Scope 1 + 2 GHG emissions
On track with our scope 1 + 2 target
We are well on track towards delivering 30% absolute reduction by 2030. Our scope 1 + 2 market-based GHG emissions improved 25%1 compared to our corrected 2016 baseline. Total scope 1 + 2 emissions were 1.24 million tons CO2eq in 2020. This is an increase compared to 2019 and is mainly due to inorganic growth and higher production volumes of key products in 2020. Our GHG efficiency (year-on-year) improved 8.6% in 2020.
Correcting our baseline in 2020
Our baseline GHG emissions figure of 2016 was increased to 1.65 million tons CO2eq, due to the inclusion of eight acquired sites in our reporting scope for the period 2017–2020 and the impact of methodology changes. Three newly built sites were also added to the reporting scope, however as they were constructed after 2016, have no impact on the baseline correction.
Our GHG reduction program
In order to achieve the targeted absolute GHG reduction by 2030, we have continued our dedicated program to help our key locations implement appropriate energy transition and energy efficiency measures. We are using performance diagnostics as well as self-assessments that are carried out at key sites to identify GHG emission reduction opportunities. The learnings from these sites is shared across all sites to enable further roll out of improvement projects.
Supported by a dedicated corporate budget that is available to our business groups, we executed a variety of GHG reduction projects in 2020. The execution of the 2020 program will have an impact of approximately 20 –25 kt CO2eq or approximately 1.5% on our GHG reductions. The projects range from relatively easy-to-implement modifications in operations, such as improving the insulation around hot parts, to installing advanced energy metering systems, up to the installation of best available technologies (for example, heating and cooling equipment). The contribution to our GHG reductions, due to the step-up in renewably sourced electricity that was made in Europe and North America in 2020, was offset by the current growth in non-renewably sourced electricity in China. This growth in China was due to the impact of acquisitions as well as organic growth in our China sites. In the coming years, in line with developing infrastructure, we will be actively pursuing opportunities for renewable electricity in China as well.
As a result of the above, the overall structural improvement increased from 17% to 18% from 2019 to 2020.
1 All data presented in Planet are subject to the non-financial reporting policy.