The American Chemistry Council (ACC) has expressed significant concerns regarding the draft Chemical Sector Guidance issued by the Science Based Targets Initiative (SBTi), arguing that it does not adequately address the complexities of the chemical industry and could hinder its innovative capabilities. The ACC asserts that the proposed target-setting guidance relies on generalized emissions reduction percentages from various industries, which are impractical for the chemical sector without drastic operational cutbacks. 

Mitch Toomey, Vice President of the ACC, emphasized that the prescriptive nature of SBTi’s guidance could discourage ACC members from setting targets, potentially undermining the industry’s efforts to reduce greenhouse gas (GHG) emissions and stifling U.S. advancements in lower-emission technology adoption. The ACC advocates for a more flexible approach that reflects the diversity of operations within the chemical industry, encouraging broader participation. 

In a letter to SBTi, the ACC recommended a sector-specific decarbonization approach based on emissions intensity and a cradle-to-gate framework for primary chemicals, which include high-value chemicals, ammonia, methanol, and hydrogen. This method would integrate scopes 1, 2, and relevant scope 3 emissions into a single absolute reduction target, providing the flexibility needed for significant GHG reductions through technological investments. 

Additionally, the ACC supports the inclusion of self-produced energy within the sector-specific pathway and suggests that a sector-specific approach for specialty chemicals, aligned with the International Energy Agency’s net-zero modeling, would be more practical. The ACC also calls for streamlined scope 3 targets, allowing chemical companies to choose the most effective investments for emissions reduction. 

The ACC is eager to collaborate with SBTi to refine the guidance, ensuring it accommodates the unique challenges of the chemical industry while advancing ESG goals. ACC member companies are committed to reducing emissions through initiatives like Responsible Care®, which focuses on environmental, health, and safety performance. 

Sources: 

https://www.americanchemistry.com/chemistry-in-america/news-trends/press-release/2024/sbtis-draft-chemical-sector-guidance-stifles-innovation-and-fails-to-support-industry-decarbonization-initiatives 

https://sciencebasedtargets.org/resources/files/SBTi-Chemicals-Sector-Guidance-Consultation-Draft.pdf