How EY and GIC are driving sustainable transformation of chemicals

How EY and GIC are driving sustainable transformation of chemicals

Amid mounting climate challenges, the chemicals industry is embarking on a pivotal journey to embed sustainable practices into their business model.

Key players are actively pursuing avenues to foster collaboration and share expertise within the sector and its interconnected supply chains. The goal is to cultivate a robust and adaptable chemicals industry that can thrive within a carbon net-zero and circular framework.

Recognizing the need to create a sense of urgency in this effort, Ernst & Young LLP (EY US) and the Global Impact Coalition (GIC) have teamed up to help deepen the collective understanding of challenges and solutions to achieve industry-wide sustainability goals.

Identifying challenges, scaling opportunities

The Global Impact Coalition was originally incubated at the World Economic Forum and now stands as an independent entity, founded by some of the world’s leading chemical companies. It acts as a collaborative platform for the co-creation of business models and technologies that target net-zero emissions in the chemicals sector. The EY organization and its global presence and industry knowledge, has the ability to amplify GIC’s mission, fostering the dialogue needed to achieve greater sustainability.

The goal of this strategic alliance is to facilitate industry collaboration and knowledge exchange across the chemical sector and related value chains. EY US intends to leverage its platform to host a series of webinars, bringing together industry leaders to discuss the challenges and opportunities in scaling new technologies and how to better embed sustainable practices into new business models. Additionally, a co-developed industry white paper will encapsulate these insights, serving as a guide for innovation across the sector.

The GIC’s CEO-led approach is a first for the industry, setting a precedent for high-impact business models and proof-of-concept pilots that fast-track the adoption of low-emissions technologies. Their R&D hubs and other collaborative project examples, like the electrically heated steam cracker furnace and circular plastics refinery, are pioneering efforts to decrease emissions and increase circularity.

The GIC focuses on practical collaboration. Beyond mere advocacy, the coalition pursues concrete projects that tackle critical issues within the industry. Efforts range from improving plastic recycling in the automotive sector to advancing new methods for processing plastic waste, reflecting the GIC’s commitment to ambitious and essential endeavors, finding collective solutions to key industry challenges.

No time to waste

The urgency of this effort cannot be overstated. With a global imperative to drive down emissions and reach net-zero goals, the GIC is revising the language of sustainability, aiming for net-zero before the often-cited 2050 deadline.

The chemicals industry, historically a significant emitter, is now at a crossroads. The low-hanging fruit of energy efficiency has been leveraged, and the next phase of emissions reduction requires deep collaboration and co-investment. As companies grapple with the need to overhaul systems and manufacturing plants while searching for suitable alternative feedstock, the GIC’s collaborative platform provides an accelerated path to innovation and investment.

In an industry where competitors are also suppliers and customers, the intertwined nature of the chemicals sector makes collaboration not just beneficial, but essential. By pooling resources and strategies, EY US and the GIC are not only seeking to foster a culture of innovation, but also set a new standard for industry-wide action against climate change.

Summary

When it comes to reducing carbon emissions, collaboration is more than a choice — it’s the only way forward. Together, EY US and the GIC have set out to chart a new course toward a more sustainable future for the chemicals industry, proving that unity is strength, especially in the quest for a greener planet.

The views reflected in this article are the views of the author and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization.