Impact of Sustainability on Chemical & Material Industry

The chemical & material sector is a trillion-dollar global business that employs more than 20 million people across the globe. Major products being used which are directly or indirectly affecting us, are the contribution of the chemical industry. Across various sectors – from health, hygiene, construction, and mobility to agriculture and energy supply, the chemical industry has a crucial role to play as it enables the transformation required. Through the responsible production, use, and management of chemicals, the chemical sector can involve in innovative products and practices that protect the environment, minimize negative impacts, promote social progress and support economic growth.

There are several ways by which the chemical industry can impact the global consumers, other industrial sectors, or the ecology system. New technologies play an important role in order to drive the chemical industry into a more sustainable future. Exhibit 1 depicts a few of the impactful areas where sustainability could be driven by the chemical & material companies.

Key sustainability goals and how C&M companies are trying to achieve them

The majority of chemical companies are trying to adhere to the guidelines provided by the United Nations Department of Economics and Social Affairs, UN SDG (Sustainable Development Goals), which provides a shared blueprint for peace and prosperity for people and the planet. To achieve the goals, the chemical companies are trying to innovate new materials & technologies. There are 17 pillars of sustainability goals as developed by the organization which are mentioned below based on its weightage of impact in the chemicals and material industry. Exhibit 2 gives an overview on the various contribution from chemical industry which has potential to serve these goals

Very high impact goals

• SDG 13 – Climate change: Greenhouse gas emissions are more than 50% higher than in 1990. Global warming is causing long-lasting changes to our climate system. The industry has been contributing to this field by investing in carbon capture technologies, carbon storage, and pricing policies. There have been various technological advancements in the biochemistry field to capture and convert CO₂ into useful products.
• SDG 6 – Clean water and sanitization: Water scarcity affects more than 40% of people, a figure that is projected to rise as temperatures do. More and more countries are experiencing water stress, and increasing drought and desertification are already worsening these trends. The industry can contribute to this goal by adapting water purification & desalinization technology such as membrane filtration technologies, ion exchange resin technology, ozone filtration, etc., using innovative chemicals and materials in it. Water quality improvement can be achieved by the usage of improved nano-material-based water purification solutions at the consumer as well as industrial level.
• SDG 12 – Responsible consumption and production: Achieving economic growth and sustainable development requires reducing our ecological footprint by changing the way we produce and consume goods and resources. The chemical industry prioritizes sourcing sustainable feedstocks and is thus moving to bio-based/waste-based feedstocks for the production of chemicals and fuels. Biofuel production (ethanol, methanol) is one such impactful product in recent years, by the industry, which has the potential to be used in the e-mobility sector.
• SDG 14 – Life below water: The goal is to make marine bodies free of pollution which is mainly due to various commercial activities or due to plastic litter. The chemical industry is trying to contribute to this goal by innovating plastic alternative materials, biomaterial packaging solutions, and by packaging product engineering.

High impact Goals

• SDG 7 – Affordable and clean energy: As the population continues to grow the demand for cheap energy grows and an economy reliant on fossil fuels is creating drastic changes to our climate. The chemical industry has been a great contributor to the production of renewable energy solutions such as biofuels, which could be a major replacement for fossil-based fuels in their various application. Most of the chemical companies are moving to produce various chemicals using less toxic/bio-based non-toxic feedstocks such as elimination of toxic solvents in various processes and products, use of engineered materials in production to reduce energy or water consumption, etc. They have been contributing to the fields by developing fuel cell technologies for mobile applications.
• SDG 9 – Industry, Innovation, and Infrastructure: Investment in infrastructure and innovation are crucial drivers of economic growth and development. There are many chemical companies that have been crucial active partners with various organizations across the value chain for the development of sustainable feedstocks, the development of various chemical and material recycling infrastructure via technology licensing activities, etc.
• SDG 11 – Sustainable cities and communities: By 2050, two-thirds globe, 6.5 billion people, will be urban. Sustainable development cannot be achieved without significantly transforming the way we build and manage our urban spaces. The industry provides solutions such as e-mobility solutions, building insulation materials such as rock wool, slag wool cellulose, glass wool, polystyrene, urethane foam, vermiculite, perlite, wood fiber, and plant fiber-based to meet the requirements.

