Formosa Petrochemical Corp is a publicly listed midstream oil and gas company headquartered in Taiwan, China. In 2020, it had USD 21.39 billion in revenue and a reported 5,338 employees*. Its primary business includes oil refining and selling petroleum products and olefins from naphtha cracking operations. Formosa has set long-term emissions reduction targets but does not report its emissions levels.
Formosa has demonstrated strong management of climate change issues by conducting a climate scenario analysis and identifying detailed climate-related risks and opportunities. The company’s climate scenario analysis is based on models included in the National Determined Contribution (NDC) of the Taiwanese government, and is set within the time frame 2030-2050.
Formosa has set long-term 2030 and 2050 emissions reduction targets for its scope 1 and 2 emissions, and has started to engage with suppliers to reduce emissions in the value chain. The company can strengthen its performance by disclosing its long-term financial plan for achieving its targets and publishing its long-term low-carbon transition plan.
Formosa is primarily in the business of refining crude oil. Its fuel mix remained unchanged between 2014 to 2019, so there was no improvement to the company’s scope 1 and 2 emissions intensity during this period. The company needs to drive significant improvements to its fuel mix to achieve the 7% annual reduction required by its 1.5°C pathway between 2019 and 2024. Furthermore, the company needs to disclose more information on CapEx spending plans for low-carbon or carbon removals technologies to demonstrate financial commitment to decarbonising its business.
Formosa has set itself long-term emissions reduction targets for its scope 1 and 2 emissions. However, the gap between these targets is far greater than 5 years. Setting intermediate targets at 5-year intervals can help the company drive near-term action towards its long-term emissions reduction targets. Formosa provides no transparency on its production volumes and emissions levels. The company needs to publish this data to help understand its performance against the targets and to add to its credibility.
Formosa receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. Formosa has conducted a climate scenario analysis and set 2030 and 2050 emissions reduction targets. However, it has not yet made any improvement in its scope 1 and 2 emissions intensity. The company’s scope 1, 2 and 3 emissions intensity increased. It is at an early stage of exploring low carbon products and technologies.
Formosa shows commitment towards emissions reduction and a low-carbon transition. The company’s commitment is based on the National Determined Contributions (NDC) established by the Taiwanese government to reduce emissions in 2030 by 20% compared to 2005.
Formosa carried out a climate scenario analysis using models RCP 2.6, RCP 4.5, RCP 6.0 and RCP 8.5 from the National Determined Contribution (NDC) established by the Taiwanese government, set within the timeframe 2030-2050.
Formosa has set itself long-term emissions reduction targets for its scope 1 and 2 emissions. However, the interval between these targets is greater than 5 years. Its fuel mix remained unchanged but the share of refined oil products in its sales increased almost 20% between 2014 and 2019. It has started to research solar power and carbon capture and storage projects.
Formosa has set a target to reduce its scope 1 and 2 emissions by 20% by 2030 compared to 2005. Formosa refers to the greenhouse gas (GHG) Protocol’s guidance for scope 3 emissions to invite its first-tier suppliers, which account for 2% of its total suppliers and 80% of its procurement spend, to engage in emissions reduction. The company plans to collect annual data verified by a third party to understand the GHG emissions in its value chain.