N₂O emissions under Scope 1 (Mandatory):

The only mandatory pathway in the SBTi’s Chemicals sector guidance relates to N₂O emissions from the production of nitric acid, which is primarily used in the manufacture of nitrogen fertilisers, as well as in other applications such as explosives and dyes. If N₂O emissions (on a CO₂e basis) are 5% or more of total Scope 1 emissions, companies must commit to reducing their emissions intensity in line with the benchmark of 0.5 kgN₂O/tonne of nitric acid produced, by 2035 at the latest.

Once a company’s average emissions intensity for N₂O emissions from nitric acid production has reached this benchmark, a separate emissions intensity target on these emissions is no longer required. This may occur before or during the target year.

Ammonia (Optional):

There are two pathways for ammonia production, depending on whether it is used solely for non-energy purposes, such as in fertilisers, or for non-energy and energy purposes. Companies can use either pathway, but not both.

Targets are set based on an emissions intensity per tonne of ammonia produced, starting at 2.61 kgCO₂e/kg ammonia for non-energy purposes, and converging on zero by 2050. The pathway for both non-energy and energy purposes also starts at 2.61 kgCO₂e/kg in 2020 and reduces to 0.04 kgCO₂e/kg in 2050.

Ammonia producers will therefore need to significantly improve the efficiency of their production to reduce their emissions intensity. This could involve switching to green hydrogen produced via renewable-powered electrolysis or increasing the use of lower-carbon energy sources. 

Methanol production for non-energy purposes (Optional):

Methanol is a key chemical feedstock for formaldehyde production, acetic acid and other products, as well as a key combustion fuel and solvent. This pathway states the expected emissions intensity of methanol production, falling from 2.58 tCO₂e/tonne in 2020 to 0.09 tCO₂e/tonne in 2050. To meet the intensity target companies will need to reduce emissions through measures such as transitioning to renewable energy use, process optimisation and the use of alternative feedstocks, including biomass. 

High-value chemical (HVC) production (Optional):

Olefins, benzene, toluene, and aromatics are all considered HVCs in the SBTi guidance. This pathway outlines the expected emissions intensity reduction, starting at 1.06 kgCO₂e/kg HVC and converging on 0.04 kgCO₂e/kg HVC by 2050. Companies will need to reduce emissions through measures such as transitioning to renewable energy use and process optimisation.

Scope 1 emissions (Optional):  

Non-primary chemicals are any chemical other than primary chemicals or nitric acid that fall under the SBTi chemicals sectoral boundary. This pathway is based on an absolute emissions reduction percentage through to 2050, starting at 4.8% in 2030 and rising to 94.6% in 2050. To meet the SBTi target, companies should implement measures to reduce emissions, such using bio-feedstocks, process optimisation, transitioning to renewable energy use and reducing process-related greenhouse gas emissions like methane.

Nitrogen fertilisers (Optional):

Nitrogen fertilisers – such as urea, ammonium nitrate and more – emit N₂O when applied to land. The SBTi has therefore provided an optional target pathway for companies that sell nitrogen fertilisers based on the reduction of N₂O emissions from the use-phase of nitrogen fertilisers in the near and long term.

This is an important consideration for nitrogen fertiliser producers, who have limited direct control over downstream emissions from the use of their products. However, they can influence outcomes through measures such as developing improved fertiliser formulations, providing guidance on optimal application practices and supporting better land management through advisory services and partnerships.

Alternative feedstocks (Optional):

The optional pathway for the share of purchased alternative feedstocks is split out depending on whether mechanical recycling is included or excluded.

This pathway focuses on one of the key levers for decarbonisation of the chemicals sector: reducing the reliance on fossil-based feedstocks by progressively transitioning to alternative feedstocks and recycled materials. 

The scope of the pathways does not include:

• Emissions from the production of final products that may be manufactured using the chemicals mentioned above if these activities do not involve the synthesis of new chemical products, such as plastic packaging or the blending of cosmetics, textiles, detergents, paints, or inks.
• Emissions from mechanical recycling activities.
• Emissions from the production of biofuels.
• Emissions from the production of chemicals in refineries.