Industry

Chemicals, companies spend 2% of turnover on social and environmental sustainability

Federchimica president Francesco Buzzella at the presentation of the 30th Responsible Care report: 'Delicate moment, the sector's leadership must be supported in social and economic terms'

by Cristina Casadei

10 December 2024

8' min read

Key points

Commitment to sustainability calls for support from institutions and politics
Responsible care-Federchimica report
Emission reduction and energy efficiency
Overcoming the green deal
The awards

8' min read

Doing - as well as talking about - environmental and social sustainability requires a lot of resources, as chemical companies are well aware, which spend 2% of the economic value generated on these issues between investments and operating costs: this means a total amount of 763 million euros, just if we consider the 173 companies in the Responsible Care-Federchimica programme, now in its 30th year. Their aggregate turnover is EUR 35.6 billion, or 53% of the sector's total of EUR 67.4 billion. So, considering the entire sector, we are talking about an expenditure dedicated to the sustainability chapter, which includes health, safety and the environment, of around 1.5 billion euros. To which must be added one billion euro of investment in innovation, research and development. Having made 30, the chemical industry is already preparing to make 31. Their gaze is always turned towards the future, but without denying that "it is a very delicate moment, also due to the well-known geopolitical events, which expose companies to tensions that are difficult to manage on international markets," explained Federchimica president Francesco Buzzella at the presentation of the thirtieth Responsible Care report, which took place at the Nilde Iotti Library of the Chamber of Deputies. In his opening greeting, the president of the Chamber, Lorenzo Fontana, stressed that 'this is a crucial sector for the development of the country and to make it more competitive. The data show how much it contributes to the Italian economy, in terms of innovation, where it invests huge financial and human resources, generating positive spillover effects in numerous sectors. But also in terms of employment: if we consider the allied industries, it employs 300 thousand people'.

Commitment to sustainability calls for support from institutions and politics

For his part, Buzzella reiterated that 'as an industry and as chemistry we are committed to pursuing the ecological and digital transition, but we need the support of institutions and politics. The challenge we are experiencing is truly epochal'. It is, however, experienced on the basis of numbers, such as those of Responsible Care, which show that 'safety, health and a high level of well-being and healthiness in the workplace are distinctive elements of the chemical sector. A result that is also due to the commitment of the sector's social partners in the promotion of social responsibility and contractual welfare, which has contributed to the creation of a modern, flexible and inclusive employment relationship, aimed at providing answers to the needs of workers and their families," said the president of Federchimica.

The Responsible Care-Federchimica Report

Let the numbers speak for themselves, those of the report presented yesterday by the chairman of the Responsible Care-Federchimica programme, Filippo Servalli, say that in 2023 the chemical industry generated a production value of EUR 67.4 billion. Of this, 91.4% (EUR 61.6 billion) was distributed to stakeholders, in the form of purchases of goods and services, personnel expenses and taxes paid to the public administration. In this redistribution, the chapter employee expenses, with EUR 6.4 billion, weighs almost 10%. In addition to almost one billion in employee-related taxes and social security charges, there are also 900 million with which the chemical industry contributes to the public budget and the provision of services to citizens. Still on the subject of work, among the most significant data emerging "is the commitment of companies to health and safety in the workplace: the incidence of accidents in the sector is 39% lower than the manufacturing average," Servalli noted. Since 2010, the number of accidents, with the same number of hours worked, has decreased by 44% and shows a further 10% drop compared to 2019, also thanks to the awareness of employees towards safe and responsible attitudes: in the last 13 years, the number of training hours per employee has increased by 23%.

The president of Inail, Fabrizio D'Ascenzo, recalling the long collaboration with Federchimica, referring to the data that emerged, emphasised that they are 'a very important indicator to represent the situation. Their analysis is also fundamental for refining prevention and understanding where we must intervene and in what manner. If there is a downward trend for some phenomena, it is positive, but we must not be complacent. The chemical industry is certainly a safe place, it is a virtuous sector where there is great commitment to health and safety, but we can improve. Zero accidents may be an ideal goal, but we have to try. That is why it is important to spread the culture of safety and to make 'a reasoning on training,' added D'Ascenzo. 'The culture of safety starts with making people responsible. We do not tend towards a sanctioning approach, we think it is necessary to make people mature in the conviction of the importance of working in safety. We must start in schools to explain this'.

Driving the positive results on health and safety is all the innovation introduced thanks to digital technologies but also through industrial relations. Marco Falcinelli, secretary general of Filctem CGIL, speaking on behalf of the sector's trade union world, recalled that the sector is preparing 'to face the renewal of the national collective labour agreement, where we must hold firm on two central issues. On the one hand, the people, without whom we would not be able to do the things we have done so far. People must be at the centre and convinced of the great transformation process underway. On the other hand, our industrial relations system must continue to express the added value that has characterised our relations. It will continue to set examples and be a model for industry in our country'.

Reviewing the history of industrial relations in the chemical industry, the trade unionist noted that 'there is no other sector of industry that has addressed social and environmental sustainability as this one has. Just think of the fact that the national collective agreement in the early 1980s anticipated in content the safety legislation that would be issued after the tragic events of Seveso. There is no other industrial sector more environmentalist than chemistry, but ours is a country that continues to cultivate an anti-industrial sentiment that prevents progress. If we do not want to indulge in theories of happy degrowth, we must think that Italy needs more industry no less industry, more chemistry no less chemistry. This is why we ask institutions and politics to listen to us and support us. A message also addressed to Europe, which must act by putting the importance of industry at the centre, if we do not want Europe to be increasingly dependent on the choices of China and the United States'.

