Important to stress that £700 billion is GLOBAL sales of top 850 UK Companies. This represents over 60% of total sales of the top 850 UK companies (£1200 bn) – and a very important contribution to UK Plc. GVA is an important measure of a sectors contribution to the overall economy as defined below. GVA for the chemistry-using industries represents over 50% of the total GVA for UK Plc. The CUI directly employ >2.3million and indirectly support >5 million specialist and support service jobs in the UK Important message here is that the both the traditional chemical and downstream sectors that rely on chemistry are a substantial and critically important sector of the UK economy. Definition of GVA: Gross Value Added (GVA) measures the contribution to the UK economy from an individual producer, industry or sector in the United Kingdom. It is used to estimate Gross Domestic Product (GDP) which is a key indicator of the state of the economy. In the UK, three theoretical approaches are used to estimate GDP: 'production', 'income' and 'expenditure'. When using the production or income approaches, the contribution to the economy of each industry or sector is measured using GVA. The 'production' approach’ looks at the contribution of each economic unit by estimating the value of an output (goods or services) less the value of inputs used in that output's production process. The ‘ income approach’ to estimating GDP measures the incomes earned by individuals (e.g. wages) and corporations (e.g. profits) in the production of outputs (goods or services). The ‘expenditure approach’ measures total expenditure on finished or final goods and services produced in the domestic economy. All three approaches to estimating GDP are balanced annually using the Input-Output Supply and Use Tables accounting framework. How does GVA relate to GDP? The link between GVA and GDP can be defined as: GVA (at current basic prices; available by industry only) plus taxes on products (available at whole economy level only) less subsidies on products (available at whole economy level only) equals GDP (at current market prices; available at whole economy level only). or, in summary: GVA + taxes on products - subsidies on products = GDP Produced by the Office for National Statistics
As well as responding to external pressure, some companies have taken a strongly environmental and sustainability positioning in the market place. Body Shop, The Co-Op, Interface (carpets and floor coverings), Ecover (cleaning products) and Kyocera (printers) have all been active in promoting themselves as environmentally responsible companies – with a great deal of success. Finally, GPD thinking opens up new opportunities for innovation
Service dimension Chlorinated solvents are hazardous and were under a lot of pressure, and yet they are good technical solutions for many applications. Dow developed the Safechem business that supplied solvents in sealed containers for closed loop systems. The waste solvents are collected by Dow and recycled. A catalyst company used to supply catalyst to clean up natural gas before it was transported by pipeline. Combining with an engineering company they now install and operate the complete treatment unit, charging the user a fee for each cubic metre of gas treated. They have higher profits and better control and the gas company’s problem has been completely removed.
Chemistry Innovation’s Mission is to support both product and process innovation – it is not just about inventing new products but more about driving the innovation culture that enables both product and process innovation to flourish in the chemistry-using industries. Through effective knowledge transfer activities we seek to drive the flow of knowledge within, in and out of the chemistry-using industries. The objective for all Knowledge Transfer Networks is to improve the UK's innovation performance by increasing the breadth and depth of knowledge transfer and of technology into UK-based businesses and by accelerating the rate at which this process occurs. Our activities span four key areas: Creating and staging Unique Networking Opportunities for stakeholders to engage with CIKTN and other organisations to identify and address innovation needs/issues across our industry sectors. Through this engagement and networks we help to influence funding calls; identify project opportunities and help to build project consortia with relevant stakeholders. As a national centre of KT activity for the chemistry-using industries, we provide an influential voice (both through the TSB and in some cases directly) to UK Government through a coherent strategy and set of priorities that our defined with and by our stakeholder community.
Mike Pitts EDN mar 2010
Sustainable Design for Innovation in the Chemistry-Using Industries Mike Pitts Chemistry Innovation
The Chemistry-Using Industries Source: 2007 R&D Scoreboard of Top 850 UK Companies - published by BERR/DIUS Global Sales >£700 billion; GVA >£200billion; Directly Employs >2.3million
Product Life-Cycle materials manufacture distribution retail disposal use of product idea earth sunlight
Improved Efficiency source: CEFIC/European Environment Agency EU Chemicals Industry (incl. pharma)
Low-Carbon Solutions <ul><li>For every unit of GHG emitted directly and indirectly by the chemical industry, this industry enabled 2-3 units of emission savings via the products and technologies provided to other industries and consumers. </li></ul><ul><li>Under 2030 scenarios, this could reach 4:1 </li></ul><ul><li>The most significant savings came from: </li></ul>marine antifouling coatings synthetic textiles automotive plastics low-temperature detergents plastics used in piping insulating foams agrochemicals lighting plastic packaging engine efficiency
materials manufacture distribution retail disposal use of product Product Life-Cycle idea earth sunlight
materials manufacture distribution retail disposal use of product emissions Product Life-Cycle ideas earth sunlight waste energy
Sustainability Drivers <ul><li>Pressure from: </li></ul><ul><ul><li>regulators/legislation </li></ul></ul><ul><ul><li>customers </li></ul></ul><ul><ul><li>public </li></ul></ul><ul><ul><li>shareholders/lenders </li></ul></ul><ul><li>Reduce costs </li></ul><ul><li>Feedstock conservation </li></ul><ul><li>Market positioning – new markets, leadership and reputation </li></ul><ul><li>Innovation – understanding customer’s needs </li></ul><ul><li>Developing competitive advantage by solving other people’s sustainability problems </li></ul>Why do it? <ul><li>Paradigm change: </li></ul><ul><ul><li>from plant/product to whole life cycle </li></ul></ul><ul><ul><li>from unit operation to whole system </li></ul></ul><ul><ul><li>from process and product to service </li></ul></ul>How to do it?
