Solvay targets carbon neutrality before 2050
October 28 2021 - 1:00AM
Solvay targets carbon neutrality before 2050
- All businesses other than soda ash to achieve carbon
neutrality by 2040 with an investment up to €1
billion
- Soda ash to complete carbon neutrality before 2050 with
identified investments of approximately €1 billion by
2040
- Investments expected to generate compelling economic
returns
Brussels, October 28, 2021
Solvay announced today its plans to reach carbon neutrality
before 20501. This represents the next stage in the company’s
ongoing sustainability journey and builds on the 2030 targets set
out in its sustainability roadmap, Solvay One Planet, launched in
January 2020. As part of its roadmap, Solvay is upgrading its
greenhouse gas emissions reduction target to -30% by 2030 (from
-26% initially).
Meeting carbon neutrality in the future requires Solvay’s
investment in innovation today. Solvay will focus its efforts on
maximizing electrification and clean energy, such as solar power
and sustainable biomass use across its plants, as well as
facilitating process innovations. Furthermore, the infrastructural,
regulatory and macroeconomic levers enabled by public policies will
be a critical component in Solvay's investment decisions in order
to achieve these ambitions. Partnerships with authorities and other
stakeholders will be key drivers towards an affordable and
competitive transition to cleaner energy across Solvay's entire
value chain.
Ilham Kadri, CEO of Solvay, said: “Since the launch of Solvay
One Planet, we have delivered against the Paris Agreement and
today’s carbon neutrality announcement is yet another milestone in
our journey, including our decision to phase out coal in the second
soda ash plant in just two years. Our new carbon neutrality
roadmap, backed by meaningful investments, will prove yet again
that targeted action on climate is good for the planet and good for
business — and we will continually report progress against these
targets. At the same time, we are preparing our scope 3 commitments
with the Science-Based Targets initiative (SBTi). We believe that
sustainability is profitability, and we will continue to develop
our innovation pipeline to deliver the sustainable solutions our
customers need for tomorrow's future technologies in areas such as
electrification, lightweighting and green hydrogen.”
Laying the groundwork for a carbon-neutral
future
Solvay’s roadmap includes a three phase approach spanning three
decades, with the primary focus on switching energy sources to cut
emissions and improve the Group's carbon footprint across all its
businesses and operational activities.
Phase 1: 2020 to 2030
- Solvay aligned its emission reduction targets with the Paris
Agreement within the holistic Solvay One Planet program. At the end
of 2020, 8% structural reductions of emissions were delivered
against the 2018 baseline.
- In October 2020, Solvay joined the Science-Based Targets
initiative and is currently working to define its objectives for
scope 3 emissions2. Solvay expects to finalize scope 3 targets and
communicate more on these ambitions in 2022.
- To date, 36 emission reduction projects are underway
representing 2.4 megatons of CO2 annually, equivalent to cutting
emissions of 1.3 million carbon fuel vehicles each year.
- Solvay has placed among the top 10 companies in the U.S. for
installed solar power, having transitioned three of its core U.S.
businesses across 17 sites to 100% renewable electricity as of
January 2021.
- Solvay is also a proud member of Apple's Supplier Clean Energy
Program, and has successfully transitioned its Apple-related
operations to 100% green power.
- Solvay's commitment to phase out its use of coal by 2030 is
well underway in the soda ash business.
- Announced earlier this year, Solvay's soda ash plant in
Rheinberg, Germany, is set to become the world's first soda ash
plant to be powered primarily by renewable energy by 2025 thanks to
sustainable biomass derived from discarded wood chips, which will
cut 4% of the Group’s total emissions.
- On October 27, 2021, Solvay's board
of directors approved the soda ash site in Dombasle, France, to
transition to primarily refuse-derived fuel3 as early as 2024,
which will cut another 2% of the Group’s total emissions.
Phase 2: 2030 to 2040
- Solvay will continue to execute new energy transition projects
for the Group with the target to reach full neutrality in all
businesses outside of soda ash.
- Solvay will continue to deploy and accelerate electrification
for low- to medium-energy intensive businesses.
- The company will execute on process
innovations and new energy technologies, particularly for
emission-intensive businesses and sites.
Phase 3: 2040 to 2050
- Solvay's roadmap continues with remaining “hard-to-abate” soda
ash sites to reach neutrality before 2050.
- Solvay expects to use offsets for a
volume up to 10% (of the 2018 baseline) primarily through
nature-based offsetting programs adhering to high-quality
sustainability standards and in partnership with NGOs.
Investments
Solvay plans to invest up to €1 billion to reach carbon
neutrality by 2040 for all its businesses other than soda ash.
Additional investments of approximately €1 billion have been
identified for soda ash to pave its path towards full carbon
neutrality for the Group before 2050. These investments will be
partially supported by non-recourse financing, enabling Solvay to
also continue to invest in its growth initiatives. Further studies
on technology innovation will determine the future investment needs
beyond 2040. The company has also raised its internal carbon price
from €50 to €100 per metric ton of CO2, ensuring that future
investments are oriented towards zero-emission projects. Solvay
fully expects the investments will be value accretive, generating
returns well in excess of the Group's cost of capital, and are
estimated to represent around 10% on average of annual capex
spend.
Safe harbor
This press release may contain forward-looking information.
Forward-looking statements describe expectations, plans,
strategies, goals, future events or intentions. The achievement of
forward-looking statements contained in this press release is
subject to risks and uncertainties relating to a number of factors,
including general economic factors, interest rate and foreign
currency exchange rate fluctuations, changing market conditions,
product competition, the nature of product development, impact of
acquisitions and divestitures, restructurings, products
withdrawals, regulatory approval processes, all-in scenario of
R&I projects and other unusual items. Consequently, actual
results or future events may differ materially from those expressed
or implied by such forward-looking statements. Should known or
unknown risks or uncertainties materialize, or should our
assumptions prove inaccurate, actual results could vary materially
from those anticipated. The Company undertakes no obligation to
publicly update or revise any forward-looking statements.
1 The plans cover all scope 1 and 2 emissions produced by its
global operations. Scope 1 covers direct emissions from owned or
controlled sources. Scope 2 covers indirect emissions from the
generation of purchased energy(e.g., electricity, steam, heating,
cooling) consumed by the company.2 Scope 3 covers all other impacts
upstream and downstream the Group's value chain.3 Refuse-derived
fuel (RDF) comprises non-recyclable waste (industrial, commercial
and municipal) that can only be thermally valorized.
- Solvay targets carbon neutrality before 2050
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