icis genomatica sustainability research
DESCRIPTION
Research into the adoption of sustainable chemistry by ICIS and GenomaticaTRANSCRIPT
Research among chemicals industry professionals to measure attitudes towards sustainability
Prepared by:Heather Macleod, Reed Business Insight
On behalf of:Joey Marquart, Genomatica
Sustainability Research
June 2009
Reference Number: 5004
2
56%
53%
38%
The environmental qualities ofend-products
The carbon footprint of internalprocesses
The energy consumptionassociation with external
processes
Company definition of sustainability
Base: All respondents (977)
‘Which of the following describes how your company defines sustainability?’
3
67%
65%
45%
27%
27%
45%
6%
8%
10%
The environmental qualities ofend products (859)
The carbon footprint of internalprocesses (822)
The energy consumptionassociation with external
processes (809)
Very important Somewhat important Not at all important
Importance of sustainability factors
Base: All respondents (individual base sizes shown)
‘Please rank each of the following in terms of importance towards sustainability as it applies to your company?’
4
46%
24%
10%
7%
5%
7%
Company wide priority
Management priority
Business unit-specific
Espoused mostly by a few "green"advocates within company
PR priority only
Not a priority
Company’s sustainability priorities
Base: All respondents (863)
- Manufacturing – 5 mentions- Oil – 5 mentions- Chemicals – 3 mentions
‘Which of the following best describes your company’s top business priority in terms of sustainability?’
53%
39%
34%
30%
24%
18%
16%
15%
12%
20%
Raw materials sourcing/ pricing
Strategic cost reductions
Maximising cash flow
New product development
Energy usage/ pricing
Improving health and safetyperformance
Reducing enivornmental impact ofoperations
Managing inventory
Increasing shareholder value
Reducing environmental impact ofproducts
5
Most critical short-term priorities
Base: All respondents (849)
‘Which of the following are the most critical short-term priorities for your company?’
44%
34%
34%
32%
25%
23%
21%
19%
9%
23%
New product development
Increasing shareholder value
Raw materials sourcing/ pricing
Strategic cost reductions
Reducing enivornmental impact ofoperations
Maximising cash flow
Improving health and safetyperformance
Energy usage/ pricing
Reducing environmental impact ofproducts
Managing inventory
6
Most critical long-term priorities
Base: All respondents (825)
‘Which of the following are the most critical long-term priorities for your company?’
7
Company engagement with sustainable chemistry practices
Base: All respondents (836)
No 25%
Yes57%
Don't know18%
‘Is your company already engaged in sustainable chemistry practices?’
‘Is your company maintaining the commitment to sustainable chemistry practices during the current
economic downturn?’
Base: Those who are already engaged in sustainable chemistry practices (468)
Yes 93%No 4%Don’t know 3%
8
Whether an economic advantage to switching chemical manufacturing process inputs to renewable feedstocks
Base: All respondents (825)
No 31%
Yes46%
Don't know23%
‘In your opinion, is there an economic advantage to switching chemical manufacturing process inputs to renewable feedstocks, like sugars, starches or biomass?’
9
Whether companies should reduce exposure to petroleum-based commodity market
Base: All respondents (821)
No 30%
Yes57%
Don't know13%
‘In your opinion, should your company reduce its exposure to the petroleum-based commodity market?’
10
The future of sustainable chemical processes within company
Base: All respondents (804)
‘What of the following best describes your view of sustainable chemical processes within your company in the future?’
43%
31%
6%
9%
11%
Will be a priority in the long-term
Is already a priority
Is a priority in the short-term
Will not be a priority
Not sure
58%
44%
36%
26%
Cost
Technical capabilities
Adapting infrastructure andprocesses
Attitude/ awareness of internalmanagement
11
Most prohibitive component of a sustainable chemical program
Base: All respondents (800)
‘What do you perceive as the most prohibitive component of a sustainable chemical program?’
12
Length of time to launch a sustainable programme to using it at a commercial volume
Base: All respondents (787)
‘In your opinion, how long would it take from launching a sustainable program to using such processes at commercial volume?’
39%
47%
10%
4%
Less than 5 years
5-10 years
10-15 years
More than 15 years
Average: 6.5 years
13
Base: All respondents (796)
Not at all important (1)7%
Important (3)41%
Very important (4)30%
Not very important (2)22%
Importance to company being a sustainable chemicalsfront-runner
‘How important is it for your company to be a front-runner in terms of sustainable chemicals?’
