Protecting human health and the environment with safe and sustainable solutions is one of Clariant’s top priorities. A thorough safety and risk assessment for each product or solution that aligns with emerging regulations is core to the company’s stewardship approach. As part of the Portfolio Value Program, Clariant continued in 2020 to screen products against sustainability criteria across their entire life cycle to further identify and promote its EcoTain® products. In addition, Clariant further advanced the procurement of renewable raw materials.

3.1. Product Stewardship/Sustainable Chemistry

Clariant never compromises on human health or environmental safety. A thorough safety and risk assessment for each product or solution is core to the company’s stewardship approach and the starting point for its sustainable chemistry commitment. Handling chemicals responsibly and safely, in alignment with emerging regulations, is key for Clariant’s portfolio risk and opportunity management process and is a matter of course for Clariant. It enables the company to serve markets with innovative and sustainable products that meet regulatory requirements, while also responding to market trends.

3.1.1. Toward a product portfolio with enhanced safety and sustainability performance

Sustainable chemistry encompasses the design, manufacturing, and use of efficient, effective, and safe chemical products and processes that are more environmentally benign. The Portfolio Value Program (PVP) is the overarching sustainability framework through which Clariant’s product and innovation project portfolio is developed. As part of the PVP, Clariant screens innovative products before commercialization and revises existing product screenings to ensure broad screening coverage. The program assesses products and solutions against sustainability criteria across their entire life cycle to identify EcoTain® candidates.

In 2020, the number of EcoTain® products increased across all markets to a total of 228, reflecting Clariant’s efforts to combine innovation with sustainability. In addition, 76% of the continuing operations’ portfolio was screened for sustainability performance, of which 67% meet Clariant’s internal sustainability definition.

In 2020, Clariant started to revise the PVP to better respond to market developments, sustainability trends, and stakeholder needs. New criteria related to circular economy, as well as to safe and sustainable chemistry, have been developed, and an updated criteria set will be launched in 2021.

In the previous year, Clariant linked the sustainability performance of its products with its financial performance more effectively to support decision-making that enhances both sustainability and financial performance. Data shows, on average, sustainability excellence of EcoTain® products goes hand in hand with superior financial performance.

3.1.2. Identifying sustainability improvement opportunities

Clariant maintains road maps to drive innovation and uncover sustainability improvement opportunities in the product portfolio. Currently, these focus on reducing the use of certain hazardous substances in Clariant’s product portfolio and promoting alternatives that go beyond relevant regulations. This approach is particularly important in regions where regulatory action is lagging.

3.1.3. Increasing the number of products with a sustainability designator

The launch of Clariant’s sustainability designators in 2019, which enable customers to identify products with key sustainability advantages, has already shown positive results. Eighteen products carry the designator »Vita,« which indicates that the product contains natural ingredients, while 14 are labeled »Terra« to designate that product components are based on renewable resources. There is also one »Circle« product, highlighting the contribution to circularity in the plastics sector. Read more on clariant.com

3.1.4. Developing new chemicals for enhanced safety

Clariant supports its customers in meeting stricter regulations and ensuring sound protection of the environment and human health. For example, Business Unit Catalysts developed the next-generation PolyMax® 600 Series polypropylene catalysts. The EcoTain® product Safebrake® Life, a hydraulic liquid that transfers braking force from the pedal to the wheel, is an additional example. This product is crucial for road safety and is also the only hazard labelfree alternative in the market.

3.1.5. Responding to new global regulations on the rise

Clariant monitors regulatory developments to ensure the company complies with all current and emerging regulations. Chemical regulations similar to EU REACH have been introduced around the world to ensure the safe use of chemicals. In Turkey, Clariant started the preregistrations of chemical substances in 2020, which will be extended by a registration that lasts through 2023. Clariant ensured compliance with the new Australian Industrial Chemicals Introduction Scheme (AICIS), which oversees the import and manufacturing of industrial chemicals in Australia. In China, new regulations on chemical substance registrations were released that focus on environmental management and the identification of persistent, bioaccumulative, and toxic substances (PBTs). In India, the Chemicals Management and Safety Rules are expected to come into force in 2021.

