In November 2023, the Global Impact Coalition (GIC) emerged as an independent entity, founded by seven leading chemical companies as a part of the World Economic Forum framework. This coalition has quickly established itself as a vital force in promoting sustainability and collaboration within the chemical sector, addressing pressing challenges related to net zero emissions and circularity. As the world grapples with climate change, the GIC positions itself as a beacon of hope for sectors traditionally perceived as contributors to environmental degradation.
The chemical industry currently accounts for approximately two billion tonnes of greenhouse gas emissions each year, roughly 5% of the globe’s total emissions. Alarmingly, this figure is expected to escalate due to the growing global demand for chemical products, potentially causing the sector to overshoot its carbon budget by 2029. This stark reality prompted the founders of the GIC to recognize that the path to meaningful progress lies in creating a forum for collaborative action. The GIC seeks to foster cooperation among companies that otherwise might remain isolated in their sustainability initiatives.
Since its inception, the GIC has quickly expanded, gathering industry leaders like BASF, SABIC, Mitsubishi Chemical Group, SUEZ, and LyondellBasell, among others. It operates under the premise that true change in the chemical industry cannot occur in silos. By cultivating partnerships and facilitating discussions across the supply chain, the Coalition aims to devise effective strategies that reconcile environmental imperatives with business requirements.
A distinguishing feature of the GIC’s model is its collaborative framework, which plays a crucial role in its operational success. The Coalition organizes regular ideation sessions and project sprint meetings, allowing member companies to maintain a dynamic flow of creativity and practical application. The GIC’s Advisory Board, composed of CEOs and senior leaders from its member companies, ensures strategic direction and resource allocation for various initiatives. By uniting diverse expertise and perspectives, the GIC enhances the potential for innovative solutions.
One of the GIC’s notable initiatives is the R&D Hub for Plastic Waste Processing, a project co-funded by several member companies. This hub aims to address one of the chemical industry’s most significant environmental challenges: plastic waste. Currently, less than 10% of the estimated 400 million tons of plastic produced annually is recycled. The R&D Hub explores cutting-edge recycling technologies, including advanced sorting methods, solvolysis for composite recycling, and polymer separation, paving the way for higher recycling rates and more sustainable practices in plastic waste management.
The challenges facing the chemical sector are undeniably intricate. A significant hurdle is the industry’s heavy reliance on fossil fuels, not only for energy but also as feedstock for production processes. In contrast to other sectors that prioritize decarbonization, the chemical industry focuses on defossilisation, as carbon remains a fundamental component for many chemical products. Tackling this complex issue requires innovative methodologies and robust partnerships with the financial community to catalyze progress. Creating an environment conducive to sustainable business models while mitigating risks for investors is essential for the GIC’s mission.
The GIC’s impact-driven approach emphasizes the necessity of quantifiable results. Through partnerships with universities, research institutions, and advisory firms, the Coalition monitors and assesses the potential effects of its initiatives. Collaborations with financial sector players are also vital, as they can facilitate scaling clean technologies and projects. The GIC recognizes that the chemical industry is at the base of nearly every product value chain, presenting an unparalleled opportunity to influence emissions reductions across multiple sectors.
As momentum builds and the urgency of climate action intensifies, GIC’s ability to foster mutual trust among member entities becomes paramount. Traditionally, the chemical industry has prioritized competition over collaboration; however, the GIC is transforming this landscape by creating a secure environment for members to share resources and insights. Its recent expansion efforts, evidenced by welcoming new members like Siemens Energy and Turkish conglomerate Sabanci Holding, underscore the coalition’s commitment to broadening its scope and deepening its impact.
Looking ahead, the GIC aims to transform the industry by increasing circularity, implementing low-emission processes, and promoting collaborative efforts across sectors. The growing urgency regarding the climate crisis amplifies the necessity for collective action, and the GIC provides the platform to facilitate these partnerships. By concentrating on innovation and actionable initiatives, the Coalition aspires to accelerate the deployment of sustainable technologies, establish new business models, and ultimately drive the chemical industry toward a more sustainable future.
The heart of the GIC’s mission is clear: to be a catalyst for change and to lead the chemical industry in its evolution towards sustainability. As it currently operates five active projects with a developing network of partners, the GIC embodies the collaborative spirit essential for confronting one of the world’s most urgent environmental challenges. With a steadfast commitment to transparency and trust, the GIC is setting the stage for a net-zero future, positioning the chemical sector as a pivotal player in the global transition toward sustainability.
