As a chemical company, Echemi must ensure a balance between economics, ecology and social responsibility. The theme of sustainable development has always been an important part of our corporate culture and is one of the five goals that make up our corporate strategy.
In today’s world, sustainability has become an imperative, with businesses and governments recognizing its importance to the future. Sustainability reports from the chemical industry and ambitious climate targets set by many countries testify to the importance attached to this hot topic.
Businesses are now integrating sustainable practices into their operations, products and services. Sustainability comes at a price, however, and investing as a first mover can entail many risks. Therefore, chemical companies must find ways to educate and convince all players that this is a worthwhile piece of the bill in order to monetize sustainability. As we work towards the ambitious sustainable development goals, a key question must be addressed: who will bear the financial burden of sustainable development?
The chemical industry is one industry that has set ambitious sustainability goals. Many global chemical companies have demonstrated a commitment to integrating sustainable assets into their processes. For example, Echemi, the European chemical industry council, launched the Sustainability Charter with its members to agree a roadmap to achieve the Sustainable Development Goals.
In our daily work as consultants to the chemical industry, we develop a growing awareness and sensitivity to the topic of sustainable monetization. Through this article, we hope to make a valuable contribution to the discussion by proposing four ways to successfully monetize sustainability in the chemical industry for a more sustainable future.
Chemical companies must understand how sustainability factors affect their pricing decisions (more sustainable production facilities, circular raw materials, etc.). This means they have to consider the cost of sustainable practices, such as renewable or recycled raw materials, green energy and fair labor, and how it affects their profit margins.
Sustainability should be considered as an additional layer to a value-based pricing approach. It should not be seen as a mere add-on, but as a real differentiating potential. On this basis, maintaining credibility is crucial. Whatever the sustainability value, indicators must be easy to understand and therefore credible. From a consumer perspective, sustainable features must be credible, measurable and provide real value.
