ENERGY AND EMISSIONS

ENERGY USE IS A SIGNIFICANT DRIVER OF EMISSIONS at our manufacturing facilities. The majority of our energy use is from natural gas and electricity. We are proud of our early progress in reducing emissions intensity. However, we recognize that our 2022 data demonstrated a decline in our previous trend. This was due to multiple factors including the expiration of renewable energy credits (RECs) we had purchased for specific sites in our portfolio. In 2022 and into 2023, we are making significant progress on more detailed, multi-year strategies that will support achievement of our 2030 target and the annual KPIs set forth in our sustainability-linked financing. This strategy will focus on improving energy efficiency in operations and reducing reliance on RECs to achieve our target.

Customer Engagement

Novolex GHG reduction objectives align with those of many of our customers, who prioritize suppliers that share their sustainability goals. In addition to Product Carbon Footprint (PCF) analyses, we regularly provide allocated Scope 1 and 2 emissions data to customers, which helps them measure emissions resulting from their purchased product volume. This data is increasingly relevant to customers as they track their supplier emissions to assess their own Scope 3 emissions.