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«SIBUR» LLC is the managing organization of PJSC «SIBUR Holding».

117218, Moscow, Krzhizhanovsky st., 16/1

Climate impact mitigation

At SIBUR, we recognise that climate change is one of the biggest challenges facing the humankind, society, and business today. To address it, the petrochemical industry is coming up with effective solutions to fight global warming.

Our Company has extensive technological, industrial, and research expertise in reducing greenhouse gas (GHG) emissions and transitioning to a low-carbon economy. We take an active approach to mitigating the climate impact of our own activities, adapting to climate change, and using our capabilities to develop new and effective decarbonisation solutions.

Our risk management framework places a strong focus on potential risks of climate change and their impact on the Company’s sustainable development.

SIBUR works to address climate risks in all aspects of its operations, especially when planning R&D and investment projects.

We set ambitious goals to increase energy efficiency and tackle climate change as part of our 2025 Sustainable Development Strategy:

reduce specific GHG emissions*:

— by 5% in the Midstream Segment (per tonne of products manufactured);
— by 15% in the Petrochemicals segment (per tonne of products sold);

increase the share of green energy in the energy mix by 5x (compared to 2020);

launch at least 2 projects for CO2 capture, removal, and storage;

plant at least 5 million trees;

make at least one SIBUR facility carbon neutral

including through a set of measures to improve the energy efficiency of processes, increase the share of renewables in the energy mix, introduce CO2 capture, removal and storage technologies, and run carbon sequestration projects.

* - Compared to 2018

Improving our energy efficiency

Energy resource management is integrated into SIBUR’s performance management system and incorporates elements of ISO 50001. This helps us to ensure the efficient use of energy resources, achieve energy cost savings, and leverage advanced energy technologies.

We assess the potential of our facilities for energy efficiencyimprovement against the global energy consumption benchmarksfor various types of feedstock and products. Where ourconsumption is above the benchmark, we work to identify thegaps and draw up a schedule for implementing improvements. Allnew production facilities are built in line with global energyefficiency benchmarks.

Energy efficiency initiatives

Possible energy efficiency solutions are identified based on best practices and new technologies. In 2020, more than 200 best practices were available to SIBUR’s engineers and energy workers.

Automated energy management

We have automated the accounting of energy consumption and distribution to monitor energy performance across our operations.

Energy audits

We perform energy audits of our water recycling systems, installations for the thermal recycling of air emissions, fuel consuming and other equipment to optimise their operation modes and improve energy efficiency.

Performance highlights (in 2020)

RUB 822 m

economic effect of energy saving initiatives

151.3%

improved energy intensity index (down 4.2% compared to 2019)

4.2 million GJ

energy saving compared to 2019

Decrease in energy intensity

per tonne of products across all segments:
23% in the Midstream segment;
2% the Olefins and Polyolefins segment;
28% in the Plastics, Elastomers, and Intermediates segment.

Increasing the share of green energy in our energy mix

The use of renewable energy resources is SIBUR’s strategic priority in improving energy efficiency and tackling climate change.

Our 2025 Sustainable Development Strategy envisages a fivefold increase in the share of renewable energy in our energy consumption compared to 2020.

To achieve this goal, we sign contracts with third-party producers of green energy while also implementing our own projects of renewable energy generation.

One solar power plant is already in use by SIBUR-Yug, our corporate resort, with another 6,140 MWh solar power facility under construction since 2021 at POLIEF.

Feedstock supply

Using petroleum by-products in our processes

SIBUR contributes to reducing carbon footprint by consuming petroleum and gas by-products which used to be flared at the field. This helps to prevent more than 70 million tonnes of CO2-eq. from being released into the atmosphere.

Using plastic waste in our production

Plastic is a highly recyclable material. The use of recycled plastic feedstock reduces the carbon footprint of end products and decreases the amount of waste in landfills. SIBUR has launched Vivilen Vivilen, a brand of products leveraging recycled plastic feedstock, and implements partnership and educational projects to promote a circular economy.

Reducing our carbon footprint

GHG capture and recycling technologies

SIBUR has partnered with Linde Gas Rus to launch its first CO2 recycling project. Once the project is completed, the Company will be able to process crude CO2, a by-product resulting from ethylene oxide synthesis, into a commercial-grade product usable in various industries. The innovative technology will help to recycle 25 kt of CO2 annually.

Performance highlights (in 2020)

Climate scenario analysis performed to assess the climate impact on the Company's financial results in line with TCFD recommendations

Over 200 000 tonnes

reduction of CO2 emissions

124%

meeting and exceeding our renewable energy consumption target

18%

reduction of specific GHG emissions in the Petrochemicals segment (per tonne of products manufactured) compared to 2019

5%

reduction of specific GHG emissions in the Midstream segment (per tonne of products manufactured) compared to 2019

18%

reduction of indirect GHG emissions from energy consumption

Carbon Disclosure Project (CDP)

In 2021, SIBUR earned CDP’s highest “A” scores for corporate governance and climate risk management.

Sequestration projects

SIBUR supports research to study the carbon absorption capacity of ecosystems, and develop the best mixes of types and species of plants in terms of their ability to absorb greenhouse gases.

The Company helped to open a 2.32 hectare carbon monitoring site in the Tyumen Region in partnership with the University of Tyumen research field station . Its equipment makes it possible to monitor GHG emissions across an area of over 10.600 hectares. SIBUR is also involved in establishing a carbon monitoring site in the Voronezh Region.

Our ongoing research will help improve the efficiency of reforestation projects, boost development in the agriculture sector and create carbon sequestration farms with increased CO2 absorption capacity.

Partner projects

СО₂ZERO

SIBUR became one of the first Russian companies to participate in the Air France / KLM alliance’s CO2ZERO initiative, a carbon offset service which lets Air France / KLM corporate customers fly carbon neutral around the world The programme’s participants pay a contribution to compensate for their flight’s impact on the environment. The proceeds from the compensation are used for reforestation.

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