On October 27, 2023, AICM releases 2023 Sustainable Development Report at CCIP. As an authoritative report in the industry, AICM summarizes the development trends of China's chemical industry in the context of "dual carbon" through stakeholder surveys, in-depth analysis of issues, and other methods. It analyzes and summarizes the current status and measures of value chain emission reduction in the chemical industry, and explores the challenges and opportunities faced by chemical enterprises in value chain emission reduction.
AICM 2023 Sustainable Development Report delves into and discloses the current situation and development path of foreign chemical enterprises in promoting value chain carbon reduction in the context of "dual carbon", aiming to help the chemical industry fully realize its potential and social responsibility, and provides a window for all sectors to understand the actions of multinational chemical enterprises in China in achieving the grand goals of "carbon peak" and "carbon neutrality".
Measures and challenges under the "dual carbon" goal
According to the report, under the "dual carbon" target requirements, foreign chemical enterprises have implemented diversified measures to address climate change, including the establishment of sustainable strategies, technological upgrading or innovation, process optimization, environmental governance, and the application of renewable energy. 84% of the surveyed member companies have set carbon reduction targets for Scope 1 and Scope 2.
At the same time, foreign chemical enterprises also face the following main challenges in achieving the "dual carbon" goal: improving energy management, optimizing energy structure, improving production processes, carbon emission accounting, and carbon trading market.
Key Points and Actions for Reducing Value Chain Emissions
Scope 3 emissions mainly refer to emissions from the value chain. According to the research results, Scope 3 emissions from upstream top three in importance are:
- Purchased goods and services
- Fuel-and energy-related
- Upstream Transportation and distribution
Scope 3 emissions from down stream top three in importance are：
- End-of-life treatment of sold products
- Use of sold products
- Downstream transportation and distribution
Some interviewees believe that the current value chain carbon neutrality in the chemical industry is facing many challenges and barriers, such as the lack of green raw material substitutes for upstream products, and the lack of synchronization between consumers' willingness to consume low-carbon products and the issue of low-carbon product premiums. The reduction of value chain emissions still faces certain pressure.
Despite the task of carbon neutrality in the value chain, the surveyed member companies are still actively taking action. According to the survey, 64% of the surveyed member companies have set value chain decarbonization targets at the group level, of which 8% have set value chain decarbonization targets in China.
Transforming the entire value chain strategy and turning challenges into opportunities
Looking ahead, the carbon neutrality transformation of the value chain is not only a challenge of the times it faces, but also a challenge for the chemical industry to improve its competitiveness and achieve opportunities for sustainable development.
On the one hand, by upgrading energy structure and optimizing process flow, we can reduce our own operational carbon emissions. On the other hand, chemical enterprises also need to collaborate with upstream and downstream enterprises through optimizing raw material structure, supplier management, and optimization measures such as improving upstream and downstream transportation and distribution, improving waste reuse and resource utilization, and gradually implementing carbon emission reduction plans generated upstream and downstream in the value chain.
Chairman of AICM, Mr. Li Lei, SABIC Vice President and Region Head, North Aisa, stated: As an association of nearly 70 multinational chemical enterprises with significant investments in China, AICM, along with its member companies and partners, has always been committed to promoting the sustainable development of chemical industry. We hope to facilitate the exchange of sustainable development practices among chemical industry by sharing of sustainability reports, and to help all relevant stakeholders fully understand the efforts and contributions made by the chemical industry for sustainable development.
