Chemicals
With 95% of manufactured products relying on chemicals, the sector has an important role to play in reducing global warming. The SBTi is developing resources for chemicals companies to set science-based targets within the unique context of the industry.
Science-based targets for chemicals companies
Help shape the Chemicals Sector Target-Setting Criteria
The SBTi is calling for experts to contribute to the development of the Chemicals Sector Target-Setting Criteria through public stakeholder engagement. This process is being conducted in alignment with the Standard Operating Procedure (SOP) for Development of SBTi Standards to inform the development of robust, clear and practical criteria. See opportunities to participate below:
1. Public consultation: Have your say
From November 12, 2024 to January 10, 2025, the SBTi is conducting a second round of public consultation. This is your chance to review the key updates made to the draft criteria for this second consultation and have your say.
How to participate:
- Review the key updates: Start by reading the Main Changes Document
- Download the consultation materials:
- Share your insights: Submit your feedback by responding to the consultation through this form
2. Pilot testing: Apply today
The SBTi is also conducting a pilot phase for companies from across the chemicals industry to test its Draft Chemicals Sector Criteria and Tool. The aim of this process is for participants to use their own datasets to help identify potential improvements, and assess how feasible it is to implement the draft criteria and tool.
How to participate:
- Check the requirements: Review the Terms or Reference (TOR).
- Submit your application: Complete this form no later than January 10, 2025, if you meet the requirements laid out in the TOR.
Are you part of the chemicals industry, finance, academia or civil society? Join the effort to drive transformative climate action. Expert input from diverse stakeholders plays a critical role in shaping SBTi’s standards.
Why take action?
The chemicals industry is the largest industrial energy consumer and the third highest contributor of carbon emissions worldwide. In addition to having a leading role in industries such as health care, agriculture, construction and renewable energy systems, it is also key to the plastics value chain. Chemical manufacturers have a crucial role to play in limiting global warming to 1.5ºC. Leading global chemicals companies have begun to set science-based targets that meet the sector-agnostic SBTi criteria while sector-specific resources are in development.
WATCH: The SBTi's Chemicals Project Lead, Mike Danielson, provides an overview of the Chemicals Sector Guidance and public consultation process.
Developing a target-setting guidance for companies in the chemicals sector
From May to July, 2024, the SBTi held a public consultation for experts to provide feedback on the draft resources developed as part of the project. Read the first public consultation feedback report. Following this consultation period, a team of experts carefully reviewed the feedback received and updated the draft. The updated draft is now undergoing a second consultation from November 12, 2024 to January 10, 2025.
Applications are now open for companies to pilot the Chemicals Sector Criteria and Tool. To participate companies must submit their application by January 10, 2025.
The SBTi convened an Expert Advisory Group (EAG) that meet on a regular basis to participate in methodological discussions. It also published the Chemicals Sector Status Report which provides an updated examination of the climate impact of the sector and describes how the SBTi is working to enable stronger climate action from this critical industry.
The project Terms of Reference (TOR) detail SBTi’s plans, topics to be addressed and timelines for the development of the sector-specific criteria for chemical companies to set 1.5°C-aligned near- and long-term science-based targets.
Aligning the chemicals sector with 1.5°C
The chemicals industry faces challenges on its path to decarbonization, largely due to the wide variety of products, the use of hydrocarbons as feedstocks and the industry’s many subsectors. Additionally, it is expected that demand for chemical products will continue to rise. It is therefore difficult to establish a single, comprehensive method for chemicals’ companies to set science-based targets.
To spur further action, the SBTi has launched a project to develop sector-specific criteria and supplementary resources for corporates in the industry to set ambitious decarbonization targets.
The Chemicals Sector Target-Setting Criteria Draft proposes three new Sectoral Decarbonization Approach (SDA) pathways covering primary chemicals, and includes criteria applicable to all companies in the sector. Primary chemicals - i.e. ammonia, methanol and high value chemicals (HVC), which comprises ethylene, propylene, benzene, toluene and xylene - represent around 70% of direct emissions from the industry.
