Environmental strategy – emerging risk
This risk was added to the main risks in 2016 because it was becoming potentially significant for the Group.
- Solvay’s activities impact the environment through:
- Use of raw materials based on fossil or non-renewable resources
- Consumption of energy
- Use of water
- Production of waste (solid or liquid, hazardous or safe)
- Greenhouse gases emission
- NOx, SOx, Volatile Organic Compounds (VOC) or dust emission.
- Failure to adapt to changing market dynamics or to technological developments triggered by those environmental concerns may damage the Group’s reputation. It may cause the Company to be undervalued by or unappealing to long-term investors, and cause it to lose competitiveness.
Prevention and mitigation
- The Group’s strategy focuses on businesses with higher added value and less environmental exposure.
- Every year, the Sustainable Portfolio Management (SPM) tool assesses the environmental exposure of our sales and our innovation projects portfolio.
- The Carbon Intensity action plan has a 40% reduction target for 2025 (reference year 2014).
- Solvay has a new environmental plan and targets for 2020 on air emissions (SOx, NOx, VOC), water usage, and hazardous waste.
- Research & Innovation focuses on selected megatrends, including sustainability opportunities and concerns.