Sustainable Development Goals – Goal 1 (logo) Sustainable Development Goals – Goal 3 (logo) Sustainable Development Goals – Goal 5 (logo) Sustainable Development Goals – Goal 8 (logo) Sustainable Development Goals – Goal 12 (logo) Sustainable Development Goals – Goal 13 (logo) Sustainable Development Goals – Goal 14 (logo) Sustainable Development Goals – Goal 15 (logo)

5.53 kg CO2eq. / € EBITDA

Greenhouse gas intensity

12.3 Mt CO2 eq.

Total greenhouse gas emissions – Scopes 1 & 2 (Kyoto Protocol)

Definition

The greenhouse gas emissions reported by Solvay correspond to the scope of the Kyoto Protocol and comprise the following compounds or compound families: CO2, N2O, CH4, SF6, HFCs, PFCs and NF3. To calculate their impact on climate change, the greenhouse gas emissions are converted from metric tons to the CO2 equivalent using the Global Warming Potential (GWP) of each gas based on a 100-year timeframe, as published by the Intergovernmental Panel on Climate Change (IPCC) in its Fifth Assessment Report.

The indicator takes into account:

  • direct emissions for each greenhouse gas released from Solvay’s industrial activities (Scope 1 of Kyoto Protocol);
    • For CO2, the reporting of direct emissions, includes emissions from the combustion of all fossil fuels as well as process emissions (e.g. thermal decomposition of carbonated products and chemical reduction of metal ores).  For renewable fuels, only the part of emissions related to cultivation and preparation is taken into account.
  • indirect CO2 emissions related to the steam and electricity purchased from third parties and consumed internally (Scope 2 of Kyoto Protocol). For electricity purchased, indirect emissions are calculated by applying market-based methods. In 2017, electricity supply contracts were analyzed in order to determine the most appropriate CO2 emissions factor of each site.

Management approach

In November 2015, Solvay set a new long-term objective regarding greenhouse gas emissions: to reduce its Greenhouse gas emissions intensity by 40% by 2025 vs. 2014. Furthermore, since January 1, 2016, Solvay has applied an internal carbon price of €25 per metric ton CO2 equivalent on greenhouse gas emissions, to take into account climate challenges in its investment decisions.

An externally verified and structured greenhouse gas emission reporting system and responses to rating agencies such as the Carbon Disclosure Project help the Group align its efforts on the effectiveness of its greenhouse gas challenges.

Indicators and objectives

Greenhouse gas emissions intensity

In 2015, Solvay committed itself to reducing its greenhouse gas intensity by 40% from 2014 levels by 2025. The Group also set an intermediate target for 2018: to reduce greenhouse gas intensity by 20% in comparison with 2015. The group has reduced its greenhouse gas intensity by 32% since 2014.

Solvay’s priority objective:

2018

-20%

of greenhouse gas intensity in comparison with 2015

2025

-40%

of greenhouse gas intensity in comparison with 2014

kg CO2eq. / € EBITDA

 

2017

 

2016

 

2015

Scope: Consistent with financial reporting.

Greenhouse gas intensity

 

5.53

 

5.86

 

7.26

For a given year, greenhouse gas emissions intensity reflects the amount of scope 1 & 2 emissions covered by the Kyoto Protocol included in the financial scope expressed in kg CO2 equivalent per euro of EBITDA.

In 2017, greenhouse gas intensity decreased by 0.33 kg CO2 eq. per euro of EBITDA.

Greenhouse gas emissions

Greenhouse gas emissions (Scope 1 & 2)

 

 

 

 

2017

 

2016

 

2015

Scope: Consistent with financial reporting perimeter, including the manufacturing activities of the companies that are currently consolidated (fully or proportionately). The greenhouse gas emission of the companies in the financial perimeter represents 81% of the total greenhouse gas emissions of all companies in the operational perimeter.

Direct & indirect CO2 emissions (scopes 1 & 2)

 

Mt CO2

 

10.0

 

10.9

 

11.6

Other greenhouse gases emissions according to Kyoto protocole (scope 1)

 

Mt CO2eq

 

2.3

 

2.4

 

2.6

Total greenhouse gases emissions according to Kyoto protocole

 

Mt CO2eq

 

12.3

 

13.4

 

14.2

Other greenhouse gases CO2 emissions not according to Kyoto protocole (scope 1)

 

Mt CO2eq

 

0.1

 

0.1

 

0.1

In 2017, greenhouse gas emissions were 1.1 Mt CO2 eq. lower than in 2016. This change is explained mainly by changes in the reporting scope. The classification of polyamide activities in discontinued assets led to a decrease of 0.9 Mt CO2 eq. The rest of the variation (-0.2 Mt CO2 eq.) is explained in the following chapters.

Direct greenhouse gas emissions (Scope 1)

Mt CO2 equ.

 

2017

 

2016

 

2015

Scope: Consistent with financial reporting.

