2021 Digital Sustainability Report
REIMAGINING CHEMISTRY TOGETHER
TO CREATE A BETTER WORLD
OUR SUSTAINABILITY JOURNEY
Over the past decade, we expanded our sustainability initiatives through the 3Ps – People, Planet and Prosperity and focused on our sustainability strategy by reimagining a healthier future. Going forward, we will accelerate sustainable solutions for the world’s biggest challenges and facilitate further dialogue to shape an agenda for a better world.
DISCOVER OUR ACTIVITIES IN THE FOLLOWING AREAS
ECONOIMIC
ECONOIMIC
Anticipating and managing current and future economic risks and opportunities for both the business and stakeholders help us think in a more integrated way about sustainability and to further expand our business strategy.
ENVIRONMENTAL
ENVIRONMENTAL
We are expanding the scope of our environmental stewardship. IVL commits to operate in compliance with all applicable regulatory, reputational and/or market risks related to climate change, and lower the GHG emissions.
SOCIAL
SOCIAL
The well-being within an organization for our employees while also supporting the ability of future generations to create and maintain a healthy community related to delivering equitability, diversity, connectivity and providing a good quality of life.
GROUP CEO MESSAGE
“Climate change threatens our ecosystems and our economies. The solution is decarbonization. Recognizing the urgency to act, Indorama Ventures is stepping up investing in our people and technology.”
ALOKE LOHIA
Group Chief Executive Officer Chairman of Sustainability and Risk Management Committee
CEO MESSAGE
“Our chemistry touches everyday life, and we are confident in our capacity to meet our customers’ growing needs while delivering on our sustainability ambition and contributing to the new world of circularity. ”
DILIP KUMAR AGARWAL
Chief Executive Officer and Chief Financial Officer Member of Sustainability and Risk Management Committee
Read moreCHIEF STRATEGY OFFICER MESSAGE
“We realized the need to unlock cross-functional interdependencies to achieve our full potential as 'One IVL' and become a sustainable company in the new ecosystem.”
UDEY PAUL SINGH GILL
Chief Strategy Officer Member of Sustainability and Risk Management Committee
Read moreCHAIRMAN OF ESG COUNCIL MESSAGE
“The circular economy is an industrial evolution, supported by our products and business operations which are also meeting consumers’ expectations through a ‘make-use-recycle’ model.”
Yash Lohia
Chairman of ESG Council Member of Sustainability and Risk Management Committee
Read moreGROUP CEO MESSAGE
This report outlines IVL’s success in focusing on the sustainability and climate issues that matter most to our customers, employees, shareholders, and communities in 2021. This past year has reinforced the need for businesses to focus on climate change. IVL is moving quickly on several fronts, and we are leading our actions in line with our core value of being responsible.
Moreover, we created a purpose statement, ‘Reimagining chemistry together to create a better world’, which we believe defines how we view our role and maintains our focus on the positive impact that we have on our world.
Getting to Net Zero
Last year’s COP26 in Glasgow ends with global agreement to accelerate action on climate this decade. All countries agreed to revisit and strengthen their current emissions targets to 2030, known as Nationally Determined Contributions (NDCs), in 2022 to limit global warming to 1.5 degrees Celsius. There’s a lot of important and hard work ahead, and we are doing our part.
Our Chief Technology Officers, as part of the Decarbonization Committee, will head IVL’s decarbonization strategy. The strategy consists of six prongs to reduce the company’s global carbon footprint and support countries where we have operations. The committee will provide technical guidance to each segment and ensure plant-level decarbonization efforts achieve our net zero ambition.
We are on track to achieve our 2025 goals and set up more ambitious 2030 targets. The 2030 targets include a 30% reduction in Scope 1 & 2 combined greenhouse gas (GHG) () intensity, 15% reduction in energy intensity, 25% use of renewable electricity, 20% reduction in water intensity, 90% diversion of waste from landfill, recycle 1.5 million tons in PET bale input annually and sustainability capital expenditures of US$ 7 billion.
Sustainability is Front and Centre
In pursuit of business growth and profitability, we do things the right way – economically, socially, and environmentally. Health and safety are non-negotiable as we implement these three approaches in our global operations.
Our vision statement, ‘To be a world-class sustainable chemical company making great products for society’ is backed by decarbonization and broader sustainability strategies as key differentiators going forward. This sharper focus will enable us to respond to any future uncertainties and improve our position in the post-COVID era.
Focus on Sustainable and Green Finance
IVL continues to demonstrate leadership in sustainable finance through our Sustainability Performance Targets (SPTs), which allow us to issue innovative investment instruments that are linked to sustainability performance. The SPTs are part of our Sustainability-Linked Finance Framework which has been independently assessed.
IVL’s strong commitment to protecting the environment are reflected in our first issuance of THB 10 billion in Sustainability Linked Bonds (SLBs), which drew considerable interest from a range of institutional investors. This issuance continues our pioneering approach to green finance in Thailand. The SLB is linked to our environmental performance and serves as an important step in optimizing our capital structure, as well as incentivizing our company and stakeholders. It marks an important development in the Thai capital market as investors focus more on environmental metrics, specifically relating to climate change. In addition, in 2021 we were the first Thailand-based company to invest in HSBC’s Green Deposit to support a wide range of environmental, social and governance projects.
Stronger Performance, Greater Innovation
IVL’s operations continue to focus on long-term performance through sustainability. We are more effectively integrating our operations, both downstream in packaging and upstream in feedstocks and IOD, while diversifying our product range, notably in surfactants, through strategic acquisitions and operational enhancements.
Our naphthaletes unit, which was established last year at our integrated production facility in the U.S., makes us the world's largest PNDA producer, with the greatest level of purity to serve high-end polyester markets. Our strategic acquisition of Brazil-based Oxiteno continues our focus on value accreting investments, gaining a unique portfolio of high-value surfactants and significantly extending our existing IOD business. It will also strengthen our position in Mexico and Latin America, and in green chemical innovation.
We are strengthening our position as a global recycling leader. In 2021, we completed our acquisition of PET recycling assets from CarbonLite Holdings and its subsidiaries in Texas, as well as two PET recycling facilities in Poland. We also announced a new greenfield recycling facility in West Java in Indonesia which will recycle almost two billion plastic bottles annually in support of our commitment to clean oceans and closed-loop solutions.
We acquired the state-of-the-art assets of Ngoc Nghia, a market leader in PET, preforms and closures in Vietnam, where we can increase our presence in a high-growth market offering a full range of PET packaging solutions with enhanced operational excellence.
At the end of last year, we inaugurated our Global Business Service Centre in Kolkata, India, which will play an important role for our operating sites worldwide by consolidating large-scale processes and deploying cutting-edge technology to drive operating efficiencies and promote our sustainability and transformation journey.
Addressing Safety Incidents and Improving Employee Safety
Health and safety remain the primary focus at all our sites. While we strive to achieve a strong operational performance within safe work environments, unfortunately incidents do occur. In 2021, we suffered two work-related fatalities in Texas in the U.S. and in Egypt (a contractor) while another employee was permanently disabled. Mitigation and enforcement actions were undertaken immediately at both facilities to improve employee safety together with additional training. Two of our facilities experienced fires, and the proper reporting and response procedures were immediately followed in both instances. Detailed investigation of each and every incident has been carried out, mitigation actions have been undertaken and lessons learnt were shared across all IVL sites.
Regretfully, there were a total of 16 COVID-related employee deaths last year, up from seven in 2020.
Culture of Leadership and Success
We continue to support the UN’s initiatives to showcase our collective work as part of the international business community and to demonstrate our leadership in taking effective action. As a signatory of the UN Global Compact, we actively support its 10 principles and promote its core values. We are also playing a constructive role in achieving the U.N.’s Sustainable Development Goals (SDGs).
