Difference between revisions of "LyondellBasell"

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     | title =
     | title =
     | label4= Headquarters (Benelux Organization)
     | label4= Headquarters (Benelux Organization)
     | data4 = Rotterdam, Netherlands; Houston TX, United States; London, United Kingdom
     | data4 = Rotterdam, the Netherlands; Houston TX, United States; London, United Kingdom
     | title =
     | title =
     | label5= Year of Origin
     | label5= Year of Origin
     | data5 = 2007
     | data5 = 2007
     | title =
     | title =
     | label6= Emissions (All Scopes)
     | label6= Emissions (Scope 1&2)
     | data6 = 24,1 Megatons of CO2 (2020)
     | data6 = 23.9 Megatons of CO<sub>2</sub>e (2021)
     | title =  
     | title =  
    | label7= NCI assessment
    | data7 = Very low
     | title =  
     | title =  
     | label7= Total Revenue
     | label8= Total Revenue
     | data7 = 27,8 billion USD (2020)
     | data8 = 47.2 USD (2021)
     | label8= Stock Exchange
     | label9= Stock Exchange
     | data8 = New York
     | data9 = New York
     | label9= Key People
     | label10= Key People
     | data9 = Kenneth (Ken) Lane (CEO), Jacques Aigrain (chairman)
     | data10 = Kenneth (Ken) Lane (CEO), Jacques Aigrain (chairman)
     | label10= Number of Employees
     | label11= Number of Employees
     | data10 = 19.200
     | data11 = 19,200
     | title =
     | title =
     | label11= Subsidiaries
     | label12= Subsidiaries
     | data11 = {{plainlist|
     | data12 = {{plainlist|
* LyondellBasell consists of 133 legal entities <ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2015/lyb-2015-ifrs-dutch-law-annual-report.pdf P 155- 158</ref>
* LyondellBasell consists of 133 legal entities<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2015/lyb-2015-ifrs-dutch-law-annual-report.pdf pp.155- 158</ref>
}}
}}
   }}
   }}
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  |below      =  
  |below      =  
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'''LyondellBasell Industries Holdings''', stylized as '''LyondellBasell''', was founded in 2007 by merger of Basell Polyolefins and Lyondell Chemical Company.<ref>https://www.lyondellbasell.com/en/about-us/history/company-history-2000/</ref> Roots of the company trace back to 1985. <ref>https://www.lyondellbasell.com/en/about-us/history/company-history-1998-1953/</ref> LyondellBasell is Dutch company with British and American roots. The company manufactures at 55 sites in 17 countries and sells products into approximately 100 countries. <ref>https://www.lyondellbasell.com/globalassets/about-us/corporate-brochure---letter.pdf</ref> The main office of LyondellBasell Europe, Asia and International is based in the center of Rotterdam but the company has other headquarters in Housten, London, and Hong Kong. The company employs 19.200 people (2021).<ref>https://www.forbes.com/companies/lyondellbasell-industries/?sh=7973f45f45ef</ref> Revenue of LyondellBasell was 27,753 billion dollars in 2020.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-reports-2020-earnings/</ref>  
'''LyondellBasell Industries Holdings''', stylized as '''LyondellBasell''', was founded in 2007 by merger of Basell Polyolefins and Lyondell Chemical Company.<ref>https://www.lyondellbasell.com/en/about-us/history/company-history-2000/</ref> Roots of the company trace back to 1985.<ref>https://www.lyondellbasell.com/en/about-us/history/company-history-1998-1953/</ref> LyondellBasell is a Dutch company with British and American roots. The company manufactures at 55 sites in 17 countries and sells products into approximately 100 countries.<ref>https://www.lyondellbasell.com/globalassets/about-us/corporate-brochure---letter.pdf</ref> The main office of LyondellBasell Europe, Asia and International is based in the center of Rotterdam but the company has other headquarters in Housten, London, and Hong Kong. The company employs 19,200 people (2021).<ref>https://www.forbes.com/companies/lyondellbasell-industries/?sh=7973f45f45ef</ref> Revenue of LyondellBasell was 27.753 billion dollars in 2020.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-reports-2020-earnings/</ref>  


LyondellBasell is one of the largest plastics, chemicals, and refining companies in the world.<ref>https://www.lyondellbasell.com/en/about-us/who-we-are/ </ref>  As they are ranked 10th in the global top 50 chemical companies of 2021, they can be considered a key player in their industry.<ref>https://cen.acs.org/sections/global-top-50.html</ref>   
LyondellBasell is one of the largest plastics, chemicals, and refining companies in the world.<ref>https://www.lyondellbasell.com/en/about-us/who-we-are/ </ref>  As the company is ranked 10th in the global top 50 chemical companies of 2021, LyondellBasell can be considered a key player in their industry.<ref>https://cen.acs.org/sections/global-top-50.html</ref>   


== Company Structure ==
== Company Structure ==
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The company has two main leadership branches, the Leadership Team and the Board of Directors. The leadership team is comprised of senior executives that lead LyondellBasell’s business and staff functions, furthermore, the team oversees operational issues and the implementation of corporate strategies and provides support to the CEO.<ref>https://www.lyondellbasell.com/en/about-us/leadership/</ref> The Board of Directors is led by Chairman Jacques Aigrain and oversees management and the overall course of LyondellBasell’s business and strategy. The members of the board include the Chairman, CEO, and ten independent directors that are elected annually by shareholders.<ref>https://www.lyondellbasell.com/en/about-us/leadership/</ref>
The company has two main leadership branches, the Leadership Team and the Board of Directors. The leadership team is comprised of senior executives that lead LyondellBasell’s business and staff functions, furthermore, the team oversees operational issues and the implementation of corporate strategies and provides support to the CEO.<ref>https://www.lyondellbasell.com/en/about-us/leadership/</ref> The Board of Directors is led by Chairman Jacques Aigrain and oversees management and the overall course of LyondellBasell’s business and strategy. The members of the board include the Chairman, CEO, and ten independent directors that are elected annually by shareholders.<ref>https://www.lyondellbasell.com/en/about-us/leadership/</ref>


Up until December 2021 Bhavesh Patel was the CEO of the company but has now stepped down. Kenneth Lane is the current interim CEO and Peter Vanacken has has been appointed the position of CEO starting June 2022.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-appoints-peter-vanacker-as-chief-executive-officer/ </ref>     
Up until December 2021 Bhavesh Patel was the CEO of the company but has now stepped down. Kenneth Lane was the interim CEO and Peter Vanacken has has been appointed the position of CEO starting June 2022.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-appoints-peter-vanacker-as-chief-executive-officer/ </ref>     


