LyondellBasell Industries N : 2024 Annual Report 2024 Sustainability Report
LYB
Sustainability Report 2024
Vision tovalue
LYB - LyondellBasell
Introduction
Our sustainability approach
Ending plastic waste
Taking climate action
Supporting a
Sustainability Report 2024
thriving society
Vision to value
At LYB, we have set out a bold vision and
are leading the charge to meet demand for circular and low-carbon solutions. To do this we're transforming our business, creating
new models, forming partnerships and transitioning from non-core operations.
We set out this vision with the firm conviction that it will generate lasting value for our stakeholders -
delivering economic value for our shareholders while contributing to key environmental and societal challenges.
Read our report to find out how we're moving forward from vision to value.
Governance
Additional disclosures
1
LYB - LyondellBasell
Introduction
Sustainability Report 2024
Our sustainability approach
Ending plastic waste
Taking climate action
Supporting a
Governance
Additional
2
thriving society
disclosures
About this report
This Sustainability Report covers the period from January 1 to December 31, 2024, and includes sustainability performance information related to LyondellBasell Industries N.V.
We include consolidated data from the operations over which we, or one of our subsidiaries, have operational control. Unless otherwise indicated, the "company," "we," "our," "us," "LYB" and "LyondellBasell" are used in this report to refer to the businesses of LyondellBasell Industries N.V. and its subsidiaries within the operational control boundary. The narrative may include information related to our non-operated joint ventures, and activities that occurred during 2025 prior to publishing. Financial data includes joint ventures to the extent appropriate under Generally Accepted Accounting Principles in the U.S. (U.S. GAAP). Consolidated Financial Statements are prepared from the books and records of LYB. This report intends to address those stakeholders interested in our overall sustainability performance.
The Health, Safety, Environmental & Sustainability Committee of our Board of Directors reviews our Sustainability Report annually.
We have considered the following sustainability reporting standards and frameworks in our disclosures. See page 121 for more detail.
Report boundaries
The environmental, social, and governance (ESG) data in this report relate to operations at our majority- owned or operated manufacturing sites, pipelines, research or technical centers and large offices
for 2024, unless stated otherwise. Assets that are acquired or divested will be accounted for in our base year greenhouse gas (GHG) emissions in accordance with the Greenhouse Gas Protocol. The narrative may include our non-operated joint ventures. Reporting against our recycled and renewable-based polymer goal includes: (i) joint venture production marketed by LYB plus our pro rata share of the remaining production produced and marketed by the joint venture, and (ii) production via third-party tolling arrangements.
Subsidiaries are defined as those companies over which we, either directly or indirectly, have control through a majority of the voting rights or the right to exercise control or to obtain the majority of the benefits and be exposed to the majority of the risks. Subsidiaries are consolidated from the date on which control is obtained until the date that such control ceases. All intercompany transactions and balances have been eliminated in consolidation.
Contact information: [email protected]
Forward-looking statements
The statements in this report relating to matters that are not historical facts are forward-looking statements. These forward- looking statements are based upon assumptions of management of LYB, which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. When used in this report, the words "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Actual results could differ materially based on factors including, but not limited to, market conditions, the business cyclicality of the chemical, polymers and refining industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; our ability to successfully implement initiatives identified pursuant to our Value Enhancement Program and generate anticipated earnings; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/ demand balances for our and our joint ventures' products, and the related effects of industry production capacities and operating rates; our ability to manage costs; future financial and operating results; benefits and synergies of any proposed transactions; receipt of required regulatory approvals and the satisfaction of closing conditions for our proposed transactions; final investment decision and the construction and operation of any proposed facilities described; our ability to align our assets and expand
our core; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; our ability to meet our sustainability goals, including the ability to operate safely, increase production of recycled and renewable- based polymers to meet our targets and forecasts, and reduce our emissions and achieve net zero emissions by the time
set in our goals; our ability to procure energy from renewable sources; our ability to build a profitable Circular and Low Carbon Solutions business; the continued operation of and successful shutdown and closure of the Houston Refinery, including within
the expected time frame; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and to repay our debt. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the Risk Factors section of our Form 10-K for the year ended December 31, 2024, which can be found at www.lyb.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov. There is no assurance that any of the actions, events, or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions
of management of LYB at the time the statements are made. LYB does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law. This report contains time-sensitive information that is accurate only as of the date hereof. Information contained in this release is unaudited and
is subject to change. We undertake no obligation to update the information presented herein, except as required by law. Our reported emissions and expected reductions are based on a combination of measured and estimated data and are based on industry standards and best practices, including the Greenhouse Gas Protocol and guidance from the American Petroleum Institute. Emissions reported are estimates only, and data is subject to change as methods, data quality, and technology improvements occur. Our goals to reduce emissions are good-faith efforts based on current relevant data and methodology, which could be changed or refined as we evolve our approach to identifying, measuring, and addressing emissions.
