Deeper Insights on Sustainability
Views of World-Renowned Scientists and Sustainability Advocates
In the last edition (3rd) of Chemical Industry Digest Annual on Sustainability, we had views from leading chemical industry CEOs, defining the different dimensions of sustainability in the chemical industry.
This time, for this 4th edition of the Sustainability Annual, Chemical Industry Digest, quizzed leading scientists and sustainability advocates on adoption and incorporation of sustainability practices in the hydrocarbon, chemical and allied industries.
Their responses published here provide deep insights on the subject.
The gist of it is that the chemical industry has to move quickly beyond environment-friendly processes and embrace proactively and wholeheartedly the principles of sustainability and incorporate it in business and industry.
This needs a huge transformational shift in mindsets and attitudes from top management to virtually all other personnel in the chemical industry. And it has to roll all along the entire manufacturing value chain from suppliers to the end-users. Equally, it would need transformational changes in business and manufacturing models. If looked at positively it will drive innovation and concomitantly open up new vistas in business opportunities.
Chemical Industry Digest has been privileged to obtain views of India’s leading and internationally renowned scientist, Dr R A Mashelkar.
Dr R A Mashelkar, FRS
National Research Professor & Former Director-General of CSIR
Chemical Industry Digest (CID): Experts state that the survival and future of the chemical industries would depend on how quickly the industry adopts sustainability as its main principle or operating theme. To what extent is this a critical factor? Can the industry adopt sustainability incrementally? Do they need to totally revamp? Would they have to change their manufacturing & business models?
Dr R A Mashelkar (RAM): I strongly believe the industry needs solutions that are no longer just environment-friendly but fundamentally shift the paradigm and address both the ecology and the economy. The market for “green” chemistry is already expected to reach $100 billion globally by next year. The chemical industries no longer have the luxury of adopting sustainable goals incrementally, they have to innovate and adopt breakthrough solutions. As I have mentioned on multiple occasions, leapfrogging is no longer an option, the chemical industry must pole vault. The digital revolution is another critical enabler which can provide a plethora of solutions for driving sustainability.
India, in particular, needs to jump the development cycle – and we have done this many times in different industries. For example, we jumped the landline generation and went straight to the mobile phone era. Today, we have the same opportunity with power generation – we could transition from predominantly coal to the optimum mix of renewable energy and non-renewable energy. Also, the Indian chemical industry must strive to become the world leader in setting the sustainability example – both in policy and in practice.
CID: An integrated approach always provides the best results in any area. What should be the elements of such an integrated strategy to implement sustainability in the chemical industry?
RAM: In my book titled `Leapfrogging to pole vaulting: Creating the magic of a radical yet sustainable transformation’, I have laid out the contours of an integrated strategy with assured success.
ASSURED can be a ‘one word integrated strategy’ for the chemical industry to implement sustainability. The industry needs to achieve accelerated inclusive growth and the ASSURED framework would be a great tool for this. The framework can even be used for judging an institution, an enterprise irrespective of its size.
An integrated strategy to implement sustainability in the chemical industry could be based on the following elements:
A (Affordability) is required to create access for everyone across the economic pyramid, especially at the bottom.
S (Scalability) is required to make a real impact by reaching out to every individual in society, not just a privileged few.
S (Sustainability) is required in many contexts; environmentally sustainable, economically feasible, socially acceptable and adaptable to policy changes.
U (Universal) implies user-friendliness, so the innovation can be used irrespective of the skill levels of an individual.
R (Rapid) refers to speed. Inclusive growth cannot be achieved without the speed of our action matching the speed of our innovative thoughts!
E (Excellence) in technology, product quality, and service quality is required, not just for the elite few but for everyone in society.
D (Distinctive) innovation is required because there is no use of creating me too’ products and services.
All the above elements provide for a powerful framework to achieve the integration of environmental concerns and sustainable development, thereby promoting environmental protection, competitiveness, innovation and employment.
CID: Currently most of the chemical industry is in the ‘take-make-dispose’ mode of manufacturing. Can this shift to a cradle to cradle (circular) manufacturing or stepwise]w9a by first getting into greener processes with less environmental distress & then into circular manufacturing. Are circular processes feasible? – only in some cases or majorly?
RAM: The ‘take-make-dispose’ thinking clearly has its limitations. The current state of affairs of our consumption of the non-renewable resources and adding waste to our air, land, and water is just not sustainable. The chemical industry and its innovations can lead the way in this change.
However, circular manufacturing cannot be restricted to a company’s own operations. It needs to run across the value chain to embrace and provide value to customers and suppliers. This needs large amounts of renewable energy and significant investments.
I am optimistic about the change happening sooner than later, primarily driven by technology-led to disruptive innovation. However, we also need to realise that the change of moving to a whole new manufacturing process across the industry will not happen overnight.