Mean score: 2.9
14
Customers’ interest in sustainably produced chemicals
Base: All respondents (782)
No43%
Yes57%
‘Have your customers expressed interest in sustainably produced chemicals?’
17%
12%
11%
7%
5%
4%
4%
3%
3%
3%
4%
BASF
Dow
DuPont
Cargill
BP
Bayer
ADM
Nature Works
Shell
Clariant
Proctor & Gamble
15
Spontaneous awareness of sustainable chemical companies (mentions 3%+)
Base: All respondents (304)
‘When you think of sustainable chemicals, which companies come to mind?’
16
Base: All respondents (771)
51%
49%
22%
15%
13%
Sugars / othercarbohydrates
Plant origin
Bacteria
Yeast
Algae origin
Feedstocks and agents incorporated into processes
‘Which of the following feedstocks or agents does your company incorporate into its processes?’
None 53%
1 or more 47%
Base: All respondents incorporating feedstocks or agents into processes (366)
17
Base: All respondents (772)
53%
52%
32%
26%
23%
12%
8%
17%
Future pricing of feedstock
Availablility of feedstock
Need to invest in new/retrofittedfacilities
Chemicals won't be the same
Might not be predictable,repeatable
Might not scale
Need to train staff
None of above
Reservations about sustainable chemistry processes‘Which of the following reservations do you have about sustainable chemistry processes?’
18
15%
7%
5%
4%
25%
3%
3%
7%
CEO/ Chairman/ President
VP
A/O directors
Executive VP
General Manager
Purchasing Manager
Marketing Manager
Sales Manager
Job title (mentions 3%+)
Base: All respondents (688)
Strategic functions 31%
Operational functions 38%
‘Which of the following job titles best reflects your position?’
19
37%
34%
34%
16%
16%
9%
12%
Speciality chemicals
Petrochemicals
Polymers
Agrochemicals / Fertilisers
Fine chemicals
Pharmaceuticals
Commodity Inorganics
Segments within which company operates (mentions 9%+)
Base: All respondents (748)
‘In which of the following segments does your company operate?’
20
Base: All respondents (758)
15%
8%
12%
11%
40%
14%
$10billion or more
$5billion - $10billion
$1billion - $5billion
$500million - $1billion
Up to $500million
Don't know
Total global revenue of company
Average $3.8 billion
‘What is the total global revenue of your company?’
21
Base: All respondents (745)
32%
31%
21%
5%
4%
3%
4%
Europe
North America
Asia
Middle East
Australasia
South America
Africa
Region company based in‘In which region is your company based?’
22
Key findings / 1 … The most critical short-term priorities were found to be raw materials sourcing/pricing, strategic cost
reductions and maximising cash flow. While from a long-term view, new product development, increasing
shareholder value and raw materials sourcing/pricing were the priorities. Sugars/other carbohydrates are the
feedstocks and agents most likely to be incorporated currently into processes. Over half of company’s
define sustainability as “environmental qualities of end products” or “carbon footprint of internal processes”.
Just under half say that sustainability is a company wide priority, although another quarter say it is a
management priority. Two in three indicate environmental qualities of end products and carbon footprint of
internal processes are very important factors towards sustainability.
Over half of respondent companies are already engaged in sustainable chemistry practices, with the
significant majority of these maintaining this commitment during the economic downturn. Indeed almost
three quarters of the sample feel it is important for their company to be a front-runner in terms of sustainable
chemicals. Three in ten are already giving sustainable chemical processes priority, while four in ten say that
it’s a long term priority.
23
Key findings / 2 … BASF was the company most likely to spring to mind spontaneously when thinking of a sustainable
chemical company.
The greatest reservation around sustainable chemistry processes is future pricing of feedstock. Cost is the
most prohibitive component of a sustainable chemical program, followed by technical capabilities. Almost
half consider there to be an economic advantage to switching chemical manufacturing process inputs to
renewable feedstocks, while almost six in ten feel that their company should reduce its exposure to the
petroleum-based commodity market.
Respondents indicated that almost six in ten of their customers had expressed interest in sustainably
produced chemicals.
In terms of timescale, the majority (almost half of the sample) feel it would take less than 10 years to go
from launching a sustainable program to using such processes at commercial volume. However, over a third
believe it would take less than 5 years. The average is 6.5 years.