CO2 reduction targets at Sika

In total, 98% of Sika’s emissions fall within Scope 3, with the lion’s share attributable to purchased raw materials. Calculating those emissions was the first goal, and proved to be a challenging task, because the supply chain comprises 18,000 companies and is highly complex. Sika completed its calculations in November 2022.

Since Sika did not actually have any targets for reducing CO2 emissions in place, the second goal was to define them. Sika has now committed to net zero by 2050. That target, along with the interim targets agreed during the dialogue, are being validated by the Science Based Targets initiative (SBTi). This is an important sign for investors that the climate plan is robust. 

Sika has created a financial incentive by linking variable executive compensation to actual reductions in emissions, thus achieving the third of the four goals.

Many of the raw materials that Sika processes are extremely CO2-intensive and based on crude oil. The company is therefore looking for alternatives that would, for example, allow it to use chemicals derived from biomass or recycled raw materials. A third element is the recycling of valuable products at the end of their lifecycle. This transformation process has only just begun, and will require close collaboration with suppliers and customers. For that reason, Sika is not yet able to commit to a timetable, and as a result, this fourth goal is still a work in progress. The company has recognised the topic of sustainability as an opportunity and a potential for growth. In order to drive innovation, it is evaluating its existing product range according to twelve sustainability aspects. All new product launches must make a positive contribution by, for instance, generating lower CO2 emissions than a comparable product. SVVK-ASIR and its members welcome this development, which underpins Sika’s ambition to be a key partner for its customers on the road to net zero.