Planet Positive
Chemicals

Pathways for the chemical industry to enable a sustainable global economy

THE CHEMICAL INDUSTRY: FROM PLANETARY PROBLEM TO CLIMATE SOLUTION

Chemicals are ubiquitous in our modern lives and underpin every sector of the global economy. But the industry’s current operating model has multiple negative impacts on our planet, from high carbon emissions to pollution.

Retaining the status quo aligns with 4 degrees of global warming by 2050 with catastrophic consequences for the planet.

The industry is at a crossroads: It can decouple from the fossil dependency of the past and become a planet positive force for the future by embracing a more circular, low emissions operating model, growing in scale and creating new jobs.

Without change, it risks reputational and regulatory crisis.

The Planet Positive Chemicals report provides an unprecedented blueprint for the future of the industry, exploring how it can reinvent itself as a climate solution, operate within planetary boundaries and power the global transition to net zero.

It presents practical, tangible steps for the industry to begin its journey to becoming planet positive.

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The chemical industry today

MULTIPLE HARMFUL PLANETARY IMPACTS

4

IPCC warming scenario with which the current chemical system’s emissions align

>98

of carbon feedstock in the industry comes from fossil sources

41

of plastic (made with chemicals) leaks into the environment or is burned

57

of fertiliser (made with chemicals) isn’t taken up by plants, most of which runs off into the environment

17

of chemical companies have a science-based emissions reduction target

The chemical industry 2050

A PLANET POSITIVE CLIMATE SOLUTION

82

of carbon feedstock comes from non-fossil sources

500

tons of carbon sequestered every year by the non-ammonia chemical industry

2.5

growth in annual chemical production driven by net zero economy

31

reduction in demand through circularity

29

new jobs created by a planet positive chemical industry

TEN ACTIONS FOR CHANGE

The Planet Positive Chemicals report takes a system-wide view of the likely demand for chemicals in a net zero world and explores the industry’s carbon emissions along its entire value chain, integrating careful consideration of how fast and at what scale specific net zero-enabling technologies could help the industry make the transition it needs. It explores the role of every player in the chemicals value chain in driving the transition to a planet positive chemicals system. It offers ten immediate actions to catalyse the change:

New study: Planet Positive Chemicals in Japan

This report presents quantitative pathways for the Japanese chemical industry to achieve net zero emission for scope 1, 2, and 3, offering strategies for a transition that considers Japan’s strengths and weaknesses, and proposes a future role for the industry, which may also be applicable to chemical industries in other countries and regions with similar constraints.

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"Concerted steps need to be taken to rapidly mitigate the chemical industry’s impacts and achieve net zero pollution. The Planet Positive Chemicals report provides an unprecedented and detailed roadmap for the industry and its value chain. It demonstrates that the necessary transformation is possible and outlines the need for stakeholders across the value chain to act now to ensure that the innovation and investments required are galvanized to tackle this existential challenge."

Professor Johan RockströmStockholm Resilience Centre, Potsdam Institute for Climate Impact Research

"We need realistic and immediate action from industry on the climate goals agreed at an international level. The road to a sustainable global chemicals system will not be an easy one, but the Planet Positive Chemicals report is a major contribution to begin this journey. I think it will become a global reference document for at least the next decade and the 10 recommendations will help focus action on what otherwise could be seen as an impossible task. From the creation of 29 million additional jobs, to the increased use of chemicals to drive a sustainable global economy, we want to see ambitious companies grabbing these opportunities and transforming the way we see the chemicals sector."

Chad HollidayChair, Mission Possible Partnership

“The chemicals industry is at a pivotal moment: without change it could lose its social license to operate. At the same time, the challenges are immense, and it is arguably the hardest sector to abate. The Planet Positive Chemicals sets out tangible pathways for the sector to become the enabler of a sustainable economy and develop a planet-positive system. The sector is in dire need of transformational leadership to drive the required changes and the report marks the beginning of an urgent and business-critical conversation for the industry and its value chain."

Paul PolmanCo-founder and Chair, IMAGINE

"Chemicals are at the core of a successful transition to a net zero economy: and the pace of chemicals decarbonisation could make or break our ability to reach essential climate targets. The Planet Positive Chemicals report sets out the challenge and makes clear that both supply and demand side actions will be critical to ensure that the sector moves away from dependence on fossil fuels. Achieving this transition is clearly technically and economically feasible but as the report emphasises, will require collaboration across the industry value chain - from governments to financiers and companies both within and outside the industry - if fast enough progress is to be delivered."

Lord Adair TurnerChair, Energy Transitions Commission

"The Planet Positive Chemicals report recognises clearly that the chemical industry lies at the heart of the global economy, and therefore it holds great potential to spark change across multiple sectors. By 2050, the sector can become a carbon-sink, using CO2 from the air to produce chemicals, and can be a vehicle for growth in the global south. In order to make this a reality however, the time to act is now. Effective regulations, investment and coordination is required to realize these opportunities and transform this sector into a force for good for sustainable development, climate and the environment."

Nick SternProfessor of Economics, Chair of the Grantham Research Institute on Climate Change and the Environment, London School of Economics

"I applaud the breadth and depth of this unprecedented report that quantitatively analyzed pathways for the chemical industry to reach net zero not only in scope 1 & 2, but also scope 3 upstream and downstream. While it contributes to clarifying uncertainties that have impeded the chemical industry’s progress in net zero, it is also a warning that has made us renew our resolve in sustainability. We are keen to collaborate with a broad spectrum of partners on this journey toward the new roles of the chemical industry. I am sure this report will be widely acknowledged and trigger many such collaborations in the industry to accelerate the transition this report calls for - we are proud to have sponsored this groundbreaking research."

Nobuo FudukaRepresentative Corporate Executive Officer, Executive Vice President, Mitsubishi Chemical Group Corporation

Discussion event: From words to actions

The Planet Positive Chemicals report represents an urgent call to action to the chemical industry and its value chain. We brought together experts from industry, policy and civil society to identify the immediate actions needed to accelerate the transition to a sustainable model of operation, and who should be accountable. You can watch the event below.

Louise Beale

News reporter & TV presenter

Naoko Ishii

Center for Global Commons, University of Tokyo

Chad Holliday

Former CEO of global chemical company DuPont

Sophie Hermann

Partner, Systemiq

Eveline Speelman

Partner, Systemiq

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This study is part of the Breaking the Plastic Wave series