With carbon neutrality becoming a global consensus, the world is ushering in an industrial and technological transformation characterized by green and low-carbon. In this new era, special materials, as an indispensable core element in modern industrial fields, are playing a crucial role. With the rapid development of technology, the demand for special materials is constantly increasing in various industries, leading the research, development, and application of special materials to become a hot topic in the current industrial sector.
As a global leader in the field of specialty materials, Arkema is committed to providing innovative material solutions to help build a sustainable world. The outstanding performance of the group in sustainability has received numerous recognitions. In 2023, Arkema was listed on Time magazine's "Best Companies in the World" list and ranked fourth in the Dow Jones Sustainability World Index's "Chemicals" category. In terms of talent development and social responsibility, the company has also been awarded the title of "Outstanding Employer" for its outstanding achievements.
Arkema has set an example for the entire industry in sustainable development practices and performance, playing a crucial role in promoting the sustainable process of the industry.
Innovative technology supports a green future
Arkema meets the growing global demand for new sustainable materials through its unique expertise in materials science and a range of world-class technologies. Currently, 91% of Arkema's business is related to specialty materials, and the goal of becoming a pure specialty material manufacturer is steadily being achieved.
Arkema's product portfolio focuses on three major areas: adhesive solutions, advanced materials, and coating solutions. These complementary, resilient, and highly innovative specialty materials business units provide cutting-edge technological solutions that occupy a leading position in the market. Arkema's special materials are widely used, covering multiple fields such as automobiles, cosmetics, aviation, packaging, electronic products, sports goods, etc., aiming to help society better cope with challenges in new energy, water resource acquisition, recycling, urbanization, and mobility.
In terms of research and development, Arkema has research and development centers and technology centers worldwide, and applies for over 200 patents annually. The R&D team is deeply engaged in innovative research and development in niche markets such as green energy and electric mobility, advanced electronic devices, sustainable lifestyles, efficient buildings and residences, water filtration, medical equipment, and crop nutrition.
Zeng Yuexiang, Senior Director of Health, Safety, Environmental Quality, and Excellent Operations at Arkema Greater China, introduced that Arkema focuses on the close relationship between product research and development and sustainable development, with over 90% of the company's patents closely related to sustainable development. Arkema implements the Archimedes Project, which evaluates products based on 17 United Nations Sustainable Development Goals, selects products with significant impact and meets requirements for development. By 2030, the company has set a goal to achieve 65% sales of products that are rated as ImpACT+for their contribution to the United Nations Sustainable Development Goals. In addition, the company also conducts assessments throughout the entire lifecycle to ensure that products meet sustainable development goals.
In line with the latest "One Arkema" policy of the group, Arkema will empower and combine diverse products and deep professional knowledge from various business units to provide innovative, high-performance, and sustainable customized solutions, helping to build a sustainable future society. For example, Rilsan ® 、 Pebax ® The product line made from castor oil has formed a unique, complete, and circular bio based supply chain. A, advanced; B， Bio based; C， The three letters' circular 'are connected in series to form a' closed loop 'of circular economy, covering the entire value chain.
Zeng Yuexiang stated that electrification of automobiles has become the mainstream development trend in the automotive industry. Arkema has been deeply involved in the lithium-ion battery market since its inception, committed to promoting the development of safer and higher performance batteries. Through Kynar ® PVDF and Rilsan ® The application of materials such as PA11 not only provides diversified innovative solutions for the market, but also effectively reduces carbon footprint by using bio based materials derived from castor.
In the rapidly growing sports equipment market, Arkema uses PeBax ® Elasticity and Rilsan ® High performance materials such as Clear transparent nylon have driven innovation and customization in the sports equipment market. As the 2024 Paris Olympics approaches, Arkema's cutting-edge products will help create higher quality sports equipment.
In terms of green energy, use Arkema Elium ® The nearly 100 meter level thermoplastic composite wind turbine blades made of liquid resin have been successfully produced in China, setting a new global record and providing a new sustainable development path for the wind energy industry. This marks another breakthrough for Arkema in promoting local sustainable development.
Decarbonization measures drive sustainable progress
Recently, the Akoma Taixing factory has obtained the International Sustainability and Carbon Certification PLUS (ISCC PLUS), becoming the first ISCC PLUS certification obtained by the group in the Asia Pacific region. The ISCC PLUS certification covers all stages of the value chain, ensuring the use of renewable materials and is an internationally recognized quality balance certification system.