=== Leadership Team ===
=== Leadership Team ===
{| class="wikitable"
{| class="wikitable"
|+Executive Board <ref>https://www.lyondellbasell.com/en/about-us/leadership/</ref>
|+Executive Board<ref>https://www.lyondellbasell.com/en/about-us/leadership/</ref>
!Name
!Name
!Function
!Function
!Remuneration x1000USD
!Remuneration x1000 USD
|-
|-
|Kenneth (Ken) Lane
|Peter Vanacken
|Interm Chief Executive Officer
|Chief Executive Officer
|3316,4
|
|-
|-
|Bhavesh Patel
|Bhavesh Patel
|Chief Executive Officer
|Chief Executive Officer
|15570,5
|15570.5
|-
|-
|James Guilfoyle
|James Guilfoyle
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|Jeffrey Kaplan
|Jeffrey Kaplan
|Executive VP-Legal & Public Affairs
|Executive VP-Legal & Public Affairs
|2798,7
|2798.7
|-
|-
|Micheal McMurray
|Michael McMurray
|Executive VP and CFO
|Executive VP and CFO
|3923,4
|3923.4
|-
|-
|Torkel Rhenman
|Torkel Rhenman
Line 122: Line 124:
|Unkown
|Unkown
|-
|-
|Micheal VanDerSnick
|Michael VanDerSnick
|Senior VP- Americas manufacturing
|Senior VP- Americas manufacturing
|Unkown
|Unkown
Line 128: Line 130:
|}
|}


The Remuneration of the Leadership Team is based on the 2021 Annual General Meeting of Shareholders Proxy statement. The remuneration is based on the year 2020 and includes: 1 Salery, 2. Bonus, 3. Stock Awards, 4. Option Awards, 5. Non-Equity Incentive Plan Compensation, 6. Change in Pension Value, 7. All other compensation (Fees or Intercontinental trips, Tax preparation etc.).<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2020/proxy-statement-2021-annual-general-meeting.pdf</ref>
The remuneration of the Leadership Team is based on the 2021 Annual General Meeting of Shareholders Proxy statement. The remuneration is based on the year 2020 and includes: 1. Salery, 2. Bonus, 3. Stock Awards, 4. Option Awards, 5. Non-Equity Incentive Plan Compensation, 6. Change in Pension Value, 7. All other compensation (Fees or Intercontinental trips, Tax preparation etc.).<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2020/proxy-statement-2021-annual-general-meeting.pdf</ref>


=== Board of Directors ===
=== Board of Directors ===
{| class="wikitable"
{| class="wikitable"
|+Executive Board <ref>https://www.lyondellbasell.com/en/about-us/leadership/</ref>
|+Executive Board<ref>https://www.lyondellbasell.com/en/about-us/leadership/</ref>
!Name
!Name
!Function
!Function
!Remuneration x1000USD
!Remuneration x1000 USD
|-
|-
|James Aigrain
|James Aigrain
Line 183: Line 185:
|}
|}


The Remuneration of the Board members is based on the 2021 Annual General Meeting of Shareholders Proxy statement. The remuneration is based on the year 2020 and includes: 1 Fees earned or paid in cash, 2. Stock Awards, 3. All other compensation (Fees or Intercontinental trips, Tax preparation etc.).<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2020/proxy-statement-2021-annual-general-meeting.pdf</ref>
The remuneration of the board members is based on the 2021 Annual General Meeting of Shareholders Proxy statement. The remuneration is based on the year 2020 and includes: 1. Fees earned or paid in cash, 2. Stock Awards, 3. All other compensation (Fees or Intercontinental trips, Tax preparation etc.).<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2020/proxy-statement-2021-annual-general-meeting.pdf</ref>


=== Accountant ===
=== Accountant ===
The external auditor for the Dutch statutory accounts in 2020 was PricewaterhouseCoopers Accountants N.V. ("PwC"). In accordance with Dutch Law, LyondellBasell's external auditor is appointed by the general meeting of shareholders and is nominated for appointment by the Board upon advice from the Audit Committee. The Audit committee proposed that shareholders appoint PwC as its auditor again in 2021.<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2020/2020-dutch-financial-report.pdf P51</ref>
The external auditor is PricewaterhouseCoopers Accountants N.V. (PwC).<ref>LyondellBasell. (2022). Financial Report 2021. p. 138. Retrieved from https://www.lyondellbasell.com/globalassets/investors/company-reports/2021/2021-dutch-financial-report.pdf</ref> In accordance with Dutch Law, LyondellBasell's external auditor is appointed by the general meeting of shareholders and is nominated for appointment by the Board upon advice from the Audit Committee. In the auditor report, there is no mentioning of climate-related risks.  


=== Main Activities ===
=== Main Activities ===


LyondellBasell is active in the chemical sector with products such as polymers, advanced polymers and fuels. It is one of the largest plastics, chemicals, and refining companies in the world. Furthermore, they are the leading producer of oxyfuels worldwide, as well as polypropylene in North America and Europe.<ref>https://www.lyondellbasell.com/en/</ref>
LyondellBasell is active in the chemical sector with products such as polymers, advanced polymers and fuels. It is one of the largest plastics, chemicals, and refining companies in the world. Furthermore, LyondellBasell is the leading producer of oxyfuels worldwide, as well as polypropylene in North America and Europe.<ref>https://www.lyondellbasell.com/en/</ref>


===Government===
===Government===
LyondellBasell did not receive NOW-support from the Dutch government<ref>https://www.uwv.nl/overuwv/Images/uwv-register-now-vijfde-aanvraagperiode.pdf</ref> , and does not have royal status.<ref>https://www.koninklijkhuis.nl/onderwerpen/onderscheidingen/predicaat-koninklijk/overzicht-predicaat-koninklijk</ref>
LyondellBasell did not receive NOW-support from the Dutch government<ref>https://www.uwv.nl/overuwv/Images/uwv-register-now-vijfde-aanvraagperiode.pdf</ref>, and does not have royal status.<ref>https://www.koninklijkhuis.nl/onderwerpen/onderscheidingen/predicaat-koninklijk/overzicht-predicaat-koninklijk</ref>


== Paris Agreement to Today ==
== Paris Agreement until Today ==


Since the Paris agreement, LyondellBasell has stated that they support the goal of net zero by 2050. <ref>https://www.lyondellbasell.com/en/sustainability/addressing-climate-change/</ref> The company has selected three global challenges that they find most relevant to their business: Plastic Waste, Climate Change, and Thriving society.<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P7</ref> Under these challenges they have created five pillars on which they will build their climate strategy. The pillars are: end plastic waste, advance the circular economy, address climate change, grow sustainable solutions, and enhance the workplace operations and communities.<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P7 </ref>
Since the Paris agreement, LyondellBasell has stated that the company supports the goal of net zero by 2050.<ref>https://www.lyondellbasell.com/en/sustainability/addressing-climate-change/</ref> The company has selected three global challenges that LyondellBasell finds most relevant to their business: Plastic Waste, Climate Change, and Thriving society.<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 7</ref> Under these challenges LyondellBasell has created five pillars on which the company will build their climate strategy. The pillars are: end plastic waste, advance the circular economy, address climate change, grow sustainable solutions, and enhance the workplace operations and communities.<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 7</ref>


In 2019, LyondellBasell achieved the first parallel production of polypropylene and low-density polyethylene made from renewable raw materials. These renewable-based polymers are part of their family of sustainable solutions called Circulen. An independent life cycle assessment study showed that the carbon footprint of these polymers is reduced by up to 75% in comparison with fossil-based polymers.<ref>https://www.lyondellbasell.com/en/utilities/advancing-possible/committed-to-reducing-our-carbon-footprint/ P21</ref>
In 2019, LyondellBasell achieved the first parallel production of polypropylene and low-density polyethylene made from renewable raw materials. These renewable-based polymers are part of their family of sustainable solutions called Circulen. An independent life cycle assessment study showed that the carbon footprint of these polymers is reduced by up to 75% in comparison with fossil-based polymers.<ref>https://www.lyondellbasell.com/en/utilities/advancing-possible/committed-to-reducing-our-carbon-footprint/ p. 21</ref>


