Sustainability is reshaping chemical logistics, where efficiency alone is no longer enough. With rising regulations and pressure to cut emissions, the industry is moving toward greener supply chains. From cleaner fuels and multimodal transport to digital optimization and circular practices, the roadmap ahead demands innovation, collaboration, and a balance of safety, cost, and environmental responsibility.

Experts from across the industry recently came together to discuss the challenges and chart a way forward at the ChemConnect 2025 themed ‘Disruption, Innovation, & Resilence’ organized by the Indian Chemical News on August 21, 2025 in Mumbai. 

The first session of fourth edition of the event titled, ‘Sustainability in Chemical Logistics: Roadmap to Green Supply Chain’ was moderated by Ashish Kulkarni, Partner, Boston Consulting Group.

Expressing his optimism at the wide range of initiatives taken by the companies, Kulkarni stated: “Achieving 70% renewables reflects a very strong capital structure and commitment on your part. From the state’s perspective as well, there are possibilities of extending support. For instance, I am personally engaged in bilateral discussions to understand how we can ease banking-related challenges so that the target can be pushed to 80%. If you look at the broader picture, no single government can achieve this alone. All governments together are working towards our nationally determined contributions (NDCs), aiming for net zero by 2070. Each one of you is playing a vital role in this collective journey. In fact, I believe it is the right of all of us to aspire towards 100% clean energy, and perhaps even petition collectively to accelerate this vision further.”

“Personally, I began my journey in this space 25 years ago, working on rural electrification projects. At that time, sustainability was not at the center of discussions, but I am glad to see that today it has become a critical factor in every major decision-making process. Another important aspect is capacity building. Not everyone in the value chain is equally prepared for this transition. While companies like yours may be ready to adopt sustainable practices, many vendors or partners may lack the necessary awareness or capability,” he added further. 

Ravindra Gadre, Chief Procurement Officer & SCM, Apcotex Industries Ltd. observed that the disruptions we face today, most evident in climate change, are reminders of the urgent need for resilience. 

“For us at Aportex, sustainability is not just a responsibility, it is a core objective of the company. And at the heart of sustainability lies innovation. Innovation is not limited to boardrooms or leadership—it can happen anywhere, whether at the ground level with factory workmen or at the highest levels of strategy. When we speak of sustainability, we refer to practices that endure, processes that can continue indefinitely without harming the environment or depleting resources. Our approach is to move beyond the textbook concepts of reuse and recycle, and to focus on concrete, real-world initiatives. One of the biggest steps we have taken is in renewable energy. We recently signed a contract for a five-megawatt hybrid project combining wind and solar power. By the end of December, this will allow us to meet about seventy percent of our electricity needs through renewable sources, thereby reducing our dependence on coal-based power. The percentage could have been higher, but regulatory restrictions on electricity banking mean we are currently capped at seventy percent,” said Gadre.

“We are also focusing on reducing our dependence on imported raw materials. By developing domestic alternatives with similar chemistry, we now source nearly eighty percent of our previously imported materials locally. We are currently evaluating the use of electric trailers for export container movements from our plants in Ankleshwar and Taloja. For domestic transport across India, we have begun giving preference to CNG vehicles instead of conventional diesel trucks. At the same time, we are prioritizing suppliers located closer to our plants in order to reduce emissions from long-distance transport. In packaging, we are shifting towards reusability. For latex supplies within a one-hundred-kilometer radius, we are using intermediate bulk containers that can be returned, cleaned, and reused up to ten times,” he added further. 

Pratyush S. Kadam, Head - Procurement & Logistics, Evonik India highlighted that sustainability at Evonik is not an afterthought but a core principle embedded into every decision, design, and business plan. 

“With a presence across multiple businesses and a portfolio of more than 2,400 chemicals, sustainability naturally becomes a core consideration in everything we do. It is the backbone of our business planning and product portfolio decisions. Whenever we evaluate a product or portfolio, we begin by asking: what value will it create for our customers, how will it scale with their needs, and how effectively will it contribute to a more sustainable future? To answer these questions, we carry out detailed analyses that include carbon footprint calculations, life cycle assessments, and valuation studies. Sustainability assessment is therefore integrated right from day one of product development,” mentioned Kadam.

“The methodology we follow is systematic. We start by defining objectives and scope. Then we assess the product’s impact across its entire lifecycle, from raw material sourcing and transportation, to production, certifications, regulatory compliance, and end-use applications. Procurement plays a major role in this process, as we look closely at our suppliers’ sustainability practices, their audits, their share of renewable energy, and their compliance with environmental standards. Based on these evaluations, we classify our products into categories such as challengers, transitioners, performers, drivers, and leaders. The strongest positive signals are seen in our leaders and drivers, where we can clearly demonstrate a sustainable footprint across the value chain. These classifications then guide our business decisions. But sustainability is not only about products but also about people. We believe that people and talent are the foundation of any progress. By training and developing our workforce, and by equipping them with the latest tools and technologies, we strengthen our ability to compete and deliver value in a fast-changing world,” he added further.

