Driving Sustainable Chemistry: Overcoming Challenges and Harnessing Opportunities in the Chemical Industry

Driving Sustainable Chemistry: Overcoming Challenges and Harnessing Opportunities in the Chemical Industry

Speaker Interview with Joel Tickner from Change Chemistry

 

Joel Tickner, Executive Director, Change Chemistry

CIEX: Without giving too much away – what is the core message of your talk and what would you like delegates to remember?

Joel: Commercialization and adoption of sustainable chemistry are challenging given the incumbency of existing chemicals that are integrated into global supply chains, capitalized and whose uses have been optimized over decades. Add to this the fact that R&D and manufacturing CAPEX costs are high and value chains are reluctant to absorb the higher cost of more sustainable options.  Notwithstanding this, manufacturing value chains MUST transition to safer and sustainable chemistry – our very future depends on this.  We will discuss the investments, incentives, coordination, and collaboration needed to incentivize this transition and accelerate the market uptake of safer and sustainable chemistry.

 

CIEX: What motivates you to join CIEX this year?

Joel: There is a seismic shift happening in the chemicals sector right now driven by global environmental challenges such as climate change, chemical and plastics pollution and resource depletion as well as supply chain and feedstock disruptions post-pandemic.  These present unique opportunities to reshape the trajectory of this industry and the sectors that depend on it.  Progress against every dimension of sustainability – GHG reduction, circularity, plastics pollution, biodiversity protection, elimination of toxic substances and environmental justice – depends on the availability of safer and sustainable alternative chemistries that perform, are available at scale and are cost-competitive. Understanding the challenges the industry faces to reshape itself in the next decades as well as key levers and enablers for change will provide critical insights into the types of programs, incentives, and collaborations necessary for this transformation.

 

CIEX: With deglobalization, circularity and the energy transition as key trends currently shaping the chemical industry, what are the challenges to overcome and opportunities to harness?

Joel: Circularity is certainly a key trend shaping the future of the chemical industry.  Importantly, this industry’s ambitious and necessary circularity goals will require unprecedented levels of R&D spending to fuel innovation and public and private sector investment to build out novel manufacturing capabilities.  However, this can be at odds with this industry’s relatively low levels of R&D spending and investment when compared to the pharma and high-tech sectors.  For progress to be made, governments and the finance sector will need to be willing to take risks and invest in new safer, more sustainable chemical processes and products available at scale.  It is also important that we move forward on our efforts to de-fossilize this industry and address the toxicity of many incumbent chemistries, the vast majority of which were designed for cost and performance, not health and safety.  This is a critical issue, particularly in the US where environmental justice is an increasingly important Administration priority.

Circularity, deglobalization, de-fossilization and toxics reduction will require new frameworks to increase value chain collaboration, new funding programs to enhance innovation,  public-private sector partnerships to deploy risk capital along the various stages of technology commercialization and incentivizing policy frameworks that facilitate market entry of safer and sustainable chemistry technologies.

 

CIEX: What is one project or initiative in the industry, outside of your own company and associations that really inspired you recently, and why?

Joel: The US EPA Safer Choice program is a critical driver in the development and incorporation of safer chemicals into consumer goods.  I see this program as an opportunity for everyone from chemical manufacturers to formulators and brand owners to be recognized for their commitment to sustainable innovation and to benefit from their Safer Choice-branded products being distinguished within their competitive peer group.  Safer Choice imparts economic value to sustainability. In parallel, the SCIL list provides a clear recognition of safer chemistries for specific functional uses.

Sector-wide efforts, such as the Zero Discharge of Hazardous Chemicals (ZDHC) and Clean Electronics Production Network (CEPN), are demonstrating that downstream sectors are willing to collaborate to create unified demand signals that change chemistry.  These closer-to-consumer and brand-conscious companies can create the demand or pull that engages the chemicals sector more effectively in developing solutions.  As those solutions often require significant investment, organizations like Change Chemistry can help to understand the barriers at a sectoral and systems level and drive the investments and collaborations necessary to effect change.