===Financial Results since 2015===
===Financial Results since 2015===
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!Dividend
!Dividend
|-
|-
|2015<ref>lyondellbasell.com/globalassets/investors/company-reports/2015/lyb_annualreport_2015.pdf</ref>  
|2015<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2015/lyb_annualreport_2015.pdf</ref>  
|32,735 billion USD  
|32.7 billion USD  
|6,122 billion USD
|6.12 billion USD
|1,41 billion USD
|1.41 billion USD
|-
|-
|2016<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2016/2017_january_2016annualreport.pdf</ref>
|2016<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2016/2017_january_2016annualreport.pdf</ref>
|29,183 billion USD  
|29.2 billion USD  
|5,060 billion USD
|5.06 billion USD
|1,395 billion USD
|1.40 billion USD
|-
|-
|2017<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2017/annual-report-2017.pdf</ref>
|2017<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2017/annual-report-2017.pdf</ref>
|34,484 billion USD  
|34.5 billion USD  
|5,460 billion USD
|5.46 billion USD
|1,415 billion USD
|1.42 billion USD
|-
|-
|2018<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2018/2018-annual-report.pdf</ref>
|2018<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2018/2018-annual-report.pdf</ref>
|39,004 billion USD  
|39.0 billion USD  
|5,231 billion USD
|5.23 billion USD
|1,554 billion USD
|1.55 billion USD
|-
|-
|2019<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2019/2019-annual-report.pdf</ref>
|2019<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2019/2019-annual-report.pdf</ref>
|34,727 billion USD  
|34.7 billion USD  
|4,116 billion USD
|4.12 billion USD
|1,462 billion USD
|1.46 billion USD
|-
|-
|2020<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2020/2020-annual-report.pdf</ref>
|2020<ref>https://www.lyondellbasell.com/globalassets/investors/company-reports/2020/2020-annual-report.pdf</ref>
|27,8 billion USD  
|27.8 billion USD  
|1,6 billion USD
|1.60 billion USD
|1,405 billion USD
|1.41 billion USD
|-
|2021
|XXX billion USD
|XXX billion USD
|XXX billion USD
|}
 
====Scandals and controversies====
[[File:Fire.png|thumb|Image of fire after explosion at LyondellBasell center near Marseille <ref>https://www.nu.nl/buitenland/4088030/politie-vermoedt-opzet-bij-brand-in-chemische-fabriek-marseille.html?redirect=1 </ref>]]
 
In its Climate report of 2020, LyondellBasell states that they work hard to reduce environmental impact but that incidents can still occur. In 2020 LyondellBasell reported a total of 73 environmental incidents. LyondellBasell classifies incidents on a scale of 0 to 5 of which only level 2+ are reported.<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P 57</ref>  The number of 73 incidents of 2020 could therefore be higher. These environmental incidents are costing LyondellBasell money, in 2020 the company spend $280.615 in fines and penalties.
 
{| class="wikitable"
|+Environmental Incidents LyondellBasell <ref>  https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P 57</ref>
!
!2015
!2016
!2017
!2018
!2019
!2020
|-
|-
|Number of Incidents
|2021<ref name=":0">https://www.lyondellbasell.com/globalassets/investors/company-reports/2021/2021-dutch-financial-report_final.pdf p5</ref>
|93
|47.2 billion USD
|99
|8.77 billion USD
|79
|1.49 billion USD
|94
|65
|73
|}
|}
 
The revenues of LyondellBasell increased by 68%, in 2021 compared to 2020. This large increase can be attributed to average sales prices being higher in 2021 for many of the company's products as sales prices generally correlate with crude oil prices, which increased relative to 2020.<ref name=":0" />
{| class="wikitable"
|+Environmental, Health, and Safety Enforement Actions <ref>  https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P 57</ref>
!
!2015
!2016
!2017
!2018
!2019
!2020
|-
|Fines and Penalties Paid
|$173.496
|$387.696
|$643.038
|$984.640
|$210.165
|$280.615
|}
 
Two environmental incidents of LyondellBasell made it to the news.
 
In July 2021, an acetic acid leak resulted in the deaths of two contractors and the hospitalization of 30 others at the LyondellBasell facility near La Porte, Texas.<ref>https://edition.cnn.com/2021/07/27/us/texas-chemical-leak-lyondellbasell/index.html</ref>  The leak involved a chemical acid used in food grade vinegar, people exposed to this chemical can experience irritation and burns to the skin and difficulties breathing.<ref>https://edition.cnn.com/2021/07/27/us/texas-chemical-leak-lyondellbasell/index.html</ref>  It was found that approximately 100.000 pound of this acid was released during the leak. Personal injury attorny Miriah soliz said: "They have severe trauma. They're seeing people screaming and yelling, grown men crying, getting flooded with gas and fumes. Unable to breathe, making them very ill, and not knowing whether their friends survived or not."<ref>https://abc13.com/lyondellbasell-mass-casualty-lyondell-chemical-release-la-porte-incident/10913127/</ref>  On the official La Porte complex part of the LyondellBasell website this incident is not mentioned.<ref>https://www.lyondellbasell.com/en/la-porte-complex/</ref> 
 
In July 2015, an explosion occurred at the same time in two tanks at the LyondellBasell complex near Marseille.<ref>https://www.nu.nl/buitenland/4088030/politie-vermoedt-opzet-bij-brand-in-chemische-fabriek-marseille.html?redirect=1 </ref>  The explosion followed by a fire did not cause for any casualties as it happened at around 3am.  Around noon the next day the fire was under control. The fires are suspected to be set as a result of criminal activity.<ref>https://www.reuters.com/article/france-fire-intent-idUSP6N0S203N20150714 </ref>  The bouches-du-Rhône department stated that the smoke did not pose immediate health risk to surrounding areas.<ref>https://www.reuters.com/article/france-fire-intent-idUSP6N0S203N20150714 </ref>


== Current  Emissions ==
== Current  Emissions ==
When it comes to LyondellBasell’s emissions, it does not provide data on scope 1 and 2 emissions from 2015, 2019, and 2020 as shown in the table below. In their climate report LyondellBasell fails to mention its scope 3 emissions, and they are therefore also not included in their goals for 2030. In order to stay within the existing guidelines in Europe LyondellBasell participates in the European Union emissions Trading System (ETS).<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P 55</ref>  Annually they purchase emission allowances to meet their obligations. The EU sites subject to ETS represent approximately 30% of our total Scope 1 emissions.<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P 55</ref>


{| class="wikitable"
{| class="wikitable"
|+Total emissions 24,1 Megatonnes of CO2 (2020)
|+Total emissions 23.9 Megatonnes of CO<sub>2</sub>eq (2021)<ref>https://www.lyondellbasell.com/globalassets/sustainability/2021-lyb-sustainability-report.pdf p66</ref>
!Scope 1
!Scope 1
!Scope 2
!Scope 2
!Scope 3
!Scope 3
|-
|-
|15,4 Megatonnes of CO2 (2020)
|16.1 Megatonnes of CO<sub>2</sub>eq
|8,7 Megatonnes of CO2 (2020)
|7.9 Megatonnes of CO<sub>2</sub>eq 
|XXX Megatonnes of CO2 (2020)
|XXX Megatonnes of CO<sub>2</sub> 
|-
|-
|}
|}


