Between 2015, our baseline year, and 2016, we met our annual goal of reducing absolute CO2 emissions by at least 3 percent. Our location-based emissions, which result from our consumption of electricity from power grids around the globe, fell 3.2 percent, from 486,400 metric tons to 470,631 metric tons. Our market-based absolute emissions for 2016, which factor in the effects of our renewable energy instruments, such as PPAs and renewable energy certificates, is even lower, at 423,226 metric tons—a decline of nearly 12 percent.
Between 2014 and 2016, we reduced energy consumption by 5.1 percent, from 1.37 million megawatt hours to 1.30 million megawatt hours.
In 2016, our Label and Graphic Materials (LGM) business where we initiated our efforts had one of its best years ever for reducing energy intensity, which we define as energy consumption per unit of production, or megawatt hours per million square meters. We reduced intensity by 7.2 percent from 2015, bringing us to a total reduction of just over 40 percent against our 2007 baseline. Our LGM operations in Europe led the way in 2016 with a 12 percent reduction in intensity. Since 2007, operations in North Asia Pacific have reduced their energy intensity by 55%. Since our baseline was established in 2007, our LGM business has saved an estimated total of nearly $150 million by using energy more efficiently.
To date, we’ve focused on reducing direct emissions from our operations and consumption of electricity. We’re developing our strategy for reducing indirect emissions from our value chain, both upstream from our suppliers and downstream from customers and consumers, where emissions can be greatest. We are working to have our strategy in place over the next few years.