AkzoNobel
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Company Details
- Company name: Akzo Nobel
- Country: Netherlands
- Sub Sector: Speciality Chemicals
- Industry Group: Materials
- Parent Sector: Materials
AkzoNobel is a major producer of specialty chemicals, and the largest global paints and coatings company. Based in Amsterdam, the Netherlands, the company makes and supplies a huge range of paints, coatings and specialty chemicals - pro forma 2007 revenue totaled €14.4 bln. AkzoNobel brands include Dulux, Flexa, Sadolin and Liquid Nails.
Carbon Disclosure
The following data is © Carbon Disclosure Project and was provided by AkzoNobel in response to the Carbon Disclosure Project Greenhouse Gas Emissions questionnaires.
Regulatory risks
Our energy-intensive european value chain salt-chlorine-PVC is at risk especially when non-global regulations disrupt the global level playingfield within the chlorine-PVC industry.
For other businesses however we consider existing and future regulations primarily as a business opportunity for AkzoNobel: carbon pricing will favor products and product value chains with a low carbon footprint. In this respect our product portfolio offers great business opportunities in providing our customers with eco-efficient products that help them reducing their carbon footprint. Examples can be found throughout our company and range from fuel saving, extremely smooth coatings for the aviation and ship transport sectors to a range of coatings for different applications that can be cured at low temperature and with extremely short curing times. We discuss the benefits of our products with our customers and underpin our carbon efficiency claims with robust eco-efficiency studies. We also work closely together with our customers to develop new, carbon efficient products.
AkzoNobel participates in the EU Emissions Trading Scheme. However the present trading system does not really promote energy efficient plants such as our cogeneration plants. European Industry advocates to re-design the Trading Directive to create a level playing field within Europe. Performance-based allocation (for example through benchmarks or through a baseline and credit system) should be promoted for large emitting processes. This will stimulate the efficient plants and penalize the inefficient ones.
Physical risks
As a global player AkzoNobel is represented in most geographical areas of the world. Akzo Nobel annually assesses the risks for each of its operating sites. This includes assessment of risks originating from extreme weather events and more structural phenomena related to climate change for the sites to which this is relevant.
General risks
We define general risks as all risks that are not generated by regulations or physical events. Examples are: pressure from NGO's, customers. Because we are a frontrunner in carbon efficient processes and products, we see these general risks more as an opportunity than a threat.
General and regulatory risks management
AkzoNobel's focus on energy efficiency and the use of low carbon fuels pays off. Some facts:
a. 73 % of AkzoNobel's worldwide power consumption is based on zero and low carbon sources.
b. 37 % of the electricity used in production processes is based on hydropower.
c. AkzoNobel ranks in the top ten percent energy efficiency for the manufacturing process of the salt-chlorine-PVC loop, one of AkzoNobel's most energy intensive processes.
d. We are replacing fossil fuels with renewable raw materials such as woodchips whereever feasible
e. For the manufacturing of two of our most energy-intensive chemicals - sodium chlorate and hydrogen peroxide - we use almost exclusively low carbon energy such as hydropower and - to a lesser extent - nuclear power.
To manage the risk of disruption of the level playing field within the chlorine industry, branch organisation Eurochlor of wich AkzoNobel is a member, lobbies for equal manufacturing conditions for all chlorine-PVC producers (see also answer to Q. 4 d).
Through Cogen AkzoNobel lobbies for a free allocation of emission rights for the heat part of its Combined Heat and Power energy production
Furthermore, in line with our Corporate Carbon Policy Framework, AkzoNobel Businesses are drafting Carbon Policies including their most important value chains. These policies include sensitivity analyses of various carbon pricing scenarios and plans to mitigate those risks.
Current and/or future financial effects of risks
In line with our Corporate Carbon Policy Framework, AkzoNobel Businesses are drafting Carbon Policies including their most important value chains. These policies include sensitivity analyses of various carbon pricing scenarios and plans to mitigate those risks.
Opportunities presented by current or anticipated regulatory requirements on climate change
In 2007, AkzoNobel assessed its complete product portfolio and established that it 18 % of its revenue is from ""eco-premium"" products, ie products that have a better eco-efficiency performance than mainstream products in their markets. In many cases the eco-premium includes a high carbon efficiency. AkzoNobel is convinced that these eco-premium products offer great business opportunities. Therefore, the Board of Management has set a strategic target of 30 % revenue from eco-premium products in 2015.
Examples of current eco-premium portfolio include Intersleek 900, a new generation, extremely smooth antifouling coating for large maritime vessels. Intersleek 900 allows estimated fuel savings of 6 % compared with the classical antifouling coatings. Coating the complete global fleet of large maritime vessels with Intersleek 900 would reduce CO2 emission from marine transports by 40 million tonnes CO2 annually.
We have developed a range of coatings for various applications, which can be cured in a very carbon efficient way i.e. at low temperatures and with extremely short curing times. Currently we are carrying out eco efficiency studies aimed at quantifying the reduction in carbon footprint when using these products.
In AkzoNobel a range of chemicals and coatings has been developed which contribute to carbon efficiency in houses and buildings. Examples are our polysulfides which are very effective sealants for double glazed insulating windows and a range of solar reflective roof coatings which can help reducing the energy needed to cool buildings by as much as 40 %.
One of our businesses produces High Performance Metal Organic Chemicals, which are indispensable for the manufacturing of LED lighting. According to the US Department of Energy, LEDs could reap 10 % of the global lightflux by 2020, which could prevent the construction of 40 additional powerplants.
Our Deco business produces and sells DuLux Light and Space, which is a light-reflecting indoor wall paint that helps save lighting energy.
Opportunities presented by current or anticipated physical changes resulting from climate change
AkzoNobel believes that next to financial drivers towards carbon efficient solutions (caused by government's concern for anticipated physical changes) also the concern for antipated physical changes by NGO's and consumers drives business in the direction of carbon efficient solutions.
General opportunities presented by climate change
AkzoNobel believes that next to financial drivers towards carbon efficient solutions (caused by government's concern for climate change) also the concern for climate change by NGO's and consumers drives business in the direction of carbon efficient solutions.
Planned investment in products and services designed to minimise/adapt to effects of climate change
Climate change has led to investment or planned investment in order to maximise climate change opportunities, including an eco-efficiency analysis in appropriation requests for investments is mandatory within AkzoNobel. Recent investments of our Pulp & Paper Chemicals Business in Brasil and of our Functional Chemicals Business in China meet the highest eco-efficiency and carbon efficiency standards (AkzoNobel Sustainability Report 2007, page 39, 42).
Future financial effects of opportunities presented by climate change
AkzoNobel's businesses have started to draw plans for meeting the strategic target of 30 % revenue from eco-efficient products in 2015. The financial implications are included in their Three Year Operational Plans and their Strategic Reviews.
The ETS could have a significant negative financial impact on our Chlor-alkali business especially if the ETS would not be embedded in a global trading system.
Greenhouse Gas Emissions
- Greenhouse Gas emissions methodology used: GHG Protocol
Direct emissions: are calculated from primary fuels consumed. The conversion factors used are provided by the Dutch Covenant benchmarking. Indirect emissions: are calculated from power and heat consumed and data concerning the type of power used (fossil fuel/type of fuel, nuclear, renewable) using conversion factors provided by the Dutch Covenant Benchmarking.
- Accounting year: 01/01/2007 to 31/12/2007
- Total global Scope 1 activity in Metric Tonnes CO2-e emitted: 800,000
- Total global Scope 2 activity in metric tonnes CO2-e emitted: 2,400,000