Anand Prakash, Senior Director – APAC & Europe Business, Netradyne, emphasized that while technology has always existed, its real impact today lies in how data is harnessed.

“When you have a solid framework for sustainability, it becomes essential to identify the right signals, those that actually contribute to your goals. Technology helps here by providing tools for data processing, analytics, and insights, often supported by consulting expertise to make sense of it all. In my view, that is one of the most important contributions of technology today. Another critical aspect is risk management. From my experience working with risk management firms, I’ve seen how companies put immense effort into quantifying risks and linking them directly to their ESG goals. Technology enables this by helping organizations measure, monitor, and mitigate risks more effectively. Without a clear purpose, technology just sits unused on the shelf. But when you define what matters, set proper goals, and decide what you want to track, technology becomes a powerful enabler,” said Prakash.

“Let me give you a specific example. In chemical transportation, safety is paramount. Today, AI-powered vision systems are transforming driver and road safety. These systems use cameras to monitor both the environment outside the vehicle and the driver inside. For example, drowsiness detection systems track eye movements to identify signs of fatigue, one of the leading causes of accidents globally, including in India. By proactively alerting drivers, such technologies not only protect lives but also support sustainability goals by ensuring the safe and responsible transport of chemicals. Beyond this, we are seeing the adoption of electric vehicles and advanced telematics. These vehicles generate large volumes of data that feed into command centers, enabling real-time monitoring and quick corrective actions. This not only improves efficiency but also contributes to greener logistics,” he added further.

Prakash Wagh, Global Product Stewardship, Technology & Sustainability, Clariant India Ltd. highlighted how the company has embedded sustainability into its growth strategy by combining innovation and systems. 

Wagh explained: “Let me give you a classic example from India. Since we are in the specialty chemicals space, our raw material sources have always been a focus. Earlier, we relied heavily on petrochemical-based inputs. But later, we decided to switch to plant-based sources, specifically natural grains. This shift not only helped us reduce dependence on petrochemicals but also brought significant value as our products are now commanding a 15–20% higher price in global markets and are widely appreciated for their sustainable footprint. Another example comes from our catalyst business. Here, we work with a partner company in India where products are developed within just 15 to 30 days and quickly tested at customer sites. These catalysts are used in cracking processes, and the trials showed remarkable results and energy consumption was drastically reduced for customers.”

“Innovation, however, is not limited to the laboratory. For instance, earlier we used thermal sources for product trials. Later, we shifted to natural resources, which significantly reduced our Scope 3 emissions. Similarly, in Europe we are working on integrating different modes of transportation to cut down the overall carbon footprint. These initiatives not only strengthen sustainability but also directly contribute to profitability. Interestingly, greener products also command a market premium, as customers are increasingly willing to pay more for sustainable solutions. At Clariant, we also participate in theTogether for Sustainability (TfS) initiative. Under this, we conduct thorough audits of our logistics service providers (LSPs). Safety and sustainability are our key focus areas, and we use a detailed checklist before onboarding any partner. Only those who meet our standards are selected. After that, we go further by conducting regular audits and training sessions, particularly in logistics, to ensure compliance with our sustainability requirements,” Wagh added further.

Rajnish Khandelwal, CEO – Agency, JM Baxi Marine Services, emphasized that sustainability in chemical logistics is now a survival imperative, with customers increasingly judging not just how chemicals are produced but also how they are transported.

“Sustainability in chemical logistics is no longer a choice but a matter of survival. With global competition intensifying, Indian producers must realize that customers are not only evaluating how a chemical is manufactured, but also how it is transported and delivered. Logistics providers are therefore under pressure to ensure that carbon footprints are minimized at every stage of the supply chain. Very soon, providers will be able to give precise data, such as the exact kilograms of carbon dioxide emitted when a shipment passes through their network. This transformation is already visible in the port and shipping sectors. The Government of India has mandated the adoption of green tug transition policies by 2027, while the International Maritime Organization (IMO) has set a global target for all ships to achieve net zero emissions by 2050,” said Khandelwal. 

“Many ports are already moving from diesel-powered to electric equipment, installing solar panels on unused spaces, and investing in greener infrastructure. Some companies are piloting electric and hydrogen-powered trucks with charging stations, making short-distance cargo movement cleaner and more sustainable. Innovation is also reshaping shipping itself. New vessels are being designed to run on LNG, methanol, or hydrogen, with several already operational worldwide. Although costs remain high, the technology is advancing quickly. This creates new opportunities for India as well. For example, if the country can establish LNG or alternative fuel bunkering facilities at its ports, it could become a key hub for green shipping in the region. Ultimately, whether we call it sustainability, decarbonization, or green shipping, the message is clear: the world is moving in this direction, and businesses will increasingly be evaluated not just on product quality but also on the sustainability of their logistics practices.” he added further. 

The ChemConnect 2025 was supported by Netradyne as the Platinum Partner. The Gold Partner of the event was JM Baxi and the Associate Partner was dDriven.