Climate Change Data

Chemtrade Logistics Income Fund

Climate Impact & Sustainability Data (2020, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:130,000 tonnes of CO2 (2020)
Renewable Energy Share:96% (2020)
Total Energy Consumption:2,500 million kWh (2020)
Waste Generated:24,000 tonnes of HCA (2020), 2,000 tonnes of hazardous waste (2020)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Repurposed 6,500 tonnes (27%) of 24,000 tonnes of HCA waste, reducing landfill and associated costs by over $400,000.
  • Replaced an engine used for air emissions abatement with a more efficient one at our Richmond, California site, reducing GHG emissions.

Social Achievements

  • Employee injury frequency (excluding COVID-19) was at a seven-year low.
  • Formed a Pandemic Steering Team to develop safety protocols during the COVID-19 pandemic.

Governance Achievements

  • Completed a materiality assessment based on SASB metrics and investor expectations.
  • Implemented RC14001 at recently acquired facilities.
  • Annually trained all employees and board members on the code of conduct, including anti-corruption training.

Climate Goals & Targets

Medium-term Goals:
  • Reduce carbon dioxide equivalent (CO2e) emissions by over 21,000 tonnes annually by 2022.
Short-term Goals:
  • Expand internal environmental tracking system to track all material environmental matters (2021).
  • Establish a centralized tracking and reporting process for all industrial and hazardous wastes (2021).
  • Conduct first annual employee survey (2021).

Environmental Challenges

  • Supply chain disruptions due to the COVID-19 pandemic.
  • Contractor safety incidents.
  • General economic uncertainty caused by the COVID-19 pandemic.
  • Increased transportation costs.
  • Potential for significant unscheduled downtime at key facilities.
  • Lease restrictions at North Vancouver facility after June 30, 2030.
  • Fluctuations in the price of raw materials and industrial chemicals.
  • Reliance on significant customers and producers.
  • Risks associated with cybersecurity.
  • Exposure to extreme weather events.
  • Potential for adverse effects on reputation.
  • Potential for additional cash contributions to defined benefit pension plans.
  • Reliance on key personnel.
  • Limited access to raw materials.
  • Potential trade restrictions.
  • Industry over-capacity.
  • Integration challenges with acquisitions.
  • Insufficient insurance coverage for material losses.
  • Credit risk from counterparties.
  • Risks associated with foreign operations (Brazil).
  • Potential for reduced use of chemical products.
  • Dependence on the Fund’s subsidiaries.
  • Uncertainty regarding tax treatment.
Mitigation Strategies
  • Established a Pandemic Steering Team to manage the impact of COVID-19.
  • Implemented a safety improvement plan focused on the EC business.
  • Strengthened the contractor safety program.
  • Negotiated an amendment to the credit agreement to provide additional covenant room.
  • Maintains insurance to cover certain transportation-related risks.
  • Locating facilities in regions with low-cost, regulated hydroelectric power.
  • Entering into contracts with risk-sharing provisions.
  • Implementing industry-accepted security measures and technology.
  • Maintaining insurance coverage for extreme weather events.
  • Implementing community outreach programs.
  • All plans are closed to new members for defined benefit pension plans.
  • Entering into employment arrangements with senior management.
  • Securing multi-year commitments with strategic vendors for raw materials.
  • Lobbying and educating governments on transportation issues.
  • Assessing alternatives to address lease restrictions at North Vancouver facility.
  • Actively managing credit risk for trade and other receivables.
  • Restructuring U.S. notes to mitigate the adverse impact of the Final Anti-Hybrid Regulations.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Seismic events
Transition Risks
  • GHG emissions regulations
Opportunities
  • Selling hydrogen to third parties

Reporting Standards

Frameworks Used: SASB

Certifications: RC14001

Third-party Assurance: DNV-GL

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:166,210 tCO2e
Scope 1 Emissions:166,210 tCO2e
Scope 2 Emissions:63,598 tCO2e
Renewable Energy Share:88%
Total Energy Consumption:8,881,000 GJ
Waste Generated:36,360 tons
Carbon Intensity:0.055 kg GHG per kg of final product in 2023

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced HCA landfill disposal by 8,900 tonnes (49% of 2021 baseline), exceeding the ESG target of reusing at least 47% of HCA.
  • GHG intensity 58% lower than the 2022 chemical-industry average.
  • Approximately 11% of Scope 1 GHG emissions were reduced, offset, or displaced compared to the 2021 baseline.

Social Achievements

  • Achieved employee OIR of 0.45, exceeding the target of 0.7 by 2025.
  • 56% of new hires who disclosed identified as BIPOC and/or gender diverse.
  • Overall employee engagement score of 71%, up from 69% in 2021.

Governance Achievements

  • ESG goals incorporated into executive short-term and long-term incentive plans.
  • Received the 2022 Association of American Railroads’ Non-Accident Release Grand Slam Award.

Climate Goals & Targets

Medium-term Goals:
  • Achieve industry benchmark employee engagement survey results by 2025.
  • Achieve 50% BIPOC and/or gender diverse representation in all management positions by end of December 2025.
  • Reduce the number of transportation incidents by 50% of 2022 baseline by 2025.
Short-term Goals:
  • Reduce, offset, or displace 50% of 2021 baseline Scope 1 GHG emissions by 2025.
  • Achieve employee OIR of 0.7 by 2025.
  • Reduce Level 1 spills or releases by 50% of 2021 baseline by 2025.
  • Reduce HCA landfill disposal by an additional 20% of 2021 baseline by 2025.

Environmental Challenges

  • Increased GHG emissions in 2023 due to increased natural gas use at sulphuric acid plants.
  • Reduced demand for spent acid regeneration services due to increased EV sales.
  • Reduced sulphur supply and potentially increased cost due to decreased oil production.
Mitigation Strategies
  • Capturing and selling hydrogen or using hydrogen in place of natural gas.
  • Improving the efficiency of fleet vehicles and processes.
  • Purchasing offsets to achieve GHG targets.
  • Monitoring markets for risks and opportunities related to EV industry.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts (EV industry)
Opportunities
  • Increased demand for ultrapure sulphuric acid, merchant sulphuric acid, and caustic soda due to EV industry growth.

Reporting Standards

Frameworks Used: SASB, TCFD

Awards & Recognition

  • 2022 Association of American Railroads’ Non-Accident Release Grand Slam Award