What does sustainability mean for Univar and where are you currently with your sustainability initiatives?
Univar Solutions views sustainability as integral to its role as a chemical distributor, emphasizing the connection of products and expertise within the chemical and ingredients industry to support communities in staying healthy, fed, clean, and safe. The company is focused on creating positive impacts across all aspects of life by making products more sustainable, connecting with suppliers to understand their needs, and ensuring that these efforts meet customer requirements. Sustainability at Univar is about doing business more efficiently and with less or positive impact, essentially aligning with the principles of ESG (Environmental, Social, Governance), highlighting a commitment to better business practices supported by strong leadership.
How does Univar Solutions work with suppliers to promote sustainability?
Univar Solutions approaches sustainability by recognizing the diverse values of stakeholders, emphasizing the need to connect the right materials with the right customers. This involves creating a framework that addresses customer needs for sustainability, such as biobased and traceable products, while also focusing on certifications and standards like RSPO and identity preservation. The company aims to be a partner that facilitates environmental and social good by connecting suppliers' sustainable efforts with customers' varying priorities, whether that involves carbon footprinting or other sustainability criteria.
Could you elaborate on the framework Univar has developed around six pillars of sustainability?
The framework developed by Univar Solutions was designed based on customer feedback and the observation of key themes in sustainability, addressing broader regulatory and geopolitical drivers. It includes six characteristics: carbon footprinting, circularity and circular solutions, safer substitutes, and others, reflecting the company's commitment to evolving sustainability priorities. This framework serves to unify the language of sustainability across thousands of suppliers, translating diverse sustainability efforts into a coherent strategy that meets the specific needs of customers, thereby fostering a common understanding and approach to sustainability.
How does Univar Solutions assist clients with sustainability reporting amid varying regulations?
Univar Solutions navigates the challenge of balancing sustainability reporting with innovation by leveraging its position to meet diverse regulatory requirements across different regions. The company sees regulatory requirements as a baseline, aiming to exceed these through its unique capabilities, such as supply chain transparency and product certification.
Univar's approach is to integrate sustainability into everyday business, ensuring that it becomes a part of the company's identity rather than an add-on, thereby maintaining a competitive advantage through superior safety, transparency, and sustainability practices.
What does the "S" in ESG mean to Univar, and how do you feel it impacts the chemical industry, especially in the US?
The "S" in ESG represents a critical component for Univar, particularly in emphasizing safety, diversity, equity, inclusion (DEI), and community engagement. Univar has been proactive in setting numerical goals for DEI before it became a widespread practice, demonstrating leadership in fostering an inclusive culture. This commitment is evidenced by significant improvements in DEI metrics, reflected in awards and a 100 rating on the Corporate Equality Index. Community engagement, including volunteering and fundraising, plays a vital role in supporting Univar's culture, allowing employees to contribute to causes they care about. These initiatives highlight Univar's dedication to making a positive impact within the community and the industry at large.
In the context of the upcoming election and sustainability goals, what do you see as the biggest challenge for the chemical industry?
Addressing the targets for 2030 and the broader goal of net-zero alignment by 2050, the chemical industry faces significant challenges, particularly in decarbonizing. While some of the largest players in the industry show ambition, the path to achieving net-zero emissions involves complex challenges, especially for chemical producers with long-standing operations. The industry is exploring innovative solutions, such as alternative feedstocks and advanced technologies, but scaling these up to meet Science Based Targets Initiative (SBTI) goals for 2030 appears daunting. Univar Solutions has focused on realistic goal-setting to avoid greenwashing, emphasizing the importance of setting achievable targets and making tangible progress toward sustainability.
Looking ahead, what can we expect from Univar in terms of sustainability efforts and initiatives?
Univar is poised to release a report informed by CSRB, focusing on double-materiality and making disclosures that highlight the company's risks, opportunities, and impacts. This step marks a significant development in Univar's sustainability journey, offering a clearer strategy for addressing scope 3 emissions alongside existing commitments to scope 1 and 2. The company's leadership in sustainability is further demonstrated by its comprehensive approach to working with customers and suppliers to align on sustainability goals. Despite potential regulatory changes stemming from elections in various regions, Univar anticipates continued progress in ESG efforts, supported by pragmatic and sensible policies that facilitate environmental and social improvements.
