining companies in
the world. Driven by its employees around the globe, LyondellBasell
produces materials and products that are key to advancing solutions
to modern challenges like enhancing food safety through lightweight
and flexible packaging, protecting the purity of water supplies
through stronger and more versatile pipes, improving the safety,
comfort and fuel efficiency of many of the cars and trucks on the
road, and ensuring the safe and effective functionality in
electronics and appliances. LyondellBasell sells products into more
than 100 countries and is the world's largest producer of
polypropylene compounds and the largest licensor of polyolefin
technologies. In 2021, LyondellBasell was named to FORTUNE
Magazine's list of the "World's Most Admired Companies" for the
fourth consecutive year.
More information about LyondellBasell can be found
at www.lyondellbasell.com. Information on this website is not
a part of this release.
Forward-Looking Statements
The statements in this
release relating to matters that are not historical facts are
forward-looking statements. These forward-looking statements are
based upon the expectations and assumptions of management of
LyondellBasell, including expectations based on third-party
information and projections, which are believed to be
reasonable at the time made and are subject to significant risks
and uncertainties. When used in this presentation, the words
"estimate," "believe," "continue," "could," "intend," "may,"
"plan," "potential," "strategy," "goal," "ambition," ""achieve,"
"pathway," "enable," "target," "should," "will," "expect," and
similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
such identifying words. In addition, any statements that refer to
LyondellBasell's Net Zero goal or interim 2030 goals and related
efforts are forward-looking statements. Actual results could differ
materially based on factors including, but not limited to, market
conditions, the business cyclicality of the chemical, polymers and
refining industries; the availability, cost and price volatility of
raw materials and utilities, particularly the cost of oil, natural
gas, and associated natural gas liquids; our ability to meet our
sustainability goals, including the ability to operate
safely, increase production of recycled and renewable-based
polymers, and reduce our greenhouse gas emissions and energy usage;
implementation of new technology and the ability to realize the
expected benefits therefrom; our ability to access capital to fund
our climate related initiatives; actions by our suppliers and
customers, including the use of the Circulen family of
products; our ability to procure renewable energy and reduce our
reliance on coal; uncertainties and impacts related to the extent
and duration of the pandemic; competitive product and pricing
pressures; labor conditions; operating interruptions (including
leaks, explosions, fires, weather-related incidents, mechanical
failure, unscheduled downtime, supplier disruptions, labor
shortages, strikes, work stoppages or other labor difficulties,
transportation interruptions, spills and releases and other
environmental risks); the supply/demand balances for our and our
joint ventures' products, and the related effects of industry
production capacities and operating rates; our ability to manage
costs; future financial and operating results; climate change
developments; legal and environmental proceedings; tax rulings,
consequences or proceedings; technological developments, and our
ability to develop new products and process technologies; and
potential governmental regulatory actions, including climate
related disclosure requirements. Additional factors that could
cause results to differ materially from those described in the
forward-looking statements can be found in the "Risk Factors"
section of our Form 10-K for the year ended December 31, 2020 and in our subsequent filings
with the SEC, which can be found at www.LyondellBasell.com on
the Investor Relations page and on the Securities and Exchange
Commission's website at www.sec.gov.
Given these risks and uncertainties, readers are cautioned not
to place undue reliance on such forward-looking statements, and are
urged to carefully review and consider the disclosures, including
but not limited to those regarding the risks we face, in the
documents we file from time to time with the Securities and
Exchange Commission. There is no assurance that any of
the actions, events or results of the forward-looking statements
will occur, or if any of them do, what impact they will have on our
ability to achieve our strategies or goals, our results of
operations or our financial condition. Many of the standards,
metrics, technology and assumptions used in preparing the company's
goals and strategy continue to evolve and are based on management
assumptions believed to be reasonable at the time of preparation
but should not be considered guarantees. Forward-looking statements
speak only as of the date they were made and are based on the
estimates and opinions of management of LyondellBasell at the time
the statements are made. LyondellBasell does not assume, and
expressly disclaims, any obligation to update forward-looking
statements should circumstances or management's estimates or
opinions change, except as required by law. This release refers to
certain frameworks and initiatives. In doing so, the company does
not intend to endorse or adopt and is not endorsing or adopting
these frameworks permanently. The company is not obligating itself
to comply with any specific recommendations or to provide any
specific disclosure in the future (including with respect to the
goals and progress reported herein), except as it determines to do
so. The company makes no representation or warranty as to these
organization's use or definition of specific terms or
recommendations or viability of any initiatives.
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SOURCE LyondellBasell Industries