Despite the ongoing challenges from the pandemic, I am delighted to report that the dedication of IVL’s global team resulted in numerous accolades in 2021. This began with our inclusion in the Dow Jones Sustainability Indices (DJSI) in which we ranked in the 97th percentile among the five most sustainable companies. Furthermore, we improved the previous year’s top 2% placement ranking (Gold medal) with a top 1% ranking (Platinum medal). We also got several sustainability accolades as presented in the report.
A Future of New Value Creation
Building sustainability across all our businesses is a key focus as our colleagues work tirelessly towards making IVL a future ready organization. The past year has demonstrated IVL’s efforts in sustainability and promoting a more circular economy by increasing our presence in recycling and working more closely with stakeholders to invest in our people and the planet through innovation and product development.
In addition, we are focused on developing our team with the right recruitment and training, and promoting outstanding leaders with the correct ‘growth mindset’ which is critical to our long-term success, together with an emphasis on digitalization as a vital component of change. We will include more bio-based feedstock in our products, and aim to invest US$4.7 billion for bio-based feedstock consumption in our operations with a goal of achieving 16% against IVL’s full target.
Finally, we would like to acknowledge our employees, stakeholders, business partners and associates for their continued support in making 2020 a year of accomplishment.
ALOKE LOHIA
Group Chief Executive Officer Chairman of Sustainability and Risk Management Committee
CHIEF STRATEGY OFFICER MESSAGE
IVL successfully managed through the pandemic in 2021 achieving a strong financial performance amid record production volumes. Our region-centric business model of integrated and regional supply across a diversified geographic and product base is proving its value. More broadly, we will continue to build-up our portfolio of sustainable products that plays to our strengths in offering innovative solutions that meet social needs in an uncertain environment.
Our response to the pandemic in the last two years has reflected our values as we pulled together to identify and prepare for risk as well as respond to prolonged disruption. We also showed how highly relevant businesses can contribute to helping the communities around us. Our global teams communicated constantly through risk alerts and newsletters to monitor key threats and craft interventions and responses.
Building Agility and Resilience
Strengthening our IOD business’ value chain has greatly improved our overall sustainability strategy. Our acquisition of Brazil-based Oxiteno has given us a unique portfolio of high-value surfactants and will broaden our expertise in green chemistry innovation, boost our ESG credentials, give us access to substantial growth potential in attractive home & personal care, agrochemicals, coatings and oil & gas markets. This builds on our earlier acquisition of Huntsman Corporation’s integrated EO and PO assets, ensuring IOD’s continued growth, development and innovation.
Our new PNDA production unit in the U.S. extends our specialty chemical portfolio and will meet demand over the next decade to make us the world’s largest PNDA producer.
Driving Progress Together
All our businesses are being combined under our ‘ONE IVL’ project to generate synergies across the group, strengthen our risk management, and facilitate agile decision-making. We are transforming our business under an integrated digital platform that will simplify and standardize our data, processes and practices globally. Lastly, our Global Business Solutions finance function will drive efficiencies and improve controls through consolidation and automation.
To help our company achieve its sustainability ambitions, we created six enabling functions, including business continuity, communications, digital, environmental health and safety, Indorama Ventures Excellence (IVEX) and sustainability, which are steered by experienced professionals identified within the organization and recruited from the industry. These enabling functions will perform their roles and execute their strategic and operational plans in line with IVL’s vision and mission.
The digital enabling function will lead our journey to create a well-informed and timely decision-making process while ensuring a robust digital culture to improve business performance.
IVL’s leadership development and IVEX programs, two important elements within this structure, nurture individuals with leadership potential and implement projects that sharpen our focus on sustainability while providing management development opportunities. Last year, 1,633 leaders globally completed IVL’s leadership program while 996 employees joined the IVEX program.
We are on track to fulfil our three-year business plan to 2024. We are proud that IVL’s digital transformation project won the 2021 CIO/CDO of the Year for Thailand by Thailand’s IDC Future Enterprise Awards. The implementation of our global ERP S4HANA system is progressing well, and we successfully rolled out Phase 1 in the fourth quarter of 2021. Project Olympus, our company-wide business and cost transformation initiative, achieved US$ 291 million in efficiency gains in 2021.
Accelerating Climate Solutions
Having reaffirmed our commitment to reduce emissions towards our goal of Net Zero Carbon, we formed a Decarbonization Committee to provide technical guidance to business segments and plants. Our decarbonization strategy has been implemented throughout the company, and additional aggressive 2030 targets were set: 30% GHG intensity reduction, 15% energy intensity reduction, 20% water reduction, and 25% renewable electricity consumption in line with the COP26 targets. We invested over US$ 44 million in CAPEX supporting green projects including energy and GHG reduction projects.
Our use of renewable electricity is increasing with a 2025 target of 10% and we installed solar panels at 10 sites. In 2021, six sites consumed 100% renewable electricity, totaling 7.5% of our total electricity consumed. We are exploring technology related to carbon capture utilization and storage (CCUS), green hydrogen, and have committed to using circular feedstocks amounting to one-quarter of our overall consumption by 2030.
Stronger Relationships and Partnerships
We are cooperating with our value chain partners to achieve a positive impact on sustainability, including suppliers, technology developers, customers, government agencies and consumers. We are incorporating ESG principles with suppliers, including GHG Scope 3 accounting and reduction targets. We are exploring CCUS and green hydrogen technologies and leading the way in advanced recycling. We are helping our customers reach their goals through carbon neutral products, packaging materials and business models. With government agencies, we are advocating rPET regulations and bottle collection programs. Finally, we are improving plastic waste separation and collection, recycling education, and promoting a circular economy among consumers.
Our Path to a Sustainable Future
Our COVID-19 Strategic Preparedness and Response Plan served us well during the pandemic, keeping our workers safe, maintaining our operations, and our commitment to our customers. Our agility when faced with challenges underscores our strength as an organization. We understand our responsibility. Implementing digital solutions, understanding the implications of climate change, adapting to supply chain disruption, and addressing millennial consumers’ needs are crucial for our long-term success.
I would like to thank all IVL employees for their contributions in making our company a success. I would also like to thank to our stakeholders for their collaboration and partnership along the road.
UDEY PAUL SINGH GILL
Chief Strategy Officer Member of Sustainability and Risk Management Committee
CHAIRMAN OF ESG COUNCIL MESSAGE
We took important steps over the past year to make more sustainable solutions at IVL. The ESG Council, one of five cross-segment councils formed in 2021, was established to explore synergies and align efforts. It aims to support value creation for all our stakeholders by better integrating ESG responsibilities into our daily activities and long-term sustainable performance. We declared our ‘Vision 2030' ambition to steer us in becoming a global industry standard in sustainability, which is built on three pillars: decarbonizing operations, driving innovative and sustainable products and shaping a future-ready organization. We are focusing on weaving IVL's corporate values "Diversity is our Strength" into the DNA of the organization; as such, we are proud to have supported International Women's Day 2022 with the theme of BreaktheBias, led by the newly-formed Diversity, Equity, and Inclusion (DEI) committee, as part of the ESG Council.
Towards Net Zero Carbon
Net zero carbon is a key component of IVL’s future. We continue to implement initiatives to achieve our goal of net zero carbon, not only in our operations but in our supply chain through our decarbonization strategy of: 1) improving operational efficiency; 2) consuming more renewable electricity; 3) increasing and expanding recycling facilities for mechanical and advanced recycling; 4) adopting future technology; 5) increasing bio-based and recycled feedstocks; and 6) offsetting residual emissions through natural capital solutions. IVL will invest US$ 4.7 billion to increase the use of biomass feedstock in our products. By 2030, a quarter of our feedstock range will be derived from sustainable sources, supporting a reduction in our greenhouse gas (GHG) emissions.
