SUSTAINABILITY
Pressures on companies
Regulators are not alone in calling on companies to advance sustainability . Investor pressures , consumer preferences for corporate responsibility , customer requirements and employee expectations are all strong contributing drivers for companies to move forward in a purposeful way .
As a result , there will be very few companies able to operate in an increasingly globalised environment without having a clearly defined position on , and proven progress with , advancing sustainability . Therefore , we are seeing a genuine desire from companies to be more sustainabilityminded and push forward their operations in a way that leads to better social and environmental progress , and positioning in the marketplace .
For manufacturing industries using raw materials and creating products that humans need every day , there are many challenges to operating in a sustainable way . As a chemical ingredients manufacturer , it is not as simple as just exchanging one ingredient for another that has a lower environmental impact : extensive innovation , R & D and adherence to strict regulatory and other protocols are required to achieve this .
Additionally , companies must think about their supply chain to ensure they are able to source the raw materials they need and develop products to meet their customers ’ needs and demands . For example , one of Arxada ’ s environmental priorities is reducing emissions . Therefore , we are looking throughout our value chain to work with both suppliers and customers to find solutions together . We are also building decarbonisation plans across the company and across each facility to help us to meet our Net Zero goal of 2050 .
Sustainability in practice
In practice , sustainability is a comprehensive term that encompasses how a company is run , with consideration to both short- and long-term impacts . When thinking about developing a sustainability strategy , a good starting point is to define your purpose . This means thinking about how you want to make the world a better place and how you are going to run your business in a way that achieves this goal .
The three pillars of sustainability are consistent across companies and indeed across industries , commonly referred to as environment , social and governance , or ESG . It is essential that companies take a comprehensive approach to address issues across all three pillars .
When setting sustainability goals or targets , the first step for any company is to evaluate where you are currently and where you want to be , and then do a gap analysis to work out what you need to do to improve and how long it will take you to get there . This means identifying what frameworks to use , such as the Global Reporting Initiative or the Sustainable Accounting Standards Board , which will help to establish and prioritise key actions .
Resource-efficiency
Ideally , as the industry modernises and continues to innovate , we will be able to become resource-efficient and move towards circularity , ensuring we are able to reuse or repurpose everything we develop . Becoming resource-efficient is one of the biggest opportunities for the chemicals industry and it will be important for companies to examine their manufacturing processes for opportunities to decarbonise .
Arxada has put a significant amount of effort into decarbonisation and resource-efficiency . We have already exceeded our 2030 targets for reducing our Scope 1 and 2 emissions , and this year will be looking to reset the target to raise the bar for further improvements , with innovation as a key contributor to reaching these more ambitious goals .
Collaboration will have a strong role to play in helping the chemicals industry become more sustainable . Naturally , companies will all have different contributions and values , but ultimately ,
we are all working to achieve a common goal of sustaining the planet for future generations to thrive and grow .
For example , we use the World Business Council for Sustainable Development portfolio sustainability assessment tool , which was created for the chemicals industry , by the chemicals industry to help drive innovation at the product level .
This is a notable example of a joint effort across the industry to develop a standard methodology and examine the impact and purpose of ensuring products are manufactured and brought to market in a sustainable manner . There are currently a host of similar efforts underway for bringing the whole industry together to develop innovative solutions to solve global sustainability challenges .
Outlook
Looking ahead , we will certainly see more drivers for companies to take action to become more sustainable . Without it , they simply will not have a licence to operate .
This represents an exciting opportunity for companies , particularly those in the chemicals industry , to collaborate and harness innovation and modern technologies to drive meaningful change that will help us all protect the future of people and planet for years to come , while providing key materials and products that we use every day . ●
Marilyn Johnson
CHIEF SUSTAINABILITY & COMMUNICATIONS LEADER
ARXADA k 39 3339 034117 J marilyn . johnson @ arxada . com j www . arxada . com
JUL / AUG 2023 SPECCHEMONLINE . COM
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