EOS has engaged with the multinational chemical major, LyondellBasell Industries NV (LyondellBasell), on climate change since 2017. As part of Climate Action 100+ (CA100+), a collaborative engagement of more than 370 investors and their representatives seeking greenhouse gas emissions reductions from the world’s largest emitters, we co-lead the engagement with the company.
After LyondellBasell published its sustainability disclosures and CDP reports in 2017, we engaged with the company to set more ambitious climate targets. With the support of other CA100+ investors, we maintained discussions about the company’s progress in disclosing sustainability targets, including its planned science-based targets and a net-zero ambition.
In a meeting with senior executives, the company acknowledged our request for forward-looking targets, including science-based targets, and said it was investing in energy efficiency projects. In order to accelerate progress, EOS, as the CA 100+ lead for the company, used a legal mechanism to propose a discussion on climate change at the company’s 2021 annual meeting. This resulted in over 45 minutes of shareholder-board discussion on the company’s climate change strategy, during which the company indicated its willingness to make further commitments.
In 2021, we welcomed the company’s release of its climate strategy, setting a Scope 1 and 2 net-zero ambition for its global operations by 2050; a 30% absolute reduction of Scope 1 and 2 emissions by 2030; and a goal to source a minimum of 50% of its electricity from renewable energy by 2030.
The company is yet to lay out a detailed strategy by which it intends to transition to net zero. We have encouraged the company to collaborate with industry peers working on this challenge with the aim of developing a science-based, sector-wide approach to address Scope 3 emissions.
We continue to engage with LyondellBasell on its pathway to net zero including Scope 3 emissions and climate lobbying.