LyondellBasell Announces Goal of Achieving Net Zero Emissions by 2050

Rhea-AI Summary

LyondellBasell has set an ambitious target to achieve net zero emissions by 2050, with an interim goal of reducing scope 1 and scope 2 emissions by 30% by 2030. The company plans to source at least 50% of its electricity from renewable sources by 2030, aiming to eliminate around 2 million metric tons of CO2 emissions. Key strategies include advanced energy management, flare minimization, and a roadmap to phase out coal usage in Germany. These sustainability initiatives underscore LyondellBasell's commitment to combating climate change and aligning with the Paris Agreement.

Positive

• 30% reduction in scope 1 and scope 2 emissions targeted by 2030.
• Commitment to achieve net zero emissions by 2050.
• At least 50% of electricity to be sourced from renewable energy by 2030, reducing 2 million metric tons of CO2 emissions.
• Strategic initiatives include enhancing energy management and process electrification.

Negative

• None.

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

FAQ

What is LyondellBasell's emissions reduction target for 2030?

LyondellBasell aims for a 30% reduction in scope 1 and scope 2 emissions by 2030.

When does LyondellBasell plan to achieve net zero emissions?

LyondellBasell plans to achieve net zero emissions by 2050.

What percentage of electricity will LyondellBasell source from renewables by 2030?

LyondellBasell aims to source at least 50% of its electricity from renewable sources by 2030.

How much CO2 emission reduction is expected from LyondellBasell's renewable energy strategy?

The renewable energy strategy is expected to reduce approximately 2 million metric tons of CO2 emissions.

Which site will LyondellBasell phase out coal usage at by December 2023?

LyondellBasell will phase out coal usage at its Wesseling production site in Germany by December 2023.