 

CIEX: If the future of the chemical industry is high-tech, low carbon – what are 3 essential elements needed today, to realize this?

Joel: The future of the chemical industry is not just high-tech and low-carbon, it also has to be low toxicity.  Three essential elements needed today include:

  • Investment in demonstration, deployment and adoption of safer, more sustainable chemistries – reducing the “green premium” for these products.  Chemical suppliers can make safer, more sustainable chemistries but if they aren’t purchased and there is no market, then they can’t grow.  We have seen in certain sectors – consumer products for example, that there is an appetite for sustainable chemistry and consumers are willing to pay more to protect their families and communities.
  • Greater government coordination and public-private collaboration to drive growth in sustainable chemistry. Change Chemistry built a coalition to advance the passage of the US Sustainable Chemistry R&D Act that established an interagency strategy team and requires the development of a strategic roadmap to coordinate sustainable chemistry R&D and investments across the federal government.  The soon-to-be-released strategic roadmap needs to create clear directions for future coordination and investment.
  • Greater supply chain coordination to advance sustainable chemistry.  We have found through 18 years of Change Chemistry that there is often a disconnect between actors in the value chain and collaboration is key to accelerating innovation and addressing barriers.  Change Chemistry’s first-of-its-kind Collaborative Innovation Challenge for Safe and Effective Preservatives in Consumer Products, which engaged 11 brands, 2 retailers and 6 chemical suppliers demonstrated the value of “collaborative innovation” to drive solutions in a pre-competitive space. The effort not only reshaped R&D in preservatives, it also accelerated the development of more sustainable solutions. 

CIEX: Thank you so much, Joel!


The 10th Annual Chemical Innovation Exchange Summit (CIEX) is created for C-level R&D, Innovation and Sustainability experts from the consumer, industrial and speciality chemical sectors.  This intimate event is about creating value – bringing the right people together, creating synergies, and actively connecting with potential partners.  CIEX will take place in Indianapolis on October 23-24. Among attending companies: Hexion, Lubrizol, Monument Chemical, Celanese, US DOE, BASF, ACS, Advansix, The Heritage Group, and many more.

Secure your spot at the CIEX Summit! Connect with industry leaders and innovate together. Register today!

Driving Sustainable Chemistry: Overcoming Challenges and Harnessing Opportunities in the Chemical Industry

Revolutionizing the Chemical Industry with Lubrizol

Revolutionizing the Chemical Industry: Interview with CIEX 2024 speaker –Abhishek Shrivastava, VP of Innovation & Decision Science, Lubrizol

CIEX: Without giving too much away – what is the core message of your talk and what would you like delegates to

Abhishek Shrivastava,VP Innovation & Decision Science Lubrizol

Abhishek Shrivastava,
VP Innovation & Decision Science
Lubrizol

remember?

Abhishek: To continue to innovate in the chemical industry, we must work together and be amenable to change. Those who stay relevant are agile—we must think differently about data, keep sustainability at the heart of the entire value chain and work together to enable progress.

 

CIEX: What motivates you to join CIEX this year?

Abhishek: I am excited to join CIEX this year because I believe it is a great opportunity to learn from and network with some of the most innovative and forward-thinking leaders in the chemical industry. I am eager to hear about the latest trends, challenges and solutions that are shaping the future of our sector. I am also looking forward to sharing my own insights and experiences on how to drive digital transformation and sustainability in the chemical value chain. Together, we can create more value and impact for our customers, society, and the environment.

 

CIEX: With deglobalization, circularity and the energy transition as key trends currently shaping the chemical industry, what are the challenges to overcome and opportunities to harness?

