Between April and July 2016 Finch & Beak conducted a research on the maturity of circularity in the chemical sector. The methodology consisted of a combination of desk research, an online questionnaire, in-depth interviews, and meta-data from Dow Jones Sustainability Index composer, RobecoSAM and eRevalue. The key findings of our study are that frontrunners are more often specialty chemicals companies, positioned at the end of the value chain. Their approach towards a circular model is characterized through a higher innovation success rate, more value chain collaboration and higher leadership commitment.

1. Düsseldorf, 8th September 2016
THE STATE OF
CIRCULAR ECONOMY
INNOVATION WITHIN
THE CHEMICAL
INDUSTRY
NO TIME TO WASTE

2. ANY QUESTIONS?“We help companies accelerate their
performance on today’s biggest
sustainability challenges.”
No Time to Waste
About Finch & Beak
https://youtu.be/VxRvYeDhOBs

3. How we help create immediate impact
Lean Reporting
Less effort, optimized
outcomes
Business
Innovation
Sustainable growth,
immediate results
Partnering
Impactful value chain
collaboration
Our Finch & Beak proposition
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4. Background of our research methodology
1.Online survey conducted in April 2016 among senior employees in
the field of sustainability and innovation
2.Interviews with knowledge institutions CDP, UNEP, ChemSec, VNCI,
Green Chemistry Campus and MVO Nederland.
3.Consolidated Dow Jones Sustainability Index data (2011-2014) on
innovation management and customer relationship management. All
data was anonymized, no company-specific information was
obtained.
4.Sector-wide industry data from eRevalue providing insights on what
chemical companies report on regarding circular economy and the
SDGs.
Frontrunners
Data Providers
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5. ANY QUESTIONS?“AkzoNobel, DSM, Dow and Clariant are the only companies who
mention circular economy in their publications and have included it in
their policy statements or management systems.
All four are DJSI frontrunners.“
Source: Datamaran & Caspian Tool, eRevalue, August 2016
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6. Sustainability trends through a stakeholder lens
Emergence of the Sustainable
Development Goals
Increased importance of
ESG data
Agility: Corporate learning
from experiences with
startups
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InvestorsGovernments Companies

7. 0
1
2
3
Frontrunners
Sector Average
Climate Action and Clean and Affordable Energy are preferred
Source: Datamaran & Caspian Tool, eRevalue, (August 2016)
(scores rangng from 0 = not mentioned, to 3 = mentioned often) No Time to Waste

8. “There can be little downside to gradually incorporating climate factors into the investment process”
BlackRock: “Climate is King”

9. 0
1
2
3
Frontrunners
Sector Average
More firepower needed for the “Partnerships for the Goals”
Source: Datamaran & Caspian Tool, eRevalue, (August 2016)
(scores rangng from 0 = not mentioned, to 3 = mentioned often) No Time to Waste

10. Frontrunners recognise the importance of ESG data better
0.29
2.57
1.00
0.23
1.17
0.61
0
0,5
1
1,5
2
2,5
3
ESG Compliance ESG Management ESG Risk Management
Score on public disclosure for ESG topics
(scores rangng from 0 = not mentioned, to 3 = mentioned often)
Frontrunners Sector Average
Source: Datamaran & Caspian Tool, eRevalue, (August 2016)No Time to Waste

11. Stakeholder
Awareness
Business
Case Data
Fast
Execution
Agility
Agile companies are aware, business case driven and fast
11No Time to Waste

12. ANY QUESTIONS?
Agility of start-ups attracts corporate interest
• Think follow-through. If you don't shoot for big enough wins from the start, there may not be enough to
show for to get you more resources later on;
• Be prepared to work at the speed of start-ups. Don't keep them waiting on you.
• Select the right partners to share the knowledge. Doing it alone can be scary and costly.
Innovation Culture change New Markets Platform creation
Events
Support Services
Startup programs
Accelerator/ Incubator
Spin-offs
Investments
M&A
Source: Innovation Channels and their Application, INSEAD and 500Startups, February 2016
Least recommended Most recommendedRecommended
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13. Three key research findings
Specialty
chemical firms
are more mature
Frontrunners have
higher innovation
success rates
Partnering
capabilities
are key
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14. 0
10
20
30
40
051015202530
MarketCapitalizationinmio$(2015)
CDP Super League Table Scores 2015
Specialty chemical firms are leading in reporting – CDP data
Base
Polymers
Specialty
No Time to Waste

15. ANY QUESTIONS?
“Frontrunners have more environmental innovations for both
processes and products, and generate a significantly higher revenue
share with those innovations“
Source: RobecoSAM, consolidated DJSI data (2011-2014)
30
40
50
60
70
80
30 40 50 60
% of Env. product innovations vs. total product innovations
%ofEn.processinnovations
vs.totalprcoessinnovations
Frontrunners
Sector Average
22.7%
25.4%
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16. Our new strategy puts partnerships front
and center for success in creating impact
Source: Novozymes and INSEAD case study (October 2016)

17. Making it work in practice Some sample tools for sustainable innovation

18. ANY QUESTIONS?
No Time to Waste
CE opportunity identification requires a combination of
value chain materiality analysis and LCA data

19. Outside in
Identify company materiality issues
and assess relevance to stakeholders
Ideation: build your own innovation opportunity matrix
Opportunities
Map in a matrix to identify
opportunities for innovation
Inside out
Use LCA to identify hotspots
INNOVATION OPPORTUNITY MATRIX
relevance
impact
No Time to Waste

20. ANY QUESTIONS?
Commence by selecting the AREA OF IMPROVEMENT
(resource) and defining the IMPACT TARGET
No Time to Waste

21. DSM Clean Cow project
Example of working with the Business Model Canvas
No Time to Waste
©: Finch & Beak 2016

22. ANY QUESTIONS?
EVENT
Download the full report here
www.finchandbeak.com

23. Breda, 8th September 2016
THE STATE OF
CIRCULAR ECONOMY
INNOVATION WITHIN
THE CHEMICAL
INDUSTRY
NO TIME TO WASTE