Neo Performance Materials
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:121,000 tCO2e/year (Scope 1 & 2 combined)
Scope 1 Emissions:14,788 tCO2e/year
Scope 2 Emissions:106,171 tCO2e/year
Renewable Energy Share:24.37% of total energy use
Total Energy Consumption:1,053,073 GJ/year
Water Consumption:2,325,000 m3/year (withdrawal)
Waste Generated:9,222 tons/year
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced Scope 1 GHG emissions from 21,828 to 14,788 t CO2e
- Reduced Scope 2 GHG emissions from 119,240 to 106,171 t CO2e
- Doubled solar power generation capacity at Korat, Thailand facility
- Redirected naturally occurring radioactive material from legacy storage to a licensed industrial partner for use as feedstock to produce uranium for nuclear power generation
- Implemented multiple projects to improve energy efficiency across the company
- Relocated a major operating facility in China to mitigate risk to groundwater resources
Social Achievements
- Achieved a lost-time incident rate of 0.22
- Launched a robust GHG measurement and long-range scenario planning exercise for carbon emission reduction
- Donated $30,000 and employee time to refurbish an apartment at the Phoenix Dream Center for human trafficking survivors
- Five production sites received EcoVadis recognition (three Gold Medals, two Silver Medals)
Governance Achievements
- Implemented a robust GHG measurement and long-range scenario planning exercise
- Established a Green House Gas (GHG) Task Force to plan for long-term carbon emission reductions
- Adopted Human Rights and Responsible Procurement Policy
- Introduced an ESG component within the incentive structure of executive compensation in 2021
Climate Goals & Targets
Long-term Goals:
- Long-term GHG emission reduction targets and plans to be finalized by end of 2023; consideration of carbon neutrality
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Challenging operating environment
- Water stress in some operating regions
- Aging and limited water treatment infrastructure in Zibo, China
- Potential risks of groundwater contamination in Zibo, China due to neighboring industry
- Managing GHG emissions
Mitigation Strategies
- Relocated Zibo, China facility to a new industrial park with improved water treatment infrastructure
- Implemented various water-saving initiatives across facilities (rainwater collection, cooling water recycling, cleaning water reuse, process condensate reuse)
- Developed a comprehensive GHG emission reduction plan, including target setting and action plans
- Investing in air, water, and waste emissions control technologies
Supply Chain Management
Responsible Procurement
- OECD’s Model Policy for a Responsible Global Supply Chain of Minerals from Conflict-Affected and High-Risk Areas
- Prioritization of suppliers with higher levels of environmental certifications
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI, SASB, UN Global Compact
Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, IATF 16949, QC 080000, ISO 27001, ISO 17025
Sustainable Products & Innovation
- Rare earth permanent magnets for electric vehicles, wind turbines, and other clean energy technologies; rare-earth-based environmental catalyst materials; rare-earth-based water purification products; tantalum metal for aerospace turbine engines; niobium oxide and high-purity niobium metal for MRI devices
Awards & Recognition
- EcoVadis Gold Medals (Sillamäe, Estonia; Korat, Thailand); EcoVadis Silver Medal (Tianjin, China); Tianjin Wuqing Development Zone Award for “Advanced Production Safety Facility”; “Excellence in Major Construction Project” for Zibo, China facility relocation; Korat HSS Awards for “Top Performing Company in Health, Safety, and Security” and “Zero Injury Facility”
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:125,000 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:17,149 tCO2e/year
Scope 2 Emissions:107,880 tCO2e/year
Renewable Energy Share:22.9%
Total Energy Consumption:1.07 million GJ/year
Water Consumption:2.386 million m3/year (withdrawal)
Waste Generated:7,357 tons/year
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Added clean energy to current facilities through solar panel installations and improved production processes
- Launched a robust greenhouse gas (GHG) measurement and long-range scenario planning exercise to set realistic carbon emission reduction targets
- Completed exterior construction of a new energy-saving magnets facility in Estonia (production start in early 2025)
- Relocated a major operating facility in China to reduce heavy industry concentration in a high-stress water region and mitigate groundwater risks
- Continued investment in air, water, and waste emissions technologies at manufacturing sites, often exceeding local regulatory guidelines
- Korat, Thailand facility achieved 40% peak time electricity usage from solar energy, offsetting roughly 15% of total energy consumption in 2023.
Social Achievements
- Sillamäe facility joined the European Chemical Industry Council’s Responsible Care program
- Adopted Human Rights and Responsible Procurement Policy
- Implemented the “Take a Bite out of Hunger” program in Singapore, providing monthly food packs to 56 families.
Governance Achievements
- Introduced an ESG component within the incentive structure of executive compensation in 2021
- Completed an assessment against the Responsible Minerals Assurance Process Standard for Tantalum 2017 at NPM Silmet OU
Climate Goals & Targets
Long-term Goals:
- Long-term GHG emission reduction planning and strategizing
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Finalize internal evaluation of historical GHG emissions and reduction opportunities
- Develop and implement effective strategies to reduce carbon footprint
Environmental Challenges
- GHG emissions primarily driven by energy demand
- Five operating facilities located in regions with high or extremely high water stress
Mitigation Strategies
- Collaborating with environmental consultants to finalize internal evaluation of historical GHG emissions and reduction opportunities
- Developing and implementing strategies to reduce carbon footprint across business units
- Implementing water saving initiatives at various facilities (e.g., wastewater reuse, zero-discharge philosophy)
Supply Chain Management
Responsible Procurement
- Adherence to OECD’s Model Policy for a Responsible Global Supply Chain of Minerals
- Prioritization of suppliers with higher levels of environmental certifications
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI, SASB, TCFD, UNGC
Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, ISO 17025, IATF 16949, QC 080000
UN Sustainable Development Goals
- Goal 3: Good Health and Well-being
- Goal 7: Affordable and Clean Energy
- Goal 9: Industry, Innovation and Infrastructure
- Goal 12: Responsible Consumption and Production
- Goal 13: Climate Action
Initiatives align with various SDGs through responsible supply chains, clean energy adoption, community engagement, and waste reduction.
Sustainable Products & Innovation
- Rare earth permanent magnets for energy-efficient drivetrain motors in EVs
Awards & Recognition
- Multiple Gold Medals from EcoVadis for sustainability programs at various facilities
- Awards from Tianjin Wuqing Development Zone and Zibo local government