We are also focusing on green projects to improve our operational efficiency and help mitigate against carbon taxes, like the Emissions Trading Scheme (ETS) and the Carbon Border Adjustment Mechanism (CBAM), which will go into effect in the next few years. We have invested US$ 44 million in 2021 and plan to invest US$ 640 million by 2030 towards green projects to improve our reductions in energy, GHGs, water use, and waste generation.
We are on track to achieve our 2025 GHG emissions goals, and have set even more ambitious 2030 targets. Ten of our sites in four countries have installed solar rooftop panels. Further, we are working on procuring more renewable electricity through virtual power purchase agreements (VPPAs).
Our decarbonizing innovations not only reflect our vision and values, but they are also the smart approach towards an improved environment and marketplace, driven by mutually beneficial relationships with our employees, customers, suppliers, and wider communities.
To help our external stakeholders better understand our GHG Scope 3 emissions, and how we can lower environmental impacts, we will increase transparency in our supply chain, align procurement decisions to a 1.5°C reduction, and continue to pursue our ESG standards. We are actively engaging with our suppliers and procurement teams on GHG Scope 3 accounting and sharing our knowledge and best practices to drive reductions. We are also supporting our customers in achieving their GHG targets through our improved range of DejaTM carbon-neutral products, as demand increases for certified and sustainable products that guarantee high-grade quality with a lower carbon footprint.
Innovating for the Greater Good
IVL’s focus on new innovations and developing products for a better world took an important step forward with the creation of our Innovation Council, whose mandate is to ensure that our product strategy and innovation processes meet our business goals. We are aligning our business with increasing demand for more innovative products that are eco-friendly and offer improved performance and better value for a more sustainable future.
We are making next-generation products with a lower environmental impact and a life cycle assessment to continually evaluate the use of higher proportions of bio-based feedstocks or recycled PET materials to meet economic, performance and compliance requirements.
Our fibers segment is on track to benefit from the next megatrends growth cycle. At our Textilcord plant in Luxembourg, we relocated manufacturing to produce 20 million face masks annually that have neutralized viruses. In global mobility markets, we are the leading supplier of safety, comfort, and performance fibers used in the tire and automotive safety sectors. We have become a dependable local supplier of high-quality necessity and value-added fibers and yarns across major lifestyle markets, combining fashion and function to meet rapid urbanization.
In our IOD segment, we are developing a new technology center in the Woodlands, Texas. The facility will be our U.S. research and development hub for new products used for home; personal and industrial cleaning; and agrochemicals, energy, lubricants, mining, and coatings markets. It has links to sister facilities in Australia, India, and China. The research center is expected to be completed in 2022.
We are accelerating our transition towards downstream specialty surfactants and look forward to greeting our new Oxiteno employees in the first half of 2022. This strategic acquisition will provide our IOD sector with complementing high value-added (HVA) goods, world-class credentials in green energy innovations, sustainable feedstock integration, and geographic diversity.
Bringing Deja™ to Life
Launched in 2020, our Deja™ brand, is quickly becoming an important platform offering an increasing portfolio of products that provide sustainable closed-loop solutions, and has been expanding commercialization in the U.S.
We were also pleased to launch Deja™ carbon-neutral PET on 22 April 2021 (Earth Day). By incorporating the benefits of carbon reduction in the value chain, notably Scope 3 emissions, the product will help our customers reduce their carbon footprint and comply with today’s consumer demand for better value, improved performance, and most of all, environmentally friendly solutions. In response, we are preparing to launch more carbon-neutral products in 2022 and thereafter.
Through Deja™, we are developing a new “Ocean-Bound Plastic” that is out of regulated waste streams and prevents it from ending up in rivers and oceans. We are focusing on quality, traceability, certification, and compliance to offer a product that will have circularity as a key element. For end-of-life management, apart from mechanical recycling technology currently deployed in our facilities, we are looking at the potential for advanced recycling to complete the loop with our PET bottles, fibers and textiles which can further enhance our recycling leadership.
Driving Sustainable Values and Solutions
We aim to be a sustainable chemical company that tackles global challenges by reimagining chemistry in ways that offer practical solutions to the planet and to people’s health and well-being. Our sustainability goals and business strategy converge to create better outcomes, while our expertise in PET and recycling, and our integration across the petrochemical value chain, reflect our leading position in the industry.
We continued to invest in infrastructure to recycle as many PET bottles as possible and promote circularity. We acquired recycling plants, one in Texas, and are constructing a green field recycling plant in Karawang, Indonesia. These plants support our 2025 commitment to recycle 750,000 tons of post-consumed PET bale input. Last year, 14.3 billion bottles were recycled, and more than 317,064 tons of PET were kept in the loop to reduce leakage to land and below water. This target is one of our KPIs connected to our US$ 300 million sustainability-linked bond, issued last year.
We also have a new 2030 target to recycle 1.5 million tons of post-consumer PET bale Input. In March 2022, we reached an important milestone, having recycled 75 billion PET bottles Since 2011 - and counting. With our respective 2025/2030 targets in mind, we are aiming for a goal of “90% of waste diverted from landfills,” which encourages our employees to reuse and avoid waste at our facilities. Five of our sites have already achieved zero discharged wastewater in line with our sustainable water management objectives.
At IVL, we are strengthening our sustainability culture by providing our employees with a range of activities to drive sustainability awareness, including webinars and our own SustainWire communications tool.
Responsible for a Better Future
The health and safety of our employees are non-negotiable, and our EHS team is implementing enhanced governance in standardization, assurance, capacity building, and communications, as part of our culture. Our Corporate EHS Team announced the launch of our “Golden Rules” to prevent injuries and fatalities in our manufacturing operations. This was followed by the introduction of our Injury and Illness Prevention Program as a more integrated approach to communicate relevant information globally.
The key to our success will be responding to consumer needs for sustainable products that prioritize health, safety and well-being, and promote economic growth. We are working with partners to collect more post-consumer PET bottles and improve awareness about recycling and PET’s value. For example, we teamed up with Coca-Cola (Thailand), private companies, and environmental start-up Trash Lucky to encourage consumers to separate their recyclables at home. Our recycling education program has expanded to Mexico, the Philippines and Indonesia, and we are working towards reaching one million consumers by 2030.
Becoming a More Sustainable Company
In the year ahead, we will continue to collaborate with partners to solve the issue of plastic waste. I am excited about our product innovations, the new technologies we are exploring, including carbon capture utilization and storage (CCUS), our ongoing focus on GHG reductions, and improving the conservation of natural resources and biodiversity.
I am pleased to note that IVL was the first company in Thailand to publish a report linked to the UN SDGs. We are integrating the SDGs into our strategy to operate responsibly and with a sustainability mindset.
Last year, we achieved sustainability recognitions from DJSI, CDP, MSCI, EcoVadis, Sustainalytics and FTSE4Good, among others. We ranked first in ChemScore among the world's top 50 chemical producers assessed by ChemSec based on our environmental impact and management of hazardous chemicals. Moreover, we received the highest recognition level, a platinum medal, among the top 1% of companies assessed by EcoVadis on sustainable supply chain management.
My passion for sustainability continues as we expand and improve our position in recycling globally and find the right solutions to reduce our emissions. We are already leading the way in PET sustainability and will improve further by achieving Net Zero Carbon. In doing so, we will safeguard the trust of our stakeholders as a world-class sustainable chemical company.
I appreciate the time and effort put in by the IVL team and all of our partners as we demonstrate our capacity for change and continue to pursue our ambitious goals to place sustainability at the core of all that we do.
