Climate Change Data

Arkema

Climate Impact & Sustainability Data (2007, 2022, 2023)

Reporting Period: 2007

Environmental Metrics

Total Carbon Emissions:9,392,219 tons equivalent CO2
Waste Generated:358,939 tons

ESG Focus Areas

  • Renewable raw materials
  • Solar energy
  • Supramolecular chemistry
  • Industrial safety
  • Product stewardship
  • Environmental stewardship
  • Sustainable development

Environmental Achievements

  • Reduced GHG emissions by a factor of 2.5 since 1990; goal to reduce by sixfold by 2010
  • Reduced CO2 emissions by 13,500 metric tons annually at Beaumont, Texas plant through energy efficiency improvements
  • Energy recovery system at Fos-sur-Mer plant eliminated most steam use, saving over one metric ton of steam per hour and reducing CO2 emissions

Social Achievements

  • Launched Common Ground® initiative to improve relationships with local communities
  • Partnership with French Red Cross to provide first aid training
  • Signed several agreements with labor organizations in France covering various areas, including employee savings plan, employee representation, and jobs and skills planning
  • Created a European Works Council

Governance Achievements

  • Established two standing committees: Audit and Accounts Committee and Appointments and Compensation Committee

Climate Goals & Targets

Medium-term Goals:
  • Boost Asia’s share of total sales to 20% by 2012
  • Boost share of total sales involving performance products less than five years old to 20% by 2010
  • Reduce working capital to 18% of sales by 2010
Short-term Goals:
  • Reduce GHG emissions by sixfold by 2010

Environmental Challenges

  • High energy and raw material prices
  • Strong euro
  • Rise of Asian economies
  • Stricter regulations in the European Union
  • Balancing chlorine and caustic soda production with fluctuating market demand
  • Sluggish growth in the European market for chlorochemicals
  • Regulatory changes reducing the use of HCFCs
Mitigation Strategies
  • Consolidation plan to enhance competitiveness of Vinyl Products business
  • Closing uncompetitive operations and expanding the most efficient ones
  • Adapting production base to develop HFC-based mixtures and new foam substitutes
  • Investing in Asia
  • Targeted debottlenecking in Europe and North America
  • Joint ventures with leading partners

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001, Responsible Care Management System (RCMS)

Certifications: ISO 14001

Third-party Assurance: Bureau Veritas Certification

Sustainable Products & Innovation

  • Products made from plant-derived raw materials (e.g., Rilsan® 11)
  • Pebax® Rnew (thermoplastic elastomers from renewable resources)
  • Biostrength™ additives for bioplastics

Awards & Recognition

  • Fifth place in CAC MID100 category for Best Shareholder Relations at the Fils d’Or awards
  • Second prize in Governance Process category at Swiss daily Agefi’s 2007 Corporate Governance Awards

Reporting Period: 2022

Environmental Metrics

Renewable Energy Share:61% in 2022

ESG Focus Areas

  • Climate Change
  • Sustainable Products
  • Responsible Manufacturing
  • Employee Well-being
  • Diversity & Inclusion

Environmental Achievements

  • Reduced Scope 1 and 2 GHG emissions by 16% in 2022 (from 2021 levels)
  • Reduced Scope 3 GHG emissions by 17% in 2022 (from 2021 levels)
  • 61% of electricity from low-carbon sources in 2022
  • Launched Archimedes program to evaluate sustainability of solutions; 53% of sales were ImpACT+ in 2022

Social Achievements

  • Launched global Well-being at Work program
  • 82.5% employee engagement and would recommend Arkema as an employer
  • Increased proportion of women among senior management and executives by 2 points in 2022
  • Supported various educational and community initiatives globally

Governance Achievements

  • Board of Directors with equal representation between women and men
  • Established a Diversity and Inclusion policy
  • Three specialized committees supporting the Board of Directors (Audit and Accounts, Nominations, Compensation and Corporate Governance, Innovation and Sustainable Growth)

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions
Medium-term Goals:
  • 65% of sales to make a significant contribution to the SDGs by 2030
  • 25% reduction in net energy purchases by 2030 (EFPI compared to 2012)
  • 60% reduction in COD EFPI by 2030 (compared to 2012)
  • 65% reduction in VOC emissions by 2030 (EFPI compared to 2012)
  • 80% of purchases from relevant suppliers covered by a TfS assessment by 2025
Short-term Goals:
  • Reduce Scope 1 and 2 GHG emissions by 48.5% by 2030 (from 2019 baseline)
  • Reduce Scope 3 GHG emissions by 54% by 2030 (from 2019 baseline)
  • Achieve a TRIR of 0.8 by 2030
  • Achieve a PSER of 2.0 by 2030

Environmental Challenges

  • Supply chain obstacles and product shortages
  • High raw material prices and inflation
  • Energy crisis in Europe
  • Reducing Scope 3 emissions (78 million tonnes of CO2 equivalent in 2022)
Mitigation Strategies
  • Investing €400 million by 2030 in decarbonization projects
  • Switching to renewable energy sources (biomethane, solar, wind)
  • Improving energy efficiency at plants
  • Working with suppliers to reduce upstream Scope 3 emissions
  • Developing sustainable products (Archimedes program)

