For goals and planned key actions for 2024 and beyond, please refer to the full Combined Annual Report 2023.
Borealis aims to play a pivotal role in transforming its business and the industry from a linear economic model to a circular and climate-neutral one, in line with the Group Strategy 2030. Well-designed legislation and regulation can help to accelerate this transformation and provide solutions to challenges such as resource efficiency, climate change, increased product safety and plastic waste management.
To fulfil its purpose of “Re-inventing essentials for sustainable living”, Borealis needs to understand the policy and regulatory environment at national, international and EU levels, as well as the expectations and concerns of key stakeholders in the value chain and civil society.
Borealis aims to create a constructive dialogue with all stakeholders about its activities and performance, and to contribute its knowledge and insight to regulation and legislation that can support businesses in their transformation to more circular and more sustainable models. This helps policymakers to create more impactful policies, which in turn will help the industry to support the overall EU strategy for a competitive and more sustainable Europe.
Borealis directly engages with relevant stakeholders including policymakers, value chain actors, academics and non-governmental organizations. The Group also engages through collaborative projects and via memberships of organizations and industry associations.
Borealis’ Public Affairs function is part of the Sustainability & Public Affairs Department, reporting directly to the CEO. The Head of Public Affairs’ responsibilities include:
Borealis develops its positions on public affairs issues by consulting the wide range of expertise available across the business, from operations and sales to product stewardship, innovation and health, safety and the environment. This is primarily done via the PACTs, which also ensure regular follow-up on issues relevant to relations with governments, authorities, regulators and NGOs. PACT Circular Economy & Climate meets monthly with colleagues who have expertise in priority topics, such as the circular economy, climate, energy, sustainable finance and sustainable products. PACT Locations holds bi-monthly meetings with the leaders of each location, to discuss issues arising from the Group’s operations or national stakeholder engagement.
Sustainability & Public Affairs regularly interacts with the Borealis Executive Board members, sharing results from its stakeholder engagement and reporting concerns. In addition, Executive Board members directly participate in dialogue with the Group’s key stakeholders, or are themselves Board members of industry associations, such as Plastics Europe.
Borealis’ significant memberships include the following organizations and associations (in alphabetical order). A significant membership is one where Borealis either has a seat on the board or is a very active participant.
Borealis also participates in Cefic (European Chemical Industry Council) and TfS (Together for Sustainability), as part of the OMV Group membership.
In line with its Ethics Policy, Borealis strictly follows political corporate governance practices in public affairs and does not join political parties or make financial contributions to them or their candidates.
During 2023, Borealis continued to work with its industry associations and value chain partners on revising legislation, with a focus on:
Borealis was particularly active in discussions on the proposal to revise European legislation on packaging, supporting measures to ensure circularity of all plastic packaging through mandatory design for recycling, reuse targets, recycling at scale, minimum recycled content in all packaging formats, and the development of well-designed business models to encourage uptake of reusable packaging.
During 2023, Borealis remained active in the Ellen MacArthur Foundation’s Global Commitment and the Business Coalition for a Global Plastics Treaty. The Coalition is convened by the Ellen MacArthur Foundation and the WWF and advocates for global action to stop pollution, by creating a circular economy for plastics. Borealis took part in webinars, conferences and the second international negotiating committee meeting, to support development of an effective, legally binding global instrument in line with the Coalition’s vision statement.
In 2021, the European Commission proposed a sweeping set of legislative reviews and new regulations known as the Fit for 55 package. During 2023, Borealis monitored and supported the final negotiations of these policies via its associations, in particular Plastics Europe and Cefic.
Borealis also engaged to support the implementation of the Single-Use Plastic Directive. In particular, the Group worked with all stakeholders to build greater consensus on how to measure recycled plastic from chemical recycling, through credible and transparent use of third-party certified mass balance allocation. Borealis was one of 33 organizations that co-signed a letter outlining the importance of rapid adoption of rules to measure chemically recycled plastics in products. The Group also helped to bring the debate to life through site visits to recycling facilities.
In 2023, Borealis continued to play an active role in discussions on how to develop regulatory frameworks that ensure products are sustainable by design and to work towards zero pollution. The Group contributed to these discussions through its associations.
Increasing numbers of substances are being scrutinized under EU REACH for their hazardous effects and risks related to their use. Some of these substances are critical to Borealis’ products or their production process. Any change in regulation will therefore have a substantial impact on the Group’s business with the value chain, potentially requiring significant investments and research and development efforts. Borealis therefore actively follows these developments, as well as social or customer concern regarding chemical substances, and applies its hazardous chemicals strategy to ensure it is well prepared. This includes engaging in discussions to inform policymakers, share expertise and ensure any measures follow a cost-benefit approach, so they do not create competitive disadvantages versus non-EU suppliers. In 2023, a proposal was put forward to restrict the use of per- and polyfluoroalkyl substances (PFAS) in the EU. Borealis supported the detailed analyses conducted by associations in this regard and will monitor the development of this restriction over the coming years.
Throughout 2023, Borealis continued to closely monitor the policy developments on the EU Taxonomy, in particular the relevant screening criteria for the circular economy and other environmental indicators. The Group also closely followed the development of the update of the EU Corporate Sustainability Reporting Directive and the related European Sustainability Reporting Standard, developed by the European Financial Reporting Advisory Group. Preparations are ongoing to comply with these updated reporting obligations, which will gradually come into force.
The Group is fully committed to zero pellet loss. It supports regulatory measures to prevent plastic leaking into the environment and engages to ensure that best practice in avoiding pellet loss is shared and encouraged at local, national, regional and international levels. Borealis participates in working groups at Cefic and Plastics Europe in developing an Operation Clean Sweep (OCS) reporting scheme, as well as a third-party audit and certification scheme, which it piloted in two of its plants in Belgium. By the end of 2023, the Antwerp and Kallo sites received the OCS certification, which was communicated externally in early 2024.
Borealis also follows and engages in regulatory developments related to microplastics, such as the Restriction of intentionally added microplastics under REACH, the proposal for a new Regulation on preventing pellet losses to reduce microplastics pollution, discussions at the International Maritime Organization, and within the context of the UN instrument to end plastic pollution.
The REACH restriction on synthetic polymer microparticles was adopted in September 2023. It bans the use of intentionally added microplastics with various derogations, including one for the use of plastic pellets on industrial sites. However, there are supply chain communication and reporting obligations to the European Chemicals Agency that will apply to Borealis’ polyolefin products as of 2026. Preparations are under way to support compliance with these new reporting requirements.
In 2024, Borealis Public Affairs will:
In 2024 and beyond, Borealis Public Affairs will continue to support initiatives to drive a carbon-neutral circular economy in Europe, such as:
