Eco-efficient chemicals – myth or reality?

13-09-2011 | Can chemical companies really be sustainable? Triodos Bank thinks they can. Some stand out for their commitment to make things cleaner, better and with less impact on the environment and human health. AkzoNobel has recently been added to the Triodos Sustainable Investment Universe.

Products of the chemical industry can be found everywhere in daily life. From a bicycle or train used to commute to work, a computer or smart phone to communicate with colleagues or family, or even personal products like shampoo and toothpaste. Food products too, are often made using input from the chemical sector. In fact almost everything contains materials made by the chemical industry. For this reason – and because the sector often uses very harmful substances – investing in the sustainable pioneers in this sector can make a real impact, and force the barrier higher for those that don’t yet make the grade. To explain further, we take a closer look at chemical giant AkzoNobel to see why it is considered an industry sustainability innovator.

Eco-efficient products

AkzoNobel is one of the world’s largest paint manufacturers. It recently decided to focus on developing paint and coating products that minimise ecological impacts. One of its success stories is the Eco-premiums Solution Concept. These are products that provide the same or better functionality, but which have a clear eco-efficiency benefit over the mainstream products in the marketplace. AkzoNobel considers every phase in the product value chain from extraction of natural resources, to the manufacturing process, to the application by the end-user, and to final waste management.

AkzoNobel focuses on six key attributes: toxicity, energy efficiency, use of raw material, emissions and waste, land use and health & safety. Examples include a decorative paint that is better for indoor air quality because it does not contain toxic solvents, as well as adhesion substances from non-fossil fuel resources such as starches and soya beans which are used in the wood and flooring industry. Sales of eco-premium products already make up 25% of total revenues with expectations that this will be 30% by 2015.

Cutting where it counts

In addition to the development of eco-premium products, AkzoNobel has a strong focus on reducing carbon emissions. In-depth product life cycle analyses concluded that the majority of AkzoNobel’s greenhouse gas emissions were caused by the application of paints, not by the production process. Armed with this information, the company developed a solvent-free powder coating. The technology applies a coating in powder form which is then baked. The coating is used in the automotive industry as well as on other products such as plant pots for Ikea. Other developments to cut emissions include new paints that absorb less heat and have better light-performance, which significantly reduces the need for cooling or artificial light in buildings.  In 2010 AkzoNobel reduced its total CO₂ emissions by 3% per ton of product, and total waste by 11% per ton of product. Water management is also high on the company’s agenda. The company currently has sustainable water management systems at 48% of its sites, and plans to extend this to all of its production facilities by 2015.

An example to others

Triodos supports AkzoNobel on its path of sustainability and innovation, and continues to have dialogue with the company to follow its developments and achievements. At the same time Triodos also encourages other chemical companies to be as equally innovative.

Note: The issues explored in this article are relevant for sustainable investments on the stock market. Triodos Bank believes that our socially responsible investments are a powerful means of promoting our values and working for greater sustainability, while enabling us to offer a complete range of attractive investment options to customers who choose to invest on the stock market.