Raw Materials & Sustainability

COSSMA: What actually is a sustainable raw material? What conditions must be met for a raw material to be “sustainable”?

Kelly Gilroy: That is the question everyone wants answered! Currently, there is not one generally accepted definition of sustainability, especially at the raw material level. However, there are standards, such as International Organization for Standardization (ISO) and third-party accreditations such as Roundtable on Sustainable Palm Oil (RSPO) and Ecocert, which we have incorporated along with feedback from customers and suppliers to create a sustainable and natural product framework. This framework supports our customers on their sustainability journeys by providing clarity and documentation for six sustainability characteristics at the product level. We collaborated with our global supplier base to collect data that characterises a product as sustainable in these categories: bio-based and natural feedstocks, product carbon footprinting, safer substitutes, circular materials, social impact accreditation, and environmental accreditation. Univar Solutions has developed and connected systems to store and maintain the data supporting these sustainable characteristics and we plan to make this information available soon on our website. The Sustainable & Natural Product Portfolio is available in the US and will soon be available to Europe, Canada, Middle East, Asia, Africa, and Latin America. Today, the sustainability aspect with the most products and sustainability evidence is the bio-based and natural feedstocks, followed by social and environmental accreditation.

What should one look for in procurement if a raw material is to be sustainable?

In addition to sustainability characteristics of the raw material, it is critical to evaluate the supply chain. We have experienced global supply disruptions over the last four years caused by the pandemic, climate change, geopolitical events, and social impacts. This is the new normal, and as a global leader in chemical and ingredient distribution, we are committed to conducting our business in an ethical, responsible, and sustainable manner. We demonstrate this commitment by following aligned standards and frameworks for better business practices such as the principles of the United Nations Global Compact (UNGC) as well as the United Nations Sustainable Development Goals (SDGs). We also believe in improving transparency and accountability through reporting in accordance with the Global Reporting Initiative (GRI) lowercase standards.Our Supplier Code of Conduct sets out our expectations for our suppliers and service providers to align with the high standards we set for ourselves. At Univar Solutions, we issue a Supplier Code of Conduct and ask our global supply partners to acknowledge it or provide their Supplier Code of Conduct to clearly communicate and align on critical business practices that demonstrate ethics and sustainability. We also work with Ecovadis to share our data and assess 80% of our supplier spend. These are two tools that procurement departments can leverage to evaluate supply chain risk and resiliency.

Why is sustainability so important for raw materials?

At a macro level, sustainability is about doing the right thing. The SDG are a blueprint for peace and prosperity for people and the planet that more than 190 countries agreed to achieve by 2030. Raw materials play an important role in the achievement of SDG 9, which “builds resilient infrastructure, promotes inclusive and sustainable industrialisation, and fosters innovation.” Consumers are more educated than ever and more willing to invest time and resources to better understand the composition of the products they purchase, sourcing methods, the carbon footprint, manufacturing practices, and more.  Global connectivity enables transparency in labels, brand promises, and financial and sustainability reporting at the environmental, social, and governance (ESG) levels. Sustainability regulations will continue to provide new opportunities for raw material producers to tell their innovation stories and educate the public on the sustainability characteristics of their products. The combination of innovation, technology, and sustainability are already creating a more sustainable world and raw materials are foundational to this transformation.

What are the advantages and challenges of sustainable raw materials? 

Sustainable raw materials are often designed with bio-based and natural feedstocks, upcycled ingredients, lower greenhouse gas (GHG) emissions, waste reduction, and improved water and energy requirements. It is important to evaluate sustainable advantages throughout the product life cycle, for example, bio-based materials ideally come from renewable sources that do not compete with the food supply. Working with natural ingredients can require new processes and may require reformulation, which poses challenges for companies in terms of resources and cost. 

Over the last few years, we have experienced the impact of climate change and geopolitical events on sustainable raw materials, which has encouraged many companies to better understand the complete supply chain and build resiliency into their system. 

Quality is also a challenge for all products, particularly for natural ingredients, which often require testing to make sure that the products are not adulterated or contaminated with pesticides. These advantages and challenges of sustainable raw materials must be evaluated as there are nuances versus traditional materials, but in chemicals and ingredients, this is standard operating procedure, so this is not a new challenge. 

As sustainability evolves, we are learning to evaluate all advantages and challenges early in the development process and ensure that pilot-scaled material is fully tested, as working with natural ingredients is new for many companies. 

Should/must they be labelled? How can you recognise it?

There are many labeling requirements already in place, with many sustainable accreditations already well established. One example is Ecocert, an organic certification organisation, founded in France in 1991. Although it is based in Europe, it conducts inspections in over 80 countries, making it one of the largest operations of its kind in the world. The organisation primarily certifies food and food products, cosmetics, detergents, perfumes, and textiles. The organisation is also a leading certifier of fair-trade food, cosmetics, and textiles as per Ecocert Fair Trade standards. In the US, the United States Department of Agriculture (USDA) and specifically the Agricultural Marketing Service (AMS) define organic products and labelling requirements. 

The advantage of labels is that consumers know that there is a standard definition and there are often audit requirements. As more products contain labels, the public becomes more familiar and can research in detail, which is recommended as certifications increase. It is important that buyers understand what the certification truly means.

Which raw materials are particularly sustainable, and which are not?

Nature-derived materials are often considered sustainable, although the full supply chain must be evaluated to make sure natural ingredients are renewable, energy and water efficient, and not in competition with the food supply. Many customers are interested in bio-based and natural ingredients, and there are many environmental and social accreditations to support sustainable claims.  

Labelling a raw material unsustainable depends on a full life cycle assessment, in which factors such as labor and human rights, environment, ethics, and safety are evaluated and at times compared with the alternative. It will take innovation and cross borders collaboration to develop safer and sustainable alternatives. 

Are there already trends towards the raw material of the future?

Fermentation is a type of biotechnology that uses microorganisms to create a chemical change to produce many raw materials, and innovative suppliers continue to use new organisms and new manufacturing processes that make biotech a growing trend. Biotechnology is increasingly used to create sustainable raw materials. Upcycled raw materials are another trend that supports the circular economy and collaboration across the supply chain. 

At Univar Solutions, we work with customers to isolate process chemicals, clean-up if necessary, and offer circular materials that may have been classified as waste in the past. In addition to new sustainable raw materials, new partners across the supply chain make innovation possible and demonstrate that we all need each other to be res­ponsible solutions providers and meet our ESG or sustainability goals.