SBTi Chemical Sector Guidance

What was of interest at the Launch of First Chemicals Public consultation?

The draft Chemicals Sector Guidance proposes three new pathways covering primary chemicals, and includes criteria applicable to all companies in the sector.

The document contains criteria to set targets and explains how the target-setting is derived. In the consultation also a excel based tool is included to calculate the sector specific targets during the consultation period.

To begin with, the boundaries definition of the sector is key. For example, chemicals produced in oil refineries and products made from chemicals are not included in the guide. All the rest, such as base, intermediates, specialties, pharma, consumer chemicals and chemical recycling products are taken into consideration.

The guidance document contains different categories, like how to deals with direct emissions, scope 3 emissions and non-emission metrics. From all, nitrogen-based and urea-based fertilizers are heavily targeted as they represent a unique challenge, whereas alternative feedstock targets (CCU, bio-based and chemical recycling) are also included, not intending to replace the scope 3 targets. Moreover, it includes GHG accounting for specific scope 3 categories.

Just remember WHY focusing on this sector of the economy: it is the 3rd highest industrial emitter, the largest consumer of energy with energy intensive processes and complex value chains, with significant scope 3 emissions.

The consultation period is opened until July 2024, also a second period of consultation later in the year will be possible, followed by a pilot testing period. It is time to provide feedback!