Borealis’ environmental management encompasses managing its energy consumption and efficiency, emissions to the environment (air and soil), its use and discharge of water, operational waste, and its overall environmental performance, ensuring compliance with all applicable laws and regulations.
CO2 emissions and energy consumption are among the most material impacts arising from Borealis’ production processes and their reduction are therefore the main drivers of Borealis’ environmental performance improvement. Nevertheless, emissions to air, water use, waste and effluents also play a significant role in high-quality health, safety and environmental (HSE) management. As a consequence, they are included in the Group’s HSE management processes and are monitored as part of the environmental objectives of each location.
At Group level, environmental management is the responsibility of the Health, Safety, Environment and Quality (HSEQ) function, which reports directly to the Chief Executive Officer. HSEQ defines the Group’s standards and processes for its environmental management system.
Borealis has a number of networks that bring together environmental experts from across the Group. The Environmental network holds regular meetings with the location environmental experts, to discuss and agree on activities to continuously improve the environmental management system and performance. This includes drafting and reviewing new instructions, resolving matters identified by internal and external audits, and reviewing environmental performance and potential risks and opportunities. The team also shares lessons learned and improvement actions implemented, as well as discussing authority permits for projects and legal compliance.
The Group also has a network for Operation Clean Sweep (OCS), with regular meetings with the OCS specialists to discuss lessons learned, share improvements and drive performance.
The HSE manager’s network defines the HSE strategy and improvement actions, and shares information, for example learnings from incidents, best practices, gap closing or audit actions. The network includes the Head of HSSE, local HSE managers and Group HSE experts. Borealis’ environmental experts also contribute to the Public Affairs team, to help formulate Borealis’ position on environmental issues.
At a location level, the local HSE team includes environmental experts and reports to the location leader. The local leadership meets each month to discuss HSE performance, including environmental KPIs and other indicators, as well as performance of key projects. Every location also has an HSE Forum, where employee representatives are consulted and informed about the HSE management system. The HSE Forum also promotes worker participation.
At least every three years, the Group performs a detailed and systematic environmental risk and opportunity assessment for every plant, in all locations. The assessments are also performed as needed, if there have been major changes, near misses, incidents or accidents, or if potential improvements have been identified. The risk assessments are based on an evaluation of the legal framework and possible upcoming changes, any deviations from permit limits and stakeholder input. Risks above a certain level are added to the Group risk management tool.
Based on these assessments, Borealis defines and documents HSE objectives and targets for each location. Clear responsibilities and timelines are agreed and reviewed at Group HSE level. The consolidated outcomes, including HSE performance, are reported to the Executive Board.
Borealis also conducts a regular stakeholder engagement process, with all significant environmental risks assessed for how they could affect the Group’s neighbours and other stakeholders in the community. The engagement approach for each aspect is then defined and can range from newsletters to participation in or initiation of round-tables, to one-on-one discussions with key stakeholders. Matters that can be managed locally are dealt with by local senior managers. Bi-monthly public affairs calls ensure a thorough exchange of information between Group and location management.
All Borealis production locations are part of an ISO 14001- compliant environmental management system. In 2022, the Group’s global ISO certification was split due to the anticipated divestment of Fertilizers, Melamine and Technical Nitrogen Products (TEN), with that business successfully achieving its own independent multi-site ISO certification.
Borealis also uses an environmental data management system and reporting software. This ensures control of data flows from varied sources, in multiple formats and on different schedules, as well as the traceability and transparency required for reporting and auditing.
The Group is committed to complying with all relevant environmental laws, regulations, standards and other legal requirements, such as operational permits. This ensures that the Group can continue to operate and is protected from fines, reputational damage and the costs of impact mitigation. The Group reviews all cases of non-compliance and takes action to prevent them from reoccurring.
Borealis is also committed to implementing the principles of Responsible Care®, the chemical industry’s voluntary commitment to continuous improvements in HSE performance, as well as the Product Stewardship standard of Fertilizers Europe. The Group uses Cefic’s self-assessment web tool annually, to help it continually improve its approach to Responsible Care. The tool has numerous features, including benchmarking performance against peers and cross-referencing performance against the United Nations Sustainable Development Goals and other standards.
