Page 14 - Respond 2020 Magazine

RESPOND
AkzoNobel
• 11-year member of the Dow Jones Sustainability Index
• First-place ranking four of the five past years
• 50% of products now deliver sustainability benefits to
customers
• 20% or more of our products deliver industry-leading
sustainability benefits
• 40% renewable energy used
• 100% carbon-neutral target set for 2050
ities across the world face new, interlinked committed to applying these lessons throughout the supply
sustainability challenges that are redefining chain to address both energy use and air quality.
Cthe role of private-sector business, but We have made an ongoing commitment to invest in
progress is being made in cleansing urban sustainability, innovation and society as part of our vision for
environments and supporting international a cleaner and healthier world. The foundations of our work
collaboration on pressing environmental issues, are built on a review of the risks and opportunities within the
writes Pamela Phua, general director of Vietnam, context of our key market segments to 2050.
decorative paints South Asia, AkzoNobel. This has demonstrated to us the need to leverage the latest
knowledge across science and society, identify and mitigate
According to the UN Chronicle, energy consumption and air
our challenges, and develop strategies to make the future
pollution are two of the most critical issues for the 3.5 billion
better.
people who live in urban communities. The World Health
Organization calculates that nine out of 10 people around the For example, Southeast Asia is a market experiencing robust
world currently breathe unhealthy air, leading to pollution- economic and population growth, which requires high levels
related diseases that cause seven million deaths every year. of construction to meet the demands of a new middle class
and rapid urbanisation. However, as our research identified,
When it comes to energy – most of which is still generated
this also means that there is vast opportunity to pioneer new
from non-renewable sources – our cities are using more than
solutions.
ever before, with urban demand accounting for as much as
80% of global production. At AkzoNobel, sustainability is
business and business is sustainability. Environmental targets
• Environmental: Achieve zero carbon emissions in our own
We take our responsibility to depollute the paints and
operations; source 100% renewable energy
coatings in our urban environment seriously, and we are
• Social: Reduce use of volatile organic compounds and
substances
• Economic: Achieve zero waste and 100% resource
productivity in our operations
A strategy for cleaner air
In all industries, environmental impact occurs throughout the
manufacturing process, from R&D to the ultimate application
of products.
When you look at the total carbon emissions in the supply
chain, it becomes clear that the key to reducing our
environmental impact is to work collaboratively.
To lead the change, we have assembled a cohort of 4,000
scientists who will work closely with our global customer
base to push for new, suitable and sustainable solutions.
Further, we are undertaking trials of our depolluting paint
for launch in three megacities in India and Indonesia that
struggle with severe pollution issues.
In our work to depollute air, we can now use photocatalysis
to trigger chemical reactions. In this process, photoactive
titanium dioxide absorbs sunlight and reacts with oxygen and
moisture to generate highly reactive free radicals, which in
turn can contribute to the abatement of noxious emissions
from motor vehicles, and decompose harmful gases such as
nitrogen oxide, sulphur dioxide and VOCs.
Some impacts occur beyond the scope of our processes,
with our suppliers and customers. For example, in paints and
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SUSTAINABILITY
IS BUSINESS
“
Our renewable energy supply strategy
has three focus areas: to protect our current
renewable share; support cost-effective, large
energy ventures; and explore commercially
feasible on-site renewable energy generation.
”
coatings more than 98% of our carbon footprint comes from Adding renewables to our profile also improves the
upstream (supplier) and downstream (customer) activities. sustainability of our products, helping us retain and acquire
customers and find new ways of creating value for them.
Upstream, we know that the emissions from raw materials
such as pigments, resins and solvents are our greatest In cases of oversupply, we can use existing facilities to turn
impact, so we have joined forces with suppliers to drive the electricity into green hydrogen, which can be sold to produce
use of bio-based materials, recycled content, or raw materials chemicals or as a new product. The Dutch city of Groningen
produced with renewable energy. We closely monitor the is already running a pilot with two hydrogen buses, supplied
cradle-to-grave life cycle of our raw materials and finished by AkzoNobel.
products to reduce Volatile Organic Compounds, the impact
Renewable energy is characterised by variation in supply. As
of transportation and other environmental fallout.
we connect more wind parks and solar panels to our national
Creating better energy grids, these swings will only become more severe and occur
Energy is one of our single biggest expenditures – in some more often. Companies like AkzoNobel can play an important
products it accounts for as much as 80% of our variable cost role in balancing these swings, and can even use them to
and such overheads directly affect our bottom line. create mutual benefits.
Our renewable energy supply strategy has three focus Invested in tomorrow
areas: to protect our current renewable share; support cost- Sustainability is not an afterthought, it is our way of doing
effective, large energy ventures; and explore commercially business. It is woven into our DNA and is a powerful means of
feasible on-site renewable energy generation. attracting customers.
By investing in these areas, we are securing profitability in the To achieve carbon neutrality by 2050, economic,
long term. However, in finding cost-effective solutions, we environmental and social factors are accounted for in
need to identify those that can withstand the test of time. our daily work with customers, throughout the product
development lifecycle and across our operations, and we
We have leveraged the power of energy to support our
sustainability programme and renewables now power 45% have three specific targets in place (see previous page).
of our requirements, meeting our 2020 target ahead of More than half our products provide sustainability benefits to
schedule. We found that in doing this we have created direct those who use them, but often we must also engage
benefits for our business by lowering costs and risk, and in leading work beyond our own organisation. We have
creating new value chains. allocated significant sums to the paints and coatings open
innovation platform and a small yet innovative manufacturing
We draw power from solar, wind, natural gas and biomass,
acquisition in the UK. To drive the next wave of sustainable
through multiple suppliers, meaning we can depend on an
solutions, we will make a further investment in our innovation
extremely reliable supply with low risk exposure to power
shortages, rising oil prices or changes in carbon pricing. activities before the end of the current decade.
By 2020, we are targeting 20% of revenue from products
For example, we are sourcing power directly from newly
that are more sustainable than those of our competitors, and
developed wind farms, together with Google, Philips and
DSM in the Netherlands. up to 30% more efficient in resource and energy use across
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