Hear our CEO and CSO share their perspectives on the role distribution plays in sustainability, the opportunities to lower Scope 3 emissions, and how sustainability priorities will reshape distribution as we know it today.
Featuring:
- Valerie Diele-Braun, CEO | IMCD
- Olivier Champault, Head of Sustainability & Business Group Director, Advanced Materials | IMCD
Click above to watch our recent video or keep scrolling to read the summary.
What are the key challenges distributors are facing today?
There are three primary challenges we face today:
- A holistic approach to ESG: Historically, companies viewed economic performance, social elements, and environmental impact separately. ESG requires a holistic view, emphasizing how these factors are interconnected.
- Global presence and regulatory complexity: At IMCD, with operations across life sciences (pharma, food, cosmetics) and industrial sectors, we face varying regulations and customer requirements across industries and regions. This demands greater agility than ever before.
- Supporting smaller customers: Many customers, particularly small and medium-sized companies, are committed to sustainability but feel constrained by their resources or find the topic overly complex. IMCD leverages its size, expertise, and global network to help these customers improve, develop innovative products, and address challenges in sustainability while maintaining performance.
How can we balance performance and the cost of sustainable solutions?
The goal is to maintain competitiveness in both performance and cost while offering sustainable solutions. This is achieved in two ways:
- Continuous development: With 75 labs worldwide, IMCD is actively working on improving sustainable solutions and collaborating with customers to optimize their projects.
- Addressing cost Perceptions: While sustainable products are often perceived as more expensive, IMCD’s research shows that nearly 60% of customers are willing to pay a premium for sustainability if claims are transparent and demonstrable. This highlights the importance of validating and communicating the value of sustainable solutions rather than focusing solely on cost.
How do you view the industry's stage in addressing emissions data like PCF (Product Carbon Footprint) and LCA (Life Cycle Assessment)?
Today, there is great variability in the industry. The sustainability journey varies among suppliers, with some leading and others lagging. Collectively, the industry needs to accelerate progress. This can be done in three ways:
- Distributor role: Distributors like IMCD collaborate with partners to provide data on carbon footprints and lifecycle assessments. The lack of standardized approaches for LCA and PCF remains a challenge.
- Initiatives for standardisation: IMCD actively participates in organizations like Together for Sustainability (TFS) to define global standards. A unified approach will enable comparability and transparency for customers seeking emissions data.
- Cooperation as a necessity: Competitors now collaborate on sustainability initiatives, understanding the mutual dependency within supply chains. This cooperation is essential for minimizing environmental impact and achieving collective progress.
How must distributors adapt their business models to better serve markets focusing on sustainability?
The traditional business model of distributors is evolving in response to changing needs. This means we are seeing and will continue to see:
- Enhanced collaboration: Distributors must deepen collaboration with customers in developing sustainable products, leveraging their lab networks, technical expertise, and global reach.
- Evolving business models: Over the last few decades, IMCD’s model has evolved from basic logistics to providing technical support, market insights, and formulation expertise. The next step involves working closely with customers to design products with sustainability and purpose in mind.
- Adapting to new business model: Sustainability necessitates a shift in thinking, balancing logistics and technical roles with innovative, customer-centric solutions. Collaboration, both within the industry and with customers, is key to achieving sustainability goals efficiently.
The future of sustainable business relies on mutual cooperation among competitors, suppliers, and distributors to drive shared success. This mindset is critical for addressing environmental challenges and evolving in response to changing market demands.
IMCD Industrial Solutions | Sustainable Solutions Program
IMCD is committed to breaking down complex sustainability topics to support you at every step of your sustainability journey; whether you’re at the start or looking to optimize your current efforts. Click here to learn more about our Sustainable Solutions program and explore the sustainable materials we offer in your area.