LyondellBasell Industries N.V.

Climate Impact & Sustainability Data (2019, 2022, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:22.9 million metric tons of CO2e

Scope 1 Emissions:14.6 million metric tons of CO2e

Scope 2 Emissions:8.3 million metric tons of CO2e

Scope 3 Emissions:Not disclosed

Renewable Energy Share:Not disclosed

Total Energy Consumption:441 million gigajoules

Water Consumption:253.4 million m3

Waste Generated:1,346 thousand metric tons

Carbon Intensity:0.548 metric tons of CO2e per metric ton of product (2019)

ESG Focus Areas

Eliminating plastic waste
Addressing climate change
Supporting a thriving society

Environmental Achievements

Reduced emissions to air of nitrogen oxides (NOx), sulfur oxides (SOx), volatile organic compounds (VOCs) and particulate matter (PM) compared with 2018
First parallel production of PP and LDPE from renewable-based feedstock at a commercial scale
Expanded the number of end-use applications for our mechanically recycled product portfolio through our QCP partnership

Social Achievements

More than 1 million safe working hours achieved at 17 manufacturing sites
Lowest injury rate in our history achieved at manufacturing facilities in the United States
19,360 volunteer hours donated to the community during our annual Global Care Day

Governance Achievements

Appointed the company’s first Chief Talent & Diversity Officer and are working to further emphasize diversity and inclusion in our cultural and talent management programs

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Produce and market 2 million metric tons of recycled and renewable-based polymers annually by 2030
Achieve a 15% reduction in CO2 emissions per ton of product produced by 2030 compared with 2015 levels

Short-term Goals:

Not disclosed

Environmental Challenges

Increased costs for compliance with changes in laws including emission trading schemes
Physical risks due to altered weather patterns such as hurricanes, which could have adverse impact on our assets and operations
Transformation risks due to changing demand for products by our customers

Mitigation Strategies

Developing technologies for the production of chemical products with a lower environmental footprint across their life cycle, including reduced CO2 emissions
Integrating climate-related risks and opportunities into our Enterprise Risk Management (ERM) approach

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

Supplier Code of Conduct implemented in 2020

Climate-Related Risks & Opportunities

Physical Risks

Hurricanes, floods, drought, water scarcity

Transition Risks

Increased costs to comply with climate change legislation

Opportunities

Developing lower-carbon products and technologies; using renewable feedstocks

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

Circulen and Circulen Plus polymers from renewable feedstocks; Hyperzone polyethylene

Awards & Recognition

2020 Responsible Care® Company of the Year (American Chemistry Council)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:120 million metric tons (2020 baseline)

Scope 1 Emissions:14.7 million tCO2e (2022)

Scope 2 Emissions:7.4 million tCO2e (market-based, 2022)

Scope 3 Emissions:101.1 million tCO2e (2022)

Renewable Energy Share:0.03% (2022)

Total Energy Consumption:382 million gigajoules (2022)

Water Consumption:297.8 million m³ (2022 withdrawals)

Waste Generated:1,343.4 thousand metric tons (2022)

Carbon Intensity:0.55 metric tons of CO2e per metric ton of product (2022)

ESG Focus Areas

Climate Change
Plastic Waste
Worker Safety
Process Safety
Diversity, Equity and Inclusion
Governance
Compliance

Environmental Achievements

Increased greenhouse gas emissions reduction target for scope 1 and 2 from 30% to 42% by 2030 (relative to a 2020 baseline), and established a 2030 scope 3 emissions reduction target of 30% (relative to a 2020 baseline).
Achieved more than 50% of the goal to procure at least half of electricity from renewable sources by 2030, reducing scope 2 emissions by nearly 1 MMT annually when projects are operational.
Shutdown of Houston refinery will lower annual scope 1 and 2 emissions by more than 3 MMT and scope 3 emissions by 40 MMT.
Waste generation reduced by 29% compared with 2021.
Approximately 11 kilograms of polymeric solids lost offsite in 2022.

Social Achievements

Total Recordable Injury Rate (TRIR) of 0.12, a record low and top decile for the industry.
21 manufacturing sites achieved more than 1 million safe work hours.
40% of the Chief Executive Officer’s direct reports are women (as of February 2023).
$11 million in charitable investments globally through 1,800 grants.
Launched six new Employee Networks (including Global Latin and Global Asian/Pacific Islander networks).

Governance Achievements

Top quartile ESG rating from MSCI.
Best possible social and governance scores in the Institutional Shareholder Services QualityScores rating.
EcoVadis Gold Medal.
ESG performance accounts for 30% of the total payout under the company’s Short Term Incentive program (20% Safety and 10% Sustainability).