{| class="wikitable"
{| class="wikitable"
|+GHG Emissions 2015, 2019, 2020 <ref> https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P55</ref>
|+GHG Emissions 2015, 2019, 2020 (Megatonnes CO<sub>2</sub>eq)<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 55</ref>
!Type
!Type
!2015
!2015
Line 320: Line 271:
|-
|-
|Scope 1 emissions
|Scope 1 emissions
|14,4
|14.4
|15,3
|15.3
|15,4
|15.4
|-
|-
|Scope 2 emissions
|Scope 2 emissions
|8,7
|8.7
|8,7
|8.7
|8,7
|8.7
|-
|-
|Total emissions
|Total emissions
|23,1
|23.1
|24,0
|24.0
|24,1
|24.1
|-
|-
|GHG intensity (metric tons of CO2e per metric ton of product)
|GHG intensity (metric tons of CO<sub>2</sub>eq per metric ton of product)
|0,575
|0.575
|0,575
|0.575
|0,611
|0.611
|}
|}
LyondellBasell provides information on both scope 1 and 2 emissions from 2015, 2019, and 2020 in the climate report. LyondellBasell fails to report their scope 3 emissions which leaves out a big portion of their emissions. Scope 3 emissions are therefore also not included in their future climate goals. In order to stay within the existing guidelines in Europe LyondellBasell participates in the European Union emissions Trading System (ETS).<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 55</ref> Annually the company purchases emission allowances to meet their obligations. The EU sites subject to ETS represent approximately 30% of our total Scope 1 emissions.<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 55</ref>


To compile its GHG emission data LyondellBasell uses the following methods:
To compile its GHG emission data LyondellBasell uses the following methods:


* The Greenhouse Gas protocol: A Corporate Accounting and Reporting Standard  
* The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard  
* American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry, 2009
* American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry, 2009
* IPIECA's Petroleum Industries Guidlines for reporting GHG emissions, 2011
* IPIECA's Petroleum Industries Guidelines for reporting GHG emissions, 2011
 
LyondellBasell fails to report its scope 3 emissions in their climate reports. Scope 3 often represents the majority of an organization’s total GHG emissions.<ref>https://www.epa.gov/climateleadership/scope-3-inventory-guidance</ref> LyondellBasell, therefore, does not accurately report the company's emissions.


===Waste===
===Waste===


[[File:waste.png|thumb|Waste Disposal data LyondellBasell 2020 <ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P 56</ref>]]
[[File:waste.png|thumb|Waste Disposal data LyondellBasell 2020<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 56</ref>]]


LyondellBasell produces a lot of waste every year of which only a small portion gets recycled as can be seen in the figure. Of the hazardous waste they produce only 1% is recycled or reclaimed. And for both non-hazardous and hazardous, most waste is disposed in landfill. Most of the waste LyondellBasell produces is dilute hazardous liquid aqueous waste from their chemical plant operations. The non-hazardous waste includes general plant trash and construction debris.<ref> https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P 56</ref> All their waste is disposed of in accordance with the set regulations.<ref> https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P 56</ref>
LyondellBasell produces a lot of waste every year of which only a small portion gets recycled as can be seen in the figure. Of the hazardous waste LyondellBasell produces, only 1% is recycled or reclaimed. And for both non-hazardous and hazardous, most waste is disposed in landfill. Most of the waste LyondellBasell produces is dilute hazardous liquid aqueous waste from their chemical plant operations. The non-hazardous waste includes general plant trash and construction debris.<ref> https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 56</ref> All their waste is disposed of in accordance with the set regulations.<ref> https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 56</ref>


== Climate Policy and Plans ==
== Climate Policy and Plans ==


'''Climate Policy'''
In 2020, LyondellBasell used the CDP Climate Change framework to report climate risks and impacts. The CDP Climate Change framework uses three questionnaires (Climate Change, Water Security, and Forests) in order to get a better understanding of the company's climate impact.<ref>https://envizi.com/blog/cdp-reporting-framework/#:~:text=What%20is%20CDP%3F,with%20submissions%20due%20in%20July.</ref> At the beginning of 2021 the company expanded its approach using the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.


In 2020 LyondellBasell used the CDP Climate Change framework to report climate risks and impact. At the beginning of 2021 they expanded their approach using the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TCFD provides a framework to further strengthen governance, create strategy, assess risk and establish metrics that will guide our efforts as we strive to improve our sustainability.<ref> https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P21</ref> 
LyondellBasell has set two goals.  


In 2019 LyondellBasell announced their initial emission reduction target of 15% per ton of product produced by 2030 relative to 2015. They have now developed a pathway to absolute reduction in scope 1 and scope 2 GHG emissions by 30% relative to 2020 levels.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref>  
*  Reduce scope 1 and scope 2 GHG emissions by 30% in 2030 relative to 2020 levels.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref>
* Achieve net-zero emissions by 2050.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref>


 
The company's strategy in relation to these goals mostly focuses on using fossil fuels more efficiently. It wants to increase the use of feedstocks from renewable sources and plastic waste. Furthermore, the company wants to increase its renewable energy by using wind and solar energy through corporate power purchase agreements in the U.S. and Europe.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref> LyondellBasell knows it needs to produce 4.9 million megawatt-hours per year from renewable sources by 2030 in order to reach its goal.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref>  This would result in a reduction of approximately 2 million metric tons of CO2 from their scope 2 emissions. It is unclear from the report or website how far along the company is in this process. Lastly, it wants to assess breakthrough technologies to enable further decarbonization in their company, but again do not mention what technologies it is referring to. Furthermore, LyondellBasell states that the following approaches will also be used to reach their goals: Enhanced energy management and low emission steam; Flare minimization; Use of lower-emitting fuels; Process electrification and furnace upgrades; and A minimum of 50 percent of electricity procured from renewable sources.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref>
This approach includes:  
 
The goal of achieving net-zero emissions by 2050 is not mentioned in LyondellBasell’s 2020 sustainability report. This goal is mentioned on its website on September 19, 2021.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref> LyondellBasell mentions two main steps it will take to reach this goal. Firstly, the company will purchase high-pressure steam generated from natural gas to use at Wesseling olefin ad polyolefin production site to phase-out coal usage. This is expected to reduce its CO2 emissions by approximately 170,000 metric tons per year.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref> Secondly, the company wants to expand its global assessment of flare systems at its major sites. This project aims to optimize product recovery rate and flare operations which caused for a reduction of approximately 79,500 metric tons of CO2 when it was implemented at its European and U.S. sites in 2020.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/ </ref>
*  Enhanced energy management and low emission steam;
* Flare minimization;
* Use of lower-emitting fuels;
* Process electrification and furnace upgrades; and
* A minimum of 50 percent of electricity procured from renewable sources.
LyondellBasell has set two goals. Their first goal is to reduce scope 1 and scope 2 GHG emissions by 30% relative to 2020 levels.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref> Secondly, they want to achieve net-zero emissions by 2050.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref> For their 2030 goal, LyondellBasell has divided climate plans into the three different global challenges as mentioned earlier: Plastic Waste, Climate Change, and Thriving society.<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P7</ref>  


'''Plastic Waste'''
'''Plastic Waste'''


In the sustainability report of 2020 LyondellBasell states the following goals in relation to plastic waste reduction.<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P8</ref>
In the sustainability report of 2020 LyondellBasell states the following goals in relation to plastic waste reduction.<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 8</ref>


* Produce and market two million metric tons of recycled and renewable-based polymers annually  
* Produce and market two million metric tons of recycled and renewable-based polymers annually  
* Help divert millions of metric tons of plastic waste in cities across the globe through Alliance to End Plastic Waste projects  
* Help divert millions of metric tons of plastic waste in cities across the globe through Alliance to End Plastic Waste projects  
* Unlock at least five times our investment to increase the recovery and recycling of plastic and accelerate solutions to end plastic waste
* Unlock at least five times our investment to increase the recovery and recycling of plastic and accelerate solutions to end plastic waste


The company mentions that it wants to develop mechanical and advanced recycling solutions and reduce plastic waste from its supply chain but it is unclear from its sustainability report how exactly LyondellBasell want to reduce plastic pollution in the future.


