By: Rahul Koul
Last updated : December 04, 2021 10:40 am
There is an ongoing paradigm shift in terms of sustainability happening within the chemical industry.
“The Indian chemical industry is at the cusp of many great things and we have surely witnessed some transformation in the last few years. We have been speaking about it for decades but in the last few years we have seen a lot of positivity. We all talk about the industry reaching US $300 billion from the current US $180 billion in a few years. While the opportunities are immense for chemical companies, the focus, however, for all of us is how to achieve that growth in a sustainable manner,” says Vijay Sankar, Immediate Past President, Indian Chemical Council (ICC) and Deputy Chairman, The Sanmar Group.
Sankar was speaking at the 3rd edition of Sustainability Conclave 2021- Clean India & Green India “Strategies, Innovation & Technologies for Chemical industry” organized by the ICC.
“In my view sustainability is probably the big elephant in the room. Whether it is an enabling ecosystem, China plus one, huge domestic market, stable and supportive government, there are a lot many factors that will fuel growth. The challenge is how we can grow in a sustainable manner without compromising on this growth, not only before the companies but in front of the ICC as well. COP26 and environmental responsibilities are being talked about globally and also the role chemical companies will play its part in the broader scheme of de-carbonization and helping in achieving the 1.5 degree target. Chemical industry is already playing a key role in addressing the climate crisis. While GAG emission and greenhouse emissions account for 2.2% of global total emissions, we are also responsible for about 3.6% emissions attributable to energy production. While that number may not seem to be large, the opportunity for the chemical industry because we are an inter-linked industry, how we can help other industries achieve their targets. It is merely not about reducing our emissions but helping other industries to meet the goals. That is where the real opportunity lies,” adds Sankar.
Sankar believes that there is an ongoing paradigm shift in terms of sustainability happening within the chemical industry.
“If you talk to the heads of large US $50-60 billion companies, they are all thinking about how the chemical industry is entering a watershed moment. In the 20th century, we witnessed the chemical industry move from coal based to petro-chemical but the fact is 100 years later, we still have coal based chemical companies. So the transitioning of this to the next phase, we need new technology innovations to meet the decarbonization targets. If you look at the context in India, we still remember the Bhopal gas tragedy that happened years ago. It left a deep and sad mark on many human beings. It also brought out the response of the chemical industry including ICC on responsible care programs. This voluntary initiative did help in implementing the initiatives on environmental clearances, and community services,” Sankar opines.
Sankar is of the opinion that the Indian chemical industry needs to realize its full strength for the next phase of growth.
“In last one decade, we have seen 70 new companies and that is 28% growth in chemical industry numbers. But we should not be proud of this number and rather should have looked at 128% growth. We should look at 150 plus RC companies by today. The chemical companies in the industry have not been tapping the low hanging fruits and opportunities. Likewise, the nicer globe initiative of ICC is looking at safer transportation, real time and emergency monitoring. The opportunity is very large and we must wholeheartedly embrace it. Since the government has by design combined the critical portfolios of the ministry of chemicals and fertilizers with new and renewable energy (MNRE) under a single ministry, it reflects the clarity in its support for the industry’s sustainability goals. The chemical industry has to work with the power industry and MNRE through the adoption of renewable energy,” comments Sankar.
“Even in the biggest countries like the US, I have seen chemical industry leaders talk about the lack of political alignment as a missing link to help the industry reach the sustainable development goals. In India, we don't have such issues as the government here has agreed to support the industry in achieving the same. India's pledge to net zero is laid out and our energy targets are laid out. We need to see the opportunity. Chemical industry will play a leadership role in driving sustainability. Be it adoption of green molecules or sustainability practices on a larger scale, we have witnessed many announcements. Startups are coming up and together with industry, we can achieve the targets. Chemical industry can help all other industries to achieve their sustainability goals,” says Sankar.
“We are at an early stage and that adds to the excitement. We must see this as an opportunity rather than a challenge. The strong R&D focus and ability to collaborate with academia and research institutes will help us in putting up with the unique opportunities that de-carbonization throws up,” Sankar concludes.