**Germany**: A recent study by the Schmalenbach-Gesellschaft reveals that major chemical companies in Europe, including BASF and Henkel, are making strides to reduce greenhouse gas emissions amid stringent EU regulations, emphasizing the need for collaborative efforts across industries to achieve sustainability goals.
In recent discussions within the Corporate Growth and International Management Working Group of the Schmalenbach-Gesellschaft, an esteemed German association that connects business practitioners and academicians, insights have emerged regarding the efforts of large companies to reduce greenhouse gas emissions. The group is chaired by Martin Glaum and Ralph Schweens, with Alexander Gerybadze and Thomas Müller-Kirschbaum as key members. The discourse is driven by the urgent need for corporations, particularly those in energy-intensive industries, to address carbon emissions as global efforts to combat climate change intensify.
The European Union has set stringent regulations aimed at identifying, monitoring, and mitigating carbon emissions, thereby pushing EU-based companies to expedite their transition away from fossil fuels. This proactive approach contrasts with many North American businesses, which may not face the same level of regulatory pressure. A recent study focusing on leading chemical companies in Europe, specifically BASF and Henkel, highlights the potential for substantial progress in reducing greenhouse gas emissions, even under the demanding conditions characteristic of industrial operations.
The chemical sector has been identified as the largest industrial consumer of energy and the third-largest contributor to direct CO₂ emissions among various industries, according to data from the International Energy Agency (IEA). The complexity of this sector is underscored by its heavy reliance on energy-intensive production processes, alongside the fact that nearly half of its oil and gas requirement is linked to raw material inputs, rather than energy consumption per se. This interconnectedness is compounded by the intricate value chains that characterise the chemical industry, complicating efforts to assess carbon footprints and implement effective reduction strategies.
The study notes the significant influence that chemical companies have on other sectors, as they supply materials across a broad spectrum of industries. This interdependence necessitates a collaborative mindset and coordination across the entire industrial value chain, from the production of primary goods to the delivery of final products and services to consumers.
Authors Martin Glaum, who serves as a professor of international accounting at WHU – Otto Beisheim School of Management, and Alexander Gerybadze, a professor of international management and innovation at the University of Hohenheim, along with Thomas Müller-Kirschbaum, former senior vice president for innovation and sustainability at Henkel, and Ralph Schweens, a corporate adviser who was president of BASF’s Care Chemicals division until 2023, advocate for organisational frameworks that can effectively incorporate high-level climate goals into actionable policies. The authors argue that these goals can be successfully implemented within various company divisions and business units through collaborative efforts with partners involved in the value chain.
This shared commitment to addressing climate issues among major players in the chemical industry illustrates an important shift towards sustainability, as companies navigate complex regulatory environments and strive to meet both public expectations and corporate responsibilities with regard to environmental impacts.
Source: Noah Wire Services
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