Emissions

GHG Emissions

Sika monitors its greenhouse gas (GHG) emissions as part of the environmental responsibility the company has for climate. Since 2019, Sika has defined a strategic target for reducing scope 1 & 2 CO2eq emissions per ton sold by 12 % until 2023. Moreover, the compensation scheme of Group Management and Sika Senior Managers is linked to the GHG emissions performance of the company (scope 1&2).

In 2021, Sika performed its first scope 3 GHG emissions assessment based on 2020 data, which clearly demonstrated that scope 3 GHG emissions are of great relevance for Sika. The company will keep analyzing and reporting on GHG emissions with the aim to develop a net zero roadmap aligned with the objective of the Paris Agreement to limit the increase of global temperature to 1.5°C above pre-industrial levels.

Scope 3 Assessment and Net Zero Target

Sika is tackling climate change comprehensively in its strategic development. To do so, several projects and initiatives were kicked off in the last years as a basis for developing Sika net zero roadmap. All these ongoing projects and activities will allow Sika to define a comprehensive climate strategy with realistic long-term plans to decarbonize its business. Sika initiated a company-wide initiative in 2020/2021 to systematically identify and calculate emissions from its material scope 3 GHG categories in accordance with the requirements of the Greenhouse Gas Protocol (GHGP).

A first review of the company’s approach for calculating scope 3 GHG emissions was completed in July 2021 based on 2020 data. Following a materiality assessment of the GHGP scope 3 categories, the following categories were identified as most relevant for Sika:

• Category 1: Purchased goods and services
• Category 2: Capital goods
• Category 4: Upstream transportation and distribution
• Category 5: Waste generated in operations
• Category 6: Business travel
• Category 9: Downstream transportation and distribution
• Category 11: Use of sold products
• Category 12: End-of-life treatment of sold products
   

The second phase of this initiative, which has been initiated in the second half of 2021 and is currently ongoing, aims at consolidating the methodological approach and assessing the scope 3 emissions for 2021. Based on this analysis, Sika will define its climate strategy and carbon reduction pathway to reach net zero by 2050.

In 2020, Sika joined the ‘Together for Sustainability’ (TfS) initiative and became one of its 33-member companies. Through this initiative, Sika is contributing to the development of a sectorial standardized methodology regarding Product Carbon Footprint (PCF) calculation, including scope 3 reporting processes. This will create transparency in the chemical industry to enable effective reduction management.