Covestro is making significant strides in advancing the circular economy by addressing the entire value chain to create customer value.
The company is integrating economic viability into its innovation projects and circular solutions, ensuring investments are both sustainable and profitable.
Achieving this requires collaboration of Covestro and Deloitte among consumers, producers, regulators, and technical experts. To facilitate this transformation, Covestro emphasizes new approaches to product launches, skill development, and employee expertise.
Collaboration with Monitor Deloitte
In 2023, Covestro and Deloitte partnered to launch the “Monetize Circular Economy” project. This initiative of introduced external perspectives and advanced methodologies into Covestro’s development process.
The project had two core objectives:
*Develop a scalable framework for marketing and commercializing sustainable, circular products and solutions.
*Create added value through customer partnerships by jointly identifying opportunities for sustainable innovation.
*Through collaboration, Covestro and Deloitte built a model rooted in Covestro’s ongoing projects across various business entities.
Establishing a Scalable Framework
A joint team of Covestro and Deloitte experts, led by chemicals specialist Kai Göbel and Dr. Amadeus Petzke, Head of Pricing and Monetization, analyzed concrete circular economy projects across Covestro.
They selected three pilot projects as a foundation for crafting a marketing and business development framework. This framework now serves as a blueprint for monetizing circular products and advancing new business opportunities.
“Circular solutions must be profitable to be implemented. Economic incentives that motivate or demotivate stakeholders must be clearly identified and addressed,” said Sucheta Govil, Chief Commercial Officer at Covestro.
She emphasized the need for circular thinking, market understanding, and employee creativity to drive this shift effectively.
Recognized Success
The innovative approach earned Covestro the Best of Consulting Award in the Chemicals, Pharma and Healthcare sector from WirtschaftsWoche in 2024.
Integrating the Value Creation Cycle
Covestro’s monetization efforts focus on integrating the entire value chain, shifting from individual value creation steps to a holistic circular economy perspective.
“It’s not just about selling circular products,” explained Bozidar Radner, Deloitte’s global key account manager for Covestro.
Radner added, “It’s about creating sustainable value along the value chain with partners and customers. Designing a framework based on real Covestro industrial projects was an exciting challenge. Winning the award validates our success.”
Developing the Monetization Framework
Over 100 Covestro employees contributed to identifying key requirements for monetizing circular solutions. Using a structured four-phase lab approach with regular coaching and reviews, the team advanced pilot projects while refining the framework.
These efforts produced methodologies, case studies, and sequencing strategies, all anchored in real-world pilots.
The Covestro and Deloitte collaboration also resulted in an internal Covestro platform featuring resources, best practices, and tools.
This platform supports business entities with customer outreach ideas, legal guidelines, and actionable insights for accelerating circular solution commercialization.
Building Awareness and Expertise
To ensure the framework’s success, Covestro focused on building employee awareness. A global webinar series promotes knowledge-sharing among internal circular economy experts, fostering continuous development of market entry strategies.
Additionally, the “Monetize CE Pioneers” group provides global expertise and cross-industry knowledge, empowering colleagues to embed circular economy principles in customer interactions.
A Vision for Continuous Development
By integrating circular economy concepts into every aspect of operations, Covestro is shaping a future where sustainability and profitability go hand-in-hand.
As per the press release, with a structured monetization approach and a growing culture of innovation, the company is poised to lead the circular economy transformation.
