Greenhouse gas emissions reduction
Reducing our greenhouse gas emissions by 1 Mt CO2
At Solvay, we strongly believe that no sustainable growth can be achieved at the expense of the planet.
Solvay’s commitment to fight climate change
No sustainable growth can be achieved at the expense of the planet.
Solvay is uncoupling growth and emissions. By doing that, the Group marks its desire to accelerate the transformation of its sustainable chemistry model.
Step one: setting the target
In 2015 Solvay announced an objective to reduce the GreenHouse Gas (GHG) intensity* of its operations by 40% over 10 years (by 2025 vs. 2014 level).
In 2018, 3 years later, Solvay has both grown its business and decreased its GHG intensity by 32%.
Step two: performing above average
September 2018, Solvay launched a new step with a new target - Solvay committed to reducing its absolute GHG emissions of its operations by 1 Mt CO2 by 2025, compared with the 2017 level, at constant scope. Effectively fighting global warming requires decreasing GHG emissions in absolute value.
Solvay is disconnecting its GHG emissions from its growth prospects.
To achieve its objective, Solvay will be stepping up its Solwatt® energy efficiency program, continuously optimizing its industrial processes, developing clean technologies and increasing the share of renewables in its energy production and supply.
Furthermore, Solvay sets an internal price for CO2 at 25 euros per tonne since the 1 January 2016 to take into account climate challenges in its investment decisions.
This commitment is putting Solvay at the forefront of the chemical industry in the fight against climate change, with the hope its level of ambition will soon spread throughout the industry.
An externally verified and structured greenhouse gas emission reporting system and the response to rating agencies such as the Carbon Disclosure project helps the Group to align its efforts on the effectiveness of its greenhouse gas challenges.
*The greenhouse gas intensity is a ratio between Solvay's greenhouse gas emissions and its EBITDA.
Our 2018 performance
The -24% reduction in greenhouse gas intensity surpasses the initial objective, and Solvay remains vigilant and committed to improve over time with ambitious goals set for the future. Meanwhile Solvay has set out an ambitious goal to reduce absolute emissions by 1 million tons by 2025.
Step three: raising the value of sustainability
We enhanced our greenhouse gas reduction goal even further linking our sustainable purposes directly with our financial ones.
Solvay has agreed new terms in an existing €2 billion revolving credit facility, linking the cost of credit to a reduction in greenhouse gases. Solvay concluded this positive incentive agreement with its syndicate of nine banks.
How does it work? In September 2018 we committed to cut greenhouse gases from our own operations by 1 million tonnes by 2025 relative to 2017 levels, thereby decoupling for the first time this new target from earnings growth. The Group intends to achieve this reduction by further improving energy efficiency, energy mix and by investing in clean technologies.
Along with BNP Paribas Fortis, Solvay’s long-term banking partners, the financial organization participating in the revolving credit facility are Citibank, Commerzbank, Crédit Agricole, HSBC, ING, JPMorgan Chase Bank, KBC Bank, The Bank of Tokyo-Mitsubishi UFJ.
Access full press release.
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