In terms of water resource utilization and recycling, the Taixing factory has also taken multiple innovative measures, such as condensate water recycling, water-saving and energy-saving measures, and waste incineration technology. Among them, the waste incinerator technology can not only incinerate waste, but also generate steam at the same time. By reducing the amount of steam used, the Taixing factory can save energy and reduce carbon dioxide emissions, and avoid the carbon dioxide emissions generated during transportation and the potential leakage pollution to the external environment caused by transportation.
In addition to the Taixing factory, Arkema has also taken innovative measures such as water and waste recycling, reuse, and reduction (3R policy) in other factories to achieve sustainable resource recycling. Zeng Yuexiang introduced that at the Arkema Changshu factory, some wastewater is recycled seven times through different sections before being discharged, thus achieving multiple recoveries and reducing emissions. In terms of optimizing waste disposal, Arkema also has many successful cases, such as harmless treatment of salt containing waste and improvement of wastewater treatment processes, which not only reduce the generation of hazardous waste but also lower energy consumption and carbon emissions. In 2023, Arkema China's factory will reduce over 1000 tons of solid waste solely in the area of sustainable waste recycling projects; The proportion of water resource recycling and reuse rate is as high as 98%, far exceeding the national requirements for industrial enterprise reuse rate, and ranking first within the group.
Recently, Arkema (China) Investment Co., Ltd. was awarded the Annual ESG Pioneer Enterprise Award, which once again highlights the company's leading position in the field of sustainable development. Zeng Yuexiang stated that for Arkema Group, sustainable development is not only a slogan, but also the core of the company's development strategy. The company continuously updates its climate plan, strengthens decarbonization actions, and moves towards the net zero carbon goal by 2050. By 2030, Arkema aims to reduce greenhouse gas emissions in Scope 1 and Scope 2 by 48.5%, and in Scope 3 by 54%. This emission reduction target has been certified by the SBTi (Scientific Carbon Target Initiative) and will help achieve the global temperature control target of 1.5 ℃.
To this end, the group plans to invest 400 million euros by 2030 to support decarbonization related activities, including efforts to increase the proportion of low-carbon steam and low-carbon electricity used in factories, increase energy efficiency, and optimize facilities.
In the China region, Arkema actively mobilizes and implements specific actions and strategies, including green power trading, production equipment optimization, etc., to help achieve the group's grand goals and support the national goals of "carbon peak and carbon neutrality". In terms of green power procurement, Guangzhou Shadoma and Boshi Rubber Factory, Yunnan Amazi have signed contracts for 100% green power, and other factories in various regions have also formulated detailed plans. In addition, various factories actively responded to the Arkema Energy plan initiated by the group, fully implementing the "4 Must Have" measures to improve energy efficiency. Taking the steam trap plan, one of the "four musts", as an example, as of now, all high energy consuming factories in China have completed upgrade and renovation projects, saving about 20 GWh of energy annually and reducing carbon emissions by over 8000 tons of carbon dioxide equivalent. In 2023, the Akoma Energy Plan project renovation has saved approximately 15GWh of energy and resulted in a carbon emission reduction of over 6500 tons of carbon dioxide equivalent.
In addition, Arkema has launched a fun CLIMATE FRESK (Climate Puzzle) campaign internally, using games to raise employees' awareness of climate change. This move has achieved remarkable results globally, greatly enhancing employees' awareness of climate issues.
In order to achieve the emission reduction targets of Scope 3, Arkema actively collaborates with upstream and downstream partners. Upstream in the value chain, the company engages in climate friendly dialogue with suppliers, encouraging them to set SBTi targets; In the downstream of the value chain, Arkema is committed to reducing the application of fluorine gases and developing new generation fluorine gases, such as 1233zd and other new generation foaming agents and refrigerants, which have been successfully launched on the market.
Responsibility promotes social development
As a responsible manufacturer, Arkema operates and manages around the concept of sustainable development, actively fulfilling its social responsibilities. In March last year, Arkema China announced an upgrade to its corporate social responsibility brand in China, with a new theme of "Green Living, Achieving Sustainable Future", to actively and deeply carry out various corporate social responsibility work, and mobilize more stakeholders to participate. Gong Weizi, Corporate Communication and Marketing Director of Arkema Greater China, stated that Arkema Group's cultural construction in corporate social responsibility (CSR) reflects the driving force from internal to external. By establishing and practicing the awareness of corporate social responsibility, this concept is jointly cultivated with stakeholders and the public. Since 2016, Arkema has gradually promoted the Green Innovation Classroom project in more than 10 schools in Jiangsu, Hebei, Yunnan, Guizhou and other places, expanding students' horizons and stimulating innovation abilities. Last March, the project was expanded to five schools in Luxi County, Yunnan Province to promote students' comprehensive development. The company also collaborates with One Foundation to implement a water purification plan, improving the drinking water conditions of schools in remote areas. Employee volunteers actively participate, providing materials and educational support, deepening the connection between the enterprise and the community, reflecting Arkema's positive role in promoting sustainable development and social progress.
