Operational Eco-efficiency and Environmental Return on Investment
To reduce avoidable environmental impacts, asset maintenance will ensure optimal operation. This, and other investments, will be monitored using Environmental Return on Investment (EROI) calculations. Besides our own businesses, we will also minimize such impacts from non-managed operations and joint ventures by engaging with our partners and stakeholders.
As a part of improving our operational eco-efficiency we are committed to reducing GHG, air emissions, and continue certifying all of our operated sites to the ISO 14001 standard to ensure standardization across all sites with regards to environmental management.
We are now selecting contractors and suppliers based on their environmental, social and governance (ESG) performance. The ESG performance of current suppliers will be reviewed regularly and we expect to collaborate with our customers to reduce any environmental impact from logistics to support a circular economy.
We are committed to lowering our combined Scope 1 and Scope 2 emissions intensity by 6% by 2020 against our 2013 baseline. To support this commitment we have provided GHG inventory training to all of our relevant staff and have completed our global GHG inventory.
As a circular economy relies substantially on recycling materials, leading to less water, energy and virgin material consumption, we expect to lower GHG emissions. Environmental impacts can be minimized at each stage during the product design, manufacture, handling, and transportation steps. We are now proactively seeking out solutions to environmental challenges where GHG accounting, climate change risk mitigation and innovation become part of our strategy.
We want to manage our waste in a responsible manner and exceed regulatory requirements where possible. We have strict compliance standards in place to manage waste at sites. This includes proper waste accounting by name, type and code (as required by law), storage location, methods of off-site transportation, treatment and disposal. We record the quantity of waste generated, stored onsite and disposed of onsite and off-site, committing ourselves to waste reduction and disposal by using partners who can reuse, recover or recycle waste, thus reducing hazardous waste and ensuring that its disposal is handled by qualified vendors.
In order to grow sustainably, we use the criteria set out in our environment policy when conducting due diligence prior to mergers and acquisitions as well as when planning Greenfield expansions.
IVL looks for opportunities to replace fossil fuels used in our own processes. We are increasing the use of renewable energy across our business as natural resources are finite and we recognize the need to lower our dependency on carbon-based energy production. Three of our plants, Orion Global Pet in Lithuania, Indorama Ventures Quimica in Spain and Wellman International in Ireland, are using 100% renewable electricity. Indorama Holdings in Lopburi, Thailand, installed a 5MW solar power plant to generate renewable energy. Additional renewable electricity projects are being implemented and will be completed in 2019. IVL continues to explore further possibilities to increase the our of renewable energy. We are committed to sourcing more electricity from renewable sources at our sites.
In 2018, the amount of renewable electricity purchased was approximately 16% higher than in 2017. We also consumed biogas and biomass as alternative renewable fuels in our processes and as such, overall renewable energy consumption increased by 6.9% from the previous year.
Our use of 2.75 million GJ of renewable energy resulted in saving over 176,000 tCO2e
Environmental Return on Investment (EROI)
We are committed to effectively managing our environmental footprint. Every year, we invest in initiatives that have a positive environmental impact as well as cost-savings. All of our investments undergo a feasibility and financial analysis to ensure that each of our projects are sustainable. Through our Management Information System (MIS), we track our capital expenditures, operating expenditures, cost-savings and environmental impacts for all of our projects. We are continually improving our MIS and therefore improving its coverage of our plants as well as our projects.
We also implemented other non-energy related projects such as water savings, reducing use of raw materials, chemicals, and feedstock consumption, reducing wastewater sludge disposal, and a reduction in other waste in our processes which helped in cutting emissions.
Environmental Project Expenditures
The table below summarizes the expenses and savings related to environmental projects from 2015 to 2018.
|Cost of CAPEX (million USD)||20.02||25.3||32.41||30.49|
|Cost – Annual OPEX (million USD)||0||1.96||3.37||5.45|
|Annual Cost-Savings (million USD)||6.67||4.94||6.83||7.19|
|Coverage of Data Globally (% of total production)||85||100||100||100|