The current trend of investments is impacted by the introduction of policies in areas of Environment, Social and Governance and the intense implementation of such policies.
The specialty chemicals industry is one of the highly demanded markets, the products have high applicability across various ranging from automotive to food and beverage and personal beauty care markets. Unlike the chemicals, the specialty chemicals have only specific use to the industry which they are used in, which impacts the market in the terms of ESG. There is positive impact in the social sphere of the ESG, while negative impact in the environmental aspect of ESG of the market.
The key leaders of the specialty market are however trying to scale down the negative impacts caused by the aforementioned issues by taking up initiatives to sustain the market. The United Nations’ Sustainable Development Goals (UN SDGs) is a comprehensive framework that helps companies in this market obtain a perspective on the impact of their products and operations on ESG parameters.
A wide range of products are used to make end market productions, which include polymers, essential oils, castor oil and collagen and other synthetic oils used in the automotive industry. These oils are produced from different sources, depending on their specific applicability. Synthetic oils such as gear and engine oils used in the automotive industry are sourced from crude oil, which strains the environment due to emissions from the extraction and refining processes.
Certain products such as castor oil which is specifically constrained to be used in the personal beauty market, is used for hydration as an ingredient in the products such as lotions and creams. However, for industrial scale production, the castor oil is sourced from the Ricinus communis plant, where seeds are refined to extract the oil.
There are a wide range of challenges in terms of environment in the process of extracting castor oil, which includes the usage of pesticides and farming machinery, which emits carbons, increasing the greenhouse effect, in contrast to the United Nations Sustainable Development Goals of climate action (SDG13).
Chemicals used for the Coating, Adhesive, Sealants and Elastomers used in the CASE segment are synthetically manufactured, the emissions from the production process are reported to be toxic, which causes distress to human health at social scale and is hazardous to the environment, creating an imbalance in the ecosystems.
Construction chemicals segment of the market, which produces the Portland cement causes severe negative effects on the environment, since the Portland cement, which is used as an ingredient in the concrete and mortar, is reported to cause soil erosion and water pollution, and the carbon emissions from the manufacturing process contributes to global warming.
However, some of the key companies of the market have adopted to use and manufacture bio based chemicals that are environmentally friendly, decreasing the adverse impact on the environment. Key companies of the market, which manufacture the synthetic oils such as gear oils and lubricants have adopted the circular economy, reducing the sourcing of raw materials from crude oil and managing the waste, promoting the UN SDG goal of Industry, Innovation and Infrastructure (SDG11).
The specialty chemicals market was valued at USD 586.5 billion as of 2020 and is forecasted to expand with a CAGR (Compound Annual Growth Rate) of 4.3% from 2021 to 2028. Major companies of the market have introduced changes in the policies to accommodate more ecologically efficient methods as to reduce the negative impacts on the environment.
• Solvay AG
• Evonik Industries AG
• Clariant AG
• Akzo Nobel N.V.
• BASF SE
• Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape
• Key insights on infrastructure developments and ESG issues affecting the theme
• Identify key initiatives and challenges within the industry
• Identify ESG leaders within the industry
• Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process
• Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment
• Offers a global perspective of specialty chemicals industry and the policies and measures taken by the players, for overcoming the challenges faced in terms of Environment, Social and Governance.
• Key insights into the sustainability practices of major players in the market.
GET A FREE DEMO