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BLOG: The foundations of the chemical compounds sport are altering as corporations pay the penalty for “progress for progress’s sake”


SINGAPORE (ICIS)–Click on
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Chemical Connections by John Richardson.

The chemical compounds business, as with each different
business, has at all times chased progress for progress’s
sake.

Corporations have needed to “run more durable to face
nonetheless” with a purpose to persuade buyers that
each new quarter would ship revenue or
quantity progress.

This has fed into the varieties of information we’ve been
poring over all through our careers as we’ve got
continually looked for the following quantity and
margin progress alternatives.

However the guidelines of the sport are altering. Right now’s
inflation, austerity and geopolitical
challenges – together with a brand new China that will no
longer bankroll our business – will, we
consider, add momentum to the sustainability
push.

As the foundations of the sport change, so will the
measures or metrics for achievement (extra on this
in later posts because the dialogue develops).

What should chemical compounds corporations to be the winners
on this new setting? Listed here are our
recommendations:

  • Innovation should speed up in creating
    low or zero-carbon chemical compounds manufacturing
    processes as carbon taxes and credit develop
  • Polymer corporations have to fund assortment,
    sorting, storage and recycling programs for
    plastic waste within the creating world
  • They are going to want meet increased international model
    proprietor targets for recycled content material
  • Complete new round polymer worth chains
    should be constructed, with the present chains
    made much more environment friendly
  • Chemical compounds corporations should work extra carefully
    with converters, model house owners and retailers to
    cut back the necessity for virgin plastics in
    single-use purposes.
  • New chemical compounds and polymer options will likely be
    essential to make completed items last more.
  • Corporations, hopefully supported by the top
    of quarterly monetary studies, should shift from
    volume-based to service-based enterprise fashions.

Editor’s notice: This weblog submit is an opinion
piece. The views expressed are these of the
writer, and don’t essentially signify these
of ICIS.



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