Arkema Raises Its Decarbonization Targets and Obtains SBTi Validation for Its 1.5°C Trajectory By 2030

COLOMBES, France, May 05, 2023--(BUSINESS WIRE)--Regulatory News:

Arkema (Paris:AKE), which had already strengthened its climate plan in July 2022, is setting new, even more ambitious targets by 2030 across its whole value chain, approved by the organization Science Based Targets initiative (SBTi)*. The Group now aims to reduce its greenhouse gas emissions by 48.5% for Scopes 1+2 and by 54% for Scope 3 by 2030 versus 2019.

In July 2022, the Group had set new greenhouse gas reduction targets, in line with the expectations of the Paris Agreement, which aims to limit global warming to 1.5°C above pre-industrial levels by the end of the century. Thanks to significant progress made in 2022, these targets have been raised, and Arkema now aims for a 48.5% reduction in the Group's greenhouse gas emissions for Scopes 1+2, and a 54% reduction for Scope 3 by 2030 relative to 2019. These new targets have been approved by the independent global organization Science Based Targets initiative (SBTi).

"Arkema has made long-standing commitments in the fight against climate change. From its energy procurement policy to industrial innovation, from its portfolio of solutions to the dissemination of a "climate and environment culture", this virtuous trajectory mobilizes all of the Group's components, and we are particularly proud that our new 2030 targets have been validated by the SBTi," commented Thierry Le Hénaff, Chairman and CEO.

Already committed for many years to the pursuit of energy efficiency at its industrial sites through its Arkema Energy program, and to the development of low-carbon energy procurement, the Group has identified room for improvement in its Scopes 1+2, and so plans to reduce its emissions from 3.7 million tonnes of CO₂ equivalent in 2019 to 1.9 million tonnes in 2030.

To fulfill this new commitment, the Group's action plan is structured around major levers, including:

• A much greater share of low-carbon steam and electricity consumed at its facilities, in particular through long-term contracts with producers. Arkema recently signed a major supply contract with ENGIE for the supply in France of 300 GWh per year of biomethane to further reduce the carbon footprint of its bio-based high performance Rilsan^® polyamide 11 and Pebax^® Rnew^® elastomer ranges; and

• Improving energy efficiency and optimizing facilities, an area in which many projects have already been rolled out in 2022, such as the installation of a new generation catalyst for nitrogen oxide emissions at the Lacq site in France.

Moreover, the whole initiative is supported by a capital expenditure envelope linked to decarbonization that could reach €400 million by 2030.

For its Scope 3 greenhouse gas emissions, the Group is committed to taking action across its entire value chain by reducing its emissions from 152 million tonnes of CO₂ equivalent in 2019 to 70 million tonnes in 2030. To achieve this, Arkema aims to increase the share of its renewable or recycled raw materials, select raw materials with a lower carbon footprint, reduce its most emissive activities, and develop polymer recycling channels, for example through the Virtucycle^® program and its subsidiary Agiplast.

In addition, the Group leverages the strength of its innovation for sustainable development in order to further develop its product and service offering towards solutions that contribute to the reduction of greenhouse gas emissions.

* Science Based Targets initiative (SBTi): partnership between CDP (Carbon Disclosure Project), United Nations Global Compact, WRI (World Resources Institute), and WWF (World Wide Fund for Nature).

Building on its unique set of expertise in materials science, Arkema offers a portfolio of first-class technologies to address ever-growing demand for new and sustainable materials. With the ambition to become in 2024 a pure player in Specialty Materials, the Group is structured into 3 complementary, resilient and highly innovative segments dedicated to Specialty Materials - Adhesive Solutions, Advanced Materials, and Coating Solutions - accounting for some 91% of Group sales in 2022, and a well-positioned and competitive Intermediates segment. Arkema offers cutting-edge technological solutions to meet the challenges of, among other things, new energies, access to water, recycling, urbanization and mobility, and fosters a permanent dialogue with all its stakeholders. The Group reported sales of around € 11.5 billion in 2022, and operates in some 55 countries with 21,100 employees worldwide.

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Contacts

Investor relations contacts:
Béatrice Zilm +33 (0)1 49 00 75 58 beatrice.zilm@arkema.com
Peter Farren +33 (0)1 49 00 73 12 peter.farren@arkema.com
Mathieu Briatta +33 (0)1 49 00 72 07 mathieu.briatta@arkema.com
Caroline Chung +33 (0)1 49 00 74 37 caroline.chung@arkema.com

Media contact:
Anne Plaisance +33 (0)6 81 87 48 77 anne.plaisance@arkema.com