Elementis plc
Climate Impact & Sustainability Data (2019-2023, 2021, 2022, 2023)
Reporting Period: 2019-2023
Environmental Metrics
Total Carbon Emissions:67 kt CO2e (2022, excluding Chromium)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:84% (H1 2023)
Total Energy Consumption:Not disclosed
Water Consumption:1.57 million m3 (2022, excluding Chromium)
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Climate Change
- Circular Economy
- Natural Ingredients
- Safety
- Social Responsibility
- Supply Chain Engagement
Environmental Achievements
- Reduced GHG emissions (Scope 1 and 2) by 58% vs 2019 baseline (by H1 2023)
- Increased renewable/low-carbon energy purchased to 84% by H1 2023 (from 55% in FY 2019)
- Reduced water withdrawal intensity (m3/t produced) by 50% by H1 2023 (from 4.53 in FY 2019)
- 72% of revenue from naturally-derived products (as defined in ISO 16128) by H1 2023
Social Achievements
- Improved ESG ratings
- Launched several new products with sustainability benefits (e.g., Rheolate Powder with 80% CO2 reduction in transportation emissions)
Governance Achievements
- Not disclosed
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Achieve Net Zero emissions by 2050
Short-term Goals:
- Reduce water usage by 50% by 2030 (vs 2019 baseline)
- Reduce Scope 1 and 2 GHG emissions by 25% by 2030 (vs 2019 baseline)
Environmental Challenges
- Turbulent market environment including industrial recession, global pandemic, Russia/Ukraine war, surging inflation, rising interest rates, and China economic deceleration
- European demand decline for Talc and European decorative coatings volumes
Mitigation Strategies
- Portfolio simplification
- Organisation streamlining
- Plant closure savings
- Manufacturing cost optimization
- Sales and distributor integration
- Focus on higher-margin applications
- Cost savings initiatives aiming for $30m by 2025
- Global Supply Chain and Procurement optimization
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Global Supply Chain and Procurement optimization
- Further reduce single sourced purchasing
- Standardize RFI and RFQ process
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: Null
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Rheolate Powder
- Recycled aluminium for antiperspirant
- Talc for vehicle lightweighting
Awards & Recognition
- Not disclosed
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- GHG emissions reduction
- Sustainability targets
- Water withdrawal reduction
- Diversity and Inclusion
- Safety
Environmental Achievements
- 25% reduction in GHG intensity (Scope 1 and 2, market-based) versus prior year
- 26% reduction in water withdrawal intensity versus prior year
Social Achievements
- Increased number of women in senior leadership team from 24% in 2018 to 31% in 2021
- Women represent over 40% of the Board
- Key engagement score rose from 55% in 2020 to 63% in 2021
- Inaugural global safety week held
- Launched unconscious bias training initiatives globally
Governance Achievements
- Completed an externally facilitated Board evaluation with positive results
- Planning to appoint two additional Board members in the coming year
Climate Goals & Targets
Medium-term Goals:
- 17% adjusted operating profit margin
- 90% operating cash conversion
- Net debt/EBITDA of under 1.5x
- 17% new products as a percentage of sales by 2025
- $20-25m of revenue synergies by 2023
Short-term Goals:
- Launch of 20 new products in the next 12 months
- Progress towards an additional $10m of cost savings by 2023
Environmental Challenges
- Global supply chain constraints
- Accelerating cost inflation
- Weak automotive production
- Lower paper demand
- Raw material availability
- Logistical disruptions
Mitigation Strategies
- Targeted pricing actions
- Efficiency improvement projects
- Qualified alternative suppliers
- Extended production runs
- Pursued alternative transportation options
- Price increases to offset material cost inflation
- Cost savings initiatives ($10m delivered in 2021, additional $10m targeted by 2023)
Supply Chain Management
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Bentone Hydroclay™ 2100 (100% natural)
- Rheolate HX® series (up to 50% better hide than competitors)
- Castor wax based organic thixotropes
- Non-ionic associative thickeners (NiSATs)
Awards & Recognition
- EcoVadis “Gold”
- MSCI “A”
- Responsible Chromium label
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:207,058 + 81,365 + 57,810 = 346,233 tCO2e/year
Scope 1 Emissions:207,058 tCO2e/year
Scope 2 Emissions:139,175 tCO2e/year (location-based and market-based combined)
Water Consumption:3,840,035 m3/year
Waste Generated:23,424 tons/year
ESG Focus Areas
- Greenhouse gas emissions
- Water withdrawal
- Waste generation
Climate Goals & Targets
Environmental Challenges
- Inconsistent emission factors used across different locations for natural gas and steam.
