LyondellBasell Announces Goal of Achieving Net Zero Emissions by 2050

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.

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.

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.