Moderate impact goals

• SDG 2 – Zero hunger: Extreme hunger and malnutrition remain a barrier to development in many countries. 821 million people are estimated to be undernourished as of 2017, as a direct consequence of environmental degradation, drought, and biodiversity loss. The chemical industry has been an active player in the development of plant protection chemicals which are herbicides, insecticides, and various fungicides. Biostimulants are used to increase crop yield and growth to meet global food demand. Various companies procure biomass from farmers to be used as chemical feedstocks which in turn increase their income.
• SDG 3 – Good health and well-being: Good health is essential to sustainable development. It takes into account widening economic and social inequalities, rapid urbanization, threats to the climate and the environment, etc. the industry has helped in making medical breakthrough technologies plausible by innovative chemical solutions.

Low and very low impact goals

Low impact goals fall under the categories of no poverty, quality education, gender equality, decent work, and economic growth, reduced inequality, life on land, peace justice, and strong institutions.

As of 2015, about 736 million people still lived on less than US$1.90 a day; many lack food, clean drinking water, and sanitation. There has been an enormous struggle in achieving the target of universal primary education. It’s also proven that empowering women and girls helps economic growth and development. There is slower economic growth, widening inequalities, and not enough jobs to keep up with a growing labor force. As per International Labour Organization, around 204 million people were unemployed in 2015. If we take into account population growth inequality in developing countries, inequality has increased by 11 percent. Every year, 13 million hectares of forests are lost, while the degradation of drylands has led to the desertification of 3.6 billion hectares. Some regions enjoy peace, security, and prosperity, while others fall into seemingly endless cycles of conflict and violence.

To mitigate above mentioned global problems, the chemical industry contributes by providing various solutions as mentioned in Exhibit 2.

Key sustainability innovations were undertaken by C&M companies

Various companies from across the industries such as commodity chemical manufacturers, specialty chemical manufacturers, forestry companies, material companies, mining, and metal companies have been playing active roles in various sustainable aspects such as decarbonization, circularity – where a used material is ensured to be recycled and brought, etc. It is evident that in terms of climate change action, decarbonization, circularity, recycling has gained more importance in recent years which will go on to directly/ indirectly contribute to better and affordable living conditions.

Various methods/ technologies adopted by the top industry players have been mapped in Exhibit 3 gives a high-level overview of the activities.

Conclusion

There is clearly a gap and an opportunity for a harmonized, systematic route to assess the development, manufacture, and use of chemical products. With the growing population, urbanization, the need for sustainable urban solutions, food, and water solution, environmental protection solutions are needed to be taken care of.

The chemicals and material industry has a major role to play in these terms and hence, investments in the sustainability sector would become an integral part of all company practice, currently and in the future.

Chemical companies are undertaking strategic innovations around decarbonization initiatives, energy efficiency, reducing the footprint of their products, and the development of innovative solutions to meet the requirements of downstream customers/brand owners. In addition, chemical companies are working closely with other stakeholders to build resilience and adaptive capacity for the sector and its supply chain in response to the impacts of climate change. The sector also plays a key role in the development of innovative sustainable solutions that will enable other sectors to strengthen their resilience to grapple around sustainability-related topics.

References

1. https://sdgroadmaps.wbcsd.org/the-chemical-sector/
2. https://www2.deloitte.com/us/en/insights/industry/oil-and-gas/chemicals-companies-strategic-imperatives.html
3. https://www.oaklandinnovation.com/files/2015/11/Technology-Enabled-Sustainability-in-the-Chemical-Industry.pdf
4. https://www.sciencedirect.com/science/article/pii/S2212982014000626