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Trajectory for Petrochemical Industry 1. Managing Cash Flow and Weak Demand: Cost Competitiveness: Focus on maintaining low production costs, especially for companies with access to low-cost ethane feedstock like those in North America and the Middle East. This is critical in an environment of global oversupply and weak demand. Diversification: Look for opportunities to diversify product offerings, especially into areas with higher demand such as intermediates for gasoline markets, which are an exception to the oversupply issue. Demand Forecasting: Improve demand forecasting to better align production with market needs, minimizing excess inventory and reducing waste. 2. Improving the Supply Chain: Supply Chain Resilience: Enhance supply chain resilience by diversifying suppliers and logistics partners. This is crucial in managing disruptions and ensuring consistent supply. Integration and Optimization: Aim for greater integration within the supply chain. Companies with integrated supply chains (from raw materials to finished products) are better positioned to manage costs and efficiencies. Technology in Supply Chain: Invest in technology to improve supply chain visibility and agility. 3. Operating on Positive Cash Flow While Investing in Technology: Selective Investment: Prioritize investments in technology that offer quick returns on investment or significantly improve cost efficiency. Innovation in Materials: Continue investing in material technology innovations that could open new markets or improve product performance. Develop sustainable and recyclable materials, which are increasingly demanded by consumers and regulators. Strategic Partnerships: Consider partnerships with technology firms, research institutions, and startups to share the risks and rewards of innovation. 4. Addressing Sustainability and Decarbonization: Balancing Act: In the face of weak demand and inflationary pressures, it's essential to balance the need for immediate profitability with long-term sustainability goals. Strategic investments in decarbonization and plastics circularity should not be entirely shelved but carefully evaluated for their long-term benefits. Legislative Adaptation: Stay ahead of legislative changes, such as those related to emissions and plastics circularity. Being proactive can turn regulatory compliance into a competitive advantage. Investment in Recycling: Despite current economic pressures on recycling, larger polymer producers should continue acquiring recycling capabilities. This not only supports sustainability targets but can also be a valuable asset as the legislative environment evolves. 5. Navigating Regulatory Landscapes: Regulatory Engagement: Engage proactively with regulators, especially in Europe where there is a diminishing appetite for chemical investments. Understanding and influencing policy developments can help mitigate risks associated with new investments, particularly those aiming for a lower C footprint. #chemicals

🌱🔬 Exciting insights from McKinsey on the future of the chemicals industry! As the push for sustainability grows, capital markets are recognizing the value of green chemicals. Companies with low-carbon product portfolios and sustainable practices are being rewarded with better financial performance and stronger market positions. 📈🌍 By embracing innovation, managing risks, and reducing emissions, chemical companies can thrive in this evolving landscape. 🌿💼 #Sustainability #Chemicals #Innovation https://lnkd.in/gkPcWmW7

📣 𝗦𝘂𝗰𝗰𝗲𝘀𝘀𝗳𝘂𝗹 𝗲𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗼𝗻 𝗿𝗮𝗿𝗲 𝗺𝗲𝘁𝗮𝗹𝘀’ 𝘀𝘂𝗽𝗽𝗹𝘆 𝗰𝗵𝗮𝗶𝗻𝘀! In July 2019, SfC published its second research,  "Rare metals supply chains" (https://lnkd.in/evh8v6DD), on the social and environmental risks associated with the sourcing and use of rare metals and rare earths in certain specific production processes. We identified 12 companies potentially exposed to those risks in three sector: renewable energy (Vestas, Siemens Gamesa, Ørsted, Iberdrola, Nordex Group), automotive (Stellantis, Renault, Daimler Truck AG, BMW Group) and chemical sector (Johnson Matthey, Umicore, Solvay). All companies have been engaged by SfC members in the last four years. 1️⃣ In the first phase of the engagement, companies generally cooperated with SfC and the dialogue was mostly successful (read here the first engagement results: https://lnkd.in/dqk5Mjkw). However, the engagement identified some structural and common problems: 🔸 Audits almost exclusively concern direct (or “Tier 1”) suppliers, who are just intermediaries;   🔸Metal recycling is still at a very early stage: only 1% of the materials used are actually recycled. 2️⃣ Both issues were addressed in the second phase of the engagement, when companies were asked not only to disclose information (as in the first phase) but also to commit to specific suppliers auditing also beyond Tier 1 suppliers and recycling targets. ✅ The second phase delivered positive results for Siemens-Gamesa, Orsted, Daimler, Johnson Matthey and Solvay. ❌ For all the other companies targeted, there is still room for improvement, with some differences across the sectors. ➡ A summary with the final results of this engagement project is to be found here: https://lnkd.in/d-gWypsm. Etica Ethos Foundation (Switzerland) Meeschaert Fundación Finanzas Éticas Alternative Bank Schweiz Ecofi Bank für Kirche und Caritas eG Forma Futura Invest AG Fondazione Finanza Etica Aldo Bonati Matthias Narr Arnaud Lacaze Cesare Vitali Alix Roy Tommy Piemonte Louise Conze Ben Sturzenegger Alice Balmer

Chemical manufacturing businesses will have to adopt a multi-pronged approach in their race to become more sustainable. Several obstacles pose a threat to achieving success in sustainability endeavors, including pandemic-era supply chain issues, the rising cost of raw materials, complex regulatory requirements, and an inflationary operating environment. #chemicals #sustainability #manufacturing https://lnkd.in/e2tp3kGi

The range of catalysts and technologies for petrochemicals applications is extensive. And the drive to circular and renewable-based value chains continuously extends the boundaries of existing technologies. Improving the carbon footprint of petrochemical and downstream processes is at the heart of our catalyst development efforts. Many of our existing catalysts already support a low carbon footprint alternative for a specific application, proven by detailed lifecycle analyses. We go beyond - by helping you optimize your processes and developing catalysts for the next generation of circular value chains. We firmly believe that our catalysts and technology can make a difference. To learn more about how we serve the Petrochemical Market with our Catalysts, visit: https://lnkd.in/euuj4Kca #EvonikCatalysts #oilandgas #petrochemical #Technology #applications #sustainability #carbonfootprint #letsmakeadifference #catalysts

Invest in powders to make oxodegradable plastics? This is one indication of what you can expect from your investment.

Bio-based chemicals are poised for resurgence, with some segments looking at double-digit growth through 2026. Here’s what’s going on and what companies should evaluate to achieve successful investment in this market. https://bit.ly/3QC5gsX #chemicals #chemicalindustry #sustainability

The demand for #sustainability-related products could drive $200B in new growth in the #chemical industry. Here’s how companies can meet the demand. https://accntu.re/3Sjxprr

The demand for #sustainability-related products could drive $200B in new growth in the #chemical industry. Here’s how companies can meet the demand. https://accntu.re/3Sjxprr

The demand for #sustainability-related products could drive $200B in new growth in the #chemical industry. Here’s how companies can meet the demand. https://accntu.re/3Sjxprr