The key findings from the survey of chemicals industry professionals on sustainability are: 1) Short-term priorities centered around sourcing, costs and cash flow while long-term focused on new products, shareholders and sourcing. 2) Half of companies define sustainability as environmental quality or carbon footprint and see it as a top priority. 3) Most companies are already engaged in sustainable practices and see it as important despite economic challenges. 4) Cost is viewed as the biggest challenge for sustainable programs but many see economic benefits to renewable feedstocks.

1. Sustainability Research
Research among chemicals industry professionals to measure attitudes towards sustainability
Prepared by:
Heather Macleod, Reed Business Insight
On behalf of:
Joey Marquart, Genomatica
June 2009
Reference Number: 5004

2. Company definition of sustainability
‘Which of the following describes how your company defines sustainability?’
The environmental qualities of
56%
end-products
The carbon footprint of internal
53%
processes
The energy consumption
association with external 38%
processes
Base: All respondents (977)
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3. Importance of sustainability factors
‘Please rank each of the following in terms of importance towards sustainability as it applies to your company?’
The environmental qualities of
67% 27% 6%
end products (859)
The carbon footprint of internal
65% 27% 8%
processes (822)
The energy consumption
association with external 45% 45% 10%
processes (809)
Very important Somewhat important Not at all important
Base: All respondents (individual base sizes shown)
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4. Company’s sustainability priorities
‘Which of the following best describes your company’s top business priority in terms of sustainability?’
Company wide priority 46%
Management priority 24%
Business unit-specific 10% - Manufacturing – 5 mentions
- Oil – 5 mentions
- Chemicals – 3 mentions
Espoused mostly by a few "green"
7%
advocates within company
PR priority only 5%
Not a priority 7%
Base: All respondents (863)
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5. Most critical short-term priorities
‘Which of the following are the most critical short-term priorities for your company?’
Raw materials sourcing/ pricing 53%
Strategic cost reductions 39%
Maximising cash flow 34%
New product development 30%
Energy usage/ pricing 24%
Improving health and safety
performance 20%
Reducing enivornmental impact of
18%
operations
Managing inventory 16%
Increasing shareholder value 15%
Reducing environmental impact of
products 12%
Base: All respondents (849)
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6. Most critical long-term priorities
‘Which of the following are the most critical long-term priorities for your company?’
New product development 44%
Increasing shareholder value 34%
Raw materials sourcing/ pricing 34%
Strategic cost reductions 32%
Reducing enivornmental impact of
25%
operations
Maximising cash flow 23%
Improving health and safety
23%
performance
Energy usage/ pricing 21%
Reducing environmental impact of
19%
products
Managing inventory 9%
Base: All respondents (825)
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7. Company engagement with sustainable chemistry practices
‘Is your company already engaged in sustainable
chemistry practices?’
Don't know ‘Is your company maintaining the commitment to
18% sustainable chemistry practices during the current
economic downturn?’
Yes 93%
No 4%
Don’t know 3%
Yes
Base: Those who are already engaged
No 57% in sustainable chemistry practices (468)
25%
Base: All respondents (836)
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8. Whether an economic advantage to switching chemical
manufacturing process inputs to renewable feedstocks
‘In your opinion, is there an economic advantage to switching chemical manufacturing process inputs
to renewable feedstocks, like sugars, starches or biomass?’
Don't know
23%
Yes
46%
No
31%
Base: All respondents (825)
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9. Whether companies should reduce exposure to petroleum-
based commodity market
‘In your opinion, should your company reduce its exposure to the petroleum-based commodity market?’
Don't know
13%
No Yes
30% 57%
Base: All respondents (821)
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10. The future of sustainable chemical processes within company
‘What of the following best describes your view of sustainable chemical processes within your company in the future?’
Will be a priority in the long-term 43%
Is already a priority 31%
Is a priority in the short-term 6%
Will not be a priority 9%
Not sure 11%
Base: All respondents (804)
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11. Most prohibitive component of a sustainable chemical program
‘What do you perceive as the most prohibitive component of a sustainable chemical program?’
Cost 58%
Technical capabilities 44%
Adapting infrastructure and
36%
processes
Attitude/ awareness of internal
26%
management
Base: All respondents (800)
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12. Length of time to launch a sustainable programme to using it
at a commercial volume
‘In your opinion, how long would it take from launching a sustainable program
to using such processes at commercial volume?’
Less than 5 years 39%
5-10 years 47%
10-15 years 10%
Average: 6.5 years
More than 15 years 4%
Base: All respondents (787)
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13. Importance to company being a sustainable chemicals
front-runner
‘How important is it for your company to be a front-runner in terms of sustainable chemicals?’