The company mentions that they want to develop mechanical and advanced recycling solutions and reduce plastic waste from their supply chain but it is unclear from their sustainability report how exactly LyondellBasell want to reduce plastic pollution in the future.
=== NewClimate Institute (NCI) Report ===


'''Climate Change'''
== Due Diligence ==


For their climate change section of the report they state “Achieve a 15% reduction in CO2 * emissions per metric ton of product produced, compared with 2015. We are in the process of, and committed to, developing our climate ambition beyond 2030.”<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P9</ref> 
===Due Diligence===
'''Thriving Society'''


Their strategy in relation to this goal mostly focuses on using fossil fuels more efficiently. They want to increase the use of feedstocks from renewable sources and plastic waste. Furthermore, they want to increase their renewable energy by using wind and solar energy through corporate power purchase agreements in the U.S. and Europe.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref> LyondellBasell knows they need to produce 4.9 million megawatt-hours per year from renewable sources by 2030 in order to reach their goal.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref>  This would result in a reduction of approximately 2 million metric tons of CO2 from their scope 2 emissions. It is unclear from the report or website how far along they are in this process. Lastly, they want to assess breakthrough technologies to enable further decarbonization in their company, but again do not mention what technologies they are referring to. In another statement released by LyondellBasell they mention the following approaches will be used to reach the 2030 goal<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref>:
Their thriving society goal is the following: “by 2030 we want to operate safely every day and with zero incidents, zero injuries and zero accidents”.<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 10</ref>


* Enhanced energy management and low emission steam;
This goal does not refer to the environmental incidents that were mentioned earlier. This goal focuses on employees, contractors, customers, and neighborhoods. LyondellBasell wants to achieve this goal by building teams that reflect the communities in which the company operates and produce and market products that enable sustainable living.
* Flare minimization;
* Use of lower-emitting fuels;
* Process electrification and furnace upgrades; and
* A minimum of 50 percent of electricity procured from renewable sources.


'''Thriving Society'''
===Scandals and controversies===
[[File:Fire.png|thumb|Image of fire after explosion at LyondellBasell center near Marseille <ref>https://www.nu.nl/buitenland/4088030/politie-vermoedt-opzet-bij-brand-in-chemische-fabriek-marseille.html?redirect=1 </ref>]]


Their thriving society goal is the following: “by 2030 we want to Operate safely every day and with zero incidents, zero injuries and zero accidents”.<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf P10</ref>   
In its Climate report of 2020, LyondellBasell states that the company works hard to reduce environmental impact but that incidents can still occur. In 2020 LyondellBasell reported a total of 73 environmental incidents. LyondellBasell classifies incidents on a scale of 0 to 5 of which only level 2+ are reported.<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 57</ref>  The number of 73 incidents of 2020 could therefore be higher. These environmental incidents are costing LyondellBasell money, in 2020 the company spend $280.615 in fines and penalties.


This goal does not refer to the environmental incidents that were mentioned earlier. This goal focuses on employees, contractors, customers, and neighborhoods. LyondellBasell wants to achieve this goal by building teams that reflect the communities in which they operate and produce and market products that enable sustainable living.  
{| class="wikitable"
|+Environmental Incidents LyondellBasell<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 57</ref>
!
!2015
!2016
!2017
!2018
!2019
!2020
|-
|Number of Incidents
|93
|99
|79
|94
|65
|73
|}


'''2050'''
{| class="wikitable"
|+Environmental, Health, and Safety Enforement Actions<ref>https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 57</ref>
!
!2015
!2016
!2017
!2018
!2019
!2020
|-
|Fines and Penalties Paid
|$173.496
|$387.696
|$643.038
|$984.640
|$210.165
|$280.615
|}


The goal of achieving net-zero emissions by 2050 is not mentioned in LyondellBasell’s 2020 sustainability report, this goal was mentioned on their website on September 19th, 2021.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref> LyondellBasell mentions two main steps they will take to reach their goal. Firstly, the company will purchase high-pressure steam generated from natural gas to use at Wesseling olefin ad polyolefin production site to phase-out coal usage. This is expected to reduce their CO2 emissions by approximately 170,000 metric tons per year.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/</ref>  Secondly, they want to expand their global assessment of flare systems at their major sites. This project aims to optimize product recovery rate and flare operations which caused for a reduction of approximately 79,500 metric tons of CO2 when it was implemented at their European and U.S.  sites in 2020.<ref>https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/ </ref>
Two environmental incidents of LyondellBasell made it to the news.  


'''Scope 3 Emissions'''
In July 2021, an acetic acid leak resulted in the deaths of two contractors and the hospitalization of 30 others at the LyondellBasell facility near La Porte, Texas.<ref>https://edition.cnn.com/2021/07/27/us/texas-chemical-leak-lyondellbasell/index.html</ref> The leak involved a chemical acid used in food grade vinegar, people exposed to this chemical can experience irritation and burns to the skin and difficulties breathing.<ref>https://edition.cnn.com/2021/07/27/us/texas-chemical-leak-lyondellbasell/index.html</ref> It was found that approximately 100.000 pound of this acid was released during the leak. Personal injury attorny Miriah soliz said: "They have severe trauma. They're seeing people screaming and yelling, grown men crying, getting flooded with gas and fumes. Unable to breathe, making them very ill, and not knowing whether their friends survived or not."<ref>https://abc13.com/lyondellbasell-mass-casualty-lyondell-chemical-release-la-porte-incident/10913127/</ref> On the official La Porte complex part of the LyondellBasell website this incident is not mentioned.<ref>https://www.lyondellbasell.com/en/la-porte-complex/</ref>


In both their 2020 sustainability report and their statement about their 2050 goal, LyondellBasell fails to include their scope 3 emissions. Their focus lays in their scope 1 and 2 emissions and plans to reduce these two by 30% in 2030.<ref>In both their 2020 sustainability report and their statement about their 2050 goal, LyondellBasell fails to include their scope 3 emissions. Their focus lays in their scope 1 and 2 emissions and plans to reduce these two by 30% in 2030. </ref>
In July 2015, an explosion occurred at the same time in two tanks at the LyondellBasell complex near Marseille.<ref>https://www.nu.nl/buitenland/4088030/politie-vermoedt-opzet-bij-brand-in-chemische-fabriek-marseille.html?redirect=1 </ref> The explosion followed by a fire did not cause any casualties as it happened at around 3 am. Around noon the next day the fire was under control. The fires are suspected to be set as a result of criminal activity.<ref>https://www.reuters.com/article/france-fire-intent-idUSP6N0S203N20150714 </ref> The bouches-du-Rhône department stated that the smoke did not pose immediate health risk to surrounding areas.<ref>https://www.reuters.com/article/france-fire-intent-idUSP6N0S203N20150714 </ref>
 
===Due Diligence===


== Conclusion ==
== Conclusion ==
LyondellBasell is one of the biggest companies in their field. With 55 different manufacturing sites in 17 countries, and selling products in to approximately 100 countries, this company has a moral responsibility to be a leader in fighting climate change.  
LyondellBasell is one of the biggest companies in the chemical sector worldwide. With 55 different manufacturing sites in 17 countries, and selling products in to approximately 100 countries, this company has a moral responsibility to be a leader in fighting climate change.