LYB - LyondellBasell
Introduction
Sustainability Report 2024
Our sustainability approach
Ending plastic waste
Taking climate action
Supporting a
Governance
Additional
3
thriving society
disclosures
Contents
Introduction
Vision to value
1
About this report
2
A message from our Chief Executive Officer
4
Our sustainability performance
6
About LyondellBasell
7
Our operating context
11
Our sustainability approach
A message from our Chief Sustainability Officer
14
Turning our vision into value
16
Addressing global challenges
17
Making progress toward our goals
18
Ending plastic waste
Why it matters
20
Producing and marketing recycled and
22
renewable-based polymers
Preventing plastic pellet loss
28
Taking climate action
Why it matters
30
Reducing our operational emissions
32
Tackling emissions in our value chain
41
Climate change risk management
46
Environmental management
48
Emissions to air, water and land
51
Water use and availability
54
Waste
55
Biodiversity and ecosystem services
56
Supporting a thriving society
Why it matters
67
Safety
68
Health and safety
69
Product safety and stewardship
76
People and culture
80
Workforce management
81
We champion people
88
Social impact
93
Community engagement and Advancing Good
94
Human rights
97
Sustainable procurement
99
Governance
Corporate governance
105
Ethics and integrity
108
Stakeholder engagement
112
Materiality
115
Public policy
116
Tax
118
Cybersecurity
119
Customer privacy
120
Additional disclosures
Data and assurance
122
Management assertion
123
Reconciliation for non-GAAP measures
132
Global Reporting Initiative (GRI) Index
135
GRI supplementary information
141
SASB Index
147
UN Global Compact
149
Glossary
150
Signing up for a more sustainable future: Reflections on the UN Global Plastics Treaty 57
Sustainability as opportunity
60
Transformation from the ground up
63
LYB - LyondellBasell
Sustainability Report 2024
Introduction
Our sustainability approach
Ending plastic waste
Taking climate action
Supporting a thriving society
Governance
Additional disclosures
4
"To move from vision
to value, we must collaborate with all our
stakeholders to bring the best solutions to life."
Peter Vanacker,
Chief Executive Officer, LYB
Sustainability, at heart, is about reimagining the future. It's about looking at the status quo and envisioning how we can do better. It's about reinventing and revitalizing old ways of working. It's about creating that vision and translating it into genuine, tangible change.
At LYB, we believe value is created by being at the vanguard of that change. Through innovation and strategic execution, we are securing an early-mover advantage as a leader in the circular and low-carbon solutions market, driving sustainable growth while continuing to deliver from our core business, and actively addressing critical global issues: ending plastic waste, taking climate action, and supporting a thriving society.
LYB - LyondellBasell
Introduction
Our sustainability approach
Ending plastic waste
Sustainability Report 2024
A message from our Chief Executive Officer continued
Taking climate action
Supporting a thriving society
Governance
Additional disclosures
5
Sustainability is central to our strategy
Our corporate strategy defines a roadmap for business transformation, ensuring we continue to deliver long-term value to our stakeholders. Sustainability is integral to this transformation. It is embedded deeply within the three pillars of our strategy, namely in how we:
These strategic pillars are designed to reinforce each other, creating a powerful engine for sustained success.
