In 2020, we set an ambition to increase revenue from sustainable solutions to more than 50% by 2030. We consider sustainable solutions to be those that bring tangible sustainability benefits to our customers, and market demand for them is growing. By identifying the sustainable solutions in our portfolio, we can engage in a more collaborative way with our customers – many of whom have set their own sustainability targets.
By focusing on the sustainability benefits we offer, we continue to influence the growing acceptance of more sustainable solutions in our markets. We work closely with our suppliers and customers to deliver these products and services, while ensuring economic value at every stage.
The Sustainable Product Portfolio Assessment (SPPA) framework is what we use to identify the sustainability value we bring to our customers. The SPPA framework is based on the World Business Council for Sustainable Development’s (WBCSD) Portfolio Sustainability Assessment, which we co-developed with other chemical companies. It’s now the leading sustainable portfolio framework tool in the chemical industry. The SPPA gives a holistic view of the sustainability characteristics of our product portfolio. Together with our customer-focused product stewardship process, it helps us tailor value-selling strategies to specific customer needs. By taking this harmonized approach to our portfolio management, we’re able to create a unique baseline for future portfolio ambitions.
Our products fall into one of three categories: Sustainable solutions, Performers or Transitioners. A sustainable solution is a product that meets at least one of the sustainability criteria pictured below, without adverse effects throughout the value chain.
In 2022, 40% of our revenue came from sustainable solutions. During the year, we launched new products with clear sustainability benefits and further reduced the use of certain chemical substances of concern, in line with our strategy. Several examples of sustainable solutions can be found throughout this report, including in the Sustainability statements.
During the year, more product management teams were trained on the use of the SPPA. We also expanded the coverage of our SPPA versus 2021, with the remainder extrapolated based on the sustainable solutions’ percentage of the relevant business unit. The reporting period for sustainable solutions is November 2021 to October 2022.
We continue to influence the growing acceptance of more sustainable solutions.
We continued our cross-functional Raw Material Sustainability Group (RMSG). The RMSG steers and provides governance to sustainability aspects concerning raw materials. Several subject matter experts are part of this group, for example in the area of product stewardship. Product stewardship is our approach to ensuring product safety and its sustainability aspects are considered throughout the value chain – from raw material extraction, R&D, manufacturing, transport, marketing and application, through to end-of-life. We monitor and drive continuous improvement with our Product Stewardship Continuous Improvement Tool. Our Priority Substance Program, which we use to identify and control the use of hazardous substances, is embedded in our processes to comply with regulations.
The development and implementation of more sustainable solutions in the built environment was a specific focus in 2022. To enhance the capabilities of our technical and sales teams, we organized company-wide training on green building certifications and the customer benefits of our sustainable solutions in realizing more sustainable buildings.
Research and development.