Climate Goals & Targets

Long-term Goals:

Achieve net zero GHG emissions from operations by 2050.

Medium-term Goals:

Reduce absolute scope 1 and 2 GHG emissions 42% by 2030 (relative to a 2020 baseline).
Reduce absolute scope 3 GHG emissions 30% by 2030 (relative to a 2020 baseline).
Procure a minimum of 50% of electricity from renewable sources by 2030.
Produce and market at least 2 million metric tons of recycled and renewable-based polymers annually by 2030.
Assess a minimum of 70% of key suppliers globally using sustainability criteria by 2025.

Short-term Goals:

Increase the number of female senior leaders globally and the number of underrepresented senior leaders in the U.S. by 50% by 2027 (relative to a 2022 baseline).

Environmental Challenges

Global challenges of plastic waste and climate change.
Competitive product and pricing pressures.
Supply chain disruptions.
Attrition of women leaders and leaders from underrepresented groups.
Estimating scope 3 emissions.

Mitigation Strategies

Developing and delivering circular and sustainable solutions.
Accelerating GHG emissions reduction targets.
Increasing use of renewable energy through PPAs.
Exiting the refining business.
Enhanced incident investigation processes.
Expanding hiring, promotion and retention practices.
Engaging with suppliers to reduce scope 3 emissions.
Participating in sector initiatives to improve scope 3 emission estimates and reporting.

Supply Chain Management

Supplier Audits: 678 key suppliers assessed as of February 2023 (140% of 2022 target)

Responsible Procurement

Supplier Code of Conduct
EcoVadis assessments
Together for Sustainability (TfS) membership
Product Carbon Footprint Guideline

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather
Flooding
Drought

Transition Risks

Regulatory changes
Market shifts
Litigation

Opportunities

Development of energy-efficient products
Increased demand for low-carbon products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISCC PLUS

Third-party Assurance: PwC (limited assurance on energy consumption and Scope 1 & 2 emissions)

UN Sustainable Development Goals

Goal 7 (Affordable and clean energy)
Goal 9 (Industry, innovation and infrastructure)
Goal 12 (Responsible consumption and production)
Goal 13 (Climate action)
Goal 8 (Decent work and economic growth)
Goal 11 (Sustainable cities and communities)
Goal 3 (Good health and well-being)

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

CirculenRecover
CirculenRevive
CirculenRenew

Awards & Recognition

EcoVadis Gold Medal
MSCI ESG Rating A
FTSE4Good Index Series

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

Climate Change
Circular Economy
Workforce Diversity & Inclusion

Environmental Achievements

Reduced scope 1 and scope 2 greenhouse gas (GHG) emissions by more than 3 million metric tons annually (due to refinery closure)
Reduced scope 3 GHG emissions by approximately 40 million metric tons annually (due to refinery closure)
Reached nearly 90% of the 2030 target to secure at least half of global electricity from renewable sources, reducing scope 2 GHG emissions by more than 1.3 million metric tons.

Social Achievements

Improved hiring practices, lower attrition and increased advancement of females and individuals from underrepresented populations into senior leadership roles.
2023 employee survey showed more than 80% of respondents reported feeling treated fairly and having a strong sense of belonging at LYB.

Governance Achievements

MSCI upgraded LYB's ESG rating to “leader” with a score of “AA”.
Received an “A-” rating in the latest CDP Climate Change disclosure, placing us in the leadership category for climate action.

Climate Goals & Targets

Long-term Goals:

Reach net zero scope 1 and 2 GHG emissions from global operations by 2050.

Medium-term Goals:

Lower scope 1 and 2 GHG emissions by 42% by 2030 (relative to 2020 baseline).
Lower scope 3 GHG emissions by 30% by 2030 (relative to 2020 baseline).
Produce and market at least 2 million metric tons of recycled and renewable-based polymers annually by 2030.

Short-term Goals:

Generate up to $1 billion in recurring annual EBITDA by the end of 2025.

Environmental Challenges

Soft global demand for petrochemicals.
Capacity additions in petrochemical markets.
Economic uncertainty impacting margins.

Mitigation Strategies

Implementation of a new value-focused strategy with three pillars: Growing and upgrading the core, Building a profitable Circular and Low Carbon Solutions (CLCS) business, and Stepping up performance and culture.
Value Enhancement Program (VEP) to identify and implement value-generating initiatives, exceeding expectations with a 2023 year-end run rate of more than $400 million of recurring annual EBITDA.
Planned divestitures of non-core businesses.
Plans to close Houston refinery by the end of Q1 2025.