Investing in our Circular and Low Carbon Solutions (CLCS) business
We are already seeing encouraging results from our work to build a profitable CLCS business. With a full portfolio of high-performance solutions, technical and commercial expertise, and an asset base offering global scale and continuous innovation, we are rapidly becoming the partner of choice for brand owners. In 2024, we increased our recycled and renewable-based polymer volumes by 65% to more than 200,000 metric tons of polymers based on mechanical recycling, chemical recycling, and renewable feedstocks1. This means we are making good progress toward our 2030 goals of producing and marketing at least 2 million metric tons of recycled and renewable-based polymers a year and capturing more than $1 billion of CLCS incremental EBITDA2.
A personal highlight for me this year was laying the foundation stone of our first commercial-scale chemical recycling unit, MoReTec-1, in Cologne, Germany. This signifies our commitment to advancing the circularity of plastic materials on an industrial scale. This facility, set to begin operations in 2026,
is designed to convert hard-to-recycle plastic waste from the equivalent of approximately 1.2 million German citizens each year into valuable raw materials for new offerings. Additionally, we are studying the possibility for a second facility in Houston, U.S., with double the capacity of MoReTec-1.
Unlocking transformation from within
Transforming our business is possible because of the innovation and imagination of the people within LYB. We have already made big strides in transforming our culture through initiatives like the Value Enhancement Program (VEP), which empowers employees to pursue opportunities for continuous value creation. Since the inception of the VEP program, projects completed through this effort have unlocked more than $800M in recurring annual EBITDA3. In 2024, as a result of VEP and other projects, we reduced scope 1 and 2 carbon emissions by 200,000 metric tons, the equivalent of taking approximately 43,400 gasoline powered cars4 off the road a year.
The safety of our employees and contractors is a top priority and has always been a cornerstone of our culture. In 2024, we achieved an industry-leading total recordable incident rate (TRIR) of 0.127, marking our second-best year ever for TRIR. We also celebrated six sites with 10-plus years of no recordable injuries, and our APS segment had record-breaking safety performance, reducing incident rates by 39%, compared to 2023.
The need for collaboration
Transformation doesn't happen in a vacuum. To move from vision to value, we must collaborate with all our stakeholders to bring the best solutions to life. We will continue to engage in open and trustful dialogue across the value chain, positioning our company as a leader in translating the vision for a sustainable, circular economy into tangible change.
To close, I just want to say how much of a privilege it is to lead a team so committed to championing people, striving for excellence and shaping the future. I look forward to our coming successes, and creating lasting value for our shareholders and employees, customers and suppliers.
Peter Vanacker
Chief Executive Officer
We increased our recycled and renewable- based polymer volumes1 by
65%
in 2024
LYB - LyondellBasell
Introduction
Sustainability Report 2024
Our sustainability approach
Ending plastic waste
Taking climate action
Supporting a
Governance
Additional
6
thriving society
disclosures
At a glance sustainability performance
0.127
70
Total Recordable Incident
Manufacturing
Rate (TRIR), representing
sites achieved
industry-leading
GoalZERO1
performance, marking our
second-best year for TRIR
100%
72
allocation of Green Bond
Manufacturing
funds to eligible projects
sites were
injury-free
Laid the foundation for our first commercial-scale chemical recycling plant using our
MoReTec technology
Produced and marketed more than
200,000
metric tons of recycled and renewable-based polymers2
Volumes of our recycled and renewable-based polymers have increased since 2023
65%
1,820 MWof renewable energy capacity secured under power purchase agreements, which will enable us to meet our goal to procure at least 50% of our electricity from renewable sources by 20303
Safely completed the shutdown of refining operations at our Houston Refinery in the first quarter of 2025, marking our exit from the refining business, which will reduce our annual scope 3 emissions by
~40MMt CO2e
At a glance financial performance
Net income
Net income
$1.4B
excluding
identified items4
$2.1B
EBITDA
$3.5B
EBITDA
excluding
identified items4
$4.3B
Diluted EPS
$4.15
Diluted EPS
excluding
identified items4
$6.40
LYB - LyondellBasell
Introduction
Our sustainability approach
Ending plastic waste
Taking climate action
Supporting a
Sustainability Report 2024
thriving society
Governance
Additional
7
disclosures
About LyondellBasell who we are
LYB is a leader in the global chemical industry, guided by our purpose to create solutions for everyday sustainable living.
