The chemical industry has been impacted more than most by the effects of geopolitical and supply disruptions—from port congestion and skyrocketing shipping costs to challenges sourcing critical metals and minerals, including nickel, aluminum, titanium, and iron. At the same time, ESG pressures are seeing chemical companies make the shift toward more eco-friendly products, while improving supply chain resilience and adopting digital tools to become more robust and agile.
ESG has long been on the radar of chemical companies, but they’re now under even more scrutiny from regulators and stakeholders to ensure environmental transparency and compliance. While many chemical companies already have an ESG framework in place, new regulatory pressures and stakeholder demands are advancing timelines. They’re also under pressure to improve diversity, equity, and inclusion in the workforce, particularly as they face a global shortage of skilled workers.
With an inflationary economy impacting the manufacture of consumer goods, bulk chemicals are susceptible to input commodity prices, thus leading companies to look for ways to offset those costs. At the same time, with the industry’s ongoing portfolio transformation, they need to stay nimble in the mergers and acquisitions (M&A) arena. Remaining viable means chemical companies must adapt to a different business environment and those that are most agile are expected to be best placed to capitalize on new market opportunities.