Methane – CH4

 

0.90

 

0.81

 

0.85

Nitrous oxide – N2O

 

0.14

 

0.20

 

0.27

Sulfur hexafluoride – SF6

 

0.06

 

0.05

 

0.04

Hydro fluoro carbons – HFCs

 

0.14

 

0.05

 

0.05

Perfluorocarbons – PFCs

 

1.07

 

1.34

 

1.40

Nitrogen trifluoride – NF3

 

0.0

 

0.0

 

0.0

Total other Greenhouse gas emissions according to Kyoto Protocol

 

2.31

 

2.45

 

2.73

Carbon dioxide – CO2

 

7.92

 

8.43

 

8.76

Total direct emissions

 

10.2

 

10.9

 

11.5

In 2017 direct CO2 emissions were 0.51 Mt CO2 lower than in 2016. This change is attributable mainly to changes in the reporting scope. The classification in discontinued assets of polyamide activities that will be sold to BASF led to a decrease of 0.57 Mt CO2 of direct CO2 emissions. The inclusion in the reporting scope of activities recently acquired from Cytec and new production sites (e.g. Jubail in Saudi Arabia) accounted for an increase of 0.01 Mt CO2 of direct CO2 emissions. The rest of the variation (+ 0.05 Mt CO2 eq.) is linked to emission savings projects and production changes.

In 2017 direct other greenhouse gas emissions according to Kyoto Protocole were 0.14 Mt CO2 eq. lower than in 2016. The classification in discontinued assets of polyamide activities that will be sold to BASF led to a decrease of 0.13 Mt CO2 eq. of direct other greenhouse gas emissions. Overall, variations in CH4, PFCs, HFCs, SF6, and N2O emissions in 2017 relative to 2016 were mutually offsetting in the reporting scope.

Indirect greenhouse gas emissions - Gross market-based (Scope 2)

Mt CO2

 

2017

 

2016

 

2015

Scope: Consistent with financial reporting.

Electricity purchased for consumption

 

1.2

 

1.4

 

1.7

Steam purchased for consumption

 

0.9

 

1.1

 

1.1

Total

 

2.1

 

2.5

 

2.8

Implementation of the market-based method was revised in 2017 according to latest best practices with a view to enhancing its accuracy and reliability. A detailed review of emissions factors for purchased electricity covering all sites globally led to changes in several emissions factors, mainly in the United States of America. The result was a decrease of 0.1 Mt CO2 of indirect CO2 emissions linked to purchased electricity. The rest of the decrease is explained by the deconsolidation of polyamide activities (-0.1 Mt CO2).

The decrease of 0.2 Mt CO2 of indirect CO2 emissions linked to purchased steam is explained by the deconsolidation of polyamide activities (-0.1 Mt CO2) and the partial internalization of steam production (-0.1 Mt CO2) in Baton Rouge (USA) and in Rosignano (Italy).

Indirect greenhouse gas emissions - Gross location-based (Scope 2)

Mt CO2

 

2017

 

2016

 

2015

Scope: Consistent with financial reporting.

Electricity purchased for consumption

 

1.2

 

1.2

 

1.8

Steam purchased for consumption

 

0.9

 

1.1

 

1.1

Total

 

2.1

 

2.3

 

3.0

Other indirect greenhouse gas emissions (Scope 3)

Mt CO2

 

2017

 

2016

 

2015

Scope: Consistent with financial reporting.

Fuel- and energy-related activities

 

0.7

 

0.8

 

0.8

Investments

 

1.7

 

0.8

 

2.5

Purchased goods and services

 

6.6

 

7.2

 

7.6

The slight decrease in “Fuel- and energy-related activities” is linked to the reduction of energy purchases due to the classification in discontinued assets of polyamide activities.

“Investments” encompasses the scope 1 & 2 emissions of the discontinued activities: 1.6 Mt CO2 eq. for polyamide activities and 0.1 for Acetow activities.

2017 key achievements

  • The SOLWATT© energy and carbon efficiency program has delivered 0.5 Mt of CO2 emission reductions since 2014, with 1,000 actions deployed across 70 sites worldwide. New savings achieved in 2017 are estimated at 114,000 metric tons of CO2.
  • In the trona mine at Green River (Wyoming, USA), partial recovery of the methane emitted during the extraction and combustion of trona has avoided emissions equivalent to 100,000 metric tons of CO2 eq. per year since 2011. Since 2012 some of the heat from combustion of the recovered methane has been used in the manufacturing process, bringing additional energy and CO2 savings.
  • Solvay has stepped up its involvement in renewable energy production with two new projects having an annual impact of 0.1 Mt CO2: in 2017, biomass-based heat production started at a French plant, and the Solvay Jasper County Solar Farm is scheduled to start up in 2018 in the USA. It comes in addition to biomass-based energy production already in place in Brotas (Brazil) and Rheinberg (Germany).