Mitigating Climate Change
关�气候变化 — Our commitment to reducing greenhouse gas emissions and transitioning to a low-carbon future in chemical manufacturing.
Our Climate Commitment
Shandong Do Sender Chemicals is committed to aligning our climate strategy with the goals of the Paris Agreement. We recognize the urgency of limiting global temperature rise to well below 2°C and actively pursue pathways toward net-zero emissions across our operations and value chain.
Paris Agreement Alignment
Our emission reduction targets are designed in line with the Paris Agreement's goal to limit global warming to 1.5°C above pre-industrial levels, integrating climate science into our business strategy.
Near-Term Targets
Reduce absolute Scope 1 and 2 GHG emissions by 30% by 2030 compared to our 2019 baseline year, while measuring and progressively addressing Scope 3 emissions.
Net-Zero Ambition
We are developing a comprehensive roadmap toward achieving net-zero GHG emissions by 2050, investing in clean technologies, process innovation, and renewable energy.
GHG Emissions Performance
We measure and report our greenhouse gas emissions following the GHG Protocol Corporate Standard, providing transparent disclosure across all relevant scopes.
Scope 1 – Direct Emissions
Emissions from sources owned or controlled by Do Sender, including fuel combustion at our Zibo production facility and company-owned vehicles. Key sources: natural gas boilers, process heating, and on-site power generation equipment.
Scope 2 – Indirect Energy
Emissions from purchased electricity, steam, and cooling consumed by our operations. Our Zibo facility's electricity consumption represents the largest component of Scope 2 emissions, with the Shandong grid mix as the emission factor baseline.
Scope 3 – Value Chain
Emissions across our value chain including purchased raw materials (Category 1), upstream transportation (Category 4), waste disposal (Category 5), and business travel (Category 6). We are building data systems for comprehensive Scope 3 accounting.
Emissions Data Table (tCO₂e)
| Category | 2019 Baseline | Current (2025) | 2030 Target | Reduction % |
|---|---|---|---|---|
| Scope 1 – Direct | 8,500 | 7,200 | 5,950 | -30% |
| Scope 2 – Indirect (Location-based) | 12,300 | 10,800 | 8,610 | -30% |
| Scope 2 – Indirect (Market-based) | 12,300 | 9,600 | 6,150 | -50% |
| Total Scope 1 + 2 (Location-based) | 20,800 | 18,000 | 14,560 | -30% |
| Scope 3 – Cat.1 Purchased Goods | 45,000* | 42,000* | 36,000* | -20% |
| Scope 3 – Cat.4 Upstream Transport | 8,200* | 7,500* | 6,150* | -25% |
| Emission Intensity (Scope 1+2 / ton product) | 1.78 | 1.52 | 1.25 | -30% |
* Scope 3 figures are estimated based on spend-based methodology. Improving data quality through supplier-specific emission factors is ongoing. All targets are vs. 2019 baseline.
Key Climate Initiatives
We are implementing targeted initiatives across our operations to reduce energy consumption, improve efficiency, and transition to cleaner energy sources.
⚙️ Energy Efficiency at Zibo Facility
Our Zibo manufacturing site has undertaken a comprehensive energy efficiency program targeting the most energy-intensive processes in organic peroxide production:
- Heat Recovery Systems — Installation of waste heat recovery units capturing thermal energy from exothermic reactions and distillation columns. Recovered heat is redirected to preheat raw materials, reducing natural gas consumption by an estimated 15%.
- Optimized Distillation — Implementation of advanced process control (APC) systems on our distillation columns to minimize energy use while maintaining product purity. Multi-stage distillation optimization has reduced steam demand by approximately 12%.
- Variable Frequency Drives (VFDs) — Retrofitting of pumps and compressors with VFDs to match motor speed with actual process demand. Over 25 major pumps and compressors have been upgraded, achieving an average 20% reduction in electricity consumption for these systems.
☀️ Renewable Energy Procurement
We are progressively shifting our energy mix toward renewable sources through multiple pathways:
- Solar Panel Installation — A phased rooftop and ground-mounted solar PV project at the Zibo site. Phase 1 (2.5 MWp) has been completed, generating approximately 3,000 MWh annually. Phase 2 (additional 3.5 MWp) is under planning, targeting completion by 2027.
- Green Power Purchase Agreements (PPAs) — We have signed renewable energy procurement contracts covering 40% of our grid electricity consumption, with a target to reach 60% by 2028 and 100% by 2035.
🔬 Process Optimization for Reduced Energy Intensity
Our R&D and engineering teams continuously work to reduce the energy intensity per ton of organic peroxide produced:
- Catalyst optimization to reduce reaction temperatures and times
- Reactor design improvements for better heat transfer efficiency
- Batch process scheduling optimization to minimize idle energy consumption
- Real-time energy monitoring with digital dashboards for operator feedback
- Target: Reduce energy intensity from 1.78 tCO₂e/ton product (2019) to 1.25 tCO₂e/ton by 2030
Carbon Footprint of Perodox® Products
We are developing product-level carbon footprint (PCF) assessments for our Perodox® organic peroxide product portfolio, enabling our customers to make informed decisions and accurately account for their Scope 3 Category 1 emissions.
Our methodology follows the ISO 14067:2018 standard for carbon footprint of products and the Together for Sustainability (TfS) PCF Guideline. We apply a cradle-to-gate system boundary, covering raw material extraction, inbound transportation, and manufacturing processes at the Zibo facility.
Cradle-to-Gate Scope
Covers raw material production and transportation to our facility plus manufacturing emissions. Enables accurate Scope 3 Category 1 accounting for our customers.
Verified Methodology
Aligned with ISO 14067 and TfS PCF Guideline, ensuring consistency, comparability, and credibility across the chemical industry value chain.
Data Availability
PCF data sheets are available upon request for key Perodox® grades. We are working toward publication of PCF values for our entire standard product range.
Climate Risk Assessment (TCFD-Aligned)
We conduct climate risk assessments aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), evaluating both physical and transition risks to our business.
Physical Risks
Acute risks: Increased frequency of extreme weather events (flooding, typhoons) that could disrupt our Zibo operations or supply chain logistics.
Chronic risks: Rising ambient temperatures affecting cooling efficiency in chemical processes, water scarcity impacting process water availability, and sea-level rise affecting export logistics through Qingdao port.
Mitigation: Enhanced flood protection infrastructure, business continuity plans, diversified logistics routes, and water conservation investments.
Transition Risks
Policy & Legal: Evolving carbon pricing mechanisms in China and export markets, stricter emission standards for chemical manufacturing, and mandatory climate disclosure regulations.
Technology: Need for capital investment in low-carbon technologies and potential stranded assets from carbon-intensive equipment.
Market: Shifting customer preferences toward low-carbon products and potential carbon border adjustment mechanisms (CBAM) in the EU market.
Mitigation: Proactive emission reduction investments, technology roadmap development, and engagement with customers and policymakers.
CDP Disclosure and Score
We participate in the CDP (formerly Carbon Disclosure Project) climate change program, demonstrating our commitment to environmental transparency and accountability to investors, customers, and stakeholders.
Our CDP disclosure covers our full climate governance structure, risk management processes, emission reduction strategy, and performance metrics. We are committed to continuous improvement across all CDP scoring categories and aim to achieve an A- score by 2030.