(154e) ESG Economics Lead to Third Party Verification of Greenhouse Gas Emissions
AIChE Spring Meeting and Global Congress on Process Safety
2022
2022 Spring Meeting and 18th Global Congress on Process Safety Proceedings
Topical 4: The 34th Ethylene Producers Conference
Ethylene Plant General Environmental
Wednesday, April 13, 2022 - 10:30am to 10:55am
ESG – Environmental Social Governance – continues its increasing influence in the business world,
especially in manufacturing segments where sustainability issues have a direct correlation to the
financial health, risk, and value of the business. The environmental component of ESG is of
particular interest to ethylene producers because the traditional method of ethylene production –
thermal cracking of hydrocarbons – is an energy intense endothermic reaction whose needs have
historically been met by the combustion of petroleum-based fuel that result in greenhouse gas
(GHG) emissions to the environment. Mitigating this environmental impact is of utmost concern to
the ethylene producer to satisfy the demands of various stakeholders – investors, insurers,
customers, regulators and others. Mitigation can be in many forms but to be successful and have
merit the accuracy of emission estimations and reductions is critical. Following the principles of
financial accounting and reporting, standards for GHG quantification, verification and certification
are quickly evolving. This paper will focus on these developing standards and how they can be
applied to the ethylene producer that requires trusted data for important financial decisions.
especially in manufacturing segments where sustainability issues have a direct correlation to the
financial health, risk, and value of the business. The environmental component of ESG is of
particular interest to ethylene producers because the traditional method of ethylene production –
thermal cracking of hydrocarbons – is an energy intense endothermic reaction whose needs have
historically been met by the combustion of petroleum-based fuel that result in greenhouse gas
(GHG) emissions to the environment. Mitigating this environmental impact is of utmost concern to
the ethylene producer to satisfy the demands of various stakeholders – investors, insurers,
customers, regulators and others. Mitigation can be in many forms but to be successful and have
merit the accuracy of emission estimations and reductions is critical. Following the principles of
financial accounting and reporting, standards for GHG quantification, verification and certification
are quickly evolving. This paper will focus on these developing standards and how they can be
applied to the ethylene producer that requires trusted data for important financial decisions.