Yash Lohia
Chairman of ESG Council Member of Sustainability and Risk Management Committee
CEO MESSAGE
This report outlines IVL’s success in addressing the sustainability and climate issues that matter most to our customers, employees, shareholders, and communities in 2021. IVL is moving quickly on several fronts, and we are driving our actions in line with being responsible, one of our core values.
In 2021, we created our purpose statement, ‘Reimagining chemistry together to create a better world’, which defines our role and the positive impact that we have on our world.
Achieving Net Zero Carbon
Last year’s COP26 in Glasgow ended with a global agreement to accelerate actions on climate change this decade. All countries agreed to strengthen their 2030 emissions targets, known as Nationally Determined Contributions (NDCs), in 2022 to limit global warming to 1.5 degrees Celsius. So, there is much important work ahead.
Our Chief Technology Officers, as part of the Decarbonization Committee, are heading IVL’s decarbonization strategy, which consists of six prongs to reduce the company’s carbon footprint and support countries where we have operations. The committee provides technical guidance to each of our business segments and ensures plant-level decarbonization efforts to achieve our Net Zero Carbon.
We are on track to achieve our 2025 goals, and we have set more ambitious 2030 targets. The 2030 targets include a 30% reduction in Scope 1 and 2 combined greenhouse gas (GHG) intensity, 15% reduction in energy intensity, 25% use of renewable electricity, 20% reduction in water intensity, 90% diversion of waste from landfills, recycling 1.5 million tons in PET bale input annually and sustainability capital expenditures of US$ 7 billion.
Sustainability at the Forefront
In pursuit of business growth and profitability, we do things the right way – economically, socially, and environmentally. Health and safety are non-negotiable as we implement these three approaches in our global operations.
Our vision statement, ‘To be a world-class sustainable chemical company making great products for society’, is backed by decarbonization and broader sustainability strategies as key differentiators going forward. This sharper focus will enable us to respond to any future uncertainties and improve our position in the post-pandemic era.
Focus on Sustainable and Green Finance
IVL drives leadership in sustainable finance through our Sustainability Performance Targets (SPTs), allowing us to issue innovative investment instruments that are linked to sustainability performance. The SPTs are part of our Sustainability-Linked Finance Framework which is independently assessed.
IVL’s pioneering approach to green finance in Thailand is reflected in our first issuance of THB 10 billion in Sustainability Linked Bonds (SLBs), which drew considerable interest from institutional investors. The SLB is linked to our environmental performance and serves as an important step in optimizing our capital structure, as well as incentivizing our company and stakeholders towards environmental goals. It marks an important development in the Thai capital market as investors focus more on environmental metrics, specifically relating to climate change. Additionally, in 2021, we were the first Thailand-based company to invest in HSBC’s Green Deposit to support a wide range of environmental, social and governance projects.
Stronger Performance, Greater Innovation
IVL is effectively integrating our operations, both downstream in packaging and upstream in feedstocks and Integrated Oxides and Derivatives (IOD), while diversifying our product range, notably in surfactants, through strategic acquisitions and operational enhancements.
Our naphthaletes unit, which was established last year at our integrated production facility in the U.S., makes us the world's largest PNDA producer, with the greatest level of purity to serve high-end polyester markets. Our strategic acquisition of Brazil-based Oxiteno is part of our strategy to make value-accreting investments. The acquisition adds a unique portfolio of high-value surfactants and significantly extends our existing IOD business. It will also strengthen our position in Mexico and Latin America, and in green chemical innovation.
We are strengthening our position as a global recycling leader. In 2021, we completed our acquisition of PET recycling assets from CarbonLite Holdings and its subsidiaries in Texas. We also announced a new greenfield recycling facility in Karawang, Indonesia which will recycle almost two billion plastic bottles annually in support of our commitment to clean oceans and closed-loop solutions.
We acquired the state-of-the-art assets of Ngoc Nghia, a market leader in PET, preforms and closures in Vietnam. The deal will increase our presence in a high-growth market offering a full range of PET packaging solutions with enhanced operational excellence.
At the end of last year, we inaugurated our Global Business Service Center in Kolkata, India, which plays an important role for our operating sites worldwide by consolidating large-scale processes and deploying cutting-edge technology to drive operating efficiencies and promote our sustainability and transformation journey.
Addressing Safety Incidents and Improving Employee Safety
While we strive to achieve a strong operational performance within safe work environments, unfortunately incidents do occur. In 2021, we suffered two work-related fatalities in Texas in the U.S. and in Egypt (a contractor) while another employee was permanently disabled. Mitigation and enforcement actions were undertaken immediately at both facilities to improve employee safety together with additional training. Two of our facilities experienced fires, and proper reporting and response procedures were immediately followed in both instances. We carried out a detailed investigation of each incident and undertook mitigation actions, while lessons were shared across IVL. Regretfully, there were a total of 16 pandemic-related employee deaths last year, up from seven in 2020.
Culture of Leadership and Success
As a signatory of the UN Global Compact, we support its 10 principles and promote its core values to showcase our collective work as part of the international business community and to demonstrate our leadership in taking effective action. We are also playing a constructive role in achieving the UN SDGs.
Last year, we achieved sustainability recognitions from DJSI, CDP, MSCI, EcoVadis, Sustainalytics, Stock Exchange of Thailand and FTSE4Good, among others.
A Future of New Value Creation
We are building sustainability across all our businesses while our colleagues work diligently towards making IVL a future-ready organization. The past year has demonstrated IVL’s efforts in sustainability and promoting a more circular economy by increasing our presence in recycling and working more closely with stakeholders to invest in our people and the planet through innovation and product development.
As we go forward, developing our people is a top priority. Succession planning is critical to long-term success, and we must recruit, train, and promote outstanding leaders with the correct ‘growth mindset’. We will also include more bio-based feedstock in our goods, with an aim of investing US$ 4.7 billion for bio-based feedstock consumption to achieve our target of 16% bio-based feedstock consumption against the whole IVL feedstock target by 2030. We will also focus on our segment strategy to allow each of our three segments to reach their full potential. Finally, digitalization of our business is a vital component of change.
We would like to acknowledge our employees, stakeholders, business partners and associates for their continued support in making 2021 a year of accomplishment.
DILIP KUMAR AGARWAL
Chief Executive Officer and Chief Financial Officer Member of Sustainability and Risk Management Committee
2021 Performance
Total Sales Volume
million tons
+5%
Total Revenues
US$
million
+38%
Core EBITDA
US$
million
+55%
Core Net Profit after Tax and NCI
US$
million
+234%
Operating Cash Flow
US$
million
-24%
Core Earnings per Share
THB
+2.48 THB
Total Energy Consumption
Total Renewable Energy Comsumption
GHG Emissions (scope 1&2) Intensity
tCO2e / ton of production
Total Water Withdrawal Intensity
m3/ton of production
of total waste were recycled and reused in 2021
Total Workforce
Employee Engagement
(NPS)
Gender Diversity
VALUE CREATION at IVL
Our business model demonstrates how we are creating value through our short, medium, and long-term strategies via six capital inputs. We included information on the availability, quality and affordability of capital and revealed an indicator that tracks capital linked to our outputs providing an important and relevant context to the information provided.
IVL’s Value Creation ModelHighlights
IVL’s ROAD TO NET ZERO CARBON
We are in a race against time in slowing down climate change, but we are reassured in not being alone in our Net Zero Carbon ambition. Through the concerted efforts of governments, businesses and the general public, we are both encouraged and confident that this mission can be achieved.
Global Compact Network Thailand Forum
At the GCNT Forum 2021: Thailand’s Climate Leadership Summit 2021, which adopted the theme of “A New Era of Accelerated Actions,” Mr. Udey Gill, Chief Strategy Officer of Indorama Ventures PCL, jointly declared our commitment to achieving Net Zero Carbon with other leading Thai private sector companies. The Prime Minister of Thailand, Minister of Natural Resources and Environment, UN Resident Coordinator, and CEO and Executive Director of the UN Global Compact also joined to witness the declaration.
