Climate Change Data

Perstorp Holding AB

Climate Impact & Sustainability Data (2015, 2016, 2017, 2021, 2022)

Reporting Period: 2015

Environmental Metrics

Total Carbon Emissions:410 kton CO2 equivalent
Scope 1 Emissions:354 kton CO2 equivalent
Scope 2 Emissions:56 kton CO2 equivalent
Renewable Energy Share:38% (Swedish production site)
Total Energy Consumption:2321 GWh
Water Consumption:21.7 Mm3
Waste Generated:54 kton

ESG Focus Areas

  • Environmental Performance
  • Health & Safety
  • Resource Management
  • Supply Chain
  • Social Dialogue
  • Employee Development
  • Sustainable Development

Environmental Achievements

  • Substantial decrease in pollution in wastewater prior to treatment
  • Reduced energy consumption from renewable fuels at the Swedish production site (38% in 2015)

Social Achievements

  • Launched an employee mini-survey with 90.3% participation
  • Warrington site recognized for operational excellence by Chemicals Northwest
  • Implemented a Talent Management Process, identifying and developing 32 high-potential employees

Governance Achievements

  • Renewed commitment to the UN Global Compact and its ten principles
  • Developed a new Sustainability Index to measure the total lifecycle impact of products

Climate Goals & Targets

Short-term Goals:
  • 60% of material products evaluated using the Sustainability Index by 2016

Environmental Challenges

  • Increased energy consumption/ton of product in 2015 due to reduced production speed and supply disruptions
  • Spill of biodiesel and alcohol into a nearby creek at the Stenungsund site
Mitigation Strategies
  • Developing new targets and KPIs based on the Sustainability Index
  • Perstorp Oxo AB taking corrective action and working with local authorities to address the spill

Supply Chain Management

Responsible Procurement
  • Maximizing transport efficiency
  • Increasing the use of recycled materials
  • Recycling used packaging and reusing pallets
  • Pilot project to reduce polypropylene consumption in packaging

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001 (seven of ten production units), OHSAS 18001 (Warrington, UK), ISO 50001 (Perstorp, Sweden and Bruchhausen, Germany)

Reporting Period: 2016

Environmental Metrics

Total Carbon Emissions:383 kT CO2e
Scope 1 Emissions:379 kT CO2e
Scope 2 Emissions:4 kT CO2e
Renewable Energy Share:15%
Total Energy Consumption:2168 MWh/year
Water Consumption:22.3 million m3
Waste Generated:57839 tons

ESG Focus Areas

  • Environmental performance
  • Occupational health and safety
  • Ethical behavior
  • Responsible Care
  • People Management & Development
  • Talent Management
  • Succession Planning
  • Diversity and Inclusion
  • Sustainable HR

Environmental Achievements

  • Continued improvement in energy consumption, water use, and GHG emissions per ton of product manufactured in 2016 compared to the previous two years.
  • Developed a Product Sustainability Index to evaluate all products and guide sustainability efforts.

Social Achievements

  • Updated Code of Conduct and translated into nine languages.
  • Implemented Responsible Care methodology, including Life-Saving Rules.
  • Implemented Talent Management Process, identifying 32 talents and providing them with leadership training.
  • Implemented annual Succession Planning Process.
  • Ran Process Academy and Leadership Academy for employee development.
  • Trained 89 out of 93 managers in Sweden on Organization and Social Work Environment.
  • Expanded Perstorp Gymnasium program to include electrician and automation technician training.

Governance Achievements

  • Increased investments in Responsible Care initiatives from 6.0% to 6.7% of total investments in 2016.
  • Launched a project to clarify the company's, leadership's, and employees' standpoints on sustainability (to be finalized in 2017).

Climate Goals & Targets

Environmental Challenges

  • One fatal accident of a contractor at the Zibo production site.
  • Safety KPIs went in the wrong direction in 2016.
Mitigation Strategies
  • Rolling out a plan to make safety an instinctive habit, starting with leadership.
  • Aiming to reach 100% of tough safety targets for 2017.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Reporting Period: 2017

Environmental Metrics

Total Carbon Emissions:447 kT CO2e
Scope 1 Emissions:333 kT CO2e
Scope 2 Emissions:113 kT CO2e
Renewable Energy Share:16%
Total Energy Consumption:2142 MWh/year
Water Consumption:3.7 million m3/year
Waste Generated:28.8 kg/ton product

ESG Focus Areas

  • Finite Material Neutral
  • Resource efficiency
  • Sustainable Business Development (aligned with UN SDGs)
  • Replacing fossil raw materials with renewable or recycled ones
  • Health & Safety
  • Compliance
  • Code of Conduct

