Extreme weather conditions such as the recent Hurricane Harvey in Texas left large areas flooded, forcing tens of thousands to evacuate their homes and many businesses, including oil and gas companies, to suspend their operations.

Despite the overwhelming scientific consensus and widespread recognition of the threat, the actions required are substantial and require actions from the individual, organizational, national and transnational levels. Therefore, dealing with climate change should be a serious priority and should not be ignored.

FiberVisions A/S, our subsidiary in Denmark, voluntarily entered into a joint-agreement with the Danish Energy Agency to support a reduction in total energy consumed in Denmark by 7 percent by 2020, and becoming independent from fossil fuels by 2050, under the 2012 Energy Efficiency Directive.

Through many energy saving projects implemented and special studies conducted of energy consumption to identify potential areas of actions, FiberVisions A/S received increasing energy saving over the years. In 2017, energy saving was 775 MWh, which was 10% increasing compared to the starting year of this agreement in 2015. The shift in the Public Service Obligation (PSO) tariff for renewables away from electricity bills and energy taxes in 2016 has also played a part.

At IVL, we recognize these risks and are committed to taking action. In addition to our Climate Strategy 2020, we developed a Climate Strategy Corporate Standard that guides our global operations in terms of best practices for the climate, including GHG management, with key actions and KPIs for six segments.

We are fully committed to finding pathways towards developing effective low-carbon strategies to alleviate the activities that cause climate change. We see the circular economy as an important instrument in combatting climate change and an opportunity to strengthen our recycling business globally. Through innovation, we aim to create products that can be used at their maximum value for as long as possible. We have proactively established our targets as indicated in our Climate Strategy 2020 focusing on six key areas.

In 2017, we completed Life-cycle assessments (LCAs) at all of our operating sites in Asia. During this process, training was provided at all sites on LCAs in-line with ISO 14044 standards. We plan on expanding LCAs to 100% of our operating sites by 2020. We conducted an assessment in order to understand the sensitivity of the price of carbon on our business, and are taking further taking steps to study and implement a policy to embed the internal cost of carbon in our operations including M&A decisions.

We have been acknowledged through important achievements in addition to being recognized by external organizations such as RobecoSAM and CDP. Looking ahead, we remain committed to achieving our targets and will continuously raise the bar to create a sustainable strategy that leads to greater value for our stakeholders, bringing us closer to achieving our vision of making great products for society.

To support our corporate long-term GHG emissions targets and to improve both our environmental and economic operations, Indorama Petrochem – Rayong, Thailand, decided to switch from furnace oil and natural gas to biomass for its heaters. The newly-designed heater can be fed with many kinds of biomass materials including wood chips, wood pellets, and palm kernel shells. With cleaner fuel consumption, Scope 1 GHG emissions were reduced by more than 50% in 2017 from 2016.

Expanding and improving recycling are important ways to help address climate change. Manufacturing goods from recycled materials typically requires less energy than producing goods from virgin materials. Our most recent collaboration with Unilever and Ioniqa to recycle colored PET bottles into virgin PET is an innovative and important example of our continuous efforts. Further details of this initiative are provided in the Innovation Management section of this report, while more details on our recycling operations are given in other chapters.