This declaration is in line with our multi-pronged and ongoing decarbonizing strategy which reflects our unwavering will to achieve 30% emission reduction by 2030 and Net Zero Carbon by 2050-70. Despite just declaring our Net Zero ambitions, we have already started our efforts in emissions reduction - over the last ten years, we have recorded a 10% reduction while in 2021 alone, we recorded a reduction of 3% emission - a modest yet positive start of our pledge to deliver Net Zero Carbon.
SCIENCE-BASED TARGETS
On 31 May 2022, we officially committed to science-based targets agreeing to align our decarbonization plan with the latest climate science limiting temperature rise to below 1.5 ºC . We will continue to refine our targets and have them validated by the Science-Based Targets Initiative within the 24-month deadline.
ACCELERATING SUSTAINABILITY TARGETS
We are constantly looking to improve long-term sustainability through natural climate solutions that can remove carbon from the atmosphere. Forest preservation, restoration, and anti-deforestation projects are in the pipeline, along with carbon capture utilization and storage (CCUS) and green hydrogen. Additionally, we have invested in roof and ground mounted solar panels for our sites and are seeking virtual power purchase agreements (VPPAs) wherever feasible. These are in line with our plans to decarbonize IVL’s energy consumption by increasing usage of onsite and offsite renewable electricity reaching 10% by 2025 and 25% by 2030, and through the progressive phase-out of coal.
In our ongoing effort to decouple our business growth from our emissions, we anticipate investing US$ 7 billion in green projects by 2030 to improve operational efficiencies and reduce energy consumption, GHG emissions, water consumption and waste generation. Going further down a greener path, we aim to invest in making fundamental changes to our products and businesses around the world.
While doing all we can to stay ahead of evolving regulations and legislation, our decarbonization strategy also involves the indirect approach of helping other industries and individuals reduce their impacts on the climate through our products. Essential to modern life, our products are amongst the best based on their performance, affordability, and environmental footprint.
While traditionally companies and their emissions grow over time, we are changing this narrative through our concerted efforts and strategies in achieving Net Zero Carbon. Even as we are reducing our emissions, we will continue to put the needs of stakeholders at the heart of our efforts while connecting our sustainable goals, actions and outcomes with globally desired social and economic results.
Securing Sustainable Financing
Sustainable finance refers to the process of taking environmental, social and governance (ESG) considerations into account when making investment decisions in the financial sector, leading to more long-term investments in sustainable economic activities and projects.
This represents a significant opportunity for IVL, with many multinational lenders and asset managers having become signatories to the United Nations Principles for Responsible Investment (UN PRI) and United Nations Principles for Responsible Banking (UNPRB). Moreover, financial institutions are integrating ESG into their investment processes. IVL is a global leader on ESG financing, having secured over US$ 1.3 billion in sustainable financing as of the end of 2021, which includes:
The issuance of all loans and bonds reflects our long-standing commitment to sustainability, supports our sustainability commitments as a business and emphasizes our fiscal responsibility through sustainable finance.
IVL developed a Sustainability-Linked Finance Framework to be aligned with the Sustainability-Linked Bond Principles (SLBP) by the International Capital Markets Association (ICMA), and the Sustainability-Linked Loan Principles (SLLP) by the Loan Market Association (LMA).
Three Sustainability Performance Targets (SPTs) were selected which are core, relevant, and material to IVL’s business and measure progress against IVL’s sustainability commitments prior to the issuing of bonds, loans, or any other debt instruments.
Note: The parameters of the KPI or calibration of the SPT may change if there is a material change to IVL’s current business operations. Any such change will be communicated within its annual reporting and in line with IVL’s related disclosure obligations. IVL’s performance against the SPT will be reported on the company’s website and in its annual Sustainability Report.
Over the past few years, we have made significant strides and achieved many milestones, inching closer towards our 2030 target. There is still much more work to do. To this end, guided by our strategic framework, we look forward to continuing our efforts to reduce emissions from the value chain, increase positive economic and social impacts and generate environmental well-being in collaboration with all our stakeholders.
Biodiversity
According to WEF’s Global Risk Report, biodiversity loss is one of the three most severe risks for the next decade. This not only has environmental impacts, but also far-reaching economic and social impacts. Biodiversity loss endangers all sectors of the economy at varying levels, with short-term and long-term implications. A total of US$44 trillion in economic value generated each year is dependent on ecosystem services, this is more than half of global GDP. For these and many more reasons, we believe that IVL has an important role to play in the conservation of nature. It is always our intention to preserve biodiversity in the communities where have influence and operate.
Our Responsibility
IVL is committed to sustainability and is aware of the importance of championing biodiversity. In line with supporting UN SDG #14: Life Below Water and SDG #15 : Life On Land, we understand the importance of biodiversity loss and the need to urgently take action to minimize its impacts on the ecosystem. We are aware of the potential biodiversity loss-related risks and have made it an important element in decision-making and have incorporated it into the Group's business strategy.
In an attempt to preemptively avoid any significant impact on biodiversity due to our business activities, we have committed to ensuring that future production sites are not to be located in the vicinity of a protected area or those protecting species and habitats - including those under threat and those that represent a high value for biodiversity. We proactively take precautions during our preliminary assessments to ensure that we minimize any potential negative impacts on biodiversity and have pledged to no deforestation in future business expansion or operations at IVL.
How We Contribute to Biodiversity Preservation
IVL's Way Forward
The protection and restoration of biodiversity is critical if we are to collectively achieve our global sustainability goals. Success will require multi-stakeholder collaborations between regulators, corporations and consumers.
A thriving biodiversity plays an integral part in promoting stability and resilience to ecosystems and is vital for a stable supply chain. As a key player in the global chemicals supply chain, IVL firmly believes that we can play a part in transforming the biodiversity crisis – the push for more eco-friendly solutions will drive innovation forward and open up new business opportunities. This strengthens and confirms IVL’s mission to be a world-class sustainable chemical company making great products for society.
The decisions we take today as a society will have implications on our tomorrow. Here at IVL, we understand the importance of biodiversity, its impact and strive to continue our research and take a lead in implementing good practices and call upon everyone to join us to act responsibly.
A Solution in Circular Feedstocks
Change is Upon Us
In the 1800s, the population was one billion and we had abundant natural resources to use without considering the effects of our actions eventhough our natural resources are finite. By contrast, today, our population is roughly eight billion, and we are consuming at a much faster rate than before, accelerating resource depletion, waste generation and environmental pollution, leaving no time for natural regeneration cycles to take place. It is critical that we slow our use of resources and allow time for restoration.
The urgency of climate change has never been greater than now and in response to this, almost 200 countries had come together in Glasgow in 2021 for the 26th Conference of the Parties (COP) summit to discuss the climate crisis and set the global agenda to reduce the worst impacts of climate change.
We strongly support the many concepts and actions that are critical to combatting climate change. One key action is to move towards utilizing circular feedstocks. At IVL, we define a circular feedstock as being both bio-based and recycled.
A bio-based feedstock
At IVL, we define a circular feedstock as being both bio-based and recycled.
A bio-based feedstock refers to any renewable, waste or organic matter that is used as or converted into either a fuel, energy or product. There are three generations of bio-feedstocks.
The first-generation
converts edible biomass like corn, wheat and rice (among others) into feedstock.
The second-generation
transforms cellulose-based, non-edible biomass and agricultural waste, such as (but not limited to) wood, straw, and corncobs, into clean and affordable high-value fuel or chemicals.