As one of the world's largest polymers producers and a leader in polyolefin technologies, we develop, manufacture, and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. Through advanced technology and focused investments, we are working to enable a circular and low-carbon economy.
Our strategy
Our values
Our purpose
Creating solutions for everyday sustainable living
Our competencies
Our GoalZERO mindset enables our strategy
GoalZERO is our commitment to operating safely with zero injuries and zero process safety, product safety, environmental, and security incidents.
Our commitments
LYB - LyondellBasell
Introduction
Our sustainability approach
Ending plastic waste
Taking climate action
Supporting a
Sustainability Report 2024
thriving society
Governance
Additional
8
disclosures
About LyondellBasell what we do
We participate globally across the petrochemical value chain.
Our chemicals businesses primarily consist of large processing plants that convert liquid and gaseous hydrocarbon feedstocks into plastic resins and other chemical building blocks. These products serve as the foundation for various chemicals and plastics, used in both high-volume and specialized applications. Our customers rely on them to manufacture everyday items, including food packaging, home furnishings, automotive components, paints, and coatings. Additionally, we develop and license chemical and polyolefin process technologies and produce polyolefin catalysts. We manage our operations through six operating segments. In 2022, we formed our Circular and Low Carbon Solutions business within our O&P- Americas and O&P-EAI segments. This page and the next provide an overview of our reportable segments.
For more information please visit www.lyb.com
Olefins and Polyolefins (O&P) - Americas1
Our O&P-Americas segment produces and markets olefins and co-products, polyethylene (PE), and polypropylene (PP).
Selected products:
Major markets:
1. Our CLCS business is a part of our O&P-Americas and O&P EAI segments.
O&P - Europe, Asia, International (EAI)1
Our O&P-EAI segment produces and markets olefins and co-products, PE, and PP.
Selected products:
Major markets:
Intermediates and
Derivatives (I&D)
Our I&D segment produces and markets propylene oxide (PO) and its derivatives; oxyfuels and related products; and intermediate chemicals, such as styrene monomer, and acetyls.
Selected products:
Major markets:
LYB - LyondellBasell
Sustainability Report 2024
Introduction
Our sustainability approach
Ending plastic waste
Taking climate action
Supporting a thriving society
Governance
Additional disclosures
9
Advanced Polymer Solutions (APS)
Our APS segment produces and markets compounding and solutions, such as PP compounds, engineered plastics, masterbatches, engineered composites, colors, and powders.
Selected products:
- Compounding and solutions
Major markets:
Refining1
Our Refining segment refines heavy, high-sulfur crude oil and other crude oils of varied types and sources available on the U.S. Gulf Coast into refined products, including gasoline and distillates.
Selected products:
Major markets:
1. In the first quarter of 2025, we ended our crude oil refining operations at our Houston Refinery and have exited the refining business.
Technology
Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
Selected products:
Major markets:
- Polyolefin and chemical manufacturing
We are proud to deliver
solutions for a better tomorrow through our high-quality chemicals, polymers, fuels and technologies.
Notable changes to our business in 2024
In February 2024, we acquired mechanical recycling assets including rigid plastics recycling processing lines in California. In May 2024, we divested our Ethylene Oxide and Derivatives business, acquired a 35% stake in the National Petrochemical Industrial Company (NATPET) joint venture, and announced a strategic assessment of certain European assets in the Olefins & Polyolefins and Intermediates & Derivatives business units. In October 2024, we acquired APK AG, a solution-based plastics recycler in Merseburg, Germany.
LYB Green Bond allocation update
We issued our inaugural $500 million Green Bond in May 2023. As of December 31, 2024, we have fully allocated the approximately $495 million net proceeds to eligible green projects in the areas of circular economy, renewable energy, pollution prevention and control, and energy efficiency. Projects that received allocation are identified in this report with the Green Bond icon. Our final Green Bond allocation and impact report will be published in the second quarter of 2025 on our website at www.lyb.com, where our Green Financing Framework and S&P Global's second-party opinion are also available. We encourage you to read our impact and allocation report to learn more about the projects we are pursuing and the impact we have made.
Disclaimer
LyondellBasell Industries NV published this content on April 15, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 15, 2025 at 13:14 UTC.