Reporting of sustainable chemistry approaches in the chemical industry

Barbara Zeschmar-Lahl

2nd Green & Sustainable Chemistry Conference May 15-17, 2017, Berlin

Study performed as part of the ISC3 project

Environmental Research of the Federal Ministry for the Environment, Nature Conservation,

Building and Nuclear Safety Project number: 3715 65 499 0

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Agenda

�  Objectives of the study �  Relevant sectors and analysed examples �  Criteria for selection, characterisation and evaluation �  Examples

�  Dow Chemicals �  PTTGC

�  Results: Definiton of Sustainable Chemistry �  Results: Indicators and metrics �  Recommendations for future work of ISC3

Objectives of the study Sustainability initiatives and approaches in the chemical sector

•  Task: Map the most relevant •  Initiatives •  Approaches

in the field of sustainable chemistry.

•  Analyse their underlying goals, concepts and status of implementation with the application of appropriate criteria.

•  Target: Create a knowledge base for further discussion within the ISC3.

• Great input by the members of the ISC3 Advisory Council!

•  Study completed in March 2017.

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Relevant sectors and analysed examples (n =)

•  Chemical companies: •  AkzoNobel, Netherlands •  Koninklijke DSM NV, Netherlands •  Dow Chemical, USA •  DuPont, USA •  PTT Global Chemical PCL, Thailand •  Sinopec Corp., China

•  Chemical industry: •  International Council of Chemical

Associations (ICCA) •  World Business Council on Sustainable

Development (WBCSD) •  Together for Sustainability (TfS) •  European Technology Platform for

Sustainable Chemistry (SusChem) •  Chemie3, Germany

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•  Green Chemistry (8)

•  International Organizations (2)

•  Upstream / downstream value chain (3)

•  Sustainability reporting (2)

•  Sustainability rating and social responsible investment (2)

•  Further Non-Governmental/ Non-Profit Organisations (1)

•  Research approaches (1)

Criteria for selection of initiative/approach

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Basic selection criteria: 1.   Website is still accessible 2.   Language: English (or German) 3.   Availability of information (no member login,

no purchase of documents required) 4.   Actuality of website (no document mummies) 5.   Focus on chemicals (+ up-/downstream use), like e.g. green

chemistry, sustainable chemistry, green biotechnology, OR on sustainable development (SDG(s))

6.   Substantial informations

These basic selection criteria led to the exclusion of several approaches/initiatives especially from Asia, Africa and Russia.

�  Name / Title �  URL �  Type of Organisation �  Coverage/Region �  Institution(s) behind

initiative/approach �  Legal informations �  Governance bodies �  President/CEO/Chairman �  Year of foundation �  Budget/funding �  Links/closeness to other

Stakeholders �  Target audience and

sectoral/geographical scope

Characterisation criteria •  Self declared goal of activity •  Used definition of sustainable

chemistry OR sustainability •  Concept of selected indicators •  Year of beginning, change in the

concept (if any) since then •  Proposed instruments and measures

for implementation •  Status of implementation (e.g.

description of best practice etc.) •  Status and type of monitoring

including e.g. time series of indicator measurements

•  Stakeholder engagement •  Additional information

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�  Developed within an iterative process �  Depending on availability of informations �  Topics (if applicable):

�  Consistence of sustainable chemistry definition and its application in the approach

�  Consistence of indicator concept, and how can it be monitored

�  Role of SDGs in the concept �  Chance of implementation �  Overall impression, in case of information basis

Evaluation criteria

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Example: Dow Chemical (U.S.)

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Example: Dow Chemical (U.S.)

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Example: PTTGC (Thailand)

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Example: PTTGC (Thailand)

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Results: Definiton of Sustainable Chemistry

The analysis in this study showed a gap concerning definition and understanding of sustainable chemistry: •  In the past: green chemistry = sustainable chemistry

Today: a much more precise distinction •  OECD has set standards with its definition of sustainable chemistry

and is cited by many others •  Industry has no uniform definition of sustainable chemistry. •  Of the six chemical companies analysed – all acting globally – only

one (Dow Chemical) has a clear understanding and definition of sustainable chemistry.

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Green chemistry is a set of principles to design, but sustainable chemistry looks beyond only a science. It is a catalyst for change, an innovative approach to problem-solving and a long-term solution to global sustainability challenges. … Ultimately, chemistry and collaboration – and people – have the power to bend that straight line to a more positive point in the future, where nature and therefore human prosperity are in balance.”

Results: Indicators and metrics

•  Measuring sustainability progress of companies or sectors is mainly focussing on economic, ecological and social/societal aspects.

•  In order to benchmark, reporting standards are a basic requirement. •  GRI is the most used standard worldwide, offering a concept of

indicators, criteria and metrics for reporting. •  Five of the six companies analysed have published a Sustainability /

CSR-Report (or integrated report) in accordance with GRI G4 Guidelines and a set of prescribed indicators.

•  But companies are allowed to use additional metrics – besides the established indicators – for the description of managing their impact and defining and controlling their sustainability goals.

‘Impact’ refers to the effect an organization has on the economy, the environment, and/or society, which in turn can indicate its contribution (positive or negative) to sustainable development. (GRI SRS 2016, GRI 101

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Additional (impact) indicators and metrics used

•  Dow Chemical: •  “Breakthrough” (2015 goal): Evaluation of innovations for their

impact toward alleviating world challenges (energy and climate change, water, food, housing and health),

• Measured level of support among key value chain and stakeholder representatives and

•  sum of people whose sustainable development challenges have been positively impacted (2025 goals)

•  PTTGC: •  position in Dow Jones Sustainability Indices (DJSI) and •  customer and supplier satisfaction

•  AkzoNobel: Eco-premium solutions with downstream benefits •  DSM: Eco+ and People+ solutions with downstream benefits

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WBCSD: Social life cycle metrics for chemical products

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•  11 mandatory social topics for assessing the social life cycle metrics for chemical products: •  7 concerning workers •  3 concerning local communities •  1 concerning consumers

•  + 14 non mandatory social topics •  Aggregation along the value chain: •  New approach (publ. in 11/2016) •  Frontrunner! •  Very high probability of implementation, as WBCSD is a global driver,

and leading companies were involved in the development (AkzoNobel, BASF, DSM, CEFIC, Eastman Chemical, Evonik Industries, Henkel, Mitsubishi Chemicals Holdings Corporation, SABIC, Solvay)

Recommendations for future work of ISC3

It is recommended •  to work on a commonly agreed definition of sustainable chemistry

that clearly points out the final goal – a transformation of society that respects the capacity-limits of our planet,

•  to continue the evaluation of chemical company approaches, looking how they address to the SDGs (especially social challenges) and to other global challenges besides climate change, e.g. resource depletion, e.g. in their sustainability reporting. The aim is to develop widely accepted criteria and indicators for the concept of sustainable chemistry.

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Recommendations for future work of ISC3 (2)

It is recommended •  to introduce a broader discussion / to join the ongoing discussion

(with WBCSD or the Impact Valuation Roundtable (IVR)), on indicators and metrics of the aspects: social conditions, research, science and culture, successful long-term and sustainable way of management respecting the capacity-limits of our planet,

•  to further observe how first approaches on impact measurement developed by Dow Chemical, AkzoNobel, DSM etc. are applied in reality and what results are achieved,

•  to expand the mapping to these areas in order to identify relevant actors and further approaches for mainstreaming of the Concept of Sustainable Chemistry.

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Example: WBCSD

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Example: WBCSD

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