- Insufficient waste categorization.
- Outdated GWP values for refrigerants.
Mitigation Strategies
- Elementis plc aims to implement optimization measures including using location-based or market-based emission factors for natural gas, using supplier-specific emission factors for steam, further sub-categorizing waste, updating GWP values for refrigerants, and implementing a systematic GHG management system.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: ISO 14064-1:2018
Certifications: ISO 14064-3:2019
Third-party Assurance: TÜV SÜD Industrie Service GmbH
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:62,597 tCO2e/year (market-based Scope 1 & 2)
Scope 1 Emissions:39,217 tCO2e/year
Scope 2 Emissions:23,380 tCO2e/year (market-based)
Scope 3 Emissions:567,502 tCO2e/year
Renewable Energy Share:77%
Total Energy Consumption:1,497,493 GJ/year
Water Consumption:1,310,825 m3/year
Waste Generated:15,545 tons/year
Carbon Intensity:0.15 tCO2e/tonne production (market-based Scope 1 & 2)
ESG Focus Areas
- Climate change
- Environment
- People
- Responsible business
Environmental Achievements
- Reduced Scope 1 and 2 (market-based) GHG emissions by 6.7% compared to 2022
- Met two out of four 2030 sustainability targets (GHG intensity and water withdrawal intensity)
- 77% of purchased electricity from renewable or low carbon sources
- 68% of Group revenues from natural or naturally-derived ingredients
Social Achievements
- 50% reduction in work-related injuries
- Increased proportion of senior female leaders
- Launched a biannual employee engagement survey
- Voluntary attrition reduced to 8.8% (2022: 10.6%)
Governance Achievements
- Reinstatement of ordinary dividend
- Completed a multi-year project of transferring ERP systems into a single global system
- Implemented a new screening system for customers and suppliers
- Launched a Business Partner Code of Conduct
Climate Goals & Targets
Long-term Goals:
- Net zero emissions by 2050
Medium-term Goals:
- Achieve 25% reduction in combined Scope 1 and Scope 2 market-based emissions by 2030 (target already met in 2023)
- Achieve 20% reduction in energy from fuels by 2030
- Achieve $90 million above market revenue growth by 2026
- Set Science Based Targets (SBT) for GHG emission reductions for all three scopes via the SBTi by 2024
Short-term Goals:
- Reduce water consumption by 10% by 2030 (target already met in 2023)
- Reduce waste sent to third parties by 10% by 2030 (target not met in 2023)
- Deliver $12 million of cost savings in 2024 from efficiency programs
- Launch at least 15 new products in 2024
Environmental Challenges
- Prolonged destocking by customers across both industrial and personal care segments
- Weaker demand environment in Coatings due to customer destocking and macroeconomic factors
- Weaker end market demand in Talc impacting sales to automotive plastics customers
- Global macroeconomic uncertainty
Mitigation Strategies
- Improved pricing and favorable product mix benefits
- Self-help measures implemented in Talc leading to improved profitability
- New product launches and customer joint development projects
- Efficiency and growth programmes targeting $30 million of annual savings by 2025 and $90 million of above-market revenue by 2026
Supply Chain Management
Supplier Audits: 12 key supplier site visits in 2023
Responsible Procurement
- Business Partner Code of Conduct
- Supplier sustainability requirements
- Enhanced supplier screening system
- Support for certified sustainable palm oil
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Water scarcity
Transition Risks
- Carbon pricing
- Customer demands
- Consumer trends
- Investor demands
- Raw material supply/prices
- Access to renewable electricity
- Energy prices
Opportunities
- Increased demand for sustainable products
- Opportunities to decarbonise operations
Reporting Standards
Frameworks Used: GRI, SASB
Certifications: ISO 14001
Third-party Assurance: TÜV SÜD
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Rheolate® PHX 7025
- BENTONE® PLUS GLOW
- Bio-based defoamers
- Antiperspirants using waste aluminium
Awards & Recognition
- EcoVadis Gold rating