Risk description

The Group strategy to address climate-related transition risks (as defined by TCFD[*]) could be ineffective and damage Solvay's reputation, business losses, undervaluation, and difficulty attracting long-term investors. The Group has decided to include water-related risks in climate-related transition risks, rather than in physical risks

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: failure to adapt to changing customer behavior;
  • Reputation: negative stakeholder attitudes if their climate change concerns are not addressed effectively.

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;
  • Solvay has a GHG emissions reduction plan.

2018 main actions

Solvay updated in September 2018 its greenhouse gas emissions approach. Solvay commits to reducing greenhouse gas emissions by 1 million tons by 2025, by improving its energy efficiency and energy mix and by investing in clean technologies. Climate risks and opportunities will be reviewed in 2019. 

(*) : TCFD – Task Force on Climate-related Financial Disclosures