Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Solvay is strategically engaged with EU climate change policy, taking a mix of supportive and unsupportive positions. Solvay expressed some top-line support for an energy transition, but advocated to weaken the EU Emissions Trading System (ETS).
Top-line Messaging on Climate Policy: Solvay has communicated positive top-line support for climate action, but appeared to take ambiguous positions on the need for climate regulations in 2022-24. Solvay supported seemed to support the European Green Deal and building a circular economy to achieve climate neutrality in the EU in its 2023 Annual Report, published in April 2024. The company also stated broad support for the goals of the Paris Agreement in its 2023 CDP Disclosure. However, Solvay repeatedly advocated for caution around climate change policy, stressing the risk of deindustrialization, industrial competitiveness loss and carbon leakage, for example in its 2023 CDP response and in the Antwerp Declaration, published in February 2024.
Engagement with Climate-Related Regulations: Solvay appears to take a mix of supportive and unsupportive positions on EU climate-related regulations. Solvay appeared to advocate for weaker free allocation rules reform under the EU Emission Trading System in December 2023 comments to EU policymakers. The company supported the recycling and recovery of critical raw materials (CRMs) from relevant waste streams under the EU Critical Raw Materials Act in a November 2022 public consultation response.
Positioning on Energy Transition: Solvay has communicated top-line support for the energy transition, but appeared to support specific policies with some exceptions. The company stated broad support for measures to decarbonize industry, including the EU Chemical Industry Transition Pathway in a February 2023 social media post, the Inflation Reduction Act and the EU Green Deal Industrial Plan in an October 2023 joint letter. Solvay signed the Antwerp Declaration in February 2024, which advocated for more funding for “'clean' technology” and called for a scope extension of the EU Net Zero Industry Act with no further details provided on what should be included. The company appeared to not support a robust definition of low carbon hydrogen through EU Hydrogen and Gas Decarbonization Package Delegated Act, calling for a definition that does not take into account full lifecycle emissions in October 2024 feedback to EU policymakers.
Industry Association Governance: Solvay has disclosed a list of its memberships to industry associations in its 2023 Annual report, published April 2024. However, the company has not disclosed on the nature of Solvay’s memberships or the climate policy positions of its industry associations. Solvay retains membership to the German Chemical Industry Association (VCI) and the International Federation of Industrial Energy Consumers (IFIEC), both of which engage broadly negatively on EU-based climate policies, including the EU ETS and Carbon Border Adjustment Mechanism (CBAM).