Circular Economy in Chemicals: Materiality in Material Science

According to chemical industry association Cefic, the EU chemical industry’s share of world markets has seriously declined in the past 20 years. In 1995 EU industry sales amounted to €326 billion, representing 32.3% of worldwide sales. Two decades on, the EU chemicals sales have grown almost 60% but the market share has dropped to a meagre 14.7% in 2015. This “dilution effect” looks set to continue. Demand for chemicals is growing strongly in China, India and other emerging countries but slowly in Europe and North America, where Europe sells most of its chemicals. What can sustainable innovation contribute to this challenge?

Empowering Smallholder Farmers within the Value Chain

What do the Rana Plaza clothing factory disaster and the Chinese food safety scandal that, according to Reuters, caused a 4.2 percent share price decrease for Yum Brands have on common? They are two of the many examples of the costs and risks that companies can incur when a sustainable and integrated supply chain management is not in place. On the other hand, responsible management comes with many benefits, including greater access to capital and new markets, reducing the cost of material input, energy and transportation, and spurring innovation in order to meet evolving customer and business partner requirements. The business case is clear.

2016 Dow Jones Sustainability Index Results

On the 8th of September 2016, RobecoSAM announced the results of the Dow Jones Sustainability Indices (DJSI). We are proud to be working for Europe's frontrunners of which Koninklijke DSM and Telenet Group Holding are this year's industry group leaders. Other industry group leaders include Unilever, Roche Holding, Telecom Italia, and Metro AG. Companies that were added in this year’s world index are Cisco Systems, Essilor, Royal Dutch Shell, and Adobe Systems, whereas Samsung Electronics and BT Group are companies that have been deleted from the index.

Why Sustainable Innovation Needs Chemicals & Vice Versa

As a major supplier to industries including healthcare, construction, agriculture and automotive, the chemicals industry is a prime driver of sustainable innovation with an impact that spreads out widely. Chemistry is a true enabler in tackling megatrends, for instance by offering solutions that meet the growing demand for alternative energy to battle climate change, solutions that can keep cities liveable in times of rapid urbanization, solutions in the area of health and nutrition required by the world’s growing and aging population – and the list goes on.

Sekisui Inspires Youngsters to Drive Sustainable Change

Sekisui Chemical Company, the Japanese manufacturer of high quality polyolefin foams is very active in the field of sustainability. In 2007, when Sekisui celebrated its 60-year anniversary, it organized the first Global Children’s Eco Summit in Japan with children from all over the world, followed by regional events in Europe, North-America and Asia.The big idea behind the involvement of this specific stakeholder group is that they are very well equipped to be change agents for a sustainable future.

3 Solutions to Tackle the Plastic Soup

Over the years the global community has spent more time admiring and talking about the great plastic waste problem than finding a solution. Luckily, a number of organizations has started to take matters in their own hands. They engage the right stakeholders, create a solution to address the problem and make a profit along the way, by re-engineering their business model and sustainable innovation.

How Leading Chemicals Companies Surpass Their Competition

For the case studies we wrote for IMD business school on Royal DSM, and the forthcoming case on Novozymes for INSEAD, Finch & Beak did a deep dive in the sustainability performance within of the chemicals sector. This has taught us that at least a few chemical companies are among the global community of corporate sustainability front runners, which sparked the question: what is the status of sustainability in the rest of the industry?

DSM: Sustainability as a Driver for Innovation

The British naturalist Charles Darwin noted in his publications that it was not the strongest of the species that survived but the fittest, i.e. those most responsive to change. We have come to notice this is not only the case in nature, but also in business. Prime example of a company able to adjust to changing circumstances while realizing growth and profitability: DSM.

Washing "the Emperor's New Clothes": the Case of Novozymes

Since its public listing in 2000, Danish company Novozymes has been extremely successful in delivering shareholder value from sustainable innovation. With a current 48% global market share in industrial enzymes and a price/earnings ratio of approximately 35, Novozymes shares have become one of the most expensive shares of its industry. Fundamental to its success is the company’s focused strategy of “Partnering for Impact”. What can we learn from their voyage?

Umicore: the World’s Most Sustainable Company

The Canadian research institute Corporate Knights has named Umicore as the world’s most sustainable company. This is quite a feat, as Umicore used to have a rather unpopular image of a polluting company. With revenues of about €12.5 billion (2012), 14,600 employees, 77 industrial sites and 15 R&D centres in 34 countries, there is no doubt that Umicore is doing well. But what is the key to Umicore’s success and how did sustainable change led to value creation?