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SIBUR Board of Directors approves 2025 Sustainable Development Strategy

January 17/2020

MOSCOW (MRC) -- SIBUR Holding, Russias largest integrated petrochemicals company, announces that its Board of Directors has approved the 2025 Sustainable Development Strategy, as per the company's press release.

The Strategy identifies five key focus areas (Responsible Business, Environment, Society and Partnership, Sustainable Product Portfolio, and Climate Impact Mitigation) and sets respective goals as follows:

    Responsible Business. SIBUR intends to annually reduce LTIF by 5% for its employees and contractors, at least double the share of women in the senior management positions, adopt the Code of Counterparty Business Ethics, and improve its compliance system, including development of the Human Rights in the Workplace programme.
    Environment. SIBUR intends to recycle at least 50% of all generated waste, reduce the specific mass of contaminants in wastewater by 40%, and cut water consumption per ton/unit by at least 5%. As part of Operation Clean Sweep, SIBUR is planning to minimise the amount of plastic pellets lost into the environment.
    Society and Partnership. As part of the 2025 goals, the Company is to establish a public council under the Formula for Good Deeds programme, launch at least three long-term environmental projects as part of this programme, and increase the share of employees participating in volunteering and other socially important initiatives to 20%. In addition, the Company aims to provide training in sustainable development for 85% of its employees and establish at least two international partnerships to promote sustainability.
    Sustainable Product Portfolio. The Company plans to increase investments into R&D projects focusing on polymer waste recycling and use of renewable feedstock by 50%, build an effective communication system to promote sustainable development across the supply chain, and make sure that at least 40% of manufactured PET contains recycled PET granules.

    Climate Impact Mitigation. SIBUR intends to cut greenhouse gas emissions per ton/unit in Midstream and Petrochemicals segments by 5% and 15%, respectively, and increase the share of green energy in the Companys energy mix fivefold.

Leonid Mikhelson, Chairman of the Board of Directors at SIBUR Holding said: "SIBUR is continuously working to create added environmental and social value. With the new Strategy approved, the Company has the ambition, potential and opportunities to contribute to the resolution of global problems that society is facing today."

Dmitry Konov, Chairman of the Management Board at SIBUR Holding said: "Being Russian leading petrochemical company and one of the fastest growing global chemical industry majors, SIBUR operates in the interests of all stakeholders as our products play an important part in the day-to-day life of many people around the world. The Companys commitment to sustainability and approval of the 2025 Sustainable Development Strategy were primarily driven by SIBURs active role in unlocking the potential of polymer recycling, efforts to promote circular economy and initiatives to address other challenges that our society is now facing.

The Company will continue to work toward integrating the circular economy opportunities in its business model, which will help us incrementally achieve our ambitious sustainability goals."

The Sustainable Development Strategy is aligned with the Companys mission and values and 13 United Nations Sustainable Development Goals (SDGs) in which SIBUR is best suited to make the strongest impact. In addition to facilitating the achievement of sustainable development goals directly through its core activities, SIBUR also supports and embraces various projects and initiatives aimed at protecting the environment, mitigating the climate impact, developing innovation, and promoting culture, healthcare and education.

As MRC informed before, in mid-August 2019, SIBURs Blagoveshchensk site held a ceremony to celebrate the completed reconstruction of the purified terephthalic acid (PTA) production facility, the only one currently in Russia. PTA is a precursor to polyethylene terephthalate (PET), one of the worlds most widespread polymers that is used in the production of plastic bottles for beverages, synthetic fibres, various packaging, and medical supplies. PTA is also used to make eco-friendly plasticisers for toys, flooring and other products. In Russia, annual consumption of TPA amounts to around 500 kt. An increase in output from 272 to 350 ktpa driven by the upgrade of the existing capacities in Blagoveshchensk will help largely phase out reliance on imports.

As per MRC's ScanPlast report, imports of PET chips into Russia increased by 13% year on year in the first eleven months of 2019, reaching 130,800 tonnes, compared to 116,100 tonnes a year earlier (excluding shipments from Belarus). Russia's PET imports almost doubled in November 2019, totalling 12,300 tonnes, versus 6,300 tonnes in October;  imports of material were 8,200 tonnes in November 2018. The share of Chinese material was 78% (9,600 tonnes) in November versus 92% (5,800 tonnes) a month earlier.

SIBUR is the largest integrated petrochemicals company in Russia. The Group sells its petrochemical products on the Russian and international markets in two business segments: Olefins & Polyolefins (polypropylene, polyethylene, BOPP films, etc.) Plastics, Elastomers & Intermediates (synthetic rubbers, EPS, PET, etc.). SIBURs petrochemicals business utilises mainly own feedstock, which is produced by the Midstream segment using by-products purchased from oil and gas companies. More than 26,000 employees working in SIBUR contribute to the success of customers engaged in the chemical, fast moving consumer goods (FMCG), automotive, construction, energy and other industries in 80 countries worldwide. In 2018, SIBUR reported revenue of USD 9.1 billion and adjusted EBITDA of USD 3.3 billion.
Author:Margaret Volkova
Tags:PET-granulate, terephthalic acid, packaging, PET bottles, Sibur Holding, SIBUR-PET, Russia.
Category:General News
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