2023 Sustainability Report

Who We are

We are a Brazilian company with recognized leadership in petrochemicals and plastics transformation. Our products are at the heart of the economy and production chain, part of society´s daily life, in essential areas ranging from food and health to transportation, infrastructure and construction.

In the petrochemicals sector, we produce styrene products: ethylbenzene (EB), styrene monomer (SM), general purpose polystyrene (GPPS), high impact polystyrene (HIPS), expandable polystyrene (EPS), ECO-PS® and PS-3D.

ECO-PS® is a pioneering development from Innova that paves the way for circular economy: the first resin with up to 30% recycled post-consumption material in its composition and capable of retaining properties like those of a 100% virgin product.

In plastics transformation, we produce bioriented polypropylene films (BOPP), polystyrene (PS) and polypropylene (PP) reels and plastic closure caps for mineral water, juices, and soft drinks.

We are strategically located in the north and south of the country, with petrochemical plants in Manaus (AM) and Triunfo (RS), always close to our customers.

   

Check Out our Institutional Videos

From Videolar to Innova, a History of Reinventions

 Placeholder

Innova: Products and Presence in Society

 Placeholder

Message from the Leadership

Reliability is Value

Imagem da Liderança

Lirio A. Parisotto, by Liz Parisotto De Gregori.

At the end of every year, I use to draw up a sort of balance sheet, on a single piece of paper: the busy 2023 was no exception. It was, above all, a year rich in insights into what I see as the Company's greatest value. Before conclusions, the facts:

We kept our sales volumes intact against a backdrop of crushed margins, when the Brazilian chemical industry had to fight off imports of Asian resins at much lower prices, favored by Russian natural gas as an energy input.

This time, the petrochemical industry's expected international downturn was anabolized by a nefarious cocktail: war between Russia and Ukraine, sky-high Brazilian interest rates, world recession and a fall in the exchange rate.

If that was not enough, something else awaited us: the historic drought that brought the Amazon rivers to their lowest levels in 121 years. This made us mobilize, in Manaus, a daring logistical operation of naval pilotage, at very high costs, with ships traveling on a knife edge, bringing in inputs and finished products to mitigate impacts on our supply to the markets of bioriented polypropylene (BOPP), polystyrene (PS) and polypropylene (PP) reels and closure caps for mineral waters, juices and soft drinks.

In the petrochemical area, our investment in strategical positioning, north and south, in Manaus (Amazonas) and Triunfo (Rio Grande do Sul), assured supply of the polystyrene (PS) resin national demand.

At the same time as we were dealing with the drought in Manaus, north, our petrochemical plant in Triunfo, south, undertook the largest scheduled maintenance shutdown in the company's history. Before it, we doubled our tankage area to over 100,000 tons to guarantee customers full supply of styrene monomer (SM).

The Triunfo petrochemical plant is today fully powered by biomass from plant waste used in our Steam and Power Generation Plant, replacing mineral oil and coal. This operation was improved in 2023, and we achieved an 84% reduction in the rate of greenhouse gas emissions compared to the 2018 baseline, and 63% use of renewable energy in the company's production processes.

When I look at our response to all these adverse conditions, I see the bottom line of my balance sheet of this troubled 2023: we delivered to our customers the most valuable and main product, reliability.

Enjoy your reading!

Lirio A. Parisotto

Highlights 2023

Sales Volume Preserved Under Multiple Adverse Circumstances

Down cycle in the global petrochemical industry: margin squeeze with a direct impact on sales and profitability across the globe.Geopolitical forces generating changes in the map of energy inputs: Asia benefits from the possibility of manufacturing cheaper resins and triggers a surge of imports into Brazil, crushing utilization rate of the national chemical industry installed capacity to 64%, the lowest level in the last thirty years, according to the Brazilian Chemical Industry Association (ABIQUIM).Global economic recession, with high inflation and interest rates in developed economies; fall in the average exchange rate by around 3%; high interest rates in Brazil.Significant additional production capacity entering the international scenario, especially in Asia.Biggest drought in 121 years in Manaus, with an intense logistical impact on water transportation of inputs and finished products. Need for special logistics operations at high additional cost.