Borealis’ intensive preparations for the WGC BREF during 2021 included building a full inventory for each polyolefin plant in accordance with requirement no. 2 (BAT 2 – Best Available Technology). In 2022, following the publication of the final draft of the WGC BREF, the Group used the inventories to conduct a full gap assessment against the 26 applicable BAT requirements. The assessment then was handed over to the locations’ technical experts, to define work packages and projects to close the identified gaps. The decision on the WGC BREF was published on 12 December 2022 and the Group will have four years to ensure all its plants meet the requirements.
After a consultation in April 2022, Borealis joined the kick-off meeting organised by the EU Commission in October 2022 to define the scope of the revision of the BREF LVIC “Large Volume Inorganic Chemicals”, which will design the future mandatory emission limits for ammonia, nitric acid and fertilizer plants.
In collaboration with its suppliers, the Fertilizer business has developed new bags which contain 30% recycled plastic materials and started to deliver to customers with products packaged in the new bags in the second half of the year. Carbon footprinting enables a business to identify and analyse greenhouse gas emissions throughout the product value chain. Fertilizers, Melamine and TEN has taken an important step in providing certified emissions data to its customers and stakeholders, by achieving PAS2050:2011 carbon footprint certification.
Borealis’ emissions to air result from its production processes and from combustion for energy generation. In addition to carbon dioxide and nitrous oxide, these emissions comprise:
Borealis’ emissions to air are identified using a mix of direct measurements (for example, in the stack) and calculations based on measured fuel consumption and emission factors. The level of complexity (for example, where several units use one stack) and the magnitude of the emission dictate whether to measure in the stack or use the fuel consumption. In most cases the emission factors are provided by local or national authorities, as they form part of the permit or the reporting requirements (for example, the emission factors provided may state that 1m3 of natural gas burned in a steam boiler produces x mg of NOx). In some cases, the factors are literature-based. Borealis follows all related legal requirements and the stipulations in its permits. In addition, Borealis has established its own requirements for measuring and following up on key pollutants. Deviations from the norm are reported within the Borealis incident management system and then investigated and addressed through corrective actions. The approach taken depends on the magnitude of the emissions’ impact and their criticality. Actions are prioritised using the principles following the Group’s Risk Management Policy, in line with Borealis’ sustainability management approach. High-risk issues and proposals with significant potential for improvement are regularly discussed by and addressed to the Executive Board.
Volatile Organic Compound Emissions
Borealis’ goal is to reduce its VOC emissions by detecting and repairing leaks quickly. In 2022, Borealis’ VOC emissions were 2,608 tonnes for Hydrocarbons & Energy (HC&E) and Polyolefins (PO), compared to 2,871 tonnes in 2021. The decrease mainly resulted from several turnarounds in the locations, resulting in production stopping for close to two months. VOC emissions for Fertilizers, Melamine and TEN were 357 tonnes in 2022, compared to 386 tonnes in 2021.
Flaring
Flaring is a necessary safety measure used in the Group’s hydrocarbon and polyolefin plants, in which excess gases which cannot be recovered or recycled are safely burned. However, it causes CO2 emissions, although these are a minor part of the Group’s overall CO2 emissions, as well as NOx emissions. In addition, flaring means inefficient use of the Group’s resources and nuisance to Borealis’ neighbours, and also has legal implications, such as permit stipulations or restrictions to emergency flaring.
The Group has set a target for zero non-emergency flaring by 2030. Turnarounds, regular maintenance of the plant’s assets and other internal and external factors influence the
achievement of these targets.
In particular, flaring increases in years with higher numbers of turnarounds, which are scheduled events during which a plant is temporarily taken out of operation to carry out important maintenance works and inspections. This inevitably leads to more flaring, as plants or lines must be safely shut down, emptied and ramped up again.
In 2022, best practices, refined definitions and uniform minimum requirements, for example for measurements, have been summarised in a new document in the Borealis Management System. The Group’s project and risk database has also been updated to track flaring projects and monitor progress towards the 2030 target.