Abhishek: Adapting to these trends requires building more resilient and flexible business models, as well as collaborating with stakeholders across the value chain to ensure compliance and efficiency, including:

  • Leveraging digital technologies and data analytics to optimize production processes, reduce waste and emissions, and enhance customer experience. 
  • Investing in innovation and R&D to develop new products and solutions that meet the evolving needs and expectations of the market.
  • Accelerating the transition to renewable energy sources and low-carbon feedstocks, such as bio-based or recycled materials, to reduce the environmental footprint and improve the industry’s sustainability. 

 

CIEX: What is one project or initiative in the industry, outside of your own company and associations that really inspired you recently, and why? 

Abhishek: I am really inspired by an adjacent industry, Pharma. What inspires me is how Pharma uses data and AI to accelerate drug discovery with readily available libraries of molecules and key properties needed for docking with a target protein. It is a great example of how AI and data can be used for speed to market in other industries. 

Another example is Agricultural Tech. It is very inspiring to see the use of advanced technologies like drones and computer vision in initiatives like precision farming, leading to more sustainable farming practices.

 

CIEX: If the future of the chemical industry is high-tech, low carbon – what are 3 essential elements needed today, to realize this?

Abhishek: Three essential elements that are needed today are:

  1. Innovation: The development and adoption of new technologies and processes that can reduce emissions, increase efficiency, and create value from waste streams. 
  2. Collaboration: The cooperation and coordination among different stakeholders, such as key industry players, policymakers, customers, suppliers, academia, etc., to foster a supportive environment and facilitate the scaling up and deployment of low-carbon innovations.
  3. Transformation: The strategic and systemic shift in the business models, markets and culture of the industry to embrace circularity, decarbonization and customer-centricity.

CIEX: Thank you very much – we look forward to hearing more at CIEX 2024 in Indianapolis!

 

 

Join us at CIEX Summit 2024 on October 23-24 in Indianapolis, USA to hear from Abhishek and other industry experts from Dow, Braskem, Cargill, Huntsman, Ashland, Levaco Chemicals, Cirba Solutions, and many more. Global chemical innovators will showcase cutting-edge technologies, organizational transformations, and mindset shifts in an evolving industry. Access the full agenda and registration details here: https://ciexsummit.com/. 

Chemical Innovation Exchange Conference 2024

Bridging the gap between idea and industry – BASF Venture Capital

How does BASF invest in global start-ups? Here is our summary of the presentation about BASF Venture Capital given by Markus Solibieda (Managing Director) during CIEX 2020

About BASF Venture Capital

The vision at BASF venture capital is to catalyze changes for BASF and the whole chemical industry. The organisation is following a global capital venture approach and has been doing so since 2001. This makes BASF Venture Capital one of the oldest European corporate venture companies.

There were only seven such entities in Europe when BASF started two decades ago. Now there are over 100 corporate venture capital units in Germany alone. In addition, the company has a team of 14 in different parts of the world, with an accumulative fund size of $250 million, an evergreen fund structure.

Markus Solibieda mentioned that BASF venture capital funds in A and B rounds and also caters to gross capital. However, their primary focus stays on Series A and Series B.

Furthermore, the managing director mentioned that the company does minority shares, and ticket sizes range between $1 million and $5 million in the first round. They also continue to support in other rounds, especially with successful companies

Investment strategy at BASF

Here you will learn about where their investments go. Additionally, the business models that are on top of BASF’s priority list include the following.

  • New Business Models, Artificial Intelligence and Digitalization

Markus Solibieda revealed that BASF’s target market and business sectors include digital farming tieing into its $9 billion crop protection business.  Another example is 3D printing, and BASF Venture Capital is very interested and excited about this industry. Markus Solibieda added that the company also looks at how to enhance the existing business models with digital tools. Another important aspect for the company is understanding how their innovation activities may face disruption due to new technology.

  • Platform/Ecosystem-Based Digital Business Model

BASF Venture Capital also focuses on how the new platforms will change the way their industry works in terms of distribution channels. BASF expects that there is a traditional value change in the chemical industry. They believe this will continue to happen by players in the USA and China with specialized industry platforms coming up.

