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October 2023 - Chemicals

Two-thirds of executives in chemicals industry view the ESG transformation as a reason to reevaluate their business models: A survey by Deilotte looking at green transformation drivers has found that 66% of the senior chemical executive polled working in the European chemicals sector believe that the ESG transformation is a reason to reevaluate their business models.

However, ongoing regulatory developments have created uncertainty around investment decisions, leading to delays in planning and implementation for 58% of respondents. Additionally, 56% expressed concerns that the energy and competitiveness challenges in Europe may hinder the progress of the ESG transformation.

The European Chemicals Pulse Check surveyed senior executives in the European chemical industry across various branches of the sector, including base chemicals, specialty chemicals, and plastics & materials. 

Respondents identified tighter regulations (77%) and changing consumer preferences (70%) as central drivers of the transformation. Other factors mentioned included future-proofing portfolios (53%), pressure from investors (50%), and the risk of reputational loss (48%).

The research also found that seven in 10 believe that hydrogen will play a crucial role as an energy source in the ESG transition of the chemical industry by 2030, with two-thirds of respondents saying they expect to have sufficient green or net zero electricity for direct electrification opportunities in their European asset base by 2030. 

Looking ahead, the years 2023 and 2024 will be crucial for the chemicals industry, says Stefan Van Thienen, a Deloitte Partner and report contact.  European companies need to make long-term investment decisions and prioritise Net Zero targets, the circular economy, and the energy transition. 

 

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