Flaring losses in 2022 were 40 kilotonnes for HC&E and PO, compared to 38.5 kilotonnes in 2021. The effort to reduce upsets and implement flaring improvements continued, but several turnarounds as well as external power failures led to significant start-up and shut-down flaring, as well as emergency flaring during 2022.
At 14,113 tonnes, non-emergency flaring losses for HC&E and PO in 2022 were lower than in 2021 (15,950 tonnes) and below the target of 15,982 tonnes.
Dust Emissions
Dust reduction and prevention is a focus for all Borealis operations and for improvement projects. In the Group’s fertilizer locations, which are the main contributor, these emissions are continuously measured. Borealis’ polyolefin production plants monitor dust emissions using spot samples, which is why only dust emissions from the fertilizer production sites are reported below. In 2022, the total dust emissions from the fertilizer production (including Rosier) units totalled 502 tonnes compared to 511 tonnes in 2021. However, several production units encountered problems in measuring dust emissions. Due to the wetness of the dust, the standard used to quantify dust was inaccurate, leading to inconsistent results from the analysis. Work with leading metrology companies is ongoing to better characterise particulate emissions.
NOx Emissions
Borealis measures most of its NOx emissions, with the remainder being calculated using a standardised emission factor. Absolute NOx emissions in 2022 were 1,102 tonnes for HC&E and PO, compared to 1,314 tonnes in 2021. NOx emissions for Fertilizers, Melamine and TEN were 943 tonnes in 2022, compared to 1,275 tonnes in 2021.
Ammonia Emissions
Ammonia emissions are a consequence of either failures during the ammonia production process or leaks during storage or transportation. These emissions amounted to 8 tonnes for HC&E and PO, compared to 19 tonnes in 2021. Emissions for Fertilizers, Melamine and TEN were 550 tonnes in 2022, compared to 415 tonnes in 2021. The decrease in emissions was due to lower production.
Sulphur Oxide (SOx) Emissions
Borealis does not produce SOx emissions, as it only uses gaseous fuels (natural gas and hydrocarbons) where no sulphur is present.
Nitrous Oxide Emissions
The production of nitric acid causes emissions of nitrous oxide, also known as laughing gas (N2O), which is a highly relevant greenhouse gas with a global warming potential of about 298 times that of CO2. An additional step done in one unit in the existing elaborate waste gas treatment, which involves injecting methane into the catalyst system, further reduces N2O emissions by up to 90%.
Borealis needs water to operate its plants and sites. Cooling is the largest use of water. Other uses include feeding boilers, cleaning, sanitary uses and firefighting.
Borealis’ environmental experts in each operation continuously monitor water consumption as part of the Group’s environmental monitoring programme, as well as to comply with the permit limits set by the respective local authorities.
The Group looks to minimise its water use where possible, for example by recycling water in its production process. It also looks to improve the quality of the water it discharges through filtration, neutralisation and biological wastewater treatment.
In addition to ensuring legal compliance, Borealis uses tools such as the WWF (Worldwide Fund for Nature) water risk filter to assess areas of concern, such as baseline water stress or interactions with neighbours and other stakeholders. This helps the Group to steer and prioritise improvement projects.
Water availability varies by location. A detailed water inventory was carried out in 2020 and 2021, which served as the basis for a risk assessment and fostered Borealis’ understanding of its water usage, water emissions and water related risks at each site and across the Group as a whole.
The results showed that four of the Group’s sites are in locations with critical water availability and are therefore subject to stringent water permits. Borealis prioritised these locations, which were the first to implement the Group’s newly developed water management principles during 2022. As a consequence, the Group finalised water management plans in 2022 which have been rolled out initially to seven locations (Antwerp, Beringen, Geleen, Itatiba, Kallo, Monza, and Rockport). These locations were prioritised due to their baseline water stress levels. In addition to improved data quality and follow up of water flows, the water management plans generate insights and propose projects to reuse water and use it more efficiently. By the end of 2023, all locations of HC&E/PO will have to have a water management plan in place, as defined by the Group management system. Newly acquired locations will have three years to comply with this requirement.
