LyondellBasell (NYSE: LYB), a leader in the global chemical industry, today announced it will increase the company’s 2030 greenhouse gas (GHG) emissions reduction target for scope 1 and scope 2 emissions from 30 percent to 42 percent, relative to a 2020 baseline. In addition, the company will establish a 2030 scope 3 GHG emissions reduction target of 30 percent, relative to a 2020 baseline and in accordance with guidelines from the Science Based Targets Initiative (SBTi). The company’s previously announced goal to achieve net zero scope 1 and 2 GHG emissions from global operations by 2050 remains unchanged.
“We believe a more ambitious GHG reduction target is achievable and will create substantial value for all of our stakeholders,” said Peter Vanacker, CEO of LyondellBasell. “Reducing emissions while simultaneously building a world-class Circular and Low Carbon Solutions business is needed to meet the demands we are seeing throughout the value chain. This approach is not only good for society, but also good for business. We will follow a disciplined approach to prioritize high-return projects and will continue to meet our return expectations.”
Estimates of the capital expenditures necessary to achieve its emissions reduction goals are built into the company’s long-range plan. These investments are not expected to represent a significant portion of total capital expenditures over the next three years, nor change the capital allocation strategy. While many of the GHG emissions reduction projects are still in the early stages of development, the company will evaluate, pursue and prioritize its GHG emission investments based on each project’s rate of return.
LyondellBasell will submit its climate goals to SBTi to be validated against SBTi guidance. The SBTi defines and promotes best practice for corporate GHG emissions target setting aligned to the latest climate science.
In the near term, LyondellBasell continues to execute its previously announced initiatives to reduce emissions, including:
- Startup of four power purchase agreements in Texas, representing approximately 400 thousand metric tons of the company’s scope 2 GHG emissions annually
- Phasing out use of coal at its Wesseling, Germany site, reducing the site’s scope 2 emissions by about 170 thousand metric tons annually
As announced in April 2022, the company is on track to close its Houston refinery by the end of December 2023. This is expected to reduce scope 1 and scope 2 GHG emissions by more than 3 million metric tons annually and scope 3 emissions by approximately 40 million metric tons annually.
LyondellBasell also aims to secure at least 75 percent of its global electricity from low carbon power by 2030, a majority of which will come from its existing goal to procure a minimum of 50 percent of global electricity from renewable sources.
Many of the GHG emissions reduction initiatives planned for implementation by 2030 will begin in 2024 and beyond as the company leverages existing asset turnaround schedules for its largest sites, including:
- Process heat recovery projects, electrification of a large process turbine and optimization of steam demand at its site in Wesseling, Germany in 2024
- Optimization of heated equipment through advanced digitization, efficiency improvements and fuel management at its site in Channelview, Texas in 2025
In addition, the company’s previously announced Circular and Low Carbon Solutions business will focus on achieving its goal to produce and market 2 million metric tons of recycled and renewable-based polymers annually by 2030, further reducing scope 3 emissions.
Value chain collaboration remains a top priority for the company. Most recently, LyondellBasell joined the World Economic Forum Low Carbon Emitting Technologies (LCET) group to help accelerate the development and upscaling of the low carbon emitting technologies required for the chemical industry and related value chains to reach net zero emissions by 2050.
Additional information regarding the company’s transition plan, climate risk and capital allocation approach and its alignment to the Task Force on Climate-Related Financial Disclosures (TCFD) requirements will be included in the 2022 LyondellBasell Sustainability Report. For more information on the company’s approach to sustainability, click here.
As a leader in the global chemical industry, LyondellBasell strives every day to be the safest, best operated and most valued company in our industry. The company’s products, materials and technologies are advancing sustainable solutions for food safety, access to clean water, healthcare and fuel efficiency in more than 100 international markets. LyondellBasell places high priority on diversity, equity and inclusion and is Advancing Good with an emphasis on our planet, the communities where we operate and our future workforce. The company takes great pride in its world-class technology and customer focus. LyondellBasell has stepped up its circularity and climate ambitions and actions to address the global challenges of plastic waste and decarbonization. In 2022, LyondellBasell was named as one of FORTUNE Magazine’s “World’s Most Admired Companies” for the fifth consecutive year. For more information, please visit www.LyondellBasell.com or follow @LyondellBasell on LinkedIn.