The third-generation
is derived from algae, which can be found in freshwater and marine waters.
A recycled feedstock
converts post-consumer products, such as PET bottles, through mechanical or advanced recycling. Turning post-consumer PET bottles into feedstock dramatically improves recycling rates and diverts plastic waste from landfills, incineration or leakage into the environment. Recycled PET (rPET) can be used as a feedstock for both packaging and fiber applications. This is highly important for the direction in which we are moving, products that can ‘close the loop.’
The Value of Circular Feedstocks
Sustainable development refers to development that has environmental, social, and economic benefits. Both bio-based and recycled feedstocks are abundant and sustainable. IVL’s focus lies on second and third-generation bio-feedstocks as they are not crops or plants that can be consumed by humans and animals, unlike first-generation bio-feedstocks.
Additionally, the utilization of circular feedstocks is a key component to achieving the Sustainable Development Goals (SDGs). The SDGs are a universal call to action among governments, businesses and civil society to end poverty, protect the planet, and ensure that all people prosper by 2030. SDG 7 speaks directly of increasing the use of renewable energy, under Target 7.2, whereas, SDGs 8, 9, 11, 12, 13, and 15 are all impacted by the use of renewable feedstocks.
Furthermore, consumer awareness and interest in environmentally sustainable and ecologically-sound products is increasing. Bio-based and recycled-feedstocks can address this need while moving us closer to a circular economy.
Our Shared and Collective Responsibility
Strong public and private partnerships is needed to accelerate the industry’s urgent need to act. We echo other industry leaders in noting that government policies must play a key role in curbing and reversing climate change, and our impacts.
But companies must do their part, and IVL is leading by example. We are reimagining and improving our products to be more environmentally friendly while providing better value and performance. Our recently unveiled Vision 2030 includes a target of using 16% bio-based feedstocks against IVL’s entire feedstock and 10% rPET feedstock against IVL’s entire feedstock (23% against PET feedstock). We are aggressively taking charge of our responsibilities for the environment, having also committed more than US$ 4.6 billion to increase circular feedstocks to 2.4 million tons by 2030. This is a concrete goal towards our purpose of “Reimagining Chemistry Together to Create a Better World.”
We also encourage our industry peers and other organizations to look at their business models and value chains, and find opportunities to incorporate the essential tools to fight climate change and move towards a circular economy. As there is no single right or wrong way to do so, sustained small changes can make an outsized difference to the environment. Therefore, every effort must be made to benefit our environment.
Gender Diversity, Equity, and Inclusion
Key highlights of nationalities, female diversity and age diversity as on 31st Dec 2021 are as follows:
Indorama Ventures in Thailand celebrates International Women’s Day 2022
On March 8th, 2022, Indorama Ventures in Thailand celebrated International Women’s Day 2022 with the theme of #BreakTheBias by hosting an inspirational talk with IVL’s female leaders: Mrs. Suchitra Lohia, IVL Deputy Group CEO, and Mrs. Aradhana Lohia Sharma, Vice President, on the topic “Gender Equality for a Sustainable Tomorrow.”
The inspirational talk explored their stance on how equality is a core part of IVL’s values, how their careers have been shaped by their gender, and how IVL can unite to #BreakTheBias and embrace gender equality.
The session was also streamed through the MS Teams platform for employees working from home, with 527 participants from sites in Thailand that covered 1,526 female target audiences from 15 IVL entities in 10 locations.
The event was organized by the Human Resources Department at IVL's head office with the support of the Serviced and Facilities Management team and Corporate Communications team. The purpose of the session was to inspire IVL employees to achieve a world free of biases, stereotypes, and discrimination through the voices of our female leaders.
Indorama Ventures is proud to continue the support of International Women’s Day annually which encourages individuals and institutions to be mindful of the biases which may be preventing a more diverse, equitable, and inclusive world.
Together we can forge women’s equality and collectively we can #BreaktheBias. This effort was led by the new formed Diversity, Equity, and Inclusion (DEI) committee, as part of the ESG Council.
About Diversity, Equity, and Inclusion (DEI) committee
The DEI Committee was established as a spin-off from Indorama ESG Council to focus on developing a framework and process to drive diversity, equitability and inclusivity across the organization to embed the “Diversity is our Strength” corporate values into the DNA of our organization.
REPORT CHAPTERS
Responsible Business and Effective Governance
VALUE CREATED
Our strong and robust governance mechanisms are designed to generate sustainable growth throughout our value chain to benefit IVL and key stakeholders, including our customers and suppliers.
CAPITALS LINKED IN THIS CHAPTER
Intellectual Capital (Organization)
Social and Relationship Capital
Financial Capital
With strong and robust governance at IVL and our subsidiaries, we generate sustained growth benefiting the organization and key stakeholders. We rely on an experienced and high-caliber Board of Directors to drive the Company’s success and continue to remain vigilant on emerging risks and compliance requirements through a top-down approach given the breadth of our multinational operations.
Topics in this Chapter
- Corporate Governance
- Business Ethics, Integrity, and Transparency
- Anti-Corruption
- Sustainability Governance
- Risk and Crisis Management
- Cybersecurity Management
Driving Sustainable Value Creation and Growth
VALUE CREATED
Our significant investments in recycling have increased our market share and lowered GHG emissions, allowing us to gradually realize our carbon neutral ambitions. Meanwhile, IVL’s creative and sustainable portfolio comprise best-in-class products, resulting in increased customer satisfaction. Furthermore, our flagship recycling education program is increasing community awareness and responsible consumer behavior.
CAPITALS LINKED IN THIS CHAPTER
Financial Capital
Intellectual Capital
Social and Relationship Capital
We are driving sustainable growth by adopting circularity, innovation, and sustainability across our value chain. We actively participate in industry associations and memberships and collaborate with stakeholders to identify partnership opportunities. Our robust innovation management and product stewardship systems are used to evaluate and improve our existing products and processes for improved customer satisfaction.
Topics in this Chapter
- Circularity across our value chain
- Innovation Driven Growth
- Safe and Sustainable Products
- Creating Strong Customer Relationships
- Supply Chain Management
TOWARDS NET ZERO CARBON
VALUE CREATED
In support of the communities and environment where we operate, we are rapidly shifting gears to reduce our natural resource consumption, using more renewable energy and improving operational efficiencies at all our projects and sites.
CAPITALS LINKED IN THIS CHAPTER
Natural Capital
Manufactured Capital
Social and Relationship Capital
Our new 2030 targets accelerate our actions to achieve Net Zero Carbon in our operations and supply chain. We ensure that our operations align with robust standards and regulations through our environmental management system and ISO certification. Every year, IVL’s Operational Excellence Awards recognize initiatives that adhere to good practices.
Topics in this Chapter
- Decarbonization in our Value Chain and in our Operations
- Renewable Energy
- Recycling
- Managing our Environmental Impact (Energy, Water, Waste, emissions)
- Robust Environmental Governance
EMPOWERING OUR PEOPLE AND COMMUNITIES
VALUE CREATED
Our employees are our greatest asset. We empower our workforce through a variety of developmental programs, meaningful employee engagements, and robust mechanisms to ensure their safety.
CAPITALS LINKED IN THIS CHAPTER
Human Capital
Intellectual Capital
Social and Relationship Capital
We support a robust safety culture, as well as human rights and well-being in the workplace. We seek, develop, and retain top talent, and promote employee engagement, diversity, and inclusion. Our flagship Recycling Education program, as well as our CSR efforts, give back to the communities where we operate.