3.2. Production volume

In 2020, the reported production volume decreased by 3.5% to 4.1 million tons. Business Area Natural Resources continues to provide the largest share, with 2.87 million tons of produced goods, representing a decrease of 0.1 million tons. The production volume of Business Area Care Chemicals decreased by 0.04 million tons to 0.92 million tons. Business Area Catalysis produced 0.06 million tons in 2020, analogous to 2019. The remaining about 0.2 million tons were produced by the discontinued operations. Overall, more than 35% of the production volume is manufactured in plants with a certified ISO 50001 energy management system.

3.3. Raw material procurement

Due to growing demand for sustainable products from customers and consumers, an evolving regulatory environment, and increasing interest in the circular economy, renewable raw materials are gaining importance. Clariant supports this shift by promoting innovation in biofuels, bio-based chemicals, and feedstock, strengthening its role as a sustainability leader in the chemical industry.

Clariant spent about CHF 3.7 billion on goods and services in 2020. Roughly CHF 2 billion were disbursed for raw materials from approximately 6 500 suppliers. Across all Business Areas, more than 18 000 different raw materials were procured, although 94% of the purchase volume was made up of approximately 200 raw materials. In 2020, 20% of purchased raw materials stemmed directly or indirectly from crude oil; about 19% were derived from natural raw materials such as bentonite; and 7% were made of renewable raw materials. The remaining materials were either base or specialty chemicals or nonchemicals.

In addition to promoting renewable raw materials, Clariant prefers to procure goods and services from local suppliers to support the economic development of its respective regions. However, to opt for local raw materials, impeccable quality as well as technical and economic feasibility must be guaranteed.

3.4. Production sites and innovation facilities

3.4.1. Developments in the production site network

By the end of 2020, Clariant operated 126 production sites in 39 countries around the world.

• Care Chemicals: At its ethylene oxide production plant in Gendorf, Germany, Business Unit Industrial & Consumer Specialties commissioned a new distillation column to improve product quality and increase capacity to serve production for personal and home care, crop solutions, and industrial applications. To meet the growing demand for sulphate-free and mild surfactants, Clariant began enlarging capacity at its sites in Mount Holly, United States, and Tarragona, Spain.
• Catalysis: Business Unit Catalysts is building a new production site for CATOFIN™ catalysts in Jiaxing, Zhejiang province, China. The plant will support the petrochemicals industry and is the most digitized Clariant facility to date. Business Line Biofuels & Derivatives sold license agreements to build full-scale commercial sunliquid® plants in Fuyang, China, and in the northeast of Bulgaria.
• Natural Resources: Business Unit Functional Minerals invested in additional production capability at Yuncos, Spain, for activated bleaching earths to serve customers across Europe, the Middle East, and Africa. To enhance crude and fuel oil applications in transport and storage applications, Business Unit Oil and Mining Services opened a state-of-the-art crude and fuel oil lab in the UK. Business Unit Additives expanded the capacity of its Licocene® production in Frankfurt, Germany. In addition, a newly established lab facility and pilot plant will accelerate the development of new tailor-made customer solutions. In 2021, Clariant will open a new production facility of high-performance stabilization solutions in Cangzhou, China, in a joint venture with Beijing Tiangang Auxiliary Co., Ltd.
• Discontinued operations: Business Unit Pigments opened a facility for high-end blue pigments for the automotive industry in Cuddalore, India.

3.4.2. Research & Development and Technical Centers

Clariant’s strong innovation infrastructure consists of eight Research & Development Centers and more than fifty Technical Centers. The centers are distributed around the world, with locations in Europe, North and Latin America, China, and India.

In 2020, the company launched a new High-Throughput Experimentation (HTE) facility in Houston, Texas, USA, and significantly invested in a high-throughput center for catalyst research in Palo Alto, California, USA. Another HTE facility will be inaugurated on the One Clariant Campus in Shanghai, China, in 2021. Read more in Intellectual Capital