Climate Change Data

Environmental Metrics

ESG Focus Areas

• Research & Innovation
• Workplace
• Production
• Supply Chain
• Governance & Transparency
• Donations & Community Engagement

Environmental Achievements

• Achieved annual reductions in metal dust, nitrogen oxides (NOx), and ammonia (NH3) emissions per ton of catalyst produced in Frederikssund for the past five years.
• Delivered 37,839 MWh of excess heat from the Frederikssund plant to the local district heating plant, enough to heat around 2,100 single-family houses.
• Reduced hazardous waste at the Frederikssund plant over the past five years.
• Implemented recycling of off-specification material at the Bayport plant, feeding it back into the production process.

Social Achievements

• Reduced lost time accident frequency rate to 2.0 per one million working hours (compared to 3.4 in 2018).
• Implemented TopsoeVoices, a new global employee survey, with a 90% response rate.
• Launched an employee share program and updated flexible work policy (Denmark).
• Expanded Employee Assistance Program to more regional offices.

Governance Achievements

• Published the first stand-alone Sustainability Report.
• Developed and tested a supplier code of conduct.
• Conducted an updated compliance risk assessment.
• Updated global third-party assurance policy and processes.

Climate Goals & Targets

Environmental Challenges

• Addressing employee engagement scores below target.
• Addressing some more severe accidents compared to previous years.
• Underrepresentation of women in management positions and on the Board of Directors.
• Need to reduce Topsoe's own carbon footprint.

Mitigation Strategies

• Implemented TopsoeVoices and developed action plans based on survey results.
• Continued focus on safety training, targets, and risk assessments.
• Set a target of 30% female representation in management positions and two female members on the Board of Directors by 2020.
• Initiated a global project to reduce Topsoe's carbon footprint, starting with production plants.

Supply Chain Management

Responsible Procurement

• Updated procurement policy (2018)
• Focus on supplier dependency (2018)
• Policy on conflict minerals (2019)
• Supplier code of conduct (2019)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions and natural disasters

Opportunities

• Development of energy-efficient products and solutions for CO2 utilization.

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 7
• SDG 12
• SDG 14

Topsoe's solutions impact various SDGs, including agricultural productivity, reduced air pollution, energy efficiency, responsible production, and prevention of ocean acidification.

Sustainable Products & Innovation

• eCOs™ technology
• HydroFlex™ technology

Awards & Recognition

• IChemE Oil and Gas Global Award
• Innovation in Materials Characterization Award

Environmental Metrics

ESG Focus Areas

• Climate change
• Pollution
• Resource use & waste
• Human rights
• Health & safety
• Equal treatment
• Corruption & bribery
• Responsible supply chain management

Environmental Achievements

• Improved CDP score, obtaining a B
• Achieved a Gold rating in EcoVadis
• Implemented SAP EHS at all sites to manage environmental and energy data
• Engaged over 270 suppliers, requesting their decarbonization performance disclosure to CDP, achieving a 60% response rate
• Developed a roadmap with over 20 workstreams, embedding net zero in all activities to achieve the 2040 target
• Stopped producing high-temperature shift (HTS) catalysts containing chromium and transitioned to a chromium-free alternative
• Established Liquid Natural Gas (LNG) and Liquified Petroleum Gas (LPG) plants to secure energy supply
• Progressed with civil works on TertiNOx™ catalyst solution to remove nitrous oxide (N2O)

Social Achievements

• Improved employee engagement score to 80% (highest ever)
• Introduced several well-being initiatives, including a global mental well-being week
• Established a DE&I Committee to guide diversity, equity, and inclusion efforts
• Updated Diversity & Inclusion Policy
• Achieved equal gender representation on the Board of Directors
• Updated Anti-Harassment Policy
• Widened the scope of partnership with the World Wide Fund for Nature (WWF)
• Provided humanitarian relief through Save the Children and UNICEF
• Hosted events for Ukrainian refugees
• Partnered with Lyngby-T aarbæk municipality to provide internships
• Donated STEM kits to local schools in Houston