Avoided GHG emissions generated from the use of products from the chemicals industry are outside the scope of the SBTi and will not be considered as part of this project. Avoided emissions fall under a separate accounting system from corporate inventories and do not count toward science-based emission reduction targets.
Project participants
This project is being developed by the SBTi with support of Guidehouse. Stakeholder involvement is possible via the following groups:
Expert Advisory Group (EAG): Composed of technical experts from academia, research, non-profit, multilateral organizations and companies interested in setting science-based targets and contributing to the project execution. The project’s EAG currently consists of individuals from the following organizations:
- Air Liquide
- Air Products
- BASF
- Borealis
- Braskem
- CEFIC
- Center for Green Market Activation
- Dow Chemical
- Eastman
- ECOS (Environmental Coalition on Standards)
- Indorama Ventures
- Institute for Sustainable Communities (ISC)
- Institutional Investors Group on Climate Change (IIGCC)
- LANXESS
- Lund University
- LyondellBasell
- Nutrien
- OCP Group
- ShareAction
- Transition Pathway Initiative (TPI)
- University of Exeter
- University of Sheffield
- WRI
- World Wide Fund for Nature (WWF)
- Yara
Please note that the composition of the EAG may change over time, and this list will be updated as needed. EAG members volunteer in a personal capacity to provide technical advice over the duration of the project. While their expertise helps guide the development process, final content decisions rest solely with the SBTi. As a result, the final output does not necessarily represent or imply endorsement by individual EAG members or their employers.
Public consultation: All stakeholders are encouraged to provide feedback on each project component during the second round of public consultation that is taking place from November 12, 2024 to January 10, 2025.
Pilot testing: Companies interested in participating must meet the requirements outlined in the TOR and submit their interest through this application form no later than January 10, 2025.
Financial support
Financial support for the initial phase of the project was provided by the following organizations.
- Air Liquide
- Air Products
- BASF
- Indorama Ventures
- LyondellBasell
- Nutrien
- Yara
Development process
The project is being built on the outcomes of the scoping phase. The guidance is being developed to align with the SBTi’s Corporate Net-Zero Standard. Additionally, emissions reduction pathways will be developed based on the principles of SBTi’s SDA. The goals of the project are as follows:
- Develop sub-sector SDA pathways for high-impact products.
- Identify best practices for emissions accounting, with a focus on critical scope 3 categories for the industry.
- Provide guidance on addressing the impact of the circular economy (e.g. recycling) in accounting and target-setting.
- Set expectations for scope 3 target setting in high impact categories by chemical companies.
Resources
Second Public Consultation Resources
- Respond to the consultation
- Chemicals Sector Target-Setting Criteria Second Consultation Draft
- Chemicals Sector Target-Setting Tool Second Consultation Draft
- Chemicals Sector Target-Setting Criteria Supplemental Data Memorandum Second Consultation Draft
- Main Changes Document: Chemicals Sector Target-Setting Criteria Second Consultation Draft
First Public Consultation Resources
- Chemicals Sector Project First Public Consultation Feedback Log
- Chemicals Sector Project First Public Consultation Feedback Report
- Chemicals Sector Guidance First Consultation Draft
- Chemicals Sector Target-Setting Tool First Consultation Draft
- Data Supplement for Reviewers of the Chemicals Sector Guidance First Consultation Draft
- Watch the introductory video to the first public consultation
- Download the introductory video slide deck
EAG Resources
Background Resources
- Chemicals Sector Guidance Development Terms of Reference (April 2024)
- Science Based Target Setting in the Chemicals Sector: Status Report (January 2023)
- Sector Assessment: Barriers, Challenges, and Opportunities for Chemical Companies to Set Science-Based Targets (December 2020)
- Chemicals Sector Project Description (October 2018)
Contact
Join the chemicals project mailing list to receive our newsletters and stay up-to-date on this project.
For further information on the project, email chemicals@sciencebasedtargets.org
Browse more sectors
If your sector is not listed here, you can still set a science-based target using our methods and resources. Consult the step-by-step guide to get started.