Infineum announces today its ambition to reach net zero for scope 1 & 2 operated asset greenhouse gas (GHG) emissions by 2050. This represents an extension of current efforts to reduce operational GHG emissions intensity to 20% by 2025¹. In addition, Infineum is also working towards a significant reduction in its overall supply chain GHG emissions. Provisional roadmaps have been defined to achieve these ambitions and will continue to be refined over the coming years in collaboration with our supplier and customer partners.

AMBITIONS

Infineum’s new ambitions support the GHG emissions reduction trajectory goal of the Paris Agreement:

Scope 1 & 2

• 50% GHG emission intensity reduction by 2030 for operated assets¹
• Net zero by 2050 for operated assets

The extent of ultimate achievement of the above ambitions could vary depending on various factors, including Infineum’s ability to execute operational objectives, supportive changes in laws and regulations, and other market factors (see CAUTIONARY STATEMENT for more details).

Scope 3

• Infineum is committed to helping its customers achieve their GHG emissions objectives by utilizing a life cycle assessment (LCA) approach. Infineum expects that its efforts could reduce scope 3 emissions by about 20% by 2030² while still meeting society’s demand for its products.

The extent of ultimate achievement of the above ambitions could vary depending on various factors, including Infineum’s ability to execute operational objectives, supportive changes in laws and regulations, and other market factors (see CAUTIONARY STATEMENT for more details).

“The progress we’ve made so far on our sustainability journey has given us confidence to extend our GHG emissions reduction ambitions, including scope 1 & 2 ambitions to net zero,” said Trevor Russell, Infineum CEO. “This will enable us to provide the lower carbon solutions to help our customers reach their own decarbonization objectives. It also represents a key step in achieving Infineum’s vision to transform into a world-class, sustainable specialty chemicals company and live our purpose to create a sustainable future through innovative chemistry.”

SCOPE 1&2

Since 2018, Infineum has achieved a 14% reduction in GHG emissions intensity of its operations1. This was achieved primarily through operational improvements, particularly in energy efficiency. Achieving he 50% reduction ambition by 2030 will require further operational improvements and increased usage of renewable energy sources. Infineum is working with its energy providers and site partners to cost-effectively expand solar farms, improve renewable energy mix and optimize our facilities. Capital investment in Infineum’s manufacturing facilities will continue, particularly for our ambitions beyond 2030.

SCOPE 3

Infineum is committed to helping its customers achieve their GHG emissions objectives. To support this, scope 3 upstream and downstream emissions have been characterized using the GHG Protocol Scope 3 Standard. Infineum has also completed a comprehensive LCA on its product lines using relevant ISO standards and the GHG Protocol Product Standard. This has provided insights into the key sources of scope 3 GHG emissions and potential approaches to reduction. Similar to scope 1 and 2, Infineum is working with its upstream suppliers to increase efficiency and improve energy mix. This is expected to result, for example, in the use of re-refined base oils in the manufacture of Infineum products and increased incorporation of renewable raw materials. Infineum is setting a scope 3 ambition to help drive the necessary innovation and investment in its industry towards increasing the supply of products with lower GHG emissions.

AVOIDED EMISSIONS

Avoided emissions refers to the impact of a product relative to alternatives³. Infineum already has been investing in new additive technology for many years to help engines operate more efficiently, enabling improved fuel economy, emissions system protection and overall resource optimization. This effort is now also contributing to the global aim of reducing GHG emissions, helping the transition to a lower carbon economy. It is important that the benefits of in-use avoided emissions are not compromised in the decarbonization of the additives industry and its products. Accordingly, Infineum is working with its customers to understand how to achieve the right balance of lower product carbon footprint and in-use performance.

“Reducing GHG emissions is really nothing new for us as we’ve worked hard for many years to improve the efficiency of our operations and the engines that use our products,” said Russell. “We must continue to work with our customers in optimizing the performance of our products while also decarbonizing our operations and introducing more circularity into the additives industry. Finding the right balance is what’s best for the planet and will enable our industry to be resilient through the energy transition.”

CAUTIONARY STATEMENT

Statements of future ambitions, goals, events or conditions in this publication, including projections, plans to reduce emissions and emissions intensity, sensitivity analyses, expectations, estimates, the development of future technologies, and capital investment and business plans, are forward-looking statements. Actual future results, including the achievement of ambitions to reach scope 1 and scope 2 50% reduction by 2030 and net zero from operated assets by 2050, to reach Scope 3 20% reduction by 2030, to meet its emission-reduction plans and associated capital investment and project plans as well as technology efforts, and reserve or resource changes could vary depending on the ability to execute operational objectives on a timely and successful basis; changes in laws and regulations, including international treaties and laws and regulations regarding greenhouse gas emissions and carbon costs; government incentives; trade patterns and the development and enforcement of local, national and regional mandates; unforeseen technical or operational difficulties; the outcome of research efforts and future technology developments, including the ability to scale projects and technologies on a commercially competitive basis; changes in supply and demand and other market factors affecting future prices of oil, gas, and petrochemical products; changes in the relative energy mix across activities and geographies; the actions of competitors; supply chain considerations, changes in regional and global economic growth rates and consumer preferences; the pace of regional and global recovery from the COVID-19 pandemic and actions taken by governments and consumers resulting from the pandemic; changes in population growth, economic development or migration patterns; military build-ups or conflicts. We do not undertake to provide any updates or changes to any data or forward-looking statements in this document. The statements and analysis in this document represent a good faith effort by Infineum despite significant unknown variables and, at times, inconsistent market and government policy signals. Energy demand modeling aims to replicate system dynamics of the global energy system, requiring simplifications. The reference to any scenario, including any potential net-zero scenario, does not imply Infineum views any particular scenario as likely to occur. In addition, energy demand scenarios require assumptions on a variety of parameters. As such, the outcome of any given scenario using an energy demand model comes with a high degree of uncertainty. For example, the IEA describes its NZE scenario as extremely challenging, requiring unprecedented innovation, unprecedented international cooperation and sustained support and participation from consumers. Investment decisions are made on the basis of Infineum’s separate planning processes but may be secondarily tested for robustness or resiliency against different assumptions, including against various scenarios. Infineum reported emissions, including reductions and avoidance performance data, are based on a combination of measured and estimated data. Calculations are based on industry standards and best practices. The uncertainty associated with the emissions, reductions and avoidance performance data depends on variation in the processes and operations, the availability of sufficient data, the quality of those data and methodology used for measurement and estimation. Changes to the performance data may be reported as updated data and/or emission methodologies become available. Infineum works with industry to improve emission factors and methodologies, including measurements and estimates.

1. As measured on a production volume basis for 2022 base assets under Infineum’s operational control against a 2018 baseline.

2. As calculated on impacts up and down the value chain for Infineum’s 2022 business portfolio against a 2018 baseline.

3. Definition from WRI working paper dated January, 2019.