Markus Solibieda emphasized that the company would like to notice how the new players in the industry will influence the change in the industry. Furthermore, the BASF Venture Capital wishes to learn how the use of platforms and consumer behavior is going to lead this change.

  • Chemistry both New and Sustainable Materials

These areas of interest include new chemicals in the market, including innovative chemical processes. Sustainable chemistry is another aspect of the industry, including battery storage and energy storage. In this sector, BASF would like to explore how they can foster the development of the chemical industry towards a more sustainable solution and contribute.

Investment Portfolio

Here are the following areas that fall under BASF’s portfolio

  • Digital farming – interesting investments
  • Artificial Intelligence (platforms/software) –investments in Europe, North America, and China
  • 3-D Printing – investments in the USA, China, and Germany
  • Sustainability – Biodegradable plastics, high-performing large volume storage batteries, etc.
  • Advanced Material – an extension of our current business activities
  • Biotechnology
  • International Funds – the company invests in funds and prepares grounds in the regions that are not so familiar with India. A year ago, they started an office with fund investment in Ag Tech and Food Tech as local partners in India. Similarly, in Brazil, they are working with SP Ventures as local partners in the country and to look at interesting opportunities.

8 Strategies for Corporate Venture Units

Here are the strategies BASF Venture Capital believes other companies can use to work with their respective corporate venture units. These are not just for chemical industries but all companies in general. However, Markus Solibieda shared these strategies as not some scientific discovery but a result of years of experience and observation while working with various strategies.

      1.    The Defensive Passive Strategy

In this strategy, a company tries to look at other players out there in the market and try to understand what will happen in the future. However, an observing company will only be scouting and not play an active role. They may collaborate with other businesses but will not be too active to implement anything as of yet.

      2.    Defensive Active

Here a company would still try to understand what is happening in the industry, especially what the new threats are. Then, they would invest in the businesses with disruptive characteristics and who could be challenging competitors in the future.

      3.    Optimization of Internal Processes

This strategy includes a young company or vendor developing something that may help your company in becoming efficient in processes. That is simply looking at who is working a new way to do maintenance such as maintenance tools, HR software.

Markus Solibieda says that in this strategy, you reach out to these companies to seek assistance as a new client and ask them to show you how to do it. The requesting company must show eagerness to learn about how this unique piece of tech can help improve and optimize its processes.

      4.    Pre M&A

This is one of the most popular strategies in the corporate venture capital domain. Companies such as Cisco and Intel have really built a whole legacy of acquisitions based on the Pre M&A approach.

The idea is to take a minority first, look at the business, and understand better how the business and management are performing. Then an acquiring company may decide if they wish to take the majority in that business.

      5.    Exploratory/Visionary

A different strategy that helps a company understands about the game-changers in the industry. For example, you learn about what will change in the next 5 to 10 years, such as quantum computing, fuel cell technology, etc.

      6.    New Business building

According to Markus Solibieda, this is a more pragmatic approach where a company invests in a business they believe has the potential to become a corporate mother company. This is about supporting startups with the potential to grow beyond their current size

      7.    Existing Building Buildup

This strategy allows companies to invest in existing businesses and reach out to their existing consumer by using digital tools. This is more of a customer-centric approach to building a better relationship with them. So companies primarily work with startups that have tools that allow a smooth implementation of this strategy.

      8.    Business Extension

This involves working with or investing in business models who wish to extend their current business lines. For example, a chemical company that wishes to provide services like data storage, etc. Other goals may include PR goals, HR goals, financial asset management, etc.


You can find the recorded presentation on our CIEX blog. It also contains more than 100 case studies and images captured from past CIEX conferences. Your next chances to join a CIEX related event are during our Virtual – CIEX Data Summit (May 10, 2022) and live CIEX (Frankfurt, October 5 & 6), 2022.

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