Industry | Green Value Chain: New Actions in the Chemical Industry

The raging fires in Australia, the spread of locust plagues in East Africa, the melting of glaciers in Antarctica.
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At the beginning of the new decade of 2020, the world has experienced a real test, and the main cause of these disasters is global climate change.
Sustainable development has become a topic of common concern all over the world.
Accenture predicts that with people’s increasing attention to environmental issues and the reform of corresponding regulatory mechanisms, the global value of the circular economy may reach US$4.
5 trillion by 2030.
As one of the pillar industries of the national economy, the chemical industry affects all aspects of our food, clothing, housing and transportation.
Currently, there are approximately 100,000 chemicals worldwide, with a total industry value of approximately US$4.
7 trillion.
The emergence of circular economy will undoubtedly become a new blue ocean in this huge market.
By occupying a place in the market for repeatable, renewable, and recyclable products, chemical companies can turn these changes into their own advantages, continue to drive growth, and help shape a more environmentally friendly, cleaner, and sustainable future.
Upstream pressure, downstream subversion, upstream pressure, downstream subversion, from consumers to retailers to brands, and finally to chemical manufacturers.
People's growing concern for the environment has put pressure on the chemical industry.
For example, the input of upstream raw materials in the chemical industry will affect the sustainability and reuse potential of products; similarly, the chemicals used in production will also affect the recycling potential of finished products.
The resin and paint contained in wooden furniture make it difficult to reuse, so it is often landfilled.
The packaging of food and beverages contains laminated materials or coatings, causing retailers to accumulate a large number of unrecyclable packaging.
These highly complex challenges have driven the demand for more innovative and easier to recycle materials and solutions.
At the same time, limited global resources and people's increasing attention to sustainable development are gradually changing the perceptions of global consumers on chemicals.
At the same time, they are also using their purchasing power to influence corporate decision-making.
Accenture research shows that more than half of consumers are willing to pay more for sustainable products, and nearly three-quarters (72%) of consumers say that they are more likely to buy environmentally friendly products than they were five years ago.
high.
These trends are more pronounced among young consumers (under 40) and Asian consumers.
In particular, it should be noted that consumer trust in chemical companies is the last place in many industries.
At present, many consumers have stopped buying some products out of environmental considerations; consumers and environmental protection teams have even called on chemical companies to take action on waste, carbon dioxide emissions and disposable plastic products; 83% of consumers think , Designing products that can be reused, recycled, and do not need to be landfilled is essential for companies.
Chemical companies must respond to this part of the appeal and respond quickly and positively.
Leading companies have already taken action.
For example, Coca-Cola promised to achieve 100% collection and recycling of the same amount of packaging used by 2030; IKEA also plans to make all product designs follow new recycling principles by 2030, including using only renewable or recyclable materials ; Wal-Mart is committed to improving the sustainability of operations and global value chains to achieve the grand goal of "zero waste".
In addition, 3M also announced that the concept of sustainability has been integrated into all products.
This has helped it reduce more than 2.
2 million tons of pollutants, saving more than 2.
2 billion US dollars in the first year alone.
Internally and externally, seizing the golden opportunities Internally and externally, seizing the golden opportunities When consumers dominate environmental disputes, actively promoting the circular economy helps chemical manufacturers reaffirm their environmental protection commitments, reshape their concepts, and build consumer trust.
Chemical companies have the opportunity to help customers achieve sustainable development and fulfill their corporate promises to directly create business value, improve brand reputation and increase consumer loyalty.
Taking the European chemical market as an example, Accenture's research shows that circular solutions can use new demand to create value, reduce energy use, and continuously develop downstream demand, thereby achieving a net growth of 26%.
1.
Develop an internal circular economy.
The circular economy abandons the traditional "resource-product-waste" linear model, and replaces it with a brand-new model that can avoid waste of resources, and continue to maintain the most efficient use and highest value of products, components and raw materials, thereby creating new value.
The recycling and reuse of materials and molecules in the value chain is one of the key measures.
The cost of raw materials accounts for about 60% of the total cost of chemical companies, so the use of less price-sensitive alternatives can reduce costs and improve price stability.
This also motivates the design of reusable products and makes a positive contribution to downstream and upstream circular economy applications.
The principle of "green chemistry" aimed at reducing the development or use of harmful substances is expected to generate a global market value of US$100 billion this year, providing chemical manufacturers with a new way to create new value through the internal circular economy.
2.
Development of downstream circular economy As traditional production methods are gradually transformed into circular production methods, the product value chain will evolve into a continuous process of recycling and reusing materials.
Proactive cooperation with brands and retailers is a key differentiating factor that promotes the development of downstream circular economy for chemical manufacturers, and enables them to use new trends to create new value and broaden their sources of income.
For example, Unilever recently signed a three-year contract with Veolia to develop innovative circular economy solutions for plastic packaging waste.
Chemical companies can use the same method to provide brand owners and retailers with important consulting and technical services, and guide them to redesign products and develop a circular economy.
In addition, some companies are also cooperating with start-ups that have developed innovative technologies to jointly cope with environmental challenges.
Transformation to a new circular business model Transformation to a new circular business model As the chemical industry structure continues to evolve, new business models are gradually emerging, creating broad opportunities for mining value and promoting growth for each stage of the circular economy.
Chemical companies respond to the needs of downstream industries by optimizing internal operations, while using new technologies and partnerships to transform disruptive changes into their own advantages.
1.
Circular supply chain: Eliminate non-renewable raw materials BASF (BASF) has now developed a biomass balance plan that can reduce the use of non-renewable resources.
The program can use sustainable biomass raw materials such as kitchen waste to maintain product consistency and reduce the use of fossil fuels, while avoiding raw material price fluctuations and limiting greenhouse gas emissions.
2.
Product as a service: Provide product use rights and focus on quality .
One of the typical examples of non-sales is chemical leasing.
For example, SAFECHEM, a chemical leasing supplier under Dow, uses its closed-loop circulation system to help customers reduce the use of metal cleaning solvents by up to 93% and energy consumption by up to 50%.
3.
Recycling and recycling: Extend the service life of resources.
In India, Dow Group cooperated with the government and local asphalt plants to use 100 tons of plastic waste collected to pave 40 kilometers of roads, which not only transferred plastic waste from landfills, but also And it gave plastic waste a second life that lasted for decades.
4.
Product cycle extension: develop more durable products Chemours' Teflon EcoElite™ long-lasting water repellent is a protective coating made of 60% renewable plant materials, and its durability is other non-fluorinated Three times the protective agent.
With this weapon, Colmar has developed a new generation of ski suits to meet the needs of environmentally conscious customers.
This has also become one of Colmar's most successful product series.
5.
Sharing platform: Improve product utilization.
Chemical companies can develop digital platforms that support artificial intelligence, optimize the reuse solutions of redundant chemical products, determine the best chemicals for specific reuse cases, and cooperate with recycling product design experts.
So as to respond to changing consumer demand and create huge value.
Today, the chemical industry is at a turning point in its development, and disruptive pressures will promote the emergence of new business models and value chains, and at the same time create opportunities for active practitioners who are ready to go and win new trends.
Chemical companies can help manufacturers, suppliers, and retailers develop a circular economy, become powerful partners, and help brands respond quickly to changes in consumer preferences, and ultimately win more consumer trust.