Topics in this Chapter
- Safe and Healthy Workplace
- Human Rights in Workplace
- Investing in our people
- Giving Back to our Communities
CORPORATE GOVERNANCE
Directly assisting the Board are three Committees - the Audit Committee, Nomination, Compensation and Corporate Governance (NCCG) Committee and Sustainability & Risk Management Committee (SRMC). These committees ensure that strong governance processes are in place across all areas including risk management, financial reporting, compliance, audit and control, the Code of Conduct and sustainability-related strategies, risks and opportunities.
Note: Following the Annual General Meeting of Shareholders No. 1/2022, the total number of Company Directors changed from 16 to 15.
The Board, which ensures effective governance by managing IVL’s direction and vigilance on emerging risks and compliance, sets the key performance indicators (KPIs) for the Group CEO and other executive directors for the annual performance appraisal.
Note: Following the Annual General Meeting of Shareholders No. 1/2022, the total number of Company Directors changed from 16 to 15.
The Board typically meets every three months, with additional meetings convened when necessary. The meetings provide an opportunity to review IVL’s operations and discuss financial issues, plans and other relevant matters.
Business Ethics, Integrity, and Transparency
The Corporate Governance Manual (CG Manual) provides all directors, employees and stakeholders with a clear focus on how IVL’s values are being implemented, how they are linked to the Company’s long-term objectives and how corporate governance is being achieved.
The Corporate Governance Policy Awareness Campaign (CGPAC) is conducted by IVL using the CG Manual to embed responsible corporate governance principles among all directors, employees and stakeholders and providing a clear focus on how IVL’s values are being implemented.
To build on our momentum in 2021, the CGPAC team is continuing to support and enhance the implementation of the CG Manual at all IVL units through the following initiatives:
- Enhancements to the CG Manual
- Development of a Conflict of Interest Assistance Package
- Enhanced Video Accessibility
- Multilingual e-Book
- New Training Quizzes and Toolkits
Anti-corruption
We have zero tolerance for bribery and corruption and adhere to strict policies along with all local, national, and international laws. A comprehensive Anti-Corruption Policy is included in our CG Manual, where we define corruption and explain important practices to avoid any types of engagement or corrupt practices. In 2020, we developed an Anti-Corruption Assistance Package which was shared with all units. This package, based on anti-corruption frameworks that are widely accepted, both in Thailand and internationally, will help further reinforce the anti-corruption culture across IVL.
Case studies
Sustainability Governance
The Sustainability and Risk Management Committee (SRMC), which oversees sustainability governance, guides IVL’s journey to further embed sustainability considerations in our business. As the organization’s second highest authority on sustainability, the SRMC reports directly to the Board ensuring that this priority is integrated in the day-to-day business decisions across our operations and that the SRMC Charter is being observed.
In 2021, the Indorama Management Council (IMC) established the ESG Council, a new sustainability advisory committee to oversee sustainability-related environmental, social and governance issues and concerns.
The Decarbonization Committee is building a strong internal foundation of decarbonization business practices which will be integrated in our strategies and operations to achieve net zero carbon emissions.
Risk and crisis management
Our Enterprise Risk Management framework identifies and manages business risks across the Company and its subsidiaries. It utilizes the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework and applies a top-down and bottom-up approach to identify and manage business risks at both the corporate and subsidiary levels around the world.
The Risk Capability & Culture Leadership Program was developed and implemented to elevate risk thinking and capabilities. A sensitivity analysis plays a pivotal role in eliminating uncertainties concerning the future of our business by modeling potential risks and decisions.
We embedded an ISO 22301-compliant BCM framework within IVL to reinforce preparedness, effectively adapt to different scenarios, and ensure business continuity with regular testing, thereby strengthening our strategies and process planning.
Cybersecurity Management
The SRMC and Audit Committee are in charge of IVL’s cybersecurity resilience and oversee and monitor the cybersecurity framework. The SRMC is updated on cybersecurity-related agendas on a quarterly basis through the Risks and BCMs framework and is responsible for developing robust policies and processes that are aligned with our risk appetite.
In 2021, we continued to analyze the techniques used in cyberattacks, and how to further improve existing security controls and measures. To strengthen our security, we introduced an open-source intelligence (OSINT)-based threat-intel gathering process to proactively defend against threats.
We conducted a cybersecurity behavioral assessment (CyBA) and improved our cybersecurity frameworks, processes, and conducted training & awareness campaigns.
IVL's Cyber Risk Mitigation Measures
CIRCULARITY ACROSS
OUR VALUE CHAIN
A circular economy is needed for packaging, so it never becomes waste or pollution. We see the positive impacts that a circular value chain has on society, the environment, and our business performance, and being a responsible operator means creating long-term value for all our stakeholders. IVL is working hard to continue to positively impact all areas of the value chain through innovative designs, efficient and greener production, streamlined logistics, advocacy for responsible consumption, proactive waste collection and widespread recycling.
Innovation driven growth
We meet increasing demands for more sustainable products by investing in cutting-edge innovations for our customers who need to satisfy the shifting needs of consumers. Our portfolio reflects our strategic support for the circular economy.
In 2021, we monitored our vitality index targets in all business segments –demonstrating how well we are meeting customer needs and showing that we are successfully selling products that are more sustainable, as our newer products were designed to take into account environmental well-being and other key sustainability related considerations.
Safe and sustainable products
Our product stewardship efforts, which focus on safer chemistry and efficiency improvements to minimize the environmental impacts of our products, allow us to develop innovative product solutions while benchmarking our products. In 2021, we achieved a 46% global Life Cycle Assessment (LCA) coverage by production volume in compliance with ISO 14040/44:2006.
Chemicals and other compounds utilized in our activities are monitored using strict processes and procedures. Our goal remains zero violations of local and international norms, as well as zero use of any substance of very high concern (SVHC). We follow the European Chemicals Agency (ECHA)’s SVHC list and ensure the removal of items off the SIN list.
Creating strong customer relationships
Strong customer satisfaction is essential for a profitable and sustainable business. Our customer satisfaction study is conducted every other year, as part of our group sustainability strategy, to understand and assess customer needs, expectations and satisfaction with our products and services. We systematically seek feedback across all business interactions and customer levels. Our study comprises 22 focused areas incorporated within six overarching groups. By staying ahead of their expectations, we are able to build long-term customer trust and loyalty.
Supply chain management
Sustainability is a core focus and integrated in IVL’s supply chain. We are committed to upholding human rights as part of our ESG standards when selecting suppliers across our operating sites in accordance with our Human Rights Policy and Supplier Code of Conduct.
We are working to improve our supply chain network design, modes of transportation and product mix, and to have better inventory control and select better suppliers through carbon footprint planning. Our Decarbonization Strategy involves working with our suppliers to obtain supplier-specific data and set emission reduction targets while strengthening our relationships to improve collaboration in the supply chain.
SUSTAINABLE PROCUREMENT PATHWAYS
Environmental Ambitions
Our targets focus on finding efficiencies in our business operations, increasing our use of renewable energy, investing in recycling, and lowering our carbon footprint. These initiatives allow us to achieve our long-term ambition of Net Zero Carbon.
* base year 2020
Decarbonization in our Value Chain and in our operations
Our Decarbonization Strategies
To further reinforce our ambitions to achieve Net Zero Carbon, we developed a more focused Decarbonization Strategy.
Improving Operational Efficiency
Investing in operational and energy efficiency projects to reduce direct and indirect emissions
Renewable Electricity
Decarbonizing IVL's energy consumption by onsite and offsite renewable electricity projects
Recycling
Investing in and expanding recycling facilities to address plastic pollution and reducing lifecycle carbon emissions
Circular Feedstocks
Replacing fossil fuel-based feedstocks with bio-based and recycled feedstocks
Future Technologies
Exploring opportunities for carbon capture utilization and storage (CCUS), green hydrogen, bio/renewable feedstocks, and renewable natural gas (RNG)
Natural Capital Solutions
Exploring partial/full ownership of carbon offsetting project
We closely track our direct and indirect greenhouse gas emissions (GHG Scope 1, 2 and 3) to identify reduction measures and implementation.