Supply Chain Management

Supplier Audits: More than 1,800 suppliers assessed against CSR criteria by end of 2022 (TfS)

Responsible Procurement
  • Together for Sustainability (TfS) initiative
  • Pragati program for sustainable castor cultivation

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: SBTi (Science Based Targets initiative)

Certifications: ISCC+ (International Sustainability and Carbon Certification PLUS), SuCCESS™ (Sustainable Castor Specification), RecyClass

Sustainable Products & Innovation

  • Elium® resin
  • Rilsan® polyamide 11
  • Kynar® PVDF
  • Bio-based surfactants
  • Specialty acrylic resins and additives

Awards & Recognition

  • Top Employer certification (France, US, Brazil, China)
  • Ranked third in Chemicals sector on Forbes list of best employers

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1.9 Mt CO2e (2023)
Scope 3 Emissions:70 Mt CO2e (2023)
Renewable Energy Share:27% (2023)

ESG Focus Areas

  • Climate Change
  • Circular Economy
  • Biodiversity
  • Responsible Manufacturing
  • Employee Wellbeing
  • Diversity & Inclusion

Environmental Achievements

  • Reduced scope 1 and 2 greenhouse gas emissions by 7% in 2023 compared to 2022.
  • Reduced scope 3 emissions by 9% compared to 2022.
  • Increased renewable electricity share to 27% in 2023 from 24% in 2022.
  • Launched the Go for the Planet program to raise climate awareness among employees.
  • Implemented a new pipeline to recover surplus steam at the Carling site.
  • Signed major contracts for renewable electricity supply in the US and China.
  • Developed a range of products made from renewable materials with mass balance certification.
  • Achieved significant sales volumes of partially recycled materials (Virtucycle® program).

Social Achievements

  • Launched the Caring by Arkema program, providing global mental health support.
  • Improved employee engagement scores (77% fully committed, 79% would recommend).
  • Ranked third in French Capital Magazine's 500 Best Employers of 2024.
  • Increased proportion of women in senior management to 29% in 2023.
  • Implemented new, state-of-the-art headquarters in France, US, and India to foster social interaction and wellbeing.
  • Launched a new employer brand recruitment campaign highlighting soft skills.

Governance Achievements

  • Board of Directors with balanced representation between women and men.
  • Established three specialized committees (Audit, Nomination, Innovation & Sustainable Growth).
  • Achieved Top Employer certification in ten countries.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 (90% reduction across all scopes).
Medium-term Goals:
  • Reduce scope 1 and 2 GHG emissions by 48.5% by 2030 (from 2019 baseline).
  • Reduce scope 3 GHG emissions by 54% by 2030 (from 2019 baseline).
  • Reduce net energy purchases by 25% by 2030 (from 2012 baseline).
  • Reduce COD EFPI by 65% by 2030 (from 2012 baseline).
  • Reduce VOC emissions by 65% by 2030 (from 2012 baseline).
  • Increase proportion of women among senior management and executives to 30% by 2030.
  • Increase proportion of non-French nationals among senior management and executives to 50% by 2030.
Short-term Goals:
  • Reduce water consumption (Optim’O program)
  • Increase proportion of purchases from relevant suppliers covered by a TfS assessment to 80% by 2025.
  • Increase proportion of sales covered by a Life Cycle Assessment to 90% by 2030.

Environmental Challenges

  • Lower demand in many markets and customer destocking.
  • Persistent inflation and geopolitical tension.
  • Need to reduce greenhouse gas emissions across the value chain.
  • Maintaining high levels of employee engagement and empowerment.
Mitigation Strategies
  • Agility and dedication of employees.
  • Focus on sustainable development and high-performance materials.
  • Capacity expansions and new project start-ups.
  • Cost and cash flow management.
  • Ambitious climate plan with targets for 2030 and net-zero ambition for 2050.
  • Collaboration with suppliers to reduce emissions.
  • Go for the Planet program to foster a climate culture.
  • Review of empowerment strategies based on internal engagement surveys.

Supply Chain Management

Supplier Audits: More than 2,000 suppliers assessed against CSR criteria (TfS).

Responsible Procurement
  • Together for Sustainability (TfS) initiative.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Growth in sustainable construction and electric mobility markets

Reporting Standards

Frameworks Used: SBTi

Certifications: ISCC+, SCS Global Services, HQE, BREEAM Excellent, Fitwel

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)

Arkema's initiatives contribute to these goals through sustainable product development, responsible manufacturing, and climate action.

Sustainable Products & Innovation

  • Bio-based adhesives
  • Recycled polyamides
  • Cool roofs
  • High-performance running shoes (Cloudneo)

Awards & Recognition

  • Forbes World’s Best Employers
  • Time Magazine’s World’s Best Companies
  • French Capital Magazine's 500 best employers
  • ICIS Innovation Award
  • Arkema – Académie des Sciences Award
  • Universum label (Top 100 Most Attractive Employers)