Transitioning to a safe and sustainable portfolio
Commendations, Time for change, Germany
A leading project by Clariant (Germany) – Subcategory: Transition to safe and sustainable chemicals.
Transitioning to a safe and sustainable portfolio requires transparency and continuous assessments across all sustainability dimensions and life cycle phases, a goal that Clariant’s “Dynamic Portfolio Value Program” (PVP) is designed to achieve. This innovative programme enhances portfolio sustainability assessments by providing real-time insights into how external changes in sustainability criteria impact the portfolio. By simulating future scenarios, it enables forward-looking risk analysis and strategic prioritisation, fostering innovation.
Systematic Portfolio Screening
Safety and sustainability are central to the company’s mission, as reflected in the purpose: “Greater chemistry – between people and planet”. The company assesses substances, usage, and safe handling across various sustainability parameters. The PVP methodology evaluates and enhances the performance of the product and project portfolio, focusing on all sustainability dimensions: environmental, social and performance. Recently, the company integrated Dynamic PVP into the existing PVP process to improve robustness and timeliness.
Aligning with European Union Ambitions
The project aligns with the EU’s ambitions, particularly the EU Chemicals Strategy for Sustainability (CSS), which aims to promote chemicals that are safe and sustainable by design (SSbD). The two main components of SSbD are safety and sustainability assessment and a (re)design phase to support the design of chemicals and materials.
Holistic Approach to Sustainability
PVP follows a holistic approach, covering all lifecycle phases from raw materials to end-of-life, addressing safety, environmental impact, and socioeconomic sustainability through 39 criteria. All products are screened using the same criteria, based on the strictest and most current guidelines, ensuring consistent development.
Continuous Improvement and Innovation
PVP:
- Enables continuous improvement by moving the portfolio towards increased sustainability performance.
- Drives innovation by identifying areas for improved product profiles and anticipating trends, regulations, and stakeholder expectations.
- Creates transparency by building upon methodologies like the World Business Council for Sustainable Development’s Product Sustainability Assessment and SSbD.
Embedding Sustainability in Innovation
PVP is embedded in the company’s innovation process, ensuring systematic sustainability consideration at critical milestones. For some classes of projects, PVP R&D is mandatory, supporting the (re)design phase. Non-sustainable projects can only advance once all sustainability concerns are addressed. Full PVP screenings are required for new products before commercialisation.
Portfolio Categorisation
PVP divides Clariant’s portfolio into four categories:
- EcoTain: Market segment frontrunners with sustainability excellence.
- Sustainable: Products with a positive sustainability contribution.
- Transitional: Products not yet sustainable but with no viable alternatives, addressing sustainability deficits.
- Non-Sustainable: Products below the company’s sustainability standard, to be phased out within five years.
Innovative Forward-Looking Tool
Dynamic PVP allows for dynamic analysis of the portfolio, evaluating impacts of new benchmarks, updated thresholds, or regulatory changes. This enables early adaptation of R&D developments and business direction. It also enhances sustainability screening by running dynamic portfolio evaluations and risk assessments. It uses extensive databases to simulate future scenarios and assess multiple products simultaneously, streamlining the process.
Roll-Out and Future Actions
Current steps involve internal functions, connecting internal databases and adjusting the PVP methodology. Corporate Sustainability Affairs is updating criteria for Dynamic PVP applicability, with reviewed criteria to be rolled out in January 2025.