TAGS: Sustainability / Natural Adhesives
Covestro focuses its corporate vision on becoming fully circular. 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.
One concrete measure on this path is climate neutrality. Already in 2021, Covestro cut greenhouse gas emissions by 54 percent compared to 2005 and thus overachieved its previous sustainability target set for 2025.
Net Zero Emissions Target
Covestro has now defined a further bold target, the group 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 percent 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 intents 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.
A key aspect of the new 2035 reduction target is meeting the goal of the Paris Climate Agreement, under which the world community aims to limit global warming to 1.5 degrees Celsius.
Three Levers to Achieve Climate Targets
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Production processes will be improved further and energy efficiency enhanced to achieve even more sustainable manufacturing. One focus is on reducing nitrous oxide emissions. That will be possible through greater use of innovative catalyst technology. In addition, production plants can be controlled more efficiently thanks to further digitalization of the facilities and the use of digital technologies, while processes can be optimized using digital simulations. Digital technologies also help collect and track emissions data throughout the value chain
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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. Onshore wind energy will also be used, for example under the power purchase agreement with ENGIE, that covers 45 percent of the electricity needs of the Covestro site in Antwerp, Belgium. About 10 percent of the electricity Covestro needs in Shanghai, China, already comes from the solar parks of Datang Wuzhong New Energy Co. In addition to the existing cooperation models with power suppliers, further agreements are being planned in order to achieve a net zero carbon footprint
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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. To this end, the company is looking into the use of biogas and green natural gas as an energy source to generate renewable steam. Green hydrogen and green ammonia or green electricity could also be used as energy source for steam generation
Covestro is updating and expanding its existing management system at the start of fiscal year 2022. The group is also adding a sustainability component, measured by direct and indirect greenhouse gas emissions (scope 1 and 2) in 2022. Reducing greenhouse gas emissions (scope 1) has been a key performance indicator used as a component top management’s long-term compensation since January 2021.
Offering Climate Neutral Raw Materials
Urbanization increases the focus on constructing new energy-efficient buildings and renovating old ones. Large quantities of MDI are used worldwide as a raw material for making rigid polyurethane (PU) foam, a very effective insulation material for buildings and refrigerators.
Now Covestro has added a climate neutral3 MDI to the product portfolio. 40 million metric tons of CO
2 equivalent could be saved by using PU insulation. The new MDI types are climate neutral from the cradle to the gate thanks to the use of precursors from ISCC PLUS-certified mass-balanced organic waste and residual materials.
Focused on customer centricity, Covestro is already expanding its portfolio of climate neutral products continuously. Fundamental macro-economic challenges are addressed by enabling sustainable and unique solutions in key markets. The high demand for sustainable solutions is additionally growing due to global trends.
Another groundbreaking example for sustainable products is Covestro’s world first climate neutral polycarbonate, made using raw materials from mass-balanced organic waste and residual materials as well as renewable energy.
With the increasing trend of electromobility and the regulatory push for electric vehicles (EV), charging systems need to grow continuously, too. Using the climate neutral polycarbonate for EV charger could enable savings up to 450 kilotons CO
2 equivalent by 2030. Covestro’s climate neutral polycarbonate is being shipped to customers since 2021.
Check-out Covestro's Bio-based Product Range
Source: Covestro