Focus on sustainability: Tackling scope 3 emissions in the coil coatings industry

In June, Beckers Group announced its commitment to the SBTi, aiming to achieve net-zero emissions by 2050. With more than 98% of Beckers’ emissions resulting from customers and suppliers (scope 3), collaboration throughout the value chain is essential to achieve these ambitious climate targets

Companies are increasingly aligning their strategies with the objectives of the Paris Agreement – to help accelerate the transition to a low-carbon and fossil free economy, and avoid the worst effects of climate change. Committing to the Science Based Targets initiative (SBTi) provides a clear, science-based framework for businesses to align their emissions reduction goals with global climate objectives.

Challenges in the coil coatings industry

While scope 1 and scope 2 emissions are the greenhouse gas emissions directly produced or indirectly consumed by a company’s operations, scope 3 emissions encompass the broader upstream and downstream value chain that it does not have direct control or influence over. For coil coatings companies, the vast majority of their total emissions are embedded in the materials used for the coatings and in their client’s processes where the coatings are applied to metal. Scope 3 emission reduction is therefore a key challenge for companies due to a lack of direct influence, visibility and access to data.

Despite scope 3 emissions accounting for more than 98% of its climate footprint, Beckers is still committed to achieve net-zero emissions by 2050.

Beckers has been monitoring and communicating its emissions data since 2012, and in 2023, it launched its Climate Strategy 2.0, which aims to reduce its value chain carbon footprint. The strategy includes the company’s commitment to follow the Paris Agreement for scope 1 and 2 in the near term and net-zero emissions for all scopes in the long term.

They also reflect Beckers’ commitment to contribute to the 1.5°C scenario of the Paris Agreement, which requires reaching net-zero emissions by 2050.

Identifying scope 3 emission reduction levers

Raw materials and the processing of sold products downstream are the leading sources of scope 3 emissions for Beckers. Reducing emissions during coating application has been identified as a key lever to reduce its scope 3 emissions. The substitution of conventional coatings with ultraviolet (UV) and electron-beam (EB) curing technology for example, is considered to be the most significant gamechanger in terms of decarbonisation of the coil coating industry by the European Coil Coating Association (ECCA). The conversion of customers’ coil coating lines to UV/EB and renewable energy sources are key levers. But also for conventional heat cured coating systems, important progress is possible by for instance introducing lower-cure temperature products, using bio-solvents and reducing solvent emissions.

Suppliers and their upstream supply chain need to develop their processes and to use renewable energy at their production to reduce the carbon footprint of the products they supply. Key raw materials, such as resins and solvents, which can be replaced with renewable carbon solutions will also play an important role to de-fossilise. With new solutions and products, paint systems with high carbon footprint per square meter can be phased out.

Transport is another lever to reduce emissions by adopting multimodal transportation, using low-carbon, bio-based, and alternative-fuel vehicles, reducing air freight and increasing payload with reduced shipping frequency. Last but not least, using renewable raw materials with lower cradle-to-grave carbon footprints and reducing film application thickness can lower emissions both during application and at end-of-life.

To summarise: there is no silver bullet in making coatings renewable; progress needs to come through all these areas to create significant impact.

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Tackling emission reduction challenges head on

Beckers has a clear roadmap for reducing its scope 3 emissions, but also faces several challenges. A significant challenge is that the mass balance approach, which is crucial for the chemical industry to rapidly de-fossilise, is not accepted in the Environmental Product Declarations (EPDs) that are widely used in the downstream industry. Furthermore, it is currently not acknowledged by the GHG Protocol or the SBTi. The mass balance approach allocates a proportion of renewable or recycled materials to a specific product, even if they are physically mixed with conventional materials. This makes adopting more sustainable practices less capital intensive for companies, as well as helping to limit cost and price increases to downstream customers.

Another challenge is that end-of-life emissions need to be included in climate targets as the benefit of bio-based raw materials is not acknowledged in scope 3: category 1 emissions (from raw materials). This means that Beckers must account for the emissions that occur when the end products that its coatings are used on are disposed of or recycled.

Emission reduction is also highly dependent on the climate commitments of suppliers and customers. It is essential to work together, with customers looking beyond conventional solutions to adopt more sustainable coating application processes and suppliers providing fossil-free raw materials and packaging.

“We believe in the power of collaboration and innovation to drive change,” says Gavin Bown, CTO at Beckers. “Whilst we are committed to our own sustainability goals, we understand the importance of supporting our suppliers and customers in their efforts, as well as active contribution to industry initiatives like Renewable Carbon Initiative and the European Coil Coatings Association. Success in this endeavour requires collective action across the entire value chain.”

Leadership for a net-zero coil coating industry

“Despite the challenges, we are confident we can achieve our targets together with our value chain partners if we all work together in a collaborative way,” says Bown. “We are also looking forward to the release of the chemical sector-specific SBTi guidance, which is anticipated to provide directives on the mass-balance issue and other relevant topics for the industry. We hope that our example will inspire other companies in the sector and beyond to join the global movement and act for a low-carbon future.”

“For us there is no alternative to net zero. We see it as our responsibility, it’s the right thing to do and it is a way of futureproofing our business. In the long run, we believe it will save us money, make us more resilient against regulation and boost innovation,” concludes Nicklas Augustsson, Chief Sustainability Officer at Beckers Group.

About the SBTi and net zero

The SBTi is a collaborative effort between CDP (formerly known as the Carbon Disclosure Project), the UN Global Compact, the World Resources Institute, and the World Wide Fund for Nature. Its goal is to drive ambitious corporate climate action by encouraging companies to set science-based emissions reduction targets.

Achieving net-zero emissions means no net increase in carbon emissions: any GHG emissions produced are counterbalanced by an equivalent amount of GHG removals, either through natural processes like restoring forests or technological solutions like direct air capture and storage.