While the nature of our business and manufacturing processes requires large amounts of energy, we remain committed to implementing innovative solutions to maximize our energy efficiency and reduce our greenhouse gas (GHG) emissions.
Since 2005, Eastman has participated in the European Union’s Emission Trading System (ETS). Through this program, we have bought and sold emissions credits and implemented numerous energy efficiency projects, which have helped reduce our overall emissions.
Eastman, along with 10,000 other U.S. facilities, has submitted its annual report of GHG emissions in compliance with the EPA’s mandatory GHG reporting rule.
Over the last five years, we have converted six boilers at our domestic sites from oil and coal to natural gas and propane combustion. We plan to convert more boilers over the next few years. The conversion from coal to natural gas will enhance our emission reduction efforts and help us attain our goals.
Eastman started using renewable electricity in its Oulu, Finland, site manufacturing processes. In combination with earlier steps that Oulu took to improve its carbon footprint, the energy supply at the site will be completely free of fossil fuel.
For years, the steam used for Oulu’s manufacturing processes has been generated from nonrecyclable municipal waste. In addition, Eastman’s Oulu site will further reduce its GHG emissions and fossil fuel use and improve its carbon footprint by increasing the use of green energy in its manufacturing processes. Simultaneously, Eastman invested in a carbon capture and use system, in which carbon dioxide is captured and recycled as a raw material, significantly reducing Scope 1 and Scope 2 GHG emissions.
Direct GHG emissions are from sources controlled and operated by Eastman. Indirect GHG emissions result from Eastman’s purchase of energy generated by facilities owned by another company. We measure our emissions based on the protocol recommended by the Intergovernmental Panel on Climate Change (IPCC) and American Chemistry Council Responsible Care® guidelines. We also measure GHG emissions in accordance with the EPA Mandatory Reporting Rule (MRR), which is a different methodology from the IPCC/ACC methodology.
In terms of relevance, significant indirect GHG emissions are offset by Eastman products due to properties including durability, energy efficiency, lightweighting, etc. A 2009 study, commissioned by the International Council of Chemical Associations (ICCA), showed that for every one pound of CO2 emitted in producing chemicals and plastics, two to three pounds of emissions are reduced by using consumer products made from those chemicals or plastics.
Our cogeneration technology makes us among the most efficient energy users in the world. Because Eastman facilities are energy intensive, we generate the steam and electricity we consume, and we are vertically integrated (starting with basic raw materials, producing our own intermediates, then converting them to final products), our reported direct GHG emissions may be higher than those of our peers. Please note that the mandatory reporting rule does not require companies to report their indirect GHG emissions, e.g., the GHG emitted in the production of the electricity they purchase from utilities and consume.