Environmental Achievements

  • Reduced greenhouse gases and waste per ton of product
  • Launched world’s first renewable and ISCC certified portfolio for polyols Penta, TMP and Neo (reducing carbon footprint by up to 80%)
  • Invested in Penta plant in Toledo to purify and utilize waste liquid as raw material, decreasing chemical disposal
  • Increased renewable energy share to 16%

Social Achievements

  • Launched Care 365 initiative to improve health and safety, resulting in 20% fewer accidents and incidents
  • Partnered with the Hunger Project to support women in poor societies
  • Implemented annual performance review process (PMD) aligned with Talent Management and Succession Planning
  • Ran Talent Management process with 21 participants
  • Conducted Succession Planning process across the global organization

Governance Achievements

  • No suspected or confirmed cases of corruption
  • Developed Code of Conduct based on OECD guidelines, Responsible Care, and ILO conventions
  • 80% of supplier spend covered by systematic approach addressing human and labor rights and anti-corruption

Climate Goals & Targets

Long-term Goals:
  • Finite Material Neutral
Short-term Goals:
  • Become a top quartile company in health and safety by 2020

Environmental Challenges

  • High workload and stress levels among employees
  • Need to reduce emissions and waste further
  • Need to increase renewable raw material usage
  • Supply chain risks related to human and labor rights and environmental degradation
Mitigation Strategies
  • Care 365 initiative to improve health and safety
  • Continued focus on process efficiency and waste minimization
  • Investment in renewable raw materials and collaborations
  • Supplier evaluation tool and vendor policy to address supply chain risks
  • Planned e-learning modules on anti-bribery and anti-competitive behavior

Supply Chain Management

Supplier Audits: 80% of spend covered by systematic approach

Responsible Procurement
  • Vendor policy addressing child labor, bonded labor, occupational health and safety, and freedom of association

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Third-party Assurance: PricewaterhouseCoopers AB

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)

Sustainable Business Development driven by three platforms: Sustainably feed the growing population; Smarter and more livable societies; and a Climate neutral world

Sustainable Products & Innovation

  • Renewable polyols Penta, TMP and Neo
  • Voxtar™, Evyron™, Neeture™

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:3,471 kT CO2e
Scope 1 Emissions:321 kT CO2e
Scope 2 Emissions:149 kT CO2e
Scope 3 Emissions:3,002 kT CO2e
Total Energy Consumption:2,185 GWh
Water Consumption:25.7 million m3
Waste Generated:76,481 tons

ESG Focus Areas

  • Climate change
  • Finite Material Neutral ambition
  • Health and safety
  • Ethical business practices
  • Sustainable supply chain

Environmental Achievements

  • Science-based emission reduction targets approved by SBTi (Scope 1 & 2: 46% reduction by 2030; Scope 3: 28% reduction per ton sold product by 2030)
  • Launched Internal Carbon Pricing (ICP) system
  • Project Air allocated EUR 30 million by the Swedish Energy Agency to reduce carbon emissions
  • Introduction of Pevalen™ Pro, a non-phthalate plasticizer based on renewable material
  • Collaboration to develop a more sustainable alkyd paint

Social Achievements

  • OSH rate decreased to a record low of 0.45
  • Gap between contractor and employee OSHAR rate closed
  • Improved contractor safety
  • Launched a new employee survey tool for closer monitoring
  • Developed a digital customer portal – MyPerstorp™

Governance Achievements

  • Revised Code of Conduct
  • Updated Anti-corruption Policy
  • Established a new investment category for sustainability improvements

Climate Goals & Targets

Long-term Goals:
  • Achieve Finite Material Neutral ambition
Medium-term Goals:
  • Achieve Finite Material Neutral ambition
Short-term Goals:
  • Set 2030 targets for water and waste reduction
  • Develop transition roadmaps for 2030 targets
  • Implement Project Air
  • Transition to more renewable raw materials in polyol production
  • Assess all chemicals against new (eco)toxic impact targets

Environmental Challenges

  • Covid-19 pandemic impact on markets and supply chains
  • Raw material shortages and price volatility
  • Supply chain disruptions
  • Russia's invasion of Ukraine causing financial uncertainty
Mitigation Strategies
  • Proactive approach to take advantage of market opportunities
  • Strategic pricing
  • Improved customer service organization
  • Structural improvements in operational excellence programs
  • Digital transformation
  • Cancelled business with customers in Russia and Belarus

Supply Chain Management

Supplier Audits: 80% of total spend covered by systematic supplier assessment

Responsible Procurement
  • Vendor Policy
  • Modern Slavery Statement
  • Conflict Minerals compliance

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Changes in laws and regulations
  • Shift to renewable raw materials
Opportunities
  • Development of energy-efficient products
  • Project Air

Reporting Standards

Frameworks Used: GRI, UN Global Compact, SBTi, ISCC PLUS, GHG Protocol

Certifications: ISO 9001:2015, ISO 14001:2015, ISCC PLUS

Third-party Assurance: PricewaterhouseCoopers AB (PwC)

UN Sustainable Development Goals

  • 3
  • 6
  • 7
  • 12
  • 13

Perstorp's sustainable solutions contribute to reducing deaths and illnesses from hazardous chemicals, limiting water pollution, transitioning to renewable energy, improving resource efficiency, and taking action on climate change.