Moreover, as early as February 13, 2017, Arkema led the establishment of the "Responsible Care Changshu New Materials Industrial Park Committee (RCCAC)". RCCAC has carried out a series of activities around the theme of "responsible care", focusing on safety production, environmental friendliness, and humanistic care, and working together to build a green, safe, and efficient modern ecological industrial park.
Arkema has demonstrated a positive attitude towards corporate social responsibility, setting an example for other businesses and driving the world towards a greener and more sustainable future.
Digital transformation helps promote green ecological development
In recent years, with the rise of the digital wave, there have been profound changes in global industrial operations and working methods. In this context, Arkema is actively laying out its digital strategy to drive the company towards operational excellence. Especially in the Chinese market, Arkema continuously explores and practices digital technology, integrating it into various aspects of the enterprise to maintain and enhance market competitiveness.
Gong Weizi stated that green development and digital transformation are inseparable today. Based on this concept, Arkema Group is comprehensively promoting digital upgrading, applying digital technology to key areas such as finance, supply chain, research and development, sales, and marketing. To this end, Arkema has formed a digital core management team led by the President, with the Chief Information Officer (CIO) as the leader and participation from various business units, functional departments, and factory leaders. The team is responsible for guiding and promoting the digital transformation of the enterprise, empowering environmental protection and resource conservation through digital technology innovation.
Arkema also promotes the incubation and application of digital solutions by building platforms and channels to meet future development needs. The company's digital architecture not only includes the construction of mechanisms and tools, but also covers various aspects from factory operations to enterprise management, ensuring the comprehensiveness and depth of digital transformation to improve business efficiency and minimize environmental impact. At the Changshu base, Arkema utilizes advanced process control (APC) technology to not only ensure the safe and reliable operation of production facilities, but also achieve cost reduction and efficiency improvement. Most importantly, through the application of APC technology, the company has successfully reduced greenhouse gas emissions. In addition, Arkema is introducing a Manufacturing Execution System (MES), which will further optimize production process management by accurately controlling process parameters and utilizing big data analysis for early warning, effectively improving product quality and production efficiency. These digital measures not only enhance the production and operation level of Arkema China, but also take solid steps for the company on the path of sustainable development.
Zeng Yuexiang stated that the group has demonstrated comprehensive and in-depth practices in digital transformation, forming a complete network system. Arkema promotes the implementation of practical innovation by combining digital requirements with employees' spontaneous creative contributions. For example, a simplified digital crisis management system can simultaneously contact multiple key personnel through enterprise WeChat information push, SMS or phone calls, ensuring efficient emergency response. In addition, Arkema has also adopted automation and intelligent technologies in factory operations, such as energy management systems (EMS), which monitor the energy consumption of large equipment and make real-time adjustments to reduce carbon dioxide emissions. This not only improves production efficiency but also helps reduce environmental impact. Through localization strategies, Arkema has strengthened its digital execution capabilities globally, ensuring the effective landing and rapid response of multinational enterprises in local markets.
Arkema's local digital transformation journey fully demonstrates the close connection between digital technology and green development. Arkema is demonstrating the perfect combination of digitalization and sustainable development through practical actions, contributing to building a greener and more efficient future.
A leader committed to sustainable processes
With the deepening global consensus on sustainable development, Arkema is guided by the beautiful vision of "Innovative Materials, Building a Sustainable World" and firmly believes that innovative materials are the key to moving towards a more sustainable future.
At last September's Capital Markets Day event, Arkema Group announced ambitious targets for 2028, aiming to achieve sales of approximately 12 billion euros and an EBITDA profit margin of around 18%. The proposal of this goal marks a new stage of development for the company, which will focus on sustainable development as its core strategy and accelerate the organic growth of high-performance materials and sustainable fields.
This year marks the 40th year of Arkema Group's business operations in China. With the continuous expansion of its business in the Chinese market, the company is continuously investing in upgrading and providing high-performance and sustainable solutions. As one of the largest industrial bases of the group in the world, Arkema Changshu Base has launched an organic peroxide factory expansion project, with an expected capacity to increase by 2.5 times. At the same time, Changshu R&D Center is also strengthening its local R&D capabilities, creating more innovative products and solutions, contributing to local sustainable development, jointly addressing environmental and social challenges, and moving towards a greener and more sustainable future.
Author: Li Li
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