SALES VOLUME IN TONS

84% Reduction in the Greenhouse Gas (GHG) Emission Rate Compared to the 2018 Baseline Year.

ON THE ROAD TO CARBON NEUTRALITY
SCOPES 1&2

The company achieved 63% of renewable energy usage in production processes.For the second consecutive year, our Greenhouse Gas (GHG) Report was verified by Instituto Totum, including scopes 1, 2 and 3.Our 2022 emissions inventory awarded the Gold Seal by Brazilian GHG Protocol Program for transparency and quality of the calculations of greenhouse gas (GHG) emissions.100% evaluation of biomass suppliers, main feedstock of our Steam and Power Generation Plant. The scopes: environmental, social, and occupational safety.

Water Crisis in the Amazon: Our Mobilization

The prolonged drought in the Amazon Basin in 2023, the longest in 121 years, impacted river navigability and created severe logistical challenges for our two industrial plants in Manaus.

Depth conditions changed very quickly and were mapped in real time, along with the maneuvers.

It was overcome by a strategic mobilization of alternative modes such as road and ferry transport, at highditional costs.

Innova mobilized a daring operation, with naval pilotage resources such as real and virtual buoys to guide ships guaranteed loaded with inputs and finished products, in and out of Manaus.

Expansion of the Tanking Area at Triunfo Petrochemical Plant (Rio Grande do Sul):

Increase of reliability and safety for the market

Together, the tankage capacity for ethylbenzene (EB) and styrene monomer (SM) for Innova's production plants exceeds 100,000 tons.

The largest scheduled maintenance shutdown in the Company's history was successfully conducted at Triunfo (Rio Grande do Sul) petrochemical plant.

Foto unidade noturna

R$ 131.600.000

invested

1.100 professionals

involved

359.000

working hours

Styrene Productive and Integrated Chain

Climate Strategy

In 2023, our emissions inventory was awarded the Gold Seal by the Brazilian GHG Protocol Program, an initiative that aims to increase the transparency and quality of greenhouse gas (GHG) emissions calculations.

During the year, we achieved a 46% reduction in greenhouse gas emissions for scopes 1 and 2, compared to 2022, due to a higher consumption of steam and energy at the petrochemical plant in Triunfo (RS), with own production by the Power and Steam Generation Plant. It runs on biomass from plant waste (chips, rice husks and sawmill leftovers) instead of fossil fuels (coal and mineral oil).The Steam and Power Generation Plant has an installed capacity of 30,000kW, which is equivalent to the consumption of a city with 450,000 inhabitants.

In the second bimester, we eliminated the consumption of steam generated by burning fossil fuels.

GREENHOUSE GAS EMISSIONS (GGE)

GRI 305-2, 305-3, 305-4

Since 2017, we have been publishing our Greenhouse Gas (GHG) and Regulated Pollutants Inventory, covering scopes 1 and 2. In 2023, for the first time, we included scope 3 data.

Compared to the baseline year of 2018, the 2023 results reached an 84% reduction in the intensity of GHG emissions in scopes 1 and 2, or 230,104 tCO2 , in absolute figures.

Circular Economy

ECO-PS®, the company's pioneering product at the forefront of circular economy, is a polystyrene that uses up to 30% recycled post-consumer material in its composition, with mechanical properties compatible with those of virgin resin.

It was born in Manaus and plays an important role in the city's recycling chain, thanks to the partnership between Innova and the Sustainable Amazon Foundation (FAS), giving support to the Amazonas Association of Waste Collectors (ASCARMAN).

The ECO-PS® project was also presented at the Circular Economy Forum in Gramado (Rio Grande do Sul). There are still major challenges to the product´s full use due to legal approvals required, as in the case of packaging in direct contact with food, under the supervision of the National Health Surveillance Agency (ANVISA).

Check out our 2023 Sustainability Report

Full version