The Perstorp Group's greenhouse gas emission reduction targets have been approved by the Science Based Targets initiative, which means that they are in line with the levels required to meet the goals of the 2015 Paris Agreement. The targets for greenhouse gas emissions from Perstorp's operations (Scopes 1 and 2*) are in line with the reductions required to limit warming to 1.5°C, the most ambitious target of the Paris Agreement.
The Science Based Targets initiative (SBTi), a collaboration between CDP, the United Nations Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), defines and promotes best practices for science-based target setting. It also independently assesses companies' targets.
"Perstorp's goal is to be the provider of sustainable solutions," says Jan Secher, CEO of the Perstorp Group. "Part of this is setting targets to reduce impact in various areas, including carbon emissions. Perstorp wants to be actively involved in the transition of the chemical industry and we are convinced that this will also create value and new business opportunities. We have the opportunity to make a big positive impact by driving change, transforming our production and enabling new solutions that help our customers bring sustainable products and offerings to the market. This is our commitment, and aligning with the Paris Agreement is a natural consequence of this."
Perstorp has committed to reduce absolute Scope 1 and Scope 2 GHG emissions by 46.2 percent by 2030, from a 2019 baseline. The company has also committed to reduce Scope 3 GHG emissions from purchased goods and services, fuel and energy-related activities, upstream transportation and distribution, waste-generating activities and end-of-life treatment of products sold by 27.8 percent per ton of products sold within the same timeframe. Perstorp's target for value chain emissions (Scope 3) meets the SBTi criteria for ambitious value chain targets, which means it is in line with current best practice.
To achieve the science-based targets, every aspect of the company must be examined to find possible ways to reduce negative climate impacts. Perstorp took an important step towards reducing greenhouse gas emissions last December when the company began applying internal carbon pricing to areas 1, 2 and 3. Internal carbon pricing is a way of future-proofing a company by helping to encourage investments that improve sustainability and reduce CO2 emissions. It is a mechanism by which we set an internal price for our carbon emissions and take this into account when making business decisions and as a guiding principle for decision-making.
"To achieve our science-based targets, we need to make a major effort. This includes reducing energy consumption at our production sites and switching to renewable or recycled energy and raw material sources," says Anna Berggren, VP Sustainability at Perstorp Group. "The investments and decisions we make today will cause emissions in the long term. Therefore, we need to take this risk factor into account when making informed decisions to help us on our way to our 2030 targets and beyond. Internal carbon pricing is a very tangible way to incorporate sustainability considerations into our financial decision-making process."
* The most widely used international accounting tool, the Greenhouse Gas (GHG) Protocol, divides greenhouse gas emissions into three groups known as "scopes". Scope 1 comprises direct emissions from owned or controlled sources. Scope 2 includes indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions generated in a company's value chain.
