Customer and supplier centric approach by companies, self-regulation by industry, collaboration between stakeholders, and sustainable innovation among the key drivers
Climate change impact is becoming more and more critical not only for the general public but also for the industry where it will be severe, says Prakash Raman, Managing Director, Silox India.
"In our factory location at Gujarat, we experienced severe heat and wind interactions. There are challenges that we never anticipated such as supply chain disruptions, floods affecting employees, resulting in a huge negative impact on business continuity. Due to this, the industry has been forced to think and make the business more resilient. We need to identify the factors and these depend on the size of the business and industry, location, and the government's capability to handle the same. Climate change disruptions are unpredictable but the timely information and implementation of digital technologies could help address the issues early on" says Prakash Raman, Managing Director, Silox India.
Raman spoke at the E-Conference on 'Sustainability, Climate Change, and Carbon Neutrality for Chemical Industry' organized by the Indian Chemical News on January 28, 2022.
"While climate change is always viewed as a risk, managing such vulnerabilities also presents significant business opportunities. It could raise the level of the company if it collaborates with local government authorities and supply chain partners to maintain the continuity of the business. The customers could always depend on your ability to supply in adverse conditions, creating a larger goodwill. In terms of tangible benefits, the adoption has to be wide or it will not make any difference. For open innovation, we need to find a way to collaborate with small companies. We require incremental innovation not necessarily blockbuster innovation, making it easier to handle and use. While we tend to focus on the innovation at manufacturing level and how we process the material, we also need to look at incremental changes at customers’ level. We must minimize the investment required by them as the money spent on compliance is a hindrance. Developing affordable technologies for them with the support of government support will help them to be on the same path. Taking the whole industry together will help in creating an impact for all. The industry has to display a sense of urgency, with associations and governments working closely,” adds Raman.
Primary concern before society is how we can use the products sensibly and also preserve them for future generations, says Adnan Ahmad, Ex-Vice Chairman & Managing Director, Clariant India.
Ahmed explains his point: "There is still a long way to go as we are still at the basic first level. At the broader level, companies need to have a deep understanding of international standards. There is a need to look at the European example where 33 big chemical companies are currently working under the banner of Together for Sustainability (TFS), a joint initiative that delivers the de facto global standard for environmental, social and governance performance of chemical supply chains. They are coming to India and hope to see a few Indian names too. There is a dire need for bringing innovation to sustainability, spreading to the supply chain, building the sustainability focus besides capability and awareness on sustainable practices. Given the recent carbon tax in the EU, it will be difficult to do business if we don’t start adopting international standards. Sustainability practices should not be adopted just for government regulation and under any pressure. Self-regulation is the way forward for sustainability and the environment. When we say collaborative, it has to go beyond four walls and be taken to customers and suppliers as there are several ways of sharing the responsibilities of sustainability. For example, supplier assessment and audits to help them achieve it and then share the same with the customers. It is clear that winners in this space will come from sustainability players.”
Sustainability is responsible use of natural resources and as a company we have considerably reduced the carbon footprint of our operations, says Dr. Mritunjay Chaubey, Global Vice President – Environment, Sustainability & Green Cell, UPL Limited.
"With an ESG score of 24.9, UPL ranks number one in sustainability rankings among its peer companies. In 2015, we set the target of 30% carbon, waste and carbon reduction respectively by 2020. After achieving the same, we have set the 25% reduction target by 2025. In 10 years, we are looking at collective 55% reduction. At the same time, they are aiming to achieve carbon neutrality by 2040. Industry can emulate UPLs model: Green cell and Energy cell. For us sustainability doesn't mean just the focus on operations but a strategic approach. We follow a triple bottom line approach. Sustainability, and Social, Governance, Environmental dimensions respectively. We have implemented the Paris agreement. We are working on implementing SDG, COP2 etc. We aim to develop sustainable green sustainable technologies. Aiming for renewable energy, we recently adopted the practice of using biomass. We are acquiring the carbon credit and offsetting carbon emissions. We follow the mantra of reduce, replace and acquire. While there is no fixed Capex for sustainability, it depends on technologies we acquire. We spent approximately US $200 million in the last 2 years," explains Dr. Chaubey.
As the chemical industry has set the target of US $300 billion by 2025 for itself, it is important to achieve sustainable growth, says Amit Dixit, Vice President, Aditya Birla Chemicals.
Sharing the steps taken by his company, Dixit elaborates, "There are various initiatives we have implemented, be it manufacturing or supply chains. Lowering CO2 footprint, using bio-based feedstock. Bio-based materials to minimize waste and conserving energy, solar roof installations to reduce the water loss. We are a tech driven company that aims to deliver sustainable solutions. We are onto manufacturing epoxy. We have successfully commercialized the technology for each of the categories where we operate. What happens to the downstream processes, the products such as plastics and polymers is that these go to the grave. From cradle to grave model we have shown the way to cradle to cradle model. We replaced conventional fans with Epoxy coated GFRP fan for cooling towers. Epoxy resins are used in wind turbines where the wind blade is fully recyclable. It is important for every stakeholder to extend beyond what the customer does and develop solutions that are circular in nature. One of the most important factors is value mapping and value chain analysis of both downstream and upstream products. The cradle to cradle model will help the companies and industry to improve their position on sustainability index. Collaboration, alignment between stakeholders and increase in academic research can be leveraged by the industry. As a chemical industry we must strive for the same."
“Industries produce a lot of products that have a big impact on the climate. In this context, there is an urgent need to innovate next generation climate technologies with environmental benefits. There is a lot of waste and methane generation, out of which 20% is from agriculture. From 1985, we have been discussing solar energy but it is only since 2013 we have seen usage. In one decade, we have seen the implications in terms of adoption of solar panels, soil free agriculture to reduce waste generation and hydrogen power. Similarly, the chemicals will have to go digital for sustainability. At Carbanio, we are trying to connect chemical manufacturers with 9 million products on our platform. We are working on electrification technologies including solar paints for generation of electricity. We are developing thermochromic paints that will use solar energy to produce energy for cooling effect in summer and heat in winter,” says Dr. Rafi Shaik, Founder & Chief Scientific Officer, Carbanio.