Climate Change Data

Renewable Energy Group, Inc.

Climate Impact & Sustainability Data (2020, 2021)

Reporting Period: 2020

Environmental Metrics

Scope 1 Emissions:150.9 thousand MT CO2e
Scope 2 Emissions:287.6 thousand MT CO2e
Scope 3 Emissions:1,420.4 thousand MT CO2e (partial data)
Renewable Energy Share:100% (electricity at Albert Lea after December 2020)
Total Energy Consumption:42,996.7 thousand GJ (direct) + 5,683.7 thousand GJ (indirect)
Water Consumption:1,344.1 thousand cubic meters
Waste Generated:15,083.4 MT (non-hazardous), Negligible (hazardous)

ESG Focus Areas

  • Climate Change
  • Safety
  • Diversity & Inclusion
  • Governance
  • Community Engagement

Environmental Achievements

  • Reduced GHG emissions by 4,197 thousand metric tons of CO2 through the use of biodiesel and renewable diesel.
  • Achieved a 65% feedstock usage from harder-to-process, lower-carbon waste and residual streams.
  • Completed construction of a wind turbine at REG Albert Lea biorefinery providing 100% renewable electricity (not reflected in 2020 results).

Social Achievements

  • Named one of Iowa’s Top Workplaces.
  • Exceeded target for employee volunteer time off (VTO) with 46% usage in the U.S.
  • Created three new internal groups to enhance inclusion and diversity efforts: Inclusion & Diversity (I&D) Council, BIPOC Council, and Women’s Council.
  • Donated $50,000 to the construction of the Lil’ Wildcat Education Center in Glidden, Iowa.
  • Donated $100,000 to Mary Greeley Medical Center in Ames, Iowa.

Governance Achievements

  • Reorganized Senior Leadership Team to streamline reporting structure and accelerate growth.
  • Prioritized enhancements to the Enterprise Risk Management (ERM) program.
  • Renamed the Nominating and Governance Committee to the Nominating and ESG Committee, expanding its responsibilities to include ESG oversight.

Climate Goals & Targets

Environmental Challenges

  • COVID-19 pandemic impacting work processes, market conditions, and operations.
  • Natural disasters causing damage and disruption.
  • Disruptions in feedstock markets due to the pandemic (e.g., reduced availability of used cooking oil).
  • Short-term environmental compliance issues at some facilities (e.g., BOD, pH, air emission testing).
Mitigation Strategies
  • Established a COVID-19 Emergency Response Team.
  • Implemented remote work policies and site-specific safety plans.
  • Shifted between feedstocks based on supply and price.
  • Took corrective actions to address environmental compliance issues and reported them to the appropriate agencies.

Supply Chain Management

Supplier Audits: Routine vetting of new suppliers and annual reviews of existing relationships.

Responsible Procurement
  • Vendor Code of Conduct

Climate-Related Risks & Opportunities

Opportunities
  • Growing demand for lower-carbon fuels.

Reporting Standards

Frameworks Used: GHG Protocol, California Low Carbon Fuel Standard (LCFS), Renewable Fuel Standard (RFS), International Sustainability and Carbon Certification (ISCC), REDcert, Norwegian Environmental Agency Guidelines

Sustainable Products & Innovation

  • REG Ultra Clean®

Awards & Recognition

  • Iowa’s Top Workplaces
  • Fortune’s top-20 businesspeople of the year (CJ Warner)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:144.0 thousand MT CO2e/year (Scope 1); 70.5 thousand MT CO2e/year (Scope 2 location-based); 47.2 thousand MT CO2e/year (Scope 2 market-based); 1315.2 thousand MT CO2e/year (partial Scope 3)
Scope 1 Emissions:144.0 thousand MT CO2e/year
Scope 2 Emissions:70.5 thousand MT CO2e/year (location-based); 47.2 thousand MT CO2e/year (market-based)
Scope 3 Emissions:1315.2 thousand MT CO2e/year (partial)
Renewable Energy Share:6% (REG-sourced renewable electricity)
Total Energy Consumption:2851.15 thousand GJ/year (direct); 802.60 thousand GJ/year (indirect)
Water Consumption:1,376,224 m3/year
Waste Generated:13,537.3 MT/year (non-hazardous); 29.8 MT/year (hazardous)
Carbon Intensity:Not explicitly stated, but provides carbon intensity scores for various fuels.

ESG Focus Areas

  • Sustainable Sourcing
  • Decarbonization & Environmental Stewardship
  • Responsible Business
  • Health & Safety
  • Care for People

Environmental Achievements

  • Reduced carbon emissions through various initiatives (specific quantification not provided in easily extractable format)
  • Achieved close to 100% Scope 1 GHG emissions reduction compared to petroleum diesel through bio-based diesel usage.
  • Annual carbon emissions reduced by 2.4 million metric tons at Geismar facility (post-expansion).

Social Achievements

  • Hosted voluntary on-site COVID-19 vaccination clinics
  • Established employee sustainability engagement initiative (Green Teams)
  • Increased Board diversity with new Board appointees
  • Exceeded corporate goal of 50% workforce using paid time off for volunteering (60% achieved).

Governance Achievements

  • Implemented director term policy limits
  • Established a goal of 40% diverse director representation
  • Strengthened enterprise risk management program

Climate Goals & Targets

Environmental Challenges

  • Feedstock price volatility
  • Supply chain disruptions
  • Concerns about feedstock availability to support industry growth
  • Concerns regarding environmental impacts of feedstock production (biodiversity and deforestation)
  • Indirect Land Use Change (ILUC) concerns
  • Cybersecurity and privacy risks
Mitigation Strategies
  • Utilizing forward contracting, hedging, and other risk management strategies
  • Developing additional feedstock sources
  • Proprietary technology enabling use of a wide variety of feedstocks
  • Strong supply network and long-standing supplier relationships
  • Adhering to applicable laws and regulations and abiding by environmental requirements of fuel programs
  • Relying on independent certification programs
  • Screening business partners for environmental violations
  • Implementing multiple layers of protection against cybersecurity threats
  • Routine scanning, testing, and updating of network and systems
  • Annual review and intrusion test of network and systems by a third party

Supply Chain Management

Supplier Audits: Annual reviews of partnerships; due diligence on new partners; background checks; international watch lists; media reviews; direct solicitation of company information; REG-conducted research; Compliance Team assessment.

Responsible Procurement
  • Vendor Code of Conduct
  • Commitment to international standards of human rights practices

Climate-Related Risks & Opportunities

Transition Risks
  • Changing sustainability targets
  • Increased competition from other low-carbon fuel suppliers
  • Changing standards applicable to renewable fuels
Opportunities
  • Growing demand for biofuels
  • Calls for energy independence
  • Feedstock innovation

Reporting Standards

Frameworks Used: SASB

Certifications: ISCC, REDCert

Third-party Assurance: Independent accountants' report provided for Green Bond reporting

Sustainable Products & Innovation

  • EnDura Fuels™ (InfiniD™, PuriD™, BeyonD™, UltraClean BlenD™, VelociD™)
  • REG Bio-Residual™ Oil
  • Renewable Propane
  • Renewable Naphtha
  • Bioheat®

Awards & Recognition

  • Canadian National Railway Safe Handling Award