Governance Achievements

• Implemented several initiatives to enhance the anti-corruption compliance program’s effectiveness
• Redesigned counterparty due diligence to incorporate corruption risk indicators
• Updated Supplier Code of Conduct and rolled it out among 84% of suppliers based on spend
• Developed and implemented a supplier segmentation program
• Initiated cooperation with EcoVadis to assess suppliers’ sustainability management systems
• Updated Enterprise Risk Management Policy and clarified roles and governance frameworks
• Established a Risk Management team to facilitate risk management activities

Climate Goals & Targets

Environmental Challenges

• Geopolitical uncertainty affecting the global economy and slowing down Final Investment Decisions (FIDs) on energy transition projects
• Lack of clarity in regulatory guidance for carbon emission reduction projects
• Energy security challenges due to geopolitical instability
• Risks related to the construction of the SOEC factory
• Risks related to the development of the PtX market
• Challenges in attracting and retaining the right talent
• Increasing complexity in regulatory chemicals legislation
• Risks of conducting business with sanctioned counterparties or in countries subject to trade prohibitions
• Risks related to intellectual property (IP)

Mitigation Strategies

• Consolidated emergency preparedness plans
• Secured delivery agreements
• Maintained inventory levels
• Performed preventive and predictive maintenance of equipment
• Established LNG and LPG plants in Frederikssund
• Implemented Security Improvement Program
• Engaged in Cyber Communities
• Addressed information security as an integral part of all future IT projects
• Monitored and managed geopolitical tension and political risks
• Liaised with governments and external stakeholders
• Defined risk scenarios and implemented contingency plans
• Secured proper contractual frameworks
• Considered alternative production scenarios and monitored raw material prices
• Secured proper payment security
• Ran continuous risk management procedures during engineering, procurement, and construction of the SOEC factory
• Matured the SOEC technology
• Actively positioned and promoted Topsoe as a leading supplier of PtX solutions
• Launched initiatives to support employee acquisition and retention
• Closely monitored the legislative process
• Strengthened relations and increased participation in global fora focusing on chemical regulations
• Engaged in relevant industry activities related to legislative processes
• Continued compliance due diligence on agents and business partners
• Ran regular training on compliance
• Maintained updated trade controls and anti-corruption risk assessments
• Promoted the use of the Topsoe Compliance Hotline
• Maintained a dedicated IP department
• Reviewed IP strategy regularly
• Ensured Freedom to Operate analysis was integrated in product development
• Ensured proper contractual regulation of IP in relevant agreements
• Continued “Zero Harm” program
• Focused on barriers and controls in relation to Process Safety
• Increased focus on Process Safety and ensured dedicated resources
• Conducted specific training for process engineers
• Promoted a good corporate culture
• Uphold a duty of care
• Protected employees, assets, and production facilities
• Maintained an emergency and crisis management response system
• Developed a comprehensive global approach to physical security
• Strengthened awareness around insider threats and industrial espionage
• Improved and integrated current resilience capabilities

Supply Chain Management

Supplier Audits: 84% of suppliers based on spend have accepted the Topsoe Supplier Code of Conduct (2023)

Responsible Procurement

• Supplier Code of Conduct
• Supplier segmentation program
• Cooperation with EcoVadis

Climate-Related Risks & Opportunities

Physical Risks

• Disruption in raw material supply
• Limitations in access to energy
• Breakdown of equipment

Transition Risks

• Changes in countries’ political leadership impacting climate policy
• Failure to develop PtX area impacting commitments towards climate change and sustainability

Opportunities

• Development of energy-efficient products
• PtX solutions for decarbonization

Reporting Standards

Frameworks Used: IFRS, Danish Financial Statements Act, ESRS

Certifications: ISO 14001, RC14001, ISO 45001

Third-party Assurance: PwC

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 13 (Climate action)

Topsoe's technologies and solutions contribute to these goals by enabling faster and more effective pathways to net zero, decarbonizing energy-intensive industries, and producing sustainable fuels and chemicals.

Sustainable Products & Innovation

• SOEC technology
• e-methanol ModuLite™ technology
• HydroFlexTM technology
• TertiNOx™ catalyst solution