LyondellBasell has set clear climate goals for 2030 and 2050. However, the way in which the company aims to achieve these goals is not specified clearly enough in their reports. Their lack of details plans makes it difficult to get a clear idea of how the company wants to achieve their set goals. Furthermore, in the climate report scope 3 emissions of LyondellBasell are not taken into account in their emissions, causing their data to not be complete.  
LyondellBasell has set clear climate goals for 2030 and 2050. However, the way in which the company aims to achieve these goals is not specified clearly enough in their reports. Its lack of detailed plans makes it difficult to get a clear idea of how the company wants to achieve its own goals. Furthermore, in the climate report scope 3 emissions of LyondellBasell are not taken into account, causing its data to not be complete.  


As the scope 3 emissions are not included in their emission calculations, their 2030 and 2050 goals are not good enough to stay within the 1.5 degrees. Therefore, the plans of LyondellBasell do not meet the requirements set by the Paris agreement.  
As the scope 3 emissions are not included in its emission calculations, the 2030 and 2050 goals are not good enough to stay within the 1.5 degrees. Therefore, the plans of LyondellBasell do not meet the requirements set by the Paris Agreement.


==  References ==
==  References ==

Latest revision as of 08:39, 27 July 2022

LyondellBasell Industries Holdings
Bedrijf Logo
Quick Facts
TypePublic limited company
sectorChemical industries
Headquarters (Benelux Organization)Rotterdam, the Netherlands; Houston TX, United States; London, United Kingdom
Year of Origin2007
Emissions (Scope 1&2)23.9 Megatons of CO2e (2021)
NCI assessmentVery low
Total Revenue47.2 USD (2021)
Stock ExchangeNew York
Key PeopleKenneth (Ken) Lane (CEO), Jacques Aigrain (chairman)
Number of Employees19,200
Subsidiaries
  • LyondellBasell consists of 133 legal entities[1]

LyondellBasell Industries Holdings, stylized as LyondellBasell, was founded in 2007 by merger of Basell Polyolefins and Lyondell Chemical Company.[2] Roots of the company trace back to 1985.[3] LyondellBasell is a Dutch company with British and American roots. The company manufactures at 55 sites in 17 countries and sells products into approximately 100 countries.[4] The main office of LyondellBasell Europe, Asia and International is based in the center of Rotterdam but the company has other headquarters in Housten, London, and Hong Kong. The company employs 19,200 people (2021).[5] Revenue of LyondellBasell was 27.753 billion dollars in 2020.[6]

LyondellBasell is one of the largest plastics, chemicals, and refining companies in the world.[7] As the company is ranked 10th in the global top 50 chemical companies of 2021, LyondellBasell can be considered a key player in their industry.[8]

Company Structure

The company has two main leadership branches, the Leadership Team and the Board of Directors. The leadership team is comprised of senior executives that lead LyondellBasell’s business and staff functions, furthermore, the team oversees operational issues and the implementation of corporate strategies and provides support to the CEO.[9] The Board of Directors is led by Chairman Jacques Aigrain and oversees management and the overall course of LyondellBasell’s business and strategy. The members of the board include the Chairman, CEO, and ten independent directors that are elected annually by shareholders.[10]

Up until December 2021 Bhavesh Patel was the CEO of the company but has now stepped down. Kenneth Lane was the interim CEO and Peter Vanacken has has been appointed the position of CEO starting June 2022.[11]

Leadership Team

Executive Board[12]
Name Function Remuneration x1000 USD
Peter Vanacken Chief Executive Officer
Bhavesh Patel Chief Executive Officer 15570.5
James Guilfoyle Executive VP- Advanced Polymer Solutions Unkown
Jeffrey Kaplan Executive VP-Legal & Public Affairs 2798.7
Michael McMurray Executive VP and CFO 3923.4
Torkel Rhenman Executive VP-Intermediates and Derivatives and refining Unkown
Kim Foley Senior VP- HSE, Global engineering Unkown
Dale Friedrichs Senior VP-HR and Global projects Unkown
Jean Gadbois Senior VP- Europe and Asia Unkown
Richard Roudeix Senior VP-Olefins & polyolefins, Europe, Middle East, Africa and India Unkown
Jim Seward Senior VP- Research and Development, Technology, and Sustainability Unkown
Anup Sharma Senior VP- Global Business Services Unkown
Michael VanDerSnick Senior VP- Americas manufacturing Unkown

The remuneration of the Leadership Team is based on the 2021 Annual General Meeting of Shareholders Proxy statement. The remuneration is based on the year 2020 and includes: 1. Salery, 2. Bonus, 3. Stock Awards, 4. Option Awards, 5. Non-Equity Incentive Plan Compensation, 6. Change in Pension Value, 7. All other compensation (Fees or Intercontinental trips, Tax preparation etc.).[13]

Board of Directors

Executive Board[14]
Name Function Remuneration x1000 USD
James Aigrain Chairman 675
Lincoln Benet Member 315
Jagjeet S. Bindra Member 332
Robin w.T. Buchanan Member 305
Anthony R. Chase Member Unkown
Stephen F. Cooper Member 294
Nance K. Dicciani Member 325
Robert W. Dudly Member Unkown
Claire S. Farley Member 317
Micheal S. Hanley Member 329
Albert J. Manifold Member 310

The remuneration of the board members is based on the 2021 Annual General Meeting of Shareholders Proxy statement. The remuneration is based on the year 2020 and includes: 1. Fees earned or paid in cash, 2. Stock Awards, 3. All other compensation (Fees or Intercontinental trips, Tax preparation etc.).[15]

Accountant

The external auditor is PricewaterhouseCoopers Accountants N.V. (PwC).[16] In accordance with Dutch Law, LyondellBasell's external auditor is appointed by the general meeting of shareholders and is nominated for appointment by the Board upon advice from the Audit Committee. In the auditor report, there is no mentioning of climate-related risks.

