Tricon Energy: Tackling Scope 3 Emissions Reduction

Tricon Energy, operating in chemical trade and distribution, is setting a powerful example in sustainability, focusing on addressing Scope 3 emissions. Its commitment to environmental, social and governance (ESG) initiatives has earned it consistent recognition in the top 1% of companies globally for sustainability by EcoVadis.
Tackling the Scope 3 challenge
As a key player in the chemical industry's complex global value chain, Tricon Energy faces significant challenges in addressing Scope 3 emissions. A company's indirect emissions often represent the largest source of greenhouse gas emissions.
Product carbon footprint: A key focus
Ritesh Kothari, Director of Global Operations at Tricon Energy, highlights the importance of addressing product carbon footprint (PCF) in the company's sustainability efforts: "Product carbon footprint is the largest source of our Scope 3 emissions, alongside the transportation of products. The TfS PCF Guideline supports improvements in emissions transparency across the value chain."
Tricon is actively working to implement the Together for Sustainability (TfS) Product Carbon Footprint Guideline, which aims to drive decarbonisation through the chemical industry and beyond.
Collaborative approach to emissions reduction
Tricon recognises that tackling Scope 3 emissions requires extensive collaboration across the value chain. It has joined initiatives such as Carbon Call to help mobilise action for more reliable and interoperable carbon accounting.
Sustainable financing: Linking loans to ESG performance
Tricon has linked its borrowing costs to its ESG performance in a groundbreaking move. In December 2021, it executed US$1.45bn in ESG-linked loans, with the potential for borrowing costs to fluctuate based on improvements in its ESG performance, as measured by EcoVadis.
Ignacio Torras, CEO of Tricon, highlights the company's commitment: "Tricon is committed to improving our ESG performance and contributing to a future society that is more just, net zero and circular. The path to sustainability requires collaboration. We value our banking partners' support in progressing this journey together".
Expanding sustainable product offerings
As part of its strategy to reduce Scope 3 emissions, Tricon is actively expanding its sustainable product portfolio. It has set specific key performance indicators (KPIs) for its responsible sourcing and product stewardship commitments.
Ignacio explains: "Strengthening our responsible sourcing program and sustainable products business is an opportunity to 'create good together' – our intention as we continue collaboration with our banking and business partners toward a more inclusive, net zero and circular future".
Responsible sourcing: A key component of Scope 3 reduction
Tricon's responsible sourcing plan includes partnering with EcoVadis on higher-risk supplier sustainability assessments. The approach helps the company address sustainability challenges across its diverse global supply chain.
Elizabeth Carlson, Chief Sustainability Officer at Tricon, acknowledges the ongoing nature of this work: "The journey continues. We still have gaps to fill, actions to progress, data quality to improve, processes to mature and many systemic issues to find our way through collaboratively".
As of January 2025, Tricon Energy continues to make significant strides in its sustainability journey. Its efforts to address Scope 3 emissions through collaboration, sustainable financing and responsible sourcing serve as a model for the chemical industry and beyond.
Tricon's commitment to sustainability is about reducing emissions and creating a more inclusive and circular economy. As it continues to evolve and expand its sustainability initiatives, it remains focused on efficiently and sustainably connecting the world with essential goods.
In the words of Ritesh Kothari: "We believe every actor in the value chain has a role in contributing to a more inclusive and net zero future."
As Tricon Energy continues to lead by example, its efforts in addressing Scope 3 emissions and promoting sustainability across its value chain will undoubtedly play a crucial role in shaping the future of the global chemical trade and distribution industry.
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