Digitalization is transforming the chemical industry

2. Digitalization for security

As companies digitalize their operations, the risk of cybercrime against the business becomes an inherent concern. As a result, digital or cybersecurity is one of the themes with maximum implementation across chemicals players, more so in the case of basic and petrochemical companies with their huge production plants.

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Chemical players look to develop a robust digitalized business

The wide plethora of technologies enhances the efficiency of chemical functions beginning from R&D to the end of the value chain in customer service and support. In this dynamic environment, the preference and potential of any particular technology depend on the pressing needs and priorities of the organizations. In , the perceived potential by chemical players was highly concentrated on improvement and integration of data analysis (42%), while it is more widely distributed according to the survey &#; decreased to 35% for data analysis and increased to 30% for digital security (from 26% in ). However, despite this decrease, improved data analysis (35%) and integration (30%) are among the high potential areas for chemical players, followed by digital security (30%) as chemical players face increasing challenges such as data theft and malware which can not only compromise confidential data but also halt operations.

What drives or hinders the success of digitalization in the chemicals industry?

At the beginning of Industry 4.0, cost reduction was perceived as one of the key benefits of digitalization. However, chemical players have moved on from this and benefited from digitalization not only through cost reduction but also through e-networking (53%) and customer centricity (51%) &#; a trait essential to developing a resilient business in tough times.

As chemical players explore the length and breadth of digital solutions for their business, new challenges emerge. Lack of qualified personnel was a key challenge in for 47% of survey respondents; however, in the current survey, a little more than one-third cited this as an issue. Currently, companies face challenges to develop a robust technical infrastructure (40%), meeting the investment requirement (38%) and developing secure systems (38%).

Safe and sustainable-by-design (SSbD) chemicals

In , the European Commission published a chemicals strategy for sustainabilityopens in new tab/window that introduced the concept of safe- and sustainable-by-design (SSbD). It definedopens in new tab/window SSbD as &#;a pre-market approach to chemicals that focuses on providing a function (or service), while avoiding volumes and chemical properties that may be harmful to human health or the environment, in particular groups of chemicals likely to be (eco) toxic, persistent, bio-accumulative or mobile.&#;

This approach requires a lifecycle perspective and urges chemical producers to assess the environmental and human impacts of every stage of chemical development and usage.

While the SSbD framework is still a work in progress, the European Commission&#;s Joint Research Centre has recommended a two-phase approach for developing SSbD criteria. The first step focuses on four design principles:

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  Green chemistry &#; e.g., using waste as sustainable feedstock

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  Green engineering &#; e.g., self-healing designs, such as concrete with bacteriaopens in new tab/window that automatically fills in cracks

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  Sustainable chemistry &#; e.g., redesigning processes to create better products, such as genetically engineering microalgae to become a more efficient feedstock

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  Circularity by design &#; e.g., compostable food packaging that can be re-incorporated into the production cycle multiple times

The second step is an assessment of material and chemical hazards, human health and safety effects in the processing phase, human health and environmental impact in the use phase, lifecycle, and social and economic sustainability.

These steps align with the view of Cefic, the European Chemical Industry Council, which says any SSbD criteria must address environmental, social and economic factorsopens in new tab/window and take a lifecycle approach.

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