Covestro transforming supply chain to meet sustainability goals

Covestro A.G. is working to meet its sustainability goals while adding products to help customers meet theirs.

"We announced our climate targets early on," Chief Technology Officer Thorsten Dreier said in a recent interview with Plastics News. "Our overall scope is ambitious, and we're working with society to make that happen."

Earlier this year, Covestro, based in Leverkusen, Germany, with U.S. headquarters in Pittsburgh, released plans to cut its Scope 3 carbon emissions by 2050. Officials said that reduction will require a transformation of the firm's entire supply chain.

Covestro already had published its plans to reduce Scope 1 and Scope 2 goals. Scope 1 refers to direct emissions while Scope 2 covers indirect emissions, such as those from purchased energy, heat and steam used by the business. Scope 3 covers indirect emissions not already covered under Scope 2.

Covestro's Scope 3 emissions make up 80 percent of its total greenhouse gas emissions, with the raw materials it purchases being responsible for the greatest share. The firm now plans to reduce its greenhouse gas emissions by 10 million metric tons by 2035 and to neutralize Scope 3 emissions by 2050.

With these goals in mind, Dreier said Covestro is targeting everything from green electricity to solar and wind parks, as well as opportunities in both mechanical and chemical recycling. He added Covestro is looking at ways to electrify steam generation and to adopt biomaterials, such as using sugar to make a bio-based polyurethane.

Covestro materials also can improve energy efficiency in buildings, Dreier said. Its products also are being looked at for use in battery housings and other applications in electric vehicles.

To help customers meet sustainability goals, Covestro recently has introduced a recycled-content grade of a blended polycarbonate/ABS resin. The material can be used in a range of interior and exterior automotive applications, including lighting, automotive marketing manager Karen Guzman said in an interview with PN.

"OEMs are looking for combinations of prime and recycled materials," she added. "And this [PC/ABS] can meet all performance requirements."

The new grade currently is available with up to 25 percent recycled content. Guzman said a grade with 35 percent recycled content will be available by the end of the year, and that customers already are asking for one with 50 percent recycled content.

In June 2023, Covestro signed its first major renewable energy deal in June for its U.S. operations. The agreement between Covestro and Danish clean energy leader Orsted A/S will supply 90 megawatts of power to Covestro's production site in Baytown, Texas.

The 15-year agreement secures power from the Mockingbird Solar Center in Lamar County, Texas. The deal is expected to offset more than 150 million pounds of carbon dioxide emissions annually and will reduce Scope 2 emissions from Baytown, which is Covestro's third largest global production site.

Covestro is a global supplier of polycarbonate resins and films, thermoplastic PU, PU materials and foams, and other specialty chemicals and materials. The firm posted sales of $15.6 billion in its 2023 fiscal year.

Covestro's U.S. presence includes roughly 2,700 employees and 13 site locations. The U.S. business represents approximately 25 percent of global Covestro sales.