The Governance and Nominating Committee changed its name in 2020 to the Governance and Corporate Responsibility Committee, reflecting its active role in overseeing sustainability and ESG issues, and the importance of this area to our corporate strategy.
The world has changed in many ways since our last report, driven by the COVID-19 pandemic, heightened urgency about climate change, and the importance of diversity, equity, and inclusion. We conducted a formal update of our ESG materiality assessment to address these changes and ensure that our reporting is aligned with the most pressing sustainability issues.
Identifying and managing enterprise financial, operational, and climate change risks are an important part of our strategic planning process. We continue to work toward integration between our strategy development, enterprise risk management, and sustainability programs. This has allowed us to provide a more strategic view of our company’s risks and opportunities, and we believe it will lead to improved reporting and management of critical issues as opportunities rather than challenges.
Broadening our sustainability reporting frameworks
We strive to continually improve our sustainability reporting, ever since our first Carbon Disclosure Project submission in 2010. We took an important step forward in 2019, when we prepared our report in accordance with the GRI Core Standards. We continue to advance our reporting in this year’s edition by including the SASB and TCFD frameworks. We also added transparency in how we calculate and report our emissions in accordance with the Greenhouse Gas Protocol. Our stakeholders have expressed great interest in seeing our reporting expanded to a broader range of leading sustainability frameworks, and we will continue to advance in this area.
A new emissions-reduction baseline
Two years ago, we made a commitment to achieve net-zero Scope 1 and 2 emissions from our operations by 2050. Since then, many other companies, both in our sector and across the economy, have announced similar commitments. We continue to make progress on emissions reductions. We are resetting our carbon emissions reduction base year from 2012 to 2019 to account for corporate changes, new acquisitions, and divestitures in accordance with the Greenhouse Gas Protocol. By resetting our base year but maintaining the interim goal of a 50% reduction by 2030, we are challenging ourselves to accelerate our emissions reduction progress.
This year, we outline our strategy to achieve net-zero Scope 1 and 2 emissions by 2050. The net-zero roadmap illustrates key emissions reduction pathways and levers for achieving our climate goals.
Expanding Scope 3 emissions reporting
The assessment of our value-chain emissions is an integral part of our sustainability strategy. The calculation of Scope 3 emissions is one of the most complex and technically challenging topics in sustainability. While we have reported a portion of our Scope 3 emissions for several years, we continue to expand our reporting to include new categories of both upstream and downstream emissions that are the core to our business.
In this year’s report, we add detailed reporting of the capital goods, upstream transport and distribution, waste from operations, and a portion of sold products categories. We have outlined our plans for continued reporting expansion with an ultimate objective of setting a Scope 3 emissions reduction target in the future.
Sustainable supply chains
A truly sustainable and ethical company does not exist on its own. Supply chain resilience and innovation were critical to our performance through the year. Similarly, we recognize the importance of these relationships to help us advance the energy transition, reduce emissions, build ethical supply chains, and promote diversity, equity, and inclusion in the global business community. We continue to advance our sustainable supply chain framework, by working with our suppliers to support their sustainability performance.