Main Activities

LyondellBasell is active in the chemical sector with products such as polymers, advanced polymers and fuels. It is one of the largest plastics, chemicals, and refining companies in the world. Furthermore, LyondellBasell is the leading producer of oxyfuels worldwide, as well as polypropylene in North America and Europe.[17]

Government

LyondellBasell did not receive NOW-support from the Dutch government[18], and does not have royal status.[19]

Paris Agreement until Today

Since the Paris agreement, LyondellBasell has stated that the company supports the goal of net zero by 2050.[20] The company has selected three global challenges that LyondellBasell finds most relevant to their business: Plastic Waste, Climate Change, and Thriving society.[21] Under these challenges LyondellBasell has created five pillars on which the company will build their climate strategy. The pillars are: end plastic waste, advance the circular economy, address climate change, grow sustainable solutions, and enhance the workplace operations and communities.[22]

In 2019, LyondellBasell achieved the first parallel production of polypropylene and low-density polyethylene made from renewable raw materials. These renewable-based polymers are part of their family of sustainable solutions called Circulen. An independent life cycle assessment study showed that the carbon footprint of these polymers is reduced by up to 75% in comparison with fossil-based polymers.[23]

Financial Results since 2015

Financial situation
Year Revenue Profit Dividend
2015[24] 32.7 billion USD 6.12 billion USD 1.41 billion USD
2016[25] 29.2 billion USD 5.06 billion USD 1.40 billion USD
2017[26] 34.5 billion USD 5.46 billion USD 1.42 billion USD
2018[27] 39.0 billion USD 5.23 billion USD 1.55 billion USD
2019[28] 34.7 billion USD 4.12 billion USD 1.46 billion USD
2020[29] 27.8 billion USD 1.60 billion USD 1.41 billion USD
2021[30] 47.2 billion USD 8.77 billion USD 1.49 billion USD

The revenues of LyondellBasell increased by 68%, in 2021 compared to 2020. This large increase can be attributed to average sales prices being higher in 2021 for many of the company's products as sales prices generally correlate with crude oil prices, which increased relative to 2020.[30]

Current Emissions

Total emissions 23.9 Megatonnes of CO2eq (2021)[31]
Scope 1 Scope 2 Scope 3
16.1 Megatonnes of CO2eq 7.9 Megatonnes of CO2eq XXX Megatonnes of CO2
GHG Emissions 2015, 2019, 2020 (Megatonnes CO2eq)[32]
Type 2015 2019 2020
Scope 1 emissions 14.4 15.3 15.4
Scope 2 emissions 8.7 8.7 8.7
Total emissions 23.1 24.0 24.1
GHG intensity (metric tons of CO2eq per metric ton of product) 0.575 0.575 0.611

LyondellBasell provides information on both scope 1 and 2 emissions from 2015, 2019, and 2020 in the climate report. LyondellBasell fails to report their scope 3 emissions which leaves out a big portion of their emissions. Scope 3 emissions are therefore also not included in their future climate goals. In order to stay within the existing guidelines in Europe LyondellBasell participates in the European Union emissions Trading System (ETS).[33] Annually the company purchases emission allowances to meet their obligations. The EU sites subject to ETS represent approximately 30% of our total Scope 1 emissions.[34]

To compile its GHG emission data LyondellBasell uses the following methods:

  • The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard
  • American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry, 2009
  • IPIECA's Petroleum Industries Guidelines for reporting GHG emissions, 2011

LyondellBasell fails to report its scope 3 emissions in their climate reports. Scope 3 often represents the majority of an organization’s total GHG emissions.[35] LyondellBasell, therefore, does not accurately report the company's emissions.

Waste

Waste Disposal data LyondellBasell 2020[36]

LyondellBasell produces a lot of waste every year of which only a small portion gets recycled as can be seen in the figure. Of the hazardous waste LyondellBasell produces, only 1% is recycled or reclaimed. And for both non-hazardous and hazardous, most waste is disposed in landfill. Most of the waste LyondellBasell produces is dilute hazardous liquid aqueous waste from their chemical plant operations. The non-hazardous waste includes general plant trash and construction debris.[37] All their waste is disposed of in accordance with the set regulations.[38]

Climate Policy and Plans

In 2020, LyondellBasell used the CDP Climate Change framework to report climate risks and impacts. The CDP Climate Change framework uses three questionnaires (Climate Change, Water Security, and Forests) in order to get a better understanding of the company's climate impact.[39] At the beginning of 2021 the company expanded its approach using the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

LyondellBasell has set two goals.

  • Reduce scope 1 and scope 2 GHG emissions by 30% in 2030 relative to 2020 levels.[40]
  • Achieve net-zero emissions by 2050.[41]

The company's strategy in relation to these goals mostly focuses on using fossil fuels more efficiently. It wants to increase the use of feedstocks from renewable sources and plastic waste. Furthermore, the company wants to increase its renewable energy by using wind and solar energy through corporate power purchase agreements in the U.S. and Europe.[42] LyondellBasell knows it needs to produce 4.9 million megawatt-hours per year from renewable sources by 2030 in order to reach its goal.[43] This would result in a reduction of approximately 2 million metric tons of CO2 from their scope 2 emissions. It is unclear from the report or website how far along the company is in this process. Lastly, it wants to assess breakthrough technologies to enable further decarbonization in their company, but again do not mention what technologies it is referring to. Furthermore, LyondellBasell states that the following approaches will also be used to reach their goals: Enhanced energy management and low emission steam; Flare minimization; Use of lower-emitting fuels; Process electrification and furnace upgrades; and A minimum of 50 percent of electricity procured from renewable sources.[44]

The goal of achieving net-zero emissions by 2050 is not mentioned in LyondellBasell’s 2020 sustainability report. This goal is mentioned on its website on September 19, 2021.[45] LyondellBasell mentions two main steps it will take to reach this goal. Firstly, the company will purchase high-pressure steam generated from natural gas to use at Wesseling olefin ad polyolefin production site to phase-out coal usage. This is expected to reduce its CO2 emissions by approximately 170,000 metric tons per year.[46] Secondly, the company wants to expand its global assessment of flare systems at its major sites. This project aims to optimize product recovery rate and flare operations which caused for a reduction of approximately 79,500 metric tons of CO2 when it was implemented at its European and U.S. sites in 2020.[47]

Plastic Waste

In the sustainability report of 2020 LyondellBasell states the following goals in relation to plastic waste reduction.[48]

  • Produce and market two million metric tons of recycled and renewable-based polymers annually
  • Help divert millions of metric tons of plastic waste in cities across the globe through Alliance to End Plastic Waste projects
  • Unlock at least five times our investment to increase the recovery and recycling of plastic and accelerate solutions to end plastic waste

The company mentions that it wants to develop mechanical and advanced recycling solutions and reduce plastic waste from its supply chain but it is unclear from its sustainability report how exactly LyondellBasell want to reduce plastic pollution in the future.

NewClimate Institute (NCI) Report

Due Diligence

Due Diligence

Thriving Society

Their thriving society goal is the following: “by 2030 we want to operate safely every day and with zero incidents, zero injuries and zero accidents”.[49]

This goal does not refer to the environmental incidents that were mentioned earlier. This goal focuses on employees, contractors, customers, and neighborhoods. LyondellBasell wants to achieve this goal by building teams that reflect the communities in which the company operates and produce and market products that enable sustainable living.

Scandals and controversies

Image of fire after explosion at LyondellBasell center near Marseille [50]

In its Climate report of 2020, LyondellBasell states that the company works hard to reduce environmental impact but that incidents can still occur. In 2020 LyondellBasell reported a total of 73 environmental incidents. LyondellBasell classifies incidents on a scale of 0 to 5 of which only level 2+ are reported.[51] The number of 73 incidents of 2020 could therefore be higher. These environmental incidents are costing LyondellBasell money, in 2020 the company spend $280.615 in fines and penalties.

