Focus on sustainability: PPCJ speaks to BASF Dispersions Asia Pacific about its holistic approach to sustainability

PPCJ spoke to BASF’s Dr. Andreas Fechtenkoetter, Senior Vice President, Dispersions, Asia Pacific, about how product innovation, customer partnerships, and transparency are paving the way for a sustainable future and creating a win-win situation for BASF and its customers

Q. What are the current prominent trends in sustainability in the coatings industry? Are there any upcoming trends in sustainability that you think will become a major focus in the future?

A. In the coatings industry, sustainability has become a crucial focus area due to the increasing commitment from countries and international companies, including our customers, towards sustainable practices. This heightened dedication is evident through the setting of sustainability goals and the growing demand for transparency and reporting on sustainability metrics from investors and end consumers.

Several prominent trends are currently shaping sustainability in the coatings industry. These include the transition from solvent-based coatings to water-based alternatives, the shift towards safer products such as APEO-free and biocide-free formulations, lower CO₂ footprint products, utilisation of renewable/bio-based materials, development of higher efficiency solutions that lessen resource requirements for customers, or circular solutions that would elongate product lifespan.

Moreover, there is a rising demand for Ecolabels in various sectors, such as paper coatings and adhesives, as well as the adoption of the Healthy Building Label in China.

Another emerging trend is the increasing emphasis on health and wellness-related products, such as coatings with low odour, super low volatile organic compounds (VOC) and anti-bacterial properties.

Q. How does BASF Dispersions Asia Pacific integrate sustainability into its business strategy?

A. As one of the market leaders, BASF is the first chemical company to certify biomass-balanced products in accordance with the new REDcert² standard, specifically designed for the chemical sector. This certification serves as a testament to our dedication to providing sustainable solutions to our customers, confirming proper biomass allocation and setting them apart in a fiercely competitive market. Across the Asia Pacific region, five of our dispersion plants have obtained REDcert² certification to deliver biomass-balanced products. Moreover, we offer detailed product carbon footprint information for all our offerings, validated by TÜV.

Furthermore, our robust commitment to research and development is channelled towards developing sustainable solutions for the future, enabling us to stay at the forefront of innovation and differentiation from competitors. Our strategic focus includes continuous innovation in products and processes aimed at combating climate change and providing better wellness indoor environment, addressing our customers’ most pressing challenges and operating our plants in an environmentally responsible manner. These pillars are integral components of our business plan, underscoring our holistic approach to sustainability and responsible business practices.

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Q. In what ways does BASF Dispersions Asia Pacific collaborate with customers, suppliers, and other stakeholders to drive sustainability throughout the value chain?

A. Our commitment to sustainability is reflected in the tangible benefits our customers experience through our product features. Moreover, we strategically consider ways to minimise CO₂ emissions throughout the value chain. For instance, we have implemented a pipeline that links our plants with a supplier, enhancing transportation efficiency and reducing carbon emissions. This approach fosters a comprehensive sustainability strategy across all touchpoints.

To manage our scope 3.1 emissions, we introduced a global ‘Supplier CO₂ Management Program’ to create transparency and better steer and, in the long term, reduce upstream emissions. As a first step, we ask our suppliers to provide Product Carbon Footprints (PCFs) for our raw materials. We support them by sharing our knowledge of evaluation and calculation methods. In this way, we are also contributing to the standardisation of PCF calculation.

Q. How does BASF Dispersions Asia Pacific ensure transparency and accountability in PCF reporting and communication?

A. BASF has developed a digital application called SCOTT. SCOTT stands for strategic CO2 transparency tool. SCOTT is used to calculate the product carbon footprints of all our sales products. It combines the Scope 3 contributions from the raw materials with the energy that is purchased externally and the on-site emissions from BASF’s production plants and converts all that into product specific carbon footprints.

The calculations meet the relevant ISO standards and are also in line with the Together for Sustainability methodology, which is the gold standard for a PCF calculation in the chemical industry. To further increase the accountability, all of this is certified by the TÜV. BASF once again ranked as one of the world’s leading companies on CDP’s climate list in 2023.

Q. What role do innovation and technology play in driving sustainability within BASF Dispersions Asia Pacific? Are there any notable examples of innovative solutions that have contributed to sustainability?

A. Innovation is one of the core values of BASF. Beyond focusing solely on high-performance products, we consider human-centric elements throughout our research and development endeavours.

One notable innovation is our proprietary “IO-Hybrid Technology”, tailored for interior wall coatings. This technology enables interior paints to be “in-can biocide-free”, optimise TiO₂ to maintain high opacity, possess antimicrobial properties against select bacteria and viruses within 24 hours, and ultimately result in lower VOC emissions and product carbon footprints. This innovation exemplifies our commitment to sustainable practices and human well-being. Moreover, we are actively promoting the concept of upcycling. Our water-based Acrodur ^® binder facilitates our customers to recycle and transform used bamboo chopsticks into new marketable forms, embodying our dedication to circular economy principles.

In our efforts to diminish product carbon footprints, we offer biomass-balanced and bio-based products. For instance, our bio-based interior paint not only reduces carbon footprints but also serves as an exceptionally low-odour polymer emulsion, free of coalescent agents.

Through these innovative solutions and practices, BASF is navigating towards a sustainable future across various dimensions, illustrating our holistic approach to sustainability and commitment to creating a better future.

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Q. As BASF Dispersions Asia Pacific operates a network of production facilities across the Asia Pacific region, could you shed light on any notable sustainability projects that have been undertaken within this network, or any plan in the near future?

A. Operating our plants in an environmentally-friendly way is our core principle. Several of our facilities are powered by green energy sources, emphasising our commitment to sustainable practices.

A key focus lies in reducing energy consumption through various strategies, such as enhancing temperature control, deploying frequency converters and recovering waste heat for steam generation. These measures have led to significant reductions in steam, electricity usage, and wastewater generation. Notably, our team in Japan received a prestigious award in 2024 from the Energy Conservation Center, Japan, in recognition of their exceptional achievements in this regard.

Another instance is at one of our sites we provide sludge generated at waste treatment plants as co-fuel for cement manufacturing, effectively eliminating the need for landfill disposal. This innovative approach underscores our dedication to environmental stewardship.

These initiatives and future plans within our production network exemplify BASF Dispersions Asia Pacific’s unwavering dedication to driving sustainable practices and fostering a greener, more sustainable future.

Q. What advice would you give other executives looking to boost sustainability in their organisations?

A. I believe there are several key strategies that executives can focus on to enhance sustainability within their organisations.

Firstly, it is crucial to advocate and educate on sustainability. By actively engaging with  internal and external stakeholders on sustainability, you can inspire them to integrate sustainable practices along the value chain, pushing the industry to the next level.

Secondly, establishing a sustainability mindset and skills is fundamental, by embedding sustainability into the organisation’s core values and providing training to enhance skills. For instance, we conducted PCF and sustainability training for our colleagues, so that they can not only enrich their knowledge but also effectively support customers in reducing their sustainability journey, driving tangible impact.

Listening to the market and customers is essential. Understanding consumer expectations around sustainability and using this insight to tailor initiatives can ensure that organisations align their sustainability efforts with market demands, fostering stronger customer relationships and market positioning.

Lastly, I encourage executives to be bold and committed to their sustainability strategies. Implementing innovative and ambitious sustainability initiatives, and prioritising long-term environmental sustainability over short-term gains, can position organisations as leaders in sustainable practices, paving the way for a greener future.

We will host a webinar in October focused on our sustainability solutions. Everyone is welcome to join us.

BASF will host a Sustainability Solutions webinar on October 17th at 2.30pm (UTC+8). Registration information can be found here:
https://webinars.on24.com/BASF_DispersionsAPAC/sustainability_1?partnerref=APCJ

Click here to find out more.