The water management plans will cover all aspects, from withdrawal of water, to its use and finally to its discharge, as well as the impacts this generates on the water bodies (source and receiving) effected. Borealis uses WWF’s Water Risk Filter to analyse the impacts. Following the establishment of water management plans for all locations, targets and goals will be defined across the Group.
Water Withdrawal
The majority of the water Borealis uses in its operations is withdrawn from surface water, for example, from water bodies such as rivers and oceans. The remainder is extracted from groundwater, wastewater from another organisation, municipal water supplies or other water utilities. In some locations, rainwater is also collected and used.
In addition to setting minimum requirements for measurement and reporting, the water management principles require the locations to define, evaluate and report water withdrawal reduction measures, such as rainwater collection and usage, water saving, substitution, recycling and closed-loop systems.
Borealis’ water withdrawal in 2022 was 407 million m3 for HC&E and PO, compared with 448 million m3 in 2021, and 250 million m3 for Fertilizers, Melamine and TEN, compared with 286 million m3 in 2021. Part of the decrease in consumption resulted from normal fluctuations, due to the varying intensity of maintenance activities and weather conditions. For example, if rivers, lakes and the sea become very warm due to heat waves, then Borealis requires much more water to keep up its production levels during the summer. The remainder of the decrease stemmed from the reduction in production volume.
1) All water withdrawal is measured in accordance with local legal requirements. Borealis only regards drinking water supplied by municipalities as freshwater. The water taken from the sea, lakes and rivers, as well as ground water, varies quite significantly over the course of a year in respect of dissolved solvents, which is why it is regarded as “other water”.
Wastewater Discharge
The volume and nature of the wastewater Borealis generates depend on the type of production at its locations. Borealis therefore installs water treatment techniques that are appropriate for each plant’s production process. These techniques can include filtration, neutralisation, osmosis, gravimetric and biological water treatment.
All Borealis plants are connected to wastewater treatment installations, consisting of internal treatment units, external plants or both. Water is then discharged primarily into a surface water body such as the oceans or rivers. This is also likely to be the water body the water was originally withdrawn from, thereby limiting the environmental impact as much as possible. In Grandpuits, France, Borealis has no surface water body close by and no permit to discharge into one. Discharges are therefore made into a special salted groundwater aquifer instead. Each of the Group’s operations carefully monitors wastewater flows and contaminants, to ensure that all parameters are within permitted levels, and reports this regularly to the relevant authorities.
1) No water bodies are affected by water discharge and/or run off.
Recycling and Reusing Water
To increase water-use efficiency, Borealis seeks, whenever possible, to recover its process water or to reuse wastewater. For example, in some operations cooling towers use recycled water or rainwater. This is not possible in all locations, as it depends on permit stipulations and on the water body. Borealis prioritises reductions in energy consumption and CO2 emissions. As water consumption and energy use are closely linked, due to the energy recovery from cooling water, the Group may also on some occasions decide to increase its water withdrawal in order to recover more energy.
At Borealis’ operations in Grandpuits, Grand-Quevilly, Linz and Ottmarsheim, cleaning production equipment during maintenance generates water containing nutrients. This is partly recycled and partly valorised as liquid fertiliser with low nutrient content.
Borealis generates waste during production and during short regular shutdowns and plant turnarounds. Waste generated upstream or downstream of the Group’s production is not included in its waste reporting. The most common types of waste produced in Borealis’ operations include the non-recyclable polymers included in the polymer waste input to the Group’s recycling plants, as well as excavated soil, wastewater treatment sludge, solvents, mixed industrial waste and inert construction material. Borealis aims to minimise the production of waste where possible, but its main objective is to treat waste as a resource and to better handle end-of-life products by making them circular.
Borealis monitors waste production and implements control measures in all its operations, based on the requirements of regulations and ISO 14001 standards. The Group has waste management plans for each location, which are coordinated by local environmental experts. All locations follow the “4R” rules: reduce, reuse, recycle and recover.