The reduction in GHG (Scope 1 & 2) intensity can be attributed to increased operational efficiencies and our US$ 28.5 million investments in GHG reduction projects. These investments achieved a GHG reduction of 185,132 tons of CO2e.
We are currently developing GHG data collection templates to enhance the tracking of our Scope 3 GHG emissions in the near future, which will allow suppliers to efficiently track emissions across our value chain.
In 2021, IVL recorded 0.589 tCO2e/ton of production in GHG (Scope 1 & 2) intensity, a 3% reduction in combined intensity compared to the 2025 GHG target.
Project Highlight
As part of our Decarbonization Strategies, we adopted an internal carbon pricing scheme in our current investment planning which increases visibility and encourages greater accountability of the carbon impacts on our businesses. In developing carbon pricing, we considered a number of scenarios through an Emissions Trading Scheme (ETS) by countries, regions and status of regulatory implications which could influence the increase in price assumptions. The statistical carbon price of US$ 20/tCO2e was used to calculate carbon sensitivity. For more information, please refer to our IVL TCFD Report 2022
Renewable Energy
In 2021, our 2.56% in renewable energy use totaled 2,803,265 GJ and a reduction of 143,175 tCO2e in GHG emissions.
Recycling
In 2021, we expanded the reach of our mechanical recycling by investing in a newly acquired facility from CarbonLite, in Texas, and a facility in Karawang, Indonesia that is due to begin operations in 2023. These facilities can collectively recycle roughly five billion bottles, which will accelerate our recycling achievements.
Advanced recycling offers promising opportunities as we can leverage our partnership with technology developers. Recently, IVL and Carbios jointly announced a collaboration to build and operate the world’s first industrial-scale enzymatic PET bio-recycling plant, with a processing capacity estimated at 50,000 tons of post-consumer PET waste per year.
We actively participate in legislative engagements with industry associations to support positive change and sustainable practices.
Managing our environmental impacts
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Energy Management
In 2021, we achieved 67% ISO 50001:2011/ ISO 50001:2018 certification against our 2025 target. IVL recorded an energy use intensity of 6.63 GJ/ton of production, a 1.5% reduction from the level in 2020.
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Water Management
In 2021, we recorded an increase in water intensity but a reduction in total recycled water, with a total investment of US$ 1.8 million in water consumption reduction projects.
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Water Risk Management
We use the AQUEDUCT Water Risk tool as each site works within a unique operating context. Our integrated water risk analysis considers EBITDA and the financial impact on revenue and the cost of goods sold, to develop action plans and remedial activities.
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Waste Management
In 2021, 78% of our waste was diverted from landfill, an 8% increase compared to 2020.
Project Highlight
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Air Emissions Management
We continuously monitor and minimize our air emissions to ensure compliance with laws and regulations, as well as to raise our emissions standards.
Robust environmental governance
Our corporate values mandate the responsible pursuit of business growth and profitability by considering economic, environmental, and social factors, and ensuring compliance with applicable environmental laws, regulations, and standards in the countries where we operate.
The Environmental Management System (EMS) is IVL’s comprehensive framework based on the ISO 14001 standard to improve environmental performance, build a marketing advantage, and demonstrate environmental leadership.
In 2021, there were seven incidents of regulatory non-compliance (greater than US$ 10,000), including cases of oil, grease, ammonia, and nitrogen exceeding limits in wastewater which were all dealt with accordingly.
- Oil and grease limit exceeded (US$ 140,878 penalty)
- VOCs of ammonia/total nitrogen limit in wastewater exceeded (US$ 16,000 penalty)
Corrective actions were taken, and the lessons learned were shared with all concerned parties as part of our transparency and knowledge-sharing efforts.
Project Highlight
Safe and Healthy Workplace
Actively promoting a strong safety culture is part of our DNA. In 2021, we refined our KPIs, constructed corporate EHS audit protocols, better understood our EHS capabilities and talent pipeline, and strengthened our network of subject matter experts. Sixty-seven percent of our operations around the world were OHSAS 18001/ISO 45001 certified and over 41% of our operations achieved zero accidents in 2021. Moreover, we aims to reduce Lost Time Injury Frequency Rate (LTIFR) to be less than 0.5 cases per 200,000 man-hours by 2025.
Because our effective management approach, there were no serious non-compliance issues with respect to regulations or voluntary codes concerning the health and safety of our operations, as well as the impacts of our products.
Case studies
- Injury and Illness Prevention Program (I2P2) - systematically analyzes incident trends and implement controls to reduce the most common occurrences
- Golden Safety Rules - an additional safety handbook to prevent serious and LIFE incidents
- Dedication to Safety with the Pinnacle Award - recognition of our commitment to safely transporting chemicals by rail
- Group Employee Assistance Program (EAP) - provides a counselor or coach to improve personal well-being
Human Rights in The Workplace
IVL strongly respects all human rights as embodied in the Universal Declaration of Human Rights and its two companion covenants, the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social, and Cultural Rights. We avoid any human rights violations and follow the legislation of the countries where we operate.
In 2021, we introduced a Declaration on Human Rights to be signed by all Business Heads and Site Heads, who are key players in implementing systems and processes to prevent and address any violation or potential violation of the Human Rights Policy and to continuously improve its implementation. No significant human rights issues or violations were recorded in 2021.
Investing in our people
Our high-performance advancement culture and our focus on global integration and digitalization is enriching our employee journey. IVL respects the rights of employees, including freedom of association and the right to collective bargaining, and strives to build sound relations with employees through close dialogue. Our commitment to diversity and inclusion is reflected from the outset through our recruitment activities. With a focus on developing effective leaders, 1,633 leaders participated in various leadership programs in 2021. By 2024, our goal is to develop 3,500 leaders.
Case studies
- Student Internship Program - paving the way for a new generation and enhancing the employability of highly-driven recent graduates
- IVL Leadership Curriculum - ensuring effective and targeted development of IVL’s nine Leadership Skills at different leadership levels
- IVL Culture Awards - recognizing employees and teams that exemplify IVL’s core principles
- Indorama Ventures Excellence (IVEX) Program - leadership development of employees through relevant projects
Giving Back to our Communities
Our CSR objective aims to positively contribute to society by providing social, environmental, and economic value.
This is achieved by facilitating and engaging with the global community, utilizing our skills in collaborations, generating awareness, and strengthening the value chain. Our process is divided into three focus areas: knowledge, well-being, and the environment, each of which span a wide range of concepts.
IVL has been actively promoting the importance of recycling with our partner institutions through our Recycling Education project in Thailand since 2018 to educate a million people on the circular and recyclable qualities of PET by 2030.
Case studies
- IVL Shared Value Award - promoting global contributions through the Creating Shared Value (CSV) concept
- Public-Private Collaboration to Collect and Recycle Post-Consumer PET Bottles into Personal Protective Equipment (PPE)
- “Recycle Me” campaign with Coca-Cola Thailand and Trash Lucky
- Recycling Education - improving awareness about the circular and recyclable qualities of PET
OUR STRATEGIC PRIORITIES
Recycling
Building the recycling infrastructure the world needs to deliver a circular economy
Explore MoreSince 2011 until now, we recycled
STAKEHOLDER ENGAGEMENT
EFFICIENCY
MEASURABLE
EDUCATION
SUSTAINABLE SOLUTIONS TO CREATE A BETTER WORLD
Our product stewardship is squarely focused on investing in cutting-edge innovations and processes, and offering sustainable products. This is achieved through important collaborations and by ensuring that an innovation mindset permeates throughout our organization.