Sustainable Products & Innovation

  • Pevalen™ Pro
  • Pro-Environment product portfolio

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:2799 kT CO2e (2022)
Scope 1 Emissions:249 kT CO2e (2022)
Scope 2 Emissions:129 kT CO2e (2022)
Scope 3 Emissions:2421 kT CO2e (2022)
Renewable Energy Share:54% (2022)
Total Energy Consumption:1931 GWh (2022)
Water Consumption:23.6 million m3 (2022)
Waste Generated:64,980 tons (2022)

ESG Focus Areas

  • Climate Change
  • Water
  • Waste
  • (Eco)Toxic Impact
  • Responsible Sourcing
  • Employee Health & Safety
  • Ethical Business Practices

Environmental Achievements

  • Absolute decrease in CO2 emissions (largely due to lower production volumes)
  • Investment in wastewater recycling in Stenungsund, Sweden, saving 1.1 billion liters of fresh water per year
  • Introduction of the world’s first 2-Ethylhexanol partly based on renewables
  • Development of a more sustainable alkyd paint for Gothenburg City

Social Achievements

  • Decrease in total number of lost days by more than 60%
  • Launch of a new whistleblowing function
  • Implementation of a tool enabling monthly employee surveys
  • Introduction of the first Perstorp Young Talent Program

Governance Achievements

  • Development and implementation of a new governance structure with new processes and ways of working
  • Alignment with the new industry standard for product carbon footprint (PCF) and making PCF-values available for a large majority of product volume
  • Revision of Perstorp’s Code of Conduct in 2021
  • EcoVadis Silver medal for sustainability work

Climate Goals & Targets

Long-term Goals:
  • Become Finite Material Neutral
Medium-term Goals:
  • Reduce absolute GHG emissions by 46.2% by 2030 (Scope 1 & 2)
  • Reduce Scope 3 GHG emissions by 27.8% per ton sold product by 2030
  • Reduce absolute freshwater consumption by 30% by 2030
  • Reduce hazardous and non-hazardous waste directed to disposal by 30% by 2030
Short-term Goals:
  • Further development of transition roadmaps and execution of projects

Environmental Challenges

  • Increased intensity in energy and water consumption, and waste generation due to lower production volumes
  • Geopolitical uncertainty and macroeconomic volatility impacting investment in sustainability
  • Challenges to secure “green” raw materials
  • Volatile availability and pricing of renewable raw materials
  • Risks of production disruptions due to sustainability-related events
Mitigation Strategies
  • Development and implementation of transition roadmaps for all sites (Scope 1&2, Water and Waste) and for Scope 3 on a group level
  • Execution of Project Air, a large-scale production of sustainable methanol
  • Roadmap for raw material transition and innovation projects
  • Hedging options and passthrough of raw material price increases via raw material price formulas
  • Business contingency plans and systematic work with safety issues to prevent accidents

Supply Chain Management

Supplier Audits: 80% of raw material spend covered by systematic supplier assessment using a supplier evaluation tool

Responsible Procurement
  • Vendor Policy based on Code of Conduct (including human rights, labor standards, anti-corruption, and environmental responsibility)
  • Modern Slavery Statement
  • Systematic work to manage information about suppliers and track and assess their performance

Climate-Related Risks & Opportunities

Physical Risks
  • Rising temperatures, sea levels, fresh water scarcity, extreme weather events
Transition Risks
  • Volatile availability and pricing of renewable raw materials
Opportunities
  • Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GHG Protocol, Science Based Targets initiative (SBTi), UN Global Compact, Responsible Care, ISCC PLUS

Certifications: ISO 9001:2015, ISO 14001:2015, ISCC PLUS

Third-party Assurance: PricewaterhouseCoopers AB

UN Sustainable Development Goals

  • 3
  • 6
  • 7
  • 12
  • 13

Reducing deaths and illnesses from hazardous chemicals; limiting water pollution; switching to renewable energy; improving resource efficiency; taking action on climate change

Sustainable Products & Innovation

  • Pevalen™ Pro (non-phthalate plasticizer made from mass balanced renewable material)
  • Voxtar™ and Evyron™ (renewable versions of Pentaerythritol and TMP)
  • Akestra™ (improves heat resistance of recycled PET)