Not at all important (1)
7%
Very important (4)
30%
Not very important (2)
22%
Mean score: 2.9
Important (3)
Base: All respondents (796)
41%
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14. Customers’ interest in sustainably produced chemicals
‘Have your customers expressed interest in sustainably produced chemicals?’
No
43%
Yes
57%
Base: All respondents (782)
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15. Spontaneous awareness of sustainable chemical companies
(mentions 3%+)
‘When you think of sustainable chemicals, which companies come to mind?’
BASF 17%
Dow 12%
DuPont 11%
Cargill 7%
BP 5%
Bayer 4%
ADM 4%
Nature Works 4%
Shell 3%
Clariant 3%
Proctor & Gamble 3% Base: All respondents (304)
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16. Feedstocks and agents incorporated into processes
‘Which of the following feedstocks or agents does your company incorporate into its processes?’
1 or more 47%
Sugars / other
51%
carbohydrates
Plant origin 49%
Bacteria 22%
None 53%
Yeast 15%
Algae origin 13%
Base: All respondents (771) Base: All respondents incorporating feedstocks or agents into processes (366)
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17. Reservations about sustainable chemistry processes
‘Which of the following reservations do you have about sustainable chemistry processes?’
Future pricing of feedstock 53%
Availablility of feedstock 52%
Need to invest in new/retrofitted
32%
facilities
Chemicals won't be the same 26%
Might not be predictable,
23%
repeatable
Might not scale 17%
Need to train staff 12%
None of above 8% Base: All respondents (772)
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18. Job title (mentions 3%+)
‘Which of the following job titles best reflects your position?’
CEO/ Chairman/ President 15%
VP 7%
Strategic functions 31%
A/O directors 5%
Executive VP 4%
General Manager 25%
Purchasing Manager 7%
Marketing Manager 3% Operational functions 38%
Sales Manager 3%
Base: All respondents (688)
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19. Segments within which company operates (mentions 9%+)
‘In which of the following segments does your company operate?’
Speciality chemicals 37%
Petrochemicals 34%
Polymers 34%
Agrochemicals / Fertilisers 16%
Fine chemicals 16%
Pharmaceuticals 12%
Commodity Inorganics 9%
Base: All respondents (748)
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20. Total global revenue of company
‘What is the total global revenue of your company?’
$10billion or more 15%
$5billion - $10billion 8%
Average $3.8 billion
$1billion - $5billion 12%
$500million - $1billion 11%
Up to $500million 40%
Don't know 14%
Base: All respondents (758)
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21. Region company based in
‘In which region is your company based?’
Europe 32%
North America 31%
Asia 21%
Middle East 5%
Australasia 4%
South America 4%
Africa 3%
Base: All respondents (745)
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22. Key findings / 1 …
 The most critical short-term priorities were found to be raw materials sourcing/pricing, strategic cost
reductions and maximising cash flow. While from a long-term view, new product development, increasing
shareholder value and raw materials sourcing/pricing were the priorities. Sugars/other carbohydrates are the
feedstocks and agents most likely to be incorporated currently into processes. Over half of company’s define
sustainability as “environmental qualities of end products” or “carbon footprint of internal processes”.
 Just under half say that sustainability is a company wide priority, although another quarter say it is a
management priority. Two in three indicate environmental qualities of end products and carbon footprint of
internal processes are very important factors towards sustainability.
 Over half of respondent companies are already engaged in sustainable chemistry practices, with the
significant majority of these maintaining this commitment during the economic downturn. Indeed almost
three quarters of the sample feel it is important for their company to be a front-runner in terms of sustainable
chemicals. Three in ten are already giving sustainable chemical processes priority, while four in ten say that
it’s a long term priority.
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23. Key findings / 2 …
 BASF was the company most likely to spring to mind spontaneously when thinking of a sustainable chemical
company.
 The greatest reservation around sustainable chemistry processes is future pricing of feedstock. Cost is the
most prohibitive component of a sustainable chemical program, followed by technical capabilities. Almost half
consider there to be an economic advantage to switching chemical manufacturing process inputs to
renewable feedstocks, while almost six in ten feel that their company should reduce its exposure to the
petroleum-based commodity market.
 Respondents indicated that almost six in ten of their customers had expressed interest in sustainably
produced chemicals.
 In terms of timescale, the majority (almost half of the sample) feel it would take less than 10 years to go from
launching a sustainable program to using such processes at commercial volume. However, over a third
believe it would take less than 5 years. The average is 6.5 years.
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