Search this website. You can use fund codes to locate specific funds

Litmus test for chemical sector decarbonisation

The chemical sector is a ‘hard-to-abate’ industry seeking a clear pathway to decarbonisation. Joanne Beatty identifies some of the key challenges and opportunities.

Chemicals are essential inputs for many industries, with chemical use pervasive and entrenched in the modern world. But like the steel industry, the chemical sector is considered “hard-to-abate”, meaning that the solutions to reduce emissions are either technically challenging, prohibitively expensive, or both.

Decarbonisation of the energy sources used to generate the heat, steam and power needed for compression, cooling and other processes in chemical manufacturing will require access to abundant, reliable and cheap alternative sources of energy. However, alternatives to fossil fuels, such as green hydrogen and electrification, are not yet cost competitive compared with current production processes.

We engage with some of the world’s largest chemical companies on their decarbonisation pathways and ambitions. We co-lead collaborative engagement with LyondellBasell and Air Liquide as part of Climate Action 100+ and have participated in ShareAction’s recent campaign to accelerate climate action for European chemical companies. We also engage with companies on end-market demand.

Chemical companies face a challenging transition, but the sector may benefit by developing processes and products that are less carbon dependent or intensive. Many low-carbon technologies rely on innovations in chemistry to become more efficient, affordable and scalable – for example, the sector provides materials for solar photovoltaic systems and wind turbines.

Read the full article in our Q1 2022 Public Engagement Report.

Related Insights

EOS Stewardship Report 2021
As EOS publishes its second UK Stewardship Report as a service provider we highlight some of the key takeaways and enhancements.
Creating value by addressing social injustice
Social injustice occurs when people do not have access to the same rights and opportunities afforded to others, due to race, ethnicity, gender, sexuality, religion, disabilities or other characteristics.
The digital dilemma
The second article in our Q1 Public Engagement Report examines how we are engaging with social media and technology companies on digital rights.
Chemical sector under scrutiny in EOS’s Q1 Public Engagement Report
The Q1 Public Engagement Report from EOS at Federated Hermes takes an in-depth look at the decarbonisation challenges faced by the chemical industry. Plus, protecting digital rights and addressing social injustice.
Public Engagement Report Q1 2022
In our cover feature this quarter we take an in-depth look at the chemical sector and its difficult path to decarbonisation.
How regenerative agriculture can sow the seeds of change
Regenerative agriculture practices improve soil health, biodiversity and watersheds in addition to enhancing ecosystem services.

EOS Client Service and Business Development

Amy D’Eugenio,
Head of Client Service and Business Development, EOS