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HOUSTON and LONDON, Dec. 16, 2022 /PRNewswire/ -- 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:
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:
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.
About LyondellBasell
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.
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 release, 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, statements that refer to LyondellBasell's 2030 goals, net zero goal and related efforts, activities and expected capital expenditures 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 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; developments with respect to the European Union Emissions Trading System (EU ETS) and our ability reduce related costs; our ability to capture benefits under the U.S. Inflation Reduction Act; actions by our suppliers and customers, including the use of the Circulen family of products; our ability to procure renewable and low carbon energy and reduce our reliance on coal; competitive product and pricing pressures; labor conditions; operating interruptions; 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, 2021 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.
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 makes no representation or warranty as to these organization's use or definition of specific terms or recommendations or viability of any initiatives.
LyondellBasell's reported emissions and expected reductions are based on a combination of measured and estimated data and are based on industry standards and best practices, including the Greenhouse Gas Protocol and guidance from IPIECA and the American Petroleum Institute. Emissions reported are estimates only, and data is subject to change as methods, data quality, and technology improvements occur. LyondellBasell's goals to reduce emissions are good faith efforts based on current relevant data and methodology, which could be changed or refined as we evolve our approach to identifying, measuring and addressing emissions.
