Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Labor and Human Rights
• Ethical and Sustainable Procurement
• Governance

Environmental Achievements

• Published White Paper on improving and harmonizing Scope 3 reporting
• Piloted PCF data-sharing solution using Siemens’ SiGreen technology
• Engaged over 60 associations & initiatives to raise awareness about the TfS PCF Guideline
• Developed decarbonisation learning programme with courses available in multiple languages
• Improved average supplier environmental scores by 4.7 points

Social Achievements

• Launched decarbonisation training for TfS members and suppliers
• Improved average supplier Labour & Human Rights scores
• Simplified supplier access to the TfS Academy
• Developed learner-centric content and learning journeys for TfS Academy learners
• Built learning partnerships with other organizations

Governance Achievements

• Reviewed and updated TfS Audit questionnaire to comply with latest due diligence laws
• Moved TfS Audit from offline to online tool to increase accuracy and reduce errors
• Recognised Chemical Road Transportation Safety Assessment System (CRSAS) from China as an equivalent of TfS Audits
• Launched TfS Coordinators' Round Table for information exchange and discussion
• Elected new TfS President and Steering Committee members, including CPOs from outside Europe

Climate Goals & Targets

Environmental Challenges

• Complexity of data and different systems operated by TfS members in creating a comprehensive data repository
• Ongoing global uncertainty and significant business challenges impacting KPI achievement
• Lower improvement score in supplier re-assessments compared to the previous year due to a complex mix of factors

Mitigation Strategies

• Digitalisation Project to create a comprehensive data repository (expected completion by end of 2024)
• Continuous efforts of buyers, suppliers, audit companies and the TfS office to achieve KPIs
• Analysis of data from Assessments and Audits to guide capacity building in target countries and suppliers

Supply Chain Management

Supplier Audits: 492 Audits in 2023

Responsible Procurement

• TfS Assessments
• TfS Audits
• Corrective Action Plans (CAPs)

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Launched a Product Carbon Footprint (PCF) Guideline for the chemical industry, aiming to increase transparency and harmonize Scope 3.1 emissions accounting.

Governance Achievements

• Established a governance process for periodic review and updates of the PCF Guideline.

Climate Goals & Targets

Environmental Challenges

• Lack of transparency in value chains, making GHG emissions difficult to quantify and reduce.
• Complexity of the global chemical sector value chain, making it difficult to harmonize calculation approaches and compare results.

Mitigation Strategies

• Developed a sector-specific PCF Guideline compliant with ISO and Greenhouse Gas Protocol standards.
• Provided guidance on calculating corporate Scope 3.1 emissions based on supplier-specific data.
• Established a harmonized approach for PCF calculation considering specific aspects of chemical production processes.

Supply Chain Management

Responsible Procurement

• Encouraging suppliers to develop GHG inventories and provide PCF data.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14067, Greenhouse Gas Protocol

Third-party Assurance: TÜV Rheinland

UN Sustainable Development Goals

• Goal 13 (Climate Action)

The PCF Guideline contributes to reducing GHG emissions and promoting climate action.