The Chemical Distribution sector is characterized by high growth, high value, and high impact but, compared to other sectors it is immature on ESG reporting and the development of sustainability programs. This article provides a brief overview of the reason and approach for a recent Finch & Beak benchmark study conducted, based on publicly available data of the Chemical Distribution sector and includes a downloadable ranking of the performance of 38 researched companies.
Through Portfolio Sustainability Assessments (PSAs) companies are able to collect insights into the sustainability performance of existing product portfolios. But how can companies capture the full value from these results? In general, PSAs determine hotspots of products that provide the most potential to capture additional value through improved decisions on key business processes. Perhaps surprisingly, the powerful PSA tool is not widely applied yet in the global business environment.
On top of business drivers such as cost savings and top line growth, increased regulations and reporting standards stimulate companies to enhance their sustainability performance. In this line of activities, a new technique has made its way into Strategy and Investor Relations departments as Social Responsible Investment (SRI) principles have been adopted by significant swarms of (private) investors. This requires companies to re-think the sustainability performance of their product portfolios. The recent introduction of the framework for Portfolio Sustainability Assessment by the WBCSD further implies the importance of the emerging phenomenon and provides useful tools for implementation.