7/15/2024 Sustainability & carbon-neutrality Article

Sustainable chemistry by 2030

Chemical production yes - but sustainable, please. That's probably what most people expect. In fact, a lot has changed for the better. However, the chemical industry still faces major challenges in terms of sustainability. The Global Framework on Chemicals adopted in September 2023 is piling on the pressure. Numerous sustainability targets are to be achieved worldwide by 2030.

Symbolic image: Silhouette of a chemical plant, overlaid with green grass.

Greenwashing won't stand a chance in future. The measurable goals of the new Global Framework of Chemicals are intended to make the chemical industry sustainable worldwide.

The chemical industry plays a key role in the sustainable transformation. In Europe, the industry has proven that environmentally harmful emissions from chemical production can be brought under control. It has already made substantial progress on the road to climate neutrality. Many other initiatives, such as those launched by the European Chemical Industry Council (Cefic) and the German Chemical Industry Association (VCI), contribute to sustainability. However, it is still one of the world's biggest polluters and the safety of employees and residents often leaves a lot to be desired. On the other hand, it can make a significant contribution to the sustainability of energy supply, mobility, nutrition, and health, etc. through innovative products.

Previous environmental targets have been missed

Even though river pollution from chemical wastewater, regular air pollution from exhaust fumes and accidents involving fatalities in chemical plants are much less common in Europe than they were 20 years ago, the industry cannot rest on its laurels. The targets for chemicals management agreed at the World Summit in Johannesburg in 2002 for 2020 have certainly not been achieved. "Beyond 2020", the aim now is to significantly minimise significant negative impacts on human health and the environment worldwide when handling chemicals in all phases of their life cycle.

The GFC becomes more concrete - and puts pressure on time

At the end of September 2023, a new target system, the GFC (Global Framework on Chemicals - For a Planet Free of Harm from Chemicals and Waste), was adopted at the Fifth World Conference on Chemicals (ICCM5) in Bonn. The IOMC (Inter-Organisation Programme for the Sound Management of Chemicals) is playing an active role in its implementation. This time, the industry and stakeholders want to perform better. The GFC comprises five strategic objectives and 28 specific targets, the implementation of which is to be made measurable and traceable. There is not much time left: most of them are to be achieved by 2030.

A group of around 50 demonstrators in front of the entrance to the ICCM5 conference building in Bonn holding banners with demands against chemical pollution.

At demonstrations on the fringes of the ICCM5 conference, activists campaigned for stricter regulations and a ban on toxic pesticides.

For example, Goal A4 - By 2030, stakeholders will have effectively prevented the illicit trade in chemicals and waste. Or Goal B6 - By 2030, all governments will have implemented the Globally Harmonised System of Classification and Labelling of Chemicals (GHS) in all relevant sectors in accordance with their national circumstances. Goal D1 states: By 2030, companies consistently invest in innovation to promote sustainable chemistry and resource efficiency throughout the life cycle of chemicals. Implementing all this and much more will be a major endeavour.

Symbol circle against a green background. In the centre, a horizontal eight with an arrow symbolises the circular economy. Surrounded by symbols for waste, wind power, cooperation, CO2, purchasing, team, recycling, and growth.

The circular economy, renewable raw materials, CO2 neutrality and many other aspects contribute to sustainable chemistry.

Does ecology too often take second place to economy?

Within the EU, far-reaching sustainability reporting obligations already apply to companies, regulated in the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS) and the EU Taxonomy. Whether these already fulfill the overarching goal of the new GFC - a planet free of harm from chemicals and waste - remains to be seen. There are also regional initiatives such as Chemie³, which was launched by the German Chemical Industry Association VCI together with the IG BCE trade union and the employers' association BVC back in 2013. It is committed to bringing together the three dimensions of sustainability - economic, environmental, and social. However, in the VCI's 2024 mid-year review, the association only presents economic key figures - and criticises "costly bureaucracy, slow approval procedures and the flood of new regulations" as the "biggest disruptive factor for smooth operations". The ecological aspect of sustainable development fell by the wayside.

"Without chemistry, the transition to comprehensive sustainability comes to a standstill"

VCI President Markus Steilemann stated at the "Day of Chemistry" in September 2023: "The future of chemistry in Germany is at stake. But without us, the transformation of our economy towards climate neutrality, a circular economy and comprehensive sustainability will also come to a standstill. This transformation is a huge opportunity to turn Germany into a locomotive for green products and technologies of the future, with the chemical industry in the driver's seat." And as part of the industry's 2023 annual review, it was revealed that as many as 30 per cent of chemical companies are aiming to accelerate the ecological transformation.

Biotechnician controls a process on a large steel fermenter.

One way of making chemical production more sustainable is through white biotechnology. As part of its sustainability strategy, BASF is working on the development of large-scale fermentation processes.

Finally, the "Your Chemistry" campaign of the Chemistry in Dialogue initiative, of which the VCI is a member alongside pharmaceutical and chemical companies and other associations, names specific aspects of sustainability: the focus is on fewer fossil raw materials and more renewable energies as the chemical industry's response to the crises of our time. By 2045, it says, the industry will be greenhouse gas neutral. The industry sees the circular economy, recycling and renewable raw materials, renewable power sources such as wind and solar energy and e-mobility as pioneering. There is no doubt that the chemical industry has a lot to contribute here, from materials for energy plants to the replacement of fossil raw materials and the development of processes for recycling.

Climate protection is also a matter for investors and customers

Customers and investors of chemical companies probably have the biggest and most important leverage in their hands. Anyone who looks twice and favours buying from or investing in companies that take sustainability seriously can make an enormous difference. Most companies have long since realised this. BASF, for example, entices its investors with information about its ecological and social successes. As the world's largest chemical company with a major influence on the value chain, it can make a global contribution to ensuring that the GFC targets are achieved this time. It manages its global sustainability target for climate protection for 2030 via the "absolute CO2 emissions" performance indicator. Particularly ambitious targets, such as reducing CO2 emissions to net zero by 2050, are supplemented by targets for a more sustainable portfolio orientation, responsible purchasing, and resource-efficient and safe production. When words are followed by deeds, this is exemplary.