Business Case Proctor & Gamble plans to generate >$50 billion sales from products with reduced environmental impact over the next three years. This was recently revised up from the 2007 target of $20 billion reflecting a strengthened pipeline of initiatives. GE ’s ‘ecomagination’ portfolio has grown from 17 to more than 80 products in 2009. 2008 revenues reached $17 billion, an increase of 21% over the prior year. AkzoNobel state: “ Social and environmental trends are re-shaping the competitive arena, and thus our customers’ futures .” 18% of sales come from sustainable products with the aim to have 30% by 2015
<ul><li>For every tonne of household waste that we throw away, there's a further 5 tonnes of materials that have been used in the manufacturing of the products consumed </li></ul>Don't throw anything away. There is no 'away' - Shell advert 90% of all products are waste within 6 months of purchase
Water Source: World Council, UNESCO, DEFRA by 2020 we will need 17% more water than is currently available ‘ water is the oil of the 21st century’ Dow CEO Andrew Liveris ‘ embedded’ water content (litres) 1 pair of shoes 1 cotton T-shirt 1 hamburger 1 glass of milk 1 cup of coffee 1 microchip (2g) 8000 4100 2400 200 140 32 about how much a dishwasher uses in a year
Sustainable Design Approaches <ul><li>Design for life‑cycle </li></ul><ul><li>Designing for the total life-cycle of a product should be standard. </li></ul><ul><li>Design in biodegradability and low aquatic toxicity. </li></ul><ul><li>Design for separation and recovery of materials – plastics, precious metals, etc. </li></ul><ul><li>Design for recycle and re‑use </li></ul><ul><li>Extend experience of recycling and reusing catalysts, lubricants and solvents. </li></ul><ul><li>Efficient process design </li></ul><ul><li>Integrating product and process design – holistic approaches. </li></ul><ul><li>Reducing material intensity </li></ul><ul><li>Reducing the amount of material required to produce a specific outcome. </li></ul><ul><li>e.g. micro- and nano-particles formulation; ‘atom-efficiency’ and E-factor concepts; etc. </li></ul>
Ship Hull Anti-foul Coating <ul><li>Problem </li></ul><ul><li>Ship’s lose sailing performance and are damaged due to barnacles settling onto a vessel's underwater hull. The usual approach is to coat the hull in a biocidal paint. </li></ul><ul><li>Technical solution </li></ul><ul><li>Intersleek ® produces a slippery, hydrophobic, low friction </li></ul><ul><li>surface onto which fouling organisms have difficulty settling. </li></ul><ul><li>Benefits </li></ul><ul><li>no leaching of biocides into the sea </li></ul><ul><li>reduced fuel consumption </li></ul><ul><li>reduced carbon dioxide emissions </li></ul><ul><li>reduced wash water treatment costs at drydock </li></ul><ul><li>longer intervals between drydock servicing </li></ul><ul><li>reduces fuel costs by at least 6% </li></ul><ul><li>$2.5 million savings over a five year period for a typical ship </li></ul>source: Sustainable Technologies Roadmap
Energy Efficient ‘Spray-On’ Heating Elements <ul><li>Problem </li></ul><ul><li>Resistance coiled heating elements are widely used. Their manufacture uses a high impact 27 step process and they are energy inefficient . </li></ul><ul><li>Technical Solution </li></ul><ul><li>A new flat heating element is made by spraying metal alloy oxides onto an insulating base to form a 50 – 250 micron coating. </li></ul><ul><li>Benefits </li></ul><ul><li>lightweight but robust element that can be applied to shaped surfaces reduced </li></ul><ul><li>up to 40-50% energy savings </li></ul><ul><li>safety in use, with lower current densities </li></ul><ul><li>3-4 stage manufacture </li></ul><ul><li>1/16th material use </li></ul><ul><li>50-80 fold reduction in energy during production </li></ul><ul><li>avoids of acidic waste streams and open-cast mining of magnesium oxide </li></ul>source: Sustainable Technologies Roadmap
Sustainable Design Guide <ul><li>Shows chemistry-using organisations how to build sustainable thinking into their innovation processes </li></ul><ul><li>A collection of best practice with a process for how to do it </li></ul><ul><li>Linked supporting resources </li></ul>
‘ Today's problems cannot be solved if we still think the way we thought when we created them’ - Albert Einstein www.chemistryinnovation.co.uk/stroadmap www.chemistryinnovation.co.uk/sdg [email_address]
Mission & Strategy Mission To stimulate & support product and process innovation that will deliver tangible value for the UK chemistry-using industries
Impact Assessment (external) expert source: Forum for the Future principles & rules-of-thumb directional tools single simple indicators Life-Cycle Analysis i.e. life-cycle thinking e.g. Eco-Innovation compass & matrix analysis metrics early late qualitative quantitative do ‘in-house’