(Yicai Global) Oct. 20 -- German chemical behemoth BASF has joined hands with 13 Chinese partners to form an alliance to promote social, economic, and environmental sustainability.
The companies, including property developer Landsea Holdings and animal health firm Comiy Bio Technology, have agreed to establish the Sustainability Covalence in Shanghai, the Ludwigshafen-headquartered firm said in a press release yesterday.
Most of the participants are BASF’s partners, suppliers, or customers. The group includes chemicals logistics firm Xiangfeng Group, reagents developer Xilong Scientific, and biopharma company Huaheng Biotechnology.
The group is expected to work on diverse projects. Shanghai-based Comiy and BASF will explore a series of nutrients and insulation materials to reduce energy consumption and greenhouse gas emissions in breeding. Epoxy resin manufacturer Techstorm is developing a coating technology to improve wind parks' efficiency.
Sustainable development requires the effort of all players in the whole value chain, Zheng Daqing, senior vice president of BASF China's business and market development, said to Yicai Global. For example, a buyer can place environmental requirements for suppliers. “Working in such a cycle is the best sustainable practice in the chemical chain.”
Balanced development is particularly important for the petrochemical industry, a major producer of carbon emissions, Fu Xiangsheng, vice chairman at the China Petroleum and Chemical Industry Federation, said during the opening ceremony.
Industries are slowly aligning with China's goal of carbon neutrality by 2060. Since September, some local governments have closed some highly polluting petrochemical firms, or cut their plants' power supply, due to China's carbon-neutral goals, which has had a great impact on the industry, said Fu. "This is not the right way to deal with the challenges.”
In the next five years, key emission fields, including the petrochemical industry, will be incorporated into the national carbon credit market, according to Fu. "The Sustainability Covalence initiated by BASF has set a good example for Chinese and foreign petrochemical firms to follow in sustainable development."
Sustainable Profits
Economic benefit doesn't always need to be sacrificed for environmental goals. In this regard, innovation and technology are key, according to Zheng. For example, BASF's steam crackers use renewable energy instead of fossil fuels to improve efficiency, he said.
More is expected to be done. The European company intends to cut its greenhouse gas emissions by a quarter by 2030 from 2018. Net-zero emissions should be reached by 2050 amid rising efficiency.
History proves, the ambitious goals are not unfounded. From 1990 to 2018, BASF’s carbon dioxide emissions were reduced by 50 percent. Meanwhile, its production capacity doubled.
Going forward, cooperation is needed. "We firmly believe that through our joint efforts across the entire value chain, we can generate greater social, economic, and environmental impact," said the SVP.
"Together in the Sustainability Covalence, we will share best practices, form strong collaborations, and actively contribute to China’s objectives for sustainable development."
Editor: Emmi Laine, Xiao Yi