Emission reduction and energy efficiency

The figures in the Responsible Care report represent a large part of the sector: they relate to 173 companies with 459 sites and 44,411 employees. Overall, there are 112,000 direct workers. They become 324 thousand if we consider the allied industries generated in other sectors. If we look at the environmental front, the results of the report say that in 2022 the chemical industry in Italy directly emitted 11.6 million tonnes of CO2 equivalent (scope 1), 2.8% of the country's total (in 1990 they represented 6.2%). To cope with the large energy chapter, one of the most critical, the chemical industry's strategy has been to increase efficiency and reduce consumption: compared to 1990, the industry has cut it by 50%. Compared to 2000, it has also increased its energy efficiency by 38.4%, exceeding the EU improvement target of 32.5% to be achieved by 2030. The energy efficiency of chemistry compared to 1990 is more than 60%. But there is more because wherever possible, fossil fuels have been replaced with renewable energy, which has almost quadrupled from 4.1% of the total in 1990 to 15% in 2022. This increase is mainly due to the purchase of electricity from renewable sources, which increased from 16.4% in 1990 to 34.9% in 2022. The reduction in energy consumption is also accompanied by a reduction in emissions. Since 1990, emissions from the chemical industry have fallen by 64%, a figure that already puts this industry in line with the ambitious European Green Deal target for 2030 (-55%). Not only that, considering emissions - direct and indirect (scope 1 and scope 2) - over the last 30 years the chemical industry has reduced its climate change impacts by 67% and is committed to an increasingly circular economic model: recycling (45.5%) is the first mode of waste destination, a significant increase compared to 2015 (it was 23%).

Overcoming the Green Deal

These data tell that 'for 30 years, the Responsible Care Report has been certifying the commitment of chemical companies to sustainable development: a value that we transfer to the numerous downstream sectors and directly into consumer products through process and product innovations and new technologies, with results of absolute excellence. It is high time that this primacy was recognised, accrediting us as an indispensable industry for achieving the ecological transition,' demanded Buzzella, who suggested opening a broad reflection on the objectives of the Green Deal. For many reasons. "They must be contextualised in the international geopolitical scenario" and must prompt us to "consider the issue of the competitiveness of the European economic system and, at the same time, find global solutions to the challenges of the energy, climate and ecological transition". The recent work of COP 29 showed how important it is "to have a scientific, pragmatic and non-ideological approach, but also a favourable environment for research, development and innovation, as well as the ability to attract capital, investment and human resources of excellence," said Buzzella. What certainly helps is "a clear, certain and streamlined legislative framework and an efficient public administration," continued Federchimica's chairman, addressing politics: "Chemistry is indispensable for progress that is compatible with the new environmental and social challenges. However, we need the support of everyone, first and foremost the government and institutions, which must be at our side on this path'.

From Bracco to Sol, five awards for projects on ecology and people

From Bracco to Sol, Infineum, Italmatch chemicals and Liquigas, five Responsible Care awards were presented yesterday for their commitment to ecology and people. Bracco for the "Solvent recovery plant at the Ceriano plant" project, Infineum for the "ZDDP Eco-Mode for reducing stoichiometric excess alcohol", Italmatch chemicals for the "Use of hydrate inhibitors derived from salmon waste in the oil and gas industry", Liquigas for the plan to "Give value to waste with the circular economy in collaboration with Contarina S.p.A.' and finally Sol for the 'Pilot project and information campaign dedicated to reducing collision and investment risks within the group's units'.

A few details of the individual projects tell of the impact they have had. The Bracco Group's project led to the streamlining of solvent recovery plants, introducing technological advancements, and made it possible to increase process yields, reduce solvent losses - by reducing the COD load in wastewater treatment - and optimise utility consumption (e.g. reducing water consumption by 500 m3/hour). The end results were improved environmental sustainability (6,500 t CO2eq. saved equal to 5% of the carbon footprint) and a reduction in raw material procurement and recovery costs.

Infineum's project was carried out on a production line dedicated to the formulation of additives for lubricating oils (ZDDP - zinc dialkyldithiophosphates, components used due to their anti-wear and anti-oxidant properties) and achieved a 50% reduction in the stoichiometric excess of alcohol in reaction. This minimised the use of raw materials (savings in consumed alcohols of around 300 t/year), reducing the mixed water/alcohol waste generated and associated greenhouse gas emissions (around 800 tCO2eq. per year avoided). Italmatch chemicals' project created hydrate inhibitors derived from salmon waste, used in reduced dosages compared to traditional solvents. The new technology transforms fish waste into a valuable resource and offers an environmentally friendly alternative to fossil inhibitors, characterised by high biodegradability and minimal toxicity. Improved circularity, reduced environmental and carbon footprint, improved eco-toxicological profile and increased safety profile for operators. Liquigas' project, through a circular economy supply chain collaboration, valorised the collection of organic waste for the production of liquid biomethane. The fuel was used to power the fleet of the municipal company that manages the waste of 49 municipalities in the province of Treviso, through a plant designed, built and maintained by Liquigas. Thus, CO2 emissions were reduced (up to 85% compared to the use of diesel) and SO2 and PM10 emissions were minimised (over 95%). Finally, Sol's project concerns the campaign, developed during 2023, for the elaboration and implementation of solutions to reduce collision and investment risks within the SOL Group's Units through the illustration of eight simple behavioural rules focusing on handling, maintenance and roading. For each rule, safe behaviour was identified and, in some cases, directly compared with risky behaviour.