Why Shell, Henkel, Arkema, EFESO and Ovinto are Promoting a Culture of Collaboration

Pressure is mounting on chemical manufacturers to make meaningful progress on their lofty sustainability targets. Headway needs to be made soon, and it can only be done if the industry comes together as one to strive towards a greener future.

In response to this, WBR Insights have published The LogiChem Sustainability Through Collaboration Report, where we have surveyed 100 heads of supply chain in the chemicals industry to find out how collaboration is helping them create a more sustainable supply chain. Produced in collaboration with EFESO and Ovinto, the report features commentary and insights from supply chain leaders at Shell, Henkel and Arkema.

You can now download your free copy of the report by clicking here, which features the full results of our survey, plus thought leadership from our proud sponsors at EFESO and Ovinto, and expert commentary from the LogiChem community.

Building an Effective Decarbonisation Strategy by Promoting Open Data Sharing

The clock is ticking for the chemical industry as crucial deadlines for reaching net-zero emissions loom in 2030 and 2050. In response, manufacturers are scrambling to formulate and implement ambitious decarbonisation strategies. However, success hinges on their ability to share accurate and timely environmental, social, and governance (ESG) data.

Our research paints a picture of encouraging progress, with 78% of surveyed supply chain leaders reporting improvements in their ability to collect, analyse, and share accurate ESG data. This signifies a positive shift in the industry, but challenges remain. Data silos pose obstacles for nearly half of respondents, while concerns about privacy and a lack of standardisation present additional hurdles.

The report advocates for a fundamental cultural shift towards open data sharing across all industry stakeholders. This move towards transparency is seen as instrumental in boosting progress tracking, aligning sustainability goals across various business areas, and facilitating better reporting.

Technology stands poised to play a crucial role in overcoming these challenges. Artificial intelligence (AI), fuelled by a robust foundation of shared data, holds the potential to unlock valuable insights for driving organisational transformation towards a more sustainable future.

Minimising Waste by Advancing Supply Chain Partnerships and Implementing a Circular Business Model

Waste management has always been a crucial issue for the chemical industry, and the future holds only increased pressure. Thankfully, circular business models are emerging as powerful tools to minimize waste and create value.

These models go beyond recycling – they rethink processes and products to keep materials in use for longer. The benefits are multifaceted: reduced cost, lessened dependence on volatile raw materials, and, of course, improved sustainability.

Unsurprisingly, our research shows an industry embracing the circular shift. A whopping 84% of respondents are actively developing or planning circular models. Sustainability targets (66%), legal requirements (50%), and cost reduction (44%) are the top motivating factors.

However, this transformation isn't without its hurdles. Building a compelling case for investment and bridging organisational silos between supply chain and sales teams are key challenges, reported by 61% and 47% of respondents, respectively.

Effective circularity demands seamless communication and collaboration across all functions. The good news? Industry leaders are aware of this, highlighting it as a crucial focus area as they navigate this exciting new territory.

Combining Emission Reduction with a Wider Company Approach to Achieve Sustainability and ESG Goals

Reaching net-zero emissions requires a united front within companies and across industries. Our research shines a light on how chemical manufacturers are tackling this challenge, emphasizing two key aspects:

1. Data-Driven Fleet Management:

Optimising internal fleet management is crucial, and respondents highlight enhanced data collection and analysis as the top driver of emission reduction efforts. This means a better understanding of transportation's impact and identifying specific areas for improvement.

2. Collaboration with External Partners:

Beyond internal efforts, partnerships with transportation providers are seen as paramount, with 63% of respondents acknowledging their vital role in building a greener transportation network. This collaboration takes two main forms:

Improving Supplier Emissions: Chemical manufacturers are working with suppliers to decrease their transportation emissions, demonstrating a commitment to tackling shared challenges throughout the supply chain.

Data-Driven Collaboration: Partnering with data providers enhances performance assessment, allowing for more informed decision-making and targeted sustainability initiatives.

However, collaboration comes with its own set of hurdles. Lack of proper infrastructure for emission tracking, limited availability of affordable sustainable solutions, and data-sharing reluctance from providers are some of the roadblocks cited by respondents.

The message is clear: collaboration is essential, especially considering the significant portion of emissions that fall under Scope 3 for chemical companies. Addressing these challenges and fostering stronger partnerships with transportation providers will be key to achieving emission reduction goals in the years to come.

Download the full report for free now by clicking here. The topics in the report will also be covered in detail at the LogiChem event. To download the event agenda, click here.