In all of the Group’s locations, waste is collected by a certified third-party waste handling company, sorted and then brought to final treatment. For all waste that leaves its sites, Borealis receives a treatment statement and bill, including the collection and final treatment fee. Each Borealis site collects these documents and ensures the correct reporting of invoices and environmental data. The data in this report is accurate up to November 2022. Due to the early deadline for closing this Annual Report, December values have not been submitted by the waste handling companies. In order to have representative figures, December values are estimated based on the average of the last 11 months.
1) Environmental data might be subject to minor adjustments due to ongoing audits and missing third-party data at the time this report was finalised.
1) Environmental data might be subject to minor adjustments due to ongoing audits and missing third-party data at the time this report was finalised. // 2) “Other Treatment” category includes, for example, land treatment, biological treatment and physico-chemical treatment. // 3) Values were adjusted accordingly to ensure summation to 100.0%, with rounding errors kept to a minimum.
1) Environmental data might be subject to minor adjustments due to ongoing audits and missing third-party data at the time this report was finalised. // 2) Values were adjusted accordingly to ensure summation to 100.0%, with rounding errors kept to a minimum.
The Group has implemented integrated manufacturing processes which recover as much co-product as possible. For example, the CO2 emitted by the ammonia production site in Linz, Austria, is used in the production of urea at the same site. In the fertilizer production process, condensate from steam contains co-products which are reinjected into the process to minimise loss of resources. If a co-product cannot be reused and therefore becomes waste, the Group’s preference is to recycle it, taking into account relevant regulations and environmental considerations.
The Group only employs accredited contractors for handling its waste streams. By-products of polymer production, such as non-prime material or material from cleaning activities, are used to the extent possible in the Group’s recycling plants.
Non-recyclable waste has become one of the largest proportions of total waste for the Group and a main driver of the significant drop in the overall recycling percentage. Currently, this stream is used as secondary fuel in steel or cement production, but considerable research effort is going into finding a recycling solution for this stream as well.
The majority of the Group’s locations are in Europe, where data collection and reporting are clearly defined by the Waste Framework Directive. Regular internal audits and external audits by local authorities validate these waste figures.
In 2022, the Group’s total waste volume was 82 kilotonnes for HC&E and PO and 10 kilotonnes for Fertilizers, Melamine and TEN, compared to 84 kilotonnes for HC&E and PO and 18 kilotonnes for Fertilizers, Melamine and TEN in 2021. Approximately 20% of HC&E and PO’s and 59% of Fertilizers, Melamine and TEN’s waste volume was recycled, 26% (HC&E and PO) and 4% (Fertilizers, Melamine and TEN) was recovered and 54% (HC&E and PO) and 37% (Fertilizers, Melamine and TEN) was disposed of, with 7% (HC&E and PO) and 15% (Fertilizers, Melamine and TEN) going to landfill and 47% (HC&E and PO) and 22% (Fertilizers, Melamine and TEN) receiving a different treatment.
1) Environmental data might be subject to minor adjustments due to ongoing audits and missing third-party data at the time this report was finalised.
The majority of Borealis’ hydrocarbons in use are gaseous under ambient temperature and pressure, such as ethane, naphtha, ethylene or propylene. Therefore a leak in any equipment (for example a pipeline, flange or vessel) would lead to an emission to air rather than a spill.
There are some liquid hydrocarbon raw materials in use, such as peroxides or oils for lubrication. All of these chemicals are stored and handled in designated areas with sealed surfaces and run-off protection. A spill to environment with liquid hydrocarbons is therefore highly unlikely and almost only possible during transport on site.
Pellet Spills
Plastic pellet loss is an important type of spill for a plastic raw material producer. Pellets released unintentionally during production, transportation, conversion and recycling can end up in nature, rivers and oceans. Preventing pellet spills is therefore a core responsibility for the industry. Borealis is fully committed to zero pellet loss and has incorporated all elements of Operation Clean Sweep® (OCS), an international programme to mitigate pellet loss, into its internal instructions, at both Group and local levels, as well as across its supply chain.
In 2021/2022, eight locations underwent an intensive two-day audit by Group experts in OCS, to thoroughly check compliance with the internal OCS requirements and the OCS standard. The audit covered all areas of the standard, from risk assessment and management, to work instructions, housekeeping and the training programmes for all employees. The audits showed continued growth in Borealis’ OCS maturity and progress towards compliance with the upcoming third-party certification standard.
Furthermore, Borealis has proactively contributed to the development of a third-party audit and certification scheme for OCS led by Plastics Europe and launched at K-Fair 2022. With the latest audit recommendations now being implemented, all European Borealis locations are in a good position to pass the third-party certification audit in the next one or two years.
The Group’s target is to achieve full third-party OCS certification of all its sites in Europe by the end of 2024. Non-European sites are required to fully comply with the Group’s internal standard.
Discussions with recyclers about joining OCS is ongoing at the European level. Borealis’ approach with its recycling sites is to await the European decision. Other key activities in 2022 included participation in a public consultation in the EU, as well as the creation of auditor guidance documents, training packages and qualification requirements, and the certification framework. The European Commission is also addressing unintentional releases of microplastics. The current focus of the planned regulatory instruments is on tyres, synthetic textiles and pellets. The primary impact of this regulatory measure on pellets will be the cost and administrative requirements for labelling, reporting and certification.
Borealis’ commitment to Zero Pellet Loss encompasses
The Group’s priorities for 2023 are in line with those of previous years, with a focus on enhancing valorisation of side streams and researching industrial symbiosis. The purpose is to minimise the production of waste, consume fewer resources and better handle the end-of-life of Borealis’ products. As in 2022, Borealis will continue its preparations to be compliant with the WGC BREF, as discussed under Activities 2022 above. A major focus area will be to continue the roll-out of the water management plans in all locations, as well as to finalise the work on the OCS certification standard and achieve full certification of all Borealis sites.
1) Environmental data might be subject to minor adjustments due to ongoing audits and missing third-party data at the time this report was finalised. // 2) Minor adaptations occurred due to the annual ETS audit. // 3) Severe upsets led to significant emergency flaring during shutdowns; in addition, there was a lack of recycling capacity. // 4) The main reason for the increase is the integration of the plastics recycling company mtm plastics GmbH and mtm compact GmbH into the monthly group reporting.
Definitions
EU Emission Trading Scheme (ETS) CO2 emissions: All greenhouse gas emissions (GHG) as per the European ETS expressed in CO2 equivalents (since 2009 this indicator has replaced the reporting of direct carbon dioxide emissions).
Nitrous Oxide (N2O) emissions: Emissions of N2O (also known as laughing gas) are generated by the production of nitric acid in the fertilizer plants. N2O is a GHG with a global warming potential (GWP) 310 times higher than CO2.
Flaring losses: All streams sent to the flare, except streams that assure a constant flame (e.g. fuel gases to pilot burners, fuel gas purges to flare lines for safety reasons, steam, nitrogen).
Volatile Organic Compound (VOC) emissions: Emission of all organic compounds (from C1 to Cn) with a vapour pressure of 0.01 kilopascal (kPa) or more at either room temperature or at actual temperature when processed. The quantification is based on measurements and estimates. Total volatile organic carbon, expressed as C, includes methane.
Nitrogen Oxide (NOx) emissions: Emissions of all nitrogen oxides from all relevant sources, including flares. The emissions are quantified as NOx. When NOx measurements are not carried out, emission factors correlated to the fuel type and heating value are used.
Dust: Emission of dust from the production of fertilizers.
NH3 (Ammonia): Emissions of NH3 from fertilizer plants, loading stations and water treatment of fertilizer locations.
Energy consumption: Consumption of all energy vectors (i.e. fuels, electricity and steam). Electricity and steam are converted into primary energy with standard conversion factors of 40% (electricity) and 90% (steam).
Water consumption: Total amount of fresh water withdrawn from surface or groundwater sources for any type of usage (e.g. cooling, steam generation, cleaning, sanitation).
Waste generation: Generation of all waste at company locations during normal operation as well as during special projects. Any substance or object that is to be discarded is included in the definition of waste. Exceptions are atmospheric emissions, liquid effluents and by products with commercial value.