We are already seeing commendable work going on across the globe. One such example that I can think of is the Waste2Chemicals initiative. This is a consortium of 8 international companies, including Enerkem, Air Liquide, and AkzoNobel, which intend to begin joint production of bio-based methanol and ethanol from municipal waste. The technology is compatible with existing waste infrastructure and is intended to enable wastes that cannot be mechanically recycled to be converted into fuels and high-quality chemicals via synthesis gas.
CID: If chemical companies have to revisit their manufacturing processes to make them on sustainable lines, which areas should they start in the manufacturing cycle & how: Products (Restructuring product portfolios)? Processes (Green Chemistry)? Plant & Equipment (Improving Efficiency)? Starting Materials (Biomass/Renewables)? Any other?
RAM: chemical companies need to have a more holistic approach. Embracing sustainability gives chemical producers an opportunity to optimize their manufacturing processes, increase vertical integration of the supply chain, reduce resource consumption, and gain greater control over the entire product lifecycle, including the ability to sustainably manage the end-of-life of a product.
I believe companies should start with one or two initiatives and expand their capabilities and move strategically along the sustainability spectrum.
I would like to highlight the example of Michelin, where I serve on their Corporate Innovation Board. In ba id to strengthen their resolve for circular manufacturing, Michelin acquired U.S. specialty chemicals company Lehigh Technologies, which produces a material called micronized rubber powder (MRP) from waste tires. These powders are capable of replacing oil- and rubber-based feedstocks in a variety of applications, including the production of high-performance tires. This is a perfect example of ca losed-loop, zero-waste process that manufacturers need to pursue as they move towards circular manufacturing.
CID: Since innovation is needed across the manufacturing value chain to achieve sustainability, can the advent of Industry 4.0 technologies (IoT, Artificial Intelligence, Machine Learning, Data Analytics etc) give a fillip to accelerate innovation/sustainability.
RAM: The chemical industry is already entering a new phase with Chemistry4.0, in which digitalization, circular economy, and sustainability are playing keyroles. Digital technologies are already helping chemical manufacturers develop the low-carbon innovations which they need to thrive in the Circular Economy. Europe and in particular Germany is at the fore-front of applying Industry 4.0 to accelerate sustainable and inclusive innovations.
AI is being used for rethinking standardized processes as continuously adaptive and applying AI to manage processes, getting the maximum out of the data to solve previously unsolved problems and reveal hidden patterns and also in shifting toward an AI-enabled culture and reskilling employees to collaborate with machines.
Further, chemical companies can realise the full benefits of reimagined processes if with their customers, they keep on exploring the potential of intelligent virtual agents, for internal use and customer service desks. They can sweat their assets far more by creating an “intelligent plant” utilizing cognitive learning for predictive insights.
Predictive maintenance has emerged as a significant use case for Industry 4.0 technologies. The sensors collect real time bigdata, which is then analysed and specifically developed algorithms predict machine failures as well as their cause. This way production losses can be avoided through appropriate maintenance measures, significantly reducing the costs and time required for maintenance.
CID: Do you think there is sufficient awareness on the importance of sustainability in the industry from top management to employees. Any additional steps required to increase awareness and convert awareness into action?
RAM: Unfortunately, it is the history of accidents, and the resultant damage to human health, flora and fauna and the environment which has created awareness on the importance of sustainability. In the last four decades, the number of manmade disasters nearly tripled, while the number of natural disasters surged sevenfold. Many regulations and awareness initiatives have sprung up as a result of these horrific accidents.
I have personally been involved in looking closely at human tragedies in India Bhopal gas tragedy, Maharashtra Gas Cracker Complex accident. As humans, we have suffered far too many such disasters and their consequences to turn a blind eye to them.
I am glad that globally, chemical companies are showcasing their sustainability intent. A quick review of the disclosures by leading chemical companies points to sustainability risks and opportunities being mainstreamed in business operations. Many of these large chemical companies are being proactive in their commitments to move to ‘zero’– zero waste, zero-emission or zero hazardous chemicals. The leadership of all major companies have taken initiatives to strengthen their engagement with the stakeholders (internal and external). Digital technologies and primarily social media are becoming an increasingly important tool is this aspect.
Wh ile companies do their bit, I believe awareness initiatives targeted at school and academic institutions should be undertaken, which will create huge human resource who are sensitive to sustainability and action oriented in their approach.
CID: While there are the Dow Jones Sustainability Index & other Indices by professional bodies like AIChe, what according to you should be the benchmarks for measuring sustainability? To what extent does obtaining a good rating facilitate a company’s business?
RAM: I think the era of ‘holding’ businesses accountable or benchmarking them is far gone. Today, businesses have to be self-accountable and create cultures that deliver real improvements in health, safety and environmental performance, and have benefits to all. Take activist shareholders – they are a part of the company, and have played a big role in holding corporates accountable. Real, organic change always comes from within.