Environmental Incidents LyondellBasell[52]
2015 2016 2017 2018 2019 2020
Number of Incidents 93 99 79 94 65 73
Environmental, Health, and Safety Enforement Actions[53]
2015 2016 2017 2018 2019 2020
Fines and Penalties Paid $173.496 $387.696 $643.038 $984.640 $210.165 $280.615

Two environmental incidents of LyondellBasell made it to the news.

In July 2021, an acetic acid leak resulted in the deaths of two contractors and the hospitalization of 30 others at the LyondellBasell facility near La Porte, Texas.[54] The leak involved a chemical acid used in food grade vinegar, people exposed to this chemical can experience irritation and burns to the skin and difficulties breathing.[55] It was found that approximately 100.000 pound of this acid was released during the leak. Personal injury attorny Miriah soliz said: "They have severe trauma. They're seeing people screaming and yelling, grown men crying, getting flooded with gas and fumes. Unable to breathe, making them very ill, and not knowing whether their friends survived or not."[56] On the official La Porte complex part of the LyondellBasell website this incident is not mentioned.[57]

In July 2015, an explosion occurred at the same time in two tanks at the LyondellBasell complex near Marseille.[58] The explosion followed by a fire did not cause any casualties as it happened at around 3 am. Around noon the next day the fire was under control. The fires are suspected to be set as a result of criminal activity.[59] The bouches-du-Rhône department stated that the smoke did not pose immediate health risk to surrounding areas.[60]

Conclusion

LyondellBasell is one of the biggest companies in the chemical sector worldwide. With 55 different manufacturing sites in 17 countries, and selling products in to approximately 100 countries, this company has a moral responsibility to be a leader in fighting climate change.

LyondellBasell has set clear climate goals for 2030 and 2050. However, the way in which the company aims to achieve these goals is not specified clearly enough in their reports. Its lack of detailed plans makes it difficult to get a clear idea of how the company wants to achieve its own goals. Furthermore, in the climate report scope 3 emissions of LyondellBasell are not taken into account, causing its data to not be complete.

As the scope 3 emissions are not included in its emission calculations, the 2030 and 2050 goals are not good enough to stay within the 1.5 degrees. Therefore, the plans of LyondellBasell do not meet the requirements set by the Paris Agreement.

References

  1. ↑ https://www.lyondellbasell.com/globalassets/investors/company-reports/2015/lyb-2015-ifrs-dutch-law-annual-report.pdf pp.155- 158
  2. ↑ https://www.lyondellbasell.com/en/about-us/history/company-history-2000/
  3. ↑ https://www.lyondellbasell.com/en/about-us/history/company-history-1998-1953/
  4. ↑ https://www.lyondellbasell.com/globalassets/about-us/corporate-brochure---letter.pdf
  5. ↑ https://www.forbes.com/companies/lyondellbasell-industries/?sh=7973f45f45ef
  6. ↑ https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-reports-2020-earnings/
  7. ↑ https://www.lyondellbasell.com/en/about-us/who-we-are/
  8. ↑ https://cen.acs.org/sections/global-top-50.html
  9. ↑ https://www.lyondellbasell.com/en/about-us/leadership/
  10. ↑ https://www.lyondellbasell.com/en/about-us/leadership/
  11. ↑ https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-appoints-peter-vanacker-as-chief-executive-officer/
  12. ↑ https://www.lyondellbasell.com/en/about-us/leadership/
  13. ↑ https://www.lyondellbasell.com/globalassets/investors/company-reports/2020/proxy-statement-2021-annual-general-meeting.pdf
  14. ↑ https://www.lyondellbasell.com/en/about-us/leadership/
  15. ↑ https://www.lyondellbasell.com/globalassets/investors/company-reports/2020/proxy-statement-2021-annual-general-meeting.pdf
  16. ↑ LyondellBasell. (2022). Financial Report 2021. p. 138. Retrieved from https://www.lyondellbasell.com/globalassets/investors/company-reports/2021/2021-dutch-financial-report.pdf
  17. ↑ https://www.lyondellbasell.com/en/
  18. ↑ https://www.uwv.nl/overuwv/Images/uwv-register-now-vijfde-aanvraagperiode.pdf
  19. ↑ https://www.koninklijkhuis.nl/onderwerpen/onderscheidingen/predicaat-koninklijk/overzicht-predicaat-koninklijk
  20. ↑ https://www.lyondellbasell.com/en/sustainability/addressing-climate-change/
  21. ↑ https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 7
  22. ↑ https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 7
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  25. ↑ https://www.lyondellbasell.com/globalassets/investors/company-reports/2016/2017_january_2016annualreport.pdf
  26. ↑ https://www.lyondellbasell.com/globalassets/investors/company-reports/2017/annual-report-2017.pdf
  27. ↑ https://www.lyondellbasell.com/globalassets/investors/company-reports/2018/2018-annual-report.pdf
  28. ↑ https://www.lyondellbasell.com/globalassets/investors/company-reports/2019/2019-annual-report.pdf
  29. ↑ https://www.lyondellbasell.com/globalassets/investors/company-reports/2020/2020-annual-report.pdf
  30. ↑ 30.0 30.1 https://www.lyondellbasell.com/globalassets/investors/company-reports/2021/2021-dutch-financial-report_final.pdf p5
  31. ↑ https://www.lyondellbasell.com/globalassets/sustainability/2021-lyb-sustainability-report.pdf p66
  32. ↑ https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 55
  33. ↑ https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 55
  34. ↑ https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 55
  35. ↑ https://www.epa.gov/climateleadership/scope-3-inventory-guidance
  36. ↑ https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 56
  37. ↑ https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 56
  38. ↑ https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 56
  39. ↑ https://envizi.com/blog/cdp-reporting-framework/#:~:text=What%20is%20CDP%3F,with%20submissions%20due%20in%20July.
  40. ↑ https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/
  41. ↑ https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/
  42. ↑ https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/
  43. ↑ https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/
  44. ↑ https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/
  45. ↑ https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/
  46. ↑ https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/
  47. ↑ https://www.lyondellbasell.com/en/news-events/corporate--financial-news/lyondellbasell-announces-goal-of-achieving-net-zero-emissions-by-2050/
  48. ↑ https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 8
  49. ↑ https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 10
  50. ↑ https://www.nu.nl/buitenland/4088030/politie-vermoedt-opzet-bij-brand-in-chemische-fabriek-marseille.html?redirect=1
  51. ↑ https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 57
  52. ↑ https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 57
  53. ↑ https://www.lyondellbasell.com/globalassets/sustainability/2020-lyb-sustainability-report.pdf p. 57
  54. ↑ https://edition.cnn.com/2021/07/27/us/texas-chemical-leak-lyondellbasell/index.html
  55. ↑ https://edition.cnn.com/2021/07/27/us/texas-chemical-leak-lyondellbasell/index.html
  56. ↑ https://abc13.com/lyondellbasell-mass-casualty-lyondell-chemical-release-la-porte-incident/10913127/
  57. ↑ https://www.lyondellbasell.com/en/la-porte-complex/
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  59. ↑ https://www.reuters.com/article/france-fire-intent-idUSP6N0S203N20150714
  60. ↑ https://www.reuters.com/article/france-fire-intent-idUSP6N0S203N20150714
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