TAGS: Sustainability / Natural Coatings
Covestro has focused its corporate vision on becoming fully circular. To this end, the materials manufacturer wants to completely align its entire production and product range as well as all areas in the long-term to the circular concept.
Reduction in Greenhouse Gas Emissions
Covestro aims to become climate neutral and achieve net zero emissions by 2035 for scope 1 and scope 2. On the path to achieving this goal, the company plans to cut greenhouse gas emissions from its own production (scope 1) and from external energy sources (scope 2) by 60 percent2 to 2.2 million metric tons by 2030.
In addition, indirect greenhouse gas emissions from upstream and downstream processes in the value chain (scope 3) will be further reduced. Covestro intends to announce a reduction target for this by 2023.
To achieve net zero emissions, Covestro anticipates dedicated investments of an accumulated EUR 250 million to EUR 600 million by 2030, resulting in lower operating expenses of expected EUR 50 million to 100 million annually due to growing energy efficiency.
On its path to achieve net zero emissions, Covestro also expects an increase in operating expenses in the magnitude of a low three-digit million EUR amount annually. These cost assumptions are based on the historic experience that prices for fossil-based energies are lower than prices for renewable energies.
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For the past two years, we have been working at full speed on our vision to become fully circular. We have already reached important milestones on this path and continue to set ourselves ambitious goals. Thanks to this approach, we are a pioneer in our industry and have accomplished many successes. One next milestone are our bold climate targets,” said Dr. Markus Steilemann, chief executive officer of Covestro.
Protecting Climate, Nature and Resources
“In a circular economy, we can protect the climate, nature and resources and achieve sustainable growth that respects planetary boundaries. Covestro and the chemical industry are part of the solution. Sustainability cannot be done alone and will require a greater effort from everyone to achieve the goals of the Paris Climate Agreement. Policymakers, business and society must work together to achieve ambitous climate goals.”
Three Levers Contributing to Achieve Climate Targets
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Production processes will be improved further and energy efficiency enhanced to achieve even more sustainable manufacturing.
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Covestro’s production sites worldwide are to be gradually converted to renewable electricity. That includes the use of offshore wind power, backed for example by a supply agreement with the energy provider Ørsted, which will cover 10 percent of the electricity required by the company’s sites in Germany from 2025 on.
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Steam is an important energy source for chemical production processes. Converting steam generation from fossil to renewable energy sources is a challenge that Covestro intends to solve by various routes.
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We aim to shift all our production processes and products completely to circular principles in the long-term, and we intend to support meeting our and climate objectives of our customers at the same time,” said Lynette Chung, chief sustainability officer at Covestro.
“Circularity and climate efforts are two sides of the same coin for us. With our climate neutral product offerings, our customers can thus expect us to fulfil both needs at the same time. We aim to make sustainability decisions as simple as possible for our customers.”
View Biobased Grades by Covestro
Source: Covestro