LyondellBasell Increases Greenhouse Gas Emissions Reduction Targets, Includes Scope 3

HOUSTON, TX and LONDON, UK / ACCESSWIRE / January 11, 2023 / LyondellBasell (NYSE:LYB), a leader in the global chemical industry, today announced it is increasing the company's 2030 greenhouse gas (GHG) emissions reduction target for scope 1 and scope 2 emissions from 30 percent to 42 percent, relative to a 2020 baseline. In addition, the company is establishing a 2030 scope 3 GHG emissions reduction target of 30 percent, relative to a 2020 baseline and in accordance with guidelines from the Science Based Targets Initiative (SBTi). The company's previously announced goal to achieve net zero scope 1 and 2 GHG emissions from global operations by 2050 remains unchanged.

"We believe a more ambitious GHG reduction target is achievable and will create substantial value for all of our stakeholders," said Peter Vanacker, CEO of LyondellBasell. "Reducing emissions while simultaneously building a world-class Circular and Low Carbon Solutions business is needed to meet the demands we are seeing throughout the value chain. This approach is not only good for society, but also good for business. We will follow a disciplined approach to prioritize high-return projects and will continue to meet or exceed our return expectations."

Estimates of the capital expenditures necessary to achieve its emissions reduction goals are built into the company's long-range plan. These investments are not expected to represent a significant portion of total capital expenditures over the next three years, nor change the capital allocation strategy. While many of the GHG emissions reduction projects are still in the early stages of development, the company will evaluate, pursue and prioritize its GHG emission investments based on each project's rate of return.

LyondellBasell will submit its climate goals to SBTi to be validated against SBTi guidance. The SBTi defines and promotes best practice for corporate GHG emissions target setting aligned to the latest climate science.

In the near term, LyondellBasell continues to execute its previously announced initiatives to reduce emissions, including:

• Startup of four power purchase agreements in Texas, representing approximately 400 thousand metric tons of the company's scope 2 GHG emissions annually
• Phasing out use of coal at its Wesseling, Germany site, reducing the site's scope 2 emissions by about 170 thousand metric tons annually

As announced in April 2022, the company is on track to close its Houston refinery by the end of December 2023. This is expected to reduce scope 1 and scope 2 GHG emissions by more than 3 million metric tons annually and scope 3 emissions by approximately 40 million metric tons annually.