The chemical sector accounts for nearly 6% of GHG emissions globally.We need an urgent system-wide transformation to address the climate crisis and avoid climate disaster.
In 2021, the responsible investment NGO ShareAction launched an engagement campaign targeting the 13 biggest European chemical companies. The goal? Persuading them to adopt credible strategies aligned with the 1.5°C target for decarbonising their operations towards a net-zero future. ShareAction’s campaign targets the following companies: Air Liquide, BASF, LyondellBasell, Covestro, Croda International, EMS-Chemie Holdings, Evonik Industries, Givaudan, Koninklijke DSM, Lanxess, Solvay, Symrise, Yara International.
At the current emissions rates, we could reach the 1.5°C critical threshold in six years. And the chemical sector accounts for nearly 6% of GHG emissions globally. For this reason, last March, ShareAction’s campaign was supported by a statement released by 15 investors with over four trillion dollars of assets under management. Including our members Ethos Foundation and Wheb.
In their statement, the investors called for an urgent system-wide transformation to address the climate crisis and avoid climate disaster. They “will support companies if they show strong potential for long-term value creation. Chemicals will still be a critical sector in 2050, but only companies that can decouple from fossil fuels and navigate the difficult transition ahead will have a share of that market. The investment decisions these companies make now will determine their path to 2050. Inaction, delay, and prolonging dependence on fossil fuels is not a viable path for the planet or for business.”
However, our engagement with the chemical industry does not stop here. Since some of our members are invested in companies targeted by the campaign, SfC will carry on further collaboration and engagement activity with ShareAction, in particular with Air Liquide. Our members Ecofi, Inyova, Meeschaert and Phitrust already expressed their interest in joining ShareAction’s engagement with AirLiquide. That will be on the following issues: green hydrogen, scope 3 targets, renewable energy commitment, biomethane.
Furthermore, in 2023 our members Fondazione Finanza Etica (FFE) and Meeschaert Asset Management successfully collaborated with ShareAction to engage with Solvay (one of the campaign’s targeted companies). At the 2023 AGM, they submitted questions covering various topics. Among them, the sourcing of rare metals and rare earths and the sustainability of the company’s suppliers. But also the transition to renewable energy and the consequential reduction of emissions.
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