LyondellBasell

LyondellBasell Industries Holdings
Quick Facts
Type	Public limited company
sector	Chemical industries
Headquarters (Benelux Organization)	Rotterdam, Netherlands; Houston TX, United States; London, United Kingdom
Year of Origin	2007
Emissions (All Scopes)	24,1 Megatons of CO2 (2020)
Total Revenue	27,8 billion USD (2020)
Stock Exchange	New York
Key People	Kenneth (Ken) Lane (CEO), Jacques Aigrain (chairman)
Number of Employees	19.200
Subsidiaries	LyondellBasell consists of 133 legal entities

LyondellBasell Industries Holdings, stylized as LyondellBasell, was founded in 2007 by merger of Basell Polyolefins and Lyondell Chemical Company. Roots of the company trace back to 1985. 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. 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). Revenue of LyondellBasell was 27,753 billion dollars in 2020.

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

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. 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.

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.

Leadership Team

Executive Board

Name	Function	Remuneration x1000USD
Kenneth (Ken) Lane	Interm Chief Executive Officer	3316,4
Bhavesh Patel	Chief Executive Officer	15570,5
James Guilfoyle	Executive VP- Advanced Polymer Solutions	Unkown
Jeffrey Kaplan	Executive VP-Legal & Public Affairs	2798,7
Micheal 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
Micheal 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.).

Board of Directors

Executive Board

Name	Function	Remuneration x1000USD
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.).

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.

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.

Government

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

Paris Agreement to Today

Since the Paris agreement, LyondellBasell has stated that they support the goal of net zero by 2050. The company has selected three global challenges that they find most relevant to their business: Plastic Waste, Climate Change, and Thriving society. 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.

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.

Financial Results since 2015

Financial situation

Year	Revenue	Profit	Dividend
2015	32,735 billion USD	6,122 billion USD	1,41 billion USD
2016	29,183 billion USD	5,060 billion USD	1,395 billion USD
2017	34,484 billion USD	5,460 billion USD	1,415 billion USD
2018	39,004 billion USD	5,231 billion USD	1,554 billion USD
2019	34,727 billion USD	4,116 billion USD	1,462 billion USD
2020	27,8 billion USD	1,6 billion USD	1,405 billion USD
2021	XXX billion USD	XXX billion USD	XXX billion USD

Scandals and controversies

Image of fire after explosion at LyondellBasell center near Marseille

In their 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. 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

	2015	2016	2017	2018	2019	2020
Number of Incidents	93	99	79	94	65	73

Environmental, Health, and Safety Enforement Actions

	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. 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. 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." On the official La Porte complex part of the LyondellBasell website this incident is not mentioned.

In July 2015 an explosion occurred at the same time in two tanks at the LyondellBasell complex near Marseille. 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. The bouches-du-Rhône department stated that the smoke did not pose immediate health risk to surrounding areas.

Current Emissions

When it comes to LyondellBasell’s emissions they have 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 their 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). Annually they purchase emission allowances to meet their obligations. The EU sites subject to ETS represent approximately 30% of our total Scope 1 emissions.

Total emissions 24,1 Megatonnes of CO2 (2020)

Scope 1	Scope 2	Scope 3
15,4 Megatonnes of CO2 (2020)	8,7 Megatonnes of CO2 (2020)	XXX Megatonnes of CO2 (2020)

GHG Emissions 2015, 2019, 2020

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 CO2e per metric ton of product)	0,575	0,575	0,611

To compile their GHG emission date 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 Guidlines for reporting GHG emissions, 2011

Waste

Waste Disposal data LyondellBasell 2020

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. All their waste is disposed of in accordance with the set regulations.

Climate Policy and Plans

Climate Policy

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.

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.

This approach includes:

• 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. Secondly, they want to achieve net-zero emissions by 2050. 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.

Plastic Waste

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

• 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 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.

Climate Change

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.”

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. LyondellBasell knows they need to produce 4.9 million megawatt-hours per year from renewable sources by 2030 in order to reach their goal. 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:

• 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.

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”.

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.

2050

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. 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. 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.

Scope 3 Emissions

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.

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 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.

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.