Chemical Industry's Path to Net-Zero: Beyond Direct Emissions
As we move through 2022 and beyond, chemical companies are expanding their emission reduction goals beyond direct operations, responding to increasing pressure from shareholders and customers for comprehensive carbon footprint management.
Key Takeaways
- Chemical industry customers demand carbon reduction throughout the value chain
- Most companies report upstream and downstream emissions, but few have detailed reduction plans
- Feedstock changes represent a significant opportunity for upstream emission reduction
Understanding Emission Scopes
Scope 1
Direct emissions from manufacturing processes
Scope 2
Emissions from energy used in operations
Scope 3
Upstream and downstream value chain emissions
The Challenge of Scope 3
While chemical companies have established clear targets for scope 1 and 2 emissions, scope 3 presents a more complex challenge. These emissions, encompassing both upstream raw materials and downstream product use and disposal, are harder to track and control.
2022: A Turning Point
The industry is shifting from merely measuring and reporting scope 3 emissions to developing concrete reduction plans. This transformation is largely driven by customer demands for suppliers to rapidly reduce all types of emissions throughout the value chain.
Looking Forward
As we progress toward 2050 net-zero goals, chemical companies must develop comprehensive strategies that address all emission scopes. Success will require innovation in feedstock selection, process optimization, and product lifecycle management.