Our vision is to promote the efficient use of energy as its generation, use and transmission contributes to climate change. As a public company, and one of the world’s leading petrochemical producers, Indorama Ventures (“IVL”) focuses on enhancing our responsibility for our actions and our impact on climate change. An effective climate change strategy must offer economic value for the business in addition to achieving our goal. Being one of the main cost drivers of production, we believe that energy efficiency is a big part of our solution in tackling climate change, conserving the supply of natural resources and gaining a competitive economic advantage while reducing our carbon emissions.
Indorama Ventures’ Commitment to Climate Change
To promote energy efficiency, we must focus our efforts on five strategic objectives:
- We will deploy the latest generation technologies in our plants and ensure that they are engineered and commissioned to be state-of-the-art assets that provide superior product quality with less energy consumption.
One of the methods we will employ to achieve this strategy is to upgrade any existing assets that are outdated and uncompetitive to newer and more energy-efficient technology. Another is to ensure that all new, or greenfield, plants are outfitted with the latest technologies.
- We will maximize efficient energy consumption using our integration synergies. Vertical integration enables us to achieve significant energy efficiency by linking our production processes with energy demand.
We will prefer to acquire both upstream and downstream assets that are physically close together or add downstream or upstream assets to pre-existing sites.
Out of our 51 (as of December 31, 2014) manufacturing facilities worldwide, 40 plants, representing more than 80% of IVL’s total capacity, are vertically integrated into six manufacturing clusters.
- We will aim to optimize our process continuously in order to allow us to stay relevant in the competitive market and adapt to constantly changing external factors.
One of the techniques that we will employ to achieve this strategy is to conduct research, both internally and with external third parties. Our comprehensive approach to process optimization will be driven by cross-functional teams within IVL collaborating to make best use of their expert industry knowledge and production know-how. We will also utilize benchmarking tools and partner with technology leaders in the industry in order to assess our performance standing against selected peers and identify improvement opportunities using the experience of others.
- We will continue to explore the use of renewable energy sources to decrease our dependence on carbon-based energy in the future.
Some of the methods employed to achieve this strategy include the use of solar, wind or other natural energy generation.
Activities under this strategy have already commenced and our investment since 2012 into a solar farm and solar rooftop in Thailand generated approximately 1.6 million kWh in 2014, equivalent to reduction of 2 thousand tons of CO2 emission. We have also been utilizing some wind power in Europe since 2008 and are currently exploring biomass as another source of renewable energy.
- We will continue to expand our recycling business. Since PET is 100% recyclable, recycling plays an important role in preserving vital natural resources, saving energy and reducing landfill wastes in our industry. Recycling uses 84% less energy than virgin PET production and thus can play a role in reducing the total amount of energy used to produce a marketable product.
One of the important channels available to the company is to bring the customers of recycled products into the circle and find ways to include recyclability into all products. Our participation in Project MainStream, a multi-industry CEO-led global initiative to accelerate business driven innovation and help scale recycling as part of circular economy, is one of the tactics we are employing to achieve this strategy.
Activities have already commenced under this strategy and in 2014 we recycled approximately 11 billion post-consumer recycled bottles in seven recycling facilities on three continents, producing recycled hollow fibers (rFibers) and recycled PET (rPET).