Sustainable Development Goals – Goal 13 (logo)

Risk description

The lack of a Group strategy to address climate-related transition risks (as defined by TCFD[3]), wider environmental challenges, and future resource scarcity could cause damage to Solvay reputation, business losses, undervaluation and difficulty attracting long-term investors.

Climate transition risks stem from various causes:

  • Policies and legal context: regulations and actions to limit CO2 emissions, for example increasing the price of greenhouse gas (GHG) emissions,
  • Technology: unsuccessful investment in new, lower-emission technologies,
  • Markets: lack of adaptation to changing customer behavior,
  • Reputation: negative stakeholder attitudes if their climate change concerns are not addressed effectively.

Apart from greenhouse gas emissions (GHG), Solvay activities’ environmental impacts come from:

  • Use of raw materials from fossil or non-renewable resources,
  • Energy consumption,
  • Water use,
  • Waste production (solid or liquid, hazardous or safe),
  • NOx, SOx, Volatile Organic Compound (VOC) or dust emissions.

Prevention and mitigation actions

  • Solvay’s strategy focuses on businesses with higher added value and less environmental exposure,
  • Every year, the Sustainable Portfolio Management (SPM) tool assesses the environmental exposure of our sales and our innovation projects portfolio. SPM includes climate-related criteria aligned on 2°C scenarios,
  • The Carbon Intensity action plan has a 40% reduction target for 2025 (reference year 2014).

2017 main actions

  • Appointment of an Executive Committee Supervisor for climate and the start of work on a comprehensive climate strategy roadmap,
  • A new plan and 2020 targets for air emissions (SOx, NOx, VOC), water usage, and hazardous waste.

(3) Task Force on Climate-related Financial Disclosure