(448a) Reinventing the Chemical/Materials Company: Transitioning to a Sustainable Circular Enterprise

In this paper we advance the proposition that decarbonizing the Chemicals and Mate-rials Industry (CMI) to meet the Paris Agreement goals is impossible without the transformation of the industry into a Sustainable Circular Chemicals and Materials In-dustry (CCMI). The implications of such transformation are extensive and multifacet-ed and would lead to a re-invention of the chemical company. CMI is defined as the set of industrial activities, which cover the transformation of raw material deposits in earth to consumer products, and include cement, iron and steel, non-ferrous materials (aluminum, magnesium, nickel, copper, rare earths, others), chemicals (organic and inorganic) and polymeric materials. Decarbonization of CMI is technically feasible, even though technical and economical hurdles exist. However, given the prevailing constraints from existing industrial infrastructure, limitations in the growth of zero-carbon electricity, limitations in the sustainably available biomass, and the competition for renewable energy by other sectors of the economy, notably buildings and transpor-tation, industry cannot achieve the Paris Agreement solely on the basis of technological solutions. Furthermore, extensive research on the decoupling of GDP from resource utilization indicates that it is impossible to meet the Paris Agreement goals with ob-served historical rates of decoupling. Decoupling needs to be complemented by suffi-ciency-oriented strategies and strict enforcement of absolute reduction targets.
Individual companies cannot transform the CMI to CCMI on their own. They need to reinvent themselves in strategic alliances with information, financial and management companies in the circular supply chain. In this paper we will discuss the primary incentives leading this transformation, such as: (a) Improved economic returns for the chemical/materials companies. (b) Significant expansion of global economic activity. (c) Broad expansion of economic benefits to underserved social groups. The paper will sketch the transition path, as well as the fundamental questions